U.S. Fluid Milk Sales See Modest Increase in May Amid Industry Shifts
Source: The DairyNews
In May 2024, the U.S. fluid milk market experienced a slight increase in sales, continuing a trend of modest year-over-year growth, according to the latest USDA Agricultural Marketing Service data.
Total sales of packaged fluid milk products reached approximately 3.6 billion pounds, marking a 0.3% increase from May 2023. Year-to-date sales rose 1.3% to 18.1 billion pounds.
The report highlighted mixed results within the sector:
The USDA’s figures are derived from Federal Milk Marketing Order (FMMO) areas, which represent about 92% of the nation's total fluid milk sales, with additional data integrated from non-FMMO regions.
In related industry news, Dairy Farmers of America (DFA) announced the closure of its dairy ingredient facility in Pollock, South Dakota, due to shifting market demands and supply dynamics. The closure, affecting 37 jobs, is part of DFA’s strategy to optimize its milk marketing and balancing operations across its cooperative network. The company affirmed its commitment to assisting affected employees through the transition.
Additionally, the USDA unveiled a $90 million investment in 53 new projects under the Conservation Innovation Grants (CIG) program, fueled by increased funding from President Biden’s Inflation Reduction Act. These grants aim to develop innovative agricultural practices that enhance conservation efforts and reduce greenhouse gas emissions, including enteric methane from livestock. This initiative is part of a broader $19.5 billion commitment over five years to bolster the USDA's conservation programs, directly supporting local farming communities and sustainability efforts.
The report highlighted mixed results within the sector:
- Conventional Milk Products: Sales dipped slightly by 0.4% to 3.33 billion pounds for the month, though flavored fat-reduced milk varieties bucked the trend, showing a 3.5% increase. Year-to-date, conventional products sales increased by 0.9% to 16.86 billion pounds.
- Organic Milk Products: Demonstrating more robust growth, May sales surged 10.2% to 263 million pounds. Notably, sales of whole milk and flavored whole milk in the organic segment jumped 20% and 31%, respectively, compared to last year. Organic products accounted for approximately 7.3% of total fluid milk sales in May and 6.9% for the year thus far.
The USDA’s figures are derived from Federal Milk Marketing Order (FMMO) areas, which represent about 92% of the nation's total fluid milk sales, with additional data integrated from non-FMMO regions.
In related industry news, Dairy Farmers of America (DFA) announced the closure of its dairy ingredient facility in Pollock, South Dakota, due to shifting market demands and supply dynamics. The closure, affecting 37 jobs, is part of DFA’s strategy to optimize its milk marketing and balancing operations across its cooperative network. The company affirmed its commitment to assisting affected employees through the transition.
Additionally, the USDA unveiled a $90 million investment in 53 new projects under the Conservation Innovation Grants (CIG) program, fueled by increased funding from President Biden’s Inflation Reduction Act. These grants aim to develop innovative agricultural practices that enhance conservation efforts and reduce greenhouse gas emissions, including enteric methane from livestock. This initiative is part of a broader $19.5 billion commitment over five years to bolster the USDA's conservation programs, directly supporting local farming communities and sustainability efforts.
