In the news this week:

Lee karen
Karen Lee
Managing Editor / Progressive Dairy

August fluid milk sales 1.6% higher than last year

Fluid milk sales for August 2024 are higher than the same month a year earlier, keeping up the trend of slightly higher year-to-date sales. According to data from the USDA Agricultural Marketing Service:

  • Total sales: August sales of packaged fluid milk products were estimated at 3.6 billion pounds, up 1.6% from the same month a year earlier. At 28.3 billion pounds, year-to-date sales of all fluid products are up 1.2%.
  • Conventional products: Monthly sales totaled 3.36 billion pounds, up 1.3% from the same month a year earlier. Flavored fat-reduced milk sales were up by 8.6%. Whole milk sales were also higher by 1.5% from August 2023. Year-to-date 2024 sales were estimated at 26.3 billion pounds, up 0.8% from this time last year.
  • Organic products: August sales totaled 261 million pounds, up 5.5% from a year earlier. Whole milk and reduced fat milk (2%) were up by 11.1% and 7.3%, respectively, compared to the same month last year. Year-to-date organic fluid milk sales were estimated at 2.01 billion pounds, up 6.6% from this time last year. Organic represented about 7.2% total fluid product sales in August and 7.1% in total sales year to date.

The U.S. figures are based on consumption of fluid milk products in Federal Milk Marketing Order (FMMO) areas, which account for approximately 92% of total U.S. fluid milk sales, and adding the other 8% from outside FMMO-regulated areas. Sales outlets include food stores, convenience stores, warehouse stores/wholesale clubs, nonfood stores, schools, the food service industry and home delivery.

Added sugar in school milk plummets 10%

The International Dairy Foods Association (IDFA) reported that its Healthy School Milk Commitment is responsible for reducing added sugar levels by 10% in flavored school milk between the 2023 and 2024 school years.

Since the commitment was launched in April 2023, added sugar in flavored school milk, such as chocolate milk, has declined from 8.2 grams per serving to 7.4 grams per serving. In the past year alone, school milk processors have removed 2.7 billion grams of added sugar, equal to 5.9 million pounds.

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The commitment is a pledge by 37 school milk processors, representing approximately 95% of the school milk volume in the U.S., to provide healthy, nutritious school milk options with no more than 10 grams of added sugar per 8 fluid ounce serving, consistent with school meal nutrition guidelines established by the USDA.

In fact, the IDFA commitment was launched 13 months before USDA finalized its updated school nutrition standards. USDA’s school meal programs including lunch and breakfast serve 30 million children every day. The commitment was expanded in late 2023 to include USDA’s Summer Food Service Program, a program that provides healthy meals and snacks to up to 3.2 million low-income children and teens during the summer months when schools are out of session.

According to surveys among school milk processors conducted by IDFA and Prime Consulting, the level of added sugars in flavored milk products has declined by 55% between 2006 and 2024, from 16.7 grams per 8-ounce serving in 2006 to 7.4 grams of added sugar per serving in 2024. Calories associated with flavored milk have also declined during that same period, from 166 to less than 125 calories per 8-ounce serving.

GDT index down slightly

After two positive events, the price index of dairy product prices sold on the Global Dairy Trade (GDT) platform fell 0.3% in an auction held Oct. 15.

Compared to the previous auction, prices for individual product categories were mixed. Cheddar cheese was up 4.2% and anhydrous milkfat posted a small increase at 0.3%. Mozzarella and lactose were down quite a bit by 8.2% and 5.8%, respectively. Skim milk powder and butter were down slightly. Whole milk powder was unchanged and buttermilk powder was not traded.

The GDT platform offers dairy products from several global companies: Fonterra (New Zealand), Darigold, Valley Milk and Dairy America (U.S.), Arla (Denmark), Arla Foods Ingredients (Denmark), BMI (Germany), Kerry Dairy (Ireland) and Solarec (Belgium).

The next GDT auction is Nov. 5.

AgriSafe Network steps up to support ag communities affected by hurricanes

Hurricane Helene and Hurricane Milton have leveled devastating impacts on the southeastern U.S. Communities across North Carolina, South Carolina, Florida, Tennessee, Georgia and Virginia are facing unprecedented challenges. Many areas have been left in ruins, with communication lines severed and local support systems struggling to respond.

In recognition of the critical need for mental health support, AgriSafe is offering FarmResponse training seats at no cost to those providing counseling services to ag communities affected by the hurricane. FarmResponse is listed in the Suicide Prevention Resource Best Practice registry.

AgriSafe believes this training will assist in providing the best possible care to the state’s agricultural communities impacted by disasters. During times of crisis, it is essential to prioritize mental well-being alongside physical recovery. AgriSafe’s FarmResponse program equips health professionals to foster resilience and instill hope in agricultural communities that are in desperate need of both.

Dairy Council of California welcomes three new board members

The Dairy Council of California announced three new board members: John Vanderpoel Jr., owner, VP Legacy Farms; Preston Fernandes, owner/partner, Fernridge Farms; and Rene Reynoso, president and CEO, Peluso Cheese.

“We are pleased to welcome John, Preston and Rene to Dairy Council of California’s board of directors,” says Amy DeLisio, CEO of Dairy Council of California. “Their diverse backgrounds bring invaluable expertise to our organization’s ability to continue to promote healthy eating patterns and sustainable food systems that include dairy foods.”

In addition to the three new board members, four board members were reappointed: Arlene VanderEyk, co-owner, Robert VanderEyk Dairy; Michael Oosten, owner, Marvo Holsteins; John Dolan, vice president of sales, Driftwood Dairy; and Hem Shah, general manager, Alta Dena Dairy.

Board members are elected for three-year terms, represent both dairy producers and processors, and are appointed by the California Department of Food and Agriculture.

The Milk Cup crowns first champions, awarding $250,000 to bolster women’s esports across series

Gonna Need Milk made history with the inaugural The Milk Cup Finals at Los Angeles Comic-Con on Saturday, Oct. 5. The event featured 99 of the top women’s Fortnite players who traveled to Los Angeles in an all-expenses-paid trip to compete in the first-ever all-women’s Fortnite LAN (local area network) event.

The Milk Cup Finals garnered over 2.7 million stream viewers across livestreams, making it one of North American esports’ most-viewed women’s tournaments.

The Fortnite community rallied around The Milk Cup, with top personalities like ThePeachCobbler, Bugha and others in attendance to celebrate the competitors and present the inaugural The Milk Cup Trophy to Team Moxie, which includes Moxie, Dieyuhs and Regsita; The Milk Cup MVP award to Dieyuhs; and The Milk Cup Sportsmanship award to Kitzi. Epic Games, the creators of Fortnite, leveled up The Milk Cup Gala, a celebratory night following the competition, further endorsing the event.

Gamers often turn to energy drinks for a quick boost, but too much of these can lead to jitters and the inevitable caffeine crash, affecting both focus and performance. Gonna Need Milk was proud to fuel competitors with milk, including lactose-free options for those with lactose sensitivities.

Prairie Farms Dairy acquires SmithFoods

Prairie Farms Dairy announced the acquisition of the SmithFoods manufacturing facilities in Orrville, Ohio. Prairie Farms Dairy is an Illinois-based dairy cooperative founded in 1938, and SmithFoods is an Ohio-based family-owned company founded in 1909. Both companies have a history of manufacturing a full line of high-quality dairy products, and the collaboration strengthens the farm-to-table values embraced by Prairie Farms and SmithFoods.

“The SmithFoods acquisition was an easy decision because the Orrville facilities complement our network of dairy plants and expand our Ohio footprint,” said Matt McClelland, CEO/executive vice president of Prairie Farms Dairy.

The change is effective immediately, and both companies are committed to a seamless integration with no disruption in manufacturing and delivery services or other day-to-day operations.

Hilmar’s David Ahlem to retire

Hilmar Cheese Company Inc. announced that early next year, CEO David Ahlem will step down from his role after almost 10 years at the helm and a total of 21 years with the company.

Hilmar is well positioned for the future, said Chairman of the Board Jim Ahlem. “We are grateful for David’s leadership, under which Hilmar has grown to become a leading producer of natural American cheese and whey ingredients worldwide.

“We are delighted we will continue to benefit from David’s experience as he steps into a board adviser role next year.”

The board began a search process two months ago and will consider internal and external candidates. “We intend to have a successor in place in early next year to ensure a smooth transition,” Jim Ahlem said.