QUOTE AND NEWS
guardian.co.uk  7 hrs ago  Comment 
Action throughout UK increases pressure on supermarkets after days of ‘trolley dash’ protests by farmers emptying shop shelves of milk Morrisons faces a day of action on Thursday by dairy farmers angry at milk price cuts they say are forcing...
Agrimoney.com  Aug 5  Comment 
Prices at GlobalDairyTrade reach their weakest in 13 years, led by milk powder. Skim milk powder values have now more than halved in five months
BBC News  Aug 4  Comment 
Dairy farmers are continuing to protest at supermarkets in parts of the UK over the price they are paid for their milk.
NPR  Aug 3  Comment 
Most U.S. dairy cows are born with horns, but most farms remove them. Animal welfare groups say dehorning is cruel. Instead, they want ranchers to breed more hornless cattle into their herds.
The Hindu Business Line  Aug 3  Comment 
With an aim to help lactating mothers who are travelling, Tamil Nadu Chief Minister Jayalalithaa today inaugurated, through video conferencing, 352 rooms in bus terminals across the state where wo...
newratings.com  Aug 3  Comment 
WASHINGTON (dpa-AFX) - Kilwin's Quality Confections Inc., of Petoskey, Michigan, is voluntarily recalling 5 ounce containers of SUGAR FREE Milk Chocolate Caramels due to undeclared cashew in the product. People with an allergy to cashews run...
WA Business News  Aug 3  Comment 
Brownes Dairy believes it has benevolently quelled a social media revolt sparked by its move late last year to alter its flavoured milk recipes.
The Economic Times  Aug 1  Comment 
The govt should immediately set up such centres especially in the areas considered to be farmer suicide hotspots such as Vidarbha, says Swaminathan.
The Hindu Business Line  Jul 30  Comment 
RS Sodhi, alumnus of the Institute of Rural Management-Anand (IRMA) and Managing Director of Gujarat Cooperative Milk Marketing Federation (GCMMF), which markets the Amul brand dai...
Yahoo  Jul 30  Comment 
In cities such as San Francisco and New York, letter carriers have been showing up on people’s doorsteps as early as 3 a.m. bearing unusual cargo: milk, eggs, and other perishable items.




RELATED WIKI ARTICLES
 
TOP CONTRIBUTORS


"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.

Overview

Error creating thumbnail
Chart 1. Image from the USDA.
Error creating thumbnail
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.

[1]


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.

Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki