By Ed Maltby, NODPA Executive Director
The Agricultural Marketing Service (AMS) has published estimated organic fluid product sales nationally, for January and February, 2024. They show a continued increase in the sales of Whole Milk packaged fluid products of 8.5% percent over January 2023, with a 7.8% reduction in Reduced-Fat Milk over the same period. US sales of organic whole milk products in January 2024 were 135 million pounds, up 8.5% from January 2023; and sales of Reduced-Fat Milk were 122 million pounds, down 7.3% from January 2023.
In February 2024, sales of organic packaged milk were 235 million pounds, up 7.8% from February 2023. In February 2024, organic packaged Whole Milk sold 120 million pounds, up 12.9% from 2023. Sales of organic Reduce-Fat Milk in February 2024 were 113 million pounds, up 2.5% from February 2023. The continued increase in sales of organic whole milk reflects the general industry trend within all of dairy for consumers’ preference for whole milk.
The average retail price for organic milk has ranged from $4.58 per half gallon in 2022 to $4.88 per half gallon for 2023, and in March and April of 2024 the average retail price was $4.82. In April, the highest retail price was in Pittsburgh PA at $6.59 per ½ gallon, and the lowest in 9 separate cities was $3.99 per ½ gallon. The retail prices were collected by the FMMO based on a survey conducted between the 1st and 10th of each month in selected cities or metropolitan areas. The largest and second largest food store chains are surveyed.
|
Product Name |
Sales of Organic Fluid Milk |
Change from |
||
|
|
January 2024 |
2024 Year to date |
January 2023 |
Year to date |
|
Million pounds |
Percent |
|||
|
Organic Whole Milk |
135 |
135 |
8.5% |
8.5% |
|
Flavored Whole milk |
1 |
1 |
22.7% |
22.7% |
|
Organic Reduced-Fat Milk (2%) |
81 |
81 |
-4.5% |
-4.5% |
|
Organic Low-Fat Milk (1%) |
24 |
24 |
-9.4% |
-9.4% |
|
Organic Fat-Free Milk Skim |
12 |
12 |
-13.2% |
-13.2% |
|
Organic Flavored Fat-Reduced Milk |
5 |
5 |
-31.1% |
-31.1% |
|
Other Fluid Organic Milk Products |
0 |
0 |
5.9% |
5.9% |
|
Total Fat Reduced Milk |
122 |
122 |
-7.8% |
-7.8% |
|
Total Organic Milk Products |
259 |
259 |
0.2% |
0.2% |
|
Product Name |
Sales of Organic Fluid Milk |
Change from |
||
|
|
February 2024 |
2024 Year to date |
February 2023 |
Year to date |
|
|
Million pounds |
Percent |
||
|
Organic Whole Milk |
120 |
255 |
12.9 |
10.5 |
|
Flavored Whole milk |
1 |
1 |
-0.8 |
11.1 |
|
Organic Reduced-Fat Milk (2%) |
76 |
157 |
8.3 |
1.3 |
|
Organic Low-Fat Milk (1%) |
21 |
45 |
-3.6 |
-6.8 |
|
Organic Fat-Free Milk Skim |
11 |
23 |
-10.6 |
-11.9 |
|
Organic Flavored Fat-Reduced Milk |
5 |
10 |
-14.3 |
-23.2 |
|
Other Fluid Organic Milk Products |
1 |
1 |
215.2 |
69.6 |
|
Total Fat Reduced Milk |
113 |
236 |
2.5 |
-3.1 |
|
Total Organic Milk Products |
235 |
493 |
7.8 |
3.7 |
Federal Milk Market Order 1, in the Northeast, reports utilization of types of organic milk by pool plants for products packaged in the FMMO 1. Data on milk in the other classes are not separated by production practice, neither is milk that comes into the order already packaged to be sold in the order. FMMO 1 reported that in March 2024, fluid organic Whole Milk utilization totaled 18.19 million pounds, on a par with the previous year of 19.177 million pounds. In March 2024, the utilization of fluid organic Reduced Fat milk, 15.67 million pounds, decreased from 14.92 million pounds in March 2023. In March 2024, there was 135.35 million pounds of milk marketed as Class 1 in FMMO 1 from outside the FMMO 1 marketing area, approximately 18.98% of total Class 1 utilization in the Order.
|
UTILIZATION OF ORGANIC FLUID MILK PRODUCTS AND CREAM BY POOL PLANTS (Million pounds) in FMMO 1 (Northeast) not including packaged out of order |
|||||
|
Month |
Fluid retail Organic Milk 2024 |
Fluid retail Organic Milk 2023 |
Fluid retail Organic Milk 2022 |
Fluid retail Organic Milk 2021 |
Fluid retail Organic Milk 2020 |
|
JANUARY |
34.93 |
37.00 |
29.14 |
31.32 |
23.93 |
|
FEBRUARY |
31.50 |
31.65 |
33.65 |
31.56 |
26.69 |
|
MARCH |
34.82 |
37.37 |
31.56 |
31.87 |
27.90 |
|
APRIL |
|
31.51 |
33.23 |
28.97 |
29.35 |
|
MAY |
|
36.24 |
30.49 |
29.72 |
28.25 |
|
JUNE |
|
34.59 |
31.53 |
28.41 |
26.90 |
|
JULY |
|
30.75 |
29.44 |
25.50 |
26.70 |
|
AUGUST |
|
33.75 |
32.12 |
27.18 |
24.70 |
|
SEPTEMBER |
|
28.32 |
35.00 |
30.26 |
29.70 |
|
OCTOBER |
|
33.54 |
34.83 |
29.47 |
25.78 |
|
NOVEMBER |
|
31.19 |
31.13 |
31.07 |
24.47 |
|
DECEMBER |
|
33.56 |
33.78 |
31.36 |
28.13 |
|
ANNUAL |
|
399.47 |
385.90 |
356.68 |
322.50 |
Central Federal Order (FO) 32 and California FO 51 are the only two Orders that publish reports that breakdown the volume of Class 1 organic milk that is used in the Order, and what is used outside the Order. FO 32 includes reporting from both Aurora plants in Colorado and Missouri which sell packaged products in many parts of the country including the Northeast and California. The chart below shows a consistent volume of organic packaged milk marketed out of Order FO 32, although there was less sold as Class 1 in 2023 than there was in 2022 for the months that are available in the published reports. Sales of packaged organic fluid milk are increasing nationally. In the Northeast, sales of organic whole milk packaged within the region, continue to increase steadily while sales of Low-Fat dairy products appear to be level but the number of organic dairy farms in New England and New York are decreasing (anecdotally, except for VT which has published state data). Without more information on packaged organic milk coming into the area, there is no way to make calculations as to the potential for increasing production to support Northeastern organic farms and infrastructure. Processors in the Central Federal Milk Marketing Order sold 523 million pounds of organic packaged milk outside of their order in 2023. We can only assume that retail buyers are using that ready-made supply to provide product for any increase in retail sales in their stores.
|
UTILIZATION OF ORGANIC FLUID MILK PRODUCTS AND CREAM BY POOL PLANTS (Million pounds) in FMMO 32 (Central) |
|||||||||
|
Month |
2024 |
2024 in order |
2024 out of order |
2023 |
2023 in order |
2023 out of order |
2022 |
2022 used in order |
2022 used out of order |
|
January |
56.23 |
6.41 |
49.82 |
55.21 |
6.51 |
43.63 |
|
|
|
|
February |
51.88 |
5.77 |
46.12 |
49.11 |
5.49 |
43.98 |
|
|
|
|
March |
53.96 |
5.93 |
46.29 |
52.73 |
5.59 |
45.35 |
|
|
|
|
April |
|
|
|
49.18 |
5.64 |
45.44 |
51.93 |
5.54 |
46.39 |
|
May |
|
|
|
48.21 |
5.40 |
42.78 |
51.13 |
5.84 |
45.29 |
|
June |
|
|
|
45.20 |
5.57 |
39.63 |
51.58 |
5.62 |
45.96 |
|
July |
|
|
|
48.45 |
5.70 |
43.64 |
49.67 |
6.04 |
43.64 |
|
August |
|
|
|
48.47 |
5.63 |
42.85 |
52.16 |
6.20 |
45.96 |
|
September |
|
|
|
48.75 |
5.58 |
43.18 |
51.04 |
6.31 |
44.73 |
|
October |
|
|
|
49.73 |
5.48 |
42.48 |
52.06 |
5.86 |
44.53 |
|
November |
|
|
|
49.60 |
5.48 |
42.48 |
52.31 |
5.96 |
46.35 |
|
December |
|
|
|
54.17 |
6.08 |
48.10 |
55.94 |
6.29 |
49.55 |
|
Annual Total |
|
|
|
598.81 |
68.14 |
523.53 |
|
|
|
In recent reports from a NOFA-NY-certified livestock auction in New Berlin, New York, organic cull cows traded, on average, above conventional cows in April 2024. The average price for conventional cull cows ranged from a low of $98/cwt to a high of $105 /cwt. The average price for organic cull cows ranged from a low of $97/cwt to a high of $115/cwt. Organic milking cows were selling well at an average of $1,325-$1,900 each in April 2024. A USDA AMS report from a Pacific Northwest livestock auction disclosed that the top 10 organic cull cows traded lower than conventional cull cows, while the overall average for organic cull cow prices traded higher than the overall average for conventional cull cows. The average price for the top 10 organic cows auctioned was $129.71/cwt, compared to an average price of $131.71/cwt for the top 10 conventional cows. The average weight for the top 10 conventional cows was 1413 pounds compared to 1285.5 pounds for the top 10 organic cows. The overall price for organic cows auctioned was $121.02/cwt with an average weight of 1238.2 pounds, while the overall price for conventional cows auctioned was $107.16/cwt and had an average weight of 1290.9 pounds. Producers and auctions are continuing to report high prices for Angus cross dairy calves. Reports during April are that beef cross calves brought as high as $9.50 per pound at some auctions. Considering a week-old animal may weigh around 100 pounds, the income has never been better for farmers. The price for Holstein bull calves has also skyrocketed, climbing from an average of $1.50 per pound a couple years ago to a high of $5 per pound today.
Platinum Equity announced on April 2, 2024, that the acquisition of a majority interest in Horizon Organic and Wallaby from Danone has been completed. Byrne Dairy recently increased their direct supply of organic dairy farms in New York. Maple Hill reports increased signing of producers in Pennsylvania as they expand their supply in that region.
There was a Dairy Margin Coverage (DMC) Program Tier 1 payment of $1.02/cwt in January 2024 and $0.06/cwt in February 2024, with no payment for March 2024. February and March 2024 conventional feedstuff and milk prices were almost the same with a milk margin above feed cost of $9.44 and $9.65, respectively. The All-Milk price is staying at around $20/cwt, with soybean meal averaging $365 per ton, alfalfa conventional hay at $275/ton and corn at 4.36/bushel.
There are no further updates on any next payment from the Organic Dairy Marketing Assistance Program (ODMAP) from the funds that were not used from the $105 million allocated to the program in January 2023. Most of the advocacy work has shifted to the 2024 Farm Bill in the unlikely attempt to get one passed in this Congress.
The Foreign Agricultural Service (FAS) releases monthly export data which includes export volumes and values for organic milk categorized as HS-10 code 0401201000. Data for February 2024 indicated organic milk exports were 116,554 liters, up 83.9 percent from the month prior, and up 102.5 percent from 2023. Data for March 2024 indicated organic milk exports were 132,223 liters, down 44.0 percent from the month prior, and down 18.9 percent from 2023. Exports of organic milk from the start of the year through March are up 7.3 percent, compared to the same period one year ago.
The United States Department of Agriculture’s (USDA) Animal and Plant Health Inspection Service (APHIS) announced on April 26, 2024 a Final Rule that requires official ear tags to be visually and electronically readable for official use for interstate movement of certain cattle and bison, and revises and clarifies certain record requirements related to cattle. USDA maintains that traceability of animals is necessary to establish disease-free zones and facilitate re-establishment of foreign and domestic market access with minimum delay in the wake of an animal disease event. In a press release, USDA commented; “USDA is committed to implementing a modern animal disease traceability system that tracks animals from birth to slaughter using affordable technology that allows for quick tracing of sick and exposed animals to stop disease spread. USDA will continue to provide tags to producers free of charge to jumpstart efforts to enable the fastest possible response to a foreign animal disease.” The final rule applies to all sexually intact cattle and bison 18 months of age or older, all dairy cattle, cattle and bison of any age used for rodeo or recreation events, and cattle or bison of any age used for shows or exhibitions. This rule will be effective 180 days after publication in the Federal Register, which has not happened yet.
CROPP Cooperative reports that, with the support of Stonyfield/Lactalis, Horizon Organic and Aurora Organic Dairy and in consultation with the veterinarian community and numerous stakeholders, they have submitted a petition to the National Organic Program (NOP) to add the treatment aid/agent Meloxicam to section 205.603 of the NOP’s National List of Allowed and Prohibited Substances (National List). The NOP affirmed acceptance of a complete petition for Meloxicam on February 12, 2024. Posting to the NOP Petition Substances Index is imminent and NOSB review process is expected, initially in the Livestock Subcommittee. They state that, “Meloxicam is a nonsteroidal anti-inflammatory agent with a preference for COX-2 receptors which means it is less likely to cause side effects. It can control pain, inflammation and fever and is used widely in humans and animals. With a therapeutic effect of 24 to 48 hours in cattle, this treatment aid has a long clinical result with a single dose and is far superior to current approved NOP pain treatment options. As a treatment aid used extensively in non-organic dairy production to address pain, disbudding inflammation, and elective procedures, Meloxicam is proven extremely effective and readily available. While some pain relief options do exist for organic livestock, they are viewed as cumbersome to administer and offer limited relief or metabolize quickly.”
Jason Johnson, Senior Manager, Direct Supply Milk Procurement and Farm Practices, Stonyfield / Lactalis US Yogurt has sent a letter of support for the addition of Meloxicam to the National List at §205.603 as it would be an important step for ensuring animal welfare on organic dairy operations. NODPA will cover this in further detail as it progresses through the approval process.
National data from USDA has organic feed corn delivered to the elevator prices averaging $7.14 per bushel in April 2024, down approximately $3.85/bu. from 12 months prior. Organic feed soybean delivered prices averaged $19.80/bu. in April 2024, down approximately $5.32/bu. from 12 months prior. Soybean meal is currently trading at $862/ton, about $4.13/cwt. lower than 2022. These take no account for the cost of transport. Costs of organic Alfalfa are about the same as conventional at $225 per ton.
Attached Files:
Posted: to Organic Pay, Feed & Grain Prices on Sun, May 12, 2024
Updated: Sun, May 12, 2024
