Agrimoney.com  4 hrs ago  Comment 
Rabobank sees dairy prices, up 10% in two weeks, continuing their rise, as data shows EU milk output falling at its quickest in three years
Agrimoney.com  Oct 25  Comment 
The number of dairy cows in Russia is in long term decline, as investors shun the sector, leaving milk output at the lowest level on record
The Economic Times  Oct 24  Comment 
Chennai-based Hatsun Agro Products has announced a nearly Rs 170-crore investment in setting up of cold-chain infrastructure.
BBC News  Oct 23  Comment 
The concept of shopping via a daigou is booming in China, with people employing them in Australia to get their hands on goods such as baby milk formula.
New York Times  Oct 21  Comment 
Cow’s milk is an excellent source of nutrients for kids, but drinking too much can cause nutritional imbalances.
Agrimoney.com  Oct 20  Comment 
Low farmgate prices of milk will lead the EU's milk production growth to slow down to 0.3%.
USDA NASS  Oct 20  Comment 
The Economic Times  Oct 20  Comment 
The company has also plans to expand the number of brands it owns from existing four to total of seven by the end of next year.
Red Orbit  Oct 19  Comment 
Milk from Tasmanian devils appears to be a promising weapon against antibiotic-tolerant superbugs, according to a new study in the journal Scientific Reports. The marsupial’s milk includes special peptides that seem to be capable of tackling...
newratings.com  Oct 19  Comment 
WASHINGTON (dpa-AFX) - Popular candy brand M&M's has introduced a new caramel chocolate candy flavor, which will be available on shelves from May 2017. The new candies will have a smooth caramel center covered with M&M's milk chocolate,...
The Economic Times  Oct 19  Comment 
"It now plans to offer four new innovative flavours – Kacha Aam, Achari, Piri Piri & Schezwan – these flavours have been developed keeping in mind the current taste trends."


"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.


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