United States General Accounting Office

GAO Report to Congressional Requesters

October 1998 DAIRY INDUSTRY

Information on Prices

for Fluid Milk and the

Factors That Influence

Them

GAO/RCED-99-4

GAO United States

General Accounting Office

Washington, D.C. 20548

Resources, Community, and

Economic Development Division

B-280638 

October 8, 1998

The Honorable James M. Jeffords

The Honorable Patrick J. Leahy

United States Senate

Retail sales of fluid drinking milk (fluid milk) in the United States total

about $19 billion annually. A number of entities are involved in the process

of moving milk from the dairy farm to the consumer, and these entities

perform distinct functions in the production, processing, and marketing of

fluid milk. Dairy farmers produce unprocessed milk that they (1) market

through dairy cooperatives, (2) sell to bottlers who process it into fluid

milk for sale to retail outlets, or (3) process into fluid milk for direct sale

to consumers. Most milk produced by dairy farmers in the United States is

marketed through dairy cooperatives. Dairy cooperatives can either sell,

or arrange the sale of, unprocessed milk purchased from farmers to

wholesalers, or they can process it into fluid milk and distribute this fluid

milk to retail outlets themselves. Wholesalers (bottlers or retail food

chains with bottling plants) purchase unprocessed milk from dairy farmers

or cooperatives and process and package it into fluid milk, which they

then distribute to retail outlets. Retail outlets purchase fluid milk for direct

sale to consumers. A portion of the retail price of a gallon of fluid milk is

received by farmers, cooperatives, wholesalers, and retailers for the

functions they perform during the production, processing, and marketing

of fluid milk.

You requested that we examine certain issues concerning the pricing and

marketing of fluid milk. This report provides information on (1) the factors

that influence the price of fluid milk as it moves from the farm to the

consumer; (2) the portion of the average retail price of a gallon of fluid

milk that is received by farmers, cooperatives, wholesalers, and retailers in

selected markets across the country; (3) changes in farm and retail prices

and their effect on the farm-to-retail price spread—which is the difference

between the retail and the farm price; (4) the way changes in prices at any

given level in the milk marketing chain are reflected in changes in prices at

the other levels; and (5) different retail pricing relationships that exist in

selected markets among the four kinds of milk—whole, reduced-fat

(2-percent), low-fat (1-percent), and fat-free (skim). For this report, we

analyzed fluid milk prices for 31 selected markets nationwide and

generally limited our analysis to 2-percent milk sold in gallon containers,

which currently represents the largest volume of reduced-fat milk sold

nationwide. We issued a report on March 16, 1998, entitled Dairy Industry:

Page 1 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
B-280638 

Information on the Marketing Channels and Prices for Fluid Milk

(GAO/RCED-98-70) that addresses other issues—concerning marketing

channels and pricing for fluid milk—about which you had concerns.1

In summary, we found the following:

• At all levels in the fluid milk marketing chain, prices are determined by the

interaction of numerous supply and demand factors. The supply available

at any given level is influenced by the costs incurred by the entities

involved in the production, processing, and marketing of fluid milk; the

government policies that establish minimum prices for unprocessed milk

used to produce fluid milk; competitive conditions in the marketplace; the

market power acquired by the entities involved; and the price of milk.

Similarly, the amount demanded at any given level is influenced by the

size, age, and income levels of the population in the marketing area; and

the prices of fluid milk and substitute goods. Furthermore, the prices that

retailers receive for fluid milk are influenced not only by their operating

costs and their needed return on investment but also by other factors,

such as the pricing strategies that they and their competitors use.

• From January 1996 through February 1998, for the 31 fluid milk markets

that we reviewed, on average, farmers received 42 percent of the retail

price for a gallon of 2-percent milk, cooperatives received 10 percent,2

wholesalers received 31 percent, and retailers received 17 percent.

However, the portion received at any one level in the marketing chain

varied substantially among markets. For example, the portion of the

average retail price that farmers received ranged from about 31 to

54 percent, and the portion that retailers received varied between about 4

and 31 percent in the markets we reviewed, with one exception.

• From January 1996 through February 1998, retail prices for a gallon of

2-percent milk remained constant or increased in 27 markets and

decreased in 4 markets. In contrast, farm prices decreased in 27 markets

and remained constant in 4 markets. As a result of these price changes, the

farm-to-retail price spread increased in 27 of the 31 markets over the

26-month period we reviewed.

• Changes in prices at any given level in the milk marketing chain were most

often reflected in changes in prices at the next level, as might be expected.

For example, in most of the markets we analyzed, there was a strong

1

Our Mar. 1998 report provided information on (1) the entities that handle fluid milk from the time it

leaves the farm to the time it is sold to the consumer, including regional variations, and (2) prices for

dairy and other food products at various market levels nationally and in certain urban markets across

the country for the period Dec. 1990 through Sept. 1997.

2

According to USDA officials, a portion of the amount received by cooperatives may be used to pay

costs, such as hauling, in some markets.

Page 2 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
B-280638 

correlation between changes in farm prices and changes in cooperative

prices. Similarly, changes in wholesale prices generally correlated with

changes in retail prices. In contrast, changes in prices received by farmers

less frequently correlated with changes in retail prices than they did with

changes in cooperative or wholesale prices.

• Retail pricing relationships among the four kinds of milk varied

significantly in the markets we analyzed. For example, from January 1996

through February 1998, in some markets, 1-percent milk was most often

the lowest-priced milk sold at the retail level; in other markets, fat-free

milk was the lowest-priced milk; and in still other markets, the

lowest-priced milk sold in retail stores shifted among whole, 2-percent,

and fat-free milk.

This report is divided into six appendixes. Appendix I describes in detail

our objectives, scope, and methodology. Appendix II describes the various

factors that influence the price of fluid milk as it moves from the farm to

the consumer. Appendix III provides information on the average price of

milk at the farm, cooperative, wholesale, and retail levels; changes in farm

and retail prices and their effect on the farm-to-retail price spread; and the

relationship between changes in the price of milk at a given level to

changes in prices at another level of the milk marketing chain for a gallon

of 2-percent milk in selected markets for January 1996 through February

1998. Appendix IV provides information on retail pricing relationships for

whole, 2-percent, 1-percent, and fat-free milk in selected markets for the

period January 1996 through February 1998. Appendix V provides detailed

information on the average monthly farm-, cooperative-, wholesale-, and

retail-level prices for the four kinds of milk (whole, 2-percent, 1-percent,

and fat-free) in selected markets for January 1996 through February 1998.

Appendix VI provides the results of our analysis using an alternate method

suggested by the Economic Research Service to calculate farm-level

prices.

Agency Comments We provided copies of a draft of this report to USDA and the Department of

Defense for their review and comment. We met with officials from USDA’s

Agricultural Marketing Service, Economic Research Service, and Rural

Business Service, including the Associate Deputy Administrator, branch

chiefs, and others, to discuss their comments on the draft report. These

officials had several concerns about our use of USDA’s published data for

the mailbox and announced cooperative price series as surrogates for

farm- and cooperative-level prices, and our use of commissary prices as a

Page 3 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
B-280638 

surrogate for wholesale prices. Specifically, the officials made the

following comments:

• Using the mailbox price3 as the farm-level price understates the amount

that farmers receive for a gallon of fluid milk by different amounts for

various markets. This is because the mailbox price is the average price

received by all farmers in the market for all uses of milk, and the actual

prices received by farmers for milk used in fluid products would vary by

market, depending upon the proportion of milk used in that market for

products other than fluid milk, the costs and profits from manufacturing

milk, and other factors that are unrelated to the fluid milk market. During

our meeting, Economic Research Service officials suggested what they

believe is a better measure of farm-level prices for fluid milk.4

 However,

these officials stated that while their suggested method might provide a

better estimate of the farm-level price for fluid milk, it would still not

provide a perfect estimate because it is impossible to isolate the price for

fluid milk in a market where there is concurrent demand for milk used for

other products. We were aware of the limitations of using mailbox prices

as a surrogate for farm-level prices for fluid milk and therefore included a

discussion of these limitations in appendix I of the draft report. However,

we chose to use the mailbox price in our analysis because it is routinely

published and is, in the dairy industry, a relatively well-recognized

estimate of the average price received by farmers. We continue to believe

that it provides an adequate proxy for determining the relative portions of

the retail price received by the various entities in the farm-to-retail milk

marketing chain and the associated trends in changes to these portions.

Our views were generally shared by the dairy industry experts who we

spoke with. However, to provide additional perspectives on fluid milk

prices, we calculated the farm-level prices for 24 of the 31 markets for

which the necessary data were available using the method suggested by

the Economic Research Service officials. We found that by using this

methodology, farmers, on average, received 47 percent of the retail price

for a gallon of 2-percent milk instead of the 43 percent that we calculated

using the mailbox price, and cooperatives received 6 percent of the retail

price instead of 10 percent in the 24 markets from January 1996 through

3

The mailbox price is the weighted average of the prices received by all dairy farmers in the market

and therefore is computed as the total net dollars received for milk divided by the total pounds of milk

marketed.

4

The Economic Research Service-suggested formula for estimating farm-level prices for fluid milk is

computed by subtracting the difference between the federal order blend price—which is the price paid

to producers, specifically, and is the weighted average of the values of all classes of milk used by all

processors—and the mailbox price from the federal order minimum class I price—which is the

minimum price for Grade A milk used to produce fluid milk products.

Page 4 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
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February 1998. Appendix VI contains additional data and analysis of fluid

milk prices using the Economic Research Service’s methodology.

• USDA officials also told us that the manner in which we used the

announced cooperative price series overstates the cooperatives’ share of

the retail price. In part, this is because the announced cooperative price

includes certain revenues that are not retained by the cooperative but are

used to cover costs such as hauling. The officials acknowledged, however,

that it is difficult to calculate the actual share of the retail milk price that is

received by cooperatives. We have revised the report to indicate that a

portion of the announced cooperative price may be used to pay for some

costs, such as hauling, in some markets.

• Finally, according to the officials, commissary prices may not be a good

surrogate for wholesale prices because (1) some of the commissaries are

not in close proximity to the markets we analyzed, (2) the wholesale price

data were derived from a single store in each market we analyzed, and

(3) the commissary price is based on contracts awarded to the lowest-cost

bidder and is the result of a rigid bidding process that may not reflect the

wholesale prices paid by retailers in a given market. Commissary prices

were the best surrogate we could obtain for wholesale prices because of

the proprietary nature of wholesale price data. We generally agree with

USDA’s concerns that commissary prices may not be fully representative of

wholesale prices because they are derived from a single store in each of

the markets and are often based on contracts awarded to the lowest-cost

bidder. However, we disagree with USDA’s comment that the commissaries

we selected were not in close proximity to the markets we analyzed. As

displayed in Figure I.1 in appendix I, for almost all of the 31 markets

included in our analysis, the commissary that we selected was within the

marketing area being analyzed. Moreover, according to industry

representatives with whom we shared our analysis, the commissary prices

appear to be a valid surrogate for actual wholesale prices.

USDA officials also provided us with technical comments that we have

incorporated into the report as appropriate.

Department of Defense officials advised us that they agreed with the

information included in this report on milk prices obtained from defense

commissaries and had no other comments.

To identify the major factors that influence the price of milk as it moves

from the farm to the consumer, we obtained and analyzed studies

performed by USDA, universities, and private entities, and spoke to state

Page 5 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
B-280638 

government and industry representatives and officials at USDA. To report

on the various relationships among prices at the farm through retail levels,

we obtained information on milk prices in 31 selected markets throughout

the United States. These markets were selected because (1) data were

available for these locations, (2) they provided geographical coverage for

the nation, and (3) they represented a cross section of state- and federally

regulated markets. For these markets, we obtained data from USDA, state

milk control agencies, the Department of Defense, and a private data

collection company on the prices received by farmers, cooperatives,

wholesalers, and retailers for January 1996 through February 1998. We

limited our data collection efforts to the sale of whole, 2-percent,

1-percent, and fat-free fluid milk sold in gallon containers, which

represents about 64 percent of the fluid milk sold in the United States, and

we limited our data analysis to 2-percent milk sold in gallon containers.

Our analysis of 2-percent milk may not reflect pricing patterns and trends

for the other kinds of milk. A more detailed description of our scope and

methodology is presented in appendix I. We have attributed all of the data

used in our analysis to the source from which they were obtained and have

not verified the accuracy of these data because the information from

which they were compiled was not available to us.

We conducted our review from November 1997 through September 1998 in

accordance with generally accepted government auditing standards.

As arranged with your offices, unless you publicly announce its contents

earlier, we will make no further distribution of this report until 30 days

after the date of this letter. At that time, we will send copies to the Senate

Committee on Agriculture, Nutrition, and Forestry; the House Committee

on Agriculture; other appropriate congressional committees; interested

Members of Congress; the Secretary of Agriculture; the Director, Office of

Management and Budget; and other interested parties. We will also make

copies available to others upon request.

Page 6 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
B-280638 

Please contact me at (202) 512-5138 if you or your staff have any questions

about this report. Major contributors to this report are listed in appendix

VII.

Robert E. Robertson

Associate Director, Food

 and Agriculture Issues

Page 7 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Contents

Letter 1

Appendix I 

Objectives, Scope,

and Methodology

18

Appendix II 

Factors That

Influence the Price of

Fluid Milk as It Moves

From the Farm to the

Consumer

26

Federal and State Policies Influence Milk Prices at the Farm 26

Services Provided by Dairy Cooperatives Affect the Price of Milk 27

Wholesalers’ Processing, Packaging, and Distributing Costs

Affect the Price of Fluid Milk

28

Retail Milk Prices Depend on the Pricing Strategies Used by

Retailers

30

Appendix III 

Analysis of

Farm-To-Retail Prices

for 2-Percent Milk in

Selected Markets

33

Portion Received by Farmers, Cooperatives, Wholesalers, and

Retailers

33

Changes in Farm and Retail Prices and the Price Spread 35

Correlation Between Price Changes at the Four Marketing Levels 36

Comparison of Prices at the Four Marketing Levels 40

Appendix IV 

Retail Pricing

Relationships for Four

Kinds of Fluid Milk in

Selected Markets

72

Page 8 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Contents

Appendix V 

Data on the Average

Monthly Retail,

Wholesale-,

Cooperative-, and

Farm-Level Prices for

Four Kinds of Fluid

Milk in Selected

Markets

104

Appendix VI 

Alternative

Farm-Level Price for

Fluid Milk

168

Appendix VII 

Major Contributors to

This Report

180

Tables Table III.1: Portion of the Retail Price of a Gallon of 2-percent

Milk Received by Farmers, Cooperatives, Wholesalers, and

Retailers for 31 Markets, January 1996 Through February 1998

34

Table III.2: Increases or Decreases in the Farm-to-Retail Price

Spread for a Gallon of 2-percent Milk for 31 Markets,

January 1996 Through February 1998

35

Table III.3: Correlation Between Farm-Level-Price Changes and

Changes in Cooperative, Wholesale, and Retail Prices for a Gallon

of 2-percent Milk for 31 Markets, January 1996 Through

February 1998

37

Table III.4: Correlation Between Cooperative-Level-Price

Changes and Changes in Wholesale and Retail Prices for a Gallon

of 2-percent Milk for 31 Markets, January 1996 Through

February 1998

38

Page 9 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Contents

Table III.5: Correlation Between Wholesale-Level-Price Changes

and Changes in Retail Prices for a Gallon of 2-percent Milk for 31

Markets, January 1996 Through February 1998

39

Table V.1: Atlanta, Ga., Market Milk Prices Per Gallon—Retail

and Wholesale Prices, and Announced Cooperative Class I and

Mailbox Prices, 1996-February 1998

106

Table V.2: Augusta, Me., Market Milk Prices Per Gallon—Retail

and Wholesale Prices, and Dealer Cost Class I and Mailbox

Prices, 1996-February 1998

108

Table V.3: Bismarck, N.D., Market Milk Prices Per Gallon—Retail

and Wholesale Prices, and North Dakota Class I and Grade A

Prices, 1996-February 1998

110

Table V.4: Boston, Mass., Market Milk Prices Per Gallon—Retail

and Wholesale Prices, and Announced Cooperative Class I and

Mailbox Prices, 1996-February 1998

112

Table V.5: Chicago, Ill., Market Milk Prices Per Gallon—Retail

and Wholesale Prices, and Announced Cooperative Class I and

Mailbox Prices, 1996-February 1998

114

Table V.6: Cincinnati, Ohio, Market Milk Prices Per

Gallon—Retail and Wholesale Prices, and Announced

Cooperative Class I and Mailbox Prices, 1996-February 1998

116

Table V.7: Dallas, Tex., Market Milk Prices Per Gallon—Retail

and Wholesale Prices, and Announced Cooperative Class I and

Mailbox Prices, 1996-February 1998

118

Table V.8: Denver, Colo., Market Milk Prices Per Gallon—Retail

and Wholesale Prices, and Announced Cooperative Class I and

Mailbox Prices, 1996-February 1998

120

Table V.9: Houston, Tex., Market Milk Prices Per Gallon—Retail

and Wholesale Prices, and Announced Cooperative Class I and

Mailbox Prices, 1996-February 1998

122

Table V.10: Kansas City, Mo., Market Milk Prices Per

Gallon—Retail and Wholesale Prices, and Announced

Cooperative Class I and Blend Prices, 1996-February 1998

124

Table V.11: Las Vegas, Nev., Market Milk Prices Per

Gallon—Retail and Wholesale Prices, and Announced

Cooperative Class I and Mailbox Prices, 1996-February 1998

126

Table V.12: Louisville, Ky., Market Milk Prices Per Gallon—Retail

and Wholesale Prices, and Announced Cooperative Class I and

Mailbox Prices, 1996-February 1998

128

Page 10 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Contents

Table V.13: Miami, Fla., Market Milk Prices Per Gallon—Retail

and Wholesale Prices, and Announced Cooperative Class I and

Mailbox Prices, 1996-February 1998

130

Table V.14: Milwaukee, Wis., Market Milk Prices Per

Gallon—Retail and Wholesale Prices, and Announced

Cooperative Class I and Mailbox Prices, 1996-February 1998

132

Table V.15: Minneapolis, Minn., Market Milk Prices Per

Gallon—Retail and Wholesale Prices, and Announced

Cooperative Class I and Mailbox Prices, 1996-February 1998

134

Table V.16: New Hampshire Market Milk Prices Per

Gallon—Retail and Wholesale Prices, and Announced

Cooperative Class I and Mailbox Prices, 1996-February 1998

136

Table V.17: New Haven, Conn., Market Milk Prices Per

Gallon—Retail and Wholesale Prices, and Announced

Cooperative Class I and Mailbox Prices, 1996-February 1998

138

Table V.18: New Orleans, La., Market Milk Prices Per

Gallon—Retail and Wholesale Prices, and Announced

Cooperative Class I and Mailbox Prices, 1996-February 1998

140

Table V.19: New York, N.Y., Market Milk Prices Per

Gallon—Retail and Wholesale Prices, and Announced

Cooperative Class I and Mailbox Prices, 1996-February 1998

142

Table V.20: Orlando, Fla., Market Milk Prices Per Gallon—Retail

and Wholesale Prices, and Announced Cooperative Class I and

Mailbox Prices, 1996-February 1998

144

Table V.21: Philadelphia, Pa., Market Milk Prices Per

Gallon—Retail and Wholesale Prices, and Announced

Cooperative Class I and Mailbox Prices, 1996-February 1998

146

Table V.22: Phoenix, Ariz., Market Milk Prices Per Gallon—Retail

and Wholesale Prices, and Announced Cooperative Class I and

Blend Prices, 1996-February 1998

148

Table V.23: Raleigh, N.C., Market Milk Prices Per Gallon—Retail

and Wholesale Prices, and Announced Cooperative Class I and

Mailbox Prices, 1996-February 1998

150

Table V.24: Rhode Island Market Milk Prices Per Gallon—Retail

and Wholesale Prices, and Announced Cooperative Class I and

Mailbox Prices, 1996-February 1998

152

Table V.25: Richmond, Va., Market Milk Prices Per Gallon—Retail

and Wholesale Prices, and Virginia Class I and Grade A Prices,

1996-February 1998

154

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Table V.26: Sacramento, Calif., Market Milk Prices Per

Gallon—Retail and Wholesale Prices, and California Class I and

Mailbox Prices, 1996-February 1998

156

Table V.27: Salt Lake City, Utah, Market Milk Prices Per

Gallon—Retail and Wholesale Prices, and Announced

Cooperative Class I and Mailbox Prices, 1996-February 1998

158

Table V.28: San Diego, Calif., Market Milk Prices Per

Gallon—Retail and Wholesale Prices, and California Class I and

Mailbox Prices, 1996-February 1998

160

Table V.29: Seattle, Wash., Market Milk Prices Per Gallon—Retail

and Wholesale Prices, and Announced Cooperative Class I and

Mailbox Prices, 1996-February 1998

162

Table V.30: Vermont Market Milk Prices Per Gallon—Retail and

Wholesale Prices, and Announced Cooperative Class I and

Mailbox Prices, 1996-February 1998

164

Table V.31: Washington, D.C., Market Milk Prices Per

Gallon—Retail and Wholesale Prices, and Announced

Cooperative Class I and Mailbox Prices, 1996-February 1998

166

Table VI.1: Comparison of the Mailbox Price With the Alternative

Farm Price for a Gallon of Milk Adjusted To Two Percent

Butterfat Content for Twenty-Four Markets, 1996-February 1998

170

Table VI.2: Portion of the Retail Price of a Gallon of 2-Percent

Milk Received by Farmers and Cooperatives Using the

Alternative Farm Price, January 1996 Through February 1998

176

Table VI.3: Increases or Decreases in the Farm-to-Retail Price

Spread for a Gallon of 2-Percent Milk Using the Alternative Farm

Price, January 1996 Through February 1998

177

Table VI.4: Correlation Between Alternative-Farm-Level-Price

Changes and Changes in Cooperative, Wholesale, and Retail

Prices for a Gallon of 2-Percent Milk, January 1996 Through

February 1998

179

Figures Figure I.1: Selected Fluid Milk Markets and the Corresponding

Defense Commissaries Used for Our Analysis of Milk Prices

22

Figure II.1: Estimated Costs of Marketing a Gallon of 2-Percent

Milk in the New York Metropolitan Area, 1995

30

Figure III.1: Farm, Cooperative, Wholesale, and Retail Prices for a

Gallon of 2-percent Fluid Milk for the Atlanta, Ga., Market

41

Figure III.2: Farm, Cooperative, Wholesale, and Retail Prices for a

Gallon of 2-percent Fluid Milk for the Augusta, Me., Market

42

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Figure III.3: Farm, Cooperative, Wholesale, and Retail Prices for a

Gallon of 2-percent Fluid Milk for the Bismarck, N.D., Market

43

Figure III.4: Farm, Cooperative, Wholesale, and Retail Prices for a

Gallon of 2-percent Fluid Milk for the Boston, Mass., Market

44

Figure III.5: Farm, Cooperative, Wholesale, and Retail Prices for a

Gallon of 2-percent Fluid Milk for the Chicago, Ill., Market

45

Figure III.6: Farm, Cooperative, Wholesale, and Retail Prices for a

Gallon of 2-percent Fluid Milk for the Cincinnati, Ohio, Market

46

Figure III.7: Farm, Cooperative, Wholesale, and Retail Prices for a

Gallon of 2-percent Fluid Milk for the Dallas, Tex., Market

47

Figure III.8: Farm, Cooperative, Wholesale, and Retail Prices for a

Gallon of 2-percent Fluid Milk for the Denver, Colo., Market

48

Figure III.9: Farm, Cooperative, Wholesale, and Retail Prices for a

Gallon of 2-percent Fluid Milk for the Houston, Tex., Market

49

Figure III.10: Farm, Cooperative, Wholesale, and Retail Prices for

a Gallon of 2-percent Fluid Milk for the Kansas City, Mo., Market

50

Figure III.11: Farm, Cooperative, Wholesale, and Retail Prices for

a Gallon of 2-percent Fluid Milk for the Las Vegas, Nev., Market

51

Figure III.12: Farm, Cooperative, Wholesale, and Retail Prices for

a Gallon of 2-percent Fluid Milk for the Louisville, Ky., Market

52

Figure III.13: Farm, Cooperative, Wholesale, and Retail Prices for

a Gallon of 2-percent Fluid Milk for the Miami, Fla., Market

53

Figure III.14: Farm, Cooperative, Wholesale, and Retail Prices for

a Gallon of 2-percent Fluid Milk for the Milwaukee, Wis., Market

54

Figure III.15: Farm, Cooperative, Wholesale, and Retail Prices for

a Gallon of 2-percent Fluid Milk for the Minneapolis, Minn.,

Market

55

Figure III.16: Farm, Cooperative, Wholesale, and Retail Prices for

a Gallon of 2-percent Fluid Milk for the New Hampshire Market

56

Figure III.17: Farm, Cooperative, Wholesale, and Retail Prices for

a Gallon of 2-percent Fluid Milk for the New Haven, Conn.,

Market

57

Figure III.18: Farm, Cooperative, Wholesale, and Retail Prices for

a Gallon of 2-percent Fluid Milk for the New Orleans, La., Market

58

Figure III.19: Farm, Cooperative, Wholesale, and Retail Prices for

a Gallon of 2-percent Fluid Milk for the New York, N.Y., Market

59

Figure III.20: Farm, Cooperative, Wholesale, and Retail Prices for

a Gallon of 2-percent Fluid Milk for the Orlando, Fla., Market

60

Figure III.21: Farm, Cooperative, Wholesale, and Retail Prices for

a Gallon of 2-percent Fluid Milk for the Philadelphia, Pa., Market

61

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Figure III.22: Farm, Cooperative, Wholesale, and Retail Prices for

a Gallon of 2-percent Fluid Milk for the Phoenix, Ariz., Market

62

Figure III.23: Farm, Cooperative, Wholesale, and Retail Prices for

a Gallon of 2-percent Fluid Milk for the Raleigh, N.C., Market

63

Figure III.24: Farm, Cooperative, Wholesale, and Retail Prices for

a Gallon of 2-percent Fluid Milk for the Rhode Island Market

64

Figure III.25: Farm, Cooperative, Wholesale, and Retail Prices for

a Gallon of 2-percent Fluid Milk for the Richmond, Va., Market

65

Figure III.26: Farm, Cooperative, Wholesale, and Retail Prices for

a Gallon of 2-percent Fluid Milk for the Sacramento, Calif.,

Market

66

Figure III.27: Farm, Cooperative, Wholesale, and Retail Prices for

a Gallon of 2-percent Fluid Milk for the Salt Lake City, Utah,

Market

67

Figure III.28: Farm, Cooperative, Wholesale, and Retail Prices for

a Gallon of 2-percent Fluid Milk for the San Diego, Calif., Market

68

Figure III.29: Farm, Cooperative, Wholesale, and Retail Prices for

a Gallon of 2-percent Fluid Milk for the Seattle, Wash., Market

69

Figure III.30: Farm, Cooperative, Wholesale, and Retail Prices for

a Gallon of 2-percent Fluid Milk for the Vermont Market

70

Figure III.31: Farm, Cooperative, Wholesale, and Retail Prices for

a Gallon of 2-percent Fluid Milk for the Washington, D.C., Market

71

Figure IV.1: Atlanta, Ga., Market Retail Prices for Whole,

2-percent, 1-percent, and Fat-free Milk

73

Figure IV.2: Augusta, Me., Market Retail Prices for Whole,

2-percent, 1-percent, and Fat-free Milk

74

Figure IV.3: Bismarck, N.D., Market Retail Prices for Whole,

2-percent, 1-percent, and Fat-free Milk

75

Figure IV.4: Boston, Mass., Market Retail Prices for Whole,

2-percent, 1-percent, and Fat-free Milk

76

Figure IV.5: Chicago, Ill., Market Retail Prices for Whole,

2-percent, 1-percent, and Fat-free Milk

77

Figure IV.6: Cincinnati, Ohio, Market Retail Prices for Whole,

2-percent, 1-percent, and Fat-free Milk

78

Figure IV.7: Dallas, Tex., Market Retail Prices for Whole,

2-percent, 1-percent, and Fat-free Milk

79

Figure IV.8: Denver, Colo., Market Retail Prices for Whole,

2-percent, 1-percent, and Fat-free Milk

80

Figure IV.9: Houston, Tex., Market Retail Prices for Whole,

2-percent, 1-percent, and Fat-free Milk

81

Page 14 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Contents

Figure IV.10: Kansas City, Mo., Market Retail Prices for Whole,

2-percent, 1-percent, and Fat-free Milk

82

Figure IV.11: Las Vegas, Nev., Market Retail Prices for Whole,

2-percent, 1-percent, and Fat-free Milk

83

Figure IV.12: Louisville, Ky., Market Retail Prices for Whole,

2-percent, 1-percent, and Fat-free Milk

84

Figure IV.13: Miami, Fla., Market Retail Prices for Whole,

2-percent, 1-percent, and Fat-free Milk

85

Figure IV.14: Milwaukee, Wis., Market Retail Prices for Whole,

2-percent, 1-percent, and Fat-free Milk

86

Figure IV.15: Minneapolis, Minn., Market Retail Prices for Whole,

2-percent, 1-percent, and Fat-free Milk

87

Figure IV.16: New Hampshire Market Retail Prices for Whole,

2-percent, 1-percent, and Fat-free Milk

88

Figure IV.17: New Haven, Conn., Market Retail Prices for Whole,

2-percent, 1-percent, and Fat-free Milk

89

Figure IV.18: New Orleans, La., Market Retail Prices for Whole,

2-percent, 1-percent, and Fat-free Milk

90

Figure IV.19: New York, N.Y., Market Retail Prices for Whole,

2-percent, 1-percent, and Fat-free Milk

91

Figure IV.20: Orlando, Fla., Market Retail Prices for Whole,

2-percent, 1-percent, and Fat-free Milk

92

Figure IV.21: Philadelphia, Pa., Market Retail Prices for Whole,

2-percent, 1-percent, and Fat-free Milk

93

Figure IV.22: Phoenix, Ariz., Market Retail Prices for Whole,

2-percent, 1-percent, and Fat-free Milk

94

Figure IV.23: Raleigh, N.C., Market Retail Prices for Whole,

2-percent, 1-percent, and Fat-free Milk

95

Figure IV.24: Rhode Island Market Retail Prices for Whole,

2-percent, 1-percent, and Fat-free Milk

96

Figure IV.25: Richmond, Va., Market Retail Prices for Whole,

2-percent, 1-percent, and Fat-free Milk

97

Figure IV.26: Sacramento, Calif., Market Retail Prices for Whole,

2-percent, 1-percent, and Fat-free Milk

98

Figure IV.27: Salt Lake City, Utah, Market Retail Prices for Whole,

2-percent, 1-percent, and Fat-free Milk

99

Figure IV.28: San Diego, Calif., Market Retail Prices for Whole,

2-percent, 1-percent, and Fat-free Milk

100

Figure IV.29: Seattle, Wash., Market Retail Prices for Whole,

2-percent, 1-percent, and Fat-free Milk

101

Page 15 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Contents

Figure IV.30: Vermont Market Retail Prices for Whole, 2-percent,

1-percent, and Fat-free Milk

102

Figure IV.31: Washington, D.C., Market Retail Prices for Whole,

2-percent, 1-percent, and Fat-free Milk

103

Abbreviations

AMS Agricultural Marketing Service

DOD Department of Defense

ERS Economic Research Service

GAO General Accounting Office

NASS National Agricultural Statistics Service

USDA U.S. Department of Agriculture

Page 16 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Page 17 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix I 

Objectives, Scope, and Methodology

In August 1997, Senators Jeffords and Leahy requested GAO to examine a

number of issues concerning the pricing and marketing of fluid drinking

milk (fluid milk) in the United States.1

 This report provides information on

(1) the factors that influence the price of fluid milk as it moves from the

farm to the consumer, (2) the portion of the average retail price of fluid

milk that is received by farmers, cooperatives, wholesalers, and retailers in

selected markets nationwide, (3) changes in farm and retail prices and

their effect on the farm-to-retail price spread—which is the difference

between the retail and farm prices, (4) the way changes in prices at any

given level in the milk marketing chain are reflected in changes in prices at

the other levels, and (5) different retail pricing relationships that exist in

selected markets among the four kinds of milk—whole, reduced-fat

(2-percent), low-fat (1-percent), and fat-free (skim).

To identify the major factors that influence the price of milk as it moves

from the farm to the consumer, we obtained and analyzed studies

performed by researchers at the U.S. Department of Agriculture (USDA),

universities, and private entities. These included milk marketing cost

studies performed by USDA’s Economic Research Service and researchers

at Cornell University, and studies on retail pricing strategies performed by

Texas A&M University researchers and various state and private entities.

We interviewed officials at USDA, academic researchers, and industry

representatives. We were also referred by the International Dairy Foods

Association, Food Marketing Institute, and National Milk Producers

Federation to some of their members, who spoke to us about the factors

that they believe influence the price of milk as it moves from the farm to

the consumer.

To obtain information on the portion of the retail price received by

farmers, cooperatives, wholesalers, and retailers; changes in farm and

retail prices and their effect on farm-to-retail price spreads; and the

relationship among price changes at different marketing levels, we

obtained information on milk prices in 31 selected markets throughout the

United States. These markets were selected because (1) data were

available for these locations, (2) they provided geographical coverage for

the nation, and (3) they represented a cross section of state- and federally

regulated markets. For these markets, we collected data on the prices

received by farmers, cooperatives, wholesalers, and retailers for

1

In response to this request, we issued a report on Mar. 16, 1998, entitled Dairy Industry: Information

on the Marketing Channels and Prices for Fluid Milk (GAO/RCED-98-70) that provided information on

(1) the entities that handle fluid milk from the time it leaves the farm to the time it is sold to the

consumer, including regional variations, and (2) prices for dairy and other food products at various

market levels nationally and in certain urban markets across the country.

Page 18 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix I 

Objectives, Scope, and Methodology

January 1996 through February 1998. We limited our data collection efforts

to the sale of whole, 2- percent, 1-percent, and fat-free fluid milk sold in

gallon containers, which represent about 64 percent of the fluid milk sold

in the United States.

It is important to recognize that there does not exist a precise method by

which to calculate or determine the price received by farmers and

cooperatives for fluid milk. It is almost impossible to isolate the value of

milk used for one type of product when there are competing demands for

milk for use in other products. Any method that is selected will only

provide an approximation of the value of milk received by farmers and

cooperatives and should not be viewed as a precise measure.

For farm-level prices, we used data from USDA’s Agricultural Marketing

Service’s (AMS) mailbox price series. The mailbox price is representative of

the average price received by dairy farmers who sell milk to cooperatives,

bottlers, and processors that are regulated under federal milk marketing

orders.2

 The mailbox price is the weighted average of the prices received

by all dairy farmers in the market and therefore is computed as the total

net dollars received for milk divided by the total pounds of milk marketed.

This price includes returns from all milk uses, such as milk used to

manufacture cheese and butter, and not just milk used for fluid purposes;

therefore, it does not exactly reflect the amount of money received by

farmers for milk used only for fluid purposes. AMS developed the mailbox

price series in 1995, at the request of the industry, to more accurately

reflect the amount of money farmers receive for their unprocessed milk,

and it is currently the best data available on the price of milk at the farm

level. However, according to AMS officials, this price tends to understate

the prices received by farmers for the portion of their milk that is used in

fluid milk products. AMS collects data on mailbox prices for 25 of the 31

locations that we analyzed. Four locations that we included in our

analysis—Bismarck, North Dakota; Richmond, Virginia; and San Diego and

Sacramento, California—are not under a federal milk marketing order, and

AMS does not collect mailbox price data for them. As a result, for Bismarck

and Richmond, we relied on data collected by the National Agricultural

Statistics Service (NASS). NASS collects data for these locations on the price

paid to dairy farmers who marketed Grade A milk.3

 This price was

2

Federal milk marketing orders establish minimum prices for unprocessed milk. Handlers regulated

under the federal milk marketing orders process about 75 percent of the total fluid milk produced in

the United States.

3

Grade A milk is the only milk that can be used for fluid purposes. Grade A milk producers must

adhere to higher standards than those who produce grade B milk. Grade B milk can only be used for

manufacturing purposes, such as to make butter and cheese.

Page 19 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix I 

Objectives, Scope, and Methodology

adjusted by an amount that represents the national average for typical

deductions from dairy farmers’, checks such as hauling costs, cooperative

dues, and national dairy board assessments.4

 For San Diego and

Sacramento, we used data collected by the California state government.

For two other markets—Kansas City, Missouri, and Phoenix,

Arizona—although AMS collects mailbox prices, it could not share this

information with us because of concerns about data confidentiality.

Consequently, for these markets, we used the federal milk marketing order

blend price for the Greater Kansas City and the Central Arizona federal

milk marketing orders, respectively, adjusted by an amount that

represents the national average for typical deductions from dairy farmers’

checks—such as hauling costs, cooperative dues, and national dairy board

assessments—to represent mailbox prices.

For cooperative-level prices, we used AMS’ announced cooperative prices

to represent prices paid by bottlers to cooperatives. Bottlers in federally

regulated markets generally purchase milk from cooperatives and pay the

federal minimum price for fluid milk plus premiums established by the

cooperatives. The announced cooperative price is the Class I milk price

announced by the major cooperative in each of the markets.5

 The

announced cooperative price does not apply to all Class I sales in these

markets and is not necessarily the price actually received for all of the

fluid milk sold by the major cooperative. The announced cooperative

prices have not been verified as actually having been paid by handlers. For

Bismarck, North Dakota; Richmond, Virginia; and San Diego and

Sacramento, California; which are state-regulated markets, we used the

minimum fluid prices established by the states. Data on premiums paid in

excess of these minimums were not available for these markets. For

Augusta, Maine, we used the Maine Dealer Cost; for Vermont, New

Hampshire, Las Vegas, Nevada, Orlando, Florida, and New York City, New

York, we used AMS’ estimated cooperative prices.

For wholesale-level prices, we used the prices paid by the Department of

Defense’s Commissary Agency under competitive contracts to

wholesalers. We used commissary prices as a surrogate for privately

established wholesale prices because (1) defense commissaries sell

groceries at cost to active and retired military personnel and (2) wholesale

4

National dairy board assessments are amounts paid by producers to promote and conduct research on

dairy products.

5

Under the federal milk marketing orders, a classified pricing plan provides different classes and

minimum prices for milk depending on how the milk is used. Milk used in fluid products is placed in

Class I, which is the highest-priced class. Milk used for various manufactured products is placed in

lower-priced classes.

Page 20 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix I 

Objectives, Scope, and Methodology

price data are considered proprietary by industry officials and were not

available to us. According to Defense Commissary officials, the

commissary network of stores ranks seventh in the United States in terms

of sales volume for supermarket chains. For each of our 31 markets, we

selected a nearby commissary, and the Defense Commissary Agency

provided us with the monthly wholesale prices paid by the selected

commissaries for gallons of whole, 2-percent, 1-percent, and fat-free milk.

We recognize that these locations may not provide an ideal match with the

other price data analyzed for a given location; however, these were the

best wholesale data that we could obtain. In those locations where

commissaries sold more than one brand of milk, we obtained the

prevailing price for the brand that had the highest sales volume for the

period we reviewed. Figure I.1 shows the locations of the 31 selected

markets and corresponding commissaries.

Page 21 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix I 

Objectives, Scope, and Methodology

Figure I.1: Selected Fluid Milk Markets and the Corresponding Defense Commissaries Used for Our Analysis of Milk Prices

Portsmouth Naval 

Shipyard

Newport Naval Education 

and Training Center

New London Naval 

Submarine Base

United States Military 

Academy, West Point

Bolling Air Force Base

Hanscom Air Force

 Base

Department of Defense Commissaries 

Fluid Milk Markets

Brunswick Naval Air Station

Carlisle Barracks

Fort Lee

Camp Lejeune Marine 

Corps Base

Philadelphia

Raleigh

Nellis Air Force Base

San Diego Naval Station 

Luke Air Force 

Base

Athens Naval Supply 

Corps School

Orlando Naval 

Training Center

Key West Naval Air Station

New Orleans Naval 

Air Station 

Kelly Air Force 

Base

San Diego

Las 

Vegas

Atlanta

Orlando

Miami

New Orleans

Houston

Dallas

Fort Leavenworth

Everett 

Naval 

Station

Stockton Naval 

Communications 

Station 

Minot Air Force Base 

Fitzsimons U.S. Army Garrison 

Fort McCoy

Great Lakes Naval Training Center

Fort Knox

WrightPatterson Air 

Force Base 

Sacramento

Seattle

Denver

Bismarck

Chicago Salt 

Lake 

City 

Hill Air Force Base

Kansas City

Vermont

Rhode Island

Boston

Connecticut

New York City

Washington, 

D.C.

Richmond

Phoenix

Cincinnati

Milwaukee Minneapolis

Augusta

New Hampshire

Louisville

For retail-level prices, we contracted with A.C. Nielsen, a private data

collection and analysis company, to obtain average monthly retail prices

for gallons of whole, 2-percent, 1-percent, and fat-free milk for

supermarkets with yearly sales exceeding $2 million in 25 of the 31

Page 22 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix I 

Objectives, Scope, and Methodology

markets included in our analysis. We were able to use these data for 27 of

the 31 markets we analyzed because data for A.C. Nielsen’s Boston market

also includes data for the Rhode Island and New Hampshire markets. For

the other four markets—Augusta, Maine; Bismarck, North Dakota; Las

Vegas, Nevada; and Vermont—where privately collected data were not

available, we used the retail price data obtained by the milk control

agencies for these states.

To determine the (1) portion of the retail price that is received by farmers,

cooperatives, wholesalers, and retailers; (2) changes in retail and farm

prices and their effect on the farm-to-retail price spread; and (3) the way in

which changes in prices at any given level in the milk marketing chain are

reflected in changes in prices at the other levels, we limited our analysis to

2-percent milk, which currently represents the largest volume of

reduced-fat milk sold nationally. Our analysis of 2-percent prices may not

necessarily reflect pricing patterns and trends for the other three kinds of

milk. Appendix III includes graphs that show the relationships among the

farm, cooperative, wholesale, and retail prices for a gallon of 2-percent

milk for each of the 31 markets. Because the farm-level and

cooperative-level prices reflect a higher butterfat content than is present in

2-percent milk, we adjusted these prices to reflect the value of removing

butterfat and replacing it with skim milk.6

 This adjustment allowed us to

use farm- and cooperative-level prices that were comparable to the

wholesale- and retail-level prices for our analysis.

To determine how much farm and retail prices had changed and the effect

of these changes on the farm-to-retail price spread from January 1996

through February 1998 for each of the 31 markets, we used a statistical

procedure to estimate mailbox and retail prices at the beginning and end

of the period.7

We used estimated rather than actual prices to reduce the influence of the

starting and ending dates selected for our analysis in markets in which

6

For Sacramento and San Diego, California, we used prices that were adjusted for 2-percent butterfat

and 10-percent nonfat milk solids so that they were comparable with retail milk sold in that state.

7

A regression procedure was used for each market to determine whether the price could be reliably

predicted as a function of time for both mailbox and retail prices. This procedure allowed us to

estimate initial and final prices for mailbox and retail prices that take into account the variability in

these price series during the 26-month period. A statistically significant relationship indicates that a

stable trend, either up or down, was found between price and time. For statistically significant

relationships, a final price estimate (computed for the last month of our data series) was calculated

and compared to an estimated price calculated for the first month. In the absence of a statistically

significant relationship—when no trend differing from zero was found— initial and final estimates of

price are the same, even if actual beginning and final prices differ.

Page 23 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix I 

Objectives, Scope, and Methodology

there is considerable month-to-month variability in milk prices. The

differences between the estimated initial and final prices represent the

trend changes during the period. In some cases, this difference may be

zero because there is no apparent trend. We calculated the change in the

farm-to-retail price spread as the estimated retail price difference minus

the estimated mailbox price difference.

To describe how changes in prices at any given level in the milk marketing

chain were reflected in changes in prices at the other levels in each of the

31 markets included in our analysis, we tested for correlations between

price changes at the various levels. Specifically, we calculated coefficients

describing the degree of correlation between changes in mailbox prices

and changes in prices at the cooperative, wholesale, and retail levels;

changes in cooperative-level prices and changes in prices at the wholesale

and retail levels; and changes in prices at the wholesale and retail levels. In

appendix III, we report those correlation coefficients that are statistically

different from zero at the 95-percent confidence level. Although we only

report correlations between price changes that occur in the same month,

we also calculated correlations under the assumption of lagged effects

(such as the correlation between changes in wholesale prices in the

current month and changes in cooperative-level prices in the previous

month). In general, we found fewer markets with statistically significant

correlations when we took lagged effects into account, although when

effects were assumed to be lagged, the correlations were greater in some

markets.

To provide information on the relationships among retail prices for all four

kinds of milk, we analyzed the retail price data that we obtained from A.C.

Nielsen and the state milk control agencies. These data are arrayed in

appendix IV for each of the selected 31 markets for January 1996 through

February 1998.

When we met with USDA officials to obtain their comments on a draft of

this report, officials from the Economic Research Service (ERS) suggested

an alternative method by which we could better estimate the farm-level

price of a gallon of unprocessed milk used for fluid purposes compared to

the mailbox price. They believe that the farm value of fluid milk is better

defined as the minimum order Class I price minus the difference between

the minimum order blend price and the mailbox price. However, this

methodology to calculate an alternative farm price assumes that all classes

of milk are equally profitable to the cooperative at the prevailing prices.

We used the ERS method to calculate farm-level prices for the 24 markets

Page 24 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix I 

Objectives, Scope, and Methodology

in our sample of 31 markets that are under the federal milk marketing

order program. Appendix VI provides our analysis using this alternative

farm-level price for fluid milk for these 24 markets.

Page 25 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix II 

Factors That Influence the Price of Fluid

Milk as It Moves From the Farm to the

Consumer

About 6 billion gallons of the approximately 18 billion gallons of milk

produced by U.S. dairy farmers each year is processed into fluid milk that

has a retail value of about $19 billion.1

 Dairy farmers receive a price for

unprocessed milk, and each entity that is involved in the processing and

marketing of fluid milk adds value to the product and receives a portion of

the difference between the farm and retail price. (This difference is known

as the price spread.) This appendix describes how unprocessed milk

prices are determined at the farm level and the factors that influence the

price of milk as it moves from the farm to the retail level. This appendix

also provides information on the costs associated with marketing milk, as

estimated by researchers at Cornell University, and industry officials’

views regarding these estimates. We could not obtain specific cost data for

our analysis because wholesale and retail cost data in the private sector

are proprietary.

Federal and State

Policies Influence

Milk Prices at the

Farm

Prices at the farm level for unprocessed milk sold for use in fluid milk

products are determined by supply and demand forces that are influenced

by federal and state dairy programs. These programs ensure that dairy

farmers receive at least a specified minimum price for their unprocessed

milk. The primary federal programs include the milk marketing order and

dairy price support programs. The federal and state programs were

established to provide a safety net for individual farmers who lack market

power compared with other entities, such as wholesalers and retailers.

About 75 percent of the milk produced in the United States is regulated

under the federal milk marketing order program, which was established in

1937. Some areas, such as California, are not under the federal program

and are covered by state programs. In these areas, dairy farmers are paid

minimum milk prices that are established by the state government. The

milk marketing order program sets minimum prices for unprocessed milk;

these minimum prices are based on the way the milk is to be used.

Minimum prices paid to farmers for unprocessed fluid grade milk are

based on the prices paid to the farmers who produce manufacturing-grade

milk in Minnesota and Wisconsin. Manufacturing-grade milk can only be

used for making products such as butter and cheese. This milk is not

regulated and therefore its market price is based on supply and demand

conditions. For milk used for fluid products, a differential is added to the

minimum price for milk used for manufacturing purposes. This differential

varies throughout the United States and generally increases as the distance

increases from Eau Claire, Wisconsin. The extent to which these

1

Fluid milk products include flavored milks, buttermilk, whole, 2-percent, 1-percent, and fat-free milk.

Page 26 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix II 

Factors That Influence the Price of Fluid

Milk as It Moves From the Farm to the

Consumer

differentials will affect the average price of milk the farmer receives

depends on the extent to which the total supply of milk in a specific

market area is used for fluid or manufacturing purposes. Buyers of milk

regulated by federal and state orders are permitted to pay farmers prices

in excess of the established minimums. Any such excess payments are

determined by market forces.

In addition to the federal and state milk marketing order programs, the

federal dairy price support program, created in 1949, supports farm-level

prices by providing a standing offer to purchase butter, cheese, and nonfat

dry milk at specified prices. The prices offered for these dairy products are

intended to provide sufficient revenue so that dairy product manufacturers

can pay farmers the legislatively mandated support price. This program

has the effect of providing a floor for the price of milk used for

manufacturing purposes. As a result, it influences the price that farmers

receive for milk used for fluid purposes under the milk marketing order

program because the support price sets a floor below which

manufacturing grade milk prices are unlikely to fall for very long. The

price support program offers a safety net to all dairy farmers, including

those not participating in federal or state milk marketing orders.

Services Provided by

Dairy Cooperatives

Affect the Price of

Milk

The price that cooperatives charge wholesalers for fluid milk is influenced

by the minimum price established by federal and state milk marketing

order programs, the services that the cooperatives provide, and the

relative market power of cooperatives and processors.

About 86 percent of all milk produced by farmers is marketed through

dairy cooperatives that are owned and financed by farmer-members.2

Cooperatives can either (1) process, package, and distribute the resulting

fluid milk to retail outlets for sales to consumers or (2) sell the

unprocessed milk to wholesalers who process, package, and distribute

fluid milk for sale to retail outlets.3

 Cooperatives operate like corporate

businesses to perform services for their members. Some distinctive

features of cooperatives include member-user ownership and control,

services at cost to their members, and distribution of income to their

members on the basis of their patronage.

2

Milk not marketed through cooperatives is sold directly to processors or, in some instances, is

processed into dairy products by farmers themselves. Cooperatives process and market about

16 percent of all fluid milk produced.

3

See our Mar. 1998 report entitled Dairy Industry: Information on Marketing Channels and Prices for

Fluid Milk (GAO/RCED-98-70, Mar. 16, 1998) for more information on the role of cooperatives and

other entities in the marketing of fluid milk.

Page 27 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix II 

Factors That Influence the Price of Fluid

Milk as It Moves From the Farm to the

Consumer

Cooperatives generally sell unprocessed milk to wholesalers at prices that

are higher than the federal or state minimums for fluid milk. In federally or

state-regulated markets, any differences between the prices charged to the

wholesalers and the milk marketing order minimums are known as

over-order premiums. These premiums are primarily determined by the

marketplace rather than the federal milk marketing order program.

Over-order premiums compensate cooperatives for the services they

provide, such as transporting milk from different milk-producing areas,

and also reflect the market power acquired by cooperatives relative to

processors.

Wholesalers’

Processing,

Packaging, and

Distributing Costs

Affect the Price of

Fluid Milk

The price that wholesalers charge retailers for fluid milk is influenced by

the costs they incur for processing, packaging, and distributing fluid milk

to retail outlets and by the wholesalers’ interest in earning a return on

investment. Wholesalers include bottlers and major retail food chains with

bottling plants.4

 Processing services provided by wholesalers include

pasteurization, homogenization, and the standardization of butterfat and

nonfat solids in flavored milks, buttermilk, whole, 2-percent, 1-percent,

and fat-free milk. Wholesalers package these products into a variety of

types and sizes of containers and arrange for their distribution to retail

outlets for sale to consumers. In addition to shipping the products to

retailers, some wholesalers provide different levels of in-store service,

according to industry officials. For example, some wholesalers provide a

full range of services to retailers—unloading the milk at the store dock,

restocking the dairy case, and removing outdated and/or leaking

containers. In contrast, other wholesalers may not provide any services to

retailers beyond their shipping docks. Differences in wholesale-level

prices reflect differences in any or all of these factors.

Furthermore, according to dairy industry officials we spoke to, in some

highly regulated markets, state regulations may increase both wholesale

and retail prices. For example, an official from one of the nation’s largest

grocery wholesalers told us that in North Dakota the distribution of milk is

restricted to wholesalers approved by the state. Consequently, milk can

only be delivered to retail stores on trucks owned by an approved

wholesaler. This requirement prohibits retailers and nonapproved

wholesalers from using their own trucks to deliver milk to retail stores,

which in some cases may be a less costly and more economical delivery

method.

4

Wholesalers also include cooperatives that process, package, and distribute fluid milk for sale to

retailers.

Page 28 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix II 

Factors That Influence the Price of Fluid

Milk as It Moves From the Farm to the

Consumer

Typically, wholesale cost and pricing data in the private sector are not

available to the public because such data are considered proprietary. In

addition, any sharing of cost or pricing data with competitors or others

could be considered a violation of state and/or federal antitrust laws. In

the absence of specific cost data, we obtained cost estimates from

researchers at Cornell University that are based on information obtained

from a survey of wholesalers. The researchers surveyed 35 well-managed

plants, operated by 23 companies.5

 The 35 sampled plants included 22

proprietary plants, 5 cooperative plants, and 8 supermarket-owned plants.

The plants processed an average of 28 million pounds of milk per month,

ranging from slightly more than 13 million pounds to more than 51 million

pounds. Distribution cost estimates were based on large accounts served

by the plants, including supermarkets, large convenience stores, and club

stores.

On the basis of the survey data they received from the wholesalers, the

Cornell researchers estimated the cost of marketing fluid milk products.

For example, the researchers estimated that in 1995, it cost about $2.12 to

market a gallon of 2-percent milk, through a large supermarket in the New

York metropolitan area. (This amount also included an estimated 19 cents

per gallon for handling costs incurred by the retailer and the retailer’s

return on investment.) Figure II.1 shows the various costs associated with

marketing a gallon of 2-percent milk through supermarkets in the New

York metropolitan area in 1995.

5

Erba, E.M. , R.D. Aplin, and M.W. Stephenson, An Analysis of Processing and Distribution Productivity

and Costs in 35 Fluid Milk Plants. R.B. 97-03, Department of Agricultural, Resource, and Management

Economics. (Ithaca, NY: Cornell University, 1997).

Page 29 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix II 

Factors That Influence the Price of Fluid

Milk as It Moves From the Farm to the

Consumer

Figure II.1: Estimated Costs of

Marketing a Gallon of 2-Percent Milk in

the New York Metropolitan Area, 1995 Raw product

Plant costs Retailing costs

Packaging

Distribution 

Administrative

Return on investment

Selling 

$1.31

$0.24 $0.19

$0.10

$0.10

$0.07

$0.06

$0.05

According to officials of dairy cooperatives, wholesalers, and retailers of

fluid milk, the estimates developed by the researchers at Cornell

University were generally representative of the cost of performing fluid

milk processing and marketing functions. However, they told us that the

costs for distributing milk in other markets could be significantly higher

than the 10 cents per gallon estimated in the study for the New York

metropolitan area. In particular, distribution costs in rural markets could

range as high as 25 to 40 cents a gallon. According to one industry official,

delivery costs to rural markets are higher than some urban markets

because wholesalers have to deliver smaller quantities of fluid milk

products to more isolated, rural stores. These additional costs are often

reflected in higher wholesale and retail prices for fluid milk in these areas.

Retail Milk Prices

Depend on the Pricing

Strategies Used by

Retailers

Prices that consumers pay retailers for fluid milk are influenced not only

by supply and demand considerations that determine the overall

retail-level market price for fluid milk but also by specific considerations

that affect prices at individual retail outlets. With respect to determining

the overall price charged at the retail level, the quantity of fluid milk

supplied by retailers is influenced by the prices that retailers have to pay

Page 30 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix II 

Factors That Influence the Price of Fluid

Milk as It Moves From the Farm to the

Consumer

wholesalers to acquire the product, retailers’ operating costs, such as

labor, rent, and utilities, and their required return on investment. On the

other hand, the amount of fluid milk that consumers want to purchase at

the retail level is influenced not only by the price of fluid milk, but also by

such factors as the size, age, and income levels of the population in the

marketing area, and the prices of substitutes. Studies performed by

economists and others over the years have shown that the demand for

milk at the retail level is relatively insensitive to changes in the price for

fluid milk because of the lack of close substitutes. Generally, these studies

have concluded that a 10-percent increase or decrease in the price of fluid

milk will result in less than a 10-percent decrease or increase in the

quantity that consumers will purchase.6

 However, several industry officials

told us that they believe that the demand for milk in recent years has

become more sensitive to price changes than previously thought.

For individual retail outlets, additional considerations may influence the

manner in which retail prices for milk are set. To meet their stores’ goals,

such as profit maximization and increased market share, retailers may use

a number of strategies for pricing fluid milk. In developing these pricing

strategies, retailers consider their retailing costs, the prices charged by

their competitors, the role that milk prices play in attracting customers to

their stores, the convenience offered by their store compared with other

stores, and their desire to build an image of quality or low prices for their

stores. Those retail pricing strategies that are primarily based on a

retailer’s operating costs are generally referred to as vertical pricing

strategies, whereas those strategies that are based on responding to prices

charged by competitors are referred to as horizontal pricing strategies.

Retailers may use a combination of horizontal and vertical pricing

strategies when setting prices for fluid milk.

A vertical pricing strategy is a method by which retailers price fluid milk

products to cover the costs associated with operating their stores. The

retail price is set in a manner that allows them to recoup (1) the price paid

to fluid milk wholesalers; (2) operating costs such as rent, labor, interest

expense, and general overhead; and (3) a return on investment. Some

retailers use a variable markup strategy that allows them to charge

different markups on various products sold in their stores while seeking

an overall profit margin target for the store. For example, a retailer who

wishes to promote a low-cost image for the store may sell gallons of

2-percent milk at or near cost while raising the price of other items in the

6

Some of these studies have estimated price elasticities of demand for fluid milk as small as –0.15,

which would imply only a 1.5-percent increase in the quantity that consumers purchase as a result of a

10-percent decrease in price.

Page 31 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix II 

Factors That Influence the Price of Fluid

Milk as It Moves From the Farm to the

Consumer

store. On the other hand, retailers wishing to increase the profitability of

the dairy section might maintain relatively high prices for fluid milk but set

lower prices for other items in the store. According to state and dairy

industry officials, the latter situation has existed during the last couple of

years in the Minneapolis market. Retailers’ pricing strategy choices will

depend on their views about the importance of milk prices versus the

prices of other products sold in their stores in influencing consumers’

overall perceptions about their stores.

A horizontal pricing strategy is a method by which retailers set fluid milk

prices in response to the prices being charged by competitors in their area.

Retailers pursuing such strategies are very sensitive to price levels at

neighboring retail outlets and will adjust their prices accordingly to create

an image of lower or more competitive prices. Also, retailers pursuing

horizontal pricing strategies may be less sensitive to market signals on the

wholesale price of milk. Instead, retailers may continue to price milk at a

certain price even though wholesalers have either increased or decreased

prices.

Furthermore, retail prices may be influenced by state regulations and

customers’ desire for convenience or high quality. For example, dairy

industry officials contend that state regulations that prohibit wholesalers

and retailers from selling milk below cost result in higher retail milk

prices. Such regulations prevent retailers from using lower-priced milk as

a means of attracting more customers to their stores. In addition,

according to industry officials, retail prices for fluid milk may be

influenced by the fact that some consumers are willing to pay a higher

price for convenience and quality. For example, convenience stores sell

only a limited number of items, which allows consumers to quickly

purchase fluid milk and spend the least amount of time necessary in the

store. As a result, these stores can charge a higher price for fluid milk than

supermarkets charge primarily because of the convenience that they

provide. Similarly, retail stores that emphasize high-quality products may

stock widely recognized brand-label fluid milk products for which their

customers are willing to pay a higher price because they associate the

brand label with better quality. Industry officials told us that some retailers

believe that a stable retail price for milk may also help create an

impression of high quality.

Page 32 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix III 

Analysis of Farm-To-Retail Prices for

2-Percent Milk in Selected Markets

This appendix summarizes our analysis of farm-to-retail prices for a gallon

of 2-percent milk in 31 selected markets nationwide for January 1996

through February 1998. Our analysis includes information on (1) the

portion of the retail price that is received by farmers, cooperatives,

wholesalers, and retailers; (2) changes to retail and farm-level prices and

their effect on the farm-to-retail price spread; and (3) the way in which

changes in prices at any given level in the milk marketing chain are

reflected in changes in prices at the other levels. We limited our analysis to

gallons of 2-percent milk because in recent years sales of reduced-fat milk

products have increased and account for about 63 percent of all retail

sales of fluid milk. Of this amount, sales of 2-percent milk account for

about 55 percent of the total sales of reduced-fat milk. The farm and

cooperative prices included in our analysis and presented in this appendix

are adjusted for 2-percent butterfat. Our analysis of 2-percent milk prices

may not reflect pricing patterns and trends for the other three kinds of

milk. Complete data on prices for all four kinds of milk—whole, 1-percent,

fat-free as well as 2-percent—are presented in appendix V.

Portion Received by

Farmers,

Cooperatives,

Wholesalers, and

Retailers

From January 1996 through February 1998, for the 31 fluid milk markets

that we reviewed, farmers, on average, received 42 percent of the retail

price for a gallon of 2-percent milk, cooperatives received 10 percent,

wholesalers received 31 percent, and retailers received 17 percent.

However, the portion received at any one level in the marketing chain

varied substantially among markets. For example, the portion of the

average retail price that farmers received ranged from about 31 to

54 percent and the portion that retailers received ranged from about 4 to

31 percent in the markets we reviewed, with one exception.

In commenting on a draft of this report, USDA officials stated that because

the farm-level and cooperative-level prices used in our analysis are not a

measure of the prices that farmers and cooperatives actually receive for

milk used for fluid products, our results understate the amount received

by farmers and overstate the cooperatives’ share of the retail price,

especially in some markets. Moreover, a portion of the amount received by

the cooperatives may be used by the cooperative to pay for some costs,

such as hauling, in some markets.

Table III.1 provides these data for each of the selected markets.

Page 33 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix III 

Analysis of Farm-To-Retail Prices for

2-Percent Milk in Selected Markets

Table III.1: Portion of the Retail Price of

a Gallon of 2-Percent Milk Received by

Farmers, Cooperatives, Wholesalers,

and Retailers for 31 Markets,

January 1996 Through February 1998

Selected

market area

Percent

received by

farmers

Percent

received by

cooperatives

Percent

received by

wholesalers

Percent

received by

retailers

North Atlantic Region

Augusta, Me. 45 12 22 20

Boston, Mass. 44 14 22 19

New Hampshire 44 13 31 11

New Haven,

Conn. 42 13 19 26

New York, N.Y. 39 11 30 20

Philadelphia, Pa. 42 11 27 20

Rhode Island 44 14 22 19

Vermont 40 11 22 27

Washington, D.C. 42 11 16 30

Southeastern Region

Atlanta, Ga. 43 9 35 13

Louisville, Ky. 48 7 33 11

Miami, Fla. 43 8 33 16

New Orleans, La. 42 9 40 9

Orlando, Fla. 44 6 32 18

Raleigh, N.C. 45 7 43 4

Richmond, Va. 40 13 24 22

East-North Central Region

Chicago, Ill. 46 9 27 18

Cincinnati, Oh. 53 11 32 4

Milwaukee, Wis. 48 9 28 15

West-North Central Region

Bismarck, N.D. 31 7 39 22

Kansas City, Mo. 40 7 29 24

Minneapolis,

Minn. 35 6 31 28

West-South Central Region

Dallas, Tex. 44 11 40 5

Houston, Tex. 47 13 41 –1a

Mountain Pacific Region

Denver, Colo. 38 9 22 31

Las Vegas, Nev. 33 6 33 27

Phoenix, Ariz. 54 10 32 5

Seattle, Wash. 48 9 22 21

Sacramento, Calif. 42 9 29 20

(continued)

Page 34 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix III 

Analysis of Farm-To-Retail Prices for

2-Percent Milk in Selected Markets

Selected

market area

Percent

received by

farmers

Percent

received by

cooperatives

Percent

received by

wholesalers

Percent

received by

retailers

Salt Lake City,

Utah 44 10 43 4

San Diego, Calif. 36 8 36 19

Average for the

31 markets 42 10 31 17

aOur analysis shows that retailers in the Houston market received –1 percent of the retail price of

a gallon of 2-percent milk for the 26-month period. According to industry officials, this condition is

not unusual in markets like Houston, which are dominated by vertically integrated processors and

retailers and in which these companies can use milk as a loss leader.

Changes in Farm and

Retail Prices and the

Price Spread

From January 1996 through February 1998, retail fluid milk prices

remained constant or increased in 27 markets and decreased in 4 markets.

In contrast, farm prices decreased in 27 markets and remained constant in

4 markets. As a result of these price changes, the farm-to-retail price

spread increased in 27 of the 31 markets over the 26-month period. Table

III.2 provides these data for each of the selected markets.1

Table III.2: Increases or Decreases in

the Farm-To-Retail Price Spread for a

Gallon of 2-Percent Milk for 31

Markets, January 1996 Through

February 1998

Selected

market area

Increases or

decreases in

farm-level prices

Increases or

decreases in

retail prices

Increases or

decreases in the

farm-to-retail

price spread

North Atlantic Region

Augusta, Me. $(.09) $.35 $.44

Boston, Mass. (.09) .30 .39

New Hampshire (.09) .30 .39

New Haven, Conn. (.09) .28 .37

New York, N.Y. (.14) .09 .23

Philadelphia, Pa. (.13) a .13

Rhode Island (.09) .30 .39

Vermont (.09) .19 .28

Washington, D.C. (.13) (.08) .05

Southeastern Region

(continued)

1

The values used to calculate increases or decreases in retail and farm-level prices in table III.2 are

based on statistical estimates of initial and final prices for these two levels, not the actual observed

prices recorded in the first and last month of the period for which we have data. The method for

calculating these estimates is described in app. I. The changes in the farm-to-retail price spreads are

the differences between the changes in retail- and farm-level prices from January 1996 to

February 1998 and consequently are determined from the statistically estimated initial and final prices

for the retail and farm levels.

Page 35 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix III 

Analysis of Farm-To-Retail Prices for

2-Percent Milk in Selected Markets

Selected

market area

Increases or

decreases in

farm-level prices

Increases or

decreases in

retail prices

Increases or

decreases in the

farm-to-retail

price spread

Atlanta, Ga. (.16) .25 .41

Louisville, Ky. (.15) a .15

Miami, Fla. a a a

New Orleans, La. (.16) .31 .47

Orlando, Fla. a .14 .14

Raleigh, N.C. (.16) a .16

Richmond, Va. (.14) .20 .34

East-North Central Region

Chicago, Ill. (.15) .22 .37

Cincinnati, Ohio (.15) (1.23) (1.08)

Milwaukee, Wis. (.15) a .15

West-North Central Region

Bismarck, N.D. (.14) a .14

Kansas City, Mo. (.16) a .16

Minneapolis, Minn. (.15) (.09) .06

West-South Central Region

Dallas, Tex. (.12) .20 .32

Houston, Tex. (.12) a .12

Mountain Pacific Region

Denver, Colo. (.18) .29 .47

Las Vegas, Nev. (.19) a .19

Phoenix, Ariz. (.17) a .17

Seattle, Wash. (.12) a .12

Sacramento, Calif. a a a

Salt Lake City, Utah (.19) a .19

San Diego, Calif. a (.33) (.33)

aIndicates that no statistically significant change was observed in the price over the 26-month

period and therefore represents a constant price for that market.

Correlation Between

Price Changes at the

Four Marketing Levels

The strongest correlation between changes in prices occurs between any

level and its adjacent level in the marketing chain. For example, in most of

the markets we analyzed, there was a strong correlation between changes

in farm prices and changes in cooperative prices. Similarly, changes in

wholesale prices were generally reflected in changes in retail prices. In

contrast, changes in the prices received by farmers less frequently

Page 36 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix III 

Analysis of Farm-To-Retail Prices for

2-Percent Milk in Selected Markets

correlated with changes in retail prices than they were with changes in

cooperative or wholesale prices. This is because, as discussed in appendix

II, many factors other than farm or wholesale prices influence the price of

fluid milk at the retail level. Tables III.3 through III.5 present data on our

correlation analysis for price changes at the four marketing levels. The

values of the correlation coefficients presented represent estimates of the

degree to which price changes at one level in the milk marketing chain are

associated with price changes at other levels.

Table III.3: Correlation Between

Farm-Level-Price Changes and

Changes in Cooperative, Wholesale,

and Retail Prices for a Gallon of

2-Percent Milk for 31 Markets,

January 1996 Through February 1998

Selected market area

Correlation

coefficients for

cooperative prices

Correlation

coefficients for

wholesale prices

Correlation

coefficients for

retail prices

North Atlantic Region

Augusta, Me. .91* .75* .11

Boston, Mass. .86* .55* .08

New Hampshire .85* .53 .08

New Haven, Conn. .86* .74* –0.06

New York, N.Y. .82* .16 .38

Philadelphia, Pa. .87* .44* .63*

Rhode Island .86* .61* .08

Vermont .86* .55* .23

Washington, D.C. .87* .85* .50*

Southeastern Region

Atlanta, Ga. .95* .26 .16

Louisville, Ky. .87* .35 .19

Miami, Fla. .94* .42* .45*

New Orleans, La. .88* .09 .26

Orlando, Fla. .94* .62* .35

Raleigh, N.C. .94* .25 .21

Richmond, Va. .87* .52* .11

East-North Central Region

Chicago, Ill. .05 –0.19 .01

Cincinnati, Ohio .98* .38 –0.08

Milwaukee, Wis. .05 –0.19 .08

West-North Central Region

Bismarck, N.D. .49* –0.10 –0.06

Kansas City, Mo. .91* –0.10 .56*

Minneapolis, Minn. .17 –0.09 .05

West-South Central Region

Dallas, Tex. .76* .16 .17

(continued)

Page 37 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix III 

Analysis of Farm-To-Retail Prices for

2-Percent Milk in Selected Markets

Selected market area

Correlation

coefficients for

cooperative prices

Correlation

coefficients for

wholesale prices

Correlation

coefficients for

retail prices

Houston, Tex. .74* .16 .03

Mountain Pacific Region

Denver, Colo. .69* .35 –0.01

Las Vegas, Nev. .47* –0.37 .21

Phoenix, Ariz. .78* .37 –0.05

Seattle, Wash. .66* .68* .14

Sacramento, Calif. .48* 0.0 .45*

Salt Lake City, Utah .50* –0.37 –0.12

San Diego, Calif. .48* .51* .40*

Note: In calculating the correlation coefficients for each market, we omitted the months for which

data were missing.

*Indicates that the correlation coefficient is statistically significant (i.e. p < .05). However, we have

not included the p-values in the table.

Table III.4: Correlation Between

Cooperative-Level-Price Changes and

Changes in Wholesale and Retail

Prices for a Gallon of 2-Percent Milk

for 31 Markets, January 1996 Through

February 1998

Selected market area

Correlation coefficients

for wholesale prices

Correlation coefficients

for retail prices

North Atlantic Region

Augusta, Me. .85* .23

Boston, Mass. .70* .33

New Hampshire .83* .31

New Haven, Conn. .83* .19

New York, N.Y. .37 .67*

Philadelphia, Pa. .46* .75*

Rhode Island .81* .33

Vermont .71* .32

Washington, D.C. .89* .54*

Southeastern Region

Atlanta, Ga. .31 .11

Louisville, Ky. .35 .23

Miami, Fla. .37 .49*

New Orleans, La. .26 .44*

Orlando, Fla. .67* .40*

Raleigh, N.C. .37 .31

Richmond, Va. .64* .10

East-North Central Region

Chicago, Ill. .28 .11

(continued)

Page 38 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix III 

Analysis of Farm-To-Retail Prices for

2-Percent Milk in Selected Markets

Selected market area

Correlation coefficients

for wholesale prices

Correlation coefficients

for retail prices

Cincinnati, Ohio .40 –0.16

Milwaukee, Wis. .31 .27

West-North Central Region

Bismarck, N.D. .44 .63*

Kansas City, Mo. –0.01 .51*

Minneapolis, Minn. .61* .59*

West-South Central Region

Dallas, Tex. .31 .38

Houston, Tex. .34 .42*

Mountain Pacific Region

Denver, Colo. .75* .09

Las Vegas, Nev. –0.01 .17

Phoenix, Ariz. .52* .12

Seattle, Wash. .85* .28

Sacramento, Calif. .41 .80*

Salt Lake City, Utah –0.15 .38

San Diego, Calif. .81* .62*

Note: In calculating the correlation coefficients for each market, we omitted the months for which

data were missing.

*Indicates that the correlation coefficient is statistically significant (i.e. p < .05). However, we have

not included the p-values in the table.

Table III.5: Correlation Between

Wholesale-Level-Price Changes and

Changes in Retail Prices for a Gallon

of 2-Percent Milk for 31 Markets,

January 1996 Through February 1998

Selected market area Correlation coefficients for retail prices

North Atlantic Region

Augusta, Me. .28

Boston, Mass. .28

New Hampshire .90*

New Haven, Conn. .21

New York, N.Y. .26

Philadelphia, Pa. .47*

Rhode Island .46*

Vermont .51*

Washington, D.C. .53*

Southeastern Region

Atlanta, Ga. –0.23

Louisville, Ky. .43

(continued)

Page 39 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix III 

Analysis of Farm-To-Retail Prices for

2-Percent Milk in Selected Markets

Selected market area Correlation coefficients for retail prices

Miami, Fla. –0.15

New Orleans, La. .51*

Orlando, Fla. .39

Raleigh, N.C. .44*

Richmond, Va. .46*

East-North Central Region

Chicago, Ill. –0.08

Cincinnati, Ohio .16

Milwaukee, Wis. .62*

West-North Central Region

Bismarck, N.D. .68*

Kansas City, Mo. .39

Minneapolis, Minn. .46*

West-South Central Region

Dallas, Tex. .43*

Houston, Tex. .58*

Mountain Pacific Region

Denver, Colo. –0.02

Las Vegas, Nev. –0.69

Phoenix, Ariz. .44

Seattle, Wash. .08

Sacramento, Calif. .47

Salt Lake City, Utah –0.41

San Diego, Calif. .61*

Note: In calculating the correlation coefficients for each market, we omitted the months for which

data were missing.

*Indicates that the correlation coefficient is statistically significant (i.e. p < .05). However, we have

not included the p-values in the table.

Comparison of Prices

at the Four Marketing

Levels

Figures III.1 through III.31 present data for January 1996 through

February 1998 on farm, cooperative, wholesale, and retail prices for

gallons of 2-percent milk in each of the 31 markets for which we obtained

data. Gaps in any of the lines shown in the following graphs are the result

of unavailable data.

Page 40 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix III 

Analysis of Farm-To-Retail Prices for

2-Percent Milk in Selected Markets

Figure III.1: Farm, Cooperative, Wholesale, and Retail Prices for a Gallon of 2-Percent Fluid Milk for the Atlanta, Ga., Market

Dollars per gallon

0

0.50

1.00

1.50

2.00

2.50

3.00

3.50

Jan.

1996

Mar.

1996

June

1996

Sept.

1996

Dec.

1996

Mar.

1997

June

1997

Sept.

1997

Dec.

1997

Feb.

1998

Month/Year

Farm price

Cooperative price

Wholesale price

Retail price

Note: For the Atlanta, Ga., market, the farm price is the Southeast mailbox price; the cooperative

price is the announced cooperative price for Atlanta; the wholesale price is the price charged by

the commissary at the Athens Naval Supply Corps School; and the retail price is the A.C. Nielsen

price for the Atlanta market.

Page 41 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix III 

Analysis of Farm-To-Retail Prices for

2-Percent Milk in Selected Markets

Figure III.2: Farm, Cooperative, Wholesale, and Retail Prices for a Gallon of 2-Percent Fluid Milk for the Augusta, Me.,

Market

Dollars per gallon

0

0.50

1.00

1.50

2.00

2.50

3.00

3.50

Jan.

1996

Mar.

1996

June

1996

Sept.

1996

Dec.

1996

Mar.

1997

June

1997

Sept.

1997

Dec.

1997

Feb.

1998

Month/Year

Farm price

Cooperative price

Wholesale price

Retail price

Note: For the Augusta, Me., market, the farm price is the New England mailbox price; the

cooperative price is the Maine dealer cost; the wholesale price is the price charged by the

commissary at the Brunswick Naval Air Station; and the retail price is the price reported by the

state milk control agency for the Augusta market.

Page 42 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix III 

Analysis of Farm-To-Retail Prices for

2-Percent Milk in Selected Markets

Figure III.3: Farm, Cooperative, Wholesale, and Retail Prices for a Gallon of 2-Percent Fluid Milk for the Bismarck, N.D.,

Market

Dollars per gallon

0

0.50

1.00

1.50

2.00

2.50

3.00

3.50

Jan.

1996

Mar.

1996

June

1996

Sept.

1996

Dec.

1996

Mar.

1997

June

1997

Sept.

1997

Dec.

1997

Feb.

1998

Month/Year

Farm price

Cooperative price

Wholesale price

Retail price

Note: For the Bismarck, N.D., market, the farm price is based on data collected by the National

Agricultural Statistics Service on the Grade A price paid to farmers in this area minus $.0602 per

gallon for hauling costs and other fees; the cooperative price is the North Dakota State Order

Class I price; the wholesale price is the price charged by the commissary at the Minot Air Force

Base; and the retail price is the price reported by the state milk control agency for the Bismarck

market.

Page 43 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix III 

Analysis of Farm-To-Retail Prices for

2-Percent Milk in Selected Markets

Figure III.4: Farm, Cooperative, Wholesale, and Retail Prices for a Gallon of 2-Percent Fluid Milk for the Boston, Mass.,

Market

Dollars per gallon

0

0.50

1.00

1.50

2.00

2.50

3.00

3.50

Jan.

1996

Mar.

1996

June

1996

Sept.

1996

Dec.

1996

Mar.

1997

June

1997

Sept.

1997

Dec.

1997

Feb.

1998

Month/Year

Farm price

Cooperative price

Wholesale price

Retail price

Note: For the Boston, Mass., market, the farm price is the New England mailbox price; the

cooperative price is the announced cooperative price for Boston; the wholesale price is the price

charged by the commissary at the Hanscom Air Force Base; and the retail price is the A.C.

Nielsen price for the Boston market which includes Rhode Island and parts of New Hampshire.

Page 44 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix III 

Analysis of Farm-To-Retail Prices for

2-Percent Milk in Selected Markets

Figure III.5: Farm, Cooperative, Wholesale, and Retail Prices for a Gallon of 2-Percent Fluid Milk for the Chicago, Ill., Market

Dollars per gallon

0

0.50

1.00

1.50

2.00

2.50

3.00

3.50

Jan.

1996

Mar.

1996

June

1996

Sept.

1996

Dec.

1996

Mar.

1997

June

1997

Sept.

1997

Dec.

1997

Feb.

1998

Month/Year

Farm price

Cooperative price

Wholesale price

Retail price

Note: For the Chicago, Ill., market, the farm price is the Chicago Regional mailbox price; the

cooperative price is the announced cooperative price for Chicago; the wholesale price is the

price charged by the commissary at the Great Lakes Naval Training Center; and the retail price is

the A.C. Nielsen price for the Chicago market.

Page 45 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix III 

Analysis of Farm-To-Retail Prices for

2-Percent Milk in Selected Markets

Figure III.6: Farm, Cooperative, Wholesale, and Retail Prices for a Gallon of 2-Percent Fluid Milk for the Cincinnati, Ohio,

Market

Dollars per gallon

0

0.50

1.00

1.50

2.00

2.50

3.00

3.50

Jan.

1996

Mar.

1996

June

1996

Sept.

1996

Dec.

1996

Mar.

1997

June

1997

Sept.

1997

Dec.

1997

Feb.

1998

Month/Year

Farm price

Cooperative price

Wholesale price

Retail price

Note: For the Cincinnati, Ohio, market, the farm price is the Ohio Valley mailbox price; the

cooperative price is the announced cooperative price for Cincinnati; the wholesale price is the

price charged by the commissary at the Wright Patterson Air Force Base; and the retail price is

the A.C. Nielsen price for the Cincinnati market.

Page 46 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix III 

Analysis of Farm-To-Retail Prices for

2-Percent Milk in Selected Markets

Figure III.7: Farm, Cooperative, Wholesale, and Retail Prices for a Gallon of 2-Percent Fluid Milk for the Dallas, Tex., Market

Dollars per gallon

0

0.50

1.00

1.50

2.00

2.50

3.00

3.50

Jan.

1996

Mar.

1996

June

1996

Sept.

1996

Dec.

1996

Mar.

1997

June

1997

Sept.

1997

Dec.

1997

Feb.

1998

Month/Year

Farm price

Cooperative price

Wholesale price

Retail price

Note: For the Dallas, Tex., market, the farm price is the Texas mailbox price; the cooperative price

is the announced cooperative price for Dallas; the wholesale price is the price charged by the

commissary at the Kelly Air Force Base; and the retail price is the A.C. Nielsen price for the Dallas

market.

Page 47 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix III 

Analysis of Farm-To-Retail Prices for

2-Percent Milk in Selected Markets

Figure III.8: Farm, Cooperative, Wholesale, and Retail Prices for a Gallon of 2-Percent Fluid Milk for the Denver, Colo.,

Market

Dollars per gallon

0

0.50

1.00

1.50

2.00

2.50

3.00

3.50

Jan.

1996

Mar.

1996

June

1996

Sept.

1996

Dec.

1996

Mar.

1997

June

1997

Sept.

1997

Dec.

1997

Feb.

1998

Month/Year

Farm price

Cooperative price

Wholesale price

Retail price

Note: For the Denver, Colo., market, the farm price is the Eastern Colorado mailbox price; the

cooperative price is the announced cooperative price for Denver; the wholesale price is the price

charged by the commissary at the Fitzsimons U.S. Army Garrison; and the retail price is the A.C.

Nielsen price for the Denver market.

Page 48 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix III 

Analysis of Farm-To-Retail Prices for

2-Percent Milk in Selected Markets

Figure III.9: Farm, Cooperative, Wholesale, and Retail Prices for a Gallon of 2-Percent Fluid Milk for the Houston, Tex.,

Market

Dollars per gallon

0

0.50

1.00

1.50

2.00

2.50

3.00

3.50

Jan.

1996

Mar.

1996

June

1996

Sept.

1996

Dec.

1996

Mar.

1997

June

1997

Sept.

1997

Dec.

1997

Feb.

1998

Month/Year

Farm price

Cooperative price

Wholesale price

Retail price

Note: For the Houston, Tex., market, the farm price is the Texas mailbox price; the cooperative

price is the announced cooperative price for Houston; the wholesale price is the price charged by

the commissary at the Kelly Air Force Base; and the retail price is the A.C. Nielsen price for the

Houston market.

Page 49 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix III 

Analysis of Farm-To-Retail Prices for

2-Percent Milk in Selected Markets

Figure III.10: Farm, Cooperative, Wholesale, and Retail Prices for a Gallon of 2-Percent Fluid Milk for the Kansas City, Mo.,

Market

Dollars per gallon

0

0.50

1.00

1.50

2.00

2.50

3.00

3.50

Jan.

1996

Mar.

1996

June

1996

Sept.

1996

Dec.

1996

Mar.

1997

June

1997

Sept.

1997

Dec.

1997

Feb.

1998

Month/Year

Farm price

Cooperative price

Wholesale price

Retail price

Note: For the Kansas City, Mo., market, the farm price is the Greater Kansas City Blend price

minus $.0602 per gallon for hauling costs and other fees; the cooperative price is the announced

cooperative price for Kansas City; the wholesale price is the price charged by the commissary at

Fort Leavenworth; and the retail price is the A.C. Nielsen price for the Kansas City market.

Page 50 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix III 

Analysis of Farm-To-Retail Prices for

2-Percent Milk in Selected Markets

Figure III.11: Farm, Cooperative, Wholesale, and Retail Prices for a Gallon of 2-Percent Fluid Milk for the Las Vegas, Nev.,

Market

Dollars per gallon

0

0.50

1.00

1.50

2.00

2.50

3.00

3.50

Jan.

1996

Mar.

1996

June

1996

Sept.

1996

Dec.

1996

Mar.

1997

June

1997

Sept.

1997

Dec.

1997

Feb.

1998

Month/Year

Farm price

Cooperative price

Wholesale price

Retail price

Note: For the Las Vegas, Nev., market, the farm price is the Great Basin mailbox price; the

cooperative price is the estimated cooperative price (Salt Lake City cooperative price minus

$.0258 per gallon); the wholesale price is the price charged by the commissary at the Nellis Air

Force Base; and the retail price is the price reported by the state milk control agency for the Las

Vegas market.

Page 51 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix III 

Analysis of Farm-To-Retail Prices for

2-Percent Milk in Selected Markets

Figure III.12: Farm, Cooperative, Wholesale, and Retail Prices for a Gallon of 2-Percent Fluid Milk for the Louisville, Ky.,

Market

Dollars per gallon

0

0.50

1.00

1.50

2.00

2.50

3.00

3.50

Jan.

1996

Mar.

1996

June

1996

Sept.

1996

Dec.

1996

Mar.

1997

June

1997

Sept.

1997

Dec.

1997

Feb.

1998

Month/Year

Farm price

Cooperative price

Wholesale price

Retail price

Note: For the Louisville, Ky., market, the farm price is the Louisville, Lexington, and Evansville

mailbox price; the cooperative price is the announced cooperative price for Louisville; the

wholesale price is the price charged by the commissary at Fort Knox; and the retail price is the

A.C. Nielsen price for the Louisville market.

Page 52 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix III 

Analysis of Farm-To-Retail Prices for

2-Percent Milk in Selected Markets

Figure III.13: Farm, Cooperative, Wholesale, and Retail Prices for a Gallon of 2-Percent Fluid Milk for the Miami, Fla., Market

Dollars per gallon

0

0.50

1.00

1.50

2.00

2.50

3.00

3.50

Jan.

1996

Mar.

1996

June

1996

Sept.

1996

Dec.

1996

Mar.

1997

June

1997

Sept.

1997

Dec.

1997

Feb.

1998

Month/Year

Farm price

Cooperative price

Wholesale price

Retail price

Note: For the Miami, Fla., market, the farm price is the Florida mailbox price; the cooperative price

is the announced cooperative price for Miami; the wholesale price is the price charged by the

commissary at the Key West Naval Air Station; and the retail price is the A.C. Nielsen price for the

Miami market.

Page 53 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix III 

Analysis of Farm-To-Retail Prices for

2-Percent Milk in Selected Markets

Figure III.14: Farm, Cooperative, Wholesale, and Retail Prices for a Gallon of 2-Percent Fluid Milk for the Milwaukee, Wis.,

Market

Dollars per gallon

0

0.50

1.00

1.50

2.00

2.50

3.00

3.50

Jan.

1996

Mar.

1996

June

1996

Sept.

1996

Dec.

1996

Mar.

1997

June

1997

Sept.

1997

Dec.

1997

Feb.

1998

Month/Year

Farm price

Cooperative price

Wholesale price

Retail price

Note: For the Milwaukee, Wis., market, the farm price is the Chicago Regional mailbox price; the

cooperative price is the announced cooperative price for Milwaukee; the wholesale price is the

price charged by the commissary at the Great Lakes Naval Training Center; and the retail price is

the A.C. Nielsen price for the Milwaukee market.

Page 54 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix III 

Analysis of Farm-To-Retail Prices for

2-Percent Milk in Selected Markets

Figure III.15: Farm, Cooperative, Wholesale, and Retail Prices for a Gallon of 2-Percent Fluid Milk for the Minneapolis,

Minn., Market

Dollars per gallon

0

0.50

1.00

1.50

2.00

2.50

3.00

3.50

Jan.

1996

Mar.

1996

June

1996

Sept.

1996

Dec.

1996

Mar.

1997

June

1997

Sept.

1997

Dec.

1997

Feb.

1998

Month/Year

Farm price

Cooperative price

Wholesale price

Retail price

Note: For the Minneapolis, Minn., market, the farm price is the Upper Midwest mailbox price; the

cooperative price is the announced cooperative price for Minneapolis; the wholesale price is the

price charged by the commissary at Fort McCoy; and the retail price is the A.C. Nielsen price for

the Minneapolis market.

Page 55 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix III 

Analysis of Farm-To-Retail Prices for

2-Percent Milk in Selected Markets

Figure III.16: Farm, Cooperative, Wholesale, and Retail Prices for a Gallon of 2-Percent Fluid Milk for the New Hampshire

Market

Dollars per gallon

0

0.50

1.00

1.50

2.00

2.50

3.00

3.50

Jan.

1996

Mar.

1996

June

1996

Sept.

1996

Dec.

1996

Mar.

1997

June

1997

Sept.

1997

Dec.

1997

Feb.

1998

Month/Year

Farm price

Cooperative price

Wholesale price

Retail price

Note: For the New Hampshire market, the farm price is the New England mailbox price; the

cooperative price is the estimated cooperative price (Boston cooperative price minus $.0129 per

gallon); the wholesale price is the price charged by the commissary at the Portsmouth Naval

Shipyard; and the retail price is the A.C. Nielsen price for the Boston market which includes

Rhode Island and parts of New Hampshire.

Page 56 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix III 

Analysis of Farm-To-Retail Prices for

2-Percent Milk in Selected Markets

Figure III.17: Farm, Cooperative, Wholesale, and Retail Prices for a Gallon of 2-Percent Fluid Milk for the New Haven, Conn.,

Market

Dollars per gallon

0

0.50

1.00

1.50

2.00

2.50

3.00

3.50

Jan.

1996

Mar.

1996

June

1996

Sept.

1996

Dec.

1996

Mar.

1997

June

1997

Sept.

1997

Dec.

1997

Feb.

1998

Month/Year

Farm price

Cooperative price

Wholesale price

Retail price

Note: For the New Haven, Conn., market, the farm price is the New England mailbox price; the

cooperative price is the announced cooperative price for Hartford; the wholesale price is the

price charged by the commissary at the New London Naval Submarine Base; and the retail price

is the A.C. Nielsen price for the Hartford-New Haven market.

Page 57 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix III 

Analysis of Farm-To-Retail Prices for

2-Percent Milk in Selected Markets

Figure III.18: Farm, Cooperative, Wholesale, and Retail Prices for a Gallon of 2-Percent Fluid Milk for the New Orleans, La.,

Market

Dollars per gallon

0

0.50

1.00

1.50

2.00

2.50

3.00

3.50

Jan.

1996

Mar.

1996

June

1996

Sept.

1996

Dec.

1996

Mar.

1997

June

1997

Sept.

1997

Dec.

1997

Feb.

1998

Month/Year

Farm price

Cooperative price

Wholesale price

Retail price

Note: For the New Orleans, La., market, the farm price is the Southeast mailbox price; the

cooperative price is the announced cooperative price for New Orleans; the wholesale price is the

price charged by the commissary at the New Orleans Naval Air Station; and the retail price is the

A.C. Nielsen price for the New Orleans-Mobile market.

Page 58 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix III 

Analysis of Farm-To-Retail Prices for

2-Percent Milk in Selected Markets

Figure III.19: Farm, Cooperative, Wholesale, and Retail Prices for a Gallon of 2-Percent Fluid Milk for the New York, N.Y.,

Market

Dollars per gallon

0

0.50

1.00

1.50

2.00

2.50

3.00

3.50

Jan.

1996

Mar.

1996

June

1996

Sept.

1996

Dec.

1996

Mar.

1997

June

1997

Sept.

1997

Dec.

1997

Feb.

1998

Month/Year

Farm price

Cooperative price

Wholesale price

Retail price

Note: For the New York, N.Y., market, the farm price is the New York-New Jersey mailbox price;

the cooperative price is the estimated cooperative price (New York Order Class I price plus

$.0602 per gallon); the wholesale price is the price charged by the commissary at the United

States Military Academy, West Point; and the retail price is the A.C. Nielsen price for the New York

market.

Page 59 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix III 

Analysis of Farm-To-Retail Prices for

2-Percent Milk in Selected Markets

Figure III.20: Farm, Cooperative, Wholesale, and Retail Prices for a Gallon of 2-Percent Fluid Milk for the Orlando, Fla.,

Market

Dollars per gallon

0

0.50

1.00

1.50

2.00

2.50

3.00

3.50

Jan.

1996

Mar.

1996

June

1996

Sept.

1996

Dec.

1996

Mar.

1997

June

1997

Sept.

1997

Dec.

1997

Feb.

1998

Month/Year

Farm price

Cooperative price

Wholesale price

Retail price

Note: For the Orlando, Fla., market, the farm price is the Florida mailbox price; the cooperative

price is the estimated cooperative price (Miami cooperative price minus $.0860 per gallon); the

wholesale price is the price charged by the commissary at the Orlando Naval Training Center;

and the retail price is the A.C. Nielsen price for the Orlando market.

Page 60 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix III 

Analysis of Farm-To-Retail Prices for

2-Percent Milk in Selected Markets

Figure III.21: Farm, Cooperative, Wholesale, and Retail Prices for a Gallon of 2-Percent Fluid Milk for the Philadelphia, Pa.,

Market

Dollars per gallon

0

0.50

1.00

1.50

2.00

2.50

3.00

3.50

Jan.

1996

Mar.

1996

June

1996

Sept.

1996

Dec.

1996

Mar.

1997

June

1997

Sept.

1997

Dec.

1997

Feb.

1998

Month/Year

Farm price

Cooperative price

Wholesale price

Retail price

Note: For the Philadelphia, Pa., market, the farm price is the Middle Atlantic mailbox price; the

cooperative price is the announced cooperative price for Philadelphia; the wholesale price is the

price charged by the commissary at Carlisle Barracks; and the retail price is the A.C. Nielsen

price for the Philadelphia market.

Page 61 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix III 

Analysis of Farm-To-Retail Prices for

2-Percent Milk in Selected Markets

Figure III.22: Farm, Cooperative, Wholesale, and Retail Prices for a Gallon of 2-Percent Fluid Milk for the Phoenix, Ariz.,

Market

Dollars per gallon

0

0.50

1.00

1.50

2.00

2.50

3.00

3.50

Jan.

1996

Mar.

1996

June

1996

Sept.

1996

Dec.

1996

Mar.

1997

June

1997

Sept.

1997

Dec.

1997

Feb.

1998

Month/Year

Farm price

Cooperative price

Wholesale price

Retail price

Note: For the Phoenix, Ariz., market, the farm price is the Central Arizona Blend price minus

$.0602 per gallon for hauling costs and other fees; the cooperative price is the announced

cooperative price for Phoenix; the wholesale price is the price charged by the commissary at the

Luke Air Force Base; and the retail price is the A.C. Nielsen price for the Phoenix market.

Page 62 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix III 

Analysis of Farm-To-Retail Prices for

2-Percent Milk in Selected Markets

Figure III.23: Farm, Cooperative, Wholesale, and Retail Prices for a Gallon of 2-Percent Fluid Milk for the Raleigh, N.C.,

Market

Dollars per gallon

0

0.50

1.00

1.50

2.00

2.50

3.00

3.50

Jan.

1996

Mar.

1996

June

1996

Sept.

1996

Dec.

1996

Mar.

1997

June

1997

Sept.

1997

Dec.

1997

Feb.

1998

Month/Year

Farm price

Cooperative price

Wholesale price

Retail price

Note: For the Raleigh, N.C., market, the farm price is the Carolina mailbox price; the cooperative

price is the announced cooperative price for Charlotte; the wholesale price is the price charged

by the commissary at Camp Lejeune; and the retail price is the A.C. Nielsen price for the

Raleigh-Durham market.

Page 63 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix III 

Analysis of Farm-To-Retail Prices for

2-Percent Milk in Selected Markets

Figure III.24: Farm, Cooperative, Wholesale, and Retail Prices for a Gallon of 2-Percent Fluid Milk for the Rhode Island

Market

Dollars per gallon

0

0.50

1.00

1.50

2.00

2.50

3.00

3.50

Jan.

1996

Mar.

1996

June

1996

Sept.

1996

Dec.

1996

Mar.

1997

June

1997

Sept.

1997

Dec.

1997

Feb.

1998

Month/Year

Farm price

Cooperative price

Wholesale price

Retail price

Note: For the Rhode Island market, the farm price is the New England mailbox price; the

cooperative price is the announced cooperative price for Boston; the wholesale price is the price

charged by the commissary at the Newport Naval Education and Training Center; and the retail

price is the A.C. Nielsen price for the Boston market which includes Rhode Island and parts of

New Hampshire.

Page 64 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix III 

Analysis of Farm-To-Retail Prices for

2-Percent Milk in Selected Markets

Figure III.25: Farm, Cooperative, Wholesale, and Retail Prices for a Gallon of 2-Percent Fluid Milk for the Richmond, Va.,

Market

Dollars per gallon

0

0.50

1.00

1.50

2.00

2.50

3.00

3.50

Jan.

1996

Mar.

1996

June

1996

Sept.

1996

Dec.

1996

Mar.

1997

June

1997

Sept.

1997

Dec.

1997

Feb.

1998

Month/Year

Farm price

Cooperative price

Wholesale price

Retail price

Note: For the Richmond, Va., market, the farm price is based on data collected by the National

Agricultural Statistics Service on the Grade A price paid to farmers in this area, minus $.0602 per

gallon for hauling costs and other fees; the cooperative price is the Virginia State Order Class I

price; the wholesale price is the price charged by the commissary at Fort Lee; and the retail price

is the A.C. Nielsen price for the Richmond-Norfolk market.

Page 65 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix III 

Analysis of Farm-To-Retail Prices for

2-Percent Milk in Selected Markets

Figure III.26: Farm, Cooperative, Wholesale, and Retail Prices for a Gallon of 2-Percent Fluid Milk for the Sacramento, Calif.,

Market

Dollars per gallon

0

0.50

1.00

1.50

2.00

2.50

3.00

3.50

Jan.

1996

Mar.

1996

June

1996

Sept.

1996

Dec.

1996

Mar.

1997

June

1997

Sept.

1997

Dec.

1997

Feb.

1998

Month/Year

Farm price

Cooperative price

Wholesale price

Retail price

Note: For the Sacramento, Calif., market, the farm price is the California mailbox price; the

cooperative price is the Northern California Class I price; the wholesale price is the price charged

by the commissary at the Stockton Naval Communications Station; and the retail price is the A.C.

Nielsen price for the Sacramento market.

Page 66 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix III 

Analysis of Farm-To-Retail Prices for

2-Percent Milk in Selected Markets

Figure III.27: Farm, Cooperative, Wholesale, and Retail Prices for a Gallon of 2-Percent Fluid Milk for the Salt Lake City,

Utah, Market

Dollars per gallon

0

0.50

1.00

1.50

2.00

2.50

3.00

3.50

Jan.

1996

Mar.

1996

June

1996

Sept.

1996

Dec.

1996

Mar.

1997

June

1997

Sept.

1997

Dec.

1997

Feb.

1998

Month/Year

Farm price

Cooperative price

Wholesale price

Retail price

Note: For the Salt Lake City, Utah, market, the farm price is the Great Basin mailbox price; the

cooperative price is the announced cooperative price for Salt Lake City; the wholesale price is the

price charged by the commissary at the Hill Air Force Base; and the retail price is the A.C.

Nielsen price for the Salt Lake City-Boise market.

Page 67 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix III 

Analysis of Farm-To-Retail Prices for

2-Percent Milk in Selected Markets

Figure III.28: Farm, Cooperative, Wholesale, and Retail Prices for a Gallon of 2-Percent Fluid Milk for the San Diego, Calif.,

Market

Dollars per gallon

0

0.50

1.00

1.50

2.00

2.50

3.00

3.50

Jan.

1996

Mar.

1996

June

1996

Sept.

1996

Dec.

1996

Mar.

1997

June

1997

Sept.

1997

Dec.

1997

Feb.

1998

Month/Year

Farm price

Cooperative price

Wholesale price

Retail price

Note: For the San Diego, Calif., market, the farm price is the California mailbox price; the

cooperative price is the Southern California Class I price; the wholesale price is the price charged

by the commissary at the San Diego Naval Station; and the retail price is the A.C. Nielsen price

for the San Diego market.

Page 68 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix III 

Analysis of Farm-To-Retail Prices for

2-Percent Milk in Selected Markets

Figure III.29: Farm, Cooperative, Wholesale, and Retail Prices for a Gallon of 2-Percent Fluid Milk for the Seattle, Wash.,

Market

Dollars per gallon

0

0.50

1.00

1.50

2.00

2.50

3.00

3.50

Jan.

1996

Mar.

1996

June

1996

Sept.

1996

Dec.

1996

Mar.

1997

June

1997

Sept.

1997

Dec.

1997

Feb.

1998

Month/Year

Farm price

Cooperative price

Wholesale price

Retail price

Note: For the Seattle, Wash., market, the farm price is the Pacific Northwest mailbox price; the

cooperative price is the announced cooperative price for Seattle; the wholesale price is the price

charged by the commissary at the Everett Naval Station; and the retail price is the A.C. Nielsen

price for the Seattle market.

Page 69 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix III 

Analysis of Farm-To-Retail Prices for

2-Percent Milk in Selected Markets

Figure III.30: Farm, Cooperative, Wholesale, and Retail Prices for a Gallon of 2-Percent Fluid Milk for the Vermont Market

Dollars per gallon

0

0.50

1.00

1.50

2.00

2.50

3.00

3.50

Jan.

1996

Mar.

1996

June

1996

Sept.

1996

Dec.

1996

Mar.

1997

June

1997

Sept.

1997

Dec.

1997

Feb.

1998

Month/Year

Farm price

Cooperative price

Wholesale price

Retail price

Note: For the Vermont market, the farm price is the New England mailbox price; the cooperative

price is the estimated cooperative price (Boston announced cooperative price minus $.0516 per

gallon); the wholesale price is the price charged by the commissary at the Hanscom Air Force

Base; and the retail price is the price reported by the state milk control agency for the Vermont

market.

Page 70 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix III 

Analysis of Farm-To-Retail Prices for

2-Percent Milk in Selected Markets

Figure III.31: Farm, Cooperative, Wholesale, and Retail Prices for a Gallon of 2-Percent Fluid Milk for the Washington, D.C.,

Market

Dollars per gallon

0

0.50

1.00

1.50

2.00

2.50

3.00

3.50

Jan.

1996

Mar.

1996

June

1996

Sept.

1996

Dec.

1996

Mar.

1997

June

1997

Sept.

1997

Dec.

1997

Feb.

1998

Month/Year

Farm price

Cooperative price

Wholesale price

Retail price

Note: For the Washington, D.C., market, the farm price is the Middle Atlantic mailbox price; the

cooperative price is the announced cooperative price for Washington, D.C.; the wholesale price is

the price charged by the commissary at the Bolling Air Force Base; and the retail price is the A.C.

Nielsen price for the Washington, D.C., market.

Page 71 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix IV 

Retail Pricing Relationships for Four Kinds

of Fluid Milk in Selected Markets

This appendix provides information on the average retail price for whole,

2-percent, 1-percent, and fat-free milk in 31 selected markets for

January 1996 through February 1998. We found that retail pricing

relationships among the four kinds of milk varied significantly in the

markets we analyzed. For example, in the Seattle market from

January 1996 through February 1998, the average price for 2-percent milk

was consistently lower than the average price for whole, 1-percent, or

fat-free milk. On the other hand, for this period in the Minneapolis market,

the average retail price for fat-free milk was consistently lower than the

price of whole, 2-percent, or 1-percent milk. In other markets, such as New

York, the lowest-priced milk shifted among 2-percent, 1-percent, and

fat-free milk over the same period. Figures IV.1 through IV.31 provide

information on the average retail price for each of the four kinds of milk

for the 31 markets for January 1996 through February 1998.

Page 72 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix IV 

Retail Pricing Relationships for Four Kinds

of Fluid Milk in Selected Markets

Figure IV.1: Atlanta, Ga., Market Retail Prices for Whole, 2-Percent, 1-Percent, and Fat-Free Milk

Dollars per gallon

2.10

2.15

2.20

2.25

2.30

2.35

2.40

2.45

2.50

2.55

2.60

2.65

2.70

Jan.

1996

Mar.

1996

June

1996

Sept.

1996

Dec.

1996

Mar.

1997

June

1997

Sept.

1997

Dec.

1997

Feb.

1998

Whole milk

2% milk

1% milk

Fat-free milk

Note: The retail price is the A.C. Nielsen price for the Atlanta market.

Page 73 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix IV 

Retail Pricing Relationships for Four Kinds

of Fluid Milk in Selected Markets

Figure IV.2: Augusta, Me., Market Retail Prices for Whole, 2-Percent, 1-Percent, and Fat-Free Milk

Dollars per gallon

1.80

1.90

2.00

2.10

2.20

2.30

2.40

2.50

2.60

2.70

2.80

2.90

Jan.

1996

Mar.

1996

June

1996

Sept.

1996

Dec.

1996

Mar.

1997

June

1997

Sept.

1997

Dec.

1997

Feb.

1998

Whole milk

2% milk

1% milk

Fat-free milk

Note: The retail price is the price reported by the state milk control agency for the Augusta

market.

Page 74 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix IV 

Retail Pricing Relationships for Four Kinds

of Fluid Milk in Selected Markets

Figure IV.3: Bismarck, N.D., Market Retail Prices for Whole, 2-Percent, 1-Percent, and Fat-Free Milk

Dollars per gallon

2.75

2.80

2.85

2.90

2.95

3.00

3.05

3.10

3.15

3.20

3.25

3.30

3.35

3.40

Feb.

1996

Apr.

1996

June

1996

Sept.

1996

Dec.

1996

Mar.

1997

June

1997

Sept.

1997

Dec.

1997

Feb.

1998

Whole milk

2% milk

1% milk

Fat-free milk

Note: The retail price is the price reported by the state milk control agency for the Bismarck

market.

Page 75 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix IV 

Retail Pricing Relationships for Four Kinds

of Fluid Milk in Selected Markets

Figure IV.4: Boston, Mass., Market Retail Prices for Whole, 2-Percent, 1-Percent, and Fat-Free Milk

Dollars per gallon

2.10

2.15

2.20

2.25

2.30

2.35

2.40

2.45

2.50

2.55

2.60

Jan.

1996

Mar.

1996

June

1996

Sept.

1996

Dec.

1996

Mar.

1997

June

1997

Sept.

1997

Dec.

1997

Feb.

1998

Whole milk

2% milk

1% milk

Fat-free milk

Note: The retail price is the A.C. Nielsen price for the Boston market which includes Rhode Island

and parts of New Hampshire.

Page 76 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix IV 

Retail Pricing Relationships for Four Kinds

of Fluid Milk in Selected Markets

Figure IV.5: Chicago, Ill., Market Retail Prices for Whole, 2-Percent, 1-Percent, and Fat-Free Milk

Dollars per gallon

2.00

2.05

2.10

2.15

2.20

2.25

2.30

2.35

2.40

2.45

2.50

2.55

2.60

2.65

Jan.

1996

Mar.

1996

June

1996

Sept.

1996

Dec.

1996

Mar.

1997

June

1997

Sept.

1997

Dec.

1997

Feb.

1998

Whole milk

2% milk

1% milk

Fat-free milk

Note: The retail price is the A.C. Nielsen price for the Chicago market.

Page 77 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix IV 

Retail Pricing Relationships for Four Kinds

of Fluid Milk in Selected Markets

Figure IV.6: Cincinnati, Ohio, Market Retail Prices for Whole, 2-Percent, 1-Percent, and Fat-Free Milk

Dollars per gallon

1.15

1.25

1.35

1.45

1.55

1.65

1.75

1.85

1.95

2.05

2.15

2.25

2.35

2.45

Jan.

1996

Mar.

1996

June

1996

Sept.

1996

Dec.

1996

Mar.

1997

June

1997

Sept.

1997

Dec.

1997

Feb.

1998

Whole milk

2% milk

1% milk

Fat-free milk

Note: The retail price is the A.C. Nielsen price for the Cincinnati market.

Page 78 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix IV 

Retail Pricing Relationships for Four Kinds

of Fluid Milk in Selected Markets

Figure IV.7: Dallas, Tex., Market Retail Prices for Whole, 2-Percent, 1-Percent, and Fat-Free Milk

Dollars per gallon

2.10

2.15

2.20

2.25

2.30

2.35

2.40

2.45

2.50

2.55

Jan.

1996

Mar.

1996

June

1996

Sept.

1996

Dec.

1996

Mar.

1997

June

1997

Sept.

1997

Dec.

1997

Feb.

1998

Whole milk

2% milk

1% milk

Fat-free milk

Note: The retail price is the A.C. Nielsen price for the Dallas market.

Page 79 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix IV 

Retail Pricing Relationships for Four Kinds

of Fluid Milk in Selected Markets

Figure IV.8: Denver, Colo., Market Retail Prices for Whole, 2-Percent, 1-Percent, and Fat-Free Milk

Dollars per gallon

2.30

2.35

2.40

2.45

2.50

2.55

2.60

2.65

2.70

2.75

2.80

2.85

2.90

2.95

Jan.

1996

Mar.

1996

June

1996

Sept.

1996

Dec.

1996

Mar.

1997

June

1997

Sept.

1997

Dec.

1997

Feb.

1998

Whole milk

2% milk

1% milk

Fat-free milk

Note: The retail price is the A.C. Nielsen price for the Denver market.

Page 80 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix IV 

Retail Pricing Relationships for Four Kinds

of Fluid Milk in Selected Markets

Figure IV.9: Houston, Tex., Market Retail Prices for Whole, 2-Percent, 1-Percent, and Fat-Free Milk

Dollars per gallon

2.00

2.05

2.10

2.15

2.20

2.25

2.30

Jan.

1996

Mar.

1996

June

1996

Sept.

1996

Dec.

1996

Mar.

1997

June

1997

Sept.

1997

Dec.

1997

Feb.

1998

Whole milk

2% milk

1% milk

Fat-free milk

Note: The retail price is the A.C. Nielsen price for the Houston market.

Page 81 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix IV 

Retail Pricing Relationships for Four Kinds

of Fluid Milk in Selected Markets

Figure IV.10: Kansas City, Mo., Market Retail Prices for Whole, 2-Percent, 1-Percent, and Fat-Free Milk

Dollars per gallon

2.35

2.40

2.45

2.50

2.55

2.60

2.65

2.70

2.75

2.80

2.85

Jan.

1996

Mar.

1996

June

1996

Sept.

1996

Dec.

1996

Mar.

1997

June

1997

Sept.

1997

Dec.

1997

Feb.

1998

Whole milk

2% milk

1% milk

Fat-free milk

Note: The retail price is the A.C. Nielsen price for the Kansas City market.

Page 82 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix IV 

Retail Pricing Relationships for Four Kinds

of Fluid Milk in Selected Markets

Figure IV.11: Las Vegas, Nev., Market Retail Prices for Whole, 2-Percent, 1-Percent, and Fat-Free Milk

Dollars per gallon

2.40

2.45

2.50

2.55

2.60

2.65

2.70

2.75

2.80

2.85

2.90

2.95

3.00

3.05

Feb.

1996

Apr.

1996

June

1996

Sept.

1996

Dec.

1996

Mar.

1997

June

1997

Sept.

1997

Dec.

1997

Feb.

1998

Whole milk

2% milk

1% milk

Fat-free milk

Note: The retail price is the price reported by the state milk control agency for the Las Vegas

market.

Page 83 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix IV 

Retail Pricing Relationships for Four Kinds

of Fluid Milk in Selected Markets

Figure IV.12: Louisville, Ky., Market Retail Prices for Whole, 2-Percent, 1-Percent, and Fat-Free Milk

Dollars per gallon

1.85

1.90

1.95

2.00

2.05

2.10

2.15

2.20

2.25

2.30

2.35

2.40

2.45

2.50

Jan.

1996

Mar.

1996

June

1996

Sept.

1996

Dec.

1996

Mar.

1997

June

1997

Sept.

1997

Dec.

1997

Feb.

1998

Whole milk

2% milk

1% milk

Fat-free milk

Note: The retail price is the A.C. Nielsen price for the Louisville market.

Page 84 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix IV 

Retail Pricing Relationships for Four Kinds

of Fluid Milk in Selected Markets

Figure IV.13: Miami, Fla., Market Retail Prices for Whole, 2-Percent, 1-Percent, and Fat-Free Milk

Dollars per gallon

2.70

2.75

2.80

2.85

2.90

2.95

3.00

3.05

3.10

3.15

Jan.

1996

Mar.

1996

June

1996

Sept.

1996

Dec.

1996

Mar.

1997

June

1997

Sept.

1997

Dec.

1997

Feb.

1998

Whole milk

2% milk

1% milk

Fat-free milk

Note: The retail price is the A.C. Nielsen price for the Miami market.

Page 85 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix IV 

Retail Pricing Relationships for Four Kinds

of Fluid Milk in Selected Markets

Figure IV.14: Milwaukee, Wis., Market Retail Prices for Whole, 2-Percent, 1-Percent, and Fat-Free Milk

Dollars per gallon

1.95

2.00

2.05

2.10

2.15

2.20

2.25

2.30

2.35

2.40

2.45

2.50

2.55

2.60

2.65

Jan.

1996

Mar.

1996

June

1996

Sept.

1996

Dec.

1996

Mar.

1997

June

1997

Sept.

1997

Dec.

1997

Feb.

1998

Whole milk

2% milk

1% milk

Fat-free milk

Note: The retail price is the A.C. Nielsen price for the Milwaukee market.

Page 86 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix IV 

Retail Pricing Relationships for Four Kinds

of Fluid Milk in Selected Markets

Figure IV.15: Minneapolis, Minn., Market Retail Prices for Whole, 2-Percent, 1-Percent, and Fat-Free Milk

Dollars per gallon

2.55

2.60

2.65

2.70

2.75

2.80

2.85

2.90

2.95

3.00

3.05

Jan.

1996

Mar.

1996

June

1996

Sept.

1996

Dec.

1996

Mar.

1997

June

1997

Sept.

1997

Dec.

1997

Feb.

1998

Whole milk

2% milk

1% milk

Fat-free milk

Note: The retail price is the A.C. Nielsen price for the Minneapolis market.

Page 87 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix IV 

Retail Pricing Relationships for Four Kinds

of Fluid Milk in Selected Markets

Figure IV.16: New Hampshire Market Retail Prices for Whole, 2-Percent, 1-Percent, and Fat-Free Milk

Dollars per gallon

2.10

2.15

2.20

2.25

2.30

2.35

2.40

2.45

2.50

2.55

2.60

Jan.

1996

Mar.

1996

June

1996

Sept.

1996

Dec.

1996

Mar.

1997

June

1997

Sept.

1997

Dec.

1997

Feb.

1998

Whole milk

2% milk

1% milk

Fat-free milk

Note: The retail price is the A.C. Nielsen price for the Boston market which includes Rhode Island

and parts of New Hampshire.

Page 88 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix IV 

Retail Pricing Relationships for Four Kinds

of Fluid Milk in Selected Markets

Figure IV.17: New Haven, Conn., Market Retail Prices for Whole, 2-Percent, 1-Percent, and Fat-Free Milk

Dollars per gallon

2.20

2.25

2.30

2.35

2.40

2.45

2.50

2.55

2.60

2.65

2.70

Jan.

1996

Mar.

1996

June

1996

Sept.

1996

Dec.

1996

Mar.

1997

June

1997

Sept.

1997

Dec.

1997

Feb.

1998

Whole milk

2% milk

1% milk

Fat-free milk

Note: The retail price is the A.C. Nielsen price for the Hartford-New Haven market.

Page 89 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix IV 

Retail Pricing Relationships for Four Kinds

of Fluid Milk in Selected Markets

Figure IV.18: New Orleans, La., Market Retail Prices for Whole, 2-Percent, 1-Percent, and Fat-Free Milk

Dollars per gallon

2.20

2.25

2.30

2.35

2.40

2.45

2.50

2.55

2.60

2.65

2.70

2.75

2.80

Jan.

1996

Mar.

1996

June

1996

Sept.

1996

Dec.

1996

Mar.

1997

June

1997

Sept.

1997

Dec.

1997

Feb.

1998

Whole milk

2% milk

1% milk

Fat-free milk

Note: The retail price is the A.C. Nielsen price for the New Orleans-Mobile market.

Page 90 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix IV 

Retail Pricing Relationships for Four Kinds

of Fluid Milk in Selected Markets

Figure IV.19: New York, N.Y., Market Retail Prices for Whole, 2-Percent, 1-Percent, and Fat-Free Milk

Dollars per gallon

2.50

2.55

2.60

2.65

2.70

2.75

2.80

Jan.

1996

Mar.

1996

June

1996

Sept.

1996

Dec.

1996

Mar.

1997

June

1997

Sept.

1997

Dec.

1997

Feb.

1998

Whole milk

2% milk

1% milk

Fat-free milk

Note: The retail price is the A.C. Nielsen price for the New York market.

Page 91 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix IV 

Retail Pricing Relationships for Four Kinds

of Fluid Milk in Selected Markets

Figure IV.20: Orlando, Fla., Market Retail Prices for Whole, 2-Percent, 1-Percent, and Fat-Free Milk

Dollars per gallon

2.60

2.65

2.70

2.75

2.80

2.85

2.90

2.95

3.00

3.05

Jan.

1996

Mar.

1996

June

1996

Sept.

1996

Dec.

1996

Mar.

1997

June

1997

Sept.

1997

Dec.

1997

Feb.

1998

Whole milk

2% milk

1% milk

Fat-free milk

Note: The retail price is the A.C. Nielsen price for the Orlando market.

Page 92 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix IV 

Retail Pricing Relationships for Four Kinds

of Fluid Milk in Selected Markets

Figure IV.21: Philadelphia, Pa., Market Retail Prices for Whole, 2-Percent, 1-Percent, and Fat-Free Milk

Dollars per gallon

2.15

2.20

2.25

2.30

2.35

2.40

2.45

2.50

2.55

2.60

2.65

2.70

2.75

Jan.

1996

Mar.

1996

June

1996

Sept.

1996

Dec.

1996

Mar.

1997

June

1997

Sept.

1997

Dec.

1997

Feb.

1998

Whole milk

2% milk

1% milk

Fat-free milk

Note: The retail price is the A.C. Nielsen price for the Philadelphia market.

Page 93 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix IV 

Retail Pricing Relationships for Four Kinds

of Fluid Milk in Selected Markets

Figure IV.22: Phoenix, Ariz., Market Retail Prices for Whole, 2-Percent, 1-Percent, and Fat-Free Milk

Dollars per gallon

1.60

1.70

1.80

1.90

2.00

2.10

2.20

2.30

2.40

Jan.

1996

Mar.

1996

June

1996

Sept.

1996

Dec.

1996

Mar.

1997

June

1997

Sept.

1997

Dec.

1997

Feb.

1998

Whole milk

2% milk

1% milk

Fat-free milk

Note: The retail price is the A.C. Nielsen price for the Phoenix market.

Page 94 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix IV 

Retail Pricing Relationships for Four Kinds

of Fluid Milk in Selected Markets

Figure IV.23: Raleigh, N.C., Market Retail Prices for Whole, 2-Percent, 1-Percent, and Fat-Free Milk

Dollars per gallon

2.35

2.40

2.45

2.50

2.55

2.60

2.65

2.70

Jan.

1996

Mar.

1996

June

1996

Sept.

1996

Dec.

1996

Mar.

1997

June

1997

Sept.

1997

Dec.

1997

Feb.

1998

Whole milk

2% milk

1% milk

Fat-free milk

Note: The retail price is the A.C. Nielsen price for the Raleigh-Durham market.

Page 95 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix IV 

Retail Pricing Relationships for Four Kinds

of Fluid Milk in Selected Markets

Figure IV.24: Rhode Island Market Retail Prices for Whole, 2-Percent, 1-Percent, and Fat-Free Milk

Dollars per gallon

2.10

2.15

2.20

2.25

2.30

2.35

2.40

2.45

2.50

2.55

2.60

Jan.

1996

Mar.

1996

June

1996

Sept.

1996

Dec.

1996

Mar.

1997

June

1997

Sept.

1997

Dec.

1997

Feb.

1998

Whole milk

2% milk

1% milk

Fat-free milk

Note: The retail price is the A.C. Nielsen price for the Boston market which includes Rhode Island

and parts of New Hampshire.

Page 96 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix IV 

Retail Pricing Relationships for Four Kinds

of Fluid Milk in Selected Markets

Figure IV.25: Richmond, Va., Market Retail Prices for Whole, 2-Percent, 1-Percent, and Fat-Free Milk

Dollars per gallon

2.35

2.40

2.45

2.50

2.55

2.60

2.65

2.70

Jan.

1996

Mar.

1996

June

1996

Sept.

1996

Dec.

1996

Mar.

1997

June

1997

Sept.

1997

Dec.

1997

Feb.

1998

Whole milk

2% milk

1% milk

Fat-free milk

Note: The retail price is the A.C. Nielsen price for the Richmond-Norfolk market.

Page 97 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix IV 

Retail Pricing Relationships for Four Kinds

of Fluid Milk in Selected Markets

Figure IV.26: Sacramento, Calif., Market Retail Prices for Whole, 2-Percent, 1-Percent, and Fat-Free Milk

Dollars per gallon

2.15

2.25

2.35

2.45

2.55

2.65

2.75

2.85

2.95

Jan.

1996

Mar.

1996

June

1996

Sept.

1996

Dec.

1996

Mar.

1997

June

1997

Sept.

1997

Dec.

1997

Feb.

1998

Whole milk

2% milk

1% milk

Fat-free milk

Note: The retail price is the A.C. Nielsen price for the Sacramento market.

Page 98 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix IV 

Retail Pricing Relationships for Four Kinds

of Fluid Milk in Selected Markets

Figure IV.27: Salt Lake City, Utah, Market Retail Prices for Whole, 2-Percent, 1-Percent, and Fat-Free Milk

Dollars per gallon

1.90

1.95

2.00

2.05

2.10

2.15

2.20

2.25

2.30

2.35

2.40

2.45

2.50

2.55

2.60

Jan.

1996

Mar.

1996

June

1996

Sept.

1996

Dec.

1996

Mar.

1997

June

1997

Sept.

1997

Dec.

1997

Feb.

1998

Whole milk

2% milk

1% milk

Fat-free milk

Note: The retail price is the A.C. Nielsen price for the Salt Lake City-Boise market.

Page 99 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix IV 

Retail Pricing Relationships for Four Kinds

of Fluid Milk in Selected Markets

Figure IV.28: San Diego, Calif., Market Retail Prices for Whole, 2-Percent, 1-Percent, and Fat-Free Milk

Dollars per gallon

2.45

2.55

2.65

2.75

2.85

2.95

3.05

3.15

3.25

3.35

3.45

3.55

3.65

Jan.

1996

Mar.

1996

June

1996

Sept.

1996

Dec.

1996

Mar.

1997

June

1997

Sept.

1997

Dec.

1997

Feb.

1998

Whole milk

2% milk

1% milk

Fat-free milk

Note: The retail price is the A.C. Nielsen price for the San Diego market.

Page 100 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix IV 

Retail Pricing Relationships for Four Kinds

of Fluid Milk in Selected Markets

Figure IV.29: Seattle, Wash., Market Retail Prices for Whole, 2-Percent, 1-Percent, and Fat-Free Milk

Dollars per gallon

1.50

1.65

1.80

1.95

2.10

2.25

2.40

2.55

2.70

2.85

3.00

3.15

Jan.

1996

Mar.

1996

June

1996

Sept.

1996

Dec.

1996

Mar.

1997

June

1997

Sept.

1997

Dec.

1997

Feb.

1998

Whole milk

2% milk

1% milk

Fat-free milk

Note: The retail price is the A.C. Nielsen price for the Seattle market.

Page 101 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix IV 

Retail Pricing Relationships for Four Kinds

of Fluid Milk in Selected Markets

Figure IV.30: Vermont Market Retail Prices for Whole, 2-Percent, 1-Percent, and Fat-Free Milk

Dollars per gallon

2.35

2.40

2.45

2.50

2.55

2.60

2.65

2.70

2.75

Jan.

1996

Mar.

1996

June

1996

Sept.

1996

Dec.

1996

Mar.

1997

June

1997

Sept.

1997

Dec.

1997

Feb.

1998

Whole milk

2% milk

1% milk

Fat-free milk

Note: The retail price is the price reported by the state milk control agency for the Vermont

market.

Page 102 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix IV 

Retail Pricing Relationships for Four Kinds

of Fluid Milk in Selected Markets

Figure IV.31: Washington, D.C., Market Retail Prices for Whole, 2-Percent, 1-Percent, and Fat-Free Milk

Dollars per gallon

2.25

2.30

2.35

2.40

2.45

2.50

2.55

2.60

Jan.

1996

Mar.

1996

June

1996

Sept.

1996

Dec.

1996

Mar.

1997

June

1997

Sept.

1997

Dec.

1997

Feb.

1998

Whole milk

2% milk

1% milk

Fat-free milk

Note: The retail price is the A.C. Nielsen price for the Washington, D.C. market.

Page 103 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix V 

Data on the Average Monthly Retail,

Wholesale-, Cooperative-, and Farm-Level

Prices for Four Kinds of Fluid Milk in

Selected Markets

This appendix provides data for January 1996 through February 1998 on

the average monthly retail-, wholesale-, cooperative-, and farm-level prices

for a gallon of whole, 2-percent, 1-percent, and fat-free milk, for 31

selected markets. These data are presented in table V.1 through table V.31.

Page 104 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix V 

Data on the Average Monthly Retail,

Wholesale-, Cooperative-, and Farm-Level

Prices for Four Kinds of Fluid Milk in

Selected Markets

Page 105 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix V 

Data on the Average Monthly Retail,

Wholesale-, Cooperative-, and Farm-Level

Prices for Four Kinds of Fluid Milk in

Selected Markets

Table V.1: Atlanta, Ga., Market Milk Prices Per Gallon—Retail and Wholesale Prices, and Announced Cooperative Class I

and Mailbox Prices (Both Unadjusted for Butterfat Content), 1996-February 1998

1996

Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Avg.

Retail

Whole $2.24 $2.25 $2.24 $2.24 $2.30 $2.42 $2.52 $2.53 $2.54 $2.54 $2.57 $2.60 $2.42

2% 2.25 2.26 2.26 2.25 2.32 2.44 2.52 2.53 2.54 2.54 2.58 2.63 $2.43

1% 2.14 2.15 2.15 2.14 2.21 2.31 2.40 2.43 2.43 2.43 2.46 2.49 $2.31

Fat-free 2.18 2.20 2.20 2.20 2.26 2.37 2.45 2.49 2.50 2.50 2.53 2.57 $2.37

Wholesale

Whole a a a a a a 2.07 2.07 2.22 2.22 2.27 2.27 $2.19

2% a a a a a a 2.05 2.05 2.20 2.20 2.25 2.25 $2.17

1% a a a a a a a a a a a a a

Fat-free a a a a a a 2.05 2.05 2.20 2.20 2.25 2.25 $2.17

Cooperative 1.40 1.40 1.39 1.38 1.39 1.51 1.58 1.61 1.66 1.70 1.70 1.59 $1.53

Mailbox 1.20 1.20 1.18 1.18 1.22 1.30 1.34 1.37 1.42 1.46 1.42 1.30 $1.30

Page 106 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix V 

Data on the Average Monthly Retail,

Wholesale-, Cooperative-, and Farm-Level

Prices for Four Kinds of Fluid Milk in

Selected Markets

1997-98

Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Avg.

$2.61 $2.62 $2.61 $2.60 $2.61 $2.59 $2.59 $2.60 $2.55 $2.47 $2.28 $2.53 $2.50 $2.51 $2.55

2.62 2.62 2.61 2.62 2.63 2.60 2.61 2.62 2.57 2.50 2.30 2.56 2.53 2.54 $2.57

2.50 2.51 2.51 2.52 2.51 2.46 2.50 2.52 2.45 2.42 2.27 2.47 2.44 2.45 $2.47

2.55 2.56 2.55 2.55 2.57 2.54 2.57 2.57 2.51 2.48 2.31 2.54 2.52 2.54 $2.53

2.27 2.19 2.27 2.19 2.19 2.19 2.15 2.15 2.15 2.15 2.25 2.25 2.25 2.25 $2.21

2.25 2.17 2.25 2.17 2.17 2.17 2.13 2.13 2.13 2.13 2.23 2.23 2.23 2.23 $2.19

a a a a a a a a a a a a a a a

2.25 2.17 2.25 2.17 2.17 2.17 2.13 2.13 2.13 2.13 2.23 2.23 2.23 2.23 $2.19

1.44 1.42 1.42 1.41 1.41 1.32 1.26 1.28 1.29 1.41 1.47 1.47 1.48 1.51 $1.40

1.19 1.18 1.18 1.16 1.15 1.10 1.05 1.07 1.10 1.22 1.27 1.27 1.28 1.29 $1.18

aData not available.

Note: For the Atlanta, Ga., market, the farm price is the Southeast mailbox price; the cooperative

price is the announced cooperative price for Atlanta; the wholesale price is the price charged by

the commissary at the Athens Naval Supply Corps School; and the retail price is the A.C. Nielsen

price for the Atlanta market. Prices may not average due to rounding.

Page 107 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix V 

Data on the Average Monthly Retail,

Wholesale-, Cooperative-, and Farm-Level

Prices for Four Kinds of Fluid Milk in

Selected Markets

Table V.2: Augusta, Me., Market Milk Prices Per Gallon—Retail and Wholesale Prices, and Dealer Cost Class I and Mailbox

Prices (Both Unadjusted for Butterfat Content), 1996-February 1998

1996

Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Avg.

Retail

Whole $2.19 $2.19 $2.17 $2.16 $2.17 $2.18 $2.24 $2.27 $2.32 $2.36 $2.44 $2.29 $2.25

2% 2.14 2.38 2.10 2.13 2.12 2.12 2.04 2.06 2.16 2.22 2.27 a $2.16

1% 2.12 2.18 2.08 2.12 2.10 2.08 2.08 2.06 2.16 2.16 2.27 a $2.13

Fat-free 2.09 2.17 2.06 2.11 2.09 2.05 1.93 1.84 1.98 2.08 2.12 a $2.05

Wholesale

Whole 1.89 2.02 2.02 2.02 2.02 a a 2.03 2.03 2.07 2.11 2.00 $2.02

2% 1.84 1.97 1.97 1.97 1.97 a a 1.86 1.86 1.90 1.94 1.83 $1.91

1% 1.81 1.94 1.94 1.94 1.94 a a 1.72 1.72 1.76 1.80 1.69 $1.83

Fat-free a a a a a a a a 1.70 1.74 1.78 1.67 $1.72

Dealer Cost 1.39 1.39 1.38 1.37 1.37 1.43 1.48 1.50 1.55 1.58 1.62 1.52 $1.46

Mailbox 1.15 1.14 1.13 1.12 1.16 1.21 1.27 1.29 1.34 1.36 1.32 1.21 $1.23

Page 108 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix V 

Data on the Average Monthly Retail,

Wholesale-, Cooperative-, and Farm-Level

Prices for Four Kinds of Fluid Milk in

Selected Markets

1997-98

Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Avg.

$2.17 $2.18 $2.18 $2.19 $2.20 $2.18 $2.28 $2.37 $2.79 $2.47 $2.47 $2.47 $2.47 $2.47 $2.35

2.22 2.18 2.18 2.18 2.20 2.18 2.28 2.37 2.79 2.47 2.47 2.27 2.37 2.47 $2.33

2.23 2.18 2.18 2.18 2.01 2.18 2.28 2.37 2.79 2.95 2.37 2.17 2.27 2.47 $2.33

2.25 2.18 2.18 2.19 2.20 2.09 2.32 2.37 2.79 2.47 2.37 2.07 2.27 2.47 $2.30

1.78 1.76 1.81 1.85 1.85 1.76 1.95 1.95 1.95 1.95 1.95 1.95 1.95 1.95 $1.89

1.61 1.59 1.64 1.68 1.68 1.59 1.78 1.78 1.78 1.78 1.78 1.78 1.78 1.78 $1.72

1.47 1.45 1.50 1.54 1.54 1.45 1.64 1.64 1.64 1.64 1.64 1.64 1.64 1.64 $1.58

1.45 1.43 1.48 1.52 1.52 1.43 1.62 1.62 1.62 1.62 1.62 1.62 1.62 1.62 $1.56

1.33 1.31 1.35 1.39 1.39 1.30 1.46 1.49 1.49 1.48 1.48 1.48 1.48 1.48 $1.42

1.12 1.09 1.13 1.12 1.10 1.03 1.09 1.12 1.15 1.21 1.25 1.24 1.23 1.22 $1.15

aData not available.

Note: For the Augusta, Me., market, the farm price is the New England mailbox price; the

cooperative price is the Maine dealer cost; the wholesale price is the price charged by the

commissary at the Brunswick Naval Air Station; and the retail price is the price reported by the

state milk control agency for the Augusta market. Prices may not average due to rounding.

Page 109 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix V 

Data on the Average Monthly Retail,

Wholesale-, Cooperative-, and Farm-Level

Prices for Four Kinds of Fluid Milk in

Selected Markets

Table V.3: Bismarck, N.D., Market Milk Prices Per Gallon—Retail and Wholesale Prices, and North Dakota Class I and Grade

A Prices (Both Unadjusted for Butterfat Content), 1996-February 1998

1996

Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Avg.

Retail

Whole a $3.02 $3.02 $3.02 $3.02 $3.08 $3.10 $3.10 $3.14 $3.14 $3.36 $3.19 $3.11

2% a 3.02 3.02 3.02 3.02 3.06 3.08 3.04 3.14 3.14 3.32 3.21 $3.10

1% a 3.04 3.04 3.04 3.04 3.10 3.11 3.07 3.14 3.14 3.32 3.29 $3.12

Fat-free a 3.04 3.04 3.04 3.04 3.06 3.08 3.04 3.06 3.06 3.28 3.27 $3.09

Wholesale

Whole a a 2.33 2.33 2.33 2.43 2.43 2.43 2.49 2.38 2.48 2.48 $2.41

2% a a 2.32 2.32 2.32 2.42 2.42 2.42 2.41 2.35 2.45 2.45 $2.39

1% 2.34 2.36 2.39 2.32 2.32 2.42 2.42 2.42 2.41 2.49 2.59 2.59 $2.42

Fat-free 2.37 2.28 2.43 2.36 2.36 2.45 2.45 2.45 2.37 2.40 2.50 2.50 $2.41

N.D. Class I 1.27 1.28 1.28 1.27 1.29 1.34 1.39 1.41 1.47 1.51 1.56 1.45 $1.38

Grade A 1.11 1.10 1.09 1.12 1.14 1.15 1.20 1.25 1.31 1.28 1.15 1.09 $1.17

Page 110 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix V 

Data on the Average Monthly Retail,

Wholesale-, Cooperative-, and Farm-Level

Prices for Four Kinds of Fluid Milk in

Selected Markets

1997-98

Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Avg.

a $3.12 $3.02 a $2.96 $3.00 $2.95 $2.89 $2.88 $3.09 $3.13 $2.99 $3.01 $3.14 $3.02

a 3.22 3.10 3.10 3.06 2.95 2.89 2.83 2.88 3.05 3.09 2.99 3.01 3.10 $3.02

a 3.18 3.06 a 3.02 2.99 2.93 2.87 2.87 3.13 2.77 3.00 3.04 3.12 $3.00

a 3.24 3.12 a 3.06 2.89 2.85 2.79 2.88 3.05 3.07 2.90 3.04 3.10 $3.00

2.40 2.40 2.28 a a a a a a a a a a a $2.36

2.37 2.37 2.23 a a a a a a a a a a a $2.32

2.51 2.51 2.37 a a a a a a a a a a a $2.46

2.42 2.42 2.25 a a a a a a a a a a a $2.36

1.38 1.38 1.31 1.30 1.31 1.21 1.15 1.17 1.18 1.27 1.33 1.33 1.34 1.36 $1.29

1.09 1.10 1.07 1.02 0.96 0.92 0.93 1.02 1.07 1.13 1.19 1.20 1.19 1.17 $1.08

aData not available.

Note: For the Bismarck, N.D., market, the farm price is based on data collected by the National

Agricultural Statistics Service on the Grade A price paid to farmers in this area minus $.0602 per

gallon for hauling costs and other fees; the cooperative price is the North Dakota State Order

Class I price; the wholesale price is the price charged by the commissary at the Minot Air Force

Base; and the retail price is the price reported by the state milk control agency for the Bismarck

market. Prices may not average due to rounding.

Page 111 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix V 

Data on the Average Monthly Retail,

Wholesale-, Cooperative-, and Farm-Level

Prices for Four Kinds of Fluid Milk in

Selected Markets

Table V.4: Boston, Mass., Market Milk Prices Per Gallon—Retail and Wholesale Prices, and Announced Cooperative Class I

and Mailbox Prices (Both Unadjusted for Butterfat Content), 1996-February 1998

1996

Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Avg.

Retail

Whole $2.32 $2.30 $2.28 $2.29 $2.27 $2.30 $2.36 $2.34 $2.34 $2.38 $2.39 $2.38 $2.33

2% 2.22 2.21 2.20 2.22 2.17 2.22 2.27 2.25 2.20 2.24 2.23 2.27 $2.22

1% 2.15 2.19 2.12 2.17 2.18 2.17 2.19 2.16 2.17 2.16 2.21 2.22 $2.17

Fat-free 2.16 2.15 2.16 2.18 2.15 2.20 2.23 2.19 2.19 2.19 2.21 2.22 $2.19

Wholesale

Whole a a a 1.82 1.81 1.81 1.81 1.94 1.94 1.94 1.94 1.94 $1.88

2% a a a 1.76 1.75 1.75 1.75 1.99 1.99 1.99 1.99 1.99 $1.88

1% a a a 1.76 1.75 1.75 1.75 1.98 1.98 1.98 1.98 1.98 $1.88

Fat-free a a a 1.72 1.71 1.71 1.71 1.93 1.93 1.93 1.93 1.93 $1.83

Cooperative 1.45 1.45 1.44 1.42 1.43 1.47 1.53 1.54 1.59 1.63 1.66 1.59 $1.52

Mailbox 1.15 1.14 1.13 1.12 1.16 1.21 1.27 1.29 1.34 1.36 1.32 1.21 $1.23

Page 112 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix V 

Data on the Average Monthly Retail,

Wholesale-, Cooperative-, and Farm-Level

Prices for Four Kinds of Fluid Milk in

Selected Markets

1997-98

Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Avg.

$2.38 $2.37 $2.36 $2.38 $2.39 $2.40 $2.60 $2.60 $2.59 $2.55 $2.56 $2.58 $2.55 $2.54 $2.49

2.28 2.26 2.26 2.28 2.28 2.31 2.51 2.51 2.46 2.44 2.47 2.45 2.40 2.44 $2.38

2.20 2.18 2.19 2.18 2.21 2.19 2.40 2.39 2.38 2.35 2.37 2.36 2.33 2.36 $2.29

2.19 2.19 2.18 2.22 2.22 2.22 2.41 2.41 2.37 2.36 2.36 2.36 2.30 2.31 $2.29

1.69 1.67 1.72 1.76 1.76 1.67 1.86 1.86 1.86 1.86 1.86 1.86 1.86 1.86 $1.80

1.74 1.72 1.77 1.81 1.81 1.72 1.91 1.91 1.91 1.91 1.91 1.91 1.91 1.91 $1.85

1.73 1.71 1.76 1.80 1.80 1.71 1.90 1.90 1.90 1.90 1.90 1.90 1.90 1.90 $1.84

1.68 1.66 1.71 1.75 1.75 1.66 1.85 1.85 1.85 1.85 1.85 1.85 1.85 1.85 $1.79

1.37 1.35 1.40 1.45 1.45 1.36 1.55 1.54 1.51 1.51 1.51 1.51 1.51 1.51 $1.47

1.12 1.09 1.13 1.12 1.10 1.03 1.09 1.12 1.15 1.21 1.25 1.24 1.23 1.22 $1.15

aData not available.

Note: For the Boston, Mass., market, the farm price is the New England mailbox price; the

cooperative price is the announced cooperative price for Boston; the wholesale price is the price

charged by the commissary at the Hanscom Air Force Base; and the retail price is the A.C.

Nielsen price for the Boston market which includes Rhode Island and parts of New Hampshire.

Prices may not average due to rounding.

Page 113 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix V 

Data on the Average Monthly Retail,

Wholesale-, Cooperative-, and Farm-Level

Prices for Four Kinds of Fluid Milk in

Selected Markets

Table V.5: Chicago, Ill., Market Milk Prices Per Gallon—Retail and Wholesale Prices, and Announced Cooperative Class I

and Mailbox Prices (Both Unadjusted for Butterfat Content), 1996-February 1998

1996

Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Avg.

Retail

Whole $2.38 $2.32 $2.40 $2.35 $2.34 $2.49 $2.58 $2.51 $2.52 $2.58 $2.63 $2.58 $2.47

2% 2.19 2.13 2.01 2.09 2.13 2.16 2.26 2.28 2.24 2.31 2.33 2.36 $2.21

1% 2.17 2.17 2.11 2.09 2.16 2.21 2.26 2.32 2.29 2.34 2.42 2.42 $2.25

Fat-free 2.22 2.19 2.12 2.21 2.21 2.32 2.39 2.42 2.40 2.44 2.48 2.39 $2.32

Wholesale

Whole a a a a a a a a 1.93 2.00 2.07 2.07 $2.02

2% a a a a a a a a 1.83 1.87 1.94 1.94 $1.90

1% a a a a a a a a 1.82 1.85 1.92 1.92 $1.88

Fat-free a a a a a a a a 1.82 1.83 1.90 1.90 $1.86

Cooperative 1.37 1.37 1.35 1.34 1.35 1.39 1.45 1.46 1.52 1.59 1.62 1.54 $1.45

Mailbox 1.18 1.16 1.18 1.19 1.26 1.27 1.32 1.37 1.42 1.35 1.18 1.12 $1.25

Page 114 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix V 

Data on the Average Monthly Retail,

Wholesale-, Cooperative-, and Farm-Level

Prices for Four Kinds of Fluid Milk in

Selected Markets

1997-98

Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Avg.

$2.55 $2.49 $2.56 $2.38 $2.45 $2.43 $2.41 $2.38 $2.44 $2.43 $2.52 $2.48 $2.54 $2.49 $2.47

2.35 2.19 2.28 2.22 2.20 2.32 2.20 2.25 2.23 2.30 2.31 2.39 2.40 2.37 $2.29

2.32 2.27 2.28 2.14 2.24 2.24 2.18 2.15 2.17 2.21 2.27 2.29 2.29 2.31 $2.24

2.41 2.34 2.40 2.33 2.24 2.37 2.32 2.34 2.35 2.43 2.43 2.38 2.47 2.46 $2.38

2.07 2.07 1.81 1.83 1.87 1.87 1.80 1.75 1.75 1.75 1.86 1.86 1.93 a $1.86

1.94 1.94 1.79 1.80 1.85 1.85 1.79 1.74 1.74 1.74 1.86 1.86 1.93 a $1.83

1.92 1.92 1.84 1.85 1.90 1.90 1.86 1.81 1.81 1.81 1.94 1.94 2.00 a $1.88

1.90 1.90 1.89 1.90 1.94 1.94 1.92 1.87 1.87 1.87 2.00 2.00 2.02 a $1.93

1.33 1.30 1.32 1.38 1.37 1.29 1.23 1.23 1.23 1.34 1.41 1.41 1.41 1.43 $1.33

1.14 1.17 1.17 1.09 1.04 1.01 1.01 1.11 1.16 1.21 1.27 1.27 1.25 1.26 $1.15

aData not available.

Note: For the Chicago, Ill., market, the farm price is the Chicago Regional mailbox price; the

cooperative price is the announced cooperative price for Chicago; the wholesale price is the

price charged by the commissary at the Great Lakes Naval Training Center; and the retail price is

the A.C. Nielsen price for the Chicago market. Prices may not average due to rounding.

Page 115 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix V 

Data on the Average Monthly Retail,

Wholesale-, Cooperative-, and Farm-Level

Prices for Four Kinds of Fluid Milk in

Selected Markets

Table V.6: Cincinnati, Ohio, Market Milk Prices Per Gallon—Retail and Wholesale Prices, and Announced Cooperative Class

I and Mailbox Prices (Both Unadjusted for Butterfat Content), 1996-February 1998

1996

Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Avg.

Retail

Whole $2.22 $2.37 $2.24 $2.41 $2.32 $2.39 $2.43 $2.42 $2.45 $2.34 $2.37 $2.40 $2.36

2% 2.20 2.33 2.20 2.37 2.27 2.35 2.41 2.39 2.40 2.30 2.33 2.37 $2.33

1% 2.24 2.34 2.24 2.38 2.27 2.35 2.44 2.43 2.41 2.27 2.32 2.34 $2.34

Fat-free 2.22 2.33 2.22 2.36 2.24 2.35 2.43 2.42 2.40 2.27 2.34 2.37 $2.33

Wholesale

Whole 1.89 2.09 1.98 1.98 a a 2.04 2.10 2.10 2.10 2.10 2.10 $2.05

2% 1.75 1.99 1.90 1.90 a a 1.96 1.96 1.96 1.96 1.96 1.99 $1.93

1% 1.69 1.95 1.81 1.81 a a 1.87 1.87 1.87 1.87 1.87 1.97 $1.86

Fat-free 1.67 1.98 1.79 1.79 a a 1.85 1.85 1.85 1.85 1.85 1.95 $1.84

Cooperative 1.34 1.34 1.33 1.32 1.33 1.40 1.46 1.47 1.53 1.57 1.61 1.50 $1.43

Mailbox 1.18 1.17 1.16 1.16 1.18 1.21 1.27 1.29 1.35 1.39 1.37 1.27 $1.25

Page 116 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix V 

Data on the Average Monthly Retail,

Wholesale-, Cooperative-, and Farm-Level

Prices for Four Kinds of Fluid Milk in

Selected Markets

1997-98

Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Avg.

$2.45 $2.39 $1.99 $1.57 $1.44 $1.43 $1.35 $1.15 $1.35 $1.48 $1.51 $1.52 $1.52 $1.47 $1.62

2.41 2.37 1.99 1.55 1.42 1.43 1.30 1.17 1.38 1.50 1.51 1.51 1.51 1.46 $1.61

2.40 2.37 1.97 1.54 1.36 1.37 1.27 1.21 1.37 1.50 1.54 1.53 1.51 1.47 $1.60

2.42 2.39 1.95 1.51 1.35 1.33 1.23 1.20 1.35 1.48 1.50 1.50 1.49 1.43 $1.58

1.90 1.90 1.90 1.90 1.90 1.95 1.95 1.95 1.95 1.95 2.05 2.10 2.15 2.15 $1.98

1.79 1.79 1.79 1.79 1.79 1.79 1.79 1.79 1.79 1.79 1.89 1.89 1.89 1.96 $1.82

1.77 1.77 1.77 1.77 1.77 1.79 1.79 1.79 1.79 1.79 1.89 1.89 1.89 1.90 $1.81

1.75 1.75 1.75 1.75 1.75 1.75 1.75 1.75 1.75 1.75 1.85 1.85 1.85 1.86 $1.78

1.31 1.29 1.34 1.37 1.36 1.30 1.23 1.27 1.28 1.38 1.44 1.45 1.45 1.47 $1.35

1.12 1.10 1.14 1.15 1.10 1.04 0.99 1.02 1.05 1.18 1.26 1.25 1.24 1.25 $1.14

aData not available.

Note: For the Cincinnati, Ohio, market, the farm price is the Ohio Valley mailbox price; the

cooperative price is the announced cooperative price for Cincinnati; the wholesale price is the

price charged by the commissary at the Wright Patterson Air Force Base; and the retail price is

the A.C. Nielsen price for the Cincinnati market. Prices may not average due to rounding.

Page 117 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix V 

Data on the Average Monthly Retail,

Wholesale-, Cooperative-, and Farm-Level

Prices for Four Kinds of Fluid Milk in

Selected Markets

Table V.7: Dallas, Tex., Market Milk Prices Per Gallon—Retail and Wholesale Prices, and Announced Cooperative Class I

and Mailbox Prices (Both Unadjusted for Butterfat Content), 1996-February 1998

1996

Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Avg.

Retail

Whole $2.21 $2.22 $2.21 $2.21 $2.24 $2.36 $2.36 $2.27 $2.38 $2.37 $2.40 $2.43 $2.30

2% 2.22 2.23 2.23 2.21 2.24 2.32 2.33 2.21 2.35 2.32 2.39 2.41 $2.29

1% 2.13 2.16 2.15 2.13 2.17 2.30 2.27 2.18 2.27 2.24 2.32 2.34 $2.22

Fat-free 2.23 2.22 2.21 2.19 2.21 2.37 2.34 2.19 2.34 2.29 2.37 2.39 $2.28

Wholesale

Whole a 2.03 2.03 2.09 2.09 2.23 2.23 2.19 2.19 2.19 2.19 2.19 $2.15

2% a 1.99 1.99 2.09 2.09 2.23 2.23 2.19 2.19 2.19 2.19 2.19 $2.14

1% a a 1.85 1.99 1.99 2.13 2.13 2.19 2.19 2.19 2.19 2.19 $2.10

Fat-free a a a a a a a a a a a 2.19 $2.19

Cooperative 1.40 1.40 1.38 1.37 1.38 1.50 1.51 1.52 1.56 1.60 1.64 1.53 $1.48

Mailbox 1.14 1.12 1.10 1.12 1.16 1.20 1.28 1.31 1.35 1.36 1.31 1.19 $1.22

Page 118 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix V 

Data on the Average Monthly Retail,

Wholesale-, Cooperative-, and Farm-Level

Prices for Four Kinds of Fluid Milk in

Selected Markets

1997-98

Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Avg.

$2.41 $2.35 $2.34 $2.36 $2.38 $2.34 $2.19 $2.16 $2.26 $2.47 $2.46 $2.51 $2.49 $2.54 $2.38

2.40 2.35 2.32 2.35 2.39 2.36 2.15 2.13 2.27 2.46 2.46 2.50 2.44 2.54 $2.36

2.32 2.33 2.29 2.32 2.34 2.32 2.12 2.14 2.22 2.40 2.43 2.45 2.43 2.48 $2.33

2.36 2.39 2.31 2.40 2.39 2.37 2.14 2.13 2.27 2.46 2.42 2.46 2.46 2.51 $2.36

2.19 2.17 2.17 2.17 2.17 2.17 2.17 2.17 2.17 2.34 2.40 2.40 2.40 2.40 $2.25

2.19 2.17 2.17 2.17 2.17 2.17 2.17 2.17 2.17 2.34 2.40 2.40 2.40 2.40 $2.25

2.19 2.17 2.17 2.17 2.17 2.17 2.17 2.17 2.17 2.34 2.40 2.40 2.40 2.40 $2.25

2.19 2.19 2.19 2.19 2.19 2.19 2.19 2.19 2.19 2.36 2.40 2.40 2.40 2.40 $2.26

1.35 1.32 1.35 1.36 1.37 1.28 1.21 1.22 1.23 1.40 1.45 1.42 1.41 1.44 $1.34

1.12 1.11 1.11 1.09 1.06 1.01 0.99 1.02 1.04 1.17 1.25 1.25 1.26 1.24 $1.12

aData not available.

Note: For the Dallas, Tex., market, the farm price is the Texas mailbox price; the cooperative price

is the announced cooperative price for Dallas; the wholesale price is the price charged by the

commissary at the Kelly Air Force Base; and the retail price is the A.C. Nielsen price for the Dallas

market. Prices may not average due to rounding.

Page 119 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix V 

Data on the Average Monthly Retail,

Wholesale-, Cooperative-, and Farm-Level

Prices for Four Kinds of Fluid Milk in

Selected Markets

Table V.8: Denver, Colo., Market Milk Prices Per Gallon—Retail and Wholesale Prices, and Announced Cooperative Class I

and Mailbox Prices (Both Unadjusted for Butterfat Content), 1996-February 1998

1996

Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Avg.

Retail

Whole $2.92 $2.88 $2.90 $2.88 $2.89 $2.85 $2.78 $2.57 $2.58 $2.58 $2.69 $2.74 $2.77

2% 2.47 2.42 2.61 2.60 2.66 2.35 2.41 2.34 2.34 2.35 2.53 2.54 $2.47

1% 2.47 2.52 2.56 2.55 2.54 2.57 2.46 2.44 2.37 2.39 2.52 2.56 $2.50

Fat-free 2.60 2.67 2.70 2.68 2.71 2.62 2.58 2.45 2.42 2.43 2.52 2.58 $2.58

Wholesale

Whole 1.92 1.92 1.85 1.85 1.85 1.85 1.85 1.92 1.98 2.00 2.08 2.00 $1.92

2% 1.84 1.84 1.80 1.80 1.80 1.80 1.80 1.85 1.88 1.90 1.98 1.91 $1.85

1% 1.77 1.77 1.77 1.77 1.77 1.77 1.77 1.80 1.79 1.80 1.89 1.85 $1.79

Fat-free 1.71 1.71 1.71 1.71 1.71 1.71 1.71 1.74 1.74 1.78 1.84 1.86 $1.74

Cooperative 1.40 1.41 1.39 1.38 1.39 1.42 1.48 1.44 1.49 1.53 1.57 1.46 $1.45

Mailbox 1.15 1.13 1.12 1.14 1.17 1.19 1.24 1.25 1.33 1.34 1.23 1.13 $1.20

Page 120 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix V 

Data on the Average Monthly Retail,

Wholesale-, Cooperative-, and Farm-Level

Prices for Four Kinds of Fluid Milk in

Selected Markets

1997-98

Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Avg.

$2.79 $2.81 $2.82 $2.79 $2.82 $2.82 $2.81 $2.81 $2.82 $2.88 $2.91 $2.94 $2.93 $2.92 $2.85

2.61 2.66 2.66 2.61 2.67 2.66 2.67 2.62 2.67 2.73 2.75 2.79 2.62 2.65 $2.67

2.61 2.65 2.64 2.56 2.64 2.64 2.67 2.63 2.64 2.68 2.72 2.76 2.72 2.67 $2.66

2.62 2.65 2.64 2.57 2.63 2.64 2.61 2.62 2.65 2.72 2.73 2.77 2.74 2.72 $2.67

1.83 1.79 1.84 1.90 1.89 1.81 1.74 1.74 1.75 1.86 1.93 1.93 1.93 1.96 $1.85

1.76 1.70 1.72 1.76 1.73 1.67 1.60 1.58 1.60 1.70 1.76 1.71 1.70 1.79 $1.70

1.80 1.69 1.65 1.65 1.62 1.57 1.50 1.50 1.52 1.60 1.66 1.56 1.54 1.67 $1.61

1.84 1.67 1.67 1.66 1.61 1.57 1.52 1.46 1.48 1.60 1.66 1.52 1.50 1.66 $1.60

1.25 1.22 1.27 1.32 1.32 1.23 1.17 1.17 1.18 1.29 1.35 1.35 1.36 1.39 $1.28

1.05 1.05 1.08 1.05 1.01 0.96 0.96 1.01 1.05 1.13 1.15 1.16 1.17 1.20 $1.07

Note: For the Denver, Colo., market, the farm price is the Eastern Colorado mailbox price; the

cooperative price is the announced cooperative price for Denver; the wholesale price is the price

charged by the commissary at the Fitzsimons U.S. Army Garrison; and the retail price is the A.C.

Nielsen price for the Denver market. Prices may not average due to rounding.

Page 121 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix V 

Data on the Average Monthly Retail,

Wholesale-, Cooperative-, and Farm-Level

Prices for Four Kinds of Fluid Milk in

Selected Markets

Table V.9: Houston, Tex., Market Milk Prices Per Gallon—Retail and Wholesale Prices, and Announced Cooperative Class I

and Mailbox Prices (Both Unadjusted for Butterfat Content), 1996-February 1998

1996

Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Avg.

Retail

Whole $2.17 $2.17 $2.16 $2.11 $2.09 $2.22 $2.23 $2.23 $2.22 $2.23 $2.27 $2.29 $2.20

2% 2.15 2.17 2.15 2.10 2.06 2.21 2.20 2.20 2.20 2.21 2.25 2.29 $2.18

1% 2.10 2.08 2.10 2.03 2.01 2.13 2.11 2.12 2.11 2.14 2.17 2.19 $2.11

Fat-free 2.15 2.16 2.15 2.10 2.05 2.21 2.19 2.20 2.19 2.21 2.25 2.29 $2.18

Wholesale

Whole a 2.03 2.03 2.09 2.09 2.23 2.23 2.19 2.19 2.19 2.19 2.19 $2.15

2% a 1.99 1.99 2.09 2.09 2.23 2.23 2.19 2.19 2.19 2.19 2.19 $2.14

1% a a 1.85 1.99 1.99 2.13 2.13 2.19 2.19 2.19 2.19 2.19 $2.10

Fat-free a a a a a a a a a a a 2.19 $2.19

Cooperative 1.44 1.45 1.43 1.42 1.42 1.54 1.56 1.57 1.61 1.65 1.69 1.58 $1.53

Mailbox 1.14 1.12 1.10 1.12 1.16 1.20 1.28 1.31 1.35 1.36 1.31 1.19 $1.22

Page 122 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix V 

Data on the Average Monthly Retail,

Wholesale-, Cooperative-, and Farm-Level

Prices for Four Kinds of Fluid Milk in

Selected Markets

1997-98

Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Avg.

$2.26 $2.22 $2.20 $2.18 $2.16 $2.14 $2.15 $2.14 $2.16 $2.24 $2.29 $2.25 $2.24 $2.22 $2.20

2.24 2.19 2.18 2.16 2.13 2.12 2.11 2.09 2.13 2.19 2.24 2.19 2.19 2.15 $2.17

2.18 2.14 2.13 2.11 2.09 2.10 2.10 2.08 2.11 2.18 2.23 2.18 2.18 2.13 $2.14

2.25 2.20 2.19 2.15 2.12 2.11 2.10 2.07 2.13 2.20 2.27 2.19 2.19 2.13 $2.16

2.19 2.17 2.17 2.17 2.17 2.17 2.17 2.17 2.17 2.34 2.40 2.40 2.40 2.40 $2.25

2.19 2.17 2.17 2.17 2.17 2.17 2.17 2.17 2.17 2.34 2.40 2.40 2.40 2.40 $2.25

2.19 2.17 2.17 2.17 2.17 2.17 2.17 2.17 2.17 2.34 2.40 2.40 2.40 2.40 $2.25

2.19 2.19 2.19 2.19 2.19 2.19 2.19 2.19 2.19 2.36 2.40 2.40 2.40 2.40 $2.26

1.39 1.37 1.39 1.41 1.41 1.32 1.26 1.26 1.27 1.44 1.50 1.46 1.45 1.48 $1.39

1.12 1.11 1.11 1.09 1.06 1.01 0.99 1.02 1.04 1.17 1.25 1.25 1.26 1.24 $1.12

aData not available.

Note: For the Houston, Tex., market, the farm price is the Texas mailbox price; the cooperative

price is the announced cooperative price for Houston; the wholesale price is the price charged by

the commissary at the Kelly Air Force Base; and the retail price is the A.C. Nielsen price for the

Houston market. Prices may not average due to rounding.

Page 123 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix V 

Data on the Average Monthly Retail,

Wholesale-, Cooperative-, and Farm-Level

Prices for Four Kinds of Fluid Milk in

Selected Markets

Table V.10: Kansas City, Mo., Market Milk Prices Per Gallon—Retail and Wholesale Prices, and Announced Cooperative

Class I and Blend Prices (Both Unadjusted for Butterfat Content), 1996-February 1998

1996

Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Avg.

Retail

Whole $2.51 $2.51 $2.50 $2.52 $2.51 $2.55 $2.62 $2.64 $2.71 $2.78 $2.81 $2.82 $2.62

2% 2.46 2.47 2.46 2.47 2.47 2.50 2.57 2.59 2.66 2.73 2.76 2.78 $2.58

1% 2.44 2.45 2.45 2.45 2.45 2.50 2.58 2.56 2.64 2.71 2.74 2.77 $2.56

Fat-free 2.38 2.39 2.40 2.41 2.41 2.43 2.49 2.52 2.57 2.62 2.65 2.71 $2.50

Wholesale

Whole a a a a 1.96 1.96 1.96 2.00 2.07 2.07 2.07 2.07 $2.02

2% a a a a 1.89 1.93 1.93 1.93 2.00 2.00 2.00 2.00 $1.96

1% a a a a 1.70 1.92 1.92 1.92 1.99 1.99 1.99 1.99 $1.93

Fat-free a a a a 1.85 1.90 1.90 1.90 1.97 1.97 1.97 1.97 $1.93

Cooperative 1.32 1.32 1.34 1.33 1.35 1.39 1.44 1.46 1.51 1.54 1.59 1.49 $1.42

K.C. Blend 1.18 1.18 1.17 1.17 1.18 1.18 1.23 1.27 1.32 1.37 1.33 1.27 $1.24

Page 124 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix V 

Data on the Average Monthly Retail,

Wholesale-, Cooperative-, and Farm-Level

Prices for Four Kinds of Fluid Milk in

Selected Markets

1997-98

Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Avg.

$2.80 $2.71 $2.70 $2.70 $2.70 $2.67 $2.61 $2.57 $2.60 $2.63 $2.65 $2.66 $2.66 $2.66 $2.67

2.75 2.69 2.67 2.67 2.67 2.63 2.58 2.53 2.54 2.56 2.59 2.62 2.62 2.62 $2.62

2.73 2.67 2.65 2.64 2.65 2.60 2.56 2.54 2.52 2.55 2.60 2.61 2.62 2.62 $2.61

2.67 2.60 2.60 2.58 2.58 2.54 2.50 2.47 2.46 2.50 2.53 2.56 2.56 2.57 $2.55

2.07 2.07 2.07 2.07 2.07 2.07 1.95 1.95 1.98 1.98 1.98 1.98 1.98 1.98 $2.01

2.05 2.05 2.05 2.05 2.05 2.05 1.93 1.93 1.93 1.93 1.93 1.93 1.93 1.93 $1.98

2.04 2.04 2.04 2.04 2.04 2.04 1.92 1.92 1.92 1.92 1.92 1.92 1.92 1.92 $1.97

2.03 2.03 2.03 2.03 2.03 2.03 1.91 1.91 1.91 1.91 1.91 1.91 1.91 1.91 $1.96

1.32 1.29 1.32 1.36 1.36 1.27 1.21 1.23 1.23 1.33 1.39 1.39 1.39 1.42 $1.32

1.11 1.07 1.12 1.15 1.16 1.04 1.01 1.02 1.02 1.14 1.19 1.21 1.21 1.23 $1.12

aData not available.

Note: For the Kansas City, Mo., market, the farm price is the Greater Kansas City Blend price

minus $.0602 per gallon for hauling costs and other fees; the cooperative price is the announced

cooperative price for Kansas City; the wholesale price is the price charged by the commissary at

Fort Leavenworth; and the retail price is the A.C. Nielsen price for the Kansas City market. Prices

may not average due to rounding.

Page 125 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix V 

Data on the Average Monthly Retail,

Wholesale-, Cooperative-, and Farm-Level

Prices for Four Kinds of Fluid Milk in

Selected Markets

Table V.11: Las Vegas, Nev., Market Milk Prices Per Gallon—Retail and Wholesale Prices, and Announced Cooperative

Class I and Mailbox Prices (Both Unadjusted for Butterfat Content), 1996-February 1998

1996

Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Avg.

Retail

Whole a $2.79 $2.78 $2.78 $2.78 $2.80 $2.81 $2.87 $2.87 $3.01 $2.91 $2.85 $2.84

2% a 2.77 2.77 2.78 2.77 2.81 2.82 2.86 2.86 3.02 2.89 2.85 $2.84

1% a 2.83 2.83 2.82 2.90 2.91 2.85 2.88 2.88 3.00 2.99 2.96 $2.90

Fat-free a 2.57 2.59 2.59 2.65 2.68 2.68 2.68 2.68 2.79 2.67 2.62 $2.65

Wholesale

Whole a a a a a a a a a 2.04 2.12 a $2.08

2% a a a a a a a a a 1.92 2.00 a $1.96

1% a a a a a a a a a 1.83 1.91 a $1.87

Fat-free a a a a a a a a a 1.77 1.84 a $1.81

Cooperative 1.26 1.26 1.25 1.23 1.25 1.28 1.33 1.35 1.40 1.44 1.47 1.37 $1.32

Mailbox 1.09 1.08 1.08 1.08 1.12 1.13 1.16 1.23 1.28 1.25 1.12 1.06 $1.14

Page 126 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix V 

Data on the Average Monthly Retail,

Wholesale-, Cooperative-, and Farm-Level

Prices for Four Kinds of Fluid Milk in

Selected Markets

1997-98

Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Avg.

$2.86 $2.76 $2.71 $2.79 $2.79 $2.68 $2.43 $2.43 $2.65 $2.81 $2.77 $2.83 $2.83 $2.79 $2.72

2.85 2.73 2.71 2.71 2.76 2.77 2.44 2.44 2.69 2.77 2.77 2.84 2.84 2.79 $2.72

2.98 2.86 2.85 2.85 2.81 2.63 2.76 2.76 2.75 2.89 2.95 2.97 2.97 2.79 $2.84

2.69 2.55 2.52 2.61 2.63 2.56 2.91 2.91 2.45 2.61 2.52 2.62 2.62 2.69 $2.64

a a a a a a a a a 2.17 2.23 2.23 2.23 2.28 $2.23

a a a a a a a a a 2.03 2.03 2.03 2.03 2.16 $2.06

a a a a a a a a a 1.96 2.02 2.02 2.02 2.07 $2.01

a a a a a a a a a 1.89 1.95 1.95 1.95 1.95 $1.94

1.15 1.13 1.18 1.22 1.22 1.13 1.07 1.07 1.08 1.19 1.25 1.25 1.26 1.29 $1.18

1.00 1.02 1.04 0.99 0.94 0.91 0.91 0.97 1.02 1.07 1.11 1.12 1.08 1.11 $1.02

aData not available.

Note: For the Las Vegas, Nev., market, the farm price is the Great Basin mailbox price; the

cooperative price is the estimated cooperative price (Salt Lake City cooperative price minus

$.0258 per gallon); the wholesale price is the price charged by the commissary at the Nellis Air

Force Base; and the retail price is the price reported by the state milk control agency for the Las

Vegas market. Prices may not average due to rounding.

Page 127 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix V 

Data on the Average Monthly Retail,

Wholesale-, Cooperative-, and Farm-Level

Prices for Four Kinds of Fluid Milk in

Selected Markets

Table V.12: Louisville, Ky., Market Milk Prices Per Gallon—Retail and Wholesale Prices, and Announced Cooperative Class

I and Mailbox Prices (Both Unadjusted for Butterfat Content), 1996-February 1998

1996

Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Avg.

Retail

Whole $2.18 $2.19 $2.17 $2.17 $2.18 $2.24 $2.33 $2.35 $2.38 $2.37 $2.41 $2.47 $2.29

2% 2.12 2.12 2.08 2.09 2.09 2.15 2.21 2.23 2.27 2.30 2.36 2.42 $2.20

1% 2.17 2.18 2.16 2.16 2.16 2.21 2.31 2.32 2.35 2.35 2.42 2.49 $2.27

Fat-free 2.13 2.14 2.11 2.11 2.11 2.17 2.26 2.28 2.30 2.31 2.38 2.46 $2.23

Wholesale

Whole 1.89 1.89 1.89 1.89 1.91 1.93 1.99 1.99 1.99 2.06 2.06 2.06 $1.96

2% 1.89 1.89 1.89 1.89 1.91 1.93 1.99 1.99 1.99 2.04 2.04 2.04 $1.96

1% 1.89 1.89 1.89 1.89 1.91 1.93 1.99 1.99 1.99 2.02 2.02 2.02 $1.95

Fat-free 1.89 1.89 1.89 1.89 1.92 1.93 1.99 1.99 1.99 2.01 2.01 2.01 $1.95

Cooperative 1.32 1.33 1.32 1.31 1.32 1.48 1.54 1.47 1.51 1.55 1.58 1.47 $1.43

Mailbox 1.18 1.18 1.17 1.15 1.18 1.24 1.31 1.32 1.37 1.42 1.42 1.31 $1.27

Page 128 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix V 

Data on the Average Monthly Retail,

Wholesale-, Cooperative-, and Farm-Level

Prices for Four Kinds of Fluid Milk in

Selected Markets

1997-98

Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Avg.

$2.47 $2.45 $2.42 $2.41 $2.38 $2.31 $2.28 $2.30 $2.22 $2.13 $2.06 $2.10 $2.16 $2.19 $2.28

2.42 2.39 2.37 2.35 2.32 2.23 2.20 2.21 2.11 2.05 1.96 2.00 2.07 2.08 $2.20

2.49 2.45 2.40 2.37 2.36 2.25 2.21 2.22 2.12 2.01 1.89 1.95 2.04 2.08 $2.20

2.47 2.43 2.38 2.34 2.32 2.22 2.18 2.17 2.08 1.98 1.87 1.91 2.02 2.05 $2.17

2.06 1.98 1.98 1.98 1.99 1.94 1.94 1.89 a a a a a a $1.97

2.04 1.94 1.94 1.94 1.99 1.94 1.94 1.89 a a a a a a $1.95

2.02 1.92 1.92 1.92 1.99 1.94 1.94 1.89 a a a a a a $1.94

2.01 1.94 1.94 1.94 1.99 1.94 1.94 1.89 a a a a a a $1.95

1.29 1.26 1.32 1.36 1.36 1.27 1.18 1.19 1.20 1.30 1.36 1.36 1.37 1.40 $1.30

1.14 1.13 1.17 1.15 1.16 1.09 1.03 1.04 1.07 1.18 1.25 1.24 1.26 1.29 $1.16

aData not available.

Note: For the Louisville, Ky., market, the farm price is the Louisville, Lexington, and Evansville

mailbox price; the cooperative price is the announced cooperative price for Louisville; the

wholesale price is the price charged by the commissary at Fort Knox; and the retail price is the

A.C. Nielsen price for the Louisville market. Prices may not average due to rounding.

Page 129 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix V 

Data on the Average Monthly Retail,

Wholesale-, Cooperative-, and Farm-Level

Prices for Four Kinds of Fluid Milk in

Selected Markets

Table V.13: Miami, Fla., Market Milk Prices Per Gallon—Retail and Wholesale Prices, and Announced Cooperative Class I

and Mailbox Prices (Both Unadjusted for Butterfat Content), 1996-February 1998

1996

Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Avg.

Retail

Whole $2.87 $2.88 $2.87 $2.88 $2.88 $3.08 $3.11 $3.06 $3.06 $3.09 $3.07 $3.11 $3.00

2% 2.90 2.92 2.91 2.92 2.93 3.13 3.15 3.10 3.09 3.14 3.15 3.15 $3.04

1% 2.73 2.74 2.74 2.74 2.74 2.94 2.96 2.96 2.97 3.02 3.03 3.03 $2.88

Fat-free 2.73 2.74 2.75 2.75 2.76 2.96 2.99 2.98 2.97 3.02 3.03 3.03 $2.89

Wholesale

Whole 2.45 2.45 2.45 2.45 2.45 2.45 2.45 2.51 2.51 2.51 2.56 2.56 $2.48

2% 2.45 2.45 2.45 2.45 2.45 2.45 2.45 2.51 2.51 2.51 2.56 2.56 $2.48

1% a a a a a a a a a a a a a

Fat-free a a a a a a a a a a a a a

Cooperative 1.60 1.60 1.58 1.57 1.58 1.70 1.76 1.82 1.86 1.90 1.90 1.83 $1.72

Mailbox 1.37 1.37 1.35 1.34 1.36 1.46 1.53 1.60 1.62 1.66 1.69 1.58 $1.49

Page 130 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix V 

Data on the Average Monthly Retail,

Wholesale-, Cooperative-, and Farm-Level

Prices for Four Kinds of Fluid Milk in

Selected Markets

1997-98

Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Avg.

$2.96 $2.95 $2.97 $2.96 $2.93 $2.91 $2.91 $2.92 $2.91 $2.98 $3.01 $3.00 $2.99 $2.99 $2.95

3.02 2.98 2.99 2.96 2.94 2.92 2.92 2.92 2.93 3.01 3.02 3.02 3.02 3.01 $2.98

2.89 2.85 2.85 2.81 2.80 2.78 2.79 2.78 2.79 2.87 2.88 2.87 2.88 2.87 $2.84

2.89 2.84 2.86 2.82 2.81 2.80 2.80 2.80 2.81 2.88 2.89 2.89 2.89 2.88 $2.85

2.56 2.56 2.56 2.56 2.56 2.56 2.56 2.56 2.56 2.56 2.56 2.56 2.56 2.56 $2.56

2.56 2.56 2.56 2.56 2.56 2.56 2.56 2.56 2.56 2.56 2.56 2.56 2.56 2.56 $2.56

a a a a a a a a a a a a a a a

a a a a a a a a a a a a a a a

1.66 1.66 1.63 1.63 1.60 1.60 1.52 1.52 1.56 1.65 1.71 1.71 1.68 1.71 $1.63

1.38 1.37 1.34 1.33 1.33 1.31 1.29 1.29 1.35 1.44 1.49 1.48 1.47 1.45 $1.38

aProduct not carried by the commissary surveyed.

Note: For the Miami, Fla., market, the farm price is the Florida mailbox price; the cooperative price

is the announced cooperative price for Miami; the wholesale price is the price charged by the

commissary at the Key West Naval Air Station; and the retail price is the A.C. Nielsen price for the

Miami market. Prices may not average due to rounding.

Page 131 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix V 

Data on the Average Monthly Retail,

Wholesale-, Cooperative-, and Farm-Level

Prices for Four Kinds of Fluid Milk in

Selected Markets

Table V.14: Milwaukee, Wis., Market Milk Prices Per Gallon—Retail and Wholesale Prices, and Announced Cooperative

Class I and Mailbox Prices (Both Unadjusted for Butterfat Content), 1996-February 1998

1996

Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Avg.

Retail

Whole $2.21 $2.33 $2.34 $2.31 $2.57 $2.58 $2.62 $2.60 $2.53 $2.44 $2.47 $2.46 $2.46

2% 2.00 2.11 2.17 2.07 2.28 2.23 2.26 2.27 2.28 2.21 2.27 2.27 $2.20

1% 1.97 2.11 2.18 2.06 2.33 2.22 2.27 2.30 2.33 2.26 2.28 2.29 $2.22

Fat-free 2.06 2.11 2.17 2.04 2.26 2.20 2.26 2.23 2.26 2.20 2.28 2.25 $2.19

Wholesale

Whole a a a a a a a a 1.93 2.00 2.07 2.07 $2.02

2% a a a a a a a a 1.83 1.87 1.94 1.94 $1.90

1% a a a a a a a a 1.82 1.85 1.92 1.92 $1.88

Fat-free a a a a a a a a 1.82 1.83 1.90 1.90 $1.86

Cooperative 1.36 1.36 1.35 1.34 1.35 1.38 1.44 1.45 1.51 1.58 1.61 1.53 $1.44

Mailbox 1.18 1.16 1.18 1.19 1.26 1.27 1.32 1.37 1.42 1.35 1.18 1.12 $1.25

Page 132 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix V 

Data on the Average Monthly Retail,

Wholesale-, Cooperative-, and Farm-Level

Prices for Four Kinds of Fluid Milk in

Selected Markets

1997-98

Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Avg.

$2.42 $2.40 $2.39 $2.38 $2.45 $2.43 $2.40 $2.33 $2.37 $2.43 $2.46 $2.49 $2.57 $2.63 $2.44

2.13 2.17 2.12 2.11 2.16 2.18 2.15 2.03 2.06 2.01 2.22 2.22 2.25 2.25 $2.15

2.14 2.19 2.12 2.15 2.19 2.23 2.18 2.03 2.05 2.03 2.24 2.21 2.21 2.22 $2.16

2.12 2.15 2.12 2.13 2.21 2.21 2.18 2.05 2.09 2.04 2.17 2.16 2.18 2.19 $2.14

2.07 2.07 1.81 1.83 1.87 1.87 1.80 1.75 1.75 1.75 1.86 1.86 1.93 a $1.86

1.94 1.94 1.79 1.80 1.85 1.85 1.79 1.74 1.74 1.74 1.86 1.86 1.93 a $1.83

1.92 1.92 1.84 1.85 1.90 1.90 1.86 1.81 1.81 1.81 1.94 1.94 2.00 a $1.88

1.90 1.90 1.89 1.90 1.94 1.94 1.92 1.87 1.87 1.87 2.00 2.00 2.02 a $1.93

1.32 1.30 1.31 1.37 1.36 1.29 1.22 1.22 1.22 1.34 1.40 1.40 1.40 1.43 $1.33

1.14 1.17 1.17 1.09 1.04 1.01 1.01 1.11 1.16 1.21 1.27 1.27 1.25 1.26 $1.15

aData not available.

Note: For the Milwaukee, Wis., market, the farm price is the Chicago Regional mailbox price; the

cooperative price is the announced cooperative price for Milwaukee; the wholesale price is the

price charged by the commissary at the Great Lakes Naval Training Center; and the retail price is

the A.C. Nielsen price for the Milwaukee market. Prices may not average due to rounding.

Page 133 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix V 

Data on the Average Monthly Retail,

Wholesale-, Cooperative-, and Farm-Level

Prices for Four Kinds of Fluid Milk in

Selected Markets

Table V.15: Minneapolis, Minn., Market Milk Prices Per Gallon—Retail and Wholesale Prices, and Announced Cooperative

Class I and Mailbox Prices (Both Unadjusted for Butterfat Content), 1996-February 1998

1996

Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Avg.

Retail

Whole $2.90 $2.90 $2.91 $2.91 $2.93 $2.96 $3.00 $3.00 $3.04 $3.05 $3.04 $3.03 $2.97

2% 2.87 2.87 2.86 2.87 2.90 2.91 2.96 2.96 3.00 3.00 3.00 3.00 $2.93

1% 2.81 2.80 2.80 2.81 2.84 2.86 2.89 2.87 2.90 2.94 2.96 2.99 $2.87

Fat-free 2.77 2.76 2.76 2.77 2.80 2.82 2.85 2.78 2.81 2.84 2.90 2.98 $2.82

Wholesale

Whole 2.18 2.22 2.24 2.22 2.22 2.25 2.31 2.37 2.37 2.44 2.51 2.55 $2.32

2% 2.08 2.16 2.19 2.18 2.19 2.22 2.27 2.31 2.27 2.32 2.39 2.43 $2.25

1% 2.03 2.13 2.18 2.17 2.19 2.22 2.27 2.28 2.20 2.23 2.30 2.34 $2.21

Fat-free 1.98 2.11 2.17 2.16 2.19 2.22 2.27 2.26 2.16 2.18 2.25 2.29 $2.19

Cooperative 1.27 1.28 1.28 1.27 1.29 1.34 1.39 1.41 1.47 1.51 1.56 1.45 $1.38

Mailbox 1.17 1.15 1.16 1.18 1.24 1.25 1.30 1.35 1.40 1.32 1.16 1.10 $1.23

Page 134 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix V 

Data on the Average Monthly Retail,

Wholesale-, Cooperative-, and Farm-Level

Prices for Four Kinds of Fluid Milk in

Selected Markets

1997-98

Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Avg.

$2.99 $2.96 $2.95 $2.98 $2.98 $2.92 $2.85 $2.86 $2.86 $2.92 $2.93 $2.93 $2.94 $2.94 $2.93

2.95 2.90 2.89 2.91 2.92 2.87 2.78 2.77 2.78 2.84 2.85 2.86 2.87 2.88 $2.86

2.93 2.88 2.87 2.88 2.89 2.85 2.75 2.74 2.75 2.80 2.82 2.83 2.85 2.86 $2.84

2.91 2.86 2.84 2.86 2.87 2.84 2.70 2.70 2.71 2.77 2.79 2.80 2.81 2.83 $2.81

2.18 1.98 1.96 1.96 2.02 2.02 1.95 1.89 1.89 1.89 2.00 2.06 2.06 2.10 $2.00

2.05 1.92 1.90 1.90 1.94 1.94 1.89 1.84 1.83 1.83 1.95 2.01 1.97 2.06 $1.93

1.95 1.90 1.88 1.88 1.90 1.90 1.86 1.81 1.79 1.79 1.91 1.97 1.89 2.02 $1.89

1.90 1.88 1.86 1.86 1.86 1.86 1.83 1.79 1.76 1.76 1.89 1.95 1.84 1.99 $1.86

1.28 1.26 1.26 1.30 1.30 1.21 1.15 1.17 1.17 1.27 1.33 1.33 1.33 1.36 $1.27

1.11 1.13 1.14 1.07 1.01 0.99 0.99 1.09 1.14 1.20 1.25 1.26 1.25 1.25 $1.13

Note: For the Minneapolis, Minn., market, the farm price is the Upper Midwest mailbox price; the

cooperative price is the announced cooperative price for Minneapolis; the wholesale price is the

price charged by the commissary at Fort McCoy; and the retail price is the A.C. Nielsen price for

the Minneapolis market. Prices may not average due to rounding.

Page 135 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix V 

Data on the Average Monthly Retail,

Wholesale-, Cooperative-, and Farm-Level

Prices for Four Kinds of Fluid Milk in

Selected Markets

Table V.16: New Hampshire Market Milk Prices Per Gallon—Retail and Wholesale Prices, and Announced Cooperative

Class I and Mailbox Prices (Both Unadjusted for Butterfat Content), 1996-February 1998

1996

Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Avg.

Retail

Whole $2.32 $2.30 $2.28 $2.29 $2.27 $2.30 $2.36 $2.34 $2.34 $2.38 $2.39 $2.38 $2.33

2% 2.22 2.21 2.20 2.22 2.17 2.22 2.27 2.25 2.20 2.24 2.23 2.27 $2.22

1% 2.15 2.19 2.12 2.17 2.18 2.17 2.19 2.16 2.17 2.16 2.21 2.22 $2.17

Fat-free 2.16 2.15 2.16 2.18 2.15 2.20 2.23 2.19 2.19 2.19 2.21 2.22 $2.19

Wholesale

Whole a a a a a a a a a a a a a

2% a a a a a a a a a a a a a

1% a a a a a a a a a a a a a

Fat-free a a a a a a a a a a a a a

Cooperative 1.44 1.44 1.42 1.41 1.42 1.45 1.51 1.53 1.57 1.61 1.65 1.58 $1.50

Mailbox 1.15 1.14 1.13 1.12 1.16 1.21 1.27 1.29 1.34 1.36 1.32 1.21 $1.23

Page 136 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix V 

Data on the Average Monthly Retail,

Wholesale-, Cooperative-, and Farm-Level

Prices for Four Kinds of Fluid Milk in

Selected Markets

1997-98

Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Avg.

$2.38 $2.37 $2.36 $2.38 $2.39 $2.40 $2.60 $2.60 $2.59 $2.55 $2.56 $2.58 $2.55 $2.54 $2.49

2.28 2.26 2.26 2.28 2.28 2.31 2.51 2.51 2.46 2.44 2.47 2.45 2.40 2.44 $2.38

2.20 2.18 2.19 2.18 2.21 2.19 2.40 2.39 2.38 2.35 2.37 2.36 2.33 2.36 $2.29

2.19 2.19 2.18 2.22 2.22 2.22 2.41 2.41 2.37 2.36 2.36 2.36 2.30 2.31 $2.29

a a a 1.98 1.98 1.98 2.18 2.18 2.18 2.18 2.18 2.18 2.18 2.18 $2.13

a a a 1.90 1.90 1.90 2.10 2.10 2.10 2.10 2.10 2.10 2.10 2.10 $2.05

a a a 1.84 1.84 1.84 2.04 2.04 2.04 2.04 2.04 2.04 2.04 2.04 $1.99

a a a 1.80 1.80 1.80 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 $1.95

1.36 1.34 1.39 1.43 1.44 1.35 1.54 1.52 1.50 1.50 1.50 1.50 1.50 1.50 $1.45

1.12 1.09 1.13 1.12 1.10 1.03 1.09 1.12 1.15 1.21 1.25 1.24 1.23 1.22 $1.15

aData not available.

Note: For the New Hampshire market, the farm price is the New England mailbox price; the

cooperative price is the estimated cooperative price (Boston cooperative price minus $.0129 per

gallon); the wholesale price is the price charged by the commissary at the Portsmouth Naval

Shipyard; and the retail price is the A.C. Nielsen price for the Boston market which includes

Rhode Island and parts of New Hampshire. Prices may not average due to rounding.

Page 137 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix V 

Data on the Average Monthly Retail,

Wholesale-, Cooperative-, and Farm-Level

Prices for Four Kinds of Fluid Milk in

Selected Markets

Table V.17: New Haven, Conn., Market Milk Prices Per Gallon—Retail and Wholesale Prices, and Announced Cooperative

Class I and Mailbox Prices (Both Unadjusted for Butterfat Content), 1996-February 1998

1996

Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Avg.

Retail

Whole $2.48 $2.45 $2.45 $2.48 $2.40 $2.47 $2.54 $2.55 $2.51 $2.51 $2.53 $2.54 $2.49

2% 2.31 2.34 2.32 2.35 2.33 2.40 2.45 2.43 2.24 2.31 2.32 2.48 $2.36

1% 2.28 2.27 2.26 2.22 2.27 2.27 2.27 2.25 2.30 2.23 2.34 2.41 $2.28

Fat-free 2.30 2.29 2.29 2.34 2.29 2.35 2.38 2.32 2.37 2.37 2.42 2.48 $2.35

Wholesale

Whole a a a 1.79 1.91 1.91 1.91 2.03 2.03 2.07 2.11 2.00 $1.97

2% a a a 1.75 1.87 1.87 1.87 1.89 1.89 1.93 1.97 1.86 $1.88

1% a a a 1.70 1.82 1.82 1.82 1.81 1.81 1.85 1.89 1.78 $1.81

Fat-free a a a 1.68 1.80 1.80 1.80 1.71 1.71 1.75 1.79 1.68 $1.75

Cooperative 1.44 1.44 1.43 1.42 1.42 1.46 1.52 1.53 1.58 1.62 1.65 1.58 $1.51

Mailbox 1.15 1.14 1.13 1.12 1.16 1.21 1.27 1.29 1.34 1.36 1.32 1.21 $1.23

Page 138 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix V 

Data on the Average Monthly Retail,

Wholesale-, Cooperative-, and Farm-Level

Prices for Four Kinds of Fluid Milk in

Selected Markets

1997-98

Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Avg.

$2.55 $2.54 $2.51 $2.53 $2.52 $2.51 $2.67 $2.70 $2.70 $2.68 $2.65 $2.67 $2.64 $2.68 $2.61

2.48 2.40 2.42 2.40 2.43 2.40 2.62 2.59 2.53 2.59 2.60 2.54 2.56 2.57 $2.51

2.33 2.33 2.36 2.32 2.34 2.31 2.54 2.53 2.51 2.49 2.44 2.49 2.58 2.44 $2.43

2.40 2.42 2.39 2.46 2.45 2.44 2.61 2.63 2.60 2.57 2.55 2.53 2.56 2.57 $2.51

1.78 1.76 1.81 1.85 1.85 1.76 1.95 1.95 1.95 1.95 1.95 1.95 1.95 1.95 $1.89

1.64 1.62 1.67 1.71 1.71 1.62 1.81 1.81 1.81 1.81 1.81 1.81 1.81 1.81 $1.75

1.56 1.54 1.59 1.63 1.63 1.54 1.73 1.73 1.73 1.73 1.73 1.73 1.73 1.73 $1.67

1.46 1.44 1.49 1.53 1.53 1.44 1.63 1.63 1.63 1.63 1.63 1.63 1.63 1.63 $1.57

1.37 1.34 1.39 1.44 1.44 1.35 1.55 1.53 1.51 1.50 1.50 1.50 1.50 1.50 $1.46

1.12 1.09 1.13 1.12 1.10 1.03 1.09 1.12 1.15 1.21 1.25 1.24 1.23 1.22 $1.15

aData not available.

Note: For the New Haven, Conn., market, the farm price is the New England mailbox price; the

cooperative price is the announced cooperative price for Hartford; the wholesale price is the

price charged by the commissary at the New London Naval Submarine Base; and the retail price

is the A.C. Nielsen price for the Hartford-New Haven market. Prices may not average due to

rounding.

Page 139 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix V 

Data on the Average Monthly Retail,

Wholesale-, Cooperative-, and Farm-Level

Prices for Four Kinds of Fluid Milk in

Selected Markets

Table V.18: New Orleans, La., Market Milk Prices Per Gallon—Retail and Wholesale Prices, and Announced Cooperative

Class I and Mailbox Prices (Both Unadjusted for Butterfat Content), 1996-February 1998

1996

Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Avg.

Retail

Whole $2.30 $2.36 $2.38 $2.37 $2.39 $2.50 $2.59 $2.60 $2.63 $2.65 $2.65 $2.66 $2.51

2% 2.30 2.35 2.37 2.36 2.39 2.51 2.59 2.59 2.61 2.59 2.61 2.62 $2.49

1% 2.22 2.26 2.29 2.28 2.29 2.41 2.51 2.55 2.56 2.56 2.56 2.53 $2.42

Fat-free 2.24 2.28 2.30 2.30 2.32 2.43 2.52 2.53 2.55 2.54 2.55 2.54 $2.43

Wholesale

Whole 2.20 2.20 2.20 2.20 2.24 2.38 2.44 2.46 2.26 2.34 a 2.30 $2.29

2% 2.20 2.20 2.20 2.20 2.24 2.38 2.44 2.46 2.24 2.32 a 2.28 $2.29

1% 2.20 2.20 2.20 2.20 2.24 2.38 2.44 2.46 2.22 2.30 a 2.26 $2.28

Fat-free 2.20 2.20 2.20 2.20 2.24 2.38 2.44 2.46 2.19 2.27 a 2.23 $2.27

Cooperative 1.45 1.45 1.42 1.40 1.42 1.54 1.52 1.55 1.60 1.65 1.65 1.57 $1.52

Mailbox 1.20 1.20 1.18 1.18 1.22 1.30 1.34 1.37 1.42 1.46 1.42 1.30 $1.30

Page 140 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix V 

Data on the Average Monthly Retail,

Wholesale-, Cooperative-, and Farm-Level

Prices for Four Kinds of Fluid Milk in

Selected Markets

1997-98

Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Avg.

$2.61 $2.56 $2.59 $2.62 $2.62 $2.58 $2.56 $2.55 $2.57 $2.69 $2.78 $2.78 $2.78 $2.77 $2.65

2.58 2.57 2.57 2.59 2.58 2.55 2.55 2.51 2.52 2.67 2.74 2.72 2.73 2.72 $2.61

2.51 2.53 2.54 2.54 2.49 2.50 2.50 2.48 2.49 2.63 2.72 2.70 2.71 2.70 $2.57

2.52 2.51 2.55 2.56 2.55 2.53 2.52 2.49 2.49 2.64 2.74 2.72 2.72 2.72 $2.59

2.26 2.25 a a 2.35 2.31 2.31 2.31 2.31 2.45 2.52 2.48 2.50 2.59 $2.39

2.26 2.25 a a 2.35 2.31 2.31 2.31 2.31 2.45 2.52 2.48 2.50 2.59 $2.39

2.26 2.25 a a 2.35 2.31 2.31 2.31 2.31 2.45 2.52 2.48 2.50 2.59 $2.39

2.23 2.22 a a 2.32 2.31 2.31 2.31 2.31 2.45 2.52 2.48 2.50 2.59 $2.38

1.42 1.41 1.42 1.42 1.43 1.32 1.26 1.26 1.27 1.44 1.50 1.50 1.51 1.54 $1.41

1.19 1.18 1.18 1.16 1.15 1.10 1.05 1.07 1.10 1.22 1.27 1.27 1.28 1.29 $1.18

aData not available.

Note: For the New Orleans, La., market, the farm price is the Southeast mailbox price; the

cooperative price is the announced cooperative price for New Orleans; the wholesale price is the

price charged by the commissary at the New Orleans Naval Air Station; and the retail price is the

A.C. Nielsen price for the New Orleans-Mobile market. Prices may not average due to rounding.

Page 141 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix V 

Data on the Average Monthly Retail,

Wholesale-, Cooperative-, and Farm-Level

Prices for Four Kinds of Fluid Milk in

Selected Markets

Table V.19: New York, N.Y., Market Milk Prices Per Gallon—Retail and Wholesale Prices, and Announced Cooperative Class

I and Mailbox Prices (Both Unadjusted for Butterfat Content), 1996-February 1998

1996

Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Avg.

Retail

Whole $2.54 $2.56 $2.56 $2.56 $2.55 $2.59 $2.64 $2.61 $2.67 $2.73 $2.79 $2.79 $2.63

2% 2.51 2.52 2.52 2.53 2.51 2.56 2.60 2.57 2.61 2.67 2.69 2.73 $2.59

1% 2.53 2.54 2.55 2.54 2.54 2.55 2.55 2.53 2.60 2.61 2.72 2.73 $2.58

Fat-free 2.55 2.58 2.56 2.57 2.54 2.51 2.58 2.53 2.63 2.65 2.73 2.76 $2.60

Wholesale

Whole 1.96 1.98 1.98 1.98 1.98 2.02 2.02 a a 2.08 2.14 2.14 $2.03

2% 1.93 2.00 2.00 2.00 2.00 2.04 2.04 a a 2.06 2.12 2.12 $2.03

1% a a a a a a a a a 2.06 2.12 2.12 $2.10

Fat-free 1.88 2.00 2.00 2.00 2.00 2.04 2.04 a a 2.05 2.11 2.11 $2.02

Cooperative 1.44 1.44 1.42 1.41 1.42 1.46 1.51 1.53 1.58 1.61 1.65 1.55 $1.50

Mailbox 1.16 1.14 1.13 1.13 1.18 1.21 1.27 1.29 1.35 1.35 1.27 1.18 $1.22

Page 142 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix V 

Data on the Average Monthly Retail,

Wholesale-, Cooperative-, and Farm-Level

Prices for Four Kinds of Fluid Milk in

Selected Markets

1997-98

Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Avg.

$2.70 $2.65 $2.66 $2.68 $2.65 $2.62 $2.58 $2.57 $2.57 $2.64 $2.68 $2.68 $2.70 $2.72 $2.65

2.63 2.53 2.56 2.62 2.63 2.57 2.56 2.54 2.53 2.61 2.63 2.64 2.66 2.67 $2.60

2.63 2.50 2.59 2.58 2.61 2.56 2.55 2.52 2.51 2.59 2.63 2.61 2.63 2.67 $2.58

2.62 2.59 2.57 2.65 2.60 2.61 2.55 2.55 2.51 2.61 2.64 2.62 2.66 2.62 $2.60

2.14 2.14 2.14 2.14 2.14 2.14 2.14 2.14 2.14 a a a a a $2.14

2.12 2.12 2.12 2.12 2.12 2.12 2.12 2.12 2.12 a a a a a $2.12

2.12 2.12 2.12 2.12 2.12 2.12 2.12 2.12 2.12 a a a a a $2.12

2.11 2.11 2.11 2.11 2.11 2.11 2.11 2.11 2.11 a a a a a $2.11

1.33 1.31 1.36 1.40 1.40 1.31 1.25 1.25 1.26 1.37 1.43 1.43 1.44 1.47 $1.36

1.08 1.09 1.12 1.10 1.06 1.01 0.99 1.04 1.08 1.17 1.22 1.22 1.21 1.23 $1.11

aData not available.

Note: For the New York, N.Y., market, the farm price is the New York-New Jersey mailbox price;

the cooperative price is the estimated cooperative price (New York Order Class I price plus

$.0602 per gallon); the wholesale price is the price charged by the commissary at the United

States Military Academy, West Point; and the retail price is the A.C. Nielsen price for the New York

market. Prices may not average due to rounding.

Page 143 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix V 

Data on the Average Monthly Retail,

Wholesale-, Cooperative-, and Farm-Level

Prices for Four Kinds of Fluid Milk in

Selected Markets

Table V.20: Orlando, Fla., Market Milk Prices Per Gallon—Retail and Wholesale Prices, and Announced Cooperative Class I

and Mailbox Prices (Both Unadjusted for Butterfat Content), 1996-February 1998

1996

Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Avg.

Retail

Whole $2.71 $2.72 $2.73 $2.73 $2.73 $2.97 $2.99 $2.98 $2.98 $3.03 $3.05 $3.02 $2.89

2% 2.71 2.71 2.71 2.72 2.73 2.98 2.99 2.96 2.96 3.03 3.05 3.01 $2.88

1% 2.62 2.61 2.62 2.63 2.64 2.87 2.88 2.87 2.87 2.97 3.00 2.98 $2.80

Fat-free 2.60 2.60 2.61 2.63 2.64 2.89 2.90 2.89 2.90 2.99 3.02 2.99 $2.80

Wholesale

Whole 2.36 2.36 2.35 2.35 2.36 2.44 2.44 2.45 2.49 2.49 2.53 2.45 $2.42

2% 2.28 2.28 2.27 2.27 2.28 2.36 2.36 2.37 2.42 2.42 2.46 2.38 $2.35

1% 2.21 2.21 2.20 2.20 2.21 2.29 2.29 2.30 2.35 2.35 2.39 2.31 $2.28

Fat-free 2.12 2.12 2.11 2.11 2.12 2.20 2.20 2.21 2.26 2.26 2.30 2.22 $2.19

Cooperative 1.51 1.51 1.50 1.48 1.49 1.61 1.67 1.73 1.78 1.82 1.82 1.75 $1.64

Mailbox 1.37 1.37 1.35 1.34 1.36 1.46 1.53 1.60 1.62 1.66 1.69 1.58 $1.49

Page 144 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix V 

Data on the Average Monthly Retail,

Wholesale-, Cooperative-, and Farm-Level

Prices for Four Kinds of Fluid Milk in

Selected Markets

1997-98

Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Avg.

$2.94 $2.91 $2.93 $2.85 $2.85 $2.85 $2.86 $2.85 $2.88 $2.91 $2.95 $2.95 $2.98 $2.96 $2.91

2.95 2.91 2.92 2.85 2.85 2.85 2.86 2.85 2.88 2.91 2.93 2.94 2.97 2.95 $2.90

2.90 2.86 2.88 2.80 2.80 2.80 2.80 2.79 2.82 2.86 2.88 2.89 2.92 2.90 $2.85

2.91 2.87 2.89 2.82 2.81 2.81 2.82 2.81 2.84 2.88 2.91 2.91 2.94 2.92 $2.87

2.30 2.30 2.30 2.40 a a a 2.34 2.40 2.49 2.56 a a a $2.39

2.31 2.31 2.31 2.41 a a a 2.35 2.41 2.50 2.57 a a a $2.40

2.31 2.31 2.31 2.41 a a a 2.35 2.41 2.50 2.57 a a a $2.40

2.22 2.22 2.22 2.32 a a a 2.26 2.32 2.41 2.48 a a a $2.31

1.57 1.57 1.54 1.54 1.51 1.51 1.43 1.43 1.48 1.56 1.62 1.62 1.60 1.62 $1.54

1.38 1.37 1.34 1.33 1.33 1.31 1.29 1.29 1.35 1.44 1.49 1.48 1.47 1.45 $1.38

aData not available.

Note: For the Orlando, Fla., market, the farm price is the Florida mailbox price; the cooperative

price is the estimated cooperative price (Miami cooperative price minus $.0860 per gallon); the

wholesale price is the price charged by the commissary at the Orlando Naval Training Center;

and the retail price is the A.C. Nielsen price for the Orlando market. Prices may not average due

to rounding.

Page 145 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix V 

Data on the Average Monthly Retail,

Wholesale-, Cooperative-, and Farm-Level

Prices for Four Kinds of Fluid Milk in

Selected Markets

Table V.21: Philadelphia, Pa., Market Milk Prices Per Gallon—Retail and Wholesale Prices, and Announced Cooperative

Class I and Mailbox Prices (Both Unadjusted for Butterfat Content), 1996-February 1998

1996

Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Avg.

Retail

Whole $2.55 $2.56 $2.55 $2.54 $2.55 $2.56 $2.62 $2.63 $2.66 $2.70 $2.74 $2.71 $2.61

2% 2.41 2.43 2.44 2.43 2.44 2.46 2.49 2.48 2.50 2.54 2.57 2.55 $2.48

1% 2.35 2.39 2.40 2.40 2.41 2.43 2.46 2.43 2.43 2.46 2.50 2.48 $2.43

Fat-free 2.27 2.33 2.35 2.35 2.36 2.39 2.39 2.33 2.32 2.34 2.39 2.38 $2.35

Wholesale

Whole 2.00 2.02 2.02 1.98 2.00 2.05 2.10 2.11 2.18 2.21 2.28 2.16 $2.09

2% 1.92 1.97 1.94 1.94 1.96 2.00 2.03 1.99 2.03 2.08 2.14 2.05 $2.00

1% 1.88 1.95 1.93 1.93 1.95 1.98 2.00 1.93 1.96 2.01 2.07 1.99 $1.97

Fat-free 1.81 1.91 1.88 1.89 1.91 1.94 1.94 1.82 1.85 1.90 1.96 1.96 $1.90

Cooperative 1.43 1.44 1.42 1.41 1.42 1.45 1.51 1.52 1.57 1.61 1.67 1.57 $1.50

Mailbox 1.17 1.14 1.11 1.10 1.15 1.24 1.30 1.33 1.38 1.36 1.34 1.23 $1.24

Page 146 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix V 

Data on the Average Monthly Retail,

Wholesale-, Cooperative-, and Farm-Level

Prices for Four Kinds of Fluid Milk in

Selected Markets

1997-98

Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Avg.

$2.62 $2.52 $2.52 $2.56 $2.58 $2.54 $2.50 $2.43 $2.44 $2.52 $2.60 $2.63 $2.62 $2.62 $2.55

2.46 2.39 2.40 2.43 2.43 2.39 2.34 2.32 2.32 2.39 2.47 2.46 2.45 2.49 $2.41

2.40 2.34 2.37 2.38 2.38 2.34 2.29 2.26 2.26 2.33 2.41 2.40 2.38 2.43 $2.36

2.34 2.30 2.29 2.30 2.27 2.26 2.22 2.18 2.17 2.26 2.33 2.30 2.27 2.33 $2.27

2.16 2.16 1.96 2.02 2.02 1.93 1.87 1.87 1.88 1.88 1.98 2.09 2.09 2.13 $2.00

2.05 2.05 1.90 1.93 1.93 1.85 1.79 1.77 1.79 1.79 1.89 1.96 1.96 2.02 $1.90

1.99 1.99 1.87 1.89 1.89 1.82 1.76 1.73 1.75 1.75 1.84 1.89 1.89 1.97 $1.86

1.96 1.96 1.82 1.82 1.82 1.75 1.70 1.64 1.67 1.67 1.77 1.78 1.78 1.89 $1.79

1.35 1.33 1.38 1.42 1.43 1.34 1.27 1.28 1.29 1.39 1.49 1.49 1.50 1.53 $1.39

1.10 1.10 1.13 1.12 1.09 1.05 1.01 1.03 1.07 1.19 1.26 1.24 1.21 1.25 $1.13

Note: For the Philadelphia, Pa., market, the farm price is the Middle Atlantic mailbox price; the

cooperative price is the announced cooperative price for Philadelphia; the wholesale price is the

price charged by the commissary at Carlisle Barracks; and the retail price is the A.C. Nielsen

price for the Philadelphia market. Prices may not average due to rounding.

Page 147 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix V 

Data on the Average Monthly Retail,

Wholesale-, Cooperative-, and Farm-Level

Prices for Four Kinds of Fluid Milk in

Selected Markets

Table V.22: Phoenix, Ariz., Market Milk Prices Per Gallon—Retail and Wholesale Prices, and Announced Cooperative Class

I and Blend Prices (Both Unadjusted for Butterfat Content), 1996-February 1998

1996

Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Avg.

Retail

Whole $2.25 $2.22 $2.28 $2.25 $2.23 $2.23 $2.22 $2.27 $2.25 $2.36 $2.40 $2.43 $2.28

2% 1.79 1.75 1.86 1.79 1.75 1.79 1.86 1.86 1.79 2.02 1.93 1.98 $1.85

1% 1.86 1.92 1.89 1.91 1.82 1.85 1.94 1.92 1.77 1.97 1.90 2.03 $1.90

Fat-free 1.86 1.93 1.93 1.92 1.85 1.93 1.98 1.96 1.79 2.02 1.91 2.06 $1.93

Wholesale

Whole a a a a a 1.77 1.84 a 1.93 2.01 1.91 1.91 $1.89

2% a a a a a 1.71 1.73 a 1.78 1.86 1.80 1.80 $1.78

1% a a a a a 1.67 1.67 a 1.69 1.77 1.73 1.73 $1.71

Fat-free a a a a a 1.63 1.63 a 1.61 1.69 1.67 1.67 $1.65

Cooperative 1.32 1.33 1.31 1.30 1.31 1.34 1.40 1.41 1.46 1.50 1.54 1.43 $1.39

Ariz. Blend 1.13 1.11 1.10 1.10 1.15 1.19 1.26 1.29 1.33 1.30 1.22 1.12 $1.19

Page 148 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix V 

Data on the Average Monthly Retail,

Wholesale-, Cooperative-, and Farm-Level

Prices for Four Kinds of Fluid Milk in

Selected Markets

1997-98

Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Avg.

$2.30 $2.21 $2.24 $2.23 $2.22 $2.21 $2.21 $2.13 $2.04 $2.24 $2.29 $2.29 $2.34 $2.24 $2.23

1.83 1.85 1.70 1.65 1.85 1.92 1.88 1.75 1.69 1.94 1.83 1.90 1.92 1.74 $1.82

1.81 1.91 1.72 1.61 1.87 1.91 1.92 1.75 1.74 1.94 1.86 1.92 2.00 1.77 $1.84

1.86 1.96 1.75 1.71 1.92 1.99 1.95 1.79 1.77 2.01 1.90 1.94 2.03 1.83 $1.89

1.75 1.75 1.80 1.85 1.85 1.77 1.71 1.71 1.73 1.73 1.90 1.91 1.92 a $1.80

1.70 1.70 1.75 1.77 1.77 1.71 1.66 1.65 1.66 1.78 1.84 1.79 1.79 a $1.73

1.72 1.72 1.77 1.77 1.77 1.73 1.68 1.66 1.68 1.80 1.86 1.77 1.76 a $1.75

1.67 1.67 1.72 1.72 1.72 1.69 1.64 1.61 1.63 1.75 1.82 1.70 1.68 a $1.69

1.21 1.19 1.24 1.29 1.29 1.20 1.14 1.14 1.15 1.25 1.32 1.32 1.33 1.36 $1.25

1.04 1.05 1.08 1.06 1.03 1.00 0.98 1.02 1.05 1.12 1.15 1.14 1.13 1.16 $1.07

aData not available.

Note: For the Phoenix, Ariz., market, the farm price is the Central Arizona Blend price minus

$.0602 per gallon for hauling costs and other fees; the cooperative price is the announced

cooperative price for Phoenix; the wholesale price is the price charged by the commissary at the

Luke Air Force Base; and the retail price is the A.C. Nielsen price for the Phoenix market. Prices

may not average due to rounding.

Page 149 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix V 

Data on the Average Monthly Retail,

Wholesale-, Cooperative-, and Farm-Level

Prices for Four Kinds of Fluid Milk in

Selected Markets

Table V.23: Raleigh, N.C., Market Milk Prices Per Gallon—Retail and Wholesale Prices, and Announced Cooperative Class I

and Mailbox Prices (Both Unadjusted for Butterfat Content), 1996-February 1998

1996

Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Avg.

Retail

Whole $2.44 $2.46 $2.47 $2.49 $2.51 $2.58 $2.64 $2.65 $2.65 $2.70 $2.69 $2.67 $2.58

2% 2.44 2.44 2.45 2.43 2.50 2.58 2.61 2.63 2.63 2.66 2.67 2.64 $2.56

1% 2.41 2.44 2.41 2.46 2.46 2.57 2.62 2.63 2.64 2.63 2.66 2.65 $2.55

Fat-free 2.39 2.45 2.44 2.47 2.47 2.52 2.57 2.56 2.54 2.58 2.62 2.65 $2.52

Wholesale

Whole 2.34 2.34 2.33 2.32 2.33 2.47 2.62 2.62 2.68 2.72 2.76 2.73 $2.52

2% 2.32 2.32 2.33 2.32 2.33 2.47 2.62 2.62 2.68 2.72 2.76 2.73 $2.52

1% 2.32 2.37 2.37 2.35 2.35 2.51 2.59 2.59 2.59 2.63 2.67 2.67 $2.50

Fat-free 2.17 2.25 2.25 2.19 2.19 2.36 2.44 2.39 2.39 2.44 2.49 2.49 $2.34

Cooperative 1.43 1.43 1.42 1.40 1.43 1.55 1.62 1.65 1.69 1.73 1.73 1.62 $1.56

Mailbox 1.27 1.27 1.24 1.23 1.27 1.35 1.41 1.44 1.50 1.54 1.53 1.41 $1.37

Page 150 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix V 

Data on the Average Monthly Retail,

Wholesale-, Cooperative-, and Farm-Level

Prices for Four Kinds of Fluid Milk in

Selected Markets

1997-98

Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Avg.

$2.67 $2.63 $2.65 $2.65 $2.63 $2.62 $2.57 $2.55 $2.59 $2.61 $2.62 $2.61 $2.58 $2.57 $2.61

2.62 2.60 2.62 2.59 2.60 2.60 2.52 2.48 2.57 2.57 2.61 2.57 2.55 2.55 $2.57

2.61 2.64 2.61 2.66 2.61 2.57 2.54 2.50 2.55 2.59 2.55 2.60 2.56 2.55 $2.58

2.58 2.62 2.52 2.59 2.56 2.57 2.49 2.47 2.54 2.60 2.54 2.60 2.54 2.55 $2.56

2.52 2.50 2.50 2.50 2.50 2.41 2.37 2.37 2.36 2.46 2.52 2.18 2.18 2.28 $2.40

2.52 2.50 2.50 2.50 2.50 2.41 2.37 2.37 2.36 2.46 2.52 2.15 2.15 2.25 $2.40

2.57 2.57 2.49 2.49 2.49 2.44 2.39 2.37 2.37 2.39 2.39 2.39 2.39 2.39 $2.44

2.49 2.49 2.44 2.39 2.39 2.35 2.30 2.27 2.27 2.39 2.39 2.39 2.09 2.25 $2.35

1.48 1.48 1.48 1.45 1.45 1.32 1.26 1.28 1.29 1.41 1.47 1.47 1.48 1.51 $1.42

1.29 1.27 1.25 1.24 1.24 1.16 1.13 1.13 1.14 1.27 1.33 1.32 1.33 1.38 $1.25

Note: For the Raleigh, N.C., market, the farm price is the Carolina mailbox price; the cooperative

price is the announced cooperative price for Charlotte; the wholesale price is the price charged

by the commissary at Camp Lejeune; and the retail price is the A.C. Nielsen price for the

Raleigh-Durham market. Prices may not average due to rounding.

Page 151 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix V 

Data on the Average Monthly Retail,

Wholesale-, Cooperative-, and Farm-Level

Prices for Four Kinds of Fluid Milk in

Selected Markets

Table V.24: Rhode Island Market Milk Prices Per Gallon—Retail and Wholesale Prices, and Announced Cooperative Class I

and Mailbox Prices (Both Unadjusted for Butterfat Content), 1996-February 1998

1996

Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Avg.

Retail

Whole $2.32 $2.30 $2.28 $2.29 $2.27 $2.30 $2.36 $2.34 $2.34 $2.38 $2.39 $2.38 $2.33

2% 2.22 2.21 2.20 2.22 2.17 2.22 2.27 2.25 2.20 2.24 2.23 2.27 $2.22

1% 2.15 2.19 2.12 2.17 2.18 2.17 2.19 2.16 2.17 2.16 2.21 2.22 $2.17

Fat-free 2.16 2.15 2.16 2.18 2.15 2.20 2.23 2.19 2.19 2.19 2.21 2.22 $2.19

Wholesale

Whole 1.82 1.92 1.92 1.92 1.91 1.91 2.01 2.01 2.01 2.01 2.01 2.01 $1.96

2% 1.76 1.86 1.86 1.86 1.85 1.85 1.94 1.94 1.94 1.94 1.94 1.94 $1.89

1% a a a a a a a a a a a a a

Fat-free a a a a a a a a a a a a a

Cooperative 1.45 1.45 1.44 1.42 1.43 1.47 1.53 1.54 1.59 1.63 1.66 1.59 $1.52

Mailbox 1.15 1.14 1.13 1.12 1.16 1.21 1.27 1.29 1.34 1.36 1.32 1.21 $1.23

Page 152 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix V 

Data on the Average Monthly Retail,

Wholesale-, Cooperative-, and Farm-Level

Prices for Four Kinds of Fluid Milk in

Selected Markets

1997-98

Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Avg.

$2.38 $2.37 $2.36 $2.38 $2.39 $2.40 $2.60 $2.60 $2.59 $2.55 $2.56 $2.58 $2.55 $2.54 $2.49

2.28 2.26 2.26 2.28 2.28 2.31 2.51 2.51 2.46 2.44 2.47 2.45 2.40 2.44 $2.38

2.20 2.18 2.19 2.18 2.21 2.19 2.40 2.39 2.38 2.35 2.37 2.36 2.33 2.36 $2.29

2.19 2.19 2.18 2.22 2.22 2.22 2.41 2.41 2.37 2.36 2.36 2.36 2.30 2.31 $2.29

1.81 1.79 1.84 1.88 1.88 1.79 1.98 1.98 1.98 1.98 1.98 1.98 1.98 1.98 $1.92

1.74 1.72 1.77 1.81 1.81 1.72 1.91 1.91 1.91 1.91 1.91 1.91 1.91 1.91 $1.85

a a a a a a a a a a a a a a a

a a a a a a a a a a a a a a a

1.37 1.35 1.40 1.45 1.45 1.36 1.55 1.54 1.51 1.51 1.51 1.51 1.51 1.51 $1.47

1.12 1.09 1.13 1.12 1.10 1.03 1.09 1.12 1.15 1.21 1.25 1.24 1.23 1.22 $1.15

aData not available.

Note: For the Rhode Island market, the farm price is the New England mailbox price; the

cooperative price is the announced cooperative price for Boston; the wholesale price is the price

charged by the commissary at the Newport Naval Education and Training Center; and the retail

price is the A.C. Nielsen price for the Boston market, which includes Rhode Island, and parts of

New Hampshire. Prices may not average due to rounding.

Page 153 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix V 

Data on the Average Monthly Retail,

Wholesale-, Cooperative-, and Farm-Level

Prices for Four Kinds of Fluid Milk in

Selected Markets

Table V.25: Richmond, Va., Market Milk Prices Per Gallon—Retail and Wholesale Prices, and Virginia Class I and Grade A

Prices (Both Unadjusted for Butterfat Content), 1996-February 1998

1996

Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Avg.

Retail

Whole $2.46 $2.44 $2.44 $2.46 $2.47 $2.53 $2.58 $2.59 $2.60 $2.61 $2.64 $2.65 $2.54

2% 2.48 2.46 2.45 2.47 2.49 2.55 2.60 2.60 2.60 2.62 2.66 2.66 $2.55

1% 2.44 2.46 2.44 2.47 2.48 2.53 2.57 2.57 2.58 2.58 2.62 2.65 $2.53

Fat-free 2.36 2.39 2.38 2.41 2.42 2.50 2.55 2.55 2.54 2.55 2.59 2.63 $2.49

Wholesale

Whole 2.01 2.03 2.02 2.00 2.01 2.06 2.14 2.12 2.14 2.18 2.20 2.12 $2.09

2% 1.97 1.99 1.97 1.97 1.98 2.03 2.10 2.03 2.06 2.11 2.13 2.09 $2.04

1% 1.92 1.96 1.94 1.94 1.95 2.00 2.06 1.97 2.02 2.07 2.09 2.08 $2.00

Fat-free 1.90 1.94 1.92 1.92 1.93 1.98 2.04 1.93 2.00 2.04 2.06 2.06 $1.98

Va. Class I 1.50 1.50 1.49 1.47 1.49 1.57 1.63 1.64 1.69 1.73 1.75 1.67 $1.59

Grade A 1.19 1.20 1.16 1.14 1.18 1.23 1.29 1.31 1.33 1.38 1.38 1.24 $1.25

Page 154 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix V 

Data on the Average Monthly Retail,

Wholesale-, Cooperative-, and Farm-Level

Prices for Four Kinds of Fluid Milk in

Selected Markets

1997-98

Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Avg.

$2.66 $2.65 $2.66 $2.65 $2.64 $2.65 $2.64 $2.65 $2.64 $2.66 $2.68 $2.65 $2.65 $2.66 $2.65

2.66 2.64 2.66 2.64 2.65 2.66 2.66 2.67 2.65 2.68 2.69 2.65 2.65 2.67 $2.66

2.64 2.62 2.63 2.63 2.62 2.62 2.64 2.66 2.61 2.66 2.65 2.62 2.62 2.63 $2.63

2.60 2.60 2.59 2.59 2.60 2.60 2.62 2.64 2.61 2.65 2.65 2.62 2.61 2.63 $2.62

2.02 2.02 2.05 2.07 2.05 1.99 1.96 1.96 1.98 2.09 2.16 2.16 2.16 2.19 $2.06

2.00 2.00 2.04 2.04 1.99 1.95 1.92 1.92 1.94 2.05 2.11 2.10 2.10 2.16 $2.02

1.99 1.99 2.03 2.04 1.99 1.95 1.94 1.93 1.95 2.05 2.11 2.09 2.09 2.15 $2.02

1.98 1.98 2.03 2.04 1.99 1.95 1.92 1.89 1.91 2.04 2.10 2.01 2.03 2.12 $2.00

1.47 1.47 1.49 1.52 1.50 1.41 1.35 1.36 1.37 1.48 1.54 1.56 1.57 1.60 $1.48

1.16 1.15 1.17 1.16 1.15 1.11 1.04 1.05 1.07 1.19 1.23 1.23 1.23 1.26 $1.16

Note: For the Richmond, Va., market, the farm price is based on data collected by the National

Agricultural Statistics Service on the Grade A price paid to farmers in this area, minus $.0602 per

gallon for hauling costs and other fees; the cooperative price is the Virginia State Order Class I

price; the wholesale price is the price charged by the commissary at Fort Lee; and the retail price

is the A.C. Nielsen price for the Richmond-Norfolk market. Prices may not average due to

rounding.

Page 155 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix V 

Data on the Average Monthly Retail,

Wholesale-, Cooperative-, and Farm-Level

Prices for Four Kinds of Fluid Milk in

Selected Markets

Table V.26: Sacramento, Calif., Market Milk Prices Per Gallon—Retail and Wholesale Prices, and California Class I and

Mailbox Prices (Both Unadjusted for Butterfat Content), 1996-February 1998

1996

Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Avg.

Retail

Whole $2.53 $2.56 $2.54 $2.58 $2.56 $2.59 $2.58 $2.71 $2.71 $2.82 $2.80 $2.88 $2.66

2% 2.36 2.35 2.37 2.41 2.39 2.42 2.44 2.54 2.56 2.63 2.64 2.68 $2.48

1% 2.56 2.60 2.62 2.65 2.65 2.67 2.70 2.83 2.78 2.87 2.87 2.93 $2.73

Fat-free 2.48 2.58 2.58 2.52 2.54 2.58 2.56 2.62 2.57 2.63 2.68 2.72 $2.59

Wholesale

Whole 1.86 1.86 1.86 a a a a a a 2.04 2.15 a $1.95

2% 1.87 1.87 1.87 a a a a a a 2.04 2.14 a $1.96

1% 1.87 1.87 1.87 a a a a a a 2.05 2.14 a $1.96

Fat-free a a a a a a a a a 1.86 1.92 a $1.89

Calif. Class I 1.30 1.31 1.31 1.27 1.27 1.29 1.29 1.41 1.41 1.51 1.51 1.53 $1.37

Mailbox 1.05 1.02 1.01 1.01 1.06 1.14 1.17 1.29 1.34 1.33 1.16 1.10 $1.14

Page 156 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix V 

Data on the Average Monthly Retail,

Wholesale-, Cooperative-, and Farm-Level

Prices for Four Kinds of Fluid Milk in

Selected Markets

1997-98

Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Avg.

$2.91 $2.75 $2.64 $2.62 $2.57 $2.52 $2.48 $2.46 $2.45 $2.68 $2.64 $2.68 $2.73 $2.73 $2.63

2.70 2.56 2.48 2.50 2.45 2.41 2.36 2.33 2.30 2.48 2.46 2.51 2.56 2.56 $2.48

2.93 2.81 2.74 2.72 2.65 2.58 2.54 2.51 2.49 2.64 2.62 2.74 2.82 2.80 $2.69

2.70 2.56 2.50 2.48 2.49 2.37 2.28 2.17 2.20 2.31 2.41 2.44 2.46 2.49 $2.42

a a a a a a a a a a 1.89 2.09 2.09 2.09 $2.04

a a a a a a a a a a 1.86 2.06 2.06 2.06 $2.01

a a a a a a a a a a 1.86 2.06 2.06 2.06 $2.01

a a a a a a a a a a 1.73 1.93 1.93 1.93 $1.88

1.53 1.23 1.23 1.23 1.23 1.14 1.14 1.07 1.07 1.24 1.24 1.27 1.27 1.30 $1.23

1.11 1.06 1.06 1.03 0.97 0.96 0.97 1.04 1.01 1.12 1.15 1.15 1.13 1.17 $1.07

aData not available.

Note: For the Sacramento, Calif., market, the farm price is the California mailbox price; the

cooperative price is the Northern California Class I price; the wholesale price is the price charged

by the commissary at the Stockton Naval Communications Station; and the retail price is the A.C.

Nielsen price for the Sacramento market. Prices may not average due to rounding.

Page 157 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix V 

Data on the Average Monthly Retail,

Wholesale-, Cooperative-, and Farm-Level

Prices for Four Kinds of Fluid Milk in

Selected Markets

Table V.27: Salt Lake City, Utah, Market Milk Prices Per Gallon—Retail and Wholesale Prices, and Announced Cooperative

Class I and Mailbox Prices (Both Unadjusted for Butterfat Content), 1996-February 1998

1996

Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Avg.

Retail

Whole $2.31 $2.32 $2.33 $2.30 $2.32 $2.40 $2.45 $2.47 $2.46 $2.48 $2.53 $2.56 $2.41

2% 2.06 2.07 2.04 1.98 2.04 2.13 2.13 2.16 2.13 2.17 2.26 2.27 $2.12

1% 1.93 2.00 1.97 1.94 2.04 2.01 2.08 1.99 1.96 2.03 2.20 2.13 $2.02

Fat-free 1.95 2.00 1.99 1.96 1.96 2.08 2.12 2.11 2.12 2.14 2.28 2.34 $2.09

Wholesale

Whole a a a a a a a a a 2.04 2.12 a $2.08

2% a a a a a a a a a 1.92 2.00 a $1.96

1% a a a a a a a a a 1.83 1.91 a $1.87

Fat-free a a a a a a a a a 1.77 1.84 a $1.80

Cooperative 1.28 1.29 1.27 1.26 1.27 1.30 1.36 1.37 1.42 1.46 1.50 1.39 $1.35

Mailbox 1.09 1.08 1.08 1.08 1.12 1.13 1.16 1.23 1.28 1.25 1.12 1.06 $1.14

Page 158 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix V 

Data on the Average Monthly Retail,

Wholesale-, Cooperative-, and Farm-Level

Prices for Four Kinds of Fluid Milk in

Selected Markets

1997-98

Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Avg.

$2.51 $2.47 $2.44 $2.43 $2.45 $2.41 $2.41 $2.39 $2.38 $2.47 $2.50 $2.50 $2.49 $2.49 $2.45

2.21 2.15 2.12 2.11 2.09 2.10 2.04 2.07 2.01 2.10 2.11 2.13 2.19 2.13 $2.11

2.17 2.03 2.09 2.02 2.06 2.00 2.00 2.03 2.03 2.17 2.13 2.17 2.10 2.15 $2.08

2.29 2.25 2.21 2.17 2.16 2.15 2.12 2.10 2.12 2.25 2.30 2.26 2.22 2.22 $2.20

a a a a a a a a a 2.17 2.23 2.23 2.23 2.28 $2.23

a a a a a a a a a 2.03 2.03 2.03 2.03 2.16 $2.06

a a a a a a a a a 1.96 2.02 2.02 2.02 2.07 $2.01

a a a a a a a a a 1.89 1.95 1.95 1.95 1.95 $1.94

1.17 1.15 1.20 1.25 1.25 1.16 1.10 1.10 1.11 1.21 1.28 1.28 1.29 1.32 $1.21

1.00 1.02 1.04 0.99 0.94 0.91 0.91 0.97 1.02 1.07 1.11 1.12 1.08 1.11 $1.02

aData not available.

Note: For the Salt Lake City, Utah, market, the farm price is the Great Basin mailbox price; the

cooperative price is the announced cooperative price for Salt Lake City; the wholesale price is the

price charged by the commissary at the Hill Air Force Base; and the retail price is the A.C.

Nielsen price for the Salt Lake City-Boise market. Prices may not average due to rounding.

Page 159 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix V 

Data on the Average Monthly Retail,

Wholesale-, Cooperative-, and Farm-Level

Prices for Four Kinds of Fluid Milk in

Selected Markets

Table V.28: San Diego, Calif., Market Milk Prices Per Gallon—Retail and Wholesale Prices, and California Class I and

Mailbox Prices (Both Unadjusted for Butterfat Content), 1996-February 1998

1996

Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Avg.

Retail

Whole $2.92 $2.99 $3.17 $3.20 $3.21 $3.23 $3.25 $3.35 $3.40 $3.25 $3.19 $3.23 $3.20

2% 2.75 2.80 2.99 2.97 3.03 3.00 3.05 3.17 3.19 3.09 3.05 3.09 $3.02

1% 3.16 3.19 3.34 3.37 3.37 3.40 3.45 3.57 3.63 3.51 3.48 3.50 $3.41

Fat-free 2.66 2.72 2.81 2.81 2.76 2.82 2.87 3.02 3.05 2.89 2.82 2.83 $2.84

Wholesale

Whole 2.35 2.25 2.27 2.29 2.34 2.36 2.39 a a a 2.57 2.59 $2.38

2% 2.35 2.23 2.25 2.27 2.34 2.36 2.39 a a a 2.57 2.59 $2.37

1% 2.35 2.25 2.27 2.27 2.34 2.36 2.39 a a a 2.57 2.59 $2.38

Fat-free 2.08 1.99 2.01 2.03 2.03 2.05 2.07 a a a 2.20 2.24 $2.08

Calif. Class I 1.32 1.33 1.33 1.29 1.29 1.31 1.31 1.43 1.43 1.53 1.53 1.55 $1.39

Mailbox 1.05 1.02 1.01 1.01 1.06 1.14 1.17 1.29 1.34 1.33 1.16 1.10 $1.14

Page 160 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix V 

Data on the Average Monthly Retail,

Wholesale-, Cooperative-, and Farm-Level

Prices for Four Kinds of Fluid Milk in

Selected Markets

1997-98

Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Avg.

$3.23 $2.99 $2.90 $2.88 $2.87 $2.83 $2.78 $2.78 $2.65 $2.88 $2.91 $2.89 $2.93 $2.92 $2.89

3.07 2.82 2.73 2.75 2.75 2.74 2.68 2.68 2.54 2.74 2.79 2.77 2.78 2.78 $2.76

3.50 3.34 3.24 3.20 3.18 3.12 3.05 3.03 2.95 3.13 3.17 3.21 3.12 2.99 $3.16

2.84 2.66 2.59 2.59 2.57 2.52 2.47 2.49 2.49 2.75 2.75 2.70 2.73 2.74 $2.63

2.59 2.33 2.33 2.37 2.33 2.24 2.24 2.19 2.19 2.37 2.37 2.39 2.28 2.32 $2.32

2.59 2.33 2.33 2.37 2.33 2.24 2.24 2.19 2.19 2.35 2.35 2.37 2.23 2.26 $2.31

2.59 2.33 2.33 2.37 2.33 2.24 2.24 2.19 2.19 2.34 2.34 2.31 2.18 2.21 $2.30

2.24 2.09 2.09 2.13 2.09 1.99 1.99 1.95 1.95 2.05 2.05 2.01 1.89 1.91 $2.03

1.55 1.25 1.25 1.25 1.25 1.16 1.16 1.10 1.10 1.26 1.26 1.30 1.30 1.33 $1.25

1.11 1.06 1.06 1.03 0.97 0.96 0.97 1.04 1.01 1.12 1.15 1.15 1.13 1.17 $1.07

aData not available.

Note: For the San Diego, Calif., market, the farm price is the California mailbox price; the

cooperative price is the Southern California Class I price; the wholesale price is the price charged

by the commissary at the San Diego Naval Station; and the retail price is the A.C. Nielsen price

for the San Diego market. Prices may not average due to rounding.

Page 161 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix V 

Data on the Average Monthly Retail,

Wholesale-, Cooperative-, and Farm-Level

Prices for Four Kinds of Fluid Milk in

Selected Markets

Table V.29: Seattle, Wash., Market Milk Prices Per Gallon—Retail and Wholesale Prices, and Announced Cooperative Class

I and Mailbox Prices (Both Unadjusted for Butterfat Content), 1996-February 1998

1996

Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Avg.

Retail

Whole $2.97 $2.96 $2.98 $3.00 $2.95 $3.01 $2.89 $3.07 $3.06 $3.04 $3.14 $3.16 $3.02

2% 1.94 1.98 2.01 2.01 1.98 1.90 2.00 2.10 2.13 2.13 2.15 2.06 $2.03

1% 2.64 2.67 2.59 2.56 2.69 2.56 2.56 2.50 2.56 2.73 2.85 2.77 $2.64

Fat-free 2.63 2.55 2.67 2.67 2.39 2.46 2.53 2.70 2.42 2.67 2.60 2.70 $2.58

Wholesale

Whole a a a a a a a 1.79 1.84 1.88 1.92 1.92 $1.87

2% a a a a a a a 1.61 1.66 1.70 1.74 1.74 $1.69

1% a a a a a a a 1.48 1.53 1.57 1.61 1.61 $1.56

Fat-free a a a a a a a 1.35 1.40 1.44 1.48 1.48 $1.43

Cooperative 1.31 1.31 1.30 1.28 1.28 1.31 1.37 1.39 1.44 1.47 1.51 1.40 $1.37

Mailbox 1.07 1.05 1.04 1.04 1.10 1.20 1.25 1.28 1.33 1.30 1.18 1.11 $1.16

Page 162 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix V 

Data on the Average Monthly Retail,

Wholesale-, Cooperative-, and Farm-Level

Prices for Four Kinds of Fluid Milk in

Selected Markets

1997-98

Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Avg.

$3.06 $2.99 $2.99 $2.94 $2.89 $2.91 $3.01 $2.86 $2.91 $1.89 $2.96 $3.00 $2.99 $2.88 $2.88

1.97 1.93 1.88 1.92 2.13 1.92 2.00 2.02 2.02 1.57 2.02 2.07 2.04 2.02 $1.97

2.71 2.62 2.50 2.53 2.64 2.44 2.34 2.45 2.27 1.59 2.17 2.26 2.28 2.23 $2.36

2.49 2.75 2.54 2.59 2.63 2.45 2.41 2.30 2.32 1.52 2.21 2.26 2.24 2.20 $2.35

1.70 1.68 1.73 1.77 1.77 1.68 1.62 1.62 1.63 1.73 1.79 1.79 1.80 1.83 $1.72

1.52 1.50 1.55 1.59 1.59 1.50 1.44 1.44 1.45 1.55 1.61 1.61 1.62 1.65 $1.54

1.39 1.37 1.42 1.46 1.46 1.37 1.31 1.31 1.32 1.42 1.48 1.48 1.49 1.52 $1.41

1.24 1.22 1.27 1.31 1.31 1.22 1.16 1.16 1.17 1.27 1.33 1.33 1.34 1.37 $1.26

1.19 1.16 1.22 1.26 1.26 1.17 1.12 1.12 1.13 1.23 1.30 1.30 1.31 1.34 $1.22

1.04 1.04 1.08 1.06 1.02 1.00 0.98 1.01 1.03 1.14 1.19 1.16 1.15 1.18 $1.08

aData not available.

Note: For the Seattle, Wash., market, the farm price is the Pacific Northwest mailbox price; the

cooperative price is the announced cooperative price for Seattle; the wholesale price is the price

charged by the commissary at the Everett Naval Station; and the retail price is the A.C. Nielsen

price for the Seattle market. Prices may not average due to rounding.

Page 163 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix V 

Data on the Average Monthly Retail,

Wholesale-, Cooperative-, and Farm-Level

Prices for Four Kinds of Fluid Milk in

Selected Markets

Table V.30: Vermont Market Milk Prices Per Gallon—Retail and Wholesale Prices, and Announced Cooperative Class I and

Mailbox Prices (Both Unadjusted for Butterfat Content), 1996-February 1998

1996

Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Avg.

Retail

Whole $2.61 $2.60 $2.61 $2.58 $2.57 $2.58 $2.57 $2.64 $2.63 $2.61 $2.61 $2.65 $2.61

2% 2.48 2.48 2.48 2.47 2.46 2.49 2.45 2.53 2.49 2.50 2.51 2.52 $2.49

1% 2.48 2.44 2.48 2.46 2.44 2.46 2.45 2.50 2.48 2.44 2.46 2.50 $2.47

Fat-free 2.38 2.36 2.44 2.38 2.36 2.37 2.37 2.44 2.44 2.39 2.38 2.44 $2.40

Wholesale

Whole a a a 1.82 1.81 1.81 1.81 1.94 1.94 1.94 1.94 1.94 $1.88

2% a a a 1.76 1.75 1.75 1.75 1.99 1.99 1.99 1.99 1.99 $1.88

1% a a a 1.76 1.75 1.75 1.75 1.98 1.98 1.98 1.98 1.98 $1.88

Fat-free a a a 1.72 1.71 1.71 1.71 1.93 1.93 1.93 1.93 1.93 $1.83

Cooperative 1.40 1.40 1.38 1.37 1.38 1.42 1.47 1.49 1.54 1.57 1.61 1.54 $1.46

Mailbox 1.15 1.14 1.13 1.12 1.16 1.21 1.27 1.29 1.34 1.36 1.32 1.21 $1.23

Page 164 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix V 

Data on the Average Monthly Retail,

Wholesale-, Cooperative-, and Farm-Level

Prices for Four Kinds of Fluid Milk in

Selected Markets

1997-98

Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Avg.

$2.64 $2.61 $2.57 $2.59 $2.59 $2.54 $2.74 $2.72 $2.70 $2.71 $2.72 $2.72 $2.72 $2.73 $2.66

2.55 2.49 2.48 2.48 2.49 2.47 2.63 2.61 2.62 2.64 2.67 2.65 2.65 2.63 $2.58

2.50 2.51 2.48 2.48 2.45 2.49 2.61 2.58 2.59 2.59 2.62 2.57 2.61 2.58 $2.55

2.46 2.43 2.39 2.41 2.37 2.45 2.58 2.55 2.58 2.57 2.60 2.55 2.55 2.55 $2.50

1.69 1.67 1.72 1.76 1.76 1.67 1.86 1.86 1.86 1.86 1.86 1.86 1.86 1.86 $1.80

1.74 1.72 1.77 1.81 1.81 1.72 1.91 1.91 1.91 1.91 1.91 1.91 1.91 1.91 $1.85

1.73 1.71 1.76 1.80 1.80 1.71 1.90 1.90 1.90 1.90 1.90 1.90 1.90 1.90 $1.84

1.68 1.66 1.71 1.75 1.75 1.66 1.85 1.85 1.85 1.85 1.85 1.85 1.85 1.85 $1.79

1.32 1.30 1.35 1.40 1.40 1.31 1.50 1.48 1.46 1.46 1.46 1.46 1.46 1.46 $1.42

1.12 1.09 1.13 1.12 1.10 1.03 1.09 1.12 1.15 1.21 1.25 1.24 1.23 1.22 $1.15

aData not available.

Note: For the Vermont market, the farm price is the New England mailbox price; the cooperative

price is the estimated cooperative price (Boston announced cooperative price minus $.0516 per

gallon); the wholesale price is the price charged by the commissary at the Hanscom Air Force

Base; and the retail price is the price reported by the state milk control agency for the Vermont

market. Prices may not average due to rounding.

Page 165 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix V 

Data on the Average Monthly Retail,

Wholesale-, Cooperative-, and Farm-Level

Prices for Four Kinds of Fluid Milk in

Selected Markets

Table V.31: Washington, D.C., Market Milk Prices Per Gallon—Retail and Wholesale Prices, and Announced Cooperative

Class I and Mailbox Prices (Both Unadjusted for Butterfat Content), 1996-February 1998

1996

Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Avg.

Retail

Whole $2.43 $2.49 $2.47 $2.48 $2.48 $2.47 $2.53 $2.53 $2.55 $2.55 $2.58 $2.59 $2.51

2% 2.41 2.46 2.44 2.45 2.47 2.45 2.49 2.49 2.50 2.49 2.52 2.52 $2.47

1% 2.40 2.48 2.47 2.47 2.48 2.45 2.49 2.47 2.48 2.47 2.50 2.50 $2.47

Fat-free 2.33 2.40 2.37 2.38 2.39 2.37 2.40 2.38 2.37 2.36 2.38 2.39 $2.38

Wholesale

Whole a a a a a a a 1.94 1.94 1.98 2.02 1.91 $1.96

2% a a a a a a a 1.86 1.86 1.90 1.94 1.83 $1.88

1% a a a a a a a a a a a a a

Fat-free a a a a a a a 1.74 1.74 1.78 1.82 1.71 $1.76

Cooperative 1.43 1.44 1.42 1.41 1.42 1.45 1.51 1.52 1.57 1.61 1.67 1.57 $1.50

Mailbox 1.17 1.14 1.11 1.10 1.15 1.24 1.30 1.33 1.38 1.36 1.34 1.23 $1.24

Page 166 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix V 

Data on the Average Monthly Retail,

Wholesale-, Cooperative-, and Farm-Level

Prices for Four Kinds of Fluid Milk in

Selected Markets

1997-98

Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Avg.

$2.51 $2.41 $2.48 $2.48 $2.49 $2.47 $2.44 $2.39 $2.40 $2.42 $2.43 $2.50 $2.42 $2.37 $2.44

2.46 2.37 2.43 2.43 2.44 2.42 2.40 2.36 2.35 2.38 2.39 2.44 2.40 2.44 $2.41

2.45 2.38 2.42 2.41 2.42 2.41 2.38 2.33 2.35 2.36 2.37 2.42 2.36 2.44 $2.39

2.36 2.29 2.31 2.31 2.33 2.33 2.29 2.26 2.27 2.27 2.27 2.32 2.30 2.36 $2.31

1.69 1.67 1.72 1.76 1.76 1.67 1.61 1.61 1.62 1.72 1.78 1.78 1.79 1.82 $1.71

1.61 1.59 1.64 1.68 1.68 1.59 1.53 1.53 1.54 1.64 1.70 1.70 1.71 1.74 $1.63

a a a a a a a a a a a a a a a

1.49 1.47 1.52 1.56 1.56 1.47 1.41 1.41 1.42 1.52 1.58 1.58 1.59 1.62 $1.51

1.35 1.33 1.38 1.42 1.42 1.33 1.27 1.27 1.28 1.39 1.48 1.49 1.50 1.53 $1.39

1.10 1.10 1.13 1.12 1.09 1.05 1.01 1.03 1.07 1.19 1.26 1.24 1.21 1.25 $1.13

aData not available.

Note: For the Washington, D.C., market, the farm price is the Middle Atlantic mailbox price; the

cooperative price is the announced cooperative price for Washington, D.C.; the wholesale price is

the price charged by the commissary at the Bolling Air Force Base; and the retail price is the A.C.

Nielsen price for the Washington, D.C. market. Prices may not average due to rounding.

Page 167 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix VI 

Alternative Farm-Level Price for Fluid Milk

This appendix provides the results of our analysis using an alternative

method for calculating farm-level prices for fluid milk. When we met with

USDA officials to obtain their comments on a draft of this report, officials

from the Economic Research Service (ERS) suggested an alternative

method by which we could better estimate the farm-level price of a gallon

of fluid milk compared with the mailbox price. These officials believe that

the farm value of fluid milk is better defined as the minimum order Class I

price minus the difference between the minimum order blend price and

the mailbox price. This methodology for an alternative farm-level price

assumes that all classes of milk are equally profitable to the cooperative at

the prevailing prices. ERS officials acknowledged that this is not the case in

some markets. Nevertheless, they believe that their recommended

approach may be the only practical method by which to determine the

farm-level value of fluid milk within the reporting timeframes. Because the

ERS method relies on the federal minimum order Class I price, we could

only apply it to those markets in our sample of 31 selected markets that

are under the federal milk marketing order program. Consequently, this

appendix provides data for only 24 of the 31 markets that we included in

our analysis in appendixes III and IV.

In comparing the results of the alternative farm-level price analysis to our

analysis using the mailbox price series we found the following:

• Using the alternative farm-level price, farmers received a greater portion

and cooperatives received a smaller portion of the retail price compared to

what they received under our analysis using the mailbox price series. We

found that by using the alternative farm-level price farmers, on average,

received 47 percent of the retail price for a gallon of 2-percent milk instead

of 43 percent, and cooperatives received 6 percent of the retail price

instead of 10 percent in the 24 markets from January 1996 through

February 1998.1

• Consistent with the results of our analysis using the mailbox price series

we found that farm prices decreased or stayed constant in all of the 24

markets over the 26-month period that we analyzed. Consequently, over

this period the farm-to-retail price spread increased in 22 of the 24

markets. However, as would be expected, we found that some of the

values changed, for increases or decreases in farm prices and the

farm-to-retail price spread over the 26-month period, when we used the

alternative farm price. For example, the farm-level prices in several

markets in the North Atlantic Region, such as Vermont and Boston, Mass.,

1

According to USDA officials, a portion of the amount received by cooperatives may be used to pay

costs, such as hauling, in some markets.

Page 168 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix VI 

Alternative Farm-Level Price for Fluid Milk

remained constant when we used the alternative farm-level price instead

of decreasing as they did when we used the mailbox price series. As a

result, when we used the alternative farm-level price the farm-to-retail

price spread in these markets was not as large as when we used the

mailbox price.

• Also, as in our mailbox price analysis, we found a strong correlation

between changes in prices at the farm-level and changes in cooperative

prices. (Using the alternative farm-level price, we found a strong

correlation between changes in farm prices and changes in cooperative

prices in all 24 markets whereas when we used mailbox prices we found a

strong correlation in 21 of the 24 markets.) However, the degree of

correlation was greater in almost all of the 24 markets when we used the

alternative farm-level price. Moreover, as would be expected, when we

used the alternative farm-level price the strongest correlation still

occurred between changes in prices at a given level in the milk marketing

chain and changes in prices at the adjacent level.

Table VI.1 through VI.4 present data for a gallon of 2-percent milk for

January 1996 through February 1998, using the ERS method to calculate the

alternative farm price. Specifically these tables detail (1) the farm value of

a gallon of 2-percent milk (see table VI.1), (2) the portion of the retail price

of a gallon of 2-percent milk that is received by farmers and cooperatives

(see table VI.2), (3) changes in farm and retail prices and their effect on

the price spread for 2-percent milk (see table VI.3), and (4) the way

changes in the alternative farm price are reflected in changes in prices at

the cooperative, wholesale, and retail levels (see table VI.4).

Page 169 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix VI 

Alternative Farm-Level Price for Fluid Milk

Table VI.1: Comparison of the Mailbox Price With the Alternative Farm Price for a Gallon of Milk Adjusted to Two Percent

Butterfat Content for Twenty-Four Markets, 1996-February 1998

1996

Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec.

Atlanta, Ga.

Alternative farm price $1.16 $1.19 $1.18 $1.16 $1.16 $1.15 $1.16 $1.19 $1.25 $1.31 $1.41 $1.31

Mailbox price 1.10 1.13 1.11 1.10 1.11 1.11 1.13 1.16 1.20 1.26 1.32 1.20

Difference $0.05 $0.06 $0.07 $0.06 $0.05 $0.04 $0.03 $0.03 $0.05 $0.05 $0.08 $0.11

Boston, Mass.

Alternative farm price $1.18 $1.21 $1.19 $1.17 $1.15 $1.10 $1.14 $1.15 $1.20 $1.28 $1.41 $1.30

Mailbox price 1.05 1.05 1.05 1.03 1.03 1.01 1.05 1.07 1.11 1.16 1.22 1.10

Difference $0.14 $0.15 $0.15 $0.14 $0.12 $0.09 $0.09 $0.08 $0.09 $0.12 $0.19 $0.20

Chicago, Ill.

Alternative farm price $1.17 $1.19 $1.18 $1.16 $1.17 $1.09 $1.13 $1.18 $1.21 $1.28 $1.40 $1.29

Mailbox price 1.07 1.08 1.09 1.10 1.13 1.06 1.10 1.15 1.19 1.14 1.07 1.01

Difference $0.10 $0.11 $0.09 $0.06 $0.04 $0.03 $0.03 $0.03 $0.02 $0.14 $0.33 $0.27

Cincinnati, Ohio

Alternative farm price $1.14 $1.16 $1.15 $1.13 $1.11 $1.07 $1.11 $1.13 $1.18 $1.25 $1.39 $1.29

Mailbox price 1.07 1.09 1.08 1.07 1.05 1.01 1.06 1.08 1.13 1.18 1.27 1.16

Difference $0.07 $0.07 $0.08 $0.07 $0.05 $0.06 $0.06 $0.05 $0.05 $0.07 $0.12 $0.13

Dallas, Tex.

Alternative farm price $1.19 $1.21 $1.20 $1.18 $1.17 $1.13 $1.18 $1.19 $1.22 $1.29 $1.40 $1.30

Mailbox price 1.04 1.04 1.02 1.03 1.05 1.02 1.08 1.10 1.14 1.18 1.21 1.09

Difference $0.15 $0.17 $0.18 $0.15 $0.12 $0.10 $0.10 $0.08 $0.09 $0.11 $0.19 $0.21

Denver, Colo.

Alternative farm price $1.17 $1.18 $1.17 $1.15 $1.13 $1.09 $1.13 $1.11 $1.19 $1.29 $1.39 $1.27

Mailbox price 1.04 1.05 1.04 1.05 1.05 0.99 1.03 1.03 1.11 1.15 1.13 1.03

Difference $0.13 $0.13 $0.13 $0.10 $0.08 $0.10 $0.10 $0.08 $0.08 $0.14 $0.25 $0.25

Houston, Tex.

Alternative farm price $1.19 $1.21 $1.20 $1.18 $1.17 $1.13 $1.18 $1.19 $1.22 $1.29 $1.40 $1.30

Mailbox price 1.04 1.04 1.02 1.03 1.05 1.02 1.08 1.10 1.14 1.18 1.21 1.09

Difference $0.15 $0.17 $0.18 $0.15 $0.12 $0.10 $0.10 $0.08 $0.09 $0.11 $0.19 $0.21

Las Vegas, Nev.

Alternative farm price $1.08 $1.10 $1.10 $1.07 $1.05 $1.01 $1.02 $1.06 $1.12 $1.19 $1.30 $1.18

Mailbox price 0.99 1.00 1.00 1.00 1.01 0.95 0.96 1.02 1.06 1.06 1.02 0.96

Difference $0.09 $0.11 $0.10 $0.07 $0.04 $0.06 $0.06 $0.05 $0.06 $0.13 $0.28 $0.23

Page 170 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix VI 

Alternative Farm-Level Price for Fluid Milk

1997-98

Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb.

26-

month

average

$1.13 $1.09 $1.10 $1.12 $1.13 $1.02 $0.95 $0.97 $0.99 $1.04 $1.06 $1.13 $1.15 $1.14 $1.14

1.08 1.04 1.03 1.03 1.03 0.95 0.90 0.94 0.96 1.00 1.01 1.08 1.10 1.09 $1.08

$0.05 $0.05 $0.07 $0.09 $0.10 $0.07 $0.05 $0.04 $0.03 $0.03 $0.05 $0.04 $0.05 $0.06 $0.06

$1.10 $1.02 $1.06 $1.13 $1.13 $1.01 $1.20 $1.20 $1.20 $1.14 $1.13 $1.20 $1.21 $1.16 $1.17

1.00 0.94 0.96 0.98 0.96 0.87 0.95 0.98 1.00 0.98 0.98 1.05 1.05 1.00 $1.02

$0.10 $0.09 $0.10 $0.15 $0.17 $0.14 $0.26 $0.23 $0.20 $0.16 $0.14 $0.15 $0.16 $0.16 $0.14

$1.07 $1.04 $1.05 $1.10 $1.10 $0.98 $0.93 $0.98 $1.00 $1.01 $1.07 $1.12 $1.14 $1.12 $1.12

1.01 1.01 1.00 0.94 0.90 0.85 0.86 0.96 1.00 0.97 1.00 1.07 1.08 1.04 $1.03

$0.06 $0.03 $0.05 $0.15 $0.21 $0.13 $0.07 $0.02 ($0.01) $0.03 $0.07 $0.05 $0.06 $0.08 $0.09

$1.05 $1.00 $1.03 $1.10 $1.09 $0.98 $0.92 $0.92 $0.94 $1.00 $1.06 $1.11 $1.13 $1.10 $1.10

1.00 0.95 0.97 1.01 0.98 0.89 0.84 0.88 0.90 0.95 0.99 1.05 1.06 1.03 $1.03

$0.06 $0.05 $0.06 $0.09 $0.11 $0.09 $0.07 $0.05 $0.04 $0.05 $0.07 $0.06 $0.07 $0.07 $0.07

$1.11 $1.06 $1.08 $1.14 $1.14 $1.01 $0.96 $0.97 $0.97 $1.05 $1.10 $1.17 $1.18 $1.16 $1.14

1.00 0.97 0.96 0.97 0.94 0.87 0.86 0.89 0.90 0.96 0.99 1.06 1.08 1.04 $1.02

$0.11 $0.09 $0.12 $0.17 $0.20 $0.15 $0.10 $0.07 $0.07 $0.09 $0.11 $0.10 $0.10 $0.12 $0.13

$1.04 $0.99 $1.03 $1.09 $1.08 $0.97 $0.93 $0.95 $0.96 $1.00 $1.00 $1.07 $1.12 $1.12 $1.10

0.93 0.91 0.92 0.92 0.88 0.81 0.81 0.88 0.91 0.91 0.89 0.97 1.01 1.00 $0.98

$0.11 $0.08 $0.11 $0.17 $0.20 $0.16 $0.12 $0.07 $0.05 $0.09 $0.11 $0.10 $0.11 $0.12 $0.12

$1.11 $1.06 $1.08 $1.14 $1.14 $1.01 $0.96 $0.97 $0.97 $1.05 $1.10 $1.17 $1.18 $1.16 $1.14

1.00 0.97 0.96 0.97 0.94 0.87 0.86 0.89 0.90 0.96 0.99 1.06 1.08 1.04 $1.02

$0.11 $0.09 $0.12 $0.17 $0.20 $0.15 $0.10 $0.07 $0.07 $0.09 $0.11 $0.10 $0.10 $0.12 $0.13

$0.95 $0.91 $0.94 $1.00 $1.00 $0.89 $0.85 $0.87 $0.90 $0.91 $0.94 $1.00 $0.99 $1.00 $1.02

0.88 0.88 0.88 0.86 0.82 0.76 0.76 0.83 0.88 0.85 0.85 0.93 0.91 0.91 $0.92

$0.07 $0.04 $0.07 $0.14 $0.18 $0.13 $0.09 $0.04 $0.01 $0.05 $0.08 $0.07 $0.08 $0.09 $0.09

(continued)

Page 171 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix VI 

Alternative Farm-Level Price for Fluid Milk

1996

Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec.

Louisville, Ky.

Alternative farm price $1.12 $1.15 $1.14 $1.11 $1.10 $1.08 $1.13 $1.14 $1.19 $1.27 $1.38 $1.27

Mailbox price 1.08 1.10 1.09 1.07 1.07 1.05 1.10 1.12 1.16 1.23 1.32 1.20

Difference $0.04 $0.05 $0.05 $0.04 $0.03 $0.03 $0.03 $0.02 $0.03 $0.04 $0.06 $0.06

Miami, Fla.

Alternative farm price $1.30 $1.36 $1.31 $1.27 $1.27 $1.30 $1.33 $1.40 $1.43 $1.51 $1.62 $1.54

Mailbox price 1.27 1.29 1.28 1.26 1.25 1.27 1.31 1.38 1.40 1.48 1.60 1.49

Difference $0.03 $0.06 $0.03 $0.01 $0.02 $0.03 $0.02 $0.02 $0.03 $0.03 $0.02 $0.05

Milwaukee, Wis.

Alternative farm price $1.17 $1.19 $1.18 $1.16 $1.17 $1.09 $1.13 $1.18 $1.21 $1.28 $1.40 $1.29

Mailbox price 1.07 1.08 1.09 1.10 1.13 1.06 1.10 1.15 1.19 1.14 1.07 1.01

Difference $0.10 $0.11 $0.09 $0.06 $0.04 $0.03 $0.03 $0.03 $0.02 $0.14 $0.33 $0.27

Minneapolis, Minn.

Alternative farm price $1.16 $1.18 $1.17 $1.14 $1.14 $1.07 $1.11 $1.14 $1.19 $1.24 $1.40 $1.27

Mailbox price 1.07 1.07 1.07 1.09 1.11 1.05 1.08 1.13 1.17 1.11 1.06 0.99

Difference $0.10 $0.11 $0.09 $0.06 $0.03 $0.03 $0.03 $0.01 $0.02 $0.13 $0.34 $0.28

New Hampshire

Alternative farm price $1.18 $1.21 $1.19 $1.17 $1.15 $1.10 $1.14 $1.15 $1.20 $1.28 $1.41 $1.30

Mailbox price 1.05 1.05 1.05 1.03 1.03 1.01 1.05 1.07 1.11 1.16 1.22 1.10

Difference $0.14 $0.15 $0.15 $0.14 $0.12 $0.09 $0.09 $0.08 $0.09 $0.12 $0.19 $0.20

New Haven, Conn.

Alternative farm price $1.18 $1.21 $1.19 $1.17 $1.15 $1.10 $1.14 $1.15 $1.20 $1.28 $1.41 $1.30

Mailbox price 1.05 1.05 1.05 1.03 1.03 1.01 1.05 1.07 1.11 1.16 1.22 1.10

Difference $0.14 $0.15 $0.15 $0.14 $0.12 $0.09 $0.09 $0.08 $0.09 $0.12 $0.19 $0.20

New Orleans, La.

Alternative farm price $1.16 $1.19 $1.18 $1.16 $1.16 $1.15 $1.16 $1.19 $1.25 $1.31 $1.41 $1.31

Mailbox price 1.10 1.13 1.11 1.10 1.11 1.11 1.13 1.16 1.20 1.26 1.32 1.20

Difference $0.05 $0.06 $0.07 $0.06 $0.05 $0.04 $0.03 $0.03 $0.05 $0.05 $0.08 $0.11

New York, N.Y.

Alternative farm price $1.19 $1.21 $1.19 $1.17 $1.16 $1.12 $1.15 $1.17 $1.22 $1.30 $1.42 $1.31

Mailbox price 1.05 1.06 1.05 1.04 1.05 1.02 1.06 1.08 1.13 1.15 1.17 1.07

Difference $0.14 $0.15 $0.14 $0.13 $0.10 $0.10 $0.10 $0.09 $0.09 $0.15 $0.25 $0.24

Orlando, Fla.

Alternative farm price $1.29 $1.31 $1.29 $1.27 $1.26 $1.29 $1.33 $1.39 $1.42 $1.51 $1.63 $1.54

Mailbox price 1.27 1.29 1.28 1.26 1.25 1.27 1.31 1.38 1.40 1.48 1.60 1.49

Difference $0.02 $0.02 $0.01 $0.01 $0.02 $0.02 $0.02 $0.01 $0.02 $0.03 $0.03 $0.05

Page 172 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix VI 

Alternative Farm-Level Price for Fluid Milk

1997-98

Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb.

26-

month

average

$1.05 $1.01 $1.04 $1.08 $1.09 $0.97 $0.91 $0.93 $0.95 $0.99 $1.03 $1.09 $1.12 $1.11 $1.09

1.02 0.98 1.01 1.02 1.04 0.93 0.88 0.90 0.93 0.96 0.98 1.05 1.08 1.07 $1.06

$0.03 $0.03 $0.03 $0.06 $0.05 $0.03 $0.03 $0.03 $0.02 $0.03 $0.04 $0.04 $0.04 $0.04 $0.04

$1.31 $1.27 $1.23 $1.24 $1.23 $1.19 $1.17 $1.17 $1.21 $1.24 $1.28 $1.32 $1.33 $1.28 $1.31

1.27 1.24 1.19 1.20 1.20 1.15 1.14 1.15 1.20 1.22 1.25 1.30 1.30 1.25 $1.28

$0.04 $0.03 $0.04 $0.04 $0.03 $0.04 $0.02 $0.02 $0.01 $0.02 $0.03 $0.02 $0.03 $0.03 $0.03

$1.07 $1.04 $1.05 $1.10 $1.10 $0.98 $0.93 $0.98 $1.00 $1.01 $1.07 $1.12 $1.14 $1.12 $1.12

1.01 1.01 1.00 0.94 0.90 0.85 0.86 0.96 1.00 0.97 1.00 1.07 1.08 1.04 $1.03

$0.06 $0.03 $0.05 $0.15 $0.21 $0.13 $0.07 $0.02 ($0.01) $0.03 $0.07 $0.05 $0.06 $0.08 $0.09

$1.04 $0.98 $1.01 $1.08 $1.08 $0.96 $0.91 $0.94 $0.97 $0.99 $1.05 $1.12 $1.13 $1.12 $1.10

0.98 0.98 0.97 0.92 0.87 0.83 0.84 0.94 0.99 0.96 0.98 1.07 1.07 1.03 $1.02

$0.06 $0.01 $0.04 $0.16 $0.21 $0.13 $0.07 $0.00 ($0.01) $0.03 $0.07 $0.05 $0.06 $0.08 $0.08

$1.10 $1.02 $1.06 $1.13 $1.13 $1.01 $1.20 $1.20 $1.20 $1.14 $1.13 $1.20 $1.21 $1.16 $1.17

1.00 0.94 0.96 0.98 0.96 0.87 0.95 0.98 1.00 0.98 0.98 1.05 1.05 1.00 $1.02

$0.10 $0.09 $0.10 $0.15 $0.17 $0.14 $0.26 $0.23 $0.20 $0.16 $0.14 $0.15 $0.16 $0.16 $0.14

$1.10 $1.02 $1.06 $1.13 $1.13 $1.01 $1.20 $1.20 $1.20 $1.14 $1.13 $1.20 $1.21 $1.16 $1.17

1.00 0.94 0.96 0.98 0.96 0.87 0.95 0.98 1.00 0.98 0.98 1.05 1.05 1.00 $1.02

$0.10 $0.09 $0.10 $0.15 $0.17 $0.14 $0.26 $0.23 $0.20 $0.16 $0.14 $0.15 $0.16 $0.16 $0.14

$1.13 $1.09 $1.10 $1.12 $1.13 $1.02 $0.95 $0.97 $0.99 $1.04 $1.06 $1.13 $1.15 $1.14 $1.14

1.08 1.04 1.03 1.03 1.03 0.95 0.90 0.94 0.96 1.00 1.01 1.08 1.10 1.09 $1.08

$0.05 $0.05 $0.07 $0.09 $0.10 $0.07 $0.05 $0.04 $0.03 $0.03 $0.05 $0.04 $0.05 0.06 $0.06

$1.08 $1.03 $1.07 $1.14 $1.15 $1.02 $0.97 $0.97 $0.99 $1.03 $1.08 $1.14 $1.16 $1.15 $1.14

0.96 0.94 0.96 0.96 0.93 0.85 0.84 0.89 0.93 0.94 0.96 1.03 1.04 1.02 $1.01

$0.12 $0.09 $0.12 $0.18 $0.21 $0.17 $0.12 $0.08 $0.06 $0.10 $0.12 $0.11 $0.12 $0.13 $0.13

$1.29 $1.26 $1.22 $1.24 $1.23 $1.19 $1.16 $1.17 $1.21 $1.24 $1.28 $1.31 $1.32 $1.26 $1.30

1.27 1.24 1.19 1.20 1.20 1.15 1.14 1.15 1.20 1.22 1.25 1.30 1.30 1.25 $1.28

$0.02 $0.02 $0.03 $0.04 $0.02 $0.04 $0.01 $0.02 $0.01 $0.02 $0.03 $0.01 $0.02 $0.01 $0.02

(continued)

Page 173 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix VI 

Alternative Farm-Level Price for Fluid Milk

1996

Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec.

Philadelphia, Pa.

Alternative farm price $1.21 $1.23 $1.22 $1.19 $1.18 $1.14 $1.16 $1.19 $1.24 $1.28 $1.44 $1.33

Mailbox price 1.06 1.06 1.02 1.01 1.03 1.04 1.08 1.11 1.16 1.16 1.24 1.12

Difference $0.15 $0.18 $0.20 $0.19 $0.14 $0.09 $0.09 $0.08 $0.08 $0.12 $0.20 $0.21

Raleigh, N.C.

Alternative farm price $1.20 $1.23 $1.22 $1.19 $1.19 $1.21 $1.23 $1.26 $1.33 $1.39 $1.49 $1.37

Mailbox price 1.16 1.19 1.16 1.15 1.16 1.16 1.19 1.22 1.28 1.35 1.43 1.30

Difference $0.04 $0.04 $0.06 $0.05 $0.04 $0.05 $0.03 $0.04 $0.05 $0.04 $0.06 $0.07

Rhode Island

Alternative farm price $1.18 $1.21 $1.19 $1.17 $1.15 $1.10 $1.14 $1.15 $1.20 $1.28 $1.41 $1.30

Mailbox price 1.05 1.05 1.05 1.03 1.03 1.01 1.05 1.07 1.11 1.16 1.22 1.10

Difference $0.14 $0.15 $0.15 $0.14 $0.12 $0.09 $0.09 $0.08 $0.09 $0.12 $0.19 $0.20

Salt Lake City, Utah

Alternative farm price $1.08 $1.10 $1.10 $1.07 $1.05 $1.01 $1.02 $1.06 $1.12 $1.19 $1.30 $1.18

Mailbox price 0.99 1.00 1.00 1.00 1.01 0.95 0.96 1.02 1.06 1.06 1.02 0.96

Difference $0.09 $0.11 $0.10 $0.07 $0.04 $0.06 $0.06 $0.05 $0.06 $0.13 $0.28 $0.23

Seattle, Wash.

Alternative farm price $1.13 $1.15 $1.14 $1.11 $1.10 $1.05 $1.09 $1.11 $1.17 $1.24 $1.36 $1.25

Mailbox price 0.97 0.97 0.96 0.96 0.99 1.01 1.04 1.06 1.11 1.11 1.08 1.00

Difference $0.16 $0.18 $0.18 $0.16 $0.11 $0.04 $0.04 $0.04 $0.06 $0.13 $0.29 $0.25

Vermont

Alternative farm price $1.18 $1.21 $1.19 $1.17 $1.15 $1.10 $1.14 $1.15 $1.20 $1.28 $1.41 $1.30

Mailbox price 1.05 1.05 1.05 1.03 1.03 1.01 1.05 1.07 1.11 1.16 1.22 1.10

Difference $0.14 $0.15 $0.15 $0.14 $0.12 $0.09 $0.09 $0.08 $0.09 $0.12 $0.19 $0.20

Washington, D.C.

Alternative farm price $1.21 $1.23 $1.22 $1.19 $1.18 $1.14 $1.16 $1.19 $1.24 $1.28 $1.44 $1.33

Mailbox price 1.06 1.06 1.02 1.01 1.03 1.04 1.08 1.11 1.16 1.16 1.24 1.12

Difference $0.15 $0.18 $0.20 $0.19 $0.14 $0.09 $0.09 $0.08 $0.08 $0.12 $0.20 $0.21

Page 174 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix VI 

Alternative Farm-Level Price for Fluid Milk

1997-98

Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb.

26-

month

average

$1.10 $1.05 $1.09 $1.15 $1.16 $1.04 $0.98 $0.99 $1.00 $1.05 $1.10 $1.17 $1.18 $1.18 $1.16

0.98 0.95 0.97 0.99 0.96 0.90 0.86 0.89 0.93 0.97 0.99 1.04 1.03 1.03 $1.02

$0.12 $0.10 $0.12 $0.17 $0.20 $0.14 $0.11 $0.09 $0.08 $0.09 $0.10 $0.12 $0.15 $0.14 $0.13

$1.20 $1.17 $1.16 $1.17 $1.18 $1.06 $1.02 $1.03 $1.03 $1.07 $1.11 $1.17 $1.20 $1.21 $1.19

1.17 1.12 1.10 1.11 1.11 1.00 0.98 0.99 1.00 1.04 1.06 1.13 1.16 1.16 $1.15

$0.03 $0.04 $0.06 $0.06 $0.07 $0.06 $0.04 $0.04 $0.03 $0.03 $0.05 $0.04 $0.04 $0.04 $0.05

$1.10 $1.02 $1.06 $1.13 $1.13 $1.01 $1.20 $1.20 $1.20 $1.14 $1.13 $1.20 $1.21 $1.16 $1.17

1.00 0.94 0.96 0.98 0.96 0.87 0.95 0.98 1.00 0.98 0.98 1.05 1.05 1.00 $1.02

$0.10 $0.09 $0.10 $0.15 $0.17 $0.14 $0.26 $0.23 $0.20 $0.16 $0.14 $0.15 $0.16 $0.16 $0.14

$0.95 $0.91 $0.94 $1.00 $1.00 $0.89 $0.85 $0.87 $0.90 $0.91 $0.94 $1.00 $0.99 $1.00 $1.02

0.88 0.88 0.88 0.86 0.82 0.76 0.76 0.83 0.88 0.85 0.85 0.93 0.91 0.91 $0.92

$0.07 $0.04 $0.07 $0.14 $0.18 $0.13 $0.09 $0.04 $0.01 $0.05 $0.08 $0.07 $0.08 $0.09 $0.09

$1.02 $0.95 $0.99 $1.07 $1.07 $0.95 $0.90 $0.91 $0.91 $0.97 $1.01 $1.07 $1.09 $1.08 $1.07

0.92 0.89 0.92 0.93 0.89 0.85 0.83 0.86 0.88 0.91 0.94 0.97 0.97 0.97 $0.96

$0.10 $0.05 $0.07 $0.14 $0.18 $0.10 $0.07 $0.05 $0.03 $0.05 $0.08 $0.10 $0.12 $0.11 $0.11

$1.10 $1.02 $1.06 $1.13 $1.13 $1.01 $1.20 $1.20 $1.20 $1.14 $1.13 $1.20 $1.21 $1.16 $1.17

1.00 0.94 0.96 0.98 0.96 0.87 0.95 0.98 1.00 0.98 0.98 1.05 1.05 1.00 $1.02

$0.10 $0.09 $0.10 $0.15 $0.17 $0.14 $0.26 $0.23 $0.20 $0.16 $0.14 $0.15 $0.16 $0.16 $0.14

$1.10 $1.05 $1.09 $1.15 $1.16 $1.04 $0.98 $0.99 $1.00 $1.05 $1.10 $1.17 $1.18 $1.18 $1.16

0.98 0.95 0.97 0.99 0.96 0.90 0.86 0.89 0.93 0.97 0.99 1.04 1.03 1.03 $1.02

$0.12 $0.10 $0.12 $0.17 $0.20 $0.14 $0.11 $0.09 $0.08 $0.09 $0.10 $0.12 $0.15 $0.14 $0.13

Note: Prices may not total or average due to rounding.

Page 175 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix VI 

Alternative Farm-Level Price for Fluid Milk

Table VI.2: Portion of the Retail Price

of a Gallon of 2-Percent Milk Received

by Farmers and Cooperatives Using

the Alternative Farm Price,

January 1996 Through February 1998 Selected market

area

Percent

received by

farmers using

the mailbox

price

Percent

received by

farmers using

the alternative

farm price

Percent

received by

cooperatives

using the

mailbox price

Percent

received by

cooperatives

using the

alternative

farm price

North Atlantic Region

Boston, Mass. 44 51 14 8

New Hampshire 44 51 13 7

New Haven,

Conn. 42 48 13 7

New York, N.Y. 39 44 11 6

Philadelphia, Pa. 42 47 11 6

Rhode Island 44 51 14 8

Vermont 40 46 11 5

Washington, D.C. 42 47 11 6

Southeastern Region

Atlanta, Ga. 43 46 9 7

Louisville, Ky. 48 50 7 6

Miami, Fla. 43 44 8 7

New Orleans, La. 42 45 9 7

Orlando, Fla. 44 45 6 5

Raleigh, N.C. 45 47 7 6

East-North Central Region

Chicago, Ill. 46 50 9 5

Cincinnati, Ohio 53 57 11 8

Milwaukee, Wis. 48 52 9 5

West-North Central Region

Minneapolis,

Minn. 35 38 6 3

West-South Central Region

Dallas, Tex. 44 49 11 5

Houston, Tex. 47 53 13 8

Mountain Pacific Region

Denver, Colo. 38 43 9 4

Las Vegas, Nev. 33 37 6 3

Seattle, Wash. 48 54 9 4

Salt Lake City,

Utah 44 48 10 5

Average for the

24 markets 43 47 10 6

Note: These percentages are based on milk prices adjusted for 2-percent butterfat content.

Page 176 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix VI 

Alternative Farm-Level Price for Fluid Milk

Table VI.3: Increases or Decreases in

the Farm-To-Retail Price Spread for a

Gallon of 2-Percent Milk Using the

Alternative Farm Price, January 1996

Through February 1998 Selected market area

Increases or

decreases in the

alternative

farm-level prices

Increases or

decreases in

retail prices

Increases or

decreases in the

farm-to-retail

price spread

North Atlantic Region

Boston, Mass. a $.30 $.30

New Hampshire a .30 .30

New Haven, Conn. a .28 .28

New York, N.Y. $(.16) .09 .25

Philadelphia, Pa. (.15) a .15

Rhode Island a .30 .30

Vermont a .19 .19

Washington, D.C. (.15) (.08) .07

Southeastern Region

Atlanta, Ga. (.16) .25 .41

Louisville, Ky. (.15) a .15

Miami, Fla. a a a

New Orleans, La. (.16) .31 .47

Orlando, Fla. a .14 .14

Raleigh, N.C. (.17) a .17

East-North Central Region

Chicago, Ill. (.17) .22 .39

Cincinnati, Ohio (.15) (1.23) (1.08)

Milwaukee, Wis. (.17) a .17

West-North Central Region

Minneapolis, Minn. (.16) (.09) .07

West-South Central Region

Dallas, Tex. (.15) .20 .35

Houston, Tex. (.15) a .15

Mountain Pacific Region

Denver, Colo. (.18) .29 .47

Las Vegas, Nev. (.20) a .20

Seattle, Wash. (.17) a .17

Salt Lake City, Utah (.19) a .19

(Table notes on next page)

Page 177 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix VI 

Alternative Farm-Level Price for Fluid Milk

Note: The values used to calculate increases or decreases in retail- and farm-level prices in table

VI.3 are based on statistical estimates of initial and final prices for these two levels, not the actual

observed prices recorded in the first and last month of the period for which we have data. The

method for calculating these estimates is described in app. I. The changes in the farm-to-retail

price spreads are the differences between the changes in retail- and farm-level prices from

January 1996 to February 1998 and consequently are determined from the statistically estimated

initial and final prices for the retail and farm levels.

aIndicates that no statistically significant change was observed in the price over the 26-month

period and therefore represents a constant price for that market.

Page 178 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix VI 

Alternative Farm-Level Price for Fluid Milk

Table VI.4: Correlation Between

Alternative-Farm-Level-Price Changes

and Changes in Cooperative,

Wholesale, and Retail Prices for a

Gallon of 2-Percent Milk, January 1996

Through February 1998

Selected market area

Correlation

coefficients for

cooperative prices

Correlation

coefficients for

wholesale prices

Correlation

coefficients for

retail prices

North Atlantic Region

Boston, Mass. .98* .65* .27

New Hampshire .98* .79* .27

New Haven, Conn. .99* .82* .15

New York, N.Y. .99* .35 .64*

Philadelphia, Pa. .99* .41* .72*

Rhode Island .98* .77* .27

Vermont .99* .65* .32

Washington, D.C. .99* .89* .56*

Southeastern Region

Atlanta, Ga. .96* .31 .12

Louisville, Ky. .91* .31 .18

Miami, Fla. .94* .30 .51*

New Orleans, La. .92* .07 .30

Orlando, Fla. .95* .64* .38

Raleigh, N.C. .96* .35 .26

East-North Central Region

Chicago, Ill. .95* .25 .07

Cincinnati, Ohio .98* .51 –0.13

Milwaukee, Wis. .94* .25 .34

West-North Central Region

Minneapolis, Minn. .96* .61* .52*

West-South Central Region

Dallas, Tex. .93* .21 .29

Houston, Tex. .92* .21 .18

Mountain Pacific Region

Denver, Colo. .97* .69* .03

Las Vegas, Nev. .97* .15 .18

Seattle, Wash. .99* .87* .24

Salt Lake City, Utah .98* .15 .29

Note: In calculating the correlation coefficients for each market, we omitted the months for which

data were missing.

*Indicates that the correlation coefficient is statistically significant (i.e. p < .05). However, we have

not included the p-values in the table.

Page 179 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
Appendix VII 

Major Contributors to This Report

Anu K. Mittal, Assistant Director

Dale A. Wolden, Evaluator-in-Charge

James L. Dishmon, Jr.

Curtis L. Groves

Jay L. Scott

Sheldon H. Wood, Jr.

(150123) Page 180 GAO/RCED-99-4 Factors Influencing Fluid Milk Prices
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