Reporting error for nonfat dry milk quantified

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The results are in, and errors were made in the reporting of nonfat dry milk prices and total sales from April 2006 to April 2007.

After confirming that one dairy product plant had made errors in its weekly reporting of price data for nonfat dry milk in April, USDA’s National Agricultural Statistics Service (NASS) announced that it would contact all 39 participating dairy product plants to review reporting criteria and request that they verify and, if necessary, revise their nonfat dry milk data reported over the past year.

According to an article in Lancaster Farming, the review has been completed, and reporting errors were made. Five out of 39 firms revised previously reported data. These revisions resulted in changes ranging from -0.8 to 8.5 cents per pound in the weekly average prices of nonfat dry milk (NFDM) between April 2006 and April 2007. The report estimates that milk produced during that time period in the federal milk marketing orders was undervalued by about $50 million.

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