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Dairy Cooperatives Provide Consistent Pricing It's also a biological product that can vary seasonally or even daily. Both of these factors impact a dairy farmer's profits, which puts undue stress on small farms. Farming cooperatives benefit dairy farmers by helping to stabilize the sale price for their product.
Historically, the fluid or beverage uses of milk have been classified in the highest-priced class (Class I), and soft or spoonable products, those from which some of the moisture has been removed, have been classified in the intermediate class of milk (Class II).
Increased market access from a cooperative's investments in milk processingincluding manufacturing of dairy products such as butter, cheese, and yogurtmay result in higher earnings for farmers in the cooperative while potentially reducing market access for farmers outside of the cooperative.
Dairy product, milk and any of the foods made from milk, including butter, cheese, ice cream, yogurt, and condensed and dried milk.
Class 1: Milk used in fluid products. Class 2: Milk used in heavy cream, cottage cheese, yogurt and sterilized products. Class 3: Milk used in ice cream and other frozen products. Class 4a: Milk used in butter and dry milk products, such as nonfat dry milk.
Milk under the Federal Milk Order System is separated into four separate classes: CLASS I - Milk used for beverages including eggnog and ultra-high temperature (UHT) milk. CLASS II - Milk used for soft products.
In addition to representing more than 13,000 dairy farmers, DFA controls 30 percent of milk production in the U.S.
A dairy co-op uses the milk produced by its members' cows to make dairy foods like cheese and yogurt. A single dairy co-op might have hundreds of dairy farm families as members. These farms may be in the same state or in neighboring states. The milk from each dairy farm goes to a processing plant owned by the co-op.
The FMMO system recognizes four different classes of milk: Class I (fluid use), Class II (soft products such as ice cream), Class III (cheese), and Class IV (butter and milk powder).
All the dairy cooperative societies in a milk-shed are affiliated to an apex organisation -The District Cooperative Milk Producers Union. The milk union procures milk collected by the member dairy cooperative societies, processes the same and arranges marketing of liquid milk and milk products.