MD_DA901 DA MD DA901 Organic Dairy Retail Overview MADISON, WI. June 14, 2013 (REPORT 24) ORGANIC DAIRY RETAIL OVERVIEW NATIONALLY ADVERTISED PRICE COMPARISON Organic Dairy Overview. Organic dairy product ad volume is the second highest level of 2013. This resulted from combined strong organic milk ad numbers bolstered by strong organic butter and yogurt ad numbers. Organic milk ads total 62% of all organic dairy ads. Organic yogurt is second with 24% of ads, followed by organic butter with 14%, and organic cottage cheese with 1%. Advertising information presented is compiled from nearly 14,000 surveyed newspaper supermarket ads for the period June 1, 2013, to June 14, 2013, identifying weekly "specials" and containing organic dairy content. Surveyed ads reflect advertised "specials" and not the range of non-advertised supermarket cooler prices. Complete results of this bi-weekly survey providing additional graphs, tables, and regional delineation, follow at the end of Dairy Market News, or can be accessed at: http://www.ams.usda.gov/AMSv1.0/DairyRetailReport Regional Organic Dairy Ad Trends. Organic dairy ads appeared in all 6 regions led by the Southeast with 26% of ads. The percentages of total ads for the remaining regions are: the Northeast, 21%; Southwest, 17%; Northwest, 16%; with the Midwest and South Central tied at 10%. Organic Milk. Organic half gallons continue to predominate organic milk retail advertising, which is typical, comprising 91% of organic milk ads. Organic gallons are in second place with 9% of ads, with no ads for 8 ounce organic milk for the first time since mid March. Organic Milk Half Gallons. The weighted average advertised price of organic milk half gallons, $3.59, is 16 cents higher than two weeks ago. The price range is $2.79 to $4.49. One year ago the weighted average advertised price was $3.24, 35 cents lower than currently. The Northeast has the highest weighted average price, $4.17, while the South Central has the lowest price this period, $2.79. Organic - Conventional Milk Half Gallon Price Spread. The weighted average advertised organic half-gallon milk price, $3.59, is up 16 cents from two weeks ago. Conventional milk's price for half gallons, $1.00, is down 63 cents from two weeks ago. One year ago conventional milk's average advertised price was $2.11. The organic-conventional half gallon price spread is $2.59, compared with $1.80 two weeks ago. However, the magnitude of the increase in the spread has more to do with the magnitude of bi-weekly conventional half gallon price fluctuation than organic half gallon price fluctuation. During 2013, the conventional half gallon bi-weekly weighted average advertised price range was $1.42 in contrast with organic half gallons being 46 cents, which drops to 16 cents if the highest and lowest averages are deleted. This period's conventional half gallon price comes from only 85 ads, with conventional half gallon ads not appearing in five of six regions. This contrasts with 4,141 ads for organic half gallons appearing in all six regions. Clearly the low conventional price and wider price spread between conventional and organic results from very thin advertising of special prices for conventional milk. Organic Yogurt. Organic yogurt ad numbers are slightly higher than two weeks ago when ad numbers more than doubled from their lowest level of the year. No ads for organic Greek yogurt appear this period, unlike two weeks ago when about 80% of ads were for organic Greek yogurt. This period 63% of ads are for 32 ounce organic yogurt and 37% for 4-6 ounce organic yogurt. Ads appear in all regions except the Midwest. Tied with 28% of ads each are the Northeast and Southwest, followed by the South Central with 22% and the Southeast and Northwest tied at 11%. The weighted average advertised price for 32 ounce organic yogurt is $2.74, with advertised prices ranging from $2.50 to $3.00. The weighted average advertised price for 4-6 ounce organic yogurt is $.84, with prices ranging from 59 cents to $1.00. 1 Pound Organic butter. The national weighted average advertised price for 1 pound organic butter is $4.06, with advertised prices ranging from $3.99 to $4.39. 16 Ounce Organic Cottage Cheese. Ads for 16 ounce organic cottage cheese all ran in the Northwest. All ads are priced $3.50. SUPERMARKET PRICE COMPARISON: Madison, Wisconsin Prices. Non-advertised organic milk, yogurt, butter and cheese prices in a range of food stores in Madison, Wisconsin are compared for this two week period. Stores included a big-box sized local supermarket; 2 regional chain supermarkets; a smaller but full product line food market; and 2 natural food stores; a national discount big box chain store also selling food; and a large local cooperative grocery store. Organic milk available included 2 national brands, 4 private label store brands, and 3 small local or near-by creamery brands, one featuring non-homogenized milk. Cheese available included 2 national brands, 2 store brands, and cheese from 5 other cheese makers. INFORMATION GATHERED 06/03/2013 - 06/14/2013 ORGANIC MILK, YOGURT, CHEESE, BUTTER PRICE RANGE 2013 REPORTING WEEK 24 MADISON, WISCONSIN LOW HIGH RANGE (in Dollars) FLUID MILK MILK - gallon Whole 5.79* 7.29 1.50* Reduced fat (2%) 5.79* 7.29 1.50* Low fat (1%) 5.79* 7.29 1.50* Nonfat (Skim) 5.79* 7.29 1.50* MILK - half gallon Whole 3.89* 4.89 1.00* Reduced fat (2%) 3.89* 4.89 1.00* Low fat (1%) 3.89* 4.89 1.00* Nonfat (Skim) 3.89* 4.89 1.00* FLAVMILK - half gallon All fat tests 3.09 5.69 2.60 YOGURT Yogurt - 4-6 oz Yogurt 0.79 1.29 0.50 CHEESE Cheese - 8 oz block Mozzarella 3.40 5.75 2.35 Mild Cheddar 3.79 5.99 2.20 Monterey Jack 3.79 5.99 2.20 Pepper Jack 3.89 5.99 2.10 Cheese - 6 oz string Mozzarella 3.99 5.09 1.10 Colby Jack 3.89 4.99 1.10 BUTTER Butter - 1 Pound 4.79 6.09 1.30 * = Price change from prior reporting period. 1100C eric.graf@ams.usda.gov