MILK MARKETING

MULTIPLE CHOICE

1. What is the name given to the system utilized by the Federal Milk Marketing Orders that sets producer prices based on the finished dairy product in which the milk was used?
A. Market pricing
B. Hedge pricing
C. Producer equity pricing
D. Classified pricing
ANS: D

2. Americans ate how many pounds of cheese per person in 2022.
A. 40
B. 45
C. 30
D. 34
ANS: A

3. A milk producer would receive the maximum price for milk delivered within a milk marketing order if all of it was used to make  .
A. dry whole milk
B. spoonable (soft) dairy products
C. mozzarella cheese
D. pasteurized milk
ANS: D

4. Butterfat levels set a new record in 2022. Federal order pools with multiple component pricing averaged butterfat.
A.  3.25%
B.  4.08%
C.  5.06%
D.  6.25%
ANS: B

5. A Federal Milk Marketing Order is not authorized unless two-thirds of the affected   milk to the proposed marketing area approves its implementation.
A. dairy cooperatives supplying
B. handlers processing
C. producers supplying
D. handlers processing
ANS: C
6. The _______________ represents the nation's dairy manufacturing and marketing industry, which supports more than 3.3 million jobs that generate $41.6 billion in direct wages and $753 billion in overall economic impact.
A. Dairy Marketing Inc.
B. National Milk Producers Federation
C. National Fluid Milk Processor Promotion Board
D. International Dairy Federation
ANS: D

7. Which of the following is not a current asset?
A. Savings accounts
B. Accounts receivable
C. Cash
D. Accounts payable
ANS: D

8. Which country was the largest producer of milk in 2022?
A. USA
B. China
C. India
D. New Zealand
ANS: C

9. Which cooperative was the largest supplier of raw milk in the world in 2022?
A. Danone
B. Dairy Farmers of America
C. Fonterra
D. Saputo
ANS: B

10. What two dairy product prices are largely determined by export opportunities and greatly affect the milk price paid to farmers?
A. Nonfat dry milk and skim milk powder
B. Cheese and skim milk powder
C. Ice cream and whole milk
D. Nonfat dry milk and yogurt
ANS: A

11. On a percentage basis ________ of all US dairy farms holding a permit to sell milk left the business in 2022. 
A. 3.0%
B.  5.0%
C.  6.4%
D.  7.1%
ANS: C

12. In what season of the year are butter sales typically strongest?
A. Spring
B. Summer
C. Fall
D. Winter
ANS: C

13. What type of dairy product is skyr?
A. Sour crem
B. Yogurt
C. Flavored milk
D. Ice cream
ANS: B

14. What state has the greatest deficit of dairy products when comparing milk production to population?
A. Florida
B. South Dakota
C. Oregon
D. North Carolina
ANS: A

15. Despite the market volume decreasing across the last couple of decades, __________ still remains the most popular kind of dairy product.
A. yogurt
B. ice cream
C. cheese
D. fresh fluid milk
ANS: D

16. To make one gallon of ice cream requires approximately _________ pounds of whole milk.
A. 8
B. 12
C. 22
D. 44
ANS: B

17. Which country is the world’s largest dairy product importer?
A. Mexico
B. China
C. Canada
D. Japan
ANS: B

18. About what share of the US milk is priced under the Federal Milk Marketing orders multiple component pricing?
A.  62%
B.  76%
C.  85%
D.  92%
ANS: D

19. As of 2022, the U.S. dairy industry has a market size of __________.
A. $120.5 billion
B. $99.5 billion
C. $12.4 billion
D. $105.5 million
ANS: A

20. Federal Orders are written to provide or describe?
A. sanitary standards for manufacturing grade milk
B. to whom milk is sold by dealers
C. from whom milk is purchased by dealers
D. payment to milk producers for milk
ANS: D