Pay and Feed Price, May, 2025

By Ed Maltby, NODPA Executive Director

The USDA Agricultural Marketing Service (AMS) has published estimated national organic retail product sales for January 2025, compiled with data from the Federal Milk Marketing Order. In January 2025, the data shows a continued increase in the sales of Organic Whole Milk packaged fluid products of 10.3% over January 2024, and the February 2025 data shows sales at 6.9% over February 2025. There was a 2.6% increase in Organic Fat Reduced Milk in January 2025 over January 2024, and a 1.1 % decrease in February 2025 over February 2024. Year to date, February 2025, organic fluid milk sales are 4.8% higher than the same period in 2024.

Total US sales of organic fluid milk products were 276 million pounds in January 2025, with organic Whole Milk sales at 149 million pounds, and sales of organic Fat Reduced Milk at 125 million pounds. In February 2025, total sales of organic packaged milk were 241 million pounds, with sales of organic packaged Whole Milk at 128 million pounds, and sales of organic Fat Reduce Milk at 112 million pounds.

The average retail price for organic milk as recorded by Federal Milk Order market in the first quarter of 2025 rose to over $5 per half gallon for the first time. In January 2025, the national average price was $4.87, February, $4.96, March, $4.97, and April, $5.05. The range was a low of $3.99 in PA and a high of $6.69 in MO. With the higher prices, we will have to see how they affect demand, and what caused the surprising increase from the 2024 average of $4.81/half gallon. The $0.24 increase in retail price translates into $5.00 increase in Pay Price if the resulting increase comes purely from the producers’ pay price, which is not reflected in reports from producers of an increase in their Pay Price. But if it’s to cover the spot market $50 price for fluid milk diverted to manufacturing or other increased cost to the brand/handler or just opportunism by retailers, that would need a longer-term analysis of available data.

The data over the last 16 years shows that consumer demand has not decreased with increased retail prices. The cost of organic milk to the milk buyer averages only 30% of the retail price, therefore any increase in Pay Price has only a marginal effect on buyers’ profit margins and no effect on the growth and stability of the organic retail market. The profit margins of the milk buyers and brands depend on many variables including their negotiating skills and leverage with retailers, ability to meet retailers’ supply needs, and their ability to control overhead and packaging costs.

Producers are reporting that organic milk is short in the Northeast and across the country, with serious competition between buyers, with spot milk as high as $>50/cwt. Pay prices ranging from an annualized average of $33/cwt to $45/cwt for grain and pasture fed dairies. Grass Fed certified dairies range from $36/cwt up to $50/cwt, depending on how much the buyer is paying, to reflect the increased costs and lower production of Grass Fed production. The western states are still recovering from the widespread H5N1 virus and from the decision of Darigold NW to release all its organic dairy producers. Reports are that all producers have found new buyers with the three main buyers (Horizon Organic LLC, CROPP Cooperative and Organic West Milk Inc.), taking approximately equal numbers of producers.

Estimated Fluid Milk Products Sales Reports

Product Name	Sales of Organic Fluid Milk		Change from
	January 2025	2025 Year to date	Jan-2024	Year to date
	Million pounds		Percent
Organic Whole Milk	149	149	10.3%	10.3%
Flavored Whole milk	1	1	-10.5%	-10.5%
Organic Reduced-Fat Milk (2%)	88	88	8.1%	8.1%
Organic Low-Fat Milk (1%)	20	20	-17.9%	-17.9%
Organic Fat-Free Milk Skim	11	11	-4.5%	-4.5%
Organic Flavored Fat-Reduced Milk	6	6	30.5%	30.5%
Other Fluid Organic Milk Products	0	0	-17.6%	-17.6%
Total Fat Reduced Milk	125	125	2.6%	2.6%
Total Organic Milk Products	276	276	6.5%	6.5%
Product Name	Sales of Organic Fluid Milk		Change from
	Feb-25	2025 Year to date	Feb-2024	Year to date
	Million pounds		Percent
Organic Whole Milk	128	278	6.9%	8.7%
Flavored Whole milk	0	1	-26.3%	-17.5%
Organic Reduced-Fat Milk (2%)	80	168	5.5%	6.9%
Organic Low-Fat Milk (1%)	17	37	-19%	-18.4%
Organic Fat-Free Milk Skim	10	21	-9.5%	-6.9%
Organic Flavored Fat-Reduced Milk	5	11	-6.7%	10.9%
Other Fluid Organic Milk Products	0	1	-37.5%	-28.8%
Total Fat Reduced Milk	112	237	-1.1%	0.8%
Total Organic Milk Products	241	517	2.8%	4.8%

Data may not add due to rounding to the nearest million pounds

Federal Milk Marketing Order 1 (Order) reported that in February 2025, fluid Organic Whole Milk packaged and utilized within the Order totaled 29.46 million pounds; lower than the previous year of 31.50 million pounds (distorted slightly as 2024 was a leap year with 29 days in February). In February 2025, Organic Whole Milk packaged in the Order was 16.36 million pounds, a slight increase from 16.24 million pounds in February 2024. In February 2025, Organic Reduced Fat Milk packaged and utilized in the Order was 13.10 million pounds, down from 15.26 million pounds in February 2024. All milk packaged outside the Order, but sold within the Order, decreased by 3.27 million pounds, or approximately 2.5% in February 2025 over February 2024. This does include organic fluid milk packaged outside the Order but sold within the Order. Organic milk averages approximately 19% of the fluid milk packaged in the Order. Organic milk sold to Stonyfield/US Lactalis plant in New Hampshire is not included in this data.

In March 2025, Organic Whole Milk packaged in the Order was 21.13 million pounds, higher than the 19.15 million pounds packaged in March 2024. In March 2025, Organic Reduced Fat Milk packaged and utilized in the Order was 16.57 million pounds, up from 15.67 million pounds in March 2024. Total organic milk packaged in the Order in March 2025, of 37.70 million pounds, was 3 million pounds or approximately 8% higher than the 34.82 million pounds packaged in March 2024. All milk packaged outside the Order, but sold within the Order, increased by 2.7 million pounds, or approximately 2% in March 2025 over March 2024.

Year to date as of March 2025, total organic milk packaged in the Order was the same as 2024.

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 2025	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	34.31	34.93	37.00	29.14	31.32	23.93
FEBRUARY	29.46	31.50	31.65	33.65	31.56	26.69
MARCH	37.70	34.82	37.37	31.56	31.87	27.90
APRIL		35.68	31.51	33.23	28.97	29.35
MAY		38.95	36.24	30.49	29.72	28.25
JUNE		31.51	34.59	31.53	28.41	26.90
JULY		35.54	31.15	29.44	25.50	26.70
AUGUST		34.07	33.75	32.12	27.18	24.70
SEPTEMBER		31.72	28.32	35.00	30.26	29.70
OCTOBER		29.62	33.54	34.83	29.47	25.78
NOVEMBER		30.48	31.19	31.13	31.07	24.47
DECEMBER		33.34	33.56	33.78	31.36	28.13
ANNUAL		402.16	399.87	385.90	356.68	322.50

There are 3 other FMMO’s that publish reports on the volume of Class 1 organic packaged milk in their Order, two of which report how much is ‘exported’ to other Orders. In February 2025, of the 241 million pounds packaged and sold as Class 1 organic milk in the US, 51.88 million pounds was in Order 32 (Central). Order 51 (California) packaged 37.65 million pound of organic milk in February 2025 and Order 33 (Mideast) packages less than Order 1, with 27.59 million pounds.

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
January	56.23	6.41	49.82	55.21	6.51	48.70
February	51.88	5.77	46.12	49.11	5.49	43.63
March	53.96	5.93	46.29	52.73	5.59	45.44
April	54.13	6.04	48.09	49.18	5.64	43.53
May	51.32	5.81	45.51	48.21	5.40	42.78
June	52.56	5.51	47.04	45.20	5.57	39.63
July	52.68	5.63	47.04	48.45	5.70	42.75
August	55.63	6.26	49.37	48.47	5.63	42.85
September	50.68	5.41	45.27	48.76	5.58	43.18
October	50.36	5.89	44.47	49.73	5.65	42.48
November	48.04	5.99	42.04	49.60	5.48	44.12
December	53.98	6.73	47.21	54.17	6.08	48.10
Total	631.45	71.39	558.25	598.82	68.31	527.18

Vermont Monthly Organic Dairy Report and Pennsylvania Monthly Organic Reports

This initiative is part of a new pilot program in partnership with the USDA Agricultural Marketing Service Market News to collect organic market data. The Vermont Report has published data since November 2023. While the sample size is relatively small and the sample includes Grass Fed dairies, the weighted average Pay Price is $35.82/cwt for 2024, with a range from $33.00/cwt to $47.38/cwt (does not include any deductions for hauling). The average daily production per cow averages 46 lbs./cow. The milk buyers in Vermont are CROPP Cooperative, US Lactalis direct supply, and Upstate Niagara.

Month	Volume(lbs.)	Ave. daily production per cow (lbs.)	Min Price	Max Price	Weighted Av Price	Ave. Butterfat	Ave. Protein	Avg Monthly Production/cow (lbs.)
Nov-23	1,155,583	39.6	$ 27.92	$ 43.60	$ 37.01
Dec-23	1,227,212	39.3	$ 27.92	$ 47.13	$ 39.70
Jan-24	1,224,497	40.2	$ 35.00	$ 47.38	$ 39.97	4.21%	3.03%	1,246
Feb-24	1,073,895	41.9	$ 36.04	$ 46.74	$ 39.99	4.82%	3.43%	1,299
Mar-24	1,088,144	46.4	$ 33.68	$ 42.87	$ 36.59	4.64%	3.38%	1,139
Apr-24	958,104	44.5	$ 33.08	$ 41.85	$ 36.10	4.59%	3.34%	1,239
May-24	1,105,985	51	$ 32.10	$ 39.11	$ 34.77	4.38%	3.32%	1,580
Jun-24	860,631	50.7	$ 31.65	$ 39.10	$ 34.00	4.20%	3.22%	1,541
Jul-24	1,013,388	48.4	$ 30.70	$ 37.06	$ 33.00	3.99%	3.13%	1,500
Aug-24	1,169,419	47.8	$ 31.49	$ 38.79	$ 33.00	4.03%	3.21%	1,482
Sep-24	1,066,596	48.3	$ 29.50	$ 38.75	$ 34.39	4.09%	3.29%	1,449
Oct-24	1,066,596	46.5	$ 29.50	$ 38.75	$ 34.08	4.39%	3.37%	1,443
Nov-24	1,411,221	42.69	$ 29.50	$ 41.06	$ 35.90	4.45%	3.34%	1,281
Dec-24	1,746,250	48.6	$ 29.50	$ 45.29	$ 37.99	4.46%	3.34%	1,489
Jan-25	1,620,357	48	$ 29.50	$ 46.42	$ 40.16	4.47%	3.35%	1,489

Pennsylvania Report

The data from PA has not been collected for as long as the VT data. It does show a very wide range of Pay Price from a low of $25.05/cwt to a high of $46.12/cwt. The average over the 8-month period is $35.88, equal to the Pay Price shown for VT. The average daily production per cow for the 8-month period is 31.1 pounds, 15 pounds lower than the VT average.

Month	Volume(lbs.)	Ave. daily production per cow (lbs.)	Min Price	Max Price	Weighted Av Price	Ave. Butterfat	Ave. Protein
Jun-24	1,331,605	31.23	$ 25.05	$ 41.74	$ 33.57	3.98%	3.07%
Jul-24	1,170,262	27.9	$ 25.50	$ 41.43	$ 33.55	3.88%	2.99%
Aug-24	1,167,928	27.93	$ 28.45	$ 42.32	$ 34.60	3.99%	3.11%
Sep-24	1,268,946	30.76	$ 28.70	$ 43.22	$ 35.61	4.17%	3.30%
Oct-24	1,299,953	28.8	$ 25.85	$ 45.95	$ 35.01	4.41%	3.39%
Nov-24	1,243,522	33.75	$ 28.80	$ 44.05	$ 35.88	4.49%	3.40%
Dec-24	988,840	32.8	$ 32.58	$ 45.35	$ 38.43	4.60%	3.41%
Jan-25	1,064,485	35.62	$ 35.83	$ 46.12	$ 40.37	4.52%	3.34%

Organic Milk Exports

The Foreign Agricultural Service (FAS) releases monthly export data which includes export volumes and values for organic milk categorized as HS-10 code 0401201000, milk and cream, not concentrated nor sweetened, of a fat content, by weight, exceeding 1% but not exceeding 6% certified organic. Recently released data from USDA FAS for January and February 2025 show organic milk exports were 12,229 cwt. and 8,677 cwt. respectively. The same months in 2024 were dramatically lower at 2,643 cwt. in January 2024 and 5,352 cwt. in February 2024. None of this milk is subject to tariffs under the USMCA and any increase will still fall below the level where current agreements mandate tariffs being added.

Auction News

Demand for organic cows and heifers is very high and reflects the real cost of rearing organic livestock to their first calving. The NOP enforcement of regulations on identification of organic livestock at auction, the implementation and consistent enforcement of the Origin of Livestock rule is creating a level playing field for all producers and a financial return on investment in breeding organic replacements. At these prices, there is an added incentive to breed for and rear heifers as replacements rather than cash in on high calf prices.

On March 30th, 2025, around 100 Organic cows and heifers were offered for sale at the Premier Livestock and Auctions in Wisconsin, with extraordinary demand and record high prices. The Organic certified herd averaged $4,000 a head, including all young stock, down to baby calves, and 15 Organic springers averaged $5430 each! A breakdown of prices paid:

Organic Dairy Herd Dispersal

• Top Quality Holstein & Crossbred Dairy Cows – $4,000-$5,900 each, compared to conventional cows at $2,750-$3750 each.
• Good Quality Holstein & Crossbred Dairy Cows – $2,500-$3,725 each, compared to conventional cows at $2,000-$2,725 each.
• Lower Quality Holstein & Crossbred Dairy Cows – $2,400 and Down compared to conventional cows at $1,975 and Down.
• Top Quality Holstein & Crossbred Springing Heifers – $3,500-$5,750 compared to conventional heifers at $2,800-$3,975.
• Common Springing Heifers – $2,775 and Down compared to Conventional heifers at $2775 and Down.
• Holstein & Crossbred Short Bred Heifers – $3,250-$5,250.
• Holstein & Crossbred Open Heifers 300-500# – Up to $2,100.
• Holstein & Crossbred Open Heifers 500-700# – Up to $2,500.
• Holstein & Crossbred Open Heifers 700-850# – Up to $4,000.

For more information, the auction is located at N13438 State Hwy 73 Withee, WI 54498 and their mailing address is P.O. BOX 306 Owen, WI 54460. Useful phone numbers are:

• FRONT OFFICE: 715-229-2500
• KEN STAUFFER: 715-559-8232
• ROCKY OLSEN: 715-721-0079

Hoskins Livestock Auction, a NOFA-NY-certified livestock auction in New Berlin, New York, reports that organic cull cows consistently sold above conventional cows in March and April 2025. The average price for conventional cull cows ranged from a low of $110/cwt to a high of $119 /cwt in March and April 2025. Organic certified cull cow prices ranged from $112/cwt to $132/cwt. Calf prices are still strong but there is no premium for organic. Organic milking cows were selling well, at an average of $2,500-$3,900 each in March and April 2025. This auction does give separate reports for Grass-fed organic certified livestock, with cull prices slightly lower but milking cows and heifers sold at the same price as grain fed organic. Calf prices are still high especially the heavier ones. I can’t imagine the headache that buyers have in showing any margin at all!

In a recent report from a Pacific Northwest livestock auction, USDA reports that the top 10 organic cull cows and the overall average for organic cull cows traded lower than conventional cull cows. The average price for the top 10 organic cows auctioned was $132.00 per cwt, compared to an average price of $148.56 per cwt for the top 10 conventional cows auctioned. The average weight for the top 10 conventional cows was 1500.0 pounds compared to 1459.0 pounds for the top 10 organic cows. The overall price for organic cows auctioned was $103.75 per cwt with an average weight of 1160.29 pounds, while the overall price for conventional cows auctioned was $109.68 per cwt with an average weight of 1155.76 pounds. A reminder: organic livestock do not need to be shipped separately from non-organic when they are trucked to auction or direct to slaughter. They do need to be identified clearly as organic with all the correct paperwork.

Feed

National data from USDA has organic feed corn delivered to the elevator averaging $7.20 per bushel in March 2025 and $7.85 per bushel in April 2025. Organic feed soybean delivered to the elevator averaged $20.04/bu. in March 2025 and $22.77 in April 2025. Organic feed wheat averaged $7.79/bushel in April 2025. Soybean meal was trading at $894/ton in March 2025 and $942/ton in April 2025. Costs for organic Premium Alfalfa are about the same as conventional, at $260 -$275 per ton.

Attached Files:

• Organic Grain and Hay prices charts 5-1-2025.pdf
• Sales and retail price charts 5-1-2025.pdf

Posted: to Organic Pay, Feed & Grain Prices on Sat, May 17, 2025
Updated: Sat, May 17, 2025