Recovering from the pandemic’s impact on supply chain and business transactions, most of the nation’s largest dairy cooperatives saw improved sales revenue and increased business assets in 2021, according to an annual summary from the National Cooperative Bank (NCB).
Highlighting October and National Co-op Month, the NCB updated 2021 revenue and asset totals for the 100 largest cooperatives in the U.S. The annual report summarizes revenue and asset totals from cooperatives voluntarily submitting revenue and asset information to NCB, which has compiled the data for more than 30 years.
Looking back at factors impacting dairy cooperative revenues, the 2021 all-milk price averaged $18.53 per hundredweight (cwt), up from $18.13 per cwt in 2020. The USDA estimated total 2021 milk marketings at 225.2 billion pounds, up about 1.4% from the 222.2 billion pounds marketed in 2020.
Compared to a year earlier, annual average wholesale prices for major dairy products were mostly higher. The annual average wholesale price for cheese was down about 24.8 cents from 2020 to $1.68 per pound. However, butter was up about 15 cents to about $1.73 per pound, nonfat dry milk was up almost 23 cents at $1.27 per pound, and dry whey was up about 21 cents to 57 cents per pound.
Dairy in Top 100 rankings
The number of dairy cooperatives appearing on the list remained consistent with recent trends: Sixteen dairy cooperatives made the “Top 100” list for 2021 business volume (Table 1).
It should be emphasized that the report includes only those co-ops voluntarily providing revenue numbers to NCB. Based on milk volumes handled in 2021, several other dairy co-ops not participating in the NCB survey could have been on or near the Top 100 list, including United Dairymen of Arizona, Lone Star Milk Producers, Southeast Milk Inc., Tillamook and Cayuga Marketing LLC.
With 2020 business volume impacted by the COVID-19 pandemic, 2021 revenue was mostly higher, with 12 of the 16 co-ops on the list reporting increased revenue. Business volume includes sum of total sales, service receipts, patronage income and non-operating income.
Among all U.S. co-ops supplying data for the report, Dairy Farmers of America (DFA) remained second for business volume in 2021 at $19.3 billion, up $1.46 billion from 2020.
Land O’Lakes listed total 2021 net sales volume of about $15.9 billion, which includes revenue from all divisions. Historically, about 30% of Land O’Lakes revenue is generated through its dairy food division. The co-op said dairy foods retail volumes remained elevated from pre-pandemic levels and food service volumes saw a strong recovery as the economy reopened in 2021. Dairy earnings were below prior-year levels due to higher supply chain costs, partially offset by improved margins on both cheese and nonfat dry milk.
The Top 100 list includes co-ops involved in a wide range of businesses. CHS Inc., a fuel, grain and food cooperative based in Inver Grove Heights, Minnesota, remains the nation's largest U.S. cooperative, with $38.448 billion in total business volume in 2021.
NCB indicated 2021 total business volume was up 11% from the year before for the Top 100 cooperatives to $255 billion.
View the entire NCB Co-op 100 report here.
