Annual summaries of the forces that shaped the animal products industries during the previous year and how those forces are expected to affect the current year's outlook are available from the Livestock, Dairy, and Poultry Outlook page. Instead of providing a separate report covering all the commodities once a year, we will release summaries for the various commodities in the newsletter as information becomes available.

Economic Effects of U.S. Dairy Policy and Alternative Approaches to Milk Pricing shows that the effects of dairy programs on markets are modest and that current dairy programs are limited in their ability to change the longterm economic viability of dairy farms. Other forces—technology, changing consumer demand, and changes in the marketing and processing sectors—while difficult to measure, are likely to have more impact. (This file is 1.5 MB in size and may take time to download.)

Current World Production, Market, and Trade Reports provide information and data on world markets and trade for dairy, livestock, and poultry.

Effects of U.S. Dairy Policies on Markets for Milk and Dairy Products examines the economic effects of the principal current dairy sector programs. The analytical results address the economic impacts of Federal milk marketing orders, direct payments to producers, price supports, and export programs.

Characteristics and Production Costs of U.S. Dairy Operations presents findings from the 2000 Agricultural Resource Management Survey (ARMS), the most recent national survey of milk producers. Milk producers in the West had a significant cost advantage over producers in other regions in 2000 because their operations were much larger. Operations with 500 or more milk cows had significantly lower total operating and ownership costs, indicative of the economies of size experienced by larger operations.

Manure Management for Water Quality evaluates the costs of spreading manure on cropland at the farm, regional, and national levels. EPA regulations enacted in February 2003 require concentrated animal feeding operations (generally the largest producers of hogs, chicken, dairy, and beef cattle) to meet nutrient application standards when spreading their manure on cropland in order to preserve water resources from nitrogen and phosphorus runoff. USDA is encouraging all animal feeding operations to do the same. If all operations meet the new standards, increases in production costs could be felt throughout the food and agricultural system.

The Changing Landscape of U.S. Milk Production illustrates how milk production has changed in the United States since 1975. Questions of how much milk is produced, where it is produced, and by whom it is produced are important both nationally and regionally. Dairy farms continue to grow, become more specialized, and, in some regions, more concentrated. But small traditional dairy farms also remain part of the industry. Link here to download Excel spreadsheets with data supporting various charts and figures in the report.

Milk Pricing in the United States provides a primer on the U.S. milk market, cutting through the complexities to describe key pricing mechanisms and to provide a basis for more detailed study. Farm milk prices in the United States are determined by public and private pricing institutions whose interactions have become complex.

The Changing Structure of Dairy Markets: Past, Present, Future indicates that the markets for fluid milk and manufactured dairy products have changed dramatically since the 1970's. Companies selling most or all types of dairy products have given way to companies or subsidiaries selling one or two. Large proprietary and cooperative firms, both U.S. and foreign-owned, are major participants in U.S. dairy markets. This report discusses how dairy markets reached their current state and implications for the future.

Large Companies Active in Changing Dairy Industry looks at concentration in the U.S. industry and its effects.

U.S. Dairy Product Markets Restructuring describes fluid milk, cheese, butter, frozen products, and dry milk markets, their evolution, and their likely future.

Federal Milk Marketing Orders: Consolidation and Reform describes changes in the Federal milk marketing order system in the United States called for by the 1996 Farm Act.

Price Volatility in the Dairy Industry and It's Causes indicates that dairy product price volatility has been a more prominent issue in the dairy industry since the 1996 Farm Act went into effect. But, volatility is not really a "new" issue. This paper examines some of the causes of volatility in the dairy industry.

International Dairy Markets and the WTO (page 7 of the Livestock, Dairy, and Poultry Situation and Outlook report) discusses changes in international dairy markets, effects of the Uruguay Round on dairy markets, and pending dairy issues as new negotiations begin. The article stresses issues for improving trade for all participants, not just for the United States.

for more information, contact: James J. Miller
web administration: webadmin@ers.usda.gov
page updated: October 18, 2004