March 2008 Archived Dairy News

Latest Dairy News

Monday, March 31, 2008
Heifer Import Update – Dairy Market News
DMI Update
Dairy meetings discuss solutions for extreme heat stress situations
Friday, March 28, 2008
Milk Feed Price Ratio Drops For Sixth Consecutive Month
Dairy Markets Weekly Review
Milk Labeling in Ohio
IN: Dairy owner banned from operating farm
MD: Breeders, juniors honored at annual Holstein convention
MN: Three seek West Otter Tail County dairy princess crown
WI: State Holstein Breeders Elect Officers
WI: New Holstein leads area teams in Oshkosh Invite
NZ innovation in dairy gender research leads
Australia: Fonterra yet to give Dairy Farmers a bid
UK: Western Holstein Club spring show
Thursday, March 27, 2008
Ag Will Likely Be Exempt From New EPA Emission Regulations
Mid-Week Milk Production Update
Dairy Checkoff Update - March 2008
CA: Dairy cows' hot-weather health topic of April 6 meeting
GA: Tornado damage forces dairy plant to stop production early
IA: Dairy disaster assistance program resumes
IN: State bars dairy with history of manure spills from operating
Aurora Organic Dairy Named Best Fluid Plant at the 2008 All Star...
OR: Gaston woman reigns as dairy princess
Italy seals off 83 farms over mozzarella scare
How Green Is Organic Milk?
Wednesday, March 26, 2008
A Lot Of Eyes On Rising Feed Prices
CA: Dairy analysts look at what's in store for this year
Importance of Controlling Leptospira  
Training Opportunity : Feed Management Planners Workshops 
"Dairy Advantage" Seeks to Save NC Dairy Industry
WI: Manitowoc-based dairy cooperative turns 75 this year
WI: Sassy Cow Creamery Introduces Bottled Milk Straight From the Farm
Dairy Promoter Reaches out to Sports World
Kraft Foods Focuses on Sustainability at FPSA Conference
Put Your Beef Ideas on Video and Win Big
Canada: Marketing funded for dairy test kits   
The Government of Canada Supports Innovation in the Dairy Sector
Tuesday, March 25, 2008
First Sale in Cash Market Since Last Month
AR: Organic Dairy Farming Tough But Profitable
NE: Locally Produced Natural Cheese Feeds Appetites
N.M.: Dairy hit hard by storm
TN: Purity milkman will be no more
Australia: Milk figures climbing high
Monday, March 24, 2008
MI: Dairy farmers defend hormone use in wake of grocer's prohibition
World Dairy Expo Elects Leaders
Dairy Checkoff Continues Work With Fast Food Chains
Friday, March 21, 2008
Dairy Markets Weekly Review
April Federal Order Class I Price Up $1.91
DFA Meeting Recap
Dairy Farmers of America posts loss on higher revenue
PA Farm Bureau Praises PMMB’s Decision to Increase Dairy Price
CA: Organic Pastures Dairy May Be the Center of A Federal Investigation
CA: Sonomans vie for Dairy Princess
MO: Dairy Leaders Born Here
Government of Canada Invests $925,000 to Further Innovation in the...
Campina to step up focus on low fat dairy
China tightens entry rules for new dairy processing plants
UK: £2180 heifer tops Beeston Castle dairy
Thursday, March 20, 2008
Latest Cold Storage Figures Released
Latest Livestock Slaughter Report
Consumer Scrutiny Over Meat Recall
PA Farm Bureau Praises PMMB’s Decision to Increase Dairy Price
Number of Missouri Dairy Farms Declines
Milking it
Naturally Iowa, Inc. Announces That Purchase Orders From Ball's...
From Holland for milk
Wednesday, March 19, 2008
Dairy Outlook
Government Needs To Work With The Right Tools
Pfizer Animal Health to Acquire Catapult Genetics and Bovigen  
10 Country: Dairy Cows' Best Friend
CA: Organic Milk Producer Subject to Mandated Price Structure
Worldwide Market for Dairy Products to Exceed US$305 Billion by...
New Zealand: Feed puts pressure on dairy to dry off
New Zealand: Kiwi consumers await Government response on milk prices
W. Australia dairy farmers urged to help meet export milk demand
East coast milk bolsters W. Australia export supplies
Milk quota rise will have little impact in Scotland
Tuesday, March 18, 2008
Cash Cheese Market Loses Ground
Dairy Situation & Outlook: Milk Prices Higher, Cheese Prices Hold Up
Alltech Symposium Attracts Former USDA Secretary 
Young Dairy Leaders Institute Class Six Completes Phase I
CA: Dairymen discuss milk output, plant capacity and impact on prices
CA: Court sides with state against raw milk producer
CO: Weld dairy sector growing
IL: Neighbors help dairy farmers recover after tornado destroys barn...
Iowa DNR Says "No" To Proposed Dairy Permit
NC: Dairy farm's odor bugs neighbors
SD: Carrington Dairy Voted Down
Arm & Hammer Forage Testing Program^SM Promotes the Importance of DCAD Balancing
Study shows Europe to be largest global market for dairy
Worldwide Market for Dairy Products to Exceed US$305 Billion by ...
Gain Insight into China's Rapidly Growing Dairy Market With New Report
China dairy hunger pushing up heifer prices
Dairy farmers' confidence 'down in NZ'
New Zealand: Dairy farm price ease back slightly
Tassie dairy farms get more expensive
Cuba lifts ban on farmers buying supplies
Russia: Wimm-Bill-Dunn Opens a Dairy Plant in the Ural
Monday, March 17, 2008
Dairy Situation and Outlook - Bob Cropp
February Milk Production Tops A Year Ago by 6 Percent
U.S. Dairy Exports Enjoyed Unprecedented Sales in 2007
ID: State livestock lab and research center to land near Twin Falls
IA: Disaster assistance available for dairy farmers
MI: SwissLane's Annie Link is face of agri-tourism
TN: Learn About Bristol's Famous Cow
Attend the 4th Annual Wisconsin State Jersey Show
Virginia Tech’s Cassell receives National DHIA Outstanding Service Award  
Dale Hoover receives National DHIA Distinguished Leadership Award
Waterbeds keep cows udderly content in Geauga County
Milk Producers Council Weekly Update
California Dairy Leaders Wanted
Dairy a bright spot in ag sector, economist says
Pennsylvania Producers Attend National Dairy Manager's Academy
Pollina Resigns From Vermont Milk Company
Agency keeps disclaimers on milk labels
Farmers hope to staunch decline of Mo. dairy farms
EU, US heading for conflict over dairy taxes
Morinaga, Snow Brand Raise Butter Prices on Higher Milk Costs
'Cow & History' art contest Moooove over, Matisse
New Zealand: Land of milk and money
Venezuela buys meatpacking chain, plans dairy company purchase...
Friday, March 14, 2008
Dairy Markets Weekly Review
U.S. Dairy Exports Can Remain Strong
Statement on Dairy Import Assessment Expansion and the Farm Bill ...
Russia increases imports of meat, milk powder
USDEC Receives Health Initiative Award
CA: Auction planned for former dairy
IL: Some dairy farms fight to keep use of growth hormones in cows
Dairy co-op fills daily with Michigan's flavor
Dairy nutrition specialist sinks teeth into bovine overeating
DRAXXIN Receives New Label Claim for Treatment of Pink Eye
Conklin Company Welcomes Former NAFB President As New Spokesperson
John Oncken: Annual tour proves no two farms work alike
Application Deadline Approaching for Holstein Association USA Awards
UK: Rotary parlour saves time and cost
NZDL to match Fonterra payout
Spain: Dairy farmers attack milk factory
Thursday, March 13, 2008
Mid-Week Milk Production and Heifer Import Update
Progress On New Farm Bill Is Being Bogged Down
Wells' Dairy workers reject deal to cut pay by $5 million
Congress, White House seen $4 billion apart on farm law
Hormone-free milk labeling subject of 4-hour Ohio debate
Dairy waste spills into SW Idaho creek; fine still unknown
Dairy Farmers Speak Out | KXNet.com North Dakota News
Grant Sends Beef Ambassadors to N ation’s Capital 
Milk prices slowing EU dairy herd decline
Wednesday, March 12, 2008
The U.S. Dairy Calf and Heifer Conference is April 1-3
Recent USDA Decision Would Raise Milk Prices in Miami, Atlanta and other...
Expert warns dairy producers not to over schedule cows
MD: Dairy farming bill moves on without funding
Minnesota Milk is voice of state's dairy industry
Olmsted ADA will offer dairy products at Agri News Farm Show
Dairy Producers Can Milk Information
Tuesday, March 11, 2008
Latest World Ag Supply and Demand Estimates Released
Market Analysis
CA: Valley Dairy First In The State To Produce Bio-Gas
CO: Weld dairy sector growing
OH: Mega dairy controversy continues
OH: Dairy product labeling topic of meeting
WI: Parlor Tour to Focus on Compost Bedded Barns
Cattle rustler gets jail time for stealing from Oakdale dairy
Wells' Dairy workers to vote on deal
WI: Vanderstappen Earns Walworth County Dairy Scholarship
WI: Former dairy’s freezer now filled with animals
Dairy co-op fills daily with Michigan's flavor
Aucklanders swapping traffic jams for dairy sheds
International Dairy Federation meets in India
Monday, March 10, 2008
California April Class 1 Prices Announced
Dairy Farmers Request Equity
U.S. Dairy Industry Needs To Maintain Export Demand
Pfizer Animal Health Kicks Off Excede Expectations Sweepstakes
Milk Producers Council Weekly Update
CA: Dairymen discuss milk output, plant capacity and impact on prices
CO: Weld dairy sector growing
GA: Sewage-Based Fertilizer Safety Doubted
IN: Cows hate ‘mooving’ clock up
MA: state mulls milk boost
WI: From Cow Pies to Clear Skies: Wisconsin Family Dairy Farm Lets...
Penn State and Cornell are offering HR management training for ag advisers, educators
Dairy Students Compete in Western Regional Dairy Challenge for the 3^rd Year  
New Feed Supplement Helps Newborn Calves Cope with Scours
UK: Jobs to go at dairy firm plants
Friday, March 7, 2008
Weekly Market Recap
Dairy Producers Are Facing Tough Times
Latest Slaughter Count
MA: Dairy farmers’ study seeks long-term aid
Australia: Trade buyers line up for Dairy Farmers
Bioactive dairy protein focus for Manitoba-Australia team-up
UK: 'Need fair price to stabilise the dairy industry’
UK: Campaigners urge public to choose udder milk options
Canada: Quebec backs Gatineau dairy project
Canada: Maintain Dairy Profitability with Precision
Jamaica: $1 billion dairy rescue plan - Milk production at 20-year low
Thursday, March 6, 2008
There's great news in U.S. dairy exports
Now "may" or "may not" be the right time to exit 
Farmers use technology to breed better cattle
Proper hoof trimming reduces lameness in cows
CA: Raw-milk law enforced for 1st time  State clamps down
UK: Dairy prices are up 33%
Wednesday, March 5, 2008
IDFA's Processor Perspective
NY: Dairy, livestock day and trade show taking place today in Slate Hill
USCA: TDA Issues Order Stopping Canadian Cattle Not Consistent ...
Wells' Dairy and worker group reach deal  Related
California cows start passing gas to the grid
WI: Milk prices take dip for state farmers
Behnke Promoted as Semex USA Central Region Manager
MA: Something to say cheese about
Eastern European dairy outgrowing Western rivals
Tuesday, March 4, 2008
U.S. Dairy Farmers Host TeleConference Outlining Crisis in Dairy Industry
Dairy Farmers Across Country Praise Introduction Of Landmark Specter-Casey Bill
Dairy farmers from 5 states speak out
CA: PG&E to tap into cow power
Keeping cows cool in the summer big challenge for milk producers
Australia: Dairy industry set for recovery
Australia: Farmers to earn more from milk
Ireland: It's essential we claw back milk supplies
UK: Dairy farmers say they must be paid more for milk
UK: 'Milk could soon be in short supply'
Dairy farmer who decided to escape to the wild, frozen lands of Canada
Monday, March 3, 2008
January Dairy Products Report
California Class 4 Prices Announced
DMI Update
Dairy CheckOff Update: Feb. 2008
Rising Costs Had Farmers Talking In Abingdon, Va., On Saturday
WI: Farm column: Minor league provides future dairy farm stars
Badger Dairy Camp Applications
Looking at manure management in a new light
Milk Producers Council Weekly Update
Western United Dairymen Update
Barberton's Rosie the cow moves to new pasture
Import Watch: 4th Quarter 2007
N.D.: Officials hear views on proposed 1500-cow dairy farm  Dairy Dispute


DMI Update
(March 31, 2008) Visalia , California dairy producer and DMI board member, Ron Koetsier, was back on Monday’s “DMI Update” to talk about the dairy check off involvement with the National Football League. He talked about it with DairyLine’s Bill Baker at the recent World Ag Expo in Tulare.  

He said that the check off continues to work with the NFL even though the season is over and the Super Bowl is behind us. He said it’s a partnership where “everybody has to do their part.” He reported that “We (the check off) don’t just give money to them (the NFL) and they don’t give money to us, we just bring the nutritional message and they bring the fitness message to the children, to the kids, to the fans, everybody who likes football.”

The message of the campaign is that you have to be active, Koetsier said. “You have to have good physical activity but you have to have a healthy diet and dairy is a big part of that. It just keeps you in good physical condition and gives you the energy to get out there and make the big plays.”

Whey beverages are also part of the promotion along with milk, according to Koetsier, plus whey nutrients and whey supplements “because athletic participants are looking for ways to build their body and they have to do it with something that is good, favorable, and healthy.”

Milk Labeling in Ohio
(March 28, 208) Ohio will be a battleground state in the upcoming presidential election and it's turning into a battleground state regarding milk labels. Dairy Profit Weekly editor, Dave Natzke, reported Friday that the Ohio Department of Agriculture refilled a proposed dairy labeling rule following a public hearing earlier in March. The rule seeks to address so-called "absence labels” on milk, with the center of the debate being recombinant bovine somatotropin, or rbST-free milk.

Natzke said the rule seeks to balance the consumers’ “right to know” while preventing misleading or confusing claims. The revised Ohio rule, which will be subject to a public hearing on April 18, prohibits compositional claims such as hormone-free, since all milk contains natural hormones.

The rule does, however, allow "production claims" on labels, noting that the milk was produced from cows not treated with rbST. Companies using those labels must also include language noting that the Food and Drug Administration has determined that there is no significant difference between milk derived from rbST-supplemented and non-supplemented cows.

Processors and retailers, including the International Dairy Foods Association, support labels, according to Natzke, because they help consumers identify the milk they are demanding. However, processors oppose state-by-state labeling requirements due to the added costs when milk is marketed across state lines.

Label opponents, including the American Farmers for the Advancement and Conservation of Technology charge that the labels are meant to imply that those dairy products are safer than non-labeled products and are being used to raise retail prices to confused consumers, Natzke reported.

American Farm Bureau data shows average retail prices of labeled milk are about 70 cents per half-gallon more than non-labeled milk, according to Natzke, and that translates into a $17 per hundredweight markup on retail prices, while in many cases dairy farmers are getting no more than 25-50 cents per hundredweight of that premium.

Ag Will Likely Be Exempt From New EPA Emission Regulations
(March 27, 2008) Livestock and dairy farms should be exempt from the Environmental Protection Agency’s so-called Super Fund air emission regulations, according to National Milk’s Rob Byrne. The Federation, along with the National Council of Farmer Cooperatives, submitted comments to that effect to the EPA and Byrne talked about it in Thursday’s Capitol Hill Update on DairyLine.  

The EPA, in late 2007, published a proposed rule relating to the Comprehensive Environmental Response, Compensation, and Liability Act and the Emergency Planning and Community Right-to-Know Act (CERCLA/EPCRA) which are intended to address industrial waste sites and their emissions.

Byrne said there was some confusion as to whether they should be applied to agricultural operations and in the proposal, the EPA indicates that farms and waste from farms be exempt from reporting under these regulations.

The rule does not allow agricultural operations to do whatever they please as they are still governed by EPA’s Clean Air Act and the Clean Water Act which Byrnes said was the appropriate place to regulate farms and waste from farms.

“Farmers are doing a great job now of complying with existing regulations and those are the appropriate places for that, Byrne said. “CERCLA and EPCRA are intended to address super fund sites, waste sites from industrial accidents and those types of things and not farm operations.”

When asked if there was a concern that EPA would not exempt agriculture, Bryne answered that, EPA’s proposal contains the exemption and he hopes that they finalize it. He admitted that there are groups who object to the exemption of agriculture and have submitted comments to that effect but he believes that, after reading through the EPA’s proposal, the exemption will remain.

Dairy Profit Weekly editor, Dave Natzke updates us on the latest in the BST/milk labeling controversy on tomorrow's DairyLine broadcast and Dr. Paul Chandler has his weekly "Nutrition Update" in our second half.

A Lot Of Eyes On Rising Feed Prices
(March 26, 2008) A lot of eyes are on rising feed prices, especially dairy producers and, while the recent plunge in grain prices appeared to be a reprieve, it was short lived as prices have rebounded, according to Downes-O’Neill dairy broker, Dave Kurzawski.

Kurzawski reported that 20 percent of the value of the bean price and just over 10 percent of the corn price was lost in about one week’s time. He blamed what he referred to as “A speculative sell off” which happened on the heels of the Bear Sterns blowup two Fridays ago.

“You have a lot of fund money in those agricultural markets,” Kurzawski explained, “Not so much in the milk but in the grain markets and they all kinda ran for the door at the same time but they are rebounding this week and they still remain at very elevated levels.”

Kurzawski recommend that dairy producers lock up grain prices when they can because he doesn’t believe prices will get any better in the short term. The Prospective Plantings report is out March 31, he said, and after that it’s going to be a weather concern if “we can even get the crop in the ground in an orderly fashion.” The Midwest is pretty wet right now, according to Kurzawski, “So there’s going to be some concerns going forward.”

As to milk, Kurzawski advises that producers buy $15 put options and sell the $19 call options for 2009. He said they are going further out than ever in their hedging strategy for milk right now.

Kurzawski doesn’t see cheese prices falling much from present levels. He expects a range of $1.70 to $1.90 over the next month or so. For more information, call Dave at 1-800-231-3089.

First Sale in Cash Market Since Last Month
(March 25, 2008) Cheese prices were unchanged yesterday but butter gained a penny and the first sale occurred in the cash market since late February. Downes-O’Neill dairy economist, Bill Brooks, said the lack of sales is very odd considering we just came through Easter, one of the two heaviest demand times for butter.

Once the price started to move up, Brooks said it appeared that sellers held back to see how high it would go, and held inventories in confidence, anticipating that demand will be good all year long which follows the pattern of a year ago.

“Prices took off at a time that you weren’t really expecting it to, given the market fundamentals, and as a result,” he said “We didn’t see butter prices go as high as other dairy commodities so we could be setting ourselves up for a repeat of that again this year.”

When asked if ice cream demand or exports were contributing to the strength, Brooks said that ice cream production is starting to come into play and “sopping up a little of the cream that’s currently available,” as is buttermilk production, “but not to the extent that we’re starting to short churns by any means.”

There have been some exports, according to Brooks, but the U.S. is in an “iffy position on butter” because it doesn’t make the kind of butter demanded in the world market. We make a salted, 80 percent butterfat, butter while the world market typically wants an 82 percent butterfat, unsalted product. He added that it takes a “leap of faith” on the part of U.S. butter manufacturers to shift its production and “it takes a long time to consummate those types of sales.”

When asked how soon the cheese price would weaken again, Brooks admitted that it rebounded quicker than he had expected but, as we go on into April, “We’ll definitely see things turn around as the spring flush comes on and there’ll be a shift in plant margins becoming a lot stronger than what they’re looking like now.”

Dairy Checkoff Continues Work With Fast Food Chains
(March 24, 2008) The dairy check off continues to work with fast food chains across the country, according to Visalia, California dairy producer and DMI board member, Ron Koetsier. Koetsier talked about it with DairyLine’s Bill Baker at the recent World Ag Expo in Tulare . 

He reported that research by the National Dairy Board provided the ammunition they needed to convince fast food chains to begin offering milk in round, single-serve re-sealable, plastic containers and such outlets now exceed 60,000. Some of the better known chains include McDonalds, Wendy’s, Burger King, Sonic, Carl’s Junior, and Subway, according to Koetsier.

He added that, while the recent run up in retail milk prices has hurt sales there, it has helped drive milk sales at fast food restaurants and, as more restaurants offer it, it will help to offset some of the losses at retail.

Koetsier also pointed out that Dairy Board research shows that the “3-A-Day of Dairy” campaign has resonated with consumers and “by keeping that message in front, people realize that they need to have a serving of dairy.” He adds that the fast food chains now believe that, instead of “super sizing everybody,” they need to offer a more healthy menu, “So dairy is a part of that.”

Dairy Markets Weekly Review

(March 21, 2008) The cash cheese market started the Easter holiday shortened week on a continued decline from the previous week but reversed gears Tuesday. The block price closed Thursday at $1.80 per pound, down just a penny on the week but 40 cents above a year ago. Barrel closed at $1.7750, up 3 1/2-cents on the week, and 36 1/2-cents above a year ago. Twenty one cars of block traded hands on the week and 22 of barrel. The NASS U.S. average block price averaged $1.9975, down 4.8 cents. Barrel averaged $1.9745, down 2.7 cents.

Butter closed Thursday at $1.3875, up 3 1/2-cents on the week, and 5 3/4-cents above a year ago. Nothing has sold in the cash butter market since February 29; the gains have all come on unfilled bids. NASS butter averaged $1.2785, up 7.9 cents. NASS nonfat dry milk averaged $1.2385, down 3 cents, and dry whey averaged 24.38 cents, down 0.3 cent.

DFA Meeting Recap
(March 21, 2008) Dairy Farmers of America, the nation’s largest dairy cooperative, held its 10th annual meeting in Kansas City this week. Dairy Profit Weekly editor, Dave Natzke, was there and reported in Friday’s broadcast that it was a bittersweet year for DFA and its 10,600 dairy farmer members and that was reflected in the financial and business reports presented by the co-op’s leaders.

On the positive side, the amount of milk marketed through DFA was up slightly, to a record 61.9 billion pounds, according to Natzke, and that’s about one-third of the nation’s total production.

The high 2007 milk and dairy product prices pushed net sales topping $11.1 billion, up $3.5 billion from 2006, he said, and prices paid to DFA members averaged $19.38 per hundredweight in 2007, $6.30 more than the year before.

However, the record prices and market volatility had a downside on the processing and marketing side of the business and DFA leadership used an unprecedented closed delegate meeting a day before the annual meeting to discuss those issues, Natzke reported.

Rick Smith, DFA president and CEO, noted the Class I, or fluid market, was especially troublesome, with milk price increases and an inability to pass along margins in the marketing chain. Dean Foods, which buys 80 percent of its milk from DFA, reported a difficult year, and Smith characterized National Dairy Holdings, DFA’s largest investment, as a “financial performance casualty.”  

DFA terminated 14 joint ventures and closed three plants, including cheese plants in Lovington , New Mexico , and Corona , California , and devalued some assets in 2007. These actions resulted in total non-cash charges of nearly $145 million. The co-op’s bottom line saw a net loss of $109 million, the largest in the co-op’s 10-year history.

Despite those losses, Smith said the business decisions made this year will improve DFA’s marketing efficiency and put it in a better position for the future.  

Latest Cold Storage Figures Released
(March 20, 2008) February butter stocks totaled 201.1 million pounds, according to the USDA’s latest Cold Storage report issued this afternoon, up 13 million pounds or 7 percent from January, and 15.7 million or 8 percent above those in February 2007. January butter stocks were revised up slightly.

American type cheese totaled 518.4 million pounds, up 24 million pounds or 5 percent from January, but 46.7 million pounds or 8 percent below a year ago.  January stocks were revised up 700,000 pounds.

The total cheese inventory for February is 805.5 million pounds, up 24.1million pounds or 3 percent from January, but 70.2 million pounds or 8 percent below a year ago. January stocks were revised up 1.7 million pounds. Full Report: Text | PDF

Latest Livestock Slaughter Report
(March 20, 2008) Thursday’s Livestock Slaughter report from the Agriculture Department shows 214,000 dairy cows were sent to slaughter in February, down 22,000 from January but 12,000 head more than a year ago.  450,000 head have been sent to slaughter this year, up 20,000 head from the first two months of 2007. Full Report: Text | PDF

Consumer Scrutiny Over Meat Recall
(March 20, 2008) Consumer scrutiny over animal care has heightened again due to the Hallmark meat recall. National Milk is taking steps to help educate dairy producers in that regard, according to Chris Galen in Thursdays broadcast. Galen said that the Federation’s National Health Committee met this week to discuss what additional educational materials might be warranted in response to what people have been viewing on Youtube and the Humane Society’s website.  

“We need to reassure both customers and ultimately consumers, that decisions about cow care, including culling, are sound and responsible,” Galen said. Congress, the USDA, and private sector companies are going to be asking more questions about beef industry practices, including the treatment of all cattle, he said, and “We will have to deal with that.”

We talked about the National Dairy Animal Well being Initiative which was developed last year by several dairy entities to set on farm standards the industry could rally around and point to as practices that dairy farmers uniformly endorse.

Galen looks for more discussion on this in the coming year as a resource that producers can use because “In the future we can expect more food industry customers to care about what happens on dairy farms and beef ranches and that may include looking at what sort of standard individual producers have.”

Dairy farmers are invited to comment on the guidelines to National Milk and a website is available for more information at www.dairywellbeing.org.

Dairy Outlook
(March 19, 2008) Milk yield will grow more slowly in 2008 as a near-term response to high feed prices, according to the Agriculture Department’s Livestock Dairy and Poultry Outlook issued this morning. Milk production will continue upward through most of 2008, according to the report, lowering milk prices. Exports will continue to figure prominently in dairy product price formation. Prices will be lower than in 2007, it said, but not as low as they would be without exports.

Production is forecast to rise 2.7 percent in 2008 over 2007, reaching 190.7 billion pounds. The increase comes as cow numbers are forecast to rise above I percent in 2008. Feed prices continue to rise about year-earlier levels, and are expected to do so for the remainder of 2008. However, those producers who have expansion plans underway will continue to implement them.

Government Needs To Work With The Right Tools
(March 19, 2008) Government intervention in producer milk prices was our topic Wednesday in the “Processor’s Perspective.” The International Dairy Foods Association’s, John Rutherford, liked it to comedy routines in the late seventies and early '80's that parodied kitchen appliance infomercials. One such product, he said was on “Saturday Night Live,” when Dan Akroyd put a fish in the "Bass-o-matic", ground it up, drank the concoction, and proclaimed, "Ummm, that's good bass!"

Another invention came from a comedian named Gallager. One of his trademark stunts was to demonstrate his simple food processor called the Sledge-o-Matic, where he placed food items on a stool and used his tool to smash the food, often splashing pieces into the audience.

Rutherford admitted that these examples were a bit of a stretch but illustrates a point. He said “There are tools which are correct for certain jobs, and tools that are not. If you want a drink with fish protein in it, the "Bass-o-matic" is not the correct way to get it.  And if you need mashed potatoes for dinner, you aren't going to reach for the sledge hammer.”

He pointed out that discussions in and around the US dairy industry often turn to schemes to raise producer returns and, too often a common thread in those talks involves arbitrarily increasing to the cost of fluid use milk, also known as Class I. 

“The Federal Order system is for the efficient allocation and movement of milk to supply Class I uses,” Rutherford argued. “It’s about combining pool receipts and equally paying all farms supplying a market. If all these conditions are met, then why should USDA create or inflate price factors solely to raise prices?”

He quoted USDA’s, Lloyd Day, Administrator of the Agricultural Marketing Service, who told the House Agriculture's Subcommittee on Livestock, Dairy, and Poultry last spring that "The marketing order program is not a price or income support program." "USDA operates the Milk Price Support Program and the Milk Income Loss Contract (MILC) for price and income support purposes."

“I am willing to bet the next time you change a flat tire, you don't reach for a pitchfork,” Rutherford concluded. “Let's ask our national policymakers to employ the correct tools as well.”

Cash Cheese Market Loses Ground
(March 18, 2008) The cash cheese market continued to lose ground the week of March 17. University of Wisconsin Emeritus Professor, Dr. Robert Cropp, said in Tuesday’s DairyLine that $1.70 by April first was his expectation, even though cheese has been tight. He blamed rising milk production and seasonality for the weakness.

Demand has been pretty good, according to Cropp, but it’s been a tight situation because of the concern over plunging inventory values when cheese prices dropped. Buyers and manufacturers have been cautious, he said. January Cheddar production was down about 4 1/2 percent from a year ago and he cited the big decline in California due to a closed plant. Demand may be okay, he said, but supply and demand has been kept pretty tight.

When asked if the export market had contributed to the strength of the cheese market, Cropp replied, “Yes it is.” January cheese exports were up about 20 percent from a year ago, he said, and exports ended last year pretty strong.

That’s only about 2.4 percent of total U.S. cheese output and a little over 1 percent of the Cheddar supply but it is a factor, he said.

Look for the butter bubble to burst after Easter, according to Cropp. Specials are on right now, he said, and that has boosted demand but Class II product demands have been filled so more cream will be available. Butter prices are above a year ago, he concluded, but it’s about at the peak and will see a little decline as we move into summer and then rebound next fall.

February Milk Production Tops A Year Ago by 6 Percent

(March 17, 2008) U.S. milk production continues to run well ahead of year ago levels and hasn’t shown a decrease since February 2005. The Agriculture Department issued preliminary data for February 2008 this afternoon and totaled a whopping 13.9 billion pounds, up 6 percent from February 2007, but keep in mind the data includes the extra day in February this year.

Revisions added another 40 million pounds to the January estimate which now stands at 14.7 billion pounds, up 2.7 percent from January 2007.

The CME’s Daily Dairy Report lends some perspective. It points out that, when adjusted for the extra day in February this year, the 23-state total is up just 2.4 percent and the extrapolated 50-state total is only up 1.9 percent.

February cow numbers totaled 8.42 million head, up 9,000 from January, and 136,000 head more than a year ago. Output per cow averaged 1,653 pounds, up 69 pounds from a year ago.

California ’s February output was up 5.5 percent from a year ago, thanks to 46,000 more cows and 50 pounds more per cow. Wisconsin was up 4.4 percent, on a 60 pound gain per cow and 3,000 more cows. New York produced 7.1 percent more milk than a year ago, thanks to a 110 pound gain per cow outweighing a 2,000 cow decline.

Idaho was up 11 percent, thanks to 30,000 more cows an 80 pound gain per cow. Pennsylvania was up 2.6 percent on a 30 pound gain per cow and 3,000 more cows, and Minnesota output saw a 4.4 percent increase on a 40 pound gain per cow and 8,000 more cows in the milking herd.

The biggest percentage gain was scored in Colorado , up 18.2 percent, followed by Texas , up 16 percent, New Mexico , up 12 percent, and then Idaho . The biggest loses occurred in Oregon , down 8.2 percent, Missouri , off 5.1 percent, and Kentucky with a 1 percent decline.

U.S. Dairy Exports Enjoyed Unprecedented Sales in 2007
(March 17, 2008) Colorado dairy producer and U.S. Dairy Export Council (USDEC) board member, Les Hardesty, was our guest in Monday’s “DMI Update” to complete our discussion of the hot 2007 dairy export market. U.S. dairy exports enjoyed unprecedented sales in 2007, driven by U.S. dairy producer’s willingness and ability to capitalize on tight world markets and strong dairy demand.

Hardesty pointed out that dairying today in the United States “truly is a global business,” and he said “The health of our U.S. dairy industry truly depends on the strength of world markets and that’s a change from the last few years.”

2007 U.S. dairy exports totaled $3.06 billion, up 62 percent from 2006 according to Hardesty, who called it “great news for dairy farmers in the U.S,” and, because of that strength, the U.S. enjoyed a trade surplus in 2007.

The continued success in the world market is dependant on DMI, the national dairy check off, and the USDEC, Hardesty said, and “Because U.S. dairy products are of such great quality, the world wants our dairy products,” and he said that he was proud to be a dairy farmer and a member of the USDEC.

He also reported that 39 percent of the nonfat milk dry milk produced in the U.S. in 2007 was exported and 59 percent of whey proteins were exported and he quickly added, “Those are huge numbers and truly do help drive our domestic prices and help to keep our domestic prices firm for U.S. producers.” He said that “Exports are no longer just an opportunity but truly are a critical factor in driving our market.”

Export gains occurred in 2007 in nearly all categories of dairy, according to Hardesty. On a value basis the four top categories being dried milk, either skim milk powder or nonfat dry milk, whey protein, cheese, and lactose. Those four categories alone equated to three quarters of U.S. dairy exports, he concluded.

Dairy Markets Weekly Review
(March 14, 2008) Weakness continued in the cash cheese market the second week of March. Block cheese ended the week at $1.81 per pound, down 5 1/2-cents, but 45 3/4-cents above that week a year ago. Barrel closed Friday at $1.74, down 12 3/4-cents on the week, but 38 1/4-cents above a year ago. Seventeen cars of block traded hands on the week and 15 of barrel. 

The NASS-surveyed U.S. average block price hit $2.0452, up 5.6 cents. Barrel averaged $2.0014, up 3.5 cents.

Cash butter continued to move higher on bids and closed Friday at $1.3525, up 3 cents on the week, and 5 1/4 above a year ago. Nothing was sold on the week. Grade A and Extra Grade nonfat dry milk dropped a dime, to $1.30 per pound.

NASS-surveyed butter averaged $1.2065, up 3.8 cents. Nonfat dry milk averaged $1.2679, up 2.4 cents, and dry whey averaged 24.72, up 1.1 cents on the week.

U.S. Dairy Exports Can Remain Strong
(March 14, 2008) Early indications are that U.S. dairy exports can remain strong, according to Dairy Profit Weekly editor, Dave Natzke, in Friday’s broadcast, although prices for major powder products will be weaker, cutting into export income.

The USDA’s Foreign Agricultural Service’s latest estimates put U.S. dairy exports at a value of $323 million in January, up 4 percent from December and more than double that of January 2007. January imports were estimated at $258 million, down 12 percent from December, but $30 million more than January 2007. 

U.S. dairy exports for the first quarter of fiscal year 2008 (October 2007-January 2008) totaled $1.3 billion, 111 percent more than the same period a year earlier.

At the same time, first-quarter imports were valued at $1.1 billion, 19 percent more than a year earlier. So, through the first four months of FY ’08, the U.S. dairy trade surplus totaled $181 million.

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