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What a year of strong margins buys you in a pricing fight

Federal milk order pricing reform is back on the table for next year, and 2024's relatively strong producer margins change what our members can credibly ask for.

Federal milk marketing order pricing reform has been grinding through the process for more than a year, and it just moved: a final decision on amendments to all eleven orders came out of the regulator's marketing service earlier this month, with a producer vote on ratification expected in the new year and most changes set to take effect next June. Our members are walking into that vote from a stronger position than they have in a while, because 2024 turned out to be a mostly steady year for margins, which changes the tone of what we can credibly push for.

That matters because pricing-reform advocacy tends to split along a predictable line. When margins are thin, the conversation is defensive, protect the floor, don't let a formula change make a bad year worse. When margins hold up the way they have this year, there's more room to argue for structural fixes that a producer under real financial pressure can't afford to gamble on. We're in the second kind of year, and our Membership & Outreach Committee wants to use it.

What we're actually pushing for

The specific ask isn't a full rewrite of how federal milk marketing orders set component pricing, that fight is bigger than our federation and bigger than this cycle. What we're asking for is narrower: a formula adjustment that better reflects the price premium small-batch and aged specialty cheese commands over commodity cheese, so the pricing floor a farmstead producer sees isn't set entirely by bulk commodity markets that have little to do with what they're actually selling.

This isn't a new argument from us, but it lands differently in a year where the underlying numbers cooperate. A producer who can show a steady, even strong, margin year is making a case about fairness and formula design. A producer trying to make the same argument during a margin squeeze is making a case that sounds like it's really about survival, and pricing regulators tend to respond to survival arguments with stopgaps rather than structural change. We'd rather get the structural version while we can argue for it calmly.

What comes next

The amendments just finalized don't touch the specialty-versus-commodity gap directly, they settle a narrower set of formula factors that were the subject of last year's hearing. But the producer referendum that ratifies them is also the moment the whole pricing structure is visibly back in front of members, which is exactly the kind of window our next push needs. Our advocacy team is building the record now, member data on specialty cheese pricing versus commodity benchmarks, so that when a formal comment window opens on the piece we actually want changed, we're not starting from scratch.

If you track your own pricing against the commodity block or barrel benchmarks and are willing to share anonymized numbers, that's exactly the kind of evidence that makes this argument land with a regulator instead of reading as an association's general complaint.

One farmstead producer who's sat in on the working group put it to us this way: in a squeeze year, she said, you spend all your advocacy energy just arguing to keep what you have. In a year like this one, you actually get to argue about what the formula should look like instead of just how bad it would be if it got worse.

Members interested in contributing data or reviewing the position paper before it's finalized should reach out through the Membership & Outreach Committee. We'll flag the formal comment window here the moment it opens, but the groundwork happening now is what determines whether that window matters.


The International Cheese Federation (ICF) and More Cheese are entirely fictional. This post is demonstration content created for MemberJunction. All people, organizations, events, courses, certifications, figures, and quotations in it are invented, and nothing here represents a real association, a real business, a real person, or real professional advice.

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