PRICES FOR MILK AND MILK PRODUCTS

                                            Release No. 0652.96
                                                               
                                 Jeanette Young  (202) 720-4095
                                            jyoung@fsa.usda.gov


USDA ANNOUNCES 1997 SUPPORT PRICES FOR MILK AND MILK PRODUCTS


  WASHINGTON, Dec. 31, 1996--The U.S. Department of Agriculture's Commodity
Credit Corporation (CCC) announced today that the support price for milk will
be $10.20 per hundredweight (cwt) during calendar year 1997, effective January
1, 1997.  This support price, which is required by the Federal Agriculture
Improvement and Reform Act of 1996, is a $0.15 reduction from the 1996 level.

  In order to distribute this mandated reduction to have the least effect on
milk prices received by producers, CCC will maintain its current purchase
price for butter at $0.6500 per pound and will reduce its purchase price for
nonfat dry milk by 1.8 cents per pound to $1.0470.  Similarly, the CCC
purchase price for block Cheddar and barrel cheese will be reduced slightly by
1.5 cents per pound to $1.1300 and $1.100 per pound, respectively.  Because
market prices for these products are above the new CCC purchase prices, the
Department expects no negative effect on market prices from this announcement.

  The announced price of $10.20 per cwt is for milk with an annual average
milkfat content of 3.67 percent.  The support price adjusted to a milkfat
content of 3.5 percent by use of the Federal Milk Marketing Order butterfat
differential formula is $10.10 per cwt.

  A tabular summary of the new prices follows:
   
   

CCC PURCHASE PRICES FOR SURPLUS DAIRY PRODUCTS
(Dollars Per Pound)


   
   Products                                  Produced             Produced 
                                        Before            On or After
                                              January 1, 1997       January 1, 1997
   
   
   BUTTER, U.S. Grade A or Higher
                   25-kg. blocks, Salted           0.6500               0.6500
   
   NONFAT DRY MILK (Spray),
          U.S.  EXTRA GRADE
   (but not more than 3.5% moisture):
          Nonfortified (25-kg.  bags)  1/             1.0650               1.0470
          Fortified (Vitamins A & D)                  1.0750               1.0570
                 (25-kg.  bags)
   
   CHEESE: Standard Moisture Basis  2/
         (37.8-39.0% moisture)               
   
          40-lb.  block Cheddar
          U.S. Grade A or higher
          (but not more than 38.5% moisture)          1.1450               1.1300
   
          500-lb.  Barrel Cheese
          U.S. Extra Grade (but not
          more than 36.5% moisture)                   1.1150               1.1000
   
   
   1/     Nonfat dry milk in bags which are classified as "Type X" will be accepted at a
             discount of 0.50 cent (1/2 cent) per pound.
   
   2/     The prices per pound for cheese which contains less than 37.8 percent
             moisture are contained in the Moisture Adjustment Cheese Price Chart (Form
             FSA-150).
   
   For further program information contact: William A. March, (202) 720-4037,
   wmarch@fsa.usda.gov
   
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