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U.S. cheese production increased 1.7% last year

February 1, 2012 By Leave a Comment

Total cheese production in the United States in December was 929 million pounds up 2.4 percent from December of 2010. Italian-type cheese production increased 3.5 percent from a year ago to 409 million pounds while American-type production was 1.2 percent higher at 371 million pounds in December.

Wisconsin cheese production increased 3.5 percent in December to 230.2 million pounds. The Badger State saw American type cheese production increase 0.9 percent to 68.7 million pounds although cheddar output declined 0.8 percent to 49.4 million pounds. Italian cheese production increased 5.8 percent in Wisconsin in December to 121.6 million pounds.

California cheese production increased 2.7 percent to 195.5 million pounds. American cheese production in the Golden State was 1.8 percent lower at 50.13 million pounds including a 0.1 percent decline in cheddar output to 27.78 million pounds. Italian output increase 5.7 percent to 127 million pounds.

Rounding-out the top-five cheese producing states compared to a year ago: Idaho 75.67 million pounds +1.3%; New York 68.6 million pounds +5.9%: New Mexico 64.69 million pounds -2.8%.

Butter production totaled 166 million pounds in December up 8.9 percent from a year ago.

Other product production compared to a year ago:

Nonfat dry milk, 150 million pounds +8%

Skim milk powders, 36.6 million pounds +34.6%

Dry whey, 83 million pounds -7.1%

Lactose, 85.7 million pounds +3.7%

Whey protein concentrate, 39.6 million pounds +5.8%

Regular ice cream 50.3 million gallons, down slightly

Low fat ice cream 24.5 million gallons +16.3%

Sherbet 2.42 million gallons -17.7%

Frozen yogurt 3.27 million gallons +11%

For the year, total cheese production 10.609 billion pounds up 1.7 percent from 2010. Italian type cheese production totaled 4.568 billion pounds up 3.3 percent. Mozzarella output was 2.4 percent higher at 3.573 billion pounds. American type cheese production declined 0.4 percent to 4.259 billion pounds with Cheddar output 2.6 percent lower totaling 3.148 billion pounds.

Butter production for the year increased 15.4 percent to 1.805 billion pounds.

Read the full NASS report here:

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Raw milk amendment approved in Indiana State Senate

February 1, 2012 By Leave a Comment

Monday afternoon the Indiana State Senate approved an amendment that proposes the direct sale of raw milk to the public.  Indiana Professional Dairy Producers President LuAnn Troxel says there are some concerns over the proposed rules of the legal sale of raw milk.  She says many of the ag professionals that have been consulted do not believe that this particular amendment properly deals with the issue.

“For example,” she says, “Our state veterinarian needs to be involved in this decision.”  In addition, Troxel believes the Indiana board of Public Health should be involved in the conversation.  She tells Brownfield, “If we’re going to truly discuss legalizing the sale of unpasteurized milk, there should be a discussion among the stakeholders involved, the public health officials and scientist.”

Todd Janzen, legal adviser to IPDP summarizes the amendment as follows: 

  • If producers have less than 20 cows they can register to sell raw milk (Notwithstanding any other law, a milk producer who does not have a permit under this chapter may register with the department for the purposes described in subsection (d) if the milk producer milks fewer than twenty (20) cows.)
  • The milk producer must provide a sanitary container and fill the container in a sanitary manner
  • The raw milk producer must display a sign that states “Raw milk products are sold here.  Raw milk products are not pasteurized.”
  • The container must contain a label that states:  “This product contains raw milk.  Consume at your own risk.”

The bill the amendment is attached to is expected to come up for a vote later today.

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CWT assists in cheese and butter sales

January 30, 2012 By Leave a Comment

Cooperatives Working Together (CWT) has accepted 17 requests for export assistance from Bongards, Dairy Farmers of America, Darigold, Land O’Lakes, Upstate Niagara subsidiary O-At-Ka and United Dairymen of Arizona to sell a total of 2.84 million pounds of Cheddar, Monterey Jack and Gouda cheese and 10.955 million pounds of butter to customers in Asia, Europe, the Middle East and North Africa. The product will be delivered January through June 2012.

After reviewing several market fundamentals, CWT determined that it should begin assisting member cooperatives in making sales of butter overseas. CWT’s strategic plan, approved by the CWT Committee last year, called for funds to be budgeted in 2012 for that purpose.

In 2012, CWT has assisted member cooperatives in making export sales of Cheddar, Monterey Jack and Gouda cheese totaling 13.2 million pounds and butter totaling just less than 11 million pounds to 12 countries on four continents.

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Buyers jump in the cash cheese market

January 27, 2012 By Leave a Comment

Just as we mentioned cheese buyers were holding-off as prices decline, they jumped in and bought 26 loads on Friday. As a result, cash cheese barrels gained a penny to $1.495 and blocks increased a half-cent to $151 on the Chicago Mercantile Exchange on Friday. This was the first time the cash cheese market increased since January 6th. Class III futures were mixed for the session, ranging from 9-cents lower to 6-cents higher.

For the week, cash cheese barrels down .75, blocks up .5, butter is 2 cents lower. January Class III is unchanged, February up 23 cents, the March contract is 3 cents higher, April is 8 cents lower and July is down a dime from a week ago.

The January 1 cattle inventory report from USDA puts the nation’s dairy herd at 9.2 million cows up 1 percent from a year ago. Replacement dairy heifers were down 1 percent at 4.5 million head.

The national weighted average advertised price for half-gallons of organic milk decreased 66 cents to $2.68 last week. That is on top of a 28-cent decrease the previous period. USDA Ag Market News says despite tight supplies and even some shortages of organic milk, a national supermarket chain is running a major promotion offering its store brand at historically-low prices.

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Cheese buyers back-off

January 26, 2012 By Leave a Comment

Dairy Market News says last week’s drop in cash cheese prices really hit the cheese market this week as buyers fell back and decided to “assess” the sudden price decline. While prices have held steady this week, buyers who use monthly averages to price may wait until February to buy.

Milk production is increasing; Dairy Market News says production in the Midwest is 1 to 4 percent higher for the month thanks to the mild winter weather. Production is also up in the Northeast and Southeast. Florida exported 70 loads again this week. Cheese plants with milk supplies locked-in are building inventory while those who buy spot loads of milk are holding-off. California milk production was up 3.8 percent in December and reports are it has increased even more this month. Some western cheese plants under milk supply contracts are pushing milk into butter-powder operations. Arizona milk production is up while New Mexico is called steady to slightly higher.

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New government restrictions for Fonterra?

January 25, 2012 By Leave a Comment

The government of New Zealand wants to loosen Fonterra’s hold on the dairy industry. A proposed amendment to the Dairy Industry Restructuring Act (DIRA) would require Fonterra to sell up to 5 percent of the co-op’s milk to other milk processors in the country at a regulated price. The increase from the current 3 percent would hopefully encourage more independent processors to get into the market; more processors should mean increased competition and reduced retail dairy product prices. The proposal also calls for the New Zealand Commerce Commission to monitor Fonterra’s milk pricing.

Fonterra says the move would just mean more milk is handed over to foreign-owned dairy companies who would simply process the milk into powder and sell it on the more lucrative export market resulting in even higher domestic prices.

Public comments on the proposal are being accepted through February 24th.

Formed in 2001 by the merger of the country’s two largest dairy cooperatives, Fonterra has nearly 10,500 patrons and controls at least 90 percent of the diary industry in New Zealand. It also has interest in dairy plants in Australia and a joint venture in the United States with Dairy Farmers of America. Fonterra is the largest dairy exporter in the world with more than a third of international dairy trade.

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U.S. milk production +2.5% in December; +1.8% for 2011

January 23, 2012 By Leave a Comment

Milk production in the United States totaled 16.559 billion pounds in December up 2.5 percent from December of last year. The nation’s dairy herd decreased 20,000 cows while production per cow increased 29 pounds to 1,796.

Milk production in the 23 major dairy states totaled 15.4 billion pounds up 2.7 percent from December of 2010. Those states added 99,000 cows compared to a year ago taking the herd to 8.49 million head while production per cow in the states increased 27 pounds to 1,818.

California milk production in December totaled 3.496 billion pounds up 3.8 percent from a year ago. The Golden State added 30,000 cows to make the herd 1.779 million head while production per cow increased 40 pounds to 1,965.

Wisconsin milk production in December totaled 2.214 billion pounds up 2.6 percent from December of 2010. The Badger State herd held steady at 1.265 million cows but production per cow increased 45 pounds to 1,750.

Milk production for the October through December quarter totaled 48.7 billion pounds up 2.3 percent from the same period in 2010.

Preliminary numbers for the year, U.S. milk production totaled 196.216 billion pounds up 1.8 percent from 2010. The nation added 80,000 cows taking the herd to 9.197 million and production per cow increased 186 pounds to average 21,335 for the year.

Read the full NASS report here:

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Alternative milks slowly gaining popularity

January 20, 2012 By Leave a Comment

A new report from Packaged Facts says alternative dairy beverage sales increased 13 percent in 2011 reaching $1.33 billion. By volume, sales for shelf-stable products are up about 8 percent and refrigerated sales increased 13 percent according to Symphony IRI data.

As far as market share, Packaged Facts says soy milk has 68.7 percent of the dairy alternative market, almond milk has 21.2 percent, rice milk 7.2 percent and coconut milk has 2.6 percent.

While soy milk is the most popular alternative choice with 11 percent of adults, sales have declined about 15 percent since 2008. Almond milk sales increased 79 percent last year and is now the choice of 9 percent of adults.

Packaged Facts says health issues like lactose intolerance and allergies are the main reasons consumers choose a dairy alternative. Concerns about antibiotics and growth hormones are also contributing factors along with a vegan or vegetarian lifestyle.

The $1.33 billion in alternative milk sales pales by comparison to the estimated $13 billion retail dairy milk sales but it does indicate a trend. As of the end of November, packaged fluid dairy milk sales were down 1.6 percent from a year ago. Conventional fluid milk sales are 3.1 percent lower while organic fluid milk sales were up 8.7 percent by volume.

Read more here:

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Down week for dairy

January 20, 2012 By Leave a Comment

Dairy markets continued their downward trend on Friday; cash cheese barrels declined 1.25 cents to close at $1.5025 per pound while blocks dropped another 4 cents to finish at $1.505. Class III futures for the first half of the year slipped a little but June through December contracts added a couple of cents each.

For the week, cash cheese barrels lost 4.75 cents, blocks dropped 9 cents and butter declined 4.25 cents. Class III futures, January slipped a penny while February fell 66 cents, March dropped 70 cents, April lost 60 cents and the July contract is 18 cents lower.

Monthly Cold Storage Report from USDA shows 981.3 million pounds of cheese in the nation’s warehouses as of the end of December. That is 1 percent more than at the end of November but 6 percent less than a year ago. American cheese stocks totaled 600.6 million pounds up 3 percent for the month but 5 percent lower than at the end of December 2010.

USDA reports 262,000 dairy cows went to slaughter in December, 9,000 more than in November but 3,000 less than in December of 2010. For the year, 2.914 million dairy cows were slaughtered under federal inspection, 107,000 more than in 2010.

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Conventional and organic milk numbers

January 16, 2012 By Leave a Comment

Milk production is increasing in the Southeastern United States, Dairy Market News reports Florida shipped 70 loads out of state last week up from 45 the previous week. It was just three weeks ago that Florida was still importing milk. Spot loads were available in the Midwest and while production per cow is at a seasonal low in the Southwest, overall milk supply is slightly above a year ago because the herds are larger.

Packaged fluid milk sales in November totaled 4.6 billion pounds, down 1.6 percent compared to November of 2010. Sales of conventional fluid milk declined 3.1 percent from a year ago while organic milk sales increased 8.7 percent.

The national weighted average advertised price for organic half-gallons of milk decreased 28 cents to $3.34. The weighted average for gallons of organic milk was 3 cents lower at $5.96 per gallon. One note of interest, virtually all advertising in the Southeastern United States is for 8-ounce containers which are aseptically packaged and have a much longer shelf life…which means they may have been packaged prior to the current tight supply of organic milk.

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