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Dairy Stream podcast: An understanding of Producer Price Differentials (PPDs)

Thursday, July 23, 2020   (0 Comments)
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Dairy Stream podcast: An understanding of Producer Price Differentials (PPDs)

Many factors determine how a PPD is calculated

In the latest episode of the Dairy Stream podcast, a basic understanding of Producer Price Differentials (PPDs) is discussed and the many factors that go into the price paid to dairy farmers.

Dairy Stream host Mike Austin talked with Mark Stephenson, who is the director of dairy policy analysis at the University of Wisconsin-Madison, about the Federal Milk Marketing Order, Producer Price Differentials (PPDs) and what they are and how they are calculated, what causes a negative PPD, the fluctuations in milk prices and the future outlook for milk checks.

Agri-King sponsored this episode.

Podcast breakdown:

  • 1:07: Demand for dairy products during COVD-19 have drastically fluctuated
  • 3:37: Federal Milk Marketing Order described
  • 5:35: Dairy farmers receive a price average for their milk based on the classes of milk
  • 8:27: Basic understanding of calculating a PPD
  • 12:25: Not every farmer is impacted by a PPD
  • 13:22: Change in structure and the rapid rise of class I milk prices can cause a negative PPD
  • 18:13: Processing plant decision making can affect PPDs
  • 20:03: Cheese plants are making a choice to depool during a negative PPD
  • 21:20: Negative PPDs were expected
  • 23:07: Basic understanding of where PPD money is going
  • 27:10: Future outlook for milk checks

About Dairy Stream:

Dairy Stream focuses on policy, sustainability, market trends, new technology, processor updates, business partner news and farmer involvement. The podcast is co-produced by the Dairy Business Association and Edge Dairy Farmer Cooperative, sister organizations that fight for effective dairy policy in Wisconsin and Washington, D.C..

Dairy Stream is available on Apple PodcastsGoogle PodcastsiHeartRadioPodBeanSpotify or wherever you listen to podcasts.


Dairy Stream logo

University of Wisconsin-Madison’s Mark Stephenson

Dairy Stream host Mike Austin

Tweet about this:
Producer Price Differentials (PPDs) are hard to understand and @UWMadison @UWMadisonExt @UWMadisonCALS' Mark Stephenson explains it via @VoiceOfMilk @DairyForward #DairyStream podcast, sponsored by @AgriKingInc. Listen here: #DairyForward #TheVoiceofMilk

About DBA:

The Dairy Business Association is the leading dairy lobby group in Wisconsin, focused on advocating for sensible state laws and regulations that affect the dairy community. The nonprofit organization is comprised of dairy farmers, milk processors, vendors and other business partners who work collaboratively to ensure that dairy farms of all sizes have the support they need to keep America’s Dairyland strong. More information:

About Edge:

Edge Dairy Farmer Cooperative provides dairy farmers throughout the Midwest with a powerful voice — the voice of milk — in Congress, with customers and within their communities. Edge, based in Green Bay, Wis., is one of the top cooperatives in the country based on milk volume. More information:

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