The Butter-Powder Tilt
Published : Jun 2001
Authors : Ed Jesse, Bob Cropp
On May 31, 2001, USDA announced a change in the Commodity Credit Corporation (CCC) purchases prices for butter and nonfat dry milk under the dairy price support program. The new price for butter (U.S. Grade A or higher, 25-kg blocks, salted) is $0.8548, an increase of 19.99 cents per pound. The new prices for nonfat dry milk are $0.90 for nonfortified and $0.91 for Vitamin A and D fortified, both types in 25-kg bags. The new nonfat dry milk prices are 10.32 cents per pound lower. This change in relative prices for butter and nonfat dry milk was controversial, even though it did not alter the support price for milk. The change was supported by the International Dairy Foods Association and most dairy producer groups in the Upper Midwest. The decision to change relative prices was strongly opposed by the National Milk Producers Federation and other dairy producer groups.

