MD_DA902 DA MD DA902 Organic Dairy Fluid Overview MADISON, WI. October 6, 2017 (REPORT 40) ORGANIC DAIRY FLUID OVERVIEW New England Organic Milk Sales and Sourcing. In New England, Federal Milk Market Order 1 reports that during August, 2017, organic whole milk utilization totaled 15.1 million pounds, up from 14.3 million pounds one year earlier. The August, 2017 butterfat content was 3.29%, even with 3.29% in 2016. Organic reduced fat milk utilization for August this year, 20.0 million pounds, was up from 19.2 million pounds one year earlier. Butterfat this August was 1.28%, up from 1.26% last year. During August, some sources of organic milk produced from outside the order withdrew from pooling in the order. Organic milk from organic plants in Ohio and Michigan withdrew organic milk from the pool. 2016 NASS Certified Organic Survey. Results of the 2016 NASS Certified Organic Survey were recently released. Comparing 2016 results with results from 2008 and 2014, the general trend is that organic dairy farms are producing more organic milk, and average sales of farms has increased. Looking at each of the top 15 states, the number of organic dairy farms from 2014 to 2016 has increased except Minnesota, New Mexico and Iowa, each of which declined. Comparing 2008 and 2016, there were declines in organic dairy farm numbers in 7 of the top 15 states: Wisconsin, Texas, Oregon, Vermont, Minnesota, New Mexico, and Iowa. However, in each of those states average organic milk sales per farm increased from 2008 to 1016. New Mexico is excluded because due to the small number of farms, no data for average milk sales per farm was reported for 2016. For the 2016 data, in absolute terms, New York has the largest number of organic dairy farms, 471. Wisconsin had led the survey in farm numbers in 2008 and 2014. California has the highest organic milk sales (volumes and dollars) of any state. Texas has the highest average organic milk sales in dollars per farm, $27,415,333. The following table shows more detailed results from the survey. Organic Milk Pay Prices Increase in Europe. Organic milk pay prices are increasing in Germany, France, Austria and the Netherlands. Average organic milk farm prices in Germany for July 2017, 48.38 Euros/100kg, are 3.46 percent higher than a year earlier, up 0.19 percent from June, according to CLAL. The exchange rate for 1 Euro on October 5 was U.S. $1.1770. The exchange organic milk in Germany during 2017 beginning March, have been continuously higher than the same month of 2016. In Bavaria, an important milk producing region of Germany, July prices are 48.84 Euros/100kg, 2.89 percent higher than a year earlier, but slightly down 0.08 percent from June. Average organic milk farm prices in France for July 2017, 46.62 Euros/100kg, are 4.62 percent higher than a year earlier and up 12.88 percent from June, according to CLAL. Prices of organic milk in France each month during 2017, have been continuously higher than the same month of 2016. Average organic milk farm prices in Austria for July 2017, 46.79 Euros/100kg, are 18.16 percent higher than a year earlier, and up 2.01 percent from June. Prices of organic milk in Austria each month during 2017, have been continuously higher than the same month of 2016. In the Netherlands, a large processor of organic milk announced a 0.50 euro increase in the pay price for organic milk in October over September. The October price, 49.50 euros per kilogram, is for organic milk with a fat content of 4.41 percent, a protein content of 3.47 percent, and a lactose content of 4.51 percent from a producer supplying an average of 600,000 kilograms of organic milk annually. ORGANIC GRAIN AND FEEDSTUFF MARKETS Organic feed grade corn demand is good, trading 88 cents higher. Forward contracting is active. Organic feed grade soybean demand and activity is very light, with light forward contracting activity. Organic soybean meal demand and trading activity is good. Organic soybean oil trading is too limited to trend, but steady undertones are noted. Organic food wheat demand and activity is light, with prices reflecting SRW and HRW low protein wheat. Organic feed wheat demand is light with active trading. Prices reflect HRW, HWW, and SRW wheat. Organic feed oat demand is moderate with light trading. Organic feed barley demand and trading is moderate. Trading is inactive on organic food and feed grade rye, sorghum, triticale, and millet. Organic growers are expecting yields to be slightly lower than last year, but better than earlier estimates. Source: Graphs by Livestock, Poultry and Grain Market News Additional livestock and grain market news information is available at: www.ams.usda.gov/LSMarketNews 1100C /eric.graf@ams.usda.gov USDA/AMS/Dairy Market News, Madison, Wisconsin Dairy Market News website: www.ams.usda.gov/dairymarketnews Dairy Market News database portal: www.marketnews.usda.gov/portal/da