Released May 22, 2009
URBANA, Ill. -- Consumers have reason to celebrate the approach of June Dairy Month, said a University of Illinois Extension dairy specialist.
"The cost of dairy products has dropped in many markets as the price paid dairy farmers has dropped 40 percent at the farm gate," said Mike Hutjens. "That 40 percent drop translates to 50 cents less a gallon for dairy farmers, from $1.70 to $1.20 a gallon.
"While dairy managers are facing huge losses--$10,000 a month for a herd of 100 cows--consumers can buy milk in the Midwest below $2.50 a gallon and butter below $2.50 a pound."
Hutjens noted that June Dairy Month focuses on dairy products, new dairy product recipes, and displays in the dairy case.
"Dairy products remain popular because they contain high-quality protein with all essential amino acids and whey proteins that are important in weight control," he said. "Milk contains high levels of calcium, potassium, magnesium, and phosphorus."
Milk and milk products can be particularly important for older consumers.
"A calcium deficiency called osteoporosis or bone deterioration continues to be a challenge for older Americans," he said. "Milk and milk products can provide 73 percent of the calcium in a balanced diet.
"Daily U.S. dietary guidelines include two servings of dairy products for children from one to eight years of age and three dairy servings for children over nine years and adults."
Favorite Products
So what kinds of milk and milk products are most favored by U.S. consumers?
"If you were the average U.S. consumer in 2007, the last year for which data is available, you consumed 81.5 pounds of reduced or low fat milk, 54.8 pounds of whole milk, 37.8 pounds of fat-free milk, and 17.9 pounds of flavored milk, for a total of 20.7 gallons a year," he said.
"You also ate 31.9 pounds of cheese, 21.2 pounds of ice cream, and 4.4 pounds of butter. Vanilla ice cream remains the number one flavor at 30 percent out of the 45 flavors available."
Dairy products that did quite well in 2007 included yogurt,which saw a 4.8 percent increase in consumption. There was a 3.98 percent increase for sour cream and dips, and a 2.6 percent increase for cheese.
Dairy products that had more difficulty in 2007 included eggnog, which saw 7a .4 percent decrease in consumption, and whole milk, which declined 4.8 percent.
"These trends indicate changes in dairy products reflecting consumer's desire for lower-caloric products such as yogurt," he said. "But, on the other hand, sour cream and dips reflect flavor and snack choices.
"The advantage of a wide variety of dairy products is that it allows consumers to pick their favorite product based on fat content, caloric intake, flavor, taste, cost, and food recipe alternatives."
In the grocery store aisle, consumer dairy choices, controversy, and prices enter into the selection process. Another choice is the method of milk production on the farm.
"The first quarter of 2009, the American Farm Bureau Association supermarket price summary reported organic milk at $3.71 per half gallon," he said. "rBST-labeled milk--milk from cows not injected with the growth hormone bovine somatotropin--cost $3.19 per half gallon and conventional/'green' milk was $2.16 per half gallon.
"'Green' milk is produced by dairy farmers using all approved technology to produce milk leading to a lower carbon footprint and more efficiency, i.e., more milk per cow at a lower cost to produce milk."
Currently, dairy farmers receive $11 to $14 per 100 pounds while the cost to produce this milk will range from $15 to $18, depending on the region in the United States, feed costs, herd size, and investments needed to house and manage cows.
Supermarkets continue to be the primary source of purchasing milk, accounting for 72 percent of all milk sold, while drug stores sell 3 percent. Federal school programs utilize 5.6 percent of all U.S. sales.
"Italian cheese is the most popular type of cheese at 14 pounds for a total of 31.9 pounds consumed per capita," he said. "American cheese comes in at 12.8 pounds. There are over 300 varieties of cheese available in the U.S. market."
No dairy products were purchased in 2007 by the government milk price support program. Mexico was our largest foreign customer, and the United States exported nearly 11 percent of all dairy production in 2008, with record exports improving the U.S. balance of payments.
In 2008, the U.S. dairy industry included 57,127 dairy farm operations, representing a decline of 4.4 percent from 2007. In 2008, there were 9.32 million dairy cows in the United Sates, up 1.4 percent from 2007, with these cows producing 189.9 billion pounds of milk, up 2.3 percent over 2007.
"In 2008, U.S. dairy cows averaged 20,936 pounds of milk per cow," said Hutjens. "In comparison, the European Union of 27 countries has 24.3 million dairy cows producing 12,015 pounds of milk per cow.
"The continued improvements in efficiency in the U.S. dairy industry reflect higher milk yield per cow, resulting in lower-priced milk and dairy products for U.S. consumers."
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http://www.aces.uiuc.edu/news/stories/news4793.html
Source: Michael Hutjens (217) 333-2928
Writer: Gary Beaumont, 217-333-9440, beaumont@uiuc.edu
