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Livestock, Dairy and Poultry
Outlook provides key dairy data, market outlook, and
forecasts; issued each month.
Low Costs Drive Production to Large Dairy Farms reports that average production costs per hundredweight of milk produced fall sharply with herd size. Large dairy farms earn substantial profits, while most smaller operations experience economic losses. Given the cost advantages, the shift of dairy production to large farms contributes to rising industry productivity and lower real dairy prices. For the full report, see Profits, Costs, and the Changing Structure of Dairy Farming.
Retail and Consumer Aspects of the Organic Milk Market analyzes retail scanner data from 2004 and finds that most purchasers of organic milk are White, high income, and well educated. Consumer interest in organic milk has burgeoned, resulting in rapid growth in retail sales of organic milk. Most organic milk is sold in supermarkets, and organic price premiums are large and vary by region.
Impacts of Trade Liberalization
on the U.S. Dairy Market reviews the economic effects
of trade liberalization in world dairy markets by examining
effects on farm milk prices and production, producer and
consumer surpluses, and government revenues and program
expenditures. The empirical analysis suggests multilateral
trade liberalization leads to generally modest price and
production impacts on U.S. milk producers.
Dairy
Backgrounder reports that shifts over time in
consumer demands, the location and structure of milk production,
industry concentration, international markets, and trade
agreements have dramatically altered the U.S. dairy industry
and changed the context for dairy policies and the sector
as a whole. In the future, the U.S. dairy industry is
likely to become more fully integrated with international
markets.
Trade Liberalization in
International Dairy Markets: Estimated Impacts examines
issues related to modeling complex policy regimes that
affect international dairy markets. Average bound tariffs
for dairy remain among the highest of all agricultural
commodities and dairy trade is characterized by a large
number of megatariffs and tariff-rate quotas (TRQs). Modeling
results indicate that liberalization would reduce world
dairy product supplies and increase the value of dairy
trade.
U.
S. Dairy at a New Crossroads in a Global Setting highlights
changing economic and policy forces facing the U.S. dairy
industry today. As dairy markets evolve, U.S. milk producers
and processors are in a position to pursue both domestic
and export market opportunities. For the full report,
see U.S. Dairy at a Global
Crossroads.
Dairy Policies
in Japan provides a detailed description and analysis
of Japans policies that support its milk producers and
regulate dairy markets. If Japans policies were liberalized,
prices and production in Japan would fall, but sizable
milk production would remain.
Disease-Related
Trade Restrictions Shaped Animal Product Markets in 2004
and Stamp Imprints on 2005 Forecasts reports that
disease outbreaks and related trade restrictions continue
to influence markets. U.S. cattle and beef markets were
most affected in 2004. Pork, dairy, and lamb markets did
not face any direct disease issues but both U.S. and international
outbreaks of Avian Influenza buffeted poultry markets.
Contracts, Markets, and
Prices: Organizing the Production and Use of Agricultural
Commodities reports that contracts are now the primary
method of handling sales of many livestock commodities,
including milk, hogs, and broilers, and of major crops
such as sugar beets, fruit, and processing tomatoes. Production
and marketing contracts governed 36 percent of the value
of U.S. agricultural production in 2001, up from 12 percent
in 1969.
Economic Effects of U.S. Dairy Policy and Alternative
Approaches to Milk Pricing shows that the effects
of dairy programs on markets are modest and that current
dairy programs are limited in their ability to change
the longterm economic viability of dairy farms. Other
forces—technology, changing consumer demand, and
changes in the marketing and processing sectors—while
difficult to measure, are likely to have more impact.
(This file is 1.5 MB in size and may take time to download.)
Current
World Production, Market, and Trade Reports provide
information and data on world markets and trade for dairy,
livestock, and poultry.
Effects of U.S. Dairy
Policies on Markets for Milk and Dairy Products examines
the economic effects of the principal current dairy sector
programs. The analytical results address the economic
impacts of Federal milk marketing orders, direct payments
to producers, price supports, and export programs.
Monthly
Milk Cost of Production Estimates are available starting
from January 2003. Congress included language in USDA's
fiscal year (FY) 2003 appropriation that strongly urged
USDA to make available monthly milk costs of production
(COP) in various areas of the United States. To comply
with this request, ERS has begun reporting monthly milk
COP by State, where sufficient data support a State estimate.
Characteristics and
Production Costs of U.S. Dairy Operations presents
findings from the 2000 Agricultural Resource Management
Survey (ARMS), the most recent national survey of milk
producers. Milk producers in the West had a significant
cost advantage over producers in other regions in 2000
because their operations were much larger. Operations
with 500 or more milk cows had significantly lower total
operating and ownership costs, indicative of the economies
of size experienced by larger operations.
Manure Management for
Water Quality evaluates the costs of spreading manure
on cropland at the farm, regional, and national levels.
EPA regulations enacted in February 2003 require concentrated
animal feeding operations (generally the largest producers
of hogs, chicken, dairy, and beef cattle) to meet nutrient
application standards when spreading their manure on cropland
in order to preserve water resources from nitrogen and
phosphorus runoff. USDA is encouraging all animal feeding
operations to do the same. If all operations meet the
new standards, increases in production costs could be
felt throughout the food and agricultural system.
The Changing Landscape
of U.S. Milk Production illustrates how milk production
has changed in the United States since 1975. Questions
of how much milk is produced, where it is produced, and
by whom it is produced are important both nationally and
regionally. Dairy farms continue to grow, become more
specialized, and, in some regions, more concentrated.
But small traditional dairy farms also remain part of
the industry. Link here
to download Excel spreadsheets with data supporting various
charts and figures in the report.
Milk Pricing in the United
States provides a primer on the U.S. milk market,
cutting through the complexities to describe key pricing
mechanisms and to provide a basis for more detailed study.
Farm milk prices in the United States are determined by
public and private pricing institutions whose interactions
have become complex.
The Changing Structure
of Dairy Markets: Past, Present, Future indicates
that the markets for fluid milk and manufactured dairy
products have changed dramatically since the 1970's. Companies
selling most or all types of dairy products have given
way to companies or subsidiaries selling one or two. Large
proprietary and cooperative firms, both U.S. and foreign-owned,
are major participants in U.S. dairy markets. This report
discusses how dairy markets reached their current state
and implications for the future.
Large
Companies Active in Changing Dairy Industry looks
at concentration in the U.S. industry and its effects.
U.S.
Dairy Product Markets Restructuring describes fluid
milk, cheese, butter, frozen products, and dry milk markets,
their evolution, and their likely future.
Federal
Milk Marketing Orders: Consolidation and Reform describes
changes in the Federal milk marketing order system in
the United States called for by the 1996 Farm Act.
Price
Volatility in the Dairy Industry and It's Causes indicates
that dairy product price volatility has been a more prominent
issue in the dairy industry since the 1996 Farm Act went
into effect. But, volatility is not really a "new"
issue. This paper examines some of the causes of volatility
in the dairy industry.
International
Dairy Markets and the WTO (page 7 of Livestock,
Dairy, and Poultry Situation and Outlook)
discusses changes in international dairy markets, effects
of the
Uruguay Round on dairy markets, and pending dairy issues
as new negotiations begin. The article stresses issues
for improving trade for all participants, not just for
the United States.
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