The prior post covered the amazing growth in the price of butter and butterfat. This post will show the pricing of the rest of the dairy products, all of which are showing slow to no growth in pricing. Butter and butterfat seem to be the only price positive dairy products.
The June 11 post, covered domestic consumption of key dairy products. Domestic consumption was down. We are now seeing the same thing in exports. Our two largest dairy exports are nonfat dry milk (NDM) and whey. Exports of both are down. They are byproducts of butter churning and cheese production.
NDM is used to price Class IV skim milk and in turn also prices skim Class I and II. The current price is $1.16 pound (Chart I). The average price of NDM for the last 23+ years is $1.14 per pound so the current price is about the same as the last 23+ years.
July 4, 2023