dry milk powder, mostly for export is enjoying high price
Kings County retains its ranking as the nation’s third most productive dairy county supplying 2.27% of federal order milk from California with 375 million pounds in the month of May 2021. Kings is behind Merced and number one Tulare, who pumped out 5.8% of the state’s milk at 973 million pounds.
Kings dairy operators are getting better prices for their product this holiday season, good news for the county’s number-one crop
Market reports say retail dairy sales are strong ahead of the holiday. During the week ending November 21, retail natural cheese sales rose roughly 15% versus the same period in 2019, while butter purchases increased 5% on a two-year basis.
Slow growth in U.S. milk production and strong demand have lifted the futures sharply higher in the past few weeks
Western United Dairymen says the Class III average for 2022 surged to $19.55 per hundredweight, while Class IV reached $20.20 per hundredweight. If prices remain at these levels, next year will be the second highest on record, behind 2014.
The bulk of our milk goes to Class IV. $20 milk compares to the 2020 average of 18.60 per cwt and $16.30 in 2019, according to the Kings crop report.
USDA says per capita dairy consumption has been up since 1975 when the average American consumed just 539 pounds of dairy foods per year. Last year, the average American consumed 655 pounds of dairy in milk, cheese, yogurt, ice cream, butter, and other dairy foods. The 2020 figure represents an increase of 3 pounds per person over the previous year.
As to the hot topic of inflation and its impact on consumers, the average price of a gallon of milk in California this year is around $3.79 per gallon says USDA .The average price in 2020 was $3.76.So milk is not the reason inflation is hurting. Look elsewhere like gasoline – up 50% in the past year. Instead dairies are selling more overseas trying to keep up with rising feed and labor costs here.
Caption: Nonfat dry milk, mostly exported,is selling for $1.65/lb compared to around $1 in recent years.(courtesy CME)
Caption California milk company reminds us – Santa likes milk and cookies (photo Clover Milk)
Storms bring hope to California cities and farms
This week’s “atmospheric river” storm brought heavy rain and snow to the Sierra offering hope those empty reservoirs would be filling up this water year. And there is more on the way as the NWS says the storm door is open through the end of the year.
Heavy snow is forecast through Christmas at Huntington Lake says a forecast report. Heavy snow is expected December 14,15,16,21,22,23,24,25 and December 26. That’s good news for both skiers and farmers who depend on the runoff from the San Joaquin River needed to fill the Friant Kern Canal this spring.The same goes for the upper Kings watershed that feeds Pine Flat Dam with similar, but more moderate precip expected over the same days.
What’s in the bucket already?
Berkeley Snow Lab at Donner Pass
On Wednesday the San Joaquin precip Index stands at 128% of average, tracking the second wettest year of 2016/17.Tulare Basin Index reads 75% of average, even though Giant Forest got 4 inches of precip with the Tuesday storm this week. Up north, things are better with the Northern California Index reading 165% of average for the date. Shasta Dam saw 4.25 inches of rain between Tuesday and Wednesday. The dam has recorded 20 inches so far this water year compared to just 25 inches all last year!
In the upper Kings watershed Big Meadow now has 36 inches of snow depth today compared to just 10 inches this time a year ago.
NWSHanford says “Current ensemble solution for the extended period shows another possible tap of atmospheric river moisture “is on its way.
Observers say this all amounts to a real comeback story after one of the driest Novembers on record, following one of the wettest Octobers and now a big December in the Sierra.
