Advanced Pricing Factors are calculated using the weighted average of prices for the two most recent weeks that were released before the 23rd of the preceding month. In the folowing example, the Class III advanced butterfat pricings factor for Dec 2009 is calculated by using the bi-weekly (weighted) average of the two weeks preceding it. These prices were then released on Nov 20, 2009
The advanced prices calculated in the section use biweekly average U.S. NASS survey prices. These biweekly average prices are calculated by a weighted average.
These biweekly average prices are as follows:
| AA Butter | 1.3532 |
| Cheddar Cheese | 1.5113 |
| Dry Whey | 0.3452 |
| Nonfat Dry Milk | 1.1147 |
= (Protein Price * 3.1) + (Other Solids Price * 5.9)
= (2.7698 * 3.1) + (0.1541 * 5.9)
= 9.50
So, the Advanced Class III Skim Milk Pricing Factor for Dec 2009 is 9.50
= Nonfat Solids Price * 9.0
= 0.9481 * 9.0
= 8.53
So, the Advanced Class IV Skim Milk Pricing Factor for Dec 2009 is 8.53