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
Restored base acres strengthen cotton risk protection.
National FFA Southern Region Vice President T. Wayne William talks about Wear Blue Day, the history of the blue jacket, and why the tradition continues to inspire pride and connection among FFA members nationwide.
From projected drops in input costs to biofuel expansion and the USDA’s new “One Farmer, One File” initiative, Ag Secretary Brooke Rollins shared key policy priorities at Commodity Classic that put farm issues back in the spotlight.
USDA headquarters downsizing reflects cost pressures and may reshape agency operations.
Farm CPA Paul Neiffer provided insight on updated PLC rate estimates, the role of base acres, and the upcoming enrollment window for ARC and PLC programs.
Farm Bureau economist Danny Munch explains the importance of timely enrollment, and how the program helps dairy producers safeguard their operations against volatile milk markets.

LATEST STORIES BY THIS AUTHOR:

ASFMRA’s George Baird shares insight on spring planting progress, acreage trends, and the financial factors influencing Mid-South farmers this season.
Jeramy Stephens with National Land Realty explains how the Supreme Court’s tariff ruling and ongoing ‘America First’ trade policy raise new questions about U.S. farmland values and agricultural market stability.
The San Antonio Stock Show and Rodeo concluded last night, marking the end of another successful year showcasing youth exhibitors, livestock producers, and the spirit of agriculture.
Kurt Kovarik of Clean Fuels Alliance America joined us to break down the latest developments in the Renewable Fuel Standard rulemaking process and what it could mean for agriculture, energy markets, and rural economies.
Jennifer Tirey of the Illinois Pork Producers Association joined us to discuss efforts to bring pork back into Chicago Public Schools, the nutritional benefits for students, and what the decision could mean for pork producers across the state.
Farmer and retired colonial Joe Ricker joined us to highlight Ag Safety Awareness Program Week, share his work supporting veterans and farmers, and offer guidance on making safety a year-round priority on the farm.
Agriculture Shows
The goal of “Where the Food Comes From” is as simple as its name implies — host Chip Carter takes you along on the journey of where our food comes from — and we don’t just mean to the supermarket (though that’s part of the big picture!). But beyond where it comes from, how it gets there, and all the links in the chain that make that happen.
Join markets specialist Scott Shellady, better known as the Cow Guy, as he covers the market-close, breaking down headlines that drive the commodities and equities markets with commentary from respected industry heavyweights.
Crop yield champions David Hula from Virginia and Randy Dowdy from Georgia are back for another season with the aim of schooling more growers across the country in their winning ways.
“Texas Agriculture Matters” is a fun, informative look at the role of agriculture in our daily lives. The show utilizes the trademark wit and wisdom of its host Commissioner Sid Miller — an 8th-generation farmer-rancher and 12-time World Champion rodeo cowboy — to explore a new Texas ag-related topic each week.