New Class I Definition Rule Takes Effect on January 1
September 1, 2010
New Class I Definition Rule Takes Effect on January 1
USDA’s final rule on defining Class I milk products was published in the Federal Register on August 24. The rule was originally published in the Federal Register on June 14 (with atechnical correction issued on June 24), and was approved by producer referendum in all ten Federal Milk Marketing Orders.
As noted in June, the new rule requires a milk product to have less than 2.25% protein, as well as less than 6.5% skim milk solids, in order to be exempted from Class I status on the basis of its skim solid composition. Previously, the product could be exempt with only a skim milk solids test below 6.5%. This closes a pricing loophole that encouraged some processors to formulate low-lactose milk products in order to get them priced as Class II products.
However, the rule also exempts yogurt drinks, yogurt-based drinks, and ‘kefir’ from Class I status, based on a proposal by yogurt makers. This will move a number of Class I yogurt drinks into Class II.
The rule will go into effect on January 1, 2011. This implementation time is longer than usual in order to allow the Market Administrators time to examine all the products whose classification might change and to allow processors time to adjust to the new rules.
If you have any questions, contact Roger Cryan at RCryan@nmpf.org.
