May 6, 2014

 

US 2013 milk marketing receipts up 8.7% on-year

 

 

USDA's annual "Milk Production, Disposition and Income" summary revealed 2013 US dairy producer cash receipts, representing gross income not net income, from milk marketings totalled about US$40.3 billion, up 8.7% from 2012 and the highest total ever.

 

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

 

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

 

Total US marketings (whole milk sold to plants and dealers and milk sold directly to consumers) totalled about 200.2 billion pounds, 0.3% more than 2012.

 

An estimated 980 million pounds 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.

 

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 pounds, was 122 pounds more than 2012.

 

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

 

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

 

The US again had 11 states topping US$1 billion in annual cash receipts from milk marketings in 2013. They 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 totalled US$941.6 million in 2013; and Arizona came in at US$872.8 million.

 

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