Wholesale Cheese Prices

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(No Transcript)
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Milk Cows
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Milk per Cow
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Milk Production
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Change in Milk Production 1999-2000
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Cheese Production
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Cheese Inventory
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Butter Production
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Butter Inventory
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Consumer Price Index
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Retail Milk Prices
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Retail Cheese Prices
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Wholesale Cheese Prices
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Commercial Disappearance
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Consumer Confidence
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Demand is Strong, but

• Commercial Disappearance has been increasing at
  between 2.5-3.5
• Milk Production has been increasing between
  3.5-4.1
• We really need to slow the growth in output just
  a bit.

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Futures Markets for 2001
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My Price Projections
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Class III Is Not a Benchmark

• The higher of has made quite a difference!
• Will have returned an additional 0.50
• Milk is moving everywhere.
• Northeast premiums have been large.
• Its not as bad as many people have indicated.
• There are regional differences.

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Policy

• Direct payments to producers
• 13 earlier last year
• 65 Just before the New Year
• WTO has begun
• Farm Bill discussion has begun
• Agriculture is heavily supported
• Tentative decision for FMMOs

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What is a Good Price?
Class III Milk Prices 1990-2000
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Milk/Feed Price Ratio