Milling & Baking News Corporate Profiles - October 2011 - (Page 56)

Dairy $1.97½ a lb, up about 15%. And cheddar cheese values were forecast to average near $1.83½ a lb, up 20% from $1.52 last year. For 2012, the U.S.D.A. projected prices for all four dairy products to decline, mainly the result of increased milk production and easing exports. The U.S.D.A.’s midyear Cattle report showed the 2011 U.S. dairy cow inventory up 1% from 2010 and the number of milk replacement heifers up 4%, usually a recipe for rising milk output. However, dairy cow slaughter also was running above yearago levels. August slaughter was up 6% from August 2010, while January-August slaughter was up 5% from the same period of 2010, according to U.S.D.A. data. The U.S.D.A. estimated dairy cow numbers in 2011 at 9,197,000 head, up 80,000, or 0.8%, from 2010, but projected 2012 numbers at 9,190,000 head, down slightly from 2011, with most of the decline expected in the second half of 2012. The U.S.D.A. showed average milk output per cow at 1,791 lbs in July, down 8 lbs from July 2010. It was the first monthly decline from a year ago in possibly seven years (depending on revisions), and compared with July 2010 output that was more than 50 lbs above the July 2009 Milk production 23 selected states in million lbs Aug. 2010 Sept. Oct. Nov. Dec. Jan. 2011 Feb. March April May June July Aug. 14,998 14,481 14,796 14,421 15,025 15,213 13,987 15,757 15,471 16,063 15,389 15,400 15,330 Source: U.S. Department of Agriculture level. However, the dip was likely the result of extremely hot weather in July as August milk production per cow at 1,783 lbs was 19 lbs above the August 2010 level, according to U.S.D.A. data. JanuaryAugust 2011 U.S. milk production was up 1.6% from the same period of 2010. “The milk production forecast for 2011 is raised as the dairy herd has been expanding at a more rapid rate than expected,” the U.S.D.A. said in its September World Agricultural Supply and Demand Estimates. “However, the forecast for 2012 is reduced as higher feed prices reduce the rate of growth in milk per cow.” Prices for corn and soybean meal, major feed ingredients for dairy cattle, were sharply higher than a year earlier. Nearby Chicago corn futures in late September traded near $6.30 a bu, well below highs set earlier in the year but still about 25% above year-earlier values. December soybean meal futures were trading near $320 per ton, up about 10% from a year earlier. U.S. 2012 milk production was projected at 198,500 million lbs by the U.S.D.A. in September, up 1% from 195,700 million lbs in 2011, with 2011 production expected to be up nearly 2% from 192,800 million lbs in 2010. Prices for all milk were forecast to average near $20.25 per cwt in 2011, up about 25% from $16.29 in 2010. In 2012, the U.S.D.A. projected milk prices to decline, roughly averaging between $17.80@18.80 a cwt. It appears the entire dairy industry will continue to endure challenges in the months ahead as it has in the past couple of years with producers facing high feed costs, processors dealing with high raw material and packaging costs and consumers in the midst of prolonged sluggish economic conditions. CP U.S. ice cream production in 1,000 gallons 74,616 74,088 74,980 75,131 U.S. yogurt production in 1,000 lbs , 395,070 397,101 376,044 372,426 336,900 Corporate Proﬁles 71,854 71,229 77,392 359,768 349,604 357,666 59,228 50,934 Sept. Oct. Nov. Dec. Jan. Feb. MarchApril May June July Aug. 2010 2011 Source: U.S. Department of Agriculture 50,368 55,942 Sept. Oct. Nov. Dec. Jan. Feb. March April May June July Aug. 2010 2011 Source: U.S. Department of Agriculture 56 \ October 2011 Milling & Baking News • Food Business News • Baking & Snack • Meat & Poultry 321,592 321,741 334,769 61,802 347,920

Table of Contents for the Digital Edition of Milling & Baking News Corporate Profiles - October 2011

Milling & Baking News Corporate Profiles - October 2011