Last Friday, a U.S. Court of Appeals upheld a U.S. Department of Agriculture decision to increase Class III and Class IV make allowances.

"These make allowances will keep all segments of the industry healthy by maintaining a market for farm milk and ensuring the longer-term viability of dairy product manufacturers," says Bob Yonkers, vice president and chief economist for the International Dairy Foods Association.

In July 2008, the U.S. Secretary of Agriculture moved to increase make allowances that represent the costs to handllers in making certain forms of dairy products.

Click here to read an IDFA press release that links to the actual court decision.

Source: International Dairy Foods Association