MD_DA900                                                                                  
DA                                                                                        
MD DA900 Organic Dairy Market Overview                                              

MADISON, WI.  January 27, 2011, (REPORT 04)                                                

ORGANIC DAIRY MARKET OVERVIEW
       
       The national weighted average advertised price for organic milk 
half gallons decreased 66 cents to $2.68, following a 28 cent decrease 
the prior period.  The top of this period's price range, $3.99, is a 50 
cent increase. The range bottom, $2.50, one cent above the record low, 
is a 79 cent decrease.  A significant factor influencing the increased 
volume, pricing and regional composition of organic half gallon milk 
ads this period, is a national supermarket chain advertising it's store 
brand of organic milk half gallons.  While shoppers generally are 
finding supplies of organic milk are tight and occasionally sold-out, 
this retail chain has undertaken widespread consumer advertising of 
its' store brand at prices rivaling historic lows in terms of this 
survey series, another demonstration of the growing influence of 
organic milk sold as store brands.  Exactly one half of organic yogurt 
ads surveyed nationally are for 4-6 ounce yogurt.  The national 
weighted average advertised price decreased 7 cents to $0.68.  No 
change occurred in the top of the price range, $1.00, while the bottom 
decreased 7 cents to 60 cents.  Organic dairy advertising volume 
reached the highest level since mid-October last year.   Organic milk 
ads placed by supermarkets were at the highest level since early 
September last year.  Organic half gallon milk ads are at the highest 
level since mid-June last year.  Organic yogurt advertising also 
increased over the last five reporting periods, to the highest level 
since late October last year.  Data through November for estimated U.S. 
Sales of organic fat-reduced milk, illustrates the continued growth of 
sales above year earlier sales, uninterrupted since March 2010.  
Organic milk sales growth continues to result in retail organic milk 
supply tightness in much of the country and occasionally "sold-out" 
half gallons in the Southeast and Northeast.

11:00C eric.graf@ams.usda.gov