UPPER MIDWEST DAIRY NEWS

Transcription

1 Federal Milk Market Administrator U.S. Department of Agriculture UPPER MIDWEST DAIRY NEWS H. Paul Kyburz, Market Administrator Volume 9, Issue 5 Upper Midwest Marketing Area, Federal Order No. 30 May 2008 Inside This Issue: December 2007 Sources of Producer Milk... 2 Computation of Producer Price Differential... 4 Utilization and Classification... 5 Commodity Prices and Market Statistics... 6 Class Prices and Producer Prices... 7 David R. Shipman Associate Administrator of AMS Shipman Named Associate Administrator The U.S. Department of Agriculture s Agricultural Marketing Service (AMS) recently announced the selection of David R. Shipman as the new Associate Administrator of the agency. I am pleased to announce the appointment of David Shipman for the Associate Administrator post, said AMS Administrator Lloyd Day. His vast experience and proven abilities in a variety of leadership positions throughout USDA make him an ideal choice for this important position. Shipman has worked for USDA since Prior to this appointment, since 1994, Shipman served as the Deputy Administrator for USDA s Grain Inspection, Packers and Stockyards Administration. Shipman also has served as Acting Deputy Assistant Secretary for USDA's Marketing and Regulatory Programs and Acting Administrator for the Grain Inspection, Packers and Stockyards Administration. He was an alternate U.S. delegate to Codex Alimentarius, the major international mechanism for establishing technical standards for international trade in foods. Shipman is also a member of various trade and technology policy groups at USDA. The Associate Administrator is responsible for a wide range of programs that facilitate the domestic and international marketing of U.S. agricultural products. The Programs under the Associate Administrator s direction include a variety of fee-for-service, agricultural and food product certification activities; daily commodity price reporting for U.S. and foreign markets; oversight of industry-funded research and promotion programs; regulatory programs that ensure fair trade practices in agricultural markets and procurement of commodities, which include fruits and vegetables, meat, poultry, fish and egg products, for the national school lunch and other federal food and nutrition programs. Shipman is a graduate of the University of Connecticut. His selection comes at the retirement of Dr. Kenneth C. Clayton, who served in the Associate Administrator position for over 19 years and served at USDA for over 30 years. In April, 16,519 producers delivered to the market with an average daily delivery of 5,234 pounds. Producer milk totaled 2.5 billion pounds, up 407 million pounds from March and 580 million pounds above April Class I utilization totaled 371 million pounds, up 3.5% from March on a Pool Summary daily basis. Class I usage accounted for 14.8% of producer milk. The April Producer Price Differential (PPD) is $0.47 per cwt. The Statistical Uniform Price is $17.23 per cwt., down $0.52 from March, but $1.08 above April Market statistics for April are shown on Pages 4 and 5. April 2008 Producer Milk by Class Product Percent Pounds Price $/cwt. Class I ,351, Class II ,210, Class III ,927,368, Class IV ,737, Total 2,512,668,403

2 Page 2 UPPER MIDWEST DAIRY NEWS Volume 9, Issue 5 December 2007 Sources of Producer Milk Producer Milk by State During December 2007, 67% of producer milk was received from Wisconsin, with 25.5% from Minnesota (See Table 1 below). The remaining producer milk, about 8%, was primarily received from Illinois, Iowa, and North and South Dakota. In addition, a small quantity of milk was pooled on the order from each of the states of Michigan, Montana and Idaho. Idaho Montana Upper Midwest Marketing Area and December 2007 Procurement Area North Dakota South Dakota Minnesota Iowa Wisconsin Illinois Michigan Producer milk in December 2007 totaled 2.4 billion pounds, up 133 million pounds from the previous year. In 2007, producer milk was received from Idaho, but not in December of either 2006 or 2005, while no producer milk was received from Missouri, Nebraska, Indiana and Ohio in 2007 after having Marketing Area Procurement Area producer milk in December of either 2006 or Table 1 shows, for December 2007, the number of counties from which produc- Table 1 Producer Milk by State, December 2007 Producer Milk Counties from Number of Million Percentage of Market - December Which Received Producers Pounds Wisconsin 70 10,166 1, Minnesota 80 3, Iowa South Dakota Illinois North Dakota Michigan Montana 2 R R * Idaho 1 R R * 0 0 Missouri Nebraska * 0 Indiana * Ohio R Market ** ,262 2, R = Restricted, included with Wisconsin data. * Less than 0.05%. ** Revised from previously published data. Some totals do not add due to rounding.

3 Volume 9, Issue 5 UPPER MIDWEST DAIRY NEWS Page 3 er milk was received and the number of producers and pounds of producer milk represented by each state. In addition, the percentage of producer milk represented by each state is shown for December of 2007, 2006, and The map on Page 2 graphically shows the states and counties from which producer milk was received in December Producer Milk for Top 15 Counties The 15 top counties from which producer milk was received in December 2007 are shown in Table 2 below, along with the number of producers and pounds of producer milk represented by each county. The rank, number of producers, and pounds of producer milk for those same counties for December 2006 are also shown. Of the top 15 counties in December 2007, 13 were in Wisconsin and 2 were in Minnesota. The makeup of the top 15 counties in December 2007 was the same as a year earlier, except that most changed order from December For example, Stearns County, Minnesota was ranked number 1 in 2007, but had been ranked number 3 in 2006, and Dane County, Wisconsin, the highest ranked county in 2006, was ranked number 5 in The top 15 counties supplied 39% of total producer milk on the order in December 2007, and accounted for 34% of the producers. A complete list of producer milk by state and county for December 2007 and December 2006 is available on our website at: Homepage/fo30_data.html. Table 2 15 Top Counties in Deliveries of Producer Milk * December 2007 December 2006 Number of Producer Number of Producer County State Rank Producers Milk Rank Producers Milk (Mil. Lbs.) (Mil. Lbs.) Stearns MN Marathon WI Clark WI Manitowoc WI Dane WI Brown WI Fond du Lac WI Outagamie WI Kewaunee WI Dodge WI Calumet WI Shawano WI Chippewa WI Sheboygan WI Winona MN Total ** 5, , Market 15,262 2,424 15,316 2,292 Percentage of Market * Revised from previously published data. ** Producer milk totals do not add due to rounding.

4 Page 4 UPPER MIDWEST DAIRY NEWS Volume 9, Issue 5 Computation of Producer Price Differential-April 2008 Utilization Product Component Percentage Pounds Pounds Rate Value Class I Differential Value $ 6,456, Product 14.8% 371,351,740 Skim Milk 366,005,322 $ ,668, Butterfat 5,346, ,208, Class II Product 5.0% 126,210,799 Nonfat Solids 10,511, ,228, Butterfat 9,918, ,697, Class III Product 76.7% 1,927,368,849 Protein 58,329, ,194, Other Solids 109,926, ,837, Butterfat 69,790, ,926, Class IV Product 3.5% 87,737,015 Nonfat Solids 7,170, ,763, Butterfat 8,680, ,802, SCC Adjustment (Class II, III, and IV) 1,345, Total Producer Milk * 2,512,668,403 $ 444,129, Add: Overage 44, Inventory Reclassified 167, Other Source Milk.60(h) 0.00 Other Source Milk.60(i) 0.00 Subtract: Transportation Credit 106, Assembly Credit 295, Credit for Reconstituted FMP 0.00 Producer Milk Protein 285,243, Producer Milk Other Solids 8,901, Producer Milk Butterfat 138,241, Producer Milk SCC Adjustment 1,600, Total Milk and Value 2,512,668,403 $ 9,952, Add: Location Adjustment -- Producer and Unregulated Supply Plant Milk 1,922, One-Half Unobligated Balance Producer Settlement Fund 958, Total Value $ 12,833, Subtract: Producer Settlement Fund Reserve ,023, Producer Price Differential ** $0.47 $ 11,809, * An estimated 87 million pounds of milk was not pooled. ** Producer Price Differential is dollars per cwt. at the Base Zone of Cook County, Illinois. Upper Midwest Pool Statistics - April 2008 Market Class I Diverted to Location Differential Pool Received at Pool and Adjustment to Class I Differential Rate Plants Pool Plants Nonpool Plants Total Producers to Handlers Cwt. Number Pounds Pounds Pounds Value Pounds Value $ ,862,376 22,471,997 98,334,373 $ 0 75,722,968 $1,363,013 $ ,182, ,863,160 1,060,045, , ,220,770 2,716,364 $ ,464,384 1,089,270,830 1,274,735,214 1,274, ,398,251 2,046,770 $ ,731,624 54,821,251 79,552, ,650 20,009, ,161 Total ,241,165 2,031,427,238 2,512,668,403 $1,922, ,351,740 $6,456,308

5 Volume 9, Issue 5 UPPER MIDWEST DAIRY NEWS Page 5 Utilization and Classification of Milk April 2008 March 2008 April 2007 Product Butterfat Product Product Pounds Pounds Pounds Pounds Class I Utilization: Packaged Disposition Milk 51,358,793 1,626,703 52,782,807 53,170,740 Flavored Milk 4,040, ,545 3,853,185 4,173,980 Reduced Fat Milk 141,370,115 2,691, ,161, ,146,902 Lowfat Milk 50,854, ,811 50,272,614 48,781,317 Fat Free Milk 89,975,747 90,633 88,728,075 89,279,443 Flavored Reduced and Fat Free Milk 33,365, ,946 28,923,811 29,294,520 Buttermilk 2,350,428 24,304 2,510,689 2,273,629 Total Packaged Disposition 373,315,489 5,295, ,233, ,120,531 Total Ending Inventory 28,438, ,830 28,128,181 28,622,569 Bulk to Nonpool Plants 2,006,952 38,334 2,591,044 1,658,730 Shrinkage 1,665,709 92,759 1,641,760 2,443,856 Total Class I Utilization 405,427,023 5,840, ,593, ,845,686 Other Order Plants (3,643,885) (68,902) (2,584,149) (1,807,215) Beginning Inventory (29,521,435) (406,494) (31,926,851) (31,307,647) Reused Products Other Source Milk (785,931) (14,494) (607,492) -- Overage Interhandler Adjustment (124,032) (3,944) 328, ,400 Class I Producer Milk 371,351,740 5,346, ,803, ,859,224 Class II Utilization: Total Class II Utilization 143,748,762 10,601, ,982, ,871,651 Other Order Plants (2,522,411) (27,151) (684,560) (3,290,583) Beginning Inventory (4,381,267) (126,520) (583,975) (1,969,602) Reused Products (10,139,566) (34,890) (7,375,107) (7,766,860) Other Source Milk (494,719) (494,719) (450,763) -- Overage (5,407) 0 Class II Producer Milk 126,210,799 9,918, ,882, ,844,606 Class III Utilization: Total Class III Utilization 1,937,688,176 70,102,966 1,515,872,954 1,349,576,072 Other Order Plants (6,508,055) (204,726) (4,353,091) (2,292,850) Beginning Inventory (1,805,922) (60,500) (1,445,231) (1,013,023) Reused Products Other Source Milk (1,891,196) (35,701) (1,685,235) (426,718) Overage (114,154) (12,036) (21,817) (71,934) Class III Producer Milk 1,927,368,849 69,790,003 1,508,367,580 1,345,771,547 Class IV Utilization: Total Class IV Utilization 157,619,904 11,775, ,905, ,970,442 Other Order Plants (8,342,439) (398,955) (5,746,239) (3,662,270) Beginning Inventory (19,941,049) (1,122,120) (11,794,616) (14,767,795) Reused Products Other Source Milk (41,584,452) (1,567,988) (49,155,663) (31,910,860) Overage (14,949) (5,373) (39,470) (70,974) Class IV Producer Milk 87,737,015 8,680,780 98,169,159 74,558,543 Total Producer Milk -- All Classes 2,512,668,403 93,735,919 2,105,223,364 1,933,033, Restricted Information

6 Page 6 UPPER MIDWEST DAIRY NEWS Volume 9, Issue 5 Commodity Prices Weighted Monthly Average NASS Prices * Weighted Two-Week Average NASS Prices * Cheddar Cheese Nonfat Cheddar Cheese Nonfat Month/Year Blocks Barrels Average Butter Dry Milk Dry Whey Blocks Barrels Average Butter Dry Milk Dry Whey Dollars per Pound Dollars per Pound Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr Chicago Mercantile Exchange Butter Cheddar Cheese Nonfat Dry Milk (Low/Medium Heat) Whey Powder Month/Year Grade AA Blocks Barrels Central & East West Central West Dollars per Pound Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr Market Statistics Total Est. Average Other Weighted Distributing Supply Coop.9(c) Producer Daily Delivery Class I Butterfat Protein Solids Average Month/Year Plants Plants Handlers Producers Milk Per Producer Utilization Test Test Test SCC Mil. lbs. Pounds Percent Percent Percent Percent (000) Apr ,615 1,933 4, May ,763 1,873 5, Jun ,122 1,989 4, Jul ,250 2,390 4, Aug ,312 2,352 4, Sep ,695 2,253 4, Oct ,599 2,345 4, Nov ,576 2,303 4, Dec ,546 2,427 4, Jan ,617 2,538 5, Feb ,503 2,409 5, Mar ,208 2,105 5, Apr ,519 2,513 5, * NASS = National Agricultural Statistics Service, USDA.

7 Volume 9, Issue 5 UPPER MIDWEST DAIRY NEWS Page 7 Class Prices Class I Price Mover Class I Price at Cook County, IL Class II Price Skim Skim Nonfat Skim Month/Year Butterfat Milk 3.50% Butterfat Milk 3.50% Butterfat Solids Milk 3.50% lb. cwt. cwt. lb. cwt. cwt. lb. lb. cwt. cwt. Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Class III Price Class IV Price Other Skim Nonfat Skim Month/Year Butterfat Protein Solids Milk 3.50% Butterfat Solids Milk 3.50% lb. lb. lb. cwt. cwt. lb. lb. cwt. cwt. Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr Producer Prices Producer Statistical SCC Producer Price Uniform Price Other Solids Adjustment Mailbox Price Month/Year Differential (at 3.50%) Butterfat Price Protein Price Price Rate (at test) $ per cwt. $ per cwt. $ per lb. $ per lb. $ per lb. $ per cwt. $ per cwt. Feb Mar Apr May Jun (0.05) Jul Aug Sep Oct Nov Dec Jan Feb Mar (0.25) Apr

8 Summary of Federal Order Data - April 2008 Uniform or Statistical Uniform Price at 3.5% Butterfat Class I Producer FOB Change From Federal Order Producer Producer Class I Class I Price FOB Cook Cty. Previous Number / Name Deliveries Receipts Utilization Price Differential Market Illinois Year Thousand Pounds Percent Dollars per Cwt. Dollars per Cwt. 1 Northeast 2,121, , $ $1.79 $ $ $ Appalachian 488, , n/a Florida 269, , n/a Southeast 608, , n/a Upper Midwest 2,512, , Central 1,030, , Mideast 1,444, , Pacific Northwest 645, , Southwest 1,087, , Arizona 372, , n/a All Market Average or Total * 10,582,409 3,729, n/a = Not applicable. * May not add due to rounding. The U.S. Department of Agriculture (USDA) prohibits discrimination in all its programs and activities on the basis of race, color, national origin, age, disability, and where applicable, sex, marital status, familial status, parental status, religion, sexual orientation, genetic information, political beliefs, reprisal, or because all or part of an individual's income is derived from any public assistance program. (Not all prohibited bases apply to all programs.) Persons with disabilities who require alternative means for communication of program information (Braille, large print, audiotape, etc.) should contact USDA's TARGET Center at (202) (voice and TDD). To file a complaint of discrimination, write to USDA, Director, Office of Civil Rights, 1400 Independence Avenue, S.W., Washington, D.C , or call (800) (voice) or (202) (TDD). USDA is an equal opportunity provider and employer. FEDERAL MILK MARKET ADMINISTRATOR U.S. DEPARTMENT OF AGRICULTURE 4570 W 77th St., Suite 210 Minneapolis, MN Phone: (952) Fax: (952) FIRST-CLASS MAIL U.S. POSTAGE PAID HOPKINS, MN PERMIT NO. 586 Website: Address Service Requested ND MI SD MN WI IA IL Upper Midwest Marketing Area F.O. 30