DAIRY MARKET NEWS WEEK OF JUNE 25-29, 2018

Transcription

1 DAIRY MARKET NEWS WEEK OF JUNE 25-29, 2018 VOLUME 85, REPORT 26 CME GROUP CASH MARKETS (6/29) BUTTER: Grade AA closed at $ The weekly average for Grade AA is $ (-.0460). CHEESE: Barrels closed at $ and 40# blocks at $ The weekly average for barrels is $ (-.0435) and blocks, $ (-.0380). NONFAT DRY MILK: Grade A closed at $ The weekly average for Grade A is $.7465 (-.0160). DRY WHEY: Extra grade dry whey closed at $ The weekly average for dry whey is $.4025 (+.0080). BUTTER HIGHLIGHTS: In general, throughout the country, the demand for butter varies from steady to weak as summer heat increases. Cream volumes remain available for butter churning even during the peak of ice cream making. However, in the East, the demand for cream is strong and is reducing churning production schedules in some processing plants. Conversely, in the west region, some manufacturers are willing to sell off some cream spot loads to ice cream makers in lieu of making butter. Nationwide, butter stocks are steady to building. In fact, as of May 31, 2018, butter stocks reached million pounds, an increase of 8 percent compared to last year, according to the most recent NASS Cold Storage report. The CME Group cash price for Grade AA butter is $2.2675, down $ compared to last Friday s price, $ CHEESE HIGHLIGHTS: The current cheese market conditions have market participants uncertain where cheese prices and demand will go. The overall market tone is unsettled due to three main reasons: trade concerns, cold storage data and inconsistent barrel demand. A few contacts report that some overseas customers are cancelling contractual orders, forcing sellers to adjust their prices downward to maintain current contracts. Cheese demand is sluggish overall except for Italian cheeses, which are meeting seasonal expectation. Cheese production is strong as cheese vats take in near to capacity milk loads in an attempt to manage heavy milk supplies. Spot milk load prices remain discounted at $3 to $4 under Class. Some cheesemakers have shifted production into other varieties, such as barrels-to-blocks and Italian cheeses, to prevent increasing supplies. The CME Group Product Highlights/CME/DMN at a Glance 1 Weekly CME Activity/Butter Markets/NDPSR 2 Cheese Markets 3 Fluid Milk and Cream 4 Nonfat Dry Milk/Dry Buttermilk/Dry Whole Milk 5 Dry Whey/WPC 34%/Lactose/Casein 6 DAIRY MARKET NEWS AT A GLANCE TABLE OF CONTENTS U.S. Dairy Cow Slaughter / Class Milk s 7 Organic Dairy Market News 8 May Cold Storage 9 May Agricultural Highlights 10 March Mailbox s 11 May Marketing and Utilization Summary 12 closing price for barrels is $1.3900, compared to last Friday s closing price of $ The closing price for blocks is $1.5550, compared to last Friday s closing price of $ FLUID MILK: Milk output is fairly heavy in the Northeast, Midwest and Mountain states. However, in some of the regions areas, milk production is dropping off some as warmer temperatures emerge. Mid-Atlantic and California milk production is generally flat. Milk production in the Southeast region, Arizona, Florida and New Mexico states is declining as hotter weather contributes to a slowdown in production levels. Class I sales in the Northeast are a tad lower as some facilities canceled milk loads. Midwest milk bottlers are slow to receive loads with schools on break. Fluid demand increased in California due to the upcoming holiday. Class I sales in some Southeastern and Western areas are steady to flat and there are reports of milk supplies being in balance with current demand. Condensed skim supplies are available to meet customers needs. Some ice cream manufacturers are receiving some loads, while the majority is clearing to Class IV/4a production. The cream market is steady and stable as many ice cream and frozen confection mix plants are competing for available supplies. Cream multiples for all Classes, are in the East, in the Midwest and in the West. DRY PRODUCTS: Low/medium heat nonfat dry milk (NDM) prices shifted down this week in uncertain markets. Condensed skim continues to own the lion s share of dryer time, as supplies are already plentiful. Market bears, including, but not limited to, Chinese tariffs and cross border trade issues, are continuing to keep the pressure on. Across the nation, light spot trading continued for dry buttermilk powders. As ice cream production is in full swing, manufacturers are seeking out condensed varieties. The market tone for dry buttermilk is firm to lower as trading activities are scarce in some cash markets. Dry whole milk prices were also steady this week, as U.S. demand is hovering just above inventories. That said, drying and inventories are centered around contractual fulfillments. Mostly prices on dry whey held steady, while range prices shifted upward. Dry whey inventories -CONTINUED ON PAGE 1A- June Retail s for Conventional and Organic Milk 13 Dairy Graphs G1 National Retail Report Dairy Dairy Market News Contacts CME GROUP CASH TRADING COMMODITY MONDAY TUESDAY WEDNESDAY THURSDAY FRIDAY :: WEEKLY :: WEEKLY JUN 25 JUN 26 JUN 27 JUN 28 JUN 29 :: CHANGE* :: AVERAGE# CHEESE BARRELS $ (-.0800) $ (N.C.) $ (+.0500) $ (+.0800) $ :: :: $ (+.0550) :: (+.1050) :: (-.0435) 40# BLOCKS $ $ $ $ $ :: :: $ (-.0400) (+.0100) (+.0250) (+.0275) (+.0425) :: (+.0650) :: (-.0380) NONFAT DRY MILK GRADE A $ $ $ $ $ :: :: $.7465 (-.0250) (+.0100) (+.0050) (-.0050) (N.C.) :: (-.0150) :: (-.0160) BUTTER GRADE AA $ (-.0350) $ (-.0100) $ (+.0075) $ (-.0025) $ :: :: $ (+.0175) :: (-.0225) :: (-.0460) DRY WHEY EXTRA GRADE $ (+.0025) $ (-.0100) $ (+.0125) $ (+.0100) $ :: :: $.4025 (-.0050) :: (+.0100) :: (+.0080) CHEESE: carload = 40,000 lbs., BUTTER: carlot = 40,000-43,000 lbs. *Sum of daily changes. # Weekly averages are simple averages of the daily closing prices for the calendar week. Computed by Dairy Market News for international purposes. This data is available on the Internet at

2 WEEK OF JUNE 25-29, 2018 DAIRY MARKET NEWS VOLUME 85, REPORT 26 -CONTINUED FROM PAGE 1- DAIRY MARKET NEWS AT A GLANCE remain tight in the U.S., however supplies are loosening up a little bit in a few parts of the West and East. International trading is a current concern for many market participants involved in the whey industry. Some brand specific spot purchases edged whey protein concentrate (WPC) 34% up on the top of the mostly series, yet prices were generally steady otherwise. Many buyers of WPC 34% are taking a wait and see approach as international trade issues develop. Lactose prices were steady to slightly higher. Contractual demand is keeping lactose inventories tight. Some lactose end users are reportedly looking outside the U.S. for supplies, even as lactose is not on the proposed tariff listing. Acid and rennet casein prices are steady this week. Some market participants are sourcing for casein, yet there is caution in confirming deals that deviate from current pricing due to uncertain price movements. Next week s GDT event may indicate near term market expectations. ORGANIC DAIRY MARKET NEWS (DMN): Federal Milk Market Order 1, in New England, reports utilization of types of organic milk by pool plants. During May 2018, organic whole milk utilization totaled 15.5 million pounds, down from 15.8 million pounds one year earlier. The May 2018 butterfat content was 3.29 percent, slightly up from 3.28 percent in Organic reduced fat milk utilization for May this year, nearly 23.0 million pounds, was up from 21.8 million pounds one year earlier. Butterfat this May was 1.29 percent, up from 1.28 percent the previous year. This week, total organic retail survey advertisements grew 47 percent across the country. As a percentage of total organic ads by commodity, milk ads are 53 percent, while organic yogurt ads are 25 percent. The remaining weekly percentages of advertised organic dairy products, collected from the DMN weekly retail survey, are presented in the pie chart below. Retail ads for organic milk as a whole dipped 5 percent, but organic yogurt rose 350 percent. There were no ads for organic cheese this week. Ad numbers grew in all regions, except Alaska and Hawaii, which did not report a change. The biggest jump in retail ads was in the Northwest at 175 percent, while the heaviest volumes of ads were noted in the Northeast and Southeast. NATIONAL RETAIL REPORT (DMN): Cream cheese posted the largest increase, in the conventional category, for an advertised dairy item as ad numbers increased 146 percent. The national weighted average advertised conventional milk price for half gallons is $2.86, while organic half gallon milk averaged $4.19. The weighted average price of conventional 8 ounce block cheese is $2.08, down 15 cents from last week. The weighted average advertised price for organic Greek yogurt in a 4-6 ounce container is $1.00, a penny above last week's price. Conventional Greek yogurt in 4-6 ounce containers averaged 95 cents, representing an organic premium of 5 cents. MAY COLD STORAGE (NASS): On May 31, U.S. cold storage holdings of butter totaled million pounds, up 10 percent from the previous month, and up 8 percent from May Natural American cheese holdings total million pounds, 3 percent higher than the previous month, but 1 percent less than May Total natural cheese stocks were billion pounds, 3 percent higher than last month and 6 percent more than May MAY AGRICULTURAL PRICES HIGHLIGHTS (NASS): The All Milk price received by farmers was $16.20 in May, down $.50 from May The alfalfa hay price was $ in May, up $32.00 from May The corn price was $3.67 in May, up $0.22 from May The soybean price was $9.84 in May, up $0.55 from May The milk-feed price ratio was 1.90 in May, down 0.30 from May The index of prices received by farmers for dairy products during the month of May 2018 was up 2 to Compared to May 2017, the index was down 2.5 points (-3.0 percent). The index of prices paid by farmers for commodities and services, interest, taxes, and wage rates in May 2018 was up 0.4 points to Compared with May 2017, the index was up 2.1 points (2.0 percent). MARCH MAILBOX PRICES (USDA, FMMO, & CDFA): In March 2018, mailbox milk prices for selected reporting areas in Federal milk orders averaged $15.04 per cwt, up $0.23 from the February 2018 average but down $2.27 per cwt from the March 2017 average. The component tests of producer milk in March 2018 were: butterfat, 3.90 percent; protein, 3.16 percent; and other solids, 5.76 percent. When compared to the previous month, the March mailbox prices increased in 14 of the Federal milk order reporting areas and decreased in 5 of the reporting areas. The Wisconsin reporting area reported the largest increase of $0.57 per cwt from the previous month while the Southern Missouri reporting area reported the largest decrease of $0.50 per cwt from the previous month. Averaged over all Federal milk order reporting areas, the March 2018 mailbox milk price increased an average of $0.10 per cwt. Mailbox prices in March 2018 ranged from $16.46 in the Florida reporting area to $13.21 in the New Mexico reporting area. MAY MARKETING AND UTILITZATION SUMMARY (USDA): During May, 11.8 billion pounds of milk were received from federally pooled producers. This volume of milk is 5.3 percent higher than the May 2017 volume. Regulated handlers pooled 3.3 billion pounds of producer milk as Class I products, down 2.4 percent when compared to the previous year. Class I utilization decreased from last year in 8 of the 10 Federal Milk Order Marketing areas. The all-market average Class utilization percentages were: Class I = 28 percent, Class II = 15 percent, Class III = 39 percent, and Class IV = 17 percent. The weighted average statistical uniform price was $15.75 per cwt, up $0.72 from last month but down $0.38 from last year. RETAIL PRICES FOR CONVENTIONAL AND ORGANIC MILK, JUNE 2018 (FMMO): A survey of retail prices conducted by the Federal Milk Market Order administrators found conventional whole milk prices for June 2018 average $3.27 per gallon. June organic whole milk prices average $3.93 per half gallon. In June, conventional reduced fat (2%) milk gallons average $3.19 and organic reduced fat (2%) milk half gallons average $ A-

3 DAIRY MARKET NEWS, JUNE 25-29, VOLUME 86, REPORT 26 MONDAY, JUNE 25, 2018 CHEESE -- SALES: 46 CARS BARRELS: $1.2050, $1.2100, $1.2125, $1.2150, $1.2175, $1.2250, $1.2325, $1.2350, $1.2475, $1.2500, $1.2525, $1.2600; 4 CARS 40 POUND BLOCKS: $1.4500; UNFILLED BIDS: 10 CARS BARRELS: $1.2000, $1.2050; 4 CARS 40 POUND BLOCKS: $1.3000; UNFILLED OFFERS: 2 CARS BARRELS: $1.2150; 4 CARS 40 POUND BLOCKS: $1.4700, $ NONFAT DRY MILK -- SALES: 6 CARS GRADE A: $0.7375, $0.7400, $0.7425, $0.7450, $0.7475; UNFILLED BIDS: 3 CARS GRADE A: $0.7000, $0.7200, $0.7375; UNFILLED OFFERS: 5 CARS GRADE A: $0.7400, $0.7500, $0.7525, $0.7850, $ BUTTER -- SALES: NONE; UNFILLED BIDS: 1 CAR GRADE $2.2000; UNFILLED OFFERS: 5 CARS GRADE AA: $2.2550, $2.2650, $2.2750, $2.2975, $ DRY WHEY -- SALES: NONE; UNFILLED BIDS: 1 CAR EXTRA $0.4000; UNFILLED OFFERS: NONE TUESDAY, JUNE 26, 2018 CHEESE -- SALES: 12 CARS BARRELS: $1.2050, $1.2075; 2 CARS 40 POUND BLOCKS: $1.4600; UNFILLED BIDS: 16 CARS BARRELS: $1.1800, $1.1900, $1.2000, $1.2025, $1.2050; 2 CARS 40 POUND BLOCKS: $1.4300; UNFILLED OFFERS: 4 CARS BARRELS: $1.2075, $1.2100; 4 CARS 40 POUND BLOCKS: $1.4800, $ NONFAT DRY MILK -- SALES: 6 CARS GRADE A: $0.7375, $0.7400, $0.7425, $0.7450, $0.7475; UNFILLED BIDS: 6 CARS GRADE A: $0.7325, $0.7400, $0.7425, $0.7450, $0.7475; UNFILLED OFFERS: 3 CARS GRADE A: $0.7500, $0.7775, $ BUTTER -- SALES: 5 CARS GRADE AA: $2.2400, $2.2425, $2.2450, $2.2475; UNFILLED BIDS: 5 CARS GRADE AA: $2.1900, $2.1925, $2.2050, $2.2350, $2.2400; UNFILLED OFFERS: 2 CARS GRADE AA: $2.2475, $ DRY WHEY -- SALES: 1 CAR EXTRA $0.3900; UNFILLED BIDS: 1 CAR EXTRA $0.3600; UNFILLED OFFERS: 1 CAR EXTRA $ WEDNESDAY, JUNE 27, 2018 CHEESE -- SALES: 50 CARS BARRELS: $1.2500, $1.2550, $1.2575, $1.2600, $1.2675, $1.2700, $1.2725, $1.2775, $1.2800, $1.2825, $1.2900, $1.2925, $1.2950, $1.2975; UNFILLED BIDS: 20 CARS BARRELS: $1.2100, $1.2200, $1.2250, $1.2400, $1.2500; 6 CARS 40 POUND BLOCKS: $1.4600, $1.4850; UNFILLED OFFERS: 4 CARS BARRELS: $1.2900, $1.3000; 2 CARS 40 POUND BLOCKS: $ NONFAT DRY MILK -- SALES: 4 CARS GRADE A: $0.7475, $0.7500, $0.7525; UNFILLED BIDS: 3 CARS GRADE A: $0.7475, $0.7500, $0.7525; UNFILLED OFFERS: 1 CAR GRADE $ BUTTER -- SALES: 10 CARS GRADE AA: $2.2525, $2.2550, $2.2600, $2.2675, $2.2700, $2.2725, $2.2750; UNFILLED BIDS: 3 CARS GRADE AA: $2.2325, $2.2350; UNFILLED OFFERS: 4 CARS GRADE AA: $2.2600, $2.2625, $2.2700, $ DRY WHEY -- SALES: 1 CAR EXTRA $0.3900; UNFILLED BIDS: 2 CARS EXTRA $0.4025; UNFILLED OFFERS: NONE THURSDAY, JUNE 28, 2018 CHEESE -- SALES: 26 CARS BARRELS: $1.2650, $1.2750, $1.2850, $1.2950, $1.3075, $1.3100, $1.3200, $1.3250, $1.3300, $1.3350; UNFILLED BIDS: 22 CARS BARRELS: $1.2300, $1.2325, $1.2400, $1.2450, $1.2500, $1.2550, $1.2700, $1.3275; 6 CARS 40 POUND BLOCKS: $1.4900, $1.5000, $1.5125; UNFILLED OFFERS: 2 CARS BARRELS: $1.3450; 2 CARS 40 POUND BLOCKS: $ NONFAT DRY MILK -- SALES: 2 CARS GRADE $0.7475; UNFILLED BIDS: 2 CARS GRADE A: $0.7450, $0.7475; UNFILLED OFFERS: 2 CARS GRADE A: $0.7500, $ BUTTER -- SALES: 5 CARS GRADE AA: $2.2400, $2.2425, $2.2450, $2.2525; UNFILLED BIDS: 3 CARS GRADE AA: $2.2000, $2.2425, $2.2450; UNFILLED OFFERS: 1 CAR GRADE $ DRY WHEY -- SALES: NONE; UNFILLED BIDS: 1 CAR EXTRA $0.4125; UNFILLED OFFERS: NONE FRIDAY, JUNE 29, 2018 CHEESE -- SALES: 26 CARS BARRELS: $1.3350, $1.3450, $1.3550, $1.3600, $1.3875, $1.3900, $1.3925, $1.3975, $1.4000; 4 CARS 40 POUND BLOCKS: $1.5450, $1.5550; UNFILLED BIDS: 22 CARS BARRELS: $1.3900; 6 CARS 40 POUND BLOCKS: $1.5325, $1.5350, $1.5425; UNFILLED OFFERS: 6 CARS BARRELS: $1.3950, $1.4000, $ NONFAT DRY MILK -- SALES: NONE; UNFILLED BIDS: 3 CARS GRADE A: $0.7300, $0.7400, $0.7425; UNFILLED OFFERS: 2 CARS GRADE A: $0.7600, $ BUTTER -- SALES: 6 CARS GRADE AA: $2.2675, $2.2700; UNFILLED BIDS: 5 CARS GRADE AA: $2.2500, $2.2525, $2.2550, $2.2600, $2.2675; UNFILLED OFFERS: 1 CAR GRADE $ DRY WHEY -- SALES: NONE; UNFILLED BIDS: NONE; UNFILLED OFFERS: 2 CARS EXTRA GRADE: $0.4075, $ BUTTER MARKETS NORTHEAST Demand for cream is strong and sharply reduces churning schedules at a few plants, as the East region butter production rate ranges moderate to light. Buying interest is seasonally steady. With current schedules and inventories on hand, butter stocks are sufficient for existing and near-term demand. Overall, inventories are building. The bulk price for domestic sales is 5-8 cents over the market of the CME Group, with various time frames and averages used. On Tuesday, at the CME Group, butter closed at $ as prices moved $ under the previous Tuesday s close. The butter market undertone is unsettled as prices weaken. s for: Eastern U.S., All First Sales, F.O.B., Grade AA, Conventional, and Edible Butter Bulk Basis Pricing - 80% Butterfat $/LB: CENTRAL Centrally located butter producers, like a number of processors in the dairy industry, are concerned about recent market trends. That said, there is still confidence in the foundation of the butter market, and some analysts maintain that butter may be near or at its basement. Some contacts point out a steady to slowing demand. Cream remains available even during the ice cream manufacturing peak. Class IV cream prices have picked up slightly at the top end, while region specific readily available cream loads are keeping the low end prices anchored. DMN National Retail Report-Dairy for June noted of butter is $3.79, $0.31 above one week ago and $0.63 higher than one year ago. The weighted average regional price in South Central was $3.08. s for: Central U.S., All First Sales, F.O.B., Grade AA, Conventional, and Edible Butter Bulk Basis Pricing - 80% Butterfat $/LB: Secondary Sourced Information: The NASS Cold Storage report noted U.S. butter stocks as of May 31, 2018 were million pounds, an 8 percent increase from last year and up 10 percent from last month. Bulk stocks in all warehouses were million pounds last year at this time. WESTERN Western contacts say butter demand has softened as the summer heat is on the rise. Cream is readily available. However, with higher multiples, some manufacturers are willing to sell off the milkfat to ice cream manufacturers in lieu of making butter. By slowing the churns, butter processors hope to stem the growth of inventories. Butter stocks have grown considerably, as indicated by the recent Cold Storage report. Ample amounts of inexpensive cream through the CONTINUED ON PAGE 2A NATIONAL DAIRY PRODUCTS SALES REPORT U.S. AVERAGES AND TOTAL POUNDS WEEK ENDING June 23, 2018 BUTTER CHEESE 40# BLOCKS CHEESE BARRELS 38% MOISTURE ,704, ,458, ,524,345 DRY WHEY ,747,366 NDM ,558,970 Further data and revisions may be found on the internet at:

4 DAIRY MARKET NEWS, JUNE 25-29, A- VOLUME 86, REPORT 26 CONTINUED FROM PAGE 2 supplies prior to fall baking led to strong production. Manufacturers are now working to find a good balance between production and the current and future butter needs. 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 $2.2525, down $.0350 from a week ago. National Retail Report Dairy Butter Summary Advertised s at Major Retail Supermarket Outlets ending during the period of 06/22/2018 to 06/28/2018 Butter 1# Weighted Average National This Period Last Week Last Year Organic n.a. $3.99 $4.82 Conventional $3.79 $3.48 $3.16 Regional (Conventional) Wtd. Ave. Low High ALASKA $5.49 $5.49 $5.49 HAWAII $4.69 $4.69 $4.69 MIDWEST n.a. n.a. n.a. NORTHEAST $4.17 $3.99 $4.49 NORTHWEST $2.81 $2.49 $2.99 SOUTH CENTRAL $3.08 $2.79 $3.50 SOUTHEAST $3.73 $2.69 $4.99 SOUTHWEST $3.92 $2.49 $4.49 Cold Storage Butter Summary Released June 22, 2018, by the National Agricultural Statistics Service (NASS), Agricultural Statistics Board, United States Department of Agriculture (USDA). Stocks in all Warehouses (1,000 pounds) Butter 5/31/17 4/30/18 5/31/18 Butter Stocks 313, , ,807 as a percent of May Records (1000 pounds) Year Record High 712, Record Low 7,

5 DAIRY MARKET NEWS, JUNE 25-29, VOLUME 86, REPORT 26 NORTHEAST Milk production in the Northeast is mixed. A few areas are seeing milk volumes a bit lower coming off the farms as warmer temperatures entered the region. In general, milk is still heavy and many cheese plants are taking in near to capacity milk loads. Cheese production is fairly strong. Cheddar, provolone and mozzarella cheese production schedules are full as milk is available for processing needs. The demand for cheddar and Italian cheeses is currently sluggish. Current cheese market conditions have many market participants concerned about where cheese prices and demand will go. Spot market prices for cheddar barrel and blocks are currently decreasing. The process cheese price declined $ Moreover, the wholesale prices for cheddar and Muenster decreased $ The Grade A Swiss price is steady. WHOLESALE SELLING PRICES: DELIVERED DOLLARS PER POUND(MIXED LOTS ( POUNDS)) Cheddar 40 pound Block Muenster Process American 5 pound Sliced Swiss pound Cuts CENTRAL On Tuesday, CME cheese barrel prices hit their lowest point since July 30, The overall cheese market tone is undoubtedly shaken by a laundry list of bears: trade concerns, cold storage data and recently inconsistent barrel demand to name a few. Some Midwestern process cheesemakers have shifted production into other varieties in an attempt to limit supplies and focus on better selling/seasonal items. Mozzarella and provolone makers are anxious regarding the markets, but say demand is meeting seasonal expectations nonetheless. Milk into cheese production remains discounted, between $3 to $4 under Class. Cheese plant managers expect discounts to remain into next week, ahead of Independence Day. However, as temperatures rise throughout the country, some are expecting volumes to wane following the holiday week. The DMN National Retail Report- Dairy from June shows that Midwest ads for 8 ounce shred cheese have a weighted average advertised price of $1.99, 33 cents below the national average. Midwest prices range from $0.99-$2.79. One year ago, the national price was $2.31. For 8 ounce blocks, the Midwest average price is $2.21, 2 cents below the national average price. Midwest ads are priced from $0.99-$3.50. Last year, the national price was $2.41. Midwestern wholesale prices are unchanged for Swiss Cuts, down $.1925 for process and down $.0900 for other types. WISCONSIN WHOLESALE SELLING PRICES: DELIVERED DOLLARS PER POUND(MIXED LOTS ( POUNDS)) Blue 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 Secondary Sourced Information: According to the NASS Cold Storage report, U.S. stocks of cheese (total natural) at the end of May 2018 were billion pounds, 6 percent above last year and up 3 percent from April 30, American stocks were 1 percent lower, other natural stocks were 18 percent more, and Swiss stocks were 20 percent higher than last year. In the East North Central region (Wisconsin, Illinois, Michigan, Indiana and Ohio), American cheese stocks at the end of May 2018 were CHEESE MARKETS 4 percent lower than last year, but up 3 percent from last month. Other cheese stocks in the East North Central region were 22 percent higher than May 2017 and 2 percent higher than last month. In the West North Central region (Minnesota, Iowa, Missouri, Kansas, Nebraska, South Dakota and North Dakota), American cheese stocks at the end of May 2018 were 4 percent lower than last year, but 6 percent higher than last month. Other cheese stocks in the West North Central region were 6 percent lower than last year and 1 percent lower than last month. WESTERN In the West, international cheese demand has started to decrease. With current trade issues, market participants report that some overseas customers are cancelling their contractual orders. Some U.S. cheese sellers say that they are adjusting their prices downward to maintain current contracts. On the CME, barrel cheese sale activities increased since last week while block cheese trades remained sluggish. Stocks, particularly for barrel cheese are plentiful. As the result, several cheese processors are shifting their output from barrels to blocks as a way to prevent barrel inventories from increasing too without switching products. The spread between the prices of blocks and barrels on the CME has widened above twenty cents. In the West, wholesale prices were down $.1925 for process and down $.0900 for cheddar block, cuts and Monterey Jack. Swiss cut wholesale prices are unchanged. 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 Secondary Sourced Information: In CME Group trading Wednesday, barrels closed at $1.2550, down $.0375 from a week ago and blocks closed at $1.4850, down $ COLD STORAGE WEEKLY COLD STORAGE HOLDINGS - SELECTED STORAGE CENTERS IN THOUSAND POUNDS - INCLUDING GOVERNMENT STOCKS BUTTER : CHEESE 06/25/ : /01/ : CHANGE 2353 : % CHANGE 5 : -7 FOREIGN Cheese export sales from Germany to Southern Europe are lively. Mozzarella is in great demand. Cheese stocks remained at lower levels. In Germany, production is ongoing. However, due to a decline in milk components and milk volumes delivered, the likelihood for an expansion of current production to meet increasing demand is limited. s for sliced cheese continue to be firm. For July contracts negotiations, cheese sellers are demanding and enforcing higher prices. In the U.S., the prices for wholesale blue, gorgonzola, parmesan Italy, and Romano decreased $ All other prices are unchanged compared to the previous week. CONTINUED ON PAGE 3A

6 DAIRY MARKET NEWS, JUNE 25-29, A- VOLUME 86, REPORT 26 CONTINUED FROM PAGE 3 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. National Retail Report Dairy Cheese Summary Advertised s at Major Retail Supermarket Outlets ending during the period of 6/22/2018 to 6/28/2018 Weighted Average Cheese 8 oz. Blocks This Period Last Week Last Year Organic n.a. $3.95 $3.81 Conventional $2.23 $2.23 $2.41 Regional (Conventional) Wtd. Ave. Low High ALASKA $2.50 $2.50 $2.50 HAWAII $2.50 $2.50 $2.50 MIDWEST $2.21 $0.99 $3.50 NORTHEAST $2.25 $1.88 $3.50 NORTHWEST $1.67 $1.67 $1.67 SOUTH CENTRAL $0.99 $0.99 $0.99 SOUTHEAST $2.57 $0.99 $3.19 SOUTHWEST $2.03 $0.99 $3.00 Weighted Average Cheese 8 oz. Shred This Period Last Week Last Year Organic n.a. n.a. n.a. Conventional $2.32 $2.26 $2.31 Regional (Conventional) Wtd. Ave. Low High ALASKA $3.35 $2.50 $3.99 HAWAII $2.72 $2.50 $3.00 MIDWEST $1.99 $0.99 $2.79 NORTHEAST $2.10 $1.88 $3.00 NORTHWEST $3.21 $0.99 $3.99 SOUTH CENTRAL $2.10 $1.69 $3.79 SOUTHEAST $2.51 $0.99 $3.49 SOUTHWEST $2.35 $1.50 $3.49 CHEESE MARKETS Cold Storage Cheese Summary Released June 22, 2018, by the National Agricultural Statistics Service (NASS), Agricultural Statistics Board, United States Department of Agriculture (USDA). 5/31/18 Stocks in all Warehouses (1,000 pounds) as a percent of Natural Cheese 5/31/17 4/30/18 5/31/18 5/31/17 4/30/18 Total natural cheese 1,308,929 1,345,289 1,385, American, total 816, , , New England 67,274 66,885 66, Middle Atlantic 53,777 67,007 71, East North Central 353, , , West North Central 137, , , South Atlantic 1, East South Central 14,053 17,263 19, West South Central 18,364 8,582 9, Mountain 55,977 60,573 61, Pacific 114, , , Swiss 26,242 29,193 31, Other 466, , , New England 724 1, Middle Atlantic 18,561 15,414 17, East North Central 306, , , West North Central 49,409 46,665 46, South Atlantic 29,809 28,654 28, East South Central 14,537 17,026 17, West South Central 1,449 2,335 2, Mountain 3,421 3,533 2, Pacific 42,304 55,019 58, Record High Record Low May Records (1000 pounds) Year (1000 pounds) Year American 1,103, , Swiss 33, Other 549, , Total Natural Cheese 1,385, ,

7 DAIRY MARKET NEWS, JUNE 25-29, VOLUME 85, REPORT 26 FLUID MILK AND CREAM EAST Milk off the farms in the Northeast is fairly heavy to dropping off a bit as warm temperatures hovered over the area. Manufacturers are busy as milk supplies are available. Class I sales are steady to a tad lower as some bottling facilities are cancelling milk loads. Mid- Atlantic milk production is fairly level. Some operations do not have enough milk for processing needs, although other plants are taking milk loads at capacity. Class I sales are steady, while Class II and IV production orders are moderate. Southeast milk output is decreased as the humid weather has an impact on current cow comfort. The majority of milk loads are clearing to bottling orders. In Florida, milk production is declining, but loads are being sourced to fill Southeastern processing needs. Class I sales are flat compared to recent weeks. The cream market is stable as multiples range 1.25 to 1.35, as the majority of sales are taking place in the low to mid 1.30s. Some manufacturers report the demand for cream is strong as customers are taking their regular contracts and looking for extra spot loads. Many industry contacts report they are able to find and receive cream loads they currently require. The condensed skim market is fairly unchanged as dairy contacts report inventories are outweighing current demand. Eastern supplies are being transported to other regions at a discount. 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: With the announcement of July s Advanced s, the Class II Nonfat Solids price increased $0.0245, compared to the previous month. Market participants use the announcement of advanced prices for spot and monthly formula pricing structures. MIDWEST Although milk volumes are steady to slightly down, fluid milk and cream remain readily available for various uses. Milk bottlers are slow to take on milk with schools on break. Additionally, Class III plant managers are taking a step back from the spot milk market as uncertainty in cheese/whey markets is crimping production. A number of both milk handlers and processors are looking ahead of next week. With a mid-week holiday, and several manufacturers shutting down for an extended weekend, milk and cream discounts are expected for week 27. However, as summer temperature increases are forecasted from the southern Central U.S. into the Upper Midwest, some intake facilities are preparing for milk production ebbs and increasing milk costs in week 28. Hard pack ice cream manufacturing is peaking, and analysts suggest as early as next week there will be a marked slowdown. Class II cream prices edged up on the bottom end, while remaining steady on the top. Midwestern U.S., F.O.B. Cream Multiples - All Classes: Class II; $/LB Butterfat: Multiples - Class II: WEST In California, fluid milk demand increased this week, mostly due to the upcoming holiday. Some reports say that several processors were running slow last week and are now catching up with their processing duties. Class 2 sales going into ice cream manufacturing plants increased. Milk production is generally flat. However, milk components are dwindling. Arizona milk output is downward trending. Hotter weather in the triple digits during the day is contributing to a slowdown in production level. Nonetheless, fluid milk volumes are enough to meet all current needs. Class I sales remain steady. Milk production is generally past the peak season in New Mexico. Plant managers are able to manage milk loads without any major issue. This week, output has declined. Nonetheless, supplies are in balance with current demand. Class I demand is unchanged from the previous week, while Class II sales have surged in view of the looming holiday. Intakes from Class III have also moved up. Pacific Northwest milk production is following seasonal summer trends. Favorable weather continues to support cow comfort and strong milk production. Manufacturers have plenty of milk to fill most processing needs. A few distressed loads are available in the region. Milk handlers are working to find homes for any extra load ahead of the Fourth of July holiday to keep the number of surplus loads to a minimum. Milk production in the mountain states of Idaho, Utah and Colorado is strong. In the southern part of the region, there has been some hot weather which is suppressing milk production somewhat. However, in the north, warm days coupled with cool nights are allowing cows to recharge. Milk production there is strong and building ahead of peak production to come in the next few weeks. There is plenty of milk available to manufacturers. A few distressed loads are available at $4 to $6 under Class within the region. Most of the milk is staying in state, but a few loads are getting pushed into neighboring states with the added pain of haul charges. Industry contacts say although they have not heard of any discarded milk, they expect there could be some abandoned next week as loads get backed up from the Fourth of July holiday. Farmers are busy with the second hay cutting, and with favorable weather and ample water supplies, industry contacts expect the region to put up good quality feedstocks for dairy cows. Condensed skim is available to meet all buyers requests in the West. Ice cream manufacturers are taking some loads while most of the remaining loads are clearing to Class IV/4a production. Cream demand is good in the West. Ice cream, frozen confection mixes and butter plants are competing for available supplies. Some butter churn operators are opting to sell cream instead of making butter. Cream multiples for all Classes are steady and range from 1.07 to Western U.S., F.O.B. Cream Multiples - All Classes: Secondary Sourced Information: According to California Department of Food and Agriculture, May 2018 pool receipts of milk in the state total 3.32 billion pounds. This is 0.1 percent lower compared to the same month a year ago. From January through May 2018, receipts are 0.9 percent higher from the comparable period in The Value at Test price is $15.53, $.51 higher than the previous month, but $.37 below a year ago. The percentage of receipts used in Class 1 products is percent. The May quota price is $15.93 and the over quota price is $ These prices are $.57 above last month, but $.53 lower from a year ago. -CONTINUED ON PAGE 4A-

8 DAIRY MARKET NEWS, JUNE 25-29, A- VOLUME 85, REPORT 26 -CONTINUED FROM PAGE 4- National Retail Report Dairy Fluid Milk Summary Advertised s at Major Retail Supermarket Outlets ending during the period of 6/22/2018 to 6/28/2018 Half Gallon, All Fat Tests Weighted Average This Period Last Week Last Year Organic $3.39 $4.02 $3.98 Conventional $1.71 $2.01 $1.50 Regional (Conventional) Wtd. Ave. Low High MIDWEST $1.49 $0.99 $1.99 NORTHEAST $1.99 $1.99 $1.99 NORTHWEST $0.99 $0.99 $0.99 SOUTH CENTRAL $1.95 $1.89 $1.99 SOUTHEAST $2.50 $2.50 $2.50 SOUTHWEST $1.80 $1.49 $2.99 Regional (Organic) Wtd. Ave. Low High MIDWEST $3.00 $3.00 $3.00 NORTHEAST $3.49 $3.00 $4.99 SOUTH CENTRAL $3.00 $3.00 $3.00 SOUTHEAST $3.30 $3.00 $3.99 SOUTHWEST $4.99 $4.99 $4.99 FLUID MILK AND CREAM

9 DAIRY MARKET NEWS, JUNE 25-29, VOLUME 85, REPORT 26 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: Central region low/medium heat nonfat dry milk (NDM) prices decreased on both the range and mostly price series. Spot market activity picked up following what has generally been a slow trading month. Buyers, however, are aware of numerous market bears, particularly where spot prices have shifted on the CME Group exchange. A growing number of Central region spot transactions have found a comfort zone in the high $.70s to $.80. Undoubtedly, regional production continues heartily as condensed skim remains readily available. A growing number of contacts are hopeful that forecasted heatwaves will slow milk production in upcoming weeks. High heat NDM production is scarce, as dryers are pushing through low/ medium heat varieties. Therefore, spot markets have remained quiet and prices are unchanged. The NDM market tone is bearish. Contacts sentiments seem to point out that with every bullish step forward, bears are pushing milk powders two steps back. EAST: The Eastern low/medium heat NDM market is seeing the onset of weakness as prices fell in both the range and mostly series, ahead of the proposed tariff on exports. NDM production in most facilities is steady, but reports indicate milk receipts at some powder plants marginally declined. Producers' low/medium heat NDM stocks are building while the market sees no reason to buy too far ahead, as downward pressure gains momentum. Resale markets are seeing an uptick in activity as sellers hope to clear older inventory. Demand for high heat nonfat dry milk is strong from bakery operations, but aside from contracted volumes high heat is not easy to come by. Wednesday trading at the CME Group saw Grade A NDM close at $0.7525, down $ from a week ago. 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 This week, western low/medium heat nonfat dry milk (NDM) prices adjusted steady to lower. Meanwhile, future NDM contract values look to be relatively stable along Q3 and Q4. It is important to note that starting next week, July 6, 2018, China announced it will increase its import tariffs for some dairy products from the United States, including SMP among others. Therefore, several SMP manufacturers are losing orders from that country. Consequently, there is a lot of uncertainty in the domestic NDM market. This week, NDM sales have been slow as many local NDM buyers/end users are skeptical to extend coverage further than needed. Meanwhile, low/medium heat production is active while inventories are still at elevated levels. In fact, just in California, according to its state government, from January to May 2018, NDM production increased by 19 percent, compared to the same period, last year. High heat nonfat dry milk prices adjusted steady to lower, shadowing low/medium heat NDM cash values for this week. Production is irregular, based on contractual needs. However, inventories are becoming more obtainable in the spot market according to some buyers. 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: CALIFORNIA MANUFACTURING PLANTS - NONFAT DRY MILK WEEK ENDING PRICE TOTAL SALES June 22 $ ,069,496 June 15 $ ,296,259 s are weighted averages for Extra Grade and Grade A Nonfat Dry Milk, f.o.b. California manufacturing plants. s for both periods were influenced by effects of long-term contract sales. Compiled by Dairy Marketing Branch, California Department of Food and Agriculture. DRY BUTTERMILK - CENTRAL AND EAST CENTRAL: Dry buttermilk prices were unchanged on the last week of what has been a fairly quiet trading month. Some traders and brokers have suggested demand has dropped off in recent weeks. Ice cream producers, who are in peak production season, are primarily seeking out the condensed buttermilk option. Powder processors suggest dryer time is limited for anything but the large volumes of condensed skim flowing in. EAST: Buyers/sellers in dry buttermilk marketplaces are seeing mostly steady pricing. Trade activity is scare in cash markets. A few buyers are wary of vaulting back into the dry buttermilk market while current transactions reflect a buttermilk premium, due to limited availability. Dry buttermilk production is understated, as processors favor condensed skim scheduling over buttermilk, while those supplies remain seasonally heavy. Dry buttermilk inventories vary tight to adequate. s for: Eastern and Central U.S., All First Sales, F.O.B., Conventional, and Edible Buttermilk ; $/LB: DRY BUTTERMILK - WEST In the West, f.o.b. spot prices for dry buttermilk are unchanged from last week on light cash trading. The market remains on a firm undertone as requests are solid from several customers such as dry mix manufacturers and bakers, but supplies are reported as tight. Condensed buttermilk drying schedules are irregular in several balancing plants of the region as large condensed skim volumes continue clearing into NDM manufacturing. However, dry buttermilk inventories are in balance to cover contractual needs. s for: Western U.S., All First Sales, F.O.B., Conventional, and Edible Buttermilk ; $/LB: Mostly - ; $/LB: DRY WHOLE MILK - NATIONAL Free on board (f.o.b.) spot prices for national dry whole milk are unchanged. Cash sale trading activity is steady from last week. In general, the domestic demand is slightly above current supply on a firm market. Condensed whole milk drying schedules are irregular in most processing plants as dry whole milk output is mostly based on meeting contractual needs. s for: U.S., All First Sales, F.O.B., Conventional, and Edible Dry Whole Milk - 26% Butterfat; $/LB:

10 DAIRY MARKET NEWS, JUNE VOLUME 85, REPORT 26 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 increased on both ends of the range, while the mostly price series stayed steady. International trade disputes have caused a stir within the U.S. whey market and moreover the entire dairy industry. A few contacts report concern among whey exporters, as some orders are delayed due to push back from customers awaiting pending trade negotiation outcomes. As a result, to maintain international customers, some sellers are planning to split new trade costs or are looking for new trade markets altogether. Therefore, uncertainty in the market has caused buyers to observe the market instead of acquiring new stocks. However, some contacts report downgrade whey is getting cleared out. Whey inventories remain tight, but increasingly more available week to week. Animal feed whey prices decreased on the top of the range and remain steady on the bottom. The whey market tone is unsettled. s for: Central U.S., All First Sales, F.O.B., 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 spot market prices in the East have increased on the price range. Market participants are purchasing the majority of loads in the low to mid $0.30s as manufacturers are not offering spot loads at lower prices. Moreover, some buyers are purchasing spot sales at higher prices due to the strong demand for specific brands. With milk output heavy in the Northeast and cheese processing strong, overall whey powder production is active. Supplies are tight with reports from manufacturers communicating inventories are just starting to become a little more available than recently. The demand is fairly unchanged, as prices are firm and many individuals are willing to buy around the current price range. There are reports of concern regarding prices and supplies of U.S. dry whey in some international markets. Current market conditions are stable. s for: Eastern U.S., All First Sales, F.O.B., Extra Grade & Grade A, Conventional, and Edible Dry Whey - Non-Hygroscopic; $/LB: Secondary Sourced Information: The CME Group price for dry whey on Wednesday closed at $0.4025, up $ compared to the previous Wednesday. DRY WHEY - WEST In the West, f.o.b. prices for dry whey are up at the top of the range, but steady anywhere else. Several market players believe that U.S. prices are competitive in the international market. Therefore, they don t expect to see a lot of changes in international demand in response to the changes in trade regulations. However, some processors report that their sales have started to decline. With current uncertainties related to trade agreements, some international shipments have been cancelled. Many international buyers are not looking to extend coverage. Some are taking the wait and see approach until when the new tariffs become effective to get a clear sense of the market direction. There are also some beliefs that buyers might switch their purchases from dry whey to lactose if the new guideline on whey trading takes effect. Overall, the supplies of whey remain tight; however, it is loosening up a little bit in certain areas. More of the downgrade dry whey loads are clearing out of storage. Production is active. 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 - CENTRAL AND WEST s for whey protein concentrate 34% are mostly steady, but a few spot sales of favored brands pushed the top of the mostly price series higher. WPC 34% is notorious for having multiple market segments and those differences are again becoming prevalent. WPC 34% that meets infant formula requirements or that are favored brands are in short supply outside of contracts. Production is somewhat limited, and demand is strong. Manufacturers of this type of WPC 34% are often achieving higher price points. However, WPC 34% that is interchangeable with other protein sources are not able to achieve the strong prices. Demand has waned for this type of WPC 34%, especially as buyers take a wait and see approach to the developing trade issues. 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 - CENTRAL AND WEST The range of lactose prices is unchanged. However, the mostly price series slid higher. Manufacturers are in a transition period between Q2 and Q3. Some industry contacts are still trying to finalize Q3 business agreements. Demand has been strong and regular contract shipments are keeping inventories tight, enough so, that some manufacturers are juggling shipments to meet buyer needs. A few processors are already shipping Q3 business. Others are trying to catch up on Q2 shipments, some of which will need to be pushed into the next few months. Although lactose was not included as a part of the latest round of proposed tariffs, a few industry contacts suggest some end users are looking at alternative sources outside the U.S. While market fundamentals suggest firming, the developing trade issues are casting an ostensibly unsettled market tone across the whole dairy industry. s for: Central and Western U.S., Spot Sales And Up 3 Month Contracts, F.O.B., Conventional, and Edible Lactose - Non Pharmaceutical; $/LB: Mostly - Non Pharmaceutical; $/LB: CONTINUED ON PAGE 6A-

11 -6A- DAIRY MARKET NEWS, JUNE VOLUME 85, REPORT 26 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. -CONTINED FROM PAGE 6- CASEIN - NATIONAL Casein prices are steady. However, that is more a factor of caution, than confidence. Some buyers are still looking for casein to buy, or lock into a contract. But there is caution in finalizing deals that deviate much from current pricing due to prevailing uncertainty as to expected price movements. There is some inclination to look forward to next week s GDT event, as an indication of near term market expectations. s for: Spot Sales And Up 3 Month Contracts, Free on Board - Warehouse, Non-Restricted, All Mesh Sizes, Conventional, and Edible Casein Acid; - $/LB: Rennet; - $/LB: Secondary Sourced Information: EU exports of casein this year through April, 24,357 MT, are down 36.9 percent from last year according to Eucolait. Yet, New Zealand casein exports for the same period this year, 31,400 MT, are up 8.6 percent from last year.

12 DAIRY MARKET NEWS, JUNE 25-29, VOLUME 85, REPORT 26 U.S. Dairy Cow Slaughter (1000 head) under Federal Inspection 2018 WEEKLY WEEKLY 2017 WEEK ENDING DAIRY COWS CUMULATIVE DAIRY COWS DAIRY COWS CUMULATIVE DAIRY COWS 06/09/ , ,337.6 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 2018 (3.5% Butterfat) CLASS JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC I 1/ II III IV / S3p03ific 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

13 DAIRY MARKET NEWS, JUNE 25-29, VOLUME 85, REPORT 26 ORGANIC DAIRY MARKET NEWS Information gathered June 18-29, 2018 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 May 2018, organic whole milk utilization totaled 15.5 million pounds, down from 15.8 million pounds one year earlier. The May 2018 butterfat content was 3.29 percent, slightly up from 3.28 percent in Organic reduced fat milk utilization for May this year, nearly 23.0 million pounds, was up from 21.8 million pounds one year earlier. Butterfat this May was 1.29 percent, up from 1.28 percent the previous year. NATIONAL ORGANIC GRAIN AND FEEDSTUFF MARKETS Organic grain and feedstuff markets. Suppliers of feed grade corn and soybeans are seeing light to moderate demand from buyers in the market. Transactions are inactive on all other organic grains. Old crop bid prices continue to see upticks on feed corn and soybeans, but buyers are showing resistance at those offers. Demand is good on feed grade wheat with buyers struggling to locate supplies of any volume. Substantially lower than normal volumes on organic imports are increasing demand for domestic grains. For the U.S. as a whole, estimated sales data through April can be compared with prior year s results in the graph below. Data Source: Federal Milk Market Administrators Image: Dairy Market News Retail Organic Milk s for selected U.S. Cities. The June 2018 monthly in store survey of supermarkets in selected U.S. cities presents the price of organic whole milk in half gallon containers. The survey reveals prices ranging from $3.19 in Houston, to $5.39 in Pittsburgh. The table below shows the June 2018 price in each of the selected cities. If you are reading this in text format, images will not appear. To view all images go to the PDF version of this report, ORGANIC DAIRY RETAIL OVERVIEW This week, total organic retail survey advertisements grew 47 percent across the country. As a percentage of total organic ads by commodity, milk ads are 53 percent, while organic yogurt ads are 25 percent. The remaining weekly percentages of advertised organic dairy products, collected from the DMN weekly retail survey, are presented in the pie chart below. Retail ads for organic milk as a whole dipped 5 percent, but organic yogurt rose 350 percent. There were no ads for organic cheese this week. Ad numbers grew in all regions, except Alaska and Hawaii, which did not report a change. The biggest jump in retail ads was in the Northwest at 175 percent, while the heaviest volumes of ads were noted in the Northeast and Southeast. - -CONTINUED ON PAGE 8A-

14 DAIRY MARKET NEWS, JUNE 25-29, A- VOLUME 85, REPORT 26 ORGANIC DAIRY MARKET NEWS Information gathered June 18-29, CONTINUED FROM PAGE 8- DIRECT TO CONSUMER ORGANIC DAIRY PRODUCTS PRICES. The following tables identify U.S. price range results from a Dairy Market News national survey of publicly available prices of organic dairy products, available from farmstead outlets and online. There may be prices offered outside of the price range which were not identified by the survey. These are cows milk products. Information is for the period June 18-June 29, ORGANIC CHEESE Commodity Type Pack Size : Organic : : $ : Cheese Cheddar - Mild-Medium 8 oz. : : Cheese Cheddar - Sharp 8 oz. : : Cheese Colby 8 oz. : : Cheese Monterey Jack 8 oz. : : Cheese Mozzarella 8 oz. : : Cheese Curds 16 oz. : : ORGANIC BUTTER Advertising information presented is compiled from nearly 23,000 surveyed newspaper supermarket ads. s are valid from June 29-July 5, Retail survey ads reflect advertised specials and not the range of non-advertised supermarket cooler prices. Click the following link to the PDF version of this report. Commodity Pack Size : Organic : : $: Butter 1 lb. : : 8 oz. : : 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 5.42 n.a Milk Half Gal Gal oz. n.a Ice Cream n.a. Yogurt 4-6 oz. Greek oz. Greek n.a. 4-6 oz. Yogurt.88 n.a. n.a. 32 oz. Yogurt 3.09 n.a Data source: USDA/AMS/Weekly National Organic Summary Complete results of the National Retail Report-Dairy and Weekly National Organic Summary are accessible using the following links: 1/ 2/

15 DAIRY MARKET NEWS, JUNE 25-29, VOLUME 85, REPORT 26 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 APR 30, 2016 APR 30, 2017 REVISED APR 30, 2018 MAY 31, 2016 MAY 31, 2017 MAY 31, 2018 Butter 295, , , , , ,807 Cheese, Natural American 734, , , , , ,744 Cheese, Swiss 24,592 26,962 29,193 24,967 26,242 31,402 Cheese, Other Natural 450, , , , , ,693 Total Cheese 1,209,222 1,303,328 1,345,289 1,249,382 1,308,929 1,385,839 New England Middle Atlantic East North Central West North Central South Atlantic East South Central West South Central Mountain Pacific M A Y S T O R A G E H O L D I N G S B Y R E G I O N REGION Natural American Cheese Butter * Other Natural Cheese ,546 67,274 66, ,430 53,777 71,457 18,807 18,561 17, , , , , , , , , ,961 46,531 49,409 46,313 1,121 1, ,604 29,809 28,450 6,888 14,053 19,627 25,033 14,537 17,863 13,491 18,364 9,195 1,328 1,449 2,793 50,516 55,977 61,027 2,579 3,421 2, , , ,407 48,807 42,304 58,495 TOTAL 757, , , , , , , , ,693 *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

16 DAIRY MARKET NEWS, JUNE 25-29, VOLUME 85, REPORT 26 May Agricultural s Highlights The All Milk price received by farmers was $16.20 in May, down $.50 from May The alfalfa hay price was $ in May, up $32.00 from May The corn price was $3.67 in May, up $0.22 from May The soybean price was $9.84 in May, up $0.55 from May The milk-feed price ratio was 1.90 in May, down 0.30 from May The index of prices received by farmers for dairy products during the month of May 2018 was up 2 to Compared to May 2017, the index was down 2.5 points (-3.0 percent). The index of prices paid by farmers for commodities and services, interest, taxes, and wage rates in May 2018 was up 0.4 points to Compared with May 2017, the index was up 2.1 points (2.0 percent). Selected Milk s, Milk Cows, and Feed s, Selected States and U.S., May 2018 with Comparisons All-Milk price 1, 2 Alfalfa hay, baled Corn for Grain Soybeans State May May May May (dollars per cwt) (dollars per ton) (dollars per bushel) (dollars per bushel) AZ (NA) (D) CA (NA) (D) CO ID (NA) (D) IN (NA) IA MI MN NM (NA) (D) NY (NA) OH PA TX WA (NA) (D) WI U.S NA = Not available. (D) = Withheld to avoid disclosing data for individual operations. 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., May 2018 with Comparisons Milk-feed: pounds of 16% mixed dairy feed equal in value to 1 pound of whole milk 1 State 2 May 2017 Apr 2018 May 2018 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., May 2018 with Comparisons Item 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, June May 2017 Apr 2018 May 2018

17 DAIRY MARKET NEWS, JUNE 25-29, VOLUME 85, REPORT 26 Mailbox Milk s for Selected Reporting Areas, In Federal Milk Orders and California, March 2018, With Comparisons In March 2018, mailbox milk prices for selected reporting areas in Federal milk orders averaged $15.04 per cwt, up $0.23 from the February 2018 average but down $2.27 per cwt from the March 2017 average. The component tests of producer milk in March 2018 were: butterfat, 3.90%; protein, 3.16%; and other solids, 5.76%. When compared to the previous month, the March mailbox prices increased in 14 of the Federal milk order reporting areas and decreased in 5 of the reporting areas. The Wisconsin reporting area reported the largest increase of $0.57 per cwt from the previous month while the Southern Missouri reporting area reported the largest decrease of $0.50 per cwt from the previous month. Averaged over all Federal milk order reporting areas, the March 2018 mailbox milk price increased an average of $0.10 per cwt. Mailbox prices in March 2018 ranged from $16.46 in the Florida reporting area to $13.21 in the New Mexico reporting area. Reporting Area 1 Mailbox Milk 2 Mar 2017 Feb 2018 Mar 2018 (dollars per hundredweight) New England States New York Eastern Pennsylvania Appalachian States Southeast States Southern Missouri Florida Western Pennsylvania Ohio Indiana Michigan Wisconsin Minnesota Iowa Illinois Corn Belt States Western Texas New Mexico Northwest States All Federal Order Areas California Areas for which prices are reported for at least 75% of the milk marketed under Federal milk orders. 2 Net pay prices received by dairy farmers for milk. s reflect all payments received for milk sold and all costs associated with marketing the milk. s are weighted averages of the prices reported for all orders receiving milk from the reporting area and are reported at the average butterfat tests. s include, for the most part, the assessment under the Cooperatives Working Together (CWT) program. 3 Includes Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island and Vermont. 4 Includes all counties to the east of those listed in 8. 5 Includes Kentucky, North Carolina, South Carolina, Tennessee, and Virginia. 6 Includes Alabama, Arkansas, Georgia, Louisiana, and Mississippi. 7 Includes the counties Vernon, Cedar, Polk, Dallas, Laclede, Texas, Dent, Crawford, Washington, St. Francois, and Perry, and all those to the south of these. 8 The counties of Warren, Elk, Clearfield, Indiana, Westmoreland, and Fayette, and all those counties to the west of these. 9 Includes Kansas, Nebraska, and the Missouri counties to the north of those listed in Includes all counties to the west of Fanin, Hunt, Van Zandt, Henderson, Houston, Cherokee, Nacogdoches, and Shelby. 11 Includes Oregon and Washington. 12 Weighted average of prices for all reporting areas. 13 Calculated by California Department of Food and Agriculture.

18 DAIRY MARKET NEWS, JUNE 25 29, VOLUME 85 REPORT 26 FEDERAL MILK ORDER MARKETING AND UTILIZATION SUMMARY, MAY 2018 Highlights: During May, 11.8 billion pounds of milk were received from federally pooled producers. This volume of milk is 5.3 percent higher than the May 2017 volume. Regulated handlers pooled 3.3 billion pounds of producer milk as Class I products, down 2.4 percent when compared to the previous year. Class I utilization decreased from last year in 8 of the 10 Federal Milk Order Marketing areas. The all-market average Class utilization percentages were: Class I = 28 percent, Class II = 15 percent, Class III = 39 percent, and Class IV = 17 percent. The weighted average statistical uniform price was $15.75 per cwt, up $0.72 from last month but down $0.38 from last year. Federal Milk Order Marketing Area 1 and Pool Statistics for Federal Milk Order Marketing Areas, May 2018 Order Number Receipts of Utilization of Producer Utilization of Producer Milk Producer Milk Milk in Class I in All Classes 3 Uniform Change Change Class Class Class Class 2 Total from Prev. Total from Prev. I II III IV Year Year (million lbs) (percent) (million lbs) (percent) (percent) 3 ($ per cwt) Northeast (Boston) 001 2, Appalachian (Charlotte) Florida (Tampa) Southeast (Atlanta) Upper Midwest (Chicago) 030 2, Central (Kansas City) 032 1, Mideast (Cleveland) 033 1, Pacific Northwest (Seattle) Southwest (Dallas) 126 1, Arizona (Phoenix) All Market Average or Total 3 11, , Names in parentheses are the major city in the principal pricing point of the market. 2 Statistical uniform price for component pricing orders (Class III price plus producer price differential). For other orders, uniform skim milk price times plus uniform butterfat price times Totals may not add to 100 percent due to rounding. 4 Less than 0.1 percent change from previous month. 5 Less than 1 percent utilization. Report Contact: Randal Stoker, randal.stoker@usda.gov or

19 DAIRY MARKET NEWS, JUNE 25 29, VOLUME 85, REPORT 26 June 2018 Highlights: U.S. simple average prices are: $3.27 per gallon for conventional whole milk, $3.19 per gallon for conventional reduced fat 2% milk, $3.93 per half gallon organic whole milk, and, $3.92 per half gallon organic reduced fat 2% milk. Retail s for Conventional Whole Milk, Average of Three Outlets, Selected Cities, by Months, City and State Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Avg 2 (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 Simple average of monthly prices. 3 Data for May is not available.

20 DAIRY MARKET NEWS, JUNE 25 29, VOLUME 85, REPORT 26 Retail s for Conventional Reduced Fat (2%) Milk, Average of Three Outlets, Selected Cities, by Months, City and State Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Avg 2 (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 Simple average of monthly prices. 3 Data for May is not available.

21 DAIRY MARKET NEWS, JUNE 25 29, VOLUME 85, REPORT 26 Retail s for Organic Whole Milk, Average of Two Outlets, Selected Cities, by Months, City and State Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Avg 2 (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 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 are surveyed. The price represents the most common brand in nonreturnable containers. 2 Simple average of monthly prices. 3 Data for May is not available.

22 DAIRY MARKET NEWS, JUNE 25 29, VOLUME 85, REPORT 26 Retail s for Organic Reduced Fat (2%) Milk, Average of Two Outlets, Selected Cities, by Months, City and State Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Avg 2 (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 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 are surveyed. The price represents the most common brand in nonreturnable containers. 2 Simple average of monthly prices. 3 Data for May is not available..

23 DAIRY MARKET NEWS, JUNE 25-29, G1- VOLUME 85, REPORT 26 U.S. Natural American Cheese Cold Storage Holdings MILLION POUNDS Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec DATA SOURCE, USDA, NASS; GRAPH, USDA, AMS, DMN U.S. Other Natural Cheese Cold Storage Holdings MILLION POUNDS Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec DATA SOURCE, USDA, NASS; GRAPH, USDA, AMS, DMN MILLION POUNDS 33 U.S. Swiss Cheese Storage Holdings Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec DATA SOURCE, USDA, NASS; GRAPH, USDA, AMS, DMN

24 Dairy Market News Branch Agricultural Marketing Service National Retail Report-Dairy Websites: and Volume 85- Number 26 Issued Weekly Friday, June 29, 2018 Advertised s for Dairy Products at Major Retail Supermarket Outlets ending during the period of 06/29/2018 to 07/05/2018 The total number of conventional dairy ads increased 8 percent from last week. Organic dairy ads increased 47 percent. Cream cheese posted the largest increase, in the conventional category, for an advertised dairy item as ad numbers increased 146 percent. The U.S. average conventional one-pound butter price is $3.45, 34 cents less than a week ago. The number of butter ads were 6 percent above a week ago. No organic butter ads were noted this week. The national weighted average advertised conventional milk price for half gallons is $2.86, while organic half gallon milk averaged $4.19. The organic price premium is $1.33, a $0.35 dip from last week. Conventional milk ad numbers decreased 34 percent while organic milk ad numbers decreased 5 percent. Ad volumes for conventional milk and organic milk were fairly even this week. The conventional cheese ad number increased 3 percent. There were no ads for organic cheese. The weighted average price of conventional 8 ounce block cheese is $2.08, down 15 cents from last week. The weighted average price of conventional 8 ounce shred cheese is $2.12, down 20 cents from last week. Total conventional yogurt ads decreased by 12 percent, but total organic ads grew 350 percent. The weighted average advertised price for organic Greek yogurt in a 4-6 ounce container is $1.00, a penny above last week's price. Conventional Greek yogurt in 4-6 ounce containers averaged 95 cents, representing an organic premium of 5 cents. Top 5 Commodities Featured This Week 28K 06/29/ /22/ /15/ K with Ads 20K 16K 12K 8K 4K 0K Cheese Ice cream Yogurt Sour cream Cream cheese 1 -- Dairy Market News surveys nearly 150 retailers, comprising over 23,000 individual stores, with online weekly advertised features.

25 National Retail Report - Dairy Vol 85 - No. 26 Friday, June 29, Page 2 Percentage of Total Conventional Ads by Commodity Yogurt, 15% Butter, 4% Cheese, 25% Sour cream, 10% Milk, 3% Cottage cheese, 6% Ice cream, 20% Cream cheese, 10% Flavored milk, 1% Percentage of Total Organic Ads by Commodity Butter, 8% Yogurt, 25% Cheese, 3% Ice cream, 6% Sour cream, 5% Milk, 53% - Simple weighted average

26 National Retail Report - Dairy Vol 85 - No. 26 Friday, June 29, Page 3 NATIONAL -- CONVENTIONAL DAIRY PRODUCTS THIS PERIOD LAST WEEK LAST YEAR Commodity Type Pack Size With Ads With Ads With Ads 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 Butter 1 # Cheese Natural Varieties 8 oz block Cheese Natural Varieties 1 # 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 Simple weighted average

27 National Retail Report - Dairy Vol 85 - No. 26 Friday, June 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 Yogurt Yogurt 32 oz SOUTH CENTRAL U.S. SOUTHWEST U.S. NORTHWEST U.S. Commodity Type Pack Size with Ads with Ads Wtd Avg with Ads 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 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 Greek 32 oz Yogurt Yogurt 4-6 oz Yogurt Yogurt 32 oz NATIONAL -- ORGANIC DAIRY PRODUCTS - Simple weighted average

28 National Retail Report - Dairy Vol 85 - No. 26 Friday, June 29, Page 5 THIS PERIOD LAST WEEK LAST YEAR Commodity Type Pack Size With Ads With Ads With Ads Butter 1 # Cheese Natural Varieties 8 oz block Cheese Natural Varieties 8 oz shred Cottage cheese 16 oz Cream cheese 8 oz 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 Butter 1 # 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 32 oz SOUTH CENTRAL U.S. SOUTHWEST U.S. NORTHWEST U.S. Commodity Type Pack Size with Ads with Ads Wtd Avg with Ads Cheese Natural Varieties 8 oz shred Ice cream 48-64oz Milk All fat tests half gallon Simple weighted average

29 National Retail Report - Dairy Vol 85 - No. 26 Friday, June 29, Page 6 SOUTH CENTRAL U.S. SOUTHWEST U.S. NORTHWEST U.S. Commodity Type Pack Size with Ads with Ads Wtd Avg with Ads Yogurt Yogurt 4-6 oz ALASKA U.S. HAWAII U.S. Commodity Type Pack Size with Ads 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 - Simple weighted average

30 Dairy Market News United States Department of Agriculture Agricultural Marketing Service Dairy Programs Market Information Branch Volume 85, Report 26 June 29, 2018 GENERAL NUMBER (608) Elizabeth Frederick (608) INTERN Al Yang (608) ORGANIC/ EAST Daniel Johnson (608) EAST 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) INTERNET ADDRESS MARKET NEWS PORTAL RECORDED INFORMATION SYSTEM (608) FAX (608) USDA, Dairy Market News 4600 American Parkway, STE 106 Madison, WI USDA is an equal opportunity provider and employer