Seventy percent of all milk sold in the United States in 2023 was marketed through Federal Milk Marketing Orders (FMMOs). Total receipts of milk pooled under the FMMOs was 158.4 billion pounds marketed by 22,035 dairy farmers, according to the Measures of Growth in Federal Orders report recently released by USDA’s Agricultural Marketing Service.

Total receipts were up 4.5% from 2022. Meanwhile, pooled producer numbers were down 4.6%.

For fluid grade milk sold to dairy plants and milk dealers, 71% was marketed through FMMOs. The percent of all milk and fluid milk sold through FMMOs was the highest in each category since 2019.

Much has changed since the FMMOs were initiated in 1947. Back then, there were 29 markets, 135,830 pooled producers, and 14,980 million pounds of producer milk. At the height in the early 1960s, there were up to 83 markets and more than 192,000 pooled producers. The percent of all milk marketed through the FMMOs was less than 50%, though.

Another big difference is the utilization of that milk. In 1947, 65.5% of the FMMO milk was used for Class I or fluid milk. That volume stayed in the 60%-range for more of the next two decades. Then it started to slowly descend, falling to less than 50% by 1980. In 2023, just 25.5% of milk marketed through FMMOs was used for fluid milk, and that was down 1.5% from the year before. Not surprising, one reason for this reduction is the decline in fluid milk consumption and sales.

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(c) Hoard's Dairyman Intel 2024
July 29, 2024
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