QUOTE AND NEWS
New York Times  Apr 10  Comment 
A couple’s start-up takes online orders and delivers milk, eggs, meat and other products, including their own, across stretches of northeastern Pennsylvania. We rode along.
guardian.co.uk  Apr 10  Comment 
The US trade barriers list shows that Liam Fox could let more than just chlorinated chicken into the UK. The public deserve to know the details Related: Keep close trade ties with EU post-Brexit, UK government warned The British public is...
The Economic Times  Apr 9  Comment 
Naidu, an active dairy farmer-turned-entrepreneur who wasn’t keen on exiting Tirumala Milk but had to accede to the decision of majority of his partners.
NPR  Apr 7  Comment 
On a growing number of dairy farms, cows, not people, decide when they need to be milked. Robots can do the job day or night. For some farm families, the robots free them from rigid milking schedules.
NPR  Apr 6  Comment 
Dairy farmers on the U.S. side say they're getting paid less than what it costs to produce the milk. The Canadian system balances milk supply with consumer demand through production quotas.
NPR  Apr 5  Comment 
Many modern free-speech cases have less to do with citizens speaking to government power than with the reach of businesses and organizations into Americans' lives. We look at a few highlights.
The Economic Times  Apr 5  Comment 
At present the procurement price of milk is Rs 25 per litre. While this remains same, the additional subsidy amount will be directly transferred to the bank accounts of the dairy farmers.
The Economic Times  Apr 2  Comment 
Amul has been achieving a compound annual growth rate of more than 18% for the past eight years because of higher milk procurement, continuous expansion and new products.
The Economic Times  Apr 1  Comment 
A statement issued by the Amul Dairy said Jayen Mehta, senior general manager (planning and marketing), has been appointed as in-charge MD of Kaira Milk Union.
New York Times  Mar 31  Comment 
The general store in tiny Ripton is up for sale. But it isn’t available to just anyone.




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"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

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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.

[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.

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