Dairy Market News 0581-NEW_Supporting Statement

2024 SUPPORTING STATEMENT

Dairy Market News

OMB NO. 0581-NEW

1. JUSTIFICATION

1. EXPLAIN THE CIRCUMSTANCES THAT MAKE THE COLLECTION OF INFORMATION NECESSARY. IDENTIFY ANY LEGAL OR ADMINISTRATIVE REQUIREMENTS THAT NECESSITATE THE COLLECTION.

The Agricultural Marketing Act of 1946 (7 U.S.C. 1621-1627) (AMA), as amended, authorizes the Secretary of Agriculture "to collect and disseminate marketing information, including adequate outlook information on a market-area basis, for the purpose of anticipating and meeting consumer requirements, aiding in the maintenance of farm income, and bringing about a balance between production, and utilization of agricultural products." The collection of information in this request is based on the AMA, Title II, Subtitle A, § 203, principally, paragraphs (b), (g), and (k) that direct the Secretary of Agriculture to determine agricultural marketing costs and develop efficient marketing methods to reduce the price spread between producer and consumer; to collect and disseminate marketing information to bring about a balance between production and utilization of agricultural products; and to collect, tabulate, and disseminate agricultural marketing statistics.

Under this authority, the U.S. Department of Agriculture’s (USDA) Agricultural Marketing Service (AMS) Dairy Market News (DMN) Division works to provide current coverage of prices, supply, demands, trends, movement, and other pertinent information affecting the trade of milk and related products, as well as locally produced and marketed products. The information requested is used to compile and disseminate market reports that provide current, unbiased, and factual information to all stakeholders in the U.S. agricultural industry. Market News reports assist producers, processors, wholesalers, retailers, and others to make informed decisions concerning production, purchasing, and sales.

In accordance with the Paperwork Reduction Act of 1995, 44 U.S.C. Chapter 35, AMS requests approval of this existing information collection in use without an OMB control number and describes the associated reporting and recordkeeping burden.

2. INDICATE HOW, BY WHOM, AND FOR WHAT PURPOSE THE INFORMATION IS TO BE USED. EXCEPT FOR A NEW COLLECTION, INDICATE THE ACTUAL USE THE AGENCY HAS MADE OF THE INFORMATION RECEIVED FROM THE CURRENT COLLECTION.

Market News reports produced by the DMN Division provide industry stakeholders and the general public with comprehensive and unbiased market data for milk and related products to help equalize the competitive position of all market participants. The issuance of timely information about market trends ensures efficient marketing and distribution of the nation’s food supply to the benefit of producers and consumers alike. All reports are available free to the public at https://mymarketnews.ams.usda.gov/. These reports receive approximately 300,000 page views each year and an estimated 500,000 custom reports are generated by the public. Additionally, reports are sent via e-mail to subscribers who specifically request this information.

DMN reporters communicate with buyers and sellers of milk and related dairy products generally on a weekly basis through telephone conversations, face-to-face meetings, virtual meetings and electronic mail messages in order to collect the data. Market information solicited from respondents relates to supply, demand, trade activity, prices, trends, volume, and market conditions affecting the trade of milk and related dairy products.

DMN reports are used primarily by dairy farmers and dairy industry stakeholders to determine future production and marketing projections, and to make marketing and contracting decisions. Federal agencies involved in food purchase programs and institutional buying rely on DMN reports as a source of supply and price data, to make policy decisions, and to perform a variety of other functions. Other USDA agencies including the Foreign Agricultural Service, Economic Research Service, and the National Agricultural Statistics Service use DMN reports to track prices, market conditions, and agricultural productivity, and to serve as indicators of economic growth. Economists, investors, and agricultural analysts use DMN reports to forecast, conduct policy analysis, and/or make financial decisions based on available supplies and current pricing. DMN reports are also widely used by the private sector including producers, farmers, processors, distributors, retailers, restaurants, consultants, brokers, forecasters, and transportation, financial, and educational institutions.

3. DESCRIBE WHETHER, AND TO WHAT EXTENT, THE COLLECTION OF INFORMATION INVOLVES THE USE OF AUTOMATED, ELECTRONIC, MECHANICAL, OR OTHER TECHNOLOGICAL COLLECTION TECHNIQUES OR OTHER FORMS OF INFORMATION TECHNOLOGY, E.G. PERMITTING ELECTRONIC SUBMISSION OF RESPONSES, AND THE BASIS FOR THE DECISION FOR ADOPTING THIS MEANS OF COLLECTION. ALSO DESCRIBE ANY CONSIDERATION OF USING INFORMATION TECHNOLOGY TO REDUCE BURDEN.

No information is collected via an automated basis. Information for DMN reports is collected via e-mail, telephone, and in-person or virtual meetings. Industry provides information using records kept in normal business practice.

Additionally, DMN provides free public access to market reports at https://mymarketnews.ams.usda.gov/. DMN also offers a free subscription service to DMN reports through Cornell University, allowing registered users to receive specific reports via e-mail at no charge. Lastly, e-mail subscription service is also provided for DMN reports in Adobe PDF format upon request.

DMN uses the Market Analysis and Reporting Services (MARS) platform, a standardized information management system that assists Market News reporters to collect and distribute information from remote locations by combining all reporting functions into a single, user-managed platform. This internal data collection platform does not affect the burden on market participants as data is manually entered only by USDA market reporters. Once data is entered into MARS, datasets and reports are published on the AMS website for public consumption. Overall, the platform increases data collection efficiency by decreasing the time needed to collect, generate, and release reports. The AMS website (https://mymarketnews.ams.usda.gov/) provides the public with greater access to data and reports and provides more opportunities for data analysis and customization. Examples (screenshots) of the website are found in the supplementary documents in ROCIS.

4. DESCRIBE EFFORTS TO IDENTIFY DUPLICATION. SHOW SPECIFICALLY WHY ANY SIMILAR INFORMATION ALREADY AVAILABLE CANNOT BE USED OR MODIFIED FOR USE FOR THE PURPOSE(S) DESCRIBED IN ITEM 2 ABOVE.

DMN maintains regular contact with members of the dairy industry that provide the market information used in reports. Stakeholders and industry trade association officials are contacted regularly, and all efforts are made to avoid a duplication of requests for information. As previously stated, DMN provides comprehensive, unbiased market information which directly affects their business and marketing decisions. Similar information is not available elsewhere that can be used or modified.

5. IF THE COLLECTION OF INFORMATION IMPACTS SMALL BUSINESSES OR OTHER SMALL ENTITIES (ITEM 5 OF THE OMB FORM 83-1), DESCRIBE THE METHODS USED TO MINIMIZE BURDEN.

A small dairy farm as defined by the Small Business Administration (SBA) (13 CFR 121.201) is one that has an annual gross revenue of $3.75 million or less, and a small dairy products manufacturer is one that has no more than the number of employees listed in the chart below:

NAICS Code	NAICS U.S. industry title	Size standards in number of employees
311511	Fluid Milk Manufacturing	1,150
311512	Creamery Butter Manufacturing	750
311513	Cheese Manufacturing	1,250
311514	Dry, Condensed, and Evaporated Dairy Product Manufacturing	1,000

Under these definitions, most companies that would be affected by this information collection are considered small businesses. According to the 2022 Census of Agriculture, approximately 86 percent of fluid milk manufacturing plants, approximately 96 percent of cheese plants, approximately 82 percent of dry products plants, and approximately 78 percent of butter plants meet the SBA definition of a small business. AMS estimates the number of weekly respondents for this collection is 120. However, no difference in burden exists between small and large businesses. The information collected is the same regardless of business size. Although the information collection involves both small and large entities, we consider the information collected to be a minimal burden upon respondents and can be supplied without data processing equipment or outside technical expertise. Collection of the information requested by DMN is voluntary and does not present any additional effort on the part of small businesses or other small entities as this information is assembled and maintained by these entities as part of their regular business practice for internal recordkeeping.

6. DESCRIBE THE CONSEQUENCE TO FEDERAL PROGRAM OR POLICY ACTIVITIES IF THE COLLECTION IS NOT CONDUCTED OR IS CONDUCTED LESS FREQUENTLY, AS WELL AS ANY TECHNICAL OR LEGAL OBSTACLES TO REDUCING BURDEN.

Information collected through DMN voluntary market reporting provides an unbiased third party to collect and disseminate market information. If the collection was not conducted, producers would soon be at a disadvantage to buyers without the timely, accurate, and unbiased market knowledge of their commodity. A less frequent collection of data would hinder the timely use of the data making the information obsolete to stakeholders needing to sensibly market their commodities. DMN users are provided with current information on the price, supply, demand, and movement of product. This allows for necessary adjustments in product flow, sales, and purchasing decisions. There are no technical or legal obstacles to reducing burden.

7. EXPLAIN ANY SPECIAL CIRCUMSTANCES THAT WOULD CAUSE AN INFORMATION COLLECTION TO BE CONDUCTED IN A MANNER:

REQUIRING RESPONDENTS TO REPORT INFORMATION TO THE AGENCY MORE OFTEN THAN QUARTERLY;

This information needs to be collected more frequently than quarterly due to the nature of the DMN report releases which have daily, weekly, and monthly deadlines to be consistent with the production and movement of products to meet current demand. Quarterly reports would not provide timely information.

REQUIRING RESPONDENTS TO PREPARE A WRITTEN RESPONSE TO A COLLECTION OF INFORMATION IN FEWER THAN 30 DAYS AFTER RECEIPT OF IT;

REQUIRING RESPONDENTS TO SUBMIT MORE THAN AN ORIGINAL AND TWO COPIES OF ANY DOCUMENT;

REQUIRING RESPONDENTS TO RETAIN RECORDS, OTHER THAN HEALTH, MEDICAL, GOVERNMENT CONTRACT, GRANT-IN-AID, OR TAX RECORDS FOR MORE THAN 3 YEARS;

IN CONNECTION WITH A STATISTICAL SURVEY, THAT IS NOT DESIGNED TO PRODUCE VALID AND RELIABLE RESULTS THAT CAN BE GENERALIZED TO THE UNIVERSE OF STUDY;

REQUIRING THE USE OF A STATISTICAL DATA CLASSIFICATION THAT HAS NOT BEEN REVIEWED AND APPROVED BY OMB;

THAT INCLUDES A PLEDGE OF CONFIDENTIALITY THAT IS NOT SUPPORTED BY AUTHORITY ESTABLISHED IN STATUE OR REGULATION, THAT IS NOT SUPPORTED BY DISCLOSURE AND DATA SECURITY POLICIES THAT ARE CONSISTENT WITH THE PLEDGE, OR WHICH UNNECESSARILY IMPEDES SHARING OF DATA WITH OTHER AGENCIES FOR COMPATIBLE CONFIDENTIAL USE; OR

REQUIRING RESPONDENTS TO SUBMIT PROPRIETARY TRADE SECRET, OR OTHER CONFIDENTIAL INFORMATION UNLESS THE AGENCY CAN DEMONSTRATE THAT IT HAS INSTITUTED PROCEDURES TO PROTECT THE INFORMATION’S CONFIDENTIALITY TO THE EXTENT PERMITTED BY LAW.

The reports collected and disseminated by DMN reporters are intended to provide both buyers and sellers with the information necessary to make intelligent, informed marketing decisions and, thus, put marketing stakeholders in equal bargaining positions. DMN provides a timely exchange of accurate and unbiased information on current marketing conditions (supply, demand, prices, trends, movement, and other information) affecting trade in dairy and related products.

Section 251(d)(2) of the Agricultural Marketing Act of 1946, as amended (7 U.S.C. 1621 et. seq.), directs that the Secretary shall make information obtained under this subtitle available to the public only in a manner that ensures that the identity of a reporting person is not disclosed. AMS does not require respondents to submit information for the DMN market reporting; respondents choose to voluntarily submit information to trained DMN market reporters. Information collected by DMN is handled responsibly in accordance with AMS policy which states, “[i]t is the responsibility of all AMS employees to protect all sensitive information from unauthorized disclosure in order to protect the identities of employees and the public, as well as to safeguard the public’s confidence in the Agency’s mission delivery. Sensitive information is to be collected, stored, and used by AMS programs only when absolutely necessary for the conduct of official business.”

The DMN Reporter’s Handbook further addresses the confidential nature of this information collection stating, “[i]nformation regarding sales, stocks, prices, etc., obtained from individuals or firms is administratively confidential and must not be revealed.”

Confidentiality was established as paramount in importance concerning individuals’ and firms’ proprietary trade information. All AMS employees with access to the information collected receive regular training on the importance of confidentiality.

There are no other special circumstances. This collection of information is conducted in a manner consistent with guidelines in 5 CFR 1320.5(d)(2).

8. IF APPLICABLE, PROVIDE A COPY AND IDENTIFY THE DATE AND PAGE NUMBER OF PUBLICATION IN THE FEDERAL REGISTER OF THE AGENCY’S NOTICE, REQUIRED BY 5 CFR 1320.8(d), SOLICITING COMMENTS ON THE INFORMATION COLLECTION PRIOR TO SUBMISSION TO OMB. SUMMARIZE PUBLIC COMMENTS RECEIVED IN RESPONSE TO THAT NOTICE AND DESCRIBE ACTIONS TAKEN BY THE AGENCY IN RESPONSE TO THESE COMMENTS. SPECIFICALLY ADDRESS COMMENTS RECEIVED ON COST AND HOUR BURDEN.

The 60-day notice for comments on this collection of information was published in the Federal Register on December 23, 2024 (Federal Register, Vol. 89, No. 104,512). No comments were received.

DESCRIBE EFFORTS TO CONSULT WITH PERSONS OUTSIDE THE AGENCY TO OBTAIN THEIR VIEWS ON THE AVAILABILITY OF DATA, FREQUENCY OF COLLECTION, THE CLARITY OF INSTRUCTIONS AND RECORDKEEPING, DISCLOSURE, OR REPORTING FORMAT (IF ANY), AND ON THE DATA ELEMENTS TO BE RECORDED, DISCLOSED, OR REPORTED.

AMS works closely with industry trade organizations whose membership include producers, processers, and interested members of the trade. These organizations include, among others, the American Dairy Products Institute, U.S. Dairy Export Council, National Milk Producers Federation, International Dairy Foods Association, and numerous dairy farmer cooperatives. AMS and industry members regularly discuss possible changes to voluntary Market News reporting that could improve efficiency, optimize processes, enhance AMS reports, and minimize reporting burdens. By attending the regular meetings of these organizations, Market News is able to receive industry feedback concerning market reports.

CONSULTATION WITH REPRESENTATIVES OF THOSE FROM WHOM INFORMATION IS TO BE OBTAINED OR THOSE WHO MUST COMPILE RECORDS SHOULD OCCUR AT LEAST ONCE EVERY 3 YEARS -- EVEN IF THE COLLECTION OF INFORMATION ACTIVITY IS THE SAME AS IN PRIOR PERIODS. THERE MAY BE CIRCUMSTANCES THAT MAY PRECLUDE CONSULTATION IN A SPECIFIC SITUATION. THESE CIRCUMSTANCES SHOULD BE EXPLAINED.

There are no special circumstances.

9. EXPLAIN ANY DECISION TO PROVIDE ANY PAYMENT OR GIFT TO RESPONDENTS, OTHER THAN REMUNERATION OF CONTRACTORS OR GRANTEES.

No payments or gifts are provided to respondents.

10. DESCRIBE ANY ASSURANCE OF CONFIDENTIALITY PROVIDED TO RESPONDENTS AND THE BASIS FOR THE ASSURANCE IN STATUTE, REGULATION, OR AGENCY POLICY.

Information collected by DMN is handled responsibly in accordance with AMS policy which establishes confidentiality as paramount in importance in DMN reporting concerning individuals’ and firms’ proprietary trade information. Respondents are assured of this responsibility by DMN and possible disclosures of information are investigated. Jeopardizing confidentiality would taint the reputation of DMN, thereby, hampering the ability for DMN to collect information and provide Market News services.

11. PROVIDE ADDITIONAL JUSTIFICATION FOR ANY QUESTIONS OF A SENSITIVE NATURE, SUCH AS SEXUAL BEHAVIOR AND ATTITUDES, RELIGIOUS BELIEFS, AND OTHER MATTERS THAT ARE COMMONLY CONSIDERED PRIVATE. THIS JUSTIFICATION SHOULD INCLUDE THE REASONS WHY THE AGENCY CONSIDERS THE QUESTIONS NECESSARY, THE SPECIFIC USES TO BE MADE OF THE INFORMATION, THE EXPLANATION TO BE GIVEN TO PERSONS FROM WHOM THE INFORMATION IS REQUESTED, AND ANY STEPS TO BE TAKEN TO OBTAIN THEIR CONSENT.

There are no questions regarding sensitive language.

12. PROVIDE ESTIMATES OF THE HOUR BURDEN OF THE COLLECTION OF INFORMATION. THE STATEMENT SHOULD:

INDICATE THE NUMBER OF RESPONDENTS, FREQUENCY OF RESPONSE, ANNUAL HOUR BURDEN, AND AN EXPLANATION OF HOW THE BURDEN WAS ESTIMATED. UNLESS DIRECTED TO DO SO, AGENCIES SHOULD NOT CONDUCT SPECIAL SURVEYS TO OBTAIN INFORMATION ON WHICH TO BASE HOUR BURDEN ESTIMATES. CONSULTATION WITH A SAMPLE (FEWER THAN 10) OF POTENTIAL RESPONDENTS IS DESIRABLE. IF THE HOUR BURDEN ON RESPONDENTS IS EXPECTED TO VARY WIDELY BECAUSE OF DIFFERENCE IN ACTIVITY, SIZE, OR COMPLEXITY, SHOW THE RANGE OF ESTIMATED HOUR BURDEN, AND EXPLAIN THE REASONS FOR THE VARIANCE. GENERALLY, ESTIMATES SHOULD NOT INCLUDE BURDEN HOURS FOR CUSTOMARY AND USUAL BUSINESS PRACTICES.

IF THIS REQUEST FOR APPROVAL COVERS MORE THAN ONE FORM, PROVIDE SEPARATE HOUR BURDEN ESTIMATES FOR EACH FORM AND AGGREGATE THE HOUR BURDENS IN ITEM 13 OF OMB FORM 83-I.

PROVIDE ESTIMATES OF ANNUALIZED COST TO RESPONDENTS FOR THE HOUR BURDENS FOR COLLECTIONS OF INFORMATION, IDENTIFYING AND USING APPROPRIATE WAGE RATE CATEGORIES. THE COST OF CONTRACTING OUT OR PAYING OUTSIDE PARTIES FOR INFORMATION COLLECTION ACTIVITIES SHOULD NOT BE INCLUDED HERE. INSTEAD, THIS COST SHOULD BE INCLUDED IN ITEM 14.

This submission reflects a total of 120 respondents for 518 (rounded) burden hours. Minor differences in estimated annual costs and burden reason are attributable to a change in the order of calculation and subsequent differences in numerical rounding.

DAIRY MARKET NEWS REPORTS

Number of Respondents = 120

Frequency of Response = 52 per respondent per year

Per Response Burden = .0830 hours per submission

Annual Hour Burden = 518 hours (rounded)

Estimated Annual Cost = $ 20,112 (rounded)

Methodology Used for Calculating Estimates

To calculate the total annual hour burden for this collection, the total number of respondents was multiplied by the number of times a respondent was contacted per week (52 reporting weeks per year). (Although there is a range of weekly reporting burdens dependent upon individual respondents, it does not vary widely; therefore, “weekly” was calculated as respondents reporting on an average of 1 day per week, thereby totaling 52 times per year.) The figure was then multiplied by the hourly burden time per response to obtain the total annual hour burden.

It is estimated that approximately 75 percent of respondents are in sales and 25 percent are in administrative support. Based upon the Bureau of Labor Statistics June 2024 data, total compensation, benefits, and hourly wage is $40.20 for staff under buyers and purchasing agents, farm products (includes an hourly wage of $28.07 plus $12.14 in benefits and compensation), and $34.73 for staff under office and administrative support occupations (includes an hourly wage of $24.04 plus $10.69 in benefits and compensation). The benefits and compensation figures were published by the Bureau of Labor Statistics in June 2024, Table 4. Private industry workers by occupational and industry group). See AMS-71 for details; differences in estimated annual costs associated with each form and burden reason are attributable to a change in the order of calculation and subsequent differences in numerical rounding.

SUMMARY:

Total estimated burden hours = 518 hours

Respondents - sales (75%) = 388 hours (rounded)

Respondents - administrative support (25%) = 130 hours (rounded)

Subtotal cost for burden costs:

Respondents – sales: 388 hours @ $40.20 = $ 15,615 (rounded)

Respondents – admin. support: 130 hours @ $34.73 = $ 4,497 (rounded)

TOTAL BURDEN = 518 hours

TOTAL COST = $ 20,112 (rounded)

13. PROVIDE AN ESTIMATE OF THE TOTAL ANNUAL COST BURDEN TO RESPONDENTS OR RECORDKEEPERS RESULTING FROM THE COLLECTION OF INFORMATION. (DO NOT INCLUDE THE COST OF ANY HOUR BURDEN SHOWN IN ITEMS 12 AND 14).

There are no capital/start-up or ongoing costs to the respondents associated with this information collection.

14. PROVIDE ESTIMATES OF ANNUALIZED COST TO THE FEDERAL GOVERNMENT. ALSO, PROVIDE A DESCRIPTION OF THE METHOD USED TO ESTIMATE COST, WHICH SHOULD INCLUDE QUANTIFICATION OF HOURS, OPERATION EXPENSES (SUCH AS EQUIPMENT, OVERHEAD, PRINTING, AND SUPPORT STAFF), AND ANY OTHER EXPENSE THAT WOULD NOT HAVE BEEN INCURRED WITHOUT THIS COLLECTION OF INFORMATION. AGENCIES ALSO MAY AGGREGATE COST ESTIMATES FROM ITEMS 12, 13, AND 14 IN A SINGLE TABLE.

Based on historical expenditures, AMS estimates the cost of maintaining a voluntary dairy and related markets reporting program to be $2.2 million per year, as itemized below.

Salaries and Benefits = $ 1,140,000

Travel expenses = $ 25,000

Space rental = $ 94,000

Printing = $ 2,000

Computer hardware/software = $ 400,000

Staff training = $ 23,000

Program overhead = $ 516,000

Total = $ 2,200,000 per year

15. EXPLAIN THE REASON FOR ANY PROGRAM CHANGES OR ADJUSTMENTS REPORTED IN ITEMS 13 OR 14 OF THE OMB FORM 83-I.

Not applicable.

16. FOR COLLECTIONS OF INFORMATION WHOSE RESULTS WILL BE PUBLISHED, OUTLINE PLANS FOR TABULATION, AND PUBLICATION. ADDRESS ANY COMPLEX ANALYTICAL TECHNIQUES THAT WILL BE USED. PROVIDE THE TIME SCHEDULE FOR THE ENTIRE PROJECT, INCLUDING BEGINNING AND ENDING DATES OF THE COLLECTION OF INFORMATION, COMPLETION OF REPORT, PUBLICATION DATES, AND OTHER ACTIONS.

The information collected to produce DMN reports is gathered in an electronic database where it is processed and aggregated for publication. This process occurs daily, weekly, monthly, and annually, and once prepared, the market reports are published through an electronic communication system and posted on the AMS website (https://mymarketnews.ams.usda.gov/).

17. IF SEEKING APPROVAL TO NOT DISPLAY THE EXPIRATION DATE FOR OMB APPROVAL OF THE INFORMATION COLLECTION, EXPLAIN THE REASONS THAT DISPLAY WOULD BE INAPPROPRIATE.

Not applicable.

18. EXPLAIN EACH EXCEPTION TO THE CERTIFICATION STATEMENT IDENTIFIED IN ITEM 19, "CERTIFICATION FOR PAPERWORK REDUCTION ACT SUBMISSIONS," OF OMB FORM 83-I.

AMS does not request an exception to the certification of this information collection.

B. COLLECTIONS OF INFORMATION EMPLOYING STATISTICAL METHODS

This information collection does not employ statistical methods.