Contract organic milk pay prices are increasing in much of the country, according to the recent issue of USDA’s Dairy Market News. There is also more interest by processors in acquiring organic grass milk.

In the Midwest, a typical organic milk pay price offered is a 12-month average pay price of $33.13/cwt., with $33.17/cwt. offered for organic grass milk.

Prices vary by regions. For example, in the West, where dry conditions have hit particularly hard, the 12-month average mailbox price for organic milk is higher than the Midwest, at $35.00/cwt., and for grass milk, $39.00/cwt. Texas organic farmers are being offered a 12-month average mailbox price of $34.13/cwt.

However, some organic cows continue to leave Western organic dairy herds to be sold into slaughter auctions, as some producers elect to ease back from organic dairy production.

At an auction in Oregon earlier this month, organic cows sold for slaughter continued to bring a premium over conventional cows. The top 10 organic cows auctioned brought an average price of $1.9033/lb., compared with a $1.1184/lb. average for the top 10 conventional cows.

The current top 10 organic price is down from $2.2583/lb. last month, while the top 10 conventional price is down from last month’s $1.2153/lb. average. The top 100 organic cows brought $1.5136/lb. vs. $1.0272/lb. for the top 100 conventional cows.

 

Organic feedstuffs

Prices wee trending higher for most organic grains last week. Organic grain spot market activity has been mostly moderate, with organic corn and soybeans moving the most. Demand for organic corn, organic soybeans and organic wheat was light to good; organic hay and organic straw moderate to good; and demand for all other organic grains remains light to moderate. Concerns involve quality issues, protein levels, current and future availability and resulting future prices, and transportation issues.

Additional livestock and grain market news information is available at: www.ams.usda.gov/LSMarketNews

Source: USDA Dairy Market News

 

Weekly National Dairy Product Sales Report

Week ending Jan. 31, 2015

 

 

 

 

Change from

 

Ave. price

previous week

 

($/lb.)

(¢/lb.)

Butter

1.56

0.9

Cheddar blocks

1.56

-1.2

Cheddar barrels

1.51

-4.6

Dry whey

0.578

-0.8

NFDM

0.974

-2.8

Source: USDA Ag Marketing Service