Dairy Facts 2010

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Additional copies to members of the International Dairy Foods Association: 1-24 copies, $30 per copy; 25-99 copies, 20 percent discount; 100-499 copies, 30 percent discount; over 500 copies, 50 percent discount. All copies to non-members are $50 each.

Copyright 2010Reprinted in whole or in part by

written permission only.

PREFACE

The $110-billion U.S. dairy industry is increasingly complex, with dynamic trends in consumer preferences, farm production, product manufacturing and government regulations. If you want a better understanding of the dairy industry and available data, you'll want to read Dairy Facts 2010 Edition.

Produced by the International Dairy Foods Association, Dairy Facts 2010 Edition is a robust reference of information culled from government and private market research sources on the fl uid milk, cultured dairy, cheese, and ice cream and frozen desserts markets. The publication provides a comprehensive overview of 2009 sales, consumption and production data, and offers an excellent summary of the overall health of the U.S. dairy industry and dairy trends.

The data included in this issue was compiled and reviewed by IDFA's Economic Analysis division, led by Vice President Bob Yonkers, Ph.D., who is recognized as one of the industry's leading economic experts. Serving as IDFA's chief economist for the past decade, Dr. Yonkers is responsible for overseeing the research and analysis of the economic impact of market conditions, government regulations and alternative policies on the U.S. and international dairy industries. Economic Analyst Rob Blaufuss provides analysis of domestic sales and consumption trends for Dairy Facts.

With its rich data, executive summaries and easy-to-use format, this annual publication serves as a handy reference tool for IDFA members, researchers, educators, students, government offi cials and others interested in the dairy industry.

The International Dairy Foods Association (IDFA), Washington, D.C., represents the nation's dairy manufacturing and marketing industries and their suppliers, with a membership of 550 companies within a $110-billion a year industry. IDFA is composed of three constituent organizations: the Milk Industry Foundation (MIF), the National Cheese Institute (NCI), and the International Ice Cream Association (IICA). IDFA's 220 dairy processing members run more than 600 plant operations, and range from large multi-national organizations to single-plant companies. Together they represent more than 85 percent of the milk, cultured products, cheese and frozen desserts produced and marketed in the United States. IDFA can be found online at www.idfa.org.

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DAIRY FACTS

2010 Edition

INTERNATIONAL DAIRY FOODS ASSOCIATION1250 H Street, N.W., Suite 900, Washington, D.C. 20005

Phone: (202) 737-4332Fax: (202) 331-7820

www.idfa.org

Printed in U.S.A.November 2010


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T A B L E O F C O N T E N T SGENERAL INFORMATIONHistory of Dairy ..........................................................................................................................................................................9Nutrition Information .................................................................................................................................................................13Definitions of Fluid Milk and Milk Products .....................................................................................................................................14Conversion Factors ...................................................................................................................................................................16

PRODUCTION ................................................................................................................................................17Number of Milk Cows, Production Per Cow, and Milk Production ........................................................................................................18Total Milk Production; 1950-2009 (Chart) .....................................................................................................................................19Number of Milk Cows and Milk Production Per Cow; 1950-2009 (Chart) .............................................................................................19Total Milk Production in the Ten Largest Dairy States; 1950-2009 .....................................................................................................20Percentage of Total Ten Dairy States with State History ....................................................................................................................202009 U.S. Milk Supply Utilization, by Product Category ....................................................................................................................212009 Milk Component Supply Utilization, by Finished Product (Chart) .................................................................................................21Milk Cows, Milk Production and Milk Income by State; 2009 ........................................................................................................22-23Supply & Utilization, Milkfat ........................................................................................................................................................24Supply & Utilization, Skim Solids .................................................................................................................................................24Supply & Utilization, Total Dairy Solids ..........................................................................................................................................25Number Of U.S. Farm Operations with Milk Cows by Herd Size...........................................................................................................25Average Number of Dairy Cows Per Farm ......................................................................................................................................26Number of Producers, Total Receipts, and Average Daily Deliveries in FMMO by Year ..............................................................................27Fluid Milk Production ................................................................................................................................................................28Farm Milk Used in Packaged Fluid Milk Products ............................................................................................................................28Statistics for the Fluid Milk Industry ..............................................................................................................................................29Statistics for the Fluid Milk and Butter Industry Survey .....................................................................................................................29Fluid Milk Product Sales ............................................................................................................................................................30Fluid Milk Product Sales, by Product (Chart)...................................................................................................................................31Cream and Specialty Dairy Product Sales, 1980-2009 ....................................................................................................................32Percent of Fluid Milk Products Sold by Plants by Distribution Outlet, Container Type and Container Size .....................................................33Ice Cream & Frozen Dairy Product Production ................................................................................................................................342009 Production of Frozen Desserts (Chart) ..................................................................................................................................35Ten Leading States in 2009 Production of Ice Cream and Related Products (Hard & Soft) (Chart) .............................................................35Total U.S. Production of Frozen Desserts (Hard & Soft) 1920-2009....................................................................................................36Frozen Dessert Industry Statistics ................................................................................................................................................37Statistics for the Ice Cream and Frozen Dessert Industry Survey .........................................................................................................37Monthly Production of Ice Cream and Related Products (Hard & Soft) ............................................................................................38-39U.S. Hard Frozen Dairy Dessert Production 1990-2009 ...................................................................................................................40U.S. Soft Serve Ice Cream Production 1990-2009 .........................................................................................................................41Number of Plants Producing Ice Cream and Related Products ...........................................................................................................42Cheese Production ...................................................................................................................................................................43Total U.S. Production of Natural Cheese ........................................................................................................................................44U.S. Production of American Cheese ............................................................................................................................................45U.S. Production of Italian Cheese .................................................................................................................................................46U.S. Production of Selected Natural Cheeses .................................................................................................................................47Production of Processed Cheese Foods & Spreads and Cold Pack .....................................................................................................48Five Leading States in Natural Cheese Production; 2009 (Chart) ........................................................................................................48Supply and Utilization of American Cheese ....................................................................................................................................49Supply and Utilization of Other Natural Cheeses ..............................................................................................................................50Cheese Industry Statistics from The Bureau of the Census ................................................................................................................51Statistics for the Cheese Industry .................................................................................................................................................51Number of Plants Producing Natural and Processed Cheese; 1970-2009 ............................................................................................52Commercial and Total Stocks of Natural Cheeses ............................................................................................................................53Other Dairy Products .................................................................................................................................................................54U.S. Production of Other Selected Dairy Products ...........................................................................................................................54Whey and Modified Whey Production ...........................................................................................................................................55Statistics for the Creamery Butter Manufacturing Industry .................................................................................................................56Statistics for the Dry, Condensed, and Evaporated Dairy Product Manufacturing Industry, Census Years ......................................................57Statistics for the Dry, Condensed, and Evaporated Dairy Product Manufacturing Industry Survey ...............................................................57

SALES & CONSUMPTION ...............................................................................................................................58Demographics & Population .......................................................................................................................................................58Pounds per Capita and Percent Change of Selected Dairy Products, 2008-2009 ..................................................................................58Per Capita Sales of Selected Manufactured Dairy Products ...............................................................................................................59Private Label Share of U.S. Dairy Supermarket Sales; 2008-2009 .....................................................................................................60Average Annual Expenditures Per Household for Food, Dairy Products and Selected Other Items ..............................................................60Annual Expenditures Per Household on Food & Dairy Products by Demographic; 2008 ..........................................................................61Food Expenditures as a Share of Disposable Personal Income ...........................................................................................................62


T A B L E O F C O N T E N T S

Fluid Milk Sales & Consumption ..................................................................................................................................................63Per Capita U.S. Fluid Milk Product Sales 1975-2009 ......................................................................................................................63Total Fluid Milk Product Sales and Per Capita Sales of Fluid Milk Items; 1980-2009 (Chart) ....................................................................64Percent of Retail Milk Sales by Outlet (Chart) .................................................................................................................................64Per Capita Consumption of Fluid Milk Items ...................................................................................................................................65Per Capita Consumption of Cream and Specialty Dairy Products ........................................................................................................66Percent of Retail Milk Sales by Outlet ...........................................................................................................................................67Supermarket Sales of Fluid White Milk by Container Size (Chart) ........................................................................................................68Supermarket Sales of Fluid White Milk by Fat Level (Chart) ...............................................................................................................68Supermarket Sales of Fluid Flavored Milk by Container Size (Chart) ....................................................................................................69Supermarket Sales of Fluid Flavored Milk by Fat Level (Chart) ...........................................................................................................69Milk Consumed Through Federal School Programs; 1990-2009 ........................................................................................................70Vending Machine Sales of Milk ....................................................................................................................................................71Dairy Sales in Convenience Stores, 2009-2010 .............................................................................................................................71Fluid Milk Consumer Purchasing Trends, 2009-2010 Supermarkets Only .............................................................................................72Ice Cream & Frozen Dessert Sales & Consumption ..........................................................................................................................732009 Share of Frozen Dessert Market by Product Volume (Chart) ......................................................................................................74Total U.S. Supermarket Sales of Ice Cream, by Container Shape .......................................................................................................75Supermarket Sales of Frozen Dairy Products; 2008-2009 ................................................................................................................76Per Capita Production of Frozen Dairy Desserts ..............................................................................................................................77Vending Machine Sales of Frozen Novelties; 1992-2007 .................................................................................................................782009 Ice Cream Consumption by Flavors ......................................................................................................................................79Cheese Sales & Consumption .....................................................................................................................................................80U.S. Natural Cheese Per Capita Consumption, Selected Years (Chart) ..................................................................................................81U. S. Natural Cheese Per Capita Consumption vs. Total Production; 1980-2009 (Chart) ..........................................................................82U.S. Natural Cheese Per Capita Consumption .................................................................................................................................83U.S. American Cheese Per Capita Consumption ..............................................................................................................................83U.S. Italian Cheese Per Capita Consumption ...................................................................................................................................84Selected Natural Cheeses, U.S. Per Capita Consumption ...................................................................................................................85U.S. Processed Cheese Per Capita Consumption .............................................................................................................................86U.S. Processed Cheese Per Capita Consumption (Chart) ...................................................................................................................87Supermarket Sales of Cheese by Type; 2009.................................................................................................................................88Cheese Consumer Purchasing Trends, 2009-2010 .........................................................................................................................89Supermarket Sales of Cheese by Category; 2009 ......................................................................................................................90-91

PRICES .........................................................................................................................................................92Annual Average Federal Order Minimum Prices; 1990-2009 .............................................................................................................93All Market Annual Average (Chart) ................................................................................................................................................93Class I Differential and Annual Average Over Order Premium, Selected Cities ........................................................................................94Annual Average All Milk Price, Mailbox Price, and Milk Feed Price Ratio ...............................................................................................95USDA Announced Federal Order Minimum Prices by Month, ($/Cwt) ...................................................................................................96Grade AA Butter; 2000-YTD 2010 (Chart) .....................................................................................................................................97Block Cheddar Cheese & Barrel Cheddar Cheese; 2000-YTD 2010 (Chart) .........................................................................................97Nonfat Dry Milk; 2000-YTD 2010 (Chart) .....................................................................................................................................98Dry Whey; 2000-YTD 2010 (Chart) .............................................................................................................................................98Milk Price Support Program Statistics ...........................................................................................................................................99U.S. Dairy Product Price Support Program Purchase Prices, 1979-2010 ........................................................................................... 100

INTERNATIONAL ..........................................................................................................................................101International Dairy Product Prices 1994-YTD 2010 ....................................................................................................................... 102International Dairy Prices 2000-YTD 2010 (Chart) ........................................................................................................................ 102U.S. and World Raw Sugar Prices; 2000-2009 (Chart) ................................................................................................................... 103U.S. Imports and Exports of Selected Dairy Products as a Percent of U.S. Production, 2009 .................................................................. 103Selected World Dairy Ingredient Prices 2006-YTD 2010 ................................................................................................................ 104U.S. Exports Of Dairy Products; 2008-2009 ................................................................................................................................ 105U.S. Imports of Dairy Products, 2008-2009 ................................................................................................................................ 106U.S. DEIP (Dairy Export Incentive Program) Bid Acceptances ........................................................................................................... 107U.S. Exports of Cheese to 20 Largest Trading Partners; 2008-2009 ................................................................................................. 108U.S. Share of World Cheese Exports ........................................................................................................................................... 109U.S. Imports of Cheese, by Type; 2008-2009 .............................................................................................................................. 110U.S. Exports of Ice Cream and Related Products Top 20 Countries; 2008-2009 ................................................................................. 111World and Selected Countries Trade in Dairy Products (Exports); 2004-2008 .................................................................................... 112World and Selected Countries Trade in Dairy Products (Imports); 2004-2008 .................................................................................... 113Milk Cows and Production Per Cow by Selected Countries; 2009 ..................................................................................................... 114Per Capita Consumption of Dairy Products by Selected Countries; 2009 ........................................................................................... 114Canadian Production of Selected Dairy Products ........................................................................................................................... 115


9GENERAL INFORMATION

I. GENERAL INFORMATIONHistory of Dairy

The Dairy Industry in AmericaMilk and milk products have played an important role in Americas history since 1611, when the fi rst cows were brought to Jamestown, Virginia. Since those early days, the industry has successfully continued to serve the nutritional needs of a growing nation with a wide selection of products.

Todays dairy industry includes the farmers, who produce the milk; processors and manufacturers, who provide all the services needed to turn out a variety of wholesome, refreshing dairy foods; and the retailers and foodservice operators, who bring these products directly to consumers.

Because milk and milk products are now readily available and frequently consumed in the U.S., a steady supply of these foods is often taken for granted. However, until fairly recently, milk was not always so readily available. Thanks to the many advancements and improvements achieved by the entire industry in the areas of processing, packaging, refrigeration and distribution, a wide range of dairy products is now available to everyone.

Another development has been the important research and experimentation which has resulted in improved methods of selection, breeding and feeding of cows. One hundred years ago, milk production per cow was estimated at 1,700 quarts annually; today the average has grown to nearly 8,800 quarts per cow.

Highly nutritious, tasty and versatile, milk is often characterized as natures most nearly perfect food. When consuming milk as a delicious beverage or in a serving of ice cream, you are participating in a continuing and remarkable history of mankind.

Milestones of Milk History in the U.S.1611 Cows arrive for Jamestown Colony.1624 Cows reach Plymouth Colony.1841 First regular shipment of milk by rail--Orange County to New York City.1856 Pasteur experiments start.

Gail Borden received fi rst patent on condensed milk from both U.S. and England.1878 Continuous centrifugal cream separator invented by Dr. Gustav De Laval.1884 Milk bottle invented by Dr. Hervey D. Thatcher, Potsdam, New York.1886 Automatic bottle fi ller and capper patented.1890 Tuberculin testing of dairy herds introduced. Test for fat content of milk and cream

perfected by Dr. S.M. Babcock.Sherman Anti-Trust Act establishes federal anti-monopoly policy.

1892 Certifi ed milk originated by Dr. Henry L. Coit in Essex County, New Jersey.1895 Commercial pasteurizing machines introduced.

Thistle milking machine introduces intermittent pulsation.1908 First compulsory pasteurization law (Chicago) applying to all milk except that from tuberculin

tested cows.1911 Automatic rotary bottle fi ller and capper perfected.1914 Tank trucks fi rst used for transporting milk.1919 Homogenized milk sold successfully in Torrington, Connecticut.


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1922 Capper-Volsted Act codifi es agricultural cooperatives.1932 Ways of increasing Vitamin D in milk made practicable.

First plastic coated paper milk cartons introduced commercially.1937 Agricultural Marketing Agreement Act establishes federal milk marketing orders.1938 First farm bulk tanks for milk began to replace milk cans.1942 Every-other-day milk delivery started (initially as a war conservation measure).1946 National School Lunch Act signed by President Truman.

Vacuum pasteurization method perfected.1948 Ultra-high temperature pasteurization is introduced.1949 Agricultural Adjustment Act establishes dairy support price at $3.14/cwt.1950 Milk vending machines win place in distribution.1955 Flavor control equipment for milk is introduced commercially.1964 Plastic milk container introduced commercially.1968 Electronic testing for milk is introduced commercially marking the offi cial acceptance of process.1974 Nutrition labeling of fl uid milk products begins.1980 American Dairy Association launches the national introduction of the REAL Seal dairy symbol.1981 UHT (ultra high temperature) milks gain national recognition.1983 Creation of National Dairy Promotion and Research Board.1988 Lower fat dairy products gain widespread acceptance. Lowfat and skim milk sales combined

exceed whole milk sales for fi rst time.1993 Mandatory animal drug residue testing program established.1994 Recombinant bovine somatotropin (rBST) approved for commercial use in U.S.

Nutrition Labeling and Education Act requires mandatory nutrition labeling.1995 Launch of processor-funded milk mustache advertising campaign.2000 Federal milk marketing orders reformed; component pricing introduced.

The Evolution of Ice CreamIce creams origins are known to reach back as far as the second century B.C., although no specifi c date of origin nor inventor has been indisputably credited with its discovery. We know that Alexander the Great enjoyed snow and ice fl avored with honey and nectar. Biblical references also show that King Solomon was fond of iced drinks during harvesting. During the Roman Empire, Nero Claudius Caesar (A.D. 54-86) frequently sent runners into the mountains for snow, which was then fl avored with fruits and juices.

Over a thousand years later, Marco Polo returned to Italy from the Far East with a recipe that closely resembled what is now called sherbet. Historians estimate that this recipe evolved into ice cream sometime in the 16th century. England seems to have discovered ice cream at the same time, or perhaps even earlier than the Italians. Cream Ice, as it was called, appeared regularly at the table of Charles I during the 17th century. France was introduced to similar frozen desserts in 1553 by the Italian Catherine de Medici when she became the wife of Henry II of France. It wasnt until 1660 that ice cream was made available to the general public. The Sicilian Procopio introduced a recipe blending milk, cream, butter and eggs at Caf Procope, the fi rst caf in Paris.

Ice Cream for AmericaThe fi rst offi cial account of ice cream in the New World comes from a letter written in 1700 by a guest of Maryland Governor William Bladen. The fi rst advertisement for ice cream in this country appeared in the New York Gazette on May 12, 1777, when confectioner Philip Lenzi announced that ice cream was available almost every day. Records kept by a Chatham Street, New York, merchant show that President George Washington spent approximately $200 for ice cream during the summer of 1790. Inventory records of


11

GENERAL INFORMATION

Mount Vernon taken after Washingtons death revealed two pewter ice cream pots. President Thomas Jefferson was said to have a favorite 18-step recipe for an ice cream delicacy that resembled a modern-day Baked Alaska. In 1812, Dolley Madison served a magnifi cent strawberry ice cream creation at President Madisons second inaugural banquet at the White House.

Until 1800, ice cream remained a rare and exotic dessert enjoyed mostly by the elite. Around 1800, insulated ice houses were invented. Manufacturing ice cream soon became an industry in America, pioneered in 1851 by a Baltimore milk dealer named Jacob Fussell. Like other American industries, ice cream production increased because of technological innovations, including steam power, mechanical refrigeration, the homogenizer, electric power and motors, packing machines, and new freezing processes and equipment. In addition, motorized delivery vehicles dramatically changed the industry. Due to ongoing technological advances, todays total frozen dairy annual production in the United States is more than 1.6 billion gallons.

Wide availability of ice cream in the late 19th century led to new creations. In 1874, the American soda fountain shop and the profession of the soda jerk emerged with the invention of the ice cream soda. In response to religious criticism for eating sinfully rich ice cream sodas on Sundays, ice cream merchants left out the carbonated water and invented the ice cream Sunday in the late 1890s. The name was eventually changed to sundae to remove any connection with the Sabbath.

Ice cream became an edible morale symbol during World War II. Each branch of the military tried to outdo the others in serving ice cream to its troops. In 1945, the fi rst fl oating ice cream parlor was built for sailors in the western Pacifi c. When the war ended, and dairy product rationing was lifted, America celebrated its victory with ice cream. Americans consumed over 20 quarts of ice cream per person in 1946.

In the 1940s through the 70s, ice cream production was relatively constant in the United States. As more prepackaged ice cream was sold through supermarkets, traditional ice cream parlors and soda fountains started to disappear. Now, specialty ice cream stores and unique restaurants that feature ice cream dishes have surged in popularity. These stores and restaurants are popular with those who remember the ice cream shops and soda fountains of days past, as well as with new generations of ice cream fans.

How Ice Cream Is MadeEverybody has a favorite fl avor or brand of ice cream, and the debate over whose ice cream is the best rages on each year. While each manufacturer develops its own special recipes, ice cream production basics are basically the same everywhere.

The most important ice cream ingredients come from milk. The dairy ingredients are crucial in determining the characteristics of the fi nal frozen product. Federal regulations state that ice cream must have at least 10% milkfat, the single most critical ingredient. The use of varying percentages of milkfat affects the palatability, smoothness, color, texture and food value of the fi nished product. Gourmet or superpremium ice creams contain at least 12% milkfat, usually more.

Ice cream contains nonfat solids (the non-fat, protein part of the milk), which contribute nutritional value (protein, calcium, minerals and vitamins). Nonfat dry milk, skim milk and whole milk are the usual sources of nonfat solids.

The sweeteners used in ice cream vary from cane or beet sugar to corn sweeteners or honey. Stabilizers, such as plant derivatives, are commonly used in small amounts to prevent the formation of large ice crystals and to make a smoother ice cream. Emulsifi ers, such as lecithin and mono- and diglycerides, are


12

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also used in small amounts. They provide uniform whipping qualities to the ice cream during freezing, as well as a smoother and drier body and texture in the frozen form.

These basic ingredients are agitated and blended in a mixing tank. The mixture is then pumped into a pasteurizer, where it is heated and held at a predetermined temperature. The hot mixture is then shot through a homogenizer, where pressure of 2,000 to 2,500 pounds per square inch breaks the milkfat down into smaller particles, allowing the mixture to stay smooth and creamy. The mix is then quick-cooled to about 40F and frozen via the continuous freezer method (the batch freezer method) that uses a steady fl ow of mix that freezes a set quantity of ice cream one batch at a time.

During freezing, the mix is aerated by dashers, revolving blades in the freezer. The small air cells that are incorporated by this whipping action prevent ice cream from becoming a solid mass of frozen ingredients. The amount of aeration is called overrun, and is limited by the federal standard that requires the fi nished product must not weigh less than 4.5 pounds per gallon.

The next step is the addition of bulky fl avorings, such as fruits, nuts and chocolate chips. The ingredients are either dropped or shot into the semi-solid ice cream after it leaves the freezer.

After the fl avoring additions are completed, the ice cream can be packaged in a variety of containers, cups or molds. It is moved quickly to a hardening room, where sub-zero temperatures freeze the product to its fi nal state for storage and distribution.

History of CheeseCheese, a highly nutritious and palatable food, is of signifi cant value in the diet because it contains almost all of the protein and essential minerals, vitamins, and other nutrients of milk. According to ancient records passed down through the centuries, the making of cheese dates back more than 4,000 years.

No one really knows who made the fi rst cheese. According to an ancient legend, it was made accidentally by an Arabian merchant who put his supply of milk into a pouch made from a sheeps stomach, as he set out on a days journey across the desert. The rennet in the lining of the pouch, combined with the heat of the sun, caused the milk to separate into curd and whey. That night he found that the whey satisfi ed his thirst, and the cheese (curd) had a delightful fl avor which satisfi ed his hunger.

Travelers from Asia are believed to have brought the art of cheesemaking to Europe. In fact, cheese was made in many parts of the Roman Empire when it was at its height. The Romans, in turn, introduced cheesemaking to England. During the Middle Agesfrom the decline of the Roman Empire until the discovery of Americacheese was made and improved by the monks in the monasteries of Europe. For example, Gorgonzola was made in the Po Valley in Italy in 879 A.D., and Italy became the cheesemaking center of Europe during the 10th Century. Roquefort was also mentioned in the ancient records of the monastery at Conques, France as early as 1070.

Cheesemaking continued to fl ourish in Europe and became an established food. In fact, the Pilgrims included cheese in the Mayfl owers supplies when they made their voyage to America in 1620. The making of cheese quickly spread in the New World, but until the 19th century it remained a local farm industry. It wasnt until 1851 that the fi rst cheese factory in the United States was built by Jesse Williams in Oneida County, New York.


13

GENERAL INFORMATION

As population across the United States continued to grow dramatically, the demand for cheese increased and the industry gradually moved westward, centering on the rich farm lands of Wisconsin. In 1845, a band of Swiss immigrants settled in Green County, Wisconsin and started the manufacturing of foreign cheese in America. Most Wisconsin farmers began to believe that their future survival was tied to cheese and their fi rst factory was a Limburger plant which opened in 1868.

The wholesale cheese industry was thus born and showed phenomenal growth during the latter half of the 1800s. By 1880 there were 3,923 dairy factories nationwide which were reported to have made 216 million pounds of cheese that year valued at $17 million. This represented almost 90 percent of total cheese production that year. By the turn of the century, farm production of cheese had become insignifi cant. The 1904 census reported only factory output, which totaled over 317 million pounds.

As cheese demand continued to grow and spread rapidly, manufactured and processed cheese production increased dramatically. Total natural cheese production grew from 418 million pounds in 1920 to 2.2 billion pounds by 1970. Rising demand for cheese throughout the 1970s and 1980s brought total natural cheese production to more than 6 billion pounds by the beginning of the 1990s. Processed cheese also experienced a surge in consumer demand with annual production exceeding 2 billion pounds a year by the beginning of the 1990s.

Currently, more than one-third of all milk produced each year in the U.S. is used to manufacture cheese. Recent increases in the overall demand for farm milk have in large part been due to the continued growth of the cheese industry. As consumer appetites for all types of cheese continue to expand, so will the industry.

Nutrition Information

The Importance of Milk in the DietAlthough milk from the cow is processed, it is not an engineered or fabricated food. It is about 87 percent water and 13 percent solids. The fat portion of the milk contains fat soluble vitamins. The solids other than fat include proteins, carbohydrates, water soluble vitamins, and minerals. These nutrients in milk help make it natures most nearly perfect food.

Milk products contain high quality proteins. The whey proteins constitute about 18 percent of the protein content of milk. Casein, a protein found only in milk, contains all of the essential amino acids. It accounts for 82 percent of the total proteins in milk and is used as a standard for evaluating protein of other foods. Protein is needed to build and repair body tissues and to form antibodies which circulate in the blood and help fi ght infection.

Milk also contains the following nutrients: calcium, phosphorus, magnesium, and potassium. The calcium found in milk is readily absorbed by the body. Phosphorus plays a role in calcium absorption and utilization. Phosphorus is needed in the proper ratio to calcium to form bone. Milk provides these two minerals in approximately the same ratio as found in bone. Milk is also a signifi cant source of ribofl avin (vitamin B2) which helps promote healthy skin and eyes, as well as vitamins A and D.

In adults, a calcium defi ciency, along with other factors, may result in bone deterioration called osteoporosis. The recommendations for calcium are 1,000 milligrams for adults, 1,300 milligrams per day for adolescents, 500-800 milligrams per day for young children and 1,200 milligrams per day for adults over 51 years of age. One serving of milk has about 250 milligrams of calcium. It is diffi cult to obtain adequate calcium without milk and milk products in the diet. About 73 percent of the calcium available in the food supply is provided by milk and milk products.


14

GENE

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INFO

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ION

The following daily consumption of milk group foods is suggested by the government's U.S. Dietary Guidelines: Children 1-8 years old, 2 servings Children 9 years and older, 3 servings Adults, 3 servings

Defi nitions of Fluid Milk and Milk ProductsMilk is approximately 87 percent water and 13 percent solids. As it comes from the cow, the solids portion of milk contains approximately 3.7 percent fat and 9 percent solids-not-fat.

Milkfat carries the fat soluble vitamins A, D, E, and K. The solids-not-fat portion consists of protein (primarily casein and lactalbumin), carbohydrates (primarily lactose), and minerals (including calcium and phosphorus). Milk also contains signifi cant amounts of ribofl avin and other water soluble vitamins.

Federal defi nitions and standards of identity specify the minimum levels of milkfat and solids-not-fat for the various milks shipped in interstate commerce:

Milk Contains not less than 3.25 percent milkfat and 8.25 percent solids-not-fat. Addition of vitamins A and D is optional, but if added, vitamin A must be present at a level of not less than 2,000 International Units (I.U.) Per quart; vitamin D is optional, but must be present at a level of 400 I.U., if added. Characterizing fl avoring ingredients may also be added.

Cultured Milk Contains not less than 3.25 percent milkfat and not less than 8.25 percent milk solids-non-fat. It is produced by culturing any of the following milk products alone or in combination: cream, milk, partially skimmed milk or skim milk with appropriate characterizing bacteria. The addition of certain characterizing ingredients and lactic-acid producing bacteria may permit, for example, the product to be labeled kefi r cultured milk, acidophilus cultured milk, or cultured buttermilk.

Half-and-Half Consists of a mixture of milk and cream containing not less than 10.5 percent milkfat, but less than 18 percent milkfat.

Light Cream contains not less than 18 percent milkfat, but less than 30 percent. Light cream may also be called coffee cream or table cream.

Light Whipping Cream contains not less than 30 percent milkfat, but less than 36 percent milkfat. Light whipping cream may also be called whipping cream.

Heavy Cream contains not less than 36 percent milkfat. Heavy cream may also be called heavy whipping cream.

Sour Cream is the product resulting from the addition of lactic acid-producing bacteria to pasteurized cream containing not less than 18 percent milkfat. Sour cream may also be called cultured sour cream.

Dry Curd Cottage Cheese is a soft, unripened cheese made from skim milk and/or reconstituted nonfat dry milk. The cheese curd is formed by the addition of either lactic acid producing bacteria or acidifi ers. The latter process is called direct acidifi cation. Rennet and/or other suitable enzymes may be used to assist curd formation. Dry curd cottage cheese contains less than 0.5 percent milkfat and not more than 80 percent moisture. The product may also be called cottage cheese dry curd.


15

GENERAL INFORMATION

Cottage Cheese is the product resulting from the addition of a creaming mixture (dressing) to dry curd cottage cheese. Cottage cheese contains not less than 4 percent milkfat and not more than 80 percent moisture.

Yogurt is the product resulting from the culturing of a mixture of milk and cream products with the lactic acid-producing bacteria, Lactobacillus bulgaricus and Streptococcus thermophilus. Yogurt contains not less than 3.25 percent milkfat and 8.25 percent solids-not-fat.

Evaporated Milk is made by removing about 60 percent of milks water. It contains not less than 6.5 percent milkfat, not less than 16.5 percent milk solids-not-fat, and not less than 23 percent by weight of total milk solids. Evaporated milk is a heat-sterilized product with an extended shelf life.

Sweetened Condensed Milk results from the removal of about 60 percent of the water from a mixture of milk (whole and nonfat pasteurized, homogenized milks) and safe and suitable nutritive carbohydrate sweeteners such as sucrose. This product contains not less than 8 percent milk fat and not less than 28 percent total milk solids.

Nonfat Dry Milk is made by removing water from pasteurized skim (nonfat or fat free) milk. The product contains not more than 5 percent by weight of moisture, and not more than 1.5 percent by weight of milkfat unless otherwise indicated.

Ice Cream consists of a mixture of dairy ingredients such as milk and nonfat milk, and ingredients for sweetening and fl avoring, such as fruits, nuts and chocolate chips. Functional ingredients, such as stabilizers and emulsifi ers, are often included in the product to promote proper texture and enhance the eating experience. By federal law, ice cream must contain at least 10 percent milkfat, before the addition of bulky ingredients, and must weigh a minimum of 4.5 pounds to the gallon.

Frozen Custard or French Ice Cream must also contain a minimum of 10 percent milkfat, as well as at least 1.4 percent egg yolk solids.

Sherbets have a milkfat content of between 1 percent and 2 percent, and a slightly higher sweetener content than ice cream. Sherbet weighs a minimum of 6 pounds to the gallon and is fl avored either with fruit or other characterizing ingredients.

Gelato is characterized by an intense fl avor and is served in a semi-frozen state. Gelato contains sweeteners, milk, cream, egg yolks and fl avoring.

Sorbet and Water Ices are similar to sherbets, but contain no dairy ingredients.

Frozen Yogurt consists of a mixture of dairy ingredients such as milk and nonfat milk which have been cultured, as well as ingredients for sweetening and fl avoring.

For more information on dairy product defi nitions, please contact IDFA directly at (202) 737-4332.


16

GENE

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Conversion Factors

Dairy Products Related Conversions:The quantity of milk actually used to produce one pound of each product depends chiefl y upon the milkfat and nonfat solids content of the milk, which varies both geographically and seasonally. The following table is, therefore, only an approximation.

To make one pound of: Requires approximately:

Butter 21.8 lbs. whole milk

Whole Milk Cheese 9.8 lbs. whole milk

Whole Milk Powder 7.4 lbs. whole milk

Cottage Cheese (dry curd basis) 7.3 lbs. skim milk

Nonfat Dry Milk 11.0 lbs. skim milk

The amount of milk required to make ice cream varies considerably, not only due to the component content of the milk, but also due to the wide variety in the milkfat and nonfat solids content of the fi nal product as well as the type and quantity of the fl avoring used. In general, one gallon of ice cream requires approximately 6 pounds of whole milk and one pound of cream.

The actual weight of fl uid milk and cream varies based on milkfat content:

Milkfat % Quart (Lbs.) Gallon (Lbs.) Product

< 1 2.1575 8.63 Nonfat Milk

1 - 2.99 2.1550 8.62 Lowfat & Reduced Fat Milk

3 - 4.99 2.1500 8.60 Whole Milk

9 - 13.99 2.1375 8.55 Half & Half

14 - 18.99 2.1275 8.51 Light Whipping Cream

35 - 36.99 2.0925 8.37 Heavy Whipping Cream

The weight of fl avored milk varies, based on milkfat content and the quantity and type of fl avorings used in the formulations.

Weight: 16 ounces .................................................1 pound 100 pounds .......................1 hundredweight (cwt) 20 cwt ...................................1 ton (2000 pounds) 1 pound .......................................0.4536 kilogram 2.2046 pounds .....................................1 kilogram 2204.6 pounds ..... 1 metric ton (1,000 kilograms) 1 ton ........................................... 0.907 metric ton

Liquid Measure: 2 cups ..........................................................1 pint 2 pints ....................................................... 1 quart 4 quarts .................................................... 1 gallon 1 quart .................................................0.946 liters 1.0571 quarts ...............................................1 liter 1 gallon ...............................................3.785 liters 0.264 gallons ................................................1 liter

General Conversion Factors:


17

PRODUCTION

II. PRODUCTION

A. FARM LEVEL PRODUCTION INFORMATION

Farm Level Production OverviewFor the fi rst time since 2001, U.S. farm milk production volume decreased 0.3 percent in 2009, with production of 189.3 billion pounds. That compares with the record production of 189.9 billion pounds in 2008.

The number of U.S. milk cows also declined in 2009, with a decrease of 114,000 cows over 2008. At the same time, the national average milk production per cow rose 0.9 percent to 20,576 pounds, setting a record for the eighth year straight. Two western states lead the nation in per-cow production effi ciency; New Mexico surpassed Arizona for the lead, producing 24,320 pounds of milk per cow in 2009, an increase of 4.5 percent over 2008 per-cow production. The State of Washington was second, producing at 23,171 pounds, a slight decrease of 0.7 percent over 2008.

In general, the total number of farms continued a decades-long downward trend, declining from 3.682 million in 1950 to 65,000 in 2009. The average herd size of U.S. farm operations with milk cows rose 1 percent in 2009, from 139 to 142 dairy cows per farm. However, the number of farms with less than 1,000 dairy cows continued to decrease while the number of farms with more than 1000 dairy cows showed a small increase of 1.2 percent in 2009. Farms with herd sizes of less than 30 cows showed the steepest decline between 2008 and 2009, with a decrease of 4.3 percent.

Regional trends in 2009 showed modest production decreases in half of the top 10 milk producing states. California, which leads the nation in farm milk production, had the largest decrease of 4.1 percent in 2009. Texas had the largest percentage increase in output of the top 10 producing states with an increase of 5 percent in 2009; Wisconsin increased its output by 3.1 percent while Minnesota and Michigan both increased output by 2.6 percent. The top 10 states accounted for 73.5 percent of all U.S. milk production.

Nearly 42 percent of the U.S. milk supply produced in 2009 was used to make cheese. Approximately 15 percent of the milk supply was used for fl uid milk, while nearly 8 percent went into the production of frozen desert. Butter production accounted for approximately 18 percent of the milk supply and cultured dairy products account for 5.1 percent, an increase of 4.0 percent over 2008 . The demand for milk for cheesemaking has risen dramatically over the past few decades. In 1960, cheesemaking accounted for about 11 percent of all milk produced in the United States; in 1998, this became the dominant use of milk, and now accounts for more than a majority of milk utilization.

B_10Production.indd 17B_10Production.indd 17 11/16/10 11:38 AM11/16/10 11:38 AM

18

PROD

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Number of Milk Cows, Production Per Cow, and Milk Production

Year Number of Milk Cows1

Milk Per Cow2

(Pounds)Milk Production2

(Million Lbs.)

1950 21,944,000 5,314 116,602

1960 17,515,000 7,029 123,109

1970 12,000,000 9,751 117,007

1980 10,799,000 11,891 128,406

1990 9,993,000 14,782 147,721

1991 9,826,000 15,031 147,697

1992 9,688,000 15,570 150,847

1993 9,581,000 15,722 150,636

1994 9,494,000 16,179 153,602

1995 9,466,000 16,405 155,292

1996 9,372,000 16,433 154,006

1997 9,252,000 16,871 156,091

1998 9,151,000 17,185 157,262

1999 9,153,000 17,763 162,589

2000 9,199,000 18,197 167,393

2001 9,103,000 18,162 165,332

2002 9,139,000 18,608 170,063

2003 9,081,000 18,759 170,348

2004 9,010,000 18,960 170,832

2005 9,050,000 19,550 176,931

2006 9,137,000 19,895 181,782

2007 9,189,000 20,204 185,654

2008r 9,315,000 20,395 189,982

2009p 9,201,000 20,576 189,320

rRevised, pPreliminary. 1Average number during the year; includes dry cows, excludes heifers not yet fresh. 2Excludes milk sucked by calves.Source: USDA, National Agricultural Statistics Service


19

PRODUCTION

Milk Per Cow Number of Milk Cows

Number of Milk Cows and Milk Production Per Cow; 1950-2009

Source: USDA, National Agricultural Statistics Service.

Poun

ds o

f Milk

per

Cow

Million Head

Total Milk Production; 1950-2009

Source: USDA, National Agricultural Statistics Service.

Billi

on P

ound

s


20

PROD

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ON

Total Milk Production in the Ten Largest Dairy States1; 1950-2009State 1950 1975 2000 2008r 2009p

(Million Lbs.)

California 5,991 10,853 32,245 41,203 39,512

Wisconsin 14,796 18,900 23,259 24,472 25,239

New York 8,853 9,964 11,921 12,432 12,424

Idaho 1,197 1,555 7,223 12,315 12,150

Pennsylvania 5,631 7,140 11,156 10,575 10,551

Minnesota 8,067 8,946 9,493 8,782 9,019

Texas 3,451 3,208 5,743 8,416 8,840

Michigan 5,420 4,411 5,705 7,763 7,968

New Mexico 215 366 5,236 7,865 7,904

Washington 1,746 2,322 5,593 5,696 5,561

Percentage of Total Milk Production Accounted for by Top StatesTop 10 69,542 74,414 117,574 139,519 139,168

% Totals2 59.6% 64.5% 70.2% 73.4% 73.5%

Top 20 93,668 94,573 144,743 170,744 170,245

% Totals2 80.3% 82.0% 86.5% 89.9% 89.9%

Total U.S. 116,601 115,398 167,392 189,992 189,320

1Ranked by 2009 total milk production.2Milk Production and percent of total milk are for the top states in the year indicated. pPreliminaryrRevisedSource: USDA, National Agricultural Statistics Service


21

PRODUCTION

U.S. Milk Supply Utilization by Product Category for 2009pProduct Milk Equivalent,

Milkfat Basis Million Pounds

Milk Equivalent,Skim Solids Basis

Million Pounds

Fluid milk products 28,034 56,431

Fluid cream products 13,486 1,948

Cultured dairy products1 9,699 6,789

Frozen dairy products 14,630 3,770

Cheese and whey products 78,899 51,419

Creamery butter 34,764 182

Dry milk products 926 20,196

Used on farms where produced 1,008 1,014

Other uses2 8,061 47,756

Total Milk Supply3 189,507 189,507

p Preliminary. 1 Yogurt, sour cream and cottage cheese. 2 Includes anhydrous milkfat, butter oil, butterine, milk proteins, permeates, food products other than dairy, and plant

and shipping losses. 3 Includes imports and net change in stocks. Source: IDFA calculations based on data from USDA, National Agricultural Statistics Service.

2009 Milk Component Supply Utilization by Finished Product Category

Source: IDFA calculations based on data from USDA, National Agricultural Statistics Service.


22

PROD

UCTI

ON

Milk

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Perc

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23

PRODUCTIONM

onta

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Serv

ice.


24

PROD

UCTI

ON

Supply & Utilization, Milkfat2005 2006 2007 2008r 2009p

(Million Lbs.)

Farm Production 6,486 6,699 6,828 7,000 6,906

Farm Use 40 43 43 40 37

Marketings 6,446 6,657 6,785 6,960 6,869

Percent Change from Previous Year 3.4% 3.3% 1.9% 2.6% -1.3%

Beginning Commercial Stocks 263 294 349 380 369

Imports 170 167 155 132 137

Total Supply 6,879 7,118 7,290 7,473 7,374


Ending Commercial Stocks 294 349 380 369 416

Net Government Removals -1 0 0 1 26

Commercial Disappearance 6,586 6,769 6,910 7,103 6,932


p preliminary r revisedNote: Totals may not add due to rounding. Source: USDA, Economic Research Service

Supply & Utilization, Skim Solids2005 2006 2007 2008r 2009p

(Million Lbs.)

Farm Production 15,324 15,730 16,060 16,437 16,302

Farm Use 94 100 101 93 88

Marketings 15,231 15,630 15,959 16,344 16,215


Beginning Commercial Stocks 703 769 785 852 942

Imports 417 410 379 318 314

Total Supply 16,350 16,808 17,124 17,515 17,470


Ending Commercial Stocks 769 785 848 942 972




p preliminary r revised Total may not add due to rounding. Source: USDA, Economic Research Service.


25

PRODUCTION

Supply & Utilization, Total Dairy Solids12005 2006 2007 2008r 2009p

(Million Lbs.)

Farm Production 21,810 22,429 22,889 23,437 23,208

Farm Use 133 142 144 132 125

Marketings 21,677 22,287 22,745 23,304 23,083


Beginning Commercial Stocks 966 1,063 1,135 1,232 1,311

Imports 587 576 534 451 451

Total Supply 23,230 23,926 24,414 24,987 24,845


Ending Commercial Stocks 1,063 1,135 1,228 1,311 1,388




p preliminary r revisedNote: Totals may not add due to rounding. Source: IDFA calculations from USDA, Economic Research Service data

Number Of U.S. Farm Operations with Milk Cows by Herd Size

Year Total1-29 Head

30-49 Head

50-99 Head

100-199 Head

200-499 Head

500+ Head

1995 139,670 48,186 31,007 39,247 14,246 6,979 1

1996 130,980 43,092 29,209 37,591 14,146 7,073 1

1997 123,700 39,089 27,338 35,873 14,102 5,072 2,474

1998 117,145 36,130 25,485 34,105 13,880 5,155 2,390

1999 110,855 32,955 24,025 32,835 13,220 5,285 2,535

2000 105,055 30,820 22,210 31,190 12,835 5,340 2,660

2001 97,460 28,320 19,910 29,005 12,255 5,514 2,795

2002 91,240 26,355 18,035 27,395 11,555 4,990 2,910

2003 86,360 25,045 16,805 25,800 10,980 4,765 2,965

2004 81,520 23,810 15,500 24,055 10,445 4,700 3,010

2005 78,300 22,490 14,835 23,185 10,055 4,662 3,073

2006 74,880 21,210 14,095 22,215 9,760 4,567 3,133

2007 69,995 21,705 12,270 19,330 9,011 4,395 3,320

2008r 67,000 21,300 11,900 17,800 8,700 3,950 3,350

2009pp 65,000 20,400 11,500 17,300 8,600 3,850 3,350

rRevised, pPreliminary.1Included with 200-499 herd size category prior to 1997

Source: USDA, National Agricultural Statistics Service


26

PROD

UCTI

ON

Average Number of Dairy Cows Per Farm, 1950-2009

YearTotal Number of

Milk CowsOperations with

Milk Cows1Average # of Head Per Farm Operation

Herds Licensed to Sell Milk2

1950 21,944,000 3,648,257 6.0 n/a

1960 17,515,000 1,792,000 9.8 n/a

1970 12,000,000 647,860 18.5 n/a

1980 10,799,000 334,180 32.3 n/a

1990 9,993,000 192,660 51.9 n/a

1991 9,826,000 180,640 54.4 n/a

1992 9,688,000 170,500 56.8 131,535

1993 9,581,000 157,150 61.0 124,942

1994 9,494,000 148,140 64.1 117,732

1995 9,466,000 139,670 67.8 111,932

1996 9,372,000 130,980 71.6 106,045

1997 9,252,000 123,700 74.8 99,413

1998 9,151,000 117,180 78.1 91,508

1999 9,153,000 111,000 82.5 87,527

2000 9,199,000 105,170 87.5 82,937

2001 9,103,000 97,510 93.4 76,875

2002 9,139,000 91,240 100.2 74,110

2003 9,081,000 86,360 105.2 70,410

2004 9,010,000 81,520 110.5 66,825

2005 9,050,000 78,300 115.6 64,540

2006 9,137,000 74,980 121.9 62,070

2007 9,189,000 69,995 131.3 59,130

2008r 9,315,000 67,000 139.0 57,127

2009p 9,201,000 65,000 141.6 54,942

rRevised, pPreliminary n/a = not available 1Farm operations with one or more milk cows 2 Average number of dairy farms licensed to sell milk, based on data collected from state and other regulatory agencies. Prior to 2002, data collected by private researchers; since 2002, data published by USDA, NASS.

Source: USDA, National Agricultural Statistics Service


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PRODUCTION

Number of Producers, Total Milk Receipts, and Average Daily Deliveries in Federal Milk Marketing Orders by Year1, 1950-2009

YearTotal Number of Producers

Total Annual Receipts

(Billion Lbs.)% of U.S. Milk

Produced

Average Daily Delivery Per

Producer(Lbs.)

1950 156,584 18.7 25.0% 326

1960 189,816 44.8 43.0% 645

1970 143,411 65.1 59.0% 1,240

1980 117,490 84.0 67.0% 1,953

1990 100,397 102.4 70.0% 3,276

1991 100,267 103.3 71.0% 2,814

1992 97,803 107.9 73.0% 3,016

1993 92,934 104.0 69.0% 3,057

1994 91,397 107.8 71.0% 3,223

1995 88,717 108.5 71.0% 3,343

1996 82,947 104.5 69.0% 3,442

1997 78,422 105.2 69.0% 3,666

1998 72,402 99.2 64.0% 3,744

1999 69,008 104.5 65.0% 4,137

2000 69,590 116.9 70.0% 4,591

2001 66,423 120.2 73.0% 4,959

2002 63,856 125.5 76.0% 5,387

2003 58,110 110.6 65.0% 5,178

2004 52,341 103.0 61.0% 5,352

2005 53,036 114.7 65.0% 5,904

2006 52,725 120.6 67.0% 6,264

2007 49,782 114.4 61.6% 6,297

2008r 47,859 115.9 61.0% 6,613

2009p 46,677 123.4 66.0% 7,245

pPreliminary, r Revised. 1 Due to signifi cant price differences some farm milk was disassociated, or depooled, from the Federal Order system for a portion of 2000 - 2008. Note: Effective April 1, 2004, the Western Federal milk order was terminated. Source: USDA, Agricultural Marketing Service


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B. FLUID MILK PRODUCTION

Fluid Milk Production OverviewThe volume of fl uid milk products produced in the United States increased slightly in 2009 (less than 0.1 percent) as compared to 2008. About 6.3 billion gallons (54.5 billion pounds) of farm milk was processed into such products as fl uid milk, cream, yogurt and other cultured dairy foods. Overall, approximately 15 percent of the total U.S. milk supply was used to produce fl uid milk products in 2009.

Most of these products were processed using farm milk regulated by the Federal Milk Marketing Order system, which is administered by the U.S. Department of Agriculture (USDA) to regulate fl uid milk processors and other dairy product manufacturers. Under the federal order program, processors are required to pay at least the minimum price set by the federal orders for that farm milk. Both the number of dairy farms (producers) selling farm milk and the number of fl uid milk plants covered by federal order regulations continues to decrease. In 2009, 46,677 dairy farm operations shipped 123.4 billion pounds of farm milk to dairy plants regulated by the Federal Milk Marketing Orders.

As for the nation as a whole, the U.S. Bureau of Census conducts a Census of Manufacturing every fi ve years; the most recent data available are for 2007. That year, 485 manufacturing operations reported having processed fl uid milk products, slightly more than half of the 946 reported in 1987. The total value of fl uid milk and related products manufactured by those plants was approximately $33 billion; the 485 plants employed 54,100 workers, who received more than $3.1 billion dollars in total compensation.

Farm Milk Used in Packaged Fluid Milk Products

YearMillion Pounds

Million GallonsEquivalent1

Percent Change

1950 37,280 4,325

1960 47,360 5,494

1970 45,885 5,323

1980 53,101 6,160

1990 54,894 6,368 -0.2%

1991 55,165 6,400 0.5%

1992 55,135 6,396 -0.1%

1993 54,482 6,320 -1.2%

1994 54,784 6,355 0.6%

1995 54,692 6,345 -0.2%

1996 55,131 6,396 0.8%

1997 54,884 6,367 -0.4%

1998 54,618 6,336 -0.5%

1999 55,016 6,382 0.7%

2000 54,583 6,332 -0.8%

2001 54,085 6,274 -0.9%

2002 54,343 6,304 0.5%

2003 54,051 6,270 -0.5%

2004 53,754 6,236 -0.5%

2005 53,570 6,215 -0.3%

2006 53,925 6,256 0.7%

2007 53,635 6,222 -0.5%

2008r 54,457 6,318 1.5%

2009p 54,536 6,327 0.1%

rRevised. pPreliminary.1IDFA Calculation Source: USDA, Economic Research Service


29

PRODUCTION

Statistics for the Fluid Milk Manufacturing Industry1, Census Years21987 1992 1997 2002 2007

Companies 652 525 402 315 278

All Establishments (Plants)

Total 946 746 608 524 485

With 100 Employees or More 264 246 224 213 212

All Employees

Number (1,000) 72.4 63.4 57.6 55.4 54.1

Payroll (Million Dollars) 1,681.3 1,841.0 1,897.8 2,158.1 2,430.9

Total Compensation (Million Dollars) 2,098.2 2,364.8 2,467.8 2,769.9 3,150.6

Production Workers

Number (1,000) 36.2 32.5 30.0 30.1 36.8

Hours (Million) 74.2 70.8 64.8 63.8 77.9

Wages (Million) 788.9 894.0 943.6 1,076.8 1,604.9

Value Added by Manufacturer (Million Dollars) 15,189.6 15,974.0 15,718.8 16,311.8 22,714.5

Cost of Materials (Million Dollars) 5,426.2 5,966.0 6,284.7 7,935.3 10,265.2

Value of Shipments (Million Dollars) 20,590.5 21,927.0 21,995.1 24,181.8 32,976.5

New Capital Expenditures (Million Dollars) 341.7 363.0 423.5 589.8 815.4

1The Fluid Milk Industry comprises manufacturing establishments for which the value of the shipments of fl uid milk, cream, and related products are both primary and secondary to the industry. 2The U.S. Census Bureau conducts an Economic Census every fi ve years, most recently using data from calendar year 2007. The Manufacturing Series of the Economic Census provides aggregate data on numerous industry groups. For the Dairy Industry, Manufacturing Census data is reported for fi ve sub-categories: Fluid Milk; Creamery Butter; Cheese; Dry, Condensed and Evaporated Dairy Products; and Ice Cream and Frozen Desserts. Source: U.S. Census Bureau.

Statistics for the Fluid Milk and Butter Manufacturing 1, Annual Survey of Manufacturers 2

2007 2008

All Employees

Number (1,000) 56.4 57.6

Payroll (Million Dollars) 2,551.4 2,696.2

Total Compensation (Million Dollars) 742.4 877.7

Production Workers

Number (1,000) 38.5 35.3

Hours (Million) 82.2 73.6

Wages (Million) 1,678.2 1,525.8

Cost of Materials (Million Dollars) 25,318.2 26,875.7

Value Added by Manufacturer (Million Dollars) 10,893.1 10,962.6

Value of Shipments (Million Dollars) 36,128.0 37,970.4

Total Capital Expenditures (Million Dollars) 864 785.8

1The Fluid Milk Industry comprises manufacturing establishments for which the value of the shipments of fl uid milk, cream, and related products are both primary and secondary to the industry. 2The U.S. Census Bureau conducts an Economic Census every fi ve years, most recently using data from calendar year 2007. The Manufacturing Series of the Economic Census provides aggregate data on numerous industry groups. For the Dairy Industry, Manufacturing Census data is reported for fi ve sub-categories: Fluid Milk; Creamery Butter; Cheese; Dry, Condensed and Evaporated Dairy Products; and Ice Cream and Frozen Desserts. Source: U.S. Census Bureau.


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Fluid Milk Product Sales

YearWhole

White Milk

Reduced & Lowfat

White MilkNonfat

White Milk

Flavored Milk and Drinks Buttermilk Eggnog

Other Fluid Milk Products

Total Fluid Milk Sales

(Million Lbs. of Product Sold)

1960 47,360 4,080 1/ 1,200 1,140 46 53,826

1970 45,875 11,525 1/ 1,763 1,135 61 60,359

1980 31,253 15,918 2,636 2,272 927 95 53,101

1990 21,333 24,509 5,702 2,348 879 123 0 54,894

1991 20,769 25,039 6,000 2,391 855 111 0 55,165

1992 20,196 25,225 6,357 2,434 808 115 0 55,135

1993 19,460 24,825 6,844 2,466 780 107 0 54,482

1994 19,223 24,735 7,414 2,544 760 108 0 54,784

1995 18,662 24,202 8,359 2,618 739 112 0 54,692

1996 18,698 24,011 8,871 2,737 711 103 0 55,131

1997 18,413 23,709 9,139 2,830 691 102 0 54,884

1998 18,147 23,449 9,203 3,044 676 102 0 54,618

1999 18,467 23,571 8,985 3,216 668 109 0 55,016

2000 18,448 23,649 8,435 3,336 622 93 0 54,583

2001 18,007 23,630 8,225 3,526 592 105 0 54,085

2002 17,960 23,610 8,030 4,040 576 127 0 54,343

2003 17,832 23,559 7,789 4,190 547 134 447 54,498

2004 17,395 23,611 7,794 4,297 528 129 447 54,201

2005 16,760 23,882 7,984 4,302 512 130 425 53,995

2006 16,443 24,271 8,123 4,452 504 132 894 54,819

2007 15,736 24,698 8,203 4,368 508 122 1,093 54,728

2008 15,309 25,924 8,246 4,308 547 124 220 54,678

2009 15,021 26,379 8,231 4,198 580 128 0 54,536

1Prior to 1975 Nonfat White Milk was included with Reduced/Lowfat White MilkSource: USDA, Economic Research Service.


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PRODUCTION

Buttermilk & Eggnog

Other

Flavored Milks

Nonfat White

Reduced/Lowfat White

Whole White

Fluid Milk Product Sales by Product; 1998-2009

Source: USDA, Economic Research Service.

Billi

on P

ound

s


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Cream and Specialty Dairy Product Sales; 1980-2009Year Fluid Cream1 Sour Cream and Dips Yogurt Cottage Cheese

Million Pounds

1980 765 408 570 1,023

1990 1,151 625 1,055 849

1991 2,011 659 1,109 835

1992 1,227 692 1,154 795

1993 1,261 694 1,286 754

1994 1,268 710 1,392 737

1995 1,328 767 1,646 719

1996 1,431 762 1,588 700

1997 1,506 794 1,574 709

1998 1,544 817 1,639 745

1999 1,683 841 1,717 726

2000 1,751 914 1,837 734

2001 1,943 990 2,003 741

2002 1,860 1,031 2,135 749

2003 2,151 1,156 2,387 785

2004 2,313 1,236 2,709 764

2005 2,351 1,309 3,058 771

2006 2,459 1,256 3,301 778

2007 2,529 1,313 3,476 783

2008r 2,456 1,278 3,599 723

2009p 2,452 1,275 3,832 738

rRevised, pPreliminary.1Includes Half and Half, Heavy Cream and Light CreamSource: USDA, Economic Research Service.


33

PRODUCTION

Percent of Fluid Milk Products Sold by Plants by Distribution Outlet, Container Type and Container Size, 1982-20051

1985 1995 2003 2005

(Percent)

Distribution Method:

Home Delivered 1 2 2 2

Wholesale 98 99 100 100

Supermarkets 53 57 50 48

Dairy/Convenience 9 10 11 9

Military 1 1 1 1

Schools 7 7 6 6

All Other3 28 25 32 35

Type of Container:

Glass 2 2 2 2

Paper 34 24 16 15

Plastic 65 76 84 85

Size of Container:

Gallon 60 64 65 65

Half Gallon 22 18 18 18

Quart 5 4 4 3

Pint 2 2 2 2

Half-Pint 9 10 9 10

Bulk - Over 5 Qts.4 2 2 1 1

Total 100 100 100 100

Note: Total may not add due to rounding. Latest data available.1November is considered representative of the annual average. 2Less than 0.5 percent. 3Wholesale deliveries to places that are not supermarkets, concenience stores, military, or schools. 4Metal cans and plastic bag-in box containers.Source: USDA, Agricultural Marketing Service


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C. ICE CREAM & FROZEN DAIRY PRODUCT PRODUCTION

Frozen Dairy Product Production OverviewAbout 1.52 billion gallons of ice cream, including both hard and soft-serve, was produced in 2009, a decrease of 1.2 percent over 2008. Representing approximately 26.2 percent of the entire frozen dairy product market, low-fat and nonfat ice cream production decreased by 0.2 percent in 2009. Production of the largest category, regular ice cream (60.5 percent), decreased by 1.1 percent in 2009. Production of water ice and other frozen dairy products,(which includes products such as sorbet), were the only categories that showed growth according to Department of Agriculture statistics; water ice increased by 0.8 percent and other frozen dairy products increased by 2.8 percent over 2008. Together, they represent about 5 percent of frozen dairy products.

Frozen dairy production follows a clear seasonal pattern. Summer is the unchallenged season for eating ice cream and other related products. Production kicks up in March and April to fi ll retail and foodservice pipelines in the late spring and early summer. June is the highest production month of the year, but production remains strong through August to satisfy summer demand. Production declines through the end of the year.

California continued to lead the United States in output of frozen dairy desserts in 2009, at over 169 million gallons, or approximately 11.1 percent of the U.S. total, an increase of 1.1 percent over 2008.

B_10Production.indd 34B_10Pro

Dairy Facts 2010

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