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Organic Milk Pay Price Update

ADDED MAY 7, 2009.

The last few months have seen the pay price drop by all milk companies, from some smaller cooperative and individual producers to the “Big Three.”  We are now in the time of year when all the seasonal bonuses end and everything reverts back to the base price. There is no anticipation of any increases in the next few months and no commitments for any fall seasonal payments.
The table below shows the New England pay price since 2006.

Overview of pay-price in New England

The graph below recently published by the USDA shows both the growth of organic fluid milk and the predictability of the seasonal fluctuations in volume of sales. It is interesting to note that the retail price of organic fluid milk has not changed significantly in the last two years. The graph does not account for any milk sold into manufacturing (Classes 2 through 4)

 

 

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