A ruling this week by the USDA that low-carbohydrate milk products ought to be classified for pricing purposes the same as conventional fluid milk beverages got applause from the National Milk Producers Association. They believe it will prevent further farm revenue losses.

At stake in the USDA decision is whether dairy beverages that largely resemble fluid milk – especially the reduced-carb milk drinks – ought to be priced as Class I products, or at the lower Class II price. NMPF argued for the former, and asked the USDA to consider using a protein threshold to determine in which class the beverages should fall. The USDA’s decision on Wednesday basically agreed with NMPF’s contention, which will mean that any product at or above a 2.25% protein level – including low-carb milk drinks – will now be priced at the higher, Class I level.

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