THE VIRGINIA DEPARTMENT OF AGRICULTURE AND CONSUMER SERVICES

Milk is the Official Beverage of the Commonwealth

Mission
The Milk Commission ensures that the citizens of the Commonwealth have a constant, available and reasonably priced supply of milk and assures the industry that the supply of milk is equitably priced.

History
The Commission was created in 1934 to supervise the producer price, supply and sale of fluid milk in Virginia. In 1974, the Milk Act was amended to provide for a Commission that is comprised of four consumer members, two milk producers, one milk processor-distributor, and an administrator, who is an ex officio non-voting consumer member. The Commission presently employs eight full-time employees. The Virginia Milk Commission assures Virginians a constant supply of fresh and wholesome Grade "A" milk at a fair and reasonable level. It establishes monthly producer prices at competitive levels with adjacent markets and it preserves market stability. On July 1, 2003, the Commission was merged within the Virginia Department of Agriculture and Consumer Services.

What does the Milk Commission do?

• Assures Virginians a constant supply of fresh and wholesome Grade "A" milk at fair and reasonable prices.
• Maintains an allotment (base) system sufficient to satisfy the demand for fluid milk in Virginia.
• Licenses all milk processors and distributors that sell fluid milk products in Virginia.
• Assigns milk allotments (bases) to all licensed processing distributors entitling them to an equitable share of the milk supply to satisfy their requirements for fluid milk sales in Virginia.

What does the Milk Commission NOT do?

• Control retail and wholesale pricing. Rather, the Commission does not permit any type of distributor from selling at less than cost.
• Establish pricing that guarantees a producer or distributor a profit. Producer prices are derived through a formula which includes six economic factors that result in a producer price that should allow for producers to make a reasonable return on their investments in an efficient dairy operation.
• Regulate health and nutritional requirements of fluid milk. These functions are performed by the State Dept of Health, Division of Food and General Environmental Services 804.864.7466 and the Dept. of Agriculture and Consumer Services, Dairy Services 804.786.1452.
• Receive any form of general fund revenues. The activities of the Commission are funded by funds received from dairy producers, processors and distributors through levied assessments.
• Regulate, control or supervise in any manner non-fluid milk products such as cheese, cream, ice cream, etc. Go to more Frequently Asked Questions about the Milk Commission.