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Farm-gate milk prices, US

On this page, you will find the monthly average price data for farm-gate raw milk, as recorded in the United States of America (USA).

The fluid grade milk prices, collected over the last three years, are listed in the table while the graphs below illustrates price trends in € and in local currency. Furthermore, time series and the chart are available for monthly average prices, in local currency.

The comparison table and the graph gives you a historical overview of milk prices in the United States of America (USA) compared with New Zealand and EU-28.

N.B.:

In the U.S., the price of milk is linked to a classification price plan. The system groups the milk into divisions, classes and different prices, according to its intended use. Milk prices primarily refer to two large divisions:

- Fluid grade milk, which represents 97% of milk produced in the U.S. It is produced under stringent sanitary conditions and is intended for all dairy products;
- Manufacturing grade milk, which represents 3% of milk produced in the U.S., and can only be used for products derived from milk such as butter and powders.

Across this subdivision, there is another classification system in operation in the U.S. that is mainly targeted to specific destinations, which are characterised by different milk prices:

- Class I milk is for direct human consumption and is the most expensive.
- Class II milk is processed into fresh products such as yoghurt, sour cream, ice cream and frozen dessert products.
- Class III milk is used to make cheese.
- Class IV milk is used to produce butter and powders.

This is a particularly complicated regulating system in that it intertwines the intended use with the localization of the production.

The US dairy industry is regulated by the Federal Milk Marketing Order system, which includes 11 different geographical areas (or "orders").

In each of these orders, manufacturers are paid a (harmonised) average price for their milk depending on its intended use, which, in turn, is determined by the place of production.

In Wisconsin, for instance, the majority of milk belongs to Class III, i.e. milk intended for cheese production. In Florida, however, most of the milk produced belongs to Class I, i.e. milk for drinking. This milk is therefore deemed to be more valuable and, as such, carries a higher-than-average price.

Milk from farms located in areas where there is already excess production is often made into butter and powders that can be stored for future use. Meanwhile, farmers located in areas where milk supply is low can expect that their milk will go on to be processed into food products.

The State of California, which accounts for roughly 20% of all milk production in the U.S., has its own Federal Milk Order and is not part of the federal scheme. There are five classes and further classifications within this Californian system.

US - Monthly average prices of farm-gate milk
(Fluid Grade Milk) *
US$/cwt - € per 100 Kg. (VAT not included)¹
Month 2016
US$
2016
2017
US$
2017
2018
US$
2018
± on prev. month
( US$ )
± on 2017
( US$ )
± on prev. month
( € )
± on 2017
( € )
January 16,10 32,68 18,90 39,26 16,10 29,10 -6,40% -14,81% -9,18% -25,88%
February 15,70 31,20 18,50 38,32 15,30 27,32 -4,97% -17,30% -6,11% -28,72%
March 15,30 30,39 17,30 35,70 15,60 27,88 +1,96% -9,83% +2,06% -21,90%
April 15,00 29,16 16,50 33,92 15,80 28,37 +1,28% -4,24% +1,78% -16,36%
May 14,50 28,26 16,70 33,30 16,20 30,24 +2,53% -2,99% +6,56% -9,19%
June 14,80 29,06 17,30 33,96 16,30 30,77 +0,62% -5,78% +1,77% -9,40%
July 16,10 32,07 17,30 33,13 15,40 29,05 -5,52% -10,98% -5,58% -12,31%
August 17,10 33,62 18,00 33,61 15,90 30,35 +3,25% -11,67% +4,47% -9,69%
September 17,30 34,02 17,80 32,94 16,70 31,58 +5,03% -6,18% +4,04% -4,12%
October 16,60 33,19 17,90 33,57 17,40 (p) 33,40 (p) +4,19% -2,79% +5,78% -0,49%
November 17,60 35,93 18,10 34,00
December 18,80 39,31 17,20 32,04
Average Weighted Price 16,23 32,37 17,61 34,46 16,07 ** 29,81 **
Change (1) -5,1% -4,7% +8,5% +6,5% -8,8% -14,3%
** Avg Annual Price
1) change from the same period of previous year
(p) = provisional price
NOTE: *: Fat 3,7% p.p. avg.
¹ Including milk diverted to manufacturing. Before deductions for hauling. Includes quality, quantity, and other premiums. Excludes hauling subsidies.
1 cwt = 45,359 kg
Conversion in € is calculated using the average exchange rate of the reference month.

Source: AMS USDA Dairy Markets News
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$/CWT US
Monthly average prices of farm-gate milk
(Fluid Grade Milk) Fat 3,7% p.p. avg.
2003 2008 2013 2014 2015 2016 2017 2018 ± on prev.
month
± on
2017
January 11,80 20,50 19,90 23,50 17,60 16,10 18,90 16,10 -6,40% -14,81%
February 11,40 19,10 19,50 24,90 16,80 15,70 18,50 15,30 -4,97% -17,30%
March 11,00 18,00 19,10 25,20 16,60 15,30 17,30 15,60 +1,96% -9,83%
April 11,00 18,00 19,50 25,30 16,50 15,00 16,50 15,80 +1,28% -4,24%
May 11,00 18,40 19,70 24,20 16,70 14,50 16,70 16,20 +2,53% -2,99%
June 11,00 19,30 19,50 23,20 16,90 14,80 17,30 16,30 +0,62% -5,78%
July 12,10 19,40 19,10 23,30 16,70 16,10 17,30 15,40 -5,52% -10,98%
August 13,30 18,40 19,50 24,20 16,70 17,10 18,00 15,90 +3,25% -11,67%
September 14,50 18,20 20,10 25,70 17,50 17,30 17,80 16,70 +5,03% -6,18%
October 15,00 17,70 20,70 24,90 17,70 16,60 17,90 17,40 (p) +4,19% -2,79%
November 14,40 17,10 21,60 23,00 18,20 17,60 18,10
December 13,80 15,60 22,00 20,40 17,30 18,80 17,20
AVG Weighted Price 12,49 18,31 20,00 23,98 17,09 16,23 17,61 16,07 **
Change (1) +3,11% -4,25% +8,22% +19,86% -28,72% -5,07% +8,54% -8,80%
Source: AMS USDA Dairy Markets News
1) change from the same period of previous year
** Avg Annual Price
(p) = provisional price
Nota: Conversion: 1 cwt = 45,359 kg
  = min price
  = max price
 
€/100 kg US
Farm-gate raw Milk*(2)
NEW ZEALAND/FONTERRA
Farm-gate raw Milk price*(2)
EU WEIGHTED AVERAGE
Farm-gate raw Milk
(excl. VAT, incl quality)
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 % on prev. month % on 2017 2018 % on prev. month % on 2017 2018 % on prev. month % on 2017
January 22,27 24,87 27,56 32,46 33,02 38,07 33,39 32,68 39,26 29,10 -9,18% -25,88% 31,21 +1,17% -6,44% 35,56 -5,12% +6,34%
February 20,01 25,45 30,85 29,51 32,18 40,19 32,63 31,20 38,32 27,32 -6,11% -28,72% 30,82 -1,25% -8,08% 34,41 -3,23% +3,09%
March 19,80 24,04 32,14 28,72 32,48 40,19 33,77 30,39 35,70 27,88 +2,06% -21,90% 30,62 -0,65% -5,44% 33,57 -2,44% +1,36%
April 19,96 24,01 29,92 28,12 33,00 40,38 33,75 29,16 33,92 28,37 +1,78% -16,36% 31,06 +1,44% -5,42% 32,66 -2,71% -1,54%
May 18,67 26,32 30,11 27,93 33,45 38,85 33,02 28,26 33,30 30,24 +6,56% -9,19% 30,97 -0,29% -2,55% 32,09 -1,75% -2,67%
June 17,78 27,81 32,33 28,51 32,60 37,63 33,23 29,06 33,96 30,77 +1,77% -9,40% 31,29 +1,03% -8,59% 32,27 +0,56% -2,60%
July 17,70 27,45 33,69 30,32 32,19 37,94 33,48 32,07 33,13 29,05 -5,58% -12,31% 31,34 +0,16% -7,77% 32,94 +2,08% -3,60%
August 18,69 28,55 33,95 32,18 32,30 40,07 33,05 33,62 33,61 30,35 +4,47% -9,69% 30,94 -1,28% -9,21% 33,57 +1,91% -4,77%
September 19,70 29,86 33,78 33,61 33,20 43,92 34,38 34,02 32,94 31,58 +4,04% -4,12% 28,70 -7,24% -14,43% 34,83 +3,75% -5,43%
October 21,28 29,51 32,18 36,70 33,47 43,32 34,73 33,19 33,57 33,40 (p) +5,78% -0,49% 27,87 -2,89% -15,55% 35,91 +3,10% -4,32%
November 22,76 29,05 33,35 37,98 35,29 40,66 37,37 35,93 34,00 36,00 (e) +0,25% -4,76%
December 24,89 28,03 32,95 35,12 35,39 36,47 35,06 39,31 32,04
Average Weighted Price 20,27 27,06 31,89 31,69 33,21 39,78 33,98 32,37 34,46 29,81 ** 30,48** 33,98**
Change (1) -26,19% +33,49% +17,85% -0,64% +4,80% +19,78% -14,59% -4,72% +6,45% -14,28% -8,39% -1,83%
Source: AMS USDA Dairy Markets News
1) change from the same period of previous year
2) VAT not included
** Avg Annual Price
(e) = estimated price
(p) = provisional price
*US: m.g. 3,7% p.p. media
*NZ: Data based on payout forecast, adjusted for 4.2% fat and 3.4% protein.
  = min price
  = max price