Calculation of Class III Prices

These Class III Prices for any given month are computed from Class and Component Prices for that month released by 5^th of the following month. In the following examples, the prices for Oct 2009 were based upon class and component values Oct 30, 2009

Class III Skim Milk Price

= (Protein Price x 3.1) + (Other Solids x 5.9)

= (2.6092×3.1) + (0.1264×5.9)

= $8.83

Class III Price

(at 3.5% Butterfat)

= (Class III Skim Milk Price x 0.965) + (Class III Butterfat Price x 3.5)

= (8.83×0.965) + (1.3252×3.5)

= 13.16

So, the Class III Price for Oct 2009 is 13.16