Following is the text of the U.S. Dairy Products Prices report for the week ending Nov. 27 as reported by the U.S. Department of Agriculture.
Butter prices received for 25 kilogram and 68 pound boxes meeting United States Department of Agriculture (USDA) Grade AA standards averaged $1.87 per pound for the week ending November 27, 2010. The United States (US) price per pound decreased 11.9 cents from the previous week.
Cheddar Cheese prices received for US 40 pound blocks averaged $1.47 per pound for the week ending November 27, 2010. The price per pound decreased 9.5 cents from the previous week. The price for US 500 pound barrels adjusted to 38 percent moisture averaged $1.46 per pound, down 9.2 cents from the previous week.
Dry Whey prices received for bag, tote, and tanker sales meeting USDA Extra Grade standards averaged 37.7 cents per pound for the week ending November 27, 2010. The US price per pound increased 0.2 cents from the previous week.
Nonfat Dry Milk prices received for bag, tote, and tanker sales meeting USDA Extra Grade or United States Public Health Service (USPHS) Grade A standards averaged $1.20 per pound for the week ending November 27, 2010. The US price per pound increased 0.3 cents from the previous week.
Statistical Methodology: Dairy Products Prices
Data collection period: Dairy Products Prices statistics are based upon survey data collected after Saturday of each week.
Sampling frames and sample size: The Dairy Products Prices program consists of 89 manufacturing plants selling one million pounds or more of dairy products as defined by Public Law Number 106-532. There are 20 plants reporting 40 pound cheddar blocks, 16 plants reporting 500 pound cheddar barrels, 23 plants reporting butter, 38 plants reporting nonfat dry milk, and 23 plants reporting dry whey. There are 7 plants in the Minnesota and Wisconsin Region reporting 40 pound cheddar blocks and 10 plants in the Minnesota and Wisconsin Region reporting 500 pound cheddar barrels.
Modes of data collection: Data are collected by electronic data reporting, telephone, and facsimile.
Term and definitions: Firms complete the weekly questionnaires using definitions from Public Law Number 106-532 and through the aid of instructions provided during the Annual Validation interview as well as provided information on the questionnaire.
Reliability: Price data included in the Dairy Products Prices report are collected through a Census of all qualifying manufacturers of the following products: 1) Cheddar cheese in 40 pound blocks, colored between 6 and 8 on the National Cheese Institute color chart, meeting Wisconsin State Brand, USDA Grade A, or better standards. 2) Cheddar cheese in 500 pound barrels, white, meeting Wisconsin State Brand, USDA Grade A, or better standards. 3) Salted butter (80% butterfat), fresh or storage, in 25 kilogram and 68 pound boxes meeting USDA Grade AA standards. 4) Non-fortified, nonfat dry milk in 25 kilogram bags, 50 pound bags, totes, and tankers meeting USDA Extra Grade or USPH Grade A standards. 5) Edible non-hygroscopic dry whey in 25 kilogram bags, 50 pound bags, totes, and tankers meeting USDA Extra Grade standards.
Estimating Procedures: Price data reported by manufacturers are reviewed for reasonableness and consistency by comparing with data reported in prior weeks and by data reported by other firms in their region and national trends. During weekly review both field office and Agricultural Statistics Board re-contact manufacturers to verify any unusual data relationships. The Agriculture Marketing Service conducts on-site verifications if manufacturers fail to sufficiently explain any unusual data relationships.
Revision Policy: Dairy Products Prices information is subject to revisions to the previous four weeks. The previous two calendar years of estimates for the weekly dairy products prices are subject to verification by AMS.