2025 Milk Marketing

MULTIPLE CHOICE

1. How many state and regional dairy checkoff organizations are in the U.S.?
A. 16
B. 12
C. 8
D. 4
ANS: A

2. In 2024, how much of the U.S. milk supply (on a milkfat basis) went into butter production?
A. 10%
B. 18%
C. 25%
D. 42%
ANS: B

3. What is the primary benefit of Dairy Revenue Protection (DRP) for producers?
A. It guarantees milk prices will rise
B. It allows producers to avoid government subsidies
C. It provides a price and revenue floor with no cap on payouts
D. It eliminates the need for risk management
ANS: C

4. What trend in consumer behavior is influencing the current and future focus of the U.S. dairy industry?
A. Increasing demand for fluid milk
B. Decreasing interest in cheese and butter
C. Higher consumption of milk solids in manufactured dairy products
D. Preference for imported dairy products
ANS: C

5. Which three dairy products have seen significant per capita growth over the past 25 years?
A. Cheese, milk, and ice cream
B. Yogurt, cheese, and butter
C. Cream, milk, and sour cream
D. Yogurt, milk, and cottage cheese
ANS: B

6. Which state led the nation in total milk production and number of dairy cows in 2024?
A. Wisconsin
B. Texas
C. California
D. Idaho
ANS: C

7. Which state recorded the highest milk production per cow in 2024?
A. Michigan
B. Texas
C. Wisconsin
D. Iowa
ANS: A

8. Which state led the nation in most cows per herd in 2024?
A. California
B. Texas
C. Arizona
D. New Mexico
ANS: C

9. In multiple Federal Milk Marketing Orders, milk pricing is primarily determined by the levels of:
A. Water and free fatty acids
B. Mastitis and aflatoxins
C. Bacteria and antibiotic residues
D. Fat, protein, and other milk solids
ANS: D

10. What do Federal Milk Marketing Orders establish to ensure fair distribution of payments
to producers supplying milk to a market?
A. A milk cooperative
B. A producer settlement fund
C. Supply-demand equalization
D. A board of commissioners
ANS: B

11. In the Federal Milk Marketing Orders, how is milk pricing determined based on its end use in dairy products?
A. Minimum pricing
B. Maximum pricing
C. Creative pricing
D. Classified pricing
ANS: D

12. What is the term for the final amount of money a dairy farmer receives for their milk after all adjustments?
A. Milk-feed ratio price
B. Cooperative bonus premium
C. Federal Order price
D. Mailbox price
ANS: D

13. In a four-class milk pricing system, Class III milk is primarily used in the production of:
A. Fluid milk and beverages
B. Cottage cheese and other soft dairy products
C. Cheese
D. Butter and powdered milk products
ANS: C

14. While prices for milk used in manufactured products are consistent across all Federal Orders, Class I milk prices vary by region. The highest Class I milk prices are typically found in which region of the United States?
A. Southeast
B. Midwest
C. Northwest
D. Northeast
ANS: A

15. Approximately how many pounds of whole milk are needed to produce one gallon of ice cream?
A. 8
B. 12
C. 22
D. 44
ANS: B

16. What term refers to the processing credits that represent the average costs of producing cheese, butter, nonfat dry milk, or dry whey?
A. Cost ratio
B. Make allowance
C. Competitive pay price
D. Producer Price differential
ANS: B

17. Under Federal Milk Marketing Orders, milk used for ice cream production falls under which class?
A. Class I
B. Class II
C. Class III
D. Class IV
ANS: B

18. A Federal Milk Marketing Order can only be established if two-thirds of the __________ in the proposed marketing area vote in favor of it.
A. dairy cooperatives supplying milk
B. producers supplying milk
C. cheese processors using local milk
D. milk handlers in the region
ANS: B

19. Federal Milk Marketing Orders are a ____________ program that sets the conditions for how milk handlers buy milk from dairy farmers within a designated marketing area.
A. Mandatory
B. congressionally required
C. Elected
D. Voluntary
ANS: D

20. Approximately how many pounds of whole milk are needed to produce one pound of cheddar cheese?
A. 8
B. 10
C. 20
D. 44
ANS: B