The Federal Milk Marketing Orders play a significant role in milk price discovery.
Federal Milk Marketing Orders (FMMOs) establish certain provisions under which dairy processors purchase fresh milk from dairy farmers supplying a marketing area. In Federal order provisions, dairy processors are referred to as handlers and dairy farmers are known as producers. A marketing area is generally defined as a geographic area where handlers compete for packaged fluid milk sales, although other factors may be taken into account when determining the boundaries of a marketing area. Federal orders serve to maintain stable marketing relationships for all handlers and producers supplying marketing areas, thus facilitating the complex process of marketing fresh milk.
FarmFirst Dairy Cooperative plays an active role in this process by representing dairy farmers that ship to proprietary plants throughout the Federal Milk Marketing Orders #30, #32 and #33. Working alongside both producers and processors, FarmFirst is able to provide test verification services in addition to ensuring tanks are properly calibrated.