U.S. milk marketing receipts hit record high in 2013

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Strong milk prices helped push dairy producer income levels higher in 2013, at least before production costs were deducted.

USDA’s annual “Milk Production, Disposition and Income” summary showed 2013 U.S. dairy producer cash receipts from milk marketings totaled about $40.3 billion, up 8.7% from 2012 and the highest total ever. Receipts represent gross income, not net income.

The average all-milk price paid to producers in 2013 was $20.12/cwt., $1.56/cwt. (8.4%) more than 2012, and just below the previous high of $20.25/cwt. in 2011.

Total U.S. marketings (whole milk sold to plants and dealers and milk sold directly to consumers) totaled about 200.2 billion lbs, 0.3% more than 2012.

An estimated 980 million lbs. of milk were used on farms where produced, 2.4% more than 2012. Calves were fed 90% of this milk, with the remainder consumed in producer households.

 

‘Average’ cows earned more

 The annual average number of milk cows on farms in 2013 was 9.22 million head, down about 12,000 head from 2012. Milk production per cow, at 21,822 lbs., was 122 lbs. more than 2012.

Multiplied by the all-milk price, the “average” U.S. cow generated $4,390 on 2013 milk production, up from $4,031/cow in 2012. It's the third consecutive year gross income per cow averaged more than $4,000.

 

2014 forecast

The 2014 picture of cash receipts should be even better. As of April 2014, USDA projected an all-milk price in the range of $22.55-$23.05/cwt. (mid-range of $22.80/cwt.). With milk marketings expected to reach 205.2 billion lbs., that would yield 2014 U.S. gross receipts from milk sales of about $46.8 billion. Under that scenario, gross income per cow would surpass $5,000.

 

‘$1 billion club’

The U.S. again had 11 states topping $1 billion in annual cash receipts from milk marketings in 2013. The include: California, Idaho, Michigan, Minnesota, New Mexico, New York, Ohio, Pennsylvania, Texas, Washington and Wisconsin.

Two states may be knocking on the door of that exclusive club in 2014: Iowa cash receipts from milk sales totaled $941.6 million in 2013; and Arizona came in at $872.8 million.

California and Wisconsin accounted for about $13.1 billion, or about 33% of total U.S. cash receipts from milk marketings in 2013.

Find the full report at http://usda.mannlib.cornell.edu/usda/current/MilkProdDi/MilkProdDi-04-29-2014.pdf.

 

2013 ‘Bilion Dollar Club’ Milk Marketing Receipts

 

Cash receipts

State

($ billion)

California

7.62

Wisconsin

5.54

New York

2.85

Idaho

2.57

Pennsylvania

2.27

Texas

1.96

Michigan

1.87

Minnesota

1.84

New Mexico

1.51

Washington

1.30

Ohio

1.15

Source: USDA Milk Production, Disposition and Income report, April 2014



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