The Economic Times  Aug 11  Comment 
"Most of the milk, butter milk, lassi, curd are all exempt from GST so we do not see much impact of GST on any products," said Rao.
Wall Street Journal  Aug 9  Comment 
Dairy makers are hoping puréed fruit and genetically screened cows can help win back consumers who have soured on milk.
Wall Street Journal  Aug 8  Comment 
The Texas-based milk supplier cut its profit expectations for 2017 as its largest customer, Wal-Mart Stores Inc., readies its own milk-processing plant.
Clusterstock  Aug 2  Comment 
In 2001, Indra Nooyi was named president of PepsiCo. Five years later, she would be promoted to CEO, and in 2007 she would become chairman of the company as well. But the night she came home after being named to president, she wrote on...
The Hindu Business Line  Aug 1  Comment 
ITC Foods today announced the launch of a biscuit variety “enriched” with native Indian cow milk. The Sunfeast NaatMaad Paal “biscuits are enriched with native Indian cow milk and fortified with th...
Agrimoney.com  Jul 26  Comment 
The dairy giant raises its outlook for prices paid to New Zealand farmers, as whole milk powder futures gain, lifted by the butter rally
The Hindu Business Line  Jul 26  Comment 
Maker of Cadbury Dairy Milk creates specific, bundled offerings for e-commerce
Mondo Visione  Jul 21  Comment 
On Wednesday 19 th  July, EEX set a new daily trading record in Dairy Futures with a total of 698 contracts (439 in Skimmed Milk Powder and 259 in Butter) traded.
Financial Times  Jul 21  Comment 
After selling milk business in 2015, growth will need to come from other products


"Milk" redirects here. For the actual futures contract on the CME please see milk futures.

In the US, dairy has a farm value of production that makes it second only to beef [1]. Despite increasing efficiency of production, domestic dairy demand has remained so high that US dairy farmers have found little incentive to export abroad. Significant export activity is limited to powdered milk and cheese to Mexico. But as seen in Chart 1, the US imports large quantities of dairy products, especially relatively expensive cheese products from the European Union.

See Beef Prices for more on US beef production and consumption, and the Dairy Products page for more on this industry.

The chart at left shows continuos front-month futures prices for Milk traded on the Chicago Mercantile Exchange.


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Chart 1. Image from the USDA.
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Chart 2. Data from the USDA.

Dairy prices are historically relatively stable. However, even small fluctuations in price can have a big effect on related companies. The USDA projects that a slight increase in the number of milk-producing cows and increasing milk production efficiency will result in a continued drop in domestic dairy prices.

The USDA forecasted the 2007 all milk price 10 cents higher than the earlier $19.05 prediction to $19.15. In 2008, the all milk price forecast is increased from $18.00 to $18.80. The minimum price of raw milk is regulated in most parts of the country by the government at $9.90, but ever since Cooperatives Working Together (CWT), a dairy farmers group, put into place initiatives in 2002 to control milk supply by retiring herds, milk price have shot up and have remained around $14.


Who wins from lower domestic dairy prices?

Who loses from lower domestic dairy prices?

  • Hain Celestial Group (HAIN) is a major producer of soy products, often seen as competing with dairy products for demand and consumption. Lower dairy prices may worsen the price difference and discourage commercial consumers from turning to slightly pricier soy alternatives.
  • AspenBio Pharma (OTC:APNB) and other companies that derive significant profit from manufacturing dairy-related bovine hormones may feel the strain of lower dairy prices through the purchasing capacity and demand of bovine farmers for more yield-increasing drugs.

The New Export Market

A growing export market may counteract the effect of domestic dairy price drops. Chinese dairy consumption is growing at an annual 15%, and many other developing countries weigh in at about 10%--comparing such numbers to the US's annual domestic consumption growth of a paltry 0.4% has led many to believe that China could be the US's next big dairy surplus export market.

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