cows in field
NODPA Logo

Feed and Pay Price November/December 2021

By Ed Maltby, NODPA Executive Director

The USDA AMS reports for the months of July, August and September 2021 that the total fluid products sales of packaged fluid product shipped by milk handlers were 3.5, 3.6 and 3.7 billion pounds of milk respectively which were lower than in 2020, but that was an abnormal year. For organic, the volumes of milk were 221, 228 and 227 million pounds correspondingly, and the comparison with 2020 is not good. If we compare the data for 2019 to get a more typical trend there was a marginal increase in sales compared with July 2019, but a two and three per cent increase compared with August and September. The charts below are the limit of the information that USDA currently provides so it is impossible to draw any conclusions as to where those increase took place, the volume of milk balanced into the conventional market, or the number of organic cows in different states, regardless if there is a national surplus or not.

Sales of Organic Fluid Milk July 2021

Product Name

Sales of Organic Fluid Milk

Change from 2020

July-21

21 Year to date

July-20

Year to date

Million pounds

Percent

Organic Whole Milk

98

733

-7.0%

-1.2%

Organic Reduced Fat Milk (2%)

76

565

-7.4%

-0.90%

Organic Low Fat Milk (1%)

24

185

-22.4%

-8.6%

Organic Fat Free Milk Skim

14

104

-18.8%

-10.6%

Organic Flavored Fat-Reduced Milk

7

51

11.0%

6.9%

Other Fluid Organic Milk Products

0

0

0.0%

-3.4%

Total Fat Reduced Milk

121

906

-11.2%

-2.1%

Total Organic Milk Products

221

1650

-9.0%

-5.3%

Sales of Organic Fluid Milk August 2021

Product Name

Sales of Organic Fluid Milk

Change from 2020

Aug-21

21 Year to date

Aug-20

Year to date

Million pounds

Percent

Organic Whole Milk

103

836

0.0%

-1.1%

Organic Reduced Fat Milk (2%)

78

643

-4.5%

-1.30%

Organic Low Fat Milk (1%)

26

211

1.5%

-7.5%

Organic Fat Free Milk Skim

14

118

-6.7%

-10.1%

Organic Flavored Fat-Reduced Milk

6

57

2.2%

6.3%

Other Fluid Organic Milk Products

0

0

0.0%

0.0%

Total Fat Reduced Milk

124

1030

-1.7%

-2.0%

Total Organic Milk Products

228

1878

-1.7%

-2.0%

Sales of Organic Fluid Milk September 2021

Product Name

Sales of Organic Fluid Milk

Change from

Sep-21

21 Year to date

Sep-20

Year to date

Million pounds

Percent

Organic Whole Milk

101

937

-2.1%

-1.2%

Flavored Whole milk

2

14

N/A

N/A

Organic Reduced Fat Milk (2%)

78

721

-7.8%

-2.10%

Organic Low Fat Milk (1%)

26

237

0.1%

-6.7%

Organic Fat Free Milk Skim

14

132

-12.4%

-10.4%

Organic Flavored Fat-Reduced Milk

7

64

-8.6%

4.5%

Other Fluid Organic Milk Products

0

0

0.0%

0.0%

Total Fat Reduced Milk

124

1030

-1.7%

-2.0%

Total Organic Milk Products

227

2105

-4.1%

-2.3%

Federal Milk Market Order 1(FMMO-1), in New England, reports utilization of types of organic milk and cream by pool plants. In August and September 2021, Class 1 utilization of organic whole milk totaled 11.8 and 14.07 million pounds respectively, declining from 12.1 million in August 2020, but increasing significantly from 12.4 million pounds in September 2020. The utilization of organic reduced fat milk in August and September 2021 was 15.38 and 16.18 million pounds respectively, an increase from 12.4 million pounds in August 2020 but down from 17.33 million pounds in September 2020. Year-to-date, there has been an increase of 20.6 million pounds of organic milk utilized as retail packaged product in the FMMO-1 from January to September 2021 as compared to January to September 2020. In the list of handlers and plants that the FMMO 1 lists as either Cooperative State Reporting Units or Partially Regulated Distributing, are WWF Operating Company (Salt Lake City, UT), Michigan Milk Producers Organic, CROPP Minnesota and CROPP Wisconsin, WhiteWave Foods, Dallas TX.

U.S. prices for organic soybeans to feed livestock and manufacture soy milk have surged to record highs as imports that make up most of the country's supply have declined. The organic food sector is also grappling with a shortage of shipping containers and a tight labor market as global food prices hit a 10-year high. U.S. imports of organic soybeans from September 2020 through August 2021 fell by 18% to about 240,585 tonnes, according to U.S. Department of Agriculture data. Shipments sank by 30% from Argentina, the biggest supplier to the United States. Imports from India fell by 34%, extending a pre-existing decline after the United States toughened its requirements to certify Indian crops as organic in January. Prices for organic soybeans delivered in the U.S. Midwest in September reached about $33 per bushel, topping the previous record of about $25 per bushel from 2014-15, commodity data firm Mercaris said. US farmers harvested about 170,074 acres of organic soybeans in 2019, up 37% from 2016, according to the USDA. There’s not much more to say that hasn’t already been said about the crazy feed prices which will be passed onto the end-user, not the consumer but the farmer.

Attached Files: