California Department of Food and Agriculture

What is the Mailbox Price?

The "mailbox price" is the net price received by dairy producers for milk sold. The name "mailbox price" conveys the idea that adjustments (up and down) have been made to announced pool prices to estimate the price actually received by dairy producers. It includes all payments received for milk sold and deductions for milk marketing costs (see below for detailed list).

CDFA uses the same procedure to calculate the mailbox price that USDA uses to estimate mailbox prices for federal milk marketing orders.

Total Receipts Marketing Costs & Assessments
• Adjusted gross
• Quality payments
• Component premiums
• Yield premiums
• Seasonal bonuses
• Monthly distributions of cooperative earnings
• Haul and stop charges
• Cooperative dues
• Equity deductions
• Federal assessments
• State assessments
• Lab fees
(Total Receipts) – (Marketing Costs & Assessments) = Mailbox Price