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Tuesday, December 12, 2017
 Milk Marketing Receipts (gross) Improved in 2011  

By Dave Natzke

USDA’s annual “Milk Production, Disposition and Income” summary, released April 25, showed 2011 U.S. dairy producer cash receipts from milk marketings totaled a record-high $39.5 billion, up 26% from 2010 ($31.4 billion) and 62% more than 2009 ($24.3 billion). Receipts represent gross income, not net income.

Record milk prices in 2011 pushed cash receipts above previous highs set in 2007 ($35.5 billion) and 2008 ($34.8 billion). Producer milk payments in 2011 averaged $20.25/cwt., 23.9% more than 2010’s average of $16.35/cwt. Marketings (whole milk sold to plants and dealers and milk sold directly to consumers) totaled 195.3 billion lbs, 1.8% more than 2010.

Based on previous preliminary USDA Economic Research Service milk cost of production estimates, 2011 total production costs averaged $23.12/cwt., up about 10% from 2010.

Annual Cash Receipts From Milk Marketings
 

Average
Milk Price

Gross cash receipts
from milk marketings
Year  ($/cwt.) ($ billion)
2004 16.13 27.4
2005 15.19 26.7
2006 12.96 23.4
2007 19.21 35.5
2008 18.45 34.8
2009 12.93 24.3
2010 16.35 31.4
2011 20.25 39.5


The annual average number of milk cows on farms was 9.194 million head, up 75,000 head from 2010 but 9,000 less than 2009. Milk production per cow, at 21,345 lbs., was 197 lbs. more than 2010. Multiplied by the all milk price, the “average” U.S. cow generated $4,322 in 2011 milk production, up from $3,458/cow in 2010 and just $2,660 in 2009.

An estimated 985 million lbs. of milk were used on farms where produced, unchanged from 2010. Calves were fed 90% of this milk, with the remainder consumed in producer households.

‘$1 billion club’
Two more states – Ohio and Washington – topped the $1 billion mark for annual milk receipts in 2011, bringing the total to 11. Previous members of the club included California, Idaho, Michigan, Minnesota, New Mexico, New York, Pennsylvania, Texas and Wisconsin.

California and Wisconsin accounted for about $12.9 billion, or about 33% of total U.S. cash receipts from milk marketings in 2011.

Looking ahead
The 2012 picture of cash receipts is looking dimmer. As of April 2011, USDA projected an all milk price in the range of $17.25-$17.75/ /cwt. (mid-range of $17.50/cwt.) With milk marketings expected to reach 200.2 billion lbs., that would yield 2012 gross receipts from milk sales of about $35.0 billion, down $4.5 billion from 2011 and about equal with 2008. Under that scenario, gross income per cow would average $3,798.

Source: Dairy Business

http://dairybusiness.com/seo/headline.php?title=milk-marketing-receipts-gross-improved-in-201&date=2012-04-26&table=headlines
 


Posted on Friday, April 27, 2012 (Archive on Friday, May 04, 2012)
Posted by bsutton@adpi.org  Contributed by bsutton@adpi.org
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