DAIRY MARKET NEWS WEEK OF MARCH 18-22, 2019

Transcription

1 DAIRY MARKET NEWS WEEK OF MARCH 18-22, 2019 VOLUME 86, REPORT 12 DAIRY MARKET NEWS AT A GLANCE CME GROUP CASH MARKETS (3/22) BUTTER: Grade AA closed at $ The weekly average for Grade AA is $ (-.0005). CHEESE: Barrels closed at $ and 40# blocks at $ The weekly average for barrels is $ (+.1005) and blocks, $ (+.0375). NONFAT DRY MILK: Grade A closed at $ The weekly average for Grade A is $.9605 (-.0060). DRY WHEY: Extra grade dry whey closed at $ The weekly average for dry whey is $ (-.0175). BUTTER HIGHLIGHTS: Salted and unsalted butter production is fairly active throughout the country, while inventories are stable to growing, as plant managers continue adding to their mid-year supplies. Bulk requests and retail print orders are both reported as strong this week. In general cream supplies are still manageable for churning. However, needs of cream from Class II are constantly increasing, therefore, several manufacturers of butter are doing what is necessary to ensure cream availability for near future use. Bulk butter pricing varies among the regions: East, 5.0 cents to 8.0 cents over the market; Central, 5.0 cents to 7.0 cents above the market; West, 3.0 cents to 7.5 cents over the market, with various periods and averages used. CHEESE HIGHLIGHTS: Barrel markets are showing real promise of late, as they vie to close the long-running gap with the CME block price. Barrel and curd producers in the Midwest are reporting positive sales numbers and near-future demand growth, along with balanced inventories. Northeast and Western cheese demand reports point to a general stability. Milk remains available, as reported spot milk was $.50 under to $2 under Class. Cheese production is steady to increasing nationwide. Eastern contacts suggest their cheese stores are steady to growing, while Western cheesemakers say demand is stable enough to alleviate some of their concerns about long inventories. Cheesemakers are hopeful regarding spring. Holidays, basketball playoffs, more grilling and outdoor/community events are some of the demand-related benefits of the season. FLUID MILK: Across much of the nation milk production is inching up along seasonal trends. Contacts in parts of the Northeast and Central regions say production is down a little from last year. And in parts of the southern tier of states, milk output is beginning to plateau. Manufacturers report having plenty of milk for processing. In parts of the country, farmers and milk handlers were contending with weather related issues: flooding across the Central region and a strong winter storm in the mountain states. Condensed skim loads are available in the Northeast and West. Cream is generally available, but industry contacts say ice cream production is picking up and cream is tightening. Cream multiples for all Classes are 1.16 to 1.27 in the East, 1.16 to 1.25 in the Midwest, and 1.05 to 1.18 in the West. DRY PRODUCTS: Low and medium heat nonfat dry milk prices are steady to lower amid slow spot trading activity. High heat nonfat dry milk prices are mixed, being steady to lower in the Central/East region, but narrowing in the West. Dry buttermilk prices held steady in the Central/East and the western mostly price series, but moved lower on the western price range. The dry buttermilk market remains relatively stable. Dry whole milk prices are unchanged. Dry whey prices are lower across the nation, except for the bottom of the Central and Northeast price ranges, which are unchanged. African swine fever, tariff effects and increasing production capacity are each exerting downward pressure on whey prices. Whey protein concentrate prices are unchanged. Lactose prices held steady, except for the bottom of the range, which moved lower. While domestic demand is steady, international lactose demand is giving mixed signals. Rennet and acid casein prices are higher driven by tighter market supplies. ORGANIC DAIRY MARKET NEWS: During February 2019, organic whole milk utilization totaled 12.6 million pounds, down from 14.5 million pounds one year earlier, (-13.0 percent). The February 2019 butterfat content was 3.28 percent, slightly lower from 3.29 percent in Organic reduced fat milk utilization for February this year, about 15.1 million pounds, was down from 18.2 million pounds one year earlier, (-16.7 percent). Meanwhile, butterfat content was 1.33 percent, down from 1.34 percent last year. In the first week of spring, organic retail promotions improved by 68 percent. For organic milk, half gallon packages published the biggest number of ads. Additionally, this week's organic half gallon pack milk prices rose by $0.26 compared to last period's prices. The up-to-date retail milk price spread between organic and conventional half gallon milk is an organic premium of $2.50. The price spread shifted up $0.70 compared to the previous retail survey. NATIONAL RETAIL REPORT: Spring has sprung, and conventional ice cream in oz. containers is the most advertised product/category for the second week, even with a 16 percent decrease in ad numbers week over week. Shredded cheese in one-pound bags and organic half gallon bottled milk ads held the biggest increases from last week. The national weighted average advertised price for conventional milk half gallons is $1.85, compared to $4.35 for organic milk half gallons, an organic price premium of $ CONTINUED ON PAGE 1A- Product Highlights/CME/DMN at a Glance 1 Weekly CME Cash Trading/Butter Markets/NDPSR 2 Cheese Markets 3 Fluid Milk and Cream 4 Nonfat Dry Milk/Dry Buttermilk/Dry Whole Milk 5 TABLE OF CONTENTS Dry Whey/WPC 34%/Lactose/Casein 6 U.S. Dairy Cow Slaughter / Class Milk s 7 Organic Dairy Market News 8 February Milk Production 9 April Advanced s 10 January Estimated Sales (Updated) 11 March Retail s for Milk 12 Dairy Graphs G1 National Retail Report Dairy Dairy Market News Contacts

2 WEEK OF MARCH 18-22, 2019 DAIRY MARKET NEWS VOLUME 86, REPORT 12 -CONTINUED FROM PAGE 1- DAIRY MARKET NEWS AT A GLANCE FEBRUARY MILK PRODUCTION (NASS): Milk production in the 23 major States during February totaled 16.0 billion pounds, up 0.6 percent from February January revised production, at 17.5 billion pounds, was up 1.3 percent from January The January revision represented a decrease of 7 million pounds or less than 0.1 percent from last month's preliminary production estimate. Production per cow in the 23 major States averaged 1,838 pounds for February, 21 pounds above February This is the highest production per cow for the month of February since the 23 State series began in The number of milk cows on farms in the 23 major States was 8.72 million head, 47,000 head less than February 2018, but unchanged from January APRIL ADVANCED PRICES (FMMO): Under the Federal milk order pricing system, the base Class I price for April 2019 is $15.76 per cwt. This price is derived from the advanced Class IV skim milk pricing factor of $7.05 and the advanced butterfat pricing factor of $ The base Class I price decreased $0.22 per cwt when compared to the previous month of March A Class I differential for each order's principle pricing point (county) is added to the base price to determine the Class I. The advanced Class IV skim milk pricing factor is $7.05. Thus, the Class II skim milk price for April 2019 is $7.75 per cwt, and the Class II nonfat solids price is $ The two-week product price averages for April 2019 are: butter $2.2854, nonfat dry milk $0.9587, cheese $ and dry whey $ JANUARY MILK SALES (UPDATED) (USDA, FMMO, AND CDFA): In January 2019, 4.2 billion pounds of packaged fluid milk products were shipped by milk handlers. This was 0.6 percent lower than a year earlier. Estimated sales of total conventional fluid milk products decreased 0.5 percent from January 2018 and estimated sales of total organic fluid milk products decreased 1.3 percent from a year earlier. MARCH RETAIL PRICES FOR MILK (FMMO): U.S. simple average prices for March are: $3.28 per gallon for conventional whole milk, $3.22 per gallon for conventional reduced fat 2% milk, $4.07 per half gallon organic whole milk, and, $4.07 per half gallon organic reduced fat 2% milk. NOTICE -USDA ANNOUNCES AMENDMENT TO CLASS I SKIM MILK PRICE FORMULA: The U.S. Department of Agriculture (USDA) announced March 8, 2019, an amendment to the Class I skim milk price formula under the Federal Milk Marketing Order (FMMO) program, in accordance with the Agriculture Improvement Act of 2018 (2018 Farm Bill). The change is effective May 1, Currently, the Class I skim milk price is calculated using the higher of the monthly advanced pricing factors for Class III or Class IV skim milk, which reflect dairy product survey prices for the two weeks prior to the price announcement, plus the applicable adjusted Class I differential. Because market prices for these surveyed products fluctuate, the higher of factor used to determine the Class I skim milk price can change, increasing risk and uncertainty associated with hedging. To address this issue, Congress determined that the formula for the FMMO Class I skim milk price should be the average of the monthly Class III and Class IV advanced pricing factors plus $0.74 per hundredweight plus the applicable adjusted Class I differential. In accordance with the 2018 Farm Bill, the amendment is effective indefinitely, until further modified, and may not be modified sooner than two years after the effective date of this rule. The Federal Register notice is available at documents/2019/03/11/ /federal-milk-marketing-ordersamending-the-class-i-skim-milk-price-formula -1A-

3 DAIRY MARKET NEWS, MARCH 18-22, VOLUME 86, REPORT 12 COMMODITY MONDAY MAR 18 TUESDAY MAR 19 WEDNESDAY MAR 20 THURSDAY MAR 21 FRIDAY MAR 22 :: WEEKLY CHANGE :: WEEKLY AVERAGE CHEESE BARRELS $ (N.C.) $ ( ) $ ( ) $ ( ) $ (N.C.) :: :: ( ) :: :: $ ( ) 40 POUND BLOCKS $ (N.C.) $ ( ) $ (N.C.) $ (N.C.) $ ( ) :: :: ( ) :: :: $ ( ) NONFAT DRY MILK GRADE A $ (N.C.) $ ( ) $ ( ) $ (N.C.) $ (N.C.) :: :: ( ) :: :: $ ( ) BUTTER GRADE AA $ ( ) $ ( ) $ (N.C.) $ (N.C.) $ ( ) :: :: ( ) :: :: $ ( ) DRY WHEY EXTRA GRADE $ ( ) $ ( ) $ ( ) $ ( ) $ ( ) :: :: ( ) :: :: $ ( ) s shown are in U.S. dollars per lb. in carlot quantities. Carlot unit weights: CHEESE, 40,000-44,000 lbs.; NONFAT DRY MILK, 41,000-45,000 lbs.; BUTTER, 40,000-43,000 lbs.;dry WHEY, 41,000-45,000 lbs. Weekly Change is the sum of Daily Changes. Weekly Average is the simple average of the Daily Cash Close prices for the calendar week. Weekly Average Change is the difference between current and previous Weekly Average. Computed by Dairy Market News for informational purposes. This data is available on the Internet at NOTICE: Five days of trading information can be found at BUTTER MARKETS NORTHEAST Butter churns are fairly active this week in the East. Operations are churning both salted and unsalted butter. Inventories are stable to growing, as operations are adding to their mid-year supplies. Butter plant managers report cream continues to be available, yet manufacturers are seeing cream supplies tightening up a bit. Regional cream prices saw an uptick in multiples. Furthermore, some market participants relay seeing slightly fewer cream offers currently. Suppliers are actively preparing for the spring holiday, and orders from many private label brands are being received. Spot market activity is steady to slower. The bulk butter price is reported 5 cents to 8 cents over the market of the CME Group, with various time frames and averages used. s for: Eastern U.S., All First Sales, F.O.B., Grade AA, Conventional, and Edible Butter Bulk Basis Pricing - 80% Butterfat $/LB: Secondary Sourced Information: This week's Global Dairy Trading (GDT) Event 232 reported positive price percentages for butter, at +9.3 percent for all contracts. This week, a cooperative export assistance program accepted requests for export assistance to sell million pounds (479 metric tons) of butter. CENTRAL As recently as last week, butter production activity was going full-bore throughout the region. This week, some shifts in production were made. In the South-Central, churning is unchanged in some cases. Some upper Midwest plant managers reported a slowdown in churning and cream purchases, as butter supplies are nearing sufficient levels for spring demand upticks. Some other Central region butter makers relay a slight increase in churning just ahead of the spring holidays. Cream remains available at similar prices, but butter makers do not expect the current affordability to remain long term. Butter sales are improving, as expected, ahead of the holidays. Retail establishments are readying the aisles for next month. CME butter markets are steady. s for: Central U.S., All First Sales, F.O.B., Grade AA, Conventional, and Edible Butter Bulk Basis Pricing - 80% Butterfat $/LB: WEST In the West, butter inventories remain manageable. According to market players, stocks in warehouses haven't built up as much as usual. Bulk and retail print orders are both strong. Weather conditions are warmer, consequently food service requests for butter have improved a bit due to people going more to restaurants. With the spring break near the corner at some western localities, industry contacts expect the food service and eateries to maintain active orders. Ice cream production is likely to ramp up in the coming weeks, therefore butter makers are doing what is necessary to assure that cream will be available to them for future usages. Some butter brokers are looking for good buying opportunities, but requesting a delay in product shipment dates. Output levels are stable. Bulk butter market prices are unchanged from a week ago, ranging $.0300-$.0750 above the market. s for: Western U.S., All First Sales, F.O.B., Grade AA, Conventional, and Edible Butter Bulk Basis Pricing - 80% Butterfat $/LB: CONTINUE ON PAGE 2A NATIONAL DAIRY PRODUCTS SALES REPORT U.S. AVERAGES AND TOTAL POUNDS WEEK ENDING 03/16/2019 BUTTER ,916,128 CHEESE 40# BLOCKS ,778,178 CHEESE BARRELS 38% MOISTURE ,150,348 DRY WHEY ,719,889 NDM ,827,414 Further data and revisions may be found on the internet at:

4 DAIRY MARKET NEWS, MARCH 18-22, A- VOLUME 86, REPORT 12 Secondary Sourced Information: CONTINUED FROM PAGE 2 The Grade AA butter price at the CME Group on Wednesday closed at $2.2800, compared to the weekly average price of $ from last week. Dairy Products Report Butter Summary Released March 14, 2019, by the National Agricultural Statistics Service (NASS), Agricultural Statistics Board, United States Department of Agriculture (USDA). This week, a cooperative export assistance program accepted requests for million pounds of butter (479 metric tons). So far this year, the program has assisted member cooperatives who have contracts to sell million pounds of butter (82% milkfat) in export markets. National Retail Report Dairy Butter Summary Advertised s at Major Retail Supermarket Outlets ending period of 3/15/2019 to 3/21/2019 Butter 1# Weighted Average National This Period Last Week Last Year Organic $5.29 $5.51 $4.99 Conventional $3.12 $3.52 $3.33 s This Period Regional (Conventional) Wtd. Ave. Low High Alaska n.a. n.a. n.a. Hawaii $4.29 $4.29 $4.29 Midwest $3.48 $3.48 $3.48 Northeast $2.74 $1.99 $3.99 Northwest $3.54 $2.99 $3.99 South Central $3.46 $2.99 $3.99 Southeast $2.81 $2.79 $3.00 Southwest $3.51 $2.99 $3.99 Butter Production States and United States: January 2018 and January 2019 Monthly Production (1000 pounds) Percent Change from Jan. Dec. Jan. Jan. Dec. Region United States 182, , , Atlantic 19,592 19,193 20, Pennsylvania 8,860 8,787 8, Central 75,714 74,782 83, West 86,782 77,942 85, California 53,872 46,385 52, Butter Production Cumulative Production January - January Cumulative Production Percent Change (1000 pounds) from Report Month January 182, , s This Period Regional (Organic) Wtd. Ave. Low High Alaska n.a. n.a. n.a. Hawaii n.a. n.a. n.a. Midwest n.a. n.a. n.a. Northeast $5.29 $5.29 $5.29 Northwest n.a. n.a. n.a. South Central n.a. n.a. n.a. Southeast n.a. n.a. n.a. Southwest n.a. n.a. n.a.

5 DAIRY MARKET NEWS, MARCH 18-22, VOLUME 86, REPORT 12 NORTHEAST Milk remains available in the Northeast, yet some market participants relay milk production is down a bit from a year ago. Class III production is fairly active in the region. Cheese makers are receiving enough milk volumes to keep cheddar and Italian cheese production schedules fairly active. Supplies are stable to growing at this time. Currently, domestic cheese demand is fairly stable. Cheddar cheese spot market trading activity and prices have increased. Northeast wholesale cheese prices for cheddar and Muenster shifted lower by $0.0225, however the process cheese prices moved up by $ The Grade A Swiss price is unchanged this week. WHOLESALE SELLING PRICES: DELIVERED DOLLARS PER POUND(MIXED LOTS ( POUNDS)) Cheddar 40 pound Block Muenster Process American 5 pound Sliced Swiss pound Cuts Secondary Sourced Information: This week's Global Dairy Trading (GDT) Event 232 released positive price changes for cheddar cheese, at +3.9 percent for all contracts. This week, a cooperative export assistance program accepted requests for export assistance to sell million pounds (1,044 metric tons) of cheese. CHEESE MARKETS earnest. Manufacturers say they are running near full capacity and milk intakes are climbing. In some parts of the region, spring flush is at hand. In the West, wholesale prices were up $.0150 for process, but down $.0225 for cheddar block, cuts and Monterey Jack. Swiss cut wholesale prices are unchanged from the previous week. WHOLESALE SELLING PRICES: DELIVERED DOLLARS PER POUND(MIXED LOTS ( POUNDS)) Cheddar 10 pound Cuts Cheddar 40 pound Block Monterey Jack 10 pounds Process American 5 pound Loaf Swiss 6-9 pound Cuts FOREIGN TYPE The German cheese market is well balanced. Consistent good requests from both the domestic and the global markets are keeping cheese stocks at lower levels. As Southern Europeans get ready for the next holiday, their orders are stimulating the demand for German cheese. No supplies are available for additional order fulfillment because most output quantities are presold ahead of being produced. In the EU, cheese production in 2018 was 0.2 percent above previous year levels, whereas international exports shifted up 0.5 percent in 2018 when compared to In the U.S., the prices for wholesale blue, gorgonzola, parmesan Italy, and Romano dropped by $ All other prices remain unchanged from the previous week. MIDWEST Spot milk availability into cheese production was similar to the past few weeks. Reported spot prices ranged from $.50 to $2 under. Some cheesemakers in the upper Midwest relay multiple dairy farms, their milk patrons, are shuttering no later than this spring. That said, milk is still available and is expected to remain through the spring flush season. Cheese demand reports are more positive with spring s arrival. Cheese curd sales are picking up. Also, barrel producers are reporting positive sales for the second week in a row. Pizza cheese sales are a little slower to pick up, but those producers expect improved sales as early as next week or into early April. Cheese market tones continue to improve, as barrel prices have nearly closed the price gap, closing within a nickel of block prices on Wednesday. Midwestern wholesale prices are unchanged for Swiss Cuts, up $.0150 for process, but down $.0225 for other types. WISCONSIN WHOLESALE SELLING PRICES: DELIVERED DOLLARS PER POUND(MIXED LOTS ( POUNDS)) Blue 5 pounds Brick 5 pounds Cheddar 40 pound Block Monterey Jack 10 pounds Mozzarella 5-6 pounds Muenster 5 pounds Process American 5 pound Loaf Swiss 6-9 pound Cuts WHOLESALE SELLING PRICES: FOB DISTRIBUTORS DOCK DOLLARS PER POUND ( POUNDS, MIXED LOTS) : NEW YORK VARIETY : IMPORTED : DOMESTIC : : Blue : : * Gorgonzola : : * Parmesan : -0- : * Romano : -0- : * Sardo Romano (Argentina) : : -0- Reggianito (Argentina) : : -0- Jarlsberg : : -0- Swiss : -0- : Swiss (Finland) : : -0- * = change. COLD STORAGE WEEKLY COLD STORAGE HOLDINGS - SELECTED STORAGE CENTERS IN THOUSAND POUNDS - INCLUDING GOVERNMENT STOCKS : BUTTER CHEESE 03/18/2019 : : /01/2019 : : CHANGE : 3972 : % CHANGE : 12 : -3 WEST Western cheese demand is steady in domestic channels and some export markets. Manufacturers say there is little push back on contract shipments. However, new business has been slow to develop. Cheese prices are supported, and the gap between barrels and blocks is narrowing. Heavy cheese inventories currently do not seem to be a major concern for processors. Demand appears to be able to keep pace with production. Cheesemakers are hopeful that the various spring basketball tournaments pull large amounts of mozzarella on pizza, and favorable spring weather launches the grilling season in CONTINUED ON PAGE 3A

6 DAIRY MARKET NEWS, MARCH 18-22, A- VOLUME 86, REPORT 12 CONTINUED FROM PAGE 3 National Retail Report Dairy Cheese Summary Advertised s at Major Retail Supermarket Outlets ending during the period of 3/15/2019 to 3/21/2019 Cheese 8 oz. Blocks Weighted Average National This Period Last Week Last Year Organic n.a. n.a. n.a. Conventional $2.06 $2.33 $2.26 CHEESE MARKETS Cheese Production United States: Jan 2018 and Jan 2019 Percent Change Monthly Production (1000 pounds) from Total Cheese 1 Jan. Dec. Jan. Jan. Dec. Region United States 1,096,520 1,092,970 1,100, Atlantic 145, , , Central 496, , , West 454, , , Regional (Conventional) Wtd. Ave. Low High Alaska n.a. n.a. n.a. Hawaii n.a. n.a. n.a. Midwest $1.83 $1.67 $1.88 Northeast $2.08 $1.66 $2.99 Northwest $2.10 $1.50 $2.99 South Central $1.88 $1.66 $2.00 Southeast $2.04 $2.00 $2.50 Southwest $2.26 $1.67 $3.00 Cheese 8 oz. Shred Weighted Average National This Period Last Week Last Year Organic $3.49 n.a. n.a. Conventional $2.05 $2.44 $2.23 Regional (Conventional) Wtd. Ave. Low High Alaska $4.29 $2.50 $4.99 Hawaii n.a. n.a. n.a. Midwest $1.98 $1.25 $2.50 Northeast $1.85 $1.33 $2.50 Northwest $2.31 $1.99 $2.50 South Central $1.95 $1.66 $2.50 Southeast $2.02 $1.88 $2.99 Southwest $2.30 $1.67 $3.00 Monthly Production (1000 pounds) Percent Change from American Cheese 2 Jan. Dec. Jan. Jan. Dec. Region United States 433, , , Atlantic 27,431 28,660 29, Central 216, , , West 190, , , Monthly Production (1000 pounds) Percent Change from Italian Cheese Jan. Dec. Jan. Jan. Dec. Region United States 474, , , Atlantic 62,645 60,640 60, Central 191, , , West 220, , , Cheese Production Cumulative Production January - January Percent Cumulative Production Change (1000 pounds) from Cheese Type Total cheese 1 1,096,520 1,100, American Cheese 2 433, , Italian Cheese 474, , / Excludes cottage cheese. 2/ Includes cheddar, colby, washed curd, stirred curd, Monterey and jack.

7 DAIRY MARKET NEWS, MARCH 18-22, VOLUME 86, REPORT 12 Northeast milk production is increasing. Milk remains available in the region, yet market participants relay milk production is down a bit from a year ago. Some operations are receiving enough milk, while others are not at capacity. There are reports suppliers are preparing for spring holiday commitments. Mid-Atlantic milk output is seasonally increasing. A few operations are under capacity. Southeast milk production is slightly moving up. Class I sales are steady to a bit lower. There are reports of milk cuts and a few add-ons in various manufacturing operations. In general, milk is in fairly good balance in the Southeast. Florida milk output has leveled off. Even with spring break taking place in many schools, Class I sales are steady to a bit stronger than expected. There are reports of no milk leaving the area at this time. Market participants report cream continues to be available, yet some manufacturers are seeing cream supplies tightening up a bit. Regional cream prices saw an increase in multiples, ranging Furthermore, some market participants relay seeing slightly fewer cream offers currently. Cream demand is steady to slightly picking up. More condensed skim loads are moving from the Northeast to the Midwest. There are reports condensed skim is fairly available, yet volumes are tightening up a bit. Northeastern U.S., F.O.B. Condensed Skim - Class II; $/LB Solids: Class III; $/LB Solids: Northeastern U.S., F.O.B. Cream Multiples - All Classes: Class II; $/LB Butterfat: Secondary Sourced Information: EAST MILK PRODUCTION: According to NASS, milk production in the 23 major states during February 2019 totaled 16.0 billion pounds, up 0.6 percent from one year ago. Eastern states monthly milk production and percent changes compared to a year ago are as follows: February 2019 Milk Production, (USDA-NASS) cases some plants had to refuse milk due to power outages. Farm milk, according to some milk handlers, has slipped slightly year over year. Bottlers are slower to take on milk with spring break ahead, or already occurring in some areas of the region. Milk prices into cheese production were $.50 to $2 under, steady with last week, but some late week reports show that prices are expected to increase next week. Processors in the upper Midwest continue to report ongoing dairy farm closures, some as early as the end of March. Other milk patrons have told their customers when feed supplies dry up, they are exiting the business - no later than this spring. Cream multiples continued to exhibit tightening availability. Ice cream producers are slowly picking up production. Notably, butter production reports are mixed this week after months of steadily heavy production. Midwestern U.S., F.O.B. Cream Multiples - All Classes: Class II; $/LB Butterfat: Multiples - Class II: The NASS Milk Production report noted February 2019 milk production in the 23 selected states was billion pounds, 0.6 percent above a year ago. Milk cows in the 23 selected states totaled 8.7 million head, 47,000 head less than a year ago. The following table shows Central states included in the report and the monthly milk production changes compared to a year ago: February 2019 Milk Production, (USDA-NASS) (Million Lb.) % Change From 1 Year Ago Illinois 144 Indiana Michigan Iowa Kansas Minnesota Ohio South Dakota Texas 1, Wisconsin 2, (Million Lb.) % Change From 1 Year Ago Florida New York 1, Pennsylvania Vermont Virginia MIDWEST Central contacts are expressing concern about current flooding, while the system moves quickly from the lower to the upper Midwest. The snowpack is melting quickly with rising spring temperatures, and farmers in Wisconsin and Minnesota have already, or are expecting to, experience what farmers in Nebraska, Iowa, Illinois and other areas are currently undergoing. Undoubtedly, the effects of what these floods will bring on milk production are far from being determined and could be long-lasting, particularly regarding planting and future feedstocks, not to mention damage or destruction to dairy facilities and herds. Strong winds in the lower portion of the region, from mid to late last week, caused some hauling issues and power outages. In some cases, milk could not even get to facilities, in other WEST California milk production is inching up and dairy product manufacturers are staying busy, running their dryers near full performance levels. Overall, milk intakes are consistent with previous years' levels. The processing of the holiday dairy products is slowly ramping up. Retail milk orders and bottled milk demand are unchanged from a week ago. In Arizona milk production is going to the satisfaction of dairy farmers. Milk supplies are adequate to fulfill all end users' needs. Dryers are kept at full or close to full manufacturing capacities. Butter churning remains active. With a few schools on spring break or just coming back from spring break, there is less milk moving into Class I accounts. The storms and high winds in some parts of New Mexico have caused some disruptions in milk processing toward the end of last week. This week, milk processing activities are back to normal aside from minor milk diversions from their original delivery destinations to other plants. Milk production is generally flat to a bit up in the state. Class II and III sales are up, whereas Class I demand is somewhat lower. Pacific Northwest milk production is rebounding and increasing as spring issues into the region. Most processing facilities have plenty of milk. Manufacturers CONTINUED ON PAGE 4A

8 DAIRY MARKET NEWS, MARCH 18-22, A- VOLUME 86, REPORT 12 CONTINUED FROM PAGE 4 are running near full capacity. A few processors, however, report intakes are off a bit due to herd dispersal sales or remaining herd health issues from the winter storms last month. Bottling demand is stable. Milk production in the mountain states of Idaho, Utah and Colorado is strong. Intakes are in balance with processing needs, and most milk can find a home nearby. Discounted milk loads are not widely available. Initial reports out of Colorado suggest that last week s winter storm did not result in significant losses of milk cows. However, due to blizzard conditions and closed roads, some farms missed milk pickups and had to dispose of several tanker loads of milk. There was a very little change to condensed skim availability throughout the West. With current strong milk output, condensed skim is in good supply. Cream supply is adequate is the West. According to industry contacts, ice cream production is set to soon ramp up; therefore, cream demand will likely increase. Cream cheese manufacturing is also active ahead of the holiday. Currently, cream sales are stable and great price discounts are not easily found. Cream multiples for all Classes are Western U.S., F.O.B. Cream Multiples - All Classes: Secondary Sourced Information: Milk pooled on the Pacific Northwest Order 124 totaled million pounds in February Class I utilization accounted for 23.0 percent of producer milk. The uniform price was up $0.13 from last month, and $1.62 above the same month a year ago. Milk pooled on the Arizona Order 131 totaled million pounds in February Class I utilization accounted for about 23.6 percent of producer milk. The uniform price was up $0.16 from last month, and $1.85 above the same month a year ago. The NASS Milk Production report noted February 2019 milk production in the 23 selected states was 16.0 billion pounds, 0.6 percent above a year ago. Milk cows in the 23 selected states totaled 8.72 million head, 47,000 head less than a year ago. The following table shows western states included in the report and the monthly milk production changes compared to a year ago: Released March 14, 2019, by the National Agricultural Statistics Service (NASS), Agricultural Statistics Board, United States Department of Agriculture (USDA). Ice Cream, Regular (Hard) Production States and U.S. : 2018 & 2019 Monthly Production (1000 pounds) Percent Change from Jan. Dec. Jan. Jan. Dec. Region United States 54,718 43,687 52, Atlantic 12,192 11,257 12, Pennsylvania 2,881 3,831 2, Central 32,880 25,296 31, Missouri 4,315 1,852 1, Ohio 2,018 1,960 2, West 9,646 7,134 9, California 4,800 2,959 4, Oregon 894 1,141 1, Utah 2, , Ice Cream, Regular (Hard) Cumulative Production Jan. - Jan. Cumulative Production Percent Change (1000 pounds) from Report Month January 54,718 52, February 2019 Milk Production, (USDA-NASS) (Million Lb.) % Change From 1 Year Ago Arizona California Colorado Idaho New Mexico Oregon Utah Washington CONTINUED ON PAGE 4B

9 DAIRY MARKET NEWS, MARCH 18-22, B- VOLUME 86, REPORT 12 CONTINUED FROM PAGE 4A National Retail Report Dairy Fluid Milk Summary Advertised s at Major Retail Supermarket Outlets ending during the period of 3/15/2019 to 3/21/2019 Half Gallon, All Fat Tests Weighted Average National This Period Last Week Last Year Organic $4.09 $3.61 $3.76 Conventional $2.29 $2.39 $2.56 Regional (Conventional) Wtd. Ave. Low High Alaska n.a. n.a. n.a. Hawaii n.a. n.a. n.a. Midwest $1.99 $1.99 $1.99 Northeast $2.42 $2.19 $2.50 Northwest $2.69 $2.69 $2.69 South Central $2.12 $1.59 $2.69 Southeast n.a. n.a. n.a. Southwest $1.99 $1.99 $1.99 Regional (Organic) Wtd. Ave. Low High Alaska n.a. n.a. n.a. Hawaii n.a. n.a. n.a. Midwest n.a. n.a. n.a. Northeast $4.42 $3.99 $4.99 Northwest $2.50 $2.50 $2.50 South Central $3.99 $3.99 $3.99 Southeast $4.28 $4.28 $4.28 Southwest $3.90 $3.49 $3.99 Gallon, All Fat Tests Weighted Average National This Period Last Week Last Year Organic n.a. $4.99 $6.04 Conventional $2.81 $2.70 $2.55 Regional (Conventional) Wtd. Ave. Low High Alaska n.a. n.a. n.a. Hawaii n.a. n.a. n.a. Midwest n.a. n.a. n.a. Northeast $2.99 $2.99 $2.99 Northwest $2.75 $2.50 $2.99 South Central $3.33 $2.99 $3.99 Southeast n.a. n.a. n.a. Southwest $1.99 $1.99 $1.99

10 DAIRY MARKET NEWS, MARCH 18-22, VOLUME 86, REPORT 12 NONFAT DRY MILK, BUTTERMILK & WHOLE MILK s represent carlot/trucklot quantities for domestic and export sales packaged in 25 kg. or 50 lb. bags, or totes, spray process, dollars per pound. NONFAT DRY MILK - CENTRAL AND EAST CENTRAL: Low/medium heat nonfat dry milk (NDM) markets continue to face resistance, as DMN prices slid on the top of the price range and bottom of the mostly series. Generally, spot trading activity is fairly slow, but some bulk loads were found at discounts by regional end users. Some upper Midwest end users are finding deals/ offers from the top to bottom of the region. NDM drying is increasing, as a result of some increased condensed skim finding its way into the region. High heat NDM prices slid on the bottom end of the range. High heat NDM producers regionally suggest supplies are in balance, and interest is steady. NDM markets are somewhat bearish, but contacts suggest the bottom is near. They suggest recent slowdowns are caused by a quiet buyers' market in Mexico, and those will pick up in the near term. Some contacts expect NDM to hold somewhat steady throughout 2019, similar to the relatively stable butter markets. EAST: F.O.B. prices for low/medium heat nonfat dry milk dropped concurrently at the topmost end of the range and at the bottommost end of the mostly price series, following declines in multiple basis points. The state of the market is weak as reflected by lower interest from purchasers and end users. Manufacturers have plenty to offer and are actively looking for potential buyers. However, spot buyers are not responding much to lower prices. Low/medium heat NDM outputs are ongoing and will likely increase in the forthcoming weeks with the spring flush. On the other hand, high heat nonfat dry milk prices shifted down at the bottom of the range, but production schedules remain the same as last week. Demand is stable and predictable as it is mainly based on contractual obligations. Inventories are still low, while market conditions are flat. s for: Eastern and Central U.S., All First Sales, F.O.B., Extra Grade & Grade A, Conventional, and Edible Nonfat Dry Milk - Low & Medium Heat; $/LB: Mostly - Low & Medium Heat; $/LB: s for: Eastern and Central U.S., All First Sales, F.O.B., Extra Grade & Grade A, Conventional, and Edible Nonfat Dry Milk - High Heat; $/LB: NONFAT DRY MILK - WEST Western low/medium heat nonfat dry milk (NDM) free on board spot prices shifted down on the range and are steady to lower on the mostly series, ensuing from recent downtick trends on spot sales and variable contractual pricing indices. The market is showing some symptoms of weakness as the current regional supply of NDM is broad and seems to be above requests from buyers. However, with the spring festivities approaching, some NDM processors anticipate improved demands and prices, especially from the bakery sector. In fact, some manufacturers do not hesitate to hold some stocks from recent production with the expectation of selling it at a higher price during Q2. Meanwhile, several buyers/end users are willing to delay spot purchases and/or Q2 contract negotiations for the upcoming two weeks, anticipating another dip in prices. Low/medium heat NDM production is ongoing, encouraged by ample farm milk intakes. Although vast loads of condensed skim are clearing into Class II/III, condensed skim volumes are more than adequate for NDM/SMP output. High heat NDM prices are mixed on a narrower range. This week, the spot trading activity is light as availability is limited. In some balancing plants across the region, production is slightly up in order to meet customers needs for the upcoming spring holidays baking needs. s for: Western U.S., All First Sales, F.O.B., Extra Grade & Grade A, Conventional, and Edible Nonfat Dry Milk - Low & Medium Heat; $/LB: Mostly - Low & Medium Heat; $/LB: s for: Western U.S., All First Sales, F.O.B., Extra Grade & Grade A, Conventional, and Edible Nonfat Dry Milk - High Heat; $/LB: Dairy Products Report Nonfat Dry Milk, Human Summary Released March 14, 2019, by the National Agricultural Statistics Service (NASS), Agricultural Statistics Board, United States Department of Agriculture (USDA). Nonfat Dry Milk, Human Production States & United States: 2018 & 2019 Monthly Production (1000 pounds) Percent Change from Jan. Dec. Jan. Jan. Dec. Region United States 160, , , Atlantic 25,745 37,285 27, Pennsyl- 16,260 15,546 14, Central 32,166 32,313 35, West 102,390 73, , Califor- 57,858 37,524 65, Other States 1/ 86,183 89,671 92, / States not shown when fewer than 3 plants reported or individual plant operations could be disclosed. Nonfat Dry Milk, Human Production Cumulative Production Jan - Jan Cumulative Production Percent Change (1000 pounds) from Report Month January 160, , Manufacturers' stocks end-of-month 3/ End of month stocks (1000 pounds) Percent Change from Jan. Dec. Jan. Jan. Dec. Product Nonfat Dry Milk, Human 306, , , / Stocks held by manufacturers at all points and in transit. Manufacturers' shipments 4/ Jan. Dec. Jan. Jan. Dec. Product Nonfat dry milk, human 137, , , / For dry products, shipments of bulk goods. -CONTINUED ON PAGE 5A-

11 DAIRY MARKET NEWS, MARCH 18-22, A- VOLUME 86, REPORT 12 NONFAT DRY MILK, BUTTERMILK & WHOLE MILK s represent carlot/trucklot quantities for domestic and export sales packaged in 25 kg. or 50 lb. bags, or totes, spray process, dollars per pound. -CONTINUED FROM PAGE 5- DRY BUTTERMILK - CENTRAL AND EAST CENTRAL: Dry buttermilk prices in the Central region remained the same, on another quiet to steady trading week. Condensed buttermilk is beginning to change hands at decreasing prices, but buttermilk powder is somewhat tight according to some traders. With a limited availability and steady interest, prices and markets are holding their own. As more condensed skim flows into the region, buttermilk drying is being sidelined somewhat. Dry buttermilk market tones are akin to prices, steady. EAST: Dry buttermilk processing is lighter in the East as some churns operate at reduced schedules. Inventories have been tight and even for a few weeks now. Nonetheless, there is a good balance between supplies and demand due to fewer incoming spot requests. Contractual loads are steadily moving to customers' accounts. Dry buttermilk f.o.b. prices are unchanged from the prior week, and the market tone is steady. DRY WHOLE MILK - NATIONAL National dry whole milk free on board (f.o.b.) spot prices are unchanged on a stable market. Most trade are driven by contractual requirements thus, sales in the spot market have been generally lethargic throughout the week. Production is slightly up ahead of the upcoming spring holiday needs, while inventories are steady to slightly higher. The national demand for dry whole milk is reported as seasonally good. However, the international interest is scarce as dry whole milk price remains above the international WMP values. s for: U.S., All First Sales, F.O.B., Conventional, and Edible Dry Whole Milk - 26% Butterfat; $/LB: s for: Eastern and Central U.S., All First Sales, F.O.B., Conventional, and Edible Buttermilk ; $/LB: DRY BUTTERMILK - WEST In the West region, free on board (f.o.b.) spot prices for dry buttermilk dropped on the range, shadowing regional NDM downtick pricing movements. However, spot prices are unchanged on the mostly series. The dry buttermilk market remains relatively stable as the current supply is mostly in balance with demands from buyers/ end users. In general, dry buttermilk production is constant, supported by active butter churning throughout the region. Spot sales are slow this week as the bulk of trades is based on contracts. Dry buttermilk requests from bakers and ice cream processors are expected to improve ahead of the upcoming spring holidays and the summer season. s for: Western U.S., All First Sales, F.O.B., Conventional, and Edible Buttermilk ; $/LB: Mostly - ; $/LB: Dairy Products Report Dry Buttermilk Summary Released March 14, 2019, by the National Agricultural Statistics Service (NASS), Agricultural Statistics Board, United States Department of Agriculture (USDA). Dry Buttermilk United States: 2018 and 2019 Monthly Production (1000 pounds) Percent Change from Jan. Dec. Jan. Jan. Dec. Region United States 13,098 9,295 13, Manufacturers' stocks end-of-month 3/ End of month stocks (1000 pounds) Percent Change from Jan. Dec. Jan. Jan. Dec. Product Dry buttermilk, total 25,068 19,141 20, / Stocks held by manufacturers at all points and in transit.

12 DAIRY MARKET NEWS, MARCH 18-22, VOLUME 86, REPORT 12 WHEY, WPC 34%, LACTOSE & CASEIN s represent carlot/trucklot quantities for domestic and export sales packaged in 25 kg. or 50 lb. bags, or totes, spray process, dollars per pound. DRY WHEY- CENTRAL Dry whey prices slid slightly on the Central price range and mostly series, but regional prices have yet to slip to CME market levels: currently hovering around $.30. In fact, some buyers say their lower bids are not being accepted, as producers are hesitant to bend to market sentiment. Availability is adequate, as offers are being reported, but some buyers are turning their sights on WPC 34% or higher protein blends. Other end users suggest whey inventories are balanced and will hold them through March and/or April. Dry whey production is beginning to increase, as positive seasonal cheese demand has producers less hesitant to add work days or bring schedules back to normal after recent slowdowns. Dry whey markets are on shaky ground. Myriad issues are not promoting bull markets, from swine flu in Asia to tariff effects. Animal feed whey markets slid on the price range, during a somewhat slow trading week. s for: Central U.S., All First Sales, F.O.B., Extra Grade & Grade A, Conventional, and Edible Dry Whey - Animal Feed; $/LB: s for: Central U.S., All First Sales, F.O.B., Extra Grade & Grade A, Conventional, and Edible Dry Whey - Non-Hygroscopic; $/LB: Mostly - Non-Hygroscopic; $/LB: DRY WHEY NORTHEAST In the East, dry whey stocks are fairly stable. This week prices have declined at the top of the range, translating a weaker market undertone. Domestic and international sales are both lower. According to contacts, many domestic buyers are waiting for further decreases in current market prices to make their purchases. Meanwhile, they are taking their usual contractual loads and using their supplies at hand. Sellers hope that ice cream production will soon upsurge and help improve dry whey demand. Dry whey processing is active. s for: Eastern U.S., All First Sales, F.O.B., Extra Grade & Grade A, Conventional, and Edible Dry Whey - Non-Hygroscopic; $/LB: DRY WHEY WEST Western whey prices slid lower amid diminished demand from Southeast Asia and Mexico. Export sales are below expectations. Industry contacts say although domestic demand is adequate, it is not enough to make up for slow international sales. While manufacturers suggest whey inventories are not burdensome now, whey stocks are building industry-wide, and there is a growing concern that supplies could become problematic as the region proceeds through spring flush. Some manufacturers are choosing to make other whey proteins in lieu of drying whey. s for: Western U.S., All First Sales, F.O.B., Extra Grade & Grade A, Conventional, and Edible Dry Whey - Non-Hygroscopic; $/LB: Mostly - Non-Hygroscopic; $/LB: Dairy Products Report Whey Summary Released March 14, 2019, by the National Agricultural Statistics Service (NASS), Agricultural Statistics Board, United States Department of Agriculture (USDA). Dry Whey (Human) Production States and United States Monthly Production (1000 pounds) Percent Change from Jan. Dec. Jan. Jan. Dec. State United States 88,087 73,196 79, Atlantic 20,772 21,350 21, Central 42,747 33,232 31, Wisconsin 30,183 23,819 21, West 24,568 18,614 26, Dry Whey Cumulative Production January - January Cumulative Production (1000 pounds) Percent Change from Dry Whey Total 1 90,319 81, Human 2 88,087 79, Excludes all modified dry whey products. 2. Values are calculated from Dairy Products report data. Manufacturers' stocks end of month 3 End of month stocks (1000 pounds) Percent Change from Jan. Dec. Jan. Jan. Dec. Dry Whey Human 89,019 65,141 78, Animal 1, Total 90,218 66,138 79, Stocks held by manufacturers at all points and in transit. WHEY PROTEIN CONCENTRATE Whey protein concentrate 34% prices are unchanged. The two-tier market continues to track sideways. The top of the market is wellsupported by desired brands and WPC34% that meets infant formula requirements. Inventories in this segment are tight and demand is steady. The lower half of the market is more interchangeable with other protein sources. That segment has lackluster demand and stocks are more available. Some manufacturers have opted to make higher whey protein concentrations in lieu of WPC34%, but overall production remains steady. s for: Central and Western U.S., All First Sales, F.O.B., Extra Grade, Conventional, and Edible Whey Protein Concentrate - 34% Protein; $/LB: Mostly - 34% Protein; $/LB: CONTINUED ON PAGE 6A-

13 DAIRY MARKET NEWS, MARCH 18-22, A- VOLUME 86, REPORT 12 WHEY, WPC 34%, LACTOSE & CASEIN s represent carlot/trucklot quantities for domestic and export sales packaged in 25 kg. or 50 lb. bags, or totes, spray process, dollars per pound. -CONTINUED FROM PAGE 6- LACTOSE Lactose prices moved slightly lower at the bottom of the price range, but otherwise held steady. Manufacturers report lactose continues to move well through contracts, with end users taking loads as expected. Quarter 2 contracts are getting established, often near Q1 contract prices. However, industry contacts say edible lactose that moves into Southeastern Asian feed channels remains under intense pressure from decreased demand caused by the African swine fever epidemic. While domestic demand is steady, international demand is giving mixed signals. Buyers in Southeast Asia expect prices to fall lower and are waiting to see if that holds true. Other international markets are exceeding their contracted volumes, and U.S. manufacturers report not seeing aggressive lactose marketing from Europe. U.S. lactose production is steady, and although stock levels vary by manufacturers, overall inventories are comfortable to snug. s for: Central and Western U.S., Spot Sales And Up to 3 Month Contracts, F.O.B., Conventional, and Edible Lactose - Non Pharmaceutical; $/LB: Mostly - Non Pharmaceutical; $/LB: CASEIN Rennet and acid casein prices are higher. Market supply tightness is a factor more widely evident this week. Supplies available from the EU are tighter. That, coupled with tighter late season supplies in New Zealand, has sent pricing higher to get deals closed for available casein stocks. Although the EU is a significant casein producing region, supply tightness there is illustrated by noting that casein imports during January 2019 compared with January 2018, increased at a higher percentage than exports from the EU. The United States is the largest customer for EU casein exports. s for: Spot Sales And Up to 3 Month Contracts, Free on Board - Warehouse, Non-Restricted, All Mesh Sizes, Conventional, and Edible Casein Acid; - $/LB: Rennet; - $/LB: Secondary Sourced Information: At GDT event 232 on March 19, 2019, the all contracts rennet casein price, $2.8078, increased 9.7 percent. The April contract, $3.1162, increased 19.3 percent. Casein and caseinate exports from the EU during January 2019, 6,514 MT, increased 8.5 percent from January 2018 according to Eucolait. The three primary destinations, percent of 2018 EU casein and caseinate exports, and quantity, are shown in the following table. Country % of Total Quantity MT United States ,166 Mexico Russia Dairy Products Report Whey Derivatives Summary Released March 14, 2019, by the National Agricultural Statistics Service (NASS), Agricultural Statistics Board, United States Department of Agriculture (USDA). Selected Whey Derivatives Production United States Monthly Production (1000 pounds) Percent Change from Jan. Dec. Jan. Jan. Dec. Product Whey Protein Concentrate, human and animal percent 16,161 17,674 26, percent 27,300 23,177 25, Whey protein isolates, 90.0 percent or greater 9,578 10,685 10, Lactose, human and animal 94, , , Selected Whey Derivatives Cumulative Production January - January Cumulative Production Percent Change (1000 pounds) from Product Whey Protein Concentrate, human and animal percent 16,161 26, percent 27,300 25, Whey protein isolates, 90.0 percent or greater 1` 9,578 10, Lactose, human and animal 94, , Values are calculated from Dairy Products report data. Manufacturers' stocks end of month 2 End of month stocks (1000 pounds) Percent Change from Jan. Dec. Jan. Jan. Dec. Product Whey Protein Concentrate, human and animal percent 25,163 25,066 28, percent 60,663 40,326 46, Whey protein isolates, 90.0 percent or greater 28,171 23,363 22, Lactose, human and animal 126, , , Stocks held by manufacturers at all points and in transit. Casein and caseinate imports to the EU during January 2019, 1,503 MT, increased 12.2 percent from January 2018 according to Eucolait. New Zealand is the primary source, supplying 73.9 percent, 1,110 MT. Ukraine continues casein production expansion and is the second largest source EU of casein imports, 17.3 percent, 260 MT.

14 DAIRY MARKET NEWS, MARCH 18-22, VOLUME 86, REPORT 12 U.S. Dairy Cow Slaughter (1000 head) under Federal Inspection 2019 WEEKLY WEEKLY 2018 WEEK ENDING DAIRY COWS CUMULATIVE DAIRY COWS DAIRY COWS CUMULATIVE DAIRY COWS 03/02/ WEBSITE: SOURCE: The slaughter data are gathered and tabulated in a cooperative effort by the Agricultural Marketing Service, the Food Safety and Inspection Service, and the National Agricultural Statistics Service, all of USDA CLASS III MILK PRICES (3.5% Butterfat) YEAR JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC CLASS IV MILK PRCES (3.5% Butterfat) YEAR JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC FEDERAL MILK ORDER CLASS PRICES FOR 2019 (3.5% Butterfat) CLASS JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC I 1/ II III IV / Specific order differentials to be added to this base price can be found by going to: then select s ; and then select Principal Pricing Points. $18.00 Class I $18.00 Class II $17.00 $17.00 $16.00 $16.00 $15.00 $15.00 $14.00 $14.00 $13.00 $13.00 $12.00 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec $12.00 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec $18.00 Class III $17.00 Class IV $17.00 $16.00 $16.00 $15.00 $15.00 $14.00 $14.00 $13.00 $13.00 $12.00 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec $12.00 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

15 DAIRY MARKET NEWS, MARCH 18-22, VOLUME 86, REPORT 12 ORGANIC DAIRY MARKET NEWS Information gathered March 11 22, 2019 ORGANIC DAIRY FLUID OVERVIEW New England Organic Milk Sales and Sourcing. Federal Milk Market Order 1 in New England reports utilization of types of organic milk by pool plants. During February 2019, organic whole milk utilization totaled 12.6 million pounds, down from 14.5 million pounds one year earlier, (-13.0 percent). The February 2019 butterfat content was 3.28 percent, slightly lower from 3.29 percent in Organic reduced fat milk utilization for February this year, about 15.1 million pounds, was down from 18.2 million pounds one year earlier, (-16.7 percent). Meanwhile, butterfat content was 1.33 percent, down from 1.34 percent last year. Organic Milk Product Sales. The Agricultural Market Service (AMS) reports total organic milk products sales for January 2019 were 233 million pounds, down 1.3 percent from January Total organic whole milk sales for January 2019 are 99 million pounds, up 5.6 percent compared with January last year euros/100lt ($55.28 USD), is reported 7.53 percent lower than a year ago, and down 3.14 percent from December France's average organic milk farm price for January 2019, euros/100lt ($52.67 USD), is 2.63 percent lower than January 2018, and 2.82 percent less than December Retail Organic Milk s for Selected U.S. Cities. The March 2019 in-store surveys of selected supermarkets in twentynine U.S. cities reveal that the price of organic whole milk, in half gallon containers, ranges from $3.14 in Houston, TX, to $5.54 in St. Louis, MO. The U.S. simple average price for March is $4.07. The biggest price decrease, over the previous month, occurred in Denver, CO, currently down $0.20. Below is a table displaying the March 2019 price per half gallon of organic whole milk, for each of the 29 cities surveyed. ESTIMATED TOTAL U.S. SALES OF FLUID MILK PRODUCTS, JANUARY 2019, WITH COMPARISONS 1/ Product Name Sales Change 2/ JAN. Y-T-D Prev Yr. Y-T-D Mil. Lbs. Percent ORGANIC PRODUCTION PRACTICE Whole Milk Reduced Fat Milk (2%) Low Fat Milk (1%) Fat-Free Milk (Skim) Flavored Fat-Reduced Milk Other Fluid Milk Products 0 0 3, ,062.1 Total Fat-Reduced Milk 3/ Tot. Organic Milk Products / These figures are representative of the consumption of fluid milk products in Federal milk order marketing areas, which account for approximately 92 percent of total fluid milk sales in the United States. An estimate of total U.S. fluid milk sales is derived by interpolating the remaining 8 percent of sales from the Federal milk order data. 2/ Percent changes, as well as sales volumes, unless otherwise noted, are shown on an unadjusted basis; 3/ Organic fat-reduced milk categories are total of reduced fat, low-fat, skim, and flavored fat reduced milk composition. 4 Year to Date Sales, Change from Previous Year, and Change in Year to Date figures are influenced by the shift of California from being administered by the California Department of Food and Agriculture (CDFA) to a Federal order (i.e., changes in product classification, etc.). The California Federal Milk Marketing Order became effective on November 1, As collected by Federal milk order market administrators, based on a survey conducted one day between the 1st and 10th of each month (excluding Fridays and weekends) in selected cities or metropolitan areas. One outlet of the largest and second largest food store chains and the largest convenience store chain are surveyed. The price represents the most common brand in nonreturnable containers. Five Open Seats on the National Organic Standards Board (NOSB). The advisory board handles a multitude of roles regarding USDA certified organic products. The NOSB is in search of candidates who have experience in: environmental protection, resource conservation, organic handling, organic retail trading, among others. The deadline for nominations is May 17, After filling out a nomination application (AD-755 application form), entries may be ed to Michelle.Arsenault@usda.gov at the National Organic Program. ORGANIC GRAIN FEEDSTUFF OVERVIEW Graph data from Federal Milk Market Administrators, graph by Dairy Market News Organic Milk Pay s in Europe. According to CLAL, the most recent organic monthly milk pay price information reports declines for January 2019 in Germany, Austria and France when compared to December The organic milk farm price in Germany averaged euros/100lt ($54.18 USD), 2.78 percent lower than a year ago, and down 0.31 percent from a month earlier. In Bavaria, an important milk producing region of Germany, the average price is euros/100lt ($54.67 USD), 4.19 percent lower than one year earlier, and 0.25 percent down from the previous month. In Austria, January 2019 average organic milk farm prices, Organic Grain and Feed Market Trend. Organic grain and feedstuff trading activity is moderate to light. The demand for organic feed grade corn is fairly moderate. The majority of market activity is on new crop forward contracting for Q4. Feed grade soybean trades are limited, although cash bidding remains steady. The demand and market activity for feed grade wheat is lighter at this time. Due to recent rain and snow melt, there are reports U.S. planting may be behind in the near term. For more additional information, access the link: lsbnof.pdf -CONTINUED ON PAGE 8A-

16 DAIRY MARKET NEWS, MARCH 18-22, A- VOLUME 86, REPORT 12 ORGANIC DAIRY MARKET NEWS Information gathered March 11 22, CONTINUED FROM PAGE 8- Product pricing information of selected organic dairy commodities, from the current weekly retail survey, is presented in the following table: NATIONAL RETAIL ORGANIC DAIRY WEIGHTED AVERAGE ADVERTISED PRICE (Dollars) Commodity This Last Last Week Week Year Butter n.a. ORGANIC DAIRY RETAIL OVERVIEW In the first week of spring, organic retail promotions improved by 68 percent. Organic cream cheese in 8 oz packages reported a big percentage increased in ads, at 118 percent. The Southeast region has the largest percentage shift for organic advertisements in the U.S. at this time, at +245 percent. For organic milk, half gallon packages published the biggest number of ads. Additionally, this week's organic half gallon pack milk prices rose by $0.26 compared to last period's prices. The up-to-date retail milk price spread between organic and conventional half gallon milk is an organic premium of $2.50. The price spread shifted up $0.70 compared to the previous retail survey. Milk Half Gal Gal n.a oz n.a. Yogurt 4-6 oz. Greek n.a. n.a oz. Greek n.a n.a. 4-6 oz. Yogurt oz. Yogurt Complete results of the National Retail Report-Dairy and Weekly National Organic Summary are accessible using the following links: Organic cow milk ads, as a percent of the total advertisements for organic dairy products, stand at 82 percent. Some spring holiday products consist of organic cream cheese and sour cream that were widely advertised, revealing 5 and 3 percent this current ad period. The pie chart below displays percentages of all organic dairy commodities detailed in the ad survey. Data source: USDA Dairy Market News

17 DAIRY MARKET NEWS, MARCH 18 22, VOLUME 86, REPORT 12 February Milk Production Milk production in the 23 major States during February totaled 16.0 billion pounds, up 0.6 percent from February January revised production, at 17.5 billion pounds, was up 1.3 percent from January The January revision represented a decrease of 7 million pounds or less than 0.1 percent from last month's preliminary production estimate. Production per cow in the 23 major States averaged 1,838 pounds for February, 21 pounds above February This is the highest production per cow for the month of February since the 23 State series began in The number of milk cows on farms in the 23 major States was 8.72 million head, 47,000 head less than February 2018, but unchanged from January February 2019 Milk Cows and Milk Production, by States Milk Cows 1 Milk per Cow 2 Milk Production 2 State Change from (thousands) (pounds) (million pounds) (percent) AZ ,960 1, CA 1,738 1,730 1,860 1,870 3,233 3, CO ,985 2, FL ,700 1, ID ,875 1,890 1,138 1, IL ,670 1, IN ,760 1, IA ,860 1, KS ,820 1, MI ,015 2, MN ,670 1, NM ,975 1, NY ,805 1,850 1,128 1, OH ,665 1, OR ,555 1, PA ,630 1, SD ,700 1, TX ,845 1, , UT ,755 1, VT ,625 1, VA ,570 1, WA ,850 1, WI 1,275 1,270 1,825 1,860 2,327 2, State Total 8,770 8,723 1,817 1,838 15,936 16, Includes dry cows. Excludes heifers not yet fresh. 2 Excludes milk sucked by calves. Source: U.S. Department of Agriculture. National Agricultural Statistics Service. Agricultural Statistics Board. Milk Production, (March 2019).

18 DAIRY MARKET NEWS, MARCH 18 22, VOLUME 86, REPORT 12 April 2019 Highlights Base Class I : Under the Federal milk order pricing system, the base Class I price for April 2019 is $15.76 per cwt. This price is derived from the advanced Class IV skim milk pricing factor of $7.05 and the advanced butterfat pricing factor of $ The base Class I price decreased $0.22 per cwt when compared to the previous month of March A Class I differential for each order's principle pricing point (county) is added to the base price to determine the Class I. Class II Information: The advanced Class IV skim milk pricing factor is $7.05. Thus, the Class II skim milk price for April 2019 is $7.75 per cwt, and the Class II nonfat solids price is $ Product Averages: The two-week product price averages for April 2019 are: butter $2.2854, nonfat dry milk $0.9587, cheese $ and dry whey $ Federal Milk Order Marketing Area 3 Advanced Class s for April 2019 Federal Milk Order Class I Information 1, 2 Order Number April 2019 Class I Class I Class I Skim Milk Butterfat (3.5%) (dollars per cwt) (dollars per cwt) (dollars per pound) Northeast (Boston) Appalachian (Charlotte) Florida (Tampa) Southeast (Atlanta) Upper Midwest (Chicago) Central (Kansas City) Mideast (Cleveland) California (Los Angeles) Pacific Northwest (Seattle) Southwest (Dallas) Arizona (Phoenix) All-Market Average To convert the Class I price per 100 pounds to the Class I price per gallon, divide by the approximate number of gallons in 100 pounds of milk. 2 Note: The mandatory $0.20 per cwt processor assessment under the Fluid Milk Promotion Order is not included in the Class I prices shown on this table. 3 Names in parentheses are the major city in the principal pricing point of the markets. 4 Class I prices at other cities are: New York City, minus $0.10; Philadelphia, minus $0.20; Baltimore, minus $0.25, and Washington, DC, minus $ Class I prices at other cities are: Knoxville, minus $0.20 and Louisville, minus $ Class I prices at other cities are: Orlando, same; Miami, plus $0.60; and Jacksonville, minus $ Class I prices at other cities are: New Orleans, same; Memphis, minus $0.90; Nashville, minus $0.90; and Springfield, MO, minus $ Class I prices at other cities are: Milwaukee, minus $0.05; and Minneapolis, minus $ Class I prices at other cities are: Des Moines, minus $0.20; Omaha, minus $0.15; Oklahoma City, plus $0.60; St. Louis, same; and Denver, plus $ Class I prices at other cities are: Indianapolis, same; Cincinnati, plus $0.20; Pittsburgh, plus $0.10; and Detroit, minus $0.20; 11 Class I prices at other cities are: San Francisco, minus $0.30; Sacramento, minus $0.40; Tulare, minus $ Class I prices at other cities are: Portland, same; and Spokane, same. 13 Class I prices at other cities are: Houston, plus $0.60; San Antonio, plus $0.45; Albuquerque, minus $0.65; and El Paso, minus $0.75. Report Contact: Randal Stoker, randal.stoker@usda.gov or

19 DAIRY MARKET NEWS, MARCH 18-22, VOLUME 86, REPORT 12 January Milk Sales 4.2 billion pounds of packaged fluid milk products were shipped by milk handlers in January This was 0.6 percent lower than a year earlier. Estimated sales of total conventional fluid milk products decreased 0.5 percent from January 2018 and estimated sales of total organic fluid milk products decreased 1.3 percent from a year earlier. Estimated Total U.S. Sales of Fluid Milk Products, Product Name January 2019, with Comparisons 1 Sales 2 Change from: January Year to Date 4 Previous Year 4 Year to Date 4 (million pounds) (percent) Conventional Production Practice Whole Milk 1,351 1, Flavored Whole Milk Reduced Fat Milk (2%) 1,300 1, Low Fat Milk (1%) Fat-Free Milk (Skim) Flavored Fat-Reduced Milk Buttermilk Other Fluid Milk Products Total Fat-Reduced Milk 3 2,475 2, Total Conventional Milk Products 3,974 3, Organic Production Practice Whole Milk Reduced Fat Milk (2%) Low Fat Milk (1%) Fat-Free Milk (Skim) Flavored Fat-Reduced Milk Other Fluid Milk Products 0 0 3, ,062.1 Total Fat-Reduced Milk Total Organic Milk Products Total Fluid Milk Products 4,207 4, These figures are representative of the consumption of fluid milk products in Federal milk order marketing areas, which account for approximately 92 percent of total fluid milk sales in the United States. An estimate of total U.S. fluid milk sales is derived by interpolating the remaining 8 percent of sales from the Federal milk order data. 2 Data may not add due to rounding. 3 Both conventional and organic fat-reduced milk categories are the total of reduced fat, lowfat, skim and flavored fatreduced milk. 4 Year to Date Sales, Change from Previous Year, and Change in Year to Date figures are influenced by the shift of California from being administered by the California Department of Food and Agriculture (CDFA) to a Federal order (i.e., changes in product classification, etc.). The California Federal Milk Marketing Order became effective on November 1, Package Sales of Total Fluid Milk Products in Federal Milk Orders, January 2019, with Comparisons 1 Marketing Area Order Sales 2 Change from: Number January Year to Date Previous Year 3 Year to Date 3 (million pounds) (percent) Northeast Appalachian Florida Southeast Upper Midwest Central Mideast California Pacific Northwest Southwest Arizona All Areas (Totals) ¹ 3,870 3, These figures are representative of the consumption of total fluid milk products in the respective area. 2 Data may not add due to rounding. 3 The figures for California include data obtained from the California Department of Food and Agriculture (CDFA) for the months of January through October 2018, and prior years. The California Federal Milk Marketing Order became effective November 1, 2018

20 DAIRY MARKET NEWS, MARCH 18 22, VOLUME 86, REPORT 12 March 2019 Highlights: U.S. simple average prices are: $3.28 per gallon for conventional whole milk, $3.22 per gallon for conventional reduced fat 2% milk, $4.07 per half gallon organic whole milk, and, $4.07 per half gallon organic reduced fat 2% milk. Retail s for Conventional Whole Milk, Average of Three Outlets, Selected Cities, by Months, , 2 City and State 2 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Avg 3 (dollars per gallon) Atlanta, GA Baltimore, MD Boston, MA Chicago, IL Cincinnati, OH Cleveland, OH Dallas, TX Denver, CO Detroit, MI New York, NY Hartford, CT Houston, TX Indianapolis, IN Kansas City, MO Louisville, KY Miami, FL Milwaukee, WI Minneapolis, MN New Orleans, LA Oklahoma City, OK Philadelphia, PA Phoenix, AZ Pittsburgh, PA Portland, OR Seattle, WA St. Louis, MO Syracuse, NY Washington, DC Wichita, KS Simple Average As collected by Federal milk order market administrators based on a survey conducted one day between the 1st and 10th of each month (excluding Fridays and weekends) in selected cities or metropolitan areas. One outlet of the largest and second largest food store chains and the largest convenience store chain are surveyed. The price represents the most common brand in nonreturnable containers. 2 The California Order became effective November 1, Retail price data for select cities in California is not yet available. 3 Simple average of monthly prices.

21 DAIRY MARKET NEWS, MARCH 18 22, VOLUME 86, REPORT 12 Retail s for Conventional Reduced Fat (2%) Milk, Average of Three Outlets, Selected Cities, by Months, , 2 City and State 2 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Avg 3 (dollars per gallon) Atlanta, GA Baltimore, MD Boston, MA Chicago, IL Cincinnati, OH Cleveland, OH Dallas, TX Denver, CO Detroit, MI New York, NY Hartford, CT Houston, TX Indianapolis, IN Kansas City, MO Louisville, KY Miami, FL Milwaukee, WI Minneapolis, MN New Orleans, LA Oklahoma City, OK Philadelphia, PA Phoenix, AZ Pittsburgh, PA Portland, OR Seattle, WA St. Louis, MO Syracuse, NY Washington, DC Wichita, KS Simple Average As collected by Federal milk order market administrators based on a survey conducted one day between the 1st and 10th of each month (excluding Fridays and weekends) in selected cities or metropolitan areas. One outlet of the largest and second largest food store chains and the largest convenience store chain are surveyed. The price represents the most common brand in nonreturnable containers. 2 The California Order became effective November 1, Retail price data for select cities in California is not yet available. 3 Simple average of monthly prices.

22 DAIRY MARKET NEWS, MARCH 18 22, VOLUME 86, REPORT 12 Retail s for Organic Whole Milk, Average of Two Outlets, Selected Cities, by Months, , 2 City and State 2 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Avg 3 (dollars per half gallon) Atlanta, GA Baltimore, MD Boston, MA Chicago, IL Cincinnati, OH Cleveland, OH Dallas, TX Denver, CO Detroit, MI New York, NY Hartford, CT Houston, TX Indianapolis, IN Kansas City, MO Louisville, KY Miami, FL Milwaukee, WI 4.89 * Minneapolis, MN New Orleans, LA Oklahoma City, OK Philadelphia, PA Phoenix, AZ Pittsburgh, PA Portland, OR Seattle, WA St. Louis, MO Syracuse, NY Washington, DC Wichita, KS Simple Average 4.09 * * Revised. 1 As collected by Federal milk order market administrators based on a survey conducted one day between the 1st and 10th of each month (excluding Fridays and weekends) in selected cities or metropolitan areas. One outlet of the largest and second largest food store chains is surveyed. The price represents the most common brand in nonreturnable containers. 2 The California Order became effective November 1, Retail price data for select cities in California is not yet available. 3 Simple average of monthly prices.

23 DAIRY MARKET NEWS, MARCH 18 22, VOLUME 86, REPORT 12 Retail s for Organic Reduced Fat (2%) Milk, Average of Two Outlets, Selected Cities, by Months, , 2 City and State 2 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Avg 3 (dollars per half gallon) Atlanta, GA Baltimore, MD Boston, MA Chicago, IL Cincinnati, OH Cleveland, OH Dallas, TX Denver, CO Detroit, MI New York, NY Hartford, CT Houston, TX Indianapolis, IN Kansas City, MO Louisville, KY Miami, FL Milwaukee, WI 4.89 * Minneapolis, MN New Orleans, LA Oklahoma City, OK Philadelphia, PA Phoenix, AZ Pittsburgh, PA Portland, OR Seattle, WA St. Louis, MO Syracuse, NY Washington, DC Wichita, KS Simple Average 4.09 * * Revised. 1 As collected by Federal milk order market administrators based on a survey conducted one day between the 1st and 10th of each month (excluding Fridays and weekends) in selected cities or metropolitan areas. One outlet of the largest and second largest food store chains is surveyed. The price represents the most common brand in nonreturnable containers. 2 The California Order became effective November 1, Retail price data for select cities in California is not yet available. 3 Simple average of monthly prices.

24 DAIRY MARKET NEWS, MARCH 18 22, G1- VOLUME 86, REPORT 12 MILLION HEAD Milk Cow Numbers - 23 Selected States Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec DATA SOURCE, USDA, NASS; GRAPH, USDA, AMS, DMN BILLION POUNDS 18.5 Milk Production - 23 Selected States Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec DATA SOURCE, USDA, NASS; GRAPH, USDA, AMS, DMN NOTE FEB DATA FOR 2016 ADJUSTED TO 28 DAY EQUIVALENT

25 DAIRY MARKET NEWS, MARCH 18 22, G2- VOLUME 86, REPORT 12 MILLION POUNDS 100 U.S. Cream and Neufchatel Production JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC DATA SOURCE, USDA, NASS; GRAPH, USDA, AMS, DMN MILLION GALLONS 80 U.S. Regular Hard Ice Cream Production JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC DATA SOURCE, USDA, NASS; GRAPH, USDA, AMS, DMN MILLION POUNDS U.S. Yogurt Production, Plain and Flavored JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC DATA SOURCE, USDA, NASS; GRAPH, USDA, AMS, DMN

26 DAIRY MARKET NEWS, MARCH 18 22, G3- VOLUME 86, REPORT 12 MILLION POUNDS 140 U.S. Sour Cream Production JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC DATA SOURCE, USDA, NASS; GRAPH, USDA, AMS, DMN MILLION POUNDS 28.0 U.S. Dry Whole Milk Production JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC DATA SOURCE, USDA, NASS: GRAPH, USDA, AMS, DMN MILLION POUNDS 65 U.S. Skim Milk Powder Production JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC DATA SOURCE, USDA, NASS, GRAPH, USDA, AMS, DMN

27 Dairy Market News Branch Agricultural Marketing Service National Retail Report-Dairy Websites: and Volume 86- Number 12 Issued Weekly Friday, March 22, 2019 Advertised s for Dairy Products at Major Retail Supermarket Outlets ending during the period of 03/22/2019 to 03/28/2019 Spring has sprung, and conventional ice cream in oz. containers is the most advertised product/category for the second week, even with a 16 percent decrease in ad numbers week over week. The weighted average advertised price, $2.92, increased a nickel from last week. Shredded cheese in one-pound bags and organic half gallon bottled milk ads held the biggest increases from last week. The national weighted average advertised price for conventional milk half gallons is $1.85, compared to $4.35 for organic milk half gallons, an organic price premium of $2.50. Conventional half gallon milk ad numbers increased 13 percent. This week, there were more organic half gallon milk ads than for those on the conventional aisle. Conventional cheese ad numbers increased 58 percent. The weighted average price for conventional 8 oz shred cheese is $2.22, up 17 cents from last week. There were no listed ads of organic 8 oz shred or 8 oz block cheese. Conventional yogurt ad numbers increased 25 percent. Organic yogurt ads decreased by 86 percent. The weighted average advertised price for conventional yogurt in 4 to 6 oz. containers is $0.49, down 3 cents from last week. The weighted average price for organic conventional yogurt in 4 to 6 oz. containers, $0.58, resulting in an 9 cent organic price premium. Top 5 Commodities Featured This Week 28K 03/22/ /15/ /08/ K with Ads 20K 16K 12K 8K 4K 0K Cheese Yogurt Ice cream Milk Sour cream 1 -- Dairy Market News surveys nearly 150 retailers, comprising over 23,000 individual stores, with online weekly advertised features.

28 National Retail Report - Dairy Vol 86 - No. 12 Friday, March 22, Page 2 Percentage of Total Conventional Ads by Commodity Butter, 5% Yogurt, 24% Cheese, 32% Sour cream, 8% Milk, 3% Ice cream, 11% Flavored milk, 1% Cream cheese, 7% Cottage cheese, 4% Percentage of Total Organic Ads by Commodity Sour cream, 3% Yogurt, 2% Butter, 2% Cottage cheese, 3% Cream cheese, 5% Flavored milk, 2% Milk, 82% Wtd Avg - Simple weighted average

29 National Retail Report - Dairy Vol 86 - No. 12 Friday, March 22, Page 3 NATIONAL -- CONVENTIONAL DAIRY PRODUCTS THIS PERIOD LAST WEEK LAST YEAR Commodity Type Pack Size With Ads Wtd Avg With Ads Wtd Avg With Ads Wtd Avg Butter 1 # Cheese Natural Varieties 8 oz block Cheese Natural Varieties 1 # block Cheese Natural Varieties 2 # block Cheese Natural Varieties 8 oz shred Cheese Natural Varieties 1 # shred Cottage cheese 16 oz Cream cheese 8 oz Flavored milk All fat tests half gallon Flavored milk All fat tests gallon Ice cream 48-64oz Milk All fat tests half gallon Milk All fat tests gallon Sour cream 16 oz Yogurt Greek 4-6 oz Yogurt Greek 32 oz Yogurt Yogurt 4-6 oz Yogurt Yogurt 32 oz REGIONAL -- CONVENTIONAL DAIRY PRODUCTS NORTHEAST U.S. SOUTHEAST U.S. MIDWEST U.S. Commodity Type Pack Size with Ads Wtd Avg with Ads Wtd Avg with Ads Wtd Avg Butter 1 # Cheese Natural Varieties 8 oz block Cheese Natural Varieties 1 # block Cheese Natural Varieties 2 # block Cheese Natural Varieties 8 oz shred Cheese Natural Varieties 1 # shred Cottage cheese 16 oz Cream cheese 8 oz Flavored milk All fat tests half gallon Flavored milk All fat tests gallon Ice cream 48-64oz Milk All fat tests half gallon Milk All fat tests gallon Sour cream 16 oz Yogurt Greek 4-6 oz Yogurt Greek 32 oz Wtd Avg - Simple weighted average

30 National Retail Report - Dairy Vol 86 - No. 12 Friday, March 22, Page 4 NORTHEAST U.S. SOUTHEAST U.S. MIDWEST U.S. Commodity Type Pack Size with Ads Wtd Avg with Ads Wtd Avg with Ads Wtd Avg Yogurt Yogurt 4-6 oz Yogurt Yogurt 32 oz SOUTH CENTRAL U.S. SOUTHWEST U.S. NORTHWEST U.S. Commodity Type Pack Size with Ads Wtd Avg with Ads Wtd Avg with Ads Wtd Avg Butter 1 # Cheese Natural Varieties 8 oz block Cheese Natural Varieties 1 # block Cheese Natural Varieties 2 # block Cheese Natural Varieties 8 oz shred Cheese Natural Varieties 1 # shred Cottage cheese 16 oz Cream cheese 8 oz Flavored milk All fat tests gallon Ice cream 48-64oz Milk All fat tests half gallon Milk All fat tests gallon Sour cream 16 oz Yogurt Greek 4-6 oz Yogurt Greek 32 oz Yogurt Yogurt 4-6 oz Yogurt Yogurt 32 oz ALASKA U.S. HAWAII U.S. Commodity Type Pack Size with Ads Wtd Avg with Ads Wtd Avg Butter 1 # Cheese Natural Varieties 8 oz block Cheese Natural Varieties 8 oz shred Cottage cheese 16 oz Flavored milk All fat tests half gallon Ice cream 48-64oz Milk All fat tests half gallon Milk All fat tests gallon Sour cream 16 oz Yogurt Greek 4-6 oz NATIONAL -- ORGANIC DAIRY PRODUCTS Wtd Avg - Simple weighted average

31 National Retail Report - Dairy Vol 86 - No. 12 Friday, March 22, Page 5 THIS PERIOD LAST WEEK LAST YEAR Commodity Type Pack Size With Ads Wtd Avg With Ads Wtd Avg With Ads Wtd Avg Butter 1 # Cheese Natural Varieties 8 oz shred Cottage cheese 16 oz Cream cheese 8 oz Flavored milk All fat tests half gallon Ice cream 48-64oz Milk All fat tests half gallon Milk All fat tests gallon Milk All fat tests 8 oz UHT Sour cream 16 oz Yogurt Greek 4-6 oz Yogurt Greek 32 oz Yogurt Yogurt 4-6 oz Yogurt Yogurt 32 oz REGIONAL -- ORGANIC DAIRY PRODUCTS NORTHEAST U.S. SOUTHEAST U.S. MIDWEST U.S. Commodity Type Pack Size with Ads Wtd Avg with Ads Wtd Avg with Ads Wtd Avg Butter 1 # Cottage cheese 16 oz Cream cheese 8 oz Flavored milk All fat tests half gallon Milk All fat tests half gallon Milk All fat tests gallon Milk All fat tests 8 oz UHT Sour cream 16 oz Yogurt Yogurt 4-6 oz Yogurt Yogurt 32 oz Wtd Avg - Simple weighted average

32 National Retail Report - Dairy Vol 86 - No. 12 Friday, March 22, Page 6 SOUTH CENTRAL U.S. SOUTHWEST U.S. NORTHWEST U.S. Commodity Type Pack Size with Ads Wtd Avg with Ads Wtd Avg with Ads Wtd Avg Cream cheese 8 oz Milk All fat tests half gallon Milk All fat tests gallon ALASKA U.S. HAWAII U.S. Commodity Type Pack Size with Ads Wtd Avg with Ads Wtd Avg REGIONAL DEFINITIONS As used in this report, regions include the following states: NORTHEAST U.S. SOUTHEAST U.S. MIDWEST U.S. SOUTH CENTRAL U.S. SOUTHWEST U.S. NORTHWEST U.S. ALASKA HAWAII NATIONAL Connecticut, Delaware, Massachusetts, Maryland, Maine, New Hampshire, New jersey, New York, Pennsylvania, Rhode Island and Vermont Alabama, Florida, Georgia, Mississippi, North Carolina, South Carolina, Tennessee, Virginia and West Virginia Iowa, Illinois, Indiana, Kentucky, Michigan, Minnesota, North Dakota, Nebraska, Ohio, South Dakota and Wisconsin Arkansas, Colorado, Kansas, Louisiana, Missouri, New Mexico, Oklahoma, and Texas Arizona, California, Nevada and Utah Idaho, Montana, Oregon, Washington, and Wyoming Alaska Hawaii Continental United States Wtd Avg - Simple weighted average

33 Dairy Market News United States Department of Agriculture Agricultural Marketing Service Dairy Programs Market Information Branch Volume 86, Report 12 March 22, 2019 GENERAL NUMBER (608) Elizabeth Frederick (608) ORGANIC/ EAST Daniel Johnson (608) EAST/ORGANIC Jessica Mueller (608) CENTRAL Israel Weber (608) SOUTHWEST/SOUTH AMERICA AJ (Angel José) Terán (608) SOUTHWEST Florence Kone-Gonzalez (608) NORTHWEST/MOUNTAIN Mike Bandli (608) EUROPE & OCEANIA/ ORGANIC Eric Graf (608) NATIONAL SUPERVISOR Janet Linder (608) BRANCH CHIEF Butch Speth (608) RECORDED INFORMATION SYSTEM (608) FAX (608) USDA, Dairy Market News 4600 American Parkway, STE 106 Madison, WI Additional Dairy Market News Information: DMN Website: DMN MARS (My Market News): USDA is an equal opportunity provider and employer