Get the latest dairy trends every farmer needs to know. How will raising butter and cheese prices affect your farm’s profits? Find out now.
Summary: Attention dairy farmers! Ready to navigate the latest dairy market twists? Butter prices have nudged up, with a weekly average of $3.1590. Cheese prices are also rising, with barrels at $2.1000 and 40# blocks at $2.0375. Nonfat Dry Milk (NDM) closed at $1.2825, and dry whey at $0.5650 remains stable. Milk output is mixed, with cooler temps boosting production in some regions. The USDA’s new organic criteria aim to increase animal welfare. Stay informed and make intelligent decisions for your business.
- Butter prices have increased slightly, with a weekly average of $3.1590.
- Cheese prices are up, with barrels at $2.1000 and 40# blocks at $2.0375.
- Nonfat Dry Milk (NDM) closed at $1.2825, and dry whey remains stable at $0.5650.
- Milk production is varied, with cooler temperatures helping output in certain areas.
- New USDA organic criteria aim to improve animal welfare.
Today’s dairy business provides new tendencies that every farmer should know. The ever-changing environment may affect your next business choice, from shifting butter prices to limited cream volumes. Let’s look at the most critical upgrades to stay ahead of the curve.
Attention dairy farmers! Have you noticed the recent shifts in the dairy market? With butter and cheese prices on the rise, it’s crucial to stay informed. Check out the current market prices as of August 23, 2023, and see how they compare with the weekly averages to gauge the trends.
| Product | Closing Price | Weekly Average | Change |
|---|---|---|---|
| Butter (Grade AA) | $3.1300 | $3.1590 | +0.0180 |
| Cheese (Barrels) | $2.1000 | $2.2250 | +0.0410 |
| Cheese (40# blocks) | $2.0375 | $2.0820 | +0.0325 |
| Nonfat Dry Milk (Grade A) | $1.2825 | $1.2790 | +0.0410 |
| Dry Whey (Extra grade) | $0.5650 | $0.5610 | +0.0020 |
Butter and Cheese Prices on the Rise
Butter prices rose marginally, finishing at $3.1300, with a weekly average of $3.1590. This minor increase shows a growing demand for butter, particularly in Central. The rising prices indicate a potential increase in revenue for dairy farmers who produce butter.
Cheese costs are also trending higher. Barrels closed at $2.1000, with 40# blocks at $2.0375. The weekly averages are $2.2250 (+0.0410) for barrels and $2.0820 (+0.0325) for blocks, showing retail solid demand and limited spot load availability.
Nonfat Dry Milk (NDM) closed at $1.2825, up 0.0410 from the previous week’s average of $1.2790. This increase indicates limited supplies and rising demand.
Dry whey pricing has remained reasonably stable. Extra grade dry Whey ended at $0.5650, with a slightly higher weekly average of $0.5610 (+0.0020). Despite restricting milk supply, the market attitude is balanced.
What’s Going on with Butter Across Regions?
| Date | East | Central | West |
|---|---|---|---|
| August 18, 2024 | $3.10 | $3.12 | $3.11 |
| August 19, 2024 | $3.11 | $3.13 | $3.12 |
| August 20, 2024 | $3.12 | $3.15 | $3.13 |
| August 21, 2024 | $3.13 | $3.16 | $3.14 |
| August 22, 2024 | $3.14 | $3.17 | $3.15 |
| August 23, 2024 | $3.15 | $3.18 | $3.16 |
Butter demand and production vary throughout the United States. Here’s how things are shaping up in various areas.
East: Butter demand in this area is stable but does not fluctuate much. However, cream quantities are limited, impacting production rates.
Central: Domestic butter demand is increasing. Cream quantities are restricted in the East, limiting the amount of butter that may be made. This sector is seeing increased demand, placing extra strain on an already tight supply system.
West: Out west, the situation is more balanced. While cream supplies are superior to those in the eastern and central areas, they are small. Butter production ranges from steady to somewhat weaker. However, this does not imply that the area is without issues. Like the other regions, contractual cream loads keep everything running correctly.
Because of these geographical variations, unsalted butter supplies are limited, making it difficult for spot purchasers to locate what they need. So, if you’re having trouble getting a butter supply, you’re not alone.
Cheese Market Insights
| Cheese Type | August 2023 Price | August 2024 Price | Price Change |
|---|---|---|---|
| Barrels | $2.1840 | $2.2250 | +$0.0410 |
| 40# Blocks | $2.0490 | $2.0820 | +$0.0330 |
Let’s examine the present condition of cheese production and demand. These insights are critical for understanding market dynamics if you work in the cheese sector.
In the East, limited milk supply greatly influences cheese manufacturing. You may wonder why milk is so scarce. As schools resume their autumn semesters, Class I draws for fluid milk rise significantly, leaving less milk available for cheese production. Cheesemakers are trying to keep up with demand, which industry experts anticipate will only lessen after Labor Day.
How about the central region? Cheese demand stays consistent here, providing farmers with a more predictable environment. Barrels, in particular, are in high demand, although spot load availability is unusual. This demand consistency emphasizes the significance of effective manufacturing procedures and careful inventory management.
Production patterns in the West are uneven. Some processors are increasing output for a higher milk supply. Others, however, suffer difficulties due to limited spot milk supply, causing their operations to slow down. Cheese inventories vary significantly throughout the area, highlighting the need for tailored methods to address these issues.
Understanding these geographical differences might help you prepare for market changes and improve your cheese production plans. For instance, in the East, where milk supply greatly influences cheese manufacturing, you may need to adjust your production schedule to account for the increased demand during the school year. Are you prepared to adapt and succeed in this changing environment?
Fluid Milk Production: A Closer Look
| Region | Milk Production Change (%) |
|---|---|
| Upper Midwest | +1.0% |
| Pacific Northwest | +0.5% |
| California’s Central Valley | +0.3% |
| Northeast | -0.5% |
| South | -1.2% |
Have you seen any changes in fluid milk and cream production recently? It has been mixed in many places in the United States. Let’s break it down by area.
Upper Midwest, Pacific Northwest, and California’s Central Valley:
Milk output is stable or slightly increasing in regions such as the Upper Midwest, Pacific Northwest, and California’s Central Valley. Cooler temperatures, ranging from highs in the 70s to lows in the upper 60s, have helped to fuel this trend. Comfortable cows produce more milk, which is precisely what we observe here.
The South:
However, the story is quite different down south. Cow comfort suffers when temperatures rise into the upper 80s and triple digits, reducing milk flow. Extreme weather makes it challenging to maintain output levels.
The Northeast:
The Northeast, meanwhile, is grappling with the aftermath of Hurricane Ernesto. Cooler temperatures caused by rain and cloud cover have helped, but milk supplies remain tight. Furthermore, severe gusts and floods continue to impede movement.
These geographical variances illustrate how important meteorological conditions are for milk production. Do you see similar tendencies on your farm? Please let us know in the comments below!
Dry Products Market: All the Buzz!
Have you been keeping an eye on the dry goods industry recently? Friends, it’s been a rollercoaster. Let’s look at what happens with low/medium heat nonfat dry milk, dry buttermilk, dry whole milk, and dry Whey.
Low/medium heat nonfat dry milk (NDM) costs are rising in all locations. It’s all about supply and demand here—there’s less of it to go around, and more people want it. This combination is constricting the market and driving up prices.
This tendency is also seen in dry buttermilk. Prices are stable and rising, driven by comparable sources. In the West, we should anticipate more buttermilk solids will dry soon. This may alleviate the present shortage, but it’s been a popular product!
Prices for dry whole milk are also increasing. Schools have resumed, resulting in more bottling and a tighter supply. This emphasis on liquid milk implies that there is less available for drying, causing costs to rise.
Dry Whey? Regionally, things are messed up. The overall attitude is stable, although milk supplies for Class III production are tightening, reducing dry whey quantities. This tightrope act is impacting prices.
Let us remember whey protein concentrate and lactose. Prices for whey protein concentrate rose 34% as spot loads became more challenging to acquire. Lactose costs constantly rise; some producers have already sold out for the third quarter. Yikes! This shows how tight and competitive the market has gotten.
Do you feel the pressure yet? Tight supply combined with strong demand in these categories results in a dynamic—and challenging—market climate.
Ready or Not, Organic Dairy Farmers: USDA’s New Standards Are Coming!
Ready or not, organic dairy producers, the USDA has established new organic criteria that will take effect on January 2, 2025. These amended guidelines, part of the Organic Livestock and Poultry Standards (OLPS), seek to enhance animal welfare on organic farms. Need a refresher? The Organic Integrity Learning Center has launched a new course to assist certifiers, inspectors, and producers keep up with the latest advancements.
You’re wondering how this will affect your farm. Compliance will be essential. Enhanced restrictions may result in more substantial supervision and changes to agriculture operations. However, achieving these requirements may strengthen your farm’s image and customer faith in organic labeling, thus increasing product demand.
New England Leads the Way
Did you know that New England’s pool plants use more organic milk? In July 2024, the number rose compared to the previous year. This increase indicates a more robust demand for organic dairy, which may help offset any expenses associated with complying with the new USDA criteria.
Trends in Organic Dairy Ads
Retail surveys tell a captivating narrative. Recently, the number of organic dairy commercials reached an all-time high. Although the overall number of ads decreased a week later, the initial surge suggests increased attention and, perhaps, higher purchases.
As demand for organic dairy grows, remaining knowledgeable and adaptive will be critical. How will you position your farm to succeed in light of these new criteria and market trends?
Are You Navigating the Retail Dairy Market Trends Like a Pro?
Are you keeping up with the newest dairy retail trends? It’s a dynamic environment, and knowing it may help you gain a competitive advantage. Here’s a short look at the recent movements:
This week, traditional dairy advertising fell by 2%. The most significant decrease, however, was in organic dairy advertisements, which fell by a stunning 79%. Surprised? Read on to learn what this means for you.
Let’s talk pricing. For conventional dairy products:
- Cheese: The weighted average advertised prices for 6–8-ounce sliced, shredded, and block cheese packages are $2.52, $2.45, and $2.31, respectively.
- Ice Cream: An average 48–64-ounce container is now $4.01, down 33 cents from last week.
- Milk: Gallon containers average $3.33, while half-gallons are at $2.17.
And what about organic dairy?
- Milk: The premium for a half-gallon container of organic milk is a notable $2.86.
Keep these facts in mind as you negotiate the ever-changing retail landscape. Understanding these patterns will help you make more educated choices and increase earnings. Are you prepared to adjust to these changes?
Unpack the Latest Milk Production Stats: Are You Keeping Up?
Look at the most recent milk production figures from the 24 Central States. Milk output in July was 18.2 billion pounds, representing a 0.2% reduction from the previous year. The average production per cow was 2,047 pounds, just 2 pounds more than the July 2023 level. Notably, the number of milk cows decreased by 31,000, to 8.88 million, compared to July 2023. However, a modest rise of 3,000 head began in June 2024.
Sales of fluid milk products were 3.2 billion pounds in June, a 2.9% decrease from the previous year. Conventional milk products had a 3.4% fall in anticipated sales, while organic milk products increased by 4.4% year on year. Consumer tastes may have shifted due to increased knowledge of organic products.
Are You Prepared for September’s Pricing Shift?
Do you know that the advanced Class I pricing for September 2024 is $21.60 per cwt? This is a slight increase of $0.28 per cwt from August 2024. So, how does this affect your dairy operations?
The standard Class I pricing is just the beginning. Add a Class I difference for each order’s primary pricing point in your jurisdiction to get the overall Class I price. Understanding these price elements has a significant influence on your financial estimates.
For September 2024, take a look at these specifics:
- The advanced Class IV skim milk pricing factor is $9.39 per cwt.
- The Class II skim milk price stands at $10.09 per cwt.
- The Class II nonfat solids price clocks in at $1.1211 per pound.
Are you curious about recent product price averages? Check these out:
- Butter: $3.1061
- Nonfat Dry Milk: $1.2212
- Cheese: $1.9985
- Dry Whey: $0.4848
These figures may help you navigate the market’s complexity, providing a more accurate picture of your milk price potential this autumn.
The Bottom Line
The dairy industry is undergoing significant changes across several sectors. Butter and cheese costs fluctuate based on regional demand and milk supply. Fluid milk output varies due to weather circumstances and growing school demand. Organic dairy producers must prepare for forthcoming USDA rules, while dry goods confront tight markets and limited supplies. The retail dairy industry trends also indicate a competitive marketplace.
Dairy producers must remain current on market trends. Understanding these patterns greatly influences your decision-making and operational strategy. Now, more than ever is the time to use this data to improve your production and sales plans.
How will you change your plan to keep ahead of the changing dairy market?
Learn more:
- Unveiling the USDA Milk Report: Find Out Which States are Leading and Lagging!
- Why 80% of U.S. Dairy Farms Are Struggling: An Insider’s Look at the Unseen Challenges
- Why 97% of Your Efforts Selling to Dairy Farmers Are Being Wasted!
