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Feb 2012 Dairy News March 2006 Dairy News-Ax.Qxd Federal Milk Market Administrator U.S. Department of Agriculture UPPER MIDWEST DAIRY NEWS Victor J. Halverson, Market Administrator Volume 17, Issue 5 Upper Midwest Marketing Area, Federal Order No. 30 May 2016 Inside This Issue: Chicago Mercantile Exchange Dairy Commodity Update rices for cheddar cheese on the Chicago On May 16, the CME butter price closed at 3 1 Survey of Disposition by PMercantile Exchange (CME) have been $2.03 ⁄4 per pound, down 3 ⁄4¢ from April 15, 1 Container Size and Type ...... 2 declining over the last two months after four but 6 ⁄2¢ above a year ago. months of very little movement. The price of Pool Statistics ....................... 3 butter, on the other hand, has continued to hover On May 16, the CME nonfat dry milk price 1 around $2.00 per pound since declining from closed at $0.81 per pound, up 8 ⁄2¢ from April 3 Computation of Producer near $3.00 per pound late last year. 15, but 8 ⁄4¢ above a year ago. Price Differential ................... 4 The CME barrel cheese price on May 16 was The April Federal Order Class III price was Utilization and $1.33 per pound, down 8¢ from April 15, and the $13.63 per cwt., down $0.11 from March, and Classification......................... 5 40-pound block price of $1.28 per pound was $2.18 below April 2015. The May 2016 CME 3 1 down 14 ⁄4¢. The barrel price was also 29 ⁄4¢ below Class III futures price on May 16 was $12.74 Commodity Prices and the year-earlier level, while the block price was per cwt., with June through December 2016 Market Statistics ................... 6 down 34¢. ranging from $12.37 to $14.86 per cwt. Class Prices and Chicago Mercantile Exchange - Selected Commodity Prices * Producer Prices .................... 7 3.00 Butter reached record high of $3.1350/lb. on September 25. 2.50 2.00 Cheese Blocks 1.50 Cheese Barrels 1.00 NFDM Grade A 0.50 lMAYlJUNlJULlAUGlSEPlOCTlNOVlDEClJANlFEBlMARlAPR lMAY *Prices depicted are per pound for each day that trading occurred from May 1, 2015 to May 16, 2016. Pool Summary April 2016 Producer Milk by Class Ø In April, producer milk totaled 3.2 bil- pounds and accounted for 81.0% of Product lion pounds, up 66 million pounds producer milk. Percent Pounds Price from March, and 905 million pounds Ø The April Producer Price Differential $/cwt. above April 2015. (PPD) was $0.15 per cwt. Class I 8.9 283,379,329 15.54 Ø Class I utilization totaled 283 million Ø The April Statistical Uniform Price Class II 5.5 175,702,810 13.54 pounds, down 0.8% from March on a was $13.78 per cwt., down $0.06 from daily basis. Class I usage accounted Class III 81.0 2,587,295,451 13.63 March, and $2.06 below April 2015. for 8.9% of producer milk. Class IV 4.6 146,220,564 12.68 Ø Market statistics for April are shown Ø Class III utilization totaled 2.6 billion Total 3,192,598,154 on Pages 3, 4, and 5. Page 2 UPPER MIDWEST DAIRY NEWS Volume 17, Issue 5 November 2015 Fluid Milk Product Disposition by Container Size and Type luid milk product distribution (sales) in the Upper FMidwest Marketing Area was surveyed for November 2015 with respect to method of distribution and size and November 2015 type of container. Following is a summary of the results of the survey. Fluid Milk Product Distribution * This is the eighth survey conducted for the Upper Midwest Order since order consolidation and reform in January By Container Size 2000. The most recent survey was for November 2013, and was reported in the June 2014 Upper Midwest Dairy News. Comparisons will be made in this article between the 2015 Other survey and earlier surveys. 3% HalfͲPint size of con- HalfͲGallon Quart The survey was divided into three categories: 10% 2% tainer - gallon, half-gallon, etc.; type of container - paper, 16% plastic, or glass; and method of distribution - wholesale or home delivered. Wholesale includes all distribution of fluid milk products on routes other than home delivery. This would include sales through convenience stores and supermarkets as well as sales to schools and restaurants. Gallon 69% Size of Container In November 2015, gallons accounted for 69% of the total pounds of fluid milk product distribution, as shown to the right, followed by half-gallons at 16%, half-pints at 10%, and quarts at 2%. The remaining 3% of fluid milk product distribution was accounted for by all other sizes combined. From November 2013 to November 2015, distribution of gallons decreased 1% in percentage terms, while the half- By Container Type gallon category remained unchanged and the half-pint cate- gory increased 1 percentage point. Compared to the November 2001 survey, gallon distribution increased 3 per- centage points, while half-gallons dropped 2 percentage points. Paperand Type of Container Glass Paper includes all products sold in wax-coated or plastic- 16% coated paper containers, including foil-lined UHT paper containers. Plastic Plastic includes all products sold in rigid blow-mold or ther- 84% mo-formed plastic containers, single-serve round (milk bot- tle shaped) containers, plastic-lined boxes, and plastic pouches. Historically, plastic containers have been increasing as a percentage of total distribution. In November 2015, plastic containers accounted for 84% of total distribution, a 1% decrease in from 2013, but still a 4 percentage point * As a percentage of total pounds distributed. increase from 2001. Paper and glass accounted for the remaining 16% of total distribution in 2015. Volume 17, Issue 5 UPPER MIDWEST DAIRY NEWS Page 3 Distribution of paper and glass have been combined since for 62%, with 38% sold in paper. This represents an 8 per- 2005 because of restricted information. Distribution in glass centage point increase in plastic from 2013. Distribution of accounted for slightly over 1% of total distribution in 2015. half-pints in paper accounts for 94% of all half-pints sold. In the survey, information on disposition of conventional, Type of Container Within Container extended shelf life (ultra pasteurization or asceptic pasteur- Size ization), and organic milk is obtained. In November 2015, milk sold as organic accounted for 5.8% of fluid sales, while Gallon containers were exclusively sold in plastic extended shelf life accounted for 1.6%, and conventional in November 2015, no change from any of fluid milk accounted for a significant majority of 92.6%. the earlier surveys, as shown in the table below. Disposition of half-gallons in plas- Method of Distribution tic containers accounted for 65% of all half-gallons sold, unchanged from In November 2015, home delivery accounted for just over November 2013 but 10 percentage points 1% of total route disposition, a slight increase from the above 2001. Paper and glass accounted last two surveys. Distribution through wholesale outlets for the remaining 35% of all half-gallons accounted for the remaining 99%. The volume of route sold. (All of the glass containers sold disposition from home delivery in November 2015 was were the half-gallon size.) slightly above 3.2 million pounds, up 0.9 million pounds from November 2013, but well down from 5.3 million Distribution of quarts in plastic accounted pounds in November 2001. Distribution by Type of Container Within Container Size 2001 2003 2005 2007 2009 2011 2013 2015 Percent Percent Percent Percent Percent Percent Percent Percent Gallon Plastic 100 100 100 100 100 100 100 100 Paper & Glass 0 0 0 0 0 0 0 0 Half-Gallon Plastic 55 64 62 68 68 72 65 65 Paper & Glass 45 36 38 32 32 28 35 35 Quart Plastic 31 46 52 71 66 55 54 62 Paper & Glass 69 54 48 29 34 45 46 38 Half-Pint Plastic 03 01 06 10 12* 09 10 6 Paper & Glass 97 99 94 90 88* 91 90 94 All Other Plastic 82 85 93 96 89 87 78 84 Paper & Glass 18 15 07 04 11 13 22 16 * Revised. Upper Midwest Pool Statistics - April 2016 Market Class I Diverted to Location Differential Pool Received at Pool and Adjustment to Class I Differential Rate Plants Pool Plants Nonpool Plants Total Producers to Handlers Cwt. Number Pounds Pounds Pounds Value Pounds Value $1.80 3 87,751,954 10,224,166 97,976,120 $ 0 81,939,174 $ 1,474,905 $1.75 30 105,012,809 1,342,436,356 1,447,449,165 723,725 63,791,950 1,116,359 $1.70* 27 218,936,054 1,363,302,079 1,582,238,133 1,582,080 122,597,072 2,084,150 $1.65 3 18,273,251 46,661,485 64,934,736 97,402 15,051,133 248,344 Total 63 429,974,068 2,762,624,086 3,192,598,154 $ 2,403,207 283,379,329 $ 4,923,758 *$2.00 zone totals combined with 1.70 zone. Page 4 UPPER MIDWEST DAIRY NEWS Volume 17, Issue 5 Computation of Producer Price Differential - April 2016 Utilization Product Component Percentage Pounds Pounds Rate Value Class I Differential Value $ 4,923,758.21 Product 8.9% 283,379,329 Skim Milk 278,934,060 $ 6.2200 17,349,698.55 Butterfat 4,445,269 2.2106 9,826,711.66 Class II Product 5.5% 175,702,810 Nonfat Solids 15,238,670 0.6544 9,972,185.62 Butterfat 10,272,763 2.2446 23,058,243.83 Class III Product 81.0% 2,587,295,451 Protein 80,821,399 1.8450 149,115,481.36 Other Solids 148,815,694 0.0489 7,277,087.43 Butterfat 93,868,827 2.2376 210,040,887.30 Class IV Product 4.6% 146,220,564 Nonfat Solids 12,134,893 0.5573 6,762,775.89 Butterfat 13,952,368 2.2376 31,219,818.60 SCC Adjustment (Class II, III, and IV) 3,381,838.11 Total Producer Milk * 3,192,598,154 $ 472,928,486.56 Add: Overage 50,475.33 Inventory Reclassified (29,893.57) Other Source Milk §.60(h) 0.00 Other Source Milk §.60(i) 104,768 1,857.01 Subtract: Transportation Credit 6,545.03 Assembly Credit 226,380.05 Credit for Reconstituted FMP 0.00 Producer Milk Protein 183,475,602.69 Producer Milk Other Solids 8,959,104.00 Producer Milk Butterfat 274,193,774.36 Producer Milk SCC Adjustment 3,729,439.07 Total Milk and Value 3,192,702,922 $ 2,419,867.27 Add: Location Adjustment -- Producer and Unregulated Supply Plant Milk 2,403,350.92 One-Half Unobligated Balance Producer Settlement Fund 1,495,886.03 Total Value 0.197923 $ 6,319,104.22 Subtract: Producer Settlement Fund Reserve 0.047923 1,530,049.84 Producer Price Differential ** $ 0.15 $ 4,789,054.38 * An estimated 270 million pounds of milk was not pooled.
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