Calculation of Class IV Prices

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

Class IV Skim Milk Price

=(Nonfat Solids Price x 9)

= 1.0270×9

= 7.75

Class IV Price

(at 3.5 % Butterfat)

= (Class IV Skim Milke Price x 0.965) + (Butterfat Price x 3.5)

= 7.75×0.965 + 1.3252×3.5

= 12.12