DAIRY MARKET NEWS WEEK OF APRIL 30 - MAY 4, 2018

DAIRY MARKET NEWS WEEK OF APRIL 30 - MAY 4, 2018 VOLUME 85, REPORT 18 CME GROUP CASH MARKETS (5/04) BUTTER: Grade AA closed at $2.3525. The weekly average for Grade AA is $2.3565 (-.0055). CHEESE: Barrels closed at $1.6000 and 40# blocks at $1.6650. The weekly average for barrels is $1.5790 (+.0930) and blocks, $1.6570 (+.0375). NONFAT DRY MILK: Grade A closed at $.8425. The weekly average for Grade A is $.8360 (+.0060. DRY WHEY: Extra grade dry whey closed at $.3175. The weekly average for dry whey is $.3140 (+.0025). BUTTER HIGHLIGHTS: Nationwide, butter production is active as cream availability is adequate for its production. Butter demand is generally appealing in both the international and domestic market. Some reports suggest that U.S. butter prices are favorable and enhancing export sales. Compared to last year, this year, butter stocks are lower in the East. However, inventories across the country are sufficient to meet all buyers' needs. Bulk butter pricing ranges from 5 cents below to 8 cents over the CME average. The lowest prices come from the western region, while the highest prices are reported in the East. The CME Group cash price for Grade AA butter is $2.3565, compared to $2.3620, last Friday s price. CHEESE HIGHLIGHTS: Cheese production nationwide is active as processors clear copious loads of milk into cheese vats. Milk prices remain discounted, ranging from $1 to $3 under Class III. Some producers in the Midwest are shutting down plants for maintenance in the coming weeks. The cheese market tone is steady and relatively quiet this week. Demand is solid with good routine orders from the restaurant industry. The international demand for favorably priced U.S. cheese is good. As warmer weather nears, industry participants hope the grilling season will help increase cheese sales and control cheese stocks. Cheese inventories are mixed. In the West, inventory is abundant, while in the East inventory is generally manageable. 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 U.S. Dairy Cow Slaughter/Class Milk s 7 Organic Dairy Market News 8 DAIRY MARKET NEWS AT A GLANCE TABLE OF CONTENTS April Dairy Market News Averages 9 April CME Group Monthly Averages 11 March Agricultural s Highlights 12 Annual Milk Marketings by State 2017 13 Milk Production, Disposition, and Income 2017 14 Annual Production of Selected Dairy Products and Numbers of Plants Manufacturing These Products, 2016 and 2017 15 The CME Group weekly average for barrels, $1.5790, is up $.0930 from last week s average. The average for blocks, $1.6570, is up $.0375 from last week s average. FLUID MILK: Milk production is seasonally increasing in the Midwest, Mid-Atlantic, and New Mexico. California farm milk is following a steady to downward production outline this week. Class I sales are steady but more milk has moved to Class IV since the beginning of the year due to equipment repairs at some Class III plants. Production is strong in Arizona, Idaho, Utah and Colorado. Flat production is noted in the Northeast and declining production in the Southeast. Pacific Northwest milk production is following expected seasonal patterns, with intakes in balance with processing needs, and steady bottling demand. Spot milk going to cheese plants is discounted in the Midwest, but low prices are beginning to ebb. Cream multiples for all Classes range 1.15-1.26 in the East, 1.17-1.26 in the Midwest, and 1.04-1.27 in the West. DRY PRODUCTS: Low/medium heat nonfat dry milk prices are steady to higher in the Central and East, higher in the West. Western high heat prices firmed at the top of the price range, but all other high heat prices are steady. Production and inventories are generally stable. pressure in many instances arises because so much current production is already committed, leaving spot offerings light. The dry buttermilk price range is unchanged in all regions. In the West, the mostly price series is steady to higher. Dryer capacity available for buttermilk is often secondary to drying nonfat dry milk. Spot buttermilk activity is mostly light, with more focus on contract fulfillment. Dry whole milk prices shifted up, tailing international trends. The market tone is firming. Dry whey prices are steady in much of the country this week, with slight firming at the top of the price range in the Northeast. Production is steady in the Northeast and Central, active with increased demand in the West. Whey -CONTINUED ON PAGE 1A- Dairy Products 2017 Summary 16 March 2018 Dairy Products Highlights 17 Measures of Growth in Federal Order Markets: 1950-2017 18 Dairy Graphs G1-2 National Retail Report Dairy Dairy Market News Contacts CME GROUP CASH TRADING COMMODITY MONDAY TUESDAY WEDNESDAY THURSDAY FRIDAY :: WEEKLY :: WEEKLY APR 30 MAY 01 MAY 02 MAY 03 MAY 04 :: CHANGE* :: AVERAGE# CHEESE BARRELS $1.4875 (N.C.) $1.6025 (+.1150) $1.6025 (N.C.) $1.6025 (N.C.) $1.6000 :: :: $1.5790 (-.0025) :: (+.1125) :: (+.0930) 40# BLOCKS $1.6300 $1.6600 $1.6650 $1.6650 $1.6650 :: :: $1.6570 (+.0100) (+.0300) (+.0050) (N.C.) (N.C.) :: (+.0450) :: (+.0375) NONFAT DRY MILK GRADE A $.8550 $.8250 $.8200 $.8375 $.8425 :: :: $.8360 (+.0125) (-.0300) (-.0050) (+.0175) (+.0050) :: (N.C.) :: (+.0060) BUTTER GRADE AA $2.3700 (+.0100) $2.3600 (-.0100) $2.3475 (-.0125) $2.3525 (+.0050) $2.3525 :: :: $2.3565 (N.C.) :: (-.0075) :: (-.0055) DRY WHEY EXTRA GRADE $.3100 (N.C.) $.3100 (N.C.) $.3150 (+.0050) $.3175 (+.0025) $.3175 :: :: $.3140 (N.C.) :: (+.0075) :: (+.0025) 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 WWW.AMS.USDA.GOV/MARKET-NEWS/DAIRY

WEEK OF APRIL 30 - MAY 4, 2018 DAIRY MARKET NEWS VOLUME 85, REPORT 18 -CONTINUED FROM PAGE 1- DAIRY MARKET NEWS AT A GLANCE tightening in the Central and West, mixed in the Northeast. Whey protein concentrate 34% prices remained mostly unchanged with some firming at the top of the mostly price series. Inventories are committed for favored brands but more available for brand with substitutes. Lactose prices are generally steady, aside from firming at the top of the mostly price range. Inventories vary from comfortable to highly committed. Contract discussions for Q3 and Q4 are underway. Casein prices are lower, both rennet and acid. The Oceania production season is mostly complete. EU production is increasing. ORGANIC DAIRY MARKET NEWS (DMN): Federal Milk Market Order 1 in New England reports utilization of types of organic milk by pooled plants. During March 2018, organic whole milk utilization totaled 16.7 million pounds, up from the 16.3 million pounds one year earlier. The butterfat content for March 2018 was 3.28 percent, level with March 2017. Organic reduced fat milk utilization for March 2018, 20.3 million pounds, was down from 23.1 million pounds one year earlier. Butterfat this March was 1.33 percent, up from 1.25 percent in March 2017. This week, total organic retail ad numbers increased 82 percent. The surge was propelled by organic milk half gallon containers, whose volume was nearly 4 times as great as the previous week. Retail ads for organic butter grew 185 percent, while organic yogurt ads declined 66 percent. The organic retail milk price premium, representing the price difference between half gallons of organic and conventional NATIONAL RETAIL REPORT - DAIRY (DMN): The national weighted average advertised conventional milk price for half gallons is $1.97, up 14 cents from a week ago, while milk in one-gallon bottle averaged $2.51, up 37 cents. The premium for organic to conventional half-gallon bottled milk is $1.88. The U.S. average conventional onepound butter price is $3.18 this period, down 23 cents from a week ago. The one-pound organic butter price is $5.81, an organic price premium of $2.63. The weighted average price of conventional 8 ounce block cheese was $2.37, up 13 cents from last week. The weighted average price of conventional 8 ounce shred cheese was $2.38, up 17 cents compared to last week. The weighted average advertised price for organic yogurt in 4-6 ounce containers is $1.06, while conventional yogurt in 4-6 ounce containers averaged 53 cents for an organic premium of 53 cents. MARCH AGRICULTURAL PRICES HIGHLIGHT (NASS): The All Milk price received by farmers was $15.60 in March, down $1.70 from March 2017. The alfalfa hay price was $166.00 in March, up $32.00 from Mach 2017. The corn price was $3.51 in March, up $0.02 from March 2017. The soybean price was $9.481in March, up $0.12 from March 2017. The milk-feed price ratio was 1.97 in March, down 0.43 from March 2017. The index of prices received by farmers for dairy products during the month of March 2018 was up 1.5 to 77.6. Compared to March 2017, the index was down 8.5 points (-9.9 percent). The index of prices paid by farmers for commodities and services, interest, taxes, and wage rates in March 2018 was up 0.1 points to 108.5. Compared with March 2017, the index was up 1.9 points (1.8 percent). MILK PRODUCTION, DISPOSITION, AND INCOME 2017 (NASS): Milk production increased 1.4 percent in 2017 to 215 billion pounds. The rate per cow, at 22,941 pounds, was 163 pounds above 2016. The annual average number of milk cows on farms was 9.39 million head, up 67,000 head from 2016. Cash receipts from marketings of milk during 2017 totaled $37.9 billion, 9.8 percent higher than 2016. Producer returns averaged $17.69 per hundredweight, 8.3 percent above 2016. Marketings totaled 214.5 billion pounds, 1.5 percent above 2016. Marketings include whole milk sold to plants and dealers and milk sold directly to consumers. An estimated 979 million pounds of milk were used on farms where produced, 1.4 percent less than 2016. Calves were fed 91 percent of this milk, with the remainder consumed in producer households. MARCH DAIRY PRODUCTS HIGHLIGHTS (NASS): Butter production was 185.6 million pounds, 4.8 percent above March 2017 and 9.1 percent above February 2018. American type cheese production totaled 437.0 million pounds, 1.7 percent above March 2017 and 10.0 percent above February 2018. Total cheese output (excluding cottage cheese) was 1.10 billion pounds, 2.7 percent above March 2017 and 11.6 percent above February 2018. Nonfat dry milk production, for human food, totaled 180.3 million pounds, 12.0 percent above March 2017 and 14.2 above February 2018. Dry whey production, for human food, was 86.5 million pounds, 1.6 percent above March 2017, but 2.6 percent below February 2018. Ice cream, regular hard production totaled 65.4 million gallons, 11.8 percent below March 2017, but 18.1 percent above February 2018. -1A-

DAIRY MARKET NEWS, APRIL 30 - MAY 4, 2018-2- VOLUME 85, REPORT 18 MONDAY, APRIL 30, 2018 CHEESE -- SALES: 4 CARS BARRELS @ $1.4875; UNFILLED BIDS: 4 CARS BARRELS: 2 @ $1.4300, 1 @ $1.4425, 1 @ $1.4800; 4 CARS 40 POUND BLOCKS: 1 @ $1.5500, 1 @ $1.6100, 1 @ $1.6200, 1 @ $1.6300; UNFILLED OFFERS: 1 CAR BARRELS @ $1.5000 NONFAT DRY MILK -- SALES: 8 CARS GRADE A: 2 @ $0.8400, 1 @ $0.8450, 1 @ $0.8500, 1 @ $0.8525, 1 @ $0.8550, 2 @ $0.8600; UNFILLED BIDS: 18 CARS GRADE A: 3 @ $0.8200, 10 @ $0.8300, 2 @ $0.8400, 1@$0.8425, 2 @ $0.8500; UNFILLED OFFERS: 17 CARS GRADE A: 7 @ $0.8550, 10 @ $0.8700 BUTTER -- SALES: 11 CARS GRADE AA: 1 @ $2.3600, 2 @ $2.3625, 2 @ $2.3650, 2 @ $2.3675, 4 @ $2.3700; UNFILLED BIDS: 7 CARS GRADE AA: 2 @ $2.3100, 1 @ $2.3500, 1 @ $2.3600, 1 @ $2.3625, 1 @ $2.3650, 1 @ $2.3675; UNFILLED OFFERS: 4 CARS GRADE AA: 2 @ $2.3750, 1 @ $2.3775, 1 @ $2.3800 DRY WHEY -- SALES: NONE; UNFILLED BIDS: 1 CAR EXTRA GRADE @ $0.3100; UNFILLED OFFERS: NONE TUESDAY, MAY 1, 2018 CHEESE -- SALES: 5 CARS BARRELS: 1 @ $1.4875, 1 @ $1.4900, 1 @ $1.4925, 1 @ $1.5000, 1 @ $1.5100; 2 CARS 40 POUND BLOCKS: 1 @ $1.6500, 1 @ $1.6600; UNFILLED BIDS: 2 CARS BARRELS: 1 @ $1.5925, 1 @ $1.6025; 5 CARS 40 POUND BLOCKS: 2 @ $1.6025, 1 @ $1.6175, 1 @ $1.6200, 1 @ $1.6500; UNFILLED OFFERS: NONE NONFAT DRY MILK -- SALES: 3 CARS GRADE A: 1 @ $0.8200, 1 @ $0.8250, 1 @ $0.8400; UNFILLED BIDS: 14 CARS GRADE A: 1 @ $0.8000, 11 @ $0.8200, 2 @ $0.8250; UNFILLED OFFERS: 5 CARS GRADE A: 1 @ $0.8300, 1 @ $0.8375, 1 @ $0.8450, 1 @ $0.8475, 1 @ $0.8550 BUTTER -- SALES: 2 CARS GRADE AA @ $2.3600; UNFILLED BIDS: 1 CAR GRADE AA @ $2.3575; UNFILLED OFFERS: 4 CARS GRADE AA: 1 @ $2.3700, 1 @ $2.3725, 2 @ $2.3750 DRY WHEY -- SALES: NONE; UNFILLED BIDS: 1 CAR EXTRA GRADE @ $0.2600; UNFILLED OFFERS: NONE WEDNESDAY, MAY 2, 2018 CHEESE -- SALES: 9 CARS BARRELS @ $1.6025; 1 CAR 40 POUND BLOCKS @ $1.6650; UNFILLED BIDS: 6 CARS 40 POUND BLOCKS: 3 @ $1.6100, 2 @ $1.6400, 1 @ $1.6650; UNFILLED OFFERS: 1 CAR BARRELS @ $1.6075 NONFAT DRY MILK -- SALES: 2 CARS GRADE A: 1 @ $0.8200, 1 @ $0.8300; UNFILLED BIDS: 18 CARS GRADE A: 6 @ $0.8000, 1 @ $0.8100, 1 @ $0.8125, 10 @ $0.8200; UNFILLED OFFERS: 3 CARS GRADE A: 1 @ $0.8250, 2 @ $0.8300 BUTTER -- SALES: 16 CARS GRADE AA: 3 @ $2.3400, 6 @ $2.3450, 2 @ $2.3475, 2 @ $2.3500, 1 @ $2.3525, 2 @ $2.3600; UNFILLED BIDS: 5 CARS GRADE AA: 1 @ $2.2800, 2 @ $2.3300, 1 @ $2.3350, 1 @ $2.3400; UNFILLED OFFERS: 5 CARS GRADE AA: 1 @ $2.3500, 2 @ $2.3600, 2 @ $2.3900 DRY WHEY -- SALES: NONE; UNFILLED BIDS: 2 CARS EXTRA GRADE: 1 @ $0.2600, 1 @ $0.3150; UNFILLED OFFERS: NONE THURSDAY, MAY 3, 2018 CHEESE -- SALES: NONE; UNFILLED BIDS: 1 CAR 40 POUND BLOCKS @ $1.6250; UNFILLED OFFERS: 2 CARS BARRELS @ $1.6025 NONFAT DRY MILK -- SALES: 3 CARS GRADE A: 1 @ $0.8350, 1 @ $0.8375, 1 @ $0.8400; UNFILLED BIDS: 17 CARS GRADE A: 1 @ $0.7800, 11 @ $0.8200, 1 @ $0.8225, 2 @ $0.8250, 1 @ $0.8300, 1 @ $0.8325; UNFILLED OFFERS: 6 CARS GRADE A: 1 @ $0.8400, 2 @ $0.8425, 3 @ $0.8500 BUTTER -- SALES: 24 CARS GRADE AA: 2 @ $2.3425, 1 @ $2.3450, 3 @ $2.3475, 4 @ $2.3500, 12 @ $2.3525, 2 @ $2.3550; UNFILLED BIDS: 12 CARS GRADE AA: 1 @ $2.3000, 1 @ $2.3400, 1 @ $2.3425, 1 @ $2.3450, 2 @ $2.3475, 6 @ $2.3500; UNFILLED OFFERS: 3 CARS GRADE AA: 1 @ $2.3525, 1 @ $2.3550, 1 @ $2.3600 DRY WHEY -- SALES: NONE; UNFILLED BIDS: 1 CAR EXTRA GRADE @ $0.3175; UNFILLED OFFERS: NONE FRIDAY, MAY 4, 2018 CHEESE -- SALES: 6 CARS BARRELS @ $1.6000; UNFILLED BIDS: NONE; UNFILLED OFFERS: 1 CAR BARRELS @ $1.6200 NONFAT DRY MILK -- SALES: 3 CARS GRADE A: 1 @ $0.8400, 1 @ $0.8425, 1 @ $0.8450; UNFILLED BIDS: 3 CARS GRADE A: 1 @ $0.8000, 1 @ $0.8350, 1 @ $0.8375; UNFILLED OFFERS: 4 CARS GRADE A: 2 @ $0.8475, 1 @ $0.8525, 1 @ $0.8550 BUTTER -- SALES: 2 CARS GRADE AA @ $2.3525; UNFILLED BIDS: 2 CARS GRADE AA: 1 @ $2.3400, 1 @ $2.3500; UNFILLED OFFERS: 7 CARS GRADE AA: 1 @ $2.3550, 1 @ $2.3650, 2 @ $2.3750, 3 @ $2.4000 DRY WHEY -- SALES: NONE; UNFILLED BIDS: 1 CAR EXTRA GRADE @ $0.3150; UNFILLED OFFERS: 1 CAR EXTRA GRADE @ $0.3200 BUTTER MARKETS NORTHEAST Butter churning is steady with adequate cream availability. While satisfied with butter inventories, some manufacturers note lower butter stocks held now compared to last year. Demand remains good in both domestic and global trade markets. The bulk butter price in the domestic marketplace is 4 to 8 cents over the market of the CME Group, with various time periods and averages used. According to the DMN National Retail Report-Dairy, April 27-May 3, 2018, the Northeast weighted average retail price for 1-pound butter was $3.60. Butter markets in the Northeast reported prices ranging $2.49 -$4.99. s for: Eastern U.S., All First Sales, F.O.B., Grade AA, Conventional, and Edible Butter Bulk Basis Pricing-80% Butterfat $/LB: +0.0400 - +0.0800 CENTRAL For now, butter market prices appear to be easing as prices dipped at the CME successive days. Whereas butter interest is appealing, in both domestic and foreign markets, regional cream supplies are being tugged as the balance between available cream and strengthening Class II cream demand have led to the streamlining of a few manufacturers butter production schedules. Consequently, Central cream firmed a tad, 1.17 to 1.22 f.o.b. Nonetheless, market availability is adequate for contractual customer needs. The Central bulk butter price usually ranges from flat market to 7 cents over the CME average. The DMN National Retail Report-Dairy for April 27- May 2 noted the national weighted average advertised price for a 1 pound package of butter is $2.41, $0.49 above one week ago and $0.19 higher than one year ago. The weighted average regional prices in the Midwest and South Central were $2.74 and $2.50, respectively. s for: Central U.S., All First Sales, F.O.B., Grade AA, Conventional, and Edible Butter Bulk Basis Pricing - 80% Butterfat $/LB: 0.0000 - +0.0700 WEST In the western dairy market, stronger cream availability is conducive to more churning. Some contacts report that higher freight costs to move cream out of the West are also contributing to augmented butter production. Print butter production continues to be the focus of many processors. Butter stocks are ample and sufficient to meet all end users' needs. The prices of butter in the U.S. are competitive with international prices. As so, export sales are lively. Domestic CONTINUED ON PAGE 2A NATIONAL DAIRY PRODUCTS SALES REPORT U.S. AVERAGES AND TOTAL POUNDS WEEK ENDING April 28, 2018 BUTTER CHEESE 40# BLOCKS CHEESE BARRELS 38% MOISTURE 2.2827 5,504,476 1.6181 12,104,202 1.5098 11,070,703 DRY WHEY 0.2627 7,468,636 NDM 0.7290 28,100,760 Further data and revisions may be found on the internet at: http://www.ams.usda.gov/rules-regulations/mmr/dmr

DAIRY MARKET NEWS, APRIL 30 - MAY 4, 2018-2A- VOLUME 85, REPORT 18 CONTINUED FROM PAGE 2 demand is unchanged from a week ago. Bulk butter pricing in the West is steady at 5 cents below to 6.5 cents above the market, based on the CME Group with various periods and averages used. The DMN National Retail Report Dairy for the week of April 27-May 3 found that the U.S. weighted average advertised price of 1 pound butter is $3.41 up $.49 from last week. The U.S. weighted average price was $3.22 one year ago. The weighted average price in the Southwest is $3.88, with a price range of $2.99-$4.99. No advertised price was reported in the Northwest. s for: Western U.S., All First Sales, F.O.B., Grade AA, Conventional, and Edible Butter Bulk Basis Pricing - 80% Butterfat $/LB: -0.0500 - +0.0650

DAIRY MARKET NEWS, APRIL 30 - MAY 4, 2018-3- VOLUME 85, REPORT 18 NORTHEAST Cheese production is strong in the Northeast as manufacturers are receiving enough milk volumes for current needs. Inventories are fairly manageable. Routine orders from restaurants are good. There are reports of increased cheddar cheese prices in some international markets. Domestic cheese spot trading activities have been steady to somewhat light this week. The process cheese price shifted higher $0.0050. However, the wholesale price for cheddar and Muenster is unchanged. In addition, the Grade A Swiss price is steady. National Retail Report- Dairy, for April 27-May 3, 2018, noted the U.S. weighted average advertised price for 8 ounce cheese block was $2.24, up 2 cents from the previous week and up 23 cents from last year. The U.S. weighted average advertised price of 8 ounce cheese shreds was $2.21, a decrease of 6 cents from last week, but up 13 cents from a year ago. Northeast region s weighted average advertised price for 8 ounce cheese blocks was $2.23, 1 cent below the U.S. average, with a regional price range of $1.67-$3.00. The average price for 8 oz. cheese shreds was $2.31, 10 cents above the national average, with prices ranging $1.88-$3.00. In the Southeast region, the average price for 8 oz. cheese blocks was $2.47, 23 cents above the average U.S. price, with a regional price range of $2.00-$2.50. The average price for 8 oz. shreds was $2.24, 3 cents above the U.S. average, with prices ranging $1.66- $3.00. CHEESE MARKETS WEST Cheese production in the West has remained active as milk availability is stronger and processors work on clearing some loads to cheese vats. Block and barrel cheese demands are both solid, keeping market prices at higher levels. Cheese demand from the international market is good due to favorable U.S. prices. In general, cheese inventories are copious. However, barrel cheese stocks are slightly longer than block cheese stocks. Industry participants are impatiently waiting for the grilling season, hoping that it will help increase cheese sales and relieve processors out of the pressure of having higher inventories. The DMN National Retail Report-Dairy for the week of April 27-May 3 shows the U.S. weighted average advertised retail price for an 8 ounce pack of natural shredded cheese is $2.21, down $.06 from last week. Packs average $2.03 in the Southwest and $1.89 in the Northwest. One year ago, the national price was $2.08. For 8 ounce blocks, the U.S. price is $2.24, up $.02 from last week. Blocks average $1.91 in the Southwest and $1.93 in the Northwest. One year ago, the national price was $2.01 unchanged wholesale prices are unchanged from the previous week. WHOLESALE SELLING PRICES: DELIVERED DOLLARS PER POUND(MIXED LOTS (1000-5000 POUNDS)) WHOLESALE SELLING PRICES: DELIVERED DOLLARS PER POUND(MIXED LOTS (1000-5000 POUNDS)) Cheddar 40 pound Block 2.0750-2.3600 Muenster 2.0600-2.4100 Process American 5 pound Sliced 1.6225-2.1025 Swiss 10-14 pound Cuts 3.0025-3.3250 MIDWEST The cheese market is quiet this week with a major dairy group meeting happening in Chicago. Contacts have been reporting an unstable market due to the gap between cheese block and barrel. However, Tuesday s CME activity narrowed the price gap into the single digit range. The cheese market tone still remains uncertain, despite the CME barrel price influx, as some contacts express concerns whether the uptick will stay after the event. Sales activity is reported as fair to slightly up. Cheese demand reports are generally unchanged. Although a number of cheese producers are starting to ease off the spot milk market, milk prices remain discounted, ranging from $1 to $3 under Class III. Midwestern wholesale prices are up $.0050 for process, but unchanged for Swiss Cuts and all other types. The DMN National Retail Report- Dairy shows that April 27-May 3 Midwest ads for 8 ounce shred cheese have a weighted average advertised price of $2.27, 6 cents above the national average. Midwest prices range from $1.67-$2.50. One year ago, the national price was $2.08. For 8 ounce blocks, the Midwest average price is $2.44, 20 cents above the national average price. Midwest ads are priced from $1.67-$2.99. Last year, the national price was $2.01. WISCONSIN WHOLESALE SELLING PRICES: DELIVERED DOLLARS PER POUND(MIXED LOTS (1000-5000 POUNDS)) Blue 5 pounds 2.2500-3.2375 Cheddar 40 pound Block 1.7100-2.1050 Monterey Jack 10 pounds 1.9575-2.1625 Mozzarella 5-6 pounds 1.7825-2.7225 Muenster 5 pounds 1.9825-2.4075 Process American 5 pound Loaf 1.5775-1.9375 Swiss 6-9 pound Cuts 2.5200-2.6375 Cheddar 10 pound Cuts 1.9225-2.1425 Cheddar 40 pound Block 1.7425-2.1875 Monterey Jack 10 pounds 1.9325-2.0925 Process American 5 pound Loaf 1.5650-1.8225 Swiss 6-9 pound Cuts 2.5800-3.0100 FOREIGN TYPE In the European Union (EU), cheese production is ongoing, following seasonal patterns. In general, cheese prices remain higher as demand continues to be stronger in Germany and some other regions of the EU, while supplies are lower. Nonetheless, the prices for a few types of cheese are lower compared to last month, but above last year's prices level. Mozzarella cheese has the tightest supplies. Expectations are that upcoming contractual prices will further increase as shown by current negotiations. EU cheese export sales are good. Overall, the market undertone is steady. In the United States, the prices for all cheese types have not changed from a week ago. WHOLESALE SELLING PRICES: FOB DISTRIBUTORS DOCK DOLLARS PER POUND (1000-5000 POUNDS, MIXED LOTS) : NEW YORK VARIETY : IMPORTED : DOMESTIC : : Blue : 2.6400-5.2300 : 2.1275-3.6150 Gorgonzola : 3.6900-5.7400 : 2.6350-3.3525 Parmesan (Italy) : -0- : 3.5175-5.6075 Romano (Cows Milk) : -0- : 3.3175-5.4675 Sardo Romano (Argentine) : 2.8500-4.7800 : -0- Reggianito (Argentine) : 3.2900-4.7800 : -0- Jarlsberg-(Brand) : 2.9500-6.4500 : -0- Swiss Cuts Switzerland : -0- : 3.0400-3.3625 Swiss Cuts Finnish : 2.6700-2.9300 : -0- * = change. Secondary Sourced Information: In CME Group trading Wednesday, barrels closed at $1.6025, compared to $1.4825 last Wednesday.

DAIRY MARKET NEWS, APRIL 30 - MAY 4, 2018-4- VOLUME 85, REPORT 18 EAST FLUID MILK AND CREAM WEST Milk production in the Northeast is steady to somewhat flat. With temperatures currently fluctuating, many market participants are seeing lower feed quality. Balancing plants are running at or near full capacity, however there are reports of lower milk volumes clearing into Class IV. Cream salvage is happening in some areas. Mid- Atlantic milk production is slightly inching up, but reports show milk volumes were higher at this time last year. Some operations report they are not receiving as much milk as they need for production. Yet, some market participants report some balancing operations are running near full capacity. Southeast milk production has had a slight decline in production in some areas. Market participants report seasonality effects and lower milk prices could be factors in the decrease in production. Class I sales are somewhat lower. However, any manufacturers report bottling orders are taking the majority of milk loads and not much milk is clearing into manufacturing. Cream is fairly available with multiples are ranging around 1.15-1.26. Some manufacturers are content with cream prices and would rather sell their cream as production needs are being met. Condensed skim market conditions are pretty steady, as loads are and being hauled to other regions at a discount as supply is aplenty. According to the DMN National Retail Report-Dairy, for the period of April 27-May 3, 2018, the U.S. weighted average advertised price for the half gallon pack size milk was $1.83, up 28 cents compared to last week, but down 31 cents from last year. The Northeast region's weighted average advertised price for the 48-64oz ice cream was $2.78, $0.34 cents below the U.S. average, with prices ranging $1.99- $3.99. NORTHEASTERN U.S., F.O.B. CONDENSED SKIM - Class II; $/LB Solids: 0.50-0.81 - Class III; $/LB Solids: 0.55-0.86 NORTHEASTERN U.S., F.O.B. CREAM Multiples - All Classes: 1.1500-1.2600 - Class II; $/LB Butterfat: 2.7163-2.9761 MIDWEST Fluid milk output is edging up as spring weather, although later than some farmers would have preferred, is gracing the north central region. In some areas of the upper Midwest, field preparations have begun. That said, some contacts in northern edges of Wisconsin and in Minnesota report persistent ice remains on some ponds and lakes, hence planting has yet to commence in those areas. Cheese producers continue to report that spot milk is discounted, but low prices are beginning to ebb somewhat. Cream is assuredly showing signs of firmness, as cream prices are edging up. Contacts point to the increased temperatures, which have unsurprisingly spurred on ice cream production. Cream buyers in the Midwest are also suggesting loads coming from the West are not as accessible recently. The DMN National Retail Report-Dairy for April 27-May 3 noted the national weighted average advertised price for one gallon of milk was $2.14, down 28 cents from last week, and 22 cents lower than a year ago. The weighted average regional prices in the Midwest and South Central were $3.69 and $2.65, respectively. MIDWESTERN U.S., F.O.B. CREAM Multiples - All Classes: 1.1700-1.2600 Multiples - Class II: 1.2100-1.2600 - Class II; $/LB Butterfat: 2.8580-2.9761 California farm milk is following a steady to downward production outline this week. Milk is being processed through the different Classes as scheduled. Class 1 sales are steady, as is common for this time of the year. According to some contacts, more milk has moved to Class IV production since the beginning of this year due to equipment repair issues at some Class III manufacturing plants. Some loads of milk are finding homes in neighboring plants and out-of-state as certain manufacturers adjust their production schedules to take care of equipment issues. Milk production in Arizona has remained strong although total output levels are slowly decreasing. Weather conditions have been generally warmer in the past weeks. Milk processing is going smoothly for many manufacturers as they are less pressured to find additional processing capacities. Milk supplies are adequate to meet current buyers' needs and remain manageable. Class I demand is steady. Overall, the market tone is steady. In New Mexico, milk yield has increased. The state is currently transitioning to the summer. Weather conditions are conforming with seasonal norms and are not a factor. The minor equipment issues some plants were facing last week have been taken care of, so they are back to running at normal schedules. Milk holdovers are a little high, but are expected to decrease before the end of the week. Class I, II and III intakes are all up this week. Pacific Northwest milk production is following expected seasonal patterns with no significant disruptions to output or distribution. Manufacturers report intakes are in good balance with processing needs and bottling demand is steady. Milk production in the mountain states of Idaho, Utah and Colorado remains strong. Industry contacts report that in the southern part of the region, milk intakes are in good balance with very few handling issues. In the Northern part of the region, milk receipts may be in good balance one day, but heavy the next. The limited processing capacity and strong production makes the region susceptible to having excess milk due to the occasional hiccup with individual processors. Western condensed skim output is higher and clearing mostly to nonfat dry milk. Supplies are abundant. Western cream inventories are unchanged from a week ago. Cream demand for higher Class utilization is steady. Therefore, cream continues to find its way to the churns. Cream multiples for all Classes are 1.04 to 1.27. According to the DMN National Retail Report-Dairy for the week of April 27-May 3, the national weighted average advertised price for one gallon of milk is $2.14, down $0.28 from last week, and down $0.22 from a year ago. This week, there were no advertised prices reported in the Southwest. The weighted average regional price in the Northwest is $1.39. WESTERN U.S., F.O.B. CREAM Multiples - All Classes: 1.0400-1.2700 Secondary Sourced Information: According to the California Department of Food and Agriculture, the April 4a price (butter/powder) in California is $13.29, up $0.28 from the previous month, but $0.44 lower from a year ago. This compares to the Federal Order Class IV price of $13.48 for April. The April 4b price (cheese) is $14.27, up $0.31 from the previous month, but $0.03 lower from a year ago. This compares to the Federal Order Class III price for April at $14.47. According to California Department of Food and Agriculture, March 2018 Class 1 sales in California totaled 53.2 million gallons, up 12.7 percent from last month, but down 2.0 percent from the previous year. From January through March 2018, Class 1 sales totaled 153.2 million gallons, down 3.0 percent from the comparable period in 2017.

DAIRY MARKET NEWS, APRIL 30 - MAY 4, 2018-5- VOLUME 85, REPORT 18 NONFAT DRY MILK, BUTTERMILK & WHOLE MILK s represent carlot/trucklot quantities for domestic and export sales packaged in 25 kg. or 50 lb. bags, or totes, spray process, dollars per pound. NONFAT DRY MILK - CENTRAL AND EAST CENTRAL: Low/medium nonfat dry milk prices in the Central region are steady to higher, based on many buyers purchasing at increased prices this week. Some market participants are flabbergasted at the sudden change in market conditions. Moreover, there are buyers who will not purchase at this time and will wait to see where prices go. Production is fairly steady and inventories are stable, however many manufacturers report not having many spot loads available to offer as the majority of their loads are contracted. High heat NDM prices are unchanged due to a tight spot market. Manufacturers communicate inventories are limited and production schedules are short. The market tone for NDM is steady to firmer. EAST: Spot prices for East region nonfat dry milk (NDM) are higher as the previous week s numbers adjusted on the top of the range pricing series and through the mostly series. Trading in the region eased a little compared to last week as buyers/sellers gathered at an annual dry product forum this week. Market participants note several factors, both domestic and global, having impacts on upbeat NDM prices. However, some sources view the upward trend as a very short bubble. NDM production rates are advancing as the spring flush finally moves toward peak milk production in the East. In some cases, NDM producers appear to be sold out of powder, as existing orders exceed capacity. As a result, spot offerings (new product) are limited as demand surpasses supply. The market undertone for high heat NDM pricing is steady this week. The market is seeing spot offers well above the current price range, with no takers. Most committed accounts are provided for. 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:.6800 -.8700 Mostly - Low & Medium Heat; $/LB:.7550 -.8200 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:.8500 -.9800 Secondary Sourced Information: Wednesday at the CME Group, Grade A NDM closed at $0.8200, unchanged from last Wednesday. NONFAT DRY MILK - WEST This week in the West region, f.o.b. spot prices for low/medium heat nonfat dry milk (NDM) adjusted higher on light to moderate trading. Why are spot prices for low/medium heat NDM increasing when supplies are plentiful, especially now, during the spring flush? That is one of the main questions for many participants of the dairy industry. However, possible answers to that question vary, as described by many contacts. For example, some manufacturers think that the regional prices for NDM remain below the international SMP values, thus the international interest for NDM is improving. However, with the exception of the main dairy export countries in the southern hemisphere, the European prices for SMP are mostly in line with the regional NDM values. Meanwhile, some manufacturers say that demand for NDM from recent production is strong, but most of the inventories are committed thru Q3/Q4 future contracts, pushing up NDM prices in the spot market. Meanwhile, low/medium heat production is ongoing, prompted by strong regional milk outputs. For several market participants, the recen European Union could affect NDM/SMP exports from the western U.S. to this country. Mexico now has more options to buy NDM/SMP in the international markets, especially from the E.U. and Canada. Back to the U.S., western f.o.b. prices for high heat NDM are steady to higher, in line with low/medium heat NDM values. Sales activity outside contracts is light. Production is sporadic based on filling nearterm contractual obligations. Inventories are slightly tight in the spot market. 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:.7500 -.8675 Mostly - Low & Medium Heat; $/LB:.7500 -.8300 s for: Western U.S., All First Sales, F.O.B., Extra Grade & Grade A, Conventional, and Edible Nonfat Dry Milk - High Heat; $/LB:.9000-1.0300 CALIFORNIA MANUFACTURING PLANTS - NONFAT DRY MILK WEEK ENDING PRICE TOTAL SALES April 27 $.7236 19,171,500 April 20 $.7042 17,495,461 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: s for Central dry buttermilk are unchanged, as buyers are purchasing spot loads within the range this week. Production is currently limited, as other powders are taking up the majority of drying time. With nonfat dry milk market conditions firming and butterfat demand increasing, many market participants report the dry buttermilk market is showing signs of strength. EAST: Eastern dry buttermilk spot market prices continue to boast a firm undertone with limited trading occurring near the top of the price range. Production is steady to lower, aligned with active condensed buttermilk movement amidst scarce dryer capacity and upticks in seasonal ice cream condensed buttermilk interest. Dry buttermilk stocks are mixed, tight to adequate, while a few loads can be located for the occasional to fair spot demand. s for: Eastern and Central U.S., All First Sales, F.O.B., Conventional, and Edible Buttermilk ; $/LB:.6700 -.7900 DRY BUTTERMILK - WEST This week, dry buttermilk free on board spot prices in the West region remain unchanged on the range. However, prices are steady to higher on the mostly series, tailing NDM upward price movements. Dry buttermilk spot trading is light as the bulk of sales is based on contractual agreements. Demands for condensed buttermilk from ice cream makers and other Class II processors are improving. Accordingly, -CONTINUED ON PAGE 5A-

DAIRY MARKET NEWS, APRIL 30 - MAY 4, 2018-5A- VOLUME 85, REPORT 18 NONFAT DRY MILK, BUTTERMILK & WHOLE MILK s represent carlot/trucklot quantities for domestic and export sales packaged in 25 kg. or 50 lb. bags, or totes, spray process, dollars per pound. -CONTINUED FROM PAGE 5- been irregular in some balancing plants. In this way, dry buttermilk inventories are mostly in balance with contractual needs, but slightly tight in the spot market. Dry buttermilk requests from the bakery and confectionary sectors are fair to good. s for: Western U.S., All First Sales, F.O.B., Conventional, and Edible Buttermilk ; $/LB:.6800 -.7800 Mostly - ; $/LB:.7000 -.7700 DRY WHOLE MILK - NATIONAL F.O.B. spot prices for national dry whole milk shifted up, tailing international upward WMP price trends. The national demand for dry whole milk looks to be fair/good, but supplies are limited in the spot market. Production is uneven as several processors are focusing on clearing large condensed skim volumes instead of condensed whole milk. According to several industry participants, the market tone is steadily firming. s for: U.S., All First Sales, F.O.B., Conventional, and Edible Dry Whole Milk - 26% Butterfat; $/LB: 1.4500-1.6000

-6- DAIRY MARKET NEWS, APRIL 30 MAY 4, 2018 VOLUME 85, REPORT 18 WHEY, WPC 34%, LACTOSE & CASEIN s represent carlot/trucklot quantities for domestic and export sales packaged in 25 kg. or 50 lb. bags, or totes, spray process, dollars per pound. DRY WHEY CENTRAL The Central dry whey market stayed steady on the range and the mostly price series after a quiet week of activity. However, the whey closing price inched up slightly on Wednesday s CME trading. The whey market activity is steady. Whey inventories are balanced to decreasing. Contacts report whey supplies are tightening up, making it harder to find, with some resorting to permeate. Whey production is steady. Feed whey prices remain unchanged. s for: Central U.S., All First Sales, F.O.B., Conventional, and Edible Dry Whey - Animal Feed; $/LB:.1800 -.2300 s for: Central U.S., All First Sales, F.O.B., Extra Grade & Grade A, Conventional, and Edible Dry Whey - Non-Hygroscopic; $/LB:.2250 -.3500 Mostly - Non-Hygroscopic; $/LB:.2250 -.2750 DRY WHEY WEST F.O.B prices for western dry whey are steady on both the range and the mostly price series. There is some uncertainty about whether dry whey prices will increase in the weeks to come. However, as of now, the market undertone seems to be firming. Some industry participants report that dry whey is hard to find in some parts of the West. They believe that increased trading activities could be the reason behind the tightening in supplies. Nonetheless, according to other contacts, dry whey stocks in the Northwest are abundant. Overall, dry whey demand has increased in both the international and domestic markets. Production is active as more cheese is being manufactured. s for: Western U.S., All First Sales, F.O.B., Extra Grade & Grade A, Conventional, and Edible Dry Whey - Non-Hygroscopic; $/LB:.2300 -.3300 Mostly - Non-Hygroscopic; $/LB:.2500 -.3100 DRY WHEY NORTHEAST Northeast dry whey prices are steady to a tad higher this week. The demand is fairly steady compared to recent weeks, and many market participants report seeing more interest happening in the near future. Dry whey production is steady, however supplies are somewhat mixed. Some manufacturers have limited inventories and are not offering many spot loads. The market tone is steady to firm. s for: Eastern U.S., All First Sales, F.O.B., Extra Grade & Grade A, Conventional, and Edible Dry Whey - Non-Hygroscopic; $/LB:.2500 -.3000 WHEY PROTEIN CONCENTRATE CENTRAL AND WEST Whey protein concentrate 34% prices remained mostly unchanged. However, a few manufacturers reported slightly higher spot sale prices, pushing the top of the mostly price series up a step. Much of the industry attended a major dairy industry association meeting this week. Industry sentiment was mixed. While some manufacturers continue to suggest the weight of the upper whey protein complex is putting pressure on the market, others report they continue to see strong demand and stable market conditions. In addition, a few contacts say they have seen a very slight improvement in WPC34% prices with the recent run-up of nonfat dry milk prices. Inventories remain committed for favored WPC34% brands, but more available for WPC34% that has plenty of substitutes. s for: Central and Western U.S., All First Sales, F.O.B., Extra Grade, Conventional, and Edible Whey Protein Concentrate - 34% Protein; $/LB:.5900 -.9400 Mostly - 34% Protein; $/LB:.6800 -.7600 LACTOSE CENTRAL AND WEST Lactose prices are generally steady aside from the top of the mostly price series moving higher. A few transactions remain at the lower end of the price range, but some manufacturers report the prices they are getting are slowly rising. Demand and production appear to be steady. Some manufacturers report numerous buyer inquiries fill their inbox and cause the phone to ring, especially for infant formula lactose suppliers. Buyers seem willing to explore opportunities to contract early for Q3 and Q4 business. Inventories range from comfortable to highly committed. At the GDT Event 211 on May 1, the lactose price for the July contract period was $0.2794 per pound, up 0.6 percent. The U.S. Lactose pool average July contract price was $0.1914. s for: Central and Western U.S., Spot Sales And Up 3 Month Contracts, F.O.B., Conventional, and Edible Lactose - Non Pharmaceutical; $/LB:.1900 -.3900 Mostly - Non Pharmaceutical; $/LB:.2200 -.2800 CASEIN Casein prices are lower, both rennet and acid. The market is working to reflect the varied production schedules and seasons in the EU and New Zealand, the two primary producing areas. Most, and perhaps all, casein production in Oceania has ended for the season. What casein has been made has generally already been committed. In the EU, with seasonal milk production increases recently slowed by weather factors, casein production also slowed. That led some casein buyers to become nervous about what the seasonal output would be in the EU. That concern led to accelerated purchasing in recent weeks to be assured of having casein in stock. Some observers believe that factor had resulted in stronger recent casein prices than the longer term will sustain. This week s lower prices are viewed in that focus, as adjusting back to more sustainable pricing, now factoring in resumed EU casein production schedules. s for: Spot Sales And Up 3 Month Contracts, Free on Board - Warehouse, Non- Restricted, All Mesh Sizes, Conventional, and Edible Casein Acid; - $/LB: 2.9500-3.2100 Rennet; - $/LB: 2.3200-2.6900 Secondary Sourced Information: At GDT event 211 on May 1, 2018, the all contracts rennet casein price declined 10.5 percent and the June contract declined 11.6 percent. Some New Zealand observers characterize the volumes of casein sold as very small, possibly exaggerating the results.

DAIRY MARKET NEWS, APRIL 30 MAY 4, 2018-7- VOLUME 85, REPORT 18 U.S. Dairy Cow Slaughter (1000 head) under Federal Inspection 2018 WEEKLY 2018 2017 WEEKLY 2017 WEEK ENDING DAIRY COWS CUMULATIVE DAIRY COWS DAIRY COWS CUMULATIVE DAIRY COWS 04/14/2018 61.4 960.2 54.1 909.5 WEBSITE: http://www.ams.usda.gov/mnreports/sj_ls714.txt 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 2013 18.14 17.25 16.93 17.59 18.52 18.02 17.38 17.91 18.14 18.22 18.83 18.95 2014 21.15 23.35 23.33 24.31 22.57 21.36 21.60 22.25 24.60 23.82 21.94 17.82 2015 16.18 15.46 15.56 15.81 16.19 16.72 16.33 16.27 15.82 15.46 15.30 14.44 2016 13.72 13.80 13.74 13.63 12.76 13.22 15.24 16.91 16.39 14.82 16.76 17.40 2017 16.77 16.88 15.81 15.22 15.57 16.44 15.45 16.57 16.36 16.69 16.88 15.44 CLASS IV MILK PRCES (3.5% Butterfat) YEAR JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC 2013 17.63 17.75 17.75 18.10 18.89 18.88 18.90 19.07 19.43 20.17 20.52 21.54 2014 22.29 23.46 23.66 23.34 22.65 23.13 23.78 23.89 22.58 21.35 18.21 16.70 2015 13.23 13.82 13.80 13.51 13.91 13.90 13.15 12.90 15.08 16.43 16.89 15.52 2016 13.31 13.49 12.74 12.68 13.09 13.77 14.84 14.65 14.25 13.66 13.76 14.97 2017 16.19 15.59 14.32 14.01 14.49 15.89 16.60 16.61 15.86 14.85 13.99 13.51 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/ 15.44 14.25 13.36 14.10 14.44 II 14.11 13.44 13.88 14.03 III 14.00 13.40 14.22 14.47 IV 13.13 12.87 13.04 13.48 1/ S3p03ific order differentials to be added to this base price can be found by going to: www.ams.usda.gov/dairymarketingstatistics; then select s ; and then select Principal Pricing Points. $18.00 Class I 2016 2017 2018 $18.00 Class II 2016 2017 2018 $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 2016 2017 2018 $17.00 Class IV 2016 2017 2018 $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

DAIRY MARKET NEWS, APRIL 30 - MAY 4, 2018-8- VOLUME 85, REPORT 18 ORGANIC DAIRY MARKET NEWS Information gathered April 23 - May 4, 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 pooled plants. During March 2018, organic whole milk utilization totaled 16.7 million pounds, up from the 16.3 million pounds one year earlier. The butterfat content for March 2018 was 3.28 percent, level with March 2017. Organic reduced fat milk utilization for March 2018, 20.3 million pounds, was down from 23.1 million pounds one year earlier. Butterfat this March was 1.33 percent, up from 1.25 percent in March 2017. Organic Cream and Butter Markets. There has been much discussion over the last year and longer about what is often viewed as more U.S. organic milk production than processors/ markets can absorb. It is well commented on that this has resulted in some processors imposing various measures, such as quotas, on organic dairy producers. Few organic processors are adding new producers. Organic pay prices have suffered. Less commented on is the paradoxical tightness of available and efficiently useable organic cream supplies coexisting with more organic milk than is needed. The organic cream tightness is making it harder to meet organic butter demand, which remains strong. Some national food retailers carrying store and non-store brands of organic butter note that customer demand for both remains strong, even when prices creep up from time to time inelastic demand. These retailers believe that one pound organic butter prices in or near the $5.00 range are generally accepted by regular customers of organic butter. Some retailers are kept stressed and focused on sourcing organic butter to assure that coolers are stocked, even as some volumes of organic milk (and the organic cream) are sold into conventional milk markets. A frustration in this regard, is the fact that in many locations around the country, organic cream is not always able to be efficiently separated from organic milk to churn butter, because available volumes are too low to be efficient. This results in the sad outcome of organic cream being tight on a national basis and being sold into conventional markets at conventional prices in numerous locations. Other times, the volumes of organic cream available in an area are not sufficiently proximate to a plant already producing organic butter, or products using organic cream. In some cases, national retailers already operate dairy plants making various dairy products and are capitalized sufficiently that adding a new butter churn could be handled financially. However, the uncertainty of where to locate a plant with enough assurance of a stable and sufficient supply of organic cream is the obstacle. This leaves frustrated organic dairy producers and frustrated retailers with the reach and distribution network sufficient to supply very large numbers of consumers. Increasingly, manufacturers of organic butter, in particular, are more willing and inclined to source organic cream supplies further afield than ideal when they have reasonable assurance of continued and timely shipping, in order to maintain organic churn efficiencies and schedules. That being said, a common lament is inadequate location based organic milk production and utilization information which would help with organic butter or dairy product plant expansion decisions. That in turn, would also benefit organic dairy producers by expanding sales of organic milk at organic pay prices. Monthly Retail Organic Milk Comparison for Twenty Nine U.S. Cities. The April 2018 monthly in store survey of supermarkets in twenty-nine U.S. cities, as to pricing of organic whole milk in half gallon containers, reveals that prices range from $3.14 in Houston, to $5.39 in Pittsburgh. ORGANIC GRAIN AND FEEDSTUFF MARKETS. This week, trading is active on good demand for feed grade corn, with the bulk of activity involving new crop contracts. Feed corn traded $1.48 higher, with premiums due in part to short positions. Feed grade soybean is exchanging moderately on good demand. There were no comparable trades from the prior period to trend, but a firm undertone is noted. Trade activity and demand for soybean meal is moderate, and trading somewhat higher. Transactions were inactive on all other organic grains. ORGANIC DAIRY RETAIL OVERVIEW This week, total organic retail ad numbers increased 82 percent. The surge was propelled by organic milk half gallon containers, whose volume was nearly 4 times as great as the previous week. Retail ads for organic butter grew 185 percent, while organic yogurt ads declined 66 percent. The organic retail milk price premium, representing the price difference between half gallons of organic and conventional milk, is $1.88, a decrease of $0.20 compared to the previous week. The weekly percentages of advertised organic dairy products, collected from the DMN weekly retail survey, are presented in the following pie chart. To view all the image, please go to the PDF version of this report using the following link. https:// www.ams.usda.gov/mnreports/dybdairyorganic.pdf CONTINUED ON PAGE 8A-

DAIRY MARKET NEWS, APRIL 30 - MAY 4, 2018-8A- VOLUME 85, REPORT 18 ORGANIC DAIRY MARKET NEWS Information gathered April 23 - May 4, 2018 CONTINUED FROM PAGE 8- Data source: USDA Dairy Market News Advertising information presented is compiled from nearly 23,000 surveyed newspaper supermarket ads. s are valid from May 4-10, 2018. Retail survey ads reflect advertised specials and not the range of non-advertised supermarket cooler prices. 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 5.81 5.49 5.70 Milk Half Gal. 3.85 3.91 3.48 Gal. 5.85 6.32 5.82 8 oz. n.a. n.a. 1.00 Yogurt 4-6 oz. Greek n.a. 1.00 1.22 32 oz. Greek n.a. 2.99 n.a. 4-6 oz. Yogurt 1.06.61 1.00 32 oz. Yogurt 3.00 3.64 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/ https://www.ams.usda.gov/mnreports/dybretail.pdf https://www.ams.usda.gov/mnreports/lswnos.pdf

DAIRY MARKET NEWS, APRIL 30 - MAY 4, 2018-9- VOLUME 85, REPORT 18 DAIRY MARKET NEWS DOMESTIC MONTHLY SUMMARY AND AVERAGES FOR APRIL 2018 1 - (UNLESS OTHERWISE NOTED, PRICES ARE DOLLARS PER POUND, CL/TL) ::REPORT NUMBER 14 ::REPORT NUMBER 15 ::REPORT NUMBER 16 ::REPORT NUMBER 17 ::REPORT NUMBER 18 :: 2018 : 2017 COMMODITY ::-----------------::-----------------::-----------------::-----------------::-----------------:: Monthly : Monthly :: APR 2-6 :: APR 9-13 :: APR 16-20 :: APR 23-27 :: APR 30 :: Average : Average CHEESE WISCONSIN (WSP, Delivered, LTL) -- Process American 5# Loaf :: 1.5725-1.9325 :: 1.5400-1.9000 :: 1.5625-1.9225 :: 1.5725-1.9325 :: 1.5775-1.9375 :: 1.7426 : 1.7013 -- Brick And/Or Muenster 5# :: 1.9000-2.3250 :: 1.9200-2.3450 :: 1.9825-2.4075 :: 1.9825-2.4075 :: 1.9825-2.4075 :: 2.1605 : 2.0594 -- Cheddar 40# Block :: 1.6275-2.0225 :: 1.6475-2.0425 :: 1.7100-2.1050 :: 1.7100-2.1050 :: 1.7100-2.1050 :: 1.8730 : 1.7719 -- Monterey Jack 10# :: 1.8750-2.0800 :: 1.8950-2.1000 :: 1.9575-2.1625 :: 1.9575-2.1625 :: 1.9575-2.1625 :: 2.0255 : 1.9244 -- Blue 5# :: 2.1675-3.1550 :: 2.1875-3.1750 :: 2.2500-3.2375 :: 2.2500-3.2375 :: 2.2500-3.2375 :: 2.7092 : 2.6081 -- Mozzarella 5-6# :: 1.7000-2.6400 :: 1.7200-2.6600 :: 1.7825-2.7225 :: 1.7825-2.7225 :: 1.7825-2.7225 :: 2.2180 : 2.1169 -- Grade A Swiss Cuts 6-9# :: 2.6800-2.7975 :: 2.5200-2.6375 :: 2.5200-2.6375 :: 2.5200-2.6375 :: 2.5200-2.6375 :: 2.6168 : 2.9038 NORTHEAST (WSP, Delivered, LTL) -- Cheddar 40# Block :: 1.9925-2.2775 :: 2.0125-2.2975 :: 2.0750-2.3600 :: 2.0750-2.3600 :: 2.0750-2.3600 :: 2.1830 : 2.0844 -- Process 5# Sliced :: 1.6175-2.0975 :: 1.5850-2.0650 :: 1.6075-2.0875 :: 1.6175-2.0975 :: 1.6225-2.1025 :: 1.8476 : 1.8038 -- Muenster :: 1.9775-2.3275 :: 1.9975-2.3475 :: 2.0600-2.4100 :: 2.0600-2.4100 :: 2.0600-2.4100 :: 2.2005 : 2.1019 -- Grade A Swiss Cuts 10-14# :: 3.1625-3.4850 :: 3.0025-3.3250 :: 3.0025-3.3250 :: 3.0025-3.3250 :: 3.0025-3.3250 :: 3.2018 : 3.4888 WEST COAST (WSP, Delivered, LTL) -- Process 5# Loaf :: 1.5600-1.8175 :: 1.5275-1.7850 :: 1.5500-1.8075 :: 1.5600-1.8175 :: 1.5650-1.8225 :: 1.6789 : 1.6375 -- Cheddar 40# Block :: 1.6600-2.1050 :: 1.6800-2.1250 :: 1.7425-2.1875 :: 1.7425-2.1875 :: 1.7425-2.1875 :: 1.9305 : 1.8294 -- Cheddar 10# Cuts :: 1.8400-2.0600 :: 1.8600-2.0800 :: 1.9225-2.1425 :: 1.9225-2.1425 :: 1.9225-2.1425 :: 1.9980 : 1.8969 -- Monterey Jack 10# :: 1.8500-2.0100 :: 1.8700-2.0300 :: 1.9325-2.0925 :: 1.9325-2.0925 :: 1.9325-2.0925 :: 1.9780 : 1.8769 -- Grade A Swiss Cuts 6-9# :: 2.7400-3.1700 :: 2.5800-3.0100 :: 2.5800-3.0100 :: 2.5800-3.0100 :: 2.5800-3.0100 :: 2.8331 : 3.1200 FLUID PRODUCTS SPOT PRICES OF CLASS II CREAM ($ per lb. butterfat) -- Northeast - f.o.b :: 2.5185-2.7594 :: 2.6606-2.8652 :: 2.6559-2.9100 :: 2.6467-2.8769 :: 2.7163-2.9761 :: 2.7419 : 2.4007 -- Upper Midwest - f.o.b :: 2.6280-2.7594 :: 2.7288-2.8425 :: 2.7714-2.9010 :: 2.7618-2.8769 :: 2.8580-2.9761 :: 2.7901 : 2.4615 PRICES OF CONDENSED SKIM - NORTHEAST ($ per lb. wet solids) - f.o.b. -- Class II :: 0.50-0.80 :: 0.50-0.80 :: 0.50-0.80 :: 0.50-0.81 :: 0.50-0.81 :: 0.6514 : 0.5850 -- Class III :: 0.55-0.85 :: 0.55-0.86 :: 0.55-0.86 :: 0.55-0.86 :: 0.55-0.86 :: 0.7038 : 0.6275

DAIRY MARKET NEWS, APRIL 30 - MAY 4, 2018-10- VOLUME 85, REPORT 18 DAIRY MARKET NEWS DOMESTIC MONTHLY SUMMARY AND AVERAGES FOR APRIL 2018 1 - (UNLESS OTHERWISE NOTED, PRICES ARE DOLLARS PER POUND, CL/TL) ::REPORT NUMBER 14 ::REPORT NUMBER 15 ::REPORT NUMBER 16 ::REPORT NUMBER 17 ::REPORT NUMBER 18 :: 2018 : 2017 COMMODITY ::-----------------::-----------------::-----------------::-----------------::-----------------:: Monthly : Monthly :: APR 2-6 :: APR 9-13 :: APR 16-20 :: APR 23-27 :: APR 30 :: Average : Average DRY PRODUCTS NONFAT DRY MILK -- Central And East (f.o.b.) -- Low/Medium Heat :: 0.6800-0.7550 :: 0.6800-0.7500 :: 0.6800-0.7850 :: 0.6800-0.8500 :: 0.6800-0.8700 :: 0.7345 : 0.8450 -- Mostly :: 0.7000-0.7400 :: 0.7000-0.7400 :: 0.7000-0.7400 :: 0.7300-0.7850 :: 0.7550-0.8200 :: 0.7321 : 0.8363 -- High Heat :: 0.8200-0.9800 :: 0.8200-0.9800 :: 0.8200-0.9800 :: 0.8500-0.9800 :: 0.8500-0.9800 :: 0.9043 : 0.9863 -- West (f.o.b) -- Low/Medium Heat :: 0.6500-0.7600 :: 0.6800-0.7700 :: 0.6800-0.7700 :: 0.7300-0.8500 :: 0.7500-0.8675 :: 0.7397 : 0.8263 -- Mostly :: 0.6900-0.7300 :: 0.7000-0.7300 :: 0.7200-0.7500 :: 0.7300-0.8250 :: 0.7500-0.8300 :: 0.7370 : 0.8325 -- High Heat :: 0.8500-0.9300 :: 0.8500-0.9400 :: 0.9000-1.0000 :: 0.9000-1.0000 :: 0.9000-1.0300 :: 0.9233 : 0.9772 WHEY POWDER (Nonhygroscopic) -- Central (f.o.b.) :: 0.2000-0.3100 :: 0.2100-0.3100 :: 0.2150-0.3100 :: 0.2250-0.3500 :: 0.2250-0.3500 :: 0.2673 : 0.4938 -- Mostly :: 0.2150-0.2650 :: 0.2150-0.2600 :: 0.2200-0.2700 :: 0.2250-0.2750 :: 0.2250-0.2750 :: 0.2435 : 0.4900 -- West (f.o.b.) :: 0.2200-0.3200 :: 0.2200-0.3225 :: 0.2300-0.3225 :: 0.2300-0.3300 :: 0.2300-0.3300 :: 0.2746 : 0.5050 -- Mostly :: 0.2350-0.2875 :: 0.2400-0.2875 :: 0.2400-0.2875 :: 0.2500-0.3100 :: 0.2500-0.3100 :: 0.2678 : 0.4925 -- Northeast (f.o.b.) :: 0.2500-0.2950 :: 0.2500-0.2900 :: 0.2500-0.2900 :: 0.2500-0.2925 :: 0.2500-0.3000 :: 0.2711 : 0.4966 WHEY PROTEIN CONCENTRATE -- Central And West (f.o.b.) -- Extra Grade 34% Protein :: 0.5900-0.9400 :: 0.6200-0.9400 :: 0.5900-0.9400 :: 0.5900-0.9400 :: 0.5900-0.9400 :: 0.7686 : 0.9900 -- Mostly :: 0.6250-0.7500 :: 0.6400-0.7500 :: 0.6500-0.7700 :: 0.6800-0.7500 :: 0.6800-0.7600 :: 0.7027 : 0.9425 ANIMAL FEED - WHEY -- Central (f.o.b.) -- Milk Replacer :: 0.1500-0.2200 :: 0.1500-0.2200 :: 0.1500-0.2200 :: 0.1800-0.2300 :: 0.1800-0.2300 :: 0.1907 : 0.3900 BUTTERMILK (Min. 30% protein) -- Central And East (f.o.b.) :: 0.6800-0.7650 :: 0.6800-0.7650 :: 0.6800-0.7900 :: 0.6700-0.7900 :: 0.6700-0.7900 :: 0.7276 : 0.8713 -- West (f.o.b.) :: 0.6800-0.7800 :: 0.6800-0.7800 :: 0.6800-0.7800 :: 0.6800-0.7800 :: 0.6800-0.7800 :: 0.7300 : 0.8500 -- Mostly :: 0.6800-0.7300 :: 0.6800-0.7300 :: 0.6800-0.7500 :: 0.7000-0.7500 :: 0.7000-0.7700 :: 0.7136 : 0.8425 DRY WHOLE MILK -- National (f.o.b.) :: 1.4400-1.5000 :: 1.4400-1.5500 :: 1.4400-1.5500 :: 1.4400-1.5500 :: 1.4500-1.6000 :: 1.4905 : 1.4338 LACTOSE -- Central And West (f.o.b.) :: 0.1650-0.3900 :: 0.1750-0.3900 :: 0.1800-0.3900 :: 0.1900-0.3900 :: 0.1900-0.3900 :: 0.2840 : 0.4213 -- Mostly :: 0.2000-0.2600 :: 0.2000-0.2600 :: 0.2000-0.2600 :: 0.2200-0.2600 :: 0.2200-0.2800 :: 0.2333 : 0.4038 CASEIN - Edible - National (f.o.b.) -- Nonrestricted - Rennet :: 2.3500-2.7000 :: 2.5000-2.7500 :: 2.6000-2.7600 :: 2.6500-2.7600 :: 2.3200-2.6900 :: 2.6276 : 2.9494 -- Nonrestricted - Acid :: 2.9500-3.2000 :: 2.9800-3.2200 :: 2.9900-3.2400 :: 2.9900-3.2400 :: 2.9500-3.2100 :: 3.1002 : 3.5875 --------------------------------------------------------------------------------------------------------------------------------------------------------- 1 s for all products are issued once a week and represent a value for the entire week. Monthly averages are based on weekly prices and are time-weighted according to the number of workdays in the month - Saturdays, Sundays and National Holidays excluded. No monthly average is computed if one or more weekly prices are missing.

DAIRY MARKET NEWS, APRIL 30 - MAY 4, 2018-11- VOLUME 85, REPORT 18 CME GROUP AVERAGES FOR APRIL 2018 ------------------------------------------------------------------------------------------------------------------------------------ ::REPORT NUMBER 14::REPORT NUMBER 15::REPORT NUMBER 16::REPORT NUMBER 17::REPORT NUMBER 18:: 2018 * : 2017 * COMMODITY ::----------------::----------------::----------------::----------------::----------------:: Monthly : Monthly :: APR 2-6 :: APR 9-13 :: APR 16-20 :: APR 23-27 :: APR 30 :: Average : Average ------------------------------------------------------------------------------------------------------------------------------------ BUTTER* -- GRADE AA --Monday :: 2.2200 :: 2.3200 :: 2.2850 :: 2.3200 :: 2.3700 :: : --Tuesday :: 2.2400 :: 2.3200 :: 2.2925 :: 2.3750 :: :: : --Wednesday :: 2.3350 :: 2.3200 :: 2.3075 :: 2.3750 :: :: : --Thursday :: 2.2875 :: 2.3000 :: 2.3075 :: 2.3800 :: :: : --Friday :: 2.2875 :: 2.2875 :: 2.3150 :: 2.3600 :: :: 2.3145 : 2.0992 --Weekly Average** :: 2.2740 :: 2.3095 :: 2.3015 :: 2.3620 :: :: : CHEESE* -- BARRELS --Monday :: 1.4450 :: 1.4775 :: 1.4600 :: 1.4900 :: 1.4875 :: : --Tuesday :: 1.4450 :: 1.4775 :: 1.4800 :: 1.4875 :: :: : --Wednesday :: 1.4500 :: 1.4775 :: 1.4800 :: 1.4825 :: :: : --Thursday :: 1.4475 :: 1.4600 :: 1.4875 :: 1.4825 :: :: : --Friday :: 1.4500 :: 1.4600 :: 1.5000 :: 1.4875 :: :: 1.4721 : 1.4307 --Weekly Average** :: 1.4475 :: 1.4705 :: 1.4815 :: 1.4860 :: :: : -- 40# BLOCKS --Monday :: 1.5300 :: 1.6025 :: 1.6050 :: 1.6300 :: 1.6300 :: : --Tuesday :: 1.5500 :: 1.6400 :: 1.6300 :: 1.6275 :: :: : --Wednesday :: 1.5525 :: 1.6400 :: 1.6300 :: 1.6100 :: :: : --Thursday :: 1.5575 :: 1.6200 :: 1.6350 :: 1.6100 :: :: : --Friday :: 1.6025 :: 1.6050 :: 1.6025 :: 1.6200 :: :: 1.6062 : 1.4976 --Weekly Average** :: 1.5585 :: 1.6215 :: 1.6205 :: 1.6195 :: :: : NONFAT DRY MILK* -- GRADE A --Monday :: 0.6900 :: 0.7275 :: 0.7325 :: 0.8325 :: 0.8550 :: : --Tuesday :: 0.6900 :: 0.7350 :: 0.7700 :: 0.8200 :: :: : --Wednesday :: 0.7075 :: 0.7350 :: 0.7750 :: 0.8200 :: :: : --Thursday :: 0.7200 :: 0.7350 :: 0.7900 :: 0.8350 :: :: : --Friday :: 0.7275 :: 0.7325 :: 0.8050 :: 0.8425 :: :: 0.7656 : 0.8347 --Weekly Average** :: 0.7070 :: 0.7330 :: 0.7745 :: 0.8300 :: :: : WHEY* -- EXTRA GRADE --Monday :: 0.2800 :: 0.3100 :: 0.3050 :: 0.3150 :: 0.3100 :: : --Tuesday :: 0.2800 :: 0.3000 :: 0.3075 :: 0.3150 :: :: : --Wednesday :: 0.2800 :: 0.3050 :: 0.3075 :: 0.3075 :: :: : --Thursday :: 0.2850 :: 0.3050 :: 0.3075 :: 0.3100 :: :: : --Friday :: 0.3200 :: 0.3050 :: 0.3150 :: 0.3100 :: :: 0.3038 : --Weekly Average** :: 0.2890 :: 0.3050 :: 0.3085 :: 0.3115 :: :: : ------------------------------------------------------------------------------------------------------------------------------------ * Monthly averages are a simple average of all the closes during the month. Weekly and monthly averages are independent calculations. ** Weekly averages are simple averages of the closes during the calendar week and are for information purposes. Should the week be split between two months, the weekly average will appear in the monthly report in which the Friday close is reported.

DAIRY MARKET NEWS, APRIL 30 MAY 4, 2018-12- VOLUME 85, REPORT 18 March Agricultural s Highlights The All Milk price received by farmers was $15.60 in March, down $1.70 from March 2017. The alfalfa hay price was $166.00 in March, up $32.00 from Mach 2017. The corn price was $3.51 in March, up $0.02 from March 2017. The soybean price was $9.481in March, up $0.12 from March 2017. The milk-feed price ratio was 1.97 in March, down 0.43 from March 2017. The index of prices received by farmers for dairy products during the month of March 2018 was up 1.5 to 77.6. Compared to March 2017, the index was down 8.5 points (-9.9 percent). The index of prices paid by farmers for commodities and services, interest, taxes, and wage rates in March 2018 was up 0.1 points to 108.5. Compared with March 2017, the index was up 1.9 points (1.8 percent). Selected Milk s, Milk Cows, and Feed s, Selected States and U.S., March 2018 with Comparisons All-Milk price 1, 2 Alfalfa hay, baled Corn for Grain Soybeans State Mar Mar Mar Mar 2017 2018 2017 2018 2017 2018 2017 2018 (dollars per cwt) (dollars per ton) (dollars per bushel) (dollars per bushel) AZ 16.20 14.50 170.00 200.00 N/A (D) --- --- CA 15.53 14.86 175.00 205.00 N/A (D) --- --- CO 18.00 16.00 150.00 190.00 3.62 3.49 --- --- ID 16.60 15.50 125.00 140.00 N/A 4.27 --- --- IN 17.90 15.10 N/A 195.00 3.77 3.72 9.97 10.10 IA 17.70 16.10 84.00 127.00 3.43 3.43 9.58 9.64 MI 16.50 14.10 140.00 160.00 3.62 3.59 9.97 9.99 MN 17.50 16.10 78.00 130.00 3.31 3.37 9.56 9.91 NM 15.70 14.20 170.00 200.00 N/A (D) --- --- NY 18.60 15.80 215.00 190.00 N/A 4.13 --- --- OH 18.50 15.80 170.00 190.00 3.69 3.79 9.92 10.10 PA 18.60 16.00 178.00 178.00 3.99 4.03 --- --- TX 17.80 16.30 171.00 205.00 3.61 4.03 --- --- WA 18.00 15.80 115.00 170.00 N/A 4.13 --- --- WI 18.00 16.20 91.00 135.00 3.42 3.46 9.75 9.80 U.S. 17.30 15.60 134.00 166.00 3.49 3.51 9.69 9.81 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., March 2018 with Comparisons Milk-feed: pounds of 16% mixed dairy feed equal in value to 1 pound of whole milk 1 State 2 Mar 2017 Feb 2018 Mar 2018 IA 2.89 2.36 2.30 MI 2.29 1.71 1.79 MN 2.97 2.39 2.28 OH 2.36 2.17 2.00 WI 2.87 2.19 2.24 U.S. 2.40 2.03 1.97 1 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., March 2018 with Comparisons Item Index Numbers (1990-92=100): s received by farmers for dairy production 86.1 76.1 77.6 s paid by farmers for commodities and services, interest taxes, and wage rates 106.6 108.4 108.5 Source: U.S. Department of Agriculture. National Agricultural Statistics Service. Agricultural Statistics Board. Agricultural s, April 2018. Mar 2017 Feb 2018 Mar 2018

DAIRY MARKET NEWS, APRIL 30 MAY 4, 2018-13- VOLUME 85, REPORT 18 Annual Milk Marketings by Producers and Cash Receipts from Marketings, by State, 2017 State Milk Marketed by Producers Cash Receipts from Marketings Quantity 1 Fluid Grade 2 Total Average Return 3 (million pounds) (percent) (1,000 dollars) (dollars per cwt) AL 88.0 100 16,368 18.60 AK 2.5 100 550 22.00 AZ 4,996.0 100 834,332 16.70 AR 77.0 100 14,399 18.70 CA 39,768.0 97 6,561,720 16.50 CO 4,167.0 100 754,227 18.10 CT 417.0 100 77,979 18.70 DE 91.8 100 16,157 17.60 FL 2,490.0 100 535,350 21.50 GA 1,832.0 100 348,080 19.00 HI 38.7 100 11,068 28.60 ID 14,595.0 100 2,510,340 17.20 IL 1,917.0 98 350,811 18.30 IN 4,237.0 100 749,949 17.70 IA 5,156.0 100 933,236 18.10 KS 3,483.0 100 588,627 16.90 KY 1,035.0 100 195,615 18.90 LA 157.0 100 29,359 18.70 ME 626.0 100 123,948 19.80 MD 945.0 100 168,210 17.80 MA 209.0 100 39,292 18.80 MI 11,196.0 100 1,836,144 16.40 MN 9,765.0 99 1,738,170 17.80 MS 134.0 100 25,326 18.90 MO 1,219.0 97 227,953 18.70 MT 283.0 100 49,525 17.50 NE 1,438.0 100 261,716 18.20 NV 703.0 100 125,837 17.90 NH 271.0 100 50,406 18.60 NJ 117.0 100 21,411 18.30 NM 8,169.0 100 1,331,547 16.30 NY 14,855.0 100 2,703,610 18.20 NC 946.0 100 177,848 18.80 ND 340.0 98 59,840 17.60 OH 5,562.0 97 1,023,408 18.40 OK 721.0 100 138,432 19.20 OR 2,508.0 100 496,584 19.80 PA 10,863.0 100 2,020,518 18.60 RI 12.9 100 2,399 18.60 SC 244.0 100 46,604 19.10 SD 2,610.0 100 490,680 18.80 TN 688.0 100 130,032 18.90 TX 12,028.0 100 2,213,152 18.40 UT 2,202.0 100 389,754 17.70 VT 2,713.0 100 507,331 18.70 VA 1,726.0 100 334,844 19.40 WA 6,508.0 100 1,184,456 18.20 WV 124.0 100 22,320 18.00 WI 30,076.0 99 5,443,756 18.10 WY 136.7 100 24,469 17.90 US 4 214,487.0 99 37,937,689 17.69 1 Milk sold to plants and dealers as whole milk and equivalent amounts of milk for cream. Includes milk produced by dealers own herds and milk sold directly to consumers. Also includes milk produced by institutional herds. 2 Percentage of milk sold that is eligible for fluid use (Grade A in most States). Includes fluid grade milk used in manufacturing dairy products. 3 Cash receipts divided by milk marketings. 4 May not add due to rounding. Source: U.S. Department of Agriculture. National Agricultural Statistics Service. Milk Production, Disposition, and Income 2017 Summary, April 2018.

DAIRY MARKET NEWS, APRIL 30 MAY 4, 2018-14- VOLUME 85, REPORT 18 Milk Production, Disposition, and Income 2017 Milk production increased 1.4 percent in 2017 to 215 billion pounds. The rate per cow, at 22,941 pounds, was 163 pounds above 2016. The annual average number of milk cows on farms was 9.39 million head, up 67,000 head from 2016. Cash receipts from marketings of milk during 2017 totaled $37.9 billion, 9.8 percent higher than 2016. Producer returns averaged $17.69 per hundredweight, 8.3 percent above 2016. Marketings totaled 214.5 billion pounds, 1.5 percent above 2016. Marketings include whole milk sold to plants and dealers and milk sold directly to consumers. An estimated 979 million pounds of milk were used on farms where produced, 1.4 percent less than 2016. Calves were fed 91 percent of this milk, with the remainder consumed in producer households. Year Number of milk cows 1 Milk Cows and Production of Milk: United States, 2016-2017 Production of Milk 2 Per milk cow All milk percent of Milk fat (1,000 head) (pounds) (percent) (million pounds) 2016 9,325 22,778 3.79 212,405 2017 9,392 22,941 3.84 215,466 1 Average number during year, excluding heifers not yet fresh. 2 Excludes milk sucked by calves. Total Milk Milk Marketings and Income: United States, 2016-2017 Combined Marketings of Milk and Cream Year Milk marketed by producers All milk average returns Cash receipts from Total 2 Fluid grade 3 per cwt 1 marketings (million pounds) (percent) (dollars) (1,000 dollars) 2016 211,412 99 16.34 34,538,700 2017 214,487 99 17.69 37,937,689 1 Cash receipts divided by milk marketings. 2 Milk sold to plants and dealers as whole milk and equivalent amounts of milk for cream. Includes milk produced by dealers own herds and milk sold directly to consumers. Also includes milk produced by institutional herds. 3 Percentage of milk sold that is eligible for fluid use (Grade A in most States). Includes fluid grade milk used in manufacturing dairy products. Source: U.S. Department of Agriculture. National Agricultural Statistics Service. Milk Production, Disposition, and Income 2017 Summary, April 2018.

DAIRY MARKET NEWS, APRIL 30 MAY 4, 2018-15- VOLUME 85, REPORT 18 Annual Production of Selected Dairy Products and Number of Plants Manufacturing these Products, United States, 2016 and 2017 Product 2016 Revised 2017 Plants Production Plants Production Change from 2016 (number) (1,000 pounds) (number) (1,000 pounds) (percent) Butter 91 1,839,399 97 1,847,473 0.4 Cheese Types: Cheddar 230 3,434,498 241 3,721,334 8.4 Other American 149 1,334,390 161 1,350,657 1.2 Total American 1 245 4,768,888 262 5,071,991 6.4 Swiss 59 311,977 62 316,653 1.5 Muenster 38 181,354 39 187,818 3.6 Mozzarella 128 4,117,746 136 4,160,599 1.0 Other Italian 217 1,186,609 231 1,223,265 3.1 Total Italian 203 5,304,355 214 5,383,864 1.5 Cream & Neufchatel 33 908,972 37 942,920 3.7 Hispanic 61 264,941 61 286,943 8.3 Total 2 553 12,181,543 563 12,659,091 3.9 Cottage Cheese, Curd 3 53 406,428 53 390,400-3.9 Cottage Cheese, Creamed 4 54 329,444 52 330,484 0.3 Cottage Cheese, Lowfat 5 53 367,815 54 344,421-6.4 Canned Evaporated & Condensed Whole Milk 6 5 456,695 5 379,193-17.0 Dry Whole Milk 13 98,174 15 122,397 24.7 Milk Protein Concentrate, Total 7 11 125,685 12 139,047 10.6 Nonfat Dry Milk, Human 50 1,752,634 51 1,835,152 4.7 Skim Milk Powders 8 14 559,175 15 529,633-5.3 Dry Buttermilk 25 109,641 24 112,904 3.0 Sour Cream 115 1,374,059 112 1,387,149 1.0 Yogurt (Plain & Flavored) 162 4,458,399 170 4,478,308 0.4 Condensed Whey, Solids Content, Human Food 9 12 127,526 13 110,175-13.6 Dry Whey Products Dry Whey, Human 30 932,466 31 1,017,269 9.1 Dry Whey, Animal 21 22,675 23 19,635-13.4 Reduced Lactose and Minerals, Total 7 62,700 6 60,763-3.1 Lactose Total 30 1,098,867 30 1,124,157 2.3 Whey Protein Concentrate Human Food 10 47 464,854 44 477,169 2.6 Animal Feed 10 19 3,575 18 7,107 98.8 Total 10 N/A 468,429 N/A 484,276 3.4 25.0-49.9 Percent 11 22 177,113 19 179,865 1.6 50.0-89.9 Percent 11 35 291,316 34 304,411 4.5 Whey Protein Isolates 12 17 111,308 18 116,831 5.0 Frozen Products Number 1,000 gallons Number 1,000 gallons Percent Ice Cream, Regular N/A 906,680 N/A 901,733-0.5 Ice Cream, Lowfat 13 N/A 435,868 N/A 459,814 5.5 Sherbet N/A 44,262 N/A 43,576-1.5 Yogurt N/A 66,814 N/A 62,544-6.4 N/A = Not available. 1 Includes Cheddar, Colby, washed curd, stirred curd, Monterey and Jack. 2 Excludes cottage cheese. 3 Mostly used for processing into creamed or lowfat cottage cheese. 4 Fat content 4.0 percent or more. 5 Fat content less than 4.0 percent. 6 Combined to avoid disclosing individual plant operations. 7 Dry milk protein concentrate, 40.0-89.9 percent. 8 Includes protein standardized and blends. 9 Final marketable product only. Does not include quantity used or shipped to another plant for further processing into dry whey or modified dry whey products. Does not include sweet-type, animal whey. 10 Whey protein concentrate, 25.0 to 89.9 percent. 11 Whey protein concentrate, human and animal. 12 Whey protein isolate, 90.0 percent or greater. 13 Includes freezer-made milkshake. Source: U.S. Department of Agriculture. National Agricultural Statistics Service. Dairy Products 2016 Summary, April 2017.

DAIRY MARKET NEWS, APRIL 30 MAY 4, 2018-16- VOLUME 85, REPORT 18 Dairy Products 2017 Summary Butter production in the United States during 2017 totaled 1.85 billion pounds, 0.4 percent above 2016. California was the leading state in Butter production with 28.9 percent of the production. Total cheese production, excluding cottage cheeses, was 12.7 billion pounds, 3.9 percent above 2016 production. Wisconsin was the leading state with 26.6 percent of the production, followed by California with 19.9 percent and Idaho with 7.6 percent. American type cheese production was 5.07 billion pounds, 6.4 percent above 2016 and accounted for 40.1 percent of total cheese in 2017. Wisconsin was the leading state in American type cheese production with 20.0 percent of the production, followed by California with 12.5 percent and Idaho with 11.9 percent. Italian varieties, with 5.38 billion pounds were 1.5 percent above 2016 production and accounted for 42.5 percent of total cheese in 2017. Mozzarella accounted for 77.3 percent of the Italian production followed by Parmesan with 8.4 percent and Provolone with 7.4 percent. Wisconsin was the leading state in Italian cheese production with 31.6 percent of the production, followed by California with 30.0 percent and New York with 6.5 percent. Ice cream, Regular totaled 902 million gallons, down 0.5 percent from 2016. Ice cream, Lowfat totaled 460 million gallons, up 5.5 percent. Nonfat dry milk for human food totaled 1.84 billion pounds, up 4.7 percent from 2016. California was the leading state with 30.6 percent of the production. Skim milk powders totaled 530 million pounds, down 5.3 percent. Dry whey, totaled 1,037 million pounds, up 8.6 percent from 2016. Lactose, human and animal totaled 1.12 billion pounds, up 2.3 percent. Dairy Plants: During 2017, there were 1,306 dairy plants in the U.S. manufacturing one or more dairy products, 8 more than in 2016. Source: U.S. Department of Agriculture. National Agricultural Statistics Service. Dairy Products 2016 Summary, April 2017.

DAIRY MARKET NEWS, APRIL 30 MAY 4, 2018-17- VOLUME 85, REPORT 18 March 2018 Dairy Products Highlights Butter production was 185.6 million pounds, 4.8 percent above March 2017 and 9.1 percent above February 2018. American type cheese production totaled 437.0 million pounds, 1.7 percent above March 2017 and 10.0 percent above February 2018. Total cheese output (excluding cottage cheese) was 1.10 billion pounds, 2.7 percent above March 2017 and 11.6 percent above February 2018. Nonfat dry milk production, for human food, totaled 180.3 million pounds, 12.0 percent above March 2017 and 14.2 above February 2018. Dry whey production, for human food, was 86.5 million pounds, 1.6 percent above March 2017, but 2.6 percent below February 2018. Ice cream, regular hard production totaled 65.4 million gallons, 11.8 percent below March 2017, but 18.1 percent above February 2018. Production of Dairy Products Change from Change from Product Mar 2018 Mar 2017 Feb 2018 Year to Date 1 Product Mar 2018 Mar 2017 Feb 2018 (1,000 lbs) (percent) (1,000 lbs) (percent) Butter 185,580 4.8 9.1 4.2 Yogurt (plain and flavored) 392,344-4.7 4.4-2.6 Cheese Dry whey, human food 86,530 1.6-2.6 --- American types 2 437,017 1.7 10.0 1.1 Dry whey, animal feed 1,496 0.7 96.1 --- Cheddar 314,805-2.7 7.3-1.7 Dry whey, total 8 88,026 1.5-1.8 8.6 Other American 122,212 15.2 17.4 --- Reduced lactose & minerals Brick & Muenster 15,328-3.8 8.6 --- Human food 2,401-5.9 69.9 --- Cream & Neufchatel 73,733 11.4 11.1 --- Animal feed 2,691 0.1 2.2 --- Hispanic 25,894-0.4 23.6 --- Lactose, human food & animal feed 98,884 3.7 14.6 2.9 Total Italian types 481,627 2.5 12.9 3.9 Whey protein concentrate Mozzarella 371,544 2.8 13.5 3.6 Human food 9 43,248 3.1 10.7 --- Other Italian 110,083 1.3 11.1 --- Animal feed 9 339-14.0 0.6 --- Swiss 27,973 4.2 7.4 --- Total 9 43,587 2.9 10.7 6.4 All other types 39,130 5.1 12.9 --- 25.0-49.9 percent 10 14,330-10.3 5.9 --- Total 1,100,702 2.7 11.6 2.9 50.0-89.9 percent 10 29,257 10.9 13.1 --- Cottage cheese, curd 3 35,320 1.5 25.9 --- Whey protein isolates 11 10,017 3.4 17.9 --- Cottage cheese, cream 4 32,816 13.1 21.8 5.5 Cottage cheese, lowfat 5 31,255 1.8 13.4-2.1 (1,000 gal) (percent) Dry buttermilk 12,347 25.4 7.3 --- Frozen products Dry whole milk 21,582 92.6 11.0 --- Ice cream, regular hard 65,419-11.8 18.1-7.4 Milk protein conc. (MPC), total 6 12,768-7.0 25.1 --- Ice cream, lowfat, hard 20,542-1.1 8.6 --- Nonfat dry milk (NDM), human 180,255 12.0 14.2 8.8 Ice cream, lowfat, soft 20,097-14.2 34.5 --- Skim milk powders (SMP) 7 40,996-22.2 8.8-16.9 Ice cream, lowfat, total 40,639-8.0 20.1-7.6 Sour cream 116,615 0.8 17.8 1.5 Sherbet, hard 3,422-9.2 14.3-6.7 Frozen yogurt, total 6,695-3.1 44.8-9.6 Manufacturers' Stocks, End of Month 12 Product Mar Mar Feb Mar Mar Feb Product 2018 2017 2018 2018 2017 2018 (1,000 lbs) (percent) (1,000 lbs) (percent) Whey protein concentrate Dry whey, human food 73,687-2.4-15.2 Human food 9 77,425 25.3-3.3 Dry whey, animal feed 1,025-45.9-29.0 Animal feed 9 622 31.2-16.3 Reduced lactose & minerals human & animal 13 4,321-22.5-1.8 Total 9 78,047 25.4-3.4 Lactose, human food & animal feed 114,753-7.8-2.0 25.0-49.9 percent 10 23,119-2.3-10.2 Dry buttermilk 25,934-5.0 1.9 50.0-89.9 percent 10 54,928 42.3-0.2 Nonfat dry milk, human food 297,987 20.9-0.1 Whey protein isolates 11 26,713 9.6-4.2 1 2018 cumulative as percent change of 2017 cumulative. 2 Includes Cheddar, Colby, Monterey and Jack. 3 Mostly used for processing into cream or lowfat cottage cheese. 4 Fat content 4 percent or more. 5 Fat content less than 4 percent. 6 Dry milk protein concentrate, 40-89.9 percent. 7 Includes protein standardized and blends. 8 Excludes all modified dry whey products. 9 Whey protein concentrate, 25.0 to 89.9 percent. 10 Whey protein concentrate, human and animal. 11 Whey protein isolates, 90.0 percent or greater. 12 Stocks held by manufacturers at all points and in transit. 13 Reduced lactose and minerals stocks combined to avoid disclosure of individual operations. Source: U.S. Department of Agriculture. National Agricultural Statistics Service. Agricultural Statistics Board. Dairy Products, May 3, 2018. Year to Date 1

DAIRY MARKET NEWS, APRIL 30 MAY 4, 2018-18- VOLUME 85, REPORT 18 Measures of Growth in Federal Order Markets: 1950-2017 Year Number of Markets 1 Number of Pool Handlers 1 Number of Pooled Producers 2 Population of Federal Milk Marketing Areas 3 Total Receipts of Producer Milk 4 Producer Milk Used as Class I Percent Used as Class I Percentage of All Milk Sold Fluid Grade All Milk Milk at 3.5% Butterfat Content 6 Class I Blend Average Daily Delivery per Producer Gross Value of Producer Milk 7 Per Pooled Producer All Pooled Producers (number) (1,000) (million pounds) (percent) ($/cwt) (pounds) (dollars) ($1,000) 1950 39 1,101 156,584 5 18,660 11,000 58.9 41 25 4.51 3.93 326 4,914 769,442 1955 63 1,483 188,611 46,963 28,948 18,032 62.3 51 32 4.67 4.08 420 6,510 1,227,815 1960 80 2,259 189,816 88,818 44,812 28,758 64.2 64 43 4.88 4.47 648 10,482 1,989,615 1965 73 1,891 158,077 102,351 54,444 34,561 63.5 70 48 4.93 4.31 944 15,300 2,418,526 1970 62 1,588 143,411 125,721 65,104 40,063 61.5 79 59 6.74 5.95 1,244 27,636 3,963,311 1975 56 1,315 123,855 150,666 69,249 40,106 57.9 78 63 9.36 8.64 1,532 49,233 6,097,768 1980 47 1,091 117,490 164,908 83,998 41,034 48.9 80 67 13.77 12.86 1,954 93,685 11,007,001 1985 44 884 116,765 176,440 97,762 42,201 43.2 80 70 13.88 12.61 2,294 107,871 12,595,522 1990 42 753 100,397 195,841 102,396 43,783 42.8 77 70 15.55 13.78 2,796 142,324 14,289,567 1995 33 571 88,717 207,548 108,548 45,044 41.5 75 71 14.19 12.79 3,350 157,754 13,995,454 2000 11 346 69,590 228,899 116,920 45,989 39.3 72 70 14.24 12.11 4,590 207,913 14,468,892 2005 10 302 53,036 238,428 114,682 44,570 38.9 66 65 17.13 15.07 5,904 334,626 17,747,577 2010 10 251 45,918 247,031 126,909 44,970 35.4 67 66 18.25 16.07 7,572 444,038 20,389,201 2015 10 214 36,118 256,526 126,126 41,206 32.7 61 61 19.21 16.70 9,559 583,173 21,063,042 2016 10 216 * 34,721 258,846 133,846 41,140 30.7 64 64 17.70 15.38 * 10,516 * 592,884 20,585,515 2017 10 217 32,988 262,240 135,502 40,642 30.0 64 63 19.31 16.96 11,243 696,651 22,9891,13 * Revised. 1 End of year. 2 Average for year. 3 Figures for following time periods on respective U.S. Census: 1951-59 (1950), 1960-70 (1970), 1980, 1990, 2000, and 2010. Figures for following time periods are estimated based on other Census Bureau reports: 1972-79, 1981-99, 2001-2009, 2011-2017. 4 Beginning in 1988, due to disadvantageous price situations in some markets, handlers elected not to pool milk that normally would have been associated with the order. This has reduced, sometimes substantially, the volume of producer milk receipts reported for some markets. This can also affect significantly the comparability of other "Measures of Growth" based on this statistic. 5 Data not available. 6 s are simple averages for 1947-61 and weighted averages for 1962 to date. 7 Based on blend (uniform) price adjusted for the butterfat content, and starting in 1988, other milk components of producer milk. Report Contact: Randal Stoker, Dairy Marketing Specialist, randal.stoker@usda.gov or 202-690-1932.

DAIRY MARKET NEWS, APRIL 30 MAY 4, 2018-19- VOLUME 85, REPORT 18 160,000 Total Receipts of Producer Milk & Producer Milk Used as Class I 12,000 Average Daily Delivery per Producer 140,000 10,000 Millions of Pounds 120,000 100,000 80,000 60,000 40,000 Pounds 8,000 6,000 4,000 20,000 0 2,000 0 Total Receipts of Producer Milk Producer Milk Used as Class I Gross Value of Producer Milk 25 20 Billions of Dollars 15 10 5 0 1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2016 2017

DAIRY MARKET NEWS, APRIL 30 - MAY 4, 2018 -G1- VOLUME 85, REPORT 14 MILLION POUNDS 190 185 180 175 170 165 160 155 150 145 140 135 130 125 120 U.S. Butter Production Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec DATA SOURCE, USDA, NASS; GRAPH, USDA, AMS, DMN 2014 2015 2016 2017 2018 MILLION POUNDS 440 435 430 425 420 415 410 405 400 395 390 385 380 375 370 365 360 355 350 345 340 335 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec DATA SOURCE USDA, NASS; GRAPH, USDA, DMN U.S. Total American Cheese Production 2014 2014 2016 2017 2018 MILLION POUNDS U.S. Total Italian-Type Cheese Production 490 480 470 460 450 440 430 420 410 400 390 380 370 360 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec DATA SOURCE, USDA, NASS; GRAPH, USDA, AMS, DMN 2014 2015 2016 2017 2018

DAIRY MARKET NEWS, APRIL 30 - MAY 4, 2018 -G2- VOLUME 85, REPORT 14 MILLION POUNDS 210 200 190 180 170 160 150 140 130 120 110 100 90 80 70 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec DATA SOURCE, USDA, NASS; GRAPH, USDA, AMS, DMN U.S. Nonfat Dry Milk (NDM) Production, Human 2014 2015 2016 2017 2018 MILLION POUNDS U.S. Total Dry Whey Production 112 108 104 100 96 92 88 84 80 76 72 68 64 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec DATA SOURCE, USDA, NASS; GRAPH, USDA, AMS, DMN 2014 2015 2016 2017 2018 MILLION POUNDS 50 U.S. Whey Protein Concentrate Production, Human (25.0-89.9% Protein) 48 46 44 42 40 38 36 34 32 30 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec DATA SOURCE, USDA, NASS; GRAPH, USDA, AMS, DMN 2014 2015 2016 2017 2018

Dairy Market News Branch Agricultural Marketing Service National Retail Report-Dairy Websites: http://www.marketnews.usda.gov/mnp/da-home and http://www.ams.usda.gov/mnreports/dybretail.pdf Volume 84- Number 18 Issued Weekly Friday, May 4, 2018 Advertised s for Dairy Products at Major Retail Supermarket Outlets ending during the period of 05/04/2018 to 05/10/2018 The total number of conventional ads increased by 25 percent week over week. On the organic side, ads rose by 82 percent. Ice cream in 48-64 ounce containers was the most advertised conventional item this week with a weighted average price of $3.08, down 4 cents from last week. For organic, milk in half gallons was the item with most ads with an average price of $3.85, down 6 cents from the previous week. Total conventional milk ads increased by 208 percent, while organic milk ads increased 234 percent. The national weighted average advertised conventional milk price for half gallons is $1.97, up 14 cents from a week ago, while milk in one gallon bottle averaged $2.51, up 37 cents. The premium for organic to conventional half gallon bottled milk is $1.88. The U.S. average conventional one pound butter price is $3.18 this period, down 23 cents from a week ago. The one pound organic butter price is $5.81, an organic price premium of $2.63. Total conventional cheese advertisements increased 13 percent while there are no reported ads for organic cheese this week. The weighted average price of conventional 8 ounce block cheese was $2.37, up 13 cents from last week. The weighted average price of conventional 8 ounce shred cheese was $2.38, up 17 cents compared to last week. Total conventional yogurt ads increased by 18 percent, while organic yogurt ads decreased by 66 percent. The weighted average advertised price for organic yogurt in 4-6 ounce containers is $1.06, while conventional yogurt in 4-6 ounce containers averaged 53 cents for an organic premium of 53 cents. Top 5 Commodities Featured This Week 24K 05/04/2018 04/27/2018 04/20/2018 20K with Ads 16K 12K 8K 4K 0K Yogurt Cheese Ice cream Sour cream Milk 1 -- Dairy Market News surveys nearly 150 retailers, comprising over 23,000 individual stores, with online weekly advertised features.

National Retail Report - Dairy Vol 84 - No. 18 Friday, May 4, 2018 - Page 2 Percentage of Total Conventional Ads by Commodity Butter, 5% Yogurt, 21% Cheese, 21% Sour cream, 13% Cottage cheese, 6% Milk, 4% Ice cream, 15% Cream cheese, 7% Flavored milk, 1% Percentage of Total Organic Ads by Commodity Yogurt, 7% Butter, 10% Cottage cheese, 3% Cream cheese, 16% Milk, 64% Wtd Avg - Simple weighted average

National Retail Report - Dairy Vol 84 - No. 18 Friday, May 4, 2018 - Page 3 NATIONAL -- CONVENTIONAL DAIRY PRODUCTS THIS PERIOD LAST WEEK LAST YEAR Commodity Type Pack Size With Ads Wtd Avg With Ads Wtd Avg With Ads Wtd Avg Butter 1 # 4325 3.18 3592 3.41 3259 2.85 Cheese Natural Varieties 8 oz block 5257 2.37 5334 2.24 7637 2.16 Cheese Natural Varieties 1 # block 1697 3.22 787 3.10 3400 3.66 Cheese Natural Varieties 2 # block 1137 6.56 223 5.80 790 6.04 Cheese Natural Varieties 8 oz shred 7578 2.38 7661 2.21 9628 2.22 Cheese Natural Varieties 1 # shred 1532 3.20 1275 3.06 2754 3.50 Cottage cheese 16 oz 4937 1.84 2760 1.75 3166 1.76 Cream cheese 8 oz 5923 1.65 4703 1.70 5733 1.74 Flavored milk All fat tests half gallon 852 2.43 406 2.00 252 2.35 Flavored milk All fat tests gallon 116 2.08 106 3.69 1190 2.97 Ice cream 48-64oz 11936 3.08 10079 3.12 13702 2.95 Milk All fat tests half gallon 1676 1.97 516 1.83 1622 2.10 Milk All fat tests gallon 1572 2.51 539 2.14 3233 2.62 Sour cream 16 oz 10384 1.64 8117 1.74 7446 1.58 Yogurt Greek 4-6 oz 10254 1.01 7664.96 16199.98 Yogurt Greek 32 oz 1135 4.42 1003 4.57 1888 4.29 Yogurt Yogurt 4-6 oz 4395.53 3708.54 3261.61 Yogurt Yogurt 32 oz 1691 2.23 2407 2.15 530 2.40 REGIONAL -- CONVENTIONAL DAIRY PRODUCTS NORTHEAST U.S. SOUTHEAST U.S. MIDWEST U.S. Commodity Type Pack Size with Ads Wtd Avg with Ads Wtd Avg with Ads Wtd Avg Butter 1 # 2.50-4.99 978 3.98 2.49-3.49 1461 3.13 2.49-3.49 783 2.83 Cheese Natural Varieties 8 oz block 1.77-3.00 2297 2.51 1.00-2.50 1475 2.25 1.27-2.50 972 2.37 Cheese Natural Varieties 1 # block 2.79-4.99 1044 3.49 3.48 195 3.48 2.49 458 2.49 Cheese Natural Varieties 2 # block 5.99 180 5.99 Cheese Natural Varieties 8 oz shred 1.99-3.00 2557 2.53 1.00-2.50 1899 2.31 1.27-2.79 1204 2.26 Cheese Natural Varieties 1 # shred 3.99 304 3.99 2.49-3.99 396 3.31 2.49 458 2.49 Cottage cheese 16 oz 1.99-2.99 1477 2.44 0.79-2.00 911 1.85 0.79-1.79 1214 1.22 Cream cheese 8 oz 1.50-2.39 1020 1.88 1.49-1.50 1326 1.50 1.46-2.19 1527 1.57 Flavored milk All fat tests half gallon 1.99-2.50 799 2.46 1.99 53 1.99 Ice cream 48-64oz 2.50-3.33 2606 2.69 2.50-3.99 2271 2.96 2.49-4.99 3561 3.29 Milk All fat tests half gallon 2.50 272 2.50 1.25-2.50 969 2.23 Milk All fat tests gallon 2.49 90 2.49 1.99-3.00 359 2.77 Sour cream 16 oz 1.39-2.00 2558 1.75 0.79-2.00 2692 1.56 0.79-2.00 2395 1.46 Yogurt Greek 4-6 oz 0.75-1.00 2580.96 1.00-3.50 2614 1.19 0.88-1.00 1627.98 Yogurt Greek 32 oz 2.50-4.99 466 4.44 3.99-5.00 481 4.47 3.99 116 3.99 Yogurt Yogurt 4-6 oz 0.39-0.50 1591.48 0.50-0.60 385.52 0.50-0.66 1247.56 Wtd Avg - Simple weighted average

National Retail Report - Dairy Vol 84 - No. 18 Friday, May 4, 2018 - Page 4 NORTHEAST U.S. SOUTHEAST U.S. MIDWEST U.S. Commodity Type Pack Size with Ads Wtd Avg with Ads Wtd Avg with Ads Wtd Avg Yogurt Yogurt 32 oz 2.00-2.50 170 2.18 2.00 1002 2.00 2.50 180 2.50 SOUTH CENTRAL U.S. SOUTHWEST U.S. NORTHWEST U.S. Commodity Type Pack Size with Ads Wtd Avg with Ads Wtd Avg with Ads Wtd Avg Butter 1 # 2.49 351 2.49 2.49-2.99 331 2.85 1.99-3.99 361 2.83 Cheese Natural Varieties 8 oz block 1.50-2.50 183 2.00 1.77 167 1.77 1.99 105 1.99 Cheese Natural Varieties 2 # block 5.00 57 5.00 4.99-8.99 824 6.58 Cheese Natural Varieties 8 oz shred 1.50-2.50 688 2.30 1.66-3.00 802 2.32 1.88-2.50 342 2.22 Cheese Natural Varieties 1 # shred 3.00 133 3.00 3.49 241 3.49 Cottage cheese 16 oz 1.99-2.00 248 2.00 0.89-2.00 889 1.69 1.25-1.99 174 1.54 Cream cheese 8 oz 1.46-2.00 1238 1.49 1.49-2.19 577 1.95 1.49-2.00 135 1.75 Flavored milk All fat tests gallon 1.99 105 1.99 Ice cream 48-64oz 2.49-3.99 1978 3.12 2.49-4.99 1141 3.23 2.50-4.99 240 3.33 Milk All fat tests half gallon 0.99-1.48 314 1.11 0.99 121.99 Milk All fat tests gallon 1.77-2.99 348 2.60 1.99-2.79 638 2.41 1.99 105 1.99 Sour cream 16 oz 0.79-2.00 932 1.57 0.89-2.00 1377 1.77 1.25-3.79 345 1.96 Yogurt Greek 4-6 oz 0.88-1.00 598.94 0.79-1.00 2469.93 0.87-1.00 243.91 Yogurt Greek 32 oz 4.68 72 4.68 Yogurt Yogurt 4-6 oz 0.50-0.90 459.59 0.50-0.60 393.56 0.40-0.50 292.46 Yogurt Yogurt 32 oz 2.69-3.99 188 3.07 2.33 117 2.33 ALASKA U.S. HAWAII U.S. Commodity Type Pack Size with Ads Wtd Avg with Ads Wtd Avg Butter 1 # 2.99-4.99 60 4.20 Cheese Natural Varieties 8 oz block 2.50-3.00 58 2.79 Cheese Natural Varieties 2 # block 6.99-13.99 49 10.99 4.99 27 4.99 Cheese Natural Varieties 8 oz shred 3.00 28 3.00 2.50-3.00 58 2.79 Cottage cheese 16 oz 2.50 24 2.50 Cream cheese 8 oz 2.99-3.99 49 3.56 1.88-2.69 51 2.26 Flavored milk All fat tests gallon 2.99 11 2.99 Ice cream 48-64oz 2.79-8.99 71 5.79 2.88-4.49 68 3.69 Milk All fat tests gallon 1.99-2.99 32 2.33 Sour cream 16 oz 1.99-3.50 85 2.74 Yogurt Greek 4-6 oz 0.49-0.88 42.69 0.79-1.00 81.93 Yogurt Yogurt 4-6 oz 1.20 28 1.20 Yogurt Yogurt 32 oz 2.79 34 2.79 NATIONAL -- ORGANIC DAIRY PRODUCTS Wtd Avg - Simple weighted average

National Retail Report - Dairy Vol 84 - No. 18 Friday, May 4, 2018 - Page 5 THIS PERIOD LAST WEEK LAST YEAR Commodity Type Pack Size With Ads Wtd Avg With Ads Wtd Avg With Ads Wtd Avg Butter 1 # 610 5.81 214 5.49 63 5.70 Cheese Natural Varieties 8 oz shred 178 4.49 Cottage cheese 16 oz 213 3.99 180 3.49 Cream cheese 8 oz 951 2.80 735 2.89 Milk All fat tests half gallon 3183 3.85 858 3.91 2403 3.48 Milk All fat tests gallon 730 5.85 313 6.32 378 5.82 Milk All fat tests 8 oz UHT 234 1.00 Sour cream 16 oz 180 2.50 Yogurt Greek 4-6 oz 72 1.00 479 1.22 Yogurt Greek 32 oz 322 2.99 Yogurt Yogurt 4-6 oz 209 1.06 233.61 394 1.00 Yogurt Yogurt 32 oz 214 3.00 615 3.64 REGIONAL -- ORGANIC DAIRY PRODUCTS NORTHEAST U.S. SOUTHEAST U.S. MIDWEST U.S. Commodity Type Pack Size with Ads Wtd Avg with Ads Wtd Avg with Ads Wtd Avg Butter 1 # 5.99 396 5.99 5.49 214 5.49 Cottage cheese 16 oz 3.99 213 3.99 Cream cheese 8 oz 2.50 100 2.50 2.89 735 2.89 2.50 116 2.50 Milk All fat tests half gallon 3.49-3.99 786 3.71 3.99 448 3.99 3.79-4.49 974 3.96 Milk All fat tests gallon 3.99-6.99 563 6.10 Yogurt Yogurt 4-6 oz 0.69-1.25 209 1.06 Yogurt Yogurt 32 oz 3.00 214 3.00 SOUTH CENTRAL U.S. SOUTHWEST U.S. NORTHWEST U.S. Commodity Type Pack Size with Ads Wtd Avg with Ads Wtd Avg with Ads Wtd Avg Milk All fat tests half gallon 2.99-3.99 265 3.78 3.49-3.99 575 3.78 3.99 135 3.99 Milk All fat tests gallon 4.99 167 4.99 Wtd Avg - Simple weighted average

National Retail Report - Dairy Vol 84 - No. 18 Friday, May 4, 2018 - Page 6 ALASKA U.S. HAWAII U.S. Commodity Type Pack Size with Ads Wtd Avg with Ads Wtd Avg REGIONAL DEFINITIONS As used in this report, regions include the following states: NORTHEAST U.S. SOUTHEAST U.S. MIDWEST U.S. SOUTH CENTRAL U.S. SOUTHWEST U.S. NORTHWEST U.S. ALASKA HAWAII NATIONAL Connecticut, Delaware, Massachusetts, Maryland, Maine, New Hampshire, New jersey, New York, Pennsylvania, Rhode Island and Vermont Alabama, Florida, Georgia, Mississippi, North Carolina, South Carolina, Tennessee, Virginia and West Virginia Iowa, Illinois, Indiana, Kentucky, Michigan, Minnesota, North Dakota, Nebraska, Ohio, South Dakota and Wisconsin Arkansas, Colorado, Kansas, Louisiana, Missouri, New Mexico, Oklahoma, and Texas Arizona, California, Nevada and Utah Idaho, Montana, Oregon, Washington, and Wyoming Alaska Hawaii Continental United States Wtd Avg - Simple weighted average

Dairy Market News United States Department of Agriculture Agricultural Marketing Service Dairy Programs Market Information Branch Volume 85, Report 18 May 4, 2018 GENERAL NUMBER (608) 422-8587 Elizabeth Frederick (608) 422-8587 Elizabeth.Frederick@AMS.USDA.GOV INTERN Al Yang (608) 422-8598 Al.Yang@AMS.USDA.GOV ORGANIC/ EAST Daniel Johnson (608) 422-8605 Daniel.Johnson@AMS.USDA.GOV EAST Jessica Mueller (608) 422-8589 Jessica.Mueller@AMS.USDA.GOV CENTRAL Israel Weber (608) 422-8601 Israel.Weber@AMS.USDA.GOV SOUTHWEST/SOUTH AMERICA AJ (Angel José) Terán (608) 422-8593 Angel.Terán@AMS.USDA.GOV SOUTHWEST Florence Kone-Gonzalez (608) 422-8594 Florence.KoneGonzalez@AMS.USDA.GOV NORTHWEST/MOUNTAIN Mike Bandli (608) 422-8592 Mike.Bandli@AMS.USDA.GOV EUROPE & OCEANIA/ ORGANIC Eric Graf (608) 422-8590 Eric.Graf@AMS.USDA.GOV NATIONAL SUPERVISOR Janet Linder (608) 422-8588 Janet.Linder@AMS.USDA.GOV BRANCH CHIEF Butch Speth (608) 422-8586 Butch.Speth@AMS.USDA.GOV INTERNET ADDRESS www.ams.usda.gov/market-news/dairy MARKET NEWS PORTAL www.marketnews.usda.gov/mnp/da-home RECORDED INFORMATION SYSTEM (608) 422-8602 FAX (608) 240-6689 USDA, Dairy Market News 4600 American Parkway, STE 106 Madison, WI 53718-8334 USDA is an equal opportunity provider and employer