California Federal Order Transition Consulting

California Federal Order Transition Consulting

The new California Federal Milk Marketing Order was effective November 1, 2018. Herbein’s dairy team has identified over two dozen significant differences from the California State Milk Marketing Order to the new Federal Order that dairies must understand and implement. Some of these key differences, among others, include:

  • Product Components and Costing
    • New Bills of Materials – Cost Accounting
    • Inventory Valuation
    • Customer Contracts
    • New Rules for Fortified Milk Meeting the California Standards
  • Producer Payments and the Producer Price Differential
  • New Terms and Definitions
    • Location Differentials
    • Pool Supply Plants
    • Pool Distributing Plants
    • Partially-Regulated Plants
  • New Shrinkage Valuation Rules
  • New Timing of Milk Price Announcements
  • New Format for monthly report of milk Receipts and Utilization
  • Opportunity for dairy manufacturing plants to not participate in the FMMO

Our specific services related to the federal order transition include:

  • Customized CA FMMO webinar series
  • Product Costing in a FMMO
  • On-site training
    • Live Dairy Accounting Workshops in Sacramento (10/17 & 10/18) and Ontario (10/24 & 10/25) – Sponsored by the Dairy Institute of California. These each qualify for 12 hours CPE for CPAs.
  • Estimating Class II Butterfat Costs Before They are Announced by USDA
  • Federal Milk Order pooling consulting
  • Assistance With Monthly FMMO Reporting in the New Format

For specific questions related to the California Federal Milk  Marketing Order, contact us at