QUOTE AND NEWS
The Economic Times  Jul 16  Comment 
The milk supply was not affected on Monday as dairies had stocked up milk. However, if the agitation continues, some shortages are likely to be felt Tuesday onward.
The Economic Times  Jul 16  Comment 
Scores of milk tankers bound for major cities including Mumbai, Pune, Nagpur, Nashik and others were blocked in different parts of the state.
MarketWatch  Jul 13  Comment 
Cheese prices are crumbling in 2018 but a trade-war meltup could provide support
The Economic Times  Jul 13  Comment 
Commerce Minister Suresh Prabhu in a tweet said that: "MEIS incentives introduced/increased for milk/dairy sector, onion and deoiled soya cake for the benefit of milk producers, farmers".
The Hindu Business Line  Jul 13  Comment 
Water-logged streets, no supply of essentials like milk and bread for four days, lack of medical aid... This was the lot of th people of 100 Feet Road
NPR  Jul 12  Comment 
Chekhov and Tolstoy swore by its curative powers. While mare's milk remains a niche product, its reputation as a health elixir is causing trouble for European producers in a more regulated age.
BBC News  Jul 10  Comment 
The firm says parents' concerns over the new formulation are unfounded.
BBC News  Jul 9  Comment 
Mums say their babies have been sick after the recipe of a popular formula milk was changed.
Wall Street Journal  Jul 6  Comment 
India’s sprawling agriculture industry has the world’s largest dairy herd, whose milk is distributed by a sprawling network of farmers, vendors and milkmen. One startup aims to modernize it.
The Hindu Business Line  Jul 5  Comment 
Parag Milk Foods (PMFL) on Thursday said that it is collaborating with Swedish research organisation ColoPlus AB to launch a colostrum-based nutrition




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