Class IV Milk Price
This document calculates the price per hundredweight (cwt) of Class IV milk found in the Western New York Milk Marketing Area Order July 2026 Announcement of Class Prices.
Legal context on the Federal and Western New York Milk Marketing Orders can be found here.
Background
The Western New York Milk Marketing Area Order classes milk by its end use, shown below S.
| Class | Products |
|---|---|
| I | Fluid milk products |
| II | Soft dairy products |
| III | Hard and spreadable cheeses, butter oil, condensed milk |
| IV | butter, dried milk products |
For each month, the Order compels the New York State Commissioner of Agriculture and Markets to set each class's minimum price S.
The classes' minimum prices are published under the Western NY Milk Marketing Area Announcements.
Below is a derivation of Class IV minimum price for July 2026.
Calculation
Butterfat
The monthly average $/lb Grade AA Butter is stated as $1.6036.
To find $/cwt milk associated with Butterfat, calculate:
| 1.6036 | $/lb Grade AA Butter | |
| - | 0.2272 | make allowance |
| 1.3764 | ||
| x | 1.211 | lbs Grade AA Butter/lb Butterfat |
| 1.6668 | $/lb Butterfat | |
| x | 3.5 | lb Butterfat/cwt milk |
| 5.8338 | $/cwt milk |
Make allowance is the processor's approximate manufacturing cost for 1lb of Grade AA Butter from raw milk. Note: the Order itself does not use the term make allowance nor does it explain how it is calculated; this is an inference gleaned from other sources.
Skim milk
The monthly average $/lb Nonfat Dry Milk is stated as $1.6474.
To find $/cwt milk associated with Skim milk, calculate:
| $1.6474 | $/lb Nonfat Dry Milk | |
| - | 0.2393 | make allowance |
| 1.4081 | ||
| x | 0.99 | lbs Nonfat Dry Milk/lb Nonfat solids |
| 1.3940 | $/lb Nonfat solids | |
| x | 9.3 | lb Nonfat solids/cwt Skim milk |
| 12.9642 | $/cwt Skim milk | |
| x | 0.965 | cwt Skim milk/cwt milk |
| 12.5105 | $/cwt milk |
Class IV Price
To find $/cwt Class IV milk, add the $/cwt found in the Butterfat and Skim milk sections above:
| 5.8338 | Butterfat: $/cwt milk | |
| + | 12.5105 | Skim milk: $/cwt milk |
| 18.34 | Class IV $/cwt milk |