MD_DA902 Organic Dairy Fluid Overview Report 12 - Released on March 20, 2020 ORGANIC DAIRY FLUID OVERVIEW New England Organic Milk Sales and Sourcing. Federal Milk Market Order 1, in New England, reports utilization of types of organic milk by pool plants. During February 2020, organic whole milk utilization totaled 13.6 million pounds, up from 12.6 million pounds the previous year. The February 2020 butterfat content was 3.29 percent, slightly more than the 3.28 percent in 2019. The utilization of organic reduced fat milk for February this year, nearly 13.1 million pounds, dropped from 15.1 million pounds a year earlier. Meanwhile, butterfat content was 1.36 percent, up from 1.33 percent last year. Surge in Organic Milk Sales. Milk loads to Class I bottling depict exponential growth, up 200 percent for some locations. As the coronavirus gives rise to a global pandemic and panic shopping, demand for organic milk as well as conventional milk has skyrocketed, with consumers often finding dairy cases empty in retail store outlets. Organic Fluid and Food Markets to Expand. A marketing research group has reported that organic drink and food markets are expected to achieve $38.77 billion in annual sales, with a growth rate of 10.2 percent by 2026. While organic milk looks to dominate the market, the fastest growing segment is projected to be organic cheese. North America is anticipated to hold the largest global market share. Average Organic Milk Pay Prices in Europe. The January organic milk pay price in Europe adjusted higher in Germany and Bavaria but declined in France and Austria. Detailed information is presented in the table below. euros/100lt *($USD) % Change % Change Jan 2020 Dec 2019 Germany 47.59 51.05 + 0.68 + 0.06 Bavaria 47.98 51.47 + 0.82 + 0.04 France 48.41 51.93 - 0.57 + 3.81 Austria 42.47 45.56 - 1.21 - 4.00 * As of 3/20/2020 8:00 AM Dutch Organic Milk Pay Price. In the Netherlands, a large processor of organic milk announced the March 2020 pay price for organic milk is 48.50 euros/100kg (* $52.03 USD). The organic milk producer supplies an average of 550,000 kilograms of milk, containing a fat content of 4.42 percent, protein content of 3.57 percent and a lactose content of 4.53 percent, on an annual basis. ORGANIC GRAIN FEEDSTUFF OVERVIEW National Organic Grain and Feed Markets. Feed grade corn trade activity and demand is light. Markets are too lightly traded to trend, with cash bids mostly 7.00-7.65 delivered elevator. Feed grade Soybean trades are light on modest to good demand. Forward contracting is at steady levels. Transactions were inactive on all other organic grains. For more additional information, access the link: https://www.ams.usda.gov/mnreports/lsbnof.pdf Increase in Organic Field Crops Acreages. A new report shows that certified organic field crop acreages grew by 13 percent in the U.S. through 2019. As well, the market flourished behind a 14 percent vault in the number of certified organic field crop operations. While the number of acres of organic corn harvested was down the previous year, industry representatives envision organic field crop production moving quickly into the mainstream of agriculture. Information for the period March 9 - 20, 2020, 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