UPPER MIDWEST DAIRY NEWS

Size: px

Start display at page:

Download "UPPER MIDWEST DAIRY NEWS"

Merry Joseph
6 years ago
Views:

1 Federal Milk Market Administrator U.S. Department of Agriculture UPPER MIDWEST DAIRY NEWS Victor J. Halverson, Market Administrator Volume 17, Issue 6 Upper Midwest Marketing Area, Federal Order No. 30 June 2016 Inside This Issue: 2015 Annual Dairy Products Summary... 2 Computation of Producer Price Differential... 4 Utilization and Classification... 5 Commodity Prices and Market Statistics... 6 Class Prices and Producer Prices... 7 Update of CME Dairy Product Prices Prices for cheddar cheese on the Chicago Mercantile Exchange (CME) for both 500-pound barrels and 40-pound blocks have gradually climbed to around $1.55 per pound over the last few months after falling below $1.30 in early May. During these same few months, the price of butter has followed a similar trajectory, rising to about $2.35 after falling below $2.00 for most of March. Nonfat dry milk (NFDM) prices have also risen gradually throughout the spring, and are back above $0.80 after dropping as low as $0.69 in early April. (See graph below). On June 15, the CME barrel cheese price closed at $ per pound, up from a month earlier. The 40-pound block price of $1.54 on June 15 was up 26 from a month earlier. The CME butter price closed at $ per pound on June 15, above a month earlier. The Grade A nonfat dry milk (NFDM) price was up 2 from a month earlier, at $0.83 per pound on June 15. The May Federal order Class III price of $12.76 per cwt. was down $0.87 from April and was $3.43 below May The June 15 CME Class III futures market has the price at $13.28 for June, rising gradually from there until peaking in September at $16.27, and fluctuating slightly lower thereafter. Chicago Mercantile Exchange - Selected Commodity Prices * Butter reached record high of $ /lb. on Septem ber Cheese Barrels Cheese Blocks NFDM Grade A 0.50 l JUN l JUL l AUG l SEP l OCT l NOV l DEC l JAN l FEB l MAR l APR l MAY l JUN *Prices depicted are per pound for each day that trading occurred from June 1, 2015 to June 15, Ø In May, producer milk totaled 3.2 billion pounds, down 28 million pounds from April, but 858 million pounds above May Ø Class I utilization totaled 280 million pounds, down 4.3% from April on a daily basis and 1.4% below last year. Class I usage accounted for 8.9% of producer milk. Ø Class III utilization totaled 2.8 billion Pool Summary pounds and accounted for 88.4% of producer milk. Ø The May Producer Price Differential (PPD) was $0.32 per cwt. Ø The Statistical Uniform Price was $13.08 per cwt., down $0.70 from April, and $3.12 below May Ø Market statistics for May are shown on Pages 2, 4, and 5. May 2016 Producer Milk by Class Product Percent Pounds Price $/cwt. Class I ,232, Class II ,341, Class III ,798,722, Class IV ,636, Total 3,164,932,782

Page 2 UPPER MIDWEST DAIRY NEWS Volume 17, Issue 6 2015 Annual Dairy Products Summary The National Agricultural Statistics Service (NASS) recently published the Dairy Products 2015 Summary, which

2 Page 2 UPPER MIDWEST DAIRY NEWS Volume 17, Issue Annual Dairy Products Summary The National Agricultural Statistics Service (NASS) recently published the Dairy Products 2015 Summary, which details the monthly production of specified dairy products in the United States. The table on Page 3 shows annual production and number of plants manufacturing selected dairy products in the United States for 2015 and Selected items from the table are summarized below. A breakdown of the information by state is included in the report, which is available on the NASS website at: Butter production in the United States during 2015 totaled 1.9 billion pounds, 0.1% above California accounted for 31% of butter production in Provolone and Parmesan with 7% each. California was the leading Italian cheese producing state with 31% of the production, followed by Wisconsin with 30%. Nonfat dry milk production for human food, at 1.8 billion pounds, was up 3.3% from This product s volume often varies significantly from year to year, offsetting with changes to volumes of dry whole milk and skim milk powder production. California was the leading state with 39% of total production. Dry whey production for human consumption totaled 958 million pounds, and was up 11.9% from Wisconsin was the leading state with 32% of total production. New York also accounted for a large percentage of the dry whey production with 16%. Total cheese production in 2015, excluding cottage cheeses, was 11.8 billion pounds, 2.8% above Wisconsin was the leading cheese producing state with 26% of the production, followed by California with 21%, Idaho with 8%, New York with 7%, and Minnesota and New Mexico with 6% each. Combined Ice Cream and Ice Cream Mix production (regular and lowfat) totaled 2.1 billion gallons and was up 3.2% from California was the leading state with 13% of total production. Pennsylvania had the second highest production, with 4% of the national total. American type cheese production was 4.7 billion pounds, 2.3% above American cheese again accounted for 40% of total cheese production in Wisconsin was the leading American cheese producing state with 19% of the production, followed by California and Idaho with 14% and 13%, respectively. Italian cheese varieties production of 5.1 billion pounds in 2015 was 2.8% above Italian Cheese accounted for 43% of total cheese production in Mozzarella accounted for 79% of the Italian production, followed by Upper Midwest Pool Statistics - May 2016 Market Class I Diverted to Location Differential Pool Received at Pool and Adjustment to Class I Differential Rate Plants Pool Plants Nonpool Plants Total Producers to Handlers Cwt. Number Pounds Pounds Pounds Value Pounds Value $ ,074,604 9,444,853 97,519,457 $ 0 81,102,368 $ 1,459,843 $ ,849,368 1,320,203,161 1,426,052, ,026 61,282,692 1,072,447 $ ,654,517 1,340,657,406 1,510,311,923 1,509, ,452,176 2,098,687 $ ,412, ,636, ,048, ,573 14,394, ,516 Total ,991,073 2,782,941,709 3,164,932,782 $ 2,418, ,232,132 $ 4,868,493

3 Volume 17, Issue 6 UPPER MIDWEST DAIRY NEWS Page 3 Annual Production and Number of Plants Manufacturing Selected Dairy Products in the United States, 2015 and Change Product Plants Production Plants Production from 2014 Number 1,000 lbs. Number 1,000 lbs. Percent Butter 82 1,855, ,857, Cheese American Types Cheddar 223 3,317, ,393, Other American 1/ 149 1,270, ,301, Total American 237 4,588, ,694, Swiss , , Muenster , , Italian Varieties Mozzarella 127 3,924, ,995, Other Italian n/a 1,025,310 n/a 1,092, Total Italian 215 4,950, ,088, Cream & Neufchatel , , Hispanic , , All Other Types n/a 411,103 n/a 434, Total Cheese 2/ ,512, ,838, Cottage Cheese Curd 3/ , , Creamed 4/ , , Lowfat 5/ , , Dry Whey, Human Consumption , , Bulk Condensed Milk Whole Sweetened 5 88, , Unsweetened 13 65, , Skim Sweetened 5 43, , Unsweetened 41 1,661, ,668, Dry Milk Dry Whole Milk , , Nonfat Dry Milk, Human 47 1,764, ,822, Skim Milk Powder 6/ , , Milk Protein Concentrate 7/ , , Dry Buttermilk , , Ice Cream 8/ Regular, Total n/a 865,753 n/a 897, Lowfat, Total n/a 411,701 n/a 431, Ice Cream Mix 8/ Regular , , Lowfat 9/ , , Sour Cream 107 1,302, ,316, Yogurt, Plain and Flavored 148 4,756, ,742, / Includes Colby, Monterey, and Jack. 2/ Excluding cottage cheese. 3/ Mostly used for processing into creamed or lowfat cottage cheese. 4/ Fat content 4.0% or more. 5/ Fat content less than 4.0%. 6/ Includes protein standardized and blends. 7/ Dry milk protein concentrate, 40.0% to 89.9%. 8/ Ice Cream and Ice Cream Mix volume is in gallons rather than pounds. 9/ Includes milkshake mix. n/a = not available. Source: Dairy Products 2015 Summary, National Agricultural Statistics Service (NASS), USDA, (

Page 4 UPPER MIDWEST DAIRY NEWS Volume 17, Issue 6 Computation of Producer Price Differential - May 2016 Utilization Product Component Percentage Pounds Pounds Rate Value Class I Differential Value $

4 Page 4 UPPER MIDWEST DAIRY NEWS Volume 17, Issue 6 Computation of Producer Price Differential - May 2016 Utilization Product Component Percentage Pounds Pounds Rate Value Class I Differential Value $ 4,868, Product 8.9% 280,232,132 Skim Milk 275,800,374 $ ,878, Butterfat 4,431, ,862, Class II Product 1.7% 53,341,389 Nonfat Solids 4,291, ,722, Butterfat 6,380, ,621, Class III Product 88.4% 2,798,722,667 Protein 86,564, ,284, Other Solids 161,671, ,552, Butterfat 98,146, ,226, Class IV Product 1.0% 32,636,594 Nonfat Solids 2,001, ,174, Butterfat 10,786, ,643, SCC Adjustment (Class II, III, and IV) 3,241, Total Producer Milk * 3,164,932,782 $ 440,076, Add: Overage 78, Inventory Reclassified 1, Other Source Milk.60(h) 0.00 Other Source Milk.60(i) 17, Subtract: Transportation Credit 2, Assembly Credit 222, Credit for Reconstituted FMP 0.00 Producer Milk Protein 145,622, Producer Milk Other Solids 9,643, Producer Milk Butterfat 273,571, Producer Milk SCC Adjustment 3,567, Total Milk and Value 3,164,950,160 $ 7,527, Add: Location Adjustment -- Producer and Unregulated Supply Plant Milk 2,418, One-Half Unobligated Balance Producer Settlement Fund 1,528, Total Value $ 11,474, Subtract: Producer Settlement Fund Reserve ,346, Producer Price Differential ** $ 0.32 $ 10,127, * An estimated 459 million pounds of milk was not pooled. ** Producer Price Differential is dollars per cwt. at the Base Zone of Cook County, Illinois.

5 Volume 17, Issue 6 UPPER MIDWEST DAIRY NEWS Page 5 Utilization and Classification of Milk May 2016 April 2016 May 2015 Product Butterfat Product Product Pounds Pounds Pounds Pounds Class I Utilization: Packaged Disposition Milk 48,328,377 1,587,176 47,692,118 44,299,670 Flavored Milk 2,438,676 79,554 2,375,252 2,453,829 Reduced Fat Milk 99,237,976 1,914, ,946, ,874,176 Lowfat Milk 52,142, ,726 53,177,086 54,191,598 Fat Free Milk 46,715,087 39,374 47,971,860 53,588,988 Flavored Reduced and Fat Free Milk 27,962, ,580 29,303,707 27,743,799 Buttermilk 3,054,619 46,201 2,908,321 3,120,061 Total Packaged Disposition 279,879,094 4,342, ,374, ,272,121 Total Ending Inventory 22,514, ,809 21,897,132 20,449,138 Bulk to Nonpool Plants 1,858,607 46, ,540 54,459 Shrinkage 437,337 68,601 1,784, ,551 Total Class I Utilization 304,689,409 4,794, ,324, ,615,269 Other Order Plants (2,362,935) (42,910) (2,059,845) (2,637,007) Beginning Inventory (21,544,394) (311,076) (22,776,880) (21,096,391) Reused Products Other Source Milk (535,954) (8,447) (716,276) (658,689) Overage Interhandler Adjustment (13,994) (454) (391,676) 7,260 Class I Producer Milk 280,232,132 4,431, ,379, ,230,442 Class II Utilization: Total Class II Utilization 59,569,375 6,393, ,827, ,454,932 Other Order Plants Beginning Inventory (976,243) -- Reused Products (6,227,986) (12,539) (9,451,740) (10,258,158) Other Source Milk 0 0 (696,877) (494,916) Overage Class II Producer Milk 53,341,389 6,380, ,702, ,701,858 Class III Utilization: Total Class III Utilization 2,821,012,950 98,348,924 2,593,650,263 1,721,997,501 Other Order Plants Beginning Inventory (5,436,030) (105,889) (2,452,830) (3,726,212) Reused Products Other Source Milk (16,739,017) (89,434) (3,769,936) (16,594,291) Overage (115,236) (6,779) (132,046) (145,900) Class III Producer Milk 2,798,722,667 98,146,822 2,587,295,451 1,701,531,098 Class IV Utilization: Total Class IV Utilization 147,536,039 15,867, ,107, ,268,574 Other Order Plants (6,722,956) (497,947) (4,259,782) (9,688,362) Beginning Inventory (13,150,473) (857,324) (19,355,979) (18,349,733) Reused Products Other Source Milk (94,600,376) (3,709,395) (64,231,898) (97,715,201) Overage (425,640) (15,786) (39,052) (97,342) Class IV Producer Milk 32,636,594 10,786, ,220, ,417,936 Total Producer Milk -- All Classes 3,164,932, ,745,707 3,192,598,154 2,306,881, Restricted Information

6 Page 6 UPPER MIDWEST DAIRY NEWS Volume 17, Issue 6 Commodity Prices Weighted Monthly Average Prices Weighted Two-Week Average Prices Cheddar Cheese Nonfat Cheddar Cheese Nonfat Month/Year Blocks Barrels Average Butter Dry Milk Dry Whey Blocks Barrels Average Butter Dry Milk Dry Whey Dollars per Pound Dollars per Pound May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Chicago Mercantile Exchange USDA Dairy Market News Butter Cheddar Cheese NFDM NFDM Low/Medium Heat Whey Powder Month/Year Grade AA Blocks Barrels Grade A Central & East West Northeast Central West Dollars per Pound May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Market Statistics Total Est. Average Other Weighted Distributing Supply Coop.9(c) Producer Daily Delivery Class I Butterfat Protein Solids Average Month/Year Plants Plants Handlers Producers Milk Per Producer Utilization Test Test Test SCC Mil. lbs. Pounds Percent Percent Percent Percent (000) Mar ,549 2,644 8, Apr ,646 2,287 7, May ,701 2,307 7, Jun ,417 2,067 7, Jul ,092 1,864 6, Aug ,141 2,013 7, Sep ,227 2,443 7, Oct ,718 2,747 8, Nov ,997 2,848 8, Dec ,233 3,079 8, Jan ,432 3,256 9, Feb ,225 3,101 9, Mar ,226 3,127 9, Apr , May ,

7 Volume 17, Issue 6 UPPER MIDWEST DAIRY NEWS Page 7 Class Prices Class I Price Mover Class I Price at Cook County, IL Class II Price Skim Skim Nonfat Skim Month/Year Butterfat Milk 3.50% Butterfat Milk 3.50% Butterfat Solids Milk 3.50% lb. cwt. cwt. lb. cwt. cwt. lb. lb. cwt. cwt. May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Class III Price Class IV Price Other Skim Nonfat Skim Month/Year Butterfat Protein Solids Milk 3.50% Butterfat Solids Milk 3.50% lb. lb. lb. cwt. cwt. lb. lb. cwt. cwt. May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Producer Prices Producer Statistical SCC Producer Price Uniform Price Other Solids Adjustment Mailbox Price Month/Year Differential (at 3.50%) Butterfat Price Protein Price Price Rate (at test) $ per cwt. $ per cwt. $ per lb. $ per lb. $ per lb. $ per cwt. $ per cwt. Mar Apr May Jun (0.10) Jul Aug (0.02) Sep Oct Nov Dec Jan Feb Mar Apr May

FEDERAL MILK MARKET ADMINISTRATOR U.S. DEPARTMENT OF AGRICULTURE 1600 West 82nd Street, Suite 200 Minneapolis, MN 55431-1420 Address Service Requested FIRST-CLASS MAIL U.S. POSTAGE PAID HOPKINS, MN PERMIT NO.

8 FEDERAL MILK MARKET ADMINISTRATOR U.S. DEPARTMENT OF AGRICULTURE 1600 West 82nd Street, Suite 200 Minneapolis, MN Address Service Requested FIRST-CLASS MAIL U.S. POSTAGE PAID HOPKINS, MN PERMIT NO. 586 Summary of Federal Order Data - May 2016 Uniform or Statistical Uniform Price at 3.5% Butterfat Class I Producer FOB Change From Federal Order Producer Producer Class I Class I Price FOB Cook Cty. Previous Number / Name Deliveries Receipts Utilization Price Differential Market Illinois Year Thousand Pounds Percent Dollars per Cwt. Dollars per Cwt. 1 Northeast 2,372, , $ $ 1.97 $ $ $ (2.09) 5 Appalachian 490, , n/a (1.85) 6 Florida 228, , n/a (2.26) 7 Southeast 479, , n/a (2.32) 30 Upper Midwest 3,164, , (3.12) 32 Central 1,509, , (2.45) 33 Mideast 1,825, , (2.17) 124 Pacific Northwest 773, , (2.06) 126 Southwest 1,260, , (2.34) 131 Arizona 469, , n/a (1.89) All Market Average or Total* 12,573,910 3,366, n/a = Not applicable. * May not add due to rounding. The U.S. Department of Agriculture (USDA) prohibits discrimination in all of its programs and activities on the basis of race, color, national origin, age, disability, and where applicable, sex (including gender identity and expression), marital status, familial status, parental status, religion, sexual orientation, political beliefs, genetic information, reprisal, or because all or part of an individual s income is derived from any public assistance program. (Not all prohibited bases apply to all programs.) Persons with disabilities who require alternative means for communication of program information (Braille, large print, audiotape, etc.) should contact USDA s TARGET Center at (202) (voice and TDD). To file a complaint of discrimination, write to USDA, Assistant Secretary for Civil Rights, Office of the Assistant Secretary for Civil Rights, 1400 Independence Avenue, S.W., Stop 9410, Washington, D.C , or call toll-free at (866) (English) or (800) (TDD) or (866) (English Federal-relay) or (800) (Spanish Federal-relay). USDA is an equal opportunity provider and employer. ND MI Upper Midwest Marketing Area F.O. 30 SD MN WI Phone: (952) Fax: (952) IA IL Website:

Federal Milk Market Administrator U.S. Department of Agriculture. H. Paul Kyburz, Market Administrator

Federal Milk Market Administrator U.S. Department of Agriculture UPPER MIDWEST DAIRY NEWS H. Paul Kyburz, Market Administrator Volume 9, Issue 7 Upper Midwest Marketing Area, Federal Order No. 30 July