2023 Dairy Data Highlights by National Milk Producers Federation

Dairy Data Highlights 2023

3 NMPF/USDEC DAIRY ECONOMICS Table of Contents About Us 4 From the Author 5 Glossary 90 Common Conversion Factors 91 U.S. Milk Production and Other Industry Statistics Structure of the Dairy Industry by State Costs of Production Indicators Scope of Federal Milk Marketing Orders Dairy Product Consumption and Production Government Cost of Farm Commodity Programs U.S. Production of Milk, Milkfat and Solids-Not-Fat 7 U.S. Milk Cow Numbers, Dairy Farms and Herd Size 9 Dairy Farms and Milk Production by Herd Size 11 U.S. Production Per Cow of Milk, Milkfat and Solids-Not-Fat 13 Annual Milk and Milkfat Production Per Cow by State 16 Cow Numbers, Dairy Herds and Herd Size by State 17 Milk Production by State 18 Importance of the Dairy Sector by State 20 Producer, Wholesale and Retail Prices of Milk and Dairy Products Farm Level Milk Prices by State 22 Selected Farm Level Annual Average Milk Prices 23 Monthly Seasonality of U.S. All-Milk Price and Milk Production 25 Annual Wholesale Prices of Dairy Products 27 Monthly Prices of Dairy Products on the Chicago Mercantile Exchange 28 Annual Retail Prices for Selected Dairy Products 29 Milk Production Costs and Returns by Herd Size 32 U.S. Milk Production Costs and Returns 34 Monthly Milk-Feed Price Ratio 35 Monthly DMC/MPP Calculated Feed Cost 36 Monthly DMC/MPP Margin 37 Average Prices Received for Livestock 39 Average Prices Received for Crops 41 Crop Production 42 Federal Market Order Statistics by Market 44 Measures of Growth in Federal Milk Marketing Orders 45 Sales and Butterfat Content of Fluid Milk Products in Federal Milk Marketing Orders 46 Annual Commercial Disappearance of Dairy Products, Milk Equivalent, Total Milk Solids Basis 49 Per Capita Commercial Disappearance of Dairy Products, Milk Equivalent, Total Milk Solids Basis 50 Share of Commercial Disappearance by Product 51 Fluid Milk Sales for Beverage Products 52 Per Capita Fluid Milk Sales: Selected Products 54 Fluid Milk Sales for Cream/Other Products 55 Cheese Production, Selected Varieties 57 Per Capita Cheese Consumption, Selected Varieties 58 Production of Butter, NFDM and Other Products 59 Per Capita Consumption of Butter, Cottage Cheese, NFDM and Other Products 60 Per Capita Consumption of Frozen Dairy Products 62 Cheese, Butter, and NFDM Production, by State 63 Plants Processing Dairy Products and Volume Per Plant 65 CCC Net Outlays by Commodity 67 U.S. Dairy Trade U.S. Fresh Milk and Cream Exports 71 U.S. Butter and Cheese Exports 72-73 U.S. Milk Powder Exports 74-75 U.S. Ice Cream and Yogurt Exports 76-77 U.S. Whey and Lactose Exports 78-79 Commercial Exports and Domestic Disappearance, Milk Equivalent, Total Milk Solids Basis 80 Dairy Imports, Quota and Non-Quota 82 U.S. Economic Indicators and Other Statistics Price Indices: Annual Average, Not Seasonally Adjusted 84 Minutes of Work Required to Purchase Selected Dairy Products 85 Commodity Receipts from Marketings 86 Nation’s Top Dairy Cooperatives 87 Number and Net Volume of Products, Supplies and Services by Cooperatives 88 International Milk Production Statistics 89

About Us

The Dairy Economics Team, a collaborative effort between the National Milk Producers Federation (NMPF) and the U.S. Dairy Export Council (USDEC), provides comprehensive market analysis for stakeholders within America’s dairy industry. This specialized team combines the expertise of both organizations to offer unparalleled insights into the ever-evolving dynamics of dairy markets in the United States

Author’s Note

The U.S. dairy industry has long been a major producer and user of economic data, due to the rich and complex commercial and policy environment in which it operates.

NMPF has long recognized this by publishing an annual compendium of such data since at least 1955. These annual “Highlights” publications provide simple one-source summaries of data that are important and useful to dairy producers and those who work with them and for them in the growing business of supplying the nation and the world with wholesome and nutritious milk and dairy products.

PETER VITALIANO Chief Economist, NMPF

5 NMPF/USDEC DAIRY ECONOMICS

U.S. Milk Production and Other Industry Statistics

6 NMPF/USDEC DAIRY ECONOMICS

U.S. Production of Milk, Milkfat and Solids-Not-Fat

Sources: USDA/NASS; USDA/ERS; U.S. Census Bureau

7 NMPF/USDEC DAIRY ECONOMICS

TABLE 1 YEAR MILK PRODUCTION MILKFAT FAT TEST NONFAT SOLIDS PER CAPITA CONSUMPTION (Million Lbs) (% Change) (Million Lbs) ( % ) (Million Lbs) ( % ) (Lbs) 1930 100,158 1.2% 3,929 3.92% 8,994 8.98% 814 1940 109,412 2.5% 4,343 3.97% 9,705 8.87% 829 1950 116,602 0.4% 4,618 3.96% 10,203 8.75% 768 1960 123,109 0.9% 4,628 3.76% 10,600 8.61% 684 1970 117,007 0.8% 4,284 3.66% 10,063 8.60% 574 1980 128,406 4.1% 4,692 3.65% 11,030 8.59% 565 1985 143,012 5.7% 5,244 3.67% 12,299 8.60% 600 1990 147,721 2.7% 5,390 3.65% 12,704 8.60% 591 1995 155,292 1.1% 5,681 3.66% 13,505 8.70% 583 2000 167,393 3.0% 6,164 3.68% 14,596 8.72% 593 2001 165,332 -1.2% 6,073 3.67% 14,427 8.73% 580 2002 170,063 2.9% 6,264 3.68% 14,853 8.73% 591 2003 170,348 0.2% 6,247 3.67% 14,868 8.73% 587 2004 170,832 0.3% 6,266 3.67% 14,942 8.75% 583 2005 176,931 3.6% 6,480 3.66% 15,481 8.75% 599 2006 181,782 2.7% 6,700 3.69% 15,944 8.77% 609 2007 185,654 2.1% 6,832 3.68% 16,292 8.78% 616 2008 189,978 2.3% 6,998 3.68% 16,676 8.78% 625 2009 189,202 -0.4% 6,944 3.67% 16,615 8.78% 617 2010 192,877 1.9% 7,054 3.66% 16,979 8.80% 624 2011 196,255 1.8% 7,284 3.71% 17,317 8.82% 630 2012 200,642 2.2% 7,463 3.72% 17,750 8.85% 639 2013 201,260 0.3% 7,558 3.76% 17,853 8.87% 637 2014 206,048 2.4% 7,698 3.74% 18,273 8.87% 647 2015 208,508 1.2% 7,810 3.75% 18,481 8.86% 650 2016 212,451 1.9% 8,054 3.79% 18,874 8.88% 658 2017 215,527 1.4% 8,272 3.84% 19,190 8.90% 663 2018 217,568 0.9% 8,466 3.89% 19,404 8.92% 666 2019 218,441 0.4% 8,560 3.92% 19,508 8.93% 665 2020 223,309 2.2% 8,818 3.95% 19,975 8.94% 674 2021 226,293 1.3% 9,069 4.01% 20,338 8.99% 682 2022 226,462 0.1% 9,249 4.08% 20,442 9.03% 679

Growth in U.S. Milk Production

Sources: USDA/NASS; USDA/ERS; U.S. Census Bureau

8 NMPF/USDEC DAIRY ECONOMICS

FIGURE 1

-4.0% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 18.0% 20.0% 100,000 120,000 140,000 160,000 180,000 200,000 220,000 240,000 2000 2005 2010 2015 2020 Annual % Change in Production Milk Production (million lbs)

U.S. Milk Cow Numbers, Dairy Farms and Herd Size

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.

Licensed dairy: A farm with a public health license to sell milk.

9 NMPF/USDEC DAIRY ECONOMICS YEAR JAN. 1 INVENTORY FARM NUMBERS AVERAGE HERD SIZE Milk Cows Heifers Kept for Replacement Total Dairy Licensed All (1,000 head) (#) (per 100 Cows) (Thousand) (Number) 1950 23,853 5,394 23 5,648 3,648 7 1955 23,462 5,786 25 4,654 2,936 8 1960 19,527 5,079 26 3,963 1,792 11 1965 16,981 4,149 24 3,356 1,108 15 1970 12,091 3,881 32 2,949 648 19 1975 11,220 4,087 36 2,521 444 25 1980 10,758 4,159 39 2,440 334 32 1985 10,777 4,770 44 2,293 269 40 1990 10,015 4,171 42 2,146 193 52 1995 9,482 4,121 43 2,196 112.0 140 85 2000 9,183 4,000 44 2,167 83.0 105 111 2005 9,004 4,117 46 2,099 64.5 78.3 140 2010 9,087 4,551 50 2,150 53.1 62.5 171 2015 9,312 4,710 51 2,064 43.5 n/a 214 2016 9,312 4,814 52 2,055 41.8 n/a 223 2017 9,369 4,754 51 2,042 40.2 n/a 233 2018 9,432 4,768 51 2,029 37.5 n/a 252 2019 9,353 4,702 50 2,023 34.2 n/a 273 2020 9,343 4,684 50 2,019 31.7 n/a 295 2021 9,442 4,609 49 2,012 29.8 n/a 316 2022 9,377 4,441 47 2,003 27.9 n/a 336 2023 9,403 4,337 46

TABLE 2

U.S. Dairy Farms and Average Herd Size

Sources: USDA / NASS: Cattle; Milk Production; Farms and Land in Farms.

10 NMPF/USDEC DAIRY ECONOMICS

FIGURE 2

50 75 100 125 150 175 200 225 250 275 300 325 350 25 50 75 100 125 1995 2000 2005 2010 2015 2020

Dairy Farms ( 1,000 ) Dairy

Average

Herd Size

Herds

Herd Size

Dairy

Farms and Milk Production by Herd Size

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.

11 NMPF/USDEC DAIRY ECONOMICS YEAR NUMBER OF COWS IN HERD 1 - 29 30 - 49 50 - 99 100 - 199 200 - 499 500 - 999 1000 - 1999 2000+ Number of Farms1 by Size Group 1980 203,181 63,160 49,793 18,046 ² ² ² ² 1985 135,870 57,846 55,155 20,179 ² ² ² ² 1990 81,430 44,592 47,113 20,745 ² ² ² ² 1995 48,150 31,030 39,280 14,290 6,920 ² ³ ³ 2000 30,820 22,210 31,190 12,835 5,340 1,700 690 270 2005 22,490 14,835 23,185 10,055 4,662 1,700 850 523 2010 20,000 10,800 15,800 8,600 3,950 1,670 920 760 2012 18,800 9,700 14,500 7,900 3,800 1,570 950 780 20174 9,330 4,700 12,130 6,750 3,830 1,510 960 990 % of U.S. Milk Production by Size Group 1980 13.5 22.9 30.4 33.2 ² ² ² ² 1985 10.1 20.5 33.1 36.3 ² ² ² ² 1990 6.9 17.3 31.5 44.3 ² ² ² ² 1995 3.1 11.3 26.1 19.8 39.7 ³ ³ ³ 2000 1.8 7.7 19.4 17.2 18.0 13.8 11.6 10.5 2005 1.3 5.1 15.2 13.5 15.3 14.3 13.4 21.9 2010 1.1 3.5 10.6 11.3 12.6 12.7 15.5 32.7 2012 1.0 3.2 9.5 10.7 12.6 12.4 15.9 34.7 20174 0.8 2.8 7.3 8.9 12.6 12.2 14.5 41.0

TABLE 3

Percent of U.S. Dairy Farms1 by Herd Size

Percent of U.S. Milk Production by Herd Size

Source: USDA / NASS; Milk Production.

12 NMPF/USDEC DAIRY ECONOMICS

FIGURE

1980 2017

FIGURE

1980 2017

1 - 29 61% 30 - 49 19% 50 - 99 15% 100+ 4% 1 - 29 23% 30 - 49 12% 50 - 99 30% 100 - 199 17% 200-499 5% 500 - 999 4% 1000 - 1999 2.4% 2000+ 2.5% 1 - 29 14% 30 - 49 23% 50 - 99 30% 100+ 33% 1 - 29 0.8% 30 - 49 2.8% 50 - 99 7.3% 100 - 199 8.9% 200 - 499 12.6% 500 - 999 12.2% 1000 - 1999 14.5% 2000+ 41.0%

U.S. Production Per Cow of Milk, Milkfat and Solids-Not-Fat

Sources: USDA/NASS; USDA/ERS.

13 NMPF/USDEC DAIRY ECONOMICS YEAR MILK PRODUCTION PER COW MILKFAT PRODUCTION PER COW SOLIDS-NOT-FAT PRODUCTION PER COW Lbs % Change Lbs % Change Lbs % Change 1925 4,218 1.2% 165 1.2% 385 1.2% 1930 4,508 -1.6% 177 -1.7% 404 1.0% 1940 4,622 0.7% 183 1.1% 411 2.0% 1950 5,314 0.8% 210 0.5% 467 2.2% 1960 7,029 3.1% 263 2.7% 607 3.9% 1970 9,751 3.4% 357 3.0% 838 3.3% 1980 11,891 3.5% 434 3.4% 1,021 3.4% 1985 13,024 3.9% 478 3.9% 1,120 3.9% 1990 14,782 3.2% 539 2.1% 1,271 3.2% 1995 16,405 1.4% 600 1.4% 1,427 2.5% 2000 18,197 2.4% 670 2.8% 1,587 2.4% 2001 18,162 -0.2% 667 -0.4% 1,585 -0.1% 2002 18,608 2.5% 685 2.7% 1,625 2.5% 2003 18,759 0.8% 688 0.4% 1,637 0.7% 2004 18,960 1.1% 696 1.2% 1,658 1.3% 2005 19,550 3.1% 716 2.9% 1,711 3.1% 2006 19,895 1.8% 734 2.5% 1,745 2.0% 2007 20,204 1.6% 744 1.4% 1,773 1.6% 2008 20,397 1.0% 751 0.9% 1,790 1.0% 2009 20,561 0.8% 755 0.5% 1,806 0.8% 2010 21,142 2.8% 774 2.5% 1,861 3.1% 2011 21,334 0.9% 791 2.2% 1,882 1.1% 2012 21,722 1.8% 808 2.1% 1,922 2.1% 2013 21,819 0.4% 820 1.5% 1,935 0.7% 2014 22,249 2.0% 832 1.5% 1,973 1.9% 2015 22,372 0.6% 839 0.8% 1,983 0.5% 2016 22,761 1.7% 863 2.9% 2,022 2.0% 2017 22,914 0.7% 880 2.0% 2,040 0.9% 2018 23,150 1.0% 901 2.4% 2,065 1.2% 2019 23,395 1.1% 917 1.8% 2,089 1.2% 2020 23,777 1.6% 939 2.4% 2,127 1.8% 2021 23,949 0.7% 960 2.2% 2,152 1.2% 2022 24,087 0.6% 983 2.4% 2,174 1.0%

TABLE

Growth In U.S. Milk Production Per Cow

Sources: USDA/NASS; USDA/ERS.

14 NMPF/USDEC DAIRY ECONOMICS

FIGURE 4

-4.0% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 18.0% 20.0% 10,000 12,000 14,000 16,000 18,000 20,000 22,000 24,000 26,000 2000 2005 2010 2015 2020 Annual % Change in Production Milk Production (million lbs)

Structure of the Dairy Industry by State

15 NMPF/USDEC DAIRY ECONOMICS

Dairy Farms and Milk Production by Herd Size

Source: USDA/NASS: Milk Production, Disposition, and Income.

16 NMPF/USDEC DAIRY ECONOMICS STATE ANNUAL MILK PER COW MILKFAT PER COW RANK OF 2022 MILK PER COW 1990 2000 2010 2020 2022 (Lbs) Alabama 12,214 13,920 14,182 14,667 10,667 414 48 Alaska¹ 14,000 14,500 11,833 Arizona 17,500 21,820 23,452 24,445 24,223 923 13 Arkansas 11,841 12,436 12,750 12,800 11,250 440 47 California 18,456 21,130 23,025 23,990 24,267 988 12 Colorado 17,182 21,618 23,664 26,142 25,922 1,006 2 Connecticut 15,606 17,778 19,158 23,053 23,889 970 16 Delaware 13,667 14,747 16,981 18,553 17,815 723 42 Florida 14,033 15,688 18,711 20,230 19,928 737 38 Georgia 12,973 16,284 17,658 21,877 22,043 835 25 Hawaii¹ 13,604 14,358 13,316 Idaho 16,475 20,816 22,647 25,174 25,348 1,060 5 Illinois 14,707 17,450 18,400 21,530 21,425 874 29 Indiana 14,590 16,568 20,094 23,683 23,726 951 17 Iowa 15,118 18,298 20,676 24,651 24,658 1,031 11 Kansas 12,576 16,923 20,983 23,682 23,948 996 15 Kentucky 10,947 12,841 14,769 19,563 20,578 809 34 Louisiana 11,605 12,034 11,750 13,400 12,444 477 46 Maine 14,619 17,128 18,344 21,963 21,308 857 30 Maryland 13,461 16,083 18,537 20,976 20,537 830 35 Massachusetts 14,871 17,091 17,286 20,000 20,889 854 33 Michigan 15,394 19,017 23,277 27,174 27,430 1,089 1 Minnesota 14,127 17,777 19,366 22,694 23,128 995 20 Mississippi 12,081 15,028 13,118 16,375 12,857 485 45 Missouri 13,632 14,662 14,596 14,276 14,045 576 44 Montana 13,542 17,789 20,643 21,167 22,300 861 23 Nebraska 13,866 16,513 19,797 24,746 24,842 1,011 8 Nevada 16,400 19,000 23,714 23,879 24,813 988 10 New Hampshire 15,100 17,333 19,600 21,455 21,900 887 26 New Jersey 13,538 15,250 17,500 20,200 21,750 859 27 New Mexico 18,815 20,944 24,551 24,755 24,819 968 9 New York 14,658 17,378 20,807 24,435 25,096 1,011 6 North Carolina 15,220 16,746 19,682 21,829 23,385 910 18 North Dakota 12,624 14,292 18,286 21,867 22,786 991 22 Ohio 13,767 17,027 19,446 22,118 22,076 883 24 Oklahoma 12,327 14,440 17,125 17,452 18,333 752 39 Oregon 16,273 18,222 20,331 20,929 20,921 898 32 Other States¹ 5,333 5,556 213 49 Pennsylvania 14,726 18,081 19,847 21,326 21,259 852 31 Rhode Island 14,250 15,667 17,727 21,800 20,000 854 37 South Carolina 12,771 16,087 17,875 18,600 17,889 755 41 South Dakota 12,257 15,516 20,478 23,111 23,117 1,045 21 Tennessee 11,825 14,789 16,346 18,067 18,296 717 40 Texas 14,350 16,503 21,375 24,966 25,579 1,092 4 Utah 15,838 17,573 21,898 23,229 23,323 933 19 Vermont 14,528 17,199 18,537 21,336 21,644 881 28 Virginia 14,213 15,833 18,095 20,293 20,343 804 36 Washington 18,532 22,644 23,514 24,346 24,089 1,012 14 West Virginia 11,250 15,588 15,700 14,833 15,000 599 43 Wisconsin 13,973 17,306 20,630 24,423 25,064 1,020 7 Wyoming 12,337 13,571 20,067 25,173 25,763 974 3 United States 14,782 18,197 21,142 23,777 24,087 983

TABLE

Alaska and Hawaii combined into ”Other States” beginning in 2019.

Cow Numbers, Licensed Dairy Herds and Herd Size, by State

17 NMPF/USDEC DAIRY ECONOMICS STATE COWS LICENSED DAIRY HERDS AVERAGE HERD SIZE RANK OF 2022 2012 2022 2012 2022 2012 2022 1,000 Head Alabama 10 3 50 10 200 300 21 Alaska¹ 0 4 1 100 Arizona 188 197 110 80 1,709 2,463 2 Arkansas 10 4 100 30 100 133 41 California 1,782 1,722 1,605 1,115 1,110 1,544 9 Colorado 133 205 130 110 1,023 1,864 4 Connecticut 18 18 130 85 138 212 29 Delaware 5 3 50 15 96 180 33 Florida 123 97 130 60 946 1,617 6 Georgia 80 92 250 95 320 968 11 Hawaii¹ 2 2 1 1,000 Idaho 580 656 565 410 1,027 1,600 7 Illinois 98 80 760 480 129 167 35 Indiana 175 186 1,570 735 111 253 25 Iowa 205 234 1,580 800 130 293 24 Kansas 126 173 340 210 371 824 13 Kentucky 74 45 840 380 88 118 44 Louisiana 17 9 140 65 121 138 40 Maine 33 26 310 170 106 153 39 Maryland 51 41 500 310 102 132 42 Massachusetts 12 9 155 110 77 82 48 Michigan 375 428 2,130 1,010 176 424 19 Minnesota 465 453 4,125 2,035 113 223 26 Mississippi 14 7 110 45 127 156 38 Missouri 94 67 1,430 560 66 120 43 Montana 14 10 70 45 200 222 27 Nebraska 56 57 210 100 267 570 16 Nevada 29 32 20 20 1,450 1,600 7 New Hampshire 14 10 120 95 117 105 45 New Jersey 7 4 80 40 88 100 46 New Mexico 330 288 140 110 2,357 2,618 1 New York 610 624 5,150 3,210 118 194 31 North Carolina 46 39 270 130 170 300 21 North Dakota 18 14 130 40 138 350 20 Ohio 270 250 3,060 1,525 88 164 37 Oklahoma 48 39 200 85 240 459 17 Oregon 123 126 270 170 456 741 14 Other States¹ 1 6 2 450 18 Pennsylvania 536 468 7,140 5,000 75 94 47 Rhode Island 1 1 15 10 73 50 49 South Carolina 16 9 80 30 200 300 21 South Dakota 92 180 325 155 283 1,161 10 Tennessee 50 27 420 140 119 193 32 Texas 436 646 500 320 872 2,019 3 Utah 95 93 230 150 413 620 15 Vermont 133 118 970 550 137 215 28 Virginia 96 70 680 390 141 179 34 Washington 262 259 480 310 546 835 12 West Virginia 10 5 95 30 105 167 35 Wisconsin 1,270 1,272 11,490 6,350 111 200 30 Wyoming 6 9 20 5 300 1,860 5 United States 9,237 9,402 49,281 27,932 187 337

TABLE 6 Source: USDA/NASS: Milk Production. ¹ Alaska and Hawaii combined into ”Other States” beginning in 2019.

Milk Production by State

18 NMPF/USDEC DAIRY ECONOMICS STATE MILK PRODUCTION 2022 PRODUCTION 2000 2010 2020 2022 Share of U.S. Rank Per Capita (Million Pounds) (Percent) (Pounds) Alabama 348 156 44 32 0.01% 47 6 Alaska¹ 13 7 Arizona 3,033 4,151 4,889 4,772 2.1% 14 648 Arkansas 485 153 64 45 0.02% 46 15 California 32,245 40,385 41,311 41,787 18.5% 1 1,071 Colorado 1,924 2,816 5,150 5,314 2.3% 13 910 Connecticut 480 364 438 430 0.2% 34 119 Delaware 146 90 71 48 0.02% 45 47 Florida 2,463 2,133 2,286 1,933 0.9% 22 87 Georgia 1,433 1,395 1,772 2,028 0.9% 21 186 Hawaii¹ 116 25 Idaho 7,223 12,773 16,237 16,628 7.3% 3 8,575 Illinois 2,094 1,840 1,787 1,714 0.8% 23 136 Indiana 2,419 3,416 4,334 4,413 1.9% 15 646 Iowa 3,934 4,342 5,374 5,770 2.5% 11 1,803 Kansas 1,540 2,497 4,026 4,143 1.8% 17 1,411 Kentucky 1,695 1,152 939 926 0.4% 27 205 Louisiana 698 235 134 112 0.0% 41 24 Maine 668 587 593 554 0.2% 32 400 Maryland 1,351 1,001 881 842 0.4% 29 137 Massachusetts 376 242 200 188 0.1% 39 27 Michigan 5,705 8,333 11,685 11,740 5.2% 6 1,170 Minnesota 9,493 9,102 10,167 10,477 4.6% 7 1,833 Mississippi 541 223 131 90 0.0% 42 31 Missouri 2,258 1,445 1,085 941 0.4% 26 152 Montana 338 289 254 223 0.1% 37 199 Nebraska 1,255 1,168 1,460 1,416 0.6% 25 720 Nevada 476 664 788 794 0.4% 30 250 New Hampshire 312 294 236 219 0.1% 38 157 New Jersey 244 140 101 87 0.0% 43 9 New Mexico 5,236 7,881 8,169 7,148 3.2% 9 3,382 New York 11,921 12,713 15,296 15,660 6.9% 5 796 North Carolina 1,189 866 895 912 0.4% 28 85 North Dakota 686 384 328 319 0.1% 35 409 Ohio 4,461 5,270 5,618 5,519 2.4% 12 469 Oklahoma 1,314 959 733 715 0.3% 31 178 Oregon 1,640 2,399 2,637 2,636 1.2% 18 622 Other States¹ 129 32 5 5 0.002% 49 2 Pennsylvania 11,156 10,737 10,279 9,949 4.4% 8 767 Rhode Island 28 20 11 10 0.004% 48 9 South Carolina 370 286 186 161 0.1% 40 30 South Dakota 1,474 1,884 3,120 4,161 1.8% 16 4,573 Tennessee 1,405 850 542 494 0.2% 33 70 Texas 5,743 8,828 14,855 16,524 7.3% 4 550 Utah 1,687 1,927 2,230 2,169 1.0% 20 642 Vermont 2,683 2,521 2,603 2,554 1.1% 19 3,947 Virginia 1,900 1,719 1,522 1,424 0.6% 24 164 Washington 5,593 5,902 6,817 6,239 2.8% 10 801 West Virginia 265 157 89 75 0.0% 44 42 Wisconsin 23,259 26,035 30,749 31,882 14.1% 2 5,411 Wyoming 76 120 189 240 0.1% 36 412 United States 167,393 192,877 223,309 226,462 100.0% 679

TABLE 7 Sources: Milk Production

Income;

of Census. ¹ Alaska and Hawaii combined into

States” beginning in 2019.

Disposition and

Bureau

”Other

Regional Milk Production

U.S. Milk Production, 1980

U.S. Milk Production, 2022

19 NMPF/USDEC DAIRY ECONOMICS Northeast 14% Southeast 3% California 18% West 15% Southwest 13% Wisconsin 14% Midwest 23% AK & HI 0.002% Northeast 20% Southeast 10% California 11% West 7% Southwest 4% Wisconsin 18% Midwest 30% AK & HI 0.13%

FIGURE 5

Importance of the Dairy Sector by State, 2022

Sources: USDA/ERS: Farm Business Economics Report

20 NMPF/USDEC DAIRY ECONOMICS STATE FARM RECEIPTS DAIRY SHARE OF TOTAL RANK OF DAIRY FIRST IN INCOME RECEIPTS Total Dairy (Thousand Dollars) (Percent) (Thousand Dollars) California $55,871,204 $10,397,493 18.6% 1 Milk and Dairy Products $10,397,493 Wisconsin $16,831,244 $7,781,718 46.2% 1 Milk and Dairy Products $7,781,718 Idaho $11,235,347 $4,281,252 38.1% 1 Milk and Dairy Products $4,281,252 Texas $30,048,209 $4,223,744 14.1% 2 Cattle and calves $11,557,144 New York $7,540,675 $4,086,414 54.2% 1 Milk and Dairy Products $4,086,414 Michigan $12,103,516 $2,879,184 23.8% 1 Milk and Dairy Products $2,879,184 Pennsylvania $9,777,965 $2,616,875 26.8% 1 Milk and Dairy Products $2,616,875 Minnesota $26,002,384 $2,604,878 10.0% 4 Corn $8,055,714 Washington $12,027,392 $1,673,180 13.9% 2 Apples $2,067,829 New Mexico $3,708,254 $1,669,205 45.0% 1 Milk and Dairy Products $1,669,205 Iowa $45,182,186 $1,409,240 3.1% 6 Corn $15,749,064 Ohio $15,372,273 $1,394,206 9.1% 4 Soybeans $4,221,032 Colorado $9,095,211 $1,354,496 14.9% 2 Cattle and calves $4,456,245 Arizona $5,200,677 $1,199,772 23.1% 1 Milk and Dairy Products $1,199,772 Indiana $18,377,307 $1,122,048 6.1% 5 Corn $6,425,262 South Dakota $14,346,864 $1,088,086 7.6% 4 Corn $4,280,917 Kansas $24,134,316 $1,003,590 4.2% 6 Cattle and calves $11,620,717 Oregon $6,229,280 $719,125 11.5% 3 Miscellaneous crops $1,843,630 Vermont $1,039,151 $674,842 64.9% 1 Milk and Dairy Products $674,842 Georgia $13,107,951 $577,720 4.4% 5 Broilers $6,672,840 Florida $8,619,550 $561,048 6.5% 5 Miscellaneous crops $1,517,214 Utah $2,722,456 $551,936 20.3% 2 Cattle and calves $628,618 Illinois $28,454,241 $432,562 1.5% 6 Corn $13,783,205 Virginia $5,084,106 $395,640 7.8% 4 Broilers $1,602,080 Nebraska $31,736,187 $356,730 1.1% 5 Cattle and calves $13,677,252 Kentucky $8,305,814 $242,880 2.9% 9 Corn $1,446,528 Missouri $15,196,892 $242,486 1.6% 10 Soybeans $4,176,034 North Carolina $16,863,610 $239,184 1.4% 11 Broilers $6,887,125 Maryland $3,299,312 $213,504 6.5% 5 Broilers $1,487,330 Oklahoma $9,551,058 $200,220 2.1% 8 Cattle and calves $4,576,374 Nevada $951,226 $199,364 21.0% 3 Cattle and calves $381,668 Maine $931,529 $135,850 14.6% 3 Potatoes $219,547 Tennessee $5,154,602 $129,585 2.5% 10 Soybeans $1,098,814 Connecticut $686,021 $114,594 16.7% 3 Miscellaneous crops $263,436 North Dakota $11,438,283 $80,384 0.7% 14 Soybeans $2,549,710 Wyoming $1,926,199 $61,217 3.2% 5 Cattle and calves $1,082,124 New Hampshire $266,518 $57,939 21.7% 3 Miscellaneous crops $65,962 Montana $4,419,834 $55,660 1.3% 12 Cattle and calves $1,609,835 Massachusetts $503,552 $49,765 9.9% 4 Miscellaneous crops $196,341 South Carolina $3,567,798 $45,188 1.3% 12 Broilers $1,541,985 Louisiana $4,294,488 $29,648 0.7% 12 Broilers $862,560 Mississippi $7,754,173 $24,200 0.3% 16 Broilers $3,648,625 New Jersey $1,461,198 $21,252 1.5% 9 Miscellaneous crops $583,949 West Virginia $904,339 $18,323 2.0% 9 Broilers $253,555 Delaware $2,027,328 $11,894 0.6% 7 Broilers $1,531,530 Arkansas $13,973,570 $11,567 0.1% 19 Broilers $6,255,830 Alabama $8,510,263 $8,525 0.1% 18 Broilers $5,734,355 Rhode Island $76,767 $2,732 3.6% 6 Miscellaneous crops $32,645 Hawaii $642,585 $1,447 0.2% 10 Miscellaneous crops $317,098 Alaska $45,584 $403 0.9% 8 Miscellaneous crops $16,889 United States $536,600,492 $57,252,795 10.7% 4 Corn $88,573,921 United States 167,393 192,877 100.0%

TABLE 8

Producer, Wholesale and Retail Prices of Milk and Dairy Products

21 NMPF/USDEC DAIRY ECONOMICS

Farm Level Milk Prices by State

Source: USDA/NASS: Milk Production, Disposition, and Income.

¹ Milk prices for Alaska and Hawaii combined into “Other States” beginning in 2019.

22 NMPF/USDEC DAIRY ECONOMICS STATE 1980 1990 2000 2010 2020 2022 % CHANGE FROM 2021 2022 CASH RECEIPTS (Dollars per Cwt.) (Percent) (Thousand Dollars) Alabama $14.40 $15.90 $14.20 $19.50 $18.30 $27.50 42% $8,525 Alaska¹ $17.50 $20.30 $20.30 $24.40 $403 Arizona $13.40 $14.10 $11.90 $15.90 $16.20 $25.20 43% $1,199,772 Arkansas $13.50 $15.00 $13.60 $17.10 $17.80 $26.90 44% $11,567 California $12.88 $12.02 $11.50 $14.69 $17.60 $24.90 38% $10,397,493 Colorado $14.00 $14.50 $11.80 $16.40 $17.40 $25.60 37% $1,354,496 Connecticut $13.60 $14.70 $14.10 $18.00 $18.00 $26.90 40% $114,594 Delaware $13.60 $14.90 $13.50 $18.40 $17.10 $25.20 41% $11,894 Florida $15.80 $16.70 $15.60 $20.70 $21.30 $29.10 34% $561,048 Georgia $14.00 $15.80 $12.90 $18.40 $19.80 $28.60 40% $577,720 Hawaii¹ $18.12 $20.70 $24.50 $35.00 $1,447 Idaho $12.20 $12.20 $10.60 $14.90 $18.40 $25.80 38% $4,281,252 Illinois $12.90 $12.90 $12.30 $17.10 $18.00 $25.40 40% $432,562 Indiana $13.00 $14.10 $12.90 $17.30 $17.40 $25.60 38% $1,122,048 Iowa $12.60 $13.30 $11.70 $16.50 $19.50 $24.50 30% $1,409,240 Kansas $13.10 $13.30 $11.60 $17.30 $17.10 $24.30 43% $1,003,590 Kentucky $12.80 $14.30 $13.80 $17.90 $18.70 $26.40 37% $242,880 Louisiana $14.10 $15.40 $13.90 $18.00 $18.70 $27.20 45% $29,648 Maine $13.90 $15.20 $14.10 $18.60 $19.40 $24.70 25% $135,850 Maryland $13.60 $14.90 $13.50 $18.40 $17.40 $25.60 41% $213,504 Massachusetts $13.70 $14.80 $14.10 $18.00 $18.30 $26.90 39% $49,765 Michigan $13.20 $14.10 $12.90 $17.00 $16.40 $24.60 40% $2,879,184 Minnesota $12.40 $13.22 $12.00 $16.10 $20.10 $25.10 32% $2,604,878 Mississippi $13.80 $15.10 $13.90 $18.40 $19.00 $27.50 40% $24,200 Missouri $12.60 $13.60 $12.10 $16.60 $17.90 $26.30 40% $242,486 Montana $12.80 $13.70 $12.80 $16.90 $18.60 $25.30 40% $55,660 Nebraska $12.70 $13.10 $11.70 $17.30 $18.20 $25.30 37% $356,730 Nevada $12.70 $13.20 $11.00 $16.90 $18.50 $25.30 38% $199,364 New Hampshire $13.60 $14.80 $14.00 $17.80 $18.00 $26.70 41% $57,939 New Jersey $13.38 $15.30 $13.20 $16.80 $17.20 $25.30 36% $21,252 New Mexico $14.10 $13.40 $12.40 $15.80 $16.30 $23.50 44% $1,669,205 New York $13.00 $14.60 $13.10 $17.40 $17.70 $26.20 39% $4,086,414 North Carolina $14.00 $15.80 $14.90 $19.30 $18.80 $26.40 37% $239,184 North Dakota $11.80 $12.50 $11.30 $15.90 $19.90 $25.60 33% $80,384 Ohio $13.00 $13.90 $12.60 $17.80 $18.30 $25.40 34% $1,394,206 Oklahoma $13.60 $14.30 $13.60 $18.00 $19.00 $28.20 40% $200,220 Oregon $13.10 $13.20 $12.80 $17.30 $21.20 $27.50 31% $719,125 Other States¹ $26.50 $41.10 39% $1,850 Pennsylvania $13.60 $15.00 $13.70 $18.30 $18.20 $26.50 39% $2,616,875 Rhode Island $13.70 $14.80 $14.20 $18.00 $17.50 $27.60 45% $2,732 South Carolina $14.50 $16.10 $14.10 $19.90 $19.30 $28.60 42% $45,188 South Dakota $12.40 $13.00 $12.80 $16.50 $20.60 $26.20 30% $1,088,086 Tennessee $13.30 $14.70 $13.80 $17.90 $18.80 $26.50 37% $129,585 Texas $13.90 $14.70 $13.40 $17.10 $18.60 $25.60 41% $4,223,744 Utah $12.50 $12.90 $11.20 $16.20 $18.20 $25.60 38% $551,936 Vermont $13.40 $14.40 $13.80 $17.70 $18.30 $26.60 37% $674,842 Virginia $13.30 $15.00 $14.80 $19.40 $19.70 $28.00 37% $395,640 Washington $12.70 $13.30 $12.80 $16.10 $17.50 $26.90 45% $1,673,180 West Virginia $13.00 $14.30 $13.30 $16.90 $17.50 $25.10 39% $18,323 Wisconsin $12.67 $13.47 $11.70 $16.10 $18.90 $24.60 31% $7,781,718 Wyoming $12.70 $12.80 $11.00 $16.50 $16.90 $25.70 37% $61,217 United States $13.05 $13.74 $12.40 $16.35 $18.16 $25.39 37% $57,252,795

TABLE 9

Selected Farm Level Annual Average Milk Prices

Sources: 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.

23 NMPF/USDEC DAIRY ECONOMICS YEAR CLASS III PRICE @ 3.5% CLASS IV PRICE @ 3.5% MANUFACTURING GRADE MILK ALL-MILK WHOLESALE % CHANGE IN ALL-MILK PRICE (Dollars Per Cwt.) 1965 $3.27 N/A $3.34 $4.23 1.9% 1970 $4.66 N/A $4.70 $5.71 4.0% 1975 $7.62 N/A $7.63 $8.75 4.9% 1980 $11.88 N/A $12.01 $13.05 8.4% 1985 $11.50 N/A $11.72 $12.76 -2.2% 1990 $12.21 N/A $12.34 $13.74 1.3% 1995 $11.83 N/A $11.79 $12.78 -1.8% 2000 $9.74 $11.83 $10.52 $12.30 -14.6% 2005 $14.05 $12.88 $14.42 $15.10 -6.2% 2006 $11.89 $11.06 $12.19 $12.90 -14.6% 2007 $18.04 $18.36 $18.31 $19.10 48.1% 2008 $17.44 $14.65 $17.91 $18.30 -4.2% 2009 $11.36 $10.89 $12.03 $12.80 -30.1% 2010 $14.41 $15.09 $14.56 $16.30 27.3% 2011 $18.37 $19.04 N/A $20.10 23.3% 2012 $17.44 $16.01 N/A $18.50 -8.0% 2013 $17.99 $19.05 N/A $20.10 8.6% 2014 $22.34 $22.09 N/A $24.00 19.4% 2015 $15.80 $14.34 N/A $17.10 -28.8% 2016 $14.87 $13.77 N/A $16.30 -4.7% 2017 $16.17 $15.16 N/A $17.70 8.6% 2018 $14.62 $14.24 N/A $16.30 -7.9% 2019 $16.97 $16.30 N/A $18.70 14.7% 2020 $18.17 $13.48 N/A $18.10 -3.2% 2021 $17.09 $16.10 N/A $18.60 2.8% 2022 $21.96 $24.47 N/A $25.60 37.6%

TABLE 10

All-Milk Price and Class III Price

Sources: USDA/AMS; USDA/NASS: Milk Production, Disposition, and Income. $10.00

24 NMPF/USDEC DAIRY ECONOMICS

FIGURE 6

$16.00 $18.00 $20.00 $22.00

2005 2010 2015 2020

$12.00 $14.00

$24.00 $26.00 $28.00

Dollars Per Cwt.

All-Milk Price Class III Price

Monthly Seasonality of U.S. All-Milk Price and Milk Production

U.S. Milk Production, Million Pounds

Source: USDA/NASS: Prices Received and Milk Production.

25 NMPF/USDEC DAIRY ECONOMICS MONTH 2015 2016 2017 2018 2019 2020 2021 2022 U.S.

Average Test Jan $17.50 $16.10 $18.90 $16.20 $16.60 $19.50 $17.10 $23.90 Feb $16.90 $15.70 $18.40 $15.30 $16.80 $18.80 $16.70 $24.50 Mar $16.60 $15.30 $17.30 $15.60 $17.60 $17.80 $17.30 $25.60 Apr $16.60 $15.10 $16.50 $15.80 $17.70 $14.30 $18.30 $27.00 May $16.80 $14.50 $16.70 $16.20 $18.00 $13.60 $19.10 $27.20

$16.90 $14.80 $17.30 $16.30 $18.10 $18.10 $18.20 $26.70 Jul $16.60 $16.10 $17.20 $15.50 $18.70 $20.50 $17.80 $25.50 Aug $16.80 $17.20 $18.10 $16.10 $18.90 $18.50 $17.60 $24.10 Sep $17.60 $17.40 $17.90 $16.90 $19.30 $17.60 $18.30 $24.10 Oct $17.70 $16.70 $18.10 $17.50 $20.20 $19.80 $19.60 $25.60 Nov $18.30 $17.80 $18.20 $17.20 $21.20 $21.00 $20.70 $25.40 Dec $17.30 $18.90 $17.20 $16.60 $20.70 $18.10 $21.70 $24.50

Jan 17,682 17,671 18,140 18,431 18,612 18,875 19,368 19,050 Feb 16,169 16,900 16,698 16,976 16,966 17,900 17,690 17,540 Mar 18,077 18,404 18,758 18,988 18,847 19,395 19,801 19,715 Apr 17,795 17,956 18,357 18,425 18,435 18,665 19,354 19,147 May 18,434 18,614 18,958 19,122 19,062 18,980 19,859 19,755 Jun 17,510 17,774 18,073 18,280 18,228 18,400 18,945 18,920 Jul 17,659 17,903 18,270 18,331 18,379 18,740 19,104 19,180

17,391 17,693 18,037 18,247 18,275 18,630 18,723 19,016 Sep 16,595 16,985 17,131 17,396 17,600 18,030 18,022 18,242 Oct 17,106 17,554 17,765 17,872 18,138 18,609 18,618 18,809 Nov 16,667 17,139 17,265 17,330 17,499 18,115 18,021 18,184 Dec 17,423 17,858 18,075 18,170 18,400 18,970 18,788 18,904

All-Milk Price, Dollars Per Cwt. at

Jun

Aug

TABLE 11

Seasonality of Milk Supply and Price, 2022

Average Daily Milk Production

Source: USDA/NASS: Prices Received and Milk Production.

Price

26 NMPF/USDEC DAIRY ECONOMICS

FIGURE 7

$13.00 $15.00 $17.00 $19.00 $21.00 $23.00 $25.00 $27.00 $29.00 600 610 620 630 640 650 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Cwt. Million Pounds Per Day

Dollars Per

U.S. All-Milk

Annual Wholesale Prices of Dairy Products

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. CME Grade A beginning 2004.

27 NMPF/USDEC DAIRY ECONOMICS YEAR CME GRADE AA BUTTER¹ NCE/CME²/CHEDDAR CHEESE NONFAT DRY MILK Barrels 40 Lb Blocks West (Low/Med) Central³ (Low/Med) (Annual Average, Cents per Pound) 1975 79.4 82.6 86.6 n/a 62.9 1980 139.3 127.0 133.0 n/a 88.6 1985 141.1 117.8 121.8 n/a 84.1 1990 102.1 127.9 131.5 n/a 100.6 1995 75.6 126.3 130.4 105.5 108.6 2000 117.7 111.1 114.7 100.6 101.5 2005 154.8 144.8 149.3 94.9 98.5 2006 123.6 121.9 123.9 89.2 100.1 2007 136.8 174.1 175.8 176.2 180.4 2008 146.3 183.6 185.6 124.6 130.0 2009 124.3 125.2 129.6 94.8 99.3 2010 172.8 147.5 149.6 119.1 125.0 2011 196.2 178.7 180.6 150.9 155.3 2012 160.3 166.0 169.8 134.2 137.9 2013 155.6 171.7 176.4 172.4 174.1 2014 216.4 207.5 210.9 171.9 174.1 2015 208.9 157.6 161.0 90.3 94.3 2016 208.2 155.6 158.0 84.2 85.4 2017 232.8 153.4 161.1 87.1 87.6 2018 225.0 142.0 154.6 80.5 80.9 2019 223.0 168.9 177.8 105.6 106.1 2020 157.8 171.9 199.8 105.6 105.4 2021 174.5 156.9 171.4 130.9 132.0 2022 286.0 205.3 207.4 169.0 165.9

TABLE 12

Monthly Prices of Dairy Products on Chicago Mercantile Exchange

Source: USDA / AMS: Dairy Market Statistics

28 NMPF/USDEC DAIRY ECONOMICS MONTH GRADE AA BUTTER 40# BLOCK CHEDDAR 2021 2022 Year-Over-Year Change 2021 2022 Year-Over-Year Change (Monthly Average, Cents per Pound) (Percentage) (Monthly Average, Cents per Pound) (Percentage) Jan 135.0 272.0 101.6% 174.7 190.7 9.1% Feb 138.6 262.0 89.0% 158.2 193.8 22.5% Mar 171.5 273.5 59.4% 173.6 217.0 25.0% Apr 182.7 271.7 48.7% 179.5 234.0 30.4% May 181.2 275.1 51.8% 167.8 232.9 38.8% Jun 177.6 295.5 66.4% 149.8 219.0 46.2% Jul 169.1 295.1 74.5% 163.7 201.4 23.0% Aug 168.2 300.7 78.8% 172.2 181.0 5.2% Sep 177.6 314.8 77.3% 176.0 195.5 11.1% Oct 180.0 317.9 76.6% 178.0 202.6 13.8% Nov 197.1 286.3 45.2% 174.1 211.9 21.7% Dec 215.4 267.0 24.0% 189.3 208.6 10.2%

TABLE 13

Annual Retail Prices for Selected Dairy Products

Sources: Bureau of Labor Statistics, Department of Labor.

¹ Source: USDA / ERS Agricultural Outlook; all dairy. Beginning 2011, NMPF estimate.

29 NMPF/USDEC DAIRY ECONOMICS YEAR WHOLE MILK CHEDDAR CHEESE BUTTER ICE CREAM FARM PRICE AS PERCENT OF RETAIL¹ ($ per Gallon) ($ per Lb) ($ per Lb) ($ per Half Gallon) (Percent) 1945 $0.36 $0.51 1950 $0.52 $0.73 1955 $0.58 $0.71 1960 $0.69 $0.75 $0.87 1965 $0.75 $0.75 $0.79 1970 $1.01 $0.87 $0.85 1975 $1.54 $1.03 $1.22 1980 $2.23 $1.88 $1.82 52% 1985 $3.09 $2.12 $2.30 44% 1990 n/a $1.99 $2.60 39% 1995 $3.39 $1.61 $2.65 33% 2000 $2.78 $3.83 $2.52 $3.45 30% 2005 $3.19 $4.38 $3.28 $3.74 31% 2010 $3.26 $4.71 $3.13 $4.47 32% 2015 $3.42 $5.38 $3.86 $4.74 28% 2016 $3.20 $5.23 $3.91 $4.76 27% 2017 $3.23 $4.89 $4.03 $4.69 30% 2018 $2.90 $5.14 $4.07 $4.74 28% 2019 $3.04 $5.31 $3.98 $4.81 31% 2020 $3.32 $5.50 $3.62 $4.92 29% 2021 $3.55 $5.44 $3.58 $4.89 29% 2022 $4.09 $5.76 $4.39 $5.43 36%

TABLE 14

Farm Value of Milk as Percent of Retail Value

Sources: Bureau of Labor Statistics, Department of Labor.

30 NMPF/USDEC DAIRY ECONOMICS

FIGURE 8

25% 30% 35% 40% 2000 2005 2010 2015 2020

Cost of Production Indicators

31 NMPF/USDEC DAIRY ECONOMICS

Milk Production Costs and Returns by Herd Size, 20221

Supporting Information

Source: USDA / ERS.

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.

32 NMPF/USDEC DAIRY ECONOMICS SIZE OF OPERATION 1-99 cows 100-199 cows 200-499 cows 500-999 cows 1,0001,999 cows 2,000 or more cows (Dollars per Cwt.) Gross value of production Milk sold $27.22 $25.63 $24.78 $25.90 $25.35 $24.48 Cattle $1.72 $1.31 $1.16 $1.32 $1.38 $1.11 Other income² $1.14 $0.99 $0.84 $0.85 $0.82 $0.91 Total, gross value of production $30.08 $27.93 $26.78 $28.07 $27.55 $26.49 Operating costs Purchased feed $6.90 $7.42 $7.64 $9.64 $10.41 $11.60 Homegrown harvested feed $9.77 $7.27 $6.92 $5.27 $3.86 $2.95 Grazed feed $0.17 $0.08 $0.02 $0.04 $0.01 $0.00 Total, feed costs $16.85 $14.77 $14.58 $14.95 $14.28 $14.55 Other Operating Costs Veterinary and Medicine $0.77 $0.76 $0.93 $0.80 $0.62 $0.62 Bedding and litter $0.33 $0.34 $0.33 $0.27 $0.13 $0.11 Marketing $0.06 $0.11 $0.14 $0.20 $0.20 $0.22 Custom services $0.75 $0.90 $0.69 $0.90 $0.93 $0.73 Fuel, lube, and electricity $1.51 $1.33 $1.24 $1.03 $0.80 $0.63 Repairs $1.21 $1.03 $0.98 $0.77 $0.86 $0.52 Other operating costs³ $0.06 $0.01 $0.00 $0.00 $0.00 $0.00 Interest on operating capital $0.26 $0.23 $0.23 $0.23 $0.22 $0.21 Total, operating costs $21.79 $19.49 $19.12 $19.16 $18.03 $17.60 Allocated Overhead Hired labor $0.71 $1.34 $2.40 $2.53 $2.41 $2.17 Opportunity cost of unpaid labor $9.86 $3.82 $1.32 $0.56 $0.25 $0.08 Capital recovery of machinery and equipment⁴ $8.92 $7.03 $6.95 $4.01 $3.75 $2.64 Opportunity cost of land $0.10 $0.06 $0.04 $0.02 $0.01 $0.00 Taxes and insurance $0.40 $0.29 $0.30 $0.32 $0.20 $0.13 General farm overhead $1.03 $0.79 $0.58 $0.56 $0.49 $0.44 Total, allocated overhead $21.04 $13.35 $11.60 $8.00 $7.12 $5.46 Total, costs listed $42.83 $32.83 $30.72 $27.15 $25.14 $23.06 Value of production less total costs listed -$12.74 -$4.91 -$3.94 $0.92 $2.41 $3.44 Value of production less operating costs $8.29 $8.44 $7.66 $8.91 $9.53 $8.90

Milk cows (head per farm) 60 136 304 680 1,411 4,011 Output per cow (pounds) 17,086 19,991 23,479 24,596 24,895 22,978

TABLE 15

Share of Cash Expenses by Size of Operation, 2022

1-99 cows

200-499 cows

1,000-1,999 cows

Source: USDA / ERS. Does not show allocated

100-199 cows

500-999 cows

2,000 cows or more cows

33 NMPF/USDEC DAIRY ECONOMICS

FIGURE 9

Total Feed 74% Veterinary and Medicine 3% Fuel, Lube & Electricity 7% Repairs 5% Other Operating Costs 8% Hired Labor 3% Total Feed 70% Veterinary and Medicine 4% Fuel, Lube & Electricity 6% Repairs 5% Other Operating Costs 9% Hired Labor 6% Total Feed 67% Veterinary and Medicine 4% Fuel, Lube & Electricity 6% Repairs 4% Other Operating Costs 8% Hired Labor 11% Total Feed 68% Veterinary and Medicine 4% Fuel, Lube & Electricity 5% Repairs 4% Other Operating Costs 9% Hired Labor 12% Total Feed 69% Veterinary and Medicine 3% Fuel, Lube & Electricity 4% Repairs 4% Other Operating Costs 8% Hired Labor 12% Total Feed 73% Veterinary and Medicine 3% Fuel, Lube & Electricity 3% Repairs 3% Other Operating Costs 7% Hired Labor 11%

overhead costs, except hired labor.

U.S. Milk Production Costs and Returns

Source: USDA / ERS.

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.

34 NMPF/USDEC DAIRY ECONOMICS 2017 2018 2019 2020 2021 2022 (Dollars per Cwt.) Gross value of production Milk sold $18.25 $16.82 $19.26 $18.87 $18.44 $25.18 Cattle $1.37 $1.26 $1.23 $1.27 $1.06 $1.26 Other income¹ $0.50 $0.50 $0.53 $0.51 $0.55 $0.90 Total, gross value of production $20.11 $18.58 $21.02 $20.65 $20.05 $27.35 Operating costs Purchased feed $6.49 $6.76 $7.20 $6.93 $7.99 $9.92 Homegrown harvested feed $2.72 $3.12 $3.33 $3.11 $3.91 $4.82 Grazed feed $0.07 $0.08 $0.07 $0.07 $0.03 $0.03 Total, feed costs $9.29 $9.96 $10.60 $10.10 $11.93 $14.77 Other Operating Costs Veterinary and Medicine $0.75 $0.76 $0.78 $0.78 $0.62 $0.70 Bedding and litter $0.19 $0.20 $0.20 $0.20 $0.18 $0.20 Marketing $0.18 $0.18 $0.19 $0.18 $0.16 $0.18 Custom services $0.65 $0.66 $0.67 $0.67 $0.71 $0.80 Fuel, lube, and electricity $0.59 $0.67 $0.69 $0.58 $0.63 $0.91 Repairs $0.62 $0.64 $0.66 $0.67 $0.70 $0.77 Other operating costs² $0.00 $0.00 $0.00 $0.00 $0.01 $0.01 Interest on operating capital $0.06 $0.14 $0.14 $0.03 $0.00 $0.22 Total, operating costs $12.34 $13.21 $13.93 $13.21 $14.95 $18.57

Hired labor $1.87 $1.99 $2.10 $2.20 $1.94 $2.11 Opportunity cost of unpaid labor $1.77 $1.82 $1.88 $1.92 $1.34 $1.43 Capital recovery of machinery and equipment³ $3.86 $4.00 $4.10 $4.13 $4.00 $4.43 Opportunity cost of land $0.02 $0.03 $0.02 $0.02 $0.02 $0.02 Taxes and insurance $0.18 $0.18 $0.18 $0.18 $0.20 $0.22 General farm overhead $0.54 $0.55 $0.57 $0.58 $0.50 $0.56 Total, allocated overhead $8.24 $8.57 $8.86 $9.02 $8.01 $8.77 Total, costs listed $20.58 $21.78 $22.79 $22.24 $22.96 $27.34 Value of production less total costs listed -$0.46 -$3.20 -$1.77 -$1.59 -$2.91 $0.01 Value of production less operating costs $7.77 $5.37 $7.09 $7.44 $5.10 $8.78 Supporting information: Milk cows (head per farm) 245 245 245 245 245 283 Output per cow (pounds) 21,698 21,698 21,698 21,698 21,698 22,653

Allocated Overhead

TABLE 16

Monthly Milk-Feed Price Ratio1

Monthly Dairy Margin Coverage/Margin Protection Program

35 NMPF/USDEC DAIRY ECONOMICS YEAR JAN FEB MAR APR MAY JUN JULY AUG SEP OCT NOV DEC AVG 2000 3.07 2.94 2.88 2.84 2.72 2.97 3.31 3.37 3.36 3.12 3.05 3.04 3.06 2005 3.49 3.48 3.33 3.18 2.96 2.94 2.98 3.08 3.27 3.39 3.46 3.29 3.24 2006 3.16 2.93 2.70 2.46 2.35 2.38 2.35 2.48 2.61 2.51 2.44 2.43 2.56 2007 2.45 2.33 2.39 2.50 2.56 2.88 3.17 3.19 3.19 3.10 3.05 2.85 2.81 2008 2.65 2.24 2.07 1.95 1.83 1.87 1.90 1.81 1.90 2.02 2.01 1.92 2.01 2009 1.60 1.51 1.55 1.58 1.49 1.47 1.59 1.80 2.00 2.11 2.26 2.42 1.78 2010 2.33 2.34 2.18 2.19 2.18 2.26 2.30 2.36 2.36 2.40 2.23 1.98 2.26 2011 2.00 2.00 2.10 1.80 1.70 1.90 1.90 1.80 1.80 1.80 1.90 1.80 1.87 2012 1.71 1.55 1.48 1.41 1.34 1.37 1.33 1.37 1.59 1.74 1.74 1.65 1.52 2013 1.58 1.52 1.48 1.54 1.54 1.52 1.53 1.69 1.88 2.12 2.27 2.30 1.75 2014 2.46 2.58 2.54 2.42 2.23 2.19 2.36 2.63 2.96 2.92 2.75 2.40 2.54 2015 2.10 2.06 2.01 2.00 1.99 2.06 2.00 2.11 2.25 2.30 2.46 2.29 2.14 2016 2.18 2.18 2.12 1.99 1.90 1.92 2.16 2.44 2.49 2.38 2.59 2.73 2.26 2017 2.71 2.61 2.40 2.22 2.20 2.31 2.27 2.50 2.46 2.48 2.54 2.38 2.42 2018 2.20 2.03 1.98 1.90 1.90 1.97 1.93 2.06 2.13 2.22 2.21 2.07 2.05 2019 2.06 2.07 2.13 2.11 2.12 2.09 2.16 2.26 2.34 2.42 2.65 2.57 2.25 2020 2.42 2.35 2.25 1.85 1.77 2.37 2.7 2.52 2.3 2.51 2.6 2.19 2.32 2021 2.00 1.80 1.76 1.75 1.65 1.56 1.52 1.48 1.66 1.84 1.92 1.96 1.74 2022 2.13 2.04 2.02 1.95 1.91 1.87 1.77 1.69 1.71 1.90 1.92 1.83 1.89

TABLE 17 Sources: USDA

NASS, Agricultural Prices and USDA / AMS. ¹ Pounds of feed equal in value to one pound of whole milk ² Feed cost formula as defined in the 2014 and 2018 farm bills. YEAR JAN FEB MAR APR MAY JUN JULY AUG SEP OCT NOV DEC AVG 2000 $4.29 $4.43 $4.53 $4.60 $4.86 $4.52 $4.10 $3.95 $4.19 $4.35 $4.52 $4.78 $4.43 2001 $4.72 $4.60 $4.55 $4.63 $4.66 $4.58 $4.79 $4.79 $4.79 $4.64 $4.63 $4.70 $4.67 2002 $4.66 $4.57 $4.63 $4.65 $4.76 $4.75 $5.03 $5.31 $5.40 $5.14 $5.03 $5.03 $4.91 2003 $5.08 $5.13 $5.11 $5.17 $5.37 $5.30 $4.99 $4.96 $5.20 $5.15 $5.33 $5.37 $5.18 2004 $5.58 $5.86 $6.34 $6.66 $6.77 $6.49 $6.13 $5.38 $4.99 $4.81 $4.63 $4.64 $5.69 2005 $4.80 $4.61 $4.90 $5.00 $5.15 $5.24 $5.29 $5.03 $4.78 $4.61 $4.49 $4.80 $4.89 2006 $4.80 $4.81 $4.87 $5.03 $5.18 $5.13 $5.06 $4.91 $5.12 $5.59 $6.00 $6.08 $5.22 2007 $6.21 $6.80 $6.85 $6.77 $7.15 $7.35 $7.06 $6.95 $7.24 $7.31 $7.62 $8.21 $7.13 2008 $8.57 $9.30 $9.45 $9.94 $10.47 $11.12 $11.11 $10.71 $10.36 $8.95 $8.80 $8.46 $9.77 2009 $8.96 $8.27 $8.17 $8.32 $8.87 $9.05 $8.19 $8.04 $7.77 $7.76 $7.82 $7.81 $8.25 2010 $7.76 $7.49 $7.40 $7.33 $7.49 $7.55 $7.75 $7.97 $8.34 $8.62 $9.00 $9.42 $8.01 2011 $9.67 $10.46 $10.42 $11.50 $11.91 $11.93 $12.05 $12.64 $12.03 $11.16 $11.05 $11.03 $11.32 2012 $11.44 $11.82 $12.24 $12.58 $12.80 $12.75 $14.23 $15.12 $14.10 $13.77 $13.89 $13.72 $13.21 2013 $13.61 $13.78 $13.86 $13.50 $13.90 $14.12 $14.11 $12.81 $12.13 $10.87 $10.58 $10.94 $12.85 2014 $10.81 $11.01 $11.10 $11.65 $11.94 $11.55 $10.62 $10.36 $10.30 $9.28 $9.61 $9.74 $10.66 2015 $9.26 $9.14 $9.07 $9.02 $8.87 $8.74 $9.15 $8.76 $8.55 $8.48 $8.19 $8.10 $8.78 2016 $8.00 $7.79 $7.83 $8.17 $8.73 $9.05 $8.51 $7.84 $7.82 $7.76 $7.62 $7.70 $8.07 2017 $7.84 $7.92 $7.95 $7.95 $8.09 $7.97 $8.22 $7.73 $7.81 $7.90 $7.71 $7.84 $7.91 2018 $7.98 $8.42 $8.83 $9.18 $9.42 $8.93 $8.68 $8.47 $8.44 $8.44 $8.34 $8.55 $8.64 2019 $8.89 $8.89 $8.84 $8.88 $9.00 $9.47 $9.43 $9.05 $8.89 $9.02 $8.79 $8.75 $8.99 2020 $9.15 $9.10 $9.05 $8.56 $8.44 $8.27 $8.21 $8.11 $8.65 $9.23 $9.66 $9.96 $8.86 2021 $10.60 $11.13 $11.14 $11.63 $12.53 $12.37 $12.43 $12.67 $11.71 $11.16 $11.66 $12.27 $11.78 2022 $12.66 $13.72 $14.35 $14.81 $14.79 $14.98 $15.78 $16.22 $15.78 $15.19 $14.71 $14.94 $14.83

TABLE

Calculated Feed Cost ($ per Cwt. of milk)2

36 NMPF/USDEC DAIRY ECONOMICS

FIGURE 10 $3.00 $4.50 $6.00 $7.50 $9.00 $10.50 $12.00 $13.50 $15.00 $16.50 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 Dollars

Cwt. of Milk

FIGURE

$3.00 $4.00 $5.00 $6.00 $7.00 $8.00 $9.00 $10.00 $11.00 $12.00 $13.00 $14.00 $15.00 $16.00 $17.00 Jan Feb Mar Apr May Jun July Aug Sep Oct Nov Dec Dollars per Cwt. of Milk 2005 2010 2015 2022

Average Annual Dairy Margin Coverage/Margin Protection Program Calculated Feed Cost

per

Monthly Dairy Margin Coverage/Margin Protection Program Calculated Feed Cost

Monthly DMC/MPP Margin ($ per Cwt.)1

Source: USDA / NASS and USDA / AMS.

¹ Margin as defined in the 2014 and 2018 farm bills.

37 NMPF/USDEC DAIRY ECONOMICS

YEAR JAN FEB MAR APR MAY JUN JULY AUG SEP OCT NOV DEC AVG 2000 $7.71 $7.37 $7.27 $7.30 $7.14 $7.78 $8.50 $8.55 $8.71 $8.15 $7.98 $8.22 $7.89 2001 $8.28 $8.50 $9.35 $9.97 $10.84 $11.62 $11.41 $11.71 $12.31 $10.96 $9.77 $8.80 $10.30 2002 $8.94 $8.53 $7.97 $7.85 $7.34 $6.75 $6.07 $5.99 $6.20 $6.96 $6.87 $6.87 $7.19 2003 $6.72 $6.17 $5.89 $5.83 $5.63 $5.70 $7.11 $8.34 $9.30 $9.85 $9.07 $8.43 $7.34 2004 $7.62 $7.74 $9.16 $11.44 $12.53 $11.71 $9.97 $9.52 $10.51 $10.79 $11.57 $11.76 $10.37 2005 $11.30 $10.79 $10.60 $10.20 $9.55 $9.16 $9.51 $9.77 $10.52 $10.89 $10.61 $10.00 $10.24 2006 $9.60 $8.69 $7.73 $6.97 $6.72 $6.77 $6.64 $7.09 $7.88 $7.91 $7.90 $8.12 $7.66 2007 $8.29 $8.10 $8.75 $9.73 $10.85 $12.85 $14.54 $14.65 $14.56 $14.09 $14.28 $13.29 $12.02 2008 $11.93 $9.80 $8.65 $8.16 $7.93 $8.18 $8.29 $7.69 $7.84 $8.85 $8.30 $7.04 $8.55 2009 $4.34 $3.33 $3.53 $3.58 $2.73 $2.25 $3.11 $4.06 $5.23 $6.54 $7.58 $8.69 $4.59 2010 $8.34 $8.31 $7.40 $7.27 $7.51 $7.85 $8.15 $8.73 $9.36 $9.88 $8.90 $7.28 $8.25 2011 $7.03 $8.64 $9.98 $8.10 $7.69 $9.17 $9.75 $9.46 $9.07 $8.84 $9.45 $8.67 $8.82 2012 $7.46 $5.78 $4.96 $4.22 $3.40 $3.45 $2.67 $3.08 $5.60 $7.83 $8.21 $7.08 $5.31 2013 $6.39 $5.72 $5.24 $6.00 $5.80 $5.38 $4.99 $6.79 $7.97 $10.03 $11.02 $11.06 $7.21 2014 $12.69 $13.79 $14.10 $13.65 $12.26 $11.65 $12.68 $13.74 $15.40 $15.62 $13.39 $10.66 $13.30 2015 $8.34 $7.66 $7.53 $7.48 $7.83 $8.16 $7.45 $7.94 $8.95 $9.22 $10.01 $9.10 $8.31 2016 $8.10 $7.91 $7.47 $6.83 $5.77 $5.75 $7.59 $9.26 $9.48 $8.84 $9.98 $11.10 $8.18 2017 $11.06 $10.58 $9.35 $8.55 $8.61 $9.33 $9.08 $10.27 $9.99 $10.00 $10.39 $9.36 $9.71 2018 $8.12 $6.88 $6.77 $6.62 $6.78 $7.37 $6.72 $7.43 $8.26 $8.96 $8.66 $7.85 $7.54 2019 $7.71 $7.91 $8.66 $8.82 $9.00 $8.63 $9.27 $9.85 $10.41 $10.88 $12.21 $11.95 $9.62 2020 $10.45 $9.80 $8.95 $5.84 $5.16 $9.83 $12.29 $10.69 $9.26 $10.97 $11.64 $8.54 $9.45 2021 $6.90 $5.97 $6.26 $6.77 $6.67 $6.03 $5.47 $5.03 $6.69 $8.54 $9.14 $9.53 $6.92 2022 $11.54 $10.98 $11.55 $12.29 $12.51 $11.92 $9.92 $8.08 $8.62 $10.71 $10.89 $9.76 $10.73

TABLE 19

38 NMPF/USDEC DAIRY ECONOMICS Average

FIGURE 12 Monthly

FIGURE 13 $4.00 $6.00 $8.00 $10.00 $12.00 $14.00 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 Dollars

Annual Dairy Margin Coverage/Margin Protection Program Margin

Dairy Margin Coverage/Margin Protection Program Margin

per Cwt.

$7.00 $8.00 $9.00 $10.00 $11.00 $12.00 $13.00 Jan Feb Mar Apr May Jun July Aug Sep Oct Nov Dec Dollars per Cwt. 2022 2021 5-Year Average

$5.00 $6.00

Average Prices Received for Livestock

39 NMPF/USDEC DAIRY ECONOMICS MARKETING YEAR BEEF AND DAIRY COWS STEERS AND HEIFERS¹ ALL CATTLE¹ ALL CALVES REPLACEMENT MILK COWS (Dollars per Cwt.) (Dollars per Head) 1975 $19.80 $36.30 $32.30 $27 $412 1980 $45.70 $66.90 $62.40 $77 $1,190 1985 $36.50 $57.70 $53.70 $62 $860 1990 $51.50 $78.80 $74.60 $96 $1,160 1995 $35.70 $65.10 $61.80 $73 $1,130 2000 $37.90 $72.30 $68.60 $104 $1,340 2001 $40.90 $75.10 $71.30 $106 $1,500 2002 $37.30 $70.10 $66.50 $96 $1,600 2003 $42.90 $84.20 $79.70 $102 $1,340 2004 $50.30 $90.20 $85.80 $119 $1,580 2005 $51.70 $94.30 $89.70 $135 $1,770 2006 $46.60 $92.30 $87.20 $133 $1,730 2007 $47.90 $95.40 $89.90 $119 $1,830 2008 $50.60 $94.50 $89.10 $110 $1,950 2009 $44.80 $85.40 $80.30 $105 $1,390 2010 $54.80 $97.70 $92.20 $117 $1,330 2011 $71.20 $117.00 $113.00 $142 $1,420 2012 $81.70 $123.00 $121.00 $172 $1,430 2013 $82.30 $126.00 $125.00 $181 $1,380 2014 $107.00 $153.00 $152.00 $261 $1,830 2015 $103.00 $148.00 $147.00 $247 $1,990 2016 $74.30 $121.00 $119.00 $158 $1,760 2017 $69.10 $122.00 $120.00 $168 $1,620 2018 $63.50 $117.00 $115.00 $170 $1,360 2019 $62.00 $118.00 $116.00 $159 $1,200 2020 $64.20 $111.00 $109.00 $161 $1,300 2021 $70.20 $124.00 $121.00 $171 $1,360 2022 $83.70 $145.00 $142.00 $195 $1,590

TABLE 20 Source: USDA / NASS, Agricultural Prices. ¹ At least 500 pounds

Average Price Received for Replacement Milk Cows

40 NMPF/USDEC DAIRY ECONOMICS

FIGURE 14

$1,100 $1,200 $1,300 $1,400 $1,500

2000 2005 2010 2015 2020 Dollars Per Head

$1,000

$1,600 $1,700 $1,800 $1,900 $2,000

Average Prices Received for Crops

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 per ton: 2019: $213; 2020: $202; 2021: $234; 2022: $312. Soybean meal prices are calendar year averages of high protein soybean meal at Decatur-Central Illinois as reported by USDA/AMS. Unavailable prior to 2000.

41 NMPF/USDEC DAIRY ECONOMICS MARKETING YEAR¹ CORN (BU) OATS (BU) BARLEY (BU) SOYBEANS (BU) SOYBEAN MEAL (TON) ALFALFA HAY² (DRY TON) (Dollars per Unit) 1975 $2.54 $1.45 $2.42 $4.92 n/a $52.10 1980 $3.11 $1.72 $2.79 $7.60 n/a $71.00 1985 $2.23 $1.23 $1.98 $5.05 n/a $67.60 1990 $2.28 $1.14 $2.14 $5.74 n/a $86.60 1995 $3.24 $1.67 $2.89 $6.72 n/a $87.20 2000 $1.85 $1.10 $2.11 $4.54 $174.62 $88.90 2005 $2.00 $1.63 $2.53 $5.66 $188.17 $104.00 2006 $3.04 $1.87 $2.85 $6.43 $175.60 $113.00 2007 $4.20 $2.63 $4.02 $10.10 $230.40 $137.00 2008 $4.06 $3.15 $5.37 $9.97 $331.09 $165.00 2009 $3.55 $2.02 $4.66 $9.59 $347.74 $113.00 2010 $5.18 $2.52 $3.86 $11.30 $313.47 $123.00 2011 $6.22 $3.49 $5.35 $12.50 $335.07 $196.00 2012 $6.89 $3.89 $6.43 $14.40 $439.77 $211.00 2013 $4.46 $3.75 $6.06 $13.00 $466.54 $199.00 2014 $3.70 $3.21 $5.30 $10.10 $478.26 $196.00 2015 $3.61 $2.12 $5.52 $8.95 $341.20 $158.00 2016 $3.36 $2.06 $4.96 $9.47 $328.64 $136.00 2017 $3.36 $2.59 $4.47 $9.33 $315.00 $154.00 2018 $3.61 $2.66 $4.62 $8.48 $344.35 $180.00 2019 $3.56 $2.82 $4.69 $8.57 $305.78 $179.00 2020 $4.53 $2.77 $4.75 $10.80 $319.55 $171.00 2021 $6.00 $4.55 $5.31 $13.30 $386.46 $216.00 2022 $6.54 $4.57 $7.40 $14.20 $465.03 $273.00

TABLE 21

Crop Production

Source: USDA / NASS: Crop Production Annual.

42 NMPF/USDEC DAIRY ECONOMICS YEAR CORN SOYBEANS ALL WHEAT OATS BARLEY SORGHUM (Million Bushels) 1975 5,841 1,548 2,127 639 379 754 1980 6,639 1,798 2,381 459 361 579 1985 8,875 2,099 2,424 518 590 1,120 1990 7,934 1,926 2,730 358 422 573 1995 7,400 2,174 2,183 161 359 459 2000 9,915 2,758 2,228 149 318 471 2005 11,112 3,068 2,103 115 212 393 2010 12,425 3,331 2,163 82 180 345 2011 12,314 3,097 1,993 50 155 213 2012 10,755 3,042 2,252 61 219 248 2013 13,831 3,357 2,135 65 217 392 2014 14,217 3,928 2,026 70 182 433 2015 13,602 3,927 2,062 89 218 597 2016 15,148 4,296 2,309 65 200 480 2017 14,609 4,412 1,741 50 143 362 2018 14,340 4,428 1,885 56 154 365 2019 13,620 3,552 1,932 53 172 341 2020 14,111 4,216 1,828 66 171 373 2021 15,074 4,465 1,646 40 120 448 2022 13,715 4,270 1,650 58 175 188 2019 $3.56 $2.82 $4.69 $8.57 $305.78 $179.00 2020 $4.53 $2.77 $4.75 $10.80 $319.55 $171.00 2021 $6.00 $4.55 $5.31 $13.30 $386.46 $216.00 2022 $6.54 $4.57 $7.40 $14.20 $465.03 $273.00

TABLE 22

Scope of Federal Milk Marketing Orders

43 NMPF/USDEC DAIRY ECONOMICS

Federal Market Order Statistics by Market, 2022

Source: USDA / AMS

44 NMPF/USDEC DAIRY ECONOMICS FEDERAL ORDER ORDER NUMBER PRODUCER DELIVERIES UTILIZATION UNIFORM PRICE AT 3.5% BF Class I Class II Class III Class IV (Million #) (Percent) Northeast (Boston) 1 26,882 30% 24% 29% 18% $24.98 Appalachian (Charlotte) 5 5,420 70% 13% 8% 8% $26.39 Florida (Tampa) 6 2,483 83% 14% 2% 1% $28.36 Southeast (Atlanta) 7 3,913 72% 19% 5% 4% $26.90 Upper Midwest (Chicago) 30 31,837 7% 1% 91% 1% $22.11 Central (Kansas City) 32 15,638 28% 7% 53% 12% $23.13 Mideast (Cleveland) 33 16,796 37% 9% 49% 5% $23.49 California (Los Angeles) 51 22,439 21% 5% 65% 8% $23.13 Pacific Northwest (Seattle) 124 7,583 21% 5% 47% 26% $23.30 Southwest (Dallas) 126 13,714 28% 6% 60% 6% $23.69 Arizona (Phoenix) 131 4,910 27% 14% 29% 30% $24.28 All Markets Average or Total 151,614 27% 9% 54% 10% $23.68

TABLE

Measures of Growth in Federal Milk Marketing Orders

Source: USDA / AMS, Dairy Market Statistics.

¹ Includes California order, effective November 1, 2018

45 NMPF/USDEC DAIRY ECONOMICS YEAR NUMBER OF FMMO DELIVERIES (BILLION POUNDS) PRICE AT 3.5% BF ($ PER CWT.) Markets Handlers Producers Producer Deliveries % of U.S. Production Used in Class I % Class I Utilization Class I Blend 1950 39 1,101 156,584 18.7 25.2% 11.0 58.9% $4.51 $3.93 1955 63 1,483 188,611 28.9 31.8% 18.0 62.3% $4.67 $4.08 1960 80 2,259 189,816 44.8 43.1% 28.8 64.2% $4.88 $4.47 1965 73 1,891 158,077 54.4 48.3% 34.6 63.5% $4.93 $4.31 1970 62 1,588 143,411 65.1 59.2% 40.1 61.5% $6.74 $5.95 1975 56 1,315 123,855 69.2 62.8% 40.1 57.9% $9.36 $8.64 1980 47 1,091 117,490 84.0 67.4% 41.0 48.9% $13.77 $12.86 1985 44 884 116,765 97.8 70.2% 42.2 43.2% $13.88 $12.61 1990 42 753 100,397 102.4 70.5% 43.8 42.8% $15.55 $13.78 1995 33 571 88,717 108.5 71.1% 45.0 41.5% $14.19 $12.79 2000 11 346 69,585 116.9 69.8% 46.0 39.3% $14.24 $12.11 2005 10 302 53,032 114.7 64.8% 44.6 38.9% $17.13 $15.07 2006 10 314 52,721 120.6 66.4% 45.3 37.6% $14.59 $12.86 2007 10 312 49,777 114.4 61.6% 45.2 39.5% $20.81 $19.19 2008 10 333 47,854 115.9 61.0% 45.0 38.8% $20.78 $18.24 2009 10 251 46,671 123.4 65.2% 45.3 36.7% $14.40 $12.44 2010 10 251 45,918 126.9 65.8% 45.0 35.4% $18.25 $16.07 2011 10 241 43,650 126.9 64.7% 44.4 35.0% $21.97 $19.87 2012 10 237 40,745 122.4 61.0% 43.5 35.5% $20.39 $18.05 2013 10 225 40,043 132.1 65.6% 42.7 32.4% $21.80 $19.44 2014 10 223 39,146 129.4 62.8% 41.4 32.0% $26.14 $23.54 2015 10 214 36,112 126.1 60.5% 41.2 32.7% $19.21 $16.70 2016 10 216 34,689 133.8 63.0% 41.1 30.7% $17.70 $15.38 2017 10 217 32,981 135.5 62.9% 40.6 30.0% $19.31 $16.96 20181 11 233 32,061 141.7 65.1% 40.9 28.9% $17.70 $15.51 2019 11 230 29,474 156.5 71.7% 43.9 28.0% $19.74 $17.35 2020 11 228 24,906 137.8 61.7% 43.8 31.8% $19.70 $16.12 2021 11 226 23,292 136.8 60.5% 42.1 30.8% $19.56 $17.33 2022 11 213 23,108 151.6 66.9% 41.0 27.0% $26.38 $23.68

TABLE 24

Sales and Butterfat Content of Fluid Milk Products in Federal Milk Marketing Orders1

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.

46 NMPF/USDEC DAIRY ECONOMICS YEAR WHOLE MILK ITEMS SKIM, LOW AND REDUCED FAT ITEMS ALL FLUID BEVERAGE % of Total Fluid Sales Average BF Test % of Total Fluid Sales Average BF Test Average BF Test (Percent) 1960 89.3% 3.57% 7.7% 1.12% 3.38% 1965 86.4% 3.52% 11.1% 1.36% 3.28% 1970 77.0% 3.46% 21.1% 1.54% 3.05% 1975 68.8% 3.37% 29.2% 1.46% 2.75% 1980 59.4% 3.32% 38.5% 1.49% 2.60% 1985 50.4% 3.31% 44.9% 1.53% 2.47% 1990 37.6% 3.27% 57.0% 1.44% 2.13% 1995 33.4% 3.27% 62.9% 1.33% 2.00% 2000 33.6% 3.27% 62.0% 1.32% 1.98% 2005 30.6% 3.27% 63.1% 1.33% 1.94% 2006 29.5% 3.30% 64.2% 1.30% 1.93% 2007 30.0% 3.27% 68.6% 1.29% 1.88% 2008 28.7% 3.27% 69.9% 1.29% 1.85% 2009 28.3% 3.27% 71.7% 1.29% 1.84% 2010 27.3% 3.27% 72.7% 1.31% 1.81% 2011 27.1% 3.28% 72.9% 1.33% 1.80% 2012 27.1% 3.28% 72.9% 1.34% 1.79% 2013 27.8% 3.29% 72.2% 1.35% 1.82% 2014 28.6% 3.29% 71.4% 1.37% 1.85% 2015 30.7% 3.25% 69.3% 1.37% 1.95% 2016 32.6% 3.25% 67.4% 1.39% 2.00% 2017 34.2% 3.25% 65.8% 1.40% 2.05% 2018 35.6% 3.25% 64.4% 1.42% 2.08% 2019 36.9% 3.25% 63.1% 1.44% 2.12% 2020 38.0% 3.25% 62.0% 1.49% 2.17% 2021 37.8% 3.25% 62.2% 1.48% 2.17% 2022 39.2% 3.25% 60.8% 1.48% 2.20%

TABLE 25

Average Butterfat Content of Fluid Milk Products1

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.

47 NMPF/USDEC DAIRY ECONOMICS

FIGURE 15

1.5% 2.0% 2.5% 3.0% 3.5% 1960 1970 1980 1990 2000 2010 2020

Dairy Product Consumption and Production

48 NMPF/USDEC DAIRY ECONOMICS

Annual Commercial Disappearance of Dairy Products, Million Pounds, Milk Equivalent, Total Milk Solids Basis

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

Excludes commercial exports beginning 1995

¹ Excludes whey values

²Includes skim milk powder

49 NMPF/USDEC DAIRY ECONOMICS YEAR FLUID MILK BUTTER CHEESE¹ FROZEN PRODUCTS NON-FAT DRY MILK² OTHER PRODUCTS TOTAL MILK 1970 48,329 7,944 11,816 8,084 6,686 25,863 108,481 1975 47,870 8,409 15,416 8,692 4,741 22,209 111,872 1980 46,908 7,772 19,353 8,620 3,666 27,415 118,097 1985 47,149 8,121 23,980 9,651 2,959 31,489 128,084 1990 46,378 8,092 30,366 9,786 4,748 38,175 142,199 1995 47,507 7,849 32,072 10,693 7,282 48,569 153,972 2000 48,855 8,395 38,247 11,413 6,010 53,232 166,152 2005 48,253 8,994 42,676 10,934 12,420 60,134 183,410 2010 47,998 10,692 47,586 10,883 14,302 65,044 196,506 2011 47,120 11,794 48,623 10,550 14,815 67,145 200,049 2012 46,382 11,988 49,556 10,812 16,395 68,820 203,951 2013 45,286 12,489 50,385 10,502 16,510 70,565 205,736 2014 44,084 12,328 52,253 10,319 16,919 73,096 208,998 2015 43,563 12,019 53,504 10,753 17,640 75,636 213,115 2016 43,308 12,217 55,222 10,709 17,439 78,826 217,719 2017 42,291 12,293 56,778 10,539 17,221 79,647 218,768 2018 41,345 13,091 58,246 10,277 17,875 82,123 222,958 2019 40,696 13,252 58,759 10,539 18,500 82,042 223,787 2020 40,683 13,700 58,471 10,583 19,606 83,909 226,952 2021 38,876 14,198 60,746 10,326 20,610 86,762 231,518 2022 37,768 13,521 61,580 10,382 19,256 89,384 231,891

TABLE 26

Per Capita Commercial Disappearance of Dairy Products

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

Excludes commercial exports beginning 1995.

¹ Excludes whey values

50 NMPF/USDEC DAIRY ECONOMICS YEAR FLUID MILK CHEESE¹ TOTAL PRODUCTS (ME Lbs) % Change (ME Lbs) % Change (ME Lbs) % Change 1970 236.9 0.8% 58.2 -6.9% 531.8 8.8% 1975 222.2 0.1% 72.2 -1.5% 519.2 -0.4% 1980 206.4 -2.3% 88.0 1.8% 519.7 -1.7% 1985 197.7 0.7% 100.6 4.7% 537.1 1.4% 1990 185.4 -2.1% 121.4 3.1% 568.5 0.0% 1995 178.2 2.8% 120.3 -0.7% 560.6 -2.1% 2000 173.1 -0.8% 135.5 4.1% 588.9 1.0% 2005 163.3 -0.5% 144.4 1.4% 620.6 3.3% 2010 155.2 -1.9% 153.8 2.4% 635.3 1.3% 2011 151.2 -2.5% 156.1 1.4% 642.0 1.1% 2012 147.8 -2.3% 157.9 1.2% 649.8 1.2% 2013 143.3 -3.0% 159.4 1.0% 650.9 0.2% 2014 138.5 -3.4% 164.1 2.9% 656.4 0.8% 2015 135.8 -1.9% 166.8 1.6% 664.4 1.2% 2016 134.0 -1.3% 170.9 2.5% 673.9 1.4% 2017 130.1 -3.0% 174.6 2.2% 672.9 -0.2% 2018 126.5 -2.7% 178.2 2.0% 682.2 1.4% 2019 123.9 -2.0% 179.0 0.4% 681.6 -0.1% 2020 122.7 -1.0% 176.4 -1.4% 684.6 0.4% 2021 117.1 -4.6% 183.0 3.7% 697.3 1.9% 2022 113.3 -3.2% 184.8 1.0% 695.8 -0.2%

TABLE 27

Share of Commercial Disappearance by Product

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

¹ Excludes whey values

² Includes skim milk powder

51 NMPF/USDEC DAIRY ECONOMICS YEAR FLUID MILK BUTTER CHEESE¹ FROZEN PRODUCTS NONFAT DRY MILK² OTHER PRODUCTS 1970 44.6% 7.3% 10.9% 11.5% 6.2% 23.8% 1975 42.8% 7.5% 13.8% 11.8% 4.2% 24.2% 1980 39.7% 6.6% 16.4% 11.0% 3.1% 23.2% 1985 36.8% 6.3% 18.7% 11.2% 2.3% 24.6% 1990 32.6% 5.7% 21.4% 10.2% 3.3% 26.8% 1995 31.8% 5.3% 21.5% 10.5% 4.9% 31.5% 2000 30.3% 5.2% 23.7% 7.1% 3.7% 33.0% 2005 27.4% 5.1% 24.3% 6.2% 7.1% 34.2% 2010 25.0% 5.6% 24.7% 5.7% 7.4% 33.8% 2011 24.0% 6.0% 24.7% 5.4% 7.5% 34.2% 2012 23.2% 6.0% 24.8% 5.4% 8.2% 34.4% 2013 22.2% 6.1% 24.7% 5.1% 8.1% 34.6% 2014 21.4% 6.0% 25.4% 5.0% 8.2% 35.5% 2015 20.8% 5.8% 25.6% 5.1% 8.4% 36.2% 2016 20.3% 5.7% 25.9% 5.0% 8.2% 37.0% 2017 19.4% 5.6% 26.1% 4.8% 7.9% 36.6% 2018 18.9% 6.0% 26.6% 4.7% 8.2% 37.5% 2019 18.3% 5.9% 26.4% 4.7% 8.3% 36.8% 2020 18.2% 6.1% 26.1% 4.7% 8.8% 37.5% 2021 17.1% 6.3% 26.8% 4.5% 9.1% 38.2% 2022 16.3% 5.8% 26.6% 4.5% 8.3% 38.6%

TABLE 28

Share of Commercial Disappearance by Product

52 NMPF/USDEC DAIRY ECONOMICS

FIGURE 16 1980 2022 Fluid Milk 40% Butter 7% Cheese 16% Frozen Products 11% Nonfat Dry Milk 3% Other Products 23% Fluid Milk 16% Butter 6% Cheese 27% Frozen Products 4% Nonfat Dry Milk 8% Other Products 39%

Fluid Milk Sales for Beverage Products

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

53 NMPF/USDEC DAIRY ECONOMICS YEAR PLAIN WHOLE FLAVORED WHOLE PLAIN LAWFAT PLAIN SKIM FLAVORED LOWFAT/ SKIM BUTTERMILK TOTAL BEVERAGE MILK Million Lbs 1970 41,363 1,144 6,082 2,368 611 1,130 52,698 1975 36,188 1,366 11,468 2,480 719 1,011 53,308 1980 31,253 1,075 15,918 2,636 1,197 927 53,101 1985 27,760 882 19,812 3,009 1,430 1,046 54,060 1990 21,333 691 24,509 5,702 1,657 879 54,894 1995 18,662 704 24,202 8,359 1,914 739 54,692 2000 18,696 925 23,697 8,348 2,736 623 55,240 2005 16,919 743 24,286 8,028 3,655 522 54,544 2010 14,412 551 26,598 8,385 3,981 454 54,870 2011 14,042 520 26,612 8,216 3,898 471 53,938 2012 13,854 519 26,460 7,740 3,853 477 53,083 2013 13,784 567 25,982 7,093 3,825 496 51,923 2014 13,848 534 25,218 6,318 3,781 486 50,368 2015 14,450 572 24,478 5,635 3,827 514 49,648 2016 15,241 613 23,862 5,014 3,915 512 49,349 2017 15,621 656 22,907 4,410 3,978 501 48,269 2018 15,901 708 22,110 3,966 3,830 478 47,235 2019 16,123 780 21,352 3,543 3,746 445 46,417 2020 16,652 766 21,648 3,068 2,876 421 46,366 2021 15,813 810 20,065 2,692 3,361 454 44,517 2022 16,020 765 18,874 2,461 3,466 450 43,448

TABLE 29

Per Capita Fluid Milk Sales: Selected Products

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

54 NMPF/USDEC DAIRY ECONOMICS YEAR WHOLE MILK LOWFAT/SKIM MILK TOTAL BEVERAGE MILK (Pounds) (Gallons) (Pounds) (Gallons) (Pounds) (Gallons) 1970 207.3 24.0 44.2 5.1 257.0 29.8 1975 173.9 20.2 67.9 7.9 246.8 28.6 1980 142.0 16.5 86.7 10.0 233.2 27.0 1985 120.1 13.9 101.7 11.8 226.7 26.3 1990 88.0 10.2 127.4 14.7 219.5 25.4 1995 72.7 8.4 129.3 15.0 205.2 23.8 2000 69.5 8.1 123.2 14.3 195.6 22.7 2005 59.6 6.9 121.4 14.1 184.2 21.3 2010 46.6 5.4 113.1 13.1 177.4 20.6 2011 45.1 5.2 111.8 13.0 173.1 20.1 2012 44.1 5.1 109.0 12.6 169.1 19.6 2013 43.6 5.1 104.6 12.1 164.3 19.0 2014 43.5 5.0 99.0 11.5 158.2 18.3 2015 45.1 5.2 93.9 10.9 154.8 17.9 2016 47.2 5.5 89.4 10.4 152.8 17.7 2017 48.0 5.6 84.0 9.7 148.5 17.2 2018 48.7 5.6 79.8 9.2 144.5 16.7 2019 49.1 5.7 75.8 8.8 141.4 16.4 2020 50.2 5.8 74.6 8.6 139.9 16.2 2021 47.6 5.5 68.5 7.9 134.1 15.5 2022 48.1 5.6 64.0 7.4 130.4 15.1

TABLE 30

Fluid Milk Sales for Cream/Other Products

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

Note:

55 NMPF/USDEC DAIRY ECONOMICS YEAR HALF AND HALF LIGHT CREAM HEAVY CREAM SOUR CREAM/ DIP EGGNOG YOGURT TOTAL CREAM & BEVERAGE PER CAPITA (Million Lbs) (Lbs) 1970 591 76 111 222 61 169 53,928 264.4 1975 514 87 119 350 76 425 54,803 254.3 1980 551 55 159 408 95 570 54,844 241.4 1985 714 85 243 544 121 940 56,586 237.8 1990 739 88 324 625 123 974 57,644 230.9 1995 831 95 402 767 112 1,646 58,423 219.4 2000 1,008 743 914 127 1,837 60,031 212.8 2001 1,146 797 990 125 2,003 59,994 210.5 2002 1,860 1,031 150 2,311 60,433 210.1 2003 2,151 935 153 2,507 60,592 208.9 2004 2,313 987 147 2,707 60,702 207.3 2005 2,352 1,034 147 3,058 61,476 208.0 2006 2,459 1,121 151 3,301 62,010 207.8 2007 2,475 1,135 141 3,476 62,020 205.9 2008 2,530 1,151 143 3,570 61,973 203.8 2009 2,660 1,195 142 3,839 62,677 204.3 2010 2,755 1,228 141 4,181 63,175 204.2 2011 2,835 1,255 141 4,271 62,440 200.4 2012 2,910 1,281 134 4,417 61,826 197.0 2013 2,900 1,281 133 4,715 60,953 192.9 2014 2,965 1,303 132 4,757 59,524 187.0 2015 3,025 1,326 126 4,646 58,769 183.3 2016 3,155 1,374 134 4,458 58,470 181.1 2017 3,190 1,387 146 4,478 57,470 176.8 2018 3,175 1,401 124 4,453 56,387 172.6 2019 N/A 1,424 121 4,378 N/A N/A 2020 N/A 1,461 132 4,510 N/A N/A 2021 N/A 1,493 141 4,744 N/A N/A 2022 N/A 1,496 127 4,624 N/A N/A

TABLE 31

no longer separated, beginning 2002. Total

Light and heavy cream no longer separated, beginning 2000. Cream and half and half

includes miscellaneous fluid milk products, beginning 2003.

Per Capita Sales of Fluid Milk

56 NMPF/USDEC DAIRY ECONOMICS

FIGURE 16 0 5 10 15 20 25 30 1970 1995 2012 2017 2022 Gallons of Milk Total Beverage Milk Lowfat/Skim Milk Whole Milk

Cheese Production, Selected Varieties

57 NMPF/USDEC DAIRY ECONOMICS YEAR AMERICAN ITALIAN SWISS ALL OTHER TOTAL CHEESE CHEDDAR OTHER TOTAL MOZZARELLA OTHER TOTAL (Million Pounds) 1970 1,182 241 1,423 N/A N/A 394 144 240 2,201 1975 1,205 450 1,655 458 214 672 174 311 2,811 1980 1,751 625 2,376 689 294 983 219 407 3,984 1985 2,292 564 2,855 1,104 387 1,491 223 512 5,081 1990 2,380 514 2,894 1,730 477 2,207 261 697 6,059 1995 2,415 716 3,131 2,125 550 2,674 222 889 6,917 2000 2,819 823 3,642 2,635 654 3,289 220 1,107 8,258 2005 3,046 762 3,808 3,019 784 3,803 300 1,238 9,149 2006 3,124 789 3,913 3,144 828 3,973 314 1,325 9,525 2007 3,057 821 3,877 3,330 869 4,199 314 1,387 9,777 2008 3,186 922 4,109 3,223 898 4,121 294 1,389 9,913 2009 3,205 997 4,203 3,268 913 4,181 322 1,369 10,074 2010 3,235 1,054 4,289 3,479 936 4,416 336 1,402 10,443 2011 3,096 1,130 4,227 3,574 1,011 4,585 329 1,454 10,595 2012 3,143 1,212 4,355 3,615 1,018 4,633 321 1,578 10,886 2013 3,190 1,230 4,420 3,700 1,035 4,735 294 1,652 11,102 2014 3,317 1,271 4,588 3,925 1,025 4,950 298 1,676 11,512 2015 3,393 1,301 4,694 3,989 1,093 5,082 312 1,743 11,831 2016 3,434 1,334 4,769 4,118 1,187 5,304 312 1,796 12,182 2017 3,721 1,351 5,072 4,167 1,228 5,395 317 1,856 12,640 2018 3,802 1,452 5,254 4,366 1,203 5,570 332 1,882 13,037 2019 3,737 1,495 5,232 4,495 1,176 5,671 338 1,896 13,137 2020 3,829 1,510 5,338 4,444 1,168 5,612 325 1,964 13,240 2021 3,971 1,644 5,615 4,497 1,272 5,769 330 2,047 13,761 2022 3,964 1,677 5,640 4,628 1,276 5,904 351 2,168 14,063

TABLE 32

Per Capita Cheese Consumption, Selected Varieties

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

58 NMPF/USDEC DAIRY ECONOMICS YEAR AMERICAN ITALIAN SWISS ALL OTHER TOTAL CHEESE CONSUMED AS CHEDDAR TOTAL MOZZARELLA TOTAL PROCESSED NATURAL (Pounds) 1970 5.79 7.00 1.19 2.05 0.88 1.44 11.37 4.42 6.95 1975 6.04 8.15 2.11 3.23 1.09 1.80 14.27 5.18 9.10 1980 6.84 9.62 3.01 4.42 1.32 2.16 17.52 5.52 12.01 1985 9.77 12.19 4.60 6.41 1.28 2.66 22.54 6.06 16.48 1990 9.05 11.13 6.88 8.92 1.35 3.21 24.61 6.81 17.80 1995 9.04 11.69 7.89 10.03 1.09 4.13 26.94 7.01 19.93 2000 9.88 12.70 9.06 11.42 1.02 4.68 29.82 6.47 23.35 2005 10.16 12.66 9.93 12.66 1.24 5.02 31.58 5.97 25.62 2006 10.43 13.07 10.11 12.93 1.23 5.20 32.43 6.06 26.37 2007 10.11 12.79 10.66 13.58 1.24 5.33 32.94 5.88 27.07 2008 10.22 13.13 10.10 13.06 1.10 5.10 32.39 5.62 26.77 2009 10.24 13.36 10.08 13.03 1.16 4.93 32.48 5.49 26.99 2010 10.06 13.30 10.58 13.54 1.18 4.90 32.92 5.20 27.72 2011 9.59 13.04 10.83 13.98 1.14 5.08 33.24 5.29 27.95 2012 9.59 13.26 10.69 13.80 1.09 5.37 33.52 5.23 28.29 2013 9.65 13.35 10.74 13.83 1.00 5.50 33.68 5.06 28.62 2014 9.86 13.66 11.17 14.20 1.02 5.55 34.43 5.91 28.52 2015 10.18 14.04 11.28 14.48 1.05 5.82 35.39 5.86 29.53 2016 10.40 14.36 11.74 15.23 1.06 6.05 36.70 5.61 31.10 2017 11.09 15.09 11.61 15.12 1.05 5.99 37.25 5.73 31.51 2018 11.22 15.40 12.21 15.71 1.08 6.06 38.25 5.73 32.52 2019 11.16 15.54 12.48 15.88 1.12 6.07 38.60 5.75 32.85 2020 11.13 15.55 12.19 15.51 1.04 6.11 38.22 5.51 32.71 2021 11.52 16.20 12.31 15.88 1.04 6.45 39.56 6.79 32.78 2022 11.37 16.20 12.55 16.14 1.08 6.73 40.14 6.79 33.35

TABLE 33

Production of Butter, NFDM and Other Products

Source: USDA / ERS: Dairy Products.

¹ Cottage cheese curd production.

59 NMPF/USDEC DAIRY ECONOMICS YEAR BUTTER NFDM AND SMP DRY WHOLE MILK DRY BUTTERMILK MILK PROTEIN CONCENTRATE DRY WHEY WHEY PROTEIN CONCENTRATE COTTAGE CHEESE¹ (Million Lbs) 1970 1,137 1,444 69 60 N/A 621 n/a 726 1975 984 1,001 63 43 N/A 596 n/a 701 1980 1,145 1,161 83 44 N/A 690 n/a 667 1985 1,248 1,390 119 52 N/A 987 105 599 1990 1,302 879 175 56 N/A 1,143 168 493 1995 1,264 1,233 171 55 N/A 1,147 294 459 2000 1,256 1,452 111 56 N/A 1,188 334 461 2005 1,347 1,533 32 66 N/A 1,041 384 469 2010 1,564 1,816 71 82 89 1,013 428 433 2011 1,810 1,945 66 100 94 1,010 431 424 2012 1,860 2,145 58 109 102 999 459 424 2013 1,863 2,109 72 119 102 953 498 389 2014 1,855 2,308 103 111 126 870 540 381 2015 1,850 2,269 109 98 157 978 493 401 2016 1,839 2,312 98 110 126 955 468 406 2017 1,847 2,365 122 113 139 1,035 489 390 2018 1,968 2,338 144 118 147 999 514 402 2019 1,994 2,424 141 118 162 978 491 391 2020 2,146 2,647 138 127 206 959 478 379 2021 2,063 2,745 148 132 197 892 464 358 2022 2,059 2,626 137 138 221 915 451 362

TABLE 34

Per Capita Consumption of Butter, Cottage Cheese, NFDM and Other Products

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

60 NMPF/USDEC DAIRY ECONOMICS YEAR BUTTER NFDM AND SMP DRY WHOLE MILK DRY BUTTERMILK DRY WHEY AND WPC COTTAGE CHEESE (Lbs) 1970 5.3 5.3 0.2 0.2 0.9 5.2 1975 4.7 3.3 0.1 0.2 2.2 4.6 1980 4.5 3.0 0.3 0.2 2.7 4.4 1985 4.9 2.3 0.4 0.2 3.5 4.0 1990 4.3 2.9 0.6 0.2 3.7 3.3 1995 4.6 3.4 0.4 0.2 4.2 2.7 2000 4.5 2.7 0.3 0.2 3.8 2.6 2005 4.5 4.2 0.2 0.2 2.9 2.7 2010 4.9 3.2 0.2 0.2 1.9 2.3 2011 5.4 3.0 0.2 0.2 1.5 2.3 2012 5.5 3.6 0.2 0.2 1.8 2.3 2013 5.5 2.9 0.2 0.3 1.9 2.1 2014 5.5 3.1 0.2 0.2 2.0 2.1 2015 5.6 3.2 0.3 0.2 2.4 2.1 2016 5.7 2.9 0.3 0.2 2.0 2.2 2017 5.7 2.8 0.3 0.2 2.0 2.1 2018 6.0 2.3 0.4 0.2 2.2 2.1 2019 6.2 2.7 0.3 0.2 2.2 2.1 2020 6.3 2.4 0.3 0.2 1.6 2.0 2021 6.4 2.4 0.2 0.2 1.4 1.9 2022 6.0 2.3 0.3 0.2 1.2 1.9

TABLE 35

Per Capita Consumption of Butter, Cottage Cheese, NFDM and Other Products

Source: USDA / NASS: Dairy Products.

¹ Excludes mellorine-based frozen desserts. Includes frozen yogurt prior to 1989 and nonfat ice cream prior to 1995.

² Excludes ice cream, frozen yogurt, and sherbet mixes.

61 NMPF/USDEC DAIRY ECONOMICS YEAR ICE CREAM (REGULAR) ICE CREAM (LOWFAT) ICE CREAM (NONFAT) SHERBET FROZEN YOGURT OTHER¹ TOTAL FROZEN DAIRY² (Million Gallons) 1970 762 287 n/a 48.9 n/a 6.7 1,104 1975 837 299 n/a 48.5 n/a 11.1 1,195 1980 830 293 n/a 45.2 n/a 10.3 1,179 1985 901 301 n/a 48.2 n/a 51.4 1,302 1990 824 352 n/a 50.3 117.6 32.4 1,376 1995 862 357 43.9 53.5 152.1 19.1 1,488 2000 980 373 30.7 51.9 94.5 11.6 1,542 2005 960 360 20.8 56.4 66.1 7.8 1,471 2006 982 377 16.2 59.2 66.0 11.4 1,511 2007 956 382 14.4 62.7 74.7 12.3 1,502 2008 931 384 15.4 57.7 78.6 14.3 1,481 2009 918 400 16.8 53.3 46.0 15.2 1,449 2010 929 415 16.0 49.3 50.1 12.2 1,472 2011 888 415 17.2 45.4 62.7 12.3 1,441 2012 894 457 17.2 43.6 57.6 12.3 1,482 2013 897 401 14.2 46.1 74.5 12.2 1,445 2014 866 412 18.3 48.4 66.5 12.9 1,423 2015 897 439 13.6 44.7 74.2 14.2 1,482 2016 907 436 12.4 44.3 66.8 14.6 1,481 2017 871 461 11.4 43.0 62.9 22.6 1,472 2018 852 460 11.4 38.3 55.1 22.7 1,440 2019 879 474 9.9 44.4 56.9 19.6 1,484 2020 916 463 9.1 36.8 35.1 14.8 1,474 2021 880 478 10.7 35.0 40.5 11.5 1,456 2022 920 446 13.0 29.5 45.6 12.5 1,467

TABLE 36

Per Capita Consumption of Frozen Dairy Products

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

62 NMPF/USDEC DAIRY ECONOMICS

TABLE 37

YEAR ICE CREAM (REGULAR) ICE CREAM (REDUCED FAT) SHERBET OTHER LBS YOY CHANGE LBS YOY CHANGE LBS YOY CHANGE 1970 17.6 -0.6% 7.8 0.0% 1.6 0.0% 1.4 1975 18.2 4.6% 7.7 0.0% 1.3 -10.1% 1.8 1980 17.1 1.1% 7.1 -2.7% 1.2 -1.0% 1.3 1985 17.8 -0.1% 6.9 -1.4% 1.2 0.6% 2.7 1990 15.5 -2.0% 6.3 -24.6% 1.2 -5.6% 5.0 1995 15.0 -2.8% 7.0 10.4% 1.2 -1.9% 5.7 2000 16.1 -0.5% 6.6 -5.2% 1.1 -5.8% 3.7 2005 15.1 3.3% 6.0 -7.9% 1.1 1.6% 2.9 2006 15.3 1.4% 6.1 2.1% 1.2 4.4% 3.0 2007 14.8 -3.6% 6.1 -0.1% 1.2 4.8% 3.1 2008 14.2 -3.6% 6.1 -0.2% 1.1 -8.9% 3.1 2009 13.9 -2.2% 6.3 3.4% 1.0 -8.4% 2.5 2010 14.0 0.2% 6.5 2.6% 1.0 -8.2% 2.6 2011 13.2 -5.3% 6.4 -0.7% 0.9 -7.8% 2.8 2012 13.2 -0.3% 7.0 8.6% 0.8 -4.5% 2.8 2013 13.0 -0.9% 6.0 -13.6% 0.9 4.7% 3.0 2014 12.5 -4.4% 6.2 2.7% 0.9 3.7% 2.9 2015 12.9 3.1% 6.5 4.8% 0.8 -9.2% 3.1 2016 12.9 0.5% 6.4 -1.6% 0.8 -0.9% 2.8 2017 12.3 -4.7% 6.7 4.6% 0.8 -3.3% 2.9 2018 12.0 -2.8% 6.6 -1.0% 0.7 -11.4% 2.8 2019 12.3 2.8% 6.8 2.2% 0.8 15.7% 2.8 2020 12.7 3.1% 6.5 -3.4% 0.7 -16.7% 2.3 2021 12.2 -4.1% 6.6 0.9% 0.7 -0.8% 2.6 2022 12.7 4.3% 6.2 -6.6% 0.6 -11.2% 2.7

Cheese, Butter and NFDM Production, by State, 2022

Source: USDA / NASS: Dairy Products

Note: Some states with large production are not reported to avoid violating confidentiality.

¹ Does not include 698 million lbs of protein-standardized skim milk powders or 8 million lb of dry skim milk produced for animal feed uses.

63 NMPF/USDEC DAIRY ECONOMICS

TABLE 38 CHEESE BUTTER NONFAT DRY MILK (FOOD)¹ STATE MIL. LBS SHARE STATE MIL. LBS SHARE STATE MIL. LBS SHARE WI 3,520 25.0% CA 686 33.3% CA 860 43.7% CA 2,461 17.5% PA 90 4.4% PA 174 8.9% ID 990 7.0% WI 18 0.9% NM 971 6.9% NY 844 6.0% MN 812 5.8% SD 533 3.8% PA 451 3.2% IA 390 2.8% OH 255 1.8% VT 148 1.1% IL 69 0.5% NJ 62 0.4% Reported States 11,504 81.8% Reported States 776 37.7% Reported States 1,053 53.5% Other States 2,559 18.2% Other States 1,283 62.3% Other States 916 46.5% Total 14,063 100.0% Total 2,059 100.0% Total 1,968 100.0%

Production Share of Manufactured Products by Region, 2022

64 NMPF/USDEC DAIRY ECONOMICS

FIGURE 18

NFDM Atlantic 11.7% Central 48.8% West 39.5% Atlantic 8.2% Central 37.5% West 54.3% Atlantic 17.0% Central 20.9% West 62.0%

Cheese Butter

Plants Processing Dairy Products and Volume Per Plant, Selected Years

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.

65 NMPF/USDEC DAIRY ECONOMICS PRODUCT PROCESSING PLANTS AVERAGE OUTPUT PER PLANT 2000 2010 2020 2022 2000 2010 2020 2022 (Number of Plants) (Thousand Pounds) Butter 77 76 102 93 16,312 20,579 21,038 22,137 Total Cheese 402 515 533 515 20,542 20,278 24,840 27,306 American Cheese 197 211 250 244 18,485 20,329 21,353 23,116 Cheddar 174 197 234 234 16,201 16,421 16,361 16,939 Italian Cheese 153 176 196 193 21,496 25,089 28,634 30,590 Mozzarella 121 121 122 126 21,777 28,756 36,427 36,731 Swiss Cheese 37 54 63 64 5,958 6,231 5,157 5,482 Cottage Cheese¹ 95 67 54 47 4,852 6,461 7,022 7,710 Cream/Neufchatel Cheese 35 32 31 26 19,641 23,277 32,651 43,472 Processed Cheese 30 26 28 28 46,276 44,101 59,894 71,866 Sour Cream N/A 116 102 98 N/A 10,586 14,322 15,261 Yogurt² 80 120 157 158 22,957 34,839 28,725 29,263 Evap/Condensed Milk³ 7 6 7 7 63,141 83,778 77,886 70,731 Ice Cream⁴ 413 393 401 386 2,136 2,083 1,912 1,883 Frozen Yogurt⁵ 145 85 76 73 190 229 203 172 Sherbet⁶ 246 177 130 115 201 263 256 211 Nonfat Dry Milk⁷ 46 49 54 44 31,560 31,888 36,146 44,736 Skim Milk Powder⁸ N/A 10 18 19 N/A 25,380 38,624 34,626 Whole Milk Powder⁹ 16 13 13 14 6,961 5,466 10,624 9,777 Milk Protein Concentrate¹⁰ N/A 9 13 14 N/A 9,846 15,870 15,806 Dry Buttermilk 21 26 22 21 2,678 3,155 5,764 6,582 Dry Whey¹¹ 46 31 27 30 24,023 30,990 34,824 29,531 Whey Protein Concentrate¹² 28 41 49 45 10,374 9,591 9,554 9,757 Whey Protein Isolate¹³ N/A 13 17 19 N/A 4,717 6,616 6,873 Lactose 27 31 30 30 18,150 29,304 37,348 37,061 Fluid Milk 405 404 368 376 143,170 135,818 125,994 115,554

TABLE 39

66 NMPF/USDEC DAIRY ECONOMICS

Government Cost of Farm Commodity Programs

Commodity Credit Corporation Net Outlays by

Commodity, Fiscal Year

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.

67 NMPF/USDEC DAIRY ECONOMICS COMMODITY PROGRAM 1985 1990 1995 2000 2005 2010 2015 2017 2018 2019 2020¹ 2021 2022 (Million Dollars) Feed Grains 5,211 2,693 2,392 11,579 6,813 2,226 247 4,593 3,460 970 736 3,125 1,113 Wheat 4,691 796 803 5,321 1,232 1,280 143 1,106 1,957 1,049 470 1,848 926 Rice 990 667 814 1,774 473 535 18 542 828 495 635 686 494 Upland Cotton 1,553 (79) 99 3,809 4,245 1,668 1,013 (1) 295 70 118 2,179 2,059 Tobacco 455 (307) (298) 657 (411) 21 (225) 0 0 0 0 0 0 Dairy 2,085 505 4 684 40 355 (66) 0 245 319 209 781 397 Soybeans 711 5 77 2,840 1,140 550 30 1,125 225 270 184 1,192 512 Peanuts 12 1 120 35 408 103 74 545 676 300 297 1,293 1,322 Sugar 184 15 (3) 465 (86) 0 0 83 0 0 0 1,050 930 Honey 81 47 (9) 7 8 0 0 (4) 1 0 2 4 2 Wool and Mohair 109 104 108 (2) 7 8 n/a 0 0 0 0 0 0 Export Programs 134 (34) 1,361 216 (1,443) 405 230 243 231 236 196 563 392 Conservation Programs 0 0 0 1,774 1,851 1,919 1,741 1,886 1,955 1,902 1,854 2,090 1,814 Other (314) 808 557 2,310 5,829 960 3,764 522 863 16,036 12,452 1,376 2,174 Total 17,683 6,471 6,030 32,265 20,187 10,015 6,969 10,854 10,858 21,647 17,153 16,187 12,135

TABLE 40

68 NMPF/USDEC DAIRY ECONOMICS

FIGURE 19 -10% 0% 10% 20% 30% 40% 50% 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020

Dairy Share Of Total Commodity Credit Corporation Outlays

U.S. Dairy Trade

69 NMPF/USDEC DAIRY ECONOMICS

Share of U.S. Dairy Exports by Destination, 2022

Share, All Products Milk Equivalent, Total Solids Basis

China, 19%

Mexico, 23%

All Other, 17%

Thailand, 2%

Peru, 2%

Philippines, 7%

Canada, 6%

Indonesia, 6%

Japan, 5%

South Korea, 5%

Vietnam, 4%

Malaysia, 3%

New Zealand, 3%

Australia, 2%

70 NMPF/USDEC DAIRY ECONOMICS

FIGURE 19

U.S. Fresh Milk and Cream Exports

Source: USDA/FAS

71 NMPF/USDEC DAIRY ECONOMICS IMPORTING REGION/ COUNTRY VOLUME SHARE VALUE 2018 2019 2020 2021 2022 2022 2022 (Metric Tons) (Percent) (Thousand Dollars) FRESH

North America 59,348 68,798 65,481 76,902 77,654 54.1% $78,713 Canada 22,177 31,683 37,991 50,091 51,318 35.8% $56,336 Mexico 37,034 36,946 27,338 26,683 26,173 18.2% $21,471 Caribbean 9,088 6,454 4,188 4,936 7,228 5.0% $10,439 Dominican Republic 6,197 3,163 1,361 2,965 4,916 3.4% $6,079 Bahamas 1,342 1,267 1,398 1,272 1,252 0.9% $1,802 Central America 257 208 279 231 366 0.3% $1,012 South America 302 1,013 222 127 206 0.1% $356 European Union-27 65 33 66 103 680 0.5% $547 France 3 0 5 11 595 0.4% $356 Other Europe 0 3 0 0 37 0.0% $76 Russia/Central Asia 0 0 0 0 0 0.0% $0 Middle East 943 119 10 161 151 0.1% $425 North Africa 0 0 74 0 0 0.0% $0 Subsaharan Africa 1 31 12 164 119 0.1% $345 South Asia 81 29 6 5 0 0.0% $0 Southeast Asia 2,225 2,014 2,157 1,469 875 0.6% $1,292 East Asia 39,163 47,962 52,728 57,089 55,884 39.0% $63,620 Taiwan 36,536 45,377 51,188 55,356 54,648 38.1% $61,787 Hong Kong 1,813 1,672 806 974 1,048 0.7% $1,431 Oceania 246 254 190 147 219 0.2% $437 Other 0 0 0 0 0 0.0% $0 World Total 111,722 126,917 125,416 141,335 143,420 100.0% $157,261

MILK AND CREAM (HTS 0401)

TABLE 41

U.S. Butter Exports

Source: USDA/FAS

MILKFATS

72 NMPF/USDEC DAIRY ECONOMICS IMPORTING REGION/ COUNTRY VOLUME SHARE VALUE 2018 2019 2020 2021 2022 2022 2022 (Metric Tons) (Percent) (Thousand Dollars) BUTTER/OTHER

North America 30,143 13,391 12,891 20,275 49,816 61.2% $149,704 Canada 13,877 9,352 9,210 16,903 35,251 43.3% $120,805 Mexico 16,126 3,977 3,643 3,320 14,480 17.8% $28,560 Caribbean 2,463 1,310 1,051 2,925 3,243 4.0% $9,702 Dominican Republic 1,431 398 242 1,987 1,402 1.7% $3,168 Central America 2,560 1,063 738 1,888 1,977 2.4% $6,098 Panama 503 565 360 914 955 1.2% $3,092 South America 594 1,747 484 453 647 0.8% $1,771 European Union-27 2,139 87 299 2,159 350 0.4% $1,493 Other Europe 18 10 1 7 32 0.0% $63 Russia/Central Asia 0 0 0 230 0 0.0% $0 Middle East 3,372 2,214 6,282 11,939 11,599 14.2% $54,332 Bahrain 459 259 1,714 6,389 8,984 11.0% $42,750 Saudi Arabia 2,343 1,588 3,930 4,901 2,031 2.5% $9,827 North Africa 477 0 87 4,030 1,591 2.0% $8,228 Egypt 0 0 25 2,816 1,441 1.8% $7,565 Subsaharan Africa 3 10 10 395 77 0.1% $420 South Asia 100 25 33 28 33 0.0% $89 Southeast Asia 361 186 253 2,050 957 1.2% $2,666 East Asia 2,835 4,437 4,004 9,007 11,039 13.6% $35,560 South Korea 1,088 2,229 1,824 3,422 8,755 10.7% $28,840 Taiwan 836 776 958 1,021 1,335 1.6% $4,462 Oceania 95 252 38 1,593 101 0.1% $514 Other 0 0 0 10 0 0.0% $0 World Total 45,157 24,731 26,170 56,989 81,462 100.0% $270,638

TABLE 42

U.S. Cheese Exports

CHEESE (HTS 0406)

Source: USDA/FAS

73 NMPF/USDEC DAIRY ECONOMICS IMPORTING REGION/ COUNTRY VOLUME SHARE VALUE 2018 2019 2020 2021 2022 2022 2022 (Metric Tons) (Percent) (Thousand Dollars)

North America 105,252 105,015 104,271 119,257 139,950 31.0% $727,764 Mexico 96,857 95,648 92,896 104,543 123,577 27.4% $627,553 Canada 7,757 8,760 10,764 13,993 15,688 3.5% $95,625 Caribbean 16,606 18,660 15,381 17,453 22,058 4.9% $125,492 Dominican Republic 6,889 8,202 7,208 8,492 11,104 2.5% $59,562 Central America 24,105 27,013 23,130 35,002 40,540 9.0% $218,077 Panama 7,248 7,584 6,775 10,606 13,440 3.0% $73,365 Guatemala 7,947 8,708 6,998 9,900 12,022 2.7% $64,979 South America 18,239 19,541 17,529 23,151 21,869 4.9% $116,153 Chile 10,855 11,018 11,022 14,501 11,845 2.6% $59,012 European Union-27 1,126 791 1,142 1,337 1,631 0.4% $7,635 Other Europe 253 240 141 37 106 0.0% $460 Russia/Central Asia 15 20 8 5 10 0.0% $47 Middle East 21,282 23,489 15,521 20,584 28,561 6.3% $137,383 Saudi Arabia 8,885 9,353 5,492 8,183 12,781 2.8% $58,935 North Africa 2,758 1,565 599 1,122 2,147 0.5% $10,015 Subsaharan Africa 256 165 72 110 113 0.0% $568 South Asia 145 115 50 113 32 0.0% $82 Southeast Asia 18,726 21,923 24,714 23,541 24,305 5.4% $112,846 East Asia 111,517 113,790 125,313 131,421 138,258 30.7% $682,415 South Korea 55,809 60,622 70,168 69,387 75,790 16.8% $369,343 Japan 33,081 35,189 37,000 41,244 48,372 10.7% $232,678 Oceania 27,226 24,189 27,639 28,480 31,300 6.9% $134,161 Australia 24,612 21,054 24,140 24,964 28,762 6.4% $123,008 Other 0 0 2 1 3 0.0% $12 World Total 347,505 356,515 355,511 401,613 450,881 100.0% $2,273,109

TABLE 42

U.S. Nonfat Dry Milk/Skim Milk Powder Exports

Source: USDA/FAS

74 NMPF/USDEC DAIRY ECONOMICS IMPORTING REGION/ COUNTRY VOLUME SHARE VALUE 2018 2019 2020 2021 2022 2022 2022 (Metric Tons) (Percent) (Thousand Dollars) NONFAT DRY MILK/SKIM MILK POWDER, Less Than 1.5% Fat (HTS 0402.10) North America 351,148 332,802 289,895 340,598 362,068 43.4% $1,331,527 Mexico 346,686 329,298 287,099 337,575 359,742 43.2% $1,324,715 Caribbean 6,462 7,217 9,637 13,456 15,272 1.8% $58,451 Dominican Republic 5,503 6,007 7,493 11,902 12,130 1.5% $45,564 Central America 16,009 12,528 16,733 19,964 27,668 3.3% $106,075 South America 37,337 52,421 57,608 51,453 44,521 5.3% $162,025 Colombia 10,716 24,488 28,828 24,313 21,139 2.5% $74,601 Peru 14,068 14,211 15,780 15,261 16,093 1.9% $60,871 European Union-27 972 1,122 948 7,332 1,710 0.2% $6,580 Other Europe 29 47 286 231 197 0.0% $797 Russia/Central Asia 1,010 3,212 2,763 265 421 0.1% $1,653 Middle East 5,060 5,653 8,950 14,845 10,079 1.2% $39,902 North Africa 4,802 6,603 27,053 38,622 6,290 0.8% $25,115 Subsaharan Africa 3,366 4,149 5,320 2,115 773 0.1% $2,544 South Asia 24,196 18,827 14,555 9,768 2,321 0.3% $9,313 Southeast Asia 215,389 227,513 325,121 317,218 299,703 36.0% $1,116,840 Philippines 85,353 70,649 115,670 112,475 115,542 13.9% $432,527 Indonesia 55,684 67,283 97,383 76,621 80,120 9.6% $300,159 Malaysia 31,252 25,292 41,081 36,088 44,949 5.4% $161,589 Vietnam 35,506 54,209 52,453 71,912 39,674 4.8% $149,883 Thailand 4,015 6,538 10,021 10,323 12,620 1.5% $46,755 East Asia 37,942 22,094 43,015 59,198 59,826 7.2% $224,867 China 21,131 9,050 26,681 52,822 51,208 6.1% $192,379 Oceania 8,287 6,722 8,306 3,411 2,754 0.3% $8,296 Other 0 0 0 0 0 0.0% $0 World Total 712,007 700,910 810,190 878,476 833,602 100.0% $3,093,986

TABLE 43

U.S. Whole Milk Powder Exports

Source: USDA/FAS

75 NMPF/USDEC DAIRY ECONOMICS IMPORTING REGION/ COUNTRY VOLUME SHARE VALUE 2018 2019 2020 2021 2022 2022 2022 (Metric Tons) (Percent) (Thousand Dollars) WHOLE MILK POWDER, More Than 1.5% Fat (HTS 0402.21 and 0402.29) North America 8,960 5,514 4,801 7,792 8,266 21.2% $28,696 Mexico 7,236 3,588 2,871 5,432 5,178 13.3% $20,992 Canada 1,707 1,903 1,898 2,219 2,950 7.6% $7,288 Caribbean 951 524 2,246 979 1,213 3.1% $4,581 Dominican Republic 755 132 1,976 800 1,103 2.8% $4,294 Central America 1,199 1,284 1,731 2,168 2,222 5.7% $8,755 El Salvador 688 748 578 937 1,281 3.3% $5,771 South America 3,991 14,750 15,192 15,500 20,031 51.4% $82,701 Peru 433 5,198 11,416 12,285 16,332 41.9% $67,612 Colombia 2,837 8,708 2,968 2,586 3,288 8.4% $14,117 European Union-27 67 6 11 140 23 0.1% $35 Other Europe 32 7 78 10 0 0.0% $0 Russia/Central Asia 58 0 0 2 11 0.0% $10 Middle East 510 3,932 3,209 1,795 2,547 6.5% $8,913 United Arab Emirates 47 401 793 410 1,635 4.2% $5,708 North Africa 365 4,382 2,490 2,934 1,857 4.8% $6,567 Algeria 325 4,382 2,273 2,934 1,584 4.1% $5,905 Subsaharan Africa 0 875 463 187 55 0.1% $216 South Asia 73 1,422 1 0 96 0.2% $317 Southeast Asia 19,741 3,148 3,131 2,274 840 2.2% $3,253 East Asia 10,811 2,714 4,589 5,127 1,731 4.4% $6,701 China 10,321 1,765 4,184 4,393 910 2.3% $2,844 South Korea 200 650 306 658 804 2.1% $3,803 Oceania 1,286 677 575 195 44 0.1% $142 Other 0 0 0 0 0 0.0% $0 World Total 48,045 39,235 38,517 39,102 38,935 100.0% $150,887

TABLE 43

U.S. Ice Cream Exports

Source: USDA/FAS

76 NMPF/USDEC DAIRY ECONOMICS IMPORTING REGION/ COUNTRY VOLUME SHARE VALUE 2018 2019 2020 2021 2022 2022 2022 (Metric Tons) (Percent) (Thousand Dollars)

North America 25,325 28,719 28,244 29,364 28,208 38.7% $89,132 Mexico 18,073 22,690 22,536 23,125 21,672 29.8% $66,089 Canada 6,621 5,480 5,104 5,558 5,943 8.2% $20,923 Caribbean 7,102 5,928 4,958 4,917 5,812 8.0% $22,167 Dominican Republic 954 851 765 908 1,215 1.7% $4,203 Central America 1,043 1,271 1,225 2,098 1,592 2.2% $5,481 South America 3,471 3,294 3,004 3,549 2,479 3.4% $8,790 European Union-27 1,938 2,538 717 1,364 1,137 1.6% $4,169 Other Europe 4,996 1,638 2,049 564 302 0.4% $1,174 Russia/Central Asia 164 117 164 120 40 0.1% $144 Middle East 12,847 12,260 11,877 13,002 13,733 18.9% $55,586 Saudi Arabia 6,267 5,736 5,732 5,909 6,094 8.4% $24,926 United Arab Emirates 3,449 3,017 2,833 3,567 3,604 4.9% $14,162 Qatar 980 1,029 1,131 1,090 1,446 2.0% $6,331 Kuwait 974 1,148 813 1,183 1,191 1.6% $4,730 North Africa 158 93 47 76 164 0.2% $774 Subsaharan Africa 992 701 832 1,123 471 0.6% $1,501 South Asia 292 259 266 469 347 0.5% $1,470 Southeast Asia 4,726 4,510 4,878 4,601 5,228 7.2% $21,153 Malaysia 1,627 1,940 1,729 2,171 2,531 3.5% $10,425 East Asia 3,909 4,453 4,950 7,806 7,133 9.8% $30,289 South Korea 1,389 2,205 3,251 3,956 4,152 5.7% $17,673 China 1,312 1,437 430 2,103 1,890 2.6% $7,850 Oceania 7,774 6,522 8,983 4,752 6,177 8.5% $23,927 Australia 7,041 5,726 7,869 3,959 5,294 7.3% $20,838 Other 0 0 0 0 0 0.0% $0 World Total 74,735 72,303 72,195 73,805 72,822 100.0% $265,759

ICE CREAM (HTS 2105)

TABLE 44

U.S. Yogurt Exports

77 NMPF/USDEC DAIRY ECONOMICS IMPORTING REGION/ COUNTRY VOLUME SHARE VALUE 2018 2019 2020 2021 2022 2022 2022 (Metric Tons) (Percent) (Thousand Dollars) YOGURT (HTS 0403.10 and 0403.20) North America 5,669 6,395 4,885 6,701 6,674 35.6% $20,412 Mexico 4,519 4,883 3,458 4,901 4,788 25.5% $14,464 Canada 711 1,061 894 1,220 1,403 7.5% $4,642 Bermuda 439 451 534 580 483 2.6% $1,306 Caribbean 4,705 4,938 4,424 4,245 4,291 22.9% $13,616 Trinidad and Tobago 1,164 1,204 1,180 1,112 939 5.0% $3,108 Windward and Leeward Islands 682 884 774 687 787 4.2% $2,188 Bahamas 427 417 581 647 704 3.8% $2,340 Dominican Republic 682 523 337 472 578 3.1% $1,933 Central America 987 825 693 1,305 1,307 7.0% $5,502 Panama 529 437 407 912 865 4.6% $3,624 South America 504 382 156 340 612 3.3% $1,599 European Union-27 136 211 178 197 193 1.0% $513 Other Europe 71 0 0 0 0 0.0% $0 Russia/Central Asia 0 0 0 0 0 0.0% $0 Middle East 420 376 158 222 250 1.3% $762 North Africa 1 6 0 2 0 0.0% $0 Subsaharan Africa 21 13 6 39 0 0.0% $0 South Asia 141 54 0 17 13 0.1% $27 Southeast Asia 334 480 210 250 332 1.8% $782 East Asia 1,921 1,752 2,579 5,526 4,073 21.7% $7,729 South Korea 271 272 846 3,845 2,832 15.1% $3,977 Taiwan 954 1,133 1,199 1,228 1,069 5.7% $3,324 Oceania 1,046 1,010 1,043 901 1,007 5.4% $2,157 Australia 1,045 1,000 1,040 899 1,005 5.4% $2,146 Other 0 0 0 0 0 0.0% $0 World Total 15,955 16,441 14,334 19,745 18,750 100.0% $53,099

TABLE 44

Source: USDA/FAS

U.S. Whey Exports

(HTS 0404.10 and 3502.20)

Source: USDA/FAS

78 NMPF/USDEC DAIRY ECONOMICS IMPORTING REGION/ COUNTRY VOLUME SHARE VALUE 2018 2019 2020 2021 2022 2022 2022 (Metric Tons) (Percent) (Thousand Dollars) WHEY

North America 87,590 89,442 74,434 82,647 99,453 14.7% $278,286 Canada 33,894 30,380 35,517 39,305 57,853 8.5% $179,822 Mexico 53,680 59,029 38,877 43,322 41,546 6.1% $98,232 Caribbean 2,334 2,359 2,148 1,517 2,126 0.3% $8,786 Central America 11,270 10,091 10,492 12,966 12,976 1.9% $17,496 South America 15,158 15,629 16,229 15,882 24,735 3.7% $94,256 European Union-27 8,535 8,433 8,905 6,056 8,770 1.3% $90,924 Other Europe 478 172 4,299 4,978 2,910 0.4% $31,042 Russia/Central Asia 261 351 42 228 5 0.0% $105 Middle East 889 1,109 1,367 1,311 4,645 0.7% $8,814 North Africa 7,341 3,077 3,050 3,839 2,028 0.3% $3,973 Subsaharan Africa 4,541 3,125 3,012 5,291 3,938 0.6% $11,358 South Asia 6,863 9,416 7,290 4,193 4,359 0.6% $31,655 Southeast Asia 110,050 113,793 121,697 124,152 134,066 19.8% $249,544 Indonesia 18,201 24,460 30,368 27,363 34,245 5.1% $69,798 Vietnam 22,157 15,602 24,893 33,763 34,063 5.0% $38,382 Philippines 36,717 37,110 30,903 29,035 32,082 4.7% $44,587 Malaysia 12,043 11,719 11,891 10,273 13,673 2.0% $21,727 Thailand 11,529 13,243 13,232 15,138 10,505 1.6% $29,109 East Asia 267,363 154,779 270,468 325,742 367,638 54.3% $710,398 China 204,077 104,073 222,566 272,962 307,327 45.4% $398,929 Japan 33,612 25,611 26,816 26,927 31,734 4.7% $207,974 South Korea 15,888 16,339 14,644 19,836 21,385 3.2% $83,828 Oceania 24,040 35,977 33,066 24,123 9,876 1.5% $49,908 Other 0 0 0 0 0 0.0% $0 World Total 546,711 447,754 556,496 612,924 677,523 100.0% $1,586,547

TABLE 45

U.S. Lactose Exports

Source: USDA/FAS

79 NMPF/USDEC DAIRY ECONOMICS IMPORTING REGION/ COUNTRY VOLUME SHARE VALUE 2018 2019 2020 2021 2022 2022 2022 (Metric Tons) (Percent) (Thousand Dollars) LACTOSE (HTS 1702.11 and 1702.19) North America 52,963 60,936 43,895 41,201 42,120 9.3% $53,218 Mexico 43,346 51,126 36,733 35,890 34,727 7.7% $42,959 Caribbean 474 592 666 269 505 0.1% $1,093 Central America 793 529 994 491 892 0.2% $1,205 South America 15,078 18,146 18,513 19,880 22,641 5.0% $29,653 European Union-27 6,027 8,475 4,921 3,558 6,138 1.4% $13,499 Other Europe 193 122 136 92 161 0.0% $451 Russia/Central Asia 40 0 0 0 3 0.0% $3 Middle East 634 450 2,173 1,385 1,424 0.3% $3,255 North Africa 329 475 953 952 709 0.2% $1,347 Subsaharan Africa 5,315 6,541 4,147 7,243 9,393 2.1% $11,778 South Asia 22,542 23,041 22,656 13,277 12,679 2.8% $17,477 Southeast Asia 76,233 82,704 93,325 95,706 95,501 21.2% $121,921 Indonesia 15,713 16,862 23,482 21,351 26,346 5.8% $35,361 Vietnam 17,745 14,073 17,901 24,726 19,155 4.2% $22,258 Philippines 12,474 15,931 17,606 13,406 17,827 4.0% $22,967 Singapore 18,192 21,274 16,040 17,502 14,528 3.2% $18,446 Thailand 7,664 9,735 14,377 15,607 14,394 3.2% $18,550 East Asia 161,395 129,130 131,332 152,562 191,868 42.5% $232,909 China 95,412 66,674 68,044 86,992 118,356 26.2% $146,743 Japan 45,909 39,960 41,734 41,821 53,443 11.8% $61,710 South Korea 16,710 18,450 17,327 19,029 15,952 3.5% $18,588 Oceania 50,097 46,924 53,228 52,972 66,996 14.9% $92,234 New Zealand 40,033 41,421 45,963 45,585 56,582 12.5% $77,896 Other 0 0 0 0 0 0.0% $0 World Total 392,112 378,065 376,938 389,588 451,029 100.0% $580,044

TABLE 45

Commercial

Exports and Domestic Disappearance, Milk

Total Milk Solids Basis

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.

80 NMPF/USDEC DAIRY ECONOMICS YEAR COMMERCIAL EXPORTS DOMESTIC DISAPPEARANCE COMMERCIAL DISAPPEARANCE TOTAL PER CAPITA¹ TOTAL PER CAPITA² TOTAL PER CAPITA³ EXPORT % (Million Lbs) (Pounds) (Million Lbs) (Pounds) (Million Lbs) (Pounds) (Percent) 1985 571 2.4 127,100 533.0 127,671 535.4 0.4% 1986 648 2.7 130,205 541.1 130,854 543.7 0.5% 1987 2,520 10.4 131,601 542.0 134,121 552.4 1.9% 1988 3,910 16.0 135,379 552.5 139,289 568.5 2.8% 1989 3,870 15.6 137,654 556.5 141,524 572.2 2.7% 1990 1,290 5.2 141,579 566.0 142,869 571.2 0.9% 1991 2,010 7.9 141,634 558.7 143,644 566.7 1.4% 1992 2,370 9.2 144,283 561.6 146,653 570.9 1.6% 1993 3,090 11.9 143,898 552.9 146,988 564.8 2.1% 1994 2,780 10.6 148,234 562.7 151,014 573.2 1.8% 1995 4,545 17.1 149,427 560.6 153,972 577.6 3.0% 1996 4,910 18.2 150,544 558.3 155,454 576.5 3.2% 1997 4,898 17.9 150,569 551.7 155,467 569.7 3.2% 1998 4,768 17.3 153,452 555.8 158,219 573.0 3.0% 1999 4,904 17.6 156,467 560.2 161,371 577.8 3.0% 2000 6,545 23.2 159,607 565.7 166,152 588.9 3.9% 2001 7,569 26.6 158,965 557.8 166,534 584.4 4.5% 2002 6,782 23.6 160,950 559.6 167,732 583.2 4.0% 2003 6,946 23.9 163,859 564.8 170,805 588.8 4.1% 2004 10,905 37.2 164,944 563.3 175,849 600.6 6.2% 2005 13,388 45.3 170,022 575.3 183,410 620.6 7.3% 2006 16,638 55.8 170,384 571.0 187,023 626.8 8.9% 2007 17,753 58.9 172,334 572.1 190,087 631.0 9.3% 2008 20,225 66.5 173,797 571.5 194,022 638.0 10.4% 2009 16,219 52.9 176,113 574.1 192,332 627.0 8.4% 2010 23,872 77.2 172,634 558.1 196,506 635.3 12.1% 2011 25,640 82.3 174,408 559.7 200,049 642.0 12.8% 2012 26,006 82.9 177,945 566.9 203,951 649.8 12.8% 2013 30,726 97.2 175,010 553.7 205,736 650.9 14.9% 2014 31,130 97.8 177,869 558.7 208,998 656.4 14.9% 2015 28,827 89.9 184,288 574.6 213,115 664.4 13.5% 2016 29,917 92.6 187,802 581.3 217,719 673.9 13.7% 2017 31,276 96.2 187,492 576.7 218,768 672.9 14.3% 2018 34,236 104.7 188,722 577.4 222,958 682.2 15.4% 2019 31,634 96.3 192,153 585.2 223,787 681.6 14.1% 2020 35,601 107.4 191,352 577.2 226,952 684.6 15.7% 2021 38,589 116.2 192,930 581.1 231,518 697.3 16.7% 2022 40,581 121.8 191,310 574.0 231,891 695.8 17.5%

Equivalent,

TABLE 46

Commercial Exports

Products Milk Equivalent, Total Solids Basis

81 NMPF/USDEC DAIRY ECONOMICS

FIGURE 21

0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017 2019 2021

TSB)

All

Million Pounds (ME,

Dairy Imports, Quota and Non-Quota

Dairy (Non-TRQ)

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 in-quota TRQ cheese volumes are determined by Customs and Border Protection using different data.

⁴ Includes products whose composition consists only partly of dairy components.

82 NMPF/USDEC DAIRY ECONOMICS PRODUCT TRQ STATUS¹ 2018 2019 2020 2021 2022 (Thousand Pounds) Cheese Subject to TRQ Cheddar In quota 15,661 14,829 15,932 17,716 16,172 Out of quota 9,195 10,902 5,762 8,287 10,114 Other American-type In quota 180 136 0 187 144 Out of quota 15 73 26 71 18 Italian In quota 20,875 21,156 20,822 13,601 15,777 Out of quota 17,279 20,784 17,934 26,103 27,881 Swiss/Emmentaler In quota 48,851 47,085 39,465 41,519 43,092 Out of quota 394 1,262 2,523 698 411 Edam/Gouda In quota 14,851 14,895 14,303 14,195 14,630 Out of quota 1,889 2,670 7,133 8,223 5,794 Gruyere Processed In quota 6,646 6,991 5,683 7,212 6,205 Out of quota 325 613 435 716 624 Blue-Veined In quota 6,202 6,155 3,748 5,569 6,199 Out of quota 1,611 1,565 2,567 1,142 1,261 Other In quota 81,888 84,750 71,515 80,344 79,209 Out of quota 13,709 12,620 12,686 16,390 40,028 Total In quota 195,155 195,997 169,794 180,342 181,428 Out of quota 44,416 50,490 49,067 61,631 86,131 Non-TRQ Cheese² Goya 3,337 21 344 37 26 Pecorino 21,017 20,678 10,225 13,752 17,096 Other 107,444 112,067 115,889 67,581 132,417 Total 131,798 132,766 126,459 81,370 149,539 All Cheese³ 388,479 396,339 365,505 413,726 415,296 Other Dairy (TRQ) Milk and Cream In quota 2,241 5,887 2,237 2,241 2,241 Out of quota 16,085 16,827 18,798 17,470 30,555 Evap and Cond Milk In quota 11,878 12,058 11,704 12,231 12,313 Out of quota 67,678 49,192 44,239 31,588 68,849 Butter In quota 15,230 15,148 14,867 15,028 15,229 Out of quota 59,723 63,505 66,028 84,663 94,169 Butter Substitutes In quota 12,364 13,365 12,555 8,780 13,219 Out of quota 835 1,578 2,810 685 11,095 Nonfat Dry Milk In quota 794 294 203 175 878 Out of quota 630 214 2,455 304 1,424 Ice Cream In quota 8,990 11,575 10,929 8,896 9,136 Out of quota 5,126 2,826 1,150 3,053 15,698 Chocolate Preparations 4/ In quota 32,655 38,226 37,373 37,797 34,958 Out of quota 3,393 8,852 5,245 33,976 4,983 Other TRQ Products 4/ In quota 23,816 15,535 21,113 18,975 12,261 Out of quota 74,390 42,598 46,619 60,318 16,444 Other

Casein and Caseinates 125,867 134,861 130,121 147,429 172,980 Milk Protein Concentrate 103,849 110,645 110,048 105,478 134,362 Whey 130,822 100,735 64,799 133,082 117,810 Lactose 5,961 7,605 7,060 7,382 8,222 Butter Substitutes 664 870 705 331 51 Chocolate Preparations⁴ 38,020 33,952 38,355 44,751 37,480 Other Food Preparations⁴ 412,815 509,454 447,212 409,659 427,000

TABLE 47

U.S. Economic Indicators and Other Statistics

83 NMPF/USDEC DAIRY ECONOMICS

Price Indices: Annual Average, Not Seasonally Adjusted

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

84 NMPF/USDEC DAIRY ECONOMICS

TABLE 48

YEAR CONSUMER PRICE INDICES INDICES OF PRICES PAID AND RECEIVED BY FARMERS ALL ITEMS FOOD AND BEVERAGES DAIRY PRODUCTS PRICES RECEIVED PRICES PAID ALL FARM PRODUCTS LIVESTOCK & PRODUCTS DAIRY PRODUCTS PRODUCTION ITEMS WAGES, ETC. (PPITW) FEED (1982-1984 = 100) (1910-1914 = 100) 1950 24.1 25.4 29.0 258 340 249 246 256 210 1955 26.8 27.8 32.1 232 246 247 251 276 211 1960 29.6 30.0 35.4 239 296 259 265 300 194 1965 31.5 32.2 36.0 248 315 260 276 321 207 1970 38.8 40.1 44.7 280 405 350 314 390 216 1975 53.8 60.2 62.6 466 567 537 532 613 406 1980 82.4 86.7 90.9 624 878 798 822 978 479 1985 107.6 105.6 103.2 579 802 779 878 1,131 464 1990 130.7 132.1 126.5 660 1,088 837 958 1,310 501 1995 152.4 148.4 132.8 646 868 783 1,051 1,454 502 2000 172.2 167.8 160.7 611 955 757 1,117 1,588 497 2005 195.3 190.7 182.4 726 1,201 931 1,361 1,891 571 2010 218.1 219.6 199.2 850 1,256 1,000 1,825 2,434 879 2011 224.9 227.8 212.7 1,032 1,540 1,239 2,082 2,706 1,102 2012 229.6 233.7 217.2 1,083 1,633 1,140 2,193 2,824 1,270 2013 233.0 237.0 217.5 1,104 1,669 1,230 2,237 2,877 1,295 2014 236.7 242.5 225.3 1,113 2,049 1,475 2,376 3,031 1,266 2015 237.0 246.8 222.4 1,024 1,872 1,054 2,331 2,996 1,168 2016 240.0 247.6 217.3 935 1,530 1,003 2,179 2,863 1,118 2017 245.1 249.8 217.5 963 1,571 1,086 2,176 2,882 1,045 2018 251.1 253.4 216.5 934 1,497 1,001 2,229 2,966 1,113 2019 255.7 258.0 218.7 928 1,502 1,147 2,224 2,986 1,146 2020 258.8 266.6 228.3 962 1,407 1,116 2,201 2,980 1,169 2021 271.0 276.9 231.4 1,120 1,666 1,143 2,431 3,241 1,340 2022 292.7 303.4 259.3 1,331 2,201 1,571 2,842 3,708 1,522

Minutes of Work Required to Purchase Selected Dairy Products

Source: Bureau of Labor Statistics. Average hourly earnings for private production and nonsupervisory workers.

¹ Per gallon beginning 1996.

85 NMPF/USDEC DAIRY ECONOMICS YEAR AVERAGE HOURLY EARNINGS MINUTES WORKED TO EARN MONEY TO PURCHASE

MILK BUTTER CHEESE ICE CREAM (Dollars per hour) (1/2 Gallon¹) (1 Pound) (1 Pound) (1/2 Gallon) 1960 $2.09 14.1 21.5 19.7 24.9 1965 $2.63 10.8 17.1 17.1 18.1 1970 $3.40 10.1 15.3 17.8 14.9 1975 $4.73 10.1 13.0 19.4 15.5 1980 $6.84 9.3 16.5 19.6 16.3 1985 $8.73 7.8 14.5 17.4 15.8 1990 $10.19 8.3 11.7 N/A 15.3 1995 $11.65 7.5 8.2 17.3 13.6 2000 $14.02 11.9 10.8 16.4 14.8 2005 $16.12 11.9 12.2 16.3 13.9 2010 $19.06 10.3 9.9 14.8 14.1 2011 $19.44 11.0 11.1 16.7 15.2 2012 $19.73 10.6 9.8 17.1 15.3 2013 $20.14 10.3 9.7 16.6 14.9 2014 $20.60 10.7 10.9 16.1 14.2 2015 $21.03 9.8 11.0 15.3 13.5 2016 $21.55 8.9 10.9 14.6 13.3 2017 $22.05 8.8 11.0 13.3 12.8 2018 $22.70 7.7 10.8 13.6 12.5 2019 $23.51 7.7 10.2 13.5 12.3 2020 $24.68 8.1 8.8 13.4 12.0 2021 $25.90 8.2 8.3 12.6 11.3 2022 $27.56 8.9 9.6 12.5 11.8

WHOLE

TABLE 49

Commodity Receipts from Marketings

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

86 NMPF/USDEC DAIRY ECONOMICS COMMODITY 1990 2000 2010 2020 2022 (Billion Dollars) Livestock

Cattle and Calves 39.2 40.8 51.2 63.1 86.1 Dairy Products 20.2 20.6 31.4 40.4 57.3 Hogs 11.5 11.8 17.9 19.2 30.6 Poultry and Eggs 15.3 21.9 34.7 35.1 77.0 Sheep/Other Livestock 3.0 4.6 5.1 6.6 7.6 Total Livestock 89.1 99.6 140.3 164.4 258.5 Crops Feed Crops 18.7 20.5 55.1 57.7 101.3 Oil Crops 12.3 13.5 36.5 43.8 64.9 Vegetables 11.3 15.8 17.4 19.2 21.7 Food Grains 7.5 6.5 14.3 11.8 16.7 Fruits and Nuts 9.4 12.3 21.6 28.7 27.6 Cotton 5.5 2.9 7.5 6.8 8.4 Tobacco 2.7 2.3 1.2 0.8 1.0 Other Crops 12.9 18.6 24.4 29.8 34.7 Total Crops 80.2 92.5 178.2 198.7 276.3 Commodity Receipts 169.3 192.1 318.4 363.1 534.8 Direct Government Payments 9.3 23.2 12.4 45.6 15.6 Total Receipts 178.6 215.3 330.8 408.7 550.3

Products

TABLE 50

Nation’s Top Dairy Cooperatives, 2022

87 NMPF/USDEC DAIRY ECONOMICS RANK DAIRY COOPERATIVE HEADQUARTERS MILK VOLUME MEMBER FARMS (Billion Lbs) 1 Dairy Farmers of America Inc.* Kansas City, KS 56.4 6,000 2 California Dairies Inc.* Visalia, CA 17.1 307 3 Edge Dairy Farmer Cooperative Green Bay, WI 15.4 854 4 Land O' Lakes Inc.* St. Paul, MN 12.9 1,350 5 Select Milk Producers Inc. Artesia, NM 9.6 115 6 Northwest Dairy Association* Seattle, WA 8.4 297 7 FarmFirst Dairy Cooperative* Madison, WI 7.7 2,798 8 Foremost Farms USA* Middleton, WI 6.0 900 9 Associated Milk Producers Inc.* New Ulm, MN 5.1 1,100 10 Michigan Milk Producers Association* Novi, MI 4.7 632 11 United Dairymen of Arizona* Tempe, AZ 4.0 38 12 Agri-Mark, Inc.* Andover, MA 3.2 603 13 Prairie Farms Dairy, Inc.* Edwardsville, IL 2.7 685 14 Lone Star Milk Producers* Wichita Falls, TX 2.7 131 15 First District Association* Litchfield, MN 2.6 640 16 Upstate Niagara Cooperative, Inc.* Lancaster, NY 2.6 270 17 Maryland and Virginia Milk Producers Coop. Assn.* Herndon, VA 2.0 932 18 National Farmers Organization Inc. Ames, IA 1.9 1,563 19 Southeast Milk Inc.* Belleview, FL 1.7 148 20 Organic Valley/CROPP La Farge, WI 1.5 1,427 21 Tillamook County Creamery Association* Tillamook, OR 1.5 68 22 Cayuga Marketing, LLC* Auburn, NY 1.4 32 23 Bongards’ Creameries* Norwood Young America, MN 1.2 188 24 Legacy Milk Cooperative Inc. Turlock, CA 1.0 18 25 High Desert Milk Inc. Burley, ID 0.8 5

TABLE 51 Source: Used by permission from Hoard’s Dairyman. *NMPF member cooperative.

Number and Net Volume of Products, Supplies, and Services by Cooperatives, Selected Years

Services Provided Trucking, Cotton Ginning Storage, Grinding, Locker Plants, Miscellaneous

Source: USDA / Rural Business-Cooperative Service, Farmer Cooperative Statistics. “Other” includes total cooperatives handling beans and peas, nuts, tobacco, wool and other misc. Number of cooperatives may not add due to overlap. Most recent publication of these statistics is for 2019.

88 NMPF/USDEC DAIRY ECONOMICS ITEM 1995 2005 2015 2022 CO-OPS HANDLING NET VOLUME CO-OPS HANDLING NET VOLUME CO-OPS HANDLING NET VOLUME CO-OPS HANDLING NET VOLUME (Number) (Million $) (Number) (Million $) (Number) (Million $) (Number) (Million $) Products

Cotton 16 2,799 14 3,411 14 2,336 14 3,314 Dairy 241 21,784 193 28,163 112 41,007 89 62,934 Fruits and Vegetables 283 9,272 188 7,256 125 8,301 97 8,490 Grain and Oilseed Products 1,104 19,864 683 22,977 448 49,320 348 82,631 Livestock and Poultry 109 8,065 73 3,437 97 5,581 53 6,017 Rice 19 900 15 856 10 875 12 2,213 Sugar 51 1,869 47 3,357 28 7,569 19 7,424 Other 262 4,796 199 4,693 245 9,903 235 13,760 Total Farm Products 2,085 69,349 1,412 74,150 1,079 124,892 867 186,783 Supplies

Crop Protectants N/A 2,628 N/A 2,952 N/A 10,935 N/A 14,484 Feed N/A 5,017 N/A 5,381 N/A 12,261 N/A 17,647 Fertilizer N/A 4,692 N/A 5,370 N/A 15,051 N/A 25,173 Petroleum N/A 5,211 N/A 9,799 N/A 32,277 N/A 34,582 Seed N/A 583 N/A 1,252 N/A 5,397 N/A 6,873 Other Supplies N/A 3,083 N/A 3,672 N/A 5,787 N/A 7,336 Total Farm

N/A 21,213 1,128 28,426 874 81,709 696 106,095

Total Farm Services 474 3,284 356 3,929 94 5,458 108 7,681 Total Business 4,006 93,847 2,896 106,506 2,047 212,059 1,671 300,559

Marketed

Sold

Supplies

TABLE 52

International Milk Production Statistics, 2022

Source: USDA / FAS and UN / FAO.

¹ Other milk production includes buffalo, camels, goats and sheeps milk.

² 2021 data.

89 NMPF/USDEC DAIRY ECONOMICS COUNTRY COW NUMBERS PRODUCTION PER COW COWS MILK PRODUCTION OTHER MILK PRODUCTION¹ TOTAL MILK PRODUCTION SHARE OF TOTAL (1,000 Head) (Pounds) (Million lbs) (Million lbs) (Million lbs) (Percent)

Canada 975 23,014 22,439 22,439 1.1% Mexico 6,650 4,303 28,616 379 28,995 1.4% United States 9,402 24,087 226,463 226,463 10.7% South America Argentina 1,546 16,975 26,244 26,244 1.2% Brazil 16,896 3,087 52,161 6,548 58,709 2.8% Europe European Union 20,213 15,747 318,299 9,149 327,448 15.5% United Kingdom 1,867 18,240 34,055 Commonwealth of Independent States Belarus 1,475 11,823 17,439 66 17,505 0.8% Russia 6,430 11,023 70,879 70,879 3.4% Ukraine 1,591 10,781 17,152 390 17,542 0.8% East

China 6,400 13,503 86,421 2,535 88,957 4.2% Japan 737 22,824 16,821 16,821 0.8% South Korea 203 22,155 4,497 4,497 0.2% Taiwan 66 15,366 1,014 24 1,038 0.0% South Asia India 59,500 3,594 213,848 232,588 446,436 21.2% Southeast Asia Philippines 12 3,123 37 22 60 0.0% Oceania Australia 1,335 13,954 18,629 18,629 0.9% New Zealand 4,875 9,520 46,410 46,410 2.2% Total of Above 140,173 8,571 1,201,425 251,702 1,419,072 67.2% Total, All Countries² 289,369 5,950 1,721,663 389,115 2,110,778 100.0%

North America

Asia

TABLE 53

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.

Dairy Margin Coverage (DMC) Program Margin

As defined in the 2018 Farm Bill, the income over feed cost margin is equal to the national monthly allmilk 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 Margin Protection Program for Dairy (MPP) Margin.

DMC 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, Cen-tral 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).

90 NMPF/USDEC DAIRY ECONOMICS

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

Metric System

Weight

100 lbs = 11.6 gallons

100 lbs = 46.4 quarts

100 lbs = 92.8 pints

100 lbs = 43.9 liters

1 kilogram = 2.2046 pounds 1 liter = 1.057 quarts

1 pound = 0.4536 kilogram 1 quart = 0.9464 liter

1 gram = 0.03527 ounce 1 liter = 2.113 pints

1 ounce = 28.35 grams 1 pint = 0.4732 liter

1 metric ton = 2,204.6 lbs 1 liter = 0.2642 gallons 1 gallon = 3.785 liters

Feed Grains

91 NMPF/USDEC DAIRY ECONOMICS

Volume

Commodity Unit Lbs/Unit Unit/MT Wheat bushel 60 36.744 Soybeans bushel 60 36.744 Corn bushel 56 39.368 Sorghum bushel 56 39.368 Flaxseed bushel 56 39.368 Rye bushel 56 39.368 Barley bushel 48 45.930 Oats bushel 32 68.894 Rice Cwt. 100 22.046

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