Montana’s pool marketing system enables producers to receive uniform milk prices (for milk of equivalent butterfat content) based on the overall utilization of pool milk received by Montana’s pool handlers. In Fiscal Year 2025, the 35 pool dairies had a noticeable decrease in production. However, a slight increase in the butterfat percentage and an increase in the average pool price resulted in an increase in the annual gross receipts. (Details pages 25-30.)
The value of pool milk is determined by production and utilization factors. The utilization factors include adjustments that reduce the value of the milk produced by Montana dairies.
Two major elements of utilization factors are (1) the minimum prices for each of the three classes of milk and (2) the percentage of butterfat and skim milk (the portion of milk that is not butterfat) utilized in each class of milk. Minimum prices are highest for pool milk utilized as Class I milk consumed in Montana, this accounted more than half of pool production in Fiscal Year 2025, increasing measurably from Fiscal Year 2025. The percentage of pool milk utilized as Class I milk consumed in Montana was more than over three-fourths of pool production in Fiscal Year 2016 and has fluctuated slightly each fiscal year up to the current fiscal year, with the average remaining at just more than half of pool production. (Details pages 32-35.)
I here are two types of adjustments that reduce the utilization value. They are the transportation charges to ship bulk pool milk between pool plants, and the cost of marketing Class I packaged and bulk surplus milk to out-of-state markets. In Fiscal Year 2025 these adjustments reduced the pool utilization value slightly over a dollar per hundred weight. (Details pages 36-39.)