guardian.co.uk  3 hrs ago  Comment 
Supermarket is investigating alleged tampering in two separate locations and urges shoppers not eat the Santas The Co-op is recalling chocolate Santas after batteries were found inside two of them. The retailer said there were two ÔÇťalleged...
BBC News  Dec 23  Comment 
About 70% of India's milk is adulterated by the time it reaches consumers. We've been to visit one dairy farm in India offering something fresh.
Forbes  Dec 21  Comment 
How much weight would Santa gain from eating 3 cookies and a glass of milk at every house he goes to? This question was originally answered on Quora by Dave Consiglio.
Agrimoney.com  Dec 21  Comment 
... and production in the top exporting nation is believed to have fallen further since to a five-year low, at a time of falls elsewhere too
NPR  Dec 21  Comment 
Some members of Congress are calling on the government to crack down on food labels like soy milk or hemp milk. They say the "milk" label is legally reserved for only one beverage source: cows.
Agrimoney.com  Dec 21  Comment 
... but squeezed farm financials in New Zealand, and limited inventories in China, leave room for price revival, Rice Dairy says
The Hindu Business Line  Dec 21  Comment 
MobiKwik, a mobile wallet company, has tied up with Amul, a leading dairy cooperative. This association will help customers of Amul in making cashless payments using MobiKwik at 7,000 Amul outlets...
New York Times  Dec 20  Comment 
Rediscovering flan, that simple alchemy of eggs, milk and sugar, and a Christmas tradition throughout Spain and Latin America.
USDA NASS  Dec 20  Comment 
November Milk Production up 2.6 Percent. Milk production in the 23 major States during November totaled 16.1 billion pounds, up 2.6 percent from November...
Agrimoney.com  Dec 20  Comment 
But squeezed farm financials in New Zealand, and limited inventories in China, leave room for further rallies


"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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