May 2008 Archived Dairy News

Latest Dairy News    Archived Cash Prices

Friday, May 30, 2008
Dairy Markets Weekly Review 
May Federal Order Class III Price Up $1.42
CDFA Holds Hearing On Class 1 Adjustment
Md. tightens livestock inspection rules after probe
'Bittersweet day' as renowned Holstein herd goes on the block
MA: Dairy farms get a helping hand
AK: Fresh, local milk hits the shelves
Consumer Trends Point to Healthier Dairy Choices
Thursday, May 29, 2008
With Farm Bill Behind Us Now Other Issues To Tackle
MN: Autumnwood Farm has 'Got Milk'
Pennsylvania is fifth largest milk producer in US
VA: Kids get a lesson in dairy dynamics
German Milk Strike Spreads to Other European Nations
German agriculture chief supports dairy farmers
Wednesday, May 28, 2008
Outlook Conference June 18-19 in Chicago
Dairy Market Report for May 2008 - Roger Cryan
Animal care key to dairy success
Final Plans Set for National Holstein Convention
MI: higher costs hit farmers
TN: Scottie Mayfield Talks About Why Milk Prices Are So High
"Got Milk?" Gets Spanish Site
Mid American Ag and Hort Services to Host Kentucky Human Resource Conference  
USDA Announces CRP Permitted Use For Livestock Feed Needs  Ag. Sec. Transcript
USDA plan for CRP acres well-intentioned, but wrong solution for cattlemen
UK: Farmers fear continental drift of lower milk prices
Tuesday, May 27, 2008
Market Analysis with Alan Levitt
Idaho Dairy Implements MobileDemand Tablet PC in...
Dean Foods Explores Turning Cow Waste to Energy
IL: A cow's place in history
OR: Demand still rising for raw milk
VA: Regulation headaches for local ice cream maker
Colleges try composting to recycle wasted food
Ireland: The heat-resisting bacteria
German dairy farmers declare strike for higher prices
UK: NFU welcomes Morrisons support for dairy farmers
Fonterra sees online trading rising
Fonterra To Maintains Prices Of Dairy Products
Monday, May 26, 2008
Weekly Update -- Alliance of Western Milk Producers
Milk Producers Council Weekly Update
Upcoming CDQAP Workshop
Western United Dairymen Update
Weekly Heifer Import Update
NMPF Submitted Testimony to the Senate Ag Subcommittee on Climate Legislation
New Guides Available for Negotiating Organic Milk Contracts
CO: Greeley Dairy Farm Won't Rebuild
CO: Thirty years' work at Brown Cow dairy gone in seconds    |
Southeast Minnesota news and notes
WI: Ixonia dairy farm plans 1100 cow expansion
WI: Energy prices go to market
Dairy Checkoff Update - May 2008
Checkoff Funding The Search For Great Tasting Cheese
Indiana Dairy Farmers Stars in Victory Lane
Did you know June is Dairy Month in Wisconsin?
Parmalat and Murray Goulburn would go halves in Dairy Farmers
Friday, May 23, 2008
NMPF Applauds Farm Bill Veto Override by House, Senate
Dairy Markets Weekly Review
Federal Order Class I base Up $1.56
Congress Overrides Presidential Farm Bill Veto, 14 of 15 Farm Bill Titles Enacted Into Law
Crop Progress Report
Cow Calf: Heat & It’s Effect On Livestock
The Central order Marketing Service Bulletin for May 2008
Dairy Products Maintain Strong Position Within Functional Foods Movement
CO: Dairy lost in Thursday storm
Dairy Farmers Charged With Price Fixing
MN: 'Pride in Product’ drives dairy farmers – and
Farmers hope to stanch decline of Missouri dairy farms
NY: Congress passes aid to upstate dairy and specialty crop farmers
OK: Price of milk edges off record highs
HAY! Take a Fresh Look at NAFA’s Recently Expanded Website
WI: Annual Dairy Herd Improvement Association awards presented
South Korean Leader Apologizes Over Beef Deal
Parmalat would split Dairy Farmers
Thursday, May 22, 2008
April Cold Storage Report
Federal Order Class I Price Expected To Jump $1.54
Farm Bill Update: Truth is Stranger Than Fiction
Mix-up negates House override of farm bill veto  
Failure To Pass Immigration Reform Disappointing
New ag rule closing downer cow slaughter exception
Dairy Situation & Outlook: Strong Milk Production, Cheese Prices Up
Cabrera Joins UW-Madison Dairy Science Dept., Extension
CDRF Celebrates 20 Years of Innovation Through Dairy Research and Education  
Dairy Robotics Q and A
Michigan Department of Environmental Quality meeting about ...
PA: Summer Interns Selected for Center for Dairy Excellence
WI: Sassy Cow Creamery to Host Grand Opening May 22
WI: 300 Students Learn Importance of Agriculture
MI: Farm Fair: A Kid’s Eye View of Living Off the Land
WA: Hundreds oppose dairy on reservation
The Chinese Dairy Industry Has Become More Market-Oriented, Which ...
UK: Reduce culling and save money
Danone’s new facility kicks off with Zidane
Wednesday, May 21, 2008
Processors Perspective on Farm Bill
NMPF Statement in Support of USDA Decision to End Use of Downer Cattle In Human...
Despite losing farms, SD dairy industry grows
Regulators probing alleged milk price manipulation
Tuesday, May 20, 2008
Cash Prices Strengthen
NMPF Calls On Senate To Pass Immigration Reform Measure For Ag Employers, Workers
Larry Schultz Art Show from June 8 to July 6
Monday, May 19, 2008
April Milk Production up 2.5 Percent
Milk Producers Council Weekly Update 
Weekly Update -- Alliance of Western Milk Producers
Western United Dairymen Update
2008 Annual Meeting of the American Dairy Science Association (ADSA)
BI: Three Tips For Cow/Calf Producers To Unlock The Potential Of...
Milk Equivalent Exports Now Reported As Separate Item In Tables
Hay trading slow
Higher Feed Costs & Lower Cattle Inventories Likely Ahead
Iowa State Researchers Aim To Improve Nutritional Quality of Beef
Dean Foods Company to Webcast Annual Stockholders' Meeting
Got Milk Freshens Up Web site with Interactive Features
Product Research and Innovation Vital Part of Dairy Checkoff
Why even provide children with sugar-laden milk?
NV: History of the dairy industry in Churchill County
Canada: A challenge for the world, an opportunity
Japan: They can't believe there's no butter
Australia: Overseas sales drive up milk prices
Parmalat joins locals for Dairy Farmers bid
Fonterra goes on the offensive
Friday, May 16, 2008
Dairy Markets Weekly Review
Dairy Outlook
Latest Feed Report Indicates Record High Prices
Revised Trading Hours for Spot Dairy
NMPF Applauds Both House and Senate for Approving Farm BillFeingold Helps Dairy,
  Small Farms in Final Farm Bill
AZ: Entrepreneur takes drink from homemade to market
IL: Ag-in-the-Classroom students visit dairy farm
Sharply Reduced Cotton Plantings Will Shrink Cottonseed Supply
Alfalfa Management Practices Aid in Curing Process
Are Cattle Warming The Globe?
NZ dairy cow population at 5.3 million
Canadians’ good luck on food prices is expected to run out in 2009
Chris Brown wins Ontario Dairy Award
Thursday, May 15, 2008
House Overwhelmingly Approves Food, Conservation and Energy Act Conference Report
Milk Producers Council Urges Feinstein and Boxer to Vote No on Farm Bill
Statement by Ag Secretary Schafer on House Passage of the Farm Bill Conference Report
Obey Reluctantly Supports Passage of New Farm Bill
Farm Bill Expected To Pass But Faces Veto
Wednesday, May 14, 2008
Fly Control on Your Dairy
Farm Bill Conference Report
Alltech Launches Dairy Workers Program
CA: Deal proposal for dairy producers
CA: Copper wire stolen from dairy farm
IN: USDA's starling kill at dairy called legal
IN: Morgan County 4-Hers tour Fair Oaks Farm
TX: Farm bill extends current milk tax
WI: 'Cow Experts' Needed For State Fair House of Moo
Australia: Calves to boost dairy careers
Tuesday, May 13, 2008
Market Analysis - Brian Gould, University of Wisconsin
Explore the World of Jersey Cheeses in Asheville
Foremost Farms USA^â Awards Ten Scholarships to Children of Member-Owners
Financial Lenders Gain Understanding of Dairy Industry
Group claims dairy used by Dean fails organic standards
It's Not Too Late To Be Counted In The 2007 Ag Census
WI: Bicyclists to Raise Money for Beginning Dairy & Livestock Farmers...
N.D.: Dairy Princess Shares Experience
New Zealand: Fonterra eyes Dairy Farmers
New Zealand: Food prices up - but dairy stable
New Zealand: Profits up on demo dairy farm
Monday, May 12, 2008
Milk Consumption Among School Kids: We Can Do Better
Milk Producers Council Weekly Update 
MI: Revised plans for 5000-head dairy await state review
PA: Development board learns of connections between dairy industry and...
PA: Innovative Dairy Attracts International Visitors
TX: Financial Lenders Gain Understanding of Dairy Industry
WI: Students learn about life on dairy farm
Audio: Colostrum Management - Pfizer Vet Visit
Canada: Robotic dairy barn inches closer for Kemptville Campus
UK: Farmers crack open bubbly as they discover a cash cow in dairying
UK needs dairy cattle genetics suited to country’s requirements in...
New Zealand: Record prices for dairy cows
"Kiss A Cow"
Friday, May 9, 2008
DFA Uncovers Unauthorized $1 million payment in 2001
California Class 1 Prices up $1.45
Dairy Markets Weekly Review
World Ag Supply and Demand Estimates
Push For Green Is Impacting Dairy Industry
NMPF Statement on Completion of Farm Bill Conference Package
Goodlatte Supports Farm Bill Agreement
Dairy Roadmap Will Improve Performance
Thursday, May 8, 2008
Animal Rights Activists Very Motivated By "Gotcha" Videos
Statement by USDA Secretary Ed Schafer on HSUS Animal Cruelty Video
April 2008 Dairy Outlook - Ken Bailey
NE: Try Another Option for Your Alfalfa This Year
TX: A dairy pretty cow
VT Dairy Challenge team wins Gold award
WA: County dairy farmers consider state incentives to build methane...
Dairy News From Down Under Dairy Week 
Wednesday, May 7, 2008
Processors Perspective on Class I Milk Pricing Forumulas
Bipartisan effort would prevent energy market manipulation
CT: Dairies Struggle To Keep Herds Competitive
MN: Hansons up to the challenge of being dairy producers
N.M.: Dairy farmers dedicated to land
NY: Dairy Farmers in Oneida County forced to cut costs
Ohio poultry and dairy industries sponsor new cooking contest
WA: Yakamas vote to ban new dairy feedlots
TB Strain May Be Linked To Unpasteurized Dairy, Study Suggests
Tuesday, May 6, 2008
Market Analysis
Statement of Senator Russ Feingold On the Farm Bill MILC Provision
NMPF News for Dairy Co Ops
WASDE: Revisions to Milk Supply in USDA's May 9th WASDE Report
World Dairy Expo Announced New Cattle Show Manager
California Milk Advisory Board Appoints Jim Dimataris Director of...
CA: TB Strain May Be Linked to Unpasteurized Dairy; Highest Incidence...
CA: Central Valley dairy operators win fraud case
PA: Dairy farm offers 'Moo to You' tours to students
D FA-Southeast Exec To Address Annual Mtg of Jersey Milk Marketing Organization
Experts to Convene to Discuss Global Food Supply & Demand, Rising Food Prices...
Safeway Names Winners in the Lucerne ® ''The Art of Dairy ™ '' Contest
Wisconsin farmers see increase in dairy, crop prices in April
WA: Bishop Dairy Farm celebrates industry award
World dairy prices start to decline
Beef Checkoff Veal Advertising Shows Versatility, Staying Power  
Canada: Online trading first step to dairy futures market?
New Zealand: Biotech grass developed to reduce methane
UK: Send a Cow celebrate 20 years of passing on hope
Dairy Congress Expo set on May 7 in CdeO
Monday, May 5, 2008
March Dairy Products Report
DMI Update
Weekly Update -- Alliance of Western Milk Producers
VT: Dairy-farm aid expanded under MILC deal
Western United Dairymen Update
Milk Producers Council Weekly Update
Cattle groups push for downer cow ban
Tips For Cow Calf Producers To Unlock The Potential Of Lifetime Health
MT: Holstein at Miller Colony gives birth to rare triplets
N.D.: Dairy Coalition seeks additional funding
Farmers Turning to Manure During Fertilizer Shortage  
Food prices to gradually moderate in coming years, economist says
Diversification is future for Scottish farmers
Friday, May 2, 2008
Dairy Markets Weekly Review
Multi Ag Media Launches Unique Direct Response for World Ag Expo Exhibitors
April Federal Order Class III Milk Price Drops $1.24
Dairy Profit Weekly Report
Outlook Conference June 18-19 2008 in Chicago
IN: Union Co. planners pull together CAFO info
MI: MSU to Offer Series Of Cow Camp Clinics In May, June
Rice not lacking in Japan, but it's running short of butter
Townsend Bell Shows His Cow-Milking Skills In Sonoma
Raw Milk Straight from the Cow
Lukewarm Dean Foods
Home delivery helps dairy find niche
Dairy farmer moooving on
Rural Worthington woman returns to her dairying roots
UK: Enhanced dairy unit and teaching facility opens at Wood Park Farm
UK: Rebuilding prize dairy herd after disease devastation
Australia: Dairy cows helping farmers expand their businesses
Ireland: Bull selection for the dairy herd Farm notes
Thursday, May 1, 2008
California Class 4 Prices Announced
How Is Conventional Animal Agriculture Impacting Our World?
Replacement Cow Prices Hold Fairly Steady
ID: State rules for dairymen on methanol suit
ABI Elects New Board Representatives at its Spring Board Meeting
Explore The World of Jersey Cheese in Asheville 
Steaks Sighted Running 26.2 Miles Through Boston
Dairy News From Down Under Dairy Week 

Blocks fell 7 1/2-cents, ending almost 14 consecutive gains, but recovered 2 cents on Friday, to close at $2.23 per pound, down 5 1/2-cents on the week but 34 3/4-cents above a year ago. Barrel closed at $2.20, down a nickel on the week but 29 cents above a year ago. Four cars of block traded hands on the week and five of barrel. The NASS U.S. average block price hit $1.9925, up 3.6 cents. Barrel averaged $2.0167, up a nickel.

The CME’s Daily Dairy Report points out that Oceania Cheddar is selling at $2.18-$2.36 per pound and that U.S. Cheddar has been selling below Oceania levels since August, helping fuel U.S. cheese exports.

Cash butter closed Friday at $1.48, down a penny on the week and 6 1/2-cents below a year ago. Fourteen cars traded hands on the week. NASS butter averaged $1.4646, up 3.1 cents. NASS nonfat dry milk averaged $1.3144, up 2 cents, and dry whey averaged 27.69 cents, up 0.4 cent. 

The May Class IV price is $15.26, up 70 cents from April but $3.22 below a year ago.

The NASS-surveyed cheese price averaged $1.9525 per pound, up 13.6 cents from April. Butter averaged $1.4170, up 6.8 cents. Nonfat dry milk averaged $1.2985, up 4.8 cents, and dry whey averaged 27 cents, up 1.4 cents from April.

CDFA Holds Hearing On Class 1 Adjustment
(May 30, 2008) We're all well aware that high energy costs are affecting milk production and milk processing but the nation’s largest dairy state, California, is considering adjusting milk pooling plans to address escalating transportation costs, according to Dairy Profit Weekly editor, Dave Natzke.

California’s Department of Food and Agriculture will hold a public hearing to consider adjusting Class 1, or fluid milk, transportation allowances and credits under the state's milk pooling plans, Natzke reported. The difference in the two proposals received so far is, who pays: farmers or consumers.

California dairy farmers pay a small fee into a fund, or pool, for each 100 pounds of milk they sell. To ensure an adequate supply of fluid milk to all areas of the state, transportation allowances take money from that pool to compensate processors and co-ops for milk hauling costs. Transportation credits, on the other hand, are the amount of money a milk buyer can deduct from the price it pays to farmers to help cover transportation costs.

California Dairies Incorporated, the state's largest dairy co-op, has proposed raising transportation allowances by 4 cents per hundredweight (cwt.) statewide, depending on location and distance, and raising the transportation credit for specific locations by 20 cents per cwt.

According to California’s Milk Producers Council, however, dairy producers are already faced with tighter income margins, and should not have to bear the full brunt of higher hauling costs. MPC analysis shows dairy farmers pay about 50 cents in transportation credits and allowances, and contend the CDI plan will raise that another 20 percent, to 60 cents per cwt. MPC proposed adding a transportation surcharge, equal to that increase, on pooled Class 1 milk prices, thus, passing increased fuel and transportation costs on to consumers.

The public hearing will be held July 1. CDFA will also hold a workshop on June 17 to discuss the alternatives and their economic impact.

Related: CDI Letter   MPC Letter   CDFA Revised Notice

With Farm Bill Behind Us Now Other Issues To Tackle
(May 29, 2008) National Milk’s, Chris Galen, said that it’s finally safe to say that the Farm Bill is done and, while the trade title will have to be passed again when Congress returns due to a snafu leaving that section out of the bill that Congress passed, “the outcome is not in doubt.”

USDA will now have to implement the various programs in the bill, Galen said, including the new milk price feed adjustor which was included as part of the Milk Income Loss Contract program.

“Because we’ve passed the Farm Bill hurdle we can now turn our attention to some other big issues,” Galen said. One is climate change legislation, and while Congress is not expected to do much the last six months of its term, one possibility, he said, is legislation that would create what is called a “cap and trade system” for reducing green house gas emissions and global warming.

NMPF testified May 21 before the Senate Agriculture subcommittee on rural revitalization, conservation, forestry, and credit regarding a hearing on Creating Jobs with Climate Solutions. The Federation stated that the dairy industry should be viewed as part of the solution to climate change, according to Galen, as “There is real opportunity here because farms can hopefully qualify for carbon credits for reducing methane and carbon dioxide emissions, there are ways that dairy farms can use digesters and different feeding practices and soil sequestration of carbon in order to help farms make more money and reduce global warming.”

This is something Congress will look at this year, he warned, and even legislation is not passed this year, the next administration will be faced with it and “it will be a big deal and we’ll be talking more about it in the future.”

When asked about methane digester costs being so high for dairy producers, Galen responded, “That’s the situation right now but, as carbon credits develop more economic value and there’s a greater market for them, we’re hoping that digesters will become more scalable to smaller size operations.”

Outlook Conference June 18-19 in Chicago
(May 28, 2008) There is help available to better understand what’s going on in this dairy industry in the upcoming 5^th annual Downes-O’Neill/E Dairy Outlook Conference, June 18 and 19 in Chicago. Downes-O’Neill dairy broker, Dave Kurzawski, reported that “If you feel like most folks whose bottom line is sensitive to commodity price risk and you feel like your prices are spinning out of control, there not a better place to be.”

Some of the brightest minds in the business will be there, he said, addressing managing price fluctuations in grains, dairy ingredients, energy, and more so it’s more than just a seminar on working the futures market.

“It’s all the different avenues you can take for price risk management,” Kurzawski said, as well as weather outlooks, financial outlooks, direction of the U.S. dollar, both in the years to come and in the next 12 months. There’ll be a discussion on China and its impact on our food prices and growing global demand for dairy and other commodities that affect the bottom line.

Kurzawski says producers will benefit by attending, even if they aren’t involved in the futures market and it will “open avenues of discussion and thought about how they can better manage their price risk’ as both producers and end users are in the same room together. For more information, log on to www.dairy.nu or call 1-800-504-5620.

Market Analysis with Alan Levitt
(May 27, 2008) The record high cheese price is puzzling to a lot of us who have been in this dairy industry for awhile, considering what milk production is doing. Market analyst, Alan Levitt, said Memorial Day weekend usually finds us swimming in milk and cheese but in today’s unconventional dairy world that’s just not the case.

The industry has long looked at that Milk Production report for direction, according to Levitt, as well as the calendar and yet in April dairy producers continued to expand despite higher input costs. Production in the 50 states was up 2.2 percent. This time of year manufacturing milk supplies are usually at their heaviest, Levitt said, and milk volumes are peaking as schools recess for summer so there should be plenty of milk available for cheese making.

“The Milk Production report has become less relevant to the cheese market this year,” Levitt explained, “Because, even though supplies are growing, manufacturers just don’t want to build inventory with high priced cheese and then have the market go south on them.” That keeps supplies of current cheese tight, he said, and forces users to go to the market every week or every day to bid for what they need.

When asked what this high price means for demand, Levitt pointed out that this is the sixth time in the last year that blocks have topped $2.09 and, in each of the previous run ups, demand has slowed and he expects that to happen this time as well however he admits that “We are now in a new inflationary economy this year so maybe people’s threshold of how much they can pay for cheese is a little bit higher but you start to get to a point where people are just going to have to pull back, in particular buyers.”

It’s not necessarily consumers at the grocery store, according to Levitt. “Maybe it’s the company that’s buying cheese for pizza or cheese for burgers,” he concluded. “They’ll start ordering less and eventually that will start backing up. This kind of price level hasn’t proven sustainable in the past.”

Checkoff Funding The Search For Great Tasting Cheese
(May 26, 2008) The search continues to develop a great tasting low fat cheese and the dairy check off is funding that quest. Onalaska, Washington dairy producer and DMI Board member, Liz Anderson, said in Monday’s “DMI Update” that consumers have been told that fat is not good for them and, while the dairy industry may disagree in some respects, it is trying to find a low fat cheese that tastes as good as a full fat variety.

Researchers across the country are working particularly on a Mozzarella that will still melt, have stringiness, and have the same flavor that a full fat type has, according to Anderson who said “we’re pretty close” because “you can’t have pizza without the stringy cheese.”

The check off is also involved with flavoring cheese, such as a chocolate. There’s also been work with “shaped cheese,” like the Disney shapes that Kroger has introduced the Mickey Mouse head and characters in Disney cartoons and movies. She said “It’s another way to get kids excited about cheese and cheese is a good snack for them.”

The check off is working to develop domestic manufacturing of commonly imported cheese such as Gouda which is in short supply. There’s no significant quantity of Gouda produced in the U.S. right now, she explained, and the check off is looking at ways to develop that here.

Pizza innovation is another important role of the dairy check off, according to Anderson. The check off continues to research how to make a better pizza, she said, and how to put more cheese into the pizza such as in the crust. She said it’s another way to get more cheese into more consumers.

Dairy Markets Weekly Review
(May 23, 2008) The block cheese price hit a record high $2.2850 per pound on Friday the highest it’s been since November 2007, up 20 1/2-cents on the week and 48 1/4-cents above that week a year ago.

Barrel closed at $2.25, up 22 cents on the week and 45 cents above a year ago.       Only three cars of block traded hands and 22 of barrel. The NASS U.S. average block price hit $1.9567, up 2.9 cents. Barrel averaged $1.9665, up 5.9 cents.

Cash butter took a breather following four weeks of gains and closed Friday at $1.49, down a penny on the week and 2 cents below a year ago. Fifteen cars were sold on the week. NASS butter averaged $1.4341, up 2.2 cents.

Both cash Grade A and Extra Grade nonfat dry milk closed Friday at $1.45 per pound, up 3 cents on the week. NASS powder averaged $1.2944, down 1 1/2-cents. Dry whey averaged 27.33 cents, up a penny.

Federal Order Class I base Up $1.56
(May 23, 2008) The June Federal order Class I base was announced this morning by the Agriculture Department at $18.18 per hundredweight, up $1.56 from May and 34 cents above June 2007. The Class III advanced pricing factor remained "the higher of" in driving the Class I value.

The NASS-surveyed butter price averaged $1.4223 per pound, up 8 cents from May. Nonfat dry milk averaged $1.3006, up 5.5 cents. Cheese averaged $1.9527, up 14.9 cents. And dry whey averaged 26.86 cents, up 1.6 cents.

Friday’s Livestock Slaughter report shows 219,000 dairy cows were culled in April, up 4,000 from March, and 6,000 more than April 2007. 884,000 head were retired from the dairy business in the first four months of 2008, 11,000 more than at this time a year ago.

Crop Progress Report
(May 23, 2008) While U.S. farmers had one eye on Washington this week, they also had one on the weather, according to Dairy Profit Weekly editor, Dave Natzke. Speaking in Friday’s DairyLine, Natzke reported that, according to USDA’s weekly crop progress report, farmers had nearly three-fourths of intended corn acreage planted, a big jump from the week before, but still about 15 percent behind normal.

Soybean planting was about 27 percent completed, about half the amount normally planted at this time. Primary corn and soybean areas in the Upper Midwest are the furthest behind due cool wet weather but a drier warmer forecast for the Memorial Day weekend should help farmers catch up in the field, he said.

Despite the good progress in the fields, weather concerns, export activity and skyrocketing crude oil prices drove corn and soybean futures prices higher this week, adding to the concern of dairy feed prices. Higher crude oil prices increase the demand for corn-based ethanol and soy-based diesel, Natzke reported, and traders bid up corn and soybean prices at the Chicago Board of Trade.

April Cold Storage Report
(May 22, 2008) April butter stocks totaled 253.6 million pounds, according to the USDA’s latest Cold Storage report issued this afternoon, up 28.8 million pounds or 13 percent from March, and 7.7 million or 3 percent above those in April 2007. March butter stocks were revised down 1.6 million pounds.

American type cheese totaled 544.8 million pounds, up 18.8 million pounds or 4 percent from March, but 41.4 million pounds or 7 percent below a year ago.  March stocks were revised  down 3.1 million pounds.

The total cheese inventory for April is 852.9 million pounds, up 28.6 million pounds or 3 percent from February, but 41.4 million pounds or 5 percent below a year ago. March stocks were revised up 1.5 million pounds. Full Report: Text | PDF

Federal Order Class I Price Expected To Jump $1.54
(May 22, 2008) The Agriculture Department announces the June Federal order Class I base milk price this morning. Market analyst, Alan Levitt, predicts it will jump to $18.16 per hundredweight. That would be a gain of $1.54 from May and would be 32 cents above June 2007. Look for the Class III advanced pricing factor to be the driver of the Class I value, according to Levitt.

Farm Bill Update: Truth is Stranger Than Fiction
(May 22, 2008) Someone once said truth is stranger than fiction. How true this was this week. First we had a Farm Bill. Then we didn’t. Then it looked like we would again. But now we don’t.

The costly and controversial five year farm policy plan was passed by veto proof margins in both the House and Senate last week but the President, as threatened, vetoed the bill. The House overrode it Wednesday, 316-108, but an embarrassing mistake kept the Senate from following suit.

It was discovered that 34 pages of the original bill sent to the White House was left out which means President Bush vetoed a different bill than the one Congress passed

The House will now likely pass the full page bill again, followed by the Senate, and send it to the President where he will likely veto it and both Houses will have to override the veto. Meanwhile, another extension of the existing farm bill will have to be passed because it expires Friday. This is one for the records. We'll keep you posted.
CNN: Mix-up negates House override of farm bill veto  

Failure To Pass Immigration Reform Disappointing
(May 22, 2008) National Milk’s Chris Galen, in Thursday's DairyLine, expressed disappointment that the Senate this week failed to pass immigration reform again or at least include it in the Iraq War supplemental funding bill. Late Tuesday night the Emergency Agriculture Relief Act, as it’s referred to, was stripped out. He said that the Federation wanted to see this passed and thought it was one of the best vehicles to do so but will continue to push for immigration reform and will look for other opportunities in the future.

Galen expected the President to veto the Farm Bill but the measure passed by veto proof margins so he looks for the House and Senate to override it but wasn’t sure if that would happen before the Memorial Day holiday.

He also praised the Agriculture Department’s decision to ensure that all non-ambulatory or downer cattle are kept out of the human food supply. Last month, NMPF, along with some meat packing organizations, forwarded a citizen’s petition, asking the USDA to close the loophole that allowed that to happen. For complete details on these legislation issues, log on to www.nmpf.org.

Processors Perspective on Farm Bill
(May 21, 2008) Ruth Saunders, Senior Director of Policy and Legislative Affairs for the International Dairy Foods Association said in Wednesday’s “Processor’s Perspective” that the process to get a new Farm Bill was a long one but the House and Senate passed the final bill last week with an overwhelming majority of votes. A promised veto by the President is due to concern that the bill lacks reform in farm safety net programs and concern that increased taxpayer spending is not matched with appropriate reductions in other parts of the budget.

Some of this relates to dairy programs, Saunders said, for instance, the bill contains over $400 million additional funding for the MILC program, but contains no farm income qualifications to receive MILC payments. The CCC price support program remains in place, she said, despite government studies, and a management report funded by the California dairy industry, that eliminating the program would help the industry branch into higher margin dairy products.

“While there were some missed opportunities, the Farm Bill contains two provisions that are important for the continued growth of the dairy industry,” Saunders said. Congress agreed that USDA needs to form a regionally balanced Commission that will review whether milk price regulations still serve the needs of producers, processors, and consumers. Of the 14 member commission, USDA will appoint four producers, four processors, four academics, one consumer representative, and a member to represent food retailers.

Congress also agreed to restore forward contracting. Since 2004, only dairy coops have been able to offer forward contracts that help manage risk by locking in a mutually agreed upon milk price, according to Saunders. Under the new farm bill, all processors, coops, and dairy farmers will have equal access to this risk management tool, and may choose whether they want to enter forward priced contracts for federally regulated milk that goes into Class II, III, and IV uses. 

Saunders said it looks like Congress will override the President's veto of the new Farm Bill, and IDFA anticipates that forward contracting and the Federal Order Commission will soon be implemented by USDA. “The dairy industry remains strong,” Saunders concluded “And these provisions both address how the industry can utilize market forces, not price regulation, for continued growth.”

Cash Prices Strengthen
(May 20, 2008) Cash cheese prices strengthened Monday as the industry awaited the April Milk Production report. Blocks jumped almost 4 cents, to $2.1175, the highest it’s been since early January. Barrel was up a penny and a half.

Downes-O’Neill dairy economist, Bill Brooks, said in Tuesday’s DairyLine that cheese trading has ignored milk production for quite some time. He credited the lack of supply for the high prices as some cheese manufacturing plants have shut down over the past 12 months and, while others have opened and existing plants have expanded, it’s not been enough to offset the lost capacity. Plant margins and concern over potential inventory values has also caused manufacturers to cut back production, according to Brooks..

“It’s an interesting situation,” Brooks said, “You have such a strong cheese price but nobody wants to make cheese right now.”

Brooks was hesitant to say how high the price will go as it has moved higher than he had expected but, because of the volatility it has impacted negatively plant margins from month to month so it’s difficult to make a prediction.

“I’ve heard some pretty astronomical numbers,” Brooks said, “But given where we’re at right now it definitely will be cutting into demand and we’ll start to see a slowdown as higher prices do have a tendency to take care of themselves.”

Producer milk prices will remain high, according to Brooks, but not near as high as what they might think or need, given the fact that the whey price, even though it has rebounded some, is not moving as high and is not going to achieve the levels it did last year so it’s not going to provide a milk price that’s going to be much stronger than where we were at last year on average, according to his forecast and USDA’s, and others.

It’s going to be a year that, for valid reasons, nobody’s going to be happy. Producers are not going to be happy because the milk price is not going to be at a level that they feel will cover their costs and buyers of dairy products are not going to be happy because the costs just continue to go higher and cause them pain on their bottom line as well.”

California's April output was up 1.8 percent from a year ago, thanks to 47,000 more cows. Wisconsin was up 1.3 percent, on a 15 pound gain per cow and 5,000 more cows. New York produced 3.9 percent more milk than a year ago, thanks to a 65 pound gain per cow outweighing a 1,000 cow decline.

Idaho was up 6.2 percent, thanks to 37,000 more cows, but saw a 20 pound drop per cow. Pennsylvania was down 1.4 percent on a 20 pound decrease per cow and 1,000 fewer cows. Minnesota's output was down 0.8 percent despite 8,000 more cows in the milking herd, but a 40 pound per cow reduction.

The biggest percentage gain was scored in New Mexico, up 13.5 percent, followed by Texas,  up 12.7 percent, Colorado was next 11 percent increase. The biggest loses occurred in Oregon, down 7.8 percent and Missouri, down 7.5 percent. 

Product Research and Innovation Vital Part of Dairy Checkoff
(May 19, 2008) Product research and innovation is a vital part of the effort by the dairy check off program to increase dairy product consumption, according to Onalaska, Washington dairy producer and DMI board member Liz Anderson in Monday’s “DMI Update.” She said “It’s what’s going to keep us going in the marketplace.”

Everybody knows about milk, she said, but it’s the ingredients in milk when it’s broken down that hold so much potential. Some of those ingredients used to be fed to your cows or dumped in your lagoon, according to Anderson, such as whey in cheese manufacturing, but today whey is a big demand product and helps keeps milk prices high.

National studies and research show how whey benefits the body and a lot of food manufacturers use whey as an ingredient over soy because it doesn’t add an flavor but it adds a very complete protein that the body needs.

Kelloggs offers a whey protein bottled water that’s good for the body and makes you feel good when you drink it, giving you a fully feeling that just drinking water. Another example is the PayDay ProBar which she calls a Payday with a kick. It contains    grams of whey protein.

Everything we can do to get whey in more products instead of soy because we lost a good share of this market to soy protein but whey can make dairy farmers money and make consumers happy.

Dairy Markets Weekly Review
(May 16, 2008) Block cheese topped $2.00 for the sixth time in a year and closed Friday $2.08 per pound, up 8 1/4-cents on the week, 37 cents above that week a year ago, and the highest it’s been since late February. Barrel closed at $2.03, up a nickel on the week and 34 cents above a year ago. Three cars of each traded hands on the week. The lagging NASS-surveyed U.S. average block price hit $1.9281, up 3.3 cents. Barrel averaged $1.9077, up 5.3 cents.  

Butter, following 21 consecutive trading sessions of gain, closed Friday at $1.50, up 3 cents on the week and three-quarter cents above a year ago. Only three cars traded hands. NASS-butter averaged $1.4123, up 4.3 cents. Nonfat dry milk averaged $1.3094, up 3.3 cents and dry whey averaged 26.38 cents, up 0.3 cent.

Dairy Outlook
(May 16, 2008) Milk production continues to rise despite higher feed costs, according to the Agriculture Department’s latest Livestock, Dairy, & Poultry Outlook issued this morning, and the rate of increase will be 2.3 percent higher than in 2007. Current year production is projected to be above 2007, at 189.8 billion pounds. 2009 output is expected to hit 190.4 billion pounds, up just 0.3 percent as the effect of this year’s soaring feed costs on cow numbers will not likely be apparent until 2009.

Exports on both a fats and skim solids basis will be lower next year, according to the Outlook, will limit domestic commercial use, and keep prices firm for most dairy products. pdf

Latest Feed Report Indicates Record High Prices
(May 16, 2008) Dairy producers will need the higher milk prices they're going to get as a result of the strong cheese prices because the latest crop and feed reports indicate record-high prices for most dairy feeds this year, according to Dairy Profit Weekly editor Dave Natzke. As he reported a few weeks ago, last month's milk-feed price index, an indicator of milk income over feed costs, hit a record low and sources tell him that some farmers are already getting behind in their feed bills. It could more of the same in the months ahead.

Many dairy farmers rely on soybean meal as a protein source, Natzke said, and USDA's latest Oil Crops report forecasts a large soybean crop this year, along with a moderate decline in exports and only a small increase in domestic use. However, since current soybean inventories are low, USDA forecasts a record-high average price between $10.50 and $12.00 per bushel for the 2008-09 marketing year, up to $2 higher than last year's average price of $10 per bushel.

Looking at corn; Natzke reported that last year's large crop helped build  inventory, but acres planted to corn are expected to be down sharply in 2008, and with strong domestic use, especially for  ethanol production, ending stocks for 2008-09 are forecast to be about half of last year's total.

Season-average corn prices for the year are projected at $5.00-$6.00 per bushel, more than $1 higher than the record $4.10-$4.40 per bushel projected for 2007/08. 

There’s mixed news in hay, according to Natzke. Entering the 2008 hay harvest season, dry hay stored on farms on May 1 was up 44 percent from a year ago. However, nearly all the increase was west of the Mississippi, with availability of hay in major dairy states in the Northeast and Upper Midwest down. April alfalfa hay averaged $157 per ton, Natzke reported, up nearly $30 from a year ago.

The crop weather picture is also mixed, Natzke said. Cool, wet weather has put farmers well behind normal in spring planting, but indications are that they made a lot of good progress this week. The markets are watching, Natzke concluded, because corn and soybean futures prices both declined as the week progressed.

Farm Bill Expected To Pass But Faces Veto
(May 15, 2008) National Milk’s Chris Galen predicted that the new Farm Bill will go down to the wire and likely require two votes. He said the bill is expected to pass both the House and Senate this week but faces a veto by President Bush. That would call for a second vote to override the veto, an action that requires a two thirds majority in both chambers.

He said it will be interesting to see by what margin the bill passes each house because that will indicate whether there’s enough support to override the veto.

The administration believes the bill does not sufficiently reform federal agriculture policy, according to Galen, but National Milk believes “It’s a good bill for dairy farmers, is better than the status quo policy we have had since 2002, and is preferable to the alternative.” If new legislation is not passed, Galen reported that we’ll end up with the 60 year old permanent law.

“Not everyone is going to get 100 percent of what they want, including the administration,” Galen warned. “But we do think that this moves dairy policy and farm policy overall in the right direction.”

The dairy title is not a source of contention, according to Galen, and National Milk is satisfied with it because it improves the price support program, improves the Milk Income Loss Payment (MILC) program, and makes more resources available for conservation and the environment, “So we defiantly think this moves farm policy in the right direction and it’s a bill that needs to be adopted.” “We are optimistic that a majority of Congress, in fact a super majority, will see that this bill is better than the alternatives,” he concluded.

(May 14, 2008) DairyLine listeners entered “The No Fly Zone” as Tom Spalding, of Spalding Laboratories in Arroyo Grande, California, talked about fly control on a dairy operation. Spalding said flies are “sensitive little creatures,” but “If you know what it takes for them to reproduce and make your operation fly un-friendly you can see a dramatic reduction in flies.”

He pointed out some of the different kinds of flies that exist and their life cycles. Typical flies on a dairy include the house fly, the biting stable fly, which he said looks like a house fly but bites, and, if you graze cattle, you have horn flies.

They all originate from different locations, according to Spalding. House flies reproduce in manure. Biting stable flies reproduce in rotting vegetation which is typically spoiled feed and storage bunkers, and horn flies reproduce in the pasture manure of cattle.

“By knowing where they c