Component Prices are calculated using monthly average dairy product prices for the month in question. In the folowing example, component prices for Oct 2009 is calculated by using the monthly (weighted) average of different weekly NASS prices. They were then released on Oct 30, 2009
The component prices calculated in the section use monthly average U.S. NASS survey prices. These monthly average prices are calculated by a weighted average.
The monthly average prices used in this section are calculated from NASS prices for each week.
These monthly average prices are as follows:
| AA Butter | 1.2245 |
| Cheddar Cheese | 1.4110 |
| Dry Whey | 0.3183 |
| Nonfat Dry Milk | 1.0270 |
= (Nonfat Dry Milk Price – 0.157) * 0.99
= (1.0270 – 0.157) * 0.99
= 0.8700 * 1.03
= 0.8613
So, the Announced Non Solids Component Price for Oct 2009 is 1.0270