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The practice that distributes payments for milk among the producers within a specific Federal Milk Marketing Order is called?

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The practice that distributes payments for milk among the producers within a specific Federal Milk Marketing Order is called?

(a) Pool pricing

(b) Classified pricing

(c) Support pricing

(d) Differential pricing

I have been asked this question in an online quiz.

My question is from Cattle Health topic in division Cattle Health of Dairy Engineering

1 Answer

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Right choice is (a) Pool pricing

To explain I would say: A milk pool is a financial pooling system used by dairy farmers to ensure that all dairy producers receive similar per-gallon payments for their product at or above a legally regulated minimum.

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