NJ-based Cream-O-Land to acquire Clover Farms, Reading, Pa.

Companies say: ‘Transaction will secure operations into future’

By Sherry Bunting, previously published in Farmshine, February 3, 2023

READING, Pa. — For over a year, the dairy industry has been aware that the iconic Clover Farms Dairy in Reading, Berks County, Pennsylvania was up for sale, and something was in the works, as its owners and officers near retirement.

On January 23, a joint statement by Clover Farms Dairy and Florence, New Jersey-based Cream-O-Land Dairy confirmed what had been rumored, that the two companies are working together to close a deal that will keep the Berks County plant operational. The recent official statement announces that a subsidiary of Cream-O-Land will purchase Clover Farms, but no details are being revealed.

Clover’s milk shippers received letters dated Jan. 18, stating “Clover Farms Management is pleased to announce that an asset purchase agreement has been executed between Clover Farms Dairy and Cream-O-Land Dairy” and that “both parties are working diligently to close the transaction, likely to occur within two months.”

“I hope this is a seamless transition,” observed Pennsylvania Senator Judy Schwank in a public statement the next day, January 24. Schwank represents Pennsylvania’s 11th district in which the Clover Farms plant and a large number of its patron dairy farms reside.

“I understand independent dairy farmers who have been shipping their milk to Clover Farms have a commitment from Cream-O-Land Dairy to continue that arrangement, and the plant in Berks County will remain operational,” she said. “Milk processors are a key component of the dairy industry infrastructure in Pennsylvania; so it’s important that we maintain existing processing plants. Clover Farms is an iconic brand, and is known as a premium local product, my hope is it will continue to be while under new ownership.”

Specifically, the Clover Farms letter states that, “This transaction will secure operations into the future as a strong regional dairy processor, which provides hundreds of jobs in eastern Pennsylvania and a stable market for the independent producer network.”

According to its website, Clover Farms employs 300 people, and is supplied by 170 independent dairy farms. These farms are located in Berks, Lancaster, Lebanon and Lehigh counties. According to additional sources close to the situation, milk supplies are often balanced via cooperatives.

Clover Farms milk and dairy products are sold throughout eastern Pennsylvania as well as in New Jersey, New York, Delaware and Maryland. Clover Farms also bottles private label store brands, including the Redner’s Warehouse Markets whole milk. The two companies have had a longstanding business relationship.

With the tagline “fresh taste, local farms,” Clover Farms Dairy has focused on connecting consumers to farmers, being among the first to put a simple QR code on packaging that can be scanned with a cell phone to go to links on the internet with stories and videos about some of the farms supplying the milk, and to understand how milk goes “from cow to carton.”

Sources close to the situation indicate Clover Farms and Cream-O-Land have had an existing co-packing and distribution business relationship for a number of years.

Clover Farms Dairy was established in 1937 by the Rothenberger family, with John B. Rothenberger still listed as treasurer at Dun and Bradstreet; however, digital entries at OpenCorporates indicate he and president Rick Hartman were removed as officers in April 2022 in anticipation of a transition in ownership.

Cream-O-Land Dairy was established in 1943 by Samuel Schneier. According to its website, the company is run today by grandsons Jay and Robert.

Cream-O-Land’s logistical footprint, according to its website, includes a network of warehouses and truck fleets that service grocery stores, supermarkets, schools and colleges throughout New Jersey, New York, Pennsylvania, Delaware, Connecticut, Florida, and The Bahamas.

In addition to its Cream-O-Land brand of milk, cream and cultured dairy products, the company distributes specialty milks such as lactose-free, fortified, organic, flavored and seasonal; as well as New York brands Five Acre Farms and Ronny Brook; several brands of teas, waters and juices; eggs, salad and bakery items; and non-dairy alternative almond, soy and pea beverages under brands like Ardmore Farms, Pacific and Ripple, as well as the Elmhurst ‘Milked’ brand of plant-based alternative beverages bottled in Steuben, New York.

Calls to Clover Farms and Cream-O-Land were not immediately returned.

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DFA antitrust lawsuit in Vermont ends before jury trial began

Potential settlement details undisclosed; Case had revealing ‘wins’ over four years, but FMMO 1 map limitations posed problems 

By Sherry Bunting, Farmshine, October 2, 2020

BURLINGTON, Vt. – In an unexpected twist this week, the civil antitrust case Sitts et. al. vs. Dairy Farmers of America / Dairy Marketing Services was dismissed on the eve of the jury trial that had been set to begin Sept. 30 in the U.S. District Court of Vermont with Judge Christina Reiss presiding.

A Stipulation of Dismissal with Prejudice was accepted by attorneys for defendant DFA / DMS and the 116 dairy farmer plaintiffs that had opted out of the previously settled Northeast Class Action Antitrust lawsuit to file the civil suit.

The Stipulation of Dismissal with Prejudice docket simply states: “The parties hereby stipulate to the dismissal of the above-captioned action with prejudice,with all rights of appeal waived, and each party to bear their own costs and attorney’s fees.”

A ‘stipulation of dismissal with prejudice’ is a legal term meaning that the case is over and done with and can’t be brought back.

We have learned that the stipulation requires parties to not discuss the terms of the “dismissal”, which means that settlement details will not be disclosed as public information.

Over the four years since the civil antitrust case was filed in October of 2016, some of the 116 plaintiff dairy farmers have since exited dairy farming.

Dairy farmers who looked forward to “a day in court” with a jury hearing evidence about the increasingly concentrated and anti-competitive milk marketing environment they live every day are likely disappointed by this outcome.

But even though this case is over, some ‘wins’ happened over the four years that could accomplish transparency in smaller case filings in the future. 

Throughout the four years, information about the alleged antitrust monopsony actions of defendant DFA, and the position of the plaintiffs as dairy farmers, was revealed at intervals during the proceedings.

Judge Reiss’s Opinion and Order exactly a year ago on Sept. 27, 2019 is one example.

Her Opinion and Order on this case in denying in part DFA’s request for summary judgment stated that, “Plaintiffs’ identify evidence that several of Defendants’ agreements violate a 1977 Consent Decree and Defendants’ own Antitrust Policy and Guidelines. A rational jury could find this evidence demonstrates that Defendants’ ‘acquisition of [ monopsony] power’ was through ‘predatory means.’”

In fact, this 58-page Opinion and Order, along with the amicus brief filed by the U.S. Department of Justice as a Statement of Interest in July, have provided support for others to move forward in smaller cases seeking vital financial information about the workings of DFA, the cooperative of which they are members. (More on that in the future.)

The DOJ statement filed in the Vermont antitrust case in July stated that the alleged activities fall outside of Capper-Volstead protections and that the allegations in the case “do not appear to have involved efforts to increase farmers’ bargaining power but rather efforts at monopsonization.”

The DOJ’s 15-page statement filed in July 2020 represents the first time the DOJ has really weighed-in on the monopsonization of milk markets to basically say the “heartland protections” of the Capper-Volstead Act do not apply to the activities alleged.

In fact, DOJ stated in the brief that the claims at issue fell outside the Capper-Volstead protection because “they do not involve claims that farmer cooperatives acted anticompetitively against processors and other middlemen, but rather that these were claims that farmer cooperatives through agreements with processors, middlemen and other cooperatives, acted anticompetitively against other farmers.”

Part of the issue for the plaintiffs in the Vermont antitrust case — throughout the procedural elements of four years — was that exhibits, testimony, depositions about activities just outside of the Northeast Milk Marketing Federal Order One lines on an arbitrary map were deemed outside the jurisdiction of the case.

It is interesting to note that even evidentiary exhibits at the case docket about activities in central Pennsylvania was scratched from use in the trial simply because central Pennsylvania is one of several geographies in the Northeast that are technically “unregulated” by FMMO 1 and thus not included in the FMMO 1 “map” — even though central Pennsylvania is surrounded on one side by FMMO 1’s map and on the other side by FMMO 33’s map, and the milk from these farms moves through these FMMO marketing channels, plants and cooperatives.

So many moving parts to assemble and so many challenges to use information subject to exclusion based on FMMO maps, it boggles the mind.

Similarly, ‘collaborations’ of one sort or another — revealed through exhibits, testimony, depositions and the like — that occurred in other FMMOs linked to how milk markets function in FMMO 1, or showing a pattern of behavior, were also deemed outside the jurisdiction of this case.

This, despite defendant DFA / DMS being a national footprint milk cooperative that interestingly draws its own area council maps in ways that blend geographies between FMMOs. This, despite defendant DFA / DMS in testimony before the Pa. Milk Marketing Board or in requests made to FMMO 1 market administrators often positions itself as the all-knowing one on milk flow from its birdseye view of the national, even global, dairy grid.

A basic tenet of the case was plaintiff’s claim that DFA is ’empire-building’ not bargaining on behalf of farmer members. During the four years of process on this case, information has been revealed, but DFA has continued to boldly forge its dairy dominance by aggressively bringing the Northeast regional cooperatives and independents that had been market-managed by DMS into the milk supply membership structure of DFA-proper 2017 through 2019, and then acquiring 44 of Dean Foods’ 57 fluid milk plants across the country in 2020.

DFA was listed by Rabobank last month as the largest dairy processor in the United States and third-largest dairy processor globally behind Nestle and Lactalis.

Through additional partnerships, joint ventures and marketing alliances, DFA has a hand in every pie, and no one, not even its members, really knows how the milk (and revenue) really flows.

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How do we unwind a trend that demonizes and suppresses a food group?

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A dairy panel with Mike Eby, Nina Teicholz (center), Lorraine Lewandrowski and John King (not pictured) was eye-opening to food-interested people at the 25th NESAWG conference in Philadelphia. Minds were opened as food policy influencers report weeks later some are reading Teicholz’s book The Big Fat Surprise, and it is changing their thinkingAllied Milk Producers helped sponsor this panel. Stay tuned. 

JUNK NUTRITION SCIENCE STILL RULES DIETARY GUIDELINES

25th NESAWG brings dairy to table in Philadelphia 

By Sherry Bunting, Farmshine, December 14, 2018

PHILADELPHIA, Pa. — Justice, power, influence… Balance. How do people unwind a trend that demonizes and suppresses a food group?

How do Americans have faith in an increasingly globalized food system that gives them choices, but behind the scenes, makes choices for them?

How do urban and rural people connect?

These questions and more were addressed as hundreds of food-interested people from all backgrounds and walks of life gathered for two days in center-city Philadelphia recently for the 25th Northeast Sustainable Agriculture Working Group (NESAWG) conference.

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Lorraine Lewandrowski (left), a central New York dairy farmer and attorney, talks with Niaz Dorry of NFFC. Dorry spoke on the opening panel about her 67,000-mile tour of rural America, urging others to “meet the farmers where they are.” Lewandrowski spoke about the ecology of rainfed grasslands in the Northeast and the struggle of family dairy farms throughout this landscape.

For Niaz Dorry of the National Family Farm Coalition (NFFC), the answer is simple: “Get out into the countryside and meet the farmers — where they are,” she said, during the opening panel of the conference as she talked of her recently completed America the Bountiful tour, driving over 67,000 miles of countryside — coast to coast.

Dorry also touched on the dairy crisis. “Go and experience their grief with them. Be with them at milking on Tuesday and see them sell a portion of their cows on Wednesday — just to make payroll.”

Pennsylvania Secretary of Agriculture, Russell Redding echoed this theme during the lunch address as he said agriculture is “zipcode-neutral,” that we need to forge “a more perfect union in our food system” but that the future lies in “differentiating” agriculture here.

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“We see our future — and our long-term investments in Pennsylvania — driven by differentiation…” said Pennsylvania Ag Secretary Russ Redding.

“It’s nice to be with folks who understand the power of food to change lives,” said Redding as he mentioned rooftop gardens, urban brownfields and Pennsylvania’s rank as number two in the nation for organic sales.

“We see our future — and our long-term investments in Pennsylvania — driven by differentiation, by being able to grow and produce and market organic agriculture,” said Sec. Redding.

With the NESAWG goal to “cultivate a transformative food system,” panels and breakouts covered topics from building networks and insuring equity among sectors to understanding urban food trends and ways to position Northeast agriculture within the power grid that ordains the direction of mainstream food production, processing and distribution today.

A breakout session on building “farm-to-school” hubs, for example, gave attendees insight for getting more fresh, local foods into school meals. Presenters talked about obstacles, and how they are navigated, about martialing available resources, identifying networks, working in collaboration with others, piloting ideas and growing them. Farm-to-School began in 2007, and it is growing.

Another breakout brought a panel of dairy producers to share with urban neighbors the crisis on Northeast dairy farms. The panel featured the work of dairy producers Jonathan and Claudia Haar of West Edmeston, New York, who spoke about consolidation that has been underway for decades in dairy.

But it was an afternoon panel — Milk Economies, Ecology and Diet — that put dairy and livestock producers squarely in the realm of hope for a re-wind.

Keynoting this panel was Nina Teicholz, author of The Big Fat Surprise and founder of The Nutrition Coalition. She covered the history of current government Dietary Guidelines and how rigorous studies have been ignored for decades because they don’t “fit” the narrative on saturated fats and cholesterol.

She was joined by dairy farmer and attorney Lorraine Lewandrowski of Herkimer County, New York, who spoke on dairy ecology and how the rainfed grasslands and croplands of Northeast dairy farms are a haven to wildlife, especially important species of birds and butterflies and pollinators.

They were joined by Mike Eby and John King of Lancaster County, Pennsylvania, representing National Dairy Producers Organization and Allied Milk Producers. The two men spoke on the dairy economy and what is happening on family dairy farms, struggling to remain viable.

“The land is most important to us,” said Lewandrowski about her deep love of Honey Hill, where her family has farmed for four generations. While, she is an attorney in town with farmers among her clients, she also helps her brother with the farm and her sister with her large animal veterinary practice.

Lewandrowski is known as @NYFarmer to her over 26,000 followers on Twitter — generating over 75,000 interactions from nearly a quarter-million tweets in the past 10 years!

She described a reverence for the land and its wildlife — cohabitating with a rich agricultural heritage and sense of rural community that exists within an afternoon’s drive of New York City.

“We have land that is rich in water,” she said with a nod to a dairy industry consolidating into regions that rely on irrigation.

“Our lands are rainfed: 21 million gallons of water run through our farm with an inch of rainfall,” she said. “Our farms are diverse across this landscape. But our farmers are going out of business in this economy. So many of these farms are then turned into urban sprawl. What will become of the people, the land and its wildlife?”

Lewandrowski talked about identifying bird species on their farm, of the crops and pasture in dairy operations, and the economic hardships she sees firsthand. She shared her vision of Northeast rural lands and what they bring to urban tables and communities.

Introducing Teicholz to an audience primarily of urban people, Lewandrowski shared how dairy farmers feel — working hard to produce healthy food, and then contending with poor prices driven by regulations that suppress its value.

“I didn’t know why our food is not considered good and healthy. Nina’s book gave me hope,” she said. “We are fighting for our land, and yet the vegans are so mean. When our farmers go out of business, they cheer on social media. They cheer when our families lose everything. But the land and wildlife lose also, and the vegans cheer.”

Teicholz traced the history of her 10-year investigation that led to The Big Fat Surprise: Why Butter, Meat, and Cheese Belong in a Healthy Diet. It started with a newspaper assignment on dietary fat.

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Nina Teicholz explains the revelations of a decade of investigation leading to The Big Fat Surprise. In the 5 years since publishing, farmers seek her out to thank her. She says she never realized how it must feel to be a dairy or meat producer — producing a healthy product while being told it is not healthy and seeing your livelihood pushed down by faulty dietary controls.

“Before I knew it, I had taken this huge deep-dive into fats and realized we have gotten it all completely wrong,” said Teicholz, a former vegetarian for 25 years before her research.

“I’m here to speak today because I found Lorraine’s twitter account and fell in love with her photos and stories from the dairy farm,” said Teicholz. In the nearly five years since her book was published, awareness of ignored science has been raised.

A California native, living in New York City, Teicholz described herself as an urban person and how surprised she was to hear the stories from farmers about how her book and her work gives them hope.

“It breaks my heart to now realize that — after all this time — the dairy farmers and meat producers have been led to feel that there is something wrong with the food they are producing, and to see how vegans go after these farmers, and now after me too,” Teicholz related.

“How did we come to believe these things that led to the decline in foods like whole milk, and have pushed down the producer?” Teicholz traced the history of dietary caps to the theory of one researcher — Ancel Keys from the University of Minnesota.

“Concern about heart disease in the 1960s led to many theories. The diet-heart hypothesis of Ancel Keys was just one theory, but he was unshakably confident in his own beliefs, and he was considered arrogant, even by his friends,” said Tiecholz.

“When the American Heart Association nutrition committee first supported Keys’ recommendations — even though the scientific evidence was very weak — that was the little acorn that grew into the giant oak, and it’s why we are where we are today,” she explained.

Methodically, Teicholz took her audience through the science that was used to support Keys’ theory, as well as the many more rigorous studies that were buried for decades.

In fact, some of the very research by the National Institute of Health (NIH) that had set out to prove causation for Keys’ theory was buried in the NIH basement because “the results were so disappointing to that theory.”

The studies that did not validate Keys’ theory — that fat in the diet is the cause of heart disease, obesity and other diseases — were suppressed, along with the studies that outright refuted his theory. A steady drumbeat of science — both new and exposed from those earlier times — shows a reverse association and causation.

48329399_2290819234570553_8398919649542012928_n.pngIn fact, since the Dietary Guidelines capped saturated fat in the 1980s — becoming progressively more restrictive in requiring lowfat / high carb diets — the data show the association, that Americans have become more obese, with higher rates of diabetes and heart disease.

“It feels like the battle is endless,” John King said as he spoke of the real struggle on dairy farms and of selling his dairy herd in 2015. “But it is rewarding and encouraging to see what people are doing to expose the truth now.”

King posed the question: “Do urban communities really care about rural communities? If not, then we are done. Our food will come from somewhere else and the system will be globalized.

“As farmers, we care about what we produce, and we care about our animals,” he said. “What happens to us on our farms trickles down to the urban areas. It’s an uphill battle to try to go against the status quo, and we need urban communities to care if we are going to be successful. It comes down to whether urban and rural care about each other. Do we care about our neighbors?”

Teicholz sees the U.S. being in the midst of a paradigm shift. However, it is taking time for the Dietary Guidelines Advisory Committee to change and open up to the science. She noted that in the 2015-2020 guidelines, the caps were removed for cholesterol, but they were kept in place for saturated fat.

“The cholesterol we consume has nothing to do with blood cholesterol,” said Teicholz. “The body produces cholesterol, and if we eat fat, our body makes less of it. It is the science that remains buried that needs to continue to surface. People need to know that the fat you eat is not the fat you get.”

She cited studies showing the healthfulness of full-fat dairy, that drinking whole milk and consuming the healthy fats in butter, beef, bacon and cheese are the fastest ways to increase the HDL ‘good’ cholesterol in the bloodstream.

It is the saturated fat caps in the current guidelines that are the reason whole milk, real butter, beef, and 100% real cheese are not served in schools today, said Teicholz. She showed attendees how these recommendations drive the food supply.

“The recommendations are allowing children to have whole milk only for the first two years of life, after that, at age one or two, children on skim milk,” she said. “The recommendations drive what we eat whether we realize it or not.”

She showed how the current flawed Dietary Guidelines drive the diets of the military, school children, daycare centers, WIC programs, hospitals, prisons, retirement villages. And these recommendations are downloaded by foodservice and healthcare: physicians, dieticians, nutrition services, foodservice menu guides. They are driving how dairy and meat products are presented in restaurants, fast food chains and other menus of choice. They are driving the current FDA nutrition innovation strategy that is working on a symbol for “healthy” and looking at modernizing standards of identity to accomplish these nutritional goals that focus on lowfat / high carb diets.

“Meanwhile, it is the unsaturated fats, the new products in the food supply, that are negatively affecting us and those are all there… in the USDA feeding programs,” Teicholz pointed out.

Others in the panel discussion pointed to an anti-animal view, that cattle are bad for the planet in terms of climate change. These views perpetuate the current dietary guidelines. In fact, in 2015, the Dietary Guidelines Advisory Committee attempted to introduce “sustainability” guidelines on what they deemed “healthy” for the planet into these guidelines, officially.

This is the ecology side that Lewandrowski addressed, showing urban food influencers how the concept of sustainability is being overtaken and systemized and how Northeast dairy farmers have a great story to tell that is being ignored, drowned-out.

“We have to think about how the shifts are occurring in the food system and manage those shifts. We can work together and make change happen,” said Mike Eby, articulating the message of National Dairy Producers Organization (NDPO), seeking to work with the system to manage farmers’ interests.

Allied Milk Producers helped sponsor this dairy panel, and Eby said that whether it is milk promotion through Allied, membership in NDPO, or supporting the buying and donating of dairy products through Dairy Pricing Association (DPA), it is important for people to participate.

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Mike Eby and John King brought Allied Milk Producers materials — and plenty of milk — to the NESAWG conference in Philadelphia. Amos Zimmerman also had a booth for Dairy Pricing Association.

He gave examples of how Allied and DPA — funded by farmers — are reaching out to consumers, schools, urban communities with donations of product and a positive message.

“We need more people to get involved to fix these issues, and to create a system that supports its producers and stabilizes prices,” said Eby.

“We need to reach out and work together as urban and rural communities,” added Lewandrowski.

 

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Hundreds of food-interested people from all backgrounds and walks of life attended the 25th Northeast Sustainable Agriculture Working Group conference in Philadelphia, where networking from urban to rural looked at regional solutions.

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Milk Map MATH…

map-1.jpgAuthor’s note: Since Milk Map Math was published April 6, I came across another interesting piece in April 11 Tank Transport Trader, where Dr. Mark Stephenson talks of the surpluses in the Midwest and West and states the 8 bil. lbs. Northeast milk deficit and 41 bil. lbs. Southeast deficit, and how the challenge is getting milk from the surplus areas to deficient areas. Read on, for Milk Map Math – 2017 data.

By Sherry Bunting, Farmshine, April 6, 2018

BROWNSTOWN, Pa. – Dairy consolidation away from the eastern U.S. continued in 2017, aided by further losses in basis revealed in the average net mailbox milk prices.

As the state and regional variations in mailbox milk prices move closer to a national price, the losers on the map are the states encompassed by the Federal Orders with highest Class I utilization: Northeast, Mideast, Appalachian, Southeast and Florida.

Not only is fluid milk the shrinking piece of the expanding pie, it is also the segment of the market with a legacy tied to local farms, family farms, farms that are getting dropped by bottlers as the milk bottling industry is also consolidating into wider spheres of milk sourcing.

The only way to slow this trend is to work directly with consumers and retailers because they have already told the dairy industry they want: local milk. Trouble is, the industry, and the checkoff dollars paid by these significant farms in the diminishing eastern region, are not listening to consumers. They’ve got eyes set across the seas on exports hitting 20% by 2025, while leaving the domestic market for nature’s most perfect food — milk — vulnerable and neglected.

Meanwhile, the milksheds on both the East and West Coasts had production levels in 2017 that were lower or unchanged, while big gains in production in the Western Plains milkshed overtook all milkshed production for the first time.

ChartWhile U.S. production was 215 bil. lbs., up 1.4% over 2016, the traditional Northeast milkshed, at 36.88 bil. lbs. added just 0.6%. Anchored by New York (up 0.9%), Pennsylvania (up 1.1%), Ohio (up 0.8%) and Vermont (unchanged), this milkshed includes other New England states that lost 3 to 5% and Maryland down 0.4%.
National-footprint cooperatives, like DFA and Land O’Lakes talk of the flood of milk in the Northeast.

Land O’Lakes is shrinking the Eastern base from 9 mil. lbs. per day to triggering penalties above 8.6 mil. lbs. per day, according to letters received by members. At the same time, different rules are applied in the Upper Midwest where demand will be affected by expansion of the Agropur plant driving expansion in the I-29 corridor.

DFA has placed a base program on members in parts of the Southeast, despite the Southeast deficit and virtually unchanged milk production in the milkshed, while different rules are applied elsewhere on the map, even in states that ship milk to the eastern states throughout the year and have a new powder facility in Kansas to balance that.

When the industry refers to the eastern markets being oversupplied, they are really talking about the ability of expansion areas of the U.S. to serve the markets and consumers of the East.

In particular, they are including in the description of a Northeast supply, the Mideast states of Michigan (up 3.3%) and Indiana (up 2.7%). Even when we figure in these states, the combined Northeast and Mideast milksheds produced 52.37 bil lbs in 2017, up 1.3%.

The Midwest milkshed — from Wisconsin and Illinois to the Dakotas, including the rapidly growing I-29 corridor of Iowa, Minn. and South Dakota — made 50.25 bil. lbs, up 1.3%.

The sea of green in milk production, however, can be found in the Western Plains milkshed from Texas, New Mexico, Arizona in the south to Nevada, Utah, Idaho to the north, including rapidly growing Colorado, Kansas, Nebraska and Oklahoma. This milkshed grew by 5% to 53.12 bil. lbs.

Texas, alone, produced over 12 bil. lbs., up virtually 12% on the strength of output per cow and 7% more cows — leapfrogging both Pennsylvania and Michigan for the No. 5 spot — pushing Pennsylvania to 7th.

New Mexico grew 6.5% to 8.21 bil. lbs. with 4.3% more cows. Every state in this milkshed grew by more than 5% except for Nevada’s growth of 3.6% and number 4 Idaho’s small loss of 0.3%. The West Coast made 48.85 bil lbs, down 1.7% in 2017 with No. 1 California off by 1.7% and Pacific Northwest off by more.

Shifts in state and regional Mailbox Milk Prices tell the story. Losing the most ground relative to the U.S. average were Pennsylvania and the Southeast states. Both were averaged by USDA at $17.55 for 2017. In fact, the eastern Pennsylvania portion of that price was even lower, at $17.39.

Interestingly, the West Coast gained the most ground on net mailbox prices with California’s mailbox at $16.19, up 9.3% over 2016 and the Northwest at $17.59 up 10.2%.

Florida regained the number one position with a mailbox price of $18.96, up 9%, while the Southeast milkshed was tie for 10th with Pennsylvania at $17.55. This value represented a 7.2% gain over 2016 for Pennsylvania but just a 5.8% gain over 2016 for the Southeast.

New England was second at $18.65 and the Appalachian region regained third with a 2017 mailbox price of $18.09, up 8% over year ago. New York was $17.46.

Wisconsin had the fourth highest mailbox price in the nation at $17.95, up 7.6% while Minnesota was 9th at $17.56, up 6.4%. Iowa and Illinois were up 8 and 9% with mailbox prices of $17.69 and $17.96, respectively.

Ohio was up 9% with a mailbox average of $17.61, while Indiana was up 7.4% at $17.02.

Michigan, up 8.3% at $15.59, and New Mexico, up 5.4% at $15.24, were the states with the lowest mailbox prices. West Texas garnered a mailbox average at $16.77, up 8.6%.

Wisconsin and Pennsylvania remained the top two for the number of licensed dairy farms. Pennsylvania lost 80, down 1.3% at 6570. Wisconsin lost 430 at 9090, down 4.6%.

Overall, the U.S. milk production increase of 1.4% came from 67,000 more cow on 1600 fewer licensed dairy farms. Across the 50 states, the number of licensed dairy farms fell 4% to 40,219 and the number of dairy cows grew 0.7% to 9.3 million head.

Keep in mind, USDA milk production statistics are compiled, in part, using Market Admin. pooling reports for marketings relative to cow numbers. With milk moving in ways it never has before, there could be some gray areas in some of these state and regional tallies.

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