With higher dairy product prices, the nation’s largest dairy cooperatives saw improved sales revenue and increased business assets in 2022, according to an annual summary from the National Cooperative Bank (NCB).
Highlighting October and National Co-op Month, the NCB updated 2022 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 2022 all-milk price averaged $25.34 per hundredweight (cwt), up from $18.53 per cwt in 2021. The USDA estimated total 2022 milk marketings at 225.5 billion pounds, only 200 million pounds more than the 225.3 billion pounds marketed in 2021.
Compared to a year earlier, annual average wholesale prices for major dairy products were substantially higher. The annual average wholesale price for cheese was up about 43.7 cents from 2021 to $2.11 per pound. Butter was up about $1.13 to about $2.87 per pound, nonfat dry milk was up almost 42 cents at $1.69 per pound, and dry whey was up about 3 cents to 61 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 2022 business volume (Table 1).
As Progressive Dairy notes every year, it should be emphasized that the report includes only those co-ops voluntarily providing revenue numbers to NCB. Based on milk volumes handled in 2022, several other dairy co-ops with processing facilities 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.
All 16 co-ops on the list reported increased revenue compared to a year earlier. Business volume includes sum of total sales, service receipts, patronage income and non-operating income.
Among all U.S. co-ops that supply data for the report, Dairy Farmers of America (DFA) remained second for business volume in 2022 at $24.5 billion, up $5.2 billion from 2021.
Land O’Lakes listed a total 2022 net sales volume of about $19 billion, which includes revenue from all divisions. Historically, about 30% of Land O’Lakes revenue is generated through its dairy food division.
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 $47.8 billion in total business volume in 2022.
NCB indicated 2022 total business volume was up 25% from the year before for the Top 100 cooperatives, up to $319 billion.
View the entire NCB Co-op 100 report.
