The Effect of Adopting California Fluid Milk Standards in the United States

Abstract

The Food and Agricultural Policy Research Institute at the University of Missouri (FAPRI-MU) has analyzed the impact of adopting the current California fluid milk standards throughout the U.S. There have been numerous studies of the effects of imposing California fluid milk standards across the U.S. (Salathe and Price, Outlaw et. al., Boynton). In general, these studies tended to reach similar conclusions. The increased use of solids nonfat reduced Commodity Credit Corporation (CCC) inventories of nonfat dry milk and raised prices for nonfat solids, which tended to increase farmer milk prices. Although similar results are found in this analysis, the market situation is very different today than when those studies were conducted.