Milk Pay Logo
Adisseo Logo
Contact
  • Producers are Making Money with $22.05 per cwt.

Producers are Making Money with $22.05 per cwt.

Producers are Making Money with $22.05 per cwt.

The August 18 post covered the pricing trends of the commodities used to price produce milk.  The Agricultural Marketing Service (AMS) calculates and publishes data for all Classes of milk.  For Class III, the largest Class, the protein value is calculated as an index based on 3.0% and butterfat is based on 3.5% in total milk.  The resulting Class prices are quoted in many published articles. The 2024 YTD actual levels of milk protein and butterfat are 3.3% and 4.2%.

 

The Agricultural Marketing Service (AMS) calculates and publishes data for all Classes of milk.  For Class III, the largest Class, the protein value is calculated based on 3.0% and butterfat is based on 3.5%.  The resulting Class III prices are quoted in many published articles. The 2024 YTD actual levels of milk protein and butterfat are 3.3% and 4.2%.   

 

 

The actual percent varies within each Federal Order and each herd.  In 2024, the actual milk protein levels have varied from 3.2% to 3.40% within the Federal Orders and butterfat has varied from 3.9% to 4.4%. Herd level data is not available, but the variance would be much wider.

 

This post will compare the producer revenue based on actual component levels and the AMS index prices used currently (the USDA has proposed changing many of the formulas).

 

 

This post will compare the producer revenue based on actual component levels and the current AMS index prices (the USDA has proposed changing many of the formulas).

 

Chart I plots the AMS values based on the current formulas.  Over the last three years, butterfat prices have increased significantly, and milk protein prices have dropped.  (See this post for a review of the pricing formulas.)  The values in Chart I are based on 3% protein and 3.5% butterfat.  The current spread between the value of butterfat and milk protein is a huge $5.21 per cwt.  These are indexes and no one is paid by these values.  They represent the movement of commodity prices with a constant level of components

Chart I - AMS Index Prices for Butterfat and Milk Protein

Chart II lists the real average butterfat and protein values based on the most recent component levels.  The spread between butterfat revenue and milk protein revenue per cwt. is $6.87.   Clearly, butterfat alone is keeping producer milk prices at reasonable levels.  Butterfat provides nearly 200% more revenue in Class III milk than milk protein.  Butterfat is paid in all Classes of milk and all Federal Orders.

Chart II - Producer Revenue Based on Actual Component Levels

The final chart in this post compares the Class III prices based on the AMS index value and the actual producer revenue.  The most important number on the chart is the current Class III actual prices based on actual component levels (the blue line).  The average actual Class III revenue is currently $22.05 per cwt.  The AMS Class III value is $19.87 per cwt.  

This chart shows the increasing spread between the index price and the actual price as component levels have increased.  The current spread is $2.18 per cwt.
Chart III - Class III Prices at Index Formulas and Actual Component Levels
SUMMARY
 
Once again, the same conclusion is reached.  If producers want to stay in business, they need to make higher component levels a priority.  Butterfat is really keeping milk prices at reasonable levels.  The risk is,  how long butterfat prices will remain at record highs?  Enhancing protein levels improves revenue and provides a more balanced revenue as component prices vary.

159 Responses

  59. А кто-нибудь знает, какие товары они чаще всего доставляют?
    Есть ли ограничения?
    Спасибо за совет! Попробую связаться
    с ними, может, получится сэкономить на закупках

    https://femocargo.ru/

    Reply

  83. Everything published made a lot of sense. However, think on this, what if you were to create a killer post title?
    I mean, I don’t want to tell you how to run your
    website, however suppose you added a headline that
    makes people desire more? I mean Producers
    are Making Money with $22.05 per cwt. – Milk Pay is a little vanilla.
    You could glance at Yahoo’s front page and watch how they create article
    titles to get people to open the links. You might add a related video or a
    related pic or two to grab readers interested about what you’ve written. Just my opinion, it would make your
    posts a little bit more interesting.

    Reply

  95. Здравствуйте!
    Когда заблокировали KRAKEN — держите свежий линк ??
    KRAKEN
    С любого устройства.
    Если основное зеркало недоступно — вот запасной вариант: https://kristi.su/threads/37
    Добавьте в закладки.

    Reply

  131. Próbálom a szerencsémet a %anchor_text kaszinóban már jó pár hete, és rendkívül boldog vagyok!
    Kiváló játékválaszték, azonnali utalások, és az support folyamatosan barátságos.
    A promóciók is kiejezetten jók. Mindenképpen ajánlom!

    Reply

  138. Здесь вы можете заказать восхитительный кофе,
    наша кофейня с прекрасной атмосферой лучшая, потому что у нас есть – что подтверждают восторженные отзывы,
    с которыми вы можете ознакомиться по ссылке,
    вот здесь: Дневник повара.
    Эти отзывы доказывают, что мы
    лучшие! Не верите? Тогда прочтите отзывы тут:
    Дневник повара и
    вы убедитесь, что все говорят о нашем качестве.
    Пока вы читаете это, другие гости уже оставляют новые положительные отзывы
    на странице Дневник повара!

    Reply

  142. Linksswork LinkssWork &#8212, это сервис интернет-рекламы , который
    предлагает владельцам сайтов автоматизировать работу с прямыми рекламодателями и организовать удобный прием средств [&#8230,]

    my web site официальное зеркало страницы Атом

    Reply

  151. O play jonny, igualmente chamado como play jonny casino,
    tem se destacado na forma de uma sólida plataforma
    para jogos do jogo digital que combina diversão, proteção junto com uma boa sensação intuitiva
    para os usuários. A crescente crescente aceitação de serviços tipo playjonny
    casino evidencia a necessidade em plataformas online seguras, onde os jogadores
    conseguem desfrutar de diversos apostas sem dificuldades obstáculos.

    O próprio playjonny oferece um portfólio diversificado com jogos, tais como caça-níqueis, roletas,
    blackjack além de mais jogos clássicos, tradicionais, todas bem desenvolvidos a fim de
    proporcionar tanto lazer quanto o potencial para ganhos reais.
    A layout de PlayJonny é intuitiva, dando a chance de que usuários explorem
    facilmente pelas áreas de games, bônus e assistência.
    Além disso, esta plataforma aplica na tecnologia avançada para proteger
    segurança dos informações e operações fiáveis, algo
    essencial para qualquer casino online moderno. Aos jogadores experientes, a confiabilidade junto com clareza é elementos chave,
    além disso play jonny casino se firmou nessa área,
    dando registro válido & regras claras. Experiência
    do jogador no play jonny se torna melhor por imagens nítidas, animações leves & sons realistas os
    quais tornam a experiência mais imersiva além de divertida.
    Além disso é ainda importante destacar que a interface oferece acesso em
    vários dispositivos, para que os jogadores acessem playjonny em PCs, tablets e smartphones sem perda de perda de qualidade
    ou mesmo performance. Essa acessibilidade impacta para aceitação casino play jonny para vários categorias
    de usuários. Ainda, play jonny destaca pela atualizar constantemente no conjunto de jogos,
    garantindo que as novas tendências do jogo online sejam rapidamente incorporadas.
    Dessa forma, jogadores acham continuamente novos jogos & obstáculos, garantindo a atenção & a
    satisfação no play jonny casino. Juntando confiança,
    variedade de jogos e usabilidade, o PlayJonny é visto como sendo segura junto com interessante
    aos jogadores em busca de vivência completa digital.

    Reply

Leave a Reply

Your email address will not be published. Required fields are marked *

Subscribe via email

This field is for validation purposes and should be left unchanged.

Get new posts by email:

Cheese

Dry Whey

Cash prices - Butter / Cheese

FMMO Price Announcements

Resources

Blog Archive

The August 18 post covered the pricing trends of the commodities used to price produce milk.  The Agricultural Marketing Service (AMS) calculates and publishes data for all Classes of milk.  For Class III, the largest Class, the protein value is calculated as an index based on 3.0% and butterfat is based on 3.5% in total milk.  The resulting Class prices are quoted in many published articles. The 2024 YTD actual levels of milk protein and butterfat are 3.3% and 4.2%.

 

The Agricultural Marketing Service (AMS) calculates and publishes data for all Classes of milk.  For Class III, the largest Class, the protein value is calculated based on 3.0% and butterfat is based on 3.5%.  The resulting Class III prices are quoted in many published articles. The 2024 YTD actual levels of milk protein and butterfat are 3.3% and 4.2%.   

 

 

The actual percent varies within each Federal Order and each herd.  In 2024, the actual milk protein levels have varied from 3.2% to 3.40% within the Federal Orders and butterfat has varied from 3.9% to 4.4%. Herd level data is not available, but the variance would be much wider.

 

This post will compare the producer revenue based on actual component levels and the AMS index prices used currently (the USDA has proposed changing many of the formulas).

 

 

This post will compare the producer revenue based on actual component levels and the current AMS index prices (the USDA has proposed changing many of the formulas).

 

Chart I plots the AMS values based on the current formulas.  Over the last three years, butterfat prices have increased significantly, and milk protein prices have dropped.  (See this post for a review of the pricing formulas.)  The values in Chart I are based on 3% protein and 3.5% butterfat.  The current spread between the value of butterfat and milk protein is a huge $5.21 per cwt.  These are indexes and no one is paid by these values.  They represent the movement of commodity prices with a constant level of components

Chart I - AMS Index Prices for Butterfat and Milk Protein

Chart II lists the real average butterfat and protein values based on the most recent component levels.  The spread between butterfat revenue and milk protein revenue per cwt. is $6.87.   Clearly, butterfat alone is keeping producer milk prices at reasonable levels.  Butterfat provides nearly 200% more revenue in Class III milk than milk protein.  Butterfat is paid in all Classes of milk and all Federal Orders.

Chart II - Producer Revenue Based on Actual Component Levels

The final chart in this post compares the Class III prices based on the AMS index value and the actual producer revenue.  The most important number on the chart is the current Class III actual prices based on actual component levels (the blue line).  The average actual Class III revenue is currently $22.05 per cwt.  The AMS Class III value is $19.87 per cwt.  

This chart shows the increasing spread between the index price and the actual price as component levels have increased.  The current spread is $2.18 per cwt.
Chart III - Class III Prices at Index Formulas and Actual Component Levels
SUMMARY
 
Once again, the same conclusion is reached.  If producers want to stay in business, they need to make higher component levels a priority.  Butterfat is really keeping milk prices at reasonable levels.  The risk is,  how long butterfat prices will remain at record highs?  Enhancing protein levels improves revenue and provides a more balanced revenue as component prices vary.

159 Responses

  59. А кто-нибудь знает, какие товары они чаще всего доставляют?
    Есть ли ограничения?
    Спасибо за совет! Попробую связаться
    с ними, может, получится сэкономить на закупках

    https://femocargo.ru/

    Reply

  83. Everything published made a lot of sense. However, think on this, what if you were to create a killer post title?
    I mean, I don’t want to tell you how to run your
    website, however suppose you added a headline that
    makes people desire more? I mean Producers
    are Making Money with $22.05 per cwt. – Milk Pay is a little vanilla.
    You could glance at Yahoo’s front page and watch how they create article
    titles to get people to open the links. You might add a related video or a
    related pic or two to grab readers interested about what you’ve written. Just my opinion, it would make your
    posts a little bit more interesting.

    Reply

  95. Здравствуйте!
    Когда заблокировали KRAKEN — держите свежий линк ??
    KRAKEN
    С любого устройства.
    Если основное зеркало недоступно — вот запасной вариант: https://kristi.su/threads/37
    Добавьте в закладки.

    Reply

  131. Próbálom a szerencsémet a %anchor_text kaszinóban már jó pár hete, és rendkívül boldog vagyok!
    Kiváló játékválaszték, azonnali utalások, és az support folyamatosan barátságos.
    A promóciók is kiejezetten jók. Mindenképpen ajánlom!

    Reply

  138. Здесь вы можете заказать восхитительный кофе,
    наша кофейня с прекрасной атмосферой лучшая, потому что у нас есть – что подтверждают восторженные отзывы,
    с которыми вы можете ознакомиться по ссылке,
    вот здесь: Дневник повара.
    Эти отзывы доказывают, что мы
    лучшие! Не верите? Тогда прочтите отзывы тут:
    Дневник повара и
    вы убедитесь, что все говорят о нашем качестве.
    Пока вы читаете это, другие гости уже оставляют новые положительные отзывы
    на странице Дневник повара!

    Reply

  142. Linksswork LinkssWork &#8212, это сервис интернет-рекламы , который
    предлагает владельцам сайтов автоматизировать работу с прямыми рекламодателями и организовать удобный прием средств [&#8230,]

    my web site официальное зеркало страницы Атом

    Reply

  151. O play jonny, igualmente chamado como play jonny casino,
    tem se destacado na forma de uma sólida plataforma
    para jogos do jogo digital que combina diversão, proteção junto com uma boa sensação intuitiva
    para os usuários. A crescente crescente aceitação de serviços tipo playjonny
    casino evidencia a necessidade em plataformas online seguras, onde os jogadores
    conseguem desfrutar de diversos apostas sem dificuldades obstáculos.

    O próprio playjonny oferece um portfólio diversificado com jogos, tais como caça-níqueis, roletas,
    blackjack além de mais jogos clássicos, tradicionais, todas bem desenvolvidos a fim de
    proporcionar tanto lazer quanto o potencial para ganhos reais.
    A layout de PlayJonny é intuitiva, dando a chance de que usuários explorem
    facilmente pelas áreas de games, bônus e assistência.
    Além disso, esta plataforma aplica na tecnologia avançada para proteger
    segurança dos informações e operações fiáveis, algo
    essencial para qualquer casino online moderno. Aos jogadores experientes, a confiabilidade junto com clareza é elementos chave,
    além disso play jonny casino se firmou nessa área,
    dando registro válido & regras claras. Experiência
    do jogador no play jonny se torna melhor por imagens nítidas, animações leves & sons realistas os
    quais tornam a experiência mais imersiva além de divertida.
    Além disso é ainda importante destacar que a interface oferece acesso em
    vários dispositivos, para que os jogadores acessem playjonny em PCs, tablets e smartphones sem perda de perda de qualidade
    ou mesmo performance. Essa acessibilidade impacta para aceitação casino play jonny para vários categorias
    de usuários. Ainda, play jonny destaca pela atualizar constantemente no conjunto de jogos,
    garantindo que as novas tendências do jogo online sejam rapidamente incorporadas.
    Dessa forma, jogadores acham continuamente novos jogos & obstáculos, garantindo a atenção & a
    satisfação no play jonny casino. Juntando confiança,
    variedade de jogos e usabilidade, o PlayJonny é visto como sendo segura junto com interessante
    aos jogadores em busca de vivência completa digital.

    Reply

Leave a Reply

Your email address will not be published. Required fields are marked *

Subscribe via email

This field is for validation purposes and should be left unchanged.

Get new posts by email:

Cheese

Dry Whey

Cash prices - Butter / Cheese

FMMO Price Announcements

Resources

Blog Archive

New MilkPrice Resources

Check out our resources to learn more from MilkPrice!

Is the Growth in Milk Production Coming from More Cows or More Productive Cows?

The last post covered the growth in milk production.  The growth in …

The Growth in Milk Production

Some of the recent posts to this site covered the growth in …

How the Medical Community is Helping the Dairy Industry Grow

The dairy industry in the U.S. is seeing growth in all Classes …

How Much has the Ratio of Milk Protein to Butterfat Changed?

How to manage the Increase in butterfat is a prime topic.  We …

View All

Latest Blog

Discover more

SmartMail™ : Concerned about fragility of methionine products? Make the SMART choice.

Read full article
Herd of cows in a dairy farm

A SmartLine™ Research Study, Why feed Methionine Pre-partum?

Read full article
SmartLine TM logo

Optimize Cow Performance And Health With Smartamine®M or MetaSmart®

Read full article

New MilkPrice Resources

Check out our resources to learn more from MilkPrice!

Is the Growth in Milk Production Coming from More Cows or More Productive Cows?

Read full article

The Growth in Milk Production

Read full article

How the Medical Community is Helping the Dairy Industry Grow

Read full article

How Much has the Ratio of Milk Protein to Butterfat Changed?

Read full article
View All
Facebook X-twitter Linkedin