Market Update

Dairy Market Update

New dairy data from the USDA shows the extent to which milk prices have fallen in the US and elsewhere in recent months, as increased production and higher stocks of processed products are putting pressure on prices.  The farm gate price for class III milk (for cheese) in March was 33.3% down on March 2014, whilst that for class IV (that for butter and milk powder) was 41.7% down, the retail price of fluid milk was however only 4.5% down.

Total US production for March was estimated as 1.24% up on March 2014, whilst stocks of butter were 3.28% up on March 2014, commercial ‘American’ cheese stocks were 2.15% up, and other than American cheese stocks were 10.24% up. Manufacturers non fat dry milk stocks were 32.64% up.