August 2009 Archived Dairy News

Monday, August 31, 2009
August Ag Prices Report Released
Telling Your Story
Are small dairy farms doomed?
Dairy farms hit by 'perfect storm' of lower milk prices, higher ...
Dairy Farmers of America pays members $7.6M to offset tough economy
Friday, August 28, 2009
Dairy Markets Weekly Recap
Updated MILC Projections
Low Milk prices Ripple Beyond The Farm
Dairy industry gives NY senator an earful
US Farm Profit Plunging on Lower Crop, Dairy Prices
Dairy producers: Seek strategies to maintain profits in 2009
Ream cows have good genes
In its 168th year, farming still the center of the New York State Fair
Keeping Cows Cozy
Green Review: Sheeder Cloverleaf Dairy milk a great choice
Thursday, August 27, 2009
Mid-Week Milk Production Update
Obama Administration To Look At Antibiotic Use In Farm Animals  Letter
PDCA Unveils New Dairy Cow Unified Scorecard
Using Milk-Carton Ads to Build Strong Brands
Call for Nominations:National Cheese Institute's 2010 Laureate Award
Wednesday, August 26, 2009
Beef Checkoff Promotes All Beef
Countdown to World Dairy Expo: The Series
Dover dairy farmer wins herd expansion
Thoreson sees better times ahead for dairy producers
Supreme dairy champ no stranger to winning
Natural milk comes with the cream on top
Tuesday, August 25, 2009
Market Analysis with Mary Ledman
Senate committee hearing on dairy prices slated at GCC on Thursday
Call for Attendance to Sen. Gillibrand Dairy Hearing
The August Dairy Outlook from Penn State 
NMSU, Valles Caldera National Preserve partner for unique bull performance testing
Dairy cattle strut their stuff in the show ring
Monday, August 24, 2009
Western United Dairymen weekly report
Alliance of Western Milk Producers weekly report
Milk Producers Council weekly Report
County's largest dairy farm selling 3000 cows in cooperative program
Gillibrand's senate duties steer her to gather facts from barns to...
Mannington dairy farmers become first in state to use robotic milker
Free choice for cows good for farmers, experts say
No cold hands for these cows
Dairy cows offer farm-fresh science lesson
Meadow Gold plant closes its doors
Hard times for devastated dairy farmers  Dairy milk profits going sour
DMI Update: Connect With Your Community
Food for the Soul
New Zealand: Dairy industry urged to drop use of palm kernel
Milk production up on Minnesota and Iowa dairy farms
Country radio station's team wins Moo Moo Classic
Friday, August 21, 2009
July Cold Storage Report
Dairy Markets Weekly Recap
Latest MILC Projections
September Federal Order Class I Milk Prices Will Rise
Latest Slaughter Numbers Released
Computers Playing Larger Role in Dairy Decision Making
Cross Country: Dairy farm's demise draws huge auction crowd, prices
United States Dairy Farmers and Friends   Attention: All Dairy Farmers
Guest Editorial by Arden Tewksbury, Pro Ag Manager
Mark Your Calendars for Upcoming Dairy Workshops, Tours
Mid-Week Milk Production Update
The newest winners in the game: Cricket and Fidelity
Johnson Dairy culls most of its 9000-cow herd
Is Milk Cartel Swallowing Independent Farmers?
Dairy Situation & Outlook: Milk Production Down, Cow Slaughter Up
Dairy Situation Report: Less Production, More Exports Needed for...
Pampered Cows are Healthier and More Productive, new Study Reveals
Vilsack will hold a rural community forum in Modesto, Calif
Tesco uses microphones to monitor cattle burping
Independent Farmers Feel Squeezed By Milk Cartel
Dairy farming on decline in Flathead Valley
Thursday, August 20, 2009
A Call To Implement Promotion Checkoff Assessment on Dairy Imports
US livestock numbers shrink
Land O'Lakes Taps Olson
Beef Imports Increase Almost 14 Percent In The Second Quarter
Cow-Herd Declines Imply Less Beef Beyond 2009
Wednesday, August 19, 2009
Latest Dairy Outlook Report Released
Has The Price Support Program Helped The Dairy Market? 
MSU robot dairy lets cows decide when to be milked
NNY Dairy Training Institute Debuts
Northern NY Dairy Institute Debuts in October
Meadow Gold dairy plant to close Friday
Welti wants mailing to inform farmers about all available help
Tuesday, August 18, 2009
July Milk Production Up 0.1 Percent
Market Analysis with Dr. Robert Cropp
Nebraska dairy plant closing earlier than expected
Mooove over: Dromedary dairy could be on horizon
PDPW Member John Koepke Appointed to State Board on Agriculture...
Cargill, Idaho Power get OK for dung power pact
A sour note
KBS pasture based dairy center open house
Amaferm Fibre Buster Improves Feed Efficiency and Yields
Ellenburg livestock shooting may be linked to Chateaugay crime
Monday, August 17, 2009
Dairy Farmers Meet with Vilsack Aug. 26th. 
Dairy farmers face huge crisis as farm groups organize to help
$2.5 million deal by MALT preserves Petaluma dairy ranch
AP source: Wis. Gov. Doyle won't seek re-election
Senator seeks milk probe
Can't blame global warming on cows
Western United Dairymen Update
Milk Producers Council Weekly Update  Archive
Alliance of Western Milk Producers
Dairy Forum Focuses on Going 'Green'
DMI Update
Friday, August 14, 2009
Dairy Markets Weekly Review
Reduction in Cow Numbers is Slower Than Expected
Projected MILC Payment Rates
Dairy Farmers Losing Money
Dairy operation destroyed while couple's baby is born
Thursday, August 13, 2009
CWT Numbers Reflect The Financial Woes of Dairy Producers
Missouri Dairy Requests Emergency Relief
Good: Profit opportunities may lie ahead
Tom Koenninger, Aug. 12: Fair offers lessons on our rural roots
Wednesday, August 12, 2009
Details Released On Latest Cow Removal  
World Ag Supply and Demand Estimates
NMPF Strategic Planning Task Force Probes Milk Pricing Proposals  
Beef Quality Assurance When Cows Make a Career Change
NMPF Calls On USDA to Finally Implement Promotion Assessment on Dairy Imports  
Editorial letter from Pro Ag Manager
International Milk Genomic & Human Health Symposium Speaker Program Announced
Exposing Nine Vaccine Myths  Pfizer Animal Health
Got milk farmers?  Christian Science Monitor
PDCA Unveils New Dairy Cow Unified Scorecard
Tuesday, August 11, 2009
Dairy Analysis with Bill Brooks
Dairy meeting to be Friday
Franken plans dairy forum in St. Cloud
Wisconsin corn crop at
Elsie versus cap and trade
Report says dairy is state's most valuable crop
It's clean, it's green, it's cow manure power
Australia developing methane reducing plants
Wimm-Bill-Dann to buy back up to 3 pct more shares
Monday, August 10, 2009
Alliance of Western Milk Producers
Western United Dairymen Update
Milk Producers Council Update
Sen. Young Meets With Dairy Farmers
State Legislators Take on Dairy Crisis
Senator Bernie Sanders on an Ag Warpath
Increase in Farm Production Expenditures Slows in 2008, USDA Reports
Marin's dairies in crisis as costs skyrocket
Troubled Times Dairy farmers struggle to survive a drop in milk ...
Dairy Checkoff Gets Story out Through Social Media
Dairy farmers hurt by low milk prices
Noblehurst Farms power business with cow manure
Middle schooler's Jersey earns top milk cow title
New beginning for Vermont farm destroyed in fire
Dairy cow is supreme champion
Friday, August 7, 2009
Dairy Markets Weekly Recap
Holstein World Honored by the Livestock Publications Council
Empire Farm Days Next Week - Dairy Profit Seminars Preview
Dairy show at Salem County Fair a blend of awards, lessons
Skillathon, Producer Contest to Showcase 4-H Dairy Members
Dean Foods (NYSE: DF) Stock Drops After Forecast Misses Estimates
Thursday, August 6, 2009
CWT: Latest Herd Retirement Will Have Positive Impact
News for Dairy Co Ops: Full PDF Version
Missouri Dairy Leaders Applaud Price Support Raise
Dairy cows head to market
The Flathead's Last Dairy Farms
Milk processors resist Vermont fee
Dean Foods Press Release
Eleven young women will compete for Iowa Dairy Princess crown
Wednesday, August 5, 2009
Latest CWT Herd Retirement to Remove 87,000 Cows, 1.8 Billion Pounds of Milk
Long-term policy solutions are needed for the U.S. dairy industry to thrive
NDSU Economist Predicts Lower Cull Cow Prices
Government help not enough for most dairy farmers
U.S. Working Group on the Food Crisis Criticizes Clinton/Vilsack Tour....
Vesicular Stomatitis Quarantine Lifted in Starr County, Texas
National Dairy Shrine Announces 2009 Scholarship Winners
Sour economy hits dairies hard
Tuesday, August 4, 2009
Dairy Products Report
Temporary Price Support Increase Brings Uncertainty
A soured outlook for Arizona dairy industry
Indiana Dairy Farmers Got Milk But No Profit
Sanders says dairy farmers need more help
Wisconsin farmers in crisis as prices, exports crash
Low milk price hurts Hinkley, Barstow dairies
Experts say alfalfa research could aid dairy farmers in southeast Mo.
Farm tours for beginning organic farmers planned for August, September
Dairy Show Turnout Up In Martinsburg
Dairy community leads prayer meeting at Lynden church
Monday, August 3, 2009
NMPF Backs New Senate Legislation to Impose Tariffs on Milk Protein Imports
Dairy Farmers Working Together website
Alliance of Western Milk Producers Update
Western United Dairymen Update
Milk Producers Council Update
USDA Raises Dairy Support Prices to Help Industry
Idaho Reps cheer feds dairy rescue efforts
Feds milk-price increase welcomed by Vt. farmers
NFFC Says Support Price Increase Unlikely To Stop Farm Bankruptcies
California Class 4 Prices Dip
Government to help CA's dairy industry
MILC Payment Rates and Projections
DMI Partners With Shamrock Farms
Dairy Checkoff - July 2009
Dairy Processors Continue Push for Long-Term Changes to Dairy Policies
Dairy growth hormone use declines
William C. Haines Dairy Science Award Nominations Due September 22nd
ID Info Expo 2009 Speaker Line-up Covers the Gamut  
UW-Madison Dairy Science Holds Preview Day August 24  
Burdette Wins First-Ever Robert "Whitey" McKown Master Breeder Award
Dairy Cattle Breeding In 2020
Cal Poly Professor Named President of American Dairy Science Association
Milking the dairy industry? Dean Foods reports hefty profit surge
Down on the Shatto dairy farm
New Zealand Annual Milk Production Increases 9.8%, Survey Shows
The art of judging cows at the Lake County Fair

Telling Your Story
(August 31, 2009) Dairy Management Incorporated, Stan Erwine, discussed some comments he received last week from his remarks in Mondays DMI Update on DairyLine. Erwine has been doing a series outlining the dairy check offs Telling Your Story program and had discussed the Connect With Your Community, portion, which provides public relations training for dairy producers.  

He was asked where producers can get this and Erwine stated that they are available from regional promotion organizations like Midwest Dairy Association, United Dairy Industry of Michigan, Mid Atlantic Dairy Association in Pennsylvania, or the American Dairy Association Dairy Council of New York to name just a few.

He reported that just recently they conducted a training session for young leaders of the American Jersey Association Academy and evaluations from 36 students indicated that they felt the training made them more prepared and more comfortable speaking up, not only for their own dairies but for the entire dairy industry, according to Erwine.

Thirty cars of block traded hands on the week and 25 of barrel. The latest NASS-surveyed U.S. average block price hit $1.2927, up 7.1 cents on the week. Barrel averaged $1.3163, up 5.7 cents.

Butter closed Friday at $1.17, unchanged on the week and halted four weeks of losses, but is 44 1/4-cents below a year ago. Nineteen cars sold on the week. NASS butter averaged $1.1931, down 1 1/2-cents. NASS nonfat dry milk averaged 88 cents, up 1.2 cents, and dry whey averaged 28.82 cents, up a penny.

Price support purchases for the week totaled 2 million pounds of nonfat dry milk, raising the cumulative total to 279.2 million. Uncle Sam accepted DEIP bids on 11 million pounds of nonfat dry milk for export this week, 275,575 pounds of butter, and 169,754 pounds of Cheddar cheese.

Updated MILC Projections
(August 28, 2009) Here are the updated MILC projections, through Wednesday’s futures close.

Again, the feed cost adjustor is not expected to have an impact in the foreseeable future, so the projections for July, August, and September are nearly certain to be the final figures.  

The futures suggest that October will be the largest MILC payment rate of FY2010.

Large producers who wish to change their payment start date to (or from) October have until September 14 to do so.  See http://www.fsa.usda.gov/FSA/webapp?area=home&subject=prsu&topic=mpp-mi

Low Milk prices Ripple Beyond The Farm
(August 28, 2009) Low milk prices reflected in dairy farm milk checks have rippled beyond the farm and have impacted agricultural land values and credit conditions, according to Dairy Profit Weekly editor Dave Natzke in his weekly Friday update.  

USDA’s recent analysis of 2009 agricultural land values shows the value of farm real estate, including land and buildings on farms, declined about 3 percent from 2008, Natzke reported, the first decline in farm real estate values since 1987.

And while the decline wasn't uniform across the country, Natzke said the major dairy states of Idaho, Florida, California and Oregon showed the largest declines on a percentage basis.

Cropland and pastureland values also posted declines in 2009, although crop and pasture rental rates were steady to higher, according to Natzke. USDA economists blamed the contraction in the overall economy for land value declines, resulting in less demand for recreational, commercial, and residential land development in many regions.

Livestock and crop commodity prices also declined from a year earlier, weakening producer and investor interest, Natzke reported.

As of the mid-point of 2009, surveys of ag bankers in several Federal Reserve districts say declining land values are showing signs of stabilizing, but the downturn in milk and livestock prices has also affected credit conditions, especially in livestock-dependent regions. 

Bankers in the nation's heartland, from Wisconsin to Texas, reported a slowdown in loan repayment rates, with an increased request for loan extensions and renewals. Many bankers singled out dairy producers as those farmers most affected, with farm income, household spending and capital expenditures all down. And while second-quarter interest rates stayed fairly steady, many bankers raised collateral requirements for  their borrowers.

Obama Administration To Look At Antibiotic Use In Farm Animals
(August 27, 2009) The use of antibiotics is getting increased scrutiny and questioning by government. It seems you can hardly find a hand-soap these days that isn’t antibacterial, meaning antibiotics are included in its content.

Antibiotic use in animal agriculture is a part of that and government’s attention to it has drawn concern from several agricultural organizations, among them the National Milk Producers Federation.

Chris Galen reported in Thursday’s broadcast that the Obama Administration has indicated that they will take a very close look at antibiotic use in farm animals and pending legislation in Congress would basically ban any sub therapeutic use, meaning that any animal that does not have an active infection or illness requiring treatment, then you could not use antibiotics on it.

The dairy industry perhaps is not as vulnerable to such a ruling as other livestock sectors, according to Galen, but there are questions about how medicated calf replacer or dry cow treatment, for instance, would be impacted by this legislation.

National Milk is part of a group of livestock and veterinary organizations that recently sent a letter to the White House, calling on the administration to think very hard about the consequences of this legislation, not just to animal welfare but ultimately to public health and food safety, if we greatly restrict or eliminate the use of antibiotics in livestock animals.

I asked Galen if it was an animal rights or a vegetarian agenda that was behind this and he replied “A lot of the criticism is coming from people who think that conventional agriculture is bad.”

He cited the cover story of the current issue of Time magazine which details what it says is wrong with conventional agriculture today. The antibiotic issue is “just one more bit of evidence that there is a small but vocal minority of people who criticize modern day farming,” Galen concluded, “And are using the antibiotic issue as a way to attack everyone involved in animal agriculture.”  Letter

Beef Checkoff Promotes All Beef
(August 26, 2009) The Beef Check off program promotes all beef, whether it’s natural, organic, or grain fed, with the ultimate goal of increasing demand for beef and is why California organic dairy producer, Frank Gambonini, believes in the checkoff and serves on the California Beef Council.    

Gambonini reported in Wednesday’s broadcast that he has a pasture-based dairy located about an hour and a half north of San Francisco and says he’s trying to avoid growing larger and yet remain in the business without overgrazing his land by having too many cows on it.

Going organic has allowed him to stay in the business, which he said, has been operating since 1913, and that has enabled him to receive a little more profit. His dairy beef is not considered organic yet, but beef demand and the sale of beef is part of his income so increased demand for beef means increased income for him and others, according to Gambonini.

The Beef Check off promotes beef consumption, he said, and “makes consumers more aware of the quality and the safety of beef, and the great people who produce it,” therefore he believes the beef check off is a good investment.  

(August 25, 2009) The Monday market didn’t react much to Friday’s Cold Storage numbers. Mary Ledman, Principal of Keough Ledman and Associates Incorporated in Libertyville, Illinois, said the report showed that July 31 American cheese stocks and butter were up from June and from a year ago and was “bearish news in general,” but cautioned that the data “needs to be seen in a larger context.”

Those stocks that USDA reported is cheese that is intended to be stored more than 30 days, she said, and the cheese traded at the Chicago Mercantile Exchange is Cheddar that is less than 30 days old so she believes prices could climb incrementally in August and September and possibly the first week of October because “This is the time of year that we produce the least amount of cheese 30 days of age or less so we have an opportunity to see some incremental increases here.”

She warned however that, “If we wake up the 15^th of October and find ourselves with cheese stocks 8 percent above a year ago and milk production not curtailing, I think that the gain we experienced in the last couple weeks could dissipate.”

When asked how much of the gains in cheese prices she would attribute to USDA raising its purchases prices on cheese, Ledman replied, “Absolutely none.” She said the support price on cheese is “largely ineffective,” and pointed out that it’s not unusual for Chicago Mercantile prices to be a dime or less than the support price, with no product moving to the government.  

(August 24, 2009) Dairy Management Incorporated’s Stan Erwine was back in Monday’s “DMI Update” to continue his series on the dairy check off program’s “Telling Your Story” campaign. One of its three modules is called “Connect with Your Community,” Erwine said, and it specifically deals with helping dairy farmers to develop public relations plans and tools for their dairy.

Erwine repeated his comment from last week that most consumers are two to three generations away from the farm and are therefore unfamiliar with what farmers do. The good news, he said, is that a majority of those consumers have a very positive opinion of dairy products, dairy farms, and dairy farmers but “as we enter the information age, there is more information that confuses consumers.

They have concerns about how we care for the environment, our cattle, and how we insure safe, high quality, and wholesome dairy products, Erwine said, and “That is where the rule of “PR 101 comes into play, tell your story or someone will tell it for you.”

The “Connect with Your Community” program gives producers the tools and skills to communicate how they care for the environment, their cows, and how they’re committed to producing safe, high quality, nutritious milk.

A provided workbook provides worksheets, mission’s statements, value statements, talking points and is available through many of the local state and regional organizations that are trained and ready to provide this to farmers.

(August 21, 2009) July butter stocks totaled 264 million pounds, unchanged from June but 17.9 million or 7 percent above July 2008, according to preliminary data in the Agriculture Department’s latest Cold Storage report issued Friday afternoon. June butter stocks were revised down 3.4 million pounds.

The American cheese inventory, at 626.2 million pounds, was up 3.4 million or 1 percent from June and 48.6 million pounds or 8 percent above a year ago. 

Total cheese stocks amounted to 982.5 million pounds, up 10 million or 1 percent from June, and 79.7 million or 9 percent above those a year ago. June stocks were revised up 1.1 million pounds. 

Dairy Markets Weekly Recap
(August 21, 2009) Traders viewed the milk production report as bearish although cash cheese moved higher for the sixth week in a row. The block price climbed to $1.40 per pound on Wednesday, but gave back a penny the next day and closed Friday at $1.39, up 2 3/4-cents on the week, and the highest it’s been since December 2008, but that’s 32 1/4-cents below that week a year ago.  

Barrel closed at $1.37, up 3 cents on the week, but 29 1/4-cents below a year ago. Twenty five carloads of block traded hands on the week and six of barrel. The NASS U.S. average block price jumped 4.1 cents, to $1.2220. Barrel averaged $1.2594, up 5.3 cents.

Butter dipped to $1.15 on Thursday but recovered some on Friday to close at $1.17, down a nickel on the week, and 44 cents below a year ago. Thirteen cars were sold on the week. NASS butter averaged $1.2081, down 1.5 cents.

Cash Grade A nonfat dry milk closed Friday at 99.50 cents per pound, down a quarter-cent. Extra Grade closed at 95 cents, unchanged on the week. NASS powder averaged 86.84 cents, down 0.2 cent, and dry whey averaged 29.78, up 0.9 cent.

There were no price support purchases on the week for the first time since October 2008. DEIP bid acceptances included 2.2 million pounds of nonfat dry milk, 220,460 pounds of cheese, 661,380 pounds of anhydrous milkfat, and 2.2 million pounds of butter.

Latest MILC Projections
(August 21, 2009) Here are the MILC projections, based on this morning’s Class I announcement and futures prices as of August 20, 2009..

The feed cost adjustor has added about $74 million to payments in FY2009.  However, with feed costs falling, the feed cost adjustor does not seem to be a factor for the “foreseeable” future.  So the target for July through August will almost certainly be $16.94, and the MILC rates for those months equal to the projections below.

Based on that, the MILC program will pay out about $1 billion for 8 months in fiscal year (FY) 2009. 

It is projected to pay out about $100 million in FY 2010 over 5 to 7 months, based on current futures prices.

The concentration of payments in 8 months of FY 2009 has the effect of increasing the effective payment cap by about 50%: most farms with less than 200 cows will not be capped.  If the bulk of payments for FY2010 are in only 5 months, as projected, most farms with less than 280 or so cows will not be affected by the cap.

September Federal Order Class I Milk Prices Will Rise
(August 21, 2009) September Federal order Class I milk prices will rise. The Agriculture Department announced the base price this morning at $10.93 per hundredweight, up 89 cents from August, but $6.72 below September 2008. The 2009 average now stands at $10.95, down from $18.63 at this time a year ago.  

The two-week NASS-surveyed butter price averaged $1.2158, up 4.1 cents from August. Nonfat dry milk averaged 86.95 cents, up 2.8 cents, Cheese averaged $1.2311, up 9.7 cents, and dry whey averaged 29.38 cents, up almost a penny.

The Class III advanced pricing factor was the “higher of” in driving the Class I value and the MILC payment should be around $1.24 with no feed cost adjustor likely, according to market analyst Alan Levitt.

2-week Product Price Averages:

Latest Slaughter Numbers Released
(August 21, 2009) USDA’s latest Livestock Slaughter report shows an estimated 227,800 culled dairy cows were slaughtered under federal inspection in July, down 28,200 from June, but 19,300 more than July 2008. January-July 2009 cull slaughter totaled about 1.67 million head, up about 204,800 from a year ago.

He began by referring to how much computers have impacted the jobs of us in farm media but said the same is true for dairy farmers. Whether checking futures prices to make marketing decisions, visiting a website to learn more about a new feeding strategy, or posting a comment on Facebook to help educate consumers, Natzke said, the computer is growing as a dairy management tool.

According to the report, about 60 percent of all U.S. dairy operations have computer access, 57 percent own or lease a computer, 45 percent use computers for farm business, and 52 percent have Internet access.

However, while on par with producers of livestock and crops, dairy producers continue to lag grain and cotton producers in overall computer access and use, according to Natzke, but dairy producers generating $250,000 or more in sales and government payments are much more likely to utilize computers, and are near the leaders in embracing the technology among all U.S. farm operators. 

A June 2009 USDA survey found 80 percent of dairy farmers with annual sales of $250,000 or more have access to computers and the Internet, and about 70 percent use computers for their business management. And, more are opting for higher-speed Internet connections.

Just four years ago, “dial-up” was the main connection to the Internet for dairy farmers, at 76 percent, Natzke reported. Today, dial-up has slipped to about 30 percent, with digital subscriber lines (DSL), wireless, cable and satellite Internet access making up 70 percent.

(August 20, 2009) National Milk has again called on USDA to implement the promotion checkoff assessment on dairy imports. Chris Galen recalled in Thursday’s broadcast how, a year ago we were talking about the passage of the 2008 farm bill and “Here it is 12 months later and just about everything else in that bill is now law except for the promotion assessment on imports.”

Galen said they called on USDA to implement the measure because it was part of the 2008 farm bill, but more importantly, was part of the 2002 farm bill and never implemented because of some technical issues that had to be corrected.

“Enough is enough,” Galen said, importers need to “pay their fair share.” He added that there are 10 other importers that pay into check off programs for various commodities such as cotton, beef, and pork.

Another issue that has been raised by those opposed to implementing the dairy check off to imports is the claim that doing so would threaten state and local promotion programs such as those in Wisconsin, California, and 20 other states and regions. Galen pointed out that those programs were in existence before the 1983 bill which created the National Dairy Checkoff “So nothing will happen to these other existing programs,” he said. “It’s one more case of disinformation designed to further muddy the waters and delay this process.”

Downes-O’Neill dairy broker, Dave Kurzawski said, “I don’t think so,” in Wednesday’s broadcast. The market was already advancing, he said, but he warned that the increase will likely mean that more nonfat dry milk will move to the government under the support program.

Cheese started to move up in mid July, Kurzawski said, and eclipsed the new support level of $1.31 on block and $1.28 on barrel, with no cheese moving to Uncle Sam. He believes there’s a fundamental tightness on young, fresh, mild, Cheddar and “that’s what’s at play here, not the government support price.”

When asked where cheese prices will go from here, Kurzawski answered, “There’s more strength to the upside.” Cheese is now at year highs, he said, but was hesitant to predict a peak. The $1.40 mark is and has been a very pivotal price point, he said, and would “wake up a lot of buyers,” if it eclipse $1.40.

He does not believe Congress will raise the purchase price again when it returns from its August recess but will in fact look at this market and say, “It’s already doing what it should be doing. We don’t need to step in and meddle with the market and we really haven’t needed to in the first place.” The climb to $1.40 won’t happen overnight, according to Kurzawski, and may take a few weeks.

As to hedging advice for dairy farmers, Kurzawski suggest getting a plan ready for 2010, considering different risk reversals or option fences, buying a floor price and maybe selling a ceiling price, a mid/max price for 2010 is where he would start. They are not advising farmers to sell any milk at this point, he concluded, as “we think this market has more room to the upside.”

Production per cow in the 23 major States averaged 1,769 pounds for July, 25 pounds above July 2008. The number of milk cows on farms in the 23 major States was 8.40 million head, 115,000 head less than July 2008, and 34,000 head less than June 2009. 

California production was down 5.0 percent from a year ago. Wisconsin was up 5.8 percent. New York was up 2.6 percent, Idaho was down 3.5 percent, Pennsylvania was up 0.4 percent, and Minnesota was up 5.9 percent.  

Market Analysis with Dr. Robert Cropp
(August 18, 2009) Cheese prices held steady the first day of trading in the new week but butter slipped a half cent. Churning activity is relatively high compared to a year ago, according to Dr. Robert Cropp, Emeritus Professor at the University of Wisconsin at Madison.  

Speaking in Tuesday’s broadcast, Cropp said there’s a fair amount of cream available, butter stocks are adequate and buyers are finding enough supply with current offerings and not having to draw down their stocks.

The butter supply is more than ample to meet current needs, according to Cropp, but he doesn’t look for prices to fall much more although he admits, with schools reopening, more cream from the fluid side will result. Demand is not overly strong at the restaurant business, he said, and fair at retail.

Cropp said he’s encouraged with cheese prices holding at present levels, compared to where they’ve been. Monday traders may have been anticipating Tuesday’s July Milk Production report. Last month output was down slightly from a year ago, Cropp said, and looking at cow slaughter and the CWT influence, he expects cow numbers to again show a decline and milk output to be down slightly from a year ago and expects that to continue as we move through the year.

The dairy check off is and always has been involved in public relations on behalf of dairy producers but the check off is also promoting the concept of dairy producers speaking out on their own behalf to protect and promote the dairy image with consumers and communities, as Dairy Management Incorporated’s Stan Erwine put it in Monday’s “DMI Update.”

To that end, the “Telling Your Story” campaign was devised, he said, and consists of three parts. The first is to connect dairy producers with their local community. The second part is referred to as “capturing the crowd,” and is for dairy producers willing to make presentations to schools or service clubs and organizations, and the third part is “Control the Questions,” which is media training.

Erwine said the campaign is needed today because census information shows that only 1.8 percent of the U.S. population lives or works on a farm. Dairy is a small fraction of that percent, according to Erwine, so consumers are two to three generations removed from the farm and “We know who consumer don’t trust in terms of getting their information,” according to sources such as Edelman Public Relations.

Consumers don’t trust the government, big business, or scientists, Erwine reported, but they do trust someone like themselves. The “Telling Your Story” program gives dairy producers the tools and skills to tell the positive story of dairy in their community, one on one, and with the media.  

(August 14, 2009) Cash cheese prices at the Chicago Mercantile Exchange moved higher the second week of August with the 40-pound blocks closing Friday at $1.3625 per pound, up 5 1/4-cents on the week and the highest they have been since mid December 2008, but still 39 3/4-cents below a year ago. The 500-pound barrels closed at $1.34, up a nickel on the week, but 36 cents below a year ago. Seven cars of block traded hands on the week and eight of barrel. The NASS-surveyed U.S. average block price hit $1.1810, up 4.9 cents. Barrels averaged $1.2067, up 4.7 cents.

Butter closed at $1.22, down a penny on the week, and 42 1/2-cents below a year ago. 34 cars were sold. NASS butter averaged $1.2227, down 0.2 cent.

Cash Grade A nonfat dry milk climbed to $1.00 per pound, then gave back a quarter to close at 99 3/4-cents per pound. Extra Grade closed Friday at 95 cents, up a nickel. NASS powder averaged 87.15 cents, up 3 cents. Dry whey averaged 28.89 cents, down 0.7 cent.

Price support purchases for the week amounted to 2.3 million pounds of nonfat dry milk. Dairy Export Incentive Program bid acceptances included 85,979 pounds of cheese, 6.7 million pounds of butter and 1.6 million of nonfat dry milk.

Reduction in Cow Numbers is Slower Than Expected
(August 14, 2009) The raise in USDA’s milk production forecasts in Wednesday's World Agricultural Supply and Demand Estimates report, come despite the CWT herd retirement programs, the dire dairy economy, and year-to-date dairy cow slaughter that's running about 220,000 head more than a year ago, according to Dairy Profit Weekly editor, Dave Natzke in Friday’s broadcast.  

“The reduction in cow numbers is slower than expected,” he said, and as a result, USDA raised previous forecasts for 2009 milk production and, although we'll see a decline next year, 2010 milk production estimates were also raised.

Even though there will be more milk, recent USDA action to raise dairy product support price levels will help prop up milk prices, according to USDA.  The mid-point forecast for the 2009 all-milk price is now about $12.20/cwt., increasing to about $15.15/cwt. in 2010.

So, with CWT retiring cows and the general state of the dairy economy, what's that doing to replacement cow prices for farmers who want to stay in dairying?

USDA quarterly summaries show the prices farmers are willing to pay for replacement cows continues to feel pressure from low milk prices and high production costs, according to Natzke. July U.S. average prices declined to $1,280 per head, he said, down $710, or about 36 percent from a year ago, and the lowest quarterly average since January 1999.   

The news is worse in the West, according to Natzke. Historically a U.S. leader for replacement cow prices, California’s July 2009 average was the lowest in the nation, at $1,100 per head, equal to levels last seen in 1987. In terms of cow numbers, the West and Southwest are also the regions we're seeing the highest participation in the CWT herd retirement program, he concluded.

Projected payments fade out early in 2010, due to rising milk price expectations and lower feed costs.  

The feed cost adjustor added an estimated $75 million to MILC payments for February through June, but is not projected to kick in for the foreseeable future.  

CWT Numbers Reflect The Financial Woes of Dairy Producers
(August 13, 2009) CWT field auditors are visiting the 294 farms that were tentatively accepted in its latest herd removal program. When completed, likely by the end of September, 87,000 cows that produced 1.8 billion pounds of milk will have been removed, according to a CWT press release.  

CWT CEO Jim Tillison reported in Thursday’s broadcast that “the pain isn’t unique to any particular area of the country or any particular herd size.” The majority of the herds (73 percent) came from east of the Mississippi, while most of the milk and most of the cows (70 percent) were from the West.

What was unique about this round, Tillison said, is that the average herd size was the highest ever, at 296 cows, up from the last removal’s average of 272, and indicates that this isn’t just a problem for “poor producers,” but is across the board as the average production per cow of the herds removed was 20,884 pounds per year, the highest average of any CWT removal, and is higher than the 12 month national average for the milk production period that CWT used.

Tillison said they are hopeful that the 87,000 cows that are being removed will speed the turnaround in producer milk prices, which they expect to see this fall.

The number of bred heifers removed in this round was nearly three times the next highest number since this option was offered. Tillison said this too reflects the current depressed situation and indicates that some of these people are going out for good whereas in the past, some thought they would hold on to their heifers, raise them, and start milking again.

This would indicate that many are saying “until things get a lot better, I’m going to be out of the dairy business for awhile,” he concluded.  

(August 12, 2009) Dairy producers supply a safe and wholesome product, milk, according to Sheboygan Falls, Wisconsin dairy producer and Beef Council board member, Dean Strauss, but they also need to recognize the need to produce a high quality wholesome product when cows “make a career change.”

Speaking in Wednesday’s DairyLine, Strauss was referring to dairy cows being culled and entering the meat supply so consumers can have confidence that the animals are dealt with directly and know that dairy farmers are beef producers as well as dairy producers.

To that end, the beef check off is involved with the Beef Quality Assurance program. Strauss said the beef check off has been around for a good number of years and has done a lot of things in helping to drive consumer demand and is now on the forefront in dealing with a lot of different segments of our society that question the need for animal agriculture.

The beef check off helps keep demand stimulated but also addresses animal welfare issues and dairy beef quality questions with respect to proper injection sites for instance of medications. Strauss says the beef check off is a sound investment that pays back many times over to the producer.

(August 11, 2009) Cash cheese price at the Chicago Mercantile Exchange started the second week of August unchanged with no activity. Butter dropped a penny but Grade A and Extra Grade nonfat dry milk were up a penny and a nickel respectively.

The cheese market is trying to get its head wrapped around the price support change and where it’s going to go from here, according to Downes-O’Neill dairy economist Bill Brooks in Tuesday’s DairyLine. There was no activity so people are taking a step back and waiting to see how much milk will get pulled out of the vat and put in the bottle as schools reopen.

Looking at butter, Brooks said that, if you extrapolate the data from last week’s June production report, into June commercial disappearance, “you can see where the problem is at.” Production is only up 0.9 percent from a year ago, he said, but disappearance through May was down quite a bit and gets even worse as you go into June so it’s a struggle to maintain the price gains.

The jump in cash nonfat dry milk doesn’t mean a whole lot, according to Brooks. The bids indicate that someone might be willing to pay but there weren’t any trades, he said.

“We’ve had this CME market trade at levels that don’t really match up very closely with our Central or Western mostly prices that are reported by Dairy Market News and, at the same time those prices were being reported we saw a lot of nonfat dry milk move to the CCC under the price support program.

Those prices dictate the California weighted average price, he said, and the weekly NASS product prices that go into the Class IV milk price calculations. Brooks said he’s not sure that CME price movement will ever translate over to the milk price to farmers.

Dairy Checkoff Gets Story out Through Social Media
(August 10, 2009) The dairy check off employs what is termed “social media” to get the dairy story to consumers, according to Jolene Griffin, Manager of Industry Communications for Dairy Management Incorporated in Monday’s “DMI Update.” That includes Facebook, Twitter, Youtube, and blogs.  

Consumers learn about dairy farm practices and how farmers care for their animals, the environment, and their farms, Griffen said, and how farmers ultimately provide a safe nutritious food for consumers to purchase.

Griffin said she’s pleasantly surprised that it’s not just the “young people” who view these media technologies but many dairy producers use them as well and dairy producers see social media as is a great way for them to tell their experience and share their stories with millions of consumers who don’t have that connection with the farm any more.

Downes-O'Neill dairy economist Bill Brooks has our weekly dairy market analysis on tomorrow's DairyLine broadcast and Dr. Alan Britten has his weekly "Udder Health Update" in our second half.

Dairy Markets Weekly Recap
(August 7, 2009) The cash cheese market added more strength the first week of August, the fourth consecutive week of gain. Block cheese closed Friday at $1.31 per pound, up 2 1/2-cents on the week and the highest it’s been since late February, but that’s still 45 3/4-cents below a year ago. The blocks are now trading at the government’s new temporary support price.  

Barrel closed Friday at $1.29, up 3 cents on the week, 43 cents below a year ago, and a penny above support. Fourteen cars of block traded hands on the week and only two of barrel. The NASS-surveyed U.S. average block price inched up 1.2 cents, to $1.1318, while barrel jumped 3 1/2-cents, to $1.1602.

Cash butter closed Friday at $1.23, down a penny and a half on the week, and 42 cents below a year ago. Twenty six cars were sold this week. NASS butter averaged $1.2246, down 0.4 cent.

Cash Grade A nonfat dry milk closed Friday at 98 cents per pound, up 7 cents on the week, while Extra Grade remained at 90 cents. The new temporary support price on nonfat dry milk is 92 cents. NASS-surveyed powder averaged 84.13 cents, down 0.9 cent, and dry whey averaged 29.61 cents, up 0.1 cent.

Price support purchases for the week totaled 892,394 pounds of nonfat dry milk. Dairy Export Incentive Program (DEIP) bid acceptances for the week included 826,725 pounds of butter to Africa and the Middle East and 2.2 million pounds of nonfat dry milk to Asia and Eurasia.

Empire Farm Days Next Week - Dairy Profit Seminars Preview
(August 7, 2009) One of the largest farm shows east of the Mississippi River, Empire Farm Days, kicks off next week, and one of the main attractions will again be the Dairy Profit Seminars. Dave Natzke, editor of Dairy Profit Weekly previewed a great lineup of topics and speakers on Friday’s DairyLine.

Tuesday morning’s first seminar kicks off at 10:30 a.m. with a topic on everybody’s mind, the dairy economy. Pro-Dairy’s Tom Overton and John Conway will lead a panel of dairy farmers from New York and Vermont in a discussion on Increasing Profitability on Smaller-Sized Dairies.

That's followed at 1 p.m. with a look at a "Genomics – A New Era in Cattle Breeding," featuring dairy producers and representatives from AI companies.

With fall harvest season upon us, dairy farmers will begin spreading manure on newly opened fields. Wednesday morning kicks off at 10:30 a.m. with a panel discussion on innovative manure handling methods, including underground and drag hose transfer, remote manure storage and remote filling station systems.

At 1 p.m., it’s time for New York’s Junior Dairy Leaders to shine. Twenty-seven students from throughout New York will share their year- long dairy experiences, and participate in a graduation ceremony.

Leading off the third day of seminars, Pro-Dairy’s farm management specialist Jason Karszes will lead a farmer panel using successful farm-to-farm collaboration – including equipment sharing arrangements – to survive and manage the current economic situation.

Finally, the Dairy Profit Seminars conclude Thursday at 1 p.m. with a discussion on using cash, futures and market options to manage financial risk and protect income margins.

Empire Farm Days will be held Aug. 11-13, on the Rodman Lott & Son Farms, near Seneca Falls, N.Y. Cornell University’s PRO-Dairy program, in conjunction with Eastern DairyBusiness magazine.

PowerPoint Slideshow of  Dairy Solutions from Dairy Producer 

CWT: Latest Herd Retirement Will Have Positive Impact
(August 6, 2009) Cooperatives Working Together announced this week that it has tentatively accepted 294 bids in the third herd retirement it has conducted in the last nine months. The 86,710 cows and 1.8 billion pounds of milk accepted in this round, combined with CWT’s previous two herd retirements, equal a total production capacity of 4.8 billion pounds of milk being removed since December 2008.

"We feel very positive about the impact that this going to have," Jim Tillison, CWT’s Chief Operation Officer said on Thursday’s DairyLine. "Having two herd retirements so close together is essentially the same has having one herd retirement."

Farmers in 38 states submitted a total of 312 herd retirement bids last month to CWT, "However, as in past herd retirements, the majority of milk and the majority of cows are coming out of the western United States," he said.

Tillison said CWT and the temporary increase in the price support program will both "help get milk prices moving in a direction where dairy can at least become a break-even proposition in the near future and hopefully profitable again in the not to distant future."

The latest herd retirement round features a maximum acceptable bid threshold of $5.25 per cwt. Tillison said it’s probably going to take the end of September or early October for all the dairies to be audited.

Long-term policy solutions are needed for the U.S. dairy industry to thrive
(August 5, 2009) Long-term policy solutions are needed for the U.S. dairy industry to thrive, according to dairy processors. The International Dairy Foods Association’s Jerry Slominski reported in Wednesday’s DairyLine broadcast that, last month, a Congressional panel held a day-long hearing on the state of the U.S. dairy industry and that, due to the intense interest in the issue, two more hearings were conducted in the following two weeks.

Law makers quickly focused on the current economic crisis caused by low farm milk prices, Slominski said. Dairy farmers, co-op leaders, federal agriculture officials, dairy companies, economists and lenders all came to testify before the House Agriculture Subcommittee on Dairy, Livestock and Poultry.

IDFA's Chairman Paul Kruse, who is also CEO and president of Blue Bell Creameries, was invited by Subcommittee Chairman David Scott of Georgia to testify and spoke on behalf of IDFA's 220 dairy companies.

Kruse told the subcommittee that dairy processors are very concerned about how hard this economy has hit dairy farmers, Slominski reported, and Kruse testified that "The partnership between milk producers and milk manufacturers is critical to the overall health of our industry."

Kruse then called for developing long-term strategies that will strengthen the dairy industry. He said that providing greater access to risk management tools, expanding international markets, and encouraging innovation in dairy products must be a fundamental part of policy solutions developed to address the industry's cyclical price volatility.

"As an industry, we can capture more opportunities for growth if we avoid the temptation to put more band-aids on an old system and consider long-term approaches that will allow us to innovate and expand," Kruse said

Several dairy coop and producer witnesses called for a broader approach as well and mentioned the need to simplify and change the current pricing system, to build more demand for dairy products and to allow our industry to compete on the world stage. He concluded saying, "It’s clear that while a temporary fix may be considered in the near future, a more comprehensive approach is needed or we will be back in the same place in but a few years."

Dairy Products Report
(August 4, 2009) The Agriculture Department’s June Dairy Products report puts butter production at 125.5 million pounds, down 13.9 million pounds or 10 percent from May but 8 million pounds or 7.5 percent above June 2008.  

Nonfat dry milk output amounted to 144.6 million pounds, down 4.6 million or 3.1 percent from May, but up 8.6 million or 6.3 percent above a year ago.

Mozzarella cheese output totaled 269 million pounds, down 4.4 million pounds or 1.6 percent from May, but 6.6 million or 2.5 percent above a year ago.

Total Italian type cheese, at 343.4 million pounds, was down 6.6 million pounds or 1.9 percent from May, but up 6.8 million or 2 percent above a year ago.

Cheddar production totaled 272.5 million pounds, down 13 pounds or 4.5 percent from May, but up 11.5 million pounds or 4.4 percent above a year ago.

American type cheese amounted to 353 million pounds, down 13.5 million pounds or 3.7 percent from May, but up 16.3 or 4.8 percent from a year ago.

Total cheese output came to 832.7 million pounds, down 27 million pounds or 3.1 percent from May, but up 16.5 million or 2.0 percent from a year ago. 

Temporary Price Support Increase Brings Uncertainty
(August 4, 2009) USDA’s announcement of a temporary increase in the price support program may increase farmers milk checks in the near future, but also raises several questions. The increase of 18-cents on cheese and 12-cents on powder was announced Friday.  

“It’s not going to provide the immediate price relief that USDA promises, just because of the way the lags are in the pricing system,” Alan Levitt, editor of the CME’s Daily Dairy Report said.  The August Class I price is already set but we’ll see some impact on the August Class III and IV prices.  He estimates the All Milk price may add 50 cents to farmer’s milk checks bringing some relief by September.  

USDA expects to buy 75 million pounds of cheese, but the spot price has already increased to just under that support level, “So I don’t think we’re really going to see any sales of cheese to the government,” he said.  

As for powder, USDA said they expect to buy 150 million pounds in just three months. “That would be huge,” Levitt said. “That’s probably half the powder we would produce in that time period.”  

But, he added increasing the support price just makes our exports even less competitive than they were before. “It’s going to be interesting to see whether USDA is going to give bigger DEIP bonuses or if they’re just going to buy a bunch more powder and put it away and then we’re going to have to figure out how to get rid of that powder later.”  

We should start to get a sense of that this week. If we see any DEIP bonuses that will give us a little bit of indication. “My guess is the bonuses are not going to increase enough and that’s kind of unfortunate because sales to CCC had almost stopped, and now they’ll probably have to pick up again,” he said.  

Levitt said the timing isn’t very good because our weak dollar has given us a little bit of advantage against Europe and Oceana, which is in its off season. “We really had a chance to move a little powder over the next few months, but now we don’t know if that’s going to happen.”  

He said the bottom line is it throws more uncertainty into the dairy markets when there was already a lot of uncertainty. Some will be second guessing USDA’s decision and many questions remain.  

“Is the support price increase going to be extended after October?  What signals is it going to send to the farm? Is it going to make farmers hang on longer? What’s going to happen to all that powder in storage?” he asked.  

“I recognize that it’s going to improve milk prices in the short term, but in the long term, at some point we have to get rid of these stocks and I don’t know if this move is going to help us do that,” Levitt concluded.

MILC Payment Rates and Projections

(August 3, 2009) Sports drinks might be somewhat considered “newcomers” when compared to a beverage that has been around since the first person thought adding chocolate to milk might be a good idea. Dairy Management Incorporated’s Stan Erwine reported in Monday’s “DMI Update” that emerging science is showing that, not only does chocolate milk taste good; it’s an excellent post exercise beverage because it contains protein and nine other essential nutrients.

DMI has partnered with Shamrock Farms to test the sales opportunity for their chocolate milk product which they call “Rock and Refuel,” which contains additional protein and naturally occurring electrolytes.

Tests show the product is popular with men aged 18-25 and moms looking for new and healthy options for their families, according to Erwine. Additionally, some major universities have changed their training program to include chocolate milk and high schools are also doing so. In some cases dairy farmers are working with high schools to get chocolate milk included in weight lifting regimes.

When asked about the sugar concern, Erwine replied, “Those are all within the dietary guidelines,” but he added that reformulation work is ongoing in anticipation of any changes in those sugar guidelines so that “We keep milk tasting good but meet and exceed dietary guidelines.”

Alan Levitt, editor of the CME's Daily Dairy Report, has our weekly dairy market analysis on tomorrow's DairyLine and Dr. Alan Britten has his weekly "Udder Health Update in our second half.

California Class 4 Prices Dip
(August 1, 2009) California’s July 4b cheese milk price was announced Friday afternoon by the California Department of Food and Agriculture at $9.39 per hundredweight, down 13 cents from June, and $8.38 below July 2008. The 4a butter powder price was $10.02, down 4 cents from June, and $6.06 below a year ago.  More Here