News

Dairy market notes

Butter prices slipped 8 cents for the week as Easter and Passover needs were met. The price is still above the world market; the Global Dairy Trade auction on Tuesday saw butter sell at $1.74 per pound.

There are reports that the supply of organic milk is getting tight as the extended winter weather has kept cows out of the pastures in Wisconsin and New England. Meanwhile the U.S. weighted average advertised price of a half-gallon of organic milk is $3.25 down 35 cents from two weeks ago and 29 cents below a year ago. Conventional half-gallons are advertised at $1.82 putting the conventional-to-organic spread at $1.43, a year ago it was $1.24.

Commercial disappearance of dairy products in 2013 totaled 192.7 billion pounds, down 0.2 percent from 2012. Fluid milk disappearance in 22013 was down 2.3 percent from 2012, nonfat dry milk dropped 59.6 percent. American cheese disappearance increased 1.6 percent and other cheese use was 1.8 percent higher than in 2012. Butter disappearance was unchanged year-to-year.

The 2013 average milk price in the Federal Orders was $20.06 per hundredweight, up $1.47 from 2012. Prices ranged from $22.95 in Florida to $17.93 in New Mexico. Prices increased in all Federal orders.

The January, 2014 mailbox price for all orders averaged $23.47 up $1.43 from December and $3.29 above January of 2013. Producers in Florida got the highest price for January production, $25.33 while New Mexico was the lowest; $21.53 per hundredweight.