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USDA - AMS: Organic Dairy Fluid Overview (2019-07-26)

USDA U.S. Department of Agriculture - July 26, 2019


     MD_DA902

     Organic Dairy Fluid Overview

     Report 30 - Released on July 26, 2019

     ORGANIC DAIRY FLUID OVERVIEW

     Organic Milk Product Sales. The Agricultural Marketing Service (AMS) report estimated sales
     of total organic fluid milk products decreased from a year earlier. May 2019 total organic
     milk products sales were 217 million pounds, down 0.7 percent from May 2018 and down 5.0
     percent compared to January-May 2018. Total organic whole milk products sales for May 2019,
     90 million pounds, were up 2.4 percent compared with May last year and up 0.2 percent
     compared with the year-to-date in 2018. May low fat milk (1%) sales declined 19.6 percent
     from the previous year.

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

     Product Name                            Sales2/                   Change
                                          May    Y-T-D4/         Prev Yr4/   Y-T-D4/
                                        (million pounds)              (percent)
     ORGANIC PRODUCTION PRACTICE

     Whole Milk                             90      441           2.4          0.2
     Reduced Fat Milk (2%)                  75      333           7.5         -3.7
     Low Fat Milk (1%)                      28      146         -19.6         -9.2
     Fat-Free Milk (Skim)                   16       78         -17.7        -21.8
     Flavored Fat-Reduced Milk               9       37          14.9        -13.7
     Other Fluid Milk Products               0        0          13.0        -33.9
     Total Fat-Reduced Milk3/              128      594          -2.8         -8.5

     Total Organic Milk Products           217    1,036          -0.7         -5.0

     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. Reported volumes do not
     include added non-dairy ingredients such as sweeteners or flavorings. 2 Data may not add
     due to rounding. 3 Both conventional and organic fat-reduced milk categories are the total
     of reduced fat, lowfat, skim and flavored fat-reduced milk. 4 Year to Date Sales, Change
     from Previous Year, and Change in Year to Date figures include the addition of the
     California Federal Milk Order, which also includes several changes in product
     classification. The California Federal Milk Marketing Order became effective on November 1,
     2018.

     Organic Cow Auction Prices. A July 24, 2019, cow slaughter report of a livestock auction in
     Oregon, showed that organic cows were sold for an average of $48.99 per cwt.

     Organic Milk Retail Prices. The July 2019 in-store survey of selected supermarkets, in
     twenty-nine U.S. cities, revealed that the simple average July 2019 cost for organic whole
     milk in half-gallon containers was $4.04. The average cost declined 3 cents from the
     previous month. The organic whole milk price ranged from $3.14 in Houston, TX. to $5.79 in
     St. Louis, MO. The market posting the largest July price increase, from the previous month,
     was St. Louis, MO, up $0.20, while the steepest decline in price occurred in New York, NY,
     down $0.41.

     Organic Milk Development. A major organic dairy co-operative has commenced marketing
     activities, nationwide, around its new product, organic ultra-filtered milk. The
     ultrafiltration process filters the USDA certified milk, reducing lactose in the milk.
     Consequently, value added benefits include less sugar, higher protein content, and longer
     shelf life. With annual declines in milk sales, the organic dairy sector continues to look
     for different innovative ways to spur growth.

     ORGANIC GRAIN FEEDSTUFF OVERVIEW

     Organic Grain and Feed Market. Overall, this week market trading was light on moderate
     demand. Feed grade organic corn traded 3 cents lower with no activity on forward
     contracting. Feed grade soybeans traded 30 cents higher on light volumes. Trade was inactive
     on all other organic grains.

     Crop Weather Update. According to USDA/WAOB, rain fell most heavily in parts of the Delta
     and the Corn Belt, with some areas receiving more than 4 inches. The Great Lakes, Great
     Plains, New England, and Southwest were warmer than normal for the week, with temperatures
     averaging 4 degrees Fahrenheit or more above normal in many places. In contrast,
     temperatures were 2 degrees or more below normal in parts of California, the Delta, Pacific
     Northwest, and northern Rocky Mountains. Meanwhile, due to weather related conditions that
     impact organic and conventional crops, the nation¶s corn acreage is 35 percent near the
     silking stage, 43 percentage points behind last year and 31 points behind the 5-year
     average. Soybean crop reports show 40 percent of the nation¶s acreage had reached the
     blooming stage, 36 percent behind last year and 26 percent behind the 5-year average.

     Information for the period July 15 - 26, 2019, issued biweekly

     Published by:
     Dairy Market News - Madison, WI
     DANIEL JOHNSON, 608-422-8605
     Email: daniel.johnson4@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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