April 14, 2023: FMMO Reform

There have not been any major changes to the Federal Milk Marketing Order (FMMO) system since 2000, except for the legislative change in the formula for pricing the Class I Mover, which was  implemented in 2019. The COVID-19 pandemic exposed flaws in the current system, with this formula change in place, that resulted in lower…

April 7, 2023: 2022 PA Corn and Soybean Yield

Like most years, the 2022 growing season in Pennsylvania was not consistent across the state. Some portions of the state experienced drought conditions while other parts of the state were too wet at times. According to the USDA Crop Production Annual Summary released back in January, the result was reduced corn grain, corn silage, and…

March 31, 2023: March

The trend of year-over-year (YOY) increasing national milk production continued during February, while Pennsylvania’s YOY trend of decreasing milk production continued. With an improving  world milk supply, U.S. prices are similar to European and New Zealand prices with perhaps the biggest determining factor being proximity to international buyers. That being said, January  exports, the most…

March 24, 2023: What is Risk Management?

As the risk education manager at the Center for Dairy Excellence, it is a main responsibility of mine to not only understand the available risk management opportunities, but also to be able to  explain them to dairy farmers to help them determine what strategies will work best for their operations. I thought this week would…

March 17, 2023: 2022 Estimated Fluid Milk Sales

Each month, the USDA Agricultural Marketing Service publishes its Estimated Fluid Milk Products Sales Report. The most recent report was released on Feb. 22, which covers the month of Dec.  2022. Each month has a year-to-date column in addition to the current month column. Although the 2022 numbers will not be finalized and released until…

March 10, 2023: 2022 Milk Production

Each February, the USDA’s Milk Production report contains annualized cow numbers, milk production, and licensed dairy farm numbers. The following is a summary of some of the data contained within the report. U.S. total milk production remained relatively flat compared to 2021, increasing only 0.1% to 226.5 billion pounds during 2022. Cow numbers averaged 9.402…

March 3, 2023: February

Global milk supply continues to improve, thanks in part to increasing production in the U.S. and the European Union (EU). This, and a strong dollar will provide headwinds for U.S. dairy exports  this year. However, domestic demand is expected to remain strong. These inter-relationships are resulting in mixed outcomes on dairy product prices and Class…

February 24, 2023: Record Exports Continued

Last week, I reported from USDA and U.S. Dairy Export Council data that 2022 dairy exports set a  record high for the 3rd year in a row at over 2.4 million metric tons (MT) of milk solids equivalent dairy  products, which is about 2.6 million MT of actual volume exported. Export value also set a…

February 17, 2023: 2022 Dairy Export Records

Despite higher domestic and international milk prices throughout most of 2022, U.S. dairy products remained below other international dairy exporters. This made U.S. dairy products more  competitive and resulted in record export growth for several key dairy products. 2022 was the third consecutive year to surpass the previous year’s record. Since dairy product prices remained …

February 10, 2023: PMVAP Round 2

In a press release dated January 23, 2023, the USDA announced that it was issuing a second round of  payments through the Pandemic Market Volatility Assistance Program (PMVAP) using the $100 million  that went unspent during the first round of payments. Furthermore, it was announced that up to $100  million would be allocated to the…