Release No. 153-06

Becky Unkenholz (202) 720-8998

Billy Cox (202) 720-8998

Washington, D.C., June 27, 2006 – The U. S. Department of Agriculture today announced its intent to reconvene a national public hearing to amend the Class III and Class IV price formulas. USDA will reconvene the national hearing, originally held Jan. 24-27, 2006, in Alexandria, Va.., to assure that any changes to manufacturing allowance factors used in Federal order Class III and Class IV product price formulas are appropriate and reflective of manufacturing costs. USDA also welcomes additional proposals addressing the Federal order Class III and Class IV price formulas for further consideration in the reconvened hearing. The additional proposals are due on or before Sept. 30, 2006.

The notice of intent to reconvene the hearing will be published as a proposed rule in the June 28 Federal Register. Copies of the notice may be obtained from the USDA/AMS/Dairy Programs, STOP 0231 - Rm. 2971, 1400 Independence Avenue, SW, Washington, D.C. 20250-0231. The notice is available on AMS' web site: www.ams.usda.gov/dairy.

The notice of intent and additional information is also available from the following market administrator offices:

Northeast: Erik F. Rasmussen USDA/AMS/Dairy Programs P.O. Box 51478, Boston, MA 02205-1478 Tel. (617) 737-7199; email: erasmussen@fedmilk1.com

Appalachian: Harold H. Friedly, Jr.

USDA/AMS/Dairy Programs P.O. Box 18030, Louisville, KY 40261-0030 Tel. (502) 499-0040; email: friedly@malouisville.com

Florida and Southeast: Sue L. Mosley USDA/AMS/Dairy Programs P.O. Box 491778, Lawrenceville, GA 30049

Tel. (770) 682-2501; email: smosley@fmmatlanta.com