May 2009 Archived Dairy News

Friday, May 29, 2009
California's May 4b Price Drops 87 Cents
May Milk Feed Price Ratio Is 1.47
May Dairy Market Report - Roger Cryan, NMPF
This week in Dairy Profit Weekly
Dairy Market Weekly Recap
Dairy Profit Weekly Update With Dave Natzke
Dairy farmers plan rally in Iowa
ID INFO EXPO 2009 Set for Aug. 25-27
Huge Losses Greet June Dairy Month
Milk surplus, less demand imperils dairy industry
Dairy farmers in desperate straits
Low milk prices could hurt farmers
Organic Dairies Watch the Good Times Turn Bad
Recession crippling hundreds of local dairy farmers
Sara Lee will open Kansas City, Kan., plant, employ 250
Dairy Health Feed Nutrients: Minerals
'Stockmanship' Useful Skill for Moving Dairy Cattle
Dean Foods Company to Present at the Stephens Inc. Spring...
Springfield senior wins 'citizen of year'
Australia: Dairy farmers warned to prepare for more milk price cuts
Thursday, May 28, 2009
DEIP Is Back
WTO members criticize US decision to reintroduce dairy export ...
Dairy Farmers Press Congress For Emergency Action To Stem Economic Collapse
Stabilizing Dairy Prices?
Hugoson reappoints Dairy Profitability Committee members
Dairy Center to be showcased during 2010 Farm Tech Days
Animart hosts June Dairy Month event
Phosphorus Leaching Differs in Dairy Manures
Int'l Dairy Foods Assn. spent $165K lobbying in 1Q
Stimulus plan funds Rhode Island shoe store, Virginia dairy
Fonterra Cuts Forecast; Says US Supports to Hurt World Market
Wednesday, May 27, 2009
What will it take for a recovery in the milk price?
“Do Not Ship Milk Days” protest cancelled; Organizers seek to bring coops together  
USDA expands dairy insurance program
West to trim herds through program
2 TC dairies face water board complaints
Dairy Crisis Demands Radical New Thinking
Milk Prices Plummet, Hurting Local Farmers
Drop in Milk Prices Has Dairy Farmers Struggling
Beef should see little impact from CWT
EU Farmers Protest Falling Milk Prices
Fonterra Cuts Forecast; Says US Supports to Hurt World Market
Tuesday, May 26, 2009
Progressive Ag Editorial
Market Analysis with Bob Cropp
Dryden dairy gets protection grant
Farm promoting comfy cows at dairy breakfast
Spokane dairy does things the traditional way
Milk prices good for consumers, bad for Georgia farmers
EU may meet dairy farmers' demands
Monday, May 25, 2009
Dairy Rule Suspended
Feingold, Kohl Announce USDA To Help Dairy Farmers 
Western United Dairymen Update
Milk Producers Council Weekly Update
Wisconsin Farm Technology Days hosts make farming a family affair
DMI Update
New dairy holds open house
Global milk glut squeezes dairy farmers, consumers
Cow power can help feed the system and aid farmers
Cattle Market Notes: Rising Corn Prices; Dairy Cow Buyout
Return of US dairy subsidies sours Kiwis
France, Germany seek EU action to boost milk price  Related  Related
Ukrainian cabinet to start program on support of dairy market by...
IFA to raise dairy concerns with EU commissioner
Friday, May 22, 2009
April Cold Storage Report
USDA Announces 2008-2009 Allocations for Dairy Export Incentive Program
Dairy Markets Weekly Recap
NMPF and USDEC Laud USDA Decision To Re-Open the Dairy Export Incentive Program
MILC Rate For June
June Federal Order Class I Base Milk Price Suffers Relapse
2009 Dairy Exports Continue To Lag 
Farmers split over dairy pricing act
Letter from upset dairy producer
NY: More government aid sought over milk prices
Cross Country: Decline of the dairy farm -- what happened?
Dairy farmer gets right to open creamery
U.S. Dairy Industry Groups Urge Passage of Cuba Trade Bills
Organic farming takes planning, certification
Calves happy to hit automated milk bar
Essential Oils As Dietary Supplements For Dairy Cattle
Chocolate milk tax proposal is last straw for dairy farmers
Cattle Health: Use Corn Stalks As Dairy Heifer Feed
Mobile Dairy Classroom Expands Into California's Central Valley 
AABP Foundation – Pfizer Animal Health Scholarship Application Deadline Draws Near
Cows on the Concourse
Indiana Dairy to again take World Stage at Indy 500
Parmalat plans to buy milk depots
Caution on online dairy sales
Dean Foods Announces Changes to the Board of Directors
Thursday, May 21, 2009
Dairy importers may soon have to pay into the national dairy check off
CWT Auditors Begin Removing Cows as Farms Are Audited
Auditors for Dairy Cow 'Retirement' Start Work
Milk Industry Unites to Pan Proposed Tax on Chocolate Milk
Farmers Call for Emergency Floor Price, Access to Credit and New Dairy Pricing System
NY Farm Bureau seeks relief for dairy farmers
Will the Last Kent Dairy Farm Become Estate Properties?
Safeway Names Winners in the Lucerne® "The Art of Dairy"™ Contest
Wednesday, May 20, 2009
Dairy Rally Involves Several Organizations
Pro Ag Editorial: Support For S-889 Growing  
Management report takes look at financial situation
Local 5th Generation Dairy Entrepreneur to be featured on "The CEO ...
USDA to Require Changes to Dairy Check-off Program to Collect Import Fees
Vreba-Hoff looks to expand dairies
Dairy Outlook: Herd Liquidation To Accelerate Later In 2009
Dairy Situation & Outlook: Milk Production Down, Cow Slaughter Slows
WA dairy recalls ice cream products
Beef Outlook: US Veal Production
Dairy to reveal carbon footprint
Cow Slaughter Declining Into Spring
Norfolk Grange Hall, dairy barn lose in grant competition
Increased Beef Imports From Australia Drive Outlook For 2009
Foremost Farms USA^â Awards Ten Scholarships to Children of Member-Owners
Dairy Crest profit falls, to cut future dividends
NJ cops round up about 30 escaped cows
Local teen named Princess Kay finalist
Tuesday, May 19, 2009
Market Analysis with Bill Brooks
Latest Dairy Outlook Report
NMPF Welcomes Long-Overdue Arrival Of Promotion Checkoff On Dairy Imports
Dairy Farmers Working Together Announces Support of the Dairy Price Stabilization...
Willie Nelson and Farm Aid Warn Low Milk Prices Threaten Economies
Plan: State workers avoid pay cut
Extension Service hires dairy specialist
Aces of Trades: Got milk? He does
New advances increase dairy efficiency and cow comfort
Fonterra plans to double online dairy sales
Carlini Named Information Chief At Dean Foods
Monday, May 18, 2009
April Milk Production Up Slightly
National Dump Milk Days May 31, June 1
Poster regarding a Dairy Price Rally in Iowa on May 30
May Penn State Dairy Outlook
Dairy committee happy with bill in Congress
New dairy facility opening in Portales
DMI Update
Got milk? Davis named Dairy Month chairman
Cattlemen's Capitol Concerns: Transportation Reform, Dairy Herd ...
Southwest Dairy Day highlights newest technology
Dairy Woman Heads Beef Board
Alberta cow tagged as Canada's 16th BSE case   Related
Milk Producers Council Update
Western United Dairymen Update 
Dairy association gives $65000 to food banks
Great genes
Friday, May 15, 2009
Dairy Market Weekly Recap
Cool and wet conditions are slowing planting progress
Dairy Farmers of America sells Dallas dairy unit for $435M
Group drops pollution lawsuit against Valley dairy
Oregon company to turn dairy waste into biofuel
Dairy herd, work ethic keep Beaumier busy
WasteSolver Demonstration at Tulare Dairy Farm Tuesday
Got raw milk? Some think you should
China: 30,000 dairy cows to give birth to German calves
Australia: Cow deaths dash students' show plans
UK: Opera singer serenades cow herd
Thursday, May 14, 2009
Strategic Task Force Looks For Solutions
U of IL: Genome Mapping Benefits Beef, Dairy Producers
Lameness Troubleshooting Tool Now Available to Dairy Farmers
Top 10 Considerations for Culling and Transporting Dairy Cattle
UK: Dairy industry defends itself against RSPCA welfare claims
Wednesday, May 13, 2009
CWT to remove over 100,000 cows, 2 billion pounds of milk in largest-ever herd retirement
Cotton Acreage Decreases, Prices Remain Surprisingly Reasonable
Western Colo. dairy resumes raw milk distribution   Related
Vermont dairy farms count on illegal immigrants
Rutter's Dairy Introduces Southern Brew Sweet Tea
Three dairy producers say they like their low-cost parlors
Dairy farmers struggle as milk prices drop
Road trip to Sassy Cow Creamery
Dairy Australia optimistic about future milk prices
Fonterra Milk Powder Prices Rise to Six-Month High at Auction
UK: Dairy firm proposes plant closure
UK: New Dairy Milk Buttons packaging draws on playful nature of brand
Tuesday, May 12, 2009
Latest World Ag Supply and Demand Estimates
Market Analysis with Al Levitt
NMPF To Form Strategic Planning Task Force To Examine Solutions To Dairy Challenges
DATCP Announces 2009 WMMB Election Results
Midwest Dairy Association Pledges $65000 to Iowa Food Banks
NJ bill would allow sale of raw milk
Dairy resumes distribution in area
French Find Safety Nets Multiplying in Pastures
Got Jerseys? Awards to be Presented to Best Dairy Products
Kayakers trade rapids for art of cheesemaking
Cattle Feed Byproducts: Improvements In Storage & Transportation...
Family farm : Bill and Delia Haak crowned Farm Family of Year.
NAILE Adds Supreme Champion Awards to Junior and Open Dairy Shows
The right white stuff
Monday, May 11, 2009
S.889 Gives Farmers a Cost of Production as Farmers Confront 1970s Prices
Western United Dairymen Update
Milk Producers Council Update
4 Tons -- 1ST Crop --- $70.00 per ton
Average Wisconsin milk price floats up
UW-Madison partners on 3-state dairy cow study
Wisconsin Farm Bureau Federation® AG News Wire
Northern Colorado farmers getting help with loans
DMI Update
Alaska dairy farmers rebound as demand for products rises
Imposing a tax for cattle is only an absurd rumor
Young dairy farmers worry about future
Farming remains low-margin business for true optimists
Local farmer responds to animal accusations
A one-of-a-kind way to milk cows
Colostrum Feeding For The Future Of The Dairy Herd
'Belties' Provide Enjoyment for Patterson Family
S&P lifts outlook on Dean Foods
UK: Norfolk farmers share drought concerns on Swedish visit
Fact-finding DAFF Dairy Trip to Northern Ireland
Live yeast of benefit in dairy heifer feed
Dairy lessons come to South Australia classrooms
Bovine genome map already helps producers
Friday, May 8, 2009
California Class 1 Prices Announced
GRUPO LALA Purchases National Dairy from DFA
Dairy Markets Weekly Review
MILC Payment Rates and Projections
Immigration fact sheet focuses on criminal prosecution for employers
What Federal Milk Orders Are Up to & Why States Are Concerned
Family Farmers and Ranchers Criticize Hearing Linking NAIS to Disease Outbreaks
Aspiring VT dairy farmers fret about future
Cross Country: Dairy industry faces uphill financial climb
Declining milk prices take toll on hay
Pa. gov., ag chief challenge milk price ruling
Spring Dairy Expo is quite an event
Organic Cow Study Coming
1Q profits up for Land O'Lakes
Simple Steps Can Improve Milk Taste and Quality  
Businesses have financial incentives to get energy efficient
OSU Studies How To Make Cows Happy & Increase Milk Output
Thursday, May 7, 2009
USDA began hearings this week regarding producer-handlers
What Federal Milk Orders Are Up to & Why States Are Concerned
Dairy farmer dumps milk to draw attention to low prices
PA senators want to help dairy farmers
Senators Specter and Casey come through again for dairy
Conditions good this spring, but milk price remains low
BI: An Immunocompetent Udder Starts Early
Senate-Passed Foreclosure Prevention Bill Includes Feingold Measure 
Foremost Farms website redesign caters to cheese and dairy ...
Raw milk bill moves to Senate
Marney Rich Keenan Couple deliver raw milk from their farm to suburbs
Dairy farmer shares his success with Alexandria group
Smith Dairy: Helping close the city-country knowledge gap
Groundbreaking team can't stand still
Got Milk?
Wednesday, May 6, 2009
Worldwide Food Expo launches sustainability pavilion at this years show
NCIMS adopts new ‘win-win’ definition for Grade A products
Editorial from Pro Ag editor
Panel discusses options for business in a down economy
Dairy farmers coping as best they can
House Bill Addresses Dairy Crisis
Tuesday, May 5, 2009
Market Analysis with Mary Ledman
Why are our Milk markets so volatile today? What is so different from the past...
CWT Bid Period Closes as Auditors and Staff Prepare for Bid Analysis
Feingold & Gillibrand push  legislation to help farmers restructure their loans
News for Dairy Co Ops
USDA Seeks Feedback Regarding National Animal I-D System
Johanns Cautions USDA on Organic Emphasis
New Senate Food and Ag Committee not following the herd
Wet Storage Strategies
Crave Brothers to host Wisconsin Farm Technology Days  
Tyson Foods, Inc. F2Q09 (Qtr End 03/28/09) Earnings Call Transcript
Canadian hog herd tests positive for H1N1 
Monday, May 4, 2009
March Dairy Products Report
Western United Dairymen Weekly Update
Milk Producers Council Weekly Update
Letter: Dairy farmers don't get a fair shake
Dairies caught in a price squeeze
Agriculture Awareness Forum shines light on tough times
Cross County: 'Our life has been like a movie'
NCBA President: Let's Look Beyond the Ballot Box
USDA Market News
Senator expects another stimulus
Organic Dairy Manure May Offer High Quality Fertilizer Option
Holy cow! Touring one of the nation's largest dairy farms
DMI Update: What Sustainability Means for Dairy Producers
Pfizer Animal Genetics Announces Laboratory, Headquarters Move to Kalamazoo
Calling All Jersey Cheeses: Entries Sought For North American Cheese Awards
Spanish inspired, Wisconsin made
Dean Foods 1Q profit jumps as milk prices ease
Deal to sell kosher cheese plant in city is reached
Moofest cow found!
Animal Activists Capitalize on Swine Flu Hysteria
Friday, May 1, 2009
California Class 4 Prices Announced
Dairy Markets Weekly Recap
The benchmark farm gate milk price inched a little higher
The economy continues to dominate dairy news
Dairy Checkoff Update 
La Mirada student wins $30000 for painting a cow
Bill would OK owners' use of raw milk

May Milk Feed Price Ratio Is 1.47
(May 29, 2009) The May Milk-Feed Price Ratio is 1.47, down from April's revised estimate of 1.58, according to USDA’s “Ag Prices” report issued this afternoon, and compares to 1.81 in May of 2008. 
 
The All Milk Price was estimated at $11.70 per hundredweight, down 20 cents from last month's estimate, and $6.60 below a year ago. Corn averaged $4.08 per bushel, up 23 cents from April, but $1.19 below a year ago. The soybean price, at $10.80 per bushel, was up $1.01 cents from April, but $1.30 below a year ago. Alfalfa baled hay was $138.00 per ton, up $5.00 from April, but $42.00 below a year ago.

Dairy Market Weekly Recap
(May 29, 2009) Wholesale dairy product prices remain depressed but are showing a little strength. While retail dairy product prices are down from a year ago, to the delight of consumers, dairy farm milk prices remain far below the cost of production.  

The Memorial Day holiday-shortened week saw block cheese close at $1.1525 per pound, up a penny and a quarter on the week, but $1.0775 below a year ago. Barrel closed Friday at $1.10, up 2 cents on the week, but $1.10 below a year ago. Thirty seven cars of block traded hands on the week and 24 of barrel. The NASS-surveyed U.S. average block price fell to $1.1485, down 1.7 cents. Barrel averaged $1.0994, down 0.7 cent.

Butter closed at $1.2650, unchanged on the week, but 21 1/2-cents below a year ago. Fourteen cars were sold on the week. NASS-surveyed butter averaged $1.2374, up 2.1 cents.

Cash Grade A nonfat dry milk closed Friday at 90 cents per pound, up a penny on the week, and Extra Grade closed at 87.50, up a half-cent.

NASS-surveyed nonfat dry milk averaged 83.13 cents, down 0.4 cent, and dry whey averaged 23.90 cents, up 0.4 cent.

Price support purchases for the week totaled 1.5 million pounds of nonfat dry milk, raising the cumulative total to 239.8 million, compared to none a year ago.

Dairy Profit Weekly Update With Dave Natzke
(May 29, 2009) Legislation that would ease restrictions on U.S. agricultural exports to Cuba has gained the support of the U.S. dairy industry. Dairy Profit Weekly editor, Dave Natzke, reported Friday that National Milk and U.S. Dairy Export Council (USDEC) say the legislation introduced in both the Senate and House this spring would facilitate increased dairy trade to the island nation.  

Both bills seek to remove administrative barriers that have arisen from a law passed in 2000, called the Trade Sanctions Reform and Export Enhancement Act, according to Natzke. Specifically, the new bills clarify a "cash-in-advance" requirement and authorize direct transfers of money between Cuban and U.S. banks. The bills would also ease travel restrictions for trade delegations between the two countries, and establish an ag export promotion program with Cuba.

National Milk and the USDEC believe Cuba holds promise as a market for U.S. dairy exports, Natzke said. The U.S. Census Bureau reports that U.S. dairy exports to Cuba peaked at about $30 million in 2004-05, but fell to about half of that in 2006 and 2008. That compares with New Zealand, which the Ministry of Foreign Affairs said sold about $97 million in dairy products to Cuba in 2008.

Turning attention to the farm specifically, Natzke reported that USDA has expanded a program designed to protect dairy farm income margins. The Livestock Gross Margin insurance program, launched a year ago in 29 states, was expanded to Kentucky, New Mexico, Tennessee and Washington. 

Under the program, dairy farmers can tailor insurance policies to their specific herd size, setting ceilings on feed prices and floors on milk prices, to lock in a gross margin. With the expanded program, producers in 33 states can purchase policies for 2010, beginning on July 31, according to Natzke.

(May 28, 2009) The Dairy Export Incentive Program (DEIP) is up and running again following a five year hiatus. National Milk’s, Chris Galen, said in his Thursday broadcast that “Beating on USDA’s doors paid off,” because “Now more than ever we really need the Dairy Export Incentive Program to help remove some surplus dairy products from this market,” and compete with products coming from Oceania and Europe.”

He said this will “Hopefully, be another tailwind for dairy prices at a time when obviously things aren’t looking too good.”

NMPF estimates that if all of the allotted allocation under international trade law is exported, it would equate to about 1.5 billion pounds of milk. Earlier in the week, USDA issued invitations for the full permitted amounts of nonfat dry milk (150.4 million pounds), cheese (6.7 million pounds), but only about half of the total permitted amount of butterfat (23.2 million pounds).   

The bottom line, according to Galen is, “This will help U.S. dairy producing companies compete at a time when world prices are very low.”

The DEIP ends June 30, but NMPF is optimistic that a similar quantity of dairy products will be exported in calendar year 2009.

“That’s the $64,000 question,” he said. “No one knows the answer, but I think even the most bullish of folks out there think it will be sometime in the fourth quarter or sometime next year.”  

Kurzawski believes the market could rebound sooner. The price of cheese could rise to the $1.30 mark and Class III futures could rise to a level of some profitability, depending on what happens to the price of feed grains the next two months.  

He understands it’s a desperate situation for the dairy industry, but export prices have been on the rise for May. “I think it’s going to bode well for U.S. prices,” he said. With the weakness of the U.S. dollar, our goods are going to be very competitive in the world market moving forward.

Market Analysis with Bob Cropp
(May 26, 2009) Friday’s up tick on the block cheese price will have a lot of eyes watching to see if the rebound will be sustained this week. The University of Wisconsin’s, Dr. Robert Cropp, said in Tuesday’s DairyLine broadcast that he expects strength in the block price as we move into June and, while it was at $1.29 per pound in March, he pointed to the small decrease in April milk production. If milk output continues to slip, he believes block could be trading at $1.30 by the end of June.  

“It’s the softness in the demand side,” explained Cropp, both on the export front and the domestic front so we have to get milk production trending below a year ago and, hopefully with the CWT program I think things will tighten as we move into the summer.

It’s a little peculiar that the barrel price is so far below the block price in that this is the grilling season and barrels normally get a little tighter, according to Cropp, so with the blocks strengthening, maybe the barrels will follow.

He also praised USDA’s announcement that it will reopen the Dairy Export Incentive program. The powder market is tightening, he said, and government price support purchases are slipping, so if the product is not overhanging the market is a positive factor for the industry.

DMI Update
(May 25, 2009) Joe O’Donnell, director of the California Dairy Research Foundation, was back in Monday’s “DMI Update” and discussed the difficult position dairy farmers are in with low milk prices and the desire to be environmental stewards of their farms.  

Consumers are very interested in maintaining good quality air and water, O’Donnell warned, and “That influences their purchase decisions so dairy producers and the dairy industry needs to be responsive to that.”

That said, any management changes made on the dairy has to be based on “reasonable science,” O’Donnell said. “If we simply spend money without good reason, then we’re just adding to the cost of the product and the consumer is not going to like it.”

O’Donnell praised the University of California at Davis for research it has conducted on air and water quality measurements resulting from changes in management procedures so that “at the end of the day, we have proper science backing up all of the management procedures that we have on the dairy.”

The next step, according to O’Donnell, is through the California Dairy Quality Assurance program to educate producers on new technologies that are available, which help the bottom line as well as the environment.

“We want to be as efficient as possible,” O’Donnell concluded. “We have regulations coming down and we can’t control that so much, except to have them based on science, but then the objective here is to maintain the minimum cost of production, that is foremost to the dairyman and foremost for the consumer.”

(May 22, 2009) April butter stocks totaled 242.7 million pounds, up 30.2 million pounds or 14 percent from March but were down 8.8 million or 3 percent below April 2008, according to preliminary data in the Agriculture Department’s latest Cold Storage report issued Friday afternoon.

The American cheese inventory, at 586.1 million pounds, was up 24.5 million or 4 percent from March and 43 million pounds or 8 percent above that of a year ago. Total cheese stocks amounted to 914.1 million pounds, up 19.5 million or 2 percent from March, and 58.2 million or 7 percent above those a year ago.

USDA Announces 2008-2009 Allocations for Dairy Export Incentive Program

WASHINGTON, May 22, 2009 – Agriculture Secretary Tom Vilsack today announced allocations under USDA's Dairy Export Incentive Program for the July 2008 through June 30, 2009 period, as allowed under the rules of the World Trade Organization. The program helps U.S. dairy exporters meet prevailing world prices and encourages the development of international export markets in areas where U.S. dairy products are not competitive due to subsidized dairy products from other countries. "These allocations illustrate our continued support for the U.S. dairy industry, which has seen its international market shares erode, in part, due to the reintroduction of direct export subsidies by the European Union earlier this year," said Vilsack. "The Obama Administration remains strongly committed to the pledge by the Leaders of the Group of Twenty to refrain from protectionist measures. Our measured response is fully consistent with our WTO commitments and we will make every attempt to minimize the impact on non-subsidizing foreign suppliers." The Dairy Export Incentive Program allocations of 68,201 metric tons of nonfat dry milk; 21,097 metric tons of butterfat; 3,030 metric tons of various cheeses and 34 metric tons of other dairy products, as well as individual product and country allocations will be made available through Invitations for Offers. Country and region quantities may be limited by the invitation. Administered by USDA's Foreign Agricultural Service, this program was reauthorized by the Food, Conservation, and Energy Act of 2008. As part of its World Trade Organization commitments resulting from the Uruguay Round Agreement on Agriculture, the United States has established annual export subsidy ceilings by commodity with respect to maximum permitted quantities and maximum budgetary expenditures. More information about this program, including the announcement of Invitations for Offers, is available at http://www.fas.usda.gov/excredits/deip/deip-new.asp or by calling FAS's Credit Programs Division, Office of Trade Programs, at (202) 720-3224 or (202) 720-6211. FAS news releases are available on the Internet at http://www.fas.usda.gov.

Dairy Markets Weekly Recap

(May 22, 2009) The cash dairy markets showed little reaction to the April milk production data although the block cheese price closed Friday at $1.14 per pound, up three-quarters of a cent on the week, but almost half of what it was a year ago when it hit a record $2.2850. Barrel closed Friday at $1.08, unchanged on the week, but $1.17 below a year ago. Twenty six cars traded hands on the week and 16 of barrel. The NASS-surveyed U.S. average block price fell 1.4 cents, to $1.1654. Barrel averaged $1.1064, down 0.6 cent.

Butter closed Friday at $1.2650, unchanged on the week, but 22 1/2-cents below a year ago. 23 cars were sold. NASS butter averaged $1.2153, up 1.7 cents.

Cash Grade A nonfat dry milk closed at 89 cents per pound, up a penny on the week. Extra Grade closed at 87 cents, also up a penny on the wee.

NASS-surveyed nonfat dry milk averaged 83.49 cents, up 0.7 cent. Dry whey averaged 23.47 cents, up a half-cent on the week.

Price support purchases amounted to 2.5 million pounds of powder for the week. The Agriculture Department announced Friday that it will re-open the Dairy Export Incentive program. The last DEIP export was January 2004.

MILC Rate For June
(May 22, 2009) The MILC rate for June will be $1.6245 plus the feed cost adjustor, which I project at about 27¢, for a total of $1.89. 

The rate for April will be finalized when the revised April corn, soybean, and alfalfa prices are published on May 29.  

The Class IV advanced pricing factor became the “higher of” in driving the Class I value and the June MILC payment should be about $1.62 per hundredweight, plus the feed cost adjustor, according to market analyst, Alan Levitt.

The NASS-surveyed butter price averaged $1.2051 per pound, up 4.1 cents from May. Cheese averaged $1.1562, down 14.7 cents. Nonfat dry milk averaged 83.14 cents, up 1.3 cents, and dry whey averaged 23.23 cents, up 4.7 cents.

2-week Product Price Averages:

(May 22, 2009) While U.S. milk production is starting to moderate, Dairy Profit Weekly editor, Dave Natzke, turned our attention to dairy product demand in Friday’s broadcast. He reported that, according to the U.S. Dairy Export Council, 2009 dairy exports continue to lag far behind 2008’s record pace.

Overall first-quarter exports (January-March 2009) were valued at $502.4 million, down 51 percent from the same period a year earlier. On a volume basis, exports of nonfat dry milk, cheese, butterfat, fluid milk and whole milk powder are all down substantially from a year ago, he said.

Whey continues to be a bright spot in the export market. Dry whey exports are up 19 percent for the quarter, with total whey protein exports up 3 percent for the first quarter of 2009 compared to a year earlier.

March dairy exports were valued at $173 million, up 8 percent from February, but less than half the total for March 2008.

March imports were valued at $238 million, down 8 percent from February, but it’s the sixth consecutive month dairy imports have surpassed exports. Through the first five months (October 2008-March 2009) of fiscal year (FY) 2009, the dairy trade deficit is estimated at $409 million, according to Natzke.

There's better news on the domestic front, he said. Consumer Price Index (CPI) data released by the Bureau of Labor Statistics, shows April 2009 retail dairy prices were down 1.3 percent compared to March 2009, and down 5.1 percent compared to April 2008.

Retail whole milk prices are down nearly 17 percent from a year ago, while butter is down 11 percent, and cheese is down just over 1 percent. Those lower prices should help stimulate sales as we head into summer, Natzke concluded.

(May 21, 2009) Dairy importers may soon have to pay into the national dairy check off. The requirement is almost a decade in coming, according to National Milk’s Chris Galen in Thursday’s broadcast, and involved two farm bills. The USDA published a proposed rule May 19 on how it will calculate and assess it.

National Milk successfully lobbied for its inclusion in the 2002 farm bill but it was never implemented because the assessment was not being paid by all dairy farmers in all 50 states. That was corrected in the 2008 farm bill, he said.

Processors and opponents charge that this will invite a challenge at the World Trade Organization and or mean retaliation from other countries but Galen countered, “We have 10 other commodities assessing check offs, including big ones like beef, pork, and cotton, and we have never seen any kind of reaction from any of our trading partners.”

He encouraged farmers to write USDA in support of this because there is plenty of opposition from dairy importers who don’t want to have to pay however National Milk sees it as a “matter of fairness,” Galen said, “That, if dairy farmers pay to help to expand this market which they have been doing now for 25 years, we should have importers pay at least a portion of what dairy farmers here in this country are paying so everyone pays for a market from which everyone benefits.”  

The Federation will soon make public its comments to USDA so farmers can respond and add their thoughts and direct them to USDA. “It’s been too long in coming,” he concluded, “and needs to be implemented as soon as possible.”  

(May 20, 2009) Years ago I remember a woman being asked if she was concerned about dairy farms going out of business and her answer was, “Not really because I get all my milk at Safeway.”

The reply would be hilarious if it weren’t so sad that people are that naive. It’s that kind of mentality that dairy farmers are trying to overcome by staging a dairy price rally May 30 in Manchester, Iowa as well as a milk dumping effort throughout the country.

Joel Greeno, Kendall, Wisconsin dairy farmer and National President of the American Raw Milk Producers Pricing Association, said in Wednesday’s DairyLine that its purpose is to focus attention on low milk prices and what needs to be done, such as a cost of production base line for milk prices.

The rally involves several organizations such as Farm Aid, Center for Rural Affairs, Iowa Farmers Union, National Family Farm Coalition, Progressive Agriculture Association, and others. Greeno said there will be good representation of farmers from across the country.

A national milk dumping effort is also coming together, according to Green, and will take place May 31 and June 1. He said the dumping won’t likely affect markets so much as to be a tool to gain attention by the public so they recognize that there is a problem. For more information, Greeno suggests you call the National Family farm Coalition at 1-800-639-3276.

Market Analysis with Bill Brooks
(May 19, 2009) The cash dairy markets started the new week with no changes as it awaited USDA’s Monday afternoon preliminary April Milk Production report. Downes-O’Neill dairy economist, Bill Brooks, said in Tuesday’s DairyLine that “We still have a lot of product out there.” He said there was a lot of trading last week and “We have put in a bottom but it doesn’t like prices are going to rebound very strongly any time soon.”  

He predicted that milk production will be below a year ago for the second consecutive month but warned, “We’re still chasing lower demand.” He admits it’s not consistent lower demand but it is lower demand and “We still have to match up our supply and that will bring the quickest change (in prices).”

Milk production is slipping but, if demand doesn’t pick up, Brooks says, we’re “still on the treadmill,” and while the economic signals may have stabilized, “They’re not really getting better and that’s going to cause issues for us with demand as we go through the rest of this year and into next year and that’s not confined to just the U.S. It seems to be a worldwide phenomena right now,” he concluded.

Latest Dairy Outlook Report
(May 19, 2009) Herd contraction and below-trend increases in output per cow combine to lower milk production in 2009, according to the Agriculture Department’s latest Livestock, Dairy and Poultry Outlook released this morning. For next year, further reductions in herd size will overcome productivity increases to reduce milk production further, according to the report.  

Lower exports of all products except whey, both this year and next, along with lower domestic commercial use compared with last year, will keep prices low. Next year, reduced supplies should allow for some price recovery.

The calculated milk-feed price ratio stands at 1.55 and is expected to show only modest improvement in 2010. Consequently, the U.S. dairy herd is forecast to contract to an average of 8.95 million cows in 2010 following a retrenchment to an average 9.18 million cows this year.

The 2.5-percent contraction forecast for 2010 exceeds the 1.5-percent contraction expected in 2009. According to the March Milk Production report, the total number of milk cows in the United States fell below the number on farms in 2008 by 8,000 head. Thus, the bulk of the herd contraction will likely occur in the second half of 2009 and into 2010. The Cooperatives Working Together program will likely remove slightly over 100,000 cows from the nation’s herd, with actual liquidation occurring over the summer, according to USDA.

Dairy could be next, O’Donnell warned, and “Prop 2 is ALL based on emotion.” Supporters present a bunch of pictures to stir people up, he said, and “We want any such regulations, if they have to come, to be based on science.”

The goal, according to O’Donnell, is to “generate the science that results in laws that make some sense and not just impose some meaningless expense on dairymen.” He said the Foundation is working with the entire dairy industry to do that, led by the California Milk Advisory Board and the CARES organization.

The California Milk Advisory Board California, Dairy Quality Assurance program, and CARES (Community Alliance for Responsible Environmental Stewardship) have also put together educational materials for dairy producers to better understand what the issues are and how to best respond to consumer concerns.  

Cool and wet conditions are slowing planting progress
(May 15, 2009) Cool and wet conditions are slowing planting progress. USDA’s latest crop weather summary indicates about one-half of the nation’s anticipated corn acreage was planted, nearly 25 percent behind the five-year average. Soybean planting, at about 15 percent completed, is about 10 percent behind.  

Dairy Profit Weekly editor, Dave Natzke, reported Friday that, as the planting season gets later, crop yields are affected negatively and that could mean higher corn prices ahead. USDA estimates more of the 2009 corn crop will go o ethanol production and corn exports will rise. That means corn prices could average more than $4.00 per bushel for the third year in a row.

The start of the 2009 hay harvest is still weeks away in many parts of the country, but dairy producers seeking dry hay will find the largest on-farm inventories in years. All hay stored on U.S. farms on May 1 totaled 22 million tons, up 2 percent from a year ago and the largest May 1 inventory since 2005. 

There's a lot of variability however, depending on location, according to Natzke. About half the nation’s major dairy states will find larger hay inventories than a year ago, he said, but the biggest declines are in Colorado, Florida, Texas and Vermont.

Natzke also detailed the sale of a major U.S. dairy processing company. Dairy Farmers of America, the nation‘s largest dairy co-op, announced the sale of one of its subsidiaries, Dallas-based National Dairy Holdings, to Grupo LaLa, a fluid milk and dairy product  manufacturer based in Mexico.

National Dairy Holdings operates 18 dairy processing facilities in 13 states, Natzke reported, and represented an estimated 14 percent of DFA’s $11.7 billion in consolidated sales for 2008.

(May 14, 2009) National Milk announced this week the creation of a special strategic task force to examine the challenges facing financially struggling dairy producers and suggest possible solutions. The Federation’s Chris Galen reported Thursday that “It’s one more way National Milk is trying to help deal with one of the worst economic situations facing farmers in their lives.”

The Federation has done some things to improve the price support program and the MILC program in the last farm bill, he said, and continues its CWT program. He said they know there are other ideas out there and they want to vet ideas from members as well as other organizations that are not members of NMPF.

Legislation has been floating around Capitol Hill and there’s the Growth Management Plan from Dr. Chuck Nicholson from Cornell University and Galen said they will look at these types of proposals but “it’s beyond just supply management.”

He said they will look at CWT’s role and how that may change and consider methods to create incentives to stimulate domestic production of things like casein, for which there is demand for that’s not going to go away and yet we don’t make much here.

Expanding CWT’s export program is another possibility, he said, to “look at ways to create overseas markets, a lot of which have dried up in the last six months and that’s why prices are so low and all those things have to be on the table.”

I asked why the Dairy Export Incentive Program (DEIP) was not being used and Galen answered that they have been told that other federal agencies have to sign off on resurrecting the DEIP and that has not happened yet but NMPF continues to “pound away at the entire administration, asking them to do something on DEIP as soon as they can.”

(May 12, 1009) The Agriculture Department continues to reduce its milk production estimates. The latest World Agricultural Supply and Demand Estimates report issued this morning puts 2009 output at 187.7 billion pounds, down slightly from last month’s projection of 187.8 billion, reflecting weaker expected growth in milk per cow, however it projects 2010 output at 186.8 billion, a downturn from 2009 due to “weak 2009 returns.”

Cow numbers were forecast to decline from 2009 although the pace of decline will slacken during the year as returns improve. Growth in milk per cow is expected to improve slightly in 2010 and commercial exports are forecast to increase as the global economy improves.

Domestic disappearance of fat and skim solids reflect tightening supplies and improved exports, according to USDA, and product prices were forecast higher as demand improves and supplies tighten

The cheese price forecast for 2009 was lowered but butter and whey forecasts were raised. Nonfat dry milk was unchanged.

The 2009 Class III milk price average was projected at $10.55-$11.05 per hundredweight, down a dime on both ends from last month’s estimate, and the 2010 range was put at $13.80-$14.80. The 2008 average was $17.44.

Look for a 2009 Class IV range of $9.55-$10.55, unchanged from last month’s estimate, and the 2010 average is expected to range $12.30-$13.40. The 2009 average was $14.65 per hundredweight.

The report shows that price support purchases for 2009 will hit 194 million pounds of nonfat dry milk, down 3 million from last month’s estimate, and no purchases are expected in 2010. Expected butter purchases for 2009 remain at 5 million pounds with none in 2010 and no cheese is expected to move to the government in 2009 or 2010.

Market Analysis with Al Levitt
(May 12, 2009) Market analyst Alan Levitt, editor of the CME’s Daily Dairy Report, said in Tuesday’s DairyLine that we’re in the middle of the spring flush and, while it’s lighter than years past, plants are still running at seasonally heavy levels. He adds that schools are starting to recess for the summer, making more milk available for manufacturing, and plants are gearing up for Memorial Day weekend which always means extra milk to deal with.  

He also pointed to the surprising jump in the milk volume that moved to the cheese vat in March. Total cheese output was up 4.3 percent from a year ago, he said, and Cheddar was up 3.1 percent, so a lot of cheese is still overhanging the market and he therefore believes prices will linger near support for awhile.

Some think cheese will start moving to the government under the price support program but Levitt doubts prices will be down long enough for that to happen. Manufacturers can’t just take cheese they have in storage and sell it to the government, he said. It has to be made to USDA specifications and he’s not aware of anyone geared up to do that and they have to be sure the price is going to stay low enough long enough to make that worthwhile and he doubts that is the case.

The bright spot in the market is butter which inched up another quarter-cent Monday, to $1.2425 per pound. When asked if this is being driven by ice cream demand, Levitt answered, that seasonally, there is less cream available to the butter churn but he believes people are “looking at that price and think it’s a pretty good deal to buy butter and stock up. There’s concern that later in the year, as milk supplies start to contract, butter would be one of the first things to go, he concluded, “So maybe there’s concern that they need to be stocking up on butter now as it’s a pretty good value.”

(May 11, 2009) Hilmar, California dairy producer and Dairy Management Incorporated board member, Kimberly Clauss, was back in Monday’s “DMI Update,” and said she has served on the board for six years and her second term. She said she decided to serve a second term because she believes in what DMI is doing for the industry and for dairy producers via their check off dollars.

She pointed out that DMI programs reach out to children and adults with dairy’s message. She praised the innovation resulting from the check off and its work on the issue of sustainability. She said she sees a long future in the dairy industry and wants to be a part of that and wants to see a strong industry.

Serving on the dairy board has also benefited her and her dairy operation and encouraged others to get involved by logging on to the dairy check off website or www.dairyfarmingtoday.org or contact the National Dairy Council.

Dairy Markets Weekly Review
(May 8, 2009) Cash cheese prices continued to weaken the first full week in May with blocks closing Friday at $1.1375 per pound, down 1 1/2-cents on the week, 86 cents below a year ago, and just three quarters of a cent above the government support price. Barrel closed at $1.0550, down 3 1/4-cents on the week, 92 1/2-cents below a year ago and 4 1/2-cents below support. Ten cars of block traded hands on the week and 21 of barrel. The NASS-surveyed U.S. average block price fell 3.6 cents, to $1.2119. Barrel averaged $1.1291, down 4.9 cents.  

Butter closed at $1.24, up a penny on the week but 23 cents below a year ago. Twelve cars were sold. NASS butter averaged $1.1920, up 2.8 cents.

Cash Grade A nonfat dry milk closed at 88 cents per pound, up a penny on the week on seven sales. Extra Grade closed at 86 cents, up a half-cent. The NASS-surveyed nonfat dry milk price averaged 82.33 cents, up 0.1 cent. Dry whey averaged 21.3 cents, up 0.6 cent.

Price support purchases for the week amounted to 3.4 million pounds of nonfat dry milk, raising the year’s cumulative total so far to 234.3 million, compared to none a year ago.

MILC Payment Rates and Projections
The March MILC rate is finalized at $2.00561 per cwt.

The April MILC rate is projected at $1.601, based on NASS’ preliminary feed costs for the month.

Immigration fact sheet focuses on criminal prosecution for employers
(May 8. 2009) Many dairy producers hire workers originating from Mexico and Central America and Dairy Profit Weekly editor, Dave Natzke, reported in Friday’s broadcast that it’s more important than ever that farmers determine whether those workers are here legally.

The Department of Homeland Security has released a “Fact Sheet” outlining updated worksite enforcement guidance for Immigration and Customs Enforcement officials. The “Fact Sheet” reflects a renewed focus on the criminal prosecution of employers who knowingly hire illegal workers, in order to target a root cause of illegal immigration. The memo notes that of the more than 6,000 arrests related to worksite enforcement in 2008, only 135 were employers.

In addition to immigrant identification, livestock identification is also on the minds of government officials, Natzke reported. The National Animal Identification System has been controversial since it was first unveiled years ago, Natzke said, and the debate over the voluntary versus mandatory registration of livestock premises and individual animals has increased recently.

U.S. Ag Secretary Tom Vilsack has scheduled a series of listening sessions to gather public comment. The sessions begin May 14 in Pennsylvania and will be held in Texas, Alabama, Kentucky, Connecticut, Colorado and the state of Washington over the next three weeks.

Meanwhile, the end of April and first days of May brought severe weather and moisture to much of the country, according to Natzke, but U.S. crop producers are making headway on the 2009 planting season.

As of May 3, about one-third of the nation’s expected corn acreage was planted, about 9 percent ahead of a year ago, but 17 percent behind the five-year average. Planting progress was highly variable, with Iowa producers ahead of normal, but neighboring Illinois was up to 3 weeks behind schedule. About 6 percent of the nation’s 2009 soybean acreage was planted, about even with a year ago, but 5 percent behind the 5-year average, Natzke concluded.

Hilmar, California dairy producer and Dairy Management Incorporated board member, Kimberly Clauss, is back in Monday’s “DMI Update,” to talk about why she believes in what the dairy check off is doing for the dairy industry and we have our weekly Pfizer "Vet Visit" in our second half.

USDA began hearings this week regarding producer-handlers
(May 7, 2009) USDA began hearings this week regarding producer-handlers, farms who bottle their own milk and therefore compete with other bottlers. National Milk’s Chris Galen on Thursday said “The issue is whether the very largest producer handlers should continue to be exempt from a decades-old regulation that has created a loophole, allowing these very large operations to not pay into the Class I pool” and “has to do with how all farmers are paid in Federal milk marketing orders.”

The highest value milk is Class I, he explained, and that revenue is shared by bottlers with all dairy farmers in a given region, with the exception that some of these large bottlers, if they’re owned by a dairy producer, do not have to pay into the Class I pool, thus reducing the revenue available to all other farmers.

The proposal to close this loophole was sought by National Milk and the International Dairy Foods Association, according to Galen, but also seeks to maintain and even expand the loophole for smaller producer-handlers who “don’t really have the opportunity to disrupt milk marketing because they’re not of a sufficient size, but we do think that once you reach a certain size threshold and can fly with the big boys, you ought to be regulated in the same way.”

Some frame this effort as large corporations trying to control smaller competitors but Galen argued that a lot of these bottlers have grown so big that they’re bigger than plants that are paying into the pool.

“This is about producer revenue,” Galen said. “All that money that the producer-handlers don’t have to pay into the Class I pool means a lower blend price for all other farmers who don’t happen to be their own bottler.”“It’s about making certain that, when you get to a certain threshold a certain size that you are regulated the same as any other large bottler,” he concluded. “It’s not about regulating farms it’s about regulating the bottling aspects of these very large operations.”

Worldwide Food Expo launches sustainability pavilion at this years show
(May 6, 2009) Sustainability keeps coming up in topics of discussion in the dairy industry but the U.S. dairy industry has a long history of environmental stewardship, according to Peggy Armstrong of the International Dairy Foods Association (IDFA). Speaking in Wednesday’s DairyLine, Armstrong said that “Research confirms that a commitment to sustainability is growing as a factor in consumers' perception of dairy products and can influence their purchasing decisions.  It has become an important issue to each segment of the fluid milk supply chain and the dairy industry as a whole.”

Recognizing the importance of sustainability to dairy, the Worldwide Food Expo 2009, North America's largest food and beverage technology event, will launch a Sustainability Pavilion at this year's show, Armstrong reported.

The Pavilion will feature services and products to help dairy food manufacturers and packagers meet the demand for sustainability and will highlight research, trends and best practices as well as feature the latest innovations in sustainable packaging and technology.

In addition to the pavilion, Armstrong said there is an exceptional line-up of sustainability sessions in Expo's educational program. Sessions include sustainability as part of a business strategy, case studies of successful initiatives and quantifying sustainable measures. 

“The guru of green business practices,” Joel Makower, will speak at the first Super Session, according to Armstrong. She reported that Makower is a well-respected voice on business, environment and the bottom-line, and has helped a wide range of companies align environmental goals with business strategy.

Worldwide Food Expo will be held October 28-31 in Chicago and features the newest technologies in equipment, packaging, ingredients and services.  Sponsored by the American Meat Institute and IDFA, Worldwide Food Expo includes more than 900 exhibits and 50 targeted conference sessions and attracts approximately 20,000 attendees from 100 countries, bringing together decision-makers at all levels of the food and beverage industry.  For more information, visit the show's website at www.worldwidefood.com.

USDA has begun a public hearing on National Milk’s proposal to end the regulatory loophole enjoyed by a handful of the nation's largest producer-handlers. The hearing may run for several weeks, depending on the volume of testimony generated by either those supporting or opposed to the petition.  

Market Analysis with Mary Ledman
(May 5, 2009) Cheese prices continued to weaken the first Monday in May, with blocks and barrels both slipping a quarter-cent, to $1.15 and $1.0850 per pound respectively, but Mary Ledman, Principal of Keough, Ledman, and Associates in Libertyville, Illinois, warned in Tuesday’s DairyLine that there’s likely more slippage to come in the blocks due to the 6 1/2-cent price difference.  

“End users are looking for a reason to be bullish on this market and it’s very difficult to find one at this time,” Ledman said. Dairy cow culling has slowed tremendously the last four weeks, according to Ledman, since the announcement of the CWT herd removal program and dairy producers likely are “waiting for someone else to go out and not themselves.” She says it will be interesting to see what kind of signup CWT has this time.

The Agriculture Department reports that the spring flush is occurring or close to occurring around the country. Ledman added that, while producers are holding on to cows, per cow output is falling, something we rarely see, but producers are holding to cows to see if their neighbor is going to go out under the CWT and believe that will result in the market strengthening in the second half of the year.

The latest Milk Production report showed output down 0.3 percent but demand is not growing enough for supply and demand to come together and Ledman hastened to add that 0.3 percent is not a big slippage and “We really need to see a 1-2 percent slippage to make up for the loss of exports.”

March Dairy Products Report
(May 5, 2009) The Agriculture Department’s March Dairy Products report puts butter production at 145.3 million pounds, down 0.3 percent from February and 6.6 million pounds or 4.4 percent below March 2008.  

Nonfat dry milk output amounted to 135.6 million pounds, up 12.8 million or 10.4 percent from February, and 0.4 million or 0.2 percent above a year ago.

Mozzarella cheese output totaled 281.3 million pounds, up 33.9 million pounds or 13.7 percent from February, but 4.4 million or 1.5 percent below a year ago.

Total Italian type cheese, at 362.9 million pounds, was up 43 million pounds or 13.5 percent from February, and 4.6 million or 1.3 percent above a year ago.

Cheddar production totaled 273.5 million pounds, up 32 million pounds or 13.3 percent from February, and 8.2 million pounds or 3.1 percent above a year ago.

American type cheese amounted to 359 million pounds, up 38.2 million pounds or 11.9 percent from February, and up 20 million pounds or 5.9 percent from a year ago.

Total cheese output came to 870.7 million pounds, up 100.9 million pounds or 13.1 percent from February, and 36 million or 4.3 percent above a year ago. 

DMI Update: What Sustainability Means for Dairy Producers
(May 4, 2009) Hilmar, California dairy producer and DMI board member, Kimberly Clauss, continued her discussion from last week’s “DMI Update,” on what sustainability means for dairy producers. She admitted that the word used to make her “see red,” because it had a negative connotation to it but now she sees it as “green,” because “It’s actually good for dairy producers.”  

She said it means “providing consumers with the nutrient-rich dairy products they want, in a way that makes the industry, people, and the earth economically, environmentally, and socially better, now and for future generations.” She adds that dairy farmers can do that economically, socially, and environmentally on their dairy operations and are in fact already doing that. 

This needs to be communicated to consumers, according to Clauss, to educate them about dairy farming practices that are socially, environmentally, and economically responsible but dairy farmers might not realize that.

Getting that message out is challenging, she admitted, and underscores the importance of having a “common voice” the industry can use to communicate to consumers about dairy farming and the nutrient-rich dairy products that are produced, and that “will help us all in the long run.”

Dairy Markets Weekly Recap

(May 1, 2009) Cheese trading at the Chicago Mercantile Exchange ended April on a down note. The blocks closed Friday at $1.1525 per pound, down 2 3/4-cents on the week, 78 3/4-cents below a year ago, and just 2 1/4-cents above the support price.

The barrels closed Friday at $1.0875, down 2 cents on the week, 84 1/4-cents below a year ago, and 1 1/4-cents below support. Fourteen cars of block traded hands on the week and 15 of barrel. The lagging NASS-surveyed U.S. block price average slipped to $1.2482, down 2.9 cents from the previous week while barrel averaged $1.1781, down 7.1 cents.

Cash butter closed Friday at $1.23, up three quarters on the week, but 21 cents below a year ago. Only three cars were sold on the week. NASS butter averaged $1.1645, down 0.9 cent. NASS nonfat dry milk averaged 82.21 cents, up 0.3 cent. Dry whey averaged 20.68 cents, up a half-cent.

Cash Grade A nonfat dry milk closed Friday at 87 cents per pound, up a half cent on the week, and Extra Grade closed at 85.5 cents, also up a half cent.

Price support purchases for the week totaled 5.1 million pounds of nonfat dry milk, raising the cumulative total to 230.9 million so far for the year.

The benchmark farm gate milk price inched a little higher
(May 1, 2009) The Agriculture Department announced the April Federal order Class III milk price this morning at $10.78 per hundredweight (cwt.), up 34 cents from March but a whopping $5.98 below March 2008, and puts the 2009 average at $10.33, down from $14.78 at this time in 2008 and $14.73 in 2007.  

Class III futures, as of Thursday’s settlements portend a setback in May to $10.08, rebounding to $10.77 in June, $12.30 in July, $13.22 in August, and a 2009 peak of $14.95 in December, eventually reaching $15.85 in July 2010.

The April Class IV price is $9.82, up 18 cents from March, but $4.74 below a year ago.

The four week NASS-surveyed cheese price averaged $1.2771 per pound, up 1.6 cents from March. Butter averaged $1.1665, up 3.76 cents. Nonfat dry milk averaged 81.95 cents, up fractionally from 81.66 cents, and dry whey averaged 19.49 cents, up 2.87 cents from March.

California's 4a and 4b prices are also scheduled to be announced today.  

(May 1, 2009) Dairy Profit Weekly editor, Dave Natzke, reported in Friday’s broadcast that Dairy Farmers of America “took a step in helping its 12,000 members through these tough economic times.”

The co-op said it will pay early patronage earnings totaling about $11.4 million, or about 3 cents per hundredweight on all milk purchased by the nation’s largest dairy co-op last year. The payment would equal about $300 for each 1 million pounds of milk marketed by DFA members in 2008.

Natzke also reported that U.S. Sen. Arlen Specter made news this week when he switched political parties, and along with fellow Pennsylvania Senator Bob Casey  (D) also wants to switch the way U.S. dairy farmers are paid for milk.

The two senators introduced the Federal Milk Marketing Improvement Act of 2009 (S.889), which amends a 1937 law and requires USDA to include dairy farmers’ production costs to establish a minimum price for Class II milk (or all milk used for all manufactured products). A regional differential would then be added to create the Class I price for milk used for fluid purposes, Natzke said.

The bill includes supply management provisions, setting annual milk supply and demand bases, and allowing USDA to reduce prices paid to farmers if supply outpaces demand, specifically targeting farmers who produce more than 3 million pounds of milk per year, or those who increase milk production compared to the previous year. The bill also prohibits deduction of “make” allowances from the farmer’s milk price, and addresses imports, according to Natzke.

Arden Tewksbury, manager, the Progressive Agriculture Organization, said the bill “restores fairness and stability to a current failed pricing system and dairy policies.”

National Milk’s Chris Galen said the complex bill would “essentially establish a whole new way of pricing and regulating milk,” and that NMPF is “focused on more immediate ways to help dairy producers.”

The Influenza Type A outbreak, which many are calling “swine flu”, is having a negative impact on U.S. hog producers, but dairy producers may see some economic benefits, according to Natzke. Chicago Board of Trade corn and soybean futures prices were trending mostly lower early this week, based on reduced expectations of demand for hog feed as consumers reduce pork consumption, even though there's no link between eating pork and the disease.