Organic Dairy Fluid Overview

     Organic Dairy Fluid Overview

     Report 34 - Released on August 24, 2018

     Milk Product Sales. AMS reports total organic milk products sales for June were 202 million
     pounds, down 3.1 percent from June 2017 and down 0.4 percent January-June 2018, compared
     with the same period of 2017. Organic whole milk sales for June 2018, 82 million pounds,
     were up 1.1 percent compared with June of last year and up 4.9 percent June year to date
     2018 compared with 2017.

     June 2018, WITH COMPARISONS1/

                                          Sales                 Change2/
                                     June        Y-T-D     Prev Yr.    Y-T-D
     Product Name                    Mil.        Lbs.           Percent


     Whole Milk                       82          522         1.1        4.9
     Reduced Fat Milk (2%)            65          412         5.0        3.5
     Low Fat Milk (1%)                30          190       -12.5       -5.6
     Fat-Free Milk (Skim)             18          118       -18.8      -16.1
     Flavored Fat-Reduced Milk         7           50       -22.5      -15.4
     Other Fluid Milk Products         0            0       -95.0      -68.4
     Total Fat-Reduced Milk 3/       120          770        -5.7       -3.6
     Tot. Organic Milk Products      202         1292        -3.1       -0.4

     1/ These figures are representative of the consumption of fluid milk products in Federal
     milk order marketing areas and California, which account for approximately 92 percent of
     total fluid milk sales in the United States. An estimate of total U.S. fluid milk sales is
     derived by interpolating the remaining 8 percent of sales from the Federal milk order and
     California data.
     2/ Percent changes, as well as sales volumes, unless otherwise noted, are shown on an
     unadjusted basis;
     3/ Organic fat-reduced milk categories are total of reduced fat, low-fat, skim, and flavored
     fat reduced milk composition.

          New England Organic Milk Sales and Sourcing. Federal Milk Market Order 1, in New
     England, reports utilization of types of organic milk by pool plants. During July 2018,
     organic whole milk utilization totaled 14.8 million pounds, up from 14.2 million pounds one
     year earlier. The July 2018 butterfat content was 3.28 percent, even with July 2017.
     Organic reduced fat milk utilization for July 2018, 19.7 million pounds, was up from 18.4
     million pounds one year earlier. Butterfat this July was 1.31 percent, up from 1.28 percent
     July 2017.

         Organic Dairy News. An Italian mozzarella producer has announced plans to build a
     commercial organic cheese plant in Northeast Indiana. USDA certified organic milk will be
     supplied by a local cooperative for producing a variety of cheeses, including mozzarella,
     burrata, ricotta, and provolone. September is set for construction to commence for the
     3,000-square-foot cheese plant, on a 40-acre site.


         Organic Grain and Feed Markets. Compared to two weeks ago, trading is moderate on good
     demand for feed grade corn, soybeans, and wheat. Growers are cleaning up old crop supplies
     of feed grade corn with the approach of new crop. Meanwhile, buyers are still looking for
     old crop supplies of feed grade soybean and wheat. Trading is picking up on feed grade
     barley and rye. Barley is trading 6.80- 7.25 delivered and rye 7.35-7.50 delivered. Food
     grade wheat interest is good. Buyers are reporting protein levels higher than last year on
     lower yields. Feed grade soybean meal adjusted 47.49 lower on light trading. Forward
     contract prices are at the 840.00 f.o.b. level. Soybean oil is mostly steady on light

     Information for the period August 20 - 24, 2018, issued biweekly

     Published by:
     Dairy Market News - Madison, WI
     DANIEL JOHNSON, 608-422-8605

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     Dairy Market News (DMN) by Phone: (608)422-8602
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