Wednesday, July 8, 2009


Milk Prices Decline

Washington--The anticipated dairy sell-off never materialized this quarter, that mean milk production has remained steady and could translate into prolonged low prices according American Farm Bureau economist Allison Sprecht. "So far we have seen only a modest decrease in cow numbers and no decrease in production."

Tracking Milk and Egg trends for the second quarter of 2009, shoppers reported the average price for a half-gallon of regular whole milk was $1.92, down 24 cents from the prior quarter.

The average price for one gallon of regular whole milk was $3.01, down 14 cents. Comparing per-quart prices, the retail price for whole milk sold in gallon containers was about 25 percent lower compared to half-gallon containers, a typical volume discount long employed by retailers.The average price for a half-gallon of rBST-free milk was $3.18, down 1 cent from the last quarter and about 65 percent higher than the reported retail price for a half-gallon of regular milk ($1.92).

The average price for a half-gallon of organic milk was $3.63, down 8 cents compared to the first quarter and approximately 90 percent higher than the reported retail price for a half-gallon of regular milk ($1.92).Compared to a year ago (second quarter of 2008), the retail price for regular milk in gallon containers decreased by 22 percent while regular milk in half-gallon containers decreased 20 percent.

The average retail price for BST-free milk dropped about 5 percent in a year’s time. The average retail price for organic milk in half-gallon containers went up and down slightly throughout the year, rising 1 percent in the second quarter of 2009 compared to a year ago.For the second quarter of 2009, the average price for one dozen regular eggs was $1.34. The average price for “cage-free” eggs was $3.00 per dozen, around 95 percent more per dozen than regular eggs.Regular eggs and “cage-free” eggs dropped in retail price by 26 percent and 1.5 percent, respectively, between the second quarter of 2008 and the second quarter of 2009.

"Obviously, it is going to take a cut in production to improve the price situation. Producers will have to hunker down for at least a few more months of depressed prices; however, producers may begin to increase culling after the recent CWT announcement," said Sprecht

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