Which state does not operate under federal milk marketing orders?

California is the state that does not operate under federal milk marketing orders. Instead, California has its own state milk marketing order system that governs the pricing and distribution of milk within the state. This system allows California to set its own pricing structures based on the unique aspects of its dairy industry, which is one of the largest in the United States.

This independence from federal regulations means that California's dairy producers and processors can respond more flexibly to local market conditions, consumer preferences, and production costs. The state's decision not to conform to the federal marketing order system highlights its distinct approach to managing dairy economics, which can differ significantly from how other states manage their marketing systems under the federal order framework.