Date: April 17, 2024

Recently the USDA reported the spread of Highly Pathogenic Avian Influenza (HPAI) among cows in American diary farms, mainly affecting the older cattle population. While most have recovered, any infected milk has been discarded, causing up to a 40% drop in initial milk production reported in early 2024 for some of the hardest hit dairy farms. It is important to note that pasteurization effectively eliminates the virus, ensuring the safety of commercial dairy products.

However, the USDA lab analysis found no genetic changes in the virus from an outbreak in cows, suggesting low risk of mammal-to-mammal spread, including to humans.  Despite the virus being unlikely to spread and pasteurization ensuring dairy safety, the outbreak has caused concerns in the dairy industry and consumers have been become wary.  Resulting from consumer concerns, recent competitive pricing maybe attributed to the lack of demand, as supply appears stable in US dairy markets.

CHEESE & BUTTER PRODUCTS 

Cheese produced in the United States remains competitive internationally despite price hikes, with exports in February reaching the second highest volume on record. This surge in exports, driven by competitive pricing keeps cheese stocks from growing.  Despite the availability of cream and an increase in butter production, a significant drop in international interest and a decrease in butter exports year-over-year have been observed. Prices are expected to continue rising into the fall unless production improves in the latter half of the year.

About Milk Pasteurization in the USA

The main pasteurization method in the US is High Temperature Short Time (HTST) pasteurization. It uses metal plates and hot water to raise milk temperatures to at least 161°F for 15 seconds, followed by rapid cooling. This process effectively kills any harmful bacteria, including the bovine coronavirus. Additionally, the dairy industry follows strict hygiene and sanitation protocols to prevent contamination of milk products.

Lakeside Food Sales Inc is a bulk food ingredient supplier and distributor. Due to many of our products being Food and Agricultural Commodities, we closely monitor various reports offered by product manufacturers and data, analytics and climate conditions that are released by various world organizations. This data often provides insights into pricing for raw material for raw food ingredients that we supply to clients.

The content and viewpoints shared in this presentation were crafted by Lakeside Food Sales Inc. It contains forward-looking statements grounded in anticipated future events, yet remains subject to risks and uncertainties. Lakeside Food Sales, Inc. does not guarantee the accuracy of the content shared within, as this data was derived from various reports and briefings published by one or more industry resource and/or government agencies or world organizations.