News Releases and other News Material/Number 01194/0005
Release No. 0005.94
Becky Unkenholz (202) 720-8998
Ron Hall (202) 720-3310
USDA SETS HEARING ON "CLASS II" MILK PRICING FORMULA
WASHINGTON, Jan. 3--The U.S. Department of Agriculture will hold a public hearing on proposed changes in the formula used to calculate the price of milk used in "Class II" products for all federal milk marketing orders. These products include such items as cottage cheese, yogurt and ice cream.
The hearing will begin at 9 a.m., Jan 6, 1994, at the Ramada Hotel-Old Town, 901 N. Fairfax St., Alexandria, Va. 22314; tel. (703) 683-6000.
Lon Hatamiya, administrator of USDA's Agricultural Marketing Service, said two milk processing trade associations and a federation representing a significant number of dairy farmers requested the changes.
According to the proponents of the change, the current Class II price formula results in widely fluctuating prices, which, they claim, interfere with the orderly marketing of Class II products. AMS's Dairy Division sets the prices for the milk orders as authorized by the Agricultural Marketing Agreement Act of 1937.
Class II prices are presently determined using a base price, updated to reflect recent changes in dairy product prices and adding a differential over the manufacturing price. At issue in the proposals is the amount of the differential and the updating procedure. Other proposals include a request that announcement of the Class II price be changed from the 15th of the month to the 5th, to coincide with the Class I and III price announcements.
Details of the proposals and of the hearing were published in the Dec. 21 Federal Register. Copies may be obtained from any federal milk marketing order office, or the Order Formulation Branch, Dairy Division, AMS, USDA, Rm. 2968-S, P.O. Box 96456, Washington, D.C. 20090-6456; telephone (202) 720-6274.
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