Here is the latest news affecting a dairy producer’s bottom line as we start the fourth week of July.
- May fluid milk sales up 0.3% from last year
- DFA to close dairy ingredient facility in South Dakota
- $90 million announced for conservation grants
May fluid milk sales up 0.3% from last year
Fluid milk sales for 2024 continue to trend higher than last year’s sales. According to data from the USDA Agricultural Marketing Service:
- Total sales: May sales of packaged fluid milk products were estimated at 3.6 billion pounds, up 0.3% from the same month a year earlier. At 18.1 billion pounds, year-to-date sales of all fluid products were up 1.3%.
- Conventional products: Monthly sales totaled 3.33 billion pounds, down 0.4% from the same month a year earlier. Flavored fat-reduced milk sales continue to grow, up 3.5% compared to May 2023. Year-to-date 2024 sales were estimated at 16.86 billion pounds, up 0.9% from this time last year. Both whole milk and flavored whole milk sales are up over 3% year to date.
- Organic products: May sales totaled 263 million pounds, up 10.2% from a year earlier. Whole milk and flavored whole milk are up 20% and 31%, respectively, from the same month last year. Year-to-date organic fluid milk sales were estimated at 1.26 billion pounds, up 6.3% from this time last year. Organic represented about 7.3% total fluid product sales in May and 6.9% in total sales year to date.
The U.S. figures are based on consumption of fluid milk products in Federal Milk Marketing Order (FMMO) areas, which account for approximately 92% of total U.S. fluid milk sales, and adding the other 8% from outside FMMO-regulated areas. Sales outlets include food stores, convenience stores, warehouse stores/wholesale clubs, nonfood stores, schools, the food service industry and home delivery.
DFA to close dairy ingredient facility in South Dakota
Dairy Farmers of America (DFA) announced on July 18 that it will close its dairy ingredient facility in Pollock, South Dakota.
The decision came after a careful analysis of new demand and current supply dynamics and as part of a coordinated, cooperative-wide milk marketing and balancing optimization project.
Unfortunately, 33 full-time positions and four part-time jobs will be eliminated. DFA said in a press statement that it will work with employees to help them through this transition.
Raw milk currently received at the Pollock plant will transition to delivery to nearby production facilities.
“This was a difficult decision, but we have a responsibility to operate financially sound businesses that bring additional returns to our family farm-owners’ investment in the cooperative,” DFA stated.
$90 million announced for conservation grants
The USDA is investing $90 million in 53 Conservation Innovation Grants (CIG) projects, which support the development of new tools, approaches, practices and technologies to further natural resource conservation on private lands.
This year, increased funds were available because of President Joe Biden’s Inflation Reduction Act, which is funding CIG projects that address climate change, with a particular focus on innovative solutions to reduce livestock emissions of enteric methane, a potent greenhouse gas.
In total, the Inflation Reduction Act provides $19.5 billion over five years to support USDA’s oversubscribed conservation programs, including CIG grants. This conservation funding flows directly into local communities and helps ensure farmers receive the financial assistance to buy equipment, hire labor and take the necessary steps to implement these practices.
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