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:
AA00013002:00004

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
fI I(/'I ( Ir fI-I I/ I** I)

PRICES RECEIVED BY FARMERS
Minnesota-Wisconsin Manufacturing Grade Milk
Price Series and Final Two-State Estimates for
1976- 1978


SCrop
Reporting
Board
Economics, Statistics, &
Cooperatives Service


June 1, 1979
Pr 1-4(79)


U.S. Department
of Agriculture
Washington, D.C.
20250


-




MINNESOTA-WISCONSIN MANUFACTURING GRADE MILK PRICE SERIES
AND FINAL TWO-STATE ESTIMATES FOR 1976-78

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 Statis-
ticians in Minnesota and Wisconsin. These data come from regularly scheduled monthly reports
submitted by plants receiving manufacturing 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 Reporting 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 manufacturing
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) Es-
timated 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 175 plants in Wisconsin
and 100 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 275 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 275 plants.

The estimate of change from the base month to the month to which the M-W price estimate re-
lates is based on 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 manufactured 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 es-
timate relates.


MFG. GRADE MILK PRICES, JUNE 1979


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 dur-
ing 1978, the cheese group accounted for 62 percent of all manufacturing-grade milk in
the State; butter and by-products, 26 percent, and the varied-products group, 12 per-
cent. The proportion of manufacturing-grade milk in Wisconsin purchased in 1978 by
each product group was: cheese, 86 percent; butter and by-products, 4 percent; 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 manu-
facturing-grade milk price at average test with the final estimate combined for the two
States from 1976 through 1978, 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 com-
plete monthly marketing for each State as weights.

For the 3 years 1976 through 1978, the annual average differences between the cur-
rent Minnesota-Wisconsin estimates of price per hundredweight (at test) and the final
data averaged near 2 cents; the difference in average milkfat test 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 converted
to a 3.5 percent basis. The price at average milkfat test is converted to a 3.5 per-
cent basis using a milkfat differential per point (1/10 of one percent) that is calcu-
lated 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 monthly M-W report of price per hundredweight at 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 Cooperatives 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 1979


CROP REPORTING BOARD, ESCS, USDA




COMPARISON


OF MINNESOTA-WISCONSIN MANUFACTURING GRADE MILK PRICE AND VILKFAT TEST WITH
THE TWO-STATE AVERAGE OF FINAL ESTIMATES, BY MONTHS, 1976-78


: MINNESOTA- : FINAL
YEAR WISCONSIN :TWO-STATE :DIFFERENCE
AND :SERIES ESTIMATES
MONTH :PRICE PER : MILKFAT : PRICE PER :MILKFAT : PRICE PER MILKFAT
: CWT 1/ : TEST CWT/ : TEST CWT / : TEST
1976 : DOLLARS PERCENT DOLLARS PERCENT DOLLARS PERCENT

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 : 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 : 8.7883 3.6808 8.8142 3.6750 +.0258 -.0058

1978
JAN : 9.20 3.74 9.22 3.73 +.02 -.01
FEB 9.24 3.70 9.28 3.71 +.04 +.01
MAR 9.32 3.69 9.38 3.70 +.06 +.01
APR 9.47 3.68 9.43 3.67 -.04 -.01
MAY 9.42 3.63 9.40 3.64 -.02 +.01
JUN 9.40 3.61 9.40 3.60 0 -.01
JUL 9.43 3.58 9.44 3.59 +.01 +.01
AUG 9.83 3.61 9.84 3.58 +.01 -.03
SEP : 10.09 3.64 10.;9 3.67 +.10 +.03
OCT : 10.60 3.80 10.75 3.80 +.15 0
NOV : 10.86 3.79 10.99 3.83 +.13 +.04
DEC : 11.06 3.82 11.07 3.84 +.01 +.02

SIMPLE AVERAGE : 9.8267 3.6908 9.8658 3.6967 +.0392 +.0058

36-MONTH
SIMPLE AVERAGE : 9.0917 3.6800 9.1139 3.6781 +.0222 -.0019

I/ AVERAGE PRICE FOR MILK OF AVERAGE MILKFAT TEST.


MFG. GRADE MILK PRICES, JUNE 1979


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, 1976-78 1/

YEAR MINNESOTA- FINAL
AND WISCONSIN TWO-STATE DIFFERENCE
MONTH SERIES : ESTIMATE
DOLLARS
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 :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 :8.576 8.609 +.033


1978

JAN 8.91 8.94 +.03
FEB 9.00 9.03 +.03
MAR 9.09 9.14 +.05
APR 9.24 9.22 -.02
MAY 9.25 9.22 -.03
JUN 9.26 9.27 +.01
JUL 9.33 9.32 -.01
AUG 9.68 9.72 +.04
SEP 9.90 9.95 +.05
OCT 1 0.18 10.33 +.15
NOV 1 0.44 10.51 +.07
DEC 1 0.60 10.58 -.02

SIMPLE AVERAGE :9.5733 9.6025 +.029


36-MONTH
SIMPLE AVERAGE :8.8758 8.8992 +.023

1/ PRICES HAVE BEEN CONVERTED FROM THE AVERAGE MILKFAT TEST TO 3.5 PERCENT USING THE MILKFAT DIFFERENTIAL
SPECIFIED IN FEDERAL ORDERS (CHICAGO GRADE A BUTTER X 0.120).


MFG. GRADE MILK PRICES, JUNE 1979


CROP REPORTING BOARD, ESCS, USDA




MANUFACTURING GRADE MILK: WEIGHTS USED TO CALCULATE
THE MINNESOTA-WISCONSIN MILK PRICE SERIES, BY MONTHS, 1978-80 1/


1978 1979 .1980
MONTH .
MINN WIS MINN WIS MINN WIS
: MILLION POUNDS

JAN : 426 530 405 532 385 514
FEB 416 517 410 560 375 504
MAR 464 571 453 595 420 602
APR 467 608 466 621 429 615
MAY : 482 689 438 650
JUN : 447 667 423 636
JUL 400 639 370 602
AUG 354 603 317 557
SEP 314 537 285 510
OCT : 320 514 298 494
NOV : 317 479 298 469
DEC 360 512 335 485

1/ 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 PUR-
CHASES FROM A YEAR EARLIER.


MFG. GRADE MILK PRICES, JUNE 1979


CROP REPORTING BOARD, ESCS, USDA


































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