At $3.66 Per Gallon, Average Whole Milk Price In Federal Order Cities Was Up 14 Cents From ‘20

Washington—The average retail price for conventional whole milk in 30 selected cities or metro areas in federal milk marketing order markets last year was $3.66 per gallon, up 14 cents from 2020 and the highest average price since 2014’s record-high $3.84 per gallon.

After reaching that record high in 2014, average retail whole milk prices declined for four straight years, to $3.61 per gallon in 2015, $3.40 per gallon in 2016, $3.39 per gallon in 2017 and $3.28 per gallon in 2018.

Average retail whole milk prices have now increased for three straight years, averaging $3.32 per gallon in 2019, $3.52 per gallon in 2020 and $3.66 per gallon in 2021.

These average retail milk prices are collected by federal order market administrators based on a survey conducted one day between the 1st and 10th of each month in 30 selected cities or metro areas. One outlet of the largest and second largest food store chains are surveyed.

Prior to 2020, the average retail milk price figures were conducted in 29 cities or metro areas; last year, the city of Sacramento, CA, was added, after California became part of the federal order system in late 2018.

In 2021, average monthly retail whole milk prices ranged from a low of $3.58 per gallon in April to a high of $3.77 per gallon in December. Average retail prices were above $3.70 per gallon in three of the last five months of the year ($3.71 in August and $3.72 in November).

Among the 30 surveyed cities and metro areas in 2021, the lowest average retail whole milk price was found in Wichita, KS, at $2.65 per gallon, followed by Louisville, KY, at $2.68 per gallon. Retail whole milk prices averaged under $3.00 per gallon every month of this year in both cities.

No other city or metro area posted an average retail whole milk price under $3.00 per gallon last year, although the price averaged exactly $3.00 per gallon in Indianapolis and averaged $3.01 per gallon in both Cincinnati and Phoenix.

At the other extreme, Philadelphia posted the highest average retail whole milk prices in 2021, at $4.91 per gallon, followed by Kansas City, MO, at $4.85 per gallon.

Those cities also posted the only average monthly retail whole milk prices above $5.00 per gallon: the average price reached $5.14 per gallon in November and $5.19 per gallon in December in Philadelphia; and $5.02 per gallon in November and $5.12 per gallon in December in Kansas City.

Average retail whole milk prices averaged $4.00 or more per gallon in six additional cities last year: Chicago, $4.16; Minneapolis, $4.08; New Orleans $4.00; New York City, $4.14; Pittsburgh, $4.36; and Washington, DC, $4.30.

Chicago had the least volatile average retail whole milk prices in 2021; prices averaged $4.16 per gallon every month of the year. Baltimore, MD, was close behind; retail whole milk prices averaged $3.84 per gallon in January, rose to $3.98 per gallon in February and March, then fell back to $3.84 per gallon for every month from April through December.

The average retail price for reduced fat (2 percent) milk in 2021 was $3.62 per gallon, up 15 cents from 2020 and the highest average retail price since 2014’s $3.80 per gallon.

Last year, average retail prices for reduced fat milk ranged from a low of $3.55 per gallon in February, March and April to a high of $3.73 per gallon in December. Average prices were above $3.60 per gallon in each of the last seven months of 2021.

Among the 30 surveyed cities and metro areas, the lowest average retail reduced fat milk price in 2021 was found in Wichita, KS, at $2.65 per gallon (the same average price as for whole milk) followed by Louisville, KY, at $2.70 per gallon (two cents higher than whole milk).

Those were the only two cities with average reduced fat milk prices under $3.00 per gallon last year.

By contrast, Philadelphia posted the highest average retail reduced fat milk price in 2021, at $4.77 per gallon, followed by Kansas City, at $4.67 per gallon. Other cities with average retail reduced fat milk prices of $4.00 per gallon or higher were: Chicago, $4.06; Minneapolis, $4.08; New Orleans, $4.00; New York City, $4.12; Pittsburgh, $4.22; and Washington, DC, $4.29.

As was also the case for whole milk, Chicago had the least volatile average retail reduced fat milk prices in 2021; they averaged $4.06 per gallon every month of the year.

Baltimore was close behind; retail whole milk prices averaged $3.84 per gallon in January, rose to $3.88 per gallon in February and March and then fell back to $3.84 per gallon every month from April through December.

Retail Prices For Organic Milk

In 2021, the average retail price for a half gallon of organic whole milk averaged $4.13, up nine cents from 2020 and the highest average retail price since 2017’s $4.23 per half gallon.

Since 2013, average retail prices for organic whole milk have ranged from a low of $3.95 per half gallon in 2013 to a high of $4.31 per half gallon in 2016.

During 2021, average retail prices for organic whole milk ranged from a low of $4.05 per half gallon in February to a high of $4.22 per half gallon in December.

Among the 30 surveyed cities and metro areas, Indianapolis in 2021 had the lowest average retail price for organic whole milk, at $3.13 per half gallon, followed closely by Houston at $3.19 per half gallon, Dallas at $3.22 per half gallon, and Cincinnati, OH, and Louisville both at $3.25 per half gallon.

At the other extreme, Pittsburgh had the highest average retail price for organic whole milk last year, at $6.01 per half gallon. Four other cities posted average retail organic whole milk prices above $5.00 per half gallon in 2021: Baltimore, $5.28; Oklahoma City, $5.18; St. Louis, $5.38; and Washington, DC, $5.28.

In 2021, the average retail price for a half gallon of organic reduced fat (2 percent) milk was $4.13, identical to the average retail price of a half gallon of organic whole milk.

That marked the seventh straight year in which the average retail price for both organic whole milk and organic reduced fat milk was the same.

The last time they differed was in 2014, when the average price for organic whole milk was $4.05 per half gallon and the average price for organic reduced fat milk was $4.04 per half gallon.

During 2021, average retail prices for organic reduced fat milk in federal milk marketing order markets last year ranged from a low of $4.05 per half gallon to a high of $4.23 per half gallon in December.

As was also the case for organic whole milk, average retail prices for reduced fat milk during 2021 ranged from a low of $3.13 per half gallon in Indianapolis to a high of $6.01 per half gallon in Pittsburgh.

For organic whole milk in federal milk marketing order markets last year, average monthly retail prices didn’t vary throughout 2021 in four cities: Chicago, where they were steady at $4.49 per half gallon every month; Cleveland, where they were stable at $3.54 per half gallon every month; Sacramento, where they were stable at $3.99 per half gallon every month; and Seattle, where they were steady at $3.29 per half gallon every month.

That was also the case for organic reduced fat milk for both Cleveland and Sacramento, but in Chicago, the average retail price was $4.49 per half gallon in January and February, rose to $4.59 per half gallon in March, then fell back to $4.49 per half gallon from April through December.

Retail prices in federal milk marketing order markets last year for both organic whole and reduced fat milk averaged $3.21 per half gallon in Dallas during each of the first 11 months of 2021, then rose to $3.31 per half gallon in December.

Retail prices for both organic milk varieties showed similar stability in Detroit, averaging $3.29 per half gallon during January-November and then rising to $3.39 per half gallon in December.