weeklyreport pg 8

8/6/2019 weeklyreport pg 8

1/19

VOLUME 76, REPORT 15WEEK OF APRIL 13 - 17, 2009 DAIRY MARKET NEWS

NATIONAL DAIRY MARKET AT A GLANCE

CME GROUP

CASH TRADING

PRODUCT MONDAY TUESDAY WEDNESDAY THURSDAY FRIDAY WEEKLY WEEKLY

APRIL 13 APRIL 14 APRIL 15 APRIL 16 APRIL 17 CHANGE* AVERAGE#

CHEESE: carload = 40,000-44,000 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 MarkeNews for informational purposes. This data is available on the Internet at WWW.AMS.USDA.GOV/DAIRYMARKETNEWS.

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

INTERNATIONAL DAIRY MARKET NEWS (PAGE 8)DAIRY FUTURES (PAGE 9)

DAIRY OUTLOOK (PAGES 10 11)

DAIRY OUTLOOK ALFALFA SPECIAL (PAGES 12 13)MAY FEDERAL ORDER ADVANCE PRICES (PAGE 14)

DAIRY GRAPHS (PAGES 15 - 16)

CME GROUP CASH MARKETS (4/17):

BUTTER: Grade AA closed at $1.2025. The weekly average for Grade AA

is $1.2025 (+.0069).

CHEESE: Barrels closed at $ 1.1100 and 40# blocks at $1.1700. The weekly

average for barrels is $1.1190 (-.0873) and blocks, $1.1800 (-.0756).

BUTTER HIGHLIGHTS: The cash butter price at the CME Group

declined fractionally to settle at $1.2025. Churning remains active. Ice cream/

mix production is using steady to heavier volumes of cream as temperatures

warm. Printing has not declined as much as anticipated since holiday orderswere shipped. Producers are trying to build bulk inventory for use later in

the year. A major Midwestern producer announced on April 15 that they

are closing a Wisconsin butter plant. According to FAS, U.S. butter and

milkfat exports for the first two months of 2009 total 8.7 million pounds,

down 72% from the same period in 2008. This volume is equal to about 2.7%

of total butter production for the period.

CHEESE HIGHLIGHTS: The CME Group cash cheese market remained

weak as prices approach CCC purchase prices of $1.13 per pound for blocks

and $1.10 for barrels. Orders are lighter after the holidays and as some spot

buyers wait for possible lower prices to place orders. Current cheese

offerings have increased. Lead times on bulk orders range from regular to

shorter than normal periods. Current cheese production remains seasonally

active though yields are trending lower. According to FAS, U.S. exports of

cheese and curd for the first two months of 2009 total 36.9 million pounds,

down 22% from the same period in 2008. Exports account for 2.3% of total

U.S. cheese production for the period.

FLUID MILK: Milk intakes are increasing seasonally throughout the

country with the exception of California and the Pacific Northwest where

volumes are mostly steady. The weather conditions for milk production

improved in Florida and Arizona, resulting in steady to heavier volumes at

a time when volumes usually decline seasonally. A number of plants took

a longer weekend causing some extra milk and components to back into other

manufacturing channels. While these manufacturing plants operated on

heavier schedules, the extra cream and milk was easily handled. Improving

weather conditions are stimulating ice cream and soft serve consumption so

many manufacturers are increasing production seasonally. The rotation of

various schools out on spring break continues to impact fluid milk demand

again this week.

DRY PRODUCTS: The NDM market is unsettled with prices moving

higher and lower. Current drying remains seasonally active with little high

heat being produced as producers maximize the volume of condensed skim

dried. Export interest remains light. According to FAS, January and

February 2009 exports of NDM/SMP totaled 76.2 million pounds compared

to 153.7 million pounds last year, down 50%. Buttermilk prices are higher

as powder supplies remain light as most product moves as condensed and

dryers are busy making NDM. Some users are replacing buttermilk with

NDM in some applications. Producers in the West are trying to raise prices

closer to be in balance with prices further East. The whey market remains

firm as prices continue to rise. Contract buyers are adding loads, reducing

spot offerings. Some producers are looking at buying additional supplie

of condensed whey to help increase supplies. Demand is being tempered

at current prices though inquiries are noted from domestic and overseas

buyers. Producer supplies are tight to adequate. According to FAS, whey

exports for the first two months of 2009 total 66.5 million pounds, up 16%

from the same period last year. Exports account for 39% of total whey

produced during the period. The WPC market is about steady. Manufacture

supplies range from tight to adequate. Some buyers are active while otherare lighter. Lactose is steady to weak. Production is steady to occasionally

lower. Some producers note increased interest from Asian and South

American customers.

CCC PURCHASES (FSA): During the week of April 13 - 17, CCC

purchased no butter and 6,624,294 net pounds of Western NDM under the

dairy product price support program. Cumulative CCC purchases sinc

October 1 total 4,639,010 pounds of butter and 218,219,205 pounds of

NDM.

INTERNATIONAL OVERVIEW: Milk production is moving along

at expected levels across Western Europe with most countries at or near yea

ago levels. Declining pay prices have had a great influence on the milk flow

which has most countries at or below expected and quota levels. On

Wednesday April 8, it was announced that the common or list refund for

EU export subsidies will remain unchanged: Skim milk powder 190 Euros

per MT, whole milk powder 290 Euros, butter 550 Euros, butteroil 666

Euros, and cheese 198.4 Euros. Under the tendering system, 16,748 MT

of skim milk powder were bid with awards of 13,398 MT of this volume

at a maximum of 220 Euros per MT; butter, 10,516 MT bid, 4,816 MT

receiving awards at a maximum of 600 Euros per MT; and butteroil, bid

totaled 1,174 MT, awards of 632 MT at a maximum of 730 per MT

Maximum levels of intervention for butter (30,000 MT) were quickly filled

during the early days of the open season thus subsequent offerings are beingaccepted under a tendering system. Butter intervention totals, as of Apri

3 are around 51,300 MT. Skim milk powder offerings now total around

97,350 MT with maximum levels that would receive fully restitution

totaling 109,000 MT. PSA totals for butter are near 68,500 MT. Overall

export sales are slow. The general weak world economy is a major facto

with the buying power of importing countries greatly impacted and lower

than a year ago. Often, and especially without subsidies, pricing out o

Europe is higher than Oceania. Seasonal declines in Oceania milk outpu

continue as the milk producing season winds down. The autumn season

has been favorable weather. Economic conditions in local economies are

affecting milk production. Unsettled world conditions, currency valuations

and credit availabilities, all play out as demand factors for exporting and

contracting for future exports. Farm milk prices will likely hold through

the season. Milk pricing values for next season remain a big concern.

Continued on Page 1A

CHEESE

BARRELS $1.1550 $1.1100 $1.1100 $1.1100 $1.1100 $1.1190

(-.0150) (-.0450) (N.C.) (N.C.) (N.C.) (-.0600) (-.0873)

40# BLOCKS $1.2200 $1.1700 $1.1700 $1.1700 $1.1700 $1.1800

(-.0150) (-.0500) (N.C.) (N.C.) (N.C.) (-.0650) (-.0756)

BUTTER

GRADE AA $1.2025 $1.2025 $1.2025 $1.2025 $1.2025 $1.2025

(-.0025) (N.C.) (N.C.) (N.C.) (N.C.) (-.0025) (+.0069)


2/19

VOLUME 76, REPORT 15WEEK OF APRIL 13 - 17, 2009 DAIRY MARKET NEWS

NATIONAL DAIRY MARKET AT A GLANCE

1A

Continued from Page 1

Australian milk figures for February are adjusting lower and the seasonal

totals are projected to come in at around the same level as the prior

season.Early season gains are being erased by later season declines. New

Zealand milk flow is trending lower. The milk year totals YTD indicate

around a 5% increase over the prior year with the heaviest gains noted early

in the year with current numbers declining as the year progresses. Prices

for manufactured dairy products are steady to slightly higher. Mostproducts have been contracted or are being held for expected business in

coming months.

DAIRY OUTLOOK (ERS): Dairy cow slaughter surged ahead of year-

earlier levels for the third month in a row in February, aided in part by the

sixth Cooperatives Working Together (CWT) buyout since 2003, which

removed over 50,000 cows from the dairy herd, mostly in the first quarter

of 2009. USDA forecasts that the dairy herd will contract to an average 9.2

million cows in 2009, compared with 9.3 million in 2008. The contraction

is expected to continue throughout the year; by the fourth quarter of 2009,

the number of dairy cows will likely average about 300 thousand fewer than

those on hand in the fourth quarter of 2008. Higher feed costs will likely

continue to pressure producer profits. Milk per cow will climb only

incrementally in response to poor producer returns. The yield increase is

expected to be less than one-half of 1% this year, adjusting for leap-year,continuing the trend toward smaller year-over-year increases that began in

2006. The outcome from these adjustments is a decline in milk production

in 2009 to 187.1 billion pounds from 190.0 billion pounds in 2008. Declining

retail cheese prices that have lagged falling wholesale prices are finally

beginning to boost consumption. For the year, prices are expected to average

$1.270 to $1.320 per pound. According to Dairy Market News, international

demand for butter is weak. Since the first of the year, the Commodity Credit

Cooperation (CCC) has contracted to buy 4.6 million pounds of butter, but

higher prices are expected to preclude additional butter purchases this year.

The butter price is expected to average $1.155 to 1.235 per pound for the

year. With nonfat dry milk (NDM) prices near support levels, domestic

use appears to be strengthening. Prices for NDM are forecast to remain

above support, averaging 83.0 cents to 87.0 cents per pound in 2009. As

a result of slightly higher than expected product prices, the prices for ClassIII and Class IV milk have been raised slightly to $10.65 to $11.15 per cwt

and $9.95 to $10.55 per cwt, respectively, for 2009. The all milk price is

expected to average $11.85 to $12.35 per cwt in 2009.

FEDERAL MILK ORDER ADVANCE PRICES HIGHLIGHTS

(DAIRY PROGRAMS): Under the Federal milk order pricing system, the

base price for Class I milk for May 2009 is $10.97, up 61 cents from May.

This price is derived from the advanced Class III skim milk pricing factor

of $7.01 and the advanced butterfat pricing factor of $1.2019 per pound.

Class I differentials specific to each county are added to the base price to

determine the Class I price. The Class II skim milk price for May is $6.49

and the Class II nonfat solids price is $0.7211 per pound. The following

are the two-week product price averages: butter $1.1640, nonfat dry milk

$0.8181, cheese $1.3030, and dry whey $0.1852.


3/19

DAIRY MARKET NEWS, APRIL 13 - 17, 2009 VOLUME 76, REPORT

CME GROUP

Further data and revisions may be found on the internet at: http://usda.mannlib.cornell.edu/MannUsda/viewDocumentInfo.do?documentID=1450

NASS DAIRY PRODUCT PRICES

U.S. AVERAGES AND TOTAL POUNDSCHEESE 40# BLOCKS CHEESE BARRELS NDM BUTTER DRY WHEY

WEEK ENDING 38% MOISTURE

APRIL 11 1.2761 1.2988 0.8203 1.1575 0.1931

13,449,639 10,342,660 28,126,633 3,561,504 10,750,359

BUTTER MARKETS

CME GROUP CASH NONFAT DRY MILK: Extra Grade closed the week at $0.8500 and Grade A at $0.8500. The last price change for Extra Grade was on 12/31/08 and Grade A on 04/16/09. The weekly average for Extra Grade is $0.8500 (N.C.) and Grade A is $0.8470 (+.0020).

-2-

NORTHEAST

Butter trading became atypically vibrant last week compared with during

recent months. CME Group butter activity stood out from recent months as

to: (1) the weekly average; (2) the price increase for a single day; and (3) trading

volume for the week, as well as for a single day. The weekly average for Grade

AA Butter increased to $1.1956 last week, the highest level since the week

before Christmas. The $0.0150 daily increase last Wednesday was the largest

single daily increase since December 17th. Finally, not for 8 months since the

week of August 11th, have sales of butter exceeded the daily total of 14 last

Wednesday nor the weekly total of 19 especially noteworthy because lastweek had only 4 trading days. This activity spike is believed to reflect that

some buyers found value in buying and trading at current cash butter prices.

Churning continues in most plants this week, with butter being committed to

inventory. A number of plant managers believe that current cream multiples

warrant being locked in now even considering storage costs, by making butter

for sale later in the year. Few plants received significant post-holiday order

increases from retail outlets. Cream multiples are steady to slightly higher -

ranging from occasionally the low 120s to occasionally the low 130s,

depending on location within the East, localized supply factored against

transportation costs, timing of orders and expected delivery date. Buyers with

some time flexibility, particularly those manufacturing butter for inventory,

are able to find cream toward the lower to mid point of the range and some are

particularly committed to that goal in making purchases. Ice cream manufacturing

has not yet greatly begun to challenge butter manufacturers for available cream.Through February 2009, U.S. exports of butter totaled slightly over 5.3 million

pounds, a nearly 82% decrease from the same period in 2008. This results from

the complete absence of 2009 exports to the 2 largest 2008 export markets, as

well as reductions in exports to others. One country, Saudi Arabia, accounts

for 61% of total butter exports for the first 2 months of this year. The

totalvolume exported to Saudi Arabia has remained approximately constant,

CENTRAL

Butter pricing at the CME Group is holding steady at the $1.2025 mark

midweek, just a 1/4 cent lower than the price a week ago. Many in the traare perplexed at the butter price holding at the current time, following the spri

holidays. Typically, pricing patterns weaken, allowing butter to be made a

stored for later in the year usage. Butter churning remains active in the regio

Cream usage has switched from seasonal, holiday items towards ice crea

production. Cream was handled well over the weekend with little to

distressed loads. With cheese prices declining, cream movements to chee

plants have slowed. Butter demand at the retail sector has slowed. Repo

indicate that fewer butter features are taking place, although store brands a

often priced well in comparison to branded products. Additionally, retail

are assessing holiday sales before ordering additional stocks. Buying activ

remains slow for food service accounts. Overall restaurant business h

slowed with consumers eating out less and scaling back on check tota

Additionally, they are moving down to restaurants whose menus utilize le

butter. A major Midwestern butter producer announced on April 15 that thare closing a Wisconsin plant within 60 days. Spot bulk butter prices ran

from 1/2 cent under to 2 cents over various pricing basis and averages p

pound.

being only slightly higher for the same months of 2008. However, the compl

absence of 2009 butter exports through February to the largest 2008 sourc

Russia and Egypt, as well as to a number of other countries with relativ

smaller 2008 volume, explains the overall reduced export volume. T

magnitude of lost markets is illustrated by noting that 2008 exports throu

February to Russia and Egypt were over 380% higher than 2009 exports

Saudi Arabia to date.

WESTERN BUTTER MARKET FOUND ON PAGE 2A

MONDAY, APRIL 13, 2009

CHEESE SALES: 1 CAR 40# BLOCKS @ $1.2200; LAST BID UNFILLED: 1 CAR 40# BLOCKS @ $1.2200; LAST OFFER UNCOVERED: 1 CAR BARRELS @ $1.155NONFAT DRY MILK SALES: NONE; LAST BID UNFILLED: NONE; LAST OFFER UNCOVERED: NONEBUTTER SALES: 2 CARS GRADE AA: 1 @ $1.2050, 1 @ $1.2000; LAST BID UNFILLED: 1 CAR GRADE AA @ $1.2025; LAST OFFER UNCOVERED: NONE

TUESDAY, APRIL 14, 2009

CHEESE SALES: 9 CARS BARRELS: 1 @ $1.1400, 2 @ $1.1300, 3 @ $1.1200, 2 @ $1.1125, 1 @ $1.1100; 3 CARS 40# BLOCKS: 1 @ $1.1750, 2 @ $1.1700; LAST BUNFILLED: 1 CAR BARRELS @ $1.1025; LAST OFFER UNCOVERED: 1 CAR BARRELS @ $1.1200; 1 CAR 40# BLOCKS @ $1.1700NONFAT DRY MILK SALES: NONE; LAST BID UNFILLED: NONE; LAST OFFER UNCOVERED: NONEBUTTER SALES: 4 CARS GRADE AA: 1 @ $1.2000, 1 @ $1.2025, 1 @ $1.2000, 1 @ $1.2025; LAST BID UNFILLED: 1 CAR GRADE AA @ $1.2000; LAST OFFER

UNCOVERED: 1 CAR GRADE AA @ $1.2050

WEDNESDAY, APRIL 15, 2009

CHEESE SALES: NONE; LAST BID UNFILLED: 1 CAR BARRELS @ $1.1025; 1 CAR 40# BLOCKS @ $1.1600; LAST OFFER UNCOVERED: NONENONFAT DRY MILK SALES: NONE; LAST BID UNFILLED: NONE; LAST OFFER UNCOVERED: NONEBUTTER SALES: NONE; LAST BID UNFILLED: 1 CAR GRADE AA @ $1.2025; LAST OFFER UNCOVERED: 1 CAR GRADE AA @ $1.2050

THURSDAY, APRIL 16, 2009

CHEESE SALES: 6 CARS BARRELS @ $1.1100; 1 CAR 40# BLOCKS @ $1.1700; LAST BID UNFILLED: 1 CAR BARRELS @ $1.1000; 1 CAR 40# BLOCKS @ $1.16LAST OFFER UNCOVERED: NONE

NONFAT DRY MILK SALES: NONE; LAST BID UNFILLED: 1 CAR GRADE A @ $0.8500; LAST OFFER UNCOVERED: 1 CAR GRADE A @ $0.8600BUTTER SALES: 2 CARS GRADE AA @ $1.2000; LAST BID UNFILLED: 1 CAR GRADE AA @ $1.2025; LAST OFFER UNCOVERED: NONE

FRIDAY, APRIL 17, 2009

CHEESE SALES: 5 CARS BARRELS @ $1.1100; LAST BID UNFILLED: 1 CAR BARRELS @ $1.1000; 1 CAR 40# BLOCKS @ $1.1500; LAST OFFER UNCOVERED: NONONFAT DRY MILK SALES: NONE; LAST BID UNFILLED: 1 CAR EXTRA GRADE @ $0.8200; 1 CAR GRADE A @ $0.8200; LAST OFFER UNCOVERED: NONE

BUTTER SALES: NONE; LAST BID UNFILLED: 1 CAR GRADE AA @ $1.1950; LAST OFFER UNCOVERED: NONE


4/19

DAIRY MARKET NEWS, APRIL 13 - 17, 2009 VOLUME 76, REPORT-2A-

WEST

Butter prices at the cash CME market reached the peak for the year last week

on Wednesday of $1.2050. Since that time, prices have backed off 1/4 cent.

Some contacts were surprised at the 2 1/2 cent increase noted during the week

before Easter. Many had assumed that once the holiday period demand was

covered the market would weaken or only hold steady. The strength surprised

them as well as the fact that 19 cars sold. Holiday demand overall was rated

as good to very good, but production of butter remains relatively heavy.

Demand is expected to weaken after the holiday period. Enough cream is

available for manufacturers to make as much butter for future needs as they

want. Some initial feature activity for retail butter cuts was noted as late as

Wednesday last week which surprised some contacts. According to FAS,

exports of butter and milkfat for the first two months of the year total 8.7

million pounds, down 72% from the same period in 2008. This volume is equal

to about 2.7% of the total production of butter for the two month period. The

top three export destinations, the volume shipped and the change from last year

are as follows: Saudi Arabia 3.3 million pounds, -20%; Mexico 2.7 million

pounds, +91%; and Korea .7 million pounds, +229%. These three countries

account for 77% of the exports for the period. Last week, butter stocks in CME

approved warehouses totaled 76.6 million pounds, down 3.8 million pounds

from the previous week. The weekly total compares to 124.1 million pounds

in 2008 and 124.6 million pounds in 2007. Prices for bulk butter range from

2 cents to 5 cents under the market, based on the CME with various time frames

and averages used.


5/19

CHEESE MARKETS

WESTNORTHEAST

VOLUME 76, REPORT-3-DAIRY MARKET NEWS, APRIL 13 - 17, 2009

MIDWEST

The cheese market remains weak and price declines continue on the CME

Group cash cheese market. Prices are rapidly approaching the CCC support

purchase prices, particularly on barrels. Around these levels, some plant

operators may again implement their announced absolute minimum price

programs. Spot interest is often lighter, typical when prices are declining.

Some retailers are putting together grilling promotions for Memorial Day.Current cheese offerings are available with order lead times steady to

occasionally shorter. Natural American volumes have been accumulating at

some plants. Mozzarella interest is still uneven as usual around the spring

vacation season, but generally clearing solid volumes. Some tightness is noted

on Swiss supplies. Some schools are out on break this week, reducing fluid

volumes needed by bottlers. Cheese yields continue to edge seasonally lower.

Most plants continue to operate on heavy seasonal schedules.

WISCONSIN WHOLESALE SELLING PRICES: DELIVERED,

DOLLARS PER POUND (1000 - 5000 POUNDS MIXED LOTS)

Process American 5# Loaf : 1.5675-1.7200

Brick And/Or Muenster 5# : 1.8100-1.8275

Cheddar 40# Block : 1.6400-2.5650

Monterey Jack 10# : 1.6900-2.5650Blue 5# : 2.1200-2.5200

Mozzarella 5 - 6# (Low Moisture, Part Skim) : 1.6600-2.6650

Grade A Swiss Cuts 6 - 9# : 2.1100-3.3300

Cheese prices moved down in recent days. Last weeks average for blocks

and barrels declined, reducing most wholesale cheese prices. The first 2 days

of CME Group trading this week resulted in further price declines, with

blocks down for the week so far 6 1/2 cents to $1.1700 and barrels down 6

cents to $1.1100. Fewer retail specials are being offered and that is affecting

retail demand for many varieties. In the Northeast, manufacturers mozzarella

sales are comparable to year over year sales, but seasonally weaker. However,

inventories are tight, which is maintaining strong current production levels.January February 2009 U.S. exports of cheese & curd under code 0406

totaled 36.9 million pounds, a 22% decrease from the same period in 2008,

according to the latest FAS report. The cheeses with greatest volume all

registered year to date export volumes below last year. Cheddar exports

through February 2009 were 5.2 million pounds, nearly 40% lower than

exports for the same period last year. Processed cheese exports of 4.2 million

pounds through February 2009 were 27.8% lower than the same period during

2007. Colby exports through February were 7.6% below 2008, totaling

270,000 pounds.

WHOLESALE SELLING PRICES: DELIVERED,

DOLLARS PER POUND (1000 - 5000 POUNDS MIXED LOTS)

Cheddar 10# Prints : 1.4700-1.9900

Cheddar Single Daisies : 1.4275-1.9125Cheddar 40# Block : 1.5250-1.8000

Process 5# Loaf : 1.2850-1.5250

Process 5# Sliced : 1.3000-1.6100

Muenster : 1.5450-1.7425


FOREIGN

Prices of domestic foreign type cheese declined this week while import

cheese prices are steady. Post-holiday inventories are adequate for deman

which is typically lighter after the spring holidays. Some tightness exists

Swiss markets. January February 2009 U.S. exports of blue veined cheewere up nearly 540% through February compared with last year, but on ve

small total volume of 120,000 pounds. Almost all exports were to Mexic

with a smaller volume going to Canada. Total exports of cheese & curd und

code 0406 totaled 36.9 million pounds, a 22% decrease from the same peri

in 2008, according to the latest FAS report.

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

: NEW YORKVARIETY : IMPORTED : DOMESTIC

: :

Blue : 2.6400-4.7700 : 1.6650-3.1525*Gorgonzola : 3.6900-6.3900 : 2.1675-2.4275*

Parmesan (Italy) : -0- : 3.0725-3.4925*

Romano (Italy) : 2.1000-3.6900 : -0-Provolone (Italy) : 3.4400-6.8900 : 1.7075-1.8650*

Romano (Cows Milk) : -0- : 2.8550-4.9975*

Sardo Romano (Argentine) : 2.8500-3.6900 : -0-Reggianito (Argentine) : 2.6900-6.3900 : -0-

Jarlsberg-(Brand) : 2.9500-4.7900 : -0-

Swiss Cuts Switzerland : -0- : 2.9775-3.3000Swiss Cuts Finnish : 2.5900-3.5900 : -0-

* = Price change.

WEEKLY COLD STORAGE HOLDINGS-SELECTED STORAGE CENTERS

IN THOUSAND POUNDS - INCLUDING GOVERNMENT STOCKS

BUTTER : CHEESE

:

04/13/09 20,523 : 103,207

04/01/09 21,317 : 103,521

CHANGE -794 : -314

% CHANGE -4 : N.C.

In the recent price cycle for cheese, prices peaked on March 27 at $1.29 f

blocks at the cash CME Group. Prices held above $1.28 until April 6 wh

a real downturn to the recent cycle started. Prices have lost 11 cents since th

time and closed at $1.17 at midweek. The price inversion, barrels above bloc

that had maintained for most of March, has righted itself to blocks being abo

barrels again. Barrels are currently 6 cents below blocks and only 1 cent abo

the CCC support price. This is the lowest price for barrels since January 2

Contacts are not sure why both types of cheese are declining this rapidlythis time. Cheese is available, but the volume offered is not that much differe

than in recent weeks. Demand is still being called good for the most part. Buye

had stocked up to some extent when prices were at the low point of the la

cycle, but the volumes were not thought to be that heavy. Offerings of und

grade cheese are being offered at aggressively high prices and they are meeti

some push back. According to FAS, exports of cheese and curd for the fi

two months of the year total 36.9 million pounds, down 22% from the sam

period in 2008. These exports account for 2.3% of the total cheese producti

for the two month period. The top four export destinations, the volum

shipped and the change from last year are as follows: Mexico 15.4 milli

pounds, +25%; Korea 4.1 million pounds, -25%; Canada 2.8 million pound

-27%; and Japan 2.2 million pounds, -36%. These four countries account

for 66% of the exports for the period.

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

Process 5# Loaf : 1.3325-1.5900

Cheddar 40# Block : 1.3650-1.7175

Cheddar 10# Cuts : 1.5450-1.7650

Monterey Jack 10# : 1.5550-1.7150



6/19

DAIRY MARKET NEWS, APRIL 13 - 17, 2009 VOLUME 76, REPORT

FLUID MILK AND CREAM

E A S T

THIS WEEK LAST WEEK LAST YEAR

IN OUT IN OUT IN OUT

FLORIDA 0 189 0 215 0 100

SOUTHEAST STATES 0 0 0 0 0 0

Spot shipments of Grade A milk into or out of Florida and other Southeastern states

M I D W E S T

FLUID CREAM AND CONDENSED SKIM PRICES IN TANKLOT QUANTITIES

SPOT PRICES OF CLASS II CREAM, $ PER LB BUTTERFAT

F.O.B. PRODUCINGPLANTS: NORTHEAST - 1.4347-1.5901

F.O.B. PRODUCINGPLANTS: UPPER MIDWEST - 1.4706-1.5304

PRICES OF CONDENSED SKIM, DOLLARS PER LB. SOLIDS,

F.O.B. PRODUCING PLANTS:

NORTHEAST - CLASS II - INCLUDESMONTHLYFORMULAPRICES - .72 - .91

NORTHEAST - CLASS III - SPOTPRICES - .83 - .92

-4-

W E S T

Milk production is increasing seasonally throughout the East. Butter productionand drying schedules are active to help clear intakes. NORTHEAST production

is moving toward the expected peak in late May. Weather is pleasant, reaching

highs in the 50s in recent days. Increasing milk production is keeping plants

active, but able to handle the volume. Drying capacity is mostly committed

to nonfat dry milk, leaving little capacity to dry buttermilk resulting from active

churning. MIDDLE ATLANTIC milk production is strong and climbing. Spot

market cream is available at multiples generally unchanged from last week.

More available regional cream following the peak of last-minute holiday

production resulted in less spot cream movement from the West. Retail fluid

milk sales have been steady. Warmer weather in the SOUTHEAST is resulting

in more time in pastures for cows. Balancing plants experienced smoother than

anticipated flows of milk late last week heading into the holiday weekend. Milk

production continues to increase and there is little culling impact evident to

managers of a number of plants. Normally idle plant capacity available tohandle production peaks is now operating. This results in drying to make

cheese powders and cultured dry products. FLORIDA cows are producing

"lots of milk". Weather has been pleasant with humidity levels tolerable for

cow comfort. Milk intakes, which were building with insufficient committed

destinations as of early last week, unexpectedly cleared as the week progressed.

This reduced end of week inventory levels which resulted in reduced numbers

of shipments out of the state from 215 last week, to 189 this week.

CONDENSED SKIM demand remains weak with many buyers preferring

nonfat dry milk. Some spot sales have occurred at discounted prices as plants

work to handle intakes. CREAM spot market multiples are generally

unchanged to slightly higher in certain locations and timing situations. The

weakening of multiples that some people had hoped for late last week heading

into a holiday weekend, with some plants closed for 1 day, generally did notmaterialize. Many butter manufacturers are churning to convert cream at

current multiples into butter for storage and future sale at what they believe

will be higher prices. Ice cream production is varied throughout the region,

somewhat up in some areas, but not generally to levels challenging butter

manufacturers for cream or driving regional cream multiples up.

Class I interest continues to be affected by some schools out on spring break

while others rotate back into session. Retail fluid interest was also lighter after

the holidays. Non-ice cream Class II product orders were uneven, from lighter

to occasionally good. Recent announcements including closing a large upper

Midwest butter plant as well as the recent sale of a pair of bottling plants are

expected to cause changes in milk and cream buyers, particularly around major

holidays and the peak production period. Some speculate cream multiples may

be lower due to reduced competition. Extra cream was available over the

holiday weekend but current plant capacity was adequate to easily handle the

extra offerings though multiples were lower over the weekend. Churning was

The May 2009 Class 1 prices in California range from $12.68 in the north$12.96 in the south. The statewide average Class 1 price based on product

is $12.71. The average is $1.11 higher than April 2009 but $6.10 less than M

2008. CALIFORNIA milk production is mostly steady with recent week

levels near or below a year ago. The effects of cow culling, reformulated rati

and producer base plans are still impacting the milk flow. New crop hay a

green chop are being fed, which is stimulating additional milk. Process

continue to see fat and protein levels below expectations. Plants are at or n

capacity in the state and some milk and/or components are moving out to f

a processing home. ARIZONA milk output is surprising processors. T

thought was that milk peaked for the season a few weeks ago as the fl

declined off that level. In recent days, milk receipts have picked up a

surpassed the levels of a few weeks ago. Weather and feed are major reaso

Plants are full and able to take in very little outside milk. CREAM markare unsettled. Demand for cream has shifted from holiday cream based ite

towards ice cream production with butter production remaining acti

Multiples and overages have eased slightly. Many contacts are comment

on the strength of the butter prices, despite the passing of the spring holida

Tradition would have the butter price ease lower around or after the holid

to compensate for butter to be stored. The CME Group butter price for Gra

AA closed at $1.2025 on Wednesday, April 15, down just 1/4 of a cent fr

a week earlier. Multiples range from of 108-120 FOB and vary depending

class usage and basing points. Milk production is holding flat in the PACIF

NORTHWEST. Some comments were heard that some producers are wait

to see how the current herd buyout program works out before making a decis

about what to do. Some are also concerned that banks may lower the value

animals on farms which will make loan renewals much more problema

Weather conditions are finally becoming more spring-like. Limited pasturand some green chopping are beginning in coastal areas. Mud is less of a probl

on the east side and the green up has started. Prices at the monthly heifer s

were about $50 higher and in a range of $1250-1450. Numbers sold remain

the light side. Winter weather is still an issue in UTAH and IDAHO w

comments noted this week that "I am looking out the window and cant

across the road". Conditions are muddy again adding to cow stress. The w

and cool cycle may continue into next week. Most believe that a late spr

is now guaranteed. This will not help with cost of production issues. Pric

continue to firm a bit at the two heifer sales in the region. The top of the mark

vary from $1580-1750 and the averages are $1420-1600.

active as some other users were closed an extra day for the holiday weeke

Ice cream production is mixed with additional warm weather ice cream/s

serve outlets opening while a few other producers are lighter after holid

orders were filled. Manufacturing milk was often lighter, especially after rec

cheese price declines cause buyers to delay purchases. There were not enou

prices to report a range. Current milk intakes are steady to slightly high

Many plant operators are surprised that low milk prices have not genera

a larger cow culling. At least one commented that job prospects off the fa

are not promising. Some small grains are being seeded though the soil waup is slow in northern tier states with night time temperatures generally s

in the 30s. Some late planted winter wheat last fall is finally emerging

northern states and the rest is greening slowly. Some soil preparation

occurring but wet weather has slowed the start of corn planting.

WISCONSIN LIVESTOCK AUCTIONS (PER CWT.)

APR 9 - 15 PREVIOUS YEAR

SLAUGHTER COWS $ 43.00- 50.00 $ 47.00- 52.50

REPLACEMENT HEIFER CALVES $ 75.00-290.00 $350.00-650.00


7/19

-5-

NDM, 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.

DAIRY MARKET NEWS, APRIL 13 - 17, 2009 VOLUME 76, REPORT 15

NONFAT DRY MILK - CENTRAL AND EAST

CENTRAL: The Central nonfat dry milk market is mixed and prices moved

both higher and lower. Manufacturer inventories are tighter and fewer spot

market offerings from producers are being reported. Sales of fluid milk into

Class I are steady. Class I needs at various school districts have been lower during

the last few weeks as spring break schedules rotate through the states. Retailsales are holding steady as price discounts are still drawing consumers to bottled

milk purchases. Nonfat dry milk production is steady to somewhat higher as

some Class II condensed skim end users have been on plant shutdown for one

or more days. Most plants are focusing on low heat nonfat dry milk production.

Some resales of NDM are occurring at the high end of the range. Foreign

Agricultural Service reports that February 2009 exports of nonfat dry milk

under Schedule B code 0402100000 total 12.6 kilotons (kt). This is about a

42% decrease from January 2009 exports and a 66% decrease from February

2008 exports. Cumulative 2009 exports through February total 34.6 kt, a 50%

decrease from the same time span in 2008. The top three destinations for

nonfat dry milk thus far in 2009, export amounts and percentage changes from

the same time span in 2008 are: Mexico (9.5 kt, -57%), Philippines (6.7 kt,

-21%) and Indonesia (5.2 kt, -3%). These 3 export destinations account for

61% of the total January February 2009 nonfat dry milk exports.

EAST: Eastern nonfat dry milk prices moved higher and lower for the week.Production of nonfat dry milk is heavy. A number of plants are operating dryers

at or near full capacity to clear heavy intakes. Manufacturers continue to offer

contracts to prospective buyers in need of regular supply. However, buyers

continue to be somewhat reluctant to commit without price terms sellers are

adverse to. Product is available on spot markets.

F.O.B. CENTRAL/EAST: Includes EXTRA GRADE and GRADE A

LOW/MEDIUM HEAT: .8325 - .9000 MOSTLY: .8500 - .8700

HIGH HEAT: .8550 - .9700

NONFAT DRY MILK - WEST

Western low/medium heat nonfat dry milk prices continue to trend slightly

higher with the market undertone unsettled. The market is weak consideringthat surplus NDM continues to clear to the CCC support program. The market

is steady to firm in the domestic market where offerings are generally being

made on the light side. Additionally, demand has been fair to good as buyers

looked to secure product because they felt the market price was moving up and

they wanted coverage. Export interest has been slow, especially compared to

a year ago. World conditions have slowed and the U.S. is not the first choice

in securing needs. Established export business continues with some new smaller

quantity deals being worked out. As cheese prices falter, so does the demand

for condensed skim and NDM in cheese production. Drying has been active

to process the seasonally higher milk production. Stocks are available. For the

week April 6-10, 2.2 million net pounds of Western NDM were purchased by

CCC, as the total reaches 211.6 million pounds. For January - February 2009,

FAS reports exports of NDM/SMP at 34,565 MT (76.2 million pounds),

compared to 69,719 MT (153.7 million pounds) a year earlier, a decrease of

50%. The top 5 countries for exports are: Mexico, 9479 MT; Philippines,6717 MT; Indonesia, 5183 MT; Malaysia, 3596 MT; and Algeria 2429 MT;.

The top five countries account for 79% of the total exports during the two

months. Exports in February were 66% less than a year ago.

F.O.B. WEST: Includes EXTRA GRADE and GRADE A

LOW/MEDIUM HEAT: .8000 - .8475 MOSTLY: .8000 - .8300

HIGH HEAT: .8600 - .9950

DRY BUTTERMILK - CENTRAL AND EAST

CENTRAL: Central dry buttermilk prices are higher on a firm market

Production is unchanged at most plants. Sales of condensed buttermilk load

into Class II facilities are active from some locations. Dry buttermilk

inventories are steady to lower as contracted sales move seasonally higher

leaving less product to move into the spot market from manufacturers. A few

end users are supplanting dry buttermilk use with NDM or condensed skim

combined with cream. Some Western dry buttermilk is clearing into the Centraregion.

EAST: Eastern dry buttermilk prices decisively increased in reflection of the

very tight supply situation. Prospective buyers have a difficult time finding

dry buttermilk for spot market purchases. Butter manufacturing is steady and

condensed buttermilk is being generated, but drying tends to be limited due to

priority commitment of dryer capacity to nonfat dry milk. Condensed

buttermilk is available for drying, with some manufacturers wishing it could be

dried, but market factors allocating dryer capacity is the limiting factor

Contracted sales are moving on schedule.

F.O.B. CENTRAL/EAST: .8400 - .9025

DRY BUTTERMILK - WEST

Dry buttermilk prices in the West are higher and the market tone remains firmSome producers are trying to push market prices higher to close the gap between

Central and Western pricing. The gap is wide enough to offset freight but there

are few offerings to fill demand. Production remains limited with NDM taking

as much dryer time as available with most Western plants full. Buttermilk stocks

remain light.

F.O.B. WEST: .6600 - .7200 MOSTLY: .7000 - .7100

DRY WHOLE MILK - NATIONAL

Prices for dry whole milk moved higher based on mostly steady nonfat milk

prices and higher butterfat prices. Production is infrequent as most plants ar

clearing intakes with NDM production versus dry whole milk. Inventories are

sufficient for near term contact fulfillment. According to the ForeignAgricultural Service, February 2009 dry whole milk and cream exports unde

Schedule B code 0402210000 fell by about 82% compared to February 2008

from 2.4 kilotons (kt) to .4 kt, decreased by about 71% from January 2009 (1.4

kt). Cumulative 2009 exports through February total 1.9 kt, a 62% decreas

from the same time span in 2008. Mexico (.8 kt), Dominican Republic (.4 kt

and Japan (.3 kt) are the top three destinations for dry whole milk and cream

exports thus far in 2009, accounting for 84% of the total 2009 dry whole milk

and cream exports.

F.O.B. PRODUCING PLANT: 1.1000 - 1.1500

CALIFORNIA MANUFACTURING PLANTS - NDM

WEEK ENDING PRICE TOTAL SALES SALES TO CCC

April 10 $.8090 18,540,753 4,969,083

April 3 $.8072 22,033,511 4,520,520

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.


8/19

-6-

WHEY, CASEIN & EVAPORATED 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.

VOLUME 76, REPORT 15DAIRY MARKET NEWS, APRIL 13 - 17, 2009

DRY WHEY - CENTRAL

Prices for Central dry whey are higher on a firm market. Spot marketofferings direct from manufacturers are variable, with some plantshaving little or no product available. Some contracted customersare tacking on purchases of one or two additional loads above theirmonthly contract allotment. This practice is curtailing some whey

manufacturers spot market activity. Price resistance is temperingsome demand as buyers are declining offers with higher premiumsto the market. Inventories held by resellers are mostly steady. SomeCentral whey is moving into the Western region to fill supply gaps.A few producers report higher interest in Grade A whey as extragrade whey becomes more difficult to obtain. Prices on animal feedwhey increased. Various manufacturers of livestock feed reportdemand from both heifer replacement and veal raising accounts aremostly steady, but several manufacturers of livestock feed hadpurchased whey products ahead of time and their internal need toreplenish inputs is limited in the near term. Foreign AgriculturalService reports that February 2009 dried whey exports under ScheduleB code 0404104000 totaled 16.0 kilotons (kt). This export total is anincrease of 15.0% compared to exports during February 2008 and anincrease of 12.4% over January 2009. The three largest 2009 U.S.

export markets for dried whey, total exports for January February2009, and percent change in amounts exported compared to 2008 are:Peoples Republic of China, 6.1 kt, (+40.9%); Japan, 6.0 kt (+51.8%);and Canada, 4.1 kt (+36.2%). Exports to those three countriesaccount for about 54% of all U.S. dried whey exported during the firsttwo months of 2009.

F.O.B. CENTRAL: .1875 - .2175 MOSTLY: .1950 - .2150

F.O.B. CENTRAL: ANIMAL FEED MILK REPLACER: .1400 - .1750

DRY WHEY - NORTHEAST

Eastern dry whey prices continued the weekly trend of firming thathas prevailed since the first week of March. Manufacturers arereceiving more inquiries from prospective customers than they have

dry whey to sell. Inquiries are from prospective domestic andforeign customers and most new inquiries cannot be accommodated.Production tends to be committed for sale under contracts and somemanufacturers are finessing delivery schedules to keep their contractbuyers satisfied. Dry whey supplies are sufficiently tight that thereis consideration being given by some manufacturers to attemptingto buy condensed whey, supplementing their internal production,for drying to generate more whey powder.

F.O.B. NORTHEAST: EXTRA GRADE AND GRADE A: .2225 - .2650

DRY WHEY - WEST

Whey prices in the Western region continue to increase with a firmundertone to the market. Buyers are often not able to get all thepowder that they want. Manufacturer inventories are balanced to

short of needs. Production levels are about steady and at seasonallyexpected levels. Demand is noted as aggressive from both the exportmarket and domestic users. According to FAS, exports of whey forthe first two months of the year total 66.5 million pounds, up 16%from the same period last year. Exports account for 39% of total wheyproduction for the two months. The top five export destinations, thevolumes sold, and the change from last year are as follows: China13.5 million pounds, +41%; Japan 13.3 million pounds, +52%;Canada 9.1 million pounds, +36%; Mexico 4.9 million pounds,+215%; and Malaysia 4.4 million pounds, +11%. These five countriesaccount for 68% of the exports for the two months.

NONHYGROSCOPIC: .1975 - .2600 MOSTLY: .2200 - .2400

WHEY PROTEIN CONCENTRATE - CENTRAL AND WEST

Prices for whey protein concentrate 34% moved both higher andlower on the range price series, but the mostly price series isunchanged. Manufacturer inventories range from tight to someproduct availability. Several contract holders are readily takingadditional loads from their regular suppliers beyond monthly

obligations. This is limiting the exposure of those manufacturers tothe spot market. Spot market offers from resellers are available, withsome end users noting offers from that market sector are morefrequent. Demand from a few international customers is reportedlyslowing in response to unfavorable monetary exchange rates. ForeignAgricultural Service reports that during February 2009, exports ofWPC 34% under Schedule B code 0404100500 totaled 7.7 kilotons (kt)an increase of 68.5% compared to January 2009, and a 13.0% increasefrom February 2008. Exports to Mexico (3.5 kt), China (2.6 kt) andJapan (.6 kt) accounted for 87% of all the WPC 34% exported duringthe month. Cumulative 2009 exports through February 2009 total 12.2kt., a decrease of about 8.3% compared to the same time span of 2008February 2009 exports of WPC 80% under Schedule B code 3502200000(which includes milk albumin concentrates of two or more wheyproteins which contain by weight more than 80% whey proteinscalculated on a dry matter basis), totaled 1.0 kt, 4.6% above January2009, and 7.5% above February 2008. Exports to Canada (.3 kt), China(.1 kt) and Mexico (.1 kt) accounted for 55% of all the WPC 80%exported in February 2009.

F.O.B. EXTRA GRADE 34% PROTEIN: .5300 - .6125 MOSTLY: .5400 - .5550

LACTOSE - CENTRAL AND WEST

Lactose prices are unchanged to lower as second quarter contracand spot market prices evolve. Lactose production is steady at someplants, but somewhat lower at others as various cheese manufacturershave curtailed purchases of spot loads of milk during the last weekor two. Inventories are mixed. Some buyers have worked out flat pricecontracts with manufacturers that exceed quarterly boundaries. A

few manufacturers report interest from some South American andAsian customers is increasing. Foreign Agricultural Service reportthat February 2009 lactose exports under Schedule B code 1702110000totaled 8.5 kilotons (kt). This is an increase in exports of 18.0%compared to January 2009 but about a 16% decrease from February2008 export quantities. Cumulative 2009 exports through Februarytotal 15.7 kt, a 1.7% decrease from the same time span in 2008. PeopleRepublic of China (3.4 kt), Japan (2.5 kt) and Mexico (1.7 kt) are thetop three destinations for lactose exports thus far in 2009, accountingfor 49% of the 2009 lactose exports.

Including spot sales and up to 3 month contracts. Mesh size 30 - 100.

F.O.B. EDIBLE: .0850 - .1800 MOSTLY: .1200 - .1650

CASEIN - NATIONAL

The casein market is showing signs of strength at the bottom of therange. Sellers are holding current stocks with more confidence. Somebuyers are covered for various periods though some others continueto look to the spot market for product. Supplies continue to move frominventory in Oceania and Europe. Reports indicate that manyEuropeans producers are holding back new product sales somewhatunder the expectation of possible higher prices. European productionis increasing seasonally though producers are trying to just makeenough to cover regular customers and not build extra inventory thisseason.

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: 2.7500 - 3.0000

ACID: 2.7500 - 2.9000


9/19

DAIRY MARKET NEWS, APRIL 13 17, 2009 -7- VOLUME 76, REPORT

CCC PURCHASES OF DAIRY PRODUCTS (POUNDS)

FOR THE WEEK OF APRIL 13 17, 2009 CUMULATIVE TOTALS UNCOMMITTED INVENTORI

TOTAL CONTRACT ADJUSTED SINCE SAME PERIOD WEEK ENDING SAME PERI

PURCHASES ADJUSTMENTS PURCHASES 10/01/08 LAST YEAR 04/10/09 LAST YEA

UTTER

Bulk -0- -0- -0- 4,639,010 -0- -0- -0-

OTAL -0- -0- -0- 4,639,010 -0- -0- -0-

HEESE

Block -0- -0- -0- -0- -0- -0- -0-

Barrel -0- -0- -0- -0- -0- -0- -0-

OTAL -0- -0- -0- -0- -0- -0- -0-ONFAT DRY MILK

Nonfortifed 8,241,344 1,617,050 6,624,294 218,219,205 -0- -0- -0-

OTAL 8,241,344 1,617,050 6,624,294 218,219,205 -0- -0- -0-

MILK EQUIVALENT, FAT SOLIDS BASIS, OF ADJUSTED PURCHASES (MILLION POUNDS)

MILKFAT* SKIM** MILKFAT* SKIM

BASIS SOLIDS BASIS SOLID

WEEK OF APRIL 13 - 17, 2009 = 1.5 77.1 COMPARABLE PERIOD IN 2008 = 0.0 0.

CUMULATIVE SINCE OCTOBER 1, 2008 = 149.1 2,540.6 CUMULATIVE SAME PERIOD LAST YEAR = 0.0 0.

CUMULATIVE JAN. 1 APR. 17, 2009 = 123.9 1,207.1 COMPARABLE CALENDAR YEAR 2008 = 0.0 0.

Factors used for Fat Solids Basis - Butter times 21.80; Cheese times 9.23; and Nonfat Dry Milk times 0.22*Factors used for Skim Solids Basis - Butter times 0.12; Cheese times 9.90; and Nonfat Dry Milk times 11.64

CCC ADJUSTED PURCHASES FOR THE WEEK OF APRIL 13 - 17 2009 (POUNDS)

BUTTER CHEESE NONFAT DRY MILKEGION BULK BLOCK BARREL NONFORTIFIED

ENTRAL -0- -0- -0- -0-

EST -0- -0- -0- 6,624,294

AST -0- -0- -0- -0-

CCC ADJUSTED PURCHASES SINCE 10/1/08 AND SAME PERIOD LAST YEAR (POUNDS) AND MILK EQUIVALENT AS A PERCENT OF TOTAL

BUTTER CHEESE NONFAT DRY MILK MILK EQUIVALENT

EGION 2008/09 2007/08 2008/09 2007/08 2008/09 2007/08 2008/09 2007/

ENTRAL -0- -0- -0- -0- -0- -0- -0- -0

EST 4,639,010 -0- -0- -0- 218,219,205 -0- 100.00 -0

AST -0- -0- -0- -0- -0- -0- -0- -0

OTAL 4,639,010 -0- -0- -0- 218,219,205 -0- 100.00 -0

SUPPORT PURCHASE PRICES FOR DAIRY PRODUCTS EFFECTIVE JANUARY 2009

UTTER Bulk $1.05 per pound

HEESE 40# Blocks $1.13 per pound; 500# Barrels $1.10ONFAT DRY MILK $.8000 per pound

U.S. Dairy & Total Cow Slaughter under Federal Inspection, by Regions, for Week Ending 03/28/09 & Comparable Week 2U.S. TOTAL % DAIRY OF ALL

egions* (000 HEAD) 1 2 3 4 5 6 7 8 9 10 WEEK SINCE JAN 1 WEEK SINCE JAN 1

009-Dairy N.A. 0.5 7.2 2.8 16.3 3.5 0.4 N.A. 14.5 4.4 51.1 778.8 47.1 49.5

008-Dairy N.A. 0.5 7.0 2.6 16.4 3.2 0.3 N.A. 14.2 3.2 48.8 664.5 45.4 44.9

009-All cows N.A. 0.5 9.0 12.0 29.9 16.4 13.1 N.A. 16.8 7.2 108.4 1,572.5

008-All cows N.A. 0.6 8.7 12.9 30.4 15.2 14.3 N.A. 15.4 6.2 107.5 1,479.6

OURCE: The slaughter data are gathered and tabulated in a cooperative effort by the Agricultural Marketing Service,

he Food Safety and Inspection Service, and the National Agricultural Statistics Service, all of USDA.

CANADIAN DAIRY BREEDING FEMALE IMPORTS

EEK ENDING WEEKLY TOTAL 2009 CUMULATIVE TOTAL

PRIL 4, 2009 458 2,942 SOURCE: USDA, AP

CLASS III MILK PRICES,(3.5% BF)EAR JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

005 14.14 14.70 14.08 14.61 13.77 13.92 14.35 13.60 14.30 14.35 13.35 13.37

006 13.39 12.20 11.11 10.93 10.83 11.29 10.92 11.06 12.29 12.32 12.84 13.47

007 13.56 14.18 15.09 16.09 17.60 20.17$ 21.38 19.83 20.07 18.70 19.22 20.60

008 19.32 17.03 18.00 16.76 18.18 20.25 18.24 17.32 16.28 17.06 15.51 15.28

FEDERAL MILK ORDER CLASS PRICES FOR 2009 (3.5% BF)LASS JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

I 1/ 15.74 10.72 9.43 10.36 10.97II 10.41 10.25 10.36

II 10.78 9.31 10.44

IV 9.59 9.45 9.64/ Specific order differentials to be added to this base price can be found by going to: www.ams.usda.gov/DairyMarketingStatistics; t

elect Prices; and then select Principal Pricing Points. $ Revised


10/19

INTERNATIONAL DAIRY MARKET NEWS

Information gathered APRIL 6 - 17, 2009

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/o

regions. Future reports may be included or withdrawn depending on availability of information. MT = metric ton = 2,204.6 pounds.

DAIRY MARKET NEWS, APRIL 13 - 17, 2009 VOLUME 76, REPORT 15

WESTERN AND EASTERN EUROPE OCEANIA

-8-

WESTERN OVERVIEW: Milk production is moving along at expected levelsacross Western Europe with most countries at or near year ago levels. Decliningpay prices have had a great influence on the milk flow which has most countries

at or below expected and quota levels. On Wednesday April 8, it was announcedthat the common or list refund for EU export subsidies will remain unchanged:

Skim milk powder 190 Euros per MT, whole milk powder 290 Euros, butter550 Euros, butteroil 666 Euros, and cheese 198.4 Euros. Under the tendering

system, 16,748 MT of skim milk powder were bid with awards of 13,398 MTof this volume at a maximum of 220 Euros per MT; butter, 10,516 MT bid,

4,816 MT receiving awards at a maximum of 600 Euros per MT; and butteroil,bids totaled 1,174 MT, awards of 632 MT at a maximum of 730 per MT.Maximum levels of intervention for butter (30,000 MT) were quickly filled

during the early days of the open season thus subsequent offerings are beingaccepted under a tendering system. Butter intervention totals, as of April 3are around 51,300 MT. Skim milk powder offerings now total around 97,350MT with maximum levels that would receive full restitution totaling 109,000

MT. PSA totals for butter are near 68,500 MT. Overall, export sales are slow.The general weak world economy is a major factor with the buying power of

importing countries greatly impacted and lower than a year ago. Often, andespecially without subsidies, pricing out of Europe is higher than Oceania.

BUTTER/BUTTEROIL: Butter markets in Europe are steady to slightly firmerwhere prices have moved higher. Butter intervention has maxed out at30,000MT and additional butter is being offered into intervention under thetendering system. On Wednesday, April 8, common or list refund for EU export

subsidies were announced as unchanged: butter 550 Euros and butteroil 666Euros. Under the tendering system, 10,516 MT of butter were bid with awards

of 4,816 MT of this volume at a maximum of 600 Euros per MT; butteroil,bids totaled 1,174 MT, awards of 632 MT at a maximum of 730 per MT. Butterintervention totals, as of April 3 are around 51,300 MT. PSA totals for butterare near 68,500 MT. Exporting of both butter and butteroil is slow to develop

at current pricing levels, especially where traders find lower prices out ofOceania.82% BUTTERFAT: 2,700 - 2,900

99% BUTTERFAT: 2,900 - 3,100

SKIM MILK POWDER (SMP): European skim milk powder prices are fullysteady. The market undertone is unchanged, characterized by producerofferings into intervention, steady domestic sales, and slow export movements.Production levels are seasonal. Stocks are in excess of demand. On Wednesday

April 8, it was announced that the common or list refund for EU export subsidieswill remain unchanged with skim milk powder at 190 Euros per MT. Underthe tendering system, 16,748 MT of skim milk powder were bid with awards

of 13,398 MT of this volume at a maximum of 220 Euros per MT. As of April3, SMP offerings now total around 97,350 MT with maximum levels that would

receive fully restitution totaling 109,000 MT.1.25% BUTTERFAT: 2,025 - 2,250

WHOLE MILK POWDER (WMP): The whole milk market tone and pricing

are mostly steady. Traders and handlers are noting that demand is slightlyhigher and improved. As other regions are committed, traders can find WMPfrom European sources. WMP offerings are steady to higher, reflecting

increases in production in areas of Western Europe, notably in Ireland andHolland. On Wednesday April 8, it was announced that the common or list

refund for EU export subsidies will remain unchanged with whole milk powderat 290 Euros.26% BUTTERFAT: 2,200 - 2,450

SWEET WHEY POWDER: European whey prices are unchanged from themost recent report in what is described as a stable market. Export markets areslow to rematerialize, yet delivered prices for Europe are in line with U.S.

powder. The market tone is also dependent on brand and location. Worldeconomic conditions continue to affect buying patterns.

NONHYGROSCOPIC: 490 - 575

EASTERN OVERVIEW: Little new news has developed out of Eastern Europeaffecting the milk and dairy product markets. Milk production is steady to

increasing slightly as the milk season begins to build. Sales of dairy products

are fair at best with sales of stored product more likely to move than currentlyproduced products.

OCEANIA OVERVIEW: Seasonal declines in milk output continue as the

milk producing season winds down. The autumn season has been favorableweather. Economic conditions in local economies are affecting milk production

Unsettled world conditions, currency valuations, and credit availabilities, allplay out as demand factors for exporting and contracting for future exports

Farm milk prices will likely hold through the season. Milk pricing values fornext season remain a big concern. Australian milk figures for February are

adjusting lower and the seasonal totals are projected to come in at around thesame level as the prior season. Early season gains are being erased by later season

declines. New Zealand milk flow is trending lower. The milk year totals YTD

indicate around a 5% increase over the prior year with the heaviest gains notedearly in the year with current numbers declining as the year progresses. Prices

for manufactured dairy products are steady to slightly higher. Most productshave been contracted or are being held for expected business in coming months

BUTTER: Oceania butter prices are unchanged and the market tone is mostly

steady. Butter churning activity is slower and reflective of the declining milkintakes as the season moved towards the end. Offerings are lighter, mainly

because butter has been committed. Most of the current production is movingto fill contracted volumes or is being used to fill in for domestic needs inAustralia. Production estimates for the season for Australia show butter a

+16% over the prior production year.82% BUTTERFAT: 1,600 - 2,000

CHEDDAR CHEESE: The cheese market is steady with pricing slightly

higher on the top end of the range. Cheese output is trending lower as theproduction season winds down and less milk is moving into cheese facilities.

Demand for cheese has been generally good to clear or commit stocks. Producmovement into Asia is slower than projected and future sales are beingnegotiated. Australian cheese production for the season is running 3% lower

through February than during the previous year.39% MAXIMUM MOISTURE: 2,200 - 2,700

SKIM MILK POWDER (SMP): Oceania skim milk powder prices are steadyto lower on the top end of the range. The market tone is mostly steady withsome pricing moving higher within the range. Most producers and handler are

in good balance with their current stock positions. Demand has been good andmore SMP has been committed. Drying times are often lower and reflect thedeclining milk supplies. Australian SMP output for the season through February

is running 26% ahead of last year.1.25% BUTTERFAT: 1,800 - 2,100

WHOLE MILK POWDER (WMP): Oceania whole milk powder prices aresteady to higher. The market tone is being buoyed by recent improved pricinglevels at the latest globalDairytrade trading in April. Also, with the production

season winding down, more WMP is being committed or held for long standingcustomers. Australian production for the season through February is 2.5%lower that the previous year.26% BUTTERFAT: 1,900 - 2,250

Exchange rates for selected foreign currencies: April 13, 2009

.8202 Canadian Dollar .0201 Indian Rupee

.2716 Argentina Peso .5917 New Zealand Dollar

.0761 Mexican Peso .7311 Australian Dollar

.3077 Polish Zloty .0099 Japanese Yen

1.3375 Euro

To compare the value of 1 US Dollar to Mexican Pesos: (1/.0761) = 13.1406

Mexican Pesos. Source: Wall Street Journal


11/19


12/19

DAIRY MARKET NEWS, APRIL 13 - 17, 2009 -10- VOLUME 76, REPORT 15

THE DAIRY OUTLOOK

Dairy Herd Contraction, Already Underway, Is Having an Impact

on Prices

Dairy cow slaughter surged ahead of year-earlier levels for the third month in a row in February, aided in partby the sixth Cooperatives Working Together (CWT) buyout since 2003, which removed over 50,000 cowsfrom the dairy herd, mostly in the first quarter of 2009. According to recentLivestock Slaughterreports, dairycow slaughter had moved ahead of year-earlier levels for much of 2008. The liquidation has been especiallynotable in the mountain western states. For the country as a whole, slaughter was 17 percent above year-earlier levels in February, 19 percent in January, and 12 percent in December. However, by region, slaughterexceeded year-earlier levels by 46 percent in December and 118 percent in January for region six, whichincludes New Mexico, Oklahoma, and Texas. January and February slaughter exceeded year-earlier levels by83 and 49 percent, respectively, in region ten, which includes Idaho, Oregon, and Washington. Other regionsalso recorded double-digit increases in cow slaughter. Although The CWT program is expected to removeadditional cows from the herd by this summer, these data suggest that herd liquidation is well underway. The

liquidation appears to be strongest in those regions that expanded most rapidly in the last few years. USDAforecasts that the dairy herd will contract to an average 9.2 million cows in 2009, compared with 9.3 millionin 2008. The contraction is expected to continue throughout the year; by the fourth quarter of 2009, thenumber of dairy cows will likely average about 300 thousand fewer than those on hand in the fourth quarterof 2008.

Expected corn and soybean meal prices have been revised upward from earlier forecasts. Higher feed costswill likely continue to pressure producer profits. Milk per cow will climb only incrementally in response topoor producer returns. The yield increase is expected to be less than one-half of 1 percent this year, adjustingfor leap-year, continuing the trend toward smaller year-over-year increases that began in 2006. The outcomefrom these adjustments is a decline in milk production in 2009 to 187.1 billion pounds from 190.0 billionpounds in 2008.

Cheese production rose slightly in February after adjusting for the extra day in February 2008. Production ofcheddar and mozzarella showed declines even after adjustment. Overall production was higher because ofincreases in Hispanic cheeses, Italian types beside mozzarella, and other cheeses. February stocks of allcheeses were 11 percent above year-earlier levels. Commercial disappearance for all cheese was down onlyslightly in January compared with a year earlier, the last month for which figures are available. Marketadjustments so far have led to cheese prices increasing from the lows observed earlier in 2009. The decline inmilk production is expected to cause further declines in cheese production. Declining retail cheese prices thathave lagged falling wholesale prices are finally beginning to boost consumption. Lower prices compared withlast year will likely continue to boost consumption. Lower milk production and somewhat higher domesticuse will likely raise prices toward the end of 2009. For the year, prices are expected to average $1.270 to$1.320 per pound.

Continued on page 11


13/19

DAIRY MARKET NEWS, APRIL 13 17, 2009 -11- VOLUME 76, REPORT 15

The year-over-year decline in butter production was a scant 0.9 percent. Butter stocks declined in Februarycompared with a year earlier. According to Dairy Market News, international demand for butter is weak.Since the first of the year, the Commodity Credit Cooperation (CCC) has contracted to buy 4.6 millionpounds of butter, but higher prices are expected to preclude additional butter purchases this year. The

domestic demand outlook for butter is similar to that for cheese except that Government purchases havehelped ease commercial stocks of the former somewhat. The price scenario for butter is similar to that forcheese, as reduced milk production could boost prices toward the end of 2009. The butter price is expected toaverage $1.155 to 1.235 per pound for the year.

With nonfat dry milk (NDM) prices near support levels, domestic use appears to be strengthening. However,since the first of the year, about 100 million pounds of NDM have moved into CCC inventories, but the paceof removals has slowed. There is some increased foreign demand because production from Oceania, althoughimproved over recent drought years, did not reach expectations. However, a weaker world economy may limitdemand. Prices for NDM are forecast to remain above support, averaging 83.0 cents to 87.0 cents per poundin 2009.

Whey production for human consumption continues to lag year-ago levels. Output in February was down 3.7percent from a year ago (adjusting for leap-year in 2008). Whey production has been below year-earlier levelsfor over a year. Whey prices are still below those of recent years, but reduced supplies and improving exportdemand have led to a slightly higher price forecast than earlier in the year. Whey prices are expected toaverage 17.0 cents to 20.0 cents per pound for the year.

As a result of slightly higher than expected product prices, the prices for Class III and Class IV milk havebeen raised slightly to $10.65 to $11.15 per cwt and $9.95 to $10.55 per cwt, respectively, for 2009. The allmilk price is expected to average $11.85 to $12.35 per cwt in 2009.

Special Box: AlfalfaSOURCE: "Livestock, Dairy, and Poultry Outlook", LDP-M-178, April 16, 2009, Economic ResearchService, USDA. For more information, contact Roger Hoskin, (202) 694-5148.


14/19


THE DAIRY OUTLOOK

Special Section: Alfalfa Prices Decline from 2008 Highs

Declining returns for dairy producers raise the question, How did we get here? Plummeting milk and dairyproduct prices are only half the story; the other half is rising feed prices. The milk-feed price ratio serves as anindicator of return on investment for dairy farmers. Milk prices serve as the measure of income farmersreceive for their investment in feed, with feed costs making up roughly 50 percent of the total cost of milkproduction. The USDA estimates the cost of a 16 percent Protein Mixed Ration (which includes corn,soybeans, and alfalfa) that is used to determine the feed component of the milk-feed price ratio. Dairy farmershave feed alternatives beyond those listed in the Mixed Ration. These alternatives, for example, include cornsilage instead of alfalfa and barley in lieu of corn. When the price of one feed product rises, dairy farmers arelikely to substitute for that feed product if comparable alternatives are available. This article examines alfalfaproduction and prices, since that is the forage used to calculate the Mixed Ration. While milk prices increaseddramatically in 2008, so did prices for corn, soybeans, and alfalfa. Average U.S. alfalfa hay pricesreceived byproducers climbed from $135 per ton in August 2007 to reach a record high in of $180 per ton in August

2008, and the calculated 16-percent mixed-ration price increased from $6.77/cwt in August 2007 to$10.19/cwt in August 2008. During most of 2008, high milk prices more than offset the higher input costs.

Harvested alfalfa acreage has fallen over the last 10 years, from nearly 24 million acres in 1998 to almost 21million acres in 2008. In conjunction with declining acreage, dry conditions in many parts of the country ledto reduced forage supplies in 2008. Portions of the Plains and Southeast have experienced severe dryconditions during the last several years, leading to reduced forage availability. The demand for alfalfa andother forage alternatives increased as dairy farmers and ranchers in those areas sought feed substitutes for lostforages. Drought affected major alfalfa-growing regions, exacerbating forage supply shortfalls in 2008 aswell.

Western alfalfa growing areas have experienced dry conditions over the last several years. California, South

Dakota, and Idaho were the top three alfalfa-producing States in 2007 and 2008, with California the clearleader. For the last 10 years, California has consistently produced over 6.65 million tons of alfalfa, whereasthe second-leading State usually produced around 5 million tons. While California remained the topproducing state, alfalfa hay acreage has dropped there over the last ten years, from 1.05 million acres in 1998to 950,000 acres in 2008. Prospective planting reports as of March 31, 2009 show a decrease of 50,000 acresof all hay for 2009 in California. Since almost two-thirds of hay acreage is planted to alfalfa, some of thedecline may manifest itself in lower alfalfa acreage.

Dry conditions have been and likely will continue to be a problem for California alfalfa producers. TheBureau of Reclamation has announced that water rationing will be enforced in 2009, with agriculturalproducers receiving substantially less water than previously contracted from both the Federally managedirrigation system (the Central Valley Project, CVP) and the State irrigation system (the State Water Project,

SWP). If current drought conditions hold, there will be no CVP water available south of the Sacramento-SanJoaquin River Delta, and only 20 percent of SWP water contracted will be delivered to the area. Key alfalfa-producing counties, such as Kern, Tulare, Merced, and Fresno, all lie south of the Delta and will be impactedby reduced water deliveries out of the CVP and SWP, the two primary sources of surface water in the area.

Continued on page 13


15/19


While some producers have access to groundwater sources as an alternative for irrigation, it will likely berationed between alfalfa and other crops. Farmers can also choose to leave their fields fallow and sell water tothe California Drought Water Bank, for a price of $275 per acre foot. Alfalfa production is water-intensiveand alfalfa is likely to be one of the first crops to receive less water during periods of water rationing.

California hay market analysts and county extension agents suggest that uncertainty surrounding wateravailability and drought have caused alfalfa producers to reduce acreage in the past. Farmers who choose toleave existing alfalfa fields also have the option of taking fewer cuttings (one or two) and pulling the alfalfaout or letting it go to seed rather than irrigating and harvesting the usual seven to eight cuttings typicallyyielded in the region. Per a recent study at New Mexico State University, farmers can also water early in theseason and forego irrigation towards the end of the growing season and still harvest some alfalfa.

While water shortages do affect planting decisions for California alfalfa growers, it seems a bigger issue isfalling alfalfa demand by dairy farmers. At current milk prices, dairy producers are culling herds anddemanding less alfalfa. Use of alternative feed products has increased in recent years, as a reaction to highfeed prices and increased availability of alternatives. In California, for example, over the last 10 years alfalfa

hay use in dairy rations has declined as corn silage and alfalfa silage use has increased. It is difficult to sayexactly how the present alfalfa market situation will impact dairy producers, but given uncertaintysurrounding dairy production, as well as limited water availability, alfalfa producers will most likely behesitant to expand acreage or increase output. Alfalfa is sold in regional markets, with prices varying greatlyacross the country. Reduced supplies of and demand for alfalfa may simply create new market equilibriumconditions between alfalfa growers and dairy farmers in particular areas.

However, at current milk and feed prices, many dairy farmers are facing financial stress, and some producerscould exit the industry unless feed prices fall or milk prices rise by enough to provide positive returns. Overthe last 10 years annual alfalfa prices have increased steadily, but breaking that long-run trend, alfalfa pricesare expected to decline from a record price of about $162 per ton in 2008. However, this price decline maynot be enough for cash-strapped dairy producers. Even as herds are reduced, producers still need to feed their

dairy cows.

In times of high alfalfa prices it is expected that cheaper alternatives will be considered, a decision that canhave significant ramifications for milk output per cow, the primary source of income.

SOURCE: "Livestock, Dairy, and Poultry Outlook", LDP-M-178, April 16, 2009, Economic ResearchService, USDA. For more information, contact Roger Hoskin, (202) 694-5148.


16/19

Compared to April 2009, the Class I base price increased $0.61 per cwt. For selected consumer products, the price changes are: whole milk

(3.25% milk fat), $0.61 per cwt., $0.052 per gallon; reduced fat milk (2%), $0.54 per cwt., $0.047 per gallon; fat-free (skim milk), $0.48 per cwt., $0.041

per gallon. Class II Price Information. The advanced Class IV skim milk pricing factor is $5.79. Thus, the Class II skim milk price

FEDERAL MILK ORDER CLASS I PRICE INFORMATION1/ 2/

May 2009

Class I Class I

Skim Milk Butterfat

Price Price

$ per cwt. $ per cwt. $ per pound

Northeast (Boston) 4/ 001 14.22 10.26 1.2344

Appalachian (Charlotte) 5/ 6/ 005 14.37 10.41 1.2359

Southeast (Atlanta) 6/ 7/ 007 14.77 10.81 1.2399Florida (Tampa) 6/ 8/ 006 16.37 12.41 1.2559

Mideast (Cleveland) 9/ 033 12.97 9.01 1.2219

Upper Midwest (Chicago) 10/ 030 12.77 8.81 1.2199

Central (Kansas City) 11/ 032 12.97 9.01 1.2219

Southwest (Dallas) 12/ 126 13.97 10.01 1.2319

Arizona (Phoenix) 131 13.32 9.36 1.2254

Pacific Northwest (Seattle) 13/ 124 12.87 8.91 1.2209

All-Market Average 13.86 9.90 1.2308

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 markets. 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 surfacein 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.

FEDERAL MILK ORDER ADVANCE PRICES, MAY

Federal Milk Order Marketing Area 3/ Order NumberClass I Price (3.5 %)

Class I Base Price. Under the Federal milk order pricing system, the Class I base price for May 2009 is $10.97 per cwt. This price is

derived from the Class III skim milk pricing factor of $7.01 and the advanced butterfat pricing factor of $1.2019. A Class I differential

for May is $6.49 per cwt., and the Class II nonfat solids price is $0.7211. Product Price Averages. The two-week product price averages for

May are: butter $1.1640, nonfat dry milk $0.8181, cheese $1.3030, and dry whey $0.1852.

for each order's principal pricing point (county) is added to the base price to determine the Class I price. Comparison to Previous Month.

DAIRY MARKET NEWS, APRIL 13 - 17, 2009 -14- VOLUME 76, REPORT 15


17/19


ESTIMATED DAILY AVERAGE U.S. PACKAGED FLUID PRODUCT SALES

138

140

142

144

146

148

150

152

154

156

158

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

DATA: DAIRY PROGRAMS & CDFA, GRAPH BY DM N

MILLION POUNDS

2006 2007 2008 2009

PERCENTAGE OF ESTIMATED TOTAL U.S. MILK PRODUCTION

USED IN FLUID PRODUCTS

26.5

27.0

27.5

28.0

28.5

29.0

29.5

30.0

30.5

31.0

31.5

32.0

32.5

33.0


SOURCE: NASS US MILK PRODUCTION, AMS DAIRY PROGRAMS AND CDFA FLUID SALES DATA

%

2005 2006 2007 2008 2009


18/19


ESTIMATED DAILY AVERAGE U.S. ORGANIC FLUID

PRODUCT SALES

2.25

2.50

2.75

3.00

3.25

3.50

3.75

4.00

4.25

4.50

4.75

5.00


MILLION POUNDS

2006 2007 2008 2009

MONTHLY MAILBOX PRICE AVERAGE FOR FEDERAL ORDERS AND CALIFORNIA

$10.00

$10.50$11.00

$11.50$12.00

$12.50

$13.00$13.50$14.00

$14.50$15.00

$15.50$16.00

$16.50

$17.00$17.50

$18.00

$18.50$19.00

$19.50$20.00

$20.50

$21.00$21.50

$22.00

Jan-04 M M

J S N

Jan-05 M M

J S N

Jan-06 M M

J S N

Jan-07 M M

J S N

Jan-08 M M

J S N

Jan-09

PER CWT.

FO CA


19/19

DAIRY MARKET NEWSGENERAL NUMBER

Elizabeth Frederick

(608) 250-3200

[email protected]

NORTHEAST/SOUTHEAST

Eric Graf

(608) 250-3203

[email protected]

CENTRAL

George Koerner(608) 250-3205

[email protected]

Janet Linder

(608) 250-3207

[email protected]

SOUTHWEST

Lester Butch Speth

(608) 250-3202

[email protected]

NORTHWEST/MOUNTAIN

Donald Nelson

National Supervisor

(608) 250-3206

[email protected]

VOLUME: 76

REPORT: 15

DATE: 04/17/09

INTERNATIONAL

Steven Schneeberger

(608) 250-3204

[email protected]

INTERNET ADDRESS

www.ams.usda.gov/DairyMarketNews

RECORDED INFORMATION SYSTEM

(608) 250-3208

FAX

(608) 250-3216

________________________

USDA, Dairy Market News

122 E Olin Ave Ste 290

Madison, WI 53713-1475

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

weeklyreport pg 8

Documents