Milk Classes: What are they and what’s the difference between them?

Milk classes are often included in market reports, but what does that mean?

Milk is categorized into grades and classes based on its intended use and quality standards. But what’s the difference, and why do they matter?

What is a Milk Grade?

Milk grades denote the quality of the milk product and its suitability for either consumption or use in manufactured products like butter and cheese. There are two primary grades of milk: A, B, and AA.

  • Grade A: The highest grade, suitable for direct consumption as fluid milk. It meets stringent health and sanitation standards. Grade A milk is the only type sold as fluid milk for direct consumption.
  • Grade B: Used for manufacturing products like cheese, butter, and dry milk powder. It does not meet the same quality standards as Grade A.
  • Grade AA: This applies specifically to milk used for butter production. While Grade B milk can also be used for butter production, Grade AA is the highest grade for butter based on flavor, quality, and texture.

What is a Milk Class? What’s the difference between milk Classes I-IV?

The Federal Milk Order System uses four classes to categorize milk based on its end use rather than quality. These classes are often included in dairy market reports, but what is the difference between each of the four classes?

CoBank dairy economist Corey Geiger shares an easy way to remember the difference between different classes of milk products:

  • Class I: “Class I is beverage milk, it’s what you drink,” Geiger says.
  • Class II: “Class II is all the soft products,” he explains. “Think: ice cream, yogurt. Cottage cheese would [also] be in there because it’s a softer cheese, and the creamers that you see in coffee.”
  • Class III: “Class III is the largest class of milk, and it includes cheese and whey,” Geiger explains. “I always tell people we think of a nursery rhyme, ‘Miss Tuffett sat on her muffin, eating her curds and whey.’ Curds and whey are all of Class III.”
  • Class IV: “Class IV is butter and dry milk powders. Dry milk powders and non-fat dry milk are a key export. We export the product throughout the countries around the world, so those are Class III and IV.”

Geiger says Class 4 saw a big jump last year. Butter production was also the highest it has been in 77 years.

Related Stories
Farm CPA Paul Neiffer discusses SDRP payment limits and offers advice for those seeking higher limits.
Lawmakers advance FY27 agriculture funding bill, highlighting support for rural development, school lunches, disease response, and water issues.
Dr. David Anderson says lean beef demand and lighter cow culling are still giving cull cow prices room to push higher.
Culver’s is holding its annual “Scoops of Thanks Day” event, offering a scoop of frozen custard in exchange for a $1 donation supporting agricultural education.
Dr. Jeffrey Gold joins us on Rural Health Matters to discuss the early warning signs of arthritis, the challenges facing rural populations, and steps individuals can take to manage joint health.
The new initiative is helping agricultural leaders strengthen their advocacy and leadership skills.

LATEST STORIES BY THIS AUTHOR:

Mike Schulte with the Oklahoma Wheat Commission joins us to discuss drought stress in the Great Plains and the current outlook for Oklahoma’s winter wheat crop.
Farmers are closely watching upcoming U.S.-China trade talks as rising fertilizer and diesel costs continue to pressure exports, margins, and rural economies.
Autumn Lankford Higgins with the Farm Bureau joins us to discuss data center expansion on farmland, rural policy considerations, and the role of agriculture in emerging digital infrastructure.
In honor of America’s 250th birthday with each pup named after a national park.

U.S. Cattlemen’s Association President Justin Tupper joins us to discuss the DOJ packer investigation, industry competition, and the outlook for cattle producers.
Agriculture Shows
Hosted by Scott “The Cow Guy” Shellady and RFD News Markets Specialist Tony St. James, Commodity Talk delivers expert insight into the day’s ag commodity markets just before the CME opens. Only on RFD-TV and Rural Radio SiriusXM Channel 147.
A look at the news, weather and commodities headlines that drove agriculture markets in the past week.
Everything profits from prairie. Soil, air, water — and all kinds of life! Learn how you can improve your land with prairie restoration, cover crops and prairie strips, while growing your bottom line.
Special 3-part series tells the story of the Claas family’s legacy, which changed agriculture forever.