Monday, February 14, 2011
Cheese Prices for 2010
(click on image to enlarge)
There is all kinds of chatter about dairy exports in 2010. The real question is not whether or not exports rose but who really gained?
Obviously, looking at the graph above, the dairy farmers were not the winners. In the above graph, Class III milk price per hundredweight is divided by ten, which represent the normal cheese yield.
To make matters worse, the export prices from the U.S. were higher than world Cheddar prices. Since the Cooperatives Working Together (CWT) "export enhancement" began in March, 2010, and amounted to, according to CWT, 22 % of exports, one might think that the U.S. export price would be lower than world price. After all, why pay into the CWT program for no gain?