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, […]
More Good News on Dairy Consumption
The last two posts, October 25 and November 1, covered U.S. consumption of dairy products. This post will dig a little deeper to understand better what is driving the increased consumption and what is not driving consumption. Typically, if products cost more, less will be sold; if prices are lower, more will be sold. Both […]
Fluid Milk Consumption is Up!
After years of declining consumption, fluid milk sales are increasing! In the prior post, the consumption of butter and cheese was reviewed. Butter consumption continues to increase and cheese consumption is showing very minor increases. Fluid milk purchases are increasing, and it is partially for the same reasons that butter is increasing. The data below includes only […]
What is Happening to U.S. Dairy Products Consumption?
In the prior post, analysis of U.S. dairy consumption was promised. Here it is. Actual per capita consumption data lags significantly, so this analysis will review domestic disappearance of products from wholesale inventories. This is a good analysis for consumption trends as product removed from inventory will quickly be used to resupply consumer and commercial […]
The Wholesale Prices of Four Commodities Control Producer Milk Prices. Where are These Prices Going?
The wholesale commodity prices of Cheddar cheese, butter, dry whey, and nonfat dry milk (NDM) control producer prices. There is constant news on every price move for these commodities, including future movements and the weekly and monthly posts of the Agriculture Marketing Service (AMS). Weekly and monthly movements can be very volatile. Short-term and long-term […]
