Mideast Market Administrator's
B
u
l
l
e
t
i
n
Federal Order No. 33
D
avidZ
.W
alker, M
arketA
d
m
inistrator
Phone: (440)826-3220
T
o
llF
ree: (888)751-3220
E
m
ail: clevelandm
a1@
sprynet.com
W
ebPage: w
w
w
.fm
m
aclev
.com
August 2003
RAPID RISE IN CHEESE MARKET NETS NEGATIVE
PRODUCER PRICE DIFFERENTIAL
The announced JulyP
roducerP
riceD
ifferential(P
P
D
)fo
rO
rder33 is
$-0.10. T
h
isisthefirsttim
esincetheM
ideastO
rderw
asfo
rm
edinJanuary
2000that anegativePPDhasbeenannounced. T
h
eP
P
Discalculatedby
sum
m
ingthevalueofallm
ilkinthepoolusedinC
lassesI,II,IIIandIVat
the applicable class/com
ponent prices less the producer value of all
com
ponentspricedattheC
lassIIIbutterfat,p
roteinandothersolidsprices.
T
h
eP
P
Dtherefo
rerepresentstheam
ountb
yw
hichtheblendedclassvalue
o
fthepoolexceedsthatC
lassIIIprice. IftheC
lassIIIp
riceexceedstheother
C
lassp
ricesanegativePPDm
ayoccur. T
h
isw
asthesituationinJuly. T
h
is
p
riceinversion, w
heretheC
lassIIIp
riceexceedstheotherC
lassprices, is
theresultofthetim
ingofthecalculationoftheC
lassp
rices.
T
h
eN
ational A
g
ricultural S
tatisticsService (N
A
S
S
)announcesw
eekly
com
m
odityp
ricesbasedonthecheese, butter, nonfat drym
ilkandw
hey
pow
dersalestransactions. Thesecom
m
odityp
ricesareusedtocom
pute
com
ponentp
ricesthatapplytothevariousclasses. T
h
eC
lassIandC
lassII
skim
pricesareannouncedinadvanceofthem
onthinw
hichtheyapplyw
hile
theC
lassIIbutterfatandtheC
lassIIIandIVp
ricesareannouncedthew
eek
afterthem
onthinw
hichtheyapply. T
h
e
refo
re,thereisap
p
roxim
atelyasix
w
eekdifferenceintheannouncem
entsandlargefluctuationsincom
m
o
d
ity
p
ricescanhaveagreatim
pactontheC
lassprices. T
h
eN
A
S
Ssurveyprice
forcheddarcheeseincreasedfrom$1.1387perpoundfortheJulyadvance
p
ricesannouncedJune20,usedtoestablishtheC
lassIp
rice,to$1.3497w
ith
theJulyfinalpricesannouncedA
ugust1, usedtoestab
lishC
lassIIIprices.
T
h
israpidincreaseintheN
A
S
ScheesepriceresultedinaJulyC
lassIIIp
rice
thatishigherthantheotherthreeC
lassprices. T
h
isresultedintheaverage
classifiedvalueofthepoolbeinglessthantheC
lassIIIvalueandtherefore
anegativePPD
.
W
hiletherapidriseinthecheesepricehadanegativeim
pactonthePPD
portionoftheproducerpaym
ents,ithadaveryp
o
sitiveim
pactontheoverall
returntoproducers. T
h
eS
tatisticalU
niformP
riceof$11.68hasincreased
$1.05overlastm
onthand$0.83overJuly2002. T
h
eN
A
S
Scheesepricehas
alreadyincreasedsubstantiallyoverthe$1.2685announcedonJuly18,2003
that w
as used to calculate the A
ugust C
lass I p
rice. S
h
o
u
ldthis trend
continue,theresultw
illbeanegativ
eP
P
DinA
ugustbutalsoacontinuedrise
intheS
tatistical U
niformP
rice.
USDA SETS HEARING TO CONSIDER AMENDING THE
PACIFIC NORTHWEST AND ARIZONA-LAS VEGAS
MILK MARKETING ORDERS
U
S
D
Aw
ill holdapublichearingbeginningat8:30a.m
. onSeptem
ber
23,2003attheSheratonA
irportH
otel,1600South52ndS
t.,T
e
m
p
e
,A
rizona,
onproposalsthatw
o
u
ldam
endcertainproducer-handlerprovisionsinthe
PacificN
o
rthwestandA
rizona-LasV
egasm
ilkm
a
rketingorders.
P
roposalstobeconsideredw
ouldendtheregulatoryexem
ptionfro
mthe
pricingandpoolingprovisionsofthePacificN
orthwestandtheA
rizonaL
asV
egasm
ilkmarketingordersforproducer-handlersw
hoseC
lassIroute
d
isp
o
sitionexceedsthreem
illionpoundsperm
onth.Inaddition,ap
roposal
w
ill beconsideredthat w
ouldelim
inatetheabilitytosim
ultaneouslyp
o
o
l
thesam
em
ilkontheA
rizona-LasV
egasm
ilkorderandonaS
tate-operated
o
rderthatprovidesform
arketw
idepooling.
Thenoticeofthehearingw
aspublishedintheA
ug.6Federal Register.
C
o
p
iesm
aybeobtainedfromthePacificN
o
rthwest,A
rizona-L
asV
egas&
W
esternm
ilkmarketingordersoffice,U
S
D
A
/A
M
S
/D
airyP
rogram
s, 1930
-220thS
treet, S
.E
., S
u
ite102, B
o
thell,W
ashington98021-8471orU
S
D
A
/
A
M
S
/D
airyP
rogram
s, 10050N
orth25thA
venue, S
u
ite302, Phoenix,A
Z
85021-1664orA
M
S
/D
airyP
rogram
s,U
S
D
A
S
top0231-R
o
o
m
2971,1400
IndependenceA
venue, S
W
,W
ashington,D
.C
. 20250-0231.
JUNE MILK PRODUCTION DOWN 0.1 PERCENT
M
ilkproductioninthe20m
ajo
rS
tatesduringJunetotaled12.3billion
pounds,dow
n0.1percentfromJune2002.M
ayrevisedproduction,at13.0
b
illionpounds, w
asdow
n0.4percent fro
mM
a
y2
0
0
2
. T
h
eM
ayrev
ision
rep
resentedadecreaseof9m
illionpoundsfro
mlast m
onth’
sprelim
inary
productionestim
ate.
P
roductionperco
winthe20m
ajorS
tatesaveraged1,587poundsfor
June, unchangedfromJune2002.
Thenum
berofm
ilkcow
sonfarm
sinthe20m
ajo
rS
tatesw
as7.77m
illion
head, 10,000headlessthanJune2002, and11,000headlessthanM
ay
2003.
T
h
eM
ideastM
arketingA
reahasfourstatesrepresentedinthe20m
ajo
r
statesusedabove. TheyareIndiana, M
ichigan, O
hio,andPennsylvania.
M
ilkproduction in these M
ideast states duringJune to
taled 2.0billion
pounds, dow
n24m
illionpoundsor1.2percentfromJune2002.
P
roductionperco
wintheM
ideaststatesaveraged1,538poundsforJune,
22poundsaboveJune2002.
Thenum
berofcow
sonfarm
sintheM
ideaststatesw
as1.3m
illionhead,
16,000headlessthanJune2002.
JULY 2003
POOL SUMMARY
Classification of Producer Milk
C
lassI
521,934,715
C
lassII
251,726,536
C
lassIII
183,838,831
C
lassIV
60,781,149
T
o
tal
1,018,281,231
Producer Prices
P
roducerPriceD
ifferential
B
u
tterfatP
rice
P
roteinPrice
O
therS
o
lidsPrice
S
o
m
aticCellA
d
justm
ent R
ate
S
tatistical U
nifo
rmP
rice
Percent
51.2
24.7
18.1
6.0
100.0
$(0.10) /cw
t
1.2055 /lb
2.5480 /lb
(0.0124) /lb
0.00067 /cw
t
11.68 /cw
t
MIDEAST MARKET ADMINISTRATOR'S BULLETIN
AUGUST 2003
ANNOUNCEMENT OF PRODUCER PRICES
Federal Order No. 33
JULY 2003
COMPUTATION OF PRODUCER PRICE DIFFERENTIAL
P
O
U
N
D
S
C
lassIS
k
imV
alue
C
lassIB
u
tterfat
C
lass I L
o
cationD
ifferential
C
lassIIS
N
FV
alue
C
lassIIB
u
tterfat
C
lassIIIP
ro
teinV
a
lue
C
lassIIIO
therSolidsV
alue
C
lassIIIB
u
tterfat
C
lassIVS
N
FV
alue
C
lassIVB
utterfat
S
o
m
aticC
e
llV
alueII/III/IV
TOTAL PRODUCER MILK VALUE
B
U
T
T
E
R
F
A
T
S
K
IM
/
P
R
O
T
E
IN
511,978,694
N
O
N
F
A
T
S
O
L
ID
S
O
T
H
E
R
S
O
L
ID
S
9,956,021
521,934,715
21,143,054
15,301,610
5,354,429
10,431,312
6,668,932
5,060,120
4,017,119
1,018,281,231
35,943,682
29,755,164
58,068,669
O
v
e
rages
B
eginning Inventory
TOTAL ADJUSTMENTS
P
R
IC
E
V
A
L
U
E
$7.92 /cw
t $40,548,712.55
1.1790/ lb
11,738,148.78
(264,286.40)
0.7356/ lb
15,552,830.48
1.2125/ lb
18,553,202.16
2.5480/ lb
13,643,085.07
(0.0124)/ lb
(129,348.27)
1.2055/ lb
8,039,397.54
0.6605/ lb
3,342,209.26
1.2055/ lb
4,842,636.97
81,894.13
$115,948,482.27
$16,771.18
109,662.40
$
TOTAL HANDLER OBLIGATIONS
$116,074,915.85
T
o
talP
ro
teinV
a
lue
T
o
talO
ther S
o
lidsV
alue
B
utterfat V
alue
T
o
talS
o
m
aticC
e
ll V
alues
TOTALS
29,755,164lbs
58,068,669lbs
35,943,682lbs
@
@
@
$2.5480
(0.0124)
1.2055
$ (75,816,157.86)
720,051.48
(43,330,108.66)
(58,212.57)
$ 2,409,511.76
N
et P
roducerLocatio
nA
d
justm
ents
1/2U
n
o
b
ligatedB
alanceProducerSettle
m
e
n
tF
u
n
d
$
T
o
tal-D
ividedbyTotalPounds
R
ateofC
ashR
eserve
PRODUCER PRICE DIFFERENTIAL at Cuyahoga County, OH*
COMPONENT PRICES
1,018,281,231 lbs
(0.0518585)
(0.0481415)
$ (0.10) / cwt
1,018,281,231
(528,065.66)
(490,215.86)
$ (1,018,281.52)
COMPUTATION OF UNIFORM PRICE
2003
$1.2055 / lb
2.5480 / lb
(0.0124) / lb
0.00067 /cw
t
0.6605 / lb
CLASS PRICES
July
2002
$1.0929 / lb
1.8095 / lb
0.0150 / lb
0.00055 /cw
t
0.7633 / lb
C
lassIIIP
rice -3.5%B
F
P
roducer P
rice D
ifferential*
S
tatistical U
niformP
rice
2003
$ 11.78
(0.10)
$11.68
C
lassI*
C
lassII
C
lassIII
C
lassIV
*S
u
b
ject toL
o
c
a
tionA
d
justm
ent.
2002
$9.33
1.52
$10.85
CLASSIFICATION OF PRODUCER MILK
July
2003
$11.77
10.63
11.78
9.95
581,446.10
1,300,000.00
$
July
B
utterfat P
rice
P
ro
teinP
rice
O
ther S
o
lidsPrice
S
o
m
aticC
e
ll A
d
justm
ent R
ate
N
onfat S
o
lidsPrice
126,433.58
July
2002
$12.62
11.14
9.33
10.45
C
lassI
C
lassII
C
lassIII
C
lassIV
T
o
tal
2003
Product lbs.
521,934,715
251,726,536
183,838,831
60,781,149
1,018,281,231
2002
Product lbs.
522,927,772
102,187,085
779,755,040
25,250,042
1,430,119,939
ORDER 33 MARKET SUMMARY
Julyp
roducerreceip
ts o
f1.02billionpoundsw
ere28.8percent lo
w
e
r
T
h
eP
roducerP
riceD
ifferentialfo
rtheM
ideastM
arketingA
reafo
rJuly
w
e
r thanJuly2002productionof1.43
2003w
as$-0.10andtheS
tatisticalU
nifo
rmP
ricew
as$11.68forthem
onth. thanJune2003, and28.8percentlo
illionpounds.P
roducerm
ilkallocatedtoC
lassIaccountedfor51.2percent
T
h
eS
tatisticalU
nifo
rmP
riceis$1.05higherthanlastm
onth,andis$0.83 b
o
fthetotalproducerm
ilkinJuly2003, m
orethanthe34.0percentinJune
higherthanJuly2002.
andm
orethanthe36.6percentinJuly2002.A
to
talof9,385producersw
ere
T
h
eP
roducerB
u
tterfatP
riceof$1.2055perpoundincreased4.79cents
p
o
o
ledontheM
ideastO
rderw
ithanaveragedailydeliveryof3,500pounds
fro
mJune2003andisup11.26centsfromayearago.T
h
eP
roteinPriceof
com
paredto11,349producerspooledinJuly2002w
ithanaveragedaily
$2.5480isup60.46centsfro
mlastm
onthandisup73.85centsfromJuly
deliveryof4,065pounds.
2002. T
h
eO
therS
o
lidsPriceinJulyw
as$-0.0124perpound, anincrease
T
h
em
arketaveragecontent o
fproducerm
ilkwasasfollow
s:B
u
tterfat
fro
mlast m
onth’
spriceof$-0.0200andadecreaseof2.74centsfro
mlast
;P
rotein2.92%
;O
therS
o
lids5.70%andN
onfatS
o
lids8.62%
.
July
.T
h
eO
therS
o
lidsPricew
asnegativeduetotheaveragew
holesalep
rice 3.53%
o
fdryw
heypow
derbeinglessthanthem
akeallowancepriceof15.9cents
forthem
onth.T
h
eS
o
m
aticC
e
llA
d
justm
entratefo
rJulyw
a
s$
0
.00067.
MIDEAST MARKET ADMINISTRATOR'S BULLETIN
AUGUST 2003
COMMODITY RECAP: CHEESE PRICES RISING RAPIDLY
T
h
eN
A
S
Sm
onthlycom
m
odityp
ricesforcheesehaverisensharplyinthepastsixw
eeks. TheJunew
eightedaveragecheesepricew
as$1.1576perpound
andtheA
ugustw
eightedaveragecheesepriceispredictedtobebetw
een$1.50and$1.60perpound. T
h
ew
eightedaveragecheesepriceperpoundaveraged
$1.1313in2000, $1.4264in2001, $1.1855in2002,andhasaveraged$1.1576sofarin2003.
T
h
eN
A
S
Sm
onthlycom
m
odityp
ricesforbutterhaveshow
ngradualgaininthepasttw
om
o
n
ths.T
h
eJunebutterpricew
as$1.0797perpoundandthe
A
ugustbutterp
riceisestim
atedtobebetw
een$1.18and$1.22perpound.Thebutterpriceperpoundaveraged$1.1408in2000,$1.6304in2001,$1.0931
in2002, andhasaveraged$1.0767sofarin2003.
T
h
eN
A
S
Sm
onthlycom
m
odityp
ricesfornonfatdrym
ilkp
o
w
derhavebeenrelativelyflatforthepastfivem
onths. T
h
eM
archnonfatd
rym
ilkp
ricew
as
$0.8051perpoundandtheestim
atefo
rtheA
ugust nonfat d
rym
ilkp
riceisbetw
een$0.8050and$0.8150perpound. Thenonfatd
rym
ilkpriceperpound
averaged$1.0115in2000, $0.9791in2001, $0.9043in2002, andhasaveraged$0.8079sofarin2003.
T
h
eN
A
S
Sm
onthlycom
m
odityp
ricesfordryw
h
e
yp
o
w
derhaveshow
nim
p
rovem
entsinceJune. TheJunedryw
heypricew
as$0.1396perpoundand
theA
ugustdryw
heypriceisp
redictedtobebetw
een$0.1500and$0.1570perpound. T
h
ed
ryw
h
e
yp
riceperpoundaveraged$0.1863in2000,$0.2700
in2001, $0.1974in2002, andhasaveraged$0.1551sofarin2003.
Butter Price
Weighted Av erage Cheese Price
$1.6500
$2.1000
$1.5000
$1.7500
$1.3500
$1.4000
$1.2000
$1.0500
$1.0500
$0.7000
$0.9000
Jan
Mar
2000
May
2001
Jul
Sep
2002
Jan
Nov
Mar
2000
2003
May
2001
Jul
Sep
2002
Nov
2003
Dry Whey Prices
NFDM Prices
$0.3200
$1.0500
$1.0000
$0.2700
$0.9500
$0.9000
$0.2200
$0.8500
$0.1700
$0.8000
$0.7500
$0.1200
Jan
Mar
2000
May
2001
Jul
Sep
2002
Nov
Jan
Mar
2000
2003
May
2001
Jul
Sep
2002
Nov
2003
Weighted Averages - Butterfat, Protein, Other Solids, Somatic Cell Count by State
Federal Order No. 33
June 2003*
S
tate
N
umberof
P
roducers
M
ichigan
O
hio
W
isconsin
Indiana
Pennsylvania
N
e
wY
o
r
k
Illinois
W
est V
irginia
C
alifornia
O
ther
Poundsof
M
ilk(000)
B
u
tterfat
-----W
eighted A
verages----O
ther
S
C
C
P
rotein
Solids (000)
2,477
2,539
1,827
1,250
1,369
472
84
86
460,534
321,470
257,533
142,610
122,412
95,107
11,691
6,776
3.51
3.67
3.58
3.61
3.68
3.58
3.60
3.57
2.95
3.00
2.93
2.99
3.00
2.94
2.96
3.07
5.74
5.71
5.75
5.74
5.70
5.70
5.77
5.69
288
329
300
308
370
257
318
435
132
11,301
3.65
3.04
5.74
350
T
o
tal/A
verage 10,236
1,429,435
3.59
2.96
5.73
308
___________________
*T
o
talsm
aynotaddduetorounding. D
ataprovidedonaonem
onthdelaybasis.
June 2002
------W
eighted A
verages-----Poundsof
O
ther S
C
C
M
ilk(000) B
u
tterfat P
rotein Solids (000)
467,679
308,032
421,618
120,225
134,999
98,302
13,544
6,193
46,137
12,133
3.53
3.60
3.65
3.59
3.63
3.61
3.59
3.52
3.57
3.61
2.92
2.98
2.92
2.95
2.98
2.90
2.95
3.02
2.99
3.01
5.76
5.73
5.71
5.73
5.72
5.69
5.76
5.70
5.71
5.74
273
318
282
320
359
258
342
356
292
384
1,628,861
3.59
2.94
5.73
296
United States
Department of
Agriculture
PRSRT STD
U.S. POSTAGE
PAID
Cleveland, Ohio
Permit No. 2511
Mideast Market Administrator Bulletin
7851 Freeway Circle
P.O. Box 30128
Cleveland, Ohio 44130
POSTMASTER: Time Sensitive Material - Deliver Promptly
The United States Department of Agriculture (USDA) prohibits discrimination in all its programs and activities on the basis of race, color, national origin, gender, religion, age, disability, political beliefs, sexual
orientation, and marital or familial status. (Not all prohibited bases apply to all programs.) Persons with disabilities who require alternative means for communication of program information (braille, large
print, audiotape, etc.) should contact the USDA's TARGET Center at (202)720-2600 (voice and TDD).
To file a complaint of discrimination, write USDA, Director, Office of Civil Rights, Room 326-W, Jamie L. Whitten Building, 14th and Independence Avenue SW. Washington, DC 20250-9410 or call (202) 7205964 (voice and TDD). USDA is an Equal Opportunity provider and employer.
FEDERAL ORDER DATA
JULY 2003
M
arketingA
rea1/
F
O1
F
O5
F
O6
F
O7
F
O30
F
O32
FO 33
F
O124
F
O126
F
O131
F
O135
1/
2/
N
o
rtheast- (Boston)
A
ppalachian- (Charlotte)
F
lorida- (Tampa)
S
o
u
theast- (Atlanta)
U
pperM
idw
est- (Chicago)
C
entral- (Kansas City)
Mideast - (Cleveland)
PacificNorthwest-(Seattle)
S
o
u
thw
est- (Dallas)
A
rizona-LasV
egas-(Phoenix)
W
estern-(Salt Lake City)
T
o
tal
P
roducer M
ilk
C
lassI
C
lassI
Percent
(000)
(000)
%
2,016,824
480,581
226,404
551,309
660,023
759,813
1,018,281
411,485
595,392
243,853
176,100
845,718
370,270
196,225
365,682
327,804
374,014
521,935
172,453
325,128
82,925
92,613
41.9
77.1
86.7
66.3
49.7
49.2
51.2
41.9
54.6
34.0
52.6
P
roducer
P
riceD
ifferential
$0.68
2/
2/
2/
(0.41)
(0.29)
(0.10)
(0.85)
0.23
2/
(0.34)
N
am
esinparenthesesareprincipalpointsofm
arkets.
P
roducersinthesem
arketsarepaidonthebasisofauniformskimandbutterfatp
rice.
MINIMUM PARTIAL PAYMENT PRICE FOR AUGUST 2003 ..................................... $9.95 /cwt.
S
tatistical
U
nifo
rmP
rice
$12.46
12.49
13.46
12.47
11.37
11.49
11.68
10.93
12.01
11.53
11.44