Dairy product prices (NDPSR)
Definition
Section titled “Definition”Dairy product prices in federal order pricing are the weekly volume-weighted average prices USDA AMS collects from manufacturers’ sales of four commodities. AMS publishes them as the National Dairy Products Sales Report (NDPSR) under the Dairy Product Mandatory Reporting Program (DPMRP). A manufacturer must report a product if it processes and markets 1 million lb or more of it a year (7 CFR 1170.9). Reports cover the 7 days ending Saturday and are due by noon Tuesday (7 CFR 1170.7).
The four products (7 CFR 1170.8, as of November 2026):
| Product | Specification (summary) | Unit |
|---|---|---|
| Cheddar cheese, 40-lb blocks | 4–30 days old on date of sale; Wisconsin State Brand or USDA Grade A or better; colored | $/lb |
| Butter | 80% butterfat, salted, USDA Grade AA; 25-kg and 68-lb boxes | $/lb |
| Dry whey | Edible nonhygroscopic, USDA Extra Grade, up to 180 days old (Grade A sales excluded) | $/lb |
| Nonfat dry milk (NFDM) | Non-fortified, USDA Extra Grade or USPH Grade A, up to 180 days old; high-heat and instant excluded | $/lb |
500-lb cheddar barrels were surveyed until the 2025 amendments removed them from DPMRP, effective June 1, 2025.
How they feed class prices
Section titled “How they feed class prices”Each month, federal orders turn the NDPSR prices into component values, then into class prices (see federal order class prices):
- Butter → butterfat price (used in all classes).
- Cheese → protein price and Class III skim value.
- Dry whey → other solids price (Class III).
- NFDM → nonfat solids price (Class IV).
Each step subtracts a make allowance and multiplies by a yield factor. Class III and IV prices and the component prices use a weighted average of the weekly NDPSR prices announced for the month, as available on the 5th of the following month. Advanced Class I and II prices use a weighted average of the two most recent weekly prices announced before the 24th of the prior month (7 CFR 1000.50).
The 2025 federal order amendments (final rule 90 FR 6600, January 17, 2025) made these changes:
- June 1, 2025: block-only cheese price (barrels dropped); new make allowances (cheese $0.2519, butter $0.2272, NFDM $0.2393 and dry whey $0.2668 per lb); 91% butterfat recovery in the protein formula; the Class I “higher-of” mover with an ESL adjustment; new Class I differentials.
- December 1, 2025: skim composition factors of 3.3% protein, 6.0% other solids and 9.3% nonfat solids.
Revisions
Section titled “Revisions”AMS can revise a prior week’s NDPSR figures when late or corrected sales come in. Sales reports stay open for revision for four weeks after first submission (AMS DPMRP policies). Class prices use the weekly prices as announced when the class price is computed, on or before the 5th (7 CFR 1000.50). Later NDPSR revisions don’t reopen an announced class price.
NDPSR vs CME spot
Section titled “NDPSR vs CME spot”The CME spot market (blocks, barrels, butter, NFDM, dry whey) is a daily trading session in Chicago. Its prices are trades of a few loads on one day. NDPSR prices are a survey of plant sales volume over a week, many of them priced off earlier CME spot prices under formula contracts. So NDPSR lags CME spot by roughly one to two weeks and is smoother.
Class III and IV futures settle on the announced class prices, which come from NDPSR, not from CME spot.
How to pull it in DC305
Section titled “How to pull it in DC305”DC305 doesn’t hold commodity prices. Get them from:
- USDA AMS Dairy Market News / DPMRP: the weekly National Dairy Products Sales Report, released by 3 p.m. ET each Wednesday unless a federal holiday intervenes (7 U.S.C. 1637b). Current and past issues are on USDA AMS My Market News (report 2993).
- USDA AMS federal order price announcements: the monthly averages actually used in class prices.
- CME Group: daily spot prices, for the market-side view.
Typical range
Section titled “Typical range”Herd context: US national commodity prices, nominal $/lb.
| Product | Common range, 2020–2025 | Notes |
|---|---|---|
| Cheese, 40-lb blocks | ~$1.40–$2.30/lb | Spot spiked near $3.00 in mid-2020 |
| Butter | ~$1.60–$3.40/lb | Record highs in 2023–2024 |
| Dry whey | ~$0.25–$0.75/lb | |
| NFDM | ~$0.95–$1.85/lb |
- A block–barrel spread of a few cents is normal; spreads of 10+ cents per lb have appeared in volatile periods.
Common mistakes
Section titled “Common mistakes”- Using CME spot as the NDPSR price. They differ in timing and level. Class prices use NDPSR.
- Matching a week’s NDPSR to the wrong month. The week a price is reported decides which month’s class price it counts in, not the week the sales happened.
- Ignoring revisions when reconciling a computed class price to the announced one.
- Assuming one formula forever. Make allowances, formula factors and the cheese input changed in 2025; check the formula for the month you’re computing.
- Comparing product $/lb to milk $/cwt directly. Translate through the component formulas first.