History

As the dairy industry moved from a cottage industry to a commercialized industry, during the early 1900's governments became more involved in dairy markets. There was a need for a common language for buyers and sellers for the accurate depiction of dairy product characteristics, and for public information on production and price transactions. The Office of Markets (the precursor of the Agricultural Marketing Service) was established in 1913, which laid the foundation for market news, standardization and grading activities. In 1917, legislation was passed authorizing these activities. At that time, market news and grading programs were established for dairy and poultry products.

In the 1930's, economic conditions were depressing dairy farmers' income and general financial well-being. Milk marketing is inherently unstable, and it became apparent that local co-ops could not provide the assistance needed by dairy farmers in stabilizing the market. These needs, in addition to a concern for a pure and wholesome supply of milk for consumers, resulted in the Agricultural Marketing Agreement Act of 1937, giving the Federal Government a role in regulating the dairy industry. The stability of the industry was further supported by the Agricultural Marketing Act of 1946, that re-authorized the dairy market news, standardization, and inspection and grading programs.  In 1975, the dairy market news function was brought into the Dairy Division after being separated from the Poultry Division. The Dairy and Tobacco Adjustment Act of 1983 and the 1990 Farm Bill provided authority for the current producer and processor dairy promotion and research programs. These laws provide the authority for our current programs, which are, to this day, focused on providing orderly marketing in milk markets and adequate supplies of high-quality dairy products at reasonable prices.

Scope

Almost 650 full-time employees administer a diverse group of dairy programs in AMS, including the Federal milk order, standardization, inspection and grading, market news, dairy producer promotion and research, fluid milk processor promotion and research, and CCC dairy collection programs. The Federal milk order program is the largest of these programs.

Most of these programs are funded on a user-fee basis or are reimbursed by other agencies or organizations. Over 90 percent of the budget for Dairy Programs is from users or reimbursed fees.

Despite the wide differences in the various dairy programs, all have a common denominator--to provide orderly marketing conditions.

Key Contacts

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