Dairy Product Purchase Prices Adjusted

August 17, 2000

USDA has adjusted the purchase prices for butter, cheese, and nonfat dry milk (NDM) bought under the Dairy Price Support Program. The agriculture appropriations bill extended the price support program through calendar year 2000 at the 1999 support price of $9.90 per hundredweight (cwt) of milk with an annual average milk fat content of 3.67%.

The Secretary is permitted to change the purchase prices for butter, cheese and NDM twice during CY 2000. Using that authority, the announced purchase prices of these products were adjusted as follows in order to reflect the new pricing formulas under the reformed Federal Milk Marketing Orders: CCC will increase the price it pays for block cheddar and barrel cheese by 2.2 cents per pound to $1.1220 and $1.0920 per pound, respectively. The purchase price for butter will increase by 1.8 cents per pound to $0.6680 per pound, and the purchase price for NDM will remain at $1.0100 per pound. These prices were effective July 31, 2000.

Further terms and conditions for purchases of dairy products will be contained in subsequent announcements.