Prices received by farmers

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Material Information

Title:
Prices received by farmers
Portion of title:
Minnesota-Wisconsin manufacturing grade milk price series and final two-state estimates for ..
Physical Description:
v. : ; 28 cm.
Language:
English
Creator:
United States -- Crop Reporting Board
Publisher:
Crop Reporting Board, Economics and Statistics Service, U.S. Dept. of Agriculture
Place of Publication:
Washington, D.C
Frequency:
annual
regular

Subjects

Subjects / Keywords:
Milk -- Prices -- Statistics -- Periodicals -- Wisconsin   ( lcsh )
Milk -- Prices -- Statistics -- Periodicals -- Minnesota   ( lcsh )
Genre:
federal government publication   ( marcgt )
statistics   ( marcgt )

Notes

Dates or Sequential Designation:
Began with: 1973/1975 (issued July 1976)
Dates or Sequential Designation:
Began with: 1973/1975 (issued July 1976); ceased publication.
General Note:
"Pr 1-4."

Record Information

Source Institution:
University of Florida
Rights Management:
All applicable rights reserved by the source institution and holding location.
Resource Identifier:
aleph - 020649179
oclc - 09164707
lccn - 2011229169
Classification:
lcc - HD9282.U5 P7
System ID:
AA00013002:00003

Related Items

Preceded by:
Prices received by farmers. Manufacturing grade milk in Minnesota and Wisconsin
Succeeded by:
Prices received. Minnesota-Wisconsin manufacturing grade milk


This item is only available as the following downloads:


Full Text
P ycl I /(0 /c-/ /* f


PRICES RECEIVED BY FARMERS
Minnesota-Wisconsin Manufacturing Grade Milk
Price Series and Final Two-State Estimates for
1975 -1977





/ / .


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Crop
Reporting
Board
Economics, Statistics, &
Cooperatives Service


U.S. Department June 1978
of Agriculture Pr 1-4 (78)
Washington, D.C.
20250


3 -/ /J




MINNESOTA-WISCONSIN MANUFACTURING GRADE MILK PRICE SERIES
AND FINAL TWO-STATE ESTIMATES FOR 1975-77


The Economics, Statistics, and Cooperatives Service of the U. S. Department of
Agriculture publishes each month, estimates of the average price received by farmers
and the average milkfat test for milk of manufacturing grade for the preceding month
for the Minnesota-Wisconsin area.

These two States consistently produce over half of the manufacturing grade milk
marketed in the United States. The estimates relate only to manufacturing grade milk
purchased from farmers and do not include Grade A milk diverted to manufacturing uses.
Data needed for the preparation of the two-State series are collected by the offices
of the Federal-State Agricultural Statisticians in Minnesota and Wisconsin. These
data come from regularly scheduled monthly reports submitted by plants receiving manu-
facturing grade milk. After data are summarized and analyzed by the Federal-State
Statisticians, they are forwarded to Washington, D.C. for final review by the Crop Re-
porting Board and consolidation into the two-State average price and test.

The Minnesota-Wisconsin (M-W) estimate is the average price for all milk of manu-
facturing grade delivered in bulk tanks and in cans f.o.b. plant or receiving station,
before hauling costs are deducted. It includes bulk-tank, quantity, or other premiums
paid to producers, but excludes hauling subsidies. The price estimates for a given
month are derived from two factors: (1) Estimated average price for the base month,
which is the month preceding that to which the M-W price estimate relates, and (2)
Estimate of change from the base month to the month to which the M-W price estimate
relates.

The base-month price and test are determined from reports from about 190 plants
in Wisconsin and 110 in Minnesota. These plants purchase approximately 60 percent of
all manufacturing-grade milk sold in the two States. Plants report total pounds of
manufacturing-grade milk received from producers, total pounds of milkfat in the milk,
and total dollars paid to producers.

The estimated monthly prices and fat tests are weighted together by the total
quantity of manufacturing-grade milk purchased from farmers in each State. During the
first four months of the year, these weights are based on milk purchases for the same
month two years earlier. During the remaining eight months of the year, weights are
based on purchases for the corresponding month in the preceding year.

The 300 plants in the base-month sample are well distributed geographically over
both States and represent all the major types of processing plants using manufacturing-
grade milk. At the end of the year, reports from all manufacturing-grade milk plants
in each State indicate close agreement with the monthly prices derived from the 300
plants.

The estimate of change from the base month to the month to which the M-W price
estimate relates is estimated from reports from a sample of 110 plants selected in the
two States (about 40 plants in Minnesota and 70 in Wisconsin). These plants reports
are also evaluated in terms of changes from the base month in wholesale prices of manu-
factured dairy products and historical price and fat-test relationships. Estimated
changes in price and fat-test are applied to the State average for the base month to
estimate price and fat-test for each State for the month to which the estimate relates.


MFG. GRADE MILK PRICES, JUNE 1978


CROP REPORTING BOARD, ESCS, USDA




Plants in Minnesota and Wisconsin are classified into three major product groups
according to the proportion of manufacturing-grade milk purchased for cheese, for
butter and its by-products, and for varied products. In both Minnesota and Wisconsin,
the varied products group consists mostly of plants which make butter, cheese, or
other products in such proportions that they cannot be clearly classified in any one
specific group, such as primarily buttermaking plants or cheesemaking plants. In
Minnesota during 1977, the cheese group accounted for 60 percent of all manufacturing-
grade milk in the State; butter and by-products,30 percent, and the varied-products
group, 10 percent. The proportion of manufacturing-grade milk in Wisconsin purchased
in 1977 by each product group was: cheese, 86 percent; butter and by-products, 4 per-
cent; and varied products, 10 percent.

The percentages of milk for each use are used as weights for combining reported
price and milkfat test data by groups for the monthly manufacturing-grade average
price and milkfat estimates in each State.

Data for the M-W price series are collected from the 110-plant sample, using a
questionnaire mailed near the close of each month. This inquiry obtains information
for the base month and for the first half of the succeeding month relating to:
(1) quantity of manufacturing-grade milk purchased, (2) quantity of fat included,
(3) dollars paid, (4) average price at average test, and (5) related information, such
as quantities purchased in bulk and in cans, the base price for milk with 3.5 percent
fat, and point differentials for varying amounts of fat. Space also is provided on
the inquiry for the plant manager's best estimate of the average fat test and milk
price for the last half of the month to which the M-W estimate relates.

COMPARISON OF M-W SERIES AND FINAL ESTIMATES The table on page 4 gives a comparison
of the current Minnesota-Wisconsin
manufacturing-grade milk price at average test with the final estimate combined for
the two States from 1975 through 1977, together with the corresponding comparison for
milkfat percentage. The entries in the column headed "Final Two-State Estimate" are
weighted averages of the final monthly prices for Minnesota and Wisconsin combined,
using complete monthly marketing for each State as weights.

For the 3 years 1975 through 1977, the annual average differences between the
current Minnesota-Wisconsin estimates of price per hundredweight at test and the final
data average near 2 cents; the difference in milkfat test averages is negligible.

Since the Minnesota-Wisconsin price for use in Federal milk orders is reported
on a 3.5 percent milkfat basis, a table is included showing the same comparisons con-
verted to a 3.5 percent basis. The price at average milkfat test is converted to a
3.5 percent basis using a milkfat differential per point (1/10 of one percent) that
is calculated by multiplying the average price of Grade A (92 score) butter at
Chicago by 0.120. This is the method specified in Federal milk orders.

PUBLICATION The report for each month on price per hundredweight at the average
milkfat test and on a 3.5 percent basis is issued about the 5th of the
following month from the Wisconsin office of the Economics, Statistics, and Coopera-
tives Service, P. 0. Box 9160. Madison. Wisconsin 53715. This report is available
on request. The price series is also published in the Dairy Market News reports
issued by the Dairy Market News Service.


MFG. GRADE MILK PRICES, JUNE 1978


CROP REPORTING BOARD, ESCS, USDA




COMPARISON OF MINNESOTA-WISCONSIN MANUFACTURING GRADE MILK PRICE AND MILKFAT TEST WITH
THE TWO-STATE AVERAGE OF FINAL ESTIMATES, BY MONTHS, 1975-77

MINNESOTA- FINAL : DIFFERENCE BETWEEN
YEAR WISCONSIN TWO-STATE FINAL TWO-STATE
AND SERIES ESTIMATES : AND MINN-WIS SERIES
MONTH PRICE PER : MILKFAT PRICE PER : MILKFAT PRICE PER : MILKFAT
S CWT 1/ : TEST CWT 1/ : TEST CWT 1/ TEST
1975 : DOLLARS PERCENT DOLLARS PERCENT DOLLARS PERCENT
JAN 6.98 3.73 6.93 3.73 -.05 0
FEB 7.01 3.69 7.01 3.71 0 +.02
MAR 7.00 3.67 7 03 3.69 +.03 +.02
APR 7.08 3.67 7.12 3.69 +.04 +.02
MAY 7.15 3.66 7.18 3.66 +.03 0
JUN 7.21 3.62 7.21 3.61 0 -.01
JUL 7.43 3.59 7.43 3.57 0 -.02
AUG 7.79 3.59 7.85 3.58 +.06 -.01
SEP 8.47 3.69 8.56 3.71 +.09 +.02
OCT 8.94 3.80 9.03 3.77 +.09 -.03
NOV 9.18 3.79 9.23 3.77 +.05 -.02
DEC 9.40 3.76 9.50 3.77 +.10 +.01

SIMPLE AVERAGE
1975 : 7.8033 3.6883 7.8400 3.6883 +.0367 0
1976
JAN 9.13 3.72 9.13 3.71 0 -.01
FEB 8.42 3.68 8.42 3.67 0 -.01
MAR 8.76 3.66 8.58 3.66 -.18 0
APR 8.59 3.64 8.57 3.64 -.02 0
MAY 8.43 3.62 8.45 3.61 +.02 -.01
JUN 8.41 3.58 8.45 3.55 +.04 -.03
JUL 8.76 3.54 8.79 3.52 +.03 -.02
AUG 9.07 3.56 9.05 3.54 -.02 -.02
SEP 8.62 3.64 8.72 3.64 +.10 0
OCT 8.54 3.76 8.62 3.78 +.08 +.02
NOV 8.61 3.82 8.61 3.83 0 +.01
DEC 8.58 3.80 8.55 3.80 -.03 0

SIMPLE AVERAGE
1976 : 8.6600 3.6683 8.6617 3.6625 +.0017 -.0058
1977
JAN 8.46 3.75 8.48 3.75 +.02 0
FEB 8.41 3.73 8.43 3.71 +.02 -.02
MAR 8.52 3.69 8.53 3.67 +.01 -.02
APR 8.78 3.65 8.80 3.64 +.02 -.01
MAY 8.77 3.62 8.75 3.60 -.02 -.02
JUN 8.67 3.56 8.68 3.57 +.01 +.01
JUL 8.70 3.54 8.68 3.54 -.02 0
AUG 8.74 3.58 8.76 3.57 +.02 -.01
SEP 8.97 3.69 8.99 3.68 +.02 -.01
OCT 9.09 3.79 9.17 3.80 +.08 +.01
NOV 9.14 3.79 9.23 3.79 +.09 0
DEC 9.21 3.78 9.27 3.78 +.06 0

SIMPLE AVERAGE
1977 : 8.7883 3.6808 8.8142 3.6750 +.0258 -.0058

36 MONTHS 8.4172 3.6792 8.4386 3.6753 +.0214 -.0039

1/ AVERAGE PRICE FOR MILK OF AVERAGE MILKFAT TEST.


MFG. GRADE MILK PRICES, JUNE 1978


CROP REPORTING BOARD, ESCS, USDA





COMPARISON OF MINNESOTA-WISCONSIN MANUFACTURING GRADE MILK PRICE PER CWT. WITH
FINAL TWO-STATE ESTIMATED PRICE, FOR MILK OF 3.5 PERCENT MILKFAT CONTENT, BY MONTHS, 1975-77 1/
YEAR :MINNESOTA- FINAL : DIFFERENCE BETWEEN
AND WISCONSIN TWO-STATE : FINAL TWO-STATE
MONTH SERIES ESTIMATE: AND MINN-WIS SERIES
1975 : DOLLARS
JAN 6.80 6.75 -.05
FEB 6.85 6.84 -.01
MAR 6.86 6.87 +.O1
APR 6.94 6.96 +.02
MAY 7.02 7.05 +.03
JUN 7.11 7.12 +.01
JUL 7.35 7.37 +.02
AUG 7.70 7.77 +.07
SEP 8.27 8.34 +.07
OCT 8.60 8.73 +.13
NOV 8.84 8.91 +.07
DEC 9.08 9.17 +.09

SIMPLE AVERAGE
1975 :7.618 7.657 +.039
1976
JAN 8.90 8.91 +.01
FEB 8.25 8.26 +.01
MAR 8.60 8.42 -.18
APR 8.44 8.42 -.02
MAY 8.30 8.33 +.03
JUN 8.32 8.39 +.07
JUL 8.71 8.76 +.05
AUG 8.99 9.00 +.01
SEP 8.46 8.56 +.10
OCT 8.26 8.31 +.05
NOV 8.26 8.25 -.01
DEC 8.25 8.22 -.03

SIMPLE AVERAGE
1976 : 8.478 8.486 +.008
1977
JAN 8.19 8.21 +.02
FEB 8.16 8.20 +.04
MAR 8.31 8.34 +.03
APR 8.60 8.63 +.03
MAY 8.62 8.63 +.01
JUN 8.60 8.60 0
JUL 8.65 8.63 -.02
AUG 8.64 8.68 +.04
SEP 8.74 8.77 +.03
OCT 8.74 8.81 +.07
NOV 8.79 8.88 +.09
DEC 8.87 8.93 +.06

SIMPLE AVERAGE
1977 : 8.576 8.609 +.033

36 MONTHS 8.2242 8.2506 +.026


I/ RKILtLS HAVt BtLN
rERENTIAL SPECIFIED


MFG. GRADE MILK PRICES, JUNE 1978


D ETREVNOC PROM THE AVERAGE MILKPAY
IN FEDERAL ORDERS (CHICAGO GRADE A BUTTER X 0.120).


CROP REPORTING BOARD, ESCS, USDA




MANUFACTURING GRADE MILK:


WEIGHTS USED TO CALCULATE THE MNNESOTA-WISCONSIN MILK
PRICE SERIES, BY MONTHS, 1977-79 1/


1977 1978 1979
MONTH :
MINN WIS MINN WIS MINN WIS
MILLION POUNDS

JAN : 428 528 426 530 405 532
FEB 429 497 416 517 410 560
MAR 491 581 464 571 453 595
APR 481 601 467 608 466 621
MAY 503 668 482 689
JUN 486 680 447 667
JUL : 421 625 400 639
AUG 370 587 354 603
SEP 318 517 314 537
OCT 326 495 320 514
NOV : 340 474 317 479
DEC 389 512 360 512

1/ WEIGHTS SHOWN FOR JAN THROUGH JUN ARE BASED UPON MANUFACTURING GRADE MILK PURCHASED FROM FARMERS
FOR TWO YEARS EARLIER WHILE WEIGHTS FOR JUL THROUGH DEC ARE BASED UPON PURCHASES FROM A YEAR EARLIER.
BEGINNING MAY 1978 WEIGHTS SHOWN FOR JAN THROUGH APR ARE BASED UPON PURCHASES OF MANUFACTURING GRADE
MILK TWO YEARS EARLIER WHILE WEIGHTS FOR MAY THROUGH DEC ARE BASED UPON PURCHASES FROM A YEAR EARLIER.


MFG. GRADE MILK PRICES, JUNE 1978


CROP REPORTING BOARD, ESCS, USDA


































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