Surplus milk is milk produced in Montana that is not consumed in Montana, excluding sales of cream to out-of-state markets, inventory, shrink, and dumped milk. Surplus sale factors allow for negative adjustments to the value of pool milk that reflect costs of marketing the surplus milk. Nearly all of the surplus milk is sold as Class I packaged milk to out-of-state markets. In the Fiscal Year 2025, the overall adjustment for Class I packaged milk surplus sales totaled $1,379,955. This adjustment reduced the value of pool production by $0.738/cwt.
In Fiscal Year 2025, adjustments were made for transportation charges for shipments of unprocessed pool milk between pool plants and Class I packaged surplus milk sales. These adjustment reduced the pool value by about $1.97 million (4.33%) or in other terms $1.054/cwt. The table below shows the adjustments and their impact in terms of dollars per hundredweight of pool production and percentage of unadjusted utilization value.
Adjustments to Pool Milk Utilization Value in Fiscal Year 2025
| Adjustment Description | Adjustment to Pool Milk Utilization Value ($) | Adjustment to Pool Milk Utilization Value ($/cwt of Pool Production) | Adjustment as a Percentage of Unadjusted Utilization Value |
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| Transportation Charges - Intrapool | ($592,850) | ($0.3168) | (1.302%) |
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| Class I Packaged Surplus Milk Sales | ($1,379,955) | ($0.7375) | (3.032%) |
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| Subtotal | ($1,972,805) | ($1.0543) | (4.334%) |
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| Pool Milk Utilization Value ($) | Pool Milk Utilization Value ($/cwt at actual butterfat) |
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| Unadjusted Value | $45,519,542 | $24.3258 |
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| Adjustments | ($ 1,972,805) | ($1.0543) |
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| Adjusted Value | $43,546,737 | $23.2715 |
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