MD_DA902                                                                                  
DA                                                                                        
MD DA902 Organic Dairy Fluid Overview                                               

MADISON, WI.  February 10, 2012 (REPORT 06)                                                

ORGANIC DAIRY FLUID OVERVIEW
       A smaller organic dairy cooperative based in New England, 
has finalized commitments to market organic milk of its members 
in stores of a New England based supermarket chain.  The 
supermarket has stores located in Maine, New Hampshire, 
Massachusetts, Rhode Island and Vermont,
       Only ads for a store brand of organic half gallons sold in 
outlets of a national supermarket chain appeared in surveyed 
newspaper ads this period.  This period's survey found newspaper 
ads for this national retail chain in all regions except the 
Northeast.  This is the first reporting period since this data 
series began during fall 2009, when only one brand of organic 
milk ads appeared in supermarket ads in surveyed newspapers.  The 
same geographic pattern occurred during the last survey period.  
       This organic milk, for the most part, is bottled in a 
single plant in Kansas, using organic milk produced in Texas, 
then shipped throughout the regions of the United States.  
       Ads were found in newspapers published in California, 
Louisiana, Texas, Tennessee, Mississippi, Arkansas, Arizona, 
Kansas, Washington, Ohio and West Virginia.
ORGANIC GRAIN AND FEEDSTUFFS MARKETS:  
        National organic grain and feedstuffs were mixed. Feed 
grade yellow corn was higher, while food grade soybeans were 
lower. Feed grade soybeans were steady with a higher undertone. 
Soybean trade this period was largely limited to nearby states of 
origin due to the importation of Argentinian soybeans on the East 
Coast.  Higher soybean prices are driving organic farmers and 
grain buyers to look for other sources of grains to maintain 
profitable operations and to avoid detrimental price increases.  
Organic corn products from India and China are reportedly in use 
on the West Coast, as many dairy farmers are working to maintain 
profit margins as well.  Organic grains this period were in good 
demand, with light offerings of soybeans and moderate offerings 
of corn. Additional livestock and grain market news information 
is available at:  http://www.ams.usda.gov/mnreports/lsbnof.pdf


1100C eric.graf@ams.usda.gov