Changes in Producer Revenue
In June, the new USDA dairy milk formulas for pricing producer milk will be implemented. When that happens, financial comparisons to past milk Class prices will not be compatible with historic prices. (See this post for details.) For that reason, future posts in “MilkPay.com“ will focus on component prices. With the new USDA component prices, […]
About John Geuss
John Geuss, MilkPrice Blog Writer BIOGRAPHY Education Ohio State University – B.S. in Engineering and MBA Work Experience Eastman Kodak – Financial Analyst Borden 22 years – Vice President – Engineering, Plant and Operations Management Adisseo 22 years – Director – IT and Marketing Currently Working as a Consultant in Dairy and Food Processing Certifications […]
Where are the Cows Moving?
Nothing remains the same and certainly the U.S. dairy industry is always changing, geographically changing. The production of milk, the processing of milk, and other facilities in the chain are tightly related. This post will provide an analysis of the most recent geographic changes. The data used in this post is based on 12-month moving […]
Butter, Butter, Butter
Butterfat is the prime contributor to producer revenue. In recent months, butterfat made up more than half of producer revenue. The November 15, 2024 post with the same title as this one covered butter’s long-term financial trends. This post is an update. The data below is based on eight years to get a long-term view. […]
Where are Component Prices Going?
Producer revenue is very dependent on the wholesale prices for dairy products. The USDA conducts weekly surveys and then averages them to provide the basis for the monthly values paid for Federal Order milk. This post will cover the trends beginning in January 2023 and through the most recent weekly prices for these dairy products. […]
Are Retail Prices of Dairy Products Increasing? Is it Causing Lower Consumption?
The prior post covered domestic consumption of cheese, fluid milk, and butter. One of the concerning factors was the slowing growth in cheese consumption. This post will cover the retail prices of those commodities to see if prices changes are causing consumption changes. Fluid milk and butter prices are based on domestic retail prices. The […]
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 […]
