Dairy Processor News
USDA weekly prices

Milk heads toward the 'doldrums' as cheese production slows, says USDA

Farm milk production is stepping down gradually in most areas of the country, reports Dairy Market News for the week of June 11 to 15. The publication from the USDA says that "most areas also report bottled milk demand is heading toward the summer doldrums."

USDA also notes that production schedules at cheese plants are slowing as milk supplies appear to have passed the peak Spring flush.
The milk production forecast for 2012 is raised as cow numbers are expected to decline more slowly. The production forecast for 2013 is unchanged. Export forecasts are raised for both 2012 and 2013 on expected strength in cheese and nonfat dry milk (NDM) sales.

The all milk price forecast for 2012 is lowered to $16.85 to $17.25. The all milk price for 2013 remains unchanged from last month at $17.25 to $18.25

Here's a summary of the most recent report. Read the entire Dairy Market News analysis here.

FLUID MILK. Cream supplies are contracting as less standardized milk is generated for current fluid milk demand. Contract and spot cream sales into ice cream/frozen dairy dessert production increased. Some national and regional dairy dessert brands note better than expected consumer adoption of single serve ice cream-based products, which is increasing cream needs to keep pace with consumer sales. Cream multiples are increasing, with sufficient market tightness to move spot sale prices over contract prices in most regions. Crop progress is reported to be at or ahead of expected development to date. North Central region farmers’ activities center around second cuttings on alfalfa, while cool weather and intermittent rain has Utah and Idaho alfalfa harvesting temporarily on hold. Corn in Texas improved with recent precipitation.

BUTTER HIGHLIGHTS.The CME cash AA butter price remains firm and is the highest cash price since late January. Churning schedules across the country are active, basically absorbing cream volumes from regular and ongoing suppliers. Surplus cream volumes of earlier this spring are gone and churning activity is often keeping pace with demand, thus inventory clearances are lighter. Class II cream demand is seasonally strong as ice cream and ice cream mix needs increase.

CHEESE HIGHLIGHTS. Production schedules at cheese plants are slowing as milk supplies appear to have passed the peak Spring flush. Plant managers are keeping an eye on inventories and have reduced production in some cases. Mozzarella producers are especially conscious of reduced orders. Export demand has been helpful in moving cheese out of the country. FAS reported April exports up 31% from last year and up 12% for the year. Cooperatives Working Together (CWT) continues to assist with export sales this week with 3.3 million pounds accepted. The strong U.S. dollar is hindering some sales.

Read the complete report, which includes Organic Dairy Market News, online.

Did you enjoy this article? Click here to subscribe to Dairy Foods Magazine. 
You must login or register in order to post a comment.



Image Galleries

Agropur, Natrel Division USA, St. Paul, Minn.

 At its Natrel Division plant in St. Paul, Minn, Agropur makes rBST-free white and flavored milk, heavy whipping cream, half n half, buttermilk, organic milk, nutritional drinks and shakes and sport drinks. Nondairy beverages (soy, rice, coconut, and almond) coffee creamers, broth and sauces. 


This photo gallery contains additional, unpublished photos of dairy processing facilities featured in Dairy Foods magazine. To view more Behind the Scenes galleries go to our archives page!

9/23/14 2:00 pm EDT

Milk/Flavored Milk and Non-Dairy Beverages: Opportunities in the Beverage Segment

This free webinar will cover methods and ingredients available to increase protein levels, processing issues related to high-protein beverages, future ingredients and opportunities for protein fortification, adding value to milk and beverages, niche markets for high-protein milk and beverages and case studies of Core Power and Fairlife.

Frozen Desserts

What’s your preferred frozen dessert?
View Results Poll Archive

Dairy Foods Magazine

september cover

2014 September

Joseph Gallo Farms wins honors for its cheeses, sustainability practices; plus we look at what's happening with frozen desserts.

Table Of Contents Subscribe


Tharp & Young on Ice Cream: An Encyclopedic Guide to Ice Cream Science and Technology

An at once an all-inclusive guide to the meaning of hundreds of technical terms and ideas needed for ice cream manufacturing, as well as a practical introduction to the ingredients, freezing methods, flavoring, and packaging of ice cream, sherbet, sorbet, gelato, frozen yogurts, novelties and many other kinds of frozen desserts.

More Products

Clear Seas Research

Clear Seas ResearchWith access to over one million professionals and more than 60 industry-specific publications, Clear Seas Research offers relevant insights from those who know your industry best. Let us customize a market research solution that exceeds your marketing goals.

Dairy Foods Buyers Guide

cover df july 2013Resource for buyers in the dairy processing industry to find information on the leading suppliers and manufacturers.

Find Ingredients, Equipment, Distribution, R&D and More.

Start Your Search Today.


Facebook logo 40px 2-12-13 Twitter logo 40px 2-12-13  YouTube logo 40px 2-12-13  LinkedIn logo 40px 2-12-13google plus