Excerpt from the report Introduction: Over the past 100 years, a complex pricing system has evolved to deal with the problems of coordinating, pricing, and distributing milk. All the various government and private institutions making up the system are designed to work together to insure that the public gets the milk it wants, while the dairy farmer gets the returns he needs to stay in business. The very complexity of the system, however, has baffled many and led to numerous misconceptions. This report aims to help dispel these misconceptions by explaining how the pricing structure is set up and how it works