MD_DA900                                                                                  
DA                                                                                        
MD DA900 Organic Dairy Market Overview                                              

MADISON, WI.  May 17, 2013, 2013 (REPORT 20)                                                

ORGANIC DAIRY MARKET OVERVIEW
       
The national weighted average advertised price of organic milk half 
gallons, $3.56, is 3 cents lower than two weeks ago.  The price range 
is $2.79 to $4.69.  One year ago the average price was $3.38.  The 
organic-conventional half gallon price spread is $2.68, compared to 
$1.38 two weeks ago. The national weighted average conventional milk 
price for half gallons, $0.88, was down $1.33 from two weeks ago.  
There was very limited featuring of this commodity category, only 
appearing in 64 ads, compared to 2,033 ads two weeks ago. The spread is 
the highest this year.  About 46% of organic yogurt ads are for Greek 
yogurt in 4-6 ounce containers, with a weighted average advertised 
price of $1.00, unchanged from last year's average price.  About 29% of 
organic yogurt ads are for 4-6 ounce containers, with a weighted 
average advertised price of $1.00.  Last year the average price was 
$.74.  Organic yogurt in 32 ounce containers accounts for 25% of ads, 
with an average price of $3.00.  Last year the average price was $2.79.  
On Tuesday, May 14, Organic Valley Cooperative headquarters in La 
Farge, Wisconsin, was damaged by a major fire.  Seven fire departments 
responded to the blaze and the Fire Chief for the La Farge department 
indicated that at least half of the building was a total loss.  The 
headquarters building was office space and none of Organic Valley's 
production occurs at this site.  Organic Valley plans to shift 
operations to their Cashton facility for the time being.  Weather 
conditions in the Northeast region of the nation have been conducive 
for fieldwork activities.  Corn, for silage, plantings in New England 
are 40% completed and significantly ahead of the 5 year average of 15%.  
New York's corn planting is 42% completed and also ahead of the 5 year 
average of 34%.  Pennsylvania has 48% of the corn planted, just above 
the 5 year average of 45%.  A majority of pastures in the Northeast 
region are rated as either good or excellent.  

11:00C rick.whipp@ams.usda.gov