Government's Role in Pricing Fluid Milk in the United States

The Federal marketing order system regulated 80 percent of the Nation's fluid-grade milk marketings in 1976. This compares with just over 50 percent in 1956. During 1976, 122,770 producers delivered 74.6 billion pounds of milk to Federal order handlers—about 65 percent of all milk sold to plants and dealers. The farm value of this milk was $7.4 billion. Thirty-seven States administer milk distribution in one or more of the following ways: establishing minimum prices at the farm, wholesale, or retail level; regulating trade practices; and permitting milk promotional programs, financed through producer or handlers assessment or appropriation