What is the primary purpose of federal milk marketing orders?

The primary purpose of federal milk marketing orders is to stabilize milk prices and supply. These orders were established to create a more orderly marketing environment for milk in the United States. They help to address market fluctuations that can lead to extreme price volatility, which can adversely affect both producers and consumers. By setting minimum prices that dairy farmers must be paid for their milk, federal milk marketing orders ensure that producers receive a stable income regardless of market conditions. They also facilitate the pooling of milk resources in a region, which assists in ensuring that local processing plants have a consistent supply of milk, thus promoting market stability.

In addition to this foundational purpose, federal milk marketing orders play a role in ensuring fair competition among dairy farmers and processors. They ultimately aim to balance the interests of farmers, processors, and consumers, promoting a stable and sustainable milk market.