DAIRY MARKET NEWS WEEK OF MARCH 25-29, 2019

Transcription

1 DAIRY MARKET NEWS WEEK OF MARCH 25-29, 2019 VOLUME 86, REPORT 13 CME GROUP CASH MARKETS (3/29) BUTTER: Grade AA closed at $ The weekly average for Grade AA is $ (-.0110). CHEESE: Barrels closed at $ and 40# blocks at $ The weekly average for barrels is $ (+.0535) and blocks, $ (+.1090). NONFAT DRY MILK: Grade A closed at $ The weekly average for Grade A is $.9605 (N.C.). DRY WHEY: Extra grade dry whey closed at $ The weekly average for dry whey is $.3225 (+.0090). BUTTER HIGHLIGHTS: At a national level, butter processing is ongoing, while producers continue to build inventories for future usage, particularly to fulfill the anticipated strong demands during the upcoming seasonal festivities. Cream is readily accessible to most butter makers. Nevertheless, Class II and other users are actively drawing out some cream as well. Bulk/print butter sales to retailers and food service accounts are reported as good and inching up. 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. Today s CME Group cash price for Grade AA butter is $2.2550, down $0.0100, compared to last Friday s price. CHEESE HIGHLIGHTS: Strong milk yield is guaranteeing continuous cheese production in all the regions. Nonetheless, in California, there have been some shifts in the types of cheese produced and some holdbacks on cheese production volumes as well. Altogether, cheese inventories remain strong. In the Midwest, supplies are being managed in a way to control further growth. There is a seasonal increase in cheese buying in most areas due, in part, to spring holiday demand. Barrel cheese is receiving most of the added interest. Uncertainty in the cheese market remains present and is reflected in the price gap between blocks and barrels. 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 DAIRY MARKET NEWS AT A GLANCE TABLE OF CONTENTS Dry Whey/WPC 34%/Lactose/Casein 6 U.S. Dairy Cow Slaughter / Class Milk s 7 International Dairy Market News 8 Dairy Futures 9 February Cold Storage Report 10 FLUID MILK: Milk off the farms is seasonally higher in the U.S. except in Florida and in the mountain states of Idaho, Utah and Colorado, where it is stabilizing. In most parts of the central region, the effects of the floods on milk output, dairy herds and feedstocks are not fully known yet. Milk volumes are adequate to fill current obligations in all the regions, and less milk seems to be moving among regions. Class I sales are steady to lower in the East and the Midwest, partly due to school closing schedules. In the West, milk distribution to bottlers is mixed. Cream demand is generally stable to up in the country, and some loads are being used for the upcoming holiday order fulfillments. Cream multiples for all Classes are in the East, in the Midwest, and in the West. Condensed skim requests are flat to increasing in the East. At some western localities, prices are higher than expected. DRY PRODUCTS: The low/medium heat nonfat dry milk market trend is weak as reflected by the decline in prices this week. Spot demand is steady to lower, and inventories are readily available. In the Central, supplies are growing, and production schedules are full. High heat nonfat dry milk market is balanced to fairly tight depending on the locations. s are a bit mixed. Dry buttermilk prices are steady to up in the Central and the East, whereas they slid down in the West. Stocks are limited in the East and the Central, but a bit more available in the West. Drying is made on demand in the East. Dry whole milk f.o.b. prices and market conditions are flat. Production increased a bit and spot interest is low. There was a drop in Central and eastern dry whey prices, whereas western prices are reported mixed. The state of the dry whey market is instable in the Central, level in the East, and undergoing pressure in the West. Holdings are available and building in some instances. Production schedules are steady to decreasing. Demand is mostly lackluster. Whey protein concentrate -CONTINUED ON PAGE 1A- February Agricultural Highlights 11 February Market Summary and Utilization Report 12 Dairy Graphs G1 National Retail Report - Dairy Dairy Market News Contacts DAIRY MARKET NEWS PRICE SUMMARY FOR MARCH 25-29, 2019 PRICES ($/LB) & CHANGES FROM PREVIOUS PUBLISHED PRICES Commodity Mostly Commodity Mostly Commodity Mostly NDM BUTTERMILK LACTOSE Central Low/Med. Heat Central/East Central/West Change Change N.C Change N.C. N.C. Central High Heat West WPC 34% Change N.C Change N.C. N.C. N.C. Central/West West Low/Med. Heat WHEY Change N.C. N.C. N.C. N.C. Change N.C. N.C. Central CASEIN West High Heat Change N.C. N.C. N.C. Rennet Change N.C West Change N.C. N.C. DRY WHOLE MILK Change N.C. N.C. Acid National Northeast Change N.C. N.C. Change N.C. N.C. Change N.C ANIMAL FEED WHEY Central Change N.C. N.C. DAIRY MARKET NEWS PRICE SUMMARY FOR MARCH 18-29, 2019 PRICES ($/MT) & CHANGES FROM PREVIOUS PUBLISHED PRICES Commodity Commodity Commodity SMP WHOLE MILK POWDER BUTTER W. Europe W. Europe W. Europe Change Change 50 N.C. Change Oceania Oceania Oceania Change Change Change S. America S. America BUTTEROIL Change Change W. Europe WHEY Change W. Europe CHEDDAR CHEESE Change N.C. 25 Oceania Change

2 WEEK OF MARCH 25-29, 2019 DAIRY MARKET NEWS VOLUME 86, REPORT 13 -CONTINUED FROM PAGE 1- DAIRY MARKET NEWS AT A GLANCE 34% prices and production are stable while inventories remain limited. Contractual loads are moving smoothly. Lactose prices and output are unchanged from last week, and sales are soft. Acid and rennet casein prices are even. Purchasers are reassessing market conditions. Casein production is declining in New Zealand, but increasing in Europe. INTERNATIONAL DAIRY MARKET NEWS: EUROPE OVERVIEW: WESTERN: Early indicators of current milk production in parts of Western Europe identify both: (1) production seasonally increasing; as well as (2) production being higher than at this point last year. EU milk production during January 2019, 12.9 million MT, was 1.4 percent lower than January 2018 according to Eurostat. The January ranking of the United Kingdom as the EU s third largest milk producing member state is a reminder of how significant the outcome of the Brexit muddle will be for the UK, the EU, as well as for the global dairy trade. EASTERN OVERVIEW: Poland and Romania are stars in terms of EU milk production during January Milk production in Poland increased 3.2 percent from January 2018 according to Eucolait. Romania did even better, increasing 6.0 percent. OCEANIA OVERVIEW: AUSTRALIA: Australia s growing population, and good demand for milk and dairy products, is expected to result in lower dairy exports over the next year. Making cheese for export is increasingly identified as a favored export dairy emphasis. Cheese is viewed within Australia as a dairy product where Australia has a competitive advantage in its traditional export markets. NEW ZEALAND: February 2019 New Zealand milk production reported by DCANZ was million MT, up 0.1 percent from February 2018 milk production, million MT. February 2019 milk solids, million kg, are down 0.1 percent from February 2018, million kg. In Brazil, milk intakes are less than adequate to meet all manufacturing requests. Fluid/UHT milk orders from several private and public market channels remain strong. SOUTH AMERICA OVERVIEW: In Argentina and Uruguay, milk production at the farm level has stagnated and production levels are below last year. With the strong pulls from bottlers, in part due to the opening of schools, milk volumes moving into manufacturing are reported as constricted. In this way, at this point, some processors are manufacturing dairy products exclusively to meet the strong domestic demand, but not for export purposes. NATIONAL RETAIL REPORT (DMN): The most advertised product/category this week is conventional ice cream in oz. containers. Ad numbers increased 11 percent. The national weighted average advertised price for conventional milk half gallons is $1.55, compared to $4.33 for organic milk half gallons, an organic price premium of $2.78. Conventional cheese ad numbers decreased 29 percent. The weighted average price for conventional 8 oz shred cheese is $2.14, down 8 cents from last week. Conventional yogurt ad numbers decreased 26 percent. Organic yogurt ads increased more than fivefold but remain a small percentage of conventional yogurt ad numbers. FEBRUARY COLD STORAGE (NASS): On February 28, U.S. cold storage holdings of butter totaled million pounds, up 14.8 percent from the previous month, but down 8.7 percent from February Total American natural cheese holdings totaled million pounds, down 2.2 percent from the previous month, but up 3.0 percent from February Total natural cheese stocks were billion pounds, 0.04 percent up from last month and 4.0 percent up from February FEBRUARY AGRICULTURAL PRICES HIGHLIGHTS (NASS): The All Milk price received by farmers was $16.80 in February, up $1.50 from February The alfalfa hay price was $ in February, up $25.00 from February The corn price was $3.60 in February, up $0.22 from February The soybean price was $8.52 in February, down $0.98 from February The milk-feed price ratio was 2.07 in February, up 0.04 point from February The index of prices received by farmers for dairy products during the month of February 2019 was up 1 point to Compared to February 2018, the index was up 7.5 points (9.9 percent). The index of prices paid by farmers for commodities and services, interest, taxes, and wage rates in February 2019 was up 0.5 point to Compared with February 2018, the index was up 0.9 point (0.8 percent). FEBRUARY MARKET AND UTILIZATION SUMMARY (USDA): During February 2019, 12.5 billion pounds of milk were received from Federally pooled producers, 9.2 percent higher than in February Regulated handlers pooled 3.5 billion pounds of producer milk as Class I, up 11.2 percent compared to the previous year, primarily due to the additional Class I milk pooled by the new California Federal Milk Marketing area. Class I utilization decreased from last year in 7 of the 11 Federal Milk Order Marketing areas. The all-market average Class utilization percentages were: Class I = 28 percent, Class II = 9 percent, Class III = 53 percent, and Class IV = 9 percent. The weighted average statistical uniform price was $15.58 per cwt, up $0.08 from last month and up $1.24 from February 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 A-

3 DAIRY MARKET NEWS, MARCH 25-29, VOLUME 86, REPORT 13 COMMODITY MONDAY MAR 25 TUESDAY MAR 26 WEDNESDAY MAR 27 THURSDAY MAR 28 FRIDAY MAR 29 :: WEEKLY CHANGE :: WEEKLY AVERAGE CHEESE BARRELS $ ( ) $ ( ) $ ( ) $ (N.C.) $ ( ) :: :: ( ) :: :: $ ( ) 40 POUND BLOCKS $ ( ) $ ( ) $ ( ) $ ( ) $ ( ) :: :: ( ) :: :: $ ( ) NONFAT DRY MILK GRADE A $ ( ) $ ( ) $ (N.C.) $ ( ) $ ( ) :: :: ( ) :: :: $ (N.C.) BUTTER GRADE AA $ ( ) $ ( ) $ ( ) $ ( ) $ ( ) :: :: ( ) :: :: $ ( ) DRY WHEY EXTRA GRADE $ ( ) $ ( ) $ ( ) $ (N.C.) $ ( ) :: :: ( ) :: :: $ ( ) 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 In the East, at most key butter facilities, cream is readily available as spot cream provides added support for production goals. In general, manufacturers are accomplishing their Q1 butter output objectives as inventories expand to fulfill imminent holiday seasonal demand in the region. Meanwhile, butter stocks in all warehouses note a 9 percent decline, compared to the previous year at this time. Sources see print sales as improving, with increases in retail store ads. As trades pick up, the market has a mixed feel, a typical norm for this time of year. Spot pricing for bulk butter continues at 5 to 8 cents over the market of the CME Group, based on various time frames and averages used. The Tuesday CME Group butter price closed $2.2750, declining $ from Tuesday the previous week. s for: Eastern U.S., All First Sales, F.O.B., Grade AA, Conventional, and Edible Butter Bulk Basis Pricing - 80% Butterfat $/LB: CENTRAL In the Central region, cream is readily accessible to most butter makers. Nevertheless, Class II and other users are actively drawing out some cream as well. Therefore, there are some expectations that cream may tight up a bit. Butter manufacturing varies depending on locations. In the South central region, production is stable whereas in the upper Midwest, it has declined a bit. Other parts of the central are seeing a small growth in butter output levels. Generally, butter orders are flat to increasing as requests for the upcoming holiday are being placed. Inventories are adequate to satisfy all buyers' needs. s for: Central U.S., All First Sales, F.O.B., Grade AA, Conventional, and Edible Butter Bulk Basis Pricing - 80% Butterfat $/LB: WEST Butter processing is going at a heavy pace as producers continue to build their inventories for future usages. Cream loads are available to western manufacturers, but discounted prices cannot be easily found. Butter sales to retailers and to food service accounts remain good since the holiday demands are being fulfilled. With the baking season approaching, butter orders are likely to pick up. Meanwhile, butter stocks are plentiful and growing to the satisfaction of manufacturers. Nonetheless, according to a few contacts, current inventories are below last year volumes. Bulk butter cash prices are the same as last week and range $.0300-$.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: Secondary Sourced Information: The Grade AA butter price at the CME Group on Wednesday closed at $2.2650, compared to the weekly average price of $ from last week. CONTINUE ON PAGE 2A NATIONAL DAIRY PRODUCTS SALES REPORT U.S. AVERAGES AND TOTAL POUNDS WEEK ENDING 03/23/2019 BUTTER ,094,805 CHEESE 40# BLOCKS ,482,577 CHEESE BARRELS 38% MOISTURE ,401,545 DRY WHEY ,455,236 NDM ,015,731 Further data and revisions may be found on the internet at:

4 DAIRY MARKET NEWS, MARCH 25-29, A- VOLUME 86, REPORT 13 CONTINUED FROM PAGE 2 Cold Storage Butter Summary National Retail Report Dairy Butter Summary Advertised s at Major Retail Supermarket Outlets ending period of 3/22/2019 to 3/28/2019 Butter 1# Weighted Average National This Period Last Week Last Year Organic $5.29 $5.29 n.a. Conventional $3.57 $3.12 $2.90 s This Period Regional (Conventional) Wtd. Ave. Low High Alaska $4.07 $2.99 $4.50 Hawaii $4.99 $4.99 $4.99 Midwest $2.78 $1.99 $3.99 Northeast $3.56 $2.79 $3.99 Northwest $3.19 $2.50 $3.99 South Central $2.96 $2.50 $3.99 Southeast $3.96 $3.50 $3.99 Southwest $3.73 $2.50 $4.99 Released March 22, 2019, by the National Agricultural Statistics Service (NASS), Agricultural Statistics Board, United States Department of Agriculture (USDA). Stocks in all Warehouses (1,000 pounds) 2/28/19 as a percent of Butter 2/28/18 1/31/19 2/28/19 2/28/18 1/31/19 Butter Stocks 265, , , Record High Record Low February (1000 (1000 Records pounds) Year pounds) Year Butter 624, , 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 25-29, VOLUME 86, REPORT 13 NORTHEAST Milk volumes are available in the Northeast. Class III milk loads are keeping operations fairly full currently. Cheddar and Italian cheese production schedules are strong and inventories are growing. The demand for aged cheddar is steady to quiet at this time. Some market participants anticipate an uptick in aged cheddar interest in the next couple warmer months. Manufacturers are preparing cheese orders for spring holiday commitments. Domestic demand is healthy. Cheddar cheese barrel spot trades are steady to increased this week. Cheddar cheese block spots are fairly stable currently. There is a smaller price spread between barrel and block cheese. Northeast wholesale cheese prices for cheddar and Muenster shifted higher by $0.0375, additionally, the process cheese prices heightened by $ The Grade A Swiss price is steady 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 CHEESE MARKETS users say they are getting plenty of offers. Strong milk production is filling into the cheese vats. In California, the new federal milk marketing order is reshuffling how milk flows into manufacturing facilities. Some cheese plants are holding back on production, while others are shifting production away from American-style cheeses. In some cases, cheesemakers are switching some production to other natural cheeses or specialty cheeses. In other cases, the manufacturer is diverting milk into other dairy product processing altogether. The net effect is less cheese being made in the state and more butter and milk powder. 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 MIDWEST Midwestern cheese makers report orders seem to have picked up over the last few weeks. Ready to consume snacks, such as curds, are moving well. And barrel producers also report an increase in buyer interest. The uptick in sales activity is matching seasonal expectations, as warmer weather elicits hopes of a strong grilling season. Currently, milk is in good balance with processing needs. There are a few more spot milk loads available. Reported spot milk load prices range from $1 above to $1.25 under Class. Cheesemakers have mixed feelings on taking on the extra milk. Some are content to use only their own patrons milk or the milk they normally receive from current agreements. They have a desire to keep inventories capped from growing further. Others will take on the milk, especially if it can be matched to an extra cheese order. Cheese market prices are infusing a dose of uncertainty into the market. The price gap on the CME between blocks and barrels had narrowed to a half cent last Friday, but now stands at $ Midwestern Wholesale Adjustments Midwestern wholesale prices are unchanged for Swiss cuts, up $.1000 for process and up $.0375 for all 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 WEST Western cheese demand is steady. Some manufacturers note an increase in barrel purchases over the last few weeks. The added activity helped narrow the gap between prices for blocks and barrels on the CME last week. However, uncertainty in the market pushed the gap back up to $.1375 by mid-week. Inventories remain heavy and end The semi-hard cheese market has been consistently stable in Germany. Although stocks are currently low, supplies and contractual demand are in good equilibrium. Orders from Southern European countries and from the domestic market are unchanged from the previous week. Nonetheless, industry participants expect an increase in cheese deliveries for the upcoming holiday. In January 2019, the EU exports of cheese increased by 8 percent compared to last year at the same period. The semi-hard cheese market prices are steady in Germany. In the U.S., the prices for wholesale blue, gorgonzola, parmesan Italy, and Romano increased $ All other prices remain unchanged from the previous week. 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 CETNERS IN THOUSAND POUNDWS - INCLUDING GOVERNMENT STOCKS : BUTTER CHEESE 03/25/2910: : : /01/2019 : : CHANGE : 3709 : % CHANGE : 11 : -4 Volumes for Butter and Cheese: U.S., Edible, and Pounds Information for Monday, issued weekly CONTINUED ON PAGE 3A

6 DAIRY MARKET NEWS, MARCH 25-29, A- VOLUME 86, REPORT 13 CONTINUED FROM PAGE 3 CHEESE MARKETS National Retail Report Dairy Cheese Summary Advertised s at Major Retail Supermarket Outlets ending during the period of 3/22/2019 to 3/28/2019 Cheese 8 oz. Blocks Weighted Average National This Period Last Week Last Year Organic n.a. n.a. n.a. Conventional $2.33 $2.06 $2.17 Regional (Conventional) Wtd. Ave. Low High Alaska n.a. n.a. n.a. Hawaii $2.25 $2.25 $2.25 Midwest $2.18 $1.99 $3.50 Northeast $2.24 $1.66 $3.50 Northwest $2.51 $1.99 $2.99 South Central $2.09 $1.67 $2.99 Southeast $2.45 $1.99 $2.99 Southwest $2.60 $1.99 $2.99 Cheese 8 oz. Shred Weighted Average National This Period Last Week Last Year Organic n.a. $3.49 $3.49 Conventional $2.22 $2.05 $2.03 Regional (Conventional) Wtd. Ave. Low High Alaska $4.00 $4.00 $4.00 Hawaii $2.25 $2.25 $2.25 Midwest $2.10 $1.99 $2.22 Northeast $2.19 $1.77 $3.00 Northwest $2.36 $1.99 $2.50 South Central $2.17 $1.67 $3.00 Southeast $2.24 $1.88 $3.00 Southwest $2.38 $1.99 $3.00 Cold Storage Cheese Summary Released March 22, 2019, by the National Agricultural Statistics Service (NASS), Agricultural Statistics Board, United States Department of Agriculture (USDA). * Record monthly high total. 2/28/19 Stocks in all Warehouses (1,000 pounds) as a percent of Natural Cheese 2/28/18 1/31/19 2/28/19 2/28/18 1/31/19 Total natural cheese 1,317,731 1,369,561 1,370, American, total 762, , , New England 65,015 75,962 67, Middle Atlantic 56,871 73,226 72, East North Central 325, , , West North Central 118, , , South Atlantic East South Central 17,148 16,718 13, West South Central 12,214 2,925 4, Mountain 60,138 61,305 59, Pacific 107, , , Swiss, total 27,884 29,353 31, Other, total 527, , , New England 1, Middle Atlantic 14,965 14,228 15, East North Central 349, , , West North Central 48,334 44,937 42, South Atlantic 27,575 32,032 47, East South Central 18,620 19,479 20, West South Central 1,856 2,122 2, Mountain 3,943 2,759 2, Pacific 60,345 61,879 63, Record High Record Low February Records (1000 pounds) Year (1000 pounds) Year American 1,116, , Swiss 34, Other * 553, , Total Natural Cheese * 1,370, ,

7 DAIRY MARKET NEWS, MARCH 25-29, VOLUME 86, REPORT 13 EAST Milk off Northeastern farms is seasonally higher. Milk volumes are accessible in the region for manufacturing needs. Operations are actively planning spring holiday orders with several customers. Mid- Atlantic milk output is seasonally increasing. Balancing plants are at or near full capacity. Southeast milk output is slightly up. Class I sales are steady to a bit lower. Bottlers' orders are down due to many schools being out for spring break. Some manufacturers' operations are receiving more milk this week. There are reports Florida milk production has passed its peak and is leveling off. Class I sales are stable to a bit lower. Cream interest is steady to perking up a bit in the East. Loads are available, yet there are reports of lower offers currently. More cream customers are requesting loads at this time. Regional cream multiples range Top multiples reflect purchases on a time and need basis. Manufacturers' condensed skim orders are stable to increased. There are reports heavier condensed skim sales are taking place. Many Northeast loads are being transported to neighboring regions. 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: MIDWEST Many reports continue to state concern about current snow melt, flooding areas from the lower to the upper Midwest. Some farmers in Wisconsin and Minnesota are feeling the spring weather impact. Farmers in Nebraska, Iowa, and Illinois are still undergoing the rapid flooding. Many homes have been evacuated in North Dakota. With harsh weather conditions, effects are still undetermined on milk production, dairy herds and future feedstocks. Central region's farm milk is coming up a bit. Bottlers' orders are steady to slower as many educational institutions are closed for spring break. Milk prices into Class III production were $1.00 to $1.25 under at this time. There are mixed reports of available spot milk loads. Some market participants report intakes are adequate to run their set loads and they are not looking for added milk commitments. Cream is available in the region. The demand is steady to increasing, as several Class II and other users are pulling more loads for spring holiday orders. In general, cream spot load trades are steady to lackluster as market activity is somewhat quiet. In the South central region, butter churns are stable. However, in the upper Midwest, churns have slowed a bit. close to its production site. Plant facility managers do not foresee any issue with milk handling during the spring flush. Milk sales to retailers are steady. In Arizona, milk output is increasing. However, supplies are manageable within the state. Processing plants are still running near full capacities. Bottled milk demand is back up for supermarket sales now that the spring break is over. Overall, there is a good balance between milk offerings and orders. Milk production is building seasonally in New Mexico, but efficiency in routing milk volumes to the nearest processing facilities is helping handlers save on freight costs. Milk volumes are in good equilibrium with sales. At most plants, there remains plenty of room for additional milk handling if the need arises. Repair and maintenance workloads are minor this week. Class I and III sales grew, but there was a slight decrease in Class II demand. Pacific Northwest milk production continues to increase. Favorable weather is providing good cow comfort after a stretch of tough winter weather last month. Bottling demand is picking up as schools resume classes following spring break. There is plenty of milk for manufacturers and many plants are operating at or near full capacity. Milk production in the mountain states of Idaho, Utah and Colorado is steady. Milk intakes are mostly in balance with processing needs. However, a few industry contacts suggest there are some spot loads of milk available at $3 under Class IV in Idaho, and some loads of milk are shifting around the region to fill sales orders. Farmers are confident the snow pack in the mountains will provide enough water for the upcoming cropping season. Western condensed skim is in good supply. Drying is active. Nonetheless, less condensed skim is moving from Arizona into California this week. This might explain why some industry participants stated that condensed skim prices are a bit higher than what California buyers would like to pay. There has been a little uptick on ice cream production schedules which in turn is drawing some cream loads away from the churns. Cream is also moving to other Class II products for the holiday. However, buyers are resistant to premium cream prices, but can't seem to find discounted sale prices. The cream market has tightened up a bit. Contacts say that some cream customers are looking to contract cream for the next three months. Cream multiples for all Classes are Western U.S., F.O.B. Cream Multiples - All Classes: Midwestern U.S., F.O.B. Cream Multiples - All Classes: Class II; $/LB Butterfat: Multiples - Class II: WEST In California, it has been raining a lot recently. Nonetheless, milk production hasn't been much affected. Milk output remains seasonally strong and manufacturing plants have the capacity required to handle current milk supplies. As so, most of the milk is being processed CONTINUED ON PAGE 4A

8 DAIRY MARKET NEWS, MARCH 25-29, A- VOLUME 86, REPORT 13 CONTINUED FROM PAGE 4 National Retail Report Dairy Fluid Milk Summary Advertised s at Major Retail Supermarket Outlets ending during the period of 3/22/2019 to 3/28/2019 Half Gallon, All Fat Tests Weighted Average National This Period Last Week Last Year Organic $4.35 $4.09 $4.71 Conventional $1.85 $2.29 $2.28 Regional (Conventional) Wtd. Ave. Low High Alaska n.a. n.a. n.a. Hawaii $3.99 $3.99 $3.99 Midwest $1.02 $0.88 $1.19 Northeast $4.49 $4.49 $4.49 Northwest $2.69 $2.69 $2.69 South Central $1.62 $1.19 $1.89 Southeast $0.88 $0.88 $0.88 Southwest $0.98 $0.98 $0.98 Regional (Organic) Wtd. Ave. Low High Alaska n.a. n.a. n.a. Hawaii n.a. n.a. n.a. Midwest $4.39 $3.99 $4.79 Northeast $4.66 $3.97 $4.99 Northwest $4.29 $4.29 $4.29 South Central $4.43 $4.29 $4.99 Southeast $4.06 $3.99 $4.29 Southwest $4.38 $3.99 $4.99 Gallon, All Fat Tests Weighted Average National This Period Last Week Last Year Organic $6.62 n.a. $6.50 Conventional $2.88 $2.81 $2.44 Regional (Conventional) Wtd. Ave. Low High Alaska $2.99 $2.99 $2.99 Hawaii n.a. n.a. n.a. Midwest $2.89 $2.50 $2.99 Northeast $3.99 $3.99 $3.99 Northwest $1.99 $1.99 $1.99 South Central $2.85 $1.99 $3.99 Southeast n.a. n.a. n.a. Southwest $2.59 $2.59 $2.59 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 $6.99 $6.99 $6.99 Northwest $5.00 $5.00 $5.00 South Central n.a. n.a. n.a. Southeast $6.99 $6.99 $6.99 Southwest n.a. n.a. n.a.

9 DAIRY MARKET NEWS, MARCH 25-29, VOLUME 86, REPORT 13 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 EAST: Eastern markets for low/medium heat nonfat dry milk (NDM) shifted on the shoulders of spot sales and indices that reflect slightly lower pricing. With a degree of concern, some NDM suppliers suggest that the market is producing volumes at a much higher rate than volumes being moved, as a few NDM production facilities operate at/near full capacity. In general, NDM spot interest is moderate to flat. Contracted stock tends to help with support of inventory management. NDM shipping costs are a principal deterrent, holding back purchasing from processors in adjacent regions. High heat nonfat dry milk markets are tight to balanced. Because limited volumes are being produced, bids are being subjected to less-thanload purchases in some spot markets. CENTRAL: Low/medium heat nonfat dry milk (NDM) markets continue to feel soft. Current prices slid lower on all four sides of the price range and mostly series. At this time, spot trades are slower, but some market participants are purchasing at lower prices. Manufacturers are offering available spot loads. NDM drying is stable and inventories are steady to increasing. Regional low/medium NDM trades in some international markets have been somewhat bearish. High heat NDM prices are steady to a bit increased. Some high heat NDM operations suggest inventories and spot interest are in balance. The high heat market tone is fairly steady. 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 The low/medium heat nonfat dry milk (NDM) market tone is softer this week. s decreased on the range while remaining flat on the mostly series. Demand is following a somewhat downward trend for some sellers, whereas it is steady for others. There is a good volume of low/medium heat NDM available in the market. Therefore, some buyers are not hastening to purchase as they expect supplies to remain long for a while, with the possibility of lower prices. In the meantime, manufacturers are eagerly waiting for the baking season and spring festivities to increase their sale volumes. The processing of low/ medium heat NDM is active throughout the West. The high heat NDM market is following the same trend as the previous week. s dropped a tad at the top of the range, but demand and supplies are steady. Contract fulfillment is still the prevailing reason for the requests of high heat NDM. Production schedules remain scarce. 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: DRY BUTTERMILK - CENTRAL AND EAST EAST: s for dry buttermilk are steady to higher this week as a few spot sales increased the top of the range. As the holiday nears, cream-based products are starting to pull on cream supplies. While butter production remains fairly active, processors are moving condensed buttermilk, on increased buyer interest, rather than drying. Buyers shopping for dry buttermilk noted very limited availability. The market undertone is mixed. CENTRAL: Dry buttermilk prices in the Central region are steady to a bit increased. A few spot loads traded at higher price points this week. Condensed buttermilk trading activity is fairly moderate at this time. There are some reports buttermilk powder inventories are limited, and drying schedules are somewhat intermittent. The demand is steady to irregular. Market conditions are generally steady currently. s for: Eastern and Central U.S., All First Sales, F.O.B., Conventional, and Edible Buttermilk ; $/LB: DRY BUTTERMILK - WEST The western dry buttermilk price range has widened, but the mostly price series hasn't changed. A manufacturer cleared multiples loads at lower prices, driving the bottom end of the range down. With the peak of the ice cream and baking seasons getting close by, more condensed buttermilk will escape the dryers. Nonetheless, current dry buttermilk production schedules are steady due to ongoing butter churning. Dry buttermilk inventories seem less tight than in previous weeks. Spot loads trading activities are unchanged from last week. Market conditions are reported as flat to a bit weak. s for: Western U.S., All First Sales, F.O.B., Conventional, and Edible Buttermilk ; $/LB: Mostly - ; $/LB: DRY WHOLE MILK - NATIONAL F.O.B. prices for national dry whole milk remained steady compared to last week. The market undertone is stable, according to some industry participants. Spot market activities are slower to develop whereas contractual loads are following steady sale trends. Dry whole milk outputs are slightly up as the last orders for the spring holiday are being fulfilled. Inventories are flat to moderately up. s for: U.S., All First Sales, F.O.B., Conventional, and Edible Dry Whole Milk - 26% Butterfat; $/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: Secondary Sourced Information: Grade A nonfat dry milk price at the CME Group on Wednesday closed at $.9625, up from last week's weekly average price of $.9605.

10 DAIRY MARKET NEWS, MARCH 25-29, VOLUME 86, REPORT 13 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 The market tone for Central whey is unsteady. That said, domestic demand is stable and there hasn t been much push back on contract shipments. Whey prices were mostly unchanged with light spot trading activity. However, the bottom of the price range moved lower due to the pressures exerted by trading at the CME and weak demand from Southeast Asia. A few industry contacts suggest Chinese buyers may sit out of the market through the next quarter because they already have plenty of whey on hand and a limited market demand. African swine fever continues to spread across Asia. Estimates vary, but suggest that the Chinese had to depopulate at least 20 percent of the pig herd. The reduced demand has caused whey inventories to build with some manufacturers. The U.S. feed market has picked up the slack a little, but cannot fully replace those markets. U.S. animal feed whey prices are unchanged. 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 Dry whey prices are steady to a bit lower this week. Eastern market conditions are fairly unchanged compared to recent weeks. Production schedules are stable. Dry whey inventories are available and there are offers on the spot market. On some markets, buyers are bidding on decreases spot prices to make purchases. Traders are receiving contractual loads, yet their customers' demand is somewhat lackluster. 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 The price range for western whey expanded slightly, and the mostly price series held steady. A few manufacturers were able to move significant volumes of dry whey to multiple buyers within published price ranges. However, the market is still under pressure from lower priced trades on the CME and the reduced demand in some international markets. Chinese whey purchases for their pig feed industry have evaporated due to African swine fever. While the U.S. market has taken up some of the slack, inventories are building at some manufacturers. Some buyers are looking to the CME as a good place to pick up a few loads of inexpensive dry whey. Dry whey production in parts of the West is lower. A few processors are choosing to make higher whey protein concentrations instead of dry whey, and cheese production, and the resulting liquid whey produced, are lower in parts of the region. 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: WHEY PROTEIN CONCENTRATE Whey protein concentrate 34% prices held steady. Some manufacturers report it is business as usual. Buyers seem happy to take contract loads and the occasional extra load to assure needs are filled, especially for WPC34% that meets infant formula requirements or other preferred brands. Inventories remain somewhat tight for certain brands, more available for others. WPC34% production is generally stable, even as some manufacturers make more higher whey protein concentrations than 34%. 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: LACTOSE Lactose prices held steady on the mostly price series, but moved higher on the range. Certain brands and higher mesh lactose have strong demand and comfortable to tight inventories. Buyers are happy to take on a few extra loads to assure coverage. Lactose that is viewed solely as a carbohydrate source still faces intense market pressures and weak demand. While the price at the bottom of the range moved higher this week, some industry contacts expect prices to vacillate at low levels until the African swine fever epidemic in Southeast Asia can be controlled. The disease is causing lactose stocks of some brands to back up. Lactose production is steady. 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 s for acid and rennet casein are steady this week. Many possible buyers are stepping back following last week s price increases, to assess the markets. This is a tricky time of year for casein markets. Milk production and hence, casein production in New Zealand is declining in the final months of the milk season. Lower milk production is squeezing inputs to casein plants. Current production is mostly committed. Production is slowly increasing in Western Europe. Contracting for Q2 is mostly completed in Western Europe. That leaves little casein for spot markets. However, regular buyers in global casein markets are aware of the seasonal patterns and most seasoned customers are covered. 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: Casein and caseinate exports from New Zealand during January- February 2019, 11,000 MT, increased 16.2 percent from January- February 2018 according to CLAL. The four primary destinations, percent change January-February 2019/2018, and quantity, are shown in the following table. % Change Jan.-Feb. Jan.-Feb Country 019/2018 Quantity MT United States ,423 Germany ,269 Mexico ,967 China

11 DAIRY MARKET NEWS, MARCH 25-29, VOLUME 86, REPORT 13 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 03/09/ 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

12 DAIRY MARKET NEWS, MARCH 25-29, VOLUME 86, REPORT 13 INTERNATIONAL DAIRY MARKET NEWS - EUROPE Information gathered March 18-29, 2019 s are U.S. $/MT, F.O.B. port. Information gathered for this report is from trades, offers to sell, and secondary data. This bi-weekly report may not always contain the same products and/or regions. Future reports may be included or withdrawn depending on availability of information. MT = metric ton = 2,204.6 pounds. WESTERN OVERVIEW Early indicators of current milk production in parts of Western Europe identify both: (1) production seasonally increasing; as well as (2) production being higher than at this point last year. Hope abounds that current results are a harbinger that recent concerns over lower milk production outcomes in January, related to unusually cold weather, will not thwart overall milk production increases for The EU dairy industry is quite confident that, through longstanding export customer relations, and many favorable trade treaties, whatever dairy products can be manufactured in Western Europe, not needed for internal markets, can be exported. Thus, the more milk produced in 2019 the more profits for dairy manufacturers, is considered to be paradigmatic expectation for the Western European dairy industry. EU milk production during January 2019, 12.9 million MT, was 1.4 percent lower than January 2018 according to Eurostat. This was an unexpected outcome. Atypical January weather was blamed. The table below shows data for some top milk producing EU countries. EU Cow Milk Production Change January 2019/January 2018 Country Percent 2019 MT Germany ,728,380 France ,148,450 United Kingdom ,292,600 Netherlands ,166,600 Italy ,047,860 The January ranking of the United Kingdom as the EU s third largest milk producing member state is a reminder of how significant the outcome of the Brexit muddle will be for the UK, the EU, as well as for the global dairy trade. Whatever the merits or demerits of Brexit, almost everyone in the EU and UK dairy industry is extremely uncertain of the impact on dairy of the UK leaving the EU. Partly this relates to the present uncertainty as to the terms that will apply if the UK leaves. The chaotic nature of current deliberations in the UK worries many dairy industry producers, processors and traders, who wish for more orderly planning for the future. The current cheese market in Western Europe is facing very good demand. Manufacturers are handling domestic and export orders but would be okay with making more cheese. EU cheese production during January 2019, 772,430 MT, was 1.0 percent lower than January 2018 according to Eurostat. Most EU cheese manufacturers would happily make more cheese if more milk was available to them. The table below shows data for some top cheese producing EU countries. Cheese Production Change January 2019/January 2018 EU cheese exports during January 2019, 67,991 MT, increased 8 percent from January 2018 according to Eurostat. Cheese exports for January were 8.8 percent of production. EU Cheese Exports Top 3 Destinations Metric Tons January 2019 Percent change 2019/2018 Destination MT Percent Change United States 9, Japan 8, Switzerland 5, BUTTER/BUTTEROIL Butter prices in Western Europe are mixed, weaker at the low end of the price range, but higher at the top. s are highest in Germany and France, lower in Netherlands and Italy. Butteroil prices are also mixed, down at the low end of the price range, but higher at the top. This week, warmer weather earlier than this time last year is bringing the first of fresh local asparagus to markets in Germany, France, and some other locations. This has commenced the early edge of anticipated typical seasonal increases in demand for butter. Like the much-noted demand for pizza in the U.S. leading up to the Superbowl, the asparagus season is a big factor driving butter demand in Western Europe. It remains to be determined whether increased demand for butter will have a noticeable impact on prices, or whether increasing milk production will yield enough cream to allow higher butter production, which might mitigate changes in the supply/ demand price relationship. Some areas in Western Europe experienced increases in cream pricing this week. Butter manufacturers believe many buyers are stocked for the short term, so a wait and see approach for spot transaction activity has developed as the pricing factor is watched. Slower buying has not dented churning schedules because manufacturers want to be prepared for higher butter demand in coming months. Western Europe, 82% Butterfat, Free on Board - Port Butter - $/MT: 4,525-5,050 Western Europe, 99% Butterfat, Free on Board - Port Butteroil - $/MT: 5,875-6,300 Secondary Sourced Information: EU butter production during January 2019, 189,420 MT, was 1.9 percent lower than January 2018 according to Eurostat. The table below shows data for some top butter producing EU countries. Butter Production Change January 2019/January 2018 Country Percent 2019 MT Country Percent 2019 MT Germany ,810 France ,820 Italy ,850 Netherlands ,600 Germany ,730 France ,250 Netherlands ,300 CONTINUED ON PAGE 8A

13 DAIRY MARKET NEWS, MARCH 25-29, A- VOLUME 86, REPORT 13 INTERNATIONAL DAIRY MARKET NEWS - EUROPE Information gathered March 18-29, 2019 s are U.S. $/MT, F.O.B. port. Information gathered for this report is from trades, offers to sell, and secondary data. This bi-weekly report may not always contain the same products and/or regions. Future reports may be included or withdrawn depending on availability of information. MT = metric ton = 2,204.6 pounds. CONTINUED FROM PAGE 8 EU butter exports during January 2019, 10,731 MT, decreased 15 percent from January 2018 according to Eurostat. EU Butter Exports Top 3 Destinations Percent change January 2019/2018 EU SMP Exports Top 3 Destinations Percent change January2019/2018 Destination MT Percent Change Algeria 11, China 10, Philippines 8, Destination MT Percent Change United States 2, Japan China SKIM MILK POWDER Skim milk powder prices in Western Europe are lower. The lower prices are viewed as a trading fluctuation, not indicative of a new trend. The market tone is calm. Pricing is lower than in 0ceania. Most internal EU customers are decently stocked for the current quarter, so spot transactional activity is limited. Most current production is committed, which also limits spot market activity. Export interest continues, but international buyers are increasingly restrained. In the final analysis, the Western European SMP pricing competitive advantage over Oceania, and increasing supplies in coming months, will likely lead to increased export activity. Manufacturers are not greatly increasing production yet, but will likely do so soon. Little remains of tender stocks, but they are slipping slowly lower. The March 19 tender resulted in only 244 MT of the remaining 1,384 MT of tender stocks being sold, according to Eucolait. The European Commission set the minimum selling price as 1,641 euros/ MT. Bids submitted ranged from 1,550 euros/mt to 1,680 euros/ MT. The next deadline to bid for remaining stocks is April 16. s for: Europe, All First Sales, Free on Board - Port, Conventional, and Edible Skim Milk Powder % Butterfat; $/MT: 2,075-2,300 Secondary Sourced Information: EU SMP production during January 2019, 130,580 MT, was 8.5 percent lower than January 2018 according to Eurostat. The table below shows data for some top SMP producing EU countries. SMP Production Change January 2019/January 2018 Country Percent 2019 MT Germany ,030 France ,830 Poland ,770 EU SMP exports during January 2019, 86,800 MT, increased 53 percent from January 2018 according to Eurostat. WHEY Western European dry whey prices are mixed, widening the price range. s are down at the low end, but up at the top end. Pricing varies among countries, highest in Germany, but lower in France and Netherlands. The divergent price range changes reflect source, locational and timing factors. Buyers with specific sourcing preferences are generating the higher price movement. Whey stocks are decent in terms of meeting demand. Production is expected to slowly increase over coming months at a gradual pace not likely to change the overall market tone. s for: Western Europe, All First Sales, Free on Board - Port, Conventional, and Edible Dry Whey - Non-Hygroscopic; $/MT: 875-1,150 Secondary Sourced Information: EU whey exports during January 2019, 61,000 MT, decreased 2.3 percent from January 2018 according to CLAL. Whey Export Change January 2019/January 2018 Destination 2019 MT Percent Change China 17, Indonesia 7, South Korea 5, WHOLE MILK POWDER Whole milk powder prices in Western Europe are mixed, slightly stronger at the low end of the price range, but steady at the top. The slight price movement still leaves WMP as essentially a stable market. With Western European pricing being close to Oceania pricing, price is not usually a current dispositive factor as to export potential. Production is winding down seasonally in Oceania, but winding up in Western Europe. Supply availability may become helpful to European exporters in coming months. However, most WMP production in Western Europe tends to be focused on internal markets, rather than exports. Internal demand is steady. Stocks are slightly tighter than some buyers prefer, but overall available. With milk production picking up there should be some increase in WMP production. CONTINUED ON PAGE 8B

14 DAIRY MARKET NEWS, MARCH 25-29, B- VOLUME 86, REPORT 13 INTERNATIONAL DAIRY MARKET NEWS - EUROPE Information gathered March 18-29, 2019 s are U.S. $/MT, F.O.B. port. Information gathered for this report is from trades, offers to sell, and secondary data. This bi-weekly report may not always contain the same products and/or regions. Future reports may be included or withdrawn depending on availability of information. MT = metric ton = 2,204.6 pounds. CONTINUED FROM PAGE 8A s for: Europe, All First Sales, Free on Board - Port, Conventional, and Edible Whole Milk Powder - 26% Butterfat; $/MT: 3,150-3,425 Secondary Sourced Information: EU WMP production during January 2019, 58,460 MT, was 6.4 percent lower than January 2018 according to Eurostat. The table below shows data for some top WMP producing EU countries. WMP Production Change January 2019/January 2018 Country Percent 2019 MT Netherlands ,300 Germany ,250 France ,030 EU WMP exports during January 2019, 27,425 MT, decreased 10 percent from January 2018 according to Eurostat. EU WMP Exports Top 3 Destinations Percent change January 2019/2018 Destination MT Percent Change Oman 5,691-9 Cuba 2,110 +1,440 Kuwait 1,673-10

15 DAIRY MARKET NEWS, MARCH 25-29, C - VOLUME 86, REPORT 13 INTERNATIONAL DAIRY MARKET NEWS - OCEANIA Information gathered March 18-29, 2019 s are U.S. $/MT, F.O.B. port. Information gathered for this report is from trades, offers to sell, and secondary data. This bi-weekly report may not always contain the same products and/or regions. Future reports may be included or withdrawn depending on availability of information. MT = metric ton = 2,204.6 pounds. OCEANIA DAIRY MARKET OVERVIEW AUSTRALIA: The trend of dairy herd reductions continues among many Australian dairy producers. Recent drought conditions contributed to herd reductions. It is generally not expected that herds will increase during the final months of this season, probably not next season either. Australia s growing population, and good demand for milk and dairy products, is expected to result in lower dairy exports over the next year. Making cheese for export is increasingly identified as a favored export dairy emphasis. Cheese is viewed within Australia as a dairy product where Australia has a competitive advantage in its traditional export markets. The shifting season in Australia has brought cooler weather with rain in some areas. More rain will be welcomed, but rain this week is a nice change from recent months. The new trend is favorable but is so far not enough to overcome the effects of months of dryness and high heat. Some new season hay is appearing in markets. This is good news as carryover stocks have been lower than desired. Stocks are still low enough that government subsidies for transporting hay, feed and livestock remain in effect. NEW ZEALAND: February 2019 New Zealand milk production reported by DCANZ was million MT, up 0.1 percent from February 2018 milk production, million MT. February 2019 milk solids, million kg, are down 0.1 percent from February 2018, million kg. Cyclone Trevor has left devastation and flooding throughout the South Island and many parts of the West Coast of New Zealand. Characterized as a 100 year event, extremely heavy rain has washed out roads and bridges, also leaving some roads impassable. Milk hauling is disrupted in some areas. On farm damage has yet to be tallied. Forecasters are already warning about another cyclone developing next week, expected to further impact northern parts of New Zealand. Another challenge to West Coast dairy producers is the possible distress sale of a major cooperative dairy processor which has been financially struggling. Directors are soliciting views from cooperative members as to offers from various prospective buyers. Farm milk pay price, assumption of coop debt, and assurance of continued milk pick up even in more remote areas, are matters of primary concern to coop members. BUTTER/BUTTEROIL Butter prices in Oceania firmed. Available stocks of butter are tighter, and buyers are engaged in securing what they believe they need. The firming market tone is discouraging delays in closing deals. Buyers are finding that non-gdt pricing for deliveries in coming months is leading the GDT results last week. Butter markets seem likely to maintain strength in coming months. Buying interest is strong, with buyers and manufacturers being aware that seasonally lower milk production is limiting churning. This is expected to support butter price strength. Australian butter production is generally striving to keep up with domestic demand. New Zealand continues to be the primary source for butter imported to Australia. Capacity and proximity are strong factors in this ongoing pattern. Oceania, 82% Butterfat, Free on Board - Port Butter - $/MT: 5,100-5,300 Secondary Sourced Information: Butter exports from Australia during January 2019, 1,600 MT, were up 80.3 percent from January 2018, according to CLAL. This percentage increase is considered illusory in the expected annual outcome. One month, especially January, is easily skewed by large buyers who were waiting until the new year to commit to new purchases. Capacity, timing, and current seasonal milk production will keep annual exports of butter far closer to recent year totals than to the January percentage results. The table below shows the top export destinations and country percent change comparing January 2019 with January Australia Butter Exports January 2019/January 2018 % Change Jan. Destination MT 2019/2018 Thailand United States 438 * Taiwan Indonesia *No exports to U.S. January 2018 At GDT event 232 on March 19, the butter all contracts price, $5,089, increased 9.3 percent. The April contract, $5,100, increased 8.4 percent. SKIM MILK POWDER Skim milk powder prices in Oceania are lower. Spot market interest for current delivery has slowed. Various factors are mentioned. First, many buyers are set with contracts. Second, Oceania pricing is enough higher than Western European pricing that some buyers are looking toward Western Europe. Finally, currently available stocks are a bit beyond near term spot market needs. Oceania SMP production has been seasonally declining, resulting in less milk being available for dairy manufacturing. Moreover, available milk is being drawn to other products, especially WMP, where contracts remain to be filled and pricing is strengthening. Except for buyers who need to cover right away, many buyers are standing back in many cases, believing that current SMP price weakness may offer better deals in coming weeks. SMP exports from Australia during January 2019, 19,000 MT, were up 86.0 percent from January 2018, according to CLAL. Some observers caution against excessive exuberance over the magnitude of the percentage increase. One month, especially January, is easily skewed by large buyers who were waiting until the new year to commit to new purchases. Capacity, timing, and current seasonal milk production will keep annual exports of SMP far closer to recent year totals than to the January percentage results. CONTINUED ON PAGE 8D

16 DAIRY MARKET NEWS, MARCH 25-29, D - VOLUME 86, REPORT 13 INTERNATIONAL DAIRY MARKET NEWS - OCEANIA Information gathered March 18-29, 2019 s are U.S. $/MT, F.O.B. port. Information gathered for this report is from trades, offers to sell, and secondary data. This bi-weekly report may not always contain the same products and/or regions. Future reports may be included or withdrawn depending on availability of information. MT = metric ton = 2,204.6 pounds. CONTINUED FROM PAGE 8C s for: Oceania, All First Sales, Free on Board - Port, Conventional, and Edible Skim Milk Powder % Butterfat; $/MT: 2,375-2,575 Secondary Sourced Information: SMP exports from Australia during January 2019, 19,000 MT, were up 86.0 percent from January 2018, according to CLAL. Some observers caution against excessive exuberance over the magnitude of the percentage increase. One month, especially January, is easily skewed by large buyers who were waiting until the new year to commit to new purchases. Capacity, timing, and current seasonal milk production will keep annual exports of SMP far closer to recent year totals than to the January percentage results. The table below shows the top export destinations and country percent change comparing January 2019 with January Australia SMP Exports January 2019/January 2018 % Change Jan. Destination 2019/2018 China Indonesia Malaysia At GDT event 232 on March 19, the low, medium and high heat SMP all contracts price, $2,405, decreased 2.4 percent. The April contract, $2,586, decreased 10.4 percent. CHEESE Cheddar prices in Oceania are stronger. The certainty of lower cheddar production moving into the final months of the current milk season is increasingly on the minds of buyers. Most current needs are covered. Thus, cheddar demand for current purchases has slowed a bit. Contracting for coming months is showing more buying interest. This is keeping cheese manufacturers actively producing to be assured of being able to meet near term contract obligations, even with fewer buyers needing immediate spot martket deliveries. Particularly in Australia, cheese manufacturing is a high priority focus for dairy processors. s for: Oceania Cheese, Cheddar, 39% Maximum Moisture, Free on Board - Port, - $/MT: 4,025-4,150 Secondary Sourced Information: Cheddar exports from Australia during January 2019, 12,000 MT, were up 4.6 percent from January 2018, according to CLAL. The table below shows the top export destinations and country percent change comparing January 2019 with January Australia Cheese Exports January 2019/January 2018 % Change Jan. Destination 2019/2018 Japan China Malaysia South Korea At GDT event 232 on March 19, the cheddar all contracts price, $4,036, increased 3.9 percent. The April contract, $4,086, decreased 1.2 percent. WHOLE MILK POWDER Whole milk powder in Oceania firmed. Increasing focus on the milk production season ending in a few months has motivated buyers to step up to be assured of deliveries. Pricing is within general expectations, so buyers are not taking a wait and see approach. Processor returns from WMP continue to strengthen. This mainstay dairy product in the region continues to be a priority draw for as much milk as is available to keep outputs up. Contracting obligations of manufacturers for Q2 and Q3 are already mostly committed. There is good optimism in the Oceania WMP sector. Current price levels are generating good profits and helping with dairy producer pay prices. s for: Oceania, All First Sales, Free on Board - Port, Conventional, and Edible Whole Milk Powder - 26% Butterfat; $/MT: 3,275-3,400 Secondary Sourced Information: WMP exports from Australia during January 2019, 2,500 MT, declined 53.3 percent from January 2018, according to CLAL. The table below shows the top export destinations and country percent change comparing January 2019 with January Australia WMP Exports January 2019/January 2018 % Change Jan. Destination 2019/2018 China Thailand Singapore Hong Kong At GDT event 232 on March 19, the WMP all contracts price, $3,317, increased 4.0 percent. The April contract, $3,300, increased 4.4 percent. CONTINUED ON PAGE 8E

17 DAIRY MARKET NEWS, MARCH 25-29, E- VOLUME 86, REPORT 13 INTERNATIONAL DAIRY MARKET NEWS - OCEANIA Information gathered March 18-29, 2019 s are U.S. $/MT, F.O.B. port. Information gathered for this report is from trades, offers to sell, and secondary data. This bi-weekly report may not always contain the same products and/or regions. Future reports may be included or withdrawn depending on availability of information. MT = metric ton = 2,204.6 pounds. CONTINUED FROM PAGE 8D Exchange rates for selected foreign currencies: March 25, Argentina Peso.0145 India Rupee.7113 Australian Dollar.0091 Japan yen.2594 Brazil Real.0526 Mexican Peso.7461 Canadian Dollar.6908 New Zealand Dollar.0015 Chile Peso.2636 Poland Zloty Euro.0298 Uruguay Peso Conversion example: To compare the value of 1 US Dollar to Mexican Pesos: (1/.0526) = Mexican Pesos. Source: "Wall Street Journal"

18 DAIRY MARKET NEWS, MARCH 25-29, F- VOLUME 86, REPORT 13 INTERNATIONAL DAIRY MARKET NEWS - SOUTH AMERICA Information gathered March 18-29, 2019 s are U.S. $/MT, F.O.B. port. Information gathered for this report is from trades, offers to sell, and secondary data. This bi-weekly report may not always contain the same products and/or regions. Future reports may be included or withdrawn depending on availability of information. MT = metric ton = 2,204.6 pounds. SOUTH AMERICA OVERVIEW Although the meteorological phenomenon known as El Niño is present in South America, its impact has been minimal or nil for the agricultural sector, at least for the moment, according to climate experts. During the last couple of weeks, the temperate climate favored the development of corn, soybean and cotton in key agricultural areas. In addition, the quality of the grass has improved on several dairy farms. That said, many milk producers are beginning to see some relief in feeding costs, while milk prices are becoming higher. s for: South America, All First Sales, Free on Board - Port, Conventional, and Edible Whole Milk Powder - 26% Butterfat; $/MT: 3,100-3,500 Secondary Sourced Information: At the GDT Event 232 on March 19, whole milk powder (WMP) prices across all contract periods averaged $3,317 per metric ton, up 4.0 percent from the last event. In Argentina and Uruguay, milk production at the farm level has stagnated and production levels are below last year. With the strong pulls from bottlers, in part due to the opening of schools, milk volumes moving into manufacturing are reported as constricted. In this way, at this point, some processors are manufacturing dairy products exclusively to meet the strong domestic demand, but not for export purposes. In Brazil, milk intakes are less than adequate to meet all manufacturing requests. Fluid/UHT milk orders from several private and public market channels remain strong. Compared to one year ago, the domestic demand for dairy products has increased considerably, mainly supported by a relative improvement in the economy of the country. SKIM MILK POWDER In the Southern Cone of South America, skim milk powder (SMP) f.o.b. export prices adjusted lower, following recent SMP downward pricing movements in some offshore auctions. SMP production is sporadic, but inventories remain readily available to meet immediate needs. The trading activity within and outside the continent is reported as sluggish with expectations to improve a little bit during the upcoming fall festivities. s for: South America, All First Sales, Free on Board - Port, Conventional, and Edible Skim Milk Powder % Butterfat; $/MT: 2,275-2,575 Secondary Sourced Information: At the GDT Event 232 on March 19, skim milk powder (SMP) prices across all contract periods averaged $2,405 per metric ton, down 2.4 percent from the last event WHOLE MILK POWDER With lower manufacturing milk intakes moving into dryers, partially due to strong bottled milk requests from educational institutions and the retail sector, the production of whole milk powder (WMP) is unsteady in the Southern Cone of South America. As a result, WMP supply is scarce and below regional and international demands. In some cases, manufacturers are limiting exports, producing exclusively to satisfy the domestic demand of their respective countries. This situation has contributed to an increase in f.o.b. export prices during the past two weeks, while the market continues firming. Limited export activity to Brazil is reflected on the top of the pricing range. Meanwhile, light trading activity outside the Mercosur bloc is mirrored on the bottom price of the range.

19 DAIRY MARKET NEWS, MARCH 25-29, VOLUME 86, REPORT 13 CME GROUP, INC FUTURES Selected settling prices Month 03/15 03/18 03/19 03/20 03/21 03/22 03/25 03/26 03/27 03/28 III MILK FUTURES (Pit-Traded) ($/cwt) MAR APR MAY JUN JUL AUG SEP OCT NOV CLASS IV MILK FUTURES (Pit-Traded) ($/cwt) MAR APR MAY JUN CASH SETTLED BUTTER FUTURES (Electronic-Traded) ( /lb) MAR APR MAY JUN NONFAT DRY MILK FUTURES (Pit-Traded) ( /lb) MAR APR MAY JUN WHEY (Electronic-Traded) ( /lb) MAR APR MAY JUN CHEESE CSC (Electronic-Traded) ($/lb) MAR APR MAY JUN Source:

20 DAIRY MARKET NEWS, MARCH 25-29, VOLUME 86, REPORT 13 MONTHLY COLD STORAGE REPORT TOTAL U.S. STOCKS NOTE: Data for this report is collected from public, private and semiprivate warehouses, apple houses, and meat packing plants where food products are generally stored for 30 days or more. Commodities in space owned or leased and operated by the armed services are not reported. Food stocks held under bond are included in the storage data. All stocks in thousand pounds except where otherwise indicated U.S. H O L D I N G S O F D A I R Y P R O D U C T S COMMODITY JAN 31, 2017 JAN 31, 2018 REVISED JANUARY 31, 2019 FEB 28, 2017 FEB 28, 2018 FEB 28, 2019 Butter 221, , , , , ,513 Cheese, Natural American 722, , , , , ,570 Cheese, Swiss 23,930 28,733 29,353 26,999 27,884 31,138 Cheese, Other Natural 445, , , , , ,423 Total Cheese 1,192,166 1,278,637 1,369,561 1,226,457 1,317,731 1,370,131 F E B R U A R Y S T O R A G E H O L D I N G S B Y R E G I O N New England Middle Atlantic East North Central West North Central South Atlantic East South Central West South Central Mountain Pacific REGION Natural American Cheese Butter * Other Natural Cheese ,693 65,015 67, , ,065 56,871 72,407 17,365 14,965 15, , , , , , , , , ,486 48,997 48,334 42,867 1, ,877 27,575 47,298 11,124 17,148 13,873 18,579 18,620 20,737 14,980 12,214 4,486 1,860 1,856 2,375 54,909 60,138 59,255 3,008 3,943 2, , , ,103 47,109 60,345 63,224 TOTAL 744, , , , , , , , ,423 *Regional breakdowns are not reported to avoid possible disclosure of individual operations. MILLION POUNDS Butter Cold Storage Holdings JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC DATA SOURCE, USDA, NASS; GRAPH, USDA, AMS, DMN

21 DAIRY MARKET NEWS, MARCH 25-29, VOLUME 86, REPORT 13 February Agricultural s Highlights The All Milk price received by farmers was $16.80 in February, up $1.50 from February The alfalfa hay price was $ in February, up $25.00 from February The corn price was $3.60 in February, up $0.22 from February The soybean price was $8.52 in February, down $0.98 from February The milk-feed price ratio was 2.07 in February, up 0.04 point from February The index of prices received by farmers for dairy products during the month of February 2019 was up 1 point to Compared to February 2018, the index was up 7.5 points (9.9 percent). The index of prices paid by farmers for commodities and services, interest, taxes, and wage rates in February 2019 was up 0.5 point to Compared with February 2018, the index was up 0.9 point (0.8 percent). Selected Milk s, Milk Cows, and Feed s, Selected States and U.S., February 2019 with Comparisons All-Milk price 1, 2 Alfalfa hay, baled Corn for Grain Soybeans State February February February February (dollars per cwt) (dollars per ton) (dollars per bushel) (dollars per bushel) AZ (D) (D) CA (D) (D) CO ID (D) IN IA MI MN NM (D) (D) NY OH PA TX WA (D) WI U.S NA = Not available. (D) = Withheld to avoid disclosing data for individual operations. (S) = Insufficient number of reports to establish an estimate. 1 s are shown at reported butterfat test. 2 Before deduction for hauling. Includes quality, quantity, and other premiums. Excludes hauling subsidies. Milk-Feed Ratio, Selected States and U.S., February 2019 with Comparisons Milk-feed: pounds of 16% mixed dairy feed equal in value to 1 pound of whole milk 1 State 2 February 2018 January 2019 February 2019 IA MI MN OH WI U.S The price of commercial prepared dairy feed is based on current United States prices received for corn, soybeans, and alfalfa. The modeled feed uses 51 percent corn, 8 percent soybeans, and 41 percent alfalfa hay. 2 Available states that provided all necessary data to compute milk-feed price ratios. General Measures, U.S., February 2019 with Comparisons Item February January February Index Numbers ( =100): s received by farmers for dairy production s paid by farmers for commodities and services, interest taxes, and wage rates Source: U.S. Department of Agriculture. National Agricultural Statistics Service. Agricultural Statistics Board. Agricultural s, March 2019.

22 DAIRY MARKET NEWS, MARCH 25 29, VOLUME 86 REPORT 13 Market Summary and Utilization Report, February 2019 Highlights: During February 2019, 12.5 billion pounds of milk were received from Federally pooled producers, 9.2 percent higher than in February Regulated handlers pooled 3.5 billion pounds of producer milk as Class I, up 11.2 percent compared to the previous year, primarily due to the additional Class I milk pooled by the new California Federal Milk Marketing area. Class I utilization decreased from last year in 7 of the 11 Federal Milk Order Marketing areas. The all-market average Class utilization percentages were: Class I = 28%, Class II = 9%, Class III = 53%, and Class IV = 9%. The weighted average statistical uniform price was $15.58 per cwt, up $0.08 from last month and up $1.24 from February Federal Milk Order Marketing Area 1 Order Number Utilization of Producer Milk Receipts of Producer Milk in Class I Change from Change from Total Total Prev. Year Prev. Year (million lbs) (percent) (million lbs) (percent) Northeast (Boston) 001 2, Appalachian (Charlotte) Florida (Tampa) Southeast (Atlanta) Upper Midwest (Chicago) 030 2, Central (Kansas City) 032 1, Mideast (Cleveland) 033 1, California (Los Angeles) ,830.1 N/A N/A Pacific Northwest (Seattle) Southwest (Dallas) 126 1, Arizona (Phoenix) All Market Total or Average 2 12, , N/A - Not available, California Federal Milk Order began operating in November Each name in parentheses is the major city in the principal pricing point of the market. 2 Averages are the weighted average percent change. 3 The California Federal Milk Order became effective November 1, Percent changes from previous year include the addition of the California Federal Milk Order. The percent changes excluding California Federal Milk Order data from 2019 would be and -2.1 respectively. Federal Milk Order Marketing Area 1 Order Number Utilization of Producer Milk in All Classes 2 Class I Class II Class III Class IV Uniform 3 (percent) 2 ($ per cwt) 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 Total or Average Each name in parentheses is the major city in the principal pricing point of the market. 2 Totals may not add to 100 percent due to rounding. Averages are weighted averages. 3 Statistical uniform prices for component pricing orders (Class III price plus producer price differential). For other orders, uniform skim milk price times plus uniform butterfat price times The California Federal Milk Order became effective November 1, 2018.

23 DAIRY MARKET NEWS, MARCH 25-29, G1- VOLUME 86, REPORT 13 1,000 MT 3,200 3,000 2,800 2,600 2,400 2,200 2,000 1,800 1,600 1,400 1,200 1, Monthly New Zealand Milk Production Jan Feb Mar Apr May Jun July Aug Sept Oct Nov Dec DATA SOURCE, DCANZ; GRAPH, USDA, AMS, DMN MILLION LITERS Monthly Austrailian Milk Production Jan Feb Mar Apr May Jun July Aug Sept Oct Nov Dec DATA SOURCE, DAIRY AUSTRALIA LTD.; GRAPH, USDA, AMS, DMN

24 DAIRY MARKET NEWS, MARCH 25-29, G2- VOLUME 86, REPORT 13 MILLION LITERS 2400 Monthly Brazil Milk Production Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec DATA SOURCE,IBGE; GRAPH, USDA, AMS, DMN MILLION LITERS Monthly EU-28 Milk Production Jan Feb Mar Abr May Jun Jul Ago Sep Oct Nov Dec DATA SOURCE, EUROSTAT.; GRAPH, USDA, AMS, DMN

25 Dairy Market News Branch Agricultural Marketing Service National Retail Report-Dairy Websites: and Volume 86- Number 13 Issued Weekly Friday, March 29, 2019 Advertised s for Dairy Products at Major Retail Supermarket Outlets ending during the period of 03/29/2019 to 04/04/2019 The most advertised product/category this week is conventional ice cream in oz. containers. Ad numbers increased 11 percent. The weighted average advertised price, $3.08, increased 16 cents from last week. Ad numbers for conventional cream cheese in 8 oz. packages decreased 32 percent. The weighted average advertised price, $1.60, is down 37 cents. The national weighted average advertised price for conventional milk half gallons is $1.55, compared to $4.33 for organic milk half gallons, an organic price premium of $2.78. Conventional half gallon milk ad numbers decreased 87 percent. Organic half gallon milk ad numbers decreased 67 percent. There are nearly three times more ads for organic half gallons than conventional half gallons. Conventional cheese ad numbers decreased 29 percent. The weighted average price for conventional 8 oz shred cheese is $2.14, down 8 cents from last week. The weighted average price for 8 oz block cheese is $2.09, down 24 cents. There are no ads for organic cheese. Conventional yogurt ad numbers decreased 26 percent. Organic yogurt ads increased more than fivefold but remain a small percentage of conventional yogurt ad numbers. The weighted average advertised price for conventional yogurt in 4 to 6 oz. containers is $0.52, up 3 cents from last week. The weighted average price for organic yogurt in 4 to 6 oz. containers, $0.87, results in a 35-cent organic price premium. Top 5 Commodities Featured This Week 28K 03/29/ /22/ /15/ K with Ads 20K 16K 12K 8K 4K 0K Cheese Yogurt Ice cream Sour cream Cream cheese 1 -- Dairy Market News surveys nearly 150 retailers, comprising over 23,000 individual stores, with online weekly advertised features.

26 National Retail Report - Dairy Vol 86 - No. 13 Friday, March 29, Page 2 Percentage of Total Conventional Ads by Commodity Butter, 4% Yogurt, 21% Cheese, 27% Sour cream, 6% Milk, 1% Ice cream, 14% Cottage cheese, 4% Cream cheese, 6% Flavored milk, 2% Percentage of Total Organic Ads by Commodity Butter, 14% Yogurt, 27% Milk, 59% Wtd Avg - Simple weighted average

27 National Retail Report - Dairy Vol 86 - No. 13 Friday, March 29, 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 gallon Sour cream 16 oz Yogurt Greek 4-6 oz Yogurt Greek 32 oz Yogurt Yogurt 4-6 oz Wtd Avg - Simple weighted average

28 National Retail Report - Dairy Vol 86 - No. 13 Friday, March 29, 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 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 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 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 2 # block Cheese Natural Varieties 8 oz shred Cottage cheese 16 oz Cream cheese 8 oz Ice cream 48-64oz Sour cream 16 oz Yogurt Greek 4-6 oz Yogurt Yogurt 4-6 oz NATIONAL -- ORGANIC DAIRY PRODUCTS Wtd Avg - Simple weighted average

29 National Retail Report - Dairy Vol 86 - No. 13 Friday, March 29, 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 Milk All fat tests half gallon Milk All fat tests gallon Milk All fat tests 8 oz UHT Sour cream 16 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 # Milk All fat tests half gallon Milk All fat tests gallon Milk All fat tests 8 oz UHT Yogurt Greek 32 oz 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 Milk All fat tests half gallon Wtd Avg - Simple weighted average

30 National Retail Report - Dairy Vol 86 - No. 13 Friday, March 29, Page 6 ALASKA U.S. HAWAII U.S. Commodity Type Pack Size with Ads Wtd Avg with Ads Wtd Avg Milk All fat tests half gallon As used in this report, regions include the following states: REGIONAL DEFINITIONS 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

31 Dairy Market News United States Department of Agriculture Agricultural Marketing Service Dairy Programs Market Information Branch Volume 86, Report 13 March 29, 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 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