MD_DA902

     Organic Dairy Fluid Overview

     Report 42 - Released on October 18, 2019

     ORGANIC DAIRY FLUID OVERVIEW

     Organic Milk Product Sales. The Agricultural Marketing Service (AMS) reports estimated US
     sales of total organic milk products decreased from a year earlier. August 2019 sales were
     208 million pounds, down 6.6 percent from August 2018 and down 3.8 percent compared to
     January-August 2018. Organic whole milk sales for August 2019, 90 million pounds, were up
     0.1 percent compared to a year earlier and up 2.1 percent compared with the year-to-date in
     2018. Reduced fat milk (2%) sales were steady with the previous year, but declined 3.8
     percent year-to-date.

     ESTIMATED TOTAL U.S. SALES OF ORGANIC FLUID MILK PRODUCTS,
     August 2019, with comparisons1/

     Product Name                          Sales2/                Change
                                      August   Y-T-D       Prev Yr.4/   Y-T-D4/
                                     (million pounds)          (percent)

     Organic Production Practice

     Whole Milk                        90        711          0.1       2.1
     Reduced Fat Milk (2%)             70        543          ---      -0.9
     Low Fat Milk (1%)                 25        219        -25.1     -13.8
     Fat-Free Milk (Skim)              16        124        -12.8     -19.6
     Flavored Fat-Reduced Milk          7         59        -36.4     -13.1
     Other Fluid Milk Products          0          0        -14.7      28.2
     Total Fat-Reduced Milk 3/        118        946        -11.1      -7.7
     Tot. Organic Milk Products       208      1,657         -6.6      -3.8

     1 These figures are representative of the consumption of fluid milk products in Federal milk
     order marketing areas, which account for approximately 92 percent of total fluid milk sales
     in the United States. An estimate of total U.S. fluid milk sales is derived by interpolating
     the remaining 8 percent of sales from the Federal milk order data. Reported volumes do not
     include added non-dairy ingredients such as sweeteners or flavorings. 2 Data may not add
     due to rounding. 3 Both conventional and organic fat-reduced milk categories are the total
     of reduced fat, low-fat, skim and flavored fat-reduced milk. 4 Year to Date Sales, Change
     from Previous Year, and Change in Year to Date figures include the addition of the
     California Federal Milk Order, which also includes several changes in product
     classification. The California Federal Milk Marketing Order became effective on November 1,
     2018.

     Will China Surpass US Organic Dairy. A recent survey by a top research group suggests that
     within 5 years China's organic food market will surpass the US multi-billion dollar organic
     food market. Central to this thought is that organic dairy is projected to be one of the
     most significant segments that will dominate the organic market landscape.

     August 2019 Average Organic Milk Farm Prices in Europe

               euros/100lt  ($USD)     % Change      % Change
                                        July 2019    August 2018
     Germany     46.57       51.89       - 0.15       - 1.29
     Bavaria     46.65       51.98       - 0.19       - 1.87
     France      47.64       53.08       + 1.00       + 2.24


     ORGANIC GRAIN FEEDSTUFF OVERVIEW

     Organic Grain and Feed Market. Trade activity and demand is reported as moderate for organic
     feed corn, soybeans and wheat. Forward contracting for organic feed corn picked up for Q1

     and Q3 2020. Organic feed corn traded 27 cents higher, while organic feed soybeans traded
     82 cents lower. Cash bids for feed hard red winter wheat ranged from 6.75 to 7.00 delivered
     elevator, due to storage constraints. Feed soft red winter wheat dropped from 9.00 to 8.00
     delivered elevator. Trade activity is light on moderate demand for organic hay. Imported
     soybean meal volumes and price levels have reduced domestic crushing, leading to soybean oil
     shortages across the country.

     For more additional information, access the link:
     https://www.ams.usda.gov/mnreports/lsbnof.pdf

     Information for the period October 7 - 18, 2019, issued biweekly

     Published by:
     Dairy Market News - Madison, WI
     DANIEL JOHNSON, 608-422-8605
     Email: daniel.johnson4@usda.gov

     Additional Dairy Market News Information:
     Dairy Market News (DMN) by Phone: (608)422-8602
     DMN Website: https://www.ams.usda.gov/market-news/dairy
     DMN MARS (My Market News): https://mymarketnews.ams.usda.gov