Are Retail Prices of Dairy Products Increasing? Is it Causing Lower Consumption?
Demand for producer milk is primarily dependent on the consumption of cheese, fluid milk, and butter. A prior post covered the production of producer milk. It is not increasing. The last post covered the increases in butterfat and protein components. They are increasing. The charts below use 12-month moving averages to reduce monthly volatility. Cheese […]
Is Demand for Producer Milk Increasing?
Demand for producer milk is primarily dependent on the consumption of cheese, fluid milk, and butter. A prior post covered the production of producer milk. It is not increasing. The last post covered the increases in butterfat and protein components. They are increasing. The charts below use 12-month moving averages to reduce monthly volatility. Cheese […]
Are Component Levels Growing?
Component levels are growing in every Federal Order. Butterfat levels are growing twice as fast as protein levels. Data in this post are based on 12-Month moving averages to reduce annual volatility. Higher component levels translate to higher revenue per cwt. of milk. BUTERFAT Table I shows the current butterfat levels for every Federal Order. […]
Milk per Cow Increases Throughout Dairy Industry
Milk per cow is increasing and with that, producer revenue per cow is increasing. Chart I shows the rate of growth for milk per cow. The increasing rate is currently 0.7% annually. The prior post covered milk production, which is static, and with a decreasing number of dairy cows, milk per cow increases. The top […]
Is U.S. Milk Production Increasing?
Is milk production in the U.S. increasing? In a word, “NO.” The charts below show the annual changes in milk production for the U.S. and the five largest milk producing states; California, Wisconsin, Texas, Idaho, and New York. These five states represent 54% of the U.S. milk production. All charts are based on 12-month moving […]
USDA Rule Change to Federal Order Pricing – Part IV
The USDA has approved changes to the formulas for Class I, II, III, and IV producer milk. They are now being reviewed by the Federal Orders. If approved, the new formulas will be used for future calculations of the value of producer milk. If not approved by the Federal Order, the Order will be disbanded. […]
USDA Rule Change to Federal Order Pricing- PART III
The prior two posts, Part I and Part II covered Class III and Class IV milk price changes when the new USDA formulas are implemented. This post will cover the impact on Class I milk, the second largest category of Federal Order milk. The reason for covering Class III and IV first is that the […]
USDA Rule Change to Federal Order Pricing- PART II
The prior post covered Class III milk pricing changes resulting from the recently approved new USDA formulas. This post will cover the impact on Class IV milk for butter. In this post, the values of Class IV milk are analyzed for the index prices announced by the Agricultura Marketing Service (AMS) and the impact on […]
USDA Rule Change to Federal Order Pricing- Part I
Amendments to the USDA – Agriculture Marketing Service (AMS) pricing formulas are finalized and must now be approved by each Federal Order. If the Federal Order does not approve the changes, steps will be taken to terminate the Order. In the past, changes were made primarily to “make allowances.” The current changes impact many other […]
Butter, Butter, Butter
Butter and butterfat are driving producer milk prices. Recent posts covering this are listed below. What is Happening to U.S. Dairy Products Consumption? Fluid Milk Consumption is Up! More Good News on Dairy Consumption This post will cover strictly butter. It will cover butter consumption, production, inventory, imports, exports, and wholesale prices. CONSUMPTION Very importantly, […]
