TO: CNP-South Texas Cooperative Members …...2011/04/07 · Region One Education Service Center does not discriminate on the basis of age, race, color, national origin, gender, or

Region One Education Service Center does not discriminate on the basis of age, race, color, national origin, gender, or disability.

TO: CNP-South Texas Cooperative Members FROM: Lori Atwood Ramos, MBA, RD Coordinator - Purchasing CNP SUBJECT: Food Service Full Line Items ~ Addendum #8

Proposal No. 11-04-07

DATE: January 09, 2013 This letter is to inform the Region One ESC Child Nutrition Program—South Texas Coopera-tive (CNP-STC) members of the following correction for CNP-STC Food Service Full Line Items RFP 11-04-07:

Bid Code: Correction:

21‐0123 Adding temporary discontinued item back on bid A253 Unit price, pack price

21‐0123A Marking item as “Alternate”, vendor # updated

03‐0106 Price change ($58.09 to $78.80) 21‐0122 Price change ($34.18 to $37.34)


08‐0102 Price change ($27.40 to $28.68) 21‐0123A Price change ($37.85 to $41.21)


21‐0110 Price change ($33.54 to $39.55) 21‐0132A Price change ($26.06 to $28.06)


The following mid‐semester price increases submitted by Labatt with supporting documentation enclosed and are effective January 1, 2013:

Bid Code: Correction:


21‐0118 Price change ($32.56 to $35.38) A157 Price change ($12.64 to $15.74)




A revised copy of the award Order Guide will be emailed to you, and posted on the South Texas Cooperative website at www.esc1.net/SouthTexasCoop. I apologize for any inconvenience; please contact me if you have any questions. Please note; districts are responsible for all orders and products selected for their student body. Thank you again for your participation and interest in the students of South Texas. Sincerely,

Lori Atwood Ramos

Steiner and Company produces the National PORK Board newsletter based on information we believe is accurate and reliable. However, neither NPB nor Steiner and Company warrants or guarantees the accuracy of or accepts any liability for the data, opinions or recommendations expressed.

An increasingly larger share of US beef, pork and poultry production now goes to export markets, making trade flows a critical driver for meat protein prices. Based on the latest USDA December estimates, beef exports in 2013 will account for 10% of US beef production, while pork and broiler exports will account for 24% and 20% of production, respectively. The announcement by Russia recently that it would stop purchases of US beef and pork until/unless such shipments are accompanied by a USDA certification that the product is free of the feed additive ractopamine, is only the latest reminder of the inherent vulnerability of export demand. It

is a key wild card that introduces significantly more price risk and volatility. With that in mind, let’s look at the October trade data, released by USDA yesterday morning (Tuesday Dec 11). Please note that all data is reported in metric ton and shipped weight basis. US pork exports in October were 168,913 MT, about 7,000 MT or 4% larger than a year ago. US pork exports increased despite a 62% decline in shipments to China/Hong Kong. Exports to most other markets increased. Exports to Russia were 11,450 MT, 5,435 MT or 90% larger than a year ago. Year to date exports to Russia account for

Pork Merchandiser’s

ProfitMaximizer

- Foodservice Edition © 2012 The National Pork Board, Des Moines, IA 515-223-2600; Prepared by Steiner and Company, Manchester, NH 800-526-4612. December 17, 2012

7,691

5,435

6,009

(28)

(25,363)

3,193

10,489

(422)

7,004

‐30,000 ‐25,000 ‐20,000 ‐15,000 ‐10,000 ‐5,000 0 5,000 10,000 15,000

Other

Russia

Korea, South

Taiwan

China/HK

Canada

Mexico

Japan

World Total

Y/Y Ch. in Oct. 2012 vs. Oct. 2011 US Pork ExportsContribution by Selected Markets to Overall Total

metric ton

80,000

90,000

100,000

110,000

120,000

130,000

140,000

150,000

160,000

170,000

180,000US TOTAL EXPORTS OF FRESH/FROZEN PORK

2009 2010 2011 2012

metric ton

December 17, 2012 Pork Merchandiser’s Profit Maximizer – Foodservice Edition

Page 2

about 1.3% of all US pork production compared to 0.8% of US pork production in all of 2011.

Total beef and veal exports for the month were 73,397 MT, down 2,711 MT or 4% from a year ago. It was the 10th consecutive month that US beef exports have posted a year over year decline, driven in large part by a sharp reduction in trade with Mexico, S. Korea and Vietnam. Beef price inflation has caused Mexican buyers to replace beef purchases with more pork and chicken. Beef exports to Mexico in October were just 7,366 MT, 41% less than a year ago. On the other hand, US pork exports to Mexico increased by 10,489 MT or 35% compared to last year and broiler exports were 17,255 MT or 48% larger than last year. Beef exports to Asia have been mixed. October shipments to South Korea were 6926 MT, down 26% from a year ago. Exports to Vietnam, declined 1835 MT or 47% from last year. The reduction in exports to Vietnam comes at a time when China has accelerated its overall beef imports. While China continues to limit its purchases of US beef, it has accelerated beef purchases from Australia and New Zealand, with China becoming the fourth largest market for Australian beef in October and November. But despite the reductions in exports to these key markets, not all is negative for US beef. Some markets continue to grow. Canada was the largest market for US beef in October, importing about 17,968 MT of beef, 35% more than the same period a year ago . On the other hand, US imports of Canadian beef declined 12,341 MT or 57%. This was in part due to the suspension of shipments from the XL plant in Alberta although the overall trend has been for Canada to export less beef to the US and import more. Beef exports to Russia in October were 6,424 MT, about 1,724 MT or 37% larger than a year ago.

Upcoming holidays:

2012 Christmas Day (Tuesday December 25); Boxing Day [Canada] (Wednesday December 26).

2013 New Year’s Day (Tuesday January 1); Martin Luther King Day (Monday January 21); Super Bowl XLVI Sunday (Sunday February 3, in New Orleans, LA); Chinese New Year (Sunday February 10); Ash Wednesday (Wednesday February 13); Valentine’s Day (Thursday February 14); President’s Day (Monday February 18); Daylight Savings Time Begins in US (Sunday March 10); St. Patrick’s Day (Sunday March 17); Passover (Tuesday March 26); Easter (Sunday March 31); Cinco de Mayo (Sunday May 5); Mother’s Day (Sunday May 12); Victoria Day [Canada] (Monday May 20); Memorial Day (Monday May 28); Father’s Day [US and Canada] (Sunday June 16); Canada Day [Canada] (Monday July 1); Independence Day (Thursday July 4); Labor Day [US and Canada] (Monday September 2); Rosh Hashanah (Thursday September 5); Yom Kippur (Saturday September 14); Columbus Day (Monday October 14; Canadian Thanksgiving Day (Monday October 14); Daylight Savings Time Ends [US and Canada] (Sunday November 3); Veterans Day (Monday November 11); Remembrance Day [Canada] (Monday November 11); Hanukkah (Wednesday November 27); Thanksgiving (Thursday November 28); Christmas Day (Wednesday December 25); Boxing Day [Canada] (Thursday December 26).

(1,737)

(1,835)

763

(480)

(5,192)

1,724

1,510

4,639

324

(2,426)

(2,711)

‐10,000 ‐5,000 0 5,000 10,000

Other

Vietnam

Taiwan

Egypt

Mexico

Russia

Hong Kong

Canada

Japan

Korea, South

World Total

Y/Y Ch. in Oct. 2012 vs.Oct. 2011 US Beef ExportsContribution by Selected Markets to Overall Total

metric ton


Page 3

PORK NOTE: WE ARE NOW REPORTING AND

FORECASTING WEIGHTED AVERGAGE BLUE SHEET PRICES FOR PORK CUTS.

Live hog. For the week ending December 15

hog slaughter was 2.304 million head, down about 1.92% from the same week a year ago. Slaughter for the last two reported weeks was down 0.19% vs. a year ago.

Iowa/Minnesota, Base Lean Market Hog

185 lbs. Carcass Values. Lean hog carcass values at $80.96/cwt. on Friday were down $5.03/cwt. since Wed. Dec. 5. Prices are now about $0.35/cwt. under year ago values. It appears hog farmers are attempting to tune their practices to the new $7.00+/bushel corn market by pushing to get hog slaughter weights down. We believe that retail ham ads the next few weeks followed by pork loin ads in January will continue to support prices. Keep in mind that if the increased slaughter is mostly because farmers are marketing their hogs earlier there will be a hole out front that will cause a relative shortage in the not too distant future. We do not expect increased slaughter rates due to the early marketings of hogs to last past about mid-December maybe early January. We expect hog slaughter in January to be under January 2012 numbers.

21/dn Pork Loins “Total on FOB Basis” (page 8). Prices finished last week at $1.0400 for the “Total on FOB Basis” quote, down about 2 cents since the Wed. Dec. 5 quote and down about 13 cents from year ago levels.

Bnls. Strap on Pork Loins. Prices finished

the week at $1.5367 for the strap on loins, up about 11 cents since Wed. Dec. 5 but down about 5 cents from the year ago levels. Strap off loins at $1.7063 are up about 3 cents since Wed. Dec. 5 but down about 7 cents compared to the year ago quote.

Boneless sirloins at $1.1067 are down about 4 cents from the Wed. Dec. 5 quote and down about 13 cents from the year ago price.

Pork tenderloin finished last week at $2.0000

are unchanged since the Wed. Dec. 5 quote and down about 49 cents from the year ago price.

5/10 Pork Butts “Total on FOB Basis” (page

10), prices finished the week at $0.9533 down about one cent since Wed. Dec. 5 and down about 23 cents from the year ago

4.25/dn Spare Ribs “Total on FOB Basis” (page 8). Prices finished the week at $1.2739 down about 4 cents since Wed. Dec. 5 and down about 31 cents from year ago levels.

Rib inventories on October 31 were 81.5 million pounds, up 42 percent from a year ago.

Hams “Total on FOB Basis”. The Total on FOB Basis for 17/20 hams (page

8) price was 83.00 cents unchanged since Wed. Dec. 5 but down about 9 cents from a year ago.

20/23 hams finished the week at 74.00 cents for the Total on FOB Basis down about 11 cents since Wed. Dec. 5 and down about 14 cents from the year ago level.

23/27 hams finished the week at 74.00 cents for the Total on FOB Basis down about 10 cents from the Wed. Dec. 5 quote and down about 8 cents from the year ago level.

Total ham cold storage stocks on October 31 at 187.9 million pounds were up 40 percent from year ago levels.

Bellies “Total on FOB Basis”. 14/16 bellies

(page 9) finished Friday at $1.3000, up about 5 cents since the Wed. Dec. 5 quote and up about 20 cents from the year ago quote.

Cold storage stocks on October 31 were 19.1 million pounds, up about 119 percent from year ago levels.

42 CL Pork Trim “FOB Basis”. Prices

finished the week at 42.00 cents down about 12 cents since Wed. Dec. 5 and down about 13 cents from the year ago price.


Page 4

72 CL Pork Trim “FOB Basis” (page 10).

Prices finished the week at 63.00 cents down about one cent since the Wed. Dec. 5 quote and about 11 cents under the year ago level.

Freezer stocks of all trimmings on October 31 were 46.0 million pounds, up about 23 percent from the year ago levels.

72 CL Picnic Meat “FOB Basis”. Picnics

prices at 90.00 cents unchanged since Wed. Dec. 5 but down about 5 cents from the year ago price.

POULTRY Georgia Dock Broilers. The Georgia dock

price on Wednesday December 12 at 97.50 cents was up about 8 cents from a year ago.

The composite market average price was up about 16.10 cents from the year ago levels at 96.55 on Monday December 10.

Broiler slaughter for the week ending December 15 was estimated at 154.32 million, up about 3.58% from a year ago. For the last two weeks slaughter was up 2.18% vs. a year ago. Hurricane Sandy messed with the DelMarVa peninsula and this has disrupted the normal flow and shifted some slaughter numbers the last few weeks. Also, as the East Coast restocked it caused extra demand that will subside once everyone has the inventory levels back to normal. Expect steady to a bit lower prices in January.

Breasts. Prices on boneless skinless breasts

finished the week at $1.2887 down about 2 cents since the Wed. Dec. 5 quote but up about 3 cents from the year ago levels.

Expect higher prices in January. Leg Quarters. The value of this item and the

timing of price moves are completely dependent on the timing of export purchases and export business, which seems a little iffy at this time. Leg quarter prices are now trading about one cent under year ago prices at 51.29. The developing Mexican issue with possible cutbacks in the amount of US chicken moving into Mexico could have a negative effect on leg quarter prices after the end of August. Mexico is not implementing

the anti-dumping tariffs at this time but they could be implemented by Mexico after the bird flu issue in Mexico gets resolved.

Wings. Prices at $1.9115 are up about 40 cents

from year ago levels. Expect higher prices into the end of the football season. Seasonal peak prices normally occur for the Super Bowl, which is on Sunday February 3, 2013 in New Orleans this year.

Turkeys Hens finished last week at $1.0500 down about

2 cents since Wed. Dec. 5 and down about 6 cents from the year ago price

Toms finished last week at $1.0500 down about

2 cents since Wednesday Nov. 21 and down about 6 cents from the year ago price.

Total turkey supplies in the freezer on October 31 were up about 12 percent from a year ago at 454.0 million pounds. Whole birds were up 25 percent from year ago with that inventory at 258.3 million pounds.

Turkey slaughter was 46.10 million head for the week ending December 8, up 0.07% from a year ago. For the last two reported weeks slaughter was 0.52% under a year ago.

Boneless Turkey Breast Meat. Boneless

skinless turkey breast meat prices finished last week at $2.0500, unchanged since Wed. Dec. 5. Prices are down about 55 cents vs. year ago prices.

BEEF

NOTE: WE ARE NOW REPORTING AND FORECASTING WEIGHTED AVERAGE BLUE SHEET PRICES FOR BEEF CUTS.

Choice 112A Heavy Bnls. Lip On Rib Eyes at $7.9246 (weighted average quote) finished last week down about 21 cents since the Wed. Dec. 5 quote but up about 41 cents vs. the year ago price.


Page 5

Select 112A Heavy Lip On Rib Eyes at $5.5035 (weighted average quote) finished last week up about 6 cents since the Wed. Dec. 5 quote and up about 85 cents vs. the year ago price.

Choice regular #168 insides finished last

week quoted at $2.1528 up about 4 cents since Wed. Dec. 5 and up about 5 cents from the year ago price. Choice ¼ inch trimmed #168 insides finished last week quoted at $2.2328 up about 5 cents since Wed. Dec. 5 and up about 2 cents from year ago levels.

Choice #170 Gooseneck Rounds finished last

finished last week at $1.9805 down about 9 cents since Wed. Dec. 5 but up about one cent from the year ago levels.

Choice #180 (0x1) Bnls. Strip Loins finished

last week quoted at $5.0045 (wt. avg.) up about one cent from the Wed. Dec. 5 quote. Prices are 8 cents over year ago levels.

Choice #184 Regular Heavy top butts

finished at $3.0877 (wt. avg.) up about 3 cents since Wed. Dec. 5 and up about 26 cents from year ago levels.

Choice #184 ¼ inch trimmed Top Butts

finished at $3.2077 (wt. avg.) up about 12 cents since Wed. Dec. 5 and up about 45 cents from the year ago levels.

Choice #185A Flap Meat prices finished

Friday at $3.7153 (wt. avg.) up about 7 cents since Wed. Dec. 5 and up about 60 cents/lb. from year ago values.

MANUFACTURING BEEF AND TRIM – Domestic cow meat supplies, in spite of poor pasture conditions, are running under year ago levels. Pasture conditions have been a big concern but ranchers are living with them. The dairy herd liquidation is causing the cow slaughter numbers to be as big as they are. For the last four reported weeks the total cow slaughter (the last week being the week ending December 1) was

1.94% under a year ago (see pages 150 and 151). As you can see on the slaughter statistics on page 150, the dairy cow slaughter was up 6.05% vs. a year ago. The beef cow kill was down 7.53% compared to year ago.

Imported beef supplies from Australia in November are down about 17% from 2011 tonnage. New Zealand’s heavy slaughter season has started. New Zealand’s shipments to the USA calendar year to date are running slightly above last year. Uruguay continues to find better markets for its beef and is shipping insignificant amounts to the USA. Mexico now has emerged as a significant shipper of beef, instead of feeder cattle, to the USA. The Australian currency remains above par. This has the potential of slowing the flow of meat from Australia. Imported meat vs. US domestic 90cl cow meat is trading at a premium at this time. Economic conditions in other parts of the world today are a concern for all meat exporting countries. The reason for the premium prices is that expectations are for higher prices in January on domestic and the import is already frozen.

The currency market continues to be volatile. The Australian dollar finished last week at US$1.0561 Australian dollar, up about $0.0151 from what it was two weeks ago.

90CL Bnls. Beef prices finished the week at

$2.0620 (wt. avg.) down less than one cent since Wed. Dec. 5 and about 13 cents over the year ago price quote. Ranchers liquidated their beef cows in 2011 and 2012. We simply have a smaller number of beef cows in the USA today than a year ago. Today the ranchers with feed are doing everything they can to hold the animals tight and the farmers with no feed apparently are already out of cows. Higher prices will occur in 2013. Market conditions will be tough between now and December.

50 CL Beef Trim prices finished last week at

$0.7606 up about 9 cents since Wed. Dec. 5 but about 22 cents under the year ago level. Prices are down primarily on fall-out from the LFTB issue, which is going to be a long term negative on 50CL prices. Keep in mind the normal seasonal up that


Page 6

often occurs in November as the fast food industry gears up for the Christmas shopping season increase in business does not normally last past mid-December.

Food Service Summary Table - WT. AVEJun Jul Aug Sep Oct Nov 12/5/2012 12/14/2012 12/26/2012 Dec Jan Feb Mar Apr May

PORK TRIM LOIN, 1/4" Trim 21#DN-LGT, TTL on FOB Basis, USDA 1.52 1.26 1.20 1.08 1.18 1.04 1.06 1.04 1.15 1.12 1.31 1.28 1.26 1.36 1.51 TRIM LOIN, 1/8" TRM/less 21#DN-LGT, TTL on FOB Basis, USDA 1.57 1.38 1.33 1.19 1.26 1.14 1.17 1.15 1.31 1.26 1.39 1.38 1.36 1.45 1.62 LOINS, CNTRCUT, BNLS STRAP-OFF 5-11#, USDA 2.02 1.70 1.76 1.66 1.76 1.65 1.67 1.71 1.72 1.74 1.96 1.89 1.87 1.94 2.14 PORK TENDERLOIN 1.25/DN#, 3.04 3.09 2.58 2.19 2.14 2.13 2.00 2.00 2.15 2.16 2.51 2.76 2.75 2.64 2.98 TRIMMED BUTT, 1/4" TRM 5-10#, TTL on FOB Basis, USDA 1.19 1.08 0.99 0.93 0.98 0.98 0.97 0.95 0.99 1.02 1.05 1.12 1.09 1.18 1.24 SPARERIBS, 3 BAG/3 PCVAC 4.25#/DN-LG, TTL on FOB Basis, U 1.62 1.39 1.30 1.25 1.42 1.39 1.32 1.27 1.39 1.36 1.56 1.63 1.67 1.68 1.81ST LOUIS STYLE RIBS 2 1/4 DN 2.62 2.39 2.30 2.25 2.42 2.39 2.32 2.27 2.39 2.36 2.56 2.63 2.67 2.68 2.81 SPARERIBS, 2 BAG/3 PCVAC 4.25#/UP-M, USDA 1.57 1.35 1.29 1.22 1.35 1.39 1.33 1.21 1.35 1.33 1.44 1.49 1.55 1.59 1.71 LOIN BACKRIB (BOXED), FRSH/FRZN, 1.75-2.00, USDA 2.34 2.34 2.34 2.34 2.34 2.34 2.34 2.34 2.32 2.42 2.63 2.60 2.60 2.55 2.58 LOIN BACKRIB (BOXED), FRSH/FRZN, 2.00/UP, USDA 2.69 2.04 2.04 2.04 2.04 2.04 2.04 2.04 2.04 2.04 2.04 2.04 2.04 2.04 2.04 SKINNED HAM, BONE-IN, 17-20#, TTL on FOB Basis, USDA 0.75 0.80 0.77 0.72 0.82 0.82 0.83 0.83 0.73 0.83 0.76 0.80 0.81 0.79 0.83 SKINNED HAM, BONE-IN, 20-23#, TTL on FOB Basis, USDA 0.75 0.78 0.77 0.71 0.81 0.79 0.85 0.74 0.68 0.79 0.75 0.78 0.78 0.77 0.82 SKINNED HAM, BONE-IN, 23-27#, TTL on FOB Basis, USDA 0.75 0.78 0.77 0.72 0.81 0.79 0.84 0.74 0.70 0.78 0.74 0.77 0.76 0.77 0.83SELECT, BNLS 5 MUSCLE HAMS 94-96%, TTL on FOB Basis, USDA 1.15 1.15 1.15 1.24 1.39 1.25 1.20 1.20 1.24 1.29 1.31 1.32 1.27 1.31 1.26 BELLY, SKIN-ON, TRIM 12-14#, TTL on FOB Basis, 1.22 1.36 1.46 1.14 1.27 1.26 1.20 1.30 1.27 1.26 1.33 1.39 1.42 1.46 1.54 BELLY, SKIN-ON, TRIM 14-16#, TTL on FOB Basis, 1.21 1.38 1.45 1.15 1.28 1.25 1.25 1.30 1.31 1.29 1.36 1.42 1.45 1.49 1.57 BELLY, SKIN-ON, TRIM 16-18#, TTL on FOB Basis, 1.21 1.36 1.46 1.13 1.27 1.28 1.25 1.25 1.27 1.26 1.33 1.39 1.42 1.46 1.54 42CL PORK TRIM, FRESH, COMBO, USDA 0.55 0.60 0.54 0.42 0.47 0.42 0.47 0.35 0.40 0.42 0.46 0.49 0.54 0.57 0.62 72CL PORK TRIM, FRESH, COMBO, USDA 0.81 0.77 0.67 0.52 0.65 0.62 0.64 0.63 0.63 0.63 0.75 0.78 0.81 0.82 0.88

HOG CARCASS250-270# HOGS, US 1-3, INTERIOR IOWA DIRECT HOG MARKET 0.97 0.97 0.85 0.69 0.81 0.78 0.86 0.81 0.84 0.83 0.83 0.87 0.86 0.92 0.99

BROILERS 12 CITY BROILER COMPOSITE WEIGHTED AVG. 0.85 0.83 0.83 0.83 0.84 0.94 0.99 0.97 0.97 0.96 0.94 0.93 0.93 0.92 0.95 N.E. BROILER BREAST BONELESS-SKINLESS, USDA 1.37 1.38 1.45 1.38 1.30 1.30 1.31 1.29 1.34 1.33 1.41 1.52 1.60 1.66 1.68 N.E. BROILER BREAST LINE RUN, USDA 0.96 0.96 0.98 0.98 0.95 0.95 0.92 0.93 0.97 0.96 1.03 1.11 1.15 1.18 1.21 N.E. BROILER LEG QUARTERS, USDA 0.51 0.50 0.50 0.52 0.52 0.51 0.50 0.51 0.53 0.52 0.51 0.53 0.54 0.57 0.58 N.E. BROILER WINGS, USDA 1.81 1.84 1.86 1.89 1.88 1.88 1.89 1.91 1.96 1.93 2.05 2.10 2.01 1.91 1.80TURKEYSHEN TURKEYS, EAST, FROZEN 10-12LBS, , TOP HEN TURKEYS, EA 1.10 1.10 1.12 1.13 1.15 1.15 1.07 1.05 1.01 1.07 1.04 1.04 1.06 1.10 1.12 UB BONELESS-SKINLESS TURKEY BREAST, TOM, FRESH, 1.84 1.81 2.05 2.26 2.27 2.10 2.05 2.05 1.99 2.05 2.00 1.95 2.00 2.20 2.39

LIVE STEERS FIVE AREA DIRECT AVERAGE LIVE STEER, USDA 1.20 1.15 1.18 1.24 1.24 1.26 1.25 1.24 1.24 1.25 1.29 1.32 1.35 1.37 1.34

BEEFCHOICE, 112A, 3 RIBEYE, BONELESS, HEAVY, USDA 7.10 6.53 6.48 6.77 6.80 7.44 7.89 7.69 6.53 7.55 6.63 6.79 7.50 7.73 7.42CHOICE, 168, 3 TOP INSIDE ROUND, 1/4" MAX, USDA 2.10 2.04 2.15 2.18 2.19 2.19 2.19 2.23 2.39 2.26 2.55 2.55 2.55 2.55 2.51CHOICE, 170, 1 BOTTOM GOOSENECK ROUND, USDA 1.97 2.01 2.05 2.11 2.16 2.10 2.07 1.98 2.20 2.15 2.38 2.46 2.41 2.27 2.19CHOICE, 180, 3 STRIP LOIN, BONELESS, 0x1, USDA 7.87 6.09 5.35 5.07 5.08 5.00 4.99 5.00 5.43 5.31 6.04 6.19 6.67 7.64 7.60CHOICE, 184, 3 TOP BUTT, BONELESS, USDA 3.63 3.32 3.15 3.07 3.17 3.13 3.09 3.21 3.35 3.25 3.69 3.80 4.11 4.30 4.06CHOICE, 185A, 4 BOTTOM SIRLOIN, FLAP, USDA 4.68 4.67 4.27 3.64 3.52 3.57 3.65 3.72 3.85 3.82 4.25 4.37 5.01 5.27 5.05 COARSE GROUND 73%, USDA 1.50 1.35 1.52 1.52 1.52 1.52 1.39 1.50 1.62 1.51 1.85 1.76 1.63 1.81 1.85 COARSE GROUND 81%, USDA 1.84 1.67 1.91 1.96 1.89 1.85 1.74 1.67 2.03 1.91 2.29 2.27 2.09 2.21 2.26 90% BONELESS BEEF, CENTRAL, FRESH, USDA 2.22 2.15 2.12 2.08 2.02 2.05 2.07 2.06 2.18 2.12 2.40 2.52 2.44 2.47 2.58 50CL BEEF TRIM, FRESH, NATIONAL, USDA 0.51 0.48 0.51 0.55 0.60 0.76 0.67 0.76 0.76 0.75 0.69 0.67 0.74 0.76 0.79

Page 7 © 2012 Steiner Consulting Group (1-800-526-4612)

2012-13 FORECAST2012 History

*St. Louis 2 1/4 dn rib prices are estimated at 3 1/2 dn plus $1.10

0

1.89 1.57 1.42 1.47 1.5025 1.7

Page 9Page 8

Page 23

TRIM LOIN, 1/4" Trim 21#DN-LGT, TTL on FOB Basis, USDA

70

80

90

100

110

120

130

140

150

160

170

6/6/

12

6/27

/12

7/18

/12

8/8/

12

8/29

/12

9/19

/12

10/1

0/12

10/3

1/12

11/2

1/12

12/1

2/12

1/2/

13

1/23

/13

2/13

/13

3/6/

13

3/27

/13

4/17

/13

5/8/

13

5/29

/13

2012-13 Wednesday Dates

Dol

lars

per

CW

T

5 YR. MONTHLY AVG. YEAR AGO WEEKLY PRICE 2012-13 WEEKLY PRICE FORECAST

December 14, 2012 = 104.00

SPARERIBS, 3 BAG/3 PCVAC 4.25#/DN-LG, TTL on FOB Basis, USDA

70

90

110

130

150

170

190

210

6/6/

12

6/27

/12

7/18

/12

8/8/

12

8/29

/12

9/19

/12

10/1

0/12

10/3

1/12

11/2

1/12

12/1

2/12

1/2/

13

1/23

/13

2/13

/13

3/6/

13

3/27

/13

4/17

/13

5/8/

13

5/29

/13


Dol

lars

per

CW

T


December 14, 2012 = 127.39


0

1.89 1.57 1.42 1.47 1.5025 1.7

Page 9Page 8

Page 23

SKINNED HAM, BONE-IN, 17-20#, TTL on FOB Basis, USDA

40

50

60

70

80

90

100

110

6/6/

12

6/27

/12

7/18

/12

8/8/

12

8/29

/12

9/19

/12

10/1

0/12

10/3

1/12

11/2

1/12

12/1

2/12

1/2/

13

1/23

/13

2/13

/13

3/6/

13

3/27

/13

4/17

/13

5/8/

13

5/29

/13


Dol

lars

per

CW

T


December 14, 2012 = 83.00

BELLY, SKIN-ON, TRIM 14-16#, TTL on FOB Basis,

30

50

70

90

110

130

150

170

190

6/6/

12

6/27

/12

7/18

/12

8/8/

12

8/29

/12

9/19

/12

10/1

0/12

10/3

1/12

11/2

1/12

12/1

2/12

1/2/

13

1/23

/13

2/13

/13

3/6/

13

3/27

/13

4/17

/13

5/8/

13

5/29

/13


Dol

lars

per

CW

T


December 14, 2012 = 130.001


0

1.89 1.57 1.42 1.47 1.5025 1.7

Page 9Page 8

Page 23

TRIMMED BUTT, 1/4" TRM 5-10#, TTL on FOB Basis, USDA

60

70

80

90

100

110

120

130

140

6/6/

12

6/27

/12

7/18

/12

8/8/

12

8/29

/12

9/19

/12

10/1

0/12

10/3

1/12

11/2

1/12

12/1

2/12

1/2/

13

1/23

/13

2/13

/13

3/6/

13

3/27

/13

4/17

/13

5/8/

13

5/29

/13


Dol

lars

per

CW

T


December 14, 2012 = 95.33

72CL PORK TRIM, FRESH, COMBO, USDA

0

20

40

60

80

100

120

140

6/6/

12

6/27

/12

7/18

/12

8/8/

12

8/29

/12

9/19

/12

10/1

0/12

10/3

1/12

11/2

1/12

12/1

2/12

1/2/

13

1/23

/13

2/13

/13

3/6/

13

3/27

/13

4/17

/13

5/8/

13

5/29

/13


Dol

lars

per

CW

T


December 14, 2012 = 63


Page 8

ESTIMATED WEEKLY FI HOG SLAUGHTER

1,500

1,600

1,700

1,800

1,900

2,000

2,100

2,200

2,300

2,400

2,500

1/7/1

2

1/28

/12

2/18

/12

3/10

/12

3/31

/12

4/21

/12

5/12

/12

6/2/1

2

6/23

/12

7/14

/12

8/4/1

2

8/25

/12

9/15

/12

10/6/

12

10/27

/12

11/17

/12

12/8/

12

12/29

/12

TH

OU

SA

ND

HE

AD

5 YEAR AVERAGE 40551 40915

ESTIMATED WEEKLY FI PORK PRODUCTION

340.0

360.0

380.0

400.0

420.0

440.0

460.0

480.0

500.0

520.0

1/7/1

2

1/28

/12

2/18

/12

3/10

/12

3/31

/12

4/21

/12

5/12

/12

6/2/1

2

6/23

/12

7/14

/12

8/4/1

2

8/25

/12

9/15

/12

10/6/

12

10/27

/12

11/17

/12

12/8/

12

12/29

/12

MIL

LIO

N L

BS

.

5 YEAR AVERAGE 2011 BEEF PRODUCTION 2012 BEEF PRODUCTION


Dairy Products

ISSN: 1949-0399

Released December 3, 2012, by the National Agricultural Statistics Service (NASS), Agricultural Statistics Board, United States Department

of Agriculture (USDA).

October 2012 Highlights Total cheese output (excluding cottage cheese) was 928 million pounds, 3.2 percent above October 2011 and 6.3 percent

above September 2012.

Italian type cheese production totaled 388 million pounds, 0.9 percent above October 2011 and 4.8 percent above

September 2012.

American type cheese production totaled 371 million pounds, 5.1 percent above October 2011 and 6.1 percent above

September 2012.

Butter production was 146 million pounds, slightly above October 2011 and 6.8 percent above September 2012.

Dry milk powders (comparisons with October 2011)

Nonfat dry milk, human - 95.0 million pounds, down 5.6 percent.

Skim milk powders - 45.6 million pounds, up 8.7 percent.

Whey products (comparisons with October 2011)

Dry whey, total - 76.0 million pounds, down 1.9 percent.

Lactose, human and animal - 83.0 million pounds, down 0.4 percent.

Whey protein concentrate, total - 37.0 million pounds, down 0.8 percent.

Frozen products (comparisons with October 2011)

Ice cream, regular (hard) - 64.0 million gallons, up 6.1 percent.

Ice cream, lowfat (total) - 31.6 million gallons, down 6.6 percent.

Sherbet (hard) - 3.06 million gallons, up 18.5 percent.

Frozen yogurt (total) - 4.60 million gallons, up 4.2 percent.

2 Dairy Products (December 2012) USDA, National Agricultural Statistics Service

Contents

Dairy Products Production by Product – United States: October 2011 and 2012 ................................................................... 3

Whey and Modified Whey Products Production, Stocks, and Prices – United States: October 2011 and 2012 ..................... 4

Canned, Condensed, and Dry Milk Products Production, Stocks, and Shipments – United States:

October 2011 and 2012 ........................................................................................................................................................... 5

Dairy Products Production by Product and Month – United States: 2011 and 2012 .............................................................. 6

Total Cheese Production Excluding Cottage Cheese – States and United States: October 2011 and 2012 .......................... 13

American Cheese Production – States and United States: October 2011 and 2012 .............................................................. 14

Cheddar Cheese Production – States and United States: October 2011 and 2012 ................................................................ 14

Total Italian Cheese Production – States and United States: October 2011 and 2012 .......................................................... 15

Mozzarella Cheese Production – States and United States: October 2011 and 2012 ............................................................ 15

Butter Production – States and United States: October 2011 and 2012 ................................................................................ 16

Nonfat Dry Milk (Human) Production – States and United States: October 2011 and 2012 ............................................... 16

Dry Whey (Human) Production – States and United States: October 2011 and 2012 .......................................................... 17

Ice Cream, Regular (Hard) Production – States and United States: October 2011 and 2012 ............................................... 17

Dairy Products Regions ......................................................................................................................................................... 18

Statistical Methodology ......................................................................................................................................................... 19

Information Contacts ............................................................................................................................................................. 20

Dairy Products (December 2012) 3 USDA, National Agricultural Statistics Service

Dairy Products Production by Product – United States: October 2011 and 2012

Product October

2011 September

2012 October

2012

Change from

October 2011

September 2012

(1,000 pounds) (1,000 pounds) (1,000 pounds) (percent) (percent)

Butter ...................................................................... Cheese American types 1 ................................................. Cheddar .......................................................... Other American types ..................................... Blue and Gorgonzola .......................................... Brick and Muenster ............................................. Cream and Neufchatel ........................................ Feta .................................................................... Gouda ................................................................. Hispanic .............................................................. Italian types ........................................................ Mozzarella ...................................................... Parmesan ....................................................... Provolone ....................................................... Ricotta ............................................................ Romano .......................................................... Other Italian types ........................................... Swiss .................................................................. All other types ..................................................... Total cheese ....................................................... Cottage cheese, curd 2 ........................................... Cottage cheese, cream 3 ........................................ Cottage cheese, lowfat 4 ......................................... Sour cream ............................................................. Yogurt, plain and flavored .......................................

145,667

352,541 247,568 104,973

7,924 12,904 69,025 5,943 1,329

19,993 384,356 296,082 23,048 30,718 24,743 3,697 6,068

27,418 17,914

899,347

32,994 25,120 28,976

105,944 355,478

136,384

349,294 243,736 105,558

6,395 13,294 67,886 7,266 4,265

18,007 370,012 287,262 21,178 29,311 22,150 3,655 6,456

25,391 11,384

873,194

34,130 25,804 32,196

98,239

399,050

145,677

370,608 262,996 107,612

7,146 13,794 79,078 6,407 2,745

19,474 387,746 297,280 25,078 31,072 24,653 3,841 5,822

26,772 14,101

927,871

34,511 25,998 32,819

114,530 371,044

-

5.1 6.2 2.5

-9.8 6.9

14.6 7.8

106.5 -2.6 0.9 0.4 8.8 1.2

-0.4 3.9

-4.1 -2.4

-21.3

3.2

4.6 3.5

13.3

8.1 4.4

6.8

6.1 7.9 1.9

11.7 3.8

16.5 -11.8 -35.6

8.1 4.8 3.5

18.4 6.0

11.3 5.1

-9.8 5.4

23.9

6.3

1.1 0.8 1.9

16.6 -7.0

(1,000 gallons) (1,000 gallons) (1,000 gallons) (percent) (percent)

Frozen products Ice cream, regular, hard ...................................... Ice cream, lowfat, hard ........................................ Ice cream, lowfat, soft ......................................... Ice cream, lowfat, total ........................................ Ice cream, nonfat, hard ....................................... Sherbet, hard ...................................................... Frozen yogurt, total ............................................. Regular and lowfat, hard ................................. Nonfat, hard .................................................... Other frozen dairy products ................................. Water and juice ices ........................................... Mix for frozen products Ice cream, regular, mix ....................................... Ice cream, lowfat, mix ......................................... Ice cream, nonfat, mix ......................................... Sherbet mix ........................................................ Yogurt mix ..........................................................

60,282 13,792 20,016 33,808 1,044 2,578 4,411 1,461

427 893

3,327

33,887 17,476

675 1,662 2,744

57,483 14,421 20,187 34,608 1,098 3,211 4,945 1,346

415 832

4,783

33,393 19,678

704 2,002 2,997

63,962 14,291 17,297 31,588

834 3,055 4,595 1,422

548 1,006 3,408

35,755 17,879

556 2,074 2,785

6.1 3.6

-13.6 -6.6

-20.1 18.5 4.2

-2.7 28.3 12.7 2.4

5.5 2.3

-17.6 24.8 1.5

11.3 -0.9

-14.3 -8.7

-24.0 -4.9 -7.1 5.6

32.0 20.9

-28.7

7.1 -9.1

-21.0 3.6

-7.1

- Represents zero. 1 Includes Cheddar, Colby, Monterey, and Jack. 2 Mostly used for processing into cream or lowfat cottage cheese. 3 Fat content 4 percent or more. 4 Fat content less than 4 percent.


Whey and Modified Whey Products Production, Stocks, and Prices – United States: October 2011 and 2012

Product October

2011 September

2012 October

2012

Change from

October 2011

September 2012


Production Condensed whey, solids content 1 Sweet-type, human ............................................. Dry whey products Dry whey, human ................................................ Dry whey, animal ................................................ Dry whey, total .................................................... Reduced lactose and minerals Human ................................................................ Animal ................................................................. Whey protein concentrate Human 2 .............................................................. Animal 2 .............................................................. Total 2 ................................................................. 25.0-49.9 percent 3 .......................................... 50.0-89.9 percent 3 .......................................... Whey protein isolates 4 ............................................ Lactose, human and animal ....................................

8,278

71,317 6,200

77,517

3,264 4,660

34,450 2,873

37,323 21,182 16,141

5,202

83,402

7,462

70,025 4,160

74,185

2,133 4,827

33,066 2,428

35,494 18,225 17,269

4,857

85,991

8,476

72,316 3,713

76,029

2,241 4,907

34,286 2,757

37,043 20,116 16,927

5,537

83,027

2.4

1.4 -40.1 -1.9

-31.3 5.3

-0.5 -4.0 -0.8 -5.0 4.9

6.4

-0.4

13.6

3.3 -10.7

2.5

5.1 1.7

3.7 13.6 4.4

10.4 -2.0

14.0

-3.4

Manufacturers' stocks end of month 5 Dry whey products Dry whey, human ................................................ Dry whey, animal ................................................ Dry whey, total .................................................... Reduced Lactose and minerals Human and animal 6 .............................................. Whey protein concentrate Human 2 .............................................................. Animal 2 .............................................................. Total 2 ................................................................. 25.0-49.9 percent 3 .......................................... 50.0-89.9 percent 3 .......................................... Whey protein isolates 4 ............................................ Lactose, human and animal ....................................

38,792 4,422

43,214

4,811

35,754 2,501

38,255 20,288 17,967

5,543

71,288

40,798 2,978

43,776

7,144

52,955 3,009

55,964 32,107 23,857

7,853

82,036

37,406 2,666

40,072

6,925

54,687 2,799

57,486 32,355 25,131

8,483

88,571

-3.6 -39.7 -7.3

43.9

53.0 11.9 50.3 59.5 39.9

53.0

24.2

-8.3 -10.5 -8.5

-3.1

3.3 -7.0 2.7 0.8 5.3

8.0

8.0

(cents per pound) (cents per pound) (cents per pound) (cents change) (cents change)

Manufacturers' selling price 7 Dry whey, animal ....................................................

45.7

39.8

41.4

-4.3

1.6

1 Final marketable product only. Does not include quantity used or shipped to another plant for further processing into dry whey or modified whey products. Does not include sweet-type, animal whey.

2 Whey protein concentrate, 25.0 to 89.9 percent. 3 Whey protein concentrate, human and animal. 4 Whey protein isolate, 90.0 percent or greater. 5 Stocks held by manufacturers at all points and in transit. 6 Reduced lactose and minerals stocks combined to avoid disclosure of individual operations. 7 Prices for bulk goods, f.o.b. plant. Average monthly prices reported by firms.


Canned, Condensed, and Dry Milk Products Production, Stocks, and Shipments – United States: October 2011 and 2012

Product October

2011 September

2012 October

2012

Change from

October 2011

September 2012


Production Bulk condensed milk Skim, unsweetened ............................................ Canned milk Evaporated and condensed whole ...................... Dry milk products Dry buttermilk, total ............................................. Dry skim milk, animal .......................................... Dry whole milk .................................................... Milk protein concentrate, total 1 ........................... Nonfat dry milk, human ....................................... Skim milk powder, total 2 ..................................... Manufacturers' stocks end-of-month 3 Canned milk Evaporated and condensed whole ...................... Dry milk products Dry buttermilk, total ............................................. Dry skim milk, animal .......................................... Dry whole milk .................................................... Nonfat dry milk, human ....................................... Manufacturers' shipments 4 Dry milk products Nonfat dry milk, human .......................................

135,108

42,160

7,608 637

5,142 6,114

100,607 41,985

61,143

11,949 1,068 5,040

143,394

105,704

126,097

(D)

6,727 617

4,156 5,226

84,498 43,638

(D)

7,406 2,232 4,770

118,385

81,031

131,255

(D)

8,595 704

5,479 5,408

95,011 45,637

(D)

9,928 2,539 5,703

104,196

96,107

-2.9

(X)

13.0 10.5 6.6

-11.5 -5.6 8.7

(X)

-16.9 137.7 13.2

-27.3

-9.1

4.1

(X)

27.8 14.1 31.8 3.5

12.4 4.6

(X)

34.1 13.8 19.6

-12.0

18.6

(D) Withheld to avoid disclosing data for individual operations. (X) Not applicable. 1 Dry milk protein concentrate, 40-89.9 percent. 2 Includes protein standardized and blends. 3 Stocks held by manufacturers at all points and in transit. 4 For dry products, shipments of bulk goods.


Dairy Products Production by Product and Month – United States: 2011 and 2012 [Blank data cells indicate estimation period has not yet begun]

Product and month

By month Cumulative

2011 2012 Change

from 2011

2011 2012 Change

from 2011

(1,000 pounds) (1,000 pounds) (percent) (1,000 pounds) (1,000 pounds) (percent)

Total cheese January ........................................................... February ......................................................... March .............................................................. April ................................................................ May ................................................................. June ................................................................ July ................................................................. August ............................................................ September ...................................................... October ........................................................... November ....................................................... December ....................................................... Total American cheese types 1 January ........................................................... February ......................................................... March .............................................................. April ................................................................ May ................................................................. June ................................................................ July ................................................................. August ............................................................ September ...................................................... October ........................................................... November ....................................................... December ....................................................... Cheddar cheese January ........................................................... February ......................................................... March .............................................................. April ................................................................ May ................................................................. June ................................................................ July ................................................................. August ............................................................ September ...................................................... October ........................................................... November ....................................................... December .......................................................

883,783 804,818 912,462 883,665 912,486 889,129 855,080 861,966 868,015 899,347 895,680 930,599

357,939 328,118 364,472 356,773 370,025 362,910 349,922 338,414 338,411 352,541 349,192 368,744

270,756 239,470 262,727 260,548 279,565 266,190 256,603 243,191 247,202 247,568 251,732 270,346

910,467 857,526 947,041 902,716 916,403 894,720 880,137 887,006 873,194 927,871

- -

366,311 342,473 376,734 364,992 368,431 360,170 356,079 353,508 349,294 370,608

- -

271,691 251,541 273,828 265,439 269,492 260,112 258,623 250,697 243,736 262,996

- -

3.0 6.5 3.8 2.2 0.4 0.6 2.9 2.9 0.6 3.2

- -

2.3 4.4 3.4 2.3

-0.4 -0.8 1.8 4.5 3.2 5.1

- -

0.3 5.0 4.2 1.9

-3.6 -2.3 0.8 3.1

-1.4 6.2

- -

883,783

1,688,601 2,601,063 3,484,728 4,397,214 5,286,343 6,141,423 7,003,389 7,871,404 8,770,751 9,666,431

10,597,030

357,939 686,057

1,050,529 1,407,302 1,777,327 2,140,237 2,490,159 2,828,573 3,166,984 3,519,525 3,868,717 4,237,461

270,756 510,226 772,953

1,033,501 1,313,066 1,579,256 1,835,859 2,079,050 2,326,252 2,573,820 2,825,552 3,095,898

910,467

1,767,993 2,715,034 3,617,750 4,534,153 5,428,873 6,309,010 7,196,016 8,069,210 8,997,081

- -

366,311 708,784

1,085,518 1,450,510 1,818,941 2,179,111 2,535,190 2,888,698 3,237,992 3,608,600

- -

271,691 523,232 797,060

1,062,499 1,331,991 1,592,103 1,850,726 2,101,423 2,345,159 2,608,155

- -

3.0 4.7 4.4 3.8 3.1 2.7 2.7 2.8 2.5 2.6

- -

2.3 3.3 3.3 3.1 2.3 1.8 1.8 2.1 2.2 2.5

- -

0.3 2.5 3.1 2.8 1.4 0.8 0.8 1.1 0.8 1.3

- -

See footnote(s) at end of table. --continued


Dairy Products Production by Product and Month – United States: 2011 and 2012 (continued) [Blank data cells indicate estimation period has not yet begun]

Product and month

By month Cumulative

2011 2012 Change

from 2011

2011 2012 Change

from 2011


Total Italian cheese types January ............................................................... February ............................................................. March ................................................................. April .................................................................... May .................................................................... June ................................................................... July ..................................................................... August ................................................................ September .......................................................... October ............................................................... November ........................................................... December ........................................................... Mozzarella January ............................................................... February ............................................................. March ................................................................. April .................................................................... May .................................................................... June ................................................................... July ..................................................................... August ................................................................ September .......................................................... October ............................................................... November ........................................................... December ........................................................... Other Italian cheese types January ............................................................... February ............................................................. March ................................................................. April .................................................................... May .................................................................... June ................................................................... July ..................................................................... August ................................................................ September .......................................................... October ............................................................... November ........................................................... December ...........................................................

388,414 351,366 401,115 385,552 393,929 381,016 360,273 363,544 369,144 384,356 385,466 409,536

307,024 272,708 309,433 299,252 307,969 297,131 286,486 285,727 285,478 296,082 295,632 320,529

4,856 5,251 5,384 5,663 5,294 5,481 5,424 5,370 6,153 6,068 5,994 5,797

400,926 371,270 409,870 385,837 390,980 378,765 368,565 370,487 370,012 387,746

- -

312,310 290,997 318,482 302,667 305,925 299,440 291,403 284,946 287,262 297,280

- -

5,113 5,077 5,363 5,597 5,854 7,176 6,067 6,085 6,456 5,822

- -

3.2 5.7 2.2 0.1

-0.7 -0.6 2.3 1.9 0.2 0.9

- -

1.7 6.7 2.9 1.1

-0.7 0.8 1.7

-0.3 0.6 0.4

- -

5.3 -3.3 -0.4 -1.2 10.6 30.9 11.9 13.3 4.9

-4.1 - -

388,414 739,780

1,140,895 1,526,447 1,920,376 2,301,392 2,661,665 3,025,209 3,394,353 3,778,709 4,164,175 4,573,711

307,024 579,732 889,165

1,188,417 1,496,386 1,793,517 2,080,003 2,365,730 2,651,208 2,947,290 3,242,922 3,563,451

4,856 10,107 15,491 21,154 26,448 31,929 37,353 42,723 48,876 54,944 60,938 66,735

400,926 772,196

1,182,066 1,567,903 1,958,883 2,337,648 2,706,213 3,076,700 3,446,712 3,834,458

- -

312,310 603,307 921,789

1,224,456 1,530,381 1,829,821 2,121,224 2,406,170 2,693,432 2,990,712

- -

5,113 10,190 15,553 21,150 27,004 34,180 40,247 46,332 52,788 58,610

- -

3.2 4.4 3.6 2.7 2.0 1.6 1.7 1.7 1.5 1.5

- -

1.7 4.1 3.7 3.0 2.3 2.0 2.0 1.7 1.6 1.5

- -

5.3 0.8 0.4

- 2.1 7.1 7.7 8.4 8.0 6.7

- -




Product and month

By month Cumulative

2011 2012 Change

from 2011

2011 2012 Change

from 2011


Butter January ............................................................... February ............................................................. March .................................................................. April .................................................................... May ..................................................................... June .................................................................... July ..................................................................... August ................................................................ September .......................................................... October ............................................................... November ........................................................... December ........................................................... Nonfat dry milk, human January ............................................................... February ............................................................. March .................................................................. April .................................................................... May ..................................................................... June .................................................................... July ..................................................................... August ................................................................ September .......................................................... October ............................................................... November ........................................................... December ........................................................... Skim milk powders 2 January ............................................................... February ............................................................. March .................................................................. April .................................................................... May ..................................................................... June .................................................................... July ..................................................................... August ................................................................ September .......................................................... October ............................................................... November ........................................................... December ...........................................................

167,059 150,070 165,359 158,670 155,873 141,293 135,460 133,749 137,907 145,667 152,781 165,866

115,242 107,827 125,809 146,708 148,783 146,906 133,273 114,912 103,824 100,607 120,315 150,202

39,988 36,209 41,788 27,008 35,667 33,284 39,653 38,677 35,593 41,985 39,586 36,579

180,586 169,444 175,993 169,805 163,299 137,495 133,222 129,510 136,384 145,677

- -

154,065 171,917 188,659 192,147 194,828 168,872 151,358 106,191 84,498 95,011

- -

39,704 18,233 11,912 17,451 13,321 25,362 37,238 40,337 43,638 45,637

- -

8.1

12.9 6.4 7.0 4.8

-2.7 -1.7 -3.2 -1.1

- - -

33.7 59.4 50.0 31.0 30.9 15.0 13.6 -7.6

-18.6 -5.6

- -

-0.7 -49.6 -71.5 -35.4 -62.7 -23.8 -6.1 4.3

22.6 8.7

- -

167,059 317,129 482,488 641,158 797,031 938,324

1,073,784 1,207,533 1,345,440 1,491,107 1,643,888 1,809,754

115,242 223,069 348,878 495,586 644,369 791,275 924,548

1,039,460 1,143,284 1,243,891 1,364,206 1,514,408

39,988 76,197

117,985 144,993 180,660 213,944 253,597 292,274 327,867 369,852 409,438 446,017

180,586 350,030 526,023 695,828 859,127 996,622

1,129,844 1,259,354 1,395,738 1,541,415

- -

154,065 325,982 514,641 706,788 901,616

1,070,488 1,221,846 1,328,037 1,412,535 1,507,546

- -

39,704 57,937 69,849 87,300

100,621 125,983 163,221 203,558 247,196 292,833

- -

8.1

10.4 9.0 8.5 7.8 6.2 5.2 4.3 3.7 3.4

- -

33.7 46.1 47.5 42.6 39.9 35.3 32.2 27.8 23.6 21.2

- -

-0.7 -24.0 -40.8 -39.8 -44.3 -41.1 -35.6 -30.4 -24.6 -20.8

- -




Product and month

By month Cumulative

2011 2012 Change

from 2011

2011 2012 Change

from 2011


Dry whey, total 3 January ................................................................... February ................................................................. March ..................................................................... April ........................................................................ May ........................................................................ June ....................................................................... July ......................................................................... August .................................................................... September .............................................................. October ................................................................... November ............................................................... December ............................................................... Lactose, human and animal January ................................................................... February ................................................................. March ..................................................................... April ........................................................................ May ........................................................................ June ....................................................................... July ......................................................................... August .................................................................... September .............................................................. October ................................................................... November ............................................................... December ............................................................... Whey protein concentrate, total January ................................................................... February ................................................................. March ..................................................................... April ........................................................................ May ........................................................................ June ....................................................................... July ......................................................................... August .................................................................... September .............................................................. October ................................................................... November ............................................................... December ...............................................................

90,192 82,035 94,304 92,037 91,293 83,740 81,752 79,759 76,800 77,517 77,614 83,074

81,122 74,812 85,312 80,547 87,301 89,870 85,263 83,098 82,853 83,402 81,668 84,953

34,871 32,701 36,809 34,668 36,669 36,292 34,683 35,248 35,571 37,323 36,818 39,285

96,072 89,372 88,211 85,990 86,102 83,171 90,277 78,022 74,185 76,029

- -

86,711 81,275 89,929 87,231 87,347 88,907 85,831 85,593 85,991 83,027

- -

38,520 35,416 38,881 37,132 36,997 38,662 34,079 34,902 35,494 37,043

- -

6.5 8.9

-6.5 -6.6 -5.7 -0.7 10.4 -2.2 -3.4 -1.9

- -

6.9 8.6 5.4 8.3 0.1

-1.1 0.7 3.0 3.8

-0.4 - -

10.5 8.3 5.6 7.1 0.9 6.5

-1.7 -1.0 -0.2 -0.8

- -

90,192

172,227 266,531 358,568 449,861 533,601 615,353 695,112 771,912 849,429 927,043

1,010,117

81,122 155,934 241,246 321,793 409,094 498,964 584,227 667,325 750,178 833,580 915,248

1,000,201

34,871 67,572

104,381 139,049 175,718 212,010 246,693 281,941 317,512 354,835 391,653 430,938

96,072

185,444 273,655 359,645 445,747 528,918 619,195 697,217 771,402 847,431

- -

86,711 167,986 257,915 345,146 432,493 521,400 607,231 692,824 778,815 861,842

- -

38,520 73,936

112,817 149,949 186,946 225,608 259,687 294,589 330,083 367,126

- -

6.5 7.7 2.7 0.3

-0.9 -0.9 0.6 0.3

-0.1 -0.2

- -

6.9 7.7 6.9 7.3 5.7 4.5 3.9 3.8 3.8 3.4

- -

10.5 9.4 8.1 7.8 6.4 6.4 5.3 4.5 4.0 3.5

- -




Product and month

By month Cumulative

2011 2012 Change

from 2011

2011 2012 Change

from 2011


Cottage cheese, cream January ............................................................... February ............................................................. March .................................................................. April .................................................................... May ..................................................................... June .................................................................... July ..................................................................... August ................................................................ September .......................................................... October ............................................................... November ........................................................... December ........................................................... Cottage cheese, lowfat January ............................................................... February ............................................................. March .................................................................. April .................................................................... May ..................................................................... June .................................................................... July ..................................................................... August ................................................................ September .......................................................... October ............................................................... November ........................................................... December ........................................................... Sour cream January ............................................................... February ............................................................. March .................................................................. April .................................................................... May ..................................................................... June .................................................................... July ..................................................................... August ................................................................ September .......................................................... October ............................................................... November ........................................................... December ...........................................................

26,467 25,848 28,469 26,906 27,271 28,487 27,449 30,481 28,098 25,120 24,345 23,157

31,093 30,490 35,986 32,149 32,613 34,411 31,616 34,168 31,639 28,976 30,725 27,615

98,471 87,685

108,308 101,797 104,242 104,735 98,374

109,288 97,587

105,944 123,865 114,599

26,026 25,805 26,375 25,015 27,909 26,027 27,790 29,375 25,804 25,998

- -

33,450 32,168 32,935 31,708 34,632 31,653 32,241 36,292 32,196 32,819

- -

102,908 97,554

111,356 96,529

108,185 104,142 100,512 110,152 98,239

114,530 - -

-1.7 -0.2 -7.4 -7.0 2.3

-8.6 1.2

-3.6 -8.2 3.5

- -

7.6 5.5

-8.5 -1.4 6.2

-8.0 2.0 6.2 1.8

13.3 - -

4.5 11.3 2.8

-5.2 3.8

-0.6 2.2 0.8 0.7 8.1

- -

26,467 52,315 80,784

107,690 134,961 163,448 190,897 221,378 249,476 274,596 298,941 322,098

31,093 61,583 97,569

129,718 162,331 196,742 228,358 262,526 294,165 323,141 353,866 381,481

98,471 186,156 294,464 396,261 500,503 605,238 703,612 812,900 910,487

1,016,431 1,140,296 1,254,895

26,026 51,831 78,206

103,221 131,130 157,157 184,947 214,322 240,126 266,124

- -

33,450 65,618 98,553

130,261 164,893 196,546 228,787 265,079 297,275 330,094

- -

102,908 200,462 311,818 408,347 516,532 620,674 721,186 831,338 929,577

1,044,107 - -

-1.7 -0.9 -3.2 -4.1 -2.8 -3.8 -3.1 -3.2 -3.7 -3.1

- -

7.6 6.6 1.0 0.4 1.6

-0.1 0.2 1.0 1.1 2.2

- -

4.5 7.7 5.9 3.1 3.2 2.6 2.5 2.3 2.1 2.7

- -




Product and month

By month Cumulative

2011 2012 Change

from 2011

2011 2012 Change

from 2011

(1,000 gallons) (1,000 gallons) (percent) (1,000 gallons) (1,000 gallons) (percent)

Ice cream, regular hard January ............................................................... February ............................................................. March ................................................................. April .................................................................... May .................................................................... June ................................................................... July ..................................................................... August ................................................................ September .......................................................... October ............................................................... November ........................................................... December ........................................................... Ice cream, lowfat total January ............................................................... February ............................................................. March ................................................................. April .................................................................... May .................................................................... June ................................................................... July ..................................................................... August ................................................................ September .......................................................... October ............................................................... November ........................................................... December ........................................................... Sherbet, hard January ............................................................... February ............................................................. March ................................................................. April .................................................................... May .................................................................... June ................................................................... July ..................................................................... August ................................................................ September .......................................................... October ............................................................... November ........................................................... December ...........................................................

58,484 62,269 74,970 71,310 72,213 75,974 72,796 78,724 69,043 60,282 53,052 50,564

28,317 31,606 39,437 40,051 41,914 45,226 43,397 43,169 37,306 33,808 28,086 27,231

3,140 3,006 4,437 3,696 4,285 4,750 3,788 4,366 3,217 2,578 2,615 2,383

55,169 63,128 72,476 69,531 74,708 77,916 73,850 74,453 57,483 63,962

- -

28,525 31,091 39,579 40,703 42,950 43,100 41,668 40,728 34,608 31,588

- -

3,059 3,130 4,075 3,810 3,855 4,055 3,935 3,667 3,211 3,055

- -

-5.7 1.4

-3.3 -2.5 3.5 2.6 1.4

-5.4 -16.7

6.1 - -

0.7 -1.6 0.4 1.6 2.5

-4.7 -4.0 -5.7 -7.2 -6.6

- -

-2.6 4.1

-8.2 3.1

-10.0 -14.6

3.9 -16.0 -0.2 18.5

- -

58,484

120,753 195,723 267,033 339,246 415,220 488,016 566,740 635,783 696,065 749,117 799,681

28,317 59,923 99,360

139,411 181,325 226,551 269,948 313,117 350,423 384,231 412,317 439,548

3,140 6,146

10,583 14,279 18,564 23,314 27,102 31,468 34,685 37,263 39,878 42,261

55,169

118,297 190,773 260,304 335,012 412,928 486,778 561,231 618,714 682,676

- -

28,525 59,616 99,195

139,898 182,848 225,948 267,616 308,344 342,952 374,540

- -

3,059 6,189

10,264 14,074 17,929 21,984 25,919 29,586 32,797 35,852

- -

-5.7 -2.0 -2.5 -2.5 -1.2 -0.6 -0.3 -1.0 -2.7 -1.9

- -

0.7 -0.5 -0.2 0.3 0.8

-0.3 -0.9 -1.5 -2.1 -2.5

- -

-2.6 0.7

-3.0 -1.4 -3.4 -5.7 -4.4 -6.0 -5.4 -3.8

- -




Product and month

By month Cumulative

2011 2012 Change

from 2011

2011 2012 Change

from 2011


Yogurt, plain and flavored January ............................................................... February ............................................................. March .................................................................. April .................................................................... May ..................................................................... June .................................................................... July ..................................................................... August ................................................................ September .......................................................... October ............................................................... November ........................................................... December ...........................................................

371,955 349,256 389,247 364,801 346,409 368,055 337,614 372,306 382,227 355,478 314,135 320,753

391,660 365,731 396,980 367,879 370,835 363,358 356,386 390,327 399,050 371,044

- -

5.3 4.7 2.0 0.8 7.1

-1.3 5.6 4.8 4.4 4.4

- -

371,955 721,211

1,110,458 1,475,259 1,821,668 2,189,723 2,527,337 2,899,643 3,281,870 3,637,348 3,951,483 4,272,236

391,660 757,391

1,154,371 1,522,250 1,893,085 2,256,443 2,612,829 3,003,156 3,402,206 3,773,250

- -

5.3 5.0 4.0 3.2 3.9 3.0 3.4 3.6 3.7 3.7

- -

(1,000 gallons) (1,000 gallons) (percent) (1,000 gallons) (1,000 gallons) (percent)

Frozen yogurt, total January ............................................................... February ............................................................. March .................................................................. April .................................................................... May ..................................................................... June .................................................................... July ..................................................................... August ................................................................ September .......................................................... October ............................................................... November ........................................................... December ...........................................................

3,767 4,433 5,905 5,338 5,637 5,799 5,525 6,600 5,327 4,411 3,885 4,049

3,482 5,292 5,717 5,625 5,900 6,509 5,876 6,613 4,945 4,595

- -

-7.6 19.4 -3.2 5.4 4.7

12.2 6.4 0.2

-7.2 4.2

- -

3,767 8,200

14,105 19,443 25,080 30,879 36,404 43,004 48,331 52,742 56,627 60,676

3,482 8,774

14,491 20,116 26,016 32,525 38,401 45,014 49,959 54,554

- -

-7.6 7.0 2.7 3.5 3.7 5.3 5.5 4.7 3.4 3.4

- -

- Represents zero. 1 Includes Cheddar, Colby, Monterey, and Jack. 2 Includes protein standardized and blends. 3 Excludes all modified dry whey products.


Total Cheese Production Excluding Cottage Cheese – States and United States: October 2011 and 2012

State October

2011 September

2012 October

2012

Change from

October 2011

September 2012


California ............................. Idaho ................................... Illinois .................................. Iowa ..................................... Minnesota ............................ New Mexico ......................... New York ............................. Ohio ..................................... Pennsylvania ....................... South Dakota ....................... Vermont ............................... Wisconsin ............................ Other States 1 ...................... United States ....................... Atlantic ................................ Central ................................. West ....................................

189,393 70,247 5,291

20,572 47,740 61,743 65,171 17,126 32,604 23,745 10,767

223,044

131,904

899,347

118,235 399,559 381,553

170,176 74,308 5,454

19,413 47,970 60,816 61,936 15,766 30,815 22,477 10,099

229,428

124,536

873,194

111,829 394,966 366,399

184,008 74,446 6,191

21,545 51,748 64,605 68,434 17,729 32,251 23,629 11,980

234,780

136,525

927,871

122,637 417,875 387,359

-2.8 6.0

17.0 4.7 8.4 4.6 5.0 3.5

-1.1 -0.5 11.3 5.3

3.5

3.2

3.7 4.6 1.5

8.1 0.2

13.5 11.0 7.9 6.2

10.5 12.5 4.7 5.1

18.6 2.3

9.6

6.3

9.7 5.8 5.7

1 States not shown when fewer than 3 plants reported or individual plant operations could be disclosed.


American Cheese Production – States and United States: October 2011 and 2012

State October

2011 September

2012 October

2012

Change from

October 2011

September 2012


California ............................. Idaho .................................... Iowa ..................................... Oregon ................................. Wisconsin ............................ Other States 1 ...................... United States ....................... Atlantic ................................. Central ................................. West ....................................

50,774 51,419 15,317 13,866 65,498

155,667

352,541

16,152

164,808 171,581

47,834 51,287 14,810 15,207 64,927

155,229

349,294

14,814

164,246 170,234

49,491 54,383 16,101 16,971 69,100

164,562

370,608

15,955

174,540 180,113

-2.5 5.8 5.1

22.4 5.5

5.7

5.1

-1.2 5.9 5.0

3.5 6.0 8.7

11.6 6.4

6.0

6.1

7.7 6.3 5.8


Cheddar Cheese Production – States and United States: October 2011 and 2012

State October

2011 September

2012 October

2012

Change from

October 2011

September 2012


California ............................. Idaho .................................... Iowa ..................................... Minnesota ............................ Wisconsin ............................ Other States 1 ...................... United States ....................... Atlantic ................................. Central ................................. West ....................................

24,481 38,876 10,265 35,901 45,787

92,258

247,568

15,127

116,396 116,045

24,022 38,152 9,310

38,492 43,611

90,149

243,736

14,609

115,665 113,462

25,898 41,228 10,409 42,155 46,900

96,406

262,996

15,801

123,618 123,577

5.8 6.1 1.4

17.4 2.4

4.5

6.2

4.5 6.2 6.5

7.8 8.1

11.8 9.5 7.5

6.9

7.9

8.2 6.9 8.9



Total Italian Cheese Production – States and United States: October 2011 and 2012

State October

2011 September

2012 October

2012

Change from

October 2011

September 2012


California ............................. New York ............................. Pennsylvania ....................... Wisconsin ............................ Other States 1 ...................... United States ....................... Atlantic ................................ Central ................................. West ....................................

117,927 29,894 19,419

115,205

101,911

384,356

57,194 156,608 170,554

106,448 31,379 17,788

117,931

96,466

370,012

56,360 153,123 160,529

117,289 32,556 17,888

117,934

102,079

387,746

58,873 157,706 171,167

-0.5 8.9

-7.9 2.4

0.2

0.9

2.9 0.7 0.4

10.2 3.8 0.6

-

5.8

4.8

4.5 3.0 6.6

- Represents zero. 1 States not shown when fewer than 3 plants reported or individual plant operations could be disclosed.

Mozzarella Cheese Production – States and United States: October 2011 and 2012

State October

2011 September

2012 October

2012

Change from

October 2011

September 2012


California ............................. New York ............................. Wisconsin ............................ Other States 1 ...................... United States ....................... Atlantic ................................ Central ................................. West ....................................

108,441 14,862 76,006

96,773

296,082

34,882

104,431 156,769

96,488 16,712 80,247

93,815

287,262

35,910

104,940 146,412

105,790 15,790 78,700

97,000

297,280

35,653

105,799 155,828

-2.4 6.2 3.5

0.2

0.4

2.2 1.3

-0.6

9.6 -5.5 -1.9

3.4

3.5

-0.7 0.8 6.4



Butter Production – States and United States: October 2011 and 2012

State October

2011 September

2012 October

2012

Change from

October 2011

September 2012


California ............................. Other States 1 ...................... United States ....................... Atlantic ................................. Central ................................. West ....................................

50,200

95,467

145,667

10,852 57,722 77,093

46,509

89,875

136,384

8,929 56,177 71,278

47,744

97,933

145,677

11,299 61,434 72,944

-4.9

2.6

-

4.1 6.4

-5.4

2.7

9.0

6.8

26.5 9.4 2.3

- Represents zero. 1 States not shown when fewer than 3 plants reported or individual plant operations could be disclosed.

Nonfat Dry Milk (Human) Production – States and United States: October 2011 and 2012

State October

2011 September

2012 October

2012

Change from

October 2011

September 2012


California ............................. Other States 1 ...................... United States ....................... Atlantic ................................. Central ................................. West ....................................

54,001

46,606

100,607

6,178 10,026 84,403

40,410

44,088

84,498

4,175 14,516 65,807

38,491

56,520

95,011

7,683 17,187 70,141

-28.7

21.3

-5.6

24.4 71.4

-16.9

-4.7

28.2

12.4

84.0 18.4 6.6



Dry Whey (Human) Production – States and United States: October 2011 and 2012

State October

2011 September

2012 October

2012

Change from

October 2011

September 2012


New York ............................. Wisconsin ............................ Other States 1 ...................... United States ....................... Atlantic ................................ Central ................................. West ....................................

10,378 22,164

38,775

71,317

18,832 35,935 16,550

11,811 21,890

36,324

70,025

19,353 34,827 15,845

12,217 22,809

37,290

72,316

20,082 35,796 16,438

17.7 2.9

-3.8

1.4

6.6

-0.4 -0.7

3.4 4.2

2.7

3.3

3.8 2.8 3.7


Ice Cream, Regular (Hard) Production – States and United States: October 2011 and 2012

State October

2011 September

2012 October

2012

Change from

October 2011

September 2012

(1,000 gallons) (1,000 gallons) (1,000 gallons) (percent) (percent)

California ...................................... Other States 1 ............................... United States ................................ Atlantic ......................................... Central .......................................... West .............................................

11,418

48,864

60,282

13,059 30,576 16,647

9,398

48,085

57,483

12,603 30,773 14,107

11,612

52,350

63,962

13,495 33,330 17,137

1.7

7.1

6.1

3.3 9.0 2.9

23.6

8.9

11.3

7.1 8.3

21.5 1 States not shown when fewer than 3 plants reported or individual plant operations could be disclosed.



Statistical Methodology Data Collection Period: Dairy products estimates are based upon survey data collected after the close of each month.

Production data are provided by the firms producing dairy products.

Sampling frames and sample size: In 2011, there were 1,278 manufacturers that produced one or more dairy products. In

states with small numbers of plants, reports are received from all plants each month. In states with large numbers of

plants, survey procedures are designed to obtain monthly reports from all large plants and from a sample of small plants.

In some states, the State Departments of Agriculture assist in collection of data, which eliminates duplicate reporting and

reduces respondent burden.

Modes of data collection: Data are collected by mail, personal and telephone interviews, facsimile, and via electronic

mail.

Terms and definitions: Firms complete the questionnaire using standard industry definitions and through the aid of

instructions and definitions provided on the questionnaire.

Reliability: Data for the Dairy Products report are collected by a Census of all known manufacturers of dairy products in

the United States. Firms producing large quantities of dairy products, along with a sample of smaller firms, are contacted

monthly to collect previous month production data. Those small firms not contacted monthly are contacted after the close

of the year to obtain previous year production. Production of products at small firms not contacted monthly are estimated

during the monthly survey based upon check data, and state and national trends. Small firms are defined as those that do

not make up a significant portion of the published total. Plants storing nonfat dry milk and dry whey are required under

Federal law as defined in Public Laws 106-532 and 107-171 to complete the Dairy Products report. Plants storing these

items are contacted monthly. Additionally, many state governments have mandated that dairy plants in their state

complete the Dairy Products report each month. Because the Dairy Products survey is a census, sampling error should not

affect the final estimates, however non-sampling errors are possible.

Estimating Procedures: In the Field Office (FO), data reported by firms are reviewed for reasonableness and consistency

by comparing with data reported in prior months and by data reported by other firms in the State. Each field office

summarizes data at the State level. State estimates are submitted to the Agricultural Statistics Board (ASB) along with

supporting comments where they are compared with surrounding states, their region, and national trends. During both FO

and ASB review, plants are sometimes contacted again for further verification of numbers reported. After ASB review,

FO data are summarized into a National level summary.

Revision Policy: Monthly estimates are subject to revision the month following the preliminary estimates. Annual

estimates are published in late April in the Dairy Products Yearly Summary report which includes any revisions made to

previous 2 years of estimates. Revisions are generally due to plant data that are received too late to be included in the

current report.

Information Contacts

Listed below are the commodity specialists in the Livestock Branch of the National Agricultural Statistics Service to

contact for additional information. E-mail inquiries may be sent to [email protected]

Dan Kerestes, Chief, Livestock Branch .......................................................................................................... (202) 720-3570

Scott Hollis, Head, Livestock Section ............................................................................................................. (202) 690-2424

Travis Averill – Cattle, Cattle on Feed ..................................................................................................... (202) 720-3040

Sherry Bertramsen – Livestock Slaughter ................................................................................................ (515) 284-4340

Doug Bounds – Hogs and Pigs ................................................................................................................. (202) 720-3106

Donnie Fike – Dairy Products .................................................................................................................. (202) 690-3236

Mike Miller – Milk Production and Milk Cows ....................................................................................... (202) 720-3278

Alissa Cowell-Mytar – Sheep and Goats .................................................................................................. (202) 720-4751

Access to NASS Reports For your convenience, you may access NASS reports and products the following ways:

All reports are available electronically, at no cost, on the NASS web site: http://www.nass.usda.gov

Both national and state specific reports are available via a free e-mail subscription. To set-up this free

subscription, visit http://www.nass.usda.gov and in the “Follow NASS” box under “Receive reports by Email,”

click on “National” or “State” to select the reports you would like to receive.

For more information on NASS surveys and reports, call the NASS Agricultural Statistics Hotline at (800) 727-9540,

7:30 a.m. to 4:00 p.m. ET, or e-mail: [email protected].

The United States Department of Agriculture (USDA) prohibits discrimination in all its programs and activities on the

basis of race, color, national origin, age, disability, and where applicable, sex, marital status, familial status, parental

status, religion, sexual orientation, political beliefs, genetic information, reprisal, or because all or a part of an individual's

income is derived from any public assistance program. (Not all prohibited bases apply to all programs.) Persons with

disabilities who require alternative means for communication of program information (Braille, large print, audiotape, etc.)

should contact USDA's TARGET Center at (202) 720-2600 (voice and TDD).

To file a complaint of discrimination, write to USDA, Assistant Secretary for Civil Rights, Office of the Assistant

Secretary for Civil Rights, 1400 Independence Avenue, S.W., Stop 9410, Washington, DC 20250-9410, or call toll-free at

(866) 632-9992 (English) or (800) 877-8339 (TDD) or (866) 377-8642 (English Federal-relay) or (800) 845-6136

(Spanish Federal-relay). USDA is an equal opportunity provider and employer.

http://www.nass.usda.gov/

http://www.nass.usda.gov/

WEEK OF OCTOBER 1 - 5, 2012 DAIRY MARKET NEWS VOLUME 79, REPORT 40

NATIONAL DAIRY MARKET NEWS AT A GLANCE

CME GROUP CASH MARKETS (10/05): BUTTER: Grade AA closed at $1.8600. The weekly average for Grade AA is $1.9325 (-.0075). CHEESE: Barrels closed at $2.0600 and 40# blocks at $2.1000. The weekly average for barrels is $2.0480 (+.0340) and blocks, $2.0940 (+.0375). BUTTER HIGHLIGHTS: The CME cash butter price continued its' firm trend this week until Friday’s active trading. The market turned sharply lower on Friday with 13 sales reported and the price down $0.0925 to $1.8600. Churning schedules across the country are mixed, depending on cream availability. For the most part, churning schedules are strong as butter producers prepare for upcoming holiday butter needs. In some regions of the country, butter producers are indicating that cream supplies for their needs are tightening as some Class II operations increase production of cream based holiday type items. Butter orders are strong for both retail and food service needs. Some retail buyers are indicating that promotions are being scheduled for varying periods prior to the upcoming Thanksgiving holiday and are placing orders to accommodate anticipated good clearances during those times. Food service and restaurant buyers are also placing good orders for upcoming needs. Reports indicate that restaurant traffic flow is good and will potentially get stronger as the yearend holidays near. Butter export assistance continues to be extended through the CWT program. Most recently, assistance was extended for the export of 91 MT (200,621 pounds) now through the first quarter 2013. CHEESE HIGHLIGHTS: Cheese prices across the U.S. continued to move higher this week. Monthly average prices for barrels for September at the CME Group are over 17 cents higher than prices a year ago. Blocks are also nearly 17 cents higher for the same period. Cheese production while above year ago levels, is slowing its pace. Tight milk supplies in the West have slowed cheese making in the region. Cheese makers would like to expand production, but sourcing the milk is becoming more of an issue. The Central region has remained active in cheese production, taking advantage of rebounding milk volumes after the hot summer. Cheese demand for retail accounts is good with food service accounts adding to their orders. Specialty cheese sales for holiday promotions are also good. Export demand has slowed as prices are higher than most international markets. Manufacturers state that domestic demand is sufficient for most current inventories. Trading at the CME Group closed the week with barrels at $2.0600 and blocks

closed Friday at $2.1000. FLUID MILK: Milk production is increasing, to varying degrees, across most regions of the nation. Eastern milk production is increasing with import loads needed in the Southeast and Florida to meet Class I demand. Manufacturing milk supplies in the Eastern region remain tight. Midwest milk haulers and handlers report that volumes of farm milk pickups are varied. California milk output is steady with processing plants running on lighter than projected schedules as supplies lag behind year ago levels. The Pacific Northwest, Utah and Idaho show milk production benefiting from the cool fall weather and increasing along the seasonal trend. Cream supplies are mostly in balance with need in the East with spot cream availability steady to higher in the Midwest. Western cream markets are trending mostly steady. DRY PRODUCTS: Nonfat dry milk prices are mixed with narrowing price ranges. Nonfat sales are moving well under contracts, but spot interest has slowed. Dry buttermilk prices are also mixed with narrowing price ranges in the Central and Eastern regions. Increased volumes of cream are moving to churns in the East. Western dry buttermilk prices are steady to slightly higher. Dry whey prices moved higher in the Eastern and Western regions as the market tone remains firm on good demand and tight supplies. Central whey prices held steady with supplies seemingly more available from multiple sources. Whey protein concentrate 34% prices are unchanged to higher with a steady to firm undertone. ORGANIC DAIRY MARKET NEWS (DMN): Organic milk half gallons have a weighted average advertised price of $3.31, 8 cents higher than two weeks ago, 16 cents lower than four weeks ago and 60 cents lower than 6 weeks ago. The national organic half gallon milk weighted average advertised price of $3.31, compared with the weighted average advertised price for non-organic half gallons, $2.27, results in an organic-conventional half-gallon milk advertised price spread of $1.04, up 22 cents from two weeks ago and even with four weeks ago. Total organic yogurt ad numbers are the second highest level of the year, higher than any of the last fourteen survey periods. The greatest percentage of organic yogurt ads are for 32 ounce organic yogurt, followed by 4-6 ounce organic yogurt. Ads for 4-6 ounce organic yogurt yielded a weighted average advertised price of 63 cents, down 19

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CME GROUP CASH TRADING

CHEESE: carload = 40,000 lbs., BUTTER: carlot = 40,000-43,000 lbs. *Sum of daily changes. # Weekly averages are simple averages of the daily closing prices for the calendar week. Computed by Dairy Market News for informational purposes. This data is available on the Internet at WWW.AMS.USDA.GOV/DAIRYMARKETNEWS.

ORGANIC DAIRY MARKET NEWS (PAGES 8 – 8B) JULY OVER ORDER CHARGES (PAGE 9)

SEPTEMBER MONTHLY AVERAGES AND SUMMARY (PAGES 10-12) AUGUST DAIRY PRODUCTS (PAGE 13)

AUGUST FMMO CLASS AND COMPONENT PRICES (PAGE 14) NATIONAL DAIRY RETAIL REPORT (attached)

ORGANIC LIVESTOCK PRODUCTS VALUE OF SALES 2011 (attached) DAIRY GRAPHS (G1-G2)

*****SPECIALS THIS ISSUE*****

COMMODITY MONDAY TUESDAY WEDNESDAY THURSDAY FRIDAY :: WEEKLY :: WEEKLY OCT 01 OCT 02 OCT 03 OCT 04 OCT 05 :: CHANGE* :: AVERAGE# CHEESE BARRELS $2.0350 $2.0350 $2.0500 $2.0600 $2.0600 :: :: $2.0480 (N.C.) (N.C.) (+.0150) (+.0100) (N.C.) :: (+.0250) :: (+.0340) 40# BLOCKS $2.0850 $2.0850 $2.1000 $2.1000 $2.1000 :: :: $2.0940 (+.0100) (N.C.) (+.0150) (N.C.) (N.C.) :: (+.0250) :: (+.0375) NONFAT DRY MILK EXTRA GRADE $1.6350 $1.6350 $1.6350 $1.6350 $1.6350 :: :: $1.6350 (N.C.) (N.C.) (N.C.) (N.C.) (N.C.) :: (N.C.) :: (N.C.) GRADE A $1.6600 $1.6600 $1.6600 $1.6600 $1.6600 :: :: $1.6600 (N.C.) (N.C.) (N.C.) (N.C.) (N.C.) :: (N.C.) :: (-.0140) BUTTER GRADE AA $1.9500 $1.9500 $1.9500 $1.9525 $1.8600 :: :: $1.9325 (N.C.) (N.C.) (N.C.) (+.0025) (-.0925) :: (-.0900) :: (-.0075)



Continued from Page 1 cents, from two weeks ago. The lowest price for organic butter, $3.79, is less than the highest price for conventional butter this period, $3.99. There is a $1.38 price spread between the weighted average advertised price of conventional butter, $2.61, and organic butter, $3.99. This week, results of USDA’s 2011 Certified Organic Production Survey were released. Organic milk was the top livestock commodity last year, accounting for $765 million in sales. The state results for total gross value of sales of milk from cows in states by descending rank, millions of dollars, include: California, $127.2; Texas, $120.2; Wisconsin, $82.3; Oregon, $69.1; New York, $60.2; Pennsylvania, $42.6; Vermont, $41.7; Minnesota, $33.2; Washington, $25.6; Idaho, $25.3; Ohio, $23.5; Maine, $11.3; Iowa, $11.1; Louisiana, $2.4; Kentucky, $2.3; Illinois, $1.8; Missouri, $1.8; and North Carolina, $1.5. Sales data was withheld from release in the remaining states because the number of producers was not sufficient to avoid disclosing data for individual operations. INTERNATIONAL UPDATE (DMN): At the October 2 g/DT session #77, average prices for all products traded and contracting periods were lower with the exception of buttermilk and whole milk powder. Average prices for all contracting periods and individual products were 9.5% lower to a positive 4.0%. The various products price averages (per MT) and percent changes from the previous average are: anhydrous milk fat, $2,982, -6.4%; buttermilk powder, $3,144, +4.0%; cheddar cheese, $3,300, -7.4%; lactose, $2,000, -6.3%; milk protein concentrate, $5,879, -1.5%; rennet casein, $7,361, -9.5%; skim milk powder, $3,309, -0.9%; and whole milk powder, $3,167, +2.8%. NATIONAL DAIRY RETAIL REPORT (DMN): Retail ad features continue to display dairy products with fall themed advertising centered around football and baking being common. Higher prices are noted this period across the cheese categories, most likely reflecting the higher wholesales cheese prices. There is a slowing down of ice cream features, yet it remains the top featured individual item. National butter prices this two-week period averaged $2.61 per 1-pound pack, down 2 cents from two weeks ago. Ad prices ranged from $1.99-3.99. Wholesale prices for Grade AA butter were $1.95 this week. Cheese prices were higher for 8 ounce blocks, at $2.21 +13 cent; 8 ounce shreds at $2.26 +19 cents; 1 pound block at $3.66, +12 cents; and 1 pound shred at $4.29, +62 cents. Cheese in 2 pound loaves at $4.75, were down 53 cents. Yogurt features remain active. Greek yogurt in 4-6 ounce containers averaged 99 cents nationally, down 1 cent from two weeks ago. Some features were as low as 49 cents for national brand and 69 cents for store brand in surveyed stores. Conventional yogurt prices averaged 50 cents, down 2 cents. Conventional milk’s national weighted average advertised price for half gallons this period, $2.27, is 14 cents below two weeks ago. Organic milk’s national weighted average advertised price for half gallons, $3.31, is up 8 cents, after declining 24 cents last period from four weeks ago. This results in an organic-conventional half-gallon milk advertised price spread of $1.04, up from $0.82 two weeks ago and matching the $1.04 four weeks ago. JULY OVER-ORDER CHARGES ON PRODUCER MILK BY CLASS OF UTILIZATION (FMMO): For July 2012, the all reporting areas combined average over-order charge on producer milk used in Class I was $2.06, up $0.01 from the June 2012 average. Eighty-nine percent of the producer milk used in Class I carried an over-order charge. On an individual order basis, Class I over-order charges ranged from $0.79 in the Pacific Northwest to $2.95 in the Florida Order. For producer milk used in Class II, the all reporting areas combined average over-order charge was $1.13, up $0.04 from the June 2012 average. Seventy-seven percent of the producer milk used in Class II carried an over-order charge. AUGUST 2012 DAIRY PRODUCTS HIGHLIGHTS (NASS): Butter production was 129.1 million pounds, 3.5% below August 2011 and 3.1% below July 2012. American type cheese production totaled 353.5 million pounds, 4.5% above August 2011, but 0.7% below July

2012. Total cheese output (excluding cottage cheese) was 884.4 million pounds, 2.6% above August 2011 and 0.5% above July 2012. Nonfat dry milk production, for human food, totaled 105.9 million pounds, 7.8% below August 2011 and 30.0% below July 2012. Dry whey production, for human food, was 85.1 million pounds, 19.0% above August 2011, but 1.5% below July 2012. Ice cream (hard) production totaled 74.4 million gallons, 5.5% below August 2011, but 0.7% above July 2012. CLASS AND COMPONENT PRICES (DAIRY PROGRAMS): The following are the September 2012 prices under the Federal Milk Order pricing system and the changes from the previous month: Class II $17.04 (+$1.40), Class III $19.00 (+$1.27), and Class IV $17.41 (+$1.65). Product price averages used in computing Class prices are: butter $1.8269, NDM $1.3768, cheese $1.8647, and dry whey $0.5846. The Class II butterfat price is $2.0117 and the Class III/IV butterfat price is $2.0047. Further information may be found at: www.ams.usda.gov/AMSv1.0/PriceFormulas2012

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DAIRY MARKET NEWS, OCTOBER 1 - 5, 2012 - 2 - VOLUME 79, REPORT 40

CME GROUP

NORTHEAST The CME Group butter price was unchanged Tuesday and closed at $1.9500. The butter price has leveled off over the last 5 trading sessions with only a 1 cent increase in light trading. Cream supplies have tightened in some areas as demand for cream has improved. Good cream volumes continue to come onto the market from yogurt and Class I bottling plants. Butter production has increased as most major butter makers are now receiving orders for the upcoming holiday season. Some butter makers are maximizing their production schedules and adding to inventories. Butter makers are less likely to opt for export opportunities, requiring short term deliveries, as they focus on covering their domestic holiday demand. Cooperatives Working Together (CWT) has accepted requests for export assistance to sell 200,621 pounds (91 metric tons) of butter. The products will be delivered from October through March 2013. During 2012, CWT has assisted member cooperatives in making export sales of butter totaling 58.3 million pounds and anhydrous milk fat totaling 123,459 pounds. Current bulk butter prices range from 4-8 cents over the market based on the CME Group with various time frames and averages used.

CENTRAL

The butter market tone remains firm with the CME cash butter price holding at $1.9500 at midweek. Churning schedules in the Central part of the country remain seasonally strong. Active churning schedules are absorbing good volumes of cream and end product is clearing to current orders and enhancing inventories for future needs. Butter producers are indicating that orders for the balance of the calendar year are developing well. Although 7 weeks away, retail buyers are preparing for the upcoming Thanksgiving holiday. It appears that retail feature activity is scheduled to occur during the pre-Thanksgiving period for many retail outlets. Buyers are placing good orders in anticipation of potential strong butter sales. Food service buyers are also placing good butter orders. Reports indicate that traffic flow through food service and restaurants is positive. As the upcoming holiday shopping and party season nears, food service

establishments are preparing for a hopefully favorable end of the calendar year. It will not be too long following the Thanksgiving holiday that yearend needs will be shipped. Early reports indicate that orders for this period are also developing very well. Exports out of the country continue with the assistance of the CWT program. The CWT program recently awarded bonuses for 91 MT (200,621 pounds) of butter for export now through the first quarter of 2013. Bulk butter prices range from flat to 3 cents over various pricing bases and averages per pound.

WEST Western butter prices are higher this week as weekly average prices from the CME Group continue to inch higher. Demand continues to be strong as buyers look to build their inventories ahead of price jumps. Retail sales are good into warehouse retailers and supermarkets. Food service accounts are also showing some improvement. Butter production is steady to weak as less cream is available to be channeled to the churns. Manufacturers continue to pull additional supplies from stored inventory to fill orders and manage supplies. Export demand is lower without assistance from the CWT program. CWT assistance helped with sales of 91 metric tons this week. Prices for bulk butter range from 2 cents under to 4 1/2 cents under the market, based on the CME with various time frames and averages used. Advertised butter prices from the National Dairy Retail Report showed a weighted average price of $2.61 per pound compared to $2.63 two weeks ago. Butter advertising was mostly unchanged from two weeks ago. Western advertised prices ranged from $2.39-2.99 per pound. The weighted average for butter in the Northwest and the Southwest was $2.50. Wednesday’s close on the CME Group exchange for butter is unchanged from Tuesday at $1.9500. The price has remained steady so far this week with only one sale of butter reported on Wednesday. CME Group average price for September 2012 for butter is $1.8803 compared to $1.8724 for September 2011.

NATIONAL DAIRY PRODUCTS SALES REPORT U.S. AVERAGES AND TOTAL POUNDS

WEEK ENDING September 29, 2012

BUTTER CHEESE 40# BLOCKS

CHEESE BARRELS

38% MOISTURE DRY WHEY NDM

1.8791 3,619,759

1.8907 11,811,904

1.9051 9,486,129

0.6061 9,732,485

1.4395 9,894,621

Further data and revisions may be found on the internet at: http://www.ams.usda.gov/AMSv1.0/DairyProductMandatoryReporting

MONDAY, OCTOBER 1, 2012 CHEESE -- SALES: 7 CARS 40# BLOCKS: 6 @ $2.0900, 1 @ $2.0850; LAST BID UNFILLED: 1 CAR 40# BLOCKS @ $2.0850; LAST OFFER UNCOVERED: 1 CAR 40# BLOCKS @ $2.0875 NONFAT DRY MILK -- SALES: NONE; LAST BID UNFILLED: NONE; LAST OFFER UNCOVERED: NONE BUTTER -- SALES: NONE; LAST BID UNFILLED: NONE; LAST OFFER UNCOVERED: 1 CAR GRADE AA @ $1.9800 TUESDAY, OCTOBER 2, 2012 CHEESE -- SALES: 2 CARS 40# BLOCKS @ $2.0850; LAST BID UNFILLED: 2 CARS 40# BLOCKS @ $2.0850; LAST OFFER UNCOVERED: NONE NONFAT DRY MILK -- SALES: NONE; LAST BID UNFILLED: NONE; LAST OFFER UNCOVERED: NONE BUTTER -- SALES: NONE; LAST BID UNFILLED: NONE; LAST OFFER UNCOVERED: NONE WEDNESDAY, OCTOBER 3, 2012 CHEESE -- SALES: 1 CAR BARRELS @ $2.0500; 4 CARS 40# BLOCKS @ $2.1000; LAST BID UNFILLED: 4 CARS 40# BLOCKS @ $2.0950; LAST OFFER UNCOVERED: NONE NONFAT DRY MILK -- SALES: NONE; LAST BID UNFILLED: NONE; LAST OFFER UNCOVERED: NONE BUTTER -- SALES: 1 CAR GRADE AA @ $1.9500; LAST BID UNFILLED: NONE; LAST OFFER UNCOVERED: 1 CAR GRADE AA @ $1.9575 THURSDAY, OCTOBER 4, 2012 CHEESE -- SALES: 1 CAR BARRELS @ $2.0600; 4 CARS 40# BLOCKS @ $2.1000; LAST BID UNFILLED: NONE; LAST OFFER UNCOVERED: NONE NONFAT DRY MILK -- SALES: NONE; LAST BID UNFILLED: NONE; LAST OFFER UNCOVERED: NONE BUTTER -- SALES: NONE; LAST BID UNFILLED: 1 CAR GRADE AA @ $1.9525; LAST OFFER UNCOVERED: 2 CARS GRADE AA @ $1.9700 FRIDAY, OCTOBER 5, 2012 CHEESE -- SALES: NONE; LAST BID UNFILLED: NONE; LAST OFFER UNCOVERED: NONE NONFAT DRY MILK -- SALES: NONE; LAST BID UNFILLED: NONE; LAST OFFER UNCOVERED: 1 CAR GRADE A @ $1.6600 BUTTER -- SALES: 13 CARS GRADE AA: 9 @ $1.9525, 1 @ $1.9450, 1 @ $1.8700, 1 @ $1.8600, 1 @ $1.8525; LAST BID UNFILLED: 5 CARS GRADE AA @ $1.8600; LAST OFFER UNCOVERED: NONE

BUTTER MARKETS

DAIRY MARKET NEWS, OCTOBER 1 - 5, 2012 VOLUME 79, REPORT 40

CHEESE MARKETS

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NORTHEAST Cheese prices on the CME Group were unchanged Tuesday with barrels closing at $2.0350 and blocks closing at $2.0850. Trading activity has turned light for barrels with only 1 sale in the last 5 sessions, while blocks continued to be fairly active with 13 sales over the same period. Cheese production remains steady, but most cheese makers would like to expand production. Most production is filling current orders with limited production for aging programs, due to the tight milk supplies. Domestic demand for mozzarella remains active with good orders from pizza makers and restaurants. Most makers of cheddar cheese are comfortable with their current inventories. Export interest continues to prompt sales. Coopera-tives Working Together (CWT) has accepted requests for export assistance to sell 4.246 million pounds (1,926 metric tons) of Ched-dar cheese. The products will be delivered from October through March 2013. During 2012, CWT has assisted member coopera-tives in making export sales of Cheddar, Monterey Jack and Gouda cheese totaling 95.9 million pounds.

WHOLESALE SELLING PRICES: DELIVERED, DOLLARS PER POUND (1000 - 5000 POUNDS MIXED LOTS)

Cheddar 40# Block : 2.4600-2.7450 Process 5# Sliced : 2.2300-2.3500 Muenster : 2.4800-2.8400 Grade A Swiss Cuts 10 - 14# : 3.3650-3.6875

MIDWEST Milk supplies in the Midwest are tight enough to lead many cheese plants to a situation of paying a class premium for milk. This is true even with some plants noting that “off the farm milk is at pre-July levels”, up from what had been expected. Reports from the field suggest that in the Midwest, with more ability for producers to grow forages than some other regions, some producers who are worried about the unresolved Farm Bill and potential for supply controls, are working to maintain or even increase production to get their base up, should a supply control system become law. The cur-rent price of cheese has resulted in some plants experiencing lower export sales. This is attributed to the price of cheese in the U.S. relative to cheese produced in other countries. Lower export sales have led some plants to reduce production commensurately, and attribute the reduced production schedules to the greater difficulty of finalizing export sales at current prices. Domestic cheese sales find Mozzarella moving well but cheddar sales being more “spotty”. By this Wednesday, Blocks were up for the week to $2.1000 and Barrels to $2.0500, each above the high of last week, which declined later last week before prices moved up this week. Cheese retail advertising volume reported in the National Dairy Retail Report has increased 57.8% from two weeks ago, following a 23.0% increase during the last cycle from four weeks ago. The largest number of cheese category ads during the current survey period, 36.3% of total cheese ads, are for 8 ounce shredded cheese, but down from 48.1% the last period. The next highest at 31.5%, is 8 ounce block, followed by 1 pound shredded, 17.5%; 1 pound block, 14.4%; and 2 pound block, 0.3%. One pound block and 1 pound shredded switched relative positions this period from the last period. The weighted average advertised price of 8 ounce shredded increased 9.2% to $2.26; 8 ounce blocks increased 6.3% to $2.21; 1 pound shredded increased 16.9%, to $4.29; 1 pound blocks

increased 3.4% to $3.66; but 2 pound blocks decreased 10.0% to $4.75. Cooperatives Working Together (CWT) has accepted re-quests for export assistance to sell 4.246 million pounds (1,926 metric tons) of Cheddar cheese. The product will be delivered Oc-tober 2012 through March 2013. During 2012, CWT has assisted member cooperatives in making export sales of Cheddar, Monterey Jack and Gouda cheese totaling 95.9 million pounds.

WISCONSIN WHOLESALE SELLING PRICES: DELIVERED, DOLLARS PER POUND (1000 - 5000 POUNDS MIXED LOTS)

Process American 5# Loaf : 2.2025-2.9075 Brick And/Or Muenster 5# : 2.4475-3.0075 Cheddar 40# Block : 2.4475-3.4325 Monterey Jack 10# : 2.4175-3.4325 Blue 5# : 2.7125-3.6975 Mozzarella 5 - 6# (Low Moisture, Part Skim) : 2.2925-3.5325 Grade A Swiss Cuts 6 - 9# : 2.8850-3.0025

WEST Western wholesale cheese prices moved higher this week. Demand is outlasting offered supplies. Cheese production in the West is lagging behind year ago levels due to tighter milk supplies. Buyers are looking to increase orders to fill their expected holiday needs. Retail and food service demand is good with processors finding tighter barrel supplies. Export demand is lower in the face of the higher prices, but manufacturers are satisfied with filling more do-mestic demand. Advertised cheese prices as reported in the Nation-al Dairy Retail Report showed prices are mostly higher in all cate-gories except 2 pound blocks. Featuring of cheese in the weekly flyers was higher from two weeks ago. The most heavily adver-tised category of 8 oz. shred cheese was 19 cents higher than two weeks ago at $2.26 per package. Cheese prices at the CME Group continued their climb this week. Barrel trading at the CME Group on Wednesday closed up $.0150 at $2.0500. Blocks are up $.0150 at $2.1000. Trading on blocks remains active with 13 loads sold so far this week. Barrel trading has been light with only one load of barrels sold by Wednesday. The CME Group monthly average price for September 2012 for barrels is $1.8780 compared to Sep-tember 2011 at $1.7010. Blocks averaged $1.9245 for September 2012 compared to $1.7561 for last year.


Process 5# Loaf : 2.1350-2.3925 Cheddar 40# Block : 2.1850-2.5375 Cheddar 10# Cuts : 2.3650-2.5850 Monterey Jack 10# : 2.3750-2.5350 Grade A Swiss Cuts 6 - 9# : 2.9425-3.3725

CONTINUED ON PAGE 3A


CHEESE MARKETS

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CONTINUED FROM PAGE 3

FOREIGN

The CME Group weekly average block price moved higher, in-creasing domestic wholesale cheese prices by $0.1100. Domestic Swiss and imported cheese prices were unchanged. Imported cheese wholesale orders have increased as customers are building inventories for the upcoming holiday season. Importers have noted that foreign cheese prices have firmed in recent weeks, due to the strength in the Euro as compared with the US dollar. According to FAS, October 15, is the last transmission date for all import appli-cations for calendar year 2013 licenses.

WHOLESALE SELLING PRICES: FOB DISTRIBUTORS DOCK DOLLARS PER POUND (1000 - 5000 POUNDS, MIXED LOTS)

: NEW YORK VARIETY : IMPORTED : DOMESTIC : : Blue : 2.6400-5.2200 : 2.6000-4.0875* Gorgonzola : 3.6900-6.1900 : 3.1025-3.5575* Parmesan (Italy) : -0- : 3.9900-6.0800* Provolone (Italy) : 3.4400-5.5800 : 2.6425-2.8000* Romano (Cows Milk) : -0- : 3.7900-5.9400* Sardo Romano (Argentine) : 2.8500-3.9800 : -0- Reggianito (Argentine) : 3.2900-4.2900 : -0- Jarlsberg-(Brand) : 2.9500-5.2900 : -0- Swiss Cuts Switzerland : -0- : 3.4575-3.7800 Swiss Cuts Finnish : 2.5900-2.8500 : -0- * = Price change.

WEEKLY COLD STORAGE HOLDINGS - SELECTED STORAGE CENTERS

IN THOUSAND POUNDS - INCLUDING GOVERNMENT STOCKS BUTTER : CHEESE : 10/01/12 10,968 : 119,894 10/01/12 10,968 : 119,894 CHANGE 0 : 0 % CHANGE 0 : 0


FLUID MILK AND CREAM

EAST SPOT SHIPMENTS OF GRADE A MILK INTO OR OUT OF FLORIDA & SOUTHEASTERN STATES

Milk production is beginning to increase in the Northeast and Mid-Atlantic regions as plant managers are reporting an increase in load weights and number of deliveries. Class I demand remains strong and continues to limit manufacturing milk supplies. Pasture regrowth has slowed in the Northeast and supplemental feeding has begun. Numerous producers remain concerned about possible hay shortages and/or additional dairy herd culling. Harvest activities remain ahead of last year’s pace with crops in mostly fair to good condition. Milk production in Florida is beginning to show some marginal increases, but remains below last year’s levels. Class I demand remains strong, prompting 98 spot loads to be imported this week. Pasture conditions are beginning to decline in some areas due to shorter days and cooler nights. Producers have changed their feed ration formulas to account for the higher feed costs. Some contacts have indicated they feel this year’s flush will be lower, due to hot weather; market prices and feeding changes have or are affecting milk production. Milk production continues to increase in the Southeast region. Class I demand has marginally declined, lowering the number of import loads needed to 25. Manufacturing milk supplies are being kept at their contract minimums. Load rejections were significantly lower this week. Yogurt and Class I bottling plants continue to supply the market with good volumes of cream. Cream supplies have tightened in some areas as demand for cream from sour cream, cream cheese and butter manufacturers has increased. Prices for spot sales and contracts are nearly the same, an indication that overall cream supplies are in balance with need. Multiples narrowed this week with the range being 128-133. Condensed skim milk supplies were a little more available than last week due to marginal increases in milk production and also due to milk pushbacks from a major yogurt plant, because of maintenance projects. Most current supplies are moving through contracts with most contract volumes at minimum levels. Limited spot market sales of condensed skim are requiring premiums to complete the sale. Most powder plant operators are not inclined to sell condensed skim, because of their concern to meet their future nonfat dry milk commitments.

FLUID CREAM AND CONDENSED SKIM PRICES IN TANKLOT QUANTITIES SPOT PRICES OF CLASS II CREAM, DOLLARS PER LB. BUTTERFAT: F.O.B. producing plants: Northeast - 2.4832-2.5802 F.O.B. producing plants: Upper Midwest - 2.4056-2.6190

PRICES OF CONDENSED SKIM, DOLLARS PER LB. SOLIDS, F.O.B. PRODUCING PLANTS: Northeast - Class II - includes monthly formula prices - 1.41 - 1.52 Northeast - Class III - spot prices - 1.44 - 1.49

MIDWEST

Milk haulers and handlers report the volumes of farm milk pickups are mixed. A few haulers report declines as the milk production season advances, while haulers in other locations report farm milk volumes are on the rise. Component trends are correspondingly mixed. Depending on location, a few manufacturing facilities report

they are currently running at full capacity. Other operators indicate that lighter demand from the fluid sector allowed them to retain more of their intake volumes and increase Class III production. Spot milk load availability in the regions is tight in some areas. Many processors are holding onto milk loads and not offering anything to the spot market. Others report that with some regional plants taken off line for repairs and/or maintenance, multiple spot load sales were arranged. Completed spot milk load sale prices vary within the Central region and range from $1.50 - $2.75 over market for the majority of sales. Spot cream availability is steady to higher. While the manufacture of frozen novelties is seasonally slowing, various ice cream retailers, soft serve and custard outlets are offering buy one get one of seasonal flavors, and drawing more actively from ice cream and mix suppliers. Dairy producers in the North Central region are completing corn/silage and soybean harvesting. The final harvest tallies on these crops and other feedstuffs will then allow operators to determine sustainable herd sizes.

WEST CALIFORNIA milk output is mostly steady. There are reports of slight intake declines in areas of hot weather over the past week. In general, weather conditions are seasonal. Feed prices remain high with alfalfa prices steady and corn prices lower from recent highs. Higher milk prices are welcomed, yet the underlying sentiment is unsettled because of high production costs. Processing plants are running on lighter than projected schedules. With milk supplies lagging year ago levels, challenges remain for processors filling milk supply contracts to others. Finding the appropriate balance is creating tightness in some segments and few avenues to find additional milk supplies in the state. The September 4a price (butter/powder) in CALIFORNIA is $16.62, up $1.22 from August but $2.67 lower than last year. This compares to the Federal Order Class IV price for September at $17.41. The September 4b price (cheese) is $17.50, $0.93 higher than August and $1.17 more than last year. This compares to the Federal Order Class III price for September at $19.00. ARIZONA milk production trends are building higher on a week-to-week basis. Temperatures are reaching daytime highs of around 100 degrees, but cooling conditions into the 60's at nighttime are allowing for better cow comfort conditions. While conditions are less stressful with daytime hours declining as the fall season moves along. Milk is being handled well within the state and there are calls for milk and components for those choosing to sell. Class I utilization is higher and there is a stronger demand for Class I milk from bottlers. Anecdotal reports and newspaper ads are showing increased featuring of fluid milk in the retail outlets. Western CREAM markets are trending mostly steady with pricing points holding fairly flat along with overages and multiples. Demand is unsettled for California cream as higher prices were registered for Class 2/3 basing in October. Higher class product production is trending higher and is expected to build to accommodate seasonal increases in ordering from retail and food service accounts. Retail ads are featuring more dips, sour cream, cream cheese, and similar, that are creating more demand and utilizing more cream. Butter production is seasonally active and cream is being utilized in that sector. Buying interest is good to seasonal buying accounts. The CME Grade AA butter price closed at $1.9500 on Wednesday, October 3,


THIS WEEK LAST WEEK

IN OUT IN OUT IN OUT

98

0 94* 0 115 0

25 0 65 0 0 0

LAST YEAR

FLORIDA *Revised

SOUTHEAST STATES

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CONTINUED FROM PAGE 4 up 1 cent from a week ago. Cream multiples are unchanged and range 120 to 136, and vary depending on basing points and averages. Milk production in the PACIFIC NORTHWEST is following expected seasonal patterns. Cooler fall weather has helped to bring production levels up some, but the overall trend is steady. Milk handlers in the region are able to move milk to manufacturing plants with an eye towards best returns. Plant maintenance projects are being utilized to fill downtime for those plants not at capacity. Fall harvest activities are ongoing as dairy farmers look to inventory feed supplies for the winter. Increased milk prices have brightened the profitability picture, but higher feed costs are still the 500 lb. gorilla in the room. UTAH and IDAHO milk production is also benefiting from cooler weather across the high desert region. Milk supplies are along predicted levels with production facilities in the region able to process available supplies with few difficulties. Dairy farmers are busy with fall harvesting and assessing plans for the upcoming winter. Cull cow prices are well above 5 year average prices and replacement prices are mostly steady. Feed costs are the main reason for dairies to remain hesitant about expanding herds.

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NONFAT DRY MILK, BUTTERMILK & WHOLE MILK

Prices represent carlot/trucklot quantities for domestic and export sales packaged in 25 kg. or 50 lb. bags, or totes, spray process, dollars per pound.

NONFAT DRY MILK - CENTRAL AND EAST CENTRAL: Central nonfat dry milk prices are both higher and lower on a mixed market. Some market participants indicate buyers/end users are pushing back on higher priced NDM spot loads. Some end users and buyers who have purchased spot load NDM steadily through the last several weeks are opting to decrease spot load purchases because they expect NDM prices will decrease in early to mid-November. These circumstances point toward adequate to ample supplies of NDM in the hands of buyers and the ability to obtain NDM from multiple sources. Conversely, a few end users with lower than anticipated monthly needs indicate they are selling back multiple undelivered low heat NDM contract loads to manufacturers in the Central and East regions. This is providing some leeway on contract fulfillment and/or spot market participation for manufacturers with limited inventories. Prices on those sold back loads incorporated a higher premium to the market than the original contract price. Resale NDM prices are reportedly steady to lower for the week. The September 2012 Dairy Market News average of the mostly price series for Central and East nonfat dry milk, low/medium heat, was $1.5339 compared to $1.4020 one month ago and $1.5386 in September 2011. The September 2012 Dairy Market News average of the range price series for Central and East nonfat dry milk, high heat, was $1.6818 compared to $1.4655 one month ago and $1.6450 in September 2011. According to NASS, NDM production in the Central region totaled 19.8 million pounds during August 2012, 36.1% less than one month ago, but 85.9% more than one year ago. Cumulative nonfat dry milk production for 2012 in the Central region totals 178.3 million pounds, 62.5% higher compared to 2011 production during the same time span. DAIRY PRODUCTS: NASS’s Dairy Products report shows production of human food NONFAT DRY MILK during August 2012 totaled 105.9 million pounds, down 30.0% from July 2012 production and 7.8% lower than August 2011. Cumulative nonfat dry milk production for 2012 totals 1,327.7 million pounds, 27.7% higher than 2011 production during the same time span. Month ending stocks, at 105.6 million pounds, are 18.2% less than a month ago and 37.1% lower than one year ago. July 2012 production of SKIM MILK POWDERS, which includes protein standardized and blended product, totaled 40.3 million pounds, 8.3% more than one month ago and 4.3% more than one year ago. Cumulative 2012 skim milk powder production totals 203.6 million pounds, a 30.4% decrease in production compared to production during the same time span in 2011. EAST: Nonfat dry milk price ranges narrowed this week as transactions based on price indices moved the low end of the ranges higher, while spot sales lowered the upper end of the ranges. Milk production is slowly building in the East. Strong Class I pulls continue to be a major factor in limiting the manufacturing milk supply. Some plants are continuing to focus on high heat and specialty drying. Most supplies are moving through contracts with limited spot market activity. The limited nonfat dry milk production is being offset by decreased demand and increased resale activity. Demand has declined as a number of end users have secured adequate supplies. Resale activity has increased as some brokers are selling off some of their inventories. Some plant managers continue to be concerned about their ability to meet their future commitments. The market undertone is steady to weak. DAIRY PRODUCTS: The latest NASS Dairy Products report indicates nonfat dry milk production for August in the Atlantic

region totaled 7.4 million pounds, 7.1% of the nation’s total. The Atlantic region production was 3.3% more than one year ago, 49.0% less than the previous month. F.O.B. CENTRAL/EAST: Includes EXTRA GRADE and GRADE A LOW/MEDIUM HEAT: 1.4625 - 1.6900 MOSTLY: 1.4650 - 1.6000 HIGH HEAT: 1.5125 - 1.7900

NONFAT DRY MILK - WEST

Western low/medium heat nonfat dry milk prices are mixed. The market tone is steady overall. Prices are moving higher off the bottom of the range to reflect increases in index based transactions. At the top ends of the range and mostly series, prices are down and reflect buyer pushback at the high prices. In addition, buyers are able to fill some needs in the resale channels at lower prices than some direct offerings. Nonfat sales are moving well under contract. Spot interest has slowed. Export demand is fair to good to regular accounts. New business is uneven, with good interest noted from Mexico. Drying levels for NDM in the region are at low to moderate levels and indicative of the milk supplies and utilization of the milk among processors. Stocks are generally light and committed with limited extra available. High heat prices are mixed. Top of the range pricing moved lower with sales not replicated this week. Buyers are reluctant to pay the top dollar to secure needs and are more content. Production runs remain light and there is limited spot trading. Producer holdings are light. DAIRY PRODUCTS: U.S. NDM production in August 2012 totaled 105.9 million pounds, 7.8% less than last year. YTD cumulative NDM output through August totals 1.33 billion pounds, up 27.7% or 288.3 million pounds from a year earlier. NDM production in the West region in August totaled 78.7 million pounds, down 18.9% from last year. The West produced 74% of the U.S. total in August. U.S. manufacturers' stocks of NDM at the end of august were 105.6 million pounds, 37.1% lower than a year earlier and 18.2% less than July 2012. U.S. skim milk powder (SMP) production in August totaled 40.3 million pounds, 4.3% more than last year and 8.3% more than July. YTD cumulative SMP output through August totals 203.6 million pounds, down 30.4% or 88.7 million pounds from a year earlier. F.O.B. WEST: Includes EXTRA GRADE and GRADE A LOW/MEDIUM HEAT: 1.3800 - 1.6500 MOSTLY: 1.4200 - 1.6000 HIGH HEAT: 1.4200 - 1.7000

DRY BUTTERMILK - CENTRAL AND EAST CENTRAL: Central dry buttermilk prices shifted higher on the bottom of the range and lower on the top of the range on a mixed market. Buyer interest is steady for contract loads of dry buttermilk, but sellers indicate spot load interest decreased in step with the recent increase in prices. Churning is active in many Central locations. Condensed buttermilk sales increased this week into several operations, decreasing solids moving through the dryers, but dry buttermilk inventories are rebuilding gradually at several Central facilities. The September 2012 Dairy Market News average of the

CONTINUED ON PAGE5A

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-5A-

CONTINUED FROM PAGE5

range price series for Central and East dry buttermilk was $1.4032 compared to $1.2818 one month ago and $1.3905 in September 2011. DAIRY PRODUCTS: NASS Dairy Products reports production of dry buttermilk during August 2012 totaled 6.8 million pounds, 2.9% less than one month ago but 3.6% more than production one year ago. Cumulative 2012 dry buttermilk production totals 73.6 million pounds, 11.0% more than during the same time span of 2011. Month ending stocks of dry buttermilk, at 7.8 million pounds, are 31.0% lower than one month ago and 52.3% lower than one year ago. EAST: The price range for dry buttermilk narrowed this week with transactions based on price indices moving the low end of the range higher, while spot sales lowered the high end of the range. Production of butter and dry buttermilk is increasing as butter makers are beginning to receive retail fall/holiday orders. Dry buttermilk supplies remain fairly tight and held in firm hands. Overall demand remains good, but in transition as ice cream manufacturing is slowing with baking manufacturers stepping up production. Spot sales and resale activity continues to be light. Some of the dry buttermilk price modulation is due to a weakening in the nonfat dry milk market, giving the dry buttermilk market a weak undertone. F.O.B. CENTRAL/EAST: 1.4500 - 1.6300

DRY BUTTERMILK - WEST

Western dry buttermilk prices are mostly steady to slightly higher from a week ago. Some momentum uptrends are noted associated with index based transactions. The market tone is steady to firm and only lightly tested. Trading activity is centered on contracted volumes and indexed pricing. There is a limited test on the spot market and few offerings on the resale market. Production is light to moderate. Stock levels are light. DAIRY PRODUCTS: Buttermilk powder production in August 2012 for the U.S. totals 6.8 million pounds, up 3.6% from last year. Buttermilk stocks at the end of August were 7.8 million pounds, 52.3% lower than a year ago and 31.0% less than a month earlier. F.O.B. WEST: 1.3200 - 1.6000 MOSTLY: 1.4000 - 1.4800

DRY WHOLE MILK - NATIONAL Dry whole milk prices are unchanged on a steady market for the week. Production is intermittent from plant to plant. The September 2012 Dairy Market News average of the range price series for dry whole milk was $1.6324 compared to $1.5450 one month ago and $1.9814 in September4 2011. DAIRY PRODUCTS: NASS’s Dairy Products report shows dry whole milk production during August 2012 totaled 5.6 million pounds, up 12.3% from July 2012 but 23.3% lower than August 2011. Cumulative 2012 production totals 40.9 million pounds, a

16.9% decrease from 2011 production during the same time period. Month ending stocks, at 6.9 million pounds, are 2.1% lower than one month ago and 11.3% lower than one year ago. F.O.B. PRODUCING PLANT: 1.6000 - 1.7300

CALIFORNIA MANUFACTURING PLANTS - NDM WEEK ENDING PRICE TOTAL SALES SALES TO CCC September 28 $1.3664 4,932,619 0 September 21 $1.3204 8,161,824 0 Prices are weighted averages for Extra Grade and Grade A Nonfat Dry Milk, f.o.b. California manufacturing plants. Prices for both periods were influenced by effects of long-term contract sales. Total sales (pounds) include sales to CCC. Compiled by Dairy Marketing Branch, California Department of Food and Agriculture.


WHEY, WPC 34%, LACTOSE & CASEIN Prices represent carlot/trucklot quantities for domestic and export sales packaged in 25 kg. or 50 lb. bags, or totes, spray process, dollars per pound.

DRY WHEY - CENTRAL

Domestic interest in Central dry whey is steady to lower. A few resale market representatives indicate pushback by their buyers for dry whey loads began recently and continues this week. Sellers indicate buyers are less willing to unquestioningly support the strong price trend since dry whey seems to be available from multiple sources on an as needed basis. Interest from buyers serving Asian markets is steady. A few manufacturers note that current sale prices to export markets are in step with Central dry whey indices. Some additional interest in Central dry whey for those markets is occurring from time to time as current prices reportedly offer a discount to Western dry whey pricing. Contracting for 2013 is starting, with conversations centering around quantities before pricing methods. The September 2012 Dairy Market News average of the mostly price series for Central dry whey was $0.5755 compared to $0.5218 one month ago and $0.5794 September 2011. Human food dry whey production during August 2012 in the Central region totaled 36.4 million pounds. This dry whey production is 5.4% lower than one month ago and 1.1% lower than one year ago. Cumulative 2012 human food dry whey production in the Central region totals 311.2 million pounds, a 0.5% decrease from 2011 production during the same time span. ANIMAL FEED dry whey prices notched another increase. The September 2012 Dairy Market News average of the range price series for ANIMAL FEED Central milk replacer dry whey was $0.4876 compared to $0.4479 one month ago and $0.5006 September 2011. DAIRY PRODUCTS: NASS’s Dairy Products report shows production of HUMAN FOOD dry whey during August 2012 totaled 85.1 million pounds, 1.5% less than July 2012 but 19.0% more than production 1 year ago. August ending stocks of HUMAN FOOD dry whey totaled 35.1 million pounds, 21.1% less than 1 month ago and 11.5% lower than August 2011. Production of ANIMAL FEED dry whey during August 2012 totaled 4.1 million pounds, 5.2% more than one month ago but 50.8% less than the production of August 2011. ANIMAL FEED dry whey month ending stocks totaled 2.4 million pounds, 21.2% less than one month ago and 47.7% less than the stocks of one year ago. F.O.B. CENTRAL: .5550 - .6250 MOSTLY: .5700 - .6000 F.O.B. CENTRAL: ANIMAL FEED MILK REPLACER: .4350 - .5850

DRY WHEY - NORTHEAST

Dry whey prices continued to move higher as transactions based on price indices increased both ends of the price range. Cheese and dry whey production continues at levels below most manufacturers’ desired levels, because of the tight manufacturing milk supply, brought about by the combination of good Class I demand and lower seasonal milk production. Current production is moving through contracts with little being added to inventories. Spot market and resale activity in the Eastern region is negligible. Buyers looking for additional loads have to look outside the region. Dry whey demand is good and is shifting as ice cream production slows and baking product manufacturing increases. Export interest has improved compared to recent weeks. The market undertone remains firm. The September 2012 Dairy Market News average of the price series for Northeast dry whey was $0.6070 compared to $0.5597 one month ago and $0.6005 in September 2011. DAIRY PRODUCTS: The latest NASS Dairy Products report shows production of dry whey for human consumption for the

nation in August, totaled 85.1 million lbs. The Atlantic region totaled 21.0 million pounds, or 24.7% of the nation’s total. The Atlantic area’s production is 0.1% more than July and 22.3% more than production one year ago. The national production total was 1.5% less than the previous month, but 19% more than for the same period last year. F.O.B. NORTHEAST: EXTRA GRADE AND GRADE A: .6250 - .6375

DRY WHEY - WEST

Western dry whey prices are higher this week. The market was higher on the low end of both the range and mostly series. The market tone is firm on good demand and tighter supplies. Dry whey production in the West is reduced from previous months due to increased production of concentrated whey protein products. Tight milk supplies in the West are also reducing available milk to cheese plants. The bulk of whey production is tied to contract needs with spot sales coming mostly from the resale market. According to the NASS Dairy Products report, edible U.S. whey production in August totals 85.1 million pounds, up 19.0% (+13.6 million pounds) from last year. The Western region produced 27.7 million pounds of whey in August, up 58.0% (+10.2 million pounds) from last year. The West produced 32.5% of the whey in the U.S. in August. Cumulative U.S. total dry whey production for the first seven months of the year is 708.3 million pounds, up 1.9% or 13.2 million pounds from the same period in 2011. Manufacturers' stocks at the end of August for edible whey are 35.1 million pounds, down 11.5% from last year. NONHYGROSCOPIC: .5800 - .6300 MOSTLY: .5900 - .6225

WHEY PROTEIN CONCENTRATE - CENTRAL AND WEST

Prices for whey protein concentrate 34% are unchanged to higher. The market tone is steady to firm. Sales of edible WPC 34% into the usual livestock feed operations declined in step with the increased availability of downgraded WPC 34% and NDM. Interest from WPC 34% buyers who channel product to human food end uses, though, is steady to higher. WPC 34% production is steady at some locations, lower at others as sales of condensed WPC 34% continue to various end uses. Flat to lower manufacturing milk supplies in some areas of the Central region have kept WPC 34% manufacturing below capacity. Repair projects have also kept a few WPC 34% facilities off line from time to time. The September 2012 Dairy Market News average of the mostly price series for whey protein concentrate 34% Central and West was $1.1862 compared to $1.1272 one month ago and $1.4900 in September 2011. DAIRY PRODUCTS: The NASS Dairy Products report shows production of HUMAN AND ANIMAL WPC (25.0-49.9% PROTEIN) during August 2012 totaled 19.4 million pounds, 9.9% more than one month ago but 2.6% lower than production of one year ago. Cumulative WPC 34% HUMAN AND ANIMAL WPC (25.0-49.9% PROTEIN) production for 2012 totals 162.9 million


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pounds, 2.8% more than 2011 production during the same time span. Manufacturers’ end-of-month stocks of HUMAN AND ANIMAL WPC (25.0 – 49.9% PROTEIN) totaled 32.8 million pounds, 5.4% less than July 2012 but 75.9% more than the stocks of August 2011. F.O.B. EXTRA GRADE 34% PROTEIN:1.2000 - 1.3425 MOSTLY:1.2100 - 1.2525

LACTOSE - CENTRAL AND WEST

As a new month and Q4 begins this week for many fixed price contract sales, both the lactose range and mostly price series shifted lower. Sellers indicate additional new contract pricing will emerge next week for those contracts carrying adjustments to various market indices. The general market tone is steady to slightly weaker as spot load availability from various manufacturers has improved over the last few weeks. The September 2012 Dairy Market News average of the mostly price series for Central and West lactose was $0.8250 compared to $0.8261 one month ago and $0.6086 in September 2011. DAIRY PRODUCTS: NASS’s Dairy Products report shows HUMAN and ANIMAL lactose production during August 2012 decreased 0.3% compared to July 2012 to 85.6 million pounds but increased 3.0% compared to August 2011 production. Cumulative 2012 lactose production totals 692.8 million pounds, 3.8% more than during the same time span in 2011. Month ending stocks, at 84.7 million pounds, are 5.3% less than one month ago but 25.3% higher than one year ago. Including spot sales and up to 3 month contracts. F.O.B. EDIBLE, NON PHARMACEUTICAL.6800 - .9000 MOSTLY: .7500 - .8200

CASEIN - NATIONAL

Casein markets and prices are mixed as the final quarter of 2012 begins. Some buyers are stating that fourth quarter contracts were put together earlier and some prices have trended lower. The 2012 European casein production season is now in the books and suppliers are generally comfortable with their supply/commitment balance. In most instances, stocks are sufficient for commitments with minimal uncommitted volumes available for spot interest, although some uncommitted volumes of casein appear to be available although prices are firm. The Oceania casein production season is underway at varying rates. Milk production in areas of New Zealand that logistically is not economical to ship distances for processing is clearing to casein output, while casein operations in other areas remain shuttered or are just getting underway. Early report remain optimistic about the Oceania milk production season, thus casein output is currently as projected. At the October 2 g/DT event, rennet casein prices eased 9.5% from the previous all contract average to $7,361 per MT or about $3.3400 per pound.

SPOT SALES AND UP TO 3 MONTH CONTRACTS. PRICES ARE F.O.B., U.S. WAREHOUSE FOR EDIBLE NONRESTRICTED AND VARY ACCORDING TO MESH SIZE AND QUALITY. RENNET: 3.7000 - 4.4000 ACID: 4.3500 - 4.7500

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DAIRY MARKET NEWS, OCTOBER 1 - 5, 2012 -7- VOLUME 79, REPORT 40

SUPPORT PURCHASE PRICES FOR DAIRY PRODUCTS EFFECTIVE NOVEMBER 1, 2009 BUTTER Bulk $1.05 per pound; CHEESE 40# Blocks $1.13 per pound; 500# Barrels $1.10; NONFAT DRY MILK $.80 per pound The CCC Purchase table will no longer be shown unless purchases occur. Last CCC purchase: October 2009. ________________________________________________________________________________________________________________________________________

U.S. Dairy Cow Slaughter (000 head) under Federal Inspection & Comparable Week 2011

WEEKLY 2012 2011 WEEKLY 2011 WEEK ENDING DAIRY COWS CUMULATIVE DAIRY COWS DAIRY COWS CUMULATIVE DAIRY COWS 09/15/2012 63.4 2,160.6 60.8 2,033.5 WEBSITE: http://www.ams.usda.gov/mnreports/sj_ls714.txt SOURCE: The slaughter data are gathered and tabulated in a cooperative effort by the Agricultural Marketing Service, The Food Safety and Inspection Service, and the National Agricultural Statistics Service, all of USDA.

CLASS III MILK PRICES (3.5% BF)

YEAR

JAN FEB

MAR

APR MAY JUN JUL AUG

SEP

OCT NOV DEC

2008

19.32

17.03

18.00

16.76 18.18 20.25 18.24 17.32

16.28

17.06 15.51 15.28

2009

10.78

9.31

10.44

10.78

9.84 9.97 9.97 11.20

12.11

12.82 14.08 14.98

2010

14.50

14.28

12.78

12.92 13.38 13.62 13.74 15.18

16.26

16.94 15.44 13.83

2011

13.48

17.00

19.40

16.87 16.52 19.11 21.39 21.67

19.07

18.03 19.07 18.77

CLASS IV MILK PRICES (3.5% BF)

YEAR

JAN

FEB

MAR

APR MAY JUN JUL AUG

SEP

OCT NOV DEC

2008

16.29

14.67

14.17

14.56 15.26 15.92 16.60 16.64

15.45

13.62 12.25 10.35

2009

9.59

9.45

9.64

9.82 10.14 10.22 10.15 10.38

11.15

11.86 13.25 15.01

2010

13.85

12.90

12.92

13.73 15.29 15.45 15.75 15.61

16.76

17.15 16.68 15.03

2011

16.42

18.40

19.41

19.78 20.29 21.05 20.33 20.14

19.53

18.41 17.87 16.87

FEDERAL MILK ORDER CLASS PRICES FOR 2012 (3.5%)

CLASS

JAN

FEB

MAR

APR MAY JUN JUL AUG

SEP

OCT NOV DEC I 1/

18.80

17.03

16.30

15.66 15.85 15.24 15.51 16.55

18.88

II

17.67

16.94

16.59

16.20

15.19 14.32 14.51 15.64

17.04

III

17.05

16.06

15.72

15.72 15.23 15.63 16.68 17.73

19.00

IV

16.56

15.92

15.35

14.80 13.55 13.24 14.45 15.76

17.41

1/ Specific order differentials to be added to this base price can be found by going to: www.ams.usda.gov/DairyMarketingStatistics; then select “Prices”; and then select “Principal Pricing Points.” _________

$10.00

$12.00

$14.00

$16.00

$18.00

$20.00

$22.00

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Class I 2010

2011

2012

$10.00

$12.00

$14.00

$16.00

$18.00

$20.00

$22.00


Class II 2010

2011

2012

$10.00

$12.00

$14.00

$16.00

$18.00

$20.00

$22.00


Class III 2010

2011

2012

$10.00

$12.00

$14.00

$16.00

$18.00

$20.00

$22.00


Class IV 2010

2011

2012


ORGANIC DAIRY MARKET NEWS

Information gathered September 24 - October 5, 2012

ORGANIC DAIRY FLUID OVERVIEW This week results of USDA’s 2011 Certified Organic Production Survey were released. Organic milk was the top livestock commodity last year, accounting for $765 million in sales. The state results for total gross value of sales of milk from cows in states by descending rank, millions of dollars, include: California, $127.2; Texas, $120.2; Wisconsin, $82.3; Oregon, $69.1; New York, $60.2; Pennsylvania, $42.6; Vermont, $41.7; Minnesota, $33.2; Washington, $25.6; Idaho, $25.3; Ohio, $23.5; Maine, $11.3; Iowa, $11.1; Louisiana, $2.4; Kentucky, $2.3; Illinois, $1.8; Missouri, $1.8; and North Carolina, $1.5. Sales data was withheld from release in the remaining states because the number of producers was not sufficient to avoid disclosing data for individual operations. There was also data released for the number of farms in each state reporting sales of organic milk from cows. Numbers of farms do not necessarily correlate with dollar value of milk sales because some states have larger average herd size than other states. For example, while Wisconsin ranks third among states in dollar value of organic milk sales, it ranks first in number of farms, with 397 of the 1,823 organic dairy farms nationwide reporting sales of organic milk. The number of organic dairy farms reported in other states includes Pennsylvania, 236; New York, 235; Vermont, 180; Minnesota, 114; Indiana, 81; Iowa, 78; California, 72; Maine, 50; Michigan, 46; Oregon, 43; Washington, 35; Idaho, 17; Kentucky, 13; Illinois, 12; New Hampshire, 12; Missouri, 9; Virginia, 9; Texas, 8; Massachusetts, 5; North Carolina, 5; Colorado, 4; Maryland, 4; South Dakota, 4; Louisiana, 3; Nebraska, 3; New Mexico, 3; Tennessee, 2; Utah, 2; Alabama, 1; Arizona, 1; Arkansas, 1; Mississippi, 1; Montana, 1; and Wyoming, 1. The data above comes from Table 11, page 160 of 2011 Certified Organic Production Survey, NASS, USDA, which is attached to this week’s Dairy market News Weekly Report..

ORGANIC DAIRY RETAIL OVERVIEW NATIONALLY ADVERTISED PRICE COMPARISON Organic Dairy Overview. The beginning of fall brings the end of a late summer string of record advertising volume for organic milk, butter or total organic ads spanning a number of reporting periods. Nevertheless, primarily due to relatively high organic yogurt ad volume, even with relatively low organic milk ad volume, total organic ad numbers remain in the upper tier of 2012 periods. Organic milk ad volume is lower than for any of the last five two week reporting periods. Even with organic milk ad numbers declining relative to recent periods, and organic yogurt ads remaining relatively high, organic milk ads comprise 47% of all organic dairy ads, continuing the role of organic milk as the traditionally leading organic dairy product in retail emphasis. Organic yogurt ads constitute 29% of organic dairy ads, organic butter 23% and organic cream cheese 1%. Advertising information presented is compiled from nearly 16,000 surveyed newspaper supermarket ads for the period September 22, 2012, to October 5, 2012, identifying weekly “specials” and containing organic dairy content. Surveyed ads reflect advertised “specials” and not the range of non-advertised supermarket cooler prices. Regional Organic Dairy Ad Trends – Current Period. Four regions are nearly even with each other when comparing the six regions for regional percentages of total national organic dairy ads.

The South Central region has 22.2% of organic dairy ads, 22.0% in the Southwest, 21.7% in the Midwest and 20.6% in the Southeast. Trailing these four regions, the Northwest had 7.2% of ads and the Northeast 6.3%.

Organic Dairy Ads Regionally As A

Percentage of Surveyed Organic Dairy Ads Week 40, 2012

Organic Milk. Organic milk ads as a percentage of total ads have declined for three consecutive reporting periods, even though they still lead all categories. The highest percentage of organic milk ads appear in the Southwest, 23.4%. Other regions include the South Central, 22.9%; Southeast, 17.9%; Midwest, 17.5%; Northeast, 11.9%; and Northwest, 6.5%.

Organic Milk Half Gallons. The national weighted average advertised price of organic milk half gallons, $3.31, is 8 cents higher than two weeks ago, 16 cents lower than four weeks ago and 60 cents lower than 6 weeks ago. The price range is $2.49 to $4.99, is unchanged at the bottom of the price range but $1.00 higher at the top. This period, the concentration of advertised organic half gallon brands shifted to national brands having an edge over store brand ads. Two weeks ago store brands predominated. The highest price is for national brands and the lowest for store brands. The weighted average advertised price for national brands is $3.61 and for store brands, $3.08.

CONTINUED ON PAGE 8-A

-8-

6.3

20.6 21.7 22.2 22.0

7.2

0

5

10

15

20

25

30

35

NE SE MW SC SW NW

%





Advertised Organic Milk Half Gallon Price Range and Weighted Average Advertised Price by 2012 Week

ORGANIC MILK HALF GALLON ADS REGIONAL % and WEIGHTED AVERAGE ADVERTISED PRICE REGION %___ WTD. AV. ADV. PRICE $ NE 15.5 4.08 SE 23.2 3.13 MW 17.9 3.23 SC 24.7 3.30 SW 10.3 2.96 NW 08.4 2.99 US 3.31 The AMS Dairy Market News Survey which generated the current national organic half gallon milk weighted average advertised price of $3.31, also determined the weighted average advertised price for non-organic half gallons as $2.27, an organic-conventional half-gallon milk advertised price spread of $1.04, up 22 cents from two weeks ago and even with four weeks ago. During 2012, the price spread has ranged from $0.78 to $2.46. Advertising volume for organic half gallon containers of milk has been higher during six periods of the year and lower during thirteen periods. Organic Milk 8 Ounce. All ads for 8 ounce containers of organic milk listed a price range of $1.00. The volume of ads this period is lower than any of the last five reporting periods. ORGANIC MILK 8 OUNCE ADS REGIONAL % and WEIGHTED AVERAGE ADVERTISED PRICE REGION %___ WTD. AV. ADV. PRICE $ NE 00.0 ---- SE 00.0 ---- MW 16.0 1.00 SC 16.8 1.00 SW 67.2 1.00 NW 00.0 ---- US 1.00

Organic Milk Gallons. There are no ads for organic milk gallons this reporting period nor were there any two weeks ago. The last reported national weighted average advertised price was $5.43, with a price spread of $5.99 to $4.99. Organic Yogurt. Total organic yogurt ad numbers are the second highest level of the year, higher than any of the last fourteen survey periods. The greatest percentage of organic yogurt ads are for 32 ounce organic yogurt, followed by 4-6 ounce organic yogurt. No ads appeared for Greek yogurt. The Southeast led all regions in total organic yogurt advertising for the second consecutive survey period. The Northeast, which has led the regions in organic yogurt for most periods of the year, had zero organic yogurt ads this period. Regional percentages of organic yogurt ads this period include the Southeast, 40.2%; Midwest, 23.1%; South Central, 21.9%; Southwest, 9.4%; and Northwest, 5.3.

4-6 Ounce Organic Yogurt. Ads for 4-6 ounce organic yogurt yielded a weighted average advertised price of 63 cents, down 19 cents, from two weeks ago. The price range is $0.60 to $0.79. All ads are for national brands. Most ads were listed in the Southeast, with the remaining ads in the South Central region.

Advertised 4-6 Oz. Organic Yogurt Price Range and Weighted Average Advertised Price by 2012 Week

CONTINUED ON PAGE 8-B

8-A

0.99 1.00

0.60

0.79

0.60 0.79

1.00

0.79

0.60 0.60

0.500.57

0.60 0.57 0.600.60

0.79 0.82

0.590.63

0.60 0.65

0.82

0.63

$0.40

$0.50

$0.60

$0.70

$0.80

$0.90

$1.00

$1.10

26 28 30 32 34 36 38 40

$ per Container

4.49

4.99 4.99 4.99 4.99 4.99

3.99

4.99

2.99 2.99

2.39 2.29

2.69

2.99

2.49 2.49

3.27

3.93

3.64

3.27

3.91

3.47

3.23

3.31

$2.25

$2.45

$2.65

$2.85

$3.05

$3.25

$3.45

$3.65

$3.85

$4.05

$4.25

$4.45

$4.65

$4.85

26 28 30 32 34 36 38 40




CONTINUED FROM PAGE 8-A 4-6 OUNCE ORGANIC YOGURT ADS REGIONAL % and WEIGHTED AVERAGE ADVERTISED PRICE REGION %___ WTD. AV. ADV. PRICE $ NE 00.0 ---- SE 82.1 0.60 MW 00.0 ---- SC 17.9 0.79 SW 00.0 ---- NW 00.0 ---- US 0.63 32 Ounce Organic Yogurt. For the first time this year, 32 ounce organic yogurt led organic yogurt in ad numbers. There are nearly three times the number of ads for 32 ounce organic yogurt as for 4-6 ounce organic yogurt. Approximately three out of every five ads for 32 ounce organic yogurt are for national brands than store brands. 32 OUNCE ORGANIC YOGURT ADS REGIONAL % and WEIGHTED AVERAGE ADVERTISED PRICE REGION %___ WTD. AV. ADV. PRICE $ NE 00.0 ---- SE 26.1 3.45 MW 30.9 3.37 SC 23.3 2.99 SW 12.6 3.00 NW 07.1 3.00 US 3.23 1 Pound Organic Butter. Organic butter advertising fell back 40.7% from the highest level of the year and the highest level in the history of this survey, but remains the second highest level of 2012. The Southwest region outpaced all other regions with 36.3% of the organic butter ads. More organic butter ads were store brands than national brands. The lowest price for organic butter, $3.79, is less than the highest price for conventional butter this period, $3.99. There is a $1.38 price spread between the weighted average advertised price of conventional butter, $2.61, and organic butter, $3.99. 1 POUND ORGANIC BUTTER ADS REGIONAL % and WEIGHTED AVERAGE ADVERTISED PRICE REGION %___ WTD. AV. ADV. PRICE $ NE 00.0 ---- SE 02.0 3.79 MW 28.1 3.99 SC 22.2 3.99 SW 36.3 3.99 NW 11.4 3.99 US 4.31 8 Ounce Organic Cream Cheese. All ads for organic cream cheese are in the Northeast, for a national brand, priced $2.59. 8 Ounce Shredded Organic Cheese. All ads for organic cheese are in the Midwest, for a store brand, priced $3.59. Less than 0.5% of all organic ads are for organic cheese. SUPERMARKET PRICE COMPARISON: Madison, Wisconsin Prices. Non-advertised organic milk, yogurt, butter and cheese prices in a range of food stores in Madison, Wisconsin are compared for this two week period. Madison stores included a big-box sized local supermarket; 2 regional

chain supermarkets; a smaller but full product line food market; and 2 natural food stores; a national discount big box chain store also selling food; and a large local cooperative grocery store. ORGANIC MILK, YOGURT, CHEESE, BUTTER PRICE RANGE 2012 REPORTING WEEK 40 MADISON, WISCONSIN LOW HIGH RANGE (in Dollars) FLUID MILK MILK - gallon Whole 5.79* 6.79 1.00* Reduced fat (2%) 5.79* 6.79 1.00* Low fat (1%) 5.79* 6.79 1.00* Nonfat (Skim) 5.79* 6.79 1.00* MILK - half gallon Whole 3.59* 4.89* 1.30* Reduced fat (2%) 3.59* 4.89* 1.30* Low fat (1%) 3.59* 4.89* 1.30* Nonfat (Skim) 3.59* 4.89* 1.30* FLAVMILK - half gallon All fat tests 3.09 5.69 2.60 YOGURT Yogurt - 4-6 oz Yogurt 0.79 1.29 0.50 CHEESE Cheese - 8 oz block Mozzarella 3.40 5.75 2.35 Mild Cheddar 3.79 5.99 2.20 Monterey Jack 3.79 5.99 2.20 Pepper Jack 3.89 5.99 2.10 Cheese - 6 oz string Mozzarella 3.99 5.09 1.10 Colby Jack 3.89 4.99 1.10 BUTTER Butter - 1 Pound 4.99* 6.19 1.20*

= Price change from prior reporting period. ORGANIC GRAIN AND FEEDSTUFF MARKETS: National organic grain and feedstuffs were mostly lower with moderate demand. New crop harvest has begun for the majority of organic farmers and yields have been described as "what you would expect" for drought ravaged areas, and fair to good for less stricken areas. Feed grade corn and soybeans this period were lower due mostly in part to the availability of new crop grain. Feed grade wheat was higher with good demand, due to corn prices. Many livestock producers are feeding more wheat than anticipated earlier this year. Feed wheat remains in the area of $2.00 over the protein point in all regions this period. Barley trade has not been in the forefront of recent trading due largely to the bulk of that commodity being imported from Canada. While soybean prices have lowered slightly, some buyers and end users continue to consider utilizing grains from overseas due to prices demanded by many producers. Organic alfalfa pellets, 17% protein, were $430.00/ton this period in Nebraska. Alfalfa hay in the North Inter-Mountain area of California was 240.00-280.00/ton for supreme and good quality. Premium oat hay was $155.00/ton in the Sacramento Valley. Additional information is available at: http://www.ams.usda.gov/mnreports/lsbnof.pdf

8-B

DAIRY MARKET NEWS, OCTOBER 1 - 5, 2012 9 VOLUME 79, REPORT 40

OVER-ORDER CHARGES ON PRODUCER MILK, BY CLASS OF UTILIZATION,BY FEDERAL MILK ORDER MARKETING AREA, JULY 2012 1/

Weighted Average of Weighted Average ofOver-Order Charges Over-Order Charges

Spread Over Spread OverTotal Class I Milk 1/ Total Class II Milk 1/

Appalachian 5 2.69 1.26

Florida 6 2.95 0.33

Southeast 7 2.71 1.95

Upper Midwest 30 2.12 0.92

Central 32 1.96 0.93

Mideast 33 1.73 1.40

Pacific Northwest 124 0.79 0.64

All Reporting Areas Combined 3/ 2.06 1.13

Federal Milk Order Marketing Area 2/

Order Number

$/cwt

1/ Figures are weighted averages of all the over-order charges applicable to any volume of milk used in the respective class spread over 100 percent of the producer milk used in that class. Includes some producer milk for which there was no over-order charge. 2/ Information is available for all Federal milk marketing areas except the Northeast and Southwest. See 3/.3/ Figures are weighted averages of the available individual marketing area data; includes information for the Arizona order which is administratively confidential.Report Contact: Randal Stoker, [email protected] or 202-690-1932

For July 2012, the all reporting areas combined average over-order charge on producer milk used in Class I was $2.06 per cwt., up $0.01from the June 2012 average. Eighty-nine percent of the producer milk used in Class I carried an over-order charge. On an individual orderbasis, Class I over-order charges ranged from $0.79 in the Pacific Northwest to $2.95 in the Florida Order. For producer milk used inClass II, the all reporting areas combined average over-order charge was $1.13 per cwt., up $0.04 per cwt.from the June 2012 average.Seventy-seven percent of the producer milk used in Class II carried an over-order charge.

DAIRY MARKET NEWS, OCTOBER 1 - 5, 2012 -10- VOLUME 79, REPORT 40 MONTHLY SUMMARY AND AVERAGES FOR SEPTEMBER 2012 1/ - (UNLESS OTHERWISE NOTED, PRICES ARE DOLLARS PER POUND, CL/TL) ::REPORT NUMBER 36 ::REPORT NUMBER 37 ::REPORT NUMBER 38 ::REPORT NUMBER 39 :: 2012 : 2011 COMMODITY ::-----------------::-----------------::-----------------::-----------------::-----------------:: Average : Average :: SEP 03 - 07 :: SEP 10 - 14 :: SEP 17 - 21 :: SEP 24 - 28 :: or Total : or Total CHEESE WISCONSIN (WSP, Delivered, LTL) -- Process American 5# Loaf :: 1.9875 - 2.6925 :: 1.9650 - 2.6700 :: 1.9850 - 2.6900 :: 2.0925 - 2.7975 :: :: 2.3611 : 2.3260 -- Brick And/Or Muenster 5# :: 2.2425 - 2.8025 :: 2.2200 - 2.7800 :: 2.2375 - 2.7975 :: 2.3400 - 2.9000 :: :: 2.5409 : 2.4940 -- Cheddar 40# Block :: 2.2425 - 3.2275 :: 2.2200 - 3.2050 :: 2.2375 - 3.2225 :: 2.3400 - 3.3250 :: :: 2.7534 : 2.5739 -- Monterey Jack 10# :: 2.2125 - 3.2275 :: 2.1900 - 3.2050 :: 2.2075 - 3.2225 :: 2.3100 - 3.3250 :: :: 2.7384 : 2.5551 -- Blue 5# :: 2.5075 - 3.4925 :: 2.4850 - 3.4700 :: 2.5025 - 3.4875 :: 2.6050 - 3.5900 :: :: 3.0184 : 2.9563 -- Mozzarella 5 - 6# :: 2.0875 - 3.3275 :: 2.0650 - 3.3050 :: 2.0825 - 3.3225 :: 2.1850 - 3.4250 :: :: 2.7259 : 2.5414 -- Grade A Swiss Cuts 6 - 9# :: 2.8850 - 3.0025 :: 2.8850 - 3.0025 :: 2.8850 - 3.0025 :: 2.8850 - 3.0025 :: :: 2.9438 : 3.2317 NORTHEAST (WSP, Delivered, LTL) -- Cheddar 40# Block :: 2.2550 - 2.5400 :: 2.2325 - 2.5175 :: 2.2500 - 2.5350 :: 2.3525 - 2.6375 :: :: 2.4159 : 2.2277 -- Process 5# Sliced :: 2.0150 - 2.1350 :: 1.9925 - 2.1125 :: 2.0125 - 2.1325 :: 2.1200 - 2.2400 :: :: 2.0961 : 1.9827 -- Muenster :: 2.2750 - 2.6350 :: 2.2525 - 2.6125 :: 2.2700 - 2.6300 :: 2.3725 - 2.7325 :: :: 2.4734 : 2.2127 -- Grade A Swiss Cuts 10 - 14# :: 3.3650 - 3.6875 :: 3.3650 - 3.6875 :: 3.3650 - 3.6875 :: 3.3650 - 3.6875 :: :: 3.5263 : 4.0367 WEST COAST (WSP, Delivered, LTL) -- Process 5# Loaf :: 1.9200 - 2.1775 :: 1.8975 - 2.1550 :: 1.9175 - 2.1750 :: 2.0250 - 2.2825 :: :: 2.0698 : 1.9717 -- Cheddar 40# Block :: 1.9775 - 2.3300 :: 1.9550 - 2.3075 :: 1.9725 - 2.3250 :: 2.0775 - 2.4300 :: :: 2.1728 : 2.0790 -- Cheddar 10# Cuts :: 2.1575 - 2.3775 :: 2.1350 - 2.3550 :: 2.1525 - 2.3725 :: 2.2575 - 2.4775 :: :: 2.2866 : 2.1927 -- Monterey Jack 10# :: 2.1675 - 2.3275 :: 2.1450 - 2.3050 :: 2.1625 - 2.3225 :: 2.2675 - 2.4275 :: :: 2.2666 : 2.1727 -- Grade A Swiss Cuts 6 - 9# :: 2.9425 - 3.3725 :: 2.9425 - 3.3725 :: 2.9425 - 3.3725 :: 2.9425 - 3.3725 :: :: 3.1575 : 3.6680 FLUID PRODUCTS SPOT PRICES OF CLASS II CREAM ($ per lb. butterfat) -- Northeast - f.o.b :: 2.3405 - 2.4868 :: 2.4635 - 2.5942 :: 2.3578 - 2.5051 :: 2.3936 - 2.5432 :: :: 2.4631 : 2.4970 -- Upper Midwest - f.o.b :: 2.3405 - 2.4319 :: 2.3142 - 2.4262 :: 2.2841 - 2.4314 :: 2.3188 - 2.4684 :: :: 2.3765 : 2.4095 PRICES OF CONDENSED SKIM - NORTHEAST ($ per lb. wet solids) - f.o.b. -- Class II :: 1.29 - 1.34 :: 1.29 - 1.40 :: 1.29 - 1.40 :: 1.41 - 1.55 :: :: 1.3742 : 1.6550 -- Class III :: 1.44 - 1.49 :: 1.44 - 1.49 :: 1.44 - 1.49 :: 1.44 - 1.49 :: :: 1.4650 : 1.7431

DAIRY MARKET NEWS, OCTOBER 1 - 5, 2012 -11- VOLUME 79, REPORT 40 MONTHLY SUMMARY AND AVERAGES FOR SEPTEMBER 2012 1/ - (UNLESS OTHERWISE NOTED, PRICES ARE DOLLARS PER POUND, CL/TL) ::REPORT NUMBER 36 ::REPORT NUMBER 37 ::REPORT NUMBER 38 ::REPORT NUMBER 39 :: 2012 : 2011 COMMODITY ::-----------------::-----------------::-----------------::-----------------::-----------------:: Average : Average :: SEP 03 - 07 :: SEP 10 - 14 :: SEP 17 - 21 :: SEP 24 - 28 :: or Total : or Total DRY PRODUCTS NONFAT DRY MILK -- Central And East (f.o.b.) -- Low/Medium Heat :: 1.3525 - 1.8000 :: 1.3975 - 1.8000 :: 1.4325 - 1.8000 :: 1.3800 - 1.8000 :: :: 1.5963 : 1.5385 -- Mostly :: 1.3900 - 1.6200 :: 1.4000 - 1.6500 :: 1.4500 - 1.6500 :: 1.4500 - 1.6500 :: :: 1.5339 : 1.5386 -- High Heat :: 1.4150 - 1.9000 :: 1.4475 - 1.9000 :: 1.4825 - 1.9000 :: 1.5000 - 1.9000 :: :: 1.6818 : 1.6450 -- West (f.o.b) -- Low/Medium Heat :: 1.2800 - 1.7000 :: 1.3050 - 1.7300 :: 1.3400 - 1.7000 :: 1.3600 - 1.7000 :: :: 1.5157 : 1.4947 -- Mostly :: 1.3200 - 1.6500 :: 1.3400 - 1.6700 :: 1.3800 - 1.6500 :: 1.4000 - 1.6500 :: :: 1.5087 : 1.4902 -- High Heat :: 1.3300 - 1.6700 :: 1.3400 - 1.7500 :: 1.3800 - 1.7500 :: 1.4000 - 1.7500 :: :: 1.5487 : 1.6045 WHEY POWDER (Nonhygroscopic) -- Central (f.o.b.) :: 0.5200 - 0.6000 :: 0.5200 - 0.6050 :: 0.5450 - 0.6250 :: 0.5550 - 0.6250 :: :: 0.5751 : 0.5823 -- Mostly :: 0.5500 - 0.5800 :: 0.5500 - 0.5850 :: 0.5650 - 0.6000 :: 0.5700 - 0.6000 :: :: 0.5755 : 0.5794 -- West (f.o.b.) :: 0.5600 - 0.6200 :: 0.5700 - 0.6250 :: 0.5800 - 0.6250 :: 0.5700 - 0.6300 :: :: 0.5979 : 0.5985 -- Mostly :: 0.5700 - 0.6000 :: 0.5800 - 0.6050 :: 0.5900 - 0.6125 :: 0.5800 - 0.6225 :: :: 0.5955 : 0.6143 -- Northeast (f.o.b.) :: 0.5775 - 0.5925 :: 0.5900 - 0.6150 :: 0.6050 - 0.6200 :: 0.6150 - 0.6325 :: :: 0.6070 : 0.6005 WHEY PROTEIN CONCENTRATE -- Central And West (f.o.b.) -- Extra Grade 34% Protein :: 1.0700 - 1.2975 :: 1.0700 - 1.3125 :: 1.1700 - 1.3200 :: 1.1900 - 1.3425 :: :: 1.2236 : 1.4881 -- Mostly :: 1.1400 - 1.1850 :: 1.1600 - 1.1850 :: 1.1800 - 1.2050 :: 1.1925 - 1.2325 :: :: 1.1862 : 1.4900 ANIMAL FEED - WHEY -- Central (f.o.b.) -- Milk Replacer :: 0.4050 - 0.5400 :: 0.4050 - 0.5450 :: 0.4250 - 0.5600 :: 0.4350 - 0.5800 :: :: 0.4876 : 0.5006 BUTTERMILK (Min. 30% protein) -- Central And East (f.o.b.) :: 1.3000 - 1.3525 :: 1.3000 - 1.3700 :: 1.3300 - 1.4500 :: 1.4225 - 1.6700 :: :: 1.4032 : 1.3905 -- West (f.o.b.) :: 1.2300 - 1.4500 :: 1.2750 - 1.6000 :: 1.3000 - 1.5500 :: 1.3200 - 1.6000 :: :: 1.4196 : 1.2767 -- Mostly :: 1.2750 - 1.3350 :: 1.3250 - 1.3750 :: 1.3600 - 1.4400 :: 1.3800 - 1.4800 :: :: 1.3747 : 1.2740 WHOLE MILK POWDER -- National (f.o.b.) :: 1.5800 - 1.6400 :: 1.5800 - 1.6400 :: 1.5800 - 1.7000 :: 1.6000 - 1.7300 :: :: 1.6324 : 1.9814 LACTOSE -- Central And West (f.o.b.) :: 0.6600 - 0.9575 :: 0.6500 - 0.9575 :: 0.6600 - 0.9575 :: 0.6650 - 0.9575 :: :: 0.8081 : 0.6008 -- Mostly :: 0.7800 - 0.8700 :: 0.7800 - 0.8700 :: 0.7800 - 0.8700 :: 0.7800 - 0.8700 :: :: 0.8250 : 0.6086 CASEIN - Edible - National (f.o.b.) -- Nonrestricted - Rennet :: 3.7500 - 4.4000 :: 3.7500 - 4.4000 :: 3.7500 - 4.4000 :: 3.7500 - 4.4000 :: :: 4.0750 : 4.9750 -- Nonrestricted - Acid :: 4.1500 - 4.7000 :: 4.1500 - 4.7000 :: 4.3500 - 4.7500 :: 4.3500 - 4.7500 :: :: 4.4908 : 5.1800 --------------------------------------------------------------------------------------------------------------------------------------------------------- 1/ Prices for all products are issued once a week and represent a value for the entire week. Monthly averages are based on weekly prices and are time-weighted according to the number of workdays in the month - Saturdays, Sundays and National Holidays excluded. No monthly average is computed if one or more weekly prices are missing.


CME GROUP AVERAGES FOR SEPTEMBER 2012 ------------------------------------------------------------------------------------------------------------------------------------ ::REPORT NUMBER 36::REPORT NUMBER 37::REPORT NUMBER 38::REPORT NUMBER 39:: :: 2012 * : 2011 * COMMODITY ::----------------::----------------::----------------::----------------::----------------:: Monthly : Monthly :: SEP 4 - 7 :: SEP 10 - 14 :: SEP 17 - 21 :: SEP 24 - 28 :: :: Average : Average ------------------------------------------------------------------------------------------------------------------------------------ BUTTER* -- GRADE AA --Monday :: :: 1.8550 :: 1.8500 :: 1.9300 :: :: : --Tuesday :: 1.8600 :: 1.8200 :: 1.8525 :: 1.9400 :: :: : --Wednesday :: 1.8700 :: 1.8400 :: 1.8675 :: 1.9400 :: :: : --Thursday :: 1.8700 :: 1.8450 :: 1.8900 :: 1.9400 :: :: : --Friday :: 1.8650 :: 1.8500 :: 1.8900 :: 1.9500 :: :: 1.8803 : 1.8724 --Weekly Average** :: 1.8663 :: 1.8420 :: 1.8700 :: 1.9400 :: :: : CHEESE* -- BARRELS --Monday :: :: 1.7750 :: 1.8450 :: 1.9600 :: :: : --Tuesday :: 1.7775 :: 1.7700 :: 1.8725 :: 2.0000 :: :: : --Wednesday :: 1.7775 :: 1.8000 :: 1.9050 :: 2.0400 :: :: : --Thursday :: 1.7750 :: 1.8125 :: 1.9400 :: 2.0350 :: :: : --Friday :: 1.7750 :: 1.8275 :: 1.9600 :: 2.0350 :: :: 1.8780 : 1.7010 --Weekly Average** :: 1.7763 :: 1.7970 :: 1.9045 :: 2.0140 :: :: : -- 40# BLOCKS --Monday :: :: 1.8300 :: 1.8850 :: 2.0000 :: :: : --Tuesday :: 1.8200 :: 1.8300 :: 1.9100 :: 2.0500 :: :: : --Wednesday :: 1.8200 :: 1.8400 :: 1.9500 :: 2.0825 :: :: : --Thursday :: 1.8400 :: 1.8550 :: 2.0000 :: 2.0750 :: :: : --Friday :: 1.8300 :: 1.8725 :: 2.0000 :: 2.0750 :: :: 1.9245 : 1.7561 --Weekly Average** :: 1.8275 :: 1.8455 :: 1.9490 :: 2.0565 :: :: : NONFAT DRY MILK* -- EXTRA GRADE --Monday :: :: 1.6350 :: 1.6350 :: 1.6350 :: :: : --Tuesday :: 1.6250 :: 1.6350 :: 1.6350 :: 1.6350 :: :: : --Wednesday :: 1.6350 :: 1.6350 :: 1.6350 :: 1.6350 :: :: : --Thursday :: 1.6350 :: 1.6350 :: 1.6350 :: 1.6350 :: :: : --Friday :: 1.6350 :: 1.6350 :: 1.6350 :: 1.6350 :: :: 1.6345 : 1.6000 --Weekly Average** :: 1.6325 :: 1.6350 :: 1.6350 :: 1.6350 :: :: : -- GRADE A --Monday :: :: 1.7000 :: 1.6900 :: 1.6800 :: :: : --Tuesday :: 1.7000 :: 1.7000 :: 1.6900 :: 1.6800 :: :: : --Wednesday :: 1.7000 :: 1.7000 :: 1.6900 :: 1.6800 :: :: : --Thursday :: 1.7000 :: 1.6900 :: 1.6900 :: 1.6700 :: :: : --Friday :: 1.7000 :: 1.6900 :: 1.6900 :: 1.6600 :: :: 1.6895 : 1.4919 --Weekly Average** :: 1.7000 :: 1.6960 :: 1.6900 :: 1.6740 :: :: : ------------------------------------------------------------------------------------------------------------------------------------ * Monthly averages are a simple average of all the closes during the month. Weekly and monthly averages are independent calculations. ** Weekly averages are simple averages of the closes during the calendar week and are for information purposes. Should the week be split between two months, the weekly average will appear in the monthly report in which the Friday close is reported.

DAIRY MARKET NEWS, OCTOBER 1 – 5, 2012 -13- VOLUME 79, REPORT 40

AUGUST 2012 DAIRY PRODUCTS HIGHLIGHTS BUTTER production was 129.1 million pounds, 3.5 percent below August 2011 and 3.1 percent below July 2012. AMERICAN TYPE CHEESE production totaled 353.5 million pounds, 4.5 percent above August 2011 but 0.7 percent below July 2012. TOTAL CHEESE output (excluding cottage cheese) was 884.4 million pounds, 2.6 percent above August 2011 and 0.5 percent above July 2012. NONFAT DRY MILK production, for human food, totaled 105.9 million pounds, 7.8 percent below August 2011 and 30.0 percent below July 2012. DRY WHEY production, for human food, was 85.1 million pounds, 19.0 percent above August 2011 but 1.5 percent below July 2012. ICE CREAM (hard) production totaled 74.4 million gallons, 5.5 percent below August 2011 but 0.7 percent above July 2012.

PRODUCTION OF DAIRY PRODUCTS

PRODUCT

AUG 2012 PERCENT CHANGE FROM:

PRODUCT

AUG 2012 PERCENT CHANGE FROM:

1,000 LBS. AUG 2011

JUL 2012

YEAR TO

DATE 1/ 1,000 LBS.

AUG 2011

JUL 2012

YEAR TO

DATE 1/ BUTTER 129,090 -3.5 -3.1 4.3 SOUR CREAM 109,936 0.6 9.4 2.2 CHEESE YOGURT (PLAIN AND FLAVORED) 389,051 4.5 9.2 3.5 AMERICAN TYPES 2/ 353,515 4.5 -0.7 2.1 DRY WHEY, HUMAN FOOD 85,078 19.0 -1.5 --- CHEDDAR 250,683 3.1 -3.1 1.1 DRY WHEY, ANIMAL FEED 4,070 -50.8 5.2 --- OTHER AMERICAN 102,832 8.0 5.5 --- DRY WHEY, TOTAL 8/ 89,148 11.8 -1.3 1.9 BRICK & MUENSTER 13,361 -9.8 -1.9 --- REDUCED LACTOSE AND MINERALS CREAM & NEUFCHATEL 72,635 13.1 8.6 --- HUMAN FOOD 2,419 -4.8 45.8 --- HISPANIC 20,157 9.5 7.4 --- ANIMAL FEED 5,325 21.7 11.4 --- TOTAL ITALIAN TYPES 370,418 1.9 0.5 1.7 LACTOSE, HUMAN FOOD & ANIMAL FEED 85,593 3.0 -0.3 3.8 MOZZARELLA 284,902 -0.3 -2.2 1.7 WHEY PROTEIN CONCENTRATE OTHER ITALIAN 85,516 9.9 10.8 --- HUMAN FOOD 9/ 33,008 --- 3.5 --- SWISS 25,902 -8.6 -3.5 --- ANIMAL FEED 9/ 1,931 -14.1 -12.3 --- ALL OTHER TYPES 12,529 -30.5 -5.5 --- TOTAL 9/ 34,939 -0.9 2.5 4.5 TOTAL 884,448 2.6 0.5 2.7 25.0-49.9 PERCENT 10/ 19,364 -2.6 9.9 --- COTTAGE CHEESE, CURD 3/ 38,965 1.8 10.7 --- 50.0-89.9 PERCENT 10/ 15,575 1.3 -5.4 --- COTTAGE CHEESE, CREAM 4/ 29,377 -3.6 5.7 -3.2 WHEY PROTEIN ISOLATES 11/ 5,274 12.9 9.1 --- COTTAGE CHEESE, LOWFAT 5/ 36,270 6.2 12.5 1.0 FROZEN PRODUCTS 1,000 GALLONS PERCENT CHANGE FROM: CANNED EVAP & CONDSD WHOLE MILK (D) (X) (X) --- ICE CREAM (HARD) 74,381 -5.5 0.7 -1.0 DRY BUTTERMILK 6,787 3.6 -2.9 --- ICE CREAM, LOWFAT (HARD) 17,262 6.8 0.9 --- DRY WHOLE MILK 5,576 -23.3 12.3 --- ICE CREAM, LOWFAT (SOFT) 23,321 -13.6 -5.0 --- MILK PROTEIN CONC. (MPC), TOTAL 6/ 5,468 -2.0 3.0 --- ICE CREAM, LOWFAT (TOTAL) 40,583 -6.0 -2.6 -1.6 NONFAT DRY MILK (NDM), HUMAN 105,898 -7.8 -30.0 27.7 SHERBET, HARD 3,768 -13.7 -4.2 -5.7

SKIM MILK POWDERS (SMP) 7/ 40,337 4.3 8.3 -30.4 FROZEN YOGURT (TOTAL) 6,542 -0.9 11.3 4.5

MANUFACTURERS' STOCKS, END OF MONTH 12/

PRODUCT

AUG 2012

PERCENT OF: PRODUCT

AUG 2012

PERCENT OF:

1,000 LBS.

AUG 2011

JUL 2012

1,000 LBS.

AUG 2011

JUL 2012

DRY WHEY, HUMAN FOOD 35,119 -11.5 -21.1 WHEY PROTEIN CONCENTRATE DRY WHEY, ANIMAL FEED 2,403 -47.7 -21.2 HUMAN FOOD 9/ 51,002 43.6 -5.1 REDUCED LACTOSE & MINERALS—HUMAN & ANIMAL 13/ 7,833 75.8 8.1 ANIMAL FEED 9/ 2,709 -5.8 12.0 LACTOSE, HUMAN FOOD & ANIMAL FEED 84,719 25.3 -5.3 TOTAL 9/ 53,711 39.9 -4.4 CANNED EVAP & CONDSD WHOLE MILK (D) (X) (X) 25.0-49.9 PERCENT 10/ 32,826 75.9 -5.4 DRY BUTTERMILK 7,754 -52.3 -31.0 50.0-89.9 PERCENT 10/ 20,885 5.8 -2.7

NONFAT DRY MILK (NDM), HUMAN FOOD 105,648 -37.1 -18.2 WHEY PROTEIN ISOLATES 11/ 8,004 77.2 -0.2

(D) = Withheld to avoid disclosing data for individual operations. (X) = Not applicable. 1/ 2012 cumulative as percent change of 2011 cumulative. 2/ Includes Cheddar, Colby, Monterey and Jack. 3/ Mostly used for processing into cream or lowfat cottage cheese. 4/ Fat content 4 percent or more. 5/ Fat content less than 4 percent. 6/ Dry milk protein concentrate, 40-89.9 percent. 7/ Includes protein standardized and blends. 8/ Excludes all modified dry whey products. 9/ Whey protein concentrate, 25.0 to 89.9 percent. 10/ Whey protein concentrate, human and animal. 11/ Whey protein isolates, 90.0 percent or greater. 12/ Stocks held by manufacturers at all points and in transit. 13/ Reduced lactose and minerals stocks combined to avoid disclosure of individual operations. Source: U.S. Department of Agriculture. National Agricultural Statistics Service. Agricultural Statistics Board. Dairy Products, October 2012.

DAIRY MARKET NEWS, OCTOBER 1 – 5, 2012 -14- VOLUME 79, REPORT 40 FEDERAL MILK ORDER CLASS AND COMPONENT PRICES, SEPTEMBER

Component Price Information: Under the Federal milk order pricing system, the butterfat price for September 2012 is $2.0047 per pound. Thus, the Class II butterfat price is $2.0117. The protein and other solids prices for September are $3.2521 and $0.3971 per pound, respectively. These component prices set the Class III skim milk price at $12.42 per cwt. The September Class IV skim milk price is $10.77, which is derived from the nonfat solids price of $1.1969 per pound. Product Price Averages: The product price averages for September are: butter $1.8269, nonfat dry milk $1.3768, cheese $1.8647, and dry whey $0.5846.

FEDERAL MILK ORDER MINIMUM CLASS PRICES FOR MILK OF 3.5 PERCENT BUTTERFAT 1/ 2/

FEDERAL MILK ORDER MARKETING AREAS 3/

ORDER NUMBER

SEPTEMBER 2012 OCTOBER 2012 CLASS I CLASS II CLASS III CLASS IV CLASS I

DOLLARS PER 100 POUNDS Northeast (Boston) 4/ 001 20.84 17.04 19.00 17.41 22.13 Appalachian (Charlotte) 5/ 6/ 005 20.99 17.04 19.00 17.41 22.28 Southeast (Atlanta) 6/ 7/ 007 21.39 17.04 19.00 17.41 22.68 Florida (Tampa) 6/ 8/ 006 22.99 17.04 19.00 17.41 24.28 Mideast (Cleveland) 9/ 033 19.59 17.04 19.00 17.41 20.88 Upper Midwest (Chicago) 10/ 030 19.39 17.04 19.00 17.41 20.68 Central (Kansas City) 11/ 032 19.59 17.04 19.00 17.41 20.88 Southwest (Dallas) 12/ 126 20.59 17.04 19.00 17.41 21.88 Arizona (Phoenix) 131 19.94 17.04 19.00 17.41 21.23 Pacific Northwest (Seattle) 13/ 124 19.49 17.04 19.00 17.41 20.78 All-Market Average --- 20.48 17.04 19.00 17.41 21.77

1/ To convert the Class I price per 100 pounds to the Class I price per gallon, divide by 11.63 - the approximate number of gallons in 100 pounds of milk. 2/ Note: The mandatory $0.20 per cwt. processor assessment under the Fluid Milk Promotion Order is not included in the Class I prices shown on this table. 3/ Names in parentheses are the major city in the principal pricing point of the market. 4/ Class I prices at other cities are: New York City, minus $0.10; Philadelphia, minus $0.20; Baltimore, minus $0.25; and Washington, DC, minus $0.25. 5/ Class I prices at other cities are: Knoxville, minus $0.20 and Louisville, minus $1.10. 6/ Effective May 1, 2008, the Class I price surface in these orders were temporarily adjusted. 7/ Class I prices at other cities are: New Orleans, same; Memphis, minus $0.90; Nashville, minus $0.90; and Springfield, MO, minus $1.40. 8/ Class I prices at other cities are: Orlando, same; Miami, plus $0.60; and Jacksonville, minus $0.40. 9/ Class I prices at other cities are: Indianapolis, same; Cincinnati, plus $0.20; Pittsburgh, plus $0.10; and Detroit, minus $0.20. 10/ Class I prices at other cities are: Milwaukee, minus $0.05; and Minneapolis, minus $0.10. 11/ Class I prices at other cities are: Des Moines, minus $0.20; Omaha, minus $0.15; Oklahoma City, plus $0.60; St. Louis, same; and Denver, plus $0.55. 12/ Class I prices at other cities are: Houston, plus $0.60; San Antonio, plus $0.45; Albuquerque, minus $0.65; and El Paso, minus $0.75. 13/ Class I prices at other cities are: Portland, same; and Spokane, same.

DAIRY MARKET NEWS, OCTOBER 1 - 5, 2012 -G1- VOLUME 79, REPORT 40

300

320

340

360

380

400

420

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

MILLION POUNDS

DATA SOURCE, USDA, NASS; GRAPH, USDA, AMS, DMN

U.S. TOTAL ITALIAN-TYPE CHEESE PRODUCTION

2008 2009 2010 2011 2012

14.0

15.0

16.0

17.0

18.0

19.0

20.0

21.0


MILLION POUNDS U.S. TOTAL HISPANIC CHEESE PRODUCTION

2008 2009 2010 2011 2012DATA SOURCE, USDA, NASS; GRAPH USDA, AMS, DMN

22.0

23.0

24.0

25.0

26.0

27.0

28.0

29.0

30.0

31.0


MILLION POUNDS

DATA SOURCE, USDA, NASS; GRAPH, USDA, DMN

U.S. SWISS CHEESE PRODUCTION

2008 2009 2010 2011 2012


240250260270280290300310320330340350360370380390400410


MILLION POUNDS U.S. YOGURT PRODUCTION,PLAIN AND FLAVORED

2008 2009 2010 2011 2012DATA SOURCE, USDA, NASS; GRAPH, USDA, AMS, DMN

26

28

30

32

34

36

38

40

42

44

46

48

50


MILLION GALLONS


U.S. REGULAR ICE CREAM MIX PRODUCTION

2008 2009 2010 2011 2012

49

53

57

61

65

69

73

77

81

85

89

93


MILLION GALLONS


U.S. REGULAR HARD ICE CREAM PRODUCTION

2008 2009 2010 2011 2012

DAIRY MARKET NEWS GENERAL NUMBER (608)278-4200 Elizabeth Frederick (608) 278-4150 [email protected] EAST Rick Whipp (608) 278-4151 [email protected] CENTRAL/WEST Janet Linder (608) 278-4157 [email protected] SOUTHWEST Butch Speth (608) 278-4152 [email protected] NORTHWEST/MOUNTAIN Bob Hunter (608) 278-4158 [email protected] NATIONAL SUPERVISOR Donald Nelson (608) 278-4156 [email protected]

VOLUME: 79

REPORT: 40 DATE: 10/05/2012

INTERNATIONAL Steven Schneeberger (608) 278-4154 [email protected] ORGANIC Eric Graf (608) 278-4153 [email protected] INTERNET ADDRESS www.ams.usda.gov/DairyMarketNews

MARKET NEWS PORTAL www.marketnews.usda.gov RECORDED INFORMATION SYSTEM (608) 278-4142 FAX (608) 278-4141 ________________________ USDA, Dairy Market News 2920 Marketplace Drive, STE 202 Fitchburg, WI 53719-5337

U.S. DEPARTMENT OF AGRICULTURE – AGRICULTURAL MARKETING SERVICE – DAIRY PROGRAMS

160 2011 Certified Organic Production Survey USDA, National Agricultural Statistics Service

Table 11. Organic Livestock Products and Poultry Products Value of Sales from Certified Organic Farms - United States and States: 2011

Commodity and geographic area

Sales

Total gross value of sales Sold as certified organic Sold as conventional

Farms Quantity Dollars Farms Quantity Dollars Farms Quantity Dollars

MILK FROM COWS (POUNDS) United States .................................. Alabama ......................................... Arizona ........................................... Arkansas ......................................... California ........................................ Colorado ......................................... Idaho .............................................. Illinois.............................................. Indiana ............................................ Iowa ................................................ Kentucky ......................................... Louisiana ........................................ Maine .............................................. Maryland ......................................... Massachusetts ................................ Michigan ......................................... Minnesota ....................................... Mississippi ...................................... Missouri .......................................... Montana .......................................... Nebraska ........................................ New Hampshire .............................. New Mexico .................................... New York ........................................ North Carolina ................................. Ohio ................................................ Oregon ............................................ Pennsylvania .................................. South Dakota .................................. Tennessee ...................................... Texas .............................................. Utah ................................................ Vermont .......................................... Virginia ............................................ Washington ..................................... Wisconsin ....................................... Wyoming ......................................... GOAT MILK (POUNDS) United States .................................. Iowa ................................................ Minnesota ....................................... Montana .......................................... New Mexico .................................... New York ........................................ Oregon ............................................ Vermont .......................................... Wisconsin .......................................

1,823

1 1 1

72 4

17 12 81 78 13

3

50 4 5

46

114 1 9 1 3

12 3

235 5

135

43 236

4 2 8

2

180 9

35 397

1

19

10 2 1 1 1

2 1 1

2,797,845,926

(D) (D) (D)

469,148,296 (D)

93,922,456 7,717,416

46,341,401 42,146,613 8,511,384

(D)

39,770,451 (D) (D) (D)

124,912,937

(D) 6,957,000

(D) (D)

(D) (D)

218,597,110 (D)

83,003,533

259,213,324 148,704,869

1,748,628 (D)

423,558,952

(D) 149,649,913

(D) 90,841,191

313,991,661 (D)

1,561,871

676,556 (D) (D) (D) (D)

(D) (D) (D)

764,685,911

(D) (D) (D)

127,201,275 (D)

25,310,940 1,776,290

(D) 11,142,508 2,277,098

2,361,343

11,264,907 (D) (D) (D)

33,187,033

(D) 1,756,921

(D) (D)

(D) (D)

60,165,502 1,474,724

23,524,496

69,140,278 42,632,437

(D) (D)

120,232,218

(D) 41,702,950

(D) 25,628,798 82,278,236

(D)

749,137

331,489 (D) (D) (D) (D)

(D) (D) (D)

1,812

1 1 -

72 4

17 12 81 76 13

3

50 4 5

46

112 1 9 1 3

12 3

235 5

133

43 236

4 2 8

2 180

9 34

394 1

19

10 2 1 1 1

2 1 1

2,791,430,858

(D) (D)

- (D) (D)

93,922,456 7,717,416

46,341,401 41,353,802 8,511,384

(D)

39,770,451 (D) (D) (D)

124,134,301

(D) 6,957,000

(D) (D)

(D) (D)

218,121,034 (D) (D)

259,213,324 148,440,277

1,748,628 (D)

423,558,952

(D) 149,649,913

(D) (D)

313,298,106 (D)

1,561,871

676,556 (D) (D) (D) (D)

(D) (D) (D)

763,381,231

(D) (D)

- (D) (D)

25,310,940 1,776,290

(D) 10,983,672 2,277,098

2,361,343

11,264,907 (D) (D) (D)

33,020,397

(D) 1,756,921

(D) (D)

(D) (D)

60,058,757 1,474,724

(D)

69,140,278 42,579,601

(D) (D)

120,232,218

(D) 41,702,950

(D) (D)

82,151,746 (D)

749,137

331,489 (D) (D) (D) (D)

(D) (D) (D)

31

- - 1 3 1

- - - 5 -

- - - - -

3 - - - -

- - 6 - 2

- 3 - - -

- - 1 1 5 -

-

- - - - -

- - -

6,415,068

- -

(D) (D) (D)

- - -

792,811 -

- - - - -

778,636 - - - -

- -

476,076 -

(D)

- 264,592

- - -

- -

(D) (D)

693,555 -

-

- - - - -

- - -

1,304,680

- -

(D) (D) (D)

- - -

158,836 -

- - - - -

166,636 - - - -

- -

106,745 -

(D)

- 52,836

- - -

- -

(D) (D)

126,490 -

-

- - - - -

- - -


1 -- Dairy Market News surveys more than 150 retailers, comprising nearly 16,000 individual stores, with online weekly advertised features.2 -- Date range reflects two-week period, however only one data collection per retailer is made during the period.

Dairy Market News Branch

AgriculturalMarketingService

National Dairy Retail ReportWebsites: http://www.marketnews.usda.gov/portal/da and http://www.ams.usda.gov/mnreports/dybretail.pdf

Volume 79- Number 40 Issued Biweekly Thursday, October 4, 2012

Advertised Prices for Dairy Products at Major Retail Supermarket Outlets 09/24 to 10/05

Retail ad features continue to display dairy products with fall themed advertising centered around football and baking being common. Higher prices are noted this period across the cheese categories, most likely reflecting the higher wholesales cheese prices. There is a slowing down of ice cream features, yet it remains the top featured individual item.

National butter prices this two-week period averaged $2.61 per 1-pound pack, down 2 cents from two weeks ago. Ad prices ranged from $1.99-3.99. Wholesale prices for Grade AA butter were $1.95 this week. Cheese prices were higher for 8 ounce blocks, at $2.21 +13 cent; 8 ounce shreds at $2.26 +19 cents; 1 pound block at $3.66, +12 cents; and 1 pound shred at $4.29, +62 cents. Cheese in 2 pound loaves at $4.75, were down 53 cents.

Yogurt features remain active. Greek yogurt in 4-6 ounce containers averaged 99 cents nationally, down 1 cent from two weeks ago. Some features were as low as 49 cents for national brand and 69 cents for store brand in surveyed stores. Conventional yogurt prices averaged 50 cents, down 2 cents.

Conventional milk’s national weighted average advertised price for half gallons this period, $2.27, is 14 cents below two weeks ago. Organic milk’s national weighted average advertised price for half gallons, $3.31, is up 8 cents, after declining 24 cents last period from four weeks ago. This results in an organic-conventional half-gallon milk advertised price spread of $1.04, up from $0.82 two weeks ago and matching the $1.04 four weeks ago.

Cheese Yogurt Ice cream Milk Cottage cheese

Sto

res

with

Ads

0K

5K

10K

15K

20K

25K

30K

35K

Sep 07 Sep 21 Oct 05

Top 5 Commodities Featured

http://www.marketnews.usda.gov/portal/da

http://www.ams.usda.gov/mnreports/dybretail.pdf

National Dairy Retail Report Vol 79 - No. 40Thursday, October 4, 2012 - Page 2

Wtd Avg - Simple weighted average

Cream cheese, 6%

Cheese, 32%

Cottage cheese, 6%

Ice cream, 15%

Yogurt, 24%

Top 5 Percentage of Total Conventional Ads

Cream cheese, 1%

Milk, 47%

Butter, 23%

Yogurt, 29%

Top 5 Percentage of Total Organic Ads



NATIONAL -- CONVENTIONAL DAIRY PRODUCTS

Commodity Type Pack Size

THIS PERIOD TWO WEEKS AGO

StoresWith Ads

Wtd AvgPrice

StoresWith Ads

Wtd AvgPrice

Butter 1 # 4419 2.61 4506 2.63

Cheese Natural Varieties 8 oz block 9991 2.21 5486 2.08

Cheese Natural Varieties 1 # block 4574 3.66 2393 3.54

Cheese Natural Varieties 2 # block 101 4.75 677 5.28

Cheese Natural Varieties 8 oz shred 11508 2.26 9667 2.07

Cheese Natural Varieties 1 # shred 5546 4.29 1878 3.67

Cottage cheese 16 oz 6189 1.70 2582 1.70

Cream cheese 8 oz 6010 1.51 5067 1.57

Flavored milk All fat tests half gallon 1173 2.42 788 2.63

Flavored milk All fat tests gallon 875 3.44 83 2.99

Ice cream 48-64oz 14480 3.16 18816 3.11

Milk All fat tests half gallon 1274 2.27 1524 2.41

Milk All fat tests gallon 1712 2.64 4638 2.39

Sour cream 16 oz 4866 1.45 7399 1.60

Yogurt Greek 4-6 oz 9596 .99 13702 1.00

Yogurt Greek 32 oz 857 3.58 248 3.98

Yogurt Yogurt 4-6 oz 12002 .50 9714 .52

Yogurt Yogurt 32 oz 914 2.05 1890 2.23

REGIONAL -- CONVENTIONAL DAIRY PRODUCTS


NORTHEAST U.S. SOUTHEAST U.S. MIDWEST U.S.

Price Range

Stores with Ads

Wtd AvgPrice

Price Range

Stores with Ads

Wtd AvgPrice

Price Range

Stores with Ads

Wtd AvgPrice

Butter 1 # 1.99-3.99 2300 2.70 2.29-3.00 356 2.72 1.99-2.99 546 2.44

Cheese Natural Varieties 8 oz block 0.99-3.99 2551 2.14 1.67-3.00 2366 2.37 1.49-3.00 1238 2.19

Cheese Natural Varieties 1 # block 1.98-6.99 3629 3.57 4.98 202 4.98 2.99-4.49 325 4.18

Cheese Natural Varieties 8 oz shred 1.00-3.99 2964 2.43 1.67-2.50 2231 2.25 1.49-2.50 1067 2.10

Cheese Natural Varieties 1 # shred 2.99-5.19 126 4.70 2.99-5.19 1829 4.52 2.99-4.49 878 3.58

Cottage cheese 16 oz 1.50-2.99 2260 2.13 1.00-1.99 203 1.58 1.00-1.77 502 1.52

Cream cheese 8 oz 0.75-2.50 2050 1.73 0.93-2.39 1286 1.56 0.98-1.68 984 1.21

Flavored milk All fat tests half gallon 1.99-2.50 711 2.31 0.99-3.00 375 2.63

Flavored milk All fat tests gallon 3.29-3.99 323 3.67 3.99 105 3.99 2.98-3.00 175 2.99

Ice cream 48-64oz 1.99-4.59 3532 2.93 1.88-5.50 2128 3.44 2.49-3.50 2472 2.93

Milk All fat tests half gallon 1.50-3.00 851 2.57 1.50-2.99 67 2.17 0.99 52 .99

Milk All fat tests gallon 4.29 46 4.29 2.50-2.99 425 2.88 2.29-2.50 750 2.41

Sour cream 16 oz 0.99-1.99 1545 1.48 1.34-2.00 888 1.60 0.99-1.79 843 1.42

Yogurt Greek 4-6 oz 0.79-1.25 2155 1.01 0.69-1.25 1380 .99 0.88-1.00 1525 .98

Yogurt Greek 32 oz 3.00-4.49 829 3.62

Yogurt Yogurt 4-6 oz 0.39-0.60 3205 .49 0.45-0.60 3308 .51 0.39-0.50 1337 .50

Yogurt Yogurt 32 oz 1.50-2.99 195 2.09 1.97 195 1.97 1.79-2.50 403 2.16




SOUTH CENTRAL U.S. SOUTHWEST U.S. NORTHWEST U.S.

Price Range

Stores with Ads

Wtd AvgPrice

Price Range

Stores with Ads

Wtd AvgPrice

Price Range

Stores with Ads

Wtd AvgPrice

Butter 1 # 2.28-3.00 503 2.50 2.39-2.99 432 2.50 2.50 282 2.50

Cheese Natural Varieties 8 oz block 1.49-3.49 981 2.19 1.88-2.50 1863 2.10 2.00-2.99 992 2.30

Cheese Natural Varieties 1 # block 2.99-3.99 389 3.38 4.49 29 4.49

Cheese Natural Varieties 2 # block 2.99-6.98 101 4.75

Cheese Natural Varieties 8 oz shred 1.49-2.50 1436 2.11 1.98-3.00 2793 2.26 2.00-4.49 1017 2.23

Cheese Natural Varieties 1 # shred 2.99-4.99 1069 3.71 2.99-4.99 1210 4.79 2.99-4.99 434 4.62

Cottage cheese 16 oz 1.00-1.99 829 1.28 0.99-1.99 1727 1.51 1.00-1.50 668 1.44

Cream cheese 8 oz 0.99-2.00 592 1.33 1.00-1.99 798 1.54 1.00-1.99 300 1.18

Flavored milk All fat tests half gallon 2.50 87 2.50

Flavored milk All fat tests gallon 2.99 43 2.99 3.29 229 3.29

Ice cream 48-64oz 2.00-4.50 1919 3.38 1.88-3.99 3355 3.22 2.00-4.99 1074 3.32

Milk All fat tests half gallon 2.49-2.50 122 2.50 0.88 64 .88 1.25 118 1.25

Milk All fat tests gallon 3.57 53 3.57 1.59-2.99 438 2.50

Sour cream 16 oz 1.00-1.50 779 1.18 1.00-2.00 500 1.43 1.00-2.00 311 1.70

Yogurt Greek 4-6 oz 0.89-1.00 1453 .99 0.49-1.00 2144 .98 0.99-1.00 939 1.00

Yogurt Greek 32 oz 2.50 28 2.50

Yogurt Yogurt 4-6 oz 0.45-0.60 999 .50 0.40-0.60 2955 .51 0.50 198 .50

Yogurt Yogurt 32 oz 1.67 93 1.67 1.99 28 1.99

NATIONAL -- ORGANIC DAIRY PRODUCTS


THIS PERIOD TWO WEEKS AGO

StoresWith Ads

Wtd AvgPrice

StoresWith Ads

Wtd AvgPrice

Butter 1 # 1737 3.99 2929 4.31

Cheese Natural Varieties 8 oz shred 26 3.59

Cream cheese 8 oz 56 2.59

Ice cream 48-64oz 56 5.99

Milk All fat tests half gallon 2705 3.31 4553 3.23

Milk All fat tests 8 oz UHT 805 1.00 3103 .98

Yogurt Greek 4-6 oz 507 1.12

Yogurt Yogurt 4-6 oz 560 .63 572 .82

Yogurt Yogurt 32 oz 1658 3.23 90 2.99

REGIONAL -- ORGANIC DAIRY PRODUCTS



Price Range

Stores with Ads

Wtd AvgPrice

Price Range

Stores with Ads

Wtd AvgPrice

Price Range

Stores with Ads

Wtd AvgPrice

Butter 1 # 3.79 34 3.79 3.99 488 3.99





Price Range

Stores with Ads

Wtd AvgPrice

Price Range

Stores with Ads

Wtd AvgPrice

Price Range

Stores with Ads

Wtd AvgPrice

Cheese Natural Varieties 8 oz shred 3.59 26 3.59

Cream cheese 8 oz 2.59 56 2.59

Milk All fat tests half gallon 3.89-4.49 418 4.08 2.99-3.39 627 3.13 2.99-3.49 485 3.23

Milk All fat tests 8 oz UHT 1.00 129 1.00

Yogurt Yogurt 4-6 oz 0.60 460 .60

Yogurt Yogurt 32 oz 2.99-3.49 432 3.45 2.99-3.49 513 3.37


SOUTH CENTRAL U.S. SOUTHWEST U.S. NORTHWEST U.S.

Price Range

Stores with Ads

Wtd AvgPrice

Price Range

Stores with Ads

Wtd AvgPrice

Price Range

Stores with Ads

Wtd AvgPrice

Butter 1 # 3.99 386 3.99 3.99 631 3.99 3.99 198 3.99

Milk All fat tests half gallon 2.49-4.99 669 3.30 2.69-3.29 279 2.96 2.99 227 2.99

Milk All fat tests 8 oz UHT 1.00 135 1.00 1.00 541 1.00

Yogurt Yogurt 4-6 oz 0.79 100 .79

Yogurt Yogurt 32 oz 2.99 386 2.99 2.99-3.00 209 3.00 3.00 118 3.00

NATIONAL -- CONVENTIONAL DAIRY PRODUCTS

NATIONAL BRANDS vs STORE BRANDS

NATIONAL BRANDS STORE BRANDS

Commodity Type Pack Size Low Price

High Price

Stores with Ads

Wtd AvgPrice

LowPrice

HighPrice

Stores with Ads

Wtd AvgPrice

Butter 1 # 2.50 3.99 1251 2.98 1.99 3.49 3168 2.47

Cheese Natural Varieties 8 oz block .99 3.99 5191 2.33 1.00 2.50 4800 2.09

Cheese Natural Varieties 1 # block 1.98 6.99 3414 3.61 2.99 4.49 1160 3.84

Cheese Natural Varieties 2 # block 6.98 6.98 35 6.98 2.99 3.98 66 3.56

Cheese Natural Varieties 8 oz shred 1.49 4.49 6682 2.42 1.00 2.50 4826 2.05

Cheese Natural Varieties 1 # shred 3.99 5.19 3304 5.03 2.99 4.49 2242 3.18

Cottage cheese 16 oz 1.50 2.99 2212 2.04 .99 2.99 3977 1.51

Cream cheese 8 oz .99 2.50 1455 1.98 .75 2.00 4555 1.37

Flavored milk All fat tests half gallon .99 2.50 519 2.40 1.99 3.00 654 2.45

Flavored milk All fat tests gallon 2.98 3.99 469 3.45 2.99 3.99 406 3.42

Ice cream 48-64oz 1.99 5.50 10457 3.28 1.88 3.99 4023 2.85

Milk All fat tests half gallon .99 3.00 907 2.54 .88 2.50 367 1.61

Milk All fat tests gallon 2.50 4.29 286 3.15 1.59 3.57 1426 2.53

Sour cream 16 oz 1.49 2.00 1426 1.78 .99 2.00 3440 1.32

Yogurt Greek 4-6 oz .49 1.25 6639 1.01 .69 1.00 2957 .96

Yogurt Greek 32 oz 2.50 4.49 857 3.58

Yogurt Yogurt 4-6 oz .39 .60 10056 .51 .39 .50 1946 .48

Yogurt Yogurt 32 oz 1.50 2.99 195 2.09 1.67 2.50 719 2.04



NATIONAL -- ORGANIC DAIRY PRODUCTS

NATIONAL BRANDS vs STORE BRANDS

NATIONAL BRANDS STORE BRANDS

Commodity Type Pack Size Low Price

High Price

Stores with Ads

Wtd AvgPrice

LowPrice

HighPrice

Stores with Ads

Wtd AvgPrice

Butter 1 # 3.99 3.99 631 3.99 3.79 3.99 1106 3.98

Cheese Natural Varieties 8 oz shred 3.59 3.59 26 3.59

Cream cheese 8 oz 2.59 2.59 56 2.59

Milk All fat tests half gallon 2.69 4.99 1166 3.61 2.49 3.49 1539 3.08

Milk All fat tests 8 oz UHT 1.00 1.00 805 1.00

Yogurt Yogurt 4-6 oz .60 .79 560 .63

Yogurt Yogurt 32 oz 2.99 3.49 993 3.39 2.99 3.00 665 2.99

REGIONAL DEFINITIONS

As used in this report, regions include the following states:

NORTHEAST U.S. Connecticut, Delaware, Massachusetts, Maryland, Maine, New Hampshire, New jersey, New York, Pennsylvania, Rhode Island and Vermont

SOUTHEAST U.S. Alabama, Florida, Georgia, Mississippi, North Carolina, South Carolina, Tennessee, Virginia and West VirginiaMIDWEST U.S. Iowa, Illinois, Indiana, Kentucky, Michigan, Minnesota, North Dakota, Nebraska, Ohio, South Dakota and WisconsinSOUTH CENTRAL U.S. Arkansas, Colorado, Kansas, Louisiana, Missouri, New Mexico, Oklahoma, and TexasSOUTHWEST U.S. Arizona, California, Nevada and UtahNORTHWEST U.S. Idaho, Montana, Oregon, Washington, and WyomingNATIONAL Continental United States



CME GROUP CASH MARKETS (10/12): BUTTER: Grade AA closed at $1.9300. The weekly average for Grade AA is $1.9310(-.0015). CHEESE: Barrels closed at $2.0600 and 40# blocks at $2.1000. The weekly average for barrels is $2.0600 (+.0120) and blocks, $2.1000 (+.0060). BUTTER HIGHLIGHTS: The butter market price adjusted this week after a sharp decline late last week at the CME Group. Demand for print butter is strong as handlers and end users prepare for the upcoming holiday season. Feature activity is fair to good in spite of the relatively high wholesale pricing. Part of the explanation is that butter has been bought/stored at lower prices or hedged at a lower cost point. In some cases, butter is also used as a loss leader. Interest from food service accounts is steady to trending higher. Butter production is moderate to heavy. Print butter is making up the majority of current output. Cream utilization has slowed seasonally for ice cream accounts. Other Class II items are seeing only incremental production increases. Butter holdings are fair to good to meet current and future demand. Producers are assessing stocks and projected production against buyers' needs with the plan to have minimal inventories when the holiday needs are filled. According to the NASS Dairy Products report, August butter production for the U.S. totals 129.1 million pounds, down 3.5% or 4.7 million pounds from August of last year. CHEESE HIGHLIGHTS: Wholesale cheese prices increased again this week as weekly average prices at the CME Group move higher. This week saw reduced activity at the CME Group as prices were steady and trading was reduced. Cheese production, according to NASS’ August Dairy Products report, was 0.5% higher than July 2012 and 2.6% higher than August 2011. Regionally, the Central region was higher while the West was marginally higher than a year ago and down 3.7% from the previous month. Tighter milk supplies in the West during August slowed production. Manufacturers report that current inventories are adequate for contracted needs with regular customers willing to take additional production when offered. Buyers are filling holiday orders with specialty cheeses in addition to traditional needs. Higher prices have slowed export demand, but assistance from the CWT program continues to move product offshore. Cheese sales at the CME Group for the week were light as trading slowed this week. Barrels closed unchanged for the week at $2.0600,

while blocks closed at $2.1000, also unchanged. FLUID MILK: Milk production is steady to higher in the Northeast and Mid-Atlantic regions, while Florida production is steady to lower. Farm milk volumes in the Midwest are near seasonal lows and component trends are slow to improve. California milk production is mainly steady and processing plants are running at seasonal low levels. Arizona milk output continues to move higher on a weekly basis, with Class I demand steady to occasionally higher. Plants in New Mexico are running on reduced seasonal schedules and milk production is trending steady. In the Pacific Northwest, milk production is trending near seasonal lows. Utah and Idaho milk supplies are mostly steady. Dairy plants are operating at less than full schedules. DRY PRODUCTS: Central and Eastern nonfat dry milk prices moved higher at the low end of the range due to contract indices, while the top end moved lower due to spot transactions. Pricing in the West also declined at the top of the nonfat dry milk price range and increased at the bottom. Central and east dry buttermilk prices are unchanged while in the West, the range narrowed at both ends and the mostly increased at the bottom. Dry whole milk prices are steady to firm in a lightly tested market. Dry whey prices moved up. The top and bottom of the range and mostly increased for both Central and Western dry whey. In the Northeast, the top of the range increased. Central and west lactose prices are steady, with the range and mostly series having a fairly wide spread due to quality and mesh size variables. Casein markets and prices are mixed as a new quarter resumes and quarterly contract prices adjust. INTERNATIONAL DAIRY MARKET NEWS (DMN): Western European milk production levels are trending seasonally lower. Milk deliveries into processing facilities are also tending to be declining. According to trade sources, milk output is lower versus a year ago in Germany, France, Netherlands and Ireland. Recent wet weather conditions have a lingering effect on pasturing and cropping. Some countries are noting declines in fat and protein levels of milk receipts, attributed to changing feeding patterns on dairies. Cost of production issues are a concern with farm milk pricing steady to incrementally higher. Finished dairy product prices are steady to


CME GROUP CASH TRADING

CHEESE: carload = 40,000 lbs., BUTTER: carlot = 40,000-43,000 lbs. *Sum of daily changes. # Weekly averages are simple averages of the daily closing prices for the calendar week. Computed by Dairy Market News for informational purposes. This data is available on the Internet at WWW.AMS.USDA.GOV/DAIRYMARKETNEWS.

INTERNATIONAL MARKET NEWS (PAGES 8 – 8B)

DAIRY FUTURES (PAGE 9) OCTOBER MILK SUPPLY AND DEMAND ESTIMATES (PAGES 10-11)

AUGUST FLUID MILK SALES (PAGE 12)

DAIRY GRAPHS (G1-G2) RELEASE DATES FEDERAL MILK ORDER PRICE DATA (attached)

*****SPECIALS THIS ISSUE*****

COMMODITY MONDAY TUESDAY WEDNESDAY THURSDAY FRIDAY :: WEEKLY :: WEEKLY OCT 08 OCT 09 OCT 10 OCT 11 OCT 12 :: CHANGE* :: AVERAGE# CHEESE BARRELS $2.0600 $2.0600 $2.0600 $2.0600 $2.0600 :: :: $2.0600 (N.C.) (N.C.) (N.C.) (N.C.) (N.C.) :: (N.C.) :: (+.0120) 40# BLOCKS $2.1000 $2.1000 $2.1000 $2.1000 $2.1000 :: :: $2.1000 (N.C.) (N.C.) (N.C.) (N.C.) (N.C.) :: (N.C.) :: (+.0060) NONFAT DRY MILK EXTRA GRADE $1.6350 $1.6350 $1.6350 $1.6350 $1.6350 :: :: $1.6350 (N.C.) (N.C.) (N.C.) (N.C.) (N.C.) :: (N.C.) :: (N.C.) GRADE A $1.6600 $1.6600 $1.6600 $1.6300 $1.6000 :: :: $1.6420 (N.C.) (N.C.) (N.C.) (-.0300) (-.0300) :: (-.0600) :: (-.0180) BUTTER GRADE AA $1.9250 $1.9400 $1.9300 $1.9300 $1.9300 :: :: $1.9310 (+.0650) (+.0150) (-.0100) (N.C.) (N.C.) :: (+.0700) :: (-.0015)



CONTINUED FROM PAGE 1 slightly weaker. Currency fluctuations have only had a minimal impact on exporting in recent weeks, but the current level versus the USD is being noted. Butter exports are light and moving best to established accounts. There is butter coming out of the PSA program to supplement supplies. SMP and WMP prices are slightly lower with uneven demand into a competitive world market situation. Interest in dry whey is light to fair with current pricing levels stimulating demand. Eastern Europe milk production trends are moving lower and approaching the low point of the production cycle. Most countries report milk production levels are above a year ago with Poland being 5% higher in August versus a year earlier. The effects of weather are currently having minimal impact on milk production across the region. Dairy product production cycles are tending to be at seasonal low levels and stocks of finished dairy products are light. Milk production in New Zealand is at or very near peak levels in many regions. Milk producers and handlers are indicating that a strong finish to the previous season, good cow conditioning, and a favorable start to the current season are all contributing factors to a positive season thus far. Milk handlers are projecting that milk output will probably not be as strong as last season, but will be in the 3 - 4% increase range from two years ago. The Australian milk production season is well underway and will peak in about three weeks. Weather conditions in Australia may again be a factor for some production regions of Victoria. Northern Victoria is experiencing a positive start to the season with volumes reported to be running 6 - 7% ahead of last year at this time. In the Southeast, Gippsland region, wet conditions prevailed for much of last season and it appears that these conditions might be negatively impacting output again this year. Elsewhere in Victoria, conditions are basically normal and the milk flow is seasonally building. Australian producers and handlers are continuing to project a positive season with most anticipating a 1 - 2% increase over two years ago with some reaching to the 3% level. Milk handlers are hopeful that peak levels will be able to be maintained for an extended period of time, but peak levels are typically fully dependent on weather patterns. In both New Zealand and Australia, manufacturing facilities are all up and running. Casein operations, especially in New Zealand, are also in full swing and will remain at those levels as long as milk volumes are plentiful. Milk volumes are clearing to all manufacturing facilities, thus there is basically no tilt for milk volumes at this time, although butterfat products are reported to be in the tightest position. Stock levels of manufactured dairy products are basically fully committed at this time. Some manufacturers do have uncommitted volumes, but are often holding these volumes to be flexible with their other commitments. Traders and handlers do indicate that they continue to receive new inquiries from potential buyers, but often are not able to fulfill the inquiry. At the present time, most all sales activity is centered around regular and ongoing customer needs. Average prices at the last g/DT auction on October 2 were generally lower. Buttermilk and whole milk powder prices were firmer with all other traded product prices easing. Although overall product prices for skim milk powder were lower, U.S. sourced skim milk powder, for November delivery, was 6.4% higher at $3,707 per MT. The next event, #78, will be held on Tuesday, October 16. OCTOBER MILK SUPPLY AND DEMAND ESTIMATES (WAOB): The 2012 milk production forecast is reduced from last month, as slower growth in milk per cow more than offsets a slower expected decline in cow numbers. Higher forecast milk prices in late 2012 and into 2013 are expected to slow the rate of decline in cow numbers and help support higher growth in milk per cow in 2013. Thus, the production forecast for 2013 is raised. Imports are forecast higher for both 2012 and 2013. Fat basis exports for 2012 are lowered but skim-solids exports are forecast higher. Exports for 2013 are

unchanged from last month. Product prices are forecast higher for 2012 and 2013 as recent strength in dairy product demand is expected to carry into 2013. Forecasts for butter, cheese, nonfat dry milk, and whey are raised from last month. With higher product prices, both the Class III and Class IV price forecasts are raised. The all milk price is forecast at $18.50 to $18.60 for 2012 and $19.00 to $19.90 for 2013. AUGUST FLUID MILK SALES (AMS): During August, 4.5 billion pounds of packaged fluid milk products is estimated to have been sold in the United States. This was 0.5 percent lower than August 2011. After adjusting for calendar composition, sales in August 2012 were 0.5 percent lower than August 2011. Estimated sales of total conventional fluid milk products decreased 0.9 percent from August 2011 and estimated sales of total organic fluid milk products increased 9.8 percent from a year earlier.

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DAIRY MARKET NEWS, OCTOBER 8 -12, 2012 - 2 - VOLUME 79, REPORT 41

CME GROUP

NORTHEAST

The CME Group butter price increased $0.0150 on Tuesday to close at $1.9400. Butter price increases over the past 2 trading sessions have recovered $0.0800 of the $0.0925 decline that occurred Friday. Trading has been fairly brisk with 20 loads transacted in the last 3 sessions. Cream supplies were readily available following Friday’s steep price decline in butter. Heavy volumes of cream went to the churn and added to butter inventories. Demand for butter has improved, but is lagging behind last year’s levels. Some butter makers have more than adequate inventories and are hesitant to add to current supplies. According to the National Dairy Retail Report, retail butter ads in the Northeast totaled 2,300, 52% of the total national ad count of 4,419 and the highest number for any region. The weighted average price for a 1 lb. package of butter in the Northeast was $2.70, 9 cents more than the national weighted average price, but 15 cents less than the previous reporting period. According to NASS, cumulative 2012 butter production through August was 4.3% above cumulative year production for the same period for 2011. August’s monthly U.S. butter production totaled 129.1 million pounds, down 3.1% from July and 3.5% less compared to August 2011. Atlantic region butter production in August totaled 7.5 million pounds, down 21.0% from July, but 12.5% higher than August 2011. Current bulk butter prices range from 4-8 cents over the market based on the CME Group with various time frames and averages used.

CENTRAL

The butter market tone remains firm although the cash price declined 9 1/4 cents last Friday. Much of the decline was recovered in early week trading (8 cents) and a 1 cent decline at midweek has the cash price settling at $1.9300. Many butter producers and handlers were surprised at the decline last week and anticipated adjustments to occur. Churning schedules are seasonally active, although cream supplies are tightening. Class II cream based holiday item production is seasonally strong and building. These products are absorbing increasing volumes of available cream and are expected to be active into early December. Many butter producers and handlers are indicating that they are getting a pretty good picture of end of year butter needs. Many are indicating that their retail

orders are being enhanced by scheduled feature activities at various times during the upcoming holiday period. Food service buyers are also preparing for the upcoming holiday season by placing heavier orders for now through late December. Exports out of the country continue with the assistance of the CWT program. The CWT program recently awarded bonuses for 312 MT (687,842 pounds) of butter for export now through the first quarter of 2013. Bulk butter prices range from flat to 3 cents over various pricing bases and averages per pound.

WEST

Western butter prices are mixed this week as pricing models react to last week’s drop in butter prices. Prices at the CME Group have returned to near last week’s average price. Some manufacturers feel that the price break was premature as demand for butter remains very good. Print butter production for retail and food club sales are active. Additional interest is coming from the food service sector as restaurant traffic has picked up. Manufacturers are keeping a close eye on stored inventories and current production schedules to balance needs through the upcoming holiday season. Prices for bulk butter range from 2 cents under to 4 1/2 cents under the market, based on the CME with various time frames and averages used. Wednesday’s close on the CME Group exchange for butter is down $.0100 to close at $1.9300. After last Friday’s drop of $.0925 at the CME Group, the market has regained much of the loss with prices $.0800 higher on Monday and Tuesday. Buyers are taking advantage of the price movements to purchase loads. The market has sold thirteen loads as of Wednesday’s close. According to the NASS Dairy Products report, August butter production for the U.S. totals 129.1 million pounds, down 3.5% or 4.7 million pounds from August of last year. Cumulative output through August for the U.S. is 1,258.9 million pounds, up 4.3% or 51.4 million pounds from the same period in 2011. August output in the Western region totals 69.3 million pounds, down 3.8% or 2.8 million pounds less than August of 2011. The West produced 53.6% of the butter in the U.S. in August.

NATIONAL DAIRY PRODUCTS SALES REPORT U.S. AVERAGES AND TOTAL POUNDS

WEEK ENDING October 6, 2012

BUTTER CHEESE 40# BLOCKS

CHEESE BARRELS

38% MOISTURE DRY WHEY NDM

1.9070 4,160,355

1.9586 11,755,783

1.9963 10,223,900

0.6110 6,590,899

1.4409 12,118,976

Further data and revisions may be found on the internet at: http://www.ams.usda.gov/AMSv1.0/DairyProductMandatoryReporting

MONDAY, OCTOBER 8, 2012 CHEESE -- SALES: NONE; LAST BID UNFILLED: NONE; LAST OFFER UNCOVERED: NONE NONFAT DRY MILK -- SALES: NONE; LAST BID UNFILLED: NONE; LAST OFFER UNCOVERED: NONE BUTTER -- SALES: 4 CARS GRADE AA: 1 @ $1.8900, 1 @ $1.9025, 1 @ $1.9100, 1 @ $1.9250; LAST BID UNFILLED: 1 CAR GRADE AA @ $1.9250; LAST OFFER UNCOVERED: NONE TUESDAY, OCTOBER 9, 2012 CHEESE -- SALES: NONE; LAST BID UNFILLED: NONE; LAST OFFER UNCOVERED: 1 CAR 40# BLOCKS @ $2.1000 NONFAT DRY MILK -- SALES: NONE; LAST BID UNFILLED: NONE; LAST OFFER UNCOVERED: 1 CAR GRADE A @ $1.6600 BUTTER -- SALES: 3 CARS GRADE AA @ $1.9400; LAST BID UNFILLED: NONE; LAST OFFER UNCOVERED: 1 CAR GRADE AA @ $1.9475 WEDNESDAY, OCTOBER 10, 2012 CHEESE -- SALES: NONE; LAST BID UNFILLED: 1 CAR 40# BLOCKS @ $2.0850; LAST OFFER UNCOVERED: 1 CAR 40# BLOCKS @ $2.1000 NONFAT DRY MILK -- SALES: NONE; LAST BID UNFILLED: NONE; LAST OFFER UNCOVERED: NONE BUTTER -- SALES: 6 CARS GRADE AA: 2 @ $1.9375, 2 @ $1.9300, 1 @ $1.9200, 1 @ $1.9300; LAST BID UNFILLED: NONE; LAST OFFER UNCOVERED: 1 CAR GRADE AA @ $1.9400 THURSDAY, OCTOBER 11, 2012 CHEESE -- SALES: 1 CAR 40# BLOCKS @ $2.1000; LAST BID UNFILLED: NONE; LAST OFFER UNCOVERED: 1 CAR 40# BLOCKS @ $2.1100 NONFAT DRY MILK -- SALES: NONE; LAST BID UNFILLED: NONE; LAST OFFER UNCOVERED: 1 CAR GRADE A @ $1.6300 BUTTER -- SALES: NONE; LAST BID UNFILLED: NONE; LAST OFFER UNCOVERED: 1 CAR GRADE AA @ $1.9400 FRIDAY, OCTOBER 12, 2012 CHEESE -- SALES: 2 CARS 40# BLOCKS @ $2.1000; LAST BID UNFILLED: 1 CAR BARRELS @ $2.0500; LAST OFFER UNCOVERED: NONE NONFAT DRY MILK -- SALES: NONE; LAST BID UNFILLED: NONE; LAST OFFER UNCOVERED: 1 CAR GRADE A @ $1.6000 BUTTER -- SALES: NONE; LAST BID UNFILLED: NONE; LAST OFFER UNCOVERED: 2 CARS GRADE AA @ $1.9300

BUTTER MARKETS


CHEESE MARKETS

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NORTHEAST CME Group cheese prices were unchanged Tuesday with barrels closing at $2.0600 and blocks closing at $2.1000. In the last 4 trad-ing sessions prices for barrels and blocks have remained unchanged in light trading. Cheese production has noted some marginal in-creases as the milk supply has slightly improved in some areas of the Northeast. Cheese makers are attempting to increase produc-tion of mozzarella and provolone following good orders from food service, pizza manufacturers and retail outlets. Current production is filling orders with marginal additions to inventories. Cheese wholesalers are concerned that the cheese price increases experi-enced over the past few weeks will bring about reduced retail sales. Higher cheese prices have also lowered export demand. According to the latest NASS report, total cheese production for August in New York was 62.9 million pounds, 5.2% more than July, but 2.3% less than August, 2011. Pennsylvania produced 33.1 million pounds in August, 6.5% more than one month earlier, but 7.3% less than one year ago. Vermont produced 11.1 million pounds, 6.0% more than last month and 3.9% more than August 2011. The total of all cheese production for August in the Atlantic region was 116.9 million pounds, up 6.1% from July, but 2.4% less compared to the same period last year. Atlantic region cheese production ac-counted for 13.2% of total U.S. production. Total U.S. cheese pro-duction in August totaled 884.4 million pounds, 0.5% more than July and 2.6% more than August 2011. Cumulative 2012 U.S. Cheese production through August was 2.7% greater than compara-ble 2011 production. Focusing on Italian cheese, New York pro-duction in August totaled 28.9 million pounds, 0.4% more than July, but 4.3% less than August 2011. Pennsylvania produced 18.3 million pounds in August, 5.4% less than July and 15.2% less than August 2011. The Atlantic region in August, produced 55.3 mil-lion pounds of Italian cheese, 0.9 less than July and 6.6% less than the same period last year.


Cheddar 40# Block : 2.4975-2.7825 Process 5# Sliced : 2.2650-2.3850 Muenster : 2.5175-2.8775 Grade A Swiss Cuts 10 - 14# : 3.4850-3.8075

MIDWEST CME cheese prices are unchanged through Wednesday this week, with no sales, leaving blocks at $2.10 and barrels at $2.06. The combined facts of these price levels and the release last week of Dairy Products showing total August cheese production to be up from July, even during a hot and dry summer, causes some observ-ers to pause as they ponder anticipated cheese market pricing trends. A number of manufacturers in the region report that cheese production is in good general balance with sales. Orders are being met and if extra cheese can be occasionally manufactured, continu-ing buyers are ready customers. Little motivation exists to look for additional milk beyond the general range of orders, due to continu-ing class premiums. Dairy Products (NASS) shows that central state total cheese production during August was up 2.9% from July while national cheese production was up 0.5%. Compared with August last year, Central cheese production was up 6.4% compared with 2.6% nationally. Total cheese production during August in

the individually listed Midwest states and percentage of the Mid-west state total, includes Wisconsin, 233.7 million pounds, 67.1%; Minnesota, 50.8 million pounds, 14.6%; South Dakota, 22.0 million pounds, 6.3%; Iowa, 20.0 million pounds, 5.7%; Ohio, 15.6 million pounds, 4.5%; and Illinois, 6.2 million pounds, 1.8%. Italian cheese production nationally in August, 370.4 million pounds, was up 0.5% from July and up 1.9% from August 2011. Wisconsin leads the states in producing Italian cheese, with 118.7 million pounds, 9.2% higher than July and 7.3% higher than August last year. While California is second with 112.5 million pounds, pro-duction was down 4.2% from July and down 1.6% from August 2011. Observers note that the aging required of Italian varieties and the continuing expansion of cold storage capacity in the Mid-west and Wisconsin in particular, helps expand Italian cheese pro-duction in Wisconsin. Wisconsin led the states in American cheese production during August with 33.8% of production for the listed states, 68.4 million pounds toward the national total of 353.5 mil-lion pounds, down 0.7% from July but 4.5% above August last year. Of the three largest American cheese producing states during August this year, Wisconsin was up 4.9% from July, Idaho was up 3.5% and California was up 1.9%. Wisconsin also led the states in cheddar cheese production during August with 27.7% of production for the listed states, 45.1 million pounds toward the national total of 250.7 million pounds, down 3.1% from July but 3.1% above Au-gust last year. Cooperatives Working Together (CWT) has accept-ed requests for export assistance to sell 1.056 million pounds (479 metric tons) of Cheddar and Monterey Jack cheese. The product will be delivered October 2012 through April 2013. During 2012, CWT has assisted member cooperatives in making export sales of Cheddar, Monterey Jack and Gouda cheese totaling 96.9 million pounds.

WISCONSIN WHOLESALE SELLING PRICES: DELIVERED, DOLLARS PER POUND (1000 - 5000 POUNDS MIXED LOTS)

Process American 5# Loaf : 2.2375-2.9425 Brick And/Or Muenster 5# : 2.4850-3.0450 Cheddar 40# Block : 2.4850-3.4700 Monterey Jack 10# : 2.4550-3.4700 Blue 5# : 2.7500-3.7350 Mozzarella 5 - 6# (Low Moisture, Part Skim) : 2.3300-3.5700 Grade A Swiss Cuts 6 - 9# : 3.0050-3.1225

WEST Western wholesale cheese prices continued to move higher as weekly average prices move upward. The market is mostly steady to firm overall as supplies are adequate for contracted demand with additional supplies harder to acquire. Demand remains very good into retail avenues. Buyers are filling holiday orders for specialty cheeses along with traditional varieties for retail needs. Supplies are adequate, although tight in some instances as cheese plants in the West are finding milk harder to source. Export sales are being aided by assistance from the CWT program again this week with 5.9 million pounds of cheddar and Monterey Jack being offered. Cheese prices at the CME Group are unchanged on Wednesday for both blocks and barrels. Barrels closed Wednesday at $2.0600 and



CHEESE MARKETS

WEEKLY COLD STORAGE HOLDINGS - SELECTED STORAGE CENTERS IN THOUSAND POUNDS - INCLUDING GOVERNMENT STOCKS

BUTTER : CHEESE : 10/08/12 10,933 : 119,237 10/01/12 10,968 : 119,894 CHANGE -35 : -657 % CHANGE -0 : -1

-3A-


blocks closed at $2.1000. Sales have been nonexistent at the CME Group so far this week. According to the NASS Dairy Products report, total cheese production in the U.S. in August reached 884.4 million pounds, up 2.6% or 22.5 million pounds from last year. Cumulative total cheese output for the U.S. through August is 7.2 billion pounds, up 2.7% or 190.1 million pounds from 2011. Au-gust total cheese production in the Western region was 365.1 mil-lion pounds, up 0.3% or 1.2 million pounds from August 2011. The West produced 41.3% of all the cheese in the U.S. in August. Swiss output for the U.S. in August is 25.9 million pounds, down 8.6% from last year.


Process 5# Loaf : 2.1700-2.4275 Cheddar 40# Block : 2.2225-2.5750 Cheddar 10# Cuts : 2.4025-2.6225 Monterey Jack 10# : 2.4125-2.5725 Grade A Swiss Cuts 6 - 9# : 3.0625-3.4925

FOREIGN The weekly average block price moved higher on the CME Group, which increased domestic wholesale cheese prices by $0.0375. Domestic Swiss prices increased 12 cents following Wednesday's Class III price release. Imported cheese prices were unchanged. Foreign cheese inventories are more than adequate, especially for Italian type cheeses. Import cheese wholesalers continue to report good orders for cheese, prompting them to make additional pur-chases and resupply their inventories. According to FAS, October 15 is the last transmission date for all applications for calendar year 2013 licenses. Exporting countries that are designating U.S. im-porters for calendar year 2013 must submit their designations to FAS by October 31, 2012. According to the latest NASS report, domestic Parmesan production during August totaled 23.4 million pounds, 14.1% more than July and 21.3% more than August 2011. Provolone production during August totaled 31.9 million pounds, 7.3% more than July and 6.6% more than August 2011. Romano production during August totaled 3.5 million pounds, 2.9% less than July, but 34.1% more than August 2011. Swiss production during August totaled 25.9 million pounds, 3.5% less than July and 8.6% less than August 2011.

WHOLESALE SELLING PRICES: FOB DISTRIBUTORS DOCK DOLLARS PER POUND (1000 - 5000 POUNDS, MIXED LOTS)

: NEW YORK VARIETY : IMPORTED : DOMESTIC : : Blue : 2.6400-5.2200 : 2.6375-4.1250* Gorgonzola : 3.6900-6.1900 : 3.1400-3.5950* Parmesan (Italy) : -0- : 4.0275-6.1175* Provolone (Italy) : 3.4400-5.5800 : 2.6800-2.8375* Romano (Cows Milk) : -0- : 3.8275-5.9775* Sardo Romano (Argentine) : 2.8500-3.9800 : -0- Reggianito (Argentine) : 3.2900-4.2900 : -0- Jarlsberg-(Brand) : 2.9500-5.2900 : -0- Swiss Cuts Switzerland : -0- : 3.5775-3.9000* Swiss Cuts Finnish : 2.5900-2.8500 : -0- * = Price change.



EAST SPOT SHIPMENTS OF GRADE A MILK INTO OR OUT OF FLORIDA & SOUTHEASTERN STATES

Milk production is steady to slightly higher in the Northeast and Mid-Atlantic regions. Class I demand remains strong and is limiting the manufacturing milk supply. Most balancing plant managers report that milk supplies are adequate to cover fluid contracts with limited excess supplies. Rains covered much of the Eastern region this past week and slowed harvest activities. Warm days and nights in Florida have checked milk production increases and in some areas lowered production. Class I demand remains very strong and may yet increase further when seasonal residents return in the coming weeks. The limited milk production increases and good Class I demand prompted 115 spot loads to be imported this week. Milk production continues to increase marginally in the Southeast region. Class I demand is steady and kept the number of import loads to 25 this week. Manufacturing milk supplies are being kept to their contract minimums. Load rejections were nominal for this week. Last Friday’s decline On the CME Group butter market, down $0.0925, caused cream availability to increase dramatically as many cream buyers differed purchases for the following week to take advantage of lower cream pricing. Some transactions were completed with the stipulation that the price be determined by date of purchase pricing, rather than the weekly CME butter average. That trend was altered somewhat by the CME Group butter price increases on Monday and Tuesday, which reclaimed $0.0800 of Friday’s decline. Cream supplies were more than ample to meet the growing demand from cream based product manufacturers with some Eastern cream loads being shipped to the Midwest. Multiples remained in a narrow range this week with the range being 128-132. Condensed skim milk supplies have tightened this week. Some balancing plants had barely adequate supplies to cover their fluid contracts and as a result, Class IV production is very limited. Those looking for additional loads had to pay premiums to secure the transaction. Supplies are moving through contracts with most contract volumes at minimum levels. Spot sales of condensed skim are light as plants with excess supplies are not inclined to sell condensed skim, because of their concern to meet their future nonfat dry milk commitments. According to NASS, ice Cream production in the Atlantic region for August totaled 15.4 million gallons, 1.6% more than July, but 3.5% less than August 2011. U.S. Yogurt production (plain and flavored) for August totaled 389.1 million pounds, up 9.2% from July and 4.5% more than for the same period last year. Cumulative 2012 production through August totaled 3,001.9 million pounds, 3.5% higher than through August 2011.

FLUID CREAM AND CONDENSED SKIM PRICES IN TANKLOT QUANTITIES SPOT PRICES OF CLASS II CREAM, DOLLARS PER LB. BUTTERFAT: F.O.B. producing plants: Northeast - 2.4736-2.5509 F.O.B. producing plants: Upper Midwest - 2.3770-2.5509

PRICES OF CONDENSED SKIM, DOLLARS PER LB. SOLIDS, F.O.B. PRODUCING PLANTS: Northeast - Class II - includes monthly formula prices - 1.41 - 1.55 Northeast - Class III - spot prices - 1.52 - 1.57

MIDWEST

Milk production in the Central region is following expected levels. Farm milk volumes are near seasonal lows. While milk handlers expect volumes to begin to improve, the turnaround has been slow to materialize. Component trends are also slow to improve. Poor quality feeds are being blamed in some cases. Fluid demand for Class I usage is steady and some extra cream is available from these plants. Handlers are mostly utilizing any excess local milk within the region. Class III demand for spot loads is uneven as manufacturers weigh price against current cheese orders. Spot load prices vary from $1.00 - $2.50 over market for most sales. Cream supplies are increased as ice cream demand has begun to slow for the season. Increased Class II demand for dips and cream products, is taking up much of the extra product. Butter manufacturers are also pleased to see increased cream availability. Cream prices are softer in response to increased supplies. Dairy farmers are busy with harvest of crops and the last cut for forages. Dry weather has aided with harvest progress, but farmers are still looking for moisture to move onto fall tillage operations. Grain yields are variable across the region with dairies assessing supplies and costs of feed.

WEST CALIFORNIA milk production is mainly steady with recent weeks. Weather conditions are generally neutral at the present time. Conditions are cooling seasonally. There continue to be impacts being seen because of financial and feeding considerations. Cow slaughter numbers are higher than historical levels. Slaughter cow prices are high and interest in buying marginal cows is limited with higher costs of inputs making profitability more challenging even with top end cows. Borrowing to purchase cows is more intricate than in past years. Processing plants are running at seasonal low levels. The good news is that facilities have had a good period for planned maintenance. The November 2012 Class 1 prices in CALIFORNIA range from $23.17 in the north to $23.44 in the south. The statewide average Class 1 price based on production is $23.19. The average is $2.62 higher than October 2012 and $2.91 more than November 2011. ARIZONA milk output continues to move higher on a weekly basis. Conditions have become more favorable for milk cows. Limits on production remain on the feed and financial side of the equation. Plants are doing well in handling the milk supplies. Class I demand is steady to occasionally higher. NEW MEXICO milk production is trending steady. Processing plants are running on reduced, seasonal schedules. Milk is moving to service fluid accounts and milk supply contracts. Western CREAM markets are unsettled. The decline in butter prices late last week, followed by price recovery, and then a slight decline at midweek are indicative of the unsettledness. There are higher volumes of cream offered onto the market this week, but demand is less aggressive. Extra cream is being absorbed into butter operations as they prepare for holiday print needs. Class 2/II interest is mixed. Ice cream demand is light to fair from regular accounts. Demand is showing incremental improvement for cream cheese, sour cream, whips, and other categories as the fall season builds towards the holidays. At the CME Group, Grade AA butter price closed at $1.9300 on Wednesday, October 10, down 2 cents from a week ago. Cream multiples moved lower in the 118 to 132 range, and vary depending on basing points and averages.


THIS WEEK LAST WEEK

IN OUT IN OUT IN OUT

115

0 98 0 98 0

25 0 25 0 0 0

LAST YEAR

FLORIDA

SOUTHEAST STATES

-4-



CONTINUED FROM PAGE 4 Milk production in the PACIFIC NORTHWEST is nearing seasonal lows. Fall weather is conducive to increased milk production, but milk supplies remain mostly steady. Class I needs are steady with schools in session, further tightening manufacturing supplies. Milk processors are using extra time from lower production schedules to work on maintenance issues. Harvesting of grain and forage crops is continuing with dairies acquiring feed supplies for the upcoming winter. Costs of feed are serious concerns to dairies as they try to maintain profitability. UTAH and IDAHO milk supplies are mostly steady with recent weeks’ volumes. Dairy processing plants are operating at less than full schedules, but are taking time for construction and maintenance projects. Dairy farmers continue to assess production costs versus milk price to determine future plans.

-4A-

DAIRY MARKET NEWS, OCTOBER 8-12, 2012 VOLUME 79, REPORT 41



NONFAT DRY MILK - CENTRAL AND EAST CENTRAL: Prices for nonfat dry milk in the Central region were mixed as the low end of the range was higher in response to contract pricing indices and spot prices moved the top end of the range lower as buyers were able to source loads at lower prices than previous week’s. Production of NDM remains mostly steady as cheese demand continues to outbid butter/powder buyers for available milk supplies. Trading was limited with offers from resellers being sent to potential buyers. Many end users are holding sufficient supplies as to not be forced into the spot market. Inventories are described as being in balance for current demand. EAST: Nonfat dry milk price ranges continued to narrow this week as transactions based on price indices moved the low end of the ranges higher, while spot sales lowered the upper end of the low heat range and held steady on the high heat range. Manufacturing milk supplies remain tight in the East, limiting milk volumes moving through dryers. Current production is moving through contracts. Most inventories are being worked lower, due to the limited production schedules. Some plants are continuing to focus on high heat and specialty drying. Buyers looking for loads are having success through resale opportunities at prices above contract pricing. Demand is unsettled as numerous buyers are uneasy with current market conditions and are only purchasing for immediate needs. Some plant managers continue to be concerned about their ability to meet their future commitments. F.O.B. CENTRAL/EAST: Includes EXTRA GRADE and GRADE A LOW/MEDIUM HEAT: 1.5100 - 1.6300 MOSTLY: 1.5100 - 1.6000 HIGH HEAT: 1.5600 - 1.7900

NONFAT DRY MILK - WEST Pricing levels for Western low/medium heat nonfat dry milk prices continue to narrow as prices move higher at the bottom of the range and move lower at the top end of the range. The market undertone is unsettled. Producer offerings are generally light into the spot market and are being met by a more reflective demand. Buyers have moved from needing to secure product to having become more price sensitive. More offerings are coming from the resale market and from buyers who have made index based purchases. Export interest is often slow to gain new business. Pricing points are relatively high when compared to products out of the Oceania region. Drying schedules continue to reflect the seasonal declines in milk production in the region and the good pull of other milk buyers. Stocks of low heat are mostly light at the producer level. High heat prices narrowed. The market undertone is steady to slightly firm. Offerings remain light. Producers are often behind on past orders and some are not getting the milk supplies to catch up. Top end pricing came under pressure seen from the low heat side. High heat stocks remain light. F.O.B. WEST: Includes EXTRA GRADE and GRADE A LOW/MEDIUM HEAT: 1.4000 - 1.6000 MOSTLY: 1.4400 - 1.5500 HIGH HEAT: 1.4400 - 1.6400

DRY BUTTERMILK - CENTRAL AND EAST CENTRAL: Dry buttermilk prices in the Central region are steady. Recent price increases have had little effect on contract deliveries, but spot activity has slowed as buyers question how much they need the higher priced product. Buyers that can wait for lower prices, are taking a wait and see attitude as to current prices. Increased butter production in the region and declining demand for condensed buttermilk to ice cream plants have dryers increasing schedules. Spot sales activity was light this week. EAST: Prices for dry buttermilk were unchanged this week in light trading. Production of dry buttermilk is holding steady at seasonally increased levels as butter makers are building inventories for the upcoming holiday season. Current production is moving through contracts and adding to inventories. Spot sales of dry buttermilk are light as buyers are very wary of the current market. Overall demand marginally declined as cooler weather in the East further dampened the already reduced demand coming from ice cream manufacturers. The market undertone is unsettled as many buyers are on the sidelines waiting for a clearer picture of the market. F.O.B. CENTRAL/EAST: 1.4500 - 1.6300

DRY BUTTERMILK - WEST Western dry buttermilk prices are mixed this week. The upticks in pricing at the bottom of the range and mostly price series are reflecting higher pricing averages and market price momentum moving higher in recent weeks. The downward pressure on the higher prices has resulted in prices coming off the highest levels and the top end of the range series is lower. Buyers became less willing to pay the top dollar. Production of dry buttermilk is uneven across manufacturers. Dryer times are available but not impacting the product flow. Producers' inventories are mostly light as they attempt to catch up with contracted volumes. F.O.B. WEST: 1.4000 - 1.5400 MOSTLY: 1.4200 - 1.4800

DRY WHOLE MILK - NATIONAL

Dry whole milk prices are steady to firm in a lightly tested market. Manufacturers continue to fill contract obligations with limited spot load availability. Production is geared to finishing annual contract obligations and preparing to negotiate contracts for the 2013 production year. Confectionary accounts are continuing to use product as they prepare for holiday season needs. F.O.B. PRODUCING PLANT: 1.6000 - 1.7550

CALIFORNIA MANUFACTURING PLANTS - NDM WEEK ENDING PRICE TOTAL SALES SALES TO CCC October 5 $1.3974 6,705,234 0 September 28 $1.3664 4,932,619 0 Prices are weighted averages for Extra Grade and Grade A Nonfat Dry Milk, f.o.b. California manufacturing plants. Prices for both periods were influenced by effects of long-term contract sales. Total sales (pounds) include sales to CCC. Compiled by Dairy Marketing Branch, California Department of Food and Agriculture.

-5-



DRY WHEY - CENTRAL

Dry whey prices in the Central region are higher across both the range and the mostly series. The higher prices are due to increased contract indices moving the market. Buyers and sellers alike are feeling that the market has neared a plateau. Increased spot availability from brokers has limited movement upward. Activity this week is described as quiet, with many of the participants taking a cautious attitude for product above immediate needs. Whey production is increasing slowly as cheese plants are busy meeting holiday commitments. Manufacturing conditions are also better for production of dry whey powder. Export demand is good with currency fluctuations affecting pricing strategies. Current whey stocks are adequate to fill most needs. F.O.B. CENTRAL: .5650 - .6350 MOSTLY: .5800 - .6150 F.O.B. CENTRAL: ANIMAL FEED MILK REPLACER: .4350 - .5850

DRY WHEY - NORTHEAST

Dry whey prices continued to work higher as transactions based on price indices increased the upper end of the range. Cheese and dry whey production are steady and below levels most manufacturers’ desire, due to the tight manufacturing milk supply. Current production is moving through contracts with little being added to inventories. Spot market and resale activity in the East remains very light. Demand has softened as seasonal production transitions from ice cream to baking products. Export interest remains improved compared to recent weeks. The market undertone is steady to firm. F.O.B. NORTHEAST: EXTRA GRADE AND GRADE A: .6250 - .6500

DRY WHEY - WEST Western dry whey prices continue to move higher this week. Contracted prices are following various indices higher, while the spot market is closer to a steady market. Increased availability of whey from resellers has tempered some of the price increases. Cheese production in the West is mostly steady to weak as milk supplies are tighter than previous years. This is affecting whey volumes from manufacturers as supplies are utilized by various whey stream products. Spot market buyers are finding product through brokers at prices near to slightly above contract levels. NONHYGROSCOPIC: .5900 - .6350 MOSTLY: .6000 - .6250

WHEY PROTEIN CONCENTRATE - CENTRAL AND WEST

Prices for whey protein concentrate 34% are steady. The market is unsettled as buyers are in the market for product, but they are watching the relationship of NDM to WPC 34%. Those buyers that have the ability to interchange products are looking at the price ratio to determine where to procure product. Product is available, but not in burdensome amounts. Increased production of higher concentrates of whey stream products have slowed production of 34%. Export interest is steady to weak as buyers are hoping for lower prices before committing. F.O.B. EXTRA GRADE 34% PROTEIN:1.2000 - 1.3425 MOSTLY: 1.2100 - 1.2525

LACTOSE - CENTRAL AND WEST

Lactose prices this week are steady as new price formulations take effect for the month and quarter pricing. The range and mostly series include a fairly wide spread as quality and mesh size affect product price. Lactose production in the Central region is increasing as cooler weather and lower humidity make manufacturing easier. Some manufacturers feel inventories are increasing and believe that is holding the market back. Demand for product to export remains good as buyers in Oceania look for lactose to aid in standardization of various products. Including spot sales and up to 3 month contracts. F.O.B. EDIBLE, NON PHARMACEUTICAL .6800 - .9000 MOSTLY: .7500 - .8200

CASEIN - NATIONAL Casein markets and prices are mixed as a new quarter resumes and quarterly contract prices adjust. Domestic buyers continue to report higher priced spot offerings that many are not taking advantage of. In most instances, domestic buyers are comfortable with their regular supply sources and are getting their needs fulfilled. The 2012 European casein production season is now over and suppliers are filling orders from inventoried stock. For the most part, suppliers have sufficient stocks to fulfill commitments with some available uncommitted stocks, although limited. Suppliers are not overly concerned about these stocks, but offering them onto the market with minimal results, at least at this time. Oceania casein production is underway as milk production in the region nears peak levels. Early reports are indicating that milk volumes appear to be running a little heavier than last year at this time, thus casein output is also slightly ahead of expectations.

SPOT SALES AND UP TO 3 MONTH CONTRACTS. PRICES ARE F.O.B., U.S. WAREHOUSE FOR EDIBLE NONRESTRICTED AND VARY ACCORDING TO MESH SIZE AND QUALITY. RENNET: 3.7000 - 4.4000 ACID: 4.4500 - 4.7500

-6-


SUPPORT PURCHASE PRICES FOR DAIRY PRODUCTS EFFECTIVE NOVEMBER 1, 2009 BUTTER Bulk $1.05 per pound; CHEESE 40# Blocks $1.13 per pound; 500# Barrels $1.10; NONFAT DRY MILK $.80 per pound The CCC Purchase table will no longer be shown unless purchases occur. Last CCC purchase: October 2009. ________________________________________________________________________________________________________________________________________

U.S. Dairy Cow Slaughter (000 head) under Federal Inspection & Comparable Week 2011

WEEKLY 2012 2011 WEEKLY 2011 WEEK ENDING DAIRY COWS CUMULATIVE DAIRY COWS DAIRY COWS CUMULATIVE DAIRY COWS 09/22/2012 63.0 2,223.6 58.7 2,092.2 WEBSITE: http://www.ams.usda.gov/mnreports/sj_ls714.txt SOURCE: The slaughter data are gathered and tabulated in a cooperative effort by the Agricultural Marketing Service, The Food Safety and Inspection Service, and the National Agricultural Statistics Service, all of USDA.

CLASS III MILK PRICES (3.5% BF)

YEAR

JAN FEB

MAR

APR MAY JUN JUL AUG

SEP

OCT NOV DEC

2008

19.32

17.03

18.00

16.76 18.18 20.25 18.24 17.32

16.28

17.06 15.51 15.28

2009

10.78

9.31

10.44

10.78

9.84 9.97 9.97 11.20

12.11

12.82 14.08 14.98

2010

14.50

14.28

12.78

12.92 13.38 13.62 13.74 15.18

16.26

16.94 15.44 13.83

2011

13.48

17.00

19.40

16.87 16.52 19.11 21.39 21.67

19.07

18.03 19.07 18.77

CLASS IV MILK PRICES (3.5% BF)

YEAR

JAN

FEB

MAR

APR MAY JUN JUL AUG

SEP

OCT NOV DEC

2008

16.29

14.67

14.17

14.56 15.26 15.92 16.60 16.64

15.45

13.62 12.25 10.35

2009

9.59

9.45

9.64

9.82 10.14 10.22 10.15 10.38

11.15

11.86 13.25 15.01

2010

13.85

12.90

12.92

13.73 15.29 15.45 15.75 15.61

16.76

17.15 16.68 15.03

2011

16.42

18.40

19.41

19.78 20.29 21.05 20.33 20.14

19.53

18.41 17.87 16.87

FEDERAL MILK ORDER CLASS PRICES FOR 2012 (3.5%)

CLASS

JAN

FEB

MAR

APR MAY JUN JUL AUG

SEP

OCT NOV DEC I 1/

18.80

17.03

16.30

15.66 15.85 15.24 15.51 16.55

18.88

II

17.67

16.94

16.59

16.20

15.19 14.32 14.51 15.64

17.04

III

17.05

16.06

15.72

15.72 15.23 15.63 16.68 17.73

19.00

IV

16.56

15.92

15.35

14.80 13.55 13.24 14.45 15.76

17.41

1/ Specific order differentials to be added to this base price can be found by going to: www.ams.usda.gov/DairyMarketingStatistics; then select “Prices”; and then select “Principal Pricing Points.” _________

$10.00

$12.00

$14.00

$16.00

$18.00

$20.00

$22.00


Class I 2010

2011

2012

$10.00

$12.00

$14.00

$16.00

$18.00

$20.00

$22.00


Class II 2010

2011

2012

$10.00

$12.00

$14.00

$16.00

$18.00

$20.00

$22.00


Class III 2010

2011

2012

$10.00

$12.00

$14.00

$16.00

$18.00

$20.00

$22.00


Class IV 2010

2011

2012

DAIRY MARKET NEWS, October 8 - 12, 2012 -8- VOLUME 79, REPORT 41

INTERNATIONAL DAIRY MARKET NEWS - EUROPE Information gathered October 1 - 12, 2012

Prices are U.S. $/MT, F.O.B. port. Information gathered for this report is from trades, offers to sell, and secondary data. This bi-weekly report may not always contain the same products and/or regions. Future reports may be included or withdrawn depending on availability of information. MT = metric ton = 2,204.6 pounds.

WESTERN OVERVIEW: Western European milk production levels are trending seasonally lower. Milk deliveries into processing facilities are also tending to be declining. According to trade sources, milk output is lower versus a year ago in Germany, France, Netherlands and Ireland. Recent wet weather conditions have a lingering effect on pasturing and cropping. Some countries are noting declines in fat and protein levels of milk receipts, attributed to changing feeding patterns on dairies. Cost of production issues are a concern with farm milk pricing steady to incrementally higher. Finished dairy product prices are steady to slightly weaker. Currency fluctuations have only had a minimal impact on exporting in recent weeks, but the current level versus the USD is being noted. Butter exports are light and moving best to established accounts. There is butter coming out of the PSA program to supplement supplies. SMP and WMP prices are slightly lower with uneven demand into a competitive world market situation. Interest in dry whey is light to fair with current pricing levels stimulating demand. BUTTER/BUTTEROIL: Pricing levels for European butter are mostly steady to moving slightly lower. The market tone is steady to unsettled. Buyer demand remains fair and continues to serve a mainly domestic market and established export business. At current pricing levels, new spot market business is hard to establish as pricing in the Oceania region is more competitive. Production levels in Europe are at seasonal low marks. Butter stocks are tight and being augmented with supplies out of the PSA program. 82% BUTTERFAT: 3,900 - 4,200 99% BUTTERFAT: 4,550 - 4,900

SKIM MILK POWDER (SMP): Skim milk powder markets and prices are steady to slightly weaker during the reporting period. Prices are under slight pressure to be competitive to move into often quiet export channels. The impact of currency fluctuations is also a consideration to pricing changes. There was limited news available on an export tender. EU suppliers are hoping to secure at least some of that business. SMP output is trending lower seasonally and variable as producers make products of better needs and returns for cheese manufacturing in some countries are favorable. 1.25% BUTTERFAT: 3,350 - 3,600

SWEET WHEY POWDER: Dry whey prices are slightly lower on the bottom end of the trading range of 1225 to 1400 USD per MT. Demand is variable across categories and location. Export interest is light to fair. Pricing is competitive with U.S. levels. Whey stocks are often at seasonal low levels. Production is light to moderate. Whey solids are moving towards whey protein concentrates and isolates for some manufacturers, which is impacting dry sweet whey production. NONHYGROSCOPIC: 1,225 - 1,400

WHOLE MILK POWDER (WMP): Dry whole milk prices are steady to slightly lower, reflecting declining demand as pricing levels are at points that were not conducive to move into export channels. Currency fluctuations are also affecting the export potential of WMP. With milk production nearing seasonal low points in many EU countries, production of WMP is also trending downwards. 26% BUTTERFAT: 3,725 - 3,900

EASTERN OVERVIEW: Eastern Europe milk production trends are moving lower and approaching the low point of the production cycle. Most countries report milk production levels are above a year ago with Poland being 5% higher in August versus a year earlier. The effects of weather are currently having minimal impact on milk production across the region. Dairy product production cycles are tending to be at seasonal low levels and stocks of finished dairy products are light. Exchange rates for selected foreign currencies: October 8, 2012 1.0236 Canadian Dollar .0190 Indian Rupee .2124 Argentina Peso .8193 New Zealand Dollar .0781 Mexican Peso 1.0193 Australian Dollar .3186 Polish Zloty .0128 Japanese Yen 1.2969 Euro

To compare the value of 1 US Dollar to Mexican Pesos: (1/.0781)= 12.8041 Mexican Pesos. Source: "Wall Street Journal"


INTERNATIONAL DAIRY MARKET NEWS - OCEANIA

Information gathered October 1 - 12, 2012 Prices are U.S. $/MT, F.O.B. port. Information gathered for this report is from trades, offers to sell, and secondary data. This bi-weekly report may not always contain the same products and/or regions. Future reports may be included or withdrawn depending on availability of information. MT = metric ton = 2,204.6 pounds.

-8A-

OVERVIEW: Milk production in New Zealand is at or very near peak levels in many regions. Milk producers and handlers are indi-cating that a strong finish to the previous season, good cow condi-tioning, and a favorable start to the current season are all contrib-uting factors to a positive season thus far. Milk handlers are pro-jecting that milk output will probably not be as strong as last sea-son, but will be in the 3 - 4% increase range from two years ago. The Australian milk production season is well underway and will peak in about three weeks. Weather conditions in Australia may again be a factor for some production regions of Victoria. Northern Victoria is experiencing a positive start to the season with volumes reported to be running 6 - 7% ahead of last year at this time. In the Southeast, Gippsland region, wet conditions prevailed for much of last season and it appears that these conditions might be negatively impacting output again this year. Elsewhere in Victoria, conditions are basically normal and the milk flow is seasonally building. Aus-tralian producers and handlers are continuing to project a positive season with most anticipating a 1 - 2% increase over two years ago with some reaching to the 3% level. Milk handlers are hopeful that peak levels will be able to be maintained for an extended period of time, but peak levels are typically fully dependent on weather pat-terns. In both New Zealand and Australia, manufacturing facilities are all up and running. Casein operations, especially in New Zea-land, are also in full swing and will remain at those levels as long as milk volumes are plentiful. Milk volumes are clearing to all manu-facturing facilities, thus there is basically no tilt for milk volumes at this time, although butterfat products are reported to be in the tight-est position. Stock levels of manufactured dairy products are basi-cally fully committed at this time. Some manufacturers do have uncommitted volumes, but are often holding these volumes to be flexible with their other commitments. Traders and handlers do indicate that they continue to receive new inquiries from potential buyers, but often are not able to fulfill the inquiry. At the present time, most all sales activity is centered around regular and ongoing customer needs. Average prices at the last g/DT auction on Octo-ber 2 were generally lower. Buttermilk and whole milk powder prices were firmer with all other traded product prices easing. Alt-hough overall product prices for skim milk powder were lower, U.S. sourced skim milk powder, for November delivery, was 6.4% higher at $3,707 per MT. The next event, #78 will be held on Tues-day, October 16. BUTTER: Oceania butter markets and prices are generally hold-ing steady. The milk production season in the region is at or near-ing peak levels, thus churning activities are strong. Some manufac-turers and handlers are reporting that butterfat is less available and many are attributing this to slightly lower butterfat levels of incom-ing milk. Although butterfat may be lighter, traders and handlers are indicating that stocks of butterfat based products are sufficient to maintain delivery schedules, but uncommitted volumes are not as plentiful as they typically are for this time of the season. Although still 4 months away (February), manufacturers and handlers are questioning what impact butter trading at the g/DT will have on availability and prices. Most feel that this will have minimal nega-tive impact and many will use this trading activity as a factor in determining future market trends. 82% BUTTERFAT: 3,000 - 3,500

SKIM MILK POWDER (SMP): Oceania skim milk powder markets and prices are generally holding steady. The Oceania milk production season is in full swing and driers are actively processing milk volumes. Most manufacturers and handlers are indicating that plant capacity is not a factor at this time, but as milk volumes get closer to peak levels, this could be a challenge. Powder stocks are reported to be in balance with current needs and shipments are oc-curring as scheduled. Traders and handlers are indicating that sales activity has been and continues to be strong for first half powder volumes. At this time, most manufacturers do not see any prob-lems with their supply/demand balance. At the October 2 g/DT event, skim milk powder averaged $3,309 per MT for all contract-ing periods which was 0.9% lower than the previous all contract average. U.S. sourced powder for November shipment averaged $3,707 per MT which was 6.4% higher than the previous compara-ble price. 1.25% BUTTERFAT: 3,200 - 3,600 CHEDDAR CHEESE: Oceania cheese markets and prices are firm. Cheese production is seasonally strong as milk volumes are at or very near peak levels. Traders and handlers are stating that cheese sales have been and continue to be strong and are in line with projections. Much of first half production has been commit-ted and discussions for second half needs are occurring. Most sales activity is centered around regular and ongoing customer needs. 39% MAXIMUM MOISTURE: 3,700 - 4,100

WHOLE MILK POWDER (WMP): Whole milk powder mar-kets and prices in the Oceania region are firm. Powder production is in full swing as milk output is at or nearing seasonal peak levels in New Zealand and Australia. Manufacturing facilities are active-ly processing milk volumes that are reported to be running stronger than last year at this time. One problem that some powder manu-facturers are experiencing is that butterfat levels on incoming milk are reported to be slightly lower. Less butterfat is not only impact-ing the whole milk powder side, but also butter and other butterfat based products. At the October 2 g/DT event, the average price for all contracting periods for whole milk powder was $3,167 per MT, 2.8% higher than the previous all contract price. Near term (November) contracts for New Zealand sourced product averaged $3,417 per MT. NOTE: Report #39 price line for Oceania whole milk powder was inadvertently omitted, it should have read 3,075 -3,400. 26% BUTTERFAT: 3,100 - 3,500


INTERNATIONAL DAIRY MARKET NEWS - OCEANIA

Information gathered October 1 - 12, 2012 Prices are U.S. $/MT, F.O.B. port. Information gathered for this report is from trades, offers to sell, and secondary data. This bi-weekly report may not always contain the same products and/or regions. Future reports may be included or withdrawn depending on availability of information. MT = metric ton = 2,204.6 pounds.

-8B-

Global/Dairy Trading (g/DT) Event 77 Recap ‐ October 2, 2012

US$/MT Contract 1 Contract 2 Contract 3 Contract 4 Contract 5 Contract 6 All Contracts

Nov‐12 Dec‐12 Jan‐12 Feb‐12 Mar‐12 Apr‐12

Anhydrous Milk Fat n.a. $2,894 ‐5.4% $2,972 ‐6.7% $2,966 ‐8.0% $3,088 ‐6.2% $3,620 ‐6.0% $2,982 ‐6.4%

Bu ermilk Powder n.a. $3,085 3.9% $3,060 ‐2.1% $3,385 10.3% n.a. n.a. $3,144 4.0%

Cheddar n.a. $3,258 ‐14.6% $3,233 ‐4.7% $3,484 ‐7.3% n.a. n.a. $3,300 ‐7.4%

Lactose n.a. n.a. $2,000 ‐6.3% n.a n.a. n.a. $2,000 ‐6.3%

Milk Protein Concentrate n.a. $5,885 n.c. $5,875 ‐2.1% $5,870 ‐3.1% n.a. n.a. $5,879 ‐1.5%

Rennet Casein n.a. $7,100 ‐12.2% $7,639 ‐7.1% $7,598 ‐7.6% n.a. n.a. $7,361 ‐9.5%

Skim Milk Powder $3,707 6.4% $3,299 ‐0.3% $3,288 ‐1.5% $3,306 ‐1.5% $3,196 ‐6.0% n.a. $3,309 ‐0.9%

Whole Milk Powder $3,417 n.a. $3,132 1.3% $3,089 3.3% $3,110 2.5% $3,272 7.9% $3,328 8.4% $3,167 2.8%

Average price US$/MT and % change in indices from previous event.

Global/Dairy Trading (g/DT) Event 77 Recap ‐ October 2, 2012

US$/Pound Contract 1 Contract 2 Contract 3 Contract 4 Contract 5 Contract 6 All Contracts

Nov‐12 Dec‐12 Jan‐12 Feb‐12 Mar‐12 Apr‐12

Anhydrous Milk Fat n.a. $1.3127 ‐5.4% $1.3481 ‐6.7% $1.3454 ‐8.0% $1.4007 ‐6.2% $1.6420 ‐6.0% $1.3526 ‐6.4%

Bu ermilk Powder n.a. $1.3993 3.9% $1.3880 ‐2.1% $1.5354 10.3% n.a. n.a. $1.4261 4.0%

Cheddar n.a. $1.4778 ‐14.6% $1.4665 ‐4.7% $1.5803 ‐7.3% n.a. n.a. $1.4969 ‐7.4%

Lactose n.a. n.a. $0.9072 ‐6.3% n.a n.a. n.a. $0.9072 ‐6.3%

Milk Protein Concentrate n.a. $2.6694 n.c. $2.6649 ‐2.1% $2.6626 ‐3.1% n.a. n.a. $2.6667 ‐1.5%

Rennet Casein n.a. $3.2205 ‐12.2% $3.4650 ‐7.1% $3.4464 ‐7.6% n.a. n.a. $3.3389 ‐9.5%

Skim Milk Powder $1.6815 6.4% $1.4964 ‐0.3% $1.4914 ‐1.5% $1.4996 ‐1.5% $1.4497 ‐6.0% n.a. $1.5010 ‐0.9%

Whole Milk Powder $1.5499 n.a. $1.4207 1.3% $1.4012 3.3% $1.4107 2.5% $1.4842 7.9% $1.5096 8.4% $1.4365 2.8%

Average price US$/pound and % change from previous event.


CHICAGO MERCANTILE EXCHANGE FUTURES Selected settling prices, (open interest), and volume 1/

Month 09/27 09/28 10/01 10/02 10/03 10/04 10/05 10/08 10/09 10/10 CME - CLASS III MILK FUTURES (Pit-Traded) OCT 12 20.78 (5209) 0 20.86 (5214) 22 21.13 (5236) 5 21.10 (5275) 15 21.17 (5323) 0 21.06 (5216) 0 20.90 (5318) 10 21.05 (5411) 22 21.01 (5561) 0 21.05 (5505) 0 NOV 12 20.68 (5053) 0 20.83 (5142) 21 21.00 (5172) 4 20.95 (5184) 5 21.34 (5261) 0 21.26 (5232) 2 20.99 (5251) 0 21.09 (5216) 0 20.95 (5250) 1 20.71 (5249) 3 DEC 12 19.79 (3877) 25 19.86 (3887) 1 19.99 (3914) 0 19.97 (3908) 1 20.36 (3904) 0 20.48 (4169) 0 20.32 (4240) 0 20.64 (4312) 4 20.60 (4333) 1 20.37 (4360) 3 JAN 13 19.35 (1580) 1 19.42 (1570) 1 19.49 (1590) 0 19.42 (1579) 1 19.58 (1582) 12 19.66 (1578) 0 19.57 (1570) 3 19.82 (1597) 0 19.79 (1631) 2 19.66 (1620) 3 FEB 13 19.12 (1300) 1 19.11 (1299) 1 19.12 (1322) 0 19.02 (1317) 1 19.12 (1323) 12 19.24 (1348) 0 19.11 (1357) 3 19.28 (1368) 0 19.28 (1377) 2 19.24 (1379) 3 MAR 13 18.92 (1205) 1 18.92 (1218) 1 18.91 (1231) 0 18.83 (1228) 2 18.92 (1218) 12 19.01 (1223) 0 18.83 (1210) 3 18.98 (1221) 0 19.02 (1206) 1 18.99 (1209) 4 APR 13 18.60 (994) 1 18.62 (1033) 1 18.62 (1041) 0 18.55 (1040) 2 18.60 (1046) 12 18.67 (1052) 0 18.57 (1065) 3 18.69 (1066) 0 18.74 (1064) 2 18.68 (1072) 3 MAY 13 18.57 (853) 1 18.61 (881) 1 18.57 (895) 0 18.54 (895) 2 18.54 (900) 0 18.55 (913) 0 18.43 (930) 3 18.50 (932) 0 18.51 (937) 1 18.48 (940) 4 JUN 13 18.60 (769) 1 18.65 (804) 1 18.62 (814) 0 18.53 (826) 2 18.50 (833) 0 18.51 (838) 0 18.37 (848) 3 18.47 (851) 1 18.52 (857) 1 18.47 (862) 0 JUL 13 18.85 (626) 0 18.84 (625) 0 18.80 (627) 0 18.69 (621) 1 18.67 (625) 0 18.73 (632) 0 18.60 (636) 4 18.69 (638)0 18.67 (638) 0 18.59 (638) 0 CME - CLASS IV MILK FUTURES (Pit-Traded) OCT 12 19.10 (86) 0 19.10 (86) 0 19.10 (86) 0 19.10 (86) 0 19.10 (86) 0 19.10 (86) 0 19.10 (86) 0 19.10 (86) 0 19.10 (86) 0 19.10 (86) 0 NOV 12 19.99 (74) 0 19.99 (74) 0 19.86 (74) 0 19.64 (74) 0 19.40 (83) 0 19.40 (74) 0 19.25 (75) 0 19.25 (75) 0 19.15 (74) 0 19.15 (74) 0 DEC 12 19.99 (78) 0 19.75 (78) 0 19.32 (83) 0 19.00 (83) 0 19.00 (83) 0 19.00 (83) 0 18.95 (83) 0 18.95 (83) 0 18.95 (83) 0 19.00 (88) 0 CME – CASH SETTLED BUTTER FUTURES (Electronic-Traded) OCT 12 194.50 (789) 18 194.50 (791) 4 194.50 (791) 0 193.50 (795) 4 191.00 (781) 25 191.00 (781) 0 191.00 (774) 10 191.00 (781) 0 191.00 (781) 0 191.00 (781) 0 NOV 12 194.00 (733) 0 194.00 (742) 23 192.98 (756) 26 192.00 (769) 18 188.00 (760) 23 188.00 (760) 3 187.75 (761) 6 189.00 (762) 1 190.00 (763) 5 188.50 (764) 1 DEC 12 185.50 (624) 0 182.93 (630) 8 181.50 (636) 7 179.50 (637) 2 178.23 (642) 25 177.48 (125) 3 177.00 (643) 2 177.00 (643) 0 177.00 (643) 0 177.00 (643) 0 CME – NONFAT DRY MILK FUTURES (Pit-Traded) OCT 12 150.50 (302) 0 150.50 (302) 0 150.50 (302) 0 150.50 (302) 0 150.50 (302) 0 150.50 (302) 0 150.50 (302) 0 150.50 (302) 0 150.50 (302) 0 150.50 (302) 0 NOV 12 159.50 (248) 0 161.98 (250) 0 159.48 (250) 0 156.98 (250) 0 156.98 (250) 0 155.00 (250) 1 155.00 (252) 0 155.00 (252) 0 154.98 (252) 0 155.00 (254) 0 DEC 12 160.50 (198) 0 160.50 (198) 0 159.50 (198) 0 157.95 (195) 0 157.95 (194) 0 157.95 (194) 0 156.00 (195) 0 156.00 (195) 0 155.98 (195) 0 156.00 (197) 0 CME – WHEY (Electronic-Traded) OCT 12 60.50 (275) 26 60.50 (272) 6 61.75 (271) 1 61.00 (273) 2 61.00 (278) 5 62.00 (283) 6 62.00 (283) 0 62.00 (283) 0 62.00 (288) 0 62.00 (288) 0 NOV 12 63.50 (226) 21 63.00 (224) 5 64.00 (224) 8 63.20 (222) 8 63.50 (222) 6 63.50 (222) 0 63.50 (222) 0 62.98 (222) 0 62.50 (222) 2 62.50 (216) 6 DEC 12 65.00 (296) 25 63.00 (291) 16 64.00 (288) 12 63.50 (293) 7 63.25 (295) 6 63.75 (296) 1 63.00 (296) 2 63.00 (296) 0 63.03 (296) 4 63.03 (299) 5 CME – CHEESE CSC (Electronic-Traded) OCT 12 2.04 (1232) 16 2.05 (1229) 13 2.07 (1227) 9 2.06 (1229) 5 2.07 (1252) 2 2.06 (1253) 5 2.05 (1253) 6 2.06 (1253) 10 2.06 (1260) 2 2.06 (1259) 6 NOV 12 2.00 (1178) 9 2.01 (1164) 22 2.03 (1165) 16 2.03 (1175) 19 2.08 (1168) 39 2.08 (1169) 8 2.06 (1169) 1 2.06 (1169) 0 2.04 (1170) 3 2.02 (1168) 15 DEC 12 1.91 (1247) 76 1.93 (1247) 12 1.93 (1251) 8 1.93 (1251) 0 1.97(1244) 22 1.98 (1242) 10 1.97 (1247) 17 2.00 (1247) 5 2.01 (1246) 12 1.99 (1252) 11 JAN 13 1.89 (281) 0 1.89 (281) 0 1.89 (281) 0 1.89 (281) 2 1.89 (281) 0 1.91 (279) 21 1.90 (275) 23 1.92 (275) 0 1.92 (275) 0 1.93 (273) 8 FEB 13 1.85 (158) 9 1.84 (162) 4 1.86 (163) 6 1.86 (163) 0 1.86 (163) 0 1.86 (165) 2 1.87 (164) 4 1.87 (164) 0 1.89 (164) 4 1.89 (164) 2 MAR 12 1.83 (135) 13 1.83 (136) 5 1.83 (136) 0 1.83 (136) 0 1.83 (136) 0 1.83 (136) 2 1.83 (136) 0 1.84 (136) 0 1.86 (136) 5 1.87 (138) 2 1/ At the CME open interest for milk -- 200,000 pounds per contract. For more detailed information, you may call our automated voice system at 608-278-4142.)

DAIRY MARKET NEWS, OCTOBER 8 – 12, 2012 -10- VOLUME 79, REPORT 41 OCTOBER MILK SUPPLY AND DEMAND ESTIMATES The 2012 milk production forecast is reduced from last month, as slower growth in milk per cow more than offsets a slower expected decline in cow numbers. Higher forecast milk prices in late 2012 and into 2013 are expected to slow the rate of decline in cow numbers and help support higher growth in milk per cow in 2013. Thus, the production forecast for 2013 is raised. Imports are forecast higher for both 2012 and 2013. Fat basis exports for 2012 are lowered but skim-solids exports are forecast higher. Exports for 2013 are unchanged from last month. Product prices are forecast higher for 2012 and 2013 as recent strength in dairy product demand is expected to carry into 2013. Forecasts for butter, cheese, nonfat dry milk, and whey are raised from last month. With higher product prices, both the Class III and Class IV price forecasts are raised. The all milk price is forecast at $18.50 to $18.60 per cwt. for 2012 and $19.00 to $19.90 per cwt for 2013.

U.S. MILK SUPPLY AND USE

Commodity 2011 2012 Projected 2013 Projected

September October September October BILLION POUNDS MILK PRODUCTION 196.2 199.9 199.6 198.9 199.7 FARM USE 1.0 1.0 1.0 1.0 1.0 FAT BASIS SUPPLY BEGINNING COMMERCIAL STOCKS 10.8 10.9 10.9 10.5 10.5 MARKETINGS 195.3 198.9 198.6 197.9 198.7 IMPORTS 3.5 3.7 3.8 3.6 3.8 TOTAL COMMERCIAL SUPPLY 209.6 213.5 213.4 212.0 213.0 FAT BASIS USE COMMERCIAL EXPORTS 9.4 9.8 9.6 8.9 8.9 ENDING COMMERCIAL STOCKS 10.9 10.5 10.5 11.0 10.9 CCC NET REMOVALS 1/ 0.0 0.0 0.0 0.0 0.0 COMMERCIAL USE 2/ 189.2 193.2 193.3 192.2 193.2 SKIM-SOLIDS BASIS SUPPLY BEGINNING COMMERCIAL STOCKS 12.2 11.8 11.8 11.5 11.4 MARKETINGS 195.3 198.9 198.6 197.9 198.7 IMPORTS 5.3 5.7 5.9 5.0 5.4 TOTAL COMMERCIAL SUPPLY 212.7 216.4 216.3 214.4 215.5 SKIM-SOLIDS BASIS USE COMMERCIAL EXPORTS 32.5 33.4 33.5 32.5 32.5 ENDING COMMERCIAL STOCKS 11.8 11.5 11.4 11.7 11.5 CCC NET REMOVALS 1/ 0.0 0.0 0.0 0.0 0.0 COMMERCIAL USE 2/ 168.3 171.5 171.4 170.1 171.4 MILLION POUNDS CCC PRODUCT NET REMOVALS 1/ BUTTER 0 0 0 0 0 CHEESE 0 0 0 0 0 NONFAT DRY MILK 0 0 0 0 0 DRY WHOLE MILK 0 0 0 0 0

NOTE: Totals may not add due to rounding. 1/ Includes products exported under the Dairy Export Incentive Program. 2/ Domestic commercial use only.

Continued on page 11

DAIRY MARKET NEWS, OCTOBER 8 – 12, 2012 -11- VOLUME 79, REPORT 41 OCTOBER MILK SUPPLY AND DEMAND ESTIMATES-cont’d

U.S. DAIRY PRICES

Commodity 2011 2012 Projected 2013 Projected

September October September October DOLLARS PER POUND PRODUCT PRICES 1 CHEESE 1.8246 1.650-1.670 1.725-1.735 1.640-1.740 1.735-1.825 BUTTER 1.9498 1.565-1.605 1.615-1.645 1.510-1.640 1.625-1.745 NONFAT DRY MILK 1.5058 1.275-1.295 1.310-1.330 1.350-1.420 1.390-1.460 DRY WHEY 0.5325 0.565-0.585 0.585-0.595 0.570-0.600 0.585-0.615 DOLLARS PER CWT MILK PRICES 2/ CLASS III 18.37 16.75-16.95 17.55-17.65 16.70-17.70 17.75-18.65 CLASS IV 19.04 15.45-15.75 16.00-16.20 15.85-16.95 16.75-17.75 ALL MILK 3/ 20.14 17.80-18.00 18.50-18.60 17.85-18.85 19.00-19.90 QUARTERLY 2012 III 2012 IV 4/ 2013 I 4/ 2013 II 4/ 2013 III 4/ BILLION POUNDS MILK PRODUCTION 48.7 48.5 49.7 51.2 49.5 DOLLARS PER CWT. ALL MILK PRICE 2/ 3/ 18.03 21.65-22.05 20.50-21.20 18.85-19.85 18.25-19.25 CLASS III PRICE 2/ 17.80 20.70-21.10 19.15-19.85 17.85-18.85 17.30-18.30 CLASS IV PRICE 2/ 15.87 18.45-18.95 17.50-18.30 16.50-17.60 16.45-17.55

1/ Simple average of monthly prices calculated from AMS (formerly NASS) weekly average dairy product prices for class price computations. Details may be found by going to http://www.ams.usda.gov/DairyMarketStatistics; then select “Prices;” then select “Description.” 2/ Annual and quarterly Class III and Class IV prices are the simple average of monthly minimum Federal order milk prices paid by regulated plants for milk used in the respective classes. All milk price is the simple average of monthly prices received by farmers for milk at average test. 3/ Does not reflect any deductions from producers as authorized by legislation. 4/ Projection. Source: U.S. Department of Agriculture. World Agricultural Outlook Board. World Agricultural Supply and Demand Estimates, WASDE-511, October 11, 2012. Approved by the Interagency Commodity Estimates Committee [members for Dairy are: Shayle Shagam, Chairperson, WAOB; Jerry Cessna, AMS; Paul Kiendl, FAS; Roger Hoskin, ERS; and Milton Madison, FSA].

DAIRY MARKET NEWS, OCTOBER 8 – 12, 2012 -12- VOLUME 79, REPORT 41

AUGUST FLUID MILK SALES

During August, 4.5 billion pounds of packaged fluid milk products is estimated to have been sold in the United States. This was 0.5 percent lower than August 2011. After adjusting for calendar composition, sales in August 2012 were 0.5 percent lower than August 2011. Estimated sales of total conventional fluid milk products decreased 0.9 percent from August 2011 and estimated sales of total organic fluid milk products increased 9.8 percent from a year earlier. Editor’s Note: Additional data can be found at http://www.ams.usda.gov/AMSv1.0/FluidMilkSalesDataMonthlyandYeartoDate.

ESTIMATED TOTAL U.S. SALES OF FLUID MILK PRODUCTS, AUGUST 2012, WITH COMPARISONS 1/

Product Name

Sales Change from: 2/

August Year to Date Previous Year Year to Date

Million Pounds Percent Whole Milk 1,165 8,942 -0.7 -1.8 Flavored Whole Milk 47 331 9.0 -4.1 Reduced Fat Milk (2%) 1,562 11,902 -0.2 -1.6 Low Fat Milk (1%) 598 4,734 0.3 2.2 Fat-Free Milk (Skim) 611 4,879 -6.9 -5.3 Flavored Fat-Reduced Milk 262 2,357 3.5 -1.1 Buttermilk 41 314 1.0 1.2 Total Conventional Milk Products 5/ 4,289 33,485 -0.9 -1.6 Organic Whole Milk 48 358 15.6 9.7 Organic Reduced Fat Milk 55 416 11.1 8.5 Organic Low Fat Milk 40 304 20.2 11.7 Organic Fat-Free Milk (Skim) 38 293 -3.1 -4.6 Organic Flavored Milk 7 48 -9.2 -26.0 Organic Fat-Reduced Milk 3/ 140 1,066 8.0 1.4 Total Organic Milk Products 187 1,424 9.8 3.4 Total Fluid Milk Products 4/ 4,477 34,908 -0.5 -1.4 Total Fluid Milk Products Adjusted 4/ 5/ 4,420 34,902 -0.5 -1.6

1/ These figures are representative of the consumption of fluid milk products in Federal milk order marketing areas and California, which accounts for approximately 92 percent of total fluid milk sales in the United States. An estimate of total U.S. fluid milk sales is derived by interpolating the remaining 8 percent of sales from the Federal milk order and California data. 2/ Percent changes, as well as sales volumes, unless otherwise noted, are shown on an unadjusted basis; 3/ Total of organic reduced fat, lowfat, skim, flavored, and miscellaneous milk products combined. 4/ Total fluid milk products include the products listed plus miscellaneous products and eggnog. 5/ Sales volumes and percent changes have been adjusted for calendar composition; see http://www.ams.usda.gov/AMSv1.0/getfile?dDocName=STELDEV3023272 Report contact: Daniel Manzoni, [email protected] or 202-720-2352

PACKAGED SALES OF TOTAL FLUID MILK PRODUCTS IN FEDERAL MILK ORDERS AND CALIFORNIA, AUGUST 2012, WITH COMPARISONS 1/

Area (Order Number)

Sales Change from: 2/

August Year to Date Previous Year Year to Date

Million Pounds Percent Northeast (001) 741 5,943 -1.3 -0.7 Appalachian (005) 303 2,324 -2.3 -1.9 Southeast (007) 418 3,157 -2.4 -2.5 Florida (006) 240 1,905 0.5 -1.2 Mideast (033) 495 3,862 -0.5 -1.8 Upper Midwest (030) 350 2,724 1.6 -2.2 Central (032) 394 2,981 2.2 0.1 Southwest (126) 376 2,927 0.0 -0.5 Arizona (131) 98 765 -3.1 -2.0 Pacific Northwest (124) 180 1,442 0.9 -0.9 California (---) 522 4,085 -0.8 -2.1

1/ These figures are representative of the consumption of total fluid milk products in the respective area; see 5/ above for the products included. 2/ Percent changes, as well as sales volumes, are shown on an unadjusted basis. Source: U.S. Department of Agriculture. California Department of Food and Agriculture. Milk Stabilization Branch. California Dairy Information Bulletin, August 2012.


$1.1500

$1.2000

$1.2500

$1.3000

$1.3500

$1.4000

$1.4500

$1.5000

$1.5500

U.S.$

DATA, WALL STREET JOURNAL; GRAPH, USDA, AMS, DMN

EURO COMPARED TO THE U.S. DOLLARBIWEEKLY JANUARY 2008 TO DATE

0.07000.07250.07500.07750.08000.08250.08500.08750.09000.09250.09500.09750.1000

US $


MEXICAN PESO COMPARED TO THE U.S. DOLLARBIWEEKLY JANUARY 2008 TO DATE

$0.5000

$0.5500

$0.6000

$0.6500

$0.7000

$0.7500

$0.8000

$0.8500

U.S.$


NEW ZEALAND DOLLAR COMPARED TO U.S. DOLLARBIWEEKLY JANUARY 2008 TO DATE


42

47

52

57

62

67

72

77

82



U.S. CREAM AND NEUFCHATEL PRODUCTION

2008 2009 2010 2011 2012

MILLION POUNDS

80

85

90

95

100

105

110

115

120

125

130


MILLION POUNDS

DATA SOURCE, USDA, NASS; GRAPH, USDA, DMN

U.S. SOUR CREAM PRODUCTION

2008 2009 2010 2011 2012

9095

100105110115120125130135140145150155160165170175180185


MILLION POUNDS U.S. BUTTER PRODUCTION

2008 2009 2010 2011 2012DATA SOURCE, USDA, NASS; GRAPH, USDA, AMS, DMN

Release Dates Federal Milk OrderPrice Data

United States Department of Agriculture

Agricultural Marketing Service Dairy Programs Market Information BranchRDFMO– 0001 November 1, 2012

Listed below are the release dates for price announcements used in the Federal milk order program applicable to January 2013 through December 2014. The advanced prices and pricing factors will be released at 3:00 p.m. ET no later than the 23rd of the preceding month. If the release date does not fall on the 23rd, the most current release preceding the 23rd will be used in the price calculation. Likewise, the class and component prices will be released at 3:00 p.m. ET no later than the 5th of the following month. If the release date does not fall on the 5th, the most current release preceding the 5th will be used in the price calculation.

Year and Month to Which Prices Apply

Advanced Prices and Pricing Factors

Class and Component Prices

Release Date Time Period of AMS Prices 1/

Release Date Time Period of AMS Prices 1/

2013 January Dec. 19, 2012 12/8, 15 Jan. 30 1/5, 12, 19, 26 February Jan. 16 1/5, 12 Feb. 27 2/2, 9, 16, 23 March Feb. 21 2/9, 16 Apr. 3 3/2, 9, 16, 23, 30 April Mar. 20 3/9, 16 May 1 4/6, 13, 20, 27 May Apr. 17 4/6, 13 Jun. 5 5/4, 11, 18, 25, 6/1 June May 22 5/11, 18 Jul. 3 6/8, 15, 22, 29 July Jun. 19 6/8, 15 Jul. 31 7/6, 13, 20, 27 August Jul. 17 7/6, 13 Sep. 5 8/3, 10, 17, 24, 31 September Aug. 21 8/10, 17 Oct. 2 9/7, 14, 21, 28 October Sep. 18 9/7, 14 Oct. 30 10/5, 12, 19, 26 November Oct. 23 10/12, 19 Dec. 4 11/2, 9, 16, 23, 30 December Nov. 20 11/9, 16 Jan. 2, 2014 12/7, 14, 21, 28

2014 January Dec. 18, 2013 12/7, 14 Feb. 5 1/4, 11, 18, 25, 2/1 February Jan. 23 1/11, 18 Mar. 5 2/8, 15, 22, 3/1 March Feb. 20 2/8, 15 Apr. 2 3/8, 15, 22, 29 April Mar. 19 3/8, 15 Apr. 30 4/5, 12, 19, 26 May Apr. 23 4/12,19 Jun. 4 5/3, 10, 17, 24, 31 June May 21 5/10, 17 Jul. 2 6/7, 14, 21, 28 July Jun. 18 6/7, 14 Jul. 30 7/5, 12, 19, 26 August Jul. 23 7/12, 19 Sep. 4 8/2, 9, 16, 23, 30 September Aug. 20 8/9, 16 Oct. 1 9/6, 13, 20, 27 October Sep. 17 9/6, 13 Nov. 5 10/4, 11, 18, 25, 11/1November Oct. 22 10/11, 18 Dec. 3 11/8, 15, 22, 29 December Nov. 19 11/8, 15 Dec 31 12/6, 13, 20, 27

1/ Weekly sales periods end on the indicated date and include applicable averages. The National Dairy Products Sales report is normally released on Wednesday of the following week. http://www.ams.usda.gov/AMSv1.0/DairyProductMandatoryReporting

DAIRY MARKET NEWS GENERAL NUMBER (608)278-4200 Elizabeth Frederick (608) 278-4150 [email protected] EAST Rick Whipp (608) 278-4151 [email protected] CENTRAL/WEST Janet Linder (608) 278-4157 [email protected] SOUTHWEST Butch Speth (608) 278-4152 [email protected] NORTHWEST/MOUNTAIN Bob Hunter (608) 278-4158 [email protected] NATIONAL SUPERVISOR Donald Nelson (608) 278-4156 [email protected]

VOLUME: 79

REPORT: 41 DATE: 10/12/2012

INTERNATIONAL Steven Schneeberger (608) 278-4154 [email protected] ORGANIC Eric Graf (608) 278-4153 [email protected] INTERNET ADDRESS www.ams.usda.gov/DairyMarketNews

MARKET NEWS PORTAL www.marketnews.usda.gov RECORDED INFORMATION SYSTEM (608) 278-4142 FAX (608) 278-4141 ________________________ USDA, Dairy Market News 2920 Marketplace Drive, STE 202 Fitchburg, WI 53719-5337

U.S. DEPARTMENT OF AGRICULTURE – AGRICULTURAL MARKETING SERVICE – DAIRY PROGRAMS

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