While the class discussed in the headlines has some connections with U.S. population demographics, the real message is that the middle "dairy" class - Class II (soft product sales such as yogurt) and Class III (cheese sales) are overtaking the upper "dairy" class fluid sales we've know as Class I in the Northeast Federal Milk Marketing Order (FMMO). While Class I sales have shrunk from 43.3 percent to 35.4 percent in the past decade in the densely populated Northeast order, Class II has expanded from 21.6 percent to 24.2 percent. Class III followed the same trend, growing from 23.8 percent to 25.6 percent, reported Erik Rasmussen, the administrator for the Northeast FMMO.
As this took place, the Northeast bucked national trends by growing Class IV (butter/powder sales) from 11.4 percent to 14.6 percent nationally over the past 10 years. During this same period, Class IV product development within federal orders was flat at a 12 percent share.
Nationally, across all FMMOs, people continue to eat their dairy, as Class III cheese sales garnered 45 percent of all milk last year compared to just 30 percent in 2004. This growth came at the expense of Class I which almost flip-flopped positions with Class III cheese. Last year, a mere 32 percent went into the jug, down from 44 percent just a decade earlier. Across the country, Class II fell 3 percent from 2004's 14 percent.
Solids content of milk keeps improving when looking exclusively at the Northeast FMMO data. Butterfat levels rose to 3.78 percent in 2014 compared to 3.70 percent just five years earlier. Protein rose slightly to 3.08 compared to 3.05 percent. This trend could suggest there are more Jerseys in the national herd and more attention to components from those milking Holsteins, as well.
(c) Hoard's Dairyman Intel 2015
May 26, 2015
