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USDA - AMS: Organic Dairy Fluid Overview (2019-03-22)

USDA U.S. Department of Agriculture - March 22, 2019


     MD_DA902

     Organic Dairy Fluid Overview

     Report 12 - Released on March 22, 2019

     ORGANIC DAIRY FLUID OVERVIEW

     New England Organic Milk Sales and Sourcing. Federal Milk Market Order 1 in New England
     reports utilization of types of organic milk by pool plants. During February 2019, organic
     whole milk utilization totaled 12.6 million pounds, down from 14.5 million pounds one year
     earlier, (-13.0 percent). The February 2019 butterfat content was 3.28 percent, slightly
     lower from 3.29 percent in 2018. Organic reduced fat milk utilization for February this
     year, about 15.1 million pounds, was down from 18.2 million pounds one year earlier, (-16.7
      percent). Meanwhile, butterfat content was 1.33 percent, down from 1.34 percent last year.


     Organic Milk Product Sales. The Agricultural Market Service (AMS) reports total organic milk
     products sales for January 2019 were 233 million pounds, down 1.3 percent from January
     2018. Total organic whole milk sales for January 2019 are 99 million pounds, up 5.6 percent
     compared with January last year.

     ESTIMATED TOTAL U.S. SALES OF FLUID MILK PRODUCTS,
     JANUARY 2019, WITH COMPARISONS1/

     Product Name                     Sales           Change2/
                                    JAN. Y-T-D    Prev Yr. Y-T-D
                                    Mil.  Lbs.        Percent

     ORGANIC PRODUCTION PRACTICE

     Whole Milk                     99     99      5.6      5.6

     Reduced Fat Milk (2%)          75     75     -0.2     -0.2
     Low Fat Milk (1%)              34     34     -4.3     -4.3
     Fat-Free Milk (Skim)           18     18    -20.7    -20.7
     Flavored Fat-Reduced Milk       6      6    -27.8    -27.8
     Other Fluid Milk Products       0      0  3,062.1  3,062.1
     Total Fat-Reduced Milk 3/     133    133     -6.2     -6.2
     Tot. Organic Milk Products    233    233     -1.3     -1.3

     1/ These figures are representative of the consumption of fluid milk products in Federal
     milk order marketing areas, which account for approximately 92 percent of total fluid milk
     sales in the United States. An estimate of total U.S. fluid milk sales is derived by
     interpolating the remaining 8 percent of sales from the Federal milk order data.
     2/ Percent changes, as well as sales volumes, unless otherwise noted, are shown on an
     unadjusted basis;
     3/ Organic fat-reduced milk categories are total of reduced fat, low-fat, skim, and flavored
     fat reduced milk composition.
     4 Year to Date Sales, Change from Previous Year, and Change in Year to Date figures are
     influenced by the shift of California from being administered by the California Department
     of Food and Agriculture (CDFA) to a Federal order (i.e., changes in product classification,
     etc.). The California Federal Milk Marketing Order became effective on November 1, 2018.

     Organic Milk Pay Prices in Europe. According to CLAL, the most recent organic monthly milk
     pay price information reports declines for January 2019 in Germany, Austria and France when
     compared to December 2018. The organic milk farm price in Germany averaged 47.53
     euros/100lt ($54.18 USD), 2.78 percent lower than a year ago, and down 0.31 percent from a
     month earlier. In Bavaria, an important milk producing region of Germany, the average price
     is 47.96 euros/100lt ($54.67 USD), 4.19 percent lower than one year earlier, and 0.25
     percent down from the previous month. In Austria, January 2019 average organic milk farm
     prices, 48.49 euros/100lt ($55.28 USD), is reported 7.53 percent lower than a year ago, and
     down 3.14 percent from December 2018. France's average organic milk farm price for January
     2019, 46.20 euros/100lt ($52.67 USD), is 2.63 percent lower than January 2018, and 2.82

     percent less than December 2018.

     Retail Organic Milk Prices for Selected U.S. Cities. The March 2019 in-store surveys of
     selected supermarkets in twenty-nine U.S. cities reveal that the price of organic whole
     milk, in half gallon containers, ranges from $3.14 in Houston, TX, to $5.54 in St. Louis,
     MO. The U.S. simple average price for March is $4.07. The biggest price decrease, over the
     previous month, occurred in Denver, CO, currently down $0.20. If you are reading this in
     text format, images will not appear. To view all images please go to the PDF version of this
     report, https://www.ams.usda.gov/mnreports/dybdairyorganic.pdf

     Five Open Seats on the National Organic Standards Board (NOSB). The advisory board handles a
     multitude of roles regarding USDA certified organic products. The NOSB is in search of
     candidates who have experience in: environmental protection, resource conservation, organic
     handling, organic retail trading, among others. The deadline for nominations is May 17,
     2019. After filling out a nomination application (AD-755 application form), entries may be
     emailed to Michelle.Arsenault@usda.gov at the National Organic Program.

     ORGANIC GRAIN FEEDSTUFF OVERVIEW

     Organic Grain and Feed Market Trend. Organic grain and feedstuff trading activity is
     moderate to light. The demand for organic feed grade corn is fairly moderate. The majority
     of market activity is on new crop forward contracting for Q4. Feed grade soybean trades are
     limited, although cash bidding remains steady. The demand and market activity for feed grade
     wheat is lighter at this time. Due to recent rain and snow melt, there are reports U.S.
     planting may be behind in the near term. For more additional information, access the link:
     https://www.ams.usda.gov/mnreports/lsbnof.pdf

     Information for the period March 11 - 22, 2019, issued biweekly

     Published by:
     Dairy Market News - Madison, WI
     JESSICA MUELLER, 608-422-8589
     Email: Jessica.Mueller@ams.usda.gov

     Additional Dairy Market News Information:
     Dairy Market News (DMN) by Phone: (608)422-8602
     DMN Website: https://www.ams.usda.gov/market-news/dairy
     DMN MARS (My Market News): https://mymarketnews.ams.usda.gov/

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