2021 Dairy Data Highlights

Dairy Data Highlights November 2021

The National Milk Producers Federation (NMPF) develops and carries out policies that advance the well-being of dairy producers and the cooperatives they own. For the past 100 years, NMPF has been one of the most recognizable and influential membership organizations in America.

NMPF’s cooperative members produce the majority of the U.S. milk supply, making NMPF the voice of more than 20,000 dairy farmers. Last year, NMPF member cooperatives marketed about 154 billion pounds of milk, representing 69% of the total milk marketed in the United States. In addition, many of NMPF’s member cooperatives are leading processors of fluid milk, cheese, butter, milk powder, and specialty dairy products.

NMPF is the principal voice on national issues for cooperatives and their dairy farmer members.

TABLE OF CONTENTS U.S. MILK PRODUCTION & OTHER INDUSTRY STATISTICS Table 1: U.S. Production of Milk, Milkfat, & Solids-Not-Fat .......................................... 1 Table 2: U.S. Milk Cow Numbers, Dairy Farms, & Herd Size ........................................ 2 Table 3: Dairy Farms & Milk Production by Herd Size................................................... 3 Table 4: U.S. Production Per Cow of Milk, Milkfat, & Solids-Not-Fat ........................... 4 STRUCTURE OF THE DAIRY INDUSTRY BY STATE Table 5: Annual Milk & Milkfat Production Per Cow by State ...................................... 5 Table 6: Cow Numbers, Licensed Dairy Operations & Herd Size by State .................... 6 Table 7: Milk Production by State.................................................................................... 7 Table 8: Importance of the Dairy Sector by State ............................................................ 9

PRODUCER, WHOLESALE, & RETAIL PRICES OF MILK & DAIRY PRODUCTS Table 9: Farm Level Milk Prices by State ...................................................................... 10 Table 10: Selected Farm Level Annual Average Milk Prices ........................................ 11 Table 11: Monthly Seasonality of U.S. All-Milk Price & Milk Production ................... 12 Table 12: Annual Wholesale Prices of Dairy Products .................................................. 13 Table 13: Monthly Prices of Dairy Products on the Chicago Mercantile Exchange ...... 13 Table 14: Annual Retail Prices for Selected Dairy Products ......................................... 14 COSTS OF PRODUCTION INDICATORS Table 15: Milk Production Costs & Returns by Herd Size............................................. 15 Table 16: U.S. Milk Production Costs & Returns .......................................................... 17 Table 17: Monthly Milk-Feed Price Ratio ..................................................................... 18 Table 18: Monthly DMC/MPP Calculated Feed Cost .................................................... 18 Table 19: Monthly DMC/MPP Margin .......................................................................... 19 Table 20: Average Prices Received for Livestock.......................................................... 20 Table 21: Average Prices Received for Crops................................................................ 21 Table 22: Crop Production ............................................................................................. 21 SCOPE OF FEDERAL MILK MARKETING ORDERS Table 23: Federal Market Order Statistics by Market .................................................... 22 Table 24: Measures of Growth in Federal Milk Marketing Orders ................................ 23 Table 25: Sales & Butterfat Content of Fluid Milk Products in Federal Milk Marketing Orders ................................................................ 24 DAIRY PRODUCT CONSUMPTION & PRODUCTION Table 26: Annual Commercial Disappearance of Dairy Products, Milk Equivalent, Total Milk Solids Basis .................................................... 25 Table 27: Per Capita Commercial Disappearance of Dairy Products, Milk Equivalent, Total Milk Solids Basis .................................................... 25 Table 28: Share of Commercial Disappearance by Product ........................................... 26 Table 29: Fluid Milk Sales for Beverage Products......................................................... 27 Table 30: Per Capita Fluid Milk Sales: Selected Products ............................................. 27 Table 31: Fluid Milk Sales for Cream/Other Products ................................................... 28

Table 32: Cheese Production, Selected Varieties ........................................................... 29 Table 33: Per Capita Cheese Consumption, Selected Varieties...................................... 29 Table 34: Production of Butter, NFDM, & Other Products............................................ 30 Table 35: Per Capita Consumption of Butter, Cottage Cheese, NFDM, & Other Products ............................................................................ 30 Table 36: Production of Frozen Dairy Products ............................................................. 31 Table 37: Per Capita Consumption of Frozen Dairy Products........................................ 31 Table 38: Cheese, Butter, & NFDM Production, by State.............................................. 32 Table 39: Plants Processing Dairy Products & Volume Per Plant.................................. 33 GOVERNMENT COST OF FARM COMMODITY PROGRAMS Table 40: CCC Net Outlays by Commodity................................................................... 34 U.S. DAIRY TRADE Table 41: U.S. Fresh Milk & Cream Exports ................................................................. 35 Table 42: U.S. Butter and Cheese Exports ..................................................................... 36 Table 43: U.S. Milk Powder Exports ............................................................................. 37 Table 44: U.S. Ice Cream & Yogurt Exports.................................................................. 38 Table 45: U.S. Whey & Lactose Exports ....................................................................... 39 Table 46: Commercial Exports & Domestic Disappearance, Milk Equivalent, Total Milk Solids Basis .................................................... 40 Table 47: Dairy Imports, Quota & Non-Quota............................................................... 41 U.S. ECONOMIC INDICATORS & OTHER STATISTICS Table 48: Price Indices: Annual Average, Not Seasonally Adjusted.............................. 42 Table 49: Minutes of Work Required to Purchase Selected Dairy Products .................. 42 Table 50: Commodity Receipts from Marketings .......................................................... 43 Table 51: Nation’s Top Dairy Cooperatives................................................................... 43 Table 52: Number and Net Volume of Products, Supplies, & Services

by Cooperatives ............................................................................................ 44 Table 53: International Milk Production Statistics......................................................... 45 GLOSSARY .................................................................................................................... 46 COMMON CONVERSION FACTORS .......................................................................... 47

Table 1: U.S. Production of Milk, Milkfat, & Solids-Not-Fat Year

Milk Production

Milkfat

Fat Test

million lbs % Change million lbs 1930 100,158 1.2% 3,929 1940 109,412 2.5% 4,343 1950 116,602 0.4% 4,618 1960 123,109 0.9% 4,628 1970 117,007 0.8% 4,284 1980 128,406 4.1% 4,692 1985 143,012 5.7% 5,244 1990 147,721 2.7% 5,390 1995 155,292 1.1% 5,681 2000 167,393 3.0% 6,164 2001 165,332 -1.2% 6,073 2002 170,063 2.9% 6,264 2003 170,348 0.2% 6,247 2004 170,832 0.3% 6,266 2005 176,931 3.6% 6,480 2006 181,782 2.7% 6,700 2007 185,654 2.1% 6,832 2008 189,978 2.3% 6,998 2009 189,202 -0.4% 6,944 2010 192,877 1.9% 7,054 2011 196,255 1.8% 7,284 2012 200,642 2.2% 7,463 2013 201,260 0.3% 7,558 2014 206,048 2.4% 7,698 2015 208,508 1.2% 7,810 2016 212,451 1.9% 8,054 2017 215,527 1.4% 8,272 2018 217,568 0.9% 8,466 2019 218,441 0.4% 8,560 2020 223,220 2.2% 8,814 Sources: USDA/NASS; USDA/ERS; U.S. Census Bureau

(%) 3.92% 3.97% 3.96% 3.76% 3.66% 3.65% 3.67% 3.65% 3.66% 3.68% 3.67% 3.68% 3.67% 3.67% 3.66% 3.69% 3.68% 3.68% 3.67% 3.66% 3.71% 3.72% 3.76% 3.74% 3.75% 3.79% 3.84% 3.89% 3.92% 3.95%

Solids-Not-Fat million lbs 8,994 9,705 10,203 10,600 10,063 11,030 12,299 12,704 13,505 14,596 14,427 14,853 14,868 14,942 15,481 15,944 16,292 16,676 16,615 16,979 17,317 17,750 17,853 18,273 18,504 18,874 19,190 19,404 19,508 19,967

Per Capita Production

(%) 8.98% 8.87% 8.75% 8.61% 8.60% 8.59% 8.60% 8.60% 8.70% 8.72% 8.73% 8.73% 8.73% 8.75% 8.75% 8.77% 8.78% 8.78% 8.78% 8.80% 8.82% 8.85% 8.87% 8.87% 8.87% 8.88% 8.90% 8.92% 8.93% 8.94%

(pounds) 814 829 768 684 574 565 600 591 583 593 579 590 586 582 597 608 615 623 615 623 629 639 636 647 650 657 663 666 665 676

Figure 1: Growth In U.S. Milk Production 240,000

20.0%

16.0% 14.0%

200,000

12.0% 10.0%

180,000

8.0% 160,000

6.0% 4.0%

140,000

2.0%

0.0%

120,000

-2.0% 100,000

-4.0%

2000

2005

2010

1

2015

2020

Annual % Change in Production

Milk Production (million lbs)

18.0% 220,000

Table 2: U.S. Milk Cow Numbers, Dairy Farms, & Herd Size January 1 Inventory Milk Heifers Kept Year

Cows

for Replacement

(1,000 head)

1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

23,853 23,462 19,527 16,981 12,091 11,220 10,758 10,777 10,015 9,482 9,183 9,004 9,087 9,156 9,236 9,221 9,209 9,312 9,312 9,369 9,432 9,353 9,343 9,440

(#)

Farm Numbers Dairy Total Lic'd All

(per 100 Cows)

5,394 5,786 5,079 4,149 3,881 4,087 4,159 4,770 4,171 4,121 4,000 4,117 4,551 4,577 4,618 4,546 4,539 4,710 4,814 4,754 4,768 4,702 4,684 4,605

23 25 26 24 32 36 39 44 42 43 44 46 50 50 50 49 49 51 52 51 51 50 50 49

(Thousand)

5,648 4,654 3,963 3,356 2,949 2,521 2,440 2,293 2,146 2,196 2,167 2,099 2,150 2,131 2,110 2,100 2,082 2,064 2,055 2,042 2,029 2,023 2,019

112.0 83.0 64.5 53.1 51.3 49.3 47.0 44.8 43.5 41.8 40.2 37.5 34.2 31.7

Avg. Herd Size* (Number)

3,648 2,936 1,792 1,108 648 444 334 269 193 140 105 78.3 62.5 60.0 58.0 n/a n/a n/a n/a n/a n/a n/a n/a

7 8 11 15 19 25 32 40 52 85 111 140 171 179 187 196 206 214 223 233 252 273 295

Sources: USDA / NASS: Cattle; Milk Production; Farms and Land in Farms. *Licensed dairy herds beginning in 1995 Farm: Any establishment with at least $1,000 in annual sales of agricultural products.

Dairy: Any farm having one or more milk cows on hand during the year. Discontinued

by NASS after 2012.

Figure 2: U.S. Dairy Farms & Average Herd Size 125

300 275 250 225 200

75

175 150 125

50

100 75

25

50

1996

2000

2004

2008

Dairy Farms

2012

2016

Average Herd Size

2

2020

Herd Size

Dairy Farms (1,000)

100

Table 3: Dairy Farms and Milk Production by Herd Size Number of Cows in Herd Year

1 - 29

30 - 49

1980 1985 1990 1995 2000 2005 2010 2012 20174

203,181 135,870 81,430 48,150 30,820 22,490 20,000 18,800 9,330

63,160 57,846 44,592 31,030 22,210 14,835 10,800 9,700 4,700

1980 1985 1990 1995 2000 2005 2010 2012 20174

13.5 10.1 6.9 3.1 1.8 1.3 1.1 1.0 0.8

22.9 20.5 17.3 11.3 7.7 5.1 3.5 3.2 2.8

50 - 99

100 - 199

200 - 499

Number of Farms 1 49,793 18,046 55,155 20,179 47,113 20,745 39,280 14,290 31,190 12,835 23,185 10,055 15,800 8,600 14,500 7,900 12,130 6,750

500 - 999

1000 - 1999

2000+

by Size Group 2/

2/

2/

2/

2/

2/

2/

2/

2/

2/

2/

2/

6,920 5,340 4,662 3,950 3,800 3,830

3/

3/

3/

1,700 1,700 1,670 1,570 1,510

690 850 920 950 960

270 523 760 780 990

2/

2/

2/

2/

2/

2/

% of U.S. Milk Production by Size Group 30.4 33.2 2/ 2/ 33.1 36.3 2/ 2/ 31.5 44.3 2/ 2/ 26.1 19.8 39.7 3/ 19.4 17.2 18.0 13.8 15.2 13.5 15.3 14.3 10.6 11.3 12.6 12.7 9.5 10.7 12.6 12.4 7.3 8.9 12.6 12.2

3/

3/

11.6 13.4 15.5 15.9 14.5

10.5 21.9 32.7 34.7 41.0

Source: USDA / NASS; Milk Production.

1/ Farms are defined as operations with at least one milk cow through 2012, and as licensed dairy herds in 2017.

2/ Included in 100-199; greater detail for herd sizes above 100 cows not available prior to 1993.

3/ Included in 200-499; greater detail for herd sizes above 200 cows not available prior to 1998.

4/ Discontinued by NASS between quinquennial census years after 2012. 2017 from Agricultural Census and NMPF.

Figure 3A: Percent of U.S. Dairy Farms1 by Herd Size 2017

1980 1000 - 1999 2.4%

100+ 4% 50 - 99 15%

1 - 29 61%

2000+ 2.5%

1 - 29 23%

500 - 999 4% 200-499 5%

30 - 49 12% 100 - 199 17%

30 - 49 19%

50 - 99 30%

Figure 3B: Percent of U.S. Milk Production by Herd Size 2017

1980 1 - 29 14%

1 - 29 0.8%

30 - 49 23%

100+ 33%

30 - 49 2.8%

50 - 99 7.3%

100 - 199 8.9%

200 - 499 12.6%

2000+ 41.0% 500 - 999 12.2% 1000 - 1999 14.5%

50 - 99 30%

3

Table 4: U.S. Production Per Cow of Milk, Milkfat, & Solids-Not-Fat Milk Production

Milkfat Production

Per Cow

Per Cow

Year

Pounds % Change 1925 4,218 1.2% 1930 4,508 -1.6% 1940 4,622 0.7% 1950 5,314 0.8% 1960 7,029 3.1% 1970 9,751 3.4% 1980 11,891 3.5% 1985 13,024 3.9% 1990 14,782 3.2% 1995 16,405 1.4% 2000 18,197 2.4% 2001 18,162 -0.2% 2002 18,608 2.5% 2003 18,759 0.8% 2004 18,960 1.1% 2005 19,550 3.1% 2006 19,895 1.8% 2007 20,204 1.6% 2008 20,397 1.0% 2009 20,561 0.8% 2010 21,142 2.8% 2011 21,334 0.9% 2012 21,722 1.8% 2013 21,819 0.4% 2014 22,249 2.0% 2015 22,372 0.6% 2016 22,761 1.7% 2017 22,914 0.7% 2018 23,150 1.0% 2019 23,395 1.1% 2020 23,777 1.6% Sources: USDA/NASS; USDA/ERS

Pounds 165 177 183 210 263 357 434 478 539 600 670 667 685 688 696 716 734 744 751 755 774 791 808 820 832 839 863 880 901 917 939

Solids-Not-Fat Production Per Cow

% Change 1.2% -1.7% 1.1% 0.5% 2.7% 3.0% 3.4% 3.9% 2.1% 1.4% 2.8% -0.4% 2.7% 0.4% 1.2% 2.9% 2.5% 1.4% 0.9% 0.5% 2.5% 2.2% 2.1% 1.5% 1.5% 0.8% 2.9% 2.0% 2.4% 1.8% 2.4%

Pounds 385 404 411 467 607 838 1,021 1,120 1,271 1,427 1,587 1,585 1,625 1,637 1,658 1,711 1,745 1,773 1,790 1,806 1,861 1,882 1,922 1,935 1,973 1,985 2,022 2,040 2,065 2,089 2,127

% Change 1.2% 1.0% 2.0% 2.2% 3.9% 3.3% 3.4% 3.9% 3.2% 2.5% 2.4% -0.1% 2.5% 0.7% 1.3% 3.1% 2.0% 1.6% 1.0% 0.8% 3.1% 1.1% 2.1% 0.7% 1.9% 0.6% 1.8% 0.9% 1.2% 1.2% 1.8%

Figure 4: Growth In U.S. Milk Production Per Cow 26,000

20.0% 18.0% 16.0%

22,000

14.0% 12.0%

20,000 10.0% 18,000

8.0% 6.0%

16,000 4.0% 14,000

2.0% 0.0%

12,000 -2.0% 10,000

-4.0%

2000

2005

2010

4

2015

2020

Annual % Change in Production

Milk Production (million lbs)

24,000

Table 5: Annual Milk & Milkfat Production Per Cow, by State

State

1990

Annual Milk Per Cow 2000 2010 (Pounds) 14,182 11,833 23,452 12,750 23,025 23,664 19,158 16,981 18,711 17,658 13,316 22,647 18,400 20,094 20,676 20,983 14,769 11,750 18,344 18,537 17,286 23,277 19,366 13,118 14,596 20,643 19,797 23,714 19,600 17,500 24,551 20,807 19,682 18,286 19,446 17,125 20,331

2020

Milkfat Per Cow 2020

Rank of 2020 Milk Per Cow

Alabama 12,214 13,920 15,000 582 44 Alaska1 14,000 14,500 Arizona 17,500 21,820 24,568 921 10 Arkansas 11,841 12,436 12,800 492 48 California 18,456 21,130 23,987 933 14 Colorado 17,182 21,618 26,142 1,001 2 Connecticut 15,606 17,778 23,053 908 19 Delaware 13,667 14,747 18,553 738 40 Florida 14,033 15,688 20,257 750 35 Georgia 12,973 16,284 21,877 812 23 Hawaii1 13,604 14,358 Idaho 16,475 20,816 25,180 1,022 3 Illinois 14,707 17,450 21,530 846 27 Indiana 14,590 16,568 23,661 925 16 Iowa 15,118 18,298 24,651 993 9 Kansas 12,576 16,923 23,694 950 15 Kentucky 10,947 12,841 19,542 752 38 Louisiana 11,605 12,034 13,400 527 47 Maine 14,619 17,128 21,963 872 22 Maryland 13,461 16,083 20,905 822 33 Massachusetts 14,871 17,091 19,900 790 36 Michigan 15,394 19,017 27,170 1,041 1 Minnesota 14,127 17,777 22,705 929 20 Mississippi 12,081 15,028 16,375 681 43 Missouri 13,632 14,662 14,276 574 46 Montana 13,542 17,789 21,167 815 31 Nebraska 13,866 16,513 24,746 970 7 Nevada 16,400 19,000 24,677 982 8 New Hampshire 15,100 17,333 21,273 842 30 New Jersey 13,538 15,250 19,800 764 37 New Mexico 18,815 20,944 24,755 941 6 New York 14,658 17,378 24,500 960 11 North Carolina 15,220 16,746 21,829 843 25 North Dakota 12,624 14,292 21,867 903 24 Ohio 13,767 17,027 22,118 865 21 Oklahoma 12,327 14,440 17,452 691 42 Oregon 16,273 18,222 21,032 856 32 Other States1 5,333 210 49 Pennsylvania 14,726 18,081 19,847 21,320 838 29 Rhode Island 14,250 15,667 17,727 21,800 846 26 South Carolina 12,771 16,087 17,875 18,900 748 39 South Dakota 12,257 15,516 20,478 23,111 989 18 Tennessee 11,825 14,789 16,346 18,067 696 41 Texas 14,350 16,503 21,375 24,926 1,047 5 Utah 15,838 17,573 21,898 23,198 921 17 Vermont 14,528 17,199 18,537 21,328 842 28 Virginia 14,213 15,833 18,095 20,293 783 34 Washington 18,532 22,644 23,514 24,346 991 13 West Virginia 11,250 15,588 15,700 14,833 576 45 Wisconsin 13,973 17,306 20,630 24,408 957 12 Wyoming 12,337 13,571 20,067 25,173 909 4 United States 14,782 18,197 21,142 23,777 939 Source: USDA/NASS: Milk Production, Disposition, and Income . 1/ Alaska and Hawaii combined into "Other States" beginning in 2019.

5

Table 6: Cow Numbers, Licensed Dairy Herds & Herd Size, by State Licensed State

Cows (1000 Head) 2011 2020

Alabama Alaska1 Arizona Arkansas California Colorado Connecticut Delaware Florida Georgia Hawaii1 Idaho Illinois Indiana Iowa Kansas Kentucky Louisiana Maine Maryland Massachusetts Michigan Minnesota Mississippi Missouri Montana Nebraska Nevada New Hampshire New Jersey New Mexico New York North Carolina North Dakota Ohio Oklahoma Oregon Other States1 Pennsylvania Rhode Island South Carolina South Dakota Tennessee Texas Utah Vermont Virginia Washington West Virginia Wisconsin Wyoming

11 0.5 188 12 1,769 128 19 5 119 79 2 578 98 172 204 123 76 18 32 52 13 366 468 14 95 14 57 29 14 8 329 610 45 19 268 53 121

United States

3

Rank of

Dairy Herds 2011 2020

541 1 16 91 50 431 88 134 96 260 10 1,265 6

645 83 183 218 170 48 10 27 42 10 430 447 8 76 12 59 31 11 5 330 626 41 15 254 42 125 1 482 1 10 135 30 595 96 122 75 280 6 1,259 8

7,240 15 80 350 450 590 240 1,000 690 460 95 12,100 20

20 1 90 35 1,215 120 95 20 85 130 1 440 525 805 965 240 450 75 200 340 110 1,200 2,350 55 720 55 120 20 100 40 140 3,650 145 60 1,745 130 200 2 5,430 10 35 180 180 360 150 640 475 340 45 7,110 10

9,194

9,388

51,481

31,657

199 5 1,721 197 19 4 113 81

55 4 110 120 1,675 130 140 50 140 260 2 575 810 1,650 1,670 370 900 140 310 510 160 2,160 4,325 120 1,530 70 245 20 120 85 140 5,450 290 145 3,170 230 270

Average Herd Size 2011 2020 200 125 1,709 100 1,056 985 136 100 850 304 950 1,005 121 104 122 332 84 129 103 102 81 169 108 117 62 200 233 1,450 117 94 2,350 112 155 131 85 230 448

2020 Average Herd Size

150

35

2,211 143 1,416 1,642 200 190 1,329 623

2 38 7 4 26 29 8 15

75 73 200 260 111 731 367 134 139 565 105 105 300

1,466 158 227 226 708 107 133 135 124 91 358 190 145 106 218 492 1,550 110 125 2,357 172 283 250 146 323 625 450 89 50 286 750 167 1,653 640 191 158 824 133 177 750

6 33 23 24 12 45 40 39 43 47 18 28 37 46 25 16 5 44 42 1 31 21 22 36 19 14 17 48 49 20 10 32 3 13 27 34 9 40 30 10

179

297

Source: USDA/NASS: Milk Production . 1/ Alaska and Hawaii combined into "Other States" beginning in 2019.

6

Table 7: Milk Production by State 2020 Production State

1990

2000

2010

2020

Share of U.S.

Rank

Per Capita

(Million Pounds) (Percent) (Pounds) Alabama 513 348 156 45 0.02% 47 9 1 Alaska 17 13 7 Arizona 1,645 3,033 4,151 4,889 2.2% 14 684 Arkansas 817 485 153 64 0.03% 46 21 California 20,947 32,245 40,385 41,282 18.5% 1 1,044 Colorado 1,323 1,924 2,816 5,150 2.3% 13 892 Connecticut 515 480 364 438 0.2% 34 121 Delaware 123 146 90 71 0.03% 45 71 Florida 2,526 2,463 2,133 2,289 1.0% 20 106 Georgia 1,440 1,433 1,395 1,772 0.8% 23 165 Hawaii1 151 116 25 Idaho 2,949 7,223 12,773 16,241 7.3% 3 8,831 Illinois 2,559 2,094 1,840 1,787 0.8% 22 139 Indiana 2,276 2,419 3,416 4,330 1.9% 15 638 Iowa 4,233 3,934 4,342 5,374 2.4% 12 1,684 Kansas 1,245 1,540 2,497 4,028 1.8% 16 1,371 Kentucky 2,255 1,695 1,152 938 0.4% 27 208 Louisiana 940 698 235 134 0.1% 41 29 Maine 614 668 587 593 0.3% 32 435 Maryland 1,373 1,351 1,001 878 0.4% 29 142 Massachusetts 461 376 242 199 0.1% 38 28 Michigan 5,234 5,705 8,333 11,683 5.2% 6 1,159 Minnesota 10,030 9,493 9,102 10,149 4.5% 8 1,779 Mississippi 749 541 223 131 0.1% 42 44 Missouri 3,040 2,258 1,445 1,085 0.5% 26 176 Montana 325 338 289 254 0.1% 36 234 Nebraska 1,345 1,255 1,168 1,460 0.7% 25 744 Nevada 328 476 664 765 0.3% 30 246 New Hampshire 302 312 294 234 0.1% 37 170 New Jersey 352 244 140 99 0.0% 43 11 New Mexico 1,524 5,236 7,881 8,169 3.7% 9 3,858 New York 11,067 11,921 12,713 15,337 6.9% 4 759 North Carolina 1,522 1,189 866 895 0.4% 28 86 North Dakota 1,073 686 384 328 0.1% 35 421 Ohio 4,667 4,461 5,270 5,618 2.5% 11 476 Oklahoma 1,245 1,314 959 733 0.3% 31 185 Oregon 1,611 1,640 2,399 2,629 1.2% 18 620 Other States1 5 0.002% 49 2 Pennsylvania 10,014 11,156 10,737 10,276 4.6% 7 790 Rhode Island 34 28 20 11 0.005% 48 10 South Carolina 447 370 286 189 0.1% 39 37 South Dakota 1,716 1,474 1,884 3,120 1.4% 17 3,519 Tennessee 2,022 1,405 850 542 0.2% 33 78 Texas 5,539 5,743 8,828 14,831 6.6% 5 509 Utah 1,267 1,687 1,927 2,227 1.0% 21 681 Vermont 2,368 2,683 2,521 2,602 1.2% 19 4,046 Virginia 2,004 1,900 1,719 1,522 0.7% 24 176 Washington 4,392 5,593 5,902 6,817 3.1% 10 885 West Virginia 270 265 157 89 0.0% 44 50 Wisconsin 24,187 23,259 26,035 30,730 13.8% 2 5,214 Wyoming 125 76 120 189 0.1% 40 327 United States 147,721 167,393 192,877 223,220 100.0% 670 Sources: USDA/NASS: Milk Production Disposition and Income ; Bureau of Census. 1/ Alaska and Hawaii

combined into "Other States" beginning in 2019.

7

Figure 5: Regional Milk Production

U.S. Milk Production, 1980 AK & HI 0.13%

Northeast 20%

Midwest 30%

Southeast 10%

Wisconsin 18%

Southwest 4%

California 11%

West 7%

U.S. Milk Production, 2020 Midwest 23%

Wisconsin 14%

AK & HI 0.002%

Southwest 13%

Northeast 14%

West 15%

8

Southeast 3%

California 18%

Table 8: Importance of the Dairy Sector by State, 2020 State California Wisconsin Idaho Texas New York Minnesota Michigan Pennsylvania New Mexico Washington Iowa Ohio Colorado Arizona Indiana Kansas South Dakota Oregon Florida Vermont Utah Georgia Illinois Virginia Nebraska Missouri Kentucky North Carolina Maryland Nevada Oklahoma Maine Tennessee Connecticut North Dakota Montana New Hampshire South Carolina Massachusetts Wyoming Mississippi Louisiana New Jersey West Virginia Delaware Arkansas Alabama Rhode Island Hawaii Alaska

Farm Receipts Total Dairy (Thousand Dollars) $49,081,688 $7,466,612 $11,253,764 $5,759,775 $8,131,327 $2,979,328 $20,047,872 $2,753,172 $5,295,594 $2,703,498 $16,237,606 $2,019,648 $7,566,763 $1,909,780 $6,567,803 $1,854,398 $2,996,486 $1,319,974 $9,893,427 $1,189,475 $25,695,928 $1,044,420 $8,366,787 $1,022,055 $7,262,521 $892,098 $3,849,892 $789,750 $10,328,174 $748,200 $16,836,388 $686,565 $8,511,755 $641,072 $5,063,729 $552,684 $7,448,571 $486,492 $727,108 $473,055 $1,793,175 $402,220 $7,701,320 $349,272 $15,304,891 $317,725 $3,285,048 $297,667 $20,565,182 $264,446 $9,347,652 $190,456 $5,227,132 $174,097 $10,034,102 $167,132 $1,962,838 $150,510 $668,484 $140,415 $6,128,780 $137,940 $707,141 $114,266 $3,583,709 $100,768 $572,704 $78,120 $7,001,003 $64,277 $3,750,990 $46,128 $198,854 $41,760 $2,079,592 $35,898 $463,255 $35,868 $1,516,620 $31,671 $4,732,613 $24,897 $3,119,499 $24,366 $1,258,607 $16,512 $632,626 $15,225 $1,044,697 $11,885 $8,030,468 $11,098 $4,656,162 $8,052 $59,228 $1,890 $532,561 $850 $38,512 $237

United States $357,160,627 $40,547,698 Source: USDA/ERS: Farm Business Economics Report

Dairy Share of Total

Rank of Dairy

First in income

(Percent) 15.2% 51.2% 36.6% 13.7% 51.1% 12.4% 25.2% 28.2% 44.1% 12.0% 4.1% 12.2% 12.3% 20.5% 7.2% 4.1% 7.5% 10.9% 6.5% 65.1% 22.4% 4.5% 2.1% 9.1% 1.3% 2.0% 3.3% 1.7% 7.7% 21.0% 2.3% 16.2% 2.8% 13.6% 0.9% 1.2% 21.0% 1.7% 7.7% 2.1% 0.5% 0.8% 1.3% 2.4% 1.1% 0.1% 0.2% 3.2% 0.2% 0.6%

3 1 1 2 1 4 1 1 1 3 6 3 3 2 5 5 5 3 5 1 2 6 6 5 5 9 6 10 5 2 9 3 7 2 8 9 3 8 3 6 10 9 7 5 6 10 10 3 8 6

Fruits and nuts Dairy products Dairy products Cattle and calves Dairy products Feed crops Dairy products Dairy products Dairy products Fruits and nuts Feed crops Oil crops Cattle and calves Vegetables Feed crops Cattle and calves Cattle and calves Miscellaneous products Miscellaneous products Dairy products Cattle and calves Poultry and eggs Feed crops Poultry and eggs Cattle and calves Oil crops Feed crops Poultry and eggs Poultry and eggs Cattle and calves Cattle and calves Miscellaneous products Oil crops Miscellaneous products Oil crops Food crops Miscellaneous products Poultry and eggs Miscellaneous products Cattle and calves Poultry and eggs Sugar and sweeteners Miscellaneous products Poultry and eggs Poultry and eggs Poultry and eggs Poultry and eggs Miscellaneous products Miscellaneous products Miscellaneous products

11.4%

3

Cattle and calves

9

Receipts (Thousand $) $20,374,987 $5,759,775 $2,979,328 $8,509,963 $2,703,498 $4,212,125 $1,909,780 $1,854,398 $1,319,974 $3,434,842 $8,147,775 $2,319,928 $3,819,882 $1,043,296 $3,286,280 $8,319,795 $2,301,167 $1,926,815 $2,351,057 $473,055 $456,137 $3,594,169 $6,847,509 $1,036,363 $9,645,347 $2,508,775 $1,099,486 $4,188,683 $738,366 $299,834 $2,889,783 $176,203 $757,365 $402,123 $2,236,726 $1,291,845 $88,060 $803,511 $288,569 $888,278 $1,908,064 $565,836 $833,026 $246,283 $727,104 $3,674,717 $2,872,768 $36,587 $325,984 $23,776 $63,089,369

Table 9: Farm Level Milk Prices By State

2010

2020

% Change From 2019

$14.40

(Dollars Per Hundredweight) $15.90 $14.20 $16.90 $19.50

$18.30

(Percent) -2%

$1,000 $8,052

Alaska Arizona Arkansas California Colorado Connecticut Delaware Florida Georgia

$17.50 $13.40 $13.50 $12.88 $14.00 $13.60 $13.60 $15.80 $14.00

$20.30 $14.10 $15.00 $12.02 $14.50 $14.70 $14.90 $16.70 $15.80

$20.30 $11.90 $13.60 $11.50 $11.80 $14.10 $13.50 $15.60 $12.90

$20.40 $14.90 $15.40 $13.92 $14.90 $16.50 $16.20 $18.60 $16.00

$24.40 $15.90 $17.10 $14.69 $16.40 $18.00 $18.40 $20.70 $18.40

$16.20 $17.90 $18.10 $17.40 $18.00 $17.10 $21.30 $19.80

-9% -3% 0% -7% -6% -7% -3% -1%

$789,750 $11,098 $7,466,612 $892,098 $78,120 $11,885 $486,492 $349,272

Hawaii1 Idaho Illinois Indiana Iowa Kansas Kentucky Louisiana Maine Maryland Massachusetts Michigan Minnesota Mississippi Missouri Montana Nebraska Nevada New Hampshire New Jersey New Mexico New York North Carolina North Dakota Ohio Oklahoma Oregon

$18.12 $12.20 $12.90 $13.00 $12.60 $13.10 $12.80 $14.10 $13.90 $13.60 $13.70 $13.20 $12.40 $13.80 $12.60 $12.80 $12.70 $12.70 $13.60 $13.38 $14.10 $13.00 $14.00 $11.80 $13.00 $13.60 $13.10

$20.70 $12.20 $12.90 $14.10 $13.30 $13.30 $14.30 $15.40 $15.20 $14.90 $14.80 $14.10 $13.22 $15.10 $13.60 $13.70 $13.10 $13.20 $14.80 $15.30 $13.40 $14.60 $15.80 $12.50 $13.90 $14.30 $13.20

$24.50 $10.60 $12.30 $12.90 $11.70 $11.60 $13.80 $13.90 $14.10 $13.50 $14.10 $12.90 $12.00 $13.90 $12.10 $12.80 $11.70 $11.00 $14.00 $13.20 $12.40 $13.10 $14.90 $11.30 $12.60 $13.60 $12.80

$27.00 $14.00 $15.20 $16.00 $15.30 $14.50 $16.20 $15.70 $16.80 $16.20 $16.50 $15.40 $15.40 $15.90 $15.50 $15.30 $15.40 $14.50 $16.30 $15.50 $14.30 $15.90 $16.40 $15.00 $15.80 $16.30 $15.70

$35.00 $14.90 $17.10 $17.30 $16.50 $17.30 $17.90 $18.00 $18.60 $18.40 $18.00 $17.00 $16.10 $18.40 $16.60 $16.90 $17.30 $16.90 $17.80 $16.80 $15.80 $17.40 $19.30 $15.90 $17.80 $18.00 $17.30

$18.40 $17.90 $17.40 $19.50 $17.10 $18.70 $18.60 $19.40 $17.30 $18.30 $16.40 $20.10 $19.30 $17.90 $18.60 $18.20 $18.50 $18.00 $17.20 $16.30 $17.70 $18.80 $19.90 $18.30 $19.00 $21.20

1% -4% -4% 1% -2% -4% -3% -3% -6% -6% -5% 4% -2% -6% 2% -1% -1% -6% -6% -4% -6% -3% 2% -2% -6% 0%

$2,979,328 $317,725 $748,200 $1,044,420 $686,565 $174,097 $24,366 $114,266 $150,510 $35,868 $1,909,780 $2,019,648 $24,897 $190,456 $46,128 $264,446 $140,415 $41,760 $16,512 $1,319,974 $2,703,498 $167,132 $64,277 $1,022,055 $137,940 $552,684

Other States 1 Pennsylvania Rhode Island South Carolina South Dakota Tennessee Texas Utah Vermont Virginia Washington West Virginia Wisconsin Wyoming

$13.60 $13.70 $14.50 $12.40 $13.30 $13.90 $12.50 $13.40 $13.30 $12.70 $13.00 $12.67 $12.70

$15.00 $14.80 $16.10 $13.00 $14.70 $14.70 $12.90 $14.40 $15.00 $13.30 $14.30 $13.47 $12.80

$13.70 $14.20 $14.10 $12.80 $13.80 $13.40 $11.20 $13.80 $14.80 $12.80 $13.30 $11.70 $11.00

$16.90 $16.80 $16.60 $15.30 $16.00 $15.30 $14.80 $16.00 $16.50 $14.90 $15.60 $15.60 $14.80

$18.30 $18.00 $19.90 $16.50 $17.90 $17.10 $16.20 $17.70 $19.40 $16.10 $16.90 $16.10 $16.50

$26.50 $18.20 $17.50 $19.30 $20.60 $18.80 $18.60 $18.20 $18.30 $19.70 $17.50 $17.50 $18.90 $16.90

-2% -6% -8% 1% 2% -3% -3% -2% -5% 1% -7% -5% 1% -6%

$1,087 $1,854,398 $1,890 $35,898 $641,072 $100,768 $2,753,172 $402,220 $473,055 $297,667 $1,189,475 $15,225 $5,759,775 $31,671

State

1980

Alabama 1

1990

2000

2005

2020 Cash Receipts

United States $13.05 $13.74 $12.40 $15.19 $16.35 $18.25 -2% $40,547,698 Source: USDA/NASS: Milk Production, Disposition, and Income . 1/ Alaska and Hawaii combined into "Other States" beginning in 2019.

10

Table 10: Selected Farm Level Annual Average Milk Prices Year

Class III Price @ 3.5%

Class IV Price @ 3.5%

Manufacturing Grade Milk

All-Milk Wholesale

% Change In All-Milk Price

(Dollars Per Hundredweight) 1965 $3.27 n/a $3.34 $4.23 1970 $4.66 n/a $4.70 $5.71 1975 $7.62 n/a $7.63 $8.75 1980 $11.88 n/a $12.01 $13.05 1985 $11.50 n/a $11.72 $12.76 1990 $12.21 n/a $12.34 $13.74 1995 $11.83 n/a $11.79 $12.78 2000 $9.74 $11.83 $10.52 $12.30 2005 $14.05 $12.88 $14.42 $15.10 2006 $11.89 $11.06 $12.19 $12.90 2007 $18.04 $18.36 $18.31 $19.10 2008 $17.44 $14.65 $17.91 $18.30 2009 $11.36 $10.89 $12.03 $12.80 2010 $14.41 $15.09 $14.56 $16.30 2011 $18.37 $19.04 n/a $20.10 2012 $17.44 $16.01 n/a $18.50 2013 $17.99 $19.05 n/a $20.10 2014 $22.34 $22.09 n/a $24.00 2015 $15.80 $14.34 n/a $17.10 2016 $14.87 $13.77 n/a $16.30 2017 $16.17 $15.16 n/a $17.70 2018 $14.62 $14.24 n/a $16.30 2019 $16.97 $16.30 n/a $18.70 2020 $18.17 $13.48 n/a $18.32 Source: USDA/AMS; USDA/NASS: Milk Production, Disposition, and Income Note: Class III and Class IV price at 3.5% milkfat; all others at test.

NASS discontinued reporting manufacturiing grade and fluid grade milk prices in 2011.

1.9% 4.0% 4.9% 8.4% -2.2% 1.3% -1.8% -14.6% -6.2% -14.6% 48.1% -4.2% -30.1% 27.3% 23.3% -8.0% 8.6% 19.4% -28.8% -4.7% 8.6% -7.9% 14.7% -2.0%

Figure 6: All-Milk Price and Class III Price $25.00 $24.00 $23.00

Dollars Per Hundredweight

$22.00 $21.00 $20.00 $19.00 $18.00 $17.00 $16.00 $15.00 $14.00 $13.00 $12.00 $11.00

$10.00 $9.00

1990

1995

2000

2005

All-Milk Price

11

2010

2015

Class III Price

2020

Table 11: Monthly Seasonality of U.S. All-Milk Price & Milk Production Month

2013

2014

2015

2016

2017

2018

2019

2020

$19.50 $18.90 $17.90 $14.40 $13.70 $18.20 $20.60 $18.60 $17.70 $20.00 $21.10 $18.30

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

$20.00 $19.50 $19.10 $19.50 $19.70 $19.50 $19.10 $19.60 $20.10 $20.90 $21.60 $22.00

U.S. All-Milk Price, Dollars Per Cwt @ Average Test $23.50 $17.50 $16.10 $18.90 $16.20 $16.60 $24.80 $16.90 $15.70 $18.40 $15.30 $16.80 $25.10 $16.60 $15.30 $17.30 $15.60 $17.60 $25.30 $16.60 $15.10 $16.50 $15.80 $17.70 $24.20 $16.80 $14.50 $16.70 $16.20 $18.00 $23.20 $16.90 $14.80 $17.30 $16.30 $18.10 $23.30 $16.60 $16.10 $17.20 $15.50 $18.70 $24.20 $16.80 $17.20 $18.10 $16.10 $18.90 $25.70 $17.60 $17.40 $17.90 $16.90 $19.30 $24.90 $17.70 $16.70 $18.10 $17.50 $20.20 $23.00 $18.30 $17.80 $18.20 $17.20 $21.20 $20.40 $17.30 $18.90 $17.20 $16.60 $20.70

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

17,119 15,762 17,681 17,260 17,829 16,948 16,794 16,796 15,839 16,462 15,998 16,772

17,276 15,897 17,832 17,484 18,104 17,329 17,434 17,223 16,511 17,066 16,555 17,337

U.S. Milk Production, Million Pounds 17,682 17,671 18,140 18,431 16,169 16,900 16,698 16,976 18,077 18,404 18,758 18,988 17,795 17,956 18,357 18,425 18,434 18,614 18,958 19,122 17,510 17,774 18,073 18,280 17,659 17,903 18,270 18,331 17,391 17,693 18,037 18,247 16,595 16,985 17,131 17,396 17,106 17,554 17,765 17,872 16,667 17,139 17,265 17,330 17,423 17,858 18,075 18,170

18,612 16,966 18,847 18,435 19,062 18,228 18,379 18,275 17,600 18,138 17,499 18,400

18,877 17,895 19,402 18,684 18,972 18,414 18,756 18,632 18,031 18,603 18,103 18,851

Source: USDA/NASS: Prices Received and Milk Production

Figure 7: Seasonality of Milk Supply & Price, 2020 640

$22.00

$20.00

630

$19.00 $18.00 620 $17.00 $16.00 610

$15.00 $14.00

600 Jan Feb Mar Apr May Jun

Jul

Average Daily Milk Production

12

$13.00 Aug Sep Oct Nov Dec

U.S. All-Milk Price

$ Per Cwt.

Million Pounds Per Day

$21.00

Table 12: Annual Wholesale Prices of Dairy Products

Year

CME Grade AA Butter 1/

NCE/CME 2/ Cheddar Cheese Barrels 40# Blocks

Nonfat Dry Milk West Central 3/ (Low/Med) (Low/Med)

(Annual Average, Cents Per Pound)

1975 1980 1985 1990 1995 2000 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

79.4 139.3 141.1 102.1 75.6 117.7 154.8 123.6 136.8 146.3 124.3 172.8 196.2 160.3 155.6 216.4 208.9 208.2 232.8 225.0 223.0 157.8

82.6 127.0 117.8 127.9 126.3 111.1 144.8 121.9 174.1 183.6 125.2 147.5 178.7 166.0 171.7 207.5 157.6 155.6 153.4 142.0 168.9 171.9

86.6 133.0 121.8 131.5 130.4 114.7 149.3 123.9 175.8 185.6 129.6 149.6 180.6 169.8 176.4 210.9 161.0 158.0 161.1 154.6 177.8 199.8

n/a n/a n/a n/a 105.5 100.6 94.9 89.2 176.2 124.6 94.8 119.1 150.9 134.2 172.4 171.9 90.3 84.2 87.1 80.5 105.6 105.6

62.9 88.6 84.1 100.6 108.6 101.5 98.5 100.1 180.4 130.0 99.3 125.0 155.3 137.9 174.1 174.1 94.3 85.4 87.6 80.9 106.1 106.3

Source: USDA / AMS: Dairy Market Statistics 1/ Grade A butter price is reported before 1998. Grade A butter trading ended July 1, 1998.

2/ Cheese prices: National Cheese Exchange through April 1997, then CME. 3/ Central (low/medium) June 1998 - 2001; Central/East (low/medium) 2002 - 2017; CME Grade A beginning 2004.

Table 13: Monthly Prices of Dairy Products on Chicago Mercantile Exchange

Month Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Grade AA Butter 40-lb. Block Cheddar Diff. From Diff. From 2019 2020 Prev. Yr. 2019 2020 Prev. Yr. (Monthly Average, Cents per Pound) 224.8 188.1 -16.3% 140.9 191.4 35.9% 226.6 179.1 -20.9% 155.9 183.4 17.7% 227.7 172.4 -24.3% 159.1 175.5 10.3% 226.4 120.0 -47.0% 166.2 110.2 -33.7% 233.7 147.1 -37.0% 168.0 167.0 -0.6% 238.8 182.9 -23.4% 179.1 256.2 43.1% 239.0 169.3 -29.2% 181.8 264.7 45.6% 229.4 150.4 -34.5% 187.9 177.3 -5.6% 216.9 151.6 -30.1% 204.0 232.8 14.1% 210.7 145.5 -30.9% 207.0 271.0 30.9% 205.0 139.4 -32.0% 196.6 205.2 4.4% 197.4 148.1 -25.0% 187.6 162.5 -13.4%

Source: USDA / AMS: Dairy Market Statistics

13

Table 14: Annual Retail Prices for Selected Dairy Products Year

Whole Milk

Cheddar Cheese

($ per gal.)

1945 1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

$2.78 $3.19 $3.26 $3.57 $3.49 $3.46 $3.69 $3.42 $3.20 $3.23 $2.90 $3.04 $3.32

Butter 1/

($ per pound)

$0.36 $0.52 $0.58 $0.69 $0.75 $1.01 $1.54 $2.23 $3.09 n/a $3.39 $3.83 $4.38 $4.71 $5.42 $5.63 $5.56 $5.54 $5.38 $5.23 $4.89 $5.14 $5.31 $5.50

$0.51 $0.73 $0.71 $0.75 $0.75 $0.87 $1.03 $1.88 $2.12 $1.99 $1.61 $2.52 $3.28 $3.13 $3.60 n/a n/a n/a n/a n/a n/a $4.07 $3.98 $3.62

Ice Cream

Farm Price as pct. of Retail 2/

($ per 1/2 gal.)

(Percent)

$0.87 $0.79 $0.85 $1.22 $1.82 $2.30 $2.60 $2.65 $3.45 $3.74 $4.47 $4.93 $5.04 $4.99 $4.89 $4.74 $4.76 $4.69 $4.74 $4.81 $4.92

52% 44% 39% 33% 30% 31% 32% 35% 31% 34% 39% 28% 27% 30% 28% 31% 29%

Source: Bureau of Labor Statistics, Department of Labor. 1/ 2018: April - December 2/ Source: USDA / ERS Agricultural Outlook; all dairy. Beginning 2011, NMPF estimate.

40%

Figure 8: Farm Value of Milk as Percent of Retail Value

Percent

35%

30%

25%

2000

2010

2012

2014

14

2016

2018

2020

Table 15: Milk Production Costs & Returns By Herd Size, 2020 1/ Size of Operation 1-99 cows

100-199 200-499 500-999 cows cows cows

1,0001,999 cows

2,000 or more cows

(Dollars Per Hundredweight)

Gross value of production Milk sold Cattle Other income1 Total, gross value of production

$20.50 $1.39 $0.61 $22.50

$19.25 $1.16 $0.54 $20.95

$19.94 $1.32 $0.49 $21.76

$19.44 $1.37 $0.46 $21.27

$18.35 $1.39 $0.49 $20.23

$17.99 $1.16 $0.51 $19.66

Operating costs Purchased feed Homegrown harvested feed Grazed feed Total, feed costs

$5.26 $6.42 $0.29 $11.98

$5.30 $5.64 $0.13 $11.07

$6.19 $3.94 $0.11 $10.24

$6.87 $2.66 $0.04 $9.57

$7.45 $2.10 $0.01 $9.56

$7.84 $1.91 $0.01 $9.76

Other Operating Costs Veterinary and Medicine Bedding and litter Marketing Custom services Fuel, lube, and electricity Repairs Other operating costs2 Interest on operating capital Total, operating costs

$0.84 $0.33 $0.28 $0.79 $0.99 $1.17 $0.04 $0.03 $16.44

$0.88 $0.31 $0.23 $0.72 $0.88 $0.95 $0.01 $0.03 $15.08

$0.89 $0.28 $0.15 $0.78 $0.70 $0.85 $0.00 $0.03 $13.93

$0.84 $0.25 $0.17 $0.60 $0.58 $0.67 $0.00 $0.03 $12.70

$0.74 $0.18 $0.15 $0.66 $0.52 $0.55 $0.00 $0.03 $12.39

$0.69 $0.10 $0.18 $0.62 $0.38 $0.43 $0.00 $0.03 $12.19

Allocated overhead: Hired labor Opportunity cost of unpaid labor Capital recovery of machinery and equipment3 Opportunity cost of land Taxes and insurance General farm overhead Total, allocated overhead

$0.76 $10.82 $5.02 $0.09 $0.29 $1.10 $18.07

$1.59 $4.36 $4.64 $0.05 $0.28 $0.78 $11.71

$2.53 $1.66 $4.49 $0.03 $0.26 $0.70 $9.68

$2.65 $0.75 $4.17 $0.01 $0.17 $0.59 $8.33

$2.75 $0.33 $3.94 $0.00 $0.16 $0.54 $7.72

$2.18 $0.12 $3.69 $0.00 $0.12 $0.35 $6.46

Total, costs listed

$34.51

$26.79

$23.60

$21.04

$20.11

$18.65

-$12.01 $6.05

-$5.84 $5.87

-$1.85 $7.83

$0.23 $8.56

$0.11 $7.84

$1.00 $7.47

57 17,251

136 19,441

303 21,808

686 23,660

1,339 22,747

3,673 22,747

Value of production less total costs listed Value of production less operating costs Source: USDA / ERS. Supporting information: Milk cows (head per farm) Output per cow (pounds)

1/ Developed from survey base year, 2016.

2/ Income from renting or leasing dairy stock to other operations; renting space to other dairy operations; co-op patronage dividends associated with the dairy; assessment rebates, refunds, and other dairy-related resources; and the fertilizer value of manure production.

3/ Costs for third party organic certification 4/ Machinery and equipment, housing, manure handling, feed storage structures, and the dairy breeding herd.

15

Figure 9: Share of Cash Expenses by Size of Operation, 2020

100-199 cows

1-99 cows Total Feed 68%

Hired Labor 4%

Veterinary and Medicine 5%

Other Operating Repairs Costs 7% 10%

Total Feed 65%

Fuel, Lube & Electricity 6%

Hired Labor 10%

Veterinary and Medicine 6% Fuel, Lube & Electricity 4%

Hired Labor 15%

Other Operating Costs 9%

Fuel, Lube & Electricity Repairs 5% 6%

500-999 cows

200-499 cows Total Feed 61%

Veterinary and Medicine 5%

Other Operating Costs 9%

1,000-1,999 cows Total Feed 62%

Total Feed 62%

Veterinary and Medicine 5%

Repairs 5% Hired Labor 17%

Veterinary and Medicine 5%

Other Operating Costs 8%

Fuel, Lube & Electricity 4% Repairs 4%

2,000 cows or more cows Total Feed 67%

Veterinary and Medicine 5%

Fuel, Lube & Electricity 3%

Other Hired Labor Operating Costs 18% 8%

Fuel, Lube & Electricity 3%

Repairs 4% Hired Labor 15%

Source: USDA / ERS. Does not show allocated overhead costs, except hired labor.

16

Other Operating Costs 7%

Repairs 3%

Table 16: U.S. Milk Production Costs & Returns 2015

2016

2017

2018

2019

2020

(Dollars Per Hundredweight) Gross value of production Milk sold Cattle Other income1 Total, gross value of production

$17.02 $16.83 $18.25 $16.82 $19.26 $18.87 $2.00 $1.47 $1.37 $1.26 $1.23 $1.27 $0.84 $0.54 $0.50 $0.50 $0.53 $0.51 $19.86 $18.84 $20.11 $18.58 $21.02 $20.65

Operating costs Purchased feed Homegrown harvested feed Grazed feed Total, feed costs

$6.11 $5.46 $0.11 $11.68

Other Operating Costs Veterinary and Medicine Bedding and litter Marketing Custom services Fuel, lube, and electricity Repairs Other operating costs2 Interest on operating capital Total, operating costs

$0.88 $0.77 $0.75 $0.76 $0.78 $0.78 $0.26 $0.20 $0.19 $0.20 $0.20 $0.20 $0.26 $0.18 $0.18 $0.18 $0.19 $0.18 $0.61 $0.67 $0.65 $0.66 $0.67 $0.67 $0.53 $0.52 $0.59 $0.67 $0.69 $0.58 $0.62 $0.61 $0.62 $0.64 $0.66 $0.67 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.01 $0.03 $0.06 $0.14 $0.14 $0.03 $14.85 $12.36 $12.34 $13.21 $13.93 $13.21

Allocated overhead: Hired labor Opportunity cost of unpaid labor Capital recovery of machinery and equipment3 Opportunity cost of land Taxes and insurance General farm overhead Total, allocated overhead

$6.68 $2.63 $0.07 $9.38

$6.49 $2.72 $0.07 $9.29

$6.76 $7.20 $6.93 $3.12 $3.33 $3.11 $0.08 $0.07 $0.07 $9.96 $10.60 $10.10

$1.69 $2.28 $3.73 $0.03 $0.20 $0.63 $8.56

$1.83 $1.71 $3.77 $0.02 $0.18 $0.53 $8.04

$1.87 $1.77 $3.86 $0.02 $0.18 $0.54 $8.24

$1.99 $1.82 $4.00 $0.03 $0.18 $0.55 $8.57

$2.10 $1.88 $4.10 $0.02 $0.18 $0.57 $8.86

$2.20 $1.92 $4.13 $0.02 $0.18 $0.58 $9.02

Total, costs listed

$23.41

$20.39

$20.58

$21.78

$22.79

$22.24

Value of production less total costs listed Value of production less operating costs

-$3.55 $5.01

-$1.55 $6.49

-$0.46 $7.77

-$3.20 $5.37

-$1.77 $7.09

-$1.59 $7.44

183 20,724

245 21,698

245 21,698

245 21,698

245 21,698

245 21,698

Source: USDA / ERS. Supporting information: Milk cows (head per farm) Output per cow (pounds)

1/ Income from renting or leasing dairy stock to other operations; renting space to other dairy operations; co-op patronage dividends associated with the dairy; assessment rebates, refunds, and other dairy-related resources; and the fertilizer value of manure production.

2/ Costs for third party organic certification 3/ Machinery and equipment, housing, manure handling, feed storage structures, and the dairy breeding herd.

17

Table 17: Monthly Milk-Feed Price Ratio1 Year 2000 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Jan 3.07 3.49 3.16 2.45 2.65 1.60 2.33 2.00 1.71 1.58 2.46 2.10 2.18 2.71 2.20 2.06 2.41

Feb 2.94 3.48 2.93 2.33 2.24 1.51 2.34 2.00 1.55 1.52 2.58 2.06 2.18 2.61 2.03 2.07 2.35

Mar 2.88 3.33 2.70 2.39 2.07 1.55 2.18 2.10 1.48 1.48 2.54 2.01 2.12 2.40 1.98 2.14 2.24

Apr 2.84 3.18 2.46 2.50 1.95 1.58 2.19 1.80 1.41 1.54 2.42 2.00 1.99 2.22 1.90 2.11 1.85

May 2.72 2.96 2.35 2.56 1.83 1.49 2.18 1.70 1.34 1.54 2.23 1.99 1.90 2.20 1.90 2.12 1.78

Jun 2.97 2.94 2.38 2.88 1.87 1.47 2.26 1.90 1.37 1.52 2.19 2.06 1.92 2.31 1.97 2.09 2.38

July 3.31 2.98 2.35 3.17 1.90 1.59 2.30 1.90 1.33 1.53 2.36 2.00 2.16 2.27 1.93 2.16 2.72

Aug 3.37 3.08 2.48 3.19 1.81 1.80 2.36 1.80 1.37 1.69 2.63 2.11 2.44 2.50 2.06 2.26 2.48

Sep 3.36 3.27 2.61 3.19 1.90 2.00 2.36 1.80 1.59 1.88 2.96 2.25 2.49 2.46 2.13 2.34 2.27

Oct 3.12 3.39 2.51 3.10 2.02 2.11 2.40 1.80 1.74 2.12 2.92 2.30 2.38 2.48 2.22 2.44 2.49

Nov 3.05 3.46 2.44 3.05 2.01 2.26 2.23 1.90 1.74 2.27 2.75 2.46 2.59 2.54 2.21 2.66 2.58

Dec Average 3.04 3.06 3.29 3.24 2.43 2.56 2.85 2.81 1.92 2.01 2.42 1.78 1.98 2.26 1.80 1.87 1.65 1.52 2.30 1.75 2.40 2.54 2.29 2.14 2.73 2.26 2.38 2.42 2.07 2.05 2.57 2.25 2.17 2.31

Source: USDA / NASS, Agricultural Prices; 1/ Pounds of feed equal in value to one pound of whole milk

Table 18: Monthly DMC/MPP Calculated Feed Cost ($ per cwt.)2 Year 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Jan 4.29 4.72 4.66 5.08 5.58 4.80 4.80 6.21 8.57 8.96 7.76 9.67 11.44 13.61 10.81 9.26 8.00 7.84 7.98 8.89 9.15

Feb 4.43 4.60 4.57 5.13 5.86 4.61 4.81 6.80 9.30 8.27 7.49 10.46 11.82 13.78 11.01 9.14 7.79 7.92 8.42 8.89 9.10

Mar 4.53 4.55 4.63 5.11 6.34 4.90 4.87 6.85 9.45 8.17 7.40 10.42 12.24 13.86 11.10 9.07 7.83 7.95 8.83 8.84 9.05

Apr 4.60 4.63 4.65 5.17 6.66 5.00 5.03 6.77 9.94 8.32 7.33 11.50 12.58 13.50 11.65 9.02 8.17 7.95 9.18 8.88 8.56

May 4.86 4.66 4.76 5.37 6.77 5.15 5.18 7.15 10.47 8.87 7.49 11.91 12.80 13.90 11.94 8.87 8.73 8.09 9.42 9.00 8.44

Jun 4.52 4.58 4.75 5.30 6.49 5.24 5.13 7.35 11.12 9.05 7.55 11.93 12.75 14.12 11.55 8.74 9.05 7.97 8.93 9.47 8.27

July 4.10 4.79 5.03 4.99 6.13 5.29 5.06 7.06 11.11 8.19 7.75 12.05 14.23 14.11 10.62 9.15 8.51 8.22 8.68 9.43 8.21

Aug 3.95 4.79 5.31 4.96 5.38 5.03 4.91 6.95 10.71 8.04 7.97 12.64 15.12 12.81 10.36 8.76 7.84 7.73 8.47 9.05 8.11

Sep 4.19 4.79 5.40 5.20 4.99 4.78 5.12 7.24 10.36 7.77 8.34 12.03 14.10 12.13 10.30 8.55 7.82 7.81 8.44 8.89 8.65

Oct 4.35 4.64 5.14 5.15 4.81 4.61 5.59 7.31 8.95 7.76 8.62 11.16 13.77 10.87 9.28 8.48 7.76 7.90 8.44 9.02 9.23

Nov 4.52 4.63 5.03 5.33 4.63 4.49 6.00 7.62 8.80 7.82 9.00 11.05 13.89 10.58 9.61 8.19 7.62 7.71 8.34 8.79 9.66

Dec Average 4.78 4.43 4.70 4.67 5.03 4.91 5.37 5.18 4.64 5.69 4.80 4.89 6.08 5.22 8.21 7.13 8.46 9.77 7.81 8.25 9.42 8.01 11.03 11.32 13.72 13.21 10.94 12.85 9.74 10.66 8.10 8.78 7.70 8.07 7.84 7.91 8.55 8.64 8.75 8.99 9.96 8.86

Source: USDA / NASS and USDA / AMS; 2/ Feed cost formula as defined in the 2014 and 2018 farm bills.

Figure 10: Average Annual DMC/MPP Calculated Feed Cost $15.00 $13.50 $12.00

$10.50 $9.00 $7.50 $6.00 $4.50 $3.00 2000

2002

2004

2006

2008

2010

18

2012

2014

2016

2018

2020

Table 19: Monthly DMC/MPP Margin ($ per cwt.)1 Year 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Jan Feb Mar Apr May Jun July 7.71 7.37 7.27 7.30 7.14 7.78 8.50 8.28 8.50 9.35 9.97 10.84 11.62 11.41 8.94 8.53 7.97 7.85 7.34 6.75 6.07 6.72 6.17 5.89 5.83 5.63 5.70 7.11 7.62 7.74 9.16 11.44 12.53 11.71 9.97 11.30 10.79 10.60 10.20 9.55 9.16 9.51 9.60 8.69 7.73 6.97 6.72 6.77 6.64 8.29 8.10 8.75 9.73 10.85 12.85 14.54 11.93 9.80 8.65 8.16 7.93 8.18 8.29 4.34 3.33 3.53 3.58 2.73 2.25 3.11 8.34 8.31 7.40 7.27 7.51 7.85 8.15 7.03 8.64 9.98 8.10 7.69 9.17 9.75 7.46 5.78 4.96 4.22 3.40 3.45 2.67 6.39 5.72 5.24 6.00 5.80 5.38 4.99 12.69 13.79 14.10 13.65 12.26 11.65 12.68 8.34 7.66 7.53 7.48 7.83 8.16 7.45 8.10 7.91 7.47 6.83 5.77 5.75 7.59 11.06 10.58 9.35 8.55 8.61 9.33 9.08 8.12 6.88 6.77 6.62 6.78 7.37 6.72 7.71 7.91 8.66 8.82 9.00 8.63 9.27 10.35 9.80 8.85 5.84 5.26 9.93 12.39

Aug 8.55 11.71 5.99 8.34 9.52 9.77 7.09 14.65 7.69 4.06 8.73 9.46 3.08 6.79 13.74 7.94 9.26 10.27 7.43 9.85 10.49

Sep 8.71 12.31 6.20 9.30 10.51 10.52 7.88 14.56 7.84 5.23 9.36 9.07 5.60 7.97 15.40 8.95 9.48 9.99 8.26 10.41 9.05

Oct 8.15 10.96 6.96 9.85 10.79 10.89 7.91 14.09 8.85 6.54 9.88 8.84 7.83 10.03 15.62 9.22 8.84 10.00 8.96 10.88 10.77

Nov 7.98 9.77 6.87 9.07 11.57 10.61 7.90 14.28 8.30 7.58 8.90 9.45 8.21 11.02 13.39 10.01 9.98 10.39 8.66 12.21 11.44

Dec Average 8.22 7.89 8.80 10.30 6.87 7.19 8.43 7.34 11.76 10.37 10.00 10.24 8.12 7.66 13.29 12.02 7.04 8.55 8.69 4.59 7.28 8.25 8.67 8.82 7.08 5.31 11.06 7.21 10.66 13.30 9.10 8.31 11.10 8.18 9.36 9.71 7.85 7.54 11.95 9.62 8.34 9.38

Source: USDA / NASS and USDA / AMS; 1/ Margin as defined in the 2014 and 2018 farm bills.

Figure 11: Average Annual DMC/MPP Margin

$14.00 $13.00 $12.00 $11.00 $10.00 $9.00 $8.00 $7.00 $6.00 $5.00 $4.00

2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 Figure 12: Monthly DMC/MPP Calculated Margin $13.00 $12.00 $11.00 $10.00 $9.00 $8.00 $7.00 $6.00 $5.00 Jan

Feb

Mar

Apr 2020

May

Jun 2019

19

July

Aug

Sep

Oct

5-Year Average

Nov

Dec

Table 20: Average Prices Received for Livestock Marketing Beef & Dairy Year Cows 1975 1980 1985 1990 1995 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

$19.80 $45.70 $36.50 $51.50 $35.70 $37.90 $40.90 $37.30 $42.90 $50.30 $51.70 $46.60 $47.90 $50.60 $44.80 $54.80 $71.20 $81.70 $82.30 $107.00 $103.00 $74.30 $69.10 $63.50 $62.00 $64.20

Steers & Heifers 1/ All Cattle 1/ (Dollars Per Cwt.) $36.30 $32.30 $66.90 $62.40 $57.70 $53.70 $78.80 $74.60 $65.10 $61.80 $72.30 $68.60 $75.10 $71.30 $70.10 $66.50 $84.20 $79.70 $90.20 $85.80 $94.30 $89.70 $92.30 $87.20 $95.40 $89.90 $94.50 $89.10 $85.40 $80.30 $97.70 $92.20 $117.00 $113.00 $123.00 $121.00 $126.00 $125.00 $153.00 $152.00 $148.00 $147.00 $121.00 $119.00 $122.00 $120.00 $117.00 $115.00 $118.00 $116.00 $111.00 $109.00

All Calves $27.20 $76.80 $62.10 $95.60 $73.10 $104.00 $106.00 $96.40 $102.00 $119.00 $135.00 $133.00 $119.00 $110.00 $105.00 $117.00 $142.00 $172.00 $181.00 $261.00 $247.00 $158.00 $168.00 $170.00 $159.00 $161.00

Replacement Milk Cows ($ Per Head) $412 $1,190 $860 $1,160 $1,130 $1,340 $1,500 $1,600 $1,340 $1,580 $1,770 $1,730 $1,830 $1,950 $1,390 $1,330 $1,420 $1,430 $1,380 $1,830 $1,990 $1,760 $1,620 $1,360 $1,200 $1,300

Source: USDA / NASS, Agricultural Prices. 1/ At least 500 pounds

Figure 13: U.S. Average Price Received for Replacement Milk Cows

$2,000

$1,800 $1,600 Dollars Per Head

$1,400 $1,200 $1,000 $800 $600 $400 $200 $0 1985

1990

1995

2000

20

2005

2010

2015

2020

Table 21: Average Prices Received for Crops Marketing 1 Year

Corn (bu)

1975 1980 1985 1990 1995 2000 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

$2.54 $3.11 $2.23 $2.28 $3.24 $1.85 $2.00 $3.04 $4.20 $4.06 $3.55 $5.18 $6.22 $6.89 $4.46 $3.70 $3.61 $3.36 $3.36 $3.61 $3.56 $4.53

Oats (bu) $1.45 $1.72 $1.23 $1.14 $1.67 $1.10 $1.63 $1.87 $2.63 $3.15 $2.02 $2.52 $3.49 $3.89 $3.75 $3.21 $2.12 $2.06 $2.59 $2.66 $2.82 $2.77

Barley Soybeans Soybean (bu) (bu) Meal (ton) (Dollars Per Unit) $2.42 $4.92 n/a $2.79 $7.60 n/a $1.98 $5.05 n/a $2.14 $5.74 n/a $2.89 $6.72 n/a $2.11 $4.54 $174.62 $2.53 $5.66 $188.17 $2.85 $6.43 $175.60 $4.02 $10.10 $230.40 $5.37 $9.97 $331.09 $4.66 $9.59 $347.74 $3.86 $11.30 $313.47 $5.35 $12.50 $335.07 $6.43 $14.40 $439.77 $6.06 $13.00 $466.54 $5.30 $10.10 $478.26 $5.52 $8.95 $341.20 $4.96 $9.47 $328.64 $4.47 $9.33 $315.00 $4.62 $8.48 $344.71 $4.69 $8.57 $305.80 $4.75 $10.80 $318.35

Alfalfa Hay 2 (dry ton) $52.10 $71.00 $67.60 $86.60 $87.20 $88.90 $104.00 $113.00 $137.00 $165.00 $113.00 $123.00 $196.00 $211.00 $199.00 $196.00 $158.00 $136.00 $154.00 $180.00 $179.00 $171.00

Source: USDA / NASS: Agricultural Prices. Prices are season averages for crop years.

1/ Marketing years beginning: June (barley and oats); September (soybeans, corn, and May (hay).

2/ Prior to 1990, all hay. 5-state average premium alfalfa prices: 2019: $213/ton; 2020: $202/ton.

Soybean meal prices are calendar year averages of high protein soybean meal at the DecaturCentral Illinois market as reported by USDA/AMS. Unavailable prior to 2000.

Table 22: Crop Production Year

Corn

1975 1980 1985 1990 1995 2000 2005 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

5,841 6,639 8,875 7,934 7,400 9,915 11,112 12,425 12,314 10,755 13,831 14,217 13,602 15,148 14,609 14,340 13,620 14,111

Soybeans 1,548 1,798 2,099 1,926 2,174 2,758 3,068 3,331 3,097 3,042 3,357 3,928 3,927 4,296 4,412 4,428 3,552 4,216

All Wheat Oats (Million Bushels) 2,127 639 2,381 459 2,424 518 2,730 358 2,183 161 2,228 149 2,103 115 2,163 82 1,993 50 2,252 61 2,135 65 2,026 70 2,062 89 2,309 65 1,741 50 1,885 56 1,932 53 1,828 66

Source: USDA / NASS: Crop Production Annual.

21

Barley

Sorghum

379 361 590 422 359 318 212 180 155 219 217 182 218 200 143 154 172 171

754 579 1,120 573 459 471 393 345 213 248 392 433 597 480 362 365 341 373

Table 23: Federal Market Order Statistics by Market, 2020 Federal Order

Order Number

Producer Deliveries

Class I

(Million #) Northeast (Boston) 1 26,824 Appalachian (Charlotte) 5 5,322 Florida (Tampa) 6 2,509 Southeast (Atlanta) 7 4,700 Upper Midwest (Chicago) 30 20,290 Central (Kansas City) 32 13,315 Mideast (Cleveland) 33 17,982 1 California (Los Angeles) 51 23,004 Pacific Northwest (Seattle) 124 7,682 Southwest (Dallas) 126 11,692 Arizona (Phoenix) 131 4,497 All Markets Average or Total 137,818 Source: USDA / AMS 1/ Effective November 1, 2018

31% 74% 82% 69% 13% 35% 38% 22% 22% 36% 28% 32%

22

Utilization Class II Class III (Percent) 24% 13% 13% 17% 9% 12% 23% 7% 6% 12% 9% 14%

26% 4% 1% 3% 69% 24% 21% 3% 30% 7% 19% 24%

Class IV 20% 9% 4% 11% 9% 29% 18% 68% 41% 45% 45% 30%

Uniform Price at 3.5% bf $17.12 $18.85 $20.89 $18.93 $15.92 $15.25 $15.85 $14.64 $15.61 $15.65 $15.68 $16.12

23

Markets 39 63 80 73 62 56 47 44 42 33 11 10 10 10 10 10 10 10 10 10 10 10 10 10 11 11 11

Source: USDA / AMS, Dairy Market Statistics.

Year 1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 20181 2019 2020

Number of Handlers Producers 1,101 156,584 1,483 188,611 2,259 189,816 1,891 158,077 1,588 143,411 1,315 123,855 1,091 117,490 884 116,765 753 100,397 571 88,717 346 69,585 302 53,032 314 52,721 312 49,777 333 47,854 251 46,671 251 45,918 241 43,650 237 40,745 225 40,043 223 39,146 214 36,112 216 34,689 217 32,981 233 32,061 230 29,474 228 24,906 1/ Includes California order, effective November 1, 2018

FMMO Deliveries (Billion Pounds) Producer % of U.S. Used In % Class I Deliveries Production Class I Utilization 18.7 25.2% 11.0 58.9% 28.9 31.8% 18.0 62.3% 44.8 43.1% 28.8 64.2% 54.4 48.3% 34.6 63.5% 65.1 59.2% 40.1 61.5% 69.2 62.8% 40.1 57.9% 84.0 67.4% 41.0 48.9% 97.8 70.2% 42.2 43.2% 102.4 70.5% 43.8 42.8% 108.5 71.1% 45.0 41.5% 116.9 69.8% 46.0 39.3% 114.7 64.8% 44.6 38.9% 120.6 66.4% 45.3 37.6% 114.4 61.6% 45.2 39.5% 115.9 61.0% 45.0 38.8% 123.4 65.2% 45.3 36.7% 126.9 65.8% 45.0 35.4% 126.9 64.7% 44.4 35.0% 122.4 61.0% 43.5 35.5% 132.1 65.6% 42.7 32.4% 129.4 62.8% 41.4 32.0% 126.1 60.5% 41.2 32.7% 133.8 63.0% 41.1 30.7% 135.5 62.9% 40.6 30.0% 141.7 65.1% 40.9 28.9% 156.5 71.7% 43.9 28.0% 137.8 61.7% 43.8 31.8%

Table 24: Measures of Growth in Federal Milk Marketing Orders Price at 3.5% BF ($ Per Cwt.) Class I Blend $4.51 $3.93 $4.67 $4.08 $4.88 $4.47 $4.93 $4.31 $6.74 $5.95 $9.36 $8.64 $13.77 $12.86 $13.88 $12.61 $15.55 $13.78 $14.19 $12.79 $14.24 $12.11 $17.13 $15.07 $14.59 $12.86 $20.81 $19.19 $20.78 $18.24 $14.40 $12.44 $18.25 $16.07 $21.97 $19.87 $20.39 $18.05 $21.80 $19.44 $26.14 $23.54 $19.21 $16.70 $17.70 $15.38 $19.31 $16.96 $17.70 $15.51 $19.74 $17.35 $19.70 $16.12

Table 25: Sales & Butterfat Content of Fluid Milk Products in Federal Milk Marketing Orders1 Whole Milk Items % of Total Average Fluid Sales bf test

Year 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

89.3% 86.4% 77.0% 68.8% 59.4% 50.4% 37.6% 33.4% 33.6% 30.6% 29.5% 30.0% 28.7% 28.3% 27.3% 27.1% 27.1% 27.8% 28.6% 30.7% 32.6% 34.2% 35.6% 36.9% 38.0%

3.57% 3.52% 3.46% 3.37% 3.32% 3.31% 3.27% 3.27% 3.27% 3.27% 3.30% 3.27% 3.27% 3.27% 3.27% 3.28% 3.28% 3.29% 3.29% 3.25% 3.25% 3.25% 3.25% 3.25% 3.25%

Skim, Low & Reduced Fat Items % of Total Average Fluid Sales bf test (Percent) 7.7% 1.12% 11.1% 1.36% 21.1% 1.54% 29.2% 1.46% 38.5% 1.49% 44.9% 1.53% 57.0% 1.44% 62.9% 1.33% 62.0% 1.27% 63.1% 1.27% 64.2% 1.28% 68.6% 1.26% 69.9% 1.26% 71.7% 1.27% 72.7% 1.23% 72.9% 1.23% 72.9% 1.22% 72.2% 1.26% 71.4% 1.28% 69.3% 1.34% 67.4% 1.36% 65.8% 1.37% 64.4% 1.39% 63.1% 1.41% 62.0% 1.46%

All Fluid Beverage Average bf test 3.38% 3.28% 3.05% 2.75% 2.60% 2.47% 2.13% 2.00% 1.98% 1.94% 1.93% 1.88% 1.85% 1.84% 1.81% 1.80% 1.79% 1.82% 1.85% 1.95% 2.00% 2.05% 2.08% 2.12% 2.17%

Source: USDA/AMS, Federal Milk Order Market Statistics, NMPF Calculations 1/ Fluid milk products: plain and flavored whole, lowfat and skim milk, buttermilk and drinkable yogurt, including organic products. Beginning 2015, estimated U.S. sales.

Figure 14: Average Butterfat Content of Fluid Milk Products 4.0% 3.5% 3.0% 2.5% 2.0% 1.5% 1.0% 0.5% 0.0% 1960

1970

1980

1990

24

2000

2010

1

2020

Table 26: Annual Commercial Disappearance of Dairy Products, Milk Equivalent, Total Milk Solids Basis Year

Fluid Milk

Butter

Cheese 1/

1970 1975 1980 1985 1990 1995 2000 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

48,329 47,870 46,908 47,149 46,378 47,507 45,859 44,680 44,236 43,961 43,737 44,059 43,849 43,243 42,463 41,381 40,470 40,003 39,767 38,835 37,981 37,329 37,303

7,944 8,409 7,772 8,121 8,092 7,849 8,347 8,951 9,327 9,894 11,136 10,211 10,648 11,741 11,937 12,436 12,273 11,961 12,171 12,245 13,041 13,191 13,590

11,816 15,416 19,353 23,980 30,366 32,072 37,559 41,893 43,401 44,637 44,894 45,273 46,814 47,801 48,713 49,527 51,348 52,500 54,229 55,740 57,182 57,692 57,476

Frozen Products

Non-Fat Dry Milk 2/

Other Products

6,686 4,741 3,666 2,959 4,748 7,282 6,038 12,483 11,565 11,005 13,619 12,608 14,386 14,896 16,451 16,572 16,995 17,712 17,524 17,302 17,959 18,552 19,914

25,863 27,092 32,208 36,800 43,505 43,644 51,844 59,497 62,247 64,527 64,834 64,591 65,004 67,022 68,659 70,554 72,902 75,313 78,460 79,345 84,113 84,299 86,357

Total Milk

(Million Pounds)

12,433 13,227 12,983 14,387 14,440 15,619 16,505 15,906 16,246 16,064 15,803 15,589 15,806 15,346 15,729 15,266 15,009 15,625 15,568 15,301 12,682 12,725 12,217

108,481 111,872 118,097 128,084 142,199 153,972 166,152 183,410 187,023 190,087 194,022 192,332 196,506 200,049 203,951 205,736 208,997 213,114 217,720 218,767 222,958 223,788 226,857

Source: NMPF and USDA / ERS: Livestock, Dairy, and Poultry Situation and Outlook Includes commercial exports; 1/ Excludes whey values; 2/ Includes skim milk powder

Table 27: Per Capita Commercial Disappearance of Dairy Products Year 1970 1975 1980 1985 1990 1995 2000 2005 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Fluid Milk (ME Lbs.) % Change 236.9 222.2 206.4 197.7 185.4 178.2 162.4 150.9 141.6 138.6 135.2 130.8 127.0 124.7 123.1 119.4 116.2 113.6 113.0

0.8% 0.1% -2.3% 0.7% -2.1% 2.8% -0.9% -1.2% -1.2% -2.1% -2.5% -3.2% -2.9% -1.9% -1.3% -3.0% -2.7% -2.2% -0.6%

Cheese 1/ (ME Lbs.) % Change 58.2 72.2 88.0 112.8 120.3 119.5 131.5 139.5 145.7 146.3 147.1 147.0 150.1 154.1 159.3 161.4 164.8 165.4 164.0

Total Products (ME Lbs.) % Change

-6.9% -1.5% 1.8% 4.7% 3.1% -0.7% 2.0% 1.2% 1.3% 0.4% 0.6% -0.1% 2.1% 2.7% 3.4% 1.3% 2.1% 0.3% -0.9%

Source: NMPF and USDA / ERS: Livestock, Dairy, and Poultry Situation and Outlook Excludes commercial exports beginning 1995. 1/ Excludes whey values

25

531.8 519.2 519.7 538.3 569.7 560.6 565.2 574.0 557.3 559.0 566.4 553.3 558.3 574.3 581.1 576.5 577.3 585.0 579.4

8.8% -0.4% -1.7% 1.6% 0.0% -2.3% 0.9% 2.1% -2.7% 0.3% 1.3% -2.3% 0.9% 2.9% 1.2% -0.8% 0.1% 1.3% -1.0%

Table 28: Share of Commercial Disappearance by Product Year 1970 1975 1980 1985 1990 1995 2000 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Fluid Milk 44.6% 42.8% 39.7% 36.8% 32.6% 30.9% 27.6% 24.4% 23.7% 23.1% 22.5% 22.9% 22.3% 21.6% 20.8% 20.1% 19.4% 18.8% 18.3% 17.8% 17.0% 16.7% 16.4%

Butter 7.3% 7.5% 6.6% 6.3% 5.7% 5.1% 5.0% 4.9% 5.0% 5.2% 5.7% 5.3% 5.4% 5.9% 5.9% 6.0% 5.9% 5.6% 5.6% 5.6% 5.8% 5.9% 6.0%

Cheese 1/ 10.9% 13.8% 16.4% 18.7% 21.4% 20.8% 22.6% 22.8% 23.2% 23.5% 23.1% 23.5% 23.8% 23.9% 23.9% 24.1% 24.6% 24.6% 24.9% 25.5% 25.6% 25.8% 25.3%

Frozen Products 11.5% 11.8% 11.0% 11.2% 10.2% 10.1% 9.9% 8.7% 8.7% 8.5% 8.1% 8.1% 8.0% 7.7% 7.7% 7.4% 7.2% 7.3% 7.2% 7.0% 5.7% 5.7% 5.4%

Nonfat Dry Milk 2/ 6.2% 4.2% 3.1% 2.3% 3.3% 4.7% 3.6% 6.8% 6.2% 5.8% 7.0% 6.6% 7.3% 7.4% 8.1% 8.1% 8.1% 8.3% 8.0% 7.9% 8.1% 8.3% 8.8%

Other Products 23.8% 24.2% 27.3% 28.7% 30.6% 28.3% 31.2% 32.4% 33.3% 33.9% 33.4% 33.6% 33.1% 33.5% 33.7% 34.3% 34.9% 35.3% 36.0% 36.3% 37.7% 37.7% 38.1%

Source: NMPF; Shares are based on a milk equivalent, total solids basis.

Includes commercial exports; 1/ Excludes whey values; 2/ Includes skim milk powder

Figure 15: Share of Commercial Disappearance by Product

1980 Fluid Milk 40%

Other Products 27%

Nonfat Dry Milk 3% Butter 7%

Frozen Products 11%

Cheese 16%

2020 Fluid Milk 16%

Other Products 38%

Nonfat Dry Milk 9%

Butter 6%

Frozen Products 5%

26

Cheese 25%

Table 29: Fluid Milk Sales for Beverage Products Year

Plain Whole

1970 1975 1980 1985 1990 1995 2000 2005 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

41,363 36,188 31,253 27,760 21,333 18,662 18,696 16,919 14,412 14,042 13,854 13,784 13,848 14,450 15,241 15,621 15,901 16,119 16,649

Flavored Whole

Plain Lowfat

Plain Skim

Flavored Total Beverage Lowfat/Skim Buttermilk Milk

Million Pounds

1,144 1,366 1,075 882 691 704 925 743 551 520 519 567 534 572 613 656 708 780 765

6,082 11,468 15,918 19,812 24,509 24,202 23,697 24,286 26,598 26,612 26,460 25,982 25,218 24,478 23,862 22,907 22,110 21,348 21,643

2,368 2,480 2,636 3,009 5,702 8,359 8,348 8,028 8,385 8,216 7,740 7,093 6,318 5,635 5,014 4,410 3,966 3,542 3,068

611 719 1,197 1,430 1,657 1,914 2,736 3,655 3,981 3,898 3,853 3,825 3,781 3,827 3,915 3,978 3,830 3,745 2,876

1,130 1,011 927 1,046 879 739 623 522 454 471 477 496 486 514 512 501 478 445 420

52,698 53,308 53,101 54,060 54,894 54,692 55,240 54,544 54,870 53,938 53,083 51,923 50,368 49,648 49,349 48,269 47,235 46,407 46,356

Source: USDA / ERS: Livestock, Dairy, and Poultry Situation & Outlook Total includes miscellaneous fluid milk products, beginning 2003.

Table 30: Per Capita Fluid Milk Sales: Selected Products Year 1970 1975 1980 1985 1990 1995 2000 2005 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Whole Milk Lowfat/Skim Milk (Pounds) (Gallons) (Pounds) (Gallons) 208.4 24.2 44.4 5.1 174.3 20.2 68.1 7.9 142.3 16.5 86.9 10.1 120.4 14.0 101.9 11.8 88.2 10.2 127.7 14.8 72.7 8.4 129.5 15.0 69.5 8.1 123.3 14.3 59.8 6.9 121.7 14.1 48.4 5.6 126.0 14.6 46.7 5.4 124.3 14.4 45.8 5.3 121.2 14.0 45.4 5.3 116.7 13.5 45.2 5.2 110.9 12.9 46.8 5.4 105.8 12.3 49.1 50.1 50.8 51.2 52.5

5.7 5.8 5.9 5.9 6.1

101.5 96.2 91.4 86.7 83.2

27

11.8 11.2 10.6 10.0 9.6

Total Beverage Milk (Pounds) (Gallons) 258.3 29.9 247.4 28.7 233.7 27.1 227.2 26.3 219.9 25.5 205.4 23.8 195.8 22.7 184.6 21.4 177.4 20.6 173.1 20.1 169.1 19.6 164.3 19.0 158.2 18.3 154.8 17.9 152.8 148.5 144.4 140.5 139.9

17.7 17.2 16.7 16.3 16.2

Table 31: Fluid Milk Sales for Cream/Other Products Half & Half

Year 1970 1975 1980 1985 1990 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Light Cream

Heavy Cream

76 87 55 85 88 95 105 119 134 168

111 119 159 243 324 402 450 504 515 555 743 797

591 514 551 714 739 831 876 883 895 960 1,008 1,146

1,860 2,151 2,313 2,352 2,459 2,475 2,530 2,660 2,755 2,835 2,910 2,900 2,965 3,025 3,155 3,190 3,175 NA NA

Sour Cream/Dip Eggnog (Million Pounds) 222 61 350 76 408 95 544 121 625 123 767 112 762 103 794 102 817 102 841 109 914 127 990 125 1,031 150 935 153 987 147 1,034 147 1,121 151 1,135 141 1,151 143 1,195 142 1,228 141 1,255 141 1,281 134 1,281 133 1,303 132 1,326 126 1,374 134 1,387 146 1,401 124 1,426 121 1,427 132

Yogurt

Total Cream & Beverage

169 425 570 940 974 1,636 1,582 1,568 1,636 1,712 1,835 2,003 2,312 2,510 2,708 3,064 3,309 3,489 3,573 3,830 4,163 4,257 4,409 4,726 4,735 4,621 4,444 4,471 4,448 4,389 4,535

53,928 54,803 54,844 56,586 57,644 58,423 58,906 58,752 58,615 59,252 60,031 59,994 60,433 60,592 60,702 61,476 62,010 62,020 61,973 62,677 63,289 62,785 62,179 61,328 59,908 59,141 58,820 57,846 56,779 NA NA

Per Capita (Pounds) 264.4 254.3 241.4 237.8 230.9 219.4 218.7 215.5 212.5 212.3 212.8 210.5 210.1 208.9 207.3 208.0 207.8 205.9 203.8 204.3 204.6 201.5 198.0 193.9 188.0 184.2 181.9 177.6 172.4 NA NA

Source: USDA / ERS: Livestock, Dairy, and Poultry Situation and Outlook and NMPF Note: Light and heavy cream no longer separated, beginning 2000. Cream and half and half no longer separated, beginning 2002. Total includes miscellaneous fluid milk products, beginning 2003.

Figure 16: Per Capita Sales of Fluid Milk 30

Gallons of Milk

25 20 15 10 5 0 1970

1975

1980

1985

1990

Total Beverage Milk

1995

2000

2005

Lowfat/Skim Milk

28

2010

2015

Whole Milk

2020

Table 32: Cheese Production, Selected Varieties Year

American Cheddar Other

Total

Mozzarella

Italian Other

Total

Swiss

All Other

Total Cheese

394 672 983 1,491 2,207 2,674 3,289 3,803 3,973 4,199 4,121 4,181 4,416 4,585 4,633 4,735 4,950 5,082 5,304 5,395 5,570 5,671 5,625

144 174 219 223 261 222 220 300 314 314 294 322 336 329 321 294 298 312 312 317 332 338 325

240 311 407 512 697 889 1,107 1,238 1,325 1,387 1,389 1,369 1,402 1,454 1,578 1,652 1,676 1,743 1,796 1,856 1,882 1,896 1,966

2,201 2,811 3,984 5,081 6,059 6,917 8,258 9,149 9,525 9,777 9,913 10,074 10,443 10,595 10,886 11,102 11,512 11,831 12,182 12,640 13,037 13,137 13,253

(Million Pounds)

1970 1975 1980 1985 1990 1995 2000 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

1,182 1,205 1,751 2,292 2,380 2,415 2,819 3,046 3,124 3,057 3,186 3,205 3,235 3,096 3,143 3,190 3,317 3,393 3,434 3,721 3,802 3,737 3,828

241 450 625 564 514 716 823 762 789 821 922 997 1,054 1,130 1,212 1,230 1,271 1,301 1,334 1,351 1,452 1,495 1,509

1,423 1,655 2,376 2,855 2,894 3,131 3,642 3,808 3,913 3,877 4,109 4,203 4,289 4,227 4,355 4,420 4,588 4,694 4,769 5,072 5,254 5,232 5,338

n/a 458 689 1,104 1,730 2,125 2,635 3,019 3,144 3,330 3,223 3,268 3,479 3,574 3,615 3,700 3,925 3,989 4,118 4,167 4,366 4,495 4,451

n/a 214 294 387 477 550 654 784 828 869 898 913 936 1,011 1,018 1,035 1,025 1,093 1,187 1,228 1,203 1,176 1,175

Source: USDA / NASS: Dairy Products

Table 33: Per Capita Cheese Consumption, Selected Varieties Year

American Cheddar Total

Italian Mozzarella Total

Swiss

All Others

Total Consumed As: Cheese Processed Natural

(Pounds)

1970 5.79 7.00 1.19 2.05 0.88 1.44 11.37 1975 6.04 8.15 2.11 3.23 1.09 1.80 14.27 1980 6.84 9.62 3.01 4.42 1.32 2.16 17.52 1985 9.77 12.19 4.60 6.41 1.28 2.66 22.54 1990 9.05 11.13 6.88 8.92 1.35 3.21 24.61 1995 9.04 11.69 7.89 10.03 1.09 4.13 26.94 2000 9.88 12.70 9.06 11.42 1.02 4.68 29.82 2005 10.16 12.66 9.93 12.66 1.24 5.04 31.60 2006 10.43 13.07 10.11 12.93 1.23 5.20 32.43 2007 10.11 12.79 10.66 13.58 1.24 5.33 32.94 2008 10.22 13.13 10.10 13.06 1.10 5.10 32.39 2009 10.24 13.36 10.08 13.03 1.16 4.93 32.48 2010 10.06 13.30 10.58 13.54 1.18 4.90 32.92 2011 9.59 13.04 10.83 13.98 1.14 5.08 33.24 2012 9.59 13.26 10.69 13.80 1.09 5.37 33.52 2013 9.65 13.35 10.74 13.83 1.00 5.50 33.68 2014 9.86 13.66 11.17 14.20 1.02 5.55 34.43 2015 10.18 14.04 11.28 14.48 1.05 5.81 35.38 2016 10.40 14.36 11.74 15.23 1.06 6.05 36.70 2017 11.09 15.09 11.61 15.12 1.05 5.99 37.25 2018 11.21 15.40 12.21 15.70 1.08 6.05 38.23 2019 11.16 15.54 12.48 15.87 1.12 6.05 38.58 2020 11.20 15.55 12.29 15.64 1.05 6.11 38.35 Source: USDA / ERS: Livestock, Dairy, and Poultry Situation and Outlook Tables and NMPF

29

4.42 5.18 5.52 6.06 6.81 7.01 6.47 5.97 6.06 5.88 5.62 5.49 5.20 5.29 5.23 5.06 5.91 5.86 5.61 5.73 5.73 5.75 5.64

6.95 9.10 12.01 16.48 17.80 19.93 23.35 25.63 26.37 27.06 26.77 26.99 27.72 27.95 28.29 28.62 28.52 29.52 31.09 31.51 32.50 32.83 32.71

Table 34: Production of Butter, NFDM, & Other Products Year

Butter

1970 1975 1980 1985 1990 1995 2000 2005 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

1,137 984 1,145 1,248 1,302 1,264 1,256 1,347 1,564 1,810 1,860 1,863 1,855 1,850 1,839 1,847 1,968 1,994 2,145

NFDM & SMP 1,444 1,001 1,161 1,390 879 1,233 1,452 1,533 1,816 1,945 2,145 2,109 2,308 2,269 2,312 2,365 2,338 2,424 2,686

Dry Whole Milk 68.9 63.1 82.7 118.9 175.1 171.3 111.4 32.4 71.1 65.8 58.1 72.1 103.1 108.5 98.2 122.4 144.1 141.0 138.1

Milk Whey Dry Protein Dry Protein Cottage Buttermilk Concentrate Whey Concentrate Cheese 1/ (Million Pounds) 59.5 n/a 621 n/a 726 42.8 n/a 596 n/a 701 43.9 n/a 690 n/a 667 51.5 n/a 987 105 599 55.9 n/a 1,143 168 493 54.8 n/a 1,147 294 459 56.2 n/a 1,188 334 461 66.5 n/a 1,041 384 469 82.0 88.6 1,013 428 433 100.1 94.5 1,010 431 424 109.1 102.3 999 459 424 119.3 101.7 953 498 389 111.1 126.0 870 540 381 98.4 157.3 978 493 401 109.6 125.7 955 468 406 112.9 139.0 1,035 489 390 118.1 147.3 999 514 402 118.3 161.8 978 491 391 126.8 206.3 951 478 379

Source: USDA / ERS: Dairy Products. 1/ Cottage cheese curd production.

Table 35: Per Capita Consumption of Butter, Cottage Cheese, NFDM, & Other Products

Year

Butter

NFDM & SMP

1970 1975 1980 1985 1990 1995 2000 2005 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

5.3 4.7 4.5 4.9 4.3 4.6 4.5 4.5 4.9 5.4 5.5 5.5 5.5 5.6 5.7 5.7 6.0 6.2 6.3

5.3 3.3 3.0 2.3 2.9 3.4 2.7 4.2 3.2 3.0 3.6 2.9 3.1 3.3 3.0 2.8 2.4 2.7 2.6

Dry Whole Milk 0.2 0.1 0.3 0.4 0.6 0.4 0.3 0.2 0.2 0.2 0.2 0.2 0.2 0.3 0.3 0.3 0.4 0.3 0.3

Dry Buttermilk

Dry Whey & WPC

Cottage Cheese

0.9 2.2 2.7 3.5 3.7 4.2 3.8 2.9 1.9 2.0 2.2 2.2 2.2 2.7 2.4 2.2 2.4 2.8 2.0

5.2 4.6 4.4 4.0 3.3 2.7 2.6 2.7 2.3 2.3 2.3 2.1 2.1 2.1 2.2 2.1 2.1 2.1 2.0

(Pounds)

0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.3 0.2 0.2 0.2 0.2 0.2 0.2 0.2

Source: USDA / ERS: Livestock, Dairy, and Poultry Situation and Outlook and NMPF.

30

Table 36: Production of Frozen Dairy Products Year

Ice Cream Lowfat (Regular) Ice Cream

Nonfat Ice Cream

Sherbet

Frozen Yogurt

Other 1

Total Frozen Dairy

Million Gallons

1970 1975 1980 1985 1990 1995 2000 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

762 837 830 901 824 862 980 960 982 956 931 918 929 888 894 897 866 897 907 871 852 879 914

287 299 293 301 352 357 373 360 377 382 384 400 415 415 457 401 412 439 436 461 460 474 482

n/a n/a n/a n/a n/a 43.9 30.7 20.8 16.2 14.4 15.4 16.8 16.0 17.2 17.2 14.2 18.3 13.6 12.4 11.4 11.4 9.9 9.5

48.9 48.5 45.2 48.2 50.3 53.5 51.9 56.4 59.2 62.7 57.7 53.3 49.3 45.4 43.6 46.1 48.4 44.7 44.3 43.0 38.3 44.4 37.6

n/a n/a n/a n/a 117.6 152.1 94.5 66.1 66.0 74.7 78.6 46.0 50.1 62.7 57.6 74.5 66.5 74.2 66.8 62.9 55.1 56.9 35.5

6.7 11.1 10.3 51.4 32.4 19.1 11.6 7.8 11.4 12.3 14.3 15.2 12.2 12.3 12.3 12.2 12.9 14.2 14.6 22.6 22.7 19.6 14.6

1,104 1,195 1,179 1,302 1,376 1,488 1,542 1,471 1,511 1,502 1,481 1,449 1,472 1,441 1,482 1,445 1,423 1,482 1,481 1,472 1,440 1,484 1,493

Source: USDA / NASS: Dairy Products . 1/ Excludes mellorine-based frozen desserts. Includes frozen yogurt prior to 1989 and nonfat ice cream prior to 1995.

Table 37: Per Capita Consumption of Frozen Dairy Products, Year 1970 1975 1980 1985 1990 1995 2000 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Regular Ice Cream Reduced Fat Ice Cream Lbs. Change Lbs. Change 17.6 -0.6% 7.8 0.0% 18.2 4.6% 7.7 0.0% 17.1 1.1% 7.1 -2.7% 17.8 -0.1% 6.9 -1.4% 15.5 -2.0% 6.3 -24.6% 15.0 -2.8% 7.0 10.4% 16.1 -0.5% 6.6 -5.2% 15.1 3.3% 6.0 -7.9% 15.3 1.4% 6.1 2.1% 14.8 -3.6% 6.1 -0.1% 14.2 -3.6% 6.1 -0.2% 13.9 -2.2% 6.3 3.4% 14.0 0.2% 6.5 2.6% 13.2 -5.3% 6.4 -0.7% 13.2 -0.3% 7.0 8.6% 13.0 -0.9% 6.0 -13.6% 12.5 -4.4% 6.2 2.7% 12.9 3.1% 6.5 4.8% 12.9 0.5% 6.4 -1.6% 12.3 -4.7% 6.7 4.6% 12.0 -2.9% 6.6 -1.0% 12.3 2.8% 6.8 2.2% 12.7 3.6% 6.9 1.4%

Sherbet Lbs. Change 1.6 0.0% 1.3 -10.1% 1.2 -1.0% 1.2 0.6% 1.2 -5.6% 1.2 -1.9% 1.1 -5.8% 1.1 1.6% 1.2 4.4% 1.2 4.8% 1.1 -8.9% 1.0 -8.6% 1.0 -8.0% 0.9 -7.8% 0.8 -4.5% 0.9 4.7% 0.9 3.7% 0.8 -9.2% 0.8 -0.9% 0.8 -3.3% 0.7 -11.4% 0.8 15.7% 0.7 -14.2%

Source: USDA / ERS: Livestock, Dairy, and Poultry Situation and Outlook and NMPF

31

Other Lbs. 1.4 1.8 1.3 2.7 5.0 5.7 3.7 2.9 3.0 3.1 3.1 2.5 2.6 2.8 2.8 3.0 2.9 3.1 2.8 2.9 2.8 2.8 2.3

Table 38: Cheese, Butter, & NFDM Production, by State, 2020 State WI CA ID NM NY MN SD PA IA OH OR VT IL NJ Reported States Other States Total

Cheese Mil. lbs.

3,390 2,435 1,014 962 870 742 450 436 355 245 229 147 62 61

11,399

1,854 13,253

Share

Butter Mil. lbs.

State

25.6% CA 18.4% PA 7.7% NY 7.3% 6.6% 5.6% 3.4% 3.3% 2.7% 1.8% 1.7% 1.1% 0.5% 0.5% Reported 86.0% States

14.0%

Other States

100.0% Total

Share

Nonfat Dry Milk (food) 1/ State Mil. lbs.

Share

668 97 24

31.1% CA 4.5% PA 1.1%

789

Reported 36.8% States

1,356 2,145

63.2%

Other States

100.0% Total

771 184

38.7% 9.3%

955

48.0%

1,036

52.0%

1,991

100.0%

Source: USDA / NASS: Dairy Products Note: Some states with large production are not reported to avoid violating confidentiality.

1/ Does not include 695 million lbs. of protein-standardized skim milk powders or 18 million lb. of dry skim milk produced for animal feed uses.

Figure 17: Production Share of Manufactured Products by Region, 2020 Cheese

West 41.1%

Butter Central 46.5%

Atlantic 12.4%

NFDM

West 60.4% Central 38.9%

Central 22.1%

West 51.9%

Atlantic 17.5%

32

Atlantic 9.3%

Table 39: Plants Processing Dairy Products & Volume Per Plant, Selected Years

Product Butter Total Cheese American Cheese Cheddar Italian Cheese Mozzarella Swiss Cheese Cottage Cheese /1 Cream/Neufchatel Cheese Processed Cheese Sour Cream Yogurt /2 Evap/Condensed Milk /3 Ice Cream /4 Frozen Yogurt /5 Sherbet /6 Nonfat Dry Milk /7 Skim Milk Powder /8 Whole Milk Powder /9 Milk protein concentrate /10 Dry Buttermilk Dry Whey /11 Whey protein conc. /12 Whey protein isolate /13 Lactose Fluid Milk

1990

Processing Plants 2000 2010

152 516 298 250 179 151 55 170 38 31 n/a 155 14 713 n/a n/a 76 n/a 19 n/a 47 54 23 n/a 23 605

(Number of Plants) 77 76 402 515 197 211 174 197 153 176 121 121 37 54 95 67 35 32 30 26 n/a 116 80 120 7 6 413 393 145 85 246 177 46 49 n/a 10 16 13 n/a 9 21 26 46 31 28 41 n/a 13 27 31 405 404

Average Output Per Plant 1990 2000 2010

2020 103 543 254 236 199 124 64 52 29 29 102 156 7 401 76 130 55 18 13 13 22 27 50 17 29 453

8,567 11,743 9,712 9,519 12,330 11,459 4,747 2,903 11,337 38,474 n/a 6,339 43,046 1,087 n/a n/a 11,569 n/a 9,217 n/a 1,188 17,648 6,099 n/a 8,373 93,868

(Thousand Pounds) 16,312 20,579 20,542 20,278 18,485 20,329 16,201 16,421 21,496 25,089 21,777 28,756 5,958 6,231 4,852 6,461 19,641 23,277 46,276 44,101 n/a 10,586 22,957 34,839 63,141 83,778 2,136 2,083 190 229 201 263 31,560 31,888 n/a 25,380 6,961 5,466 n/a 9,846 2,678 3,155 24,023 30,990 10,374 9,591 n/a 4,717 18,150 29,304 143,170 135,818

Source: USDA/NASS, Dairy Products Annual Summary; USDA/ERS. /1 Cottage cheese, curd. /2 Yogurt, plain and flavored (non-frozen). /3 Canned evaporated and condensed whole milk. /4 Thousand Gallons, Hard regular ice cream. /5 Thousand Gallons, Hard regular and lowfat frozen yogurt. /6 Thousand Gallons, Hard sherbet. /7 Nonfat dry milk for food use, excludes protein-standardized skim milk powders. /8 Dry skim powders. /9 Dry whole milk. /10 40% or more protein by weight. /11 Dry whey for human consumption. /12 Whey protein concentrate for human consumption. /13 90% or more protein by weight.

33

2020

20,829 24,408 21,014 16,221 28,267 35,892 5,077 7,288 34,876 58,069 14,323 28,964 77,886 1,892 203 258 36,199 38,624 10,624 15,870 5,764 34,527 9,394 6,882 38,027 102,331 .

Table 40: CCC Net Outlays by Commodity, Fiscal Year Commodity Program

2010 2005 Million Dollars 6,243 1,965 376 182 189 79 3 2 2 (2) 6,813 2,226

2015

2017

2018

2019

2020 1/

n/a n/a n/a n/a n/a 247

n/a n/a n/a n/a n/a 4,593

n/a n/a n/a n/a n/a 3,460

n/a n/a n/a n/a n/a 970

n/a n/a n/a n/a n/a 736

143 18 1,013

1,106 542 (1)

1,957 828 295

1,049 495 70

470 635 118

0 245 225 676

0 319 270 300

0 209 184 297

0 1 0

0 0 0

0 2 0

243 1,886 522

231 1,955 863

236 1,902 16,036

196 1,854 12,452

10,854

10,858

21,647

17,153

1985

1990

1995

2000

Corn Grain Sorghum Barley Oats Corn/Oats Total Feed Grains

4,403 463 336 2 7 5,211

2,435 349 (94) (5) 8 2,693

2,090 153 129 19 1 2,392

10,136 979 397 61 6 11,579

Wheat Rice Upland Cotton

4,691 990 1,553

796 667 (79)

803 814 99

5,321 1,774 3,809

1,232 473 4,245

Tobacco Dairy Soybeans Peanuts

455 2,085 711 12

(307) 505 5 1

(298) 4 77 120

657 684 2,840 35

(411) 40 1,140 408

21 355 550 103

(225) (66) 30 74

184 81 109

15 47 104

(3) (9) 108

(86) 8 7

0 0 8

0 0 n/a

134 0 (314)

(34) 0 808

(1,443) 1,851 5,829

405 1,919 960

230 1,741 3,764

10,015

6,969

Sugar Honey Wool & Mohair Export Programs Conservation Programs Other Grand Total:

17,683

6,471

465 7 (2)

1,361 0 557

216 1,774 2,310

6,030

32,265

20,187

1,280 535 1,668

0 0 1,125 545 83 (4) 0

Source: USDA/ERS, Agricultural Outlook Tables ; USDA Budget Summary annual publications.

1/ Does not include 8,500 million dollars in Coronavirus Food Assistance Program (CFAP) payments during Fiscal Year 2020. CFAP payments were not CCC outlays but supplemental funding under the Office of the Secretary of Agriculture. Dairy's share of the 30,561 million dollars of total CFAP payments during fiscal years 2020 and 2021 was 3,027 million dollars, or 9.9 percent of the total.

Figure 18: Dairy's Share Of Total CCC Outlays 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% -5% 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020

34

Figure 19: Share of U.S. Dairy Exports by Destination, 2020 Share, all products Milk Equivalent, total solids basis China, 15%

Philippines, 8% Indonesia, 7%

Mexico, 21% Japan, 5% Canada, 4% Vietnam, 4% New Zealand, 4% South Korea, 4% Malaysia, 3%

All Other, 18%

Colombia, 2%

Singapore, 2%

Thailand, 2%

Source: USDA/FAS, NMPF

Table 41: U.S. Fresh Milk & Cream Exports Importing Region/Country

2016

Volume 2018

2017

2019

2020

(Metric Tons)

Share 2020 (Percent)

Value 2020 $1,000

FRESH MILK & CREAM (HTS 0401)

North America

74,069

59,950

59,348

68,798

65,146

52.1%

$55,350

Canada Mexico

38,150 35,516

22,670 37,126

22,177 37,034

31,683 36,946

37,656 27,338

30.1% 21.9%

$36,076 $18,602

Caribbean

10,511

5,016

9,088

6,454

4,192

3.4%

$7,722

7,356 1,250 593

2,278 1,167 180

6,197 1,342 405

3,163 1,267 745

1,361 1,398 550

1.1% 1.1% 0.4%

$3,656 $1,793 $1,010

211 1,355 8 4 0 110 0 10 7 3,505

418 3,826 58 0 0 446 178 31 152 1,904

257 302 65 0 0 943 0 1 81 2,225

208 1,013 33 3 0 119 0 31 29 2,014

279 222 66 0 0 10 74 12 6 2,157

0.2% 0.2% 0.1% 0.0% 0.0% 0.0% 0.1% 0.0% 0.0% 1.7%

$490 $427 $96 $0 $0 $21 $96 $26 $6 $2,996

Dominican Republic Bahamas Cayman Islands

Central America South America European Union-27 Other Europe Russia/Central Asia Middle East North Africa Subsaharan Africa South Asia Southeast Asia

425

548

409

548

1,204

1.0%

$1,692

East Asia

Singapore

24,047

30,210

39,163

47,962

52,728

42.2%

$54,559

Taiwan

21,659

27,911

36,536

45,377

51,188

40.9%

$51,931

246 254 0 0 111,722 126,917

190 0 125,085

0.2% 0.0% 100.0%

$455 $0 $122,243

Oceania Other World

281 279 0 0 114,118 102,468

Source: USDA/FAS

35

Table 42: U.S. Butter & Cheese Exports Importing Region/Country

2016

2017

Volume 2018

2019

2020

(Metric Tons)

Share 2020 (Percent)

Value 2020 $1,000

BUTTER AND OTHER FATS (HTS 0405)

North America Canada Mexico

Caribbean Central America South America European Union-27 Other Europe Russia/Central Asia Middle East Saudi Arabia Bahrain United Arab Emirates

North Africa Subsaharan Africa South Asia Southeast Asia East Asia South Korea Taiwan China Japan

Oceania Other World Importing Region/Country

18,448

15,510

30,143

13,391

12,891

49.3%

$50,808

8,886 9,410

11,109 4,266

13,877 16,126

9,352 3,977

9,210 3,643

35.2% 13.9%

$39,714 $10,966

949 691 319 135 27 0 2,208

1,362 840 1,521 1,286 10 9 2,894

2,463 2,560 594 2,139 18 0 3,372

1,310 1,063 1,747 87 10 0 2,214

1,051 738 484 299 1 0 6,282

4.0% 2.8% 1.9% 1.1% 0.0% 0.0% 24.0%

$3,494 $2,363 $1,206 $741 $6 $0 $23,654

1,830 95 221

1,821 416 598

2,343 459 271

1,588 259 187

3,930 1,714 364

15.0% 6.5% 1.4%

$14,791 $6,662 $1,394

404 1 9 66 1,719

2,062 9 46 261 3,037

477 3 100 361 2,835

0 10 25 186 4,437

87 10 33 253 4,004

0.3% 0.0% 0.1% 1.0% 15.3%

$236 $36 $50 $737 $15,383

706 495 388 15

1,710 638 396 210

1,088 836 47 794

2,229 776 254 1,100

1,824 958 560 528

7.0% 3.7% 2.1% 2.0%

$7,118 $3,280 $2,632 $1,827

70 0 25,047

156 0 29,002

95 0 45,157

252 0 24,731

38 0 26,170

0.1% 0.0% 100.0%

$143 $0 $98,860

2016

2017

Volume 2018

2019

2020

Share 2020

Value 2020

(Metric Tons)

(Percent)

$1,000

CHEESE (HTS 0406)

North America

103,761

108,782

105,252

105,015

104,275

29.3%

$500,882

Mexico Canada

89,982 13,289

96,420 11,789

96,857 7,757

95,648 8,760

92,899 10,766

26.1% 3.0%

$428,048 $68,983

Caribbean

13,920

15,046

16,606

18,660

15,381

4.3%

$81,472

6,306

6,449

6,889

8,202

7,208

2.0%

$36,534

17,961 15,120

20,645 15,836

24,105 18,239

27,013 19,541

23,023 17,529

6.5% 4.9%

$116,733 $77,998

8,652

9,092

10,855

11,018

11,022

3.1%

$43,293

1,227 281 45 14,672 1,548 123 110 10,806

758 257 48 19,199 1,758 190 155 16,545

1,126 253 15 21,282 2,758 256 145 18,726

791 240 20 23,489 1,565 165 115 21,923

1,142 141 8 15,521 599 72 50 24,716

0.3% 0.0% 0.0% 4.4% 0.2% 0.0% 0.0% 7.0%

$5,472 $808 $56 $69,922 $3,320 $302 $248 $102,021

Dominican Republic

Central America South America Chile

European Union-27 Other Europe Russia/Central Asia Middle East North Africa Subsaharan Africa South Asia Southeast Asia Indonesia

East Asia South Korea Japan Taiwan China

Oceania Australia

Other World

2,469

5,284

5,016

6,926

8,543

2.4%

$33,561

89,182

108,671

111,517

113,790

125,312

35.3%

$522,155

42,389 27,799 7,372 9,759

52,097 32,384 8,023 14,048

55,809 33,081 8,469 12,349

60,622 35,189 8,189 7,770

70,166 37,001 8,521 7,654

19.7% 10.4% 2.4% 2.2%

$269,292 $162,549 $40,834 $37,950

17,473

32,601

27,226

24,189

27,639

7.8%

$109,029

15,499

30,196

24,612

21,054

24,140

6.8%

$95,472

0 286,228

0 340,489

0 347,505

0 356,515

2 355,408

0.0% 100.0%

$13 $1,590,429

Source: USDA/FAS

36

Table 43: U.S. Milk Powder Exports Importing Region/Country

2016

2017

Volume 2018

2019

2020

(Metric Tons)

Share 2020 (Percent)

Value 2020 $1,000

NONFAT DRY MILK/SKIM MILK POWDER, less than 1.5% fat (HTS 0402.10)

North America Mexico

Caribbean Central America South America Colombia Peru Chile

European Union-27 Other Europe Russia/Central Asia Middle East North Africa Egypt

277,956

280,001

351,148

332,802

289,876

35.8%

$714,276

273,992

276,309

346,686

329,298

287,099

35.4%

$707,710

7,058 4,165 35,842

6,892 9,534 39,372

6,462 16,009 37,337

7,217 12,528 52,421

9,637 16,733 57,708

1.2% 2.1% 7.1%

$24,913 $40,744 $141,446

11,669 10,033 7,394

8,854 15,676 11,277

10,716 14,068 11,042

24,488 14,211 12,019

28,828 15,780 10,759

3.6% 1.9% 1.3%

$69,974 $39,965 $24,889

97 55 134 3,915 8,663

297 842 1,742 4,835 8,236

972 29 1,010 5,060 4,802

1,122 47 3,212 5,653 6,603

948 285 2,763 8,854 27,053

0.1% 0.0% 0.3% 1.1% 3.3%

$2,752 $817 $6,948 $23,591 $65,021

6,410

4,632

2,278

5,575

19,824

2.4%

$48,384

2,710 28,819 196,154

3,048 28,244 163,629

3,366 24,196 215,389

4,149 18,827 227,513

5,320 14,555 325,121

0.7% 1.8% 40.1%

$12,150 $35,073 $815,860

82,048 53,860 27,869 25,485

73,328 31,977 21,800 27,717

85,353 55,684 35,506 31,252

70,649 67,283 54,209 25,292

115,670 97,383 52,453 41,081

14.3% 12.0% 6.5% 5.1%

$282,903 $246,071 $131,996 $109,114

East Asia

28,379

56,453

37,942

22,094

43,015

5.3%

$99,462

China

18,278

34,774

21,131

9,050

26,681

3.3%

$60,540

Oceania Other World

100 0 594,046

2,878 0 606,002

8,287 0 712,007

6,722 0 700,910

8,306 0 810,173

1.0% 0.0% 100.0%

$22,182 $0 $2,005,237

2016

2017

Volume 2018

2019

2020

Share 2020

Value 2020

Subsaharan Africa South Asia Southeast Asia Philippines Indonesia Vietnam Malaysia

Importing Region/Country

(Metric Tons)

(Percent)

$1,000

WHOLE MILK POWDER, more than 1.5% fat (HTS 0402.21 & 0402.29)

North America Mexico Canada

Caribbean Dominican Republic

Central America Panama

South America Peru Colombia

European Union-27 Other Europe Russia/Central Asia Middle East Saudi Arabia

North Africa Algeria

Subsaharan Africa South Asia Southeast Asia Singapore

13,359

8,150

8,960

5,514

4,820

12.5%

$12,584

10,598 2,761

5,787 2,356

7,236 1,707

3,588 1,903

2,871 1,917

7.4% 5.0%

$7,867 $4,623

252

561

951

524

2,246

5.8%

$6,656

17

248

755

132

1,976

5.1%

$6,119

937

439

1,199

1,284

1,731

4.5%

$4,924

344

264

325

372

1,046

2.7%

$2,784

11,157

2,075

3,991

14,750

15,192

39.4%

$46,929

38 10,665

117 1,733

433 2,837

5,198 8,708

11,416 2,968

29.6% 7.7%

$36,185 $8,471

81 2 228 222

82 37 0 72

67 32 58 510

6 7 0 3,932

11 78 0 3,209

0.0% 0.2% 0.0% 8.3%

$10 $252 $0 $10,051

31

9

372

1,487

1,477

3.8%

$4,732

490

234

365

4,382

2,490

6.5%

$7,851

0

98

325

4,382

2,273

5.9%

$7,223

0 0 1,042

14 11 5,239

0 73 19,741

875 1,422 3,148

463 1 3,131

1.2% 0.0% 8.1%

$606 $5 $9,384

2

28

5,958

1,359

957

2.5%

$2,105

East Asia

3,421

9,873

10,811

2,714

4,589

11.9%

$13,771

China

2,300

9,281

10,321

1,765

4,184

10.9%

$12,571

Oceania Other World

166 0 31,357

453 0 27,239

1,286 0 48,045

677 0 39,235

575 0 38,536

1.5% 0.0% 100.0%

$1,841 $0 $114,862

Source: USDA/FAS

37

Table 44: U.S. Ice Cream & Yogurt Exports Importing Region/Country

2016

2017

Volume 2018

2019

2020

(Metric Tons)

Share 2020 (Percent)

Value 2020 $1,000

ICE CREAM (HTS 2105)

North America Mexico Canada

Caribbean Central America South America Chile

European Union-27 Other Europe United Kingdom

Russia/Central Asia Middle East Saudi Arabia United Arab Emirates Qatar

North Africa Subsaharan Africa South Asia Southeast Asia Malaysia Singapore Philippines

East Asia South Korea Taiwan

Oceania Australia

Other World Importing Region/Country

25,844

24,614

25,325

28,719

28,245

39.1%

$81,239

22,318 2,814

19,804 4,109

18,073 6,621

22,690 5,480

22,536 5,104

31.2% 7.1%

$57,403 $21,771

5,578 1,274 2,563

6,762 1,299 3,067

7,102 1,043 3,471

5,928 1,271 3,294

4,941 1,225 3,057

6.8% 1.7% 4.2%

$17,003 $4,216 $10,217

933

1,444

1,298

1,442

1,705

2.4%

$5,262

1,632 527

2,121 877

1,938 4,996

2,538 1,638

717 2,112

1.0% 2.9%

$2,717 $9,946

515

866

4,993

1,638

2,077

2.9%

$9,840

120 13,305

113 13,296

164 12,847

117 12,260

164 11,877

0.2% 16.4%

$611 $48,854

6,535 4,200 799

6,114 3,917 991

6,267 3,449 980

5,736 3,017 1,029

5,732 2,833 1,131

7.9% 3.9% 1.6%

$23,688 $11,109 $5,147

113 768 67 4,821

146 416 60 4,732

158 992 292 4,726

93 701 259 4,510

47 832 266 4,872

0.1% 1.2% 0.4% 6.7%

$344 $1,869 $1,058 $19,578

1,790 781 1,265

1,781 801 864

1,627 894 1,213

1,940 826 883

1,729 1,464 1,005

2.4% 2.0% 1.4%

$7,098 $5,984 $3,637

4,434

4,561

3,909

4,453

4,950

6.8%

$21,357

1,228 381

1,482 541

1,389 372

2,205 325

3,251 1,056

4.5% 1.5%

$14,148 $4,685

4,869

5,936

7,774

6,522

9,002

12.4%

$33,995

4,224

5,248

7,041

5,726

7,888

10.9%

$30,357

0 65,914

0 67,997

0 74,735

0 72,303

0 72,307

0.0% 100.0%

$0 $253,004

2016

2017

Volume 2018

2019

2020

Share 2020

Value 2020

(Metric Tons)

(Percent)

$1,000

YOGURT (HTS 0403.10)

North America

3,687

6,120

5,669

6,395

4,883

34.1%

$14,205

Mexico Canada

2,590 737

4,968 796

4,519 711

4,883 1,061

3,458 892

24.1% 6.2%

$9,975 $3,018

Caribbean

5,290

4,715

4,705

4,938

4,428

30.9%

$13,032

Trinidad and Tobago 1,309 Windward and Leeward Islands 750 Netherlands Antilles 617 Bahamas 471

1,220 709 507 442

1,164 682 582 427

1,204 884 714 417

1,180 778 589 581

8.2% 5.4% 4.1% 4.0%

$3,581 $2,094 $1,926 $1,626

1,601 570 131 61 30 552 0 1 18 299 1,203

1,227 477 131 59 0 643 0 7 41 334 1,442

987 504 136 71 0 420 1 21 141 334 1,921

825 382 211 0 0 376 6 13 54 480 1,752

693 156 178 0 0 158 0 6 0 210 2,579

4.8% 1.1% 1.2% 0.0% 0.0% 1.1% 0.0% 0.0% 0.0% 1.5% 18.0%

$2,538 $454 $458 $0 $0 $441 $0 $15 $0 $682 $5,812

373 282

555 390

954 271

1,133 272

1,199 846

8.4% 5.9%

$3,078 $1,435

1,214

1,156

1,046

1,010

1,043

7.3%

$2,121

1,211

1,154

1,045

1,000

1,040

7.3%

$2,108

0 14,655

0 16,353

0 15,955

0 16,441

0 14,336

0.0% 100.0%

$0 $39,761

Central America South America European Union-27 Other Europe Russia/Central Asia Middle East North Africa Subsaharan Africa South Asia Southeast Asia East Asia Taiwan South Korea

Oceania Australia

Other World Source: USDA/FAS

38

Table 45: U.S. Whey & Lactose Exports Importing Region/Country

2016

2017

Volume 2018

2019

2020

(Metric Tons)

Share 2020 (Percent)

Value 2020 $1,000

WHEY (HTS 0404.10 & 3502.20)

North America Mexico Canada

Caribbean Central America South America European Union-27 Other Europe Russia/Central Asia Middle East North Africa Subsaharan Africa South Asia Southeast Asia Philippines Indonesia Vietnam Thailand

East Asia China Japan South Korea

Oceania New Zealand

Other World Importing Region/Country

84,803

92,471

87,590

89,442

74,415

13.4%

$152,054

41,457 43,320

49,204 43,227

53,680 33,894

59,029 30,380

38,877 35,499

7.0% 6.4%

$50,697 $101,250

1,658 8,289 10,510 7,507 2,520 112 857 3,263 2,653 2,327 100,342

1,766 9,290 14,140 7,383 2,789 206 991 2,122 3,139 4,498 86,018

2,334 11,270 15,158 8,535 478 261 889 7,341 4,541 6,863 110,050

2,359 10,091 15,629 8,433 172 351 1,109 3,077 3,125 9,416 113,793

2,148 10,492 16,223 8,868 4,299 42 1,367 3,050 3,012 7,290 121,697

0.4% 1.9% 2.9% 1.6% 0.8% 0.0% 0.2% 0.5% 0.5% 1.3% 21.9%

$5,376 $11,911 $35,572 $43,972 $20,952 $119 $4,051 $3,965 $5,280 $18,463 $167,794

26,166 20,376 23,148 10,704

32,388 14,460 12,042 10,611

36,717 18,201 22,157 11,529

37,110 24,460 15,602 13,243

30,903 30,368 24,893 13,232

5.6% 5.5% 4.5% 2.4%

$38,541 $38,816 $28,182 $17,530

254,333

294,428

267,363

154,779

270,468

48.6%

$407,689

213,489 20,290 13,105

248,082 26,394 11,290

204,077 33,612 15,888

104,073 25,611 16,339

222,566 26,816 14,644

40.0% 4.8% 2.6%

$284,067 $81,371 $29,393

24,361

28,534

24,040

35,977

33,066

5.9%

$55,209

17,861

22,105

19,455

29,390

27,793

5.0%

$32,164

0 503,534

9 547,785

0 546,711

0 447,754

0 556,435

0.0% 100.0%

$0 $932,410

2016

2017

Volume 2018

2019

2020

Share 2020

Value 2020

(Metric Tons)

(Percent)

$1,000

LACTOSE (HTS 1702.11 & 1702.19)

North America Mexico

Caribbean Central America South America European Union-27 Other Europe Russia/Central Asia Middle East North Africa Subsaharan Africa South Asia India

39,109

47,747

52,963

60,936

43,904

11.6%

$45,074

34,127

42,708

43,346

51,126

36,742

9.7%

$35,754

618 580 18,615 7,005 136 275 1,226 630 8,001 16,162

579 749 17,725 6,541 243 240 708 1,254 6,423 25,820

474 793 15,078 6,027 193 40 634 329 5,315 22,542

592 529 18,146 8,475 122 0 450 475 6,541 23,041

666 994 18,513 4,921 136 0 2,173 953 4,147 22,716

0.2% 0.3% 4.9% 1.3% 0.0% 0.0% 0.6% 0.3% 1.1% 6.0%

$764 $1,025 $21,527 $10,927 $398 $0 $4,785 $1,335 $4,732 $22,677

12,945

17,863

17,209

17,526

17,010

4.5%

$16,997

Southeast Asia

83,397

71,981

76,233

82,704

93,325

24.8%

$87,662

Indonesia Vietnam Philippines Singapore

20,634 25,447 10,314 15,589

15,656 15,382 9,252 17,656

15,713 17,745 12,474 18,192

16,862 14,073 15,931 21,274

23,502 17,901 17,606 16,020

6.2% 4.7% 4.7% 4.2%

$23,529 $15,346 $16,122 $14,399

131,349

130,104

161,395

129,130

131,372

34.8%

$135,937

61,889 46,677 19,662

67,869 45,855 13,366

95,412 45,909 16,710

66,674 39,960 18,450

68,044 41,734 17,367

18.0% 11.1% 4.6%

$71,918 $41,330 $18,058

54,655

51,183

50,097

46,924

53,228

14.1%

$56,103

46,985

31,644

40,033

41,421

45,963

12.2%

$48,449

0 361,757

0 361,297

0 392,112

0 378,065

0 377,047

0.0% 100.0%

$0 $392,943

East Asia China Japan South Korea

Oceania New Zealand

Other World Source: USDA/FAS

39

Table 46: Commercial Exports & Domestic Disappearance, Milk Equivalent, Total Milk Solids Basis Year

Commercial Exports Total Per Capita /1 (Million lbs)

1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

(Pounds)

571 648 2,520 3,910 3,870 1,290 2,010 2,370 3,090 2,780 4,545 4,910 4,898 4,768 4,904 6,545 7,569 6,782 6,946 10,905 13,388 16,638 17,753 20,225 16,219 23,872 25,640 26,005 30,727 31,130 28,826 29,917 31,276 34,235 31,634 35,595

2.4 2.7 10.4 16.0 15.6 5.2 7.9 9.2 11.9 10.6 17.1 18.2 17.9 17.3 17.6 23.2 26.5 23.5 23.9 37.2 45.2 55.6 58.8 66.4 52.8 77.1 82.2 82.8 97.1 97.7 89.8 92.6 96.2 104.7 96.3 107.8

Domestic Disappearance Total Per Capita /2 (Million lbs)

(Pounds)

127,100 130,205 131,601 135,379 137,654 141,579 141,634 144,283 143,898 148,234 149,427 150,544 150,569 153,452 156,467 159,607 158,965 160,950 163,859 164,944 170,022 170,384 172,334 173,797 176,113 172,634 174,408 177,946 175,009 177,868 184,288 187,803 187,491 188,723 192,154 191,263

Commercial Disappearance Total Per Capita /3 Export % (Million lbs)

533.0 541.1 542.0 552.5 556.5 566.0 558.7 561.6 552.9 562.7 560.6 558.3 551.7 555.8 560.2 565.2 557.2 558.6 563.4 562.1 574.0 569.9 570.6 570.2 572.8 557.3 559.0 566.4 553.3 558.3 574.3 581.1 576.5 577.3 585.0 579.4

(Pounds)

127,671 130,854 134,121 139,289 141,524 142,869 143,644 146,653 146,988 151,014 153,972 155,454 155,467 158,219 161,371 166,152 166,534 167,732 170,805 175,849 183,410 187,023 190,087 194,022 192,332 196,506 200,049 203,951 205,736 208,997 213,114 217,720 218,767 222,958 223,788 226,857

(Percent)

535.4 543.7 552.4 568.5 572.2 571.2 566.7 570.9 564.8 573.2 577.6 576.5 569.7 573.0 577.8 588.4 583.7 582.2 587.3 599.2 619.2 625.5 629.4 636.6 625.6 634.4 641.2 649.2 650.5 656.0 664.2 673.7 672.7 682.0 681.3 687.2

Source: USDA/Economic Research Service, U.S. Census Bureau, and NMPF. 1/ Total exports per U.S. resident. /2 Per capita comsumption by U.S. resident population. 3/ Total commercial disappearance per U.S. resident.

Figure 20: Commercial Exports 40,000

Million Pounds (me, tsb)

35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 1985

1990

1995

2000

40

2005

2010

2015

2020

0.4% 0.5% 1.9% 2.8% 2.7% 0.9% 1.4% 1.6% 2.1% 1.8% 3.0% 3.2% 3.2% 3.0% 3.0% 3.9% 4.5% 4.0% 4.1% 6.2% 7.3% 8.9% 9.3% 10.4% 8.4% 12.1% 12.8% 12.8% 14.9% 14.9% 13.5% 13.7% 14.3% 15.4% 14.1% 15.7%

Table 47: Dairy Imports, Quota & Non-Quota Product

TRQ status 1/

2016

2017

2018

2019

2020

(Thousand Pounds)

Cheese Subject to TRQ Cheddar

26,568 13,588 1,422 0 25,408 15,306 50,875 105 14,705 1,374 6,393 143 6,364 1,320 102,330 20,568 234,065 52,403

19,979 3,329 853 4 22,362 4,813 51,810 49 14,823 508 6,058 49 6,358 335 81,150 4,452 203,393 13,539

15,661 9,195 180 15 20,875 17,279 48,851 394 14,851 1,889 6,646 325 6,202 1,611 81,888 13,709 195,155 44,416

14,829 10,902 136 73 21,156 20,784 47,085 1,262 14,895 2,670 6,991 613 6,155 1,565 84,750 12,620 195,997 50,490

15,932 5,762 0 26 20,822 17,934 39,465 2,523 14,303 7,133 5,683 435 3,748 2,567 71,515 12,686 169,794 49,067

Non-TRQ Cheese 2/ Goya Pecorino Other Total

24,859 26,041 105,814 156,714

13,682 21,748 118,616 154,046

3,337 21,017 107,444 131,798

21 20,678 112,067 132,766

344 10,225 115,889 126,459

All Cheese 3/

452,578

402,125

388,479

396,339

365,505

2,171 12,438 11,641 55,896 14,937 37,214 13,319 11,023 667 477 4,402 824 36,909 36,465 49,796 126,439

2,241 13,458 11,791 61,238 15,075 17,465 13,117 266 811 714 8,896 2,220 35,621 41,038 57,034 59,861

2,241 16,085 11,878 67,678 15,230 59,723 12,364 835 794 630 8,990 5,126 32,655 3,393 23,816 74,390

150,780 122,273 73,638 8,346 953 44,967 421,335

146,792 108,944 47,620 8,569 695 50,107 405,439

125,867 103,849 130,822 5,961 664 38,020 412,815

Other American-type Italian Swiss/Emmentaler Edam/Gouda Gruyere Processed Blue-Veined Other Total

Other Dairy (TRQ) Milk and Cream Evap and Cond Milk Butter Butter Substitutes Nonfat Dry Milk Ice Cream Chocolate Preparations 4/ Other TRQ Products 4/

Other Dairy (Non-TRQ) Casein and Caseinates Milk Protein Concentrate Whey Lactose Butter Substitutes Chocolate Preparations 4/ Other Food Preparations 4/

In quota Out of quota In quota Out of quota In quota Out of quota In quota Out of quota In quota Out of quota In quota Out of quota In quota Out of quota In quota Out of quota In quota Out of quota

In quota Out of quota In quota Out of quota In quota Out of quota In quota Out of quota In quota Out of quota In quota Out of quota In quota Out of quota In quota Out of quota

5,887 16,827 12,058 49,192 15,148 63,505 13,365 1,578 294 214 11,575 2,826 38,226 8,852 15,535 42,598

134,861 110,645 100,735 7,605 870 33,952 509,454

2,237 18,798 11,704 44,239 14,867 66,028 12,555 2,810 203 2,455 10,929 1,150 37,373 5,245 21,113 46,619

130,121 110,048 64,799 7,060 705 38,355 447,212

Source: USDA/FAS; U.S. Bureau of the Census; NMPF. 1/ TRQ: Tariff Rate Quota. "Out of quota" includes all corresponding quota-type products entering the U.S. on an out-of-quota dutypaid basis. 2/ Includes non-cow's milk cheeses. 3/ All cheese, including TRQ and non-TRQ cheese. Totals will not add because inquota TRQ cheese volumes are determined by Customs and Border Protection using different data. 4/ Includes products whose composition consists only partly of dairy components.

41

Table 48: Price Indices: Annual Average, Not Seasonally Adjusted Consumer Price Indices Food & Beverages

Indices of Prices Paid and Received by Farmers

Dairy Products

Prices Received Prices Paid All Farm Livestock Dairy Production Wages, etc Products & Products Products Items (PPITW) Feed

Year

All Items

1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2011 2012

24.1 26.8 29.6 31.5 38.8 53.8 82.4 107.6 130.7 152.4 172.2 195.3 218.1 224.9 229.6

25.4 27.8 30.0 32.2 40.1 60.2 86.7 105.6 132.1 148.4 167.8 190.7 219.6 227.8 233.7

29.0 32.1 35.4 36.0 44.7 62.6 90.9 103.2 126.5 132.8 160.7 182.4 199.2 212.7 217.2

258 232 239 248 280 466 624 579 660 646 611 726 850 1,032 1,083

340 246 296 315 405 567 878 802 1,088 868 955 1,201 1,256 1,540 1,633

249 247 259 260 350 537 798 779 837 783 757 931 1,000 1,239 1,140

246 251 265 276 314 532 822 878 958 1,051 1,117 1,361 1,825 2,082 2,193

256 276 300 321 390 613 978 1,131 1,310 1,454 1,588 1,891 2,434 2,706 2,824

210 211 194 207 216 406 479 464 501 502 497 571 879 1,102 1,270

2013 2014 2015 2016 2017 2018 2019 2020

233.0 236.7 237.0 240.0 245.1 251.1 255.7 258.8

237.0 242.5 246.8 247.6 249.8 253.4 258.0 266.6

217.5 225.3 222.4 217.3 217.5 216.5 218.7 228.3

1,104 1,113 1,024 931 964 934 932 928

1,669 2,049 1,872 1,530 1,571 1,497 1,502 1,407

1,230 1,469 1,050 1,000 1,082 997 1,144 1,119

2,237 2,376 2,331 2,179 2,176 2,215 2,230 2,185

2,877 3,031 2,996 2,863 2,882 2,953 2,989 2,951

1,295 1,266 1,168 1,118 1,045 1,100 1,135 1,110

(1982-1984 = 100)

(1910-1914 = 100)

Source: Bureau of Labor Statistics and USDA/NASS, Agricultural Prices

Table 49: Minutes of Work Required to Purchase Selected Dairy Products

Year

Average Hourly Earnings ($/hour)

1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

$2.09 $2.63 $3.40 $4.73 $6.84 $8.73 $10.19 $11.65 $14.02 $16.12 $19.06 $19.44 $19.73 $20.14 $20.60 $21.03 $21.55 $22.05 $22.70 $23.51 $24.68

Minutes Worked to Earn Money to Purchase Whole Milk Butter Cheese Ice Cream (1/2 Gal*)

14.1 10.8 10.1 10.1 9.3 7.8 8.3 7.5 11.9 11.9 10.3 11.0 10.6 10.3 10.7 9.8 8.9 8.8 7.7 7.7 8.1

(1 Pound)

21.5 17.1 15.3 13.0 16.5 14.5 11.7 8.2 10.8 12.2 9.9 11.1 n/a n/a n/a n/a n/a n/a 10.8 10.2 8.8

(1/2 Gal)

19.7 17.1 17.8 19.4 19.6 17.4 n/a 17.3 16.4 16.3 14.8 16.7 17.1 16.6 16.1 15.3 14.6 13.3 13.6 13.5 13.4

Source: Bureau of Labor Statistics. Average hourly earnings for private production and nonsupervisory workers. *Per gallon beginning 1996.

42

24.9 18.1 14.9 15.5 16.3 15.8 15.3 13.6 14.8 13.9 14.1 15.2 15.3 14.9 14.2 13.5 13.3 12.8 12.5 12.3 12.0

Table 50: Commodity Receipts from Marketings Commodity

1980

1990

2000

2010

2020

(Billion Dollars)

Livestock Products Cattle & Calves Dairy Products Hogs Poultry and Eggs Sheep/Other Livestock Total Livestock: Crops Feed Crops Oil Crops Vegetables Food Grains Fruits and Nuts Cotton Tobacco Other Crops Total Crops: Commodity Receipts: Direct Government Payments: TOTAL RECEIPTS

31.8 16.4 8.9 9.2 1.7 68.0

39.2 20.2 11.5 15.3 3.0 89.1

40.8 20.6 11.8 21.9 4.6 99.6

51.2 31.4 17.9 34.7 5.1 140.3

63.1 40.5 19.2 35.5 6.6 165.0

18.3 15.5 7.3 10.4 6.6 4.4 2.7 6.6 71.7

18.7 12.3 11.3 7.5 9.4 5.5 2.7 12.9 80.2

20.5 13.5 15.8 6.5 12.3 2.9 2.3 18.6 92.5

55.1 36.5 17.4 14.3 21.6 7.5 1.2 24.4 178.2

56.5 37.8 15.7 11.8 28.5 6.7 0.9 34.4 192.2

139.7 1.3 141.0

169.3 9.3 178.6

192.1 23.2 215.3

318.4 12.4 330.8

357.2 45.7 402.8

Milk Volume (Billion lbs)

Member farms

56.6 16.7 13.6 13.1 9.0 8.9 7.5 6.3 4.8 4.5 4.0 3.3 2.7 2.4 2.4 2.4 2.3 1.6 1.5 1.5 1.4 1.3 1.1 1.0 1.0

7,032 359 871 1,638 351 116 3,110 1,010 1,400 751 40 784 831 295 898 143 592 1,765 118 1,462 80 32 210 17 30

Source: USDA / ERS: Agricultural Outlook Tables, Cash Receipts data.

Table 51: Nation's Top Dairy Cooperatives, 2020 Rank Dairy Cooperative 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25

Headquarters

Dairy Farmers of America Inc.* California Dairies Inc.* Edge Dairy Farmer Cooperative Land O' Lakes Inc.* Northwest Dairy Association* Select Milk Producers Inc.* FarmFirst Dairy Cooperative* Foremost Farms USA* Associated Milk Producers Inc.* Michigan Milk Producers Association* United Dairymen of Arizona* Agri-Mark Inc.* Prairie Farms Dairy Inc.* Upstate Niagara Cooperative Inc.* Maryland & Virginia Milk Producers Coop. Assn.* Lone Star Milk Producers* First District Association* Organic Valley/CROPP Southeast Milk Inc.* National Farmers Organization Inc. Tillamook County Creamery Association* Cayuga Marketing LLC* Bongards’ Creameries* Legacy Milk Cooperative Inc. Magic Valley Quality Milk Producers Inc.

Kansas City, KS Visalia, CA Green Bay, WI St. Paul, MN Seattle, WA Artesia, NM Madison, WI Baraboo, WI New Ulm, MN Novi, MI Tempe, AZ Andover, MA Carlinville, IL Buffalo, NY Reston, VA Wichita Falls, TX Litchfield, MN La Farge, WI Belleview, FL Ames, IA Tillamook, OR Auburn, NY Bongards, MN Turlock, Calif.

Jerome, Idaho

Source: Used by permission from Hoard's Dairyman. *NMPF member cooperative.

43

Table 52: Number & Net Volume of Products, Supplies, and Services by Cooperatives, Selected Years

Item

1985 Coops Net Handling Volume (Number)

Products Marketed: Cotton Dairy Fruits & Vegetables Grain & Oilseed Products Livestock & Poultry Rice Sugar Other Total Farm Products Supplies Sold: Crop Protectants Feed Fertilizer Petroleum Seed Other Supplies Total Farm Supplies

1995 Coops Net Handling Volume

2005 2019 Coops Net Coops Net Handling Volume Handling Volume

(Million$)

(Number)

(Million$)

(Number)

(Million$)

(Number)

(Million$)

459 394 370 2,139 432 58 44 348 3,925

1,647 15,365 5,058 15,291 4,305 751 1,505 1,196 46,037

16 241 283 1,104 109 19 51 262 2,085

2,799 21,784 9,272 19,864 8,065 900 1,869 4,796 69,349

14 193 188 683 73 15 47 199 1,412

3,411 28,163 7,256 22,977 3,437 856 3,357 4,693 74,150

14 95 111 367 90 12 18 224 931

2,541 42,396 6,721 48,444 4,777 1,713 4,875 8,030 119,497

3,204 3,099 3,237 2,579 3,120 7,952 4,228

1,451 3,121 3,342 5,800 510 2,417 16,641

n/a n/a n/a n/a n/a n/a 1,447

2,628 5,017 4,692 5,211 583 3,083 21,213

n/a n/a n/a n/a n/a n/a 1,128

2,952 5,381 5,370 9,799 1,252 3,672 28,426

n/a n/a n/a n/a n/a n/a 759

5,599 9,932 10,714 18,905 3,443 4,627 53,220

3,883

1,613

474

3,284

356

3,929

89

7,090

5,625

64,291

4,006

93,847

2,896

106,506

1,779

179,807

Services Provided: Trucking, Cotton Ginning Storage, Grinding, Locker Plants, Miscellaneous Total Farm Services

Total Business

Source: USDA / Rural Business-Cooperative Service, Farmer Cooperative Statistics "Other" includes total cooperatives handling beans & peas, nuts, tobacco, wool and other misc.

Number of cooperatives may not add due to overlap.

44

Table 53: International Milk Production Statistics, 2020 Country

Cow Production Cows Milk Numbers Per Cow Production (1,000 Head) (Pounds) (Million lbs)

North America Canada Mexico United States

967 6,550 9,388

22,685 4,291 23,777

21,936 28,109 223,220

South America Argentina Brazil

1,610 16,200

15,672 3,199

25,232 51,820

Europe European Union

22,633

15,342

Former Soviet Union Belarus Russia Ukraine

1,495 6,580 1,840

East Asia China Japan South Korea Taiwan South Asia India Southeast Asia Philippines Oceania Australia New Zealand Total of Above Total, All Countries 2/

Other Milk Total Milk Share Production 1/ Production of Total (Million lbs) (Million lbs) (Percent) 21,936 28,486 223,220

1.1% 1.4% 11.0%

6,614

25,232 58,434

1.2% 2.9%

347,228

10,428

357,656

17.6%

11,429 10,604 10,783

17,086 69,776 19,842

66

17,152 69,776 20,260

0.8% 3.4% 1.0%

6,150 716 203 63

12,332 22,902 22,046 15,292

75,839 16,398 4,475 963

2,425

29

78,264 16,398 4,475 992

3.9% 0.8% 0.2% 0.0%

56,450

3,663

206,794

222,667

429,461

21.2%

12

3,307

40

15

55

0.0%

1,420 4,922

14,127 9,845

20,060 48,458

20,060 48,458

1.0% 2.4%

137,199 270,985

8,581 6,088

1,177,275 1,649,821

1,420,315 2,028,376

70.0% 100.0%

Source: USDA / FAS and UN / FAO. 1/ Other milk production includes buffalo, camels, goats and sheeps milk.

2/ 2019 data for countries not listed above

45

377

419

243,040 378,555

GLOSSARY American Cheese: Principally cheddar cheese but includes other varieties such as Colby or Jack.

The term does not include Swiss, Muenster, Blue, Italian cheese varieties, and other distinctive types.

Commercial Disappearance: Commercial consumption calculated as production plus imports less the net change in stocks and non-commercial use. Domestic commercial disappearance is total commercial disappearance less commercial exports. May include farm use, waste, shrinkage, some inventory variation, and products used for other than human consumption.

Milk Equivalent: The amount of farm milk represented by a quantity of dairy products. Most often used to aggregate stocks, trade, or removals of various dairy products on a common component basis, such as milkfat, skim solids, or total milk solids.

Milk Sold to Plants and Dealers: A term long used by USDA to mean milk production less that portion utilized on the farm or marketed directly by farmers to consumers.

DMC (Dairy Margin Coverage program) Margin: As defined in the 2018 Farm Bill, the income over feed cost margin is equal to the national monthly all-milk price (reported monthly by USDA NASS) minus average feed costs, computed from a formula using national benchmark prices of corn, soybean meal, and alfalfa hay. Formerly the MPP (Margin Protection Program for Dairy) Margin.

DMC (Dairy Margin Coverage program) Feed Cost: As defined in the 2018 Farm Bill, the feed cost to be used in calculating premiums is the national average feed cost. It includes the U.S. average corn price/bushel, Central Illinois soybean meal price/ton, and price of alfalfa hay price/ton. Formerly the MPP (Margin Protection Program for Dairy) Feed Cost.

National Average Cost of Feed Calculation: =1.0729 X U.S. average corn price/bushel +0.00735 X Central Illinois soybean meal price/ton +0.0137 X Average of U.S. average alfalfa hay price/ton and 5-state average of premium and supreme alfalfa hay (scheduled for recalculation, from January 2020, as 100% of the 5-state dairy quality alfalfa hay price).

46

COMMON CONVERSION FACTORS Measures of Milk: 1 gallon = 8.62 pounds 1 quart = 2.15 pounds 1 pint = 1.08 pounds 1 liter = 2.28 pounds

100 lbs. = 11.6 gallons 100 lbs. = 46.4 quarts 100 lbs. = 92.8 pints 100 lbs. = 43.9 liters

Metric System: Weight 1 kilogram = 2.2046 pounds 1 pound = 0.4536 kilogram 1 gram = 0.03527 ounce 1 ounce = 28.35 grams 1 metric ton = 2,204.6 lbs

Volume 1 liter = 1.057 quarts 1 quart = 0.9464 liter 1 liter = 2.113 pints 1 pint = 0.4732 liter 1 liter = 0.2642 gallons 1 gallon = 3.785 liters

Feed Grains: Commodity Wheat Soybeans Corn Sorghum Flaxseed Rye Barley Oats Rice

Lbs./ unit 60 60 56 56 56 56 48 32 100

Unit bushel bushel bushel bushel bushel bushel bushel bushel cwt.

47

Unit/ MT__ 36.744 36.744 39.368 39.368 39.368 39.368 45.930 68.894 22.046