November 2009 Dairy News Archives

Monday, November 30, 2009
Dairy Market Report for November 2009
Alliance of Western Milk Producers
Milk Producers Council Weekly Update
Vet Conference Focuses on Dairy Calf and Heifer Nutrition
Va. Farm Bureau takes aim at new bay rules
Albers created Bioenergy Solutions to tap into the biomethane market
Lancaster County Ag Industry Celebrates Leadership, Looks to the Future
Mobile classroom will take cows into area schools
Morrill Farm Dairy has outlasted others in the state
Borges family opens new creamery in Smith River
Thursday, November 26, 2009
Happy Thanksgiving
Schumer wants dairy aid out by Christmas  Gillibrand urges USDA
FSA Promotes Its Lending Abilities During Loan Briefings
Rosendale Dairy Aims to Expand to 8,000 Cows
Canada: Conference Board critical; dairy industry bristles
Chicago loses dairy trade show to Dallas
Wednesday, November 25, 2009
Dairy Farmers Have Always Been Animal Welfarists
Mega dairy trial opens at slow pace
Dairy farm earns agriculture award
Tuesday, November 24, 2009
Dairy Markets Continue to Show a Steady Increase
MILC: No December Payment is Projected
Schumer will visit Batavia dairy farm Tuesday
Calif. Milk Advisory Board Launches Documentary - "Real California Dairy Families"
Organic Dairy Farmers Create Brand: MooMilk
Rosendale Dairy seeks approval to grow to 8,000 cows
IL: Traditions Dairy trial opens
Attorney General Sues Farmers for Selling Raw Milk in Parking Lot
Monroe, Wis., cheese center about to enter new era
Churchville Dairy Farm Goes Green
Preserving our pastures
Climate change battle heats up ahead of Copenhagen
World Dairy Expo Seeks Nominations
Monday, November 23, 2009
Dairy Does D.C. Day - December 2nd
November Dairy Outlook - Penn St. University
DMI Update
Dairy Farmer’s Practices Benefit Environment, Bottom Line
Sanders backs guest worker program for farms
Aid for struggling dairy farms is slow to arrive
Pre-vet students get reality-based training at UMC
Feds: 5 Vt. dairy farms targeted over workers
Drug misuse on Minnesota dairy cows prompts federal warning
Friday, November 20, 2009
October Cold Storage Report
Dairy Markets Weekly Recap
MILC Update
December Federal Order Class I Price is $13.99
October Slaughter Numbers Released
Feds hit farms looking for illegal immigrants  DFWT e-mail
Emergency Aid: What's the holdup?
Dairy product decision looms
Schumer urges USDA to expedite distribution of critical funding to dairy farmers
Dairy Situation & Outlook: Milk Prices Continue Upward Trend
WICFA to Hold Meeting to Discuss Raw Milk Sales, Other Issues
Dairy operation takes big stake in Holt County
FDA Finds Animal Drug Abuse in NY State
Judge: Farm must track drugs in livestock
Dairy submits plan to clean up contamination
Nevada beef quality program offered here in Spanish
Wisconsin Dairy Herd Count Now Under the 13,000 Mark
Louisiana dairy industry struggling with high feed, fuel costs
Mayfield dairy buying more of its milk locally
Cross Country: A makeover for a dairy farm
Dairy Farm to Keep the Milk Flowing
New feed supplement formulation boosts cows’ energy levels
Wisconsin’s dairy cows outshine peers in production nationwide
California bans cow tail docking
2009 Sale of Champions Breaks All-Time Record; Crowd Erupts
Thursday, November 19, 2009
Independent Analysis of CWT Shows ROI of $1.54
Wisconsin Dairy Farmers Running in the Red
Dairy leaders weigh in on federal probe
Dairy Groups Ask for Raw Milk Regulation  Related
Pennsylvania, New Jersey looking to boost fallen milk prices
Judging team meets success at World Dairy Expo
S.D. dairy producer cited for pollution violations
Cow export stats: supply dip
Carrillo to oversee NMSU’s Las Cruces lands, farm operations
Farmers at dairy conference welcome higher milk prices
Wednesday, November 18, 2009
October Milk Production Down 1.1 Percent
Governor Rendell Continues to Seek Solutions to Aid Pennsylvania Dairy Farmers
Dairy leaders weigh in on federal probe
Data shows calf health improvement with Ampli-Calf milk replacer
Moldy corn crops could be double trouble for dairy farmers in 2009
Wiggins FFA scores silver, bronze
Seventh Annual Northeast Regional Dairy Challenge
Tuesday, November 17, 2009
Dairy Outlook
Dairy Markets with Bill Brooks
UVM Helps Ailing Dairy Industry
Virginia Tech Dairy Cattle Judging Team takes home third victory for 2009
Film milks life of a dairy midwife
Health of dairy cows to come under spotlight at national event
Raw Milk Sales Could Reinvigorate U.S. Dairy Farms
School districts ban chocolate milk
Fonterra vote clears first hurdle
Monday, November 16, 2009
Partnerships Continue Between Dairy Checkoff and Brand Names
San Joaquin Valley Dairy farmers optimistic they'll survive
Letter to the editor
Alliance of Milk Producers Weekly Update
Students Participate in Seventh Annual Northeast Regional Dairy Challenge
Canadian cow goes for $1.2 million at auction
Western United Dairymen Weekly Update
Milk Producers Council Weekly Update
How Does Later Corn Harvest Impact Cow Health, Milk Production?
DMI CEO Cites Recent Successes, Reasons for Optimism  
Cattle Outlook: Record High Corn Yield, Beef Prices Down
NY: Workers affected by ammonia leak expected to return for Friday shift
Petaluma FFA champs will head to international competition
The secrets of Anderson Erickson dairy
Friday, November 13, 2009
Dairy Farmers Receive Better News Regarding 2010 Price Outlook
Key Components to New Animal Well-Being Program Now Online  Manual
National Dairy Board Honors Dairy Leader with Richard E. Lyng Award 
Dairy Industry Attacks Sodas to Defend Chocolate Milk
Filming of state milk ads is heading abroad to save moola
Welcome to the Clone Farm
Students chug milk, race heifers at Dairy Fun Night
Australian, N.Z. Dollars Gain Second Week on Jobs, House Prices
UK: Dairy markets surge as global supplies tighten
Spreads and cheese lift Dairy Crest H1 profit
Cow dung to power more Dutch homes
Scottish Dairy Farmers Tackle Health and Welfare
Thursday, November 12, 2009
Mid-Week Milk Production Update
I heard it through the Grapevine
NMPF Chair, President Discuss Actions Taken to Combat Dairy Crisis  
Globalization Must Be Addressed, But Industry Isn’t Set Up to Accommodate 
Dairy farmers wrestle with vague employment laws
Rosendale Dairy readies to expand again
An organic dairy in Wisconsin reaches deal to extend its reach
Danisco’s Madison plant expansion underway
Chocolate milk lovers have a cow about bans  Related
Dakin milk sold at retail chains
Dairy Producers, “Pizzas 4 Patriots” and Domino’s Salute America’s Veterans  
2010 World Ag Expo Top-10 New Products Unveiled
Local Education
Wednesday, November 11, 2009
Solutions to dairy crisis debated
A year unlike any in recent history
Putting dairy cows out to pasture more profitable
'Climate friendly' farming could do more harm than good
Dairy at home on Louisiana range
Producer makes switch to organic
Message to Beef Board: Keep Doing What You're Doing
ND dairy convention Wednesday, Thursday in Mandan
British Columbia, Canada: The land of milk and honey
Canada: H1N1 shot for dairy workers justified: officials
Recipe: Great mashed taters call for plenty of dairy
PETA says cows still aren't happy
Tuesday, November 10, 2009
California Class 1 Prices Up a Buck
Latest World Ag Supply and Demand Estimates
Cash Butter Market is Red Hot
Ag chief: Dairy crisis threatens Vermont way
Minnesota organic dairy reaches deal to extend its reach
Wis. farms use more migrant workers
Dane County: Cow-power project moves forward
Workshop Focuses on Dairy Facilities, Cow Comfort
Dairies wrestle with animal-welfare standards
Land O'Lakes Launches Multilevel Hunger Relief Program
National Dairy Council promotes chocolate milk
New Zealand: Farmers may yet get another dairy payout boost
Three Clopton FFA Members Attend World Dairy Expo
Monday, November 9, 2009
Dairy farmers tell lawmakers of crisis
NY: Dairy farmers' woes subject of roundtable
South Dakota Growth Rate Best in the Nation
North Dakota Dairy Convention Set for Nov. 11-12
WI: Workshops Focus on Dairy Facilities and Cow Comfort
Alliance of Western Milk Producers
Western United Dairymen Weekly Update
Milk Producers Council Weekly Update
MILC Update
Dairy Producers Advised to Watch Out For Moldy Corn
Buzz Word: Nutrient Rich
Industry pushes chocolate milk in schools
Parmalat Rises to 18-Month High After Earnings Beat Estimates
Kraft Makes $16.3 Billion Hostile Bid for Cadbury
World's top dairy exporter tips rise in milk price
Friday, November 6, 2009
Dairy Market Weekly Recap
Cow Prices at a 10 Year Low
Lucas Debates H.R. 2868 on the House Floor
Dairy herd retirements raise concern over cull cow prices
Ohio dairymen want action from Congress
Dairy's debt dispute entangles herd-retirement funds
More state farms rely on migrant labor
FOX 11 Video: Cal Poly Dairy's Controversial Plan to Downsize
Dairy Farmers Pinched
Bovine practitioners weigh role in drug residues, antimicrobial resistance
USDEC Identifies Measures and Policies That Impede U.S. Dairy Trade
Bovine practitioners recount experiences with FDA inspections
"Environmentally Friendly" Food Myths Debunked
AABP conference explores new ways of working
Hungary: Dairy farmers stage gory protest against low milk prices
Australia: Semex takes judging on farm
China: Cattle Husbandry Adds 1,800 Head - Increasing Dairy Production 
Thursday, November 5, 2009
Mid-Week Milk Production Update
Milk is Moving From Butter Powder to Cheese
Climate Change Legislation Being Dealt With on Capitol Hill
Cropp: Prices Rising, Pulled by Butter, Cheese, Whey
Canadian beef packers looking for government aid
The country's oldest cheese plant is back in business
Holstein Association USA Launches Online Ear Tag Ordering Web Site
Apply for Holstein Association USA Membership in November and Get Two Months Free
Wednesday, November 4, 2009
News for Dairy Co Ops
Flavored Milk Encourages Kids to Drink Milk
Solar panels latest in green technology at UD dairy farm
Other Prices Received by Farmers Fell Last Month
Long, Painful Recovery
Risk grows for our quality of life
Dairy Vets Say Mastitis Detection in Colostrum is Critical  
Smart Balance Announces Nationwide Milk Rollout
Dairy Power Summit Jumpstarts N.Y. Digester Projects
CRF Board of Directors Elects New Officers
Petition to Obama protesting the nominations of Siddiqui and Beachy
Dean Foods Cautions on Outlook 
Arlington Dairy Day Scheduled for December 9
Michigan 4-H Dairy Judging Team is Europe-Bound
Tuesday, November 3, 2009
Market Analysis with Mary Ledman
Taking charge Farmers discuss creation of stabilization program
Dean Foods posts higher profit, raises full-year forecast
Housing policy for cows
Community pulls together in wake of Jackson blaze
Hilmar Ingredients Named Dairy Exporter of the Year
Monday, November 2, 2009
California October Class 4 Prices Announced
Alliance of Western Milk Producers
Western United Dairymen Update
Milk Producers Council Weekly Update
CA Dairies propose state hike milk's base price
Dairy farmers try to 'ride out storm'
Tech advances hurt Hadley dairyman
North Dakota dairy is one of few new ones in the state
Cattle Outlook: Beef Prices Improve, Slaughter Up
Yogurt Gets Bigger Playing Field Through Dairy Checkoff
Cabot taking steps to stay sharp
Dairy Internship Directory Available
Dairy farm with 21st century flair
100 dairy cows survive Lebanon County barn fire
Field trip is chance for close-up view of Medina's designer dairy
She's a farmer forever

Happy Thanksgiving
(November 26, 2009) It’s been a difficult year for the dairy industry and it doesn’t seem like there’s much to be thankful for this Thanksgiving. But "There is light at the end of the tunnel," according to National Milk’s Chris Galen, who said on Thursday’s DairyLine that if you are still in business, prices are turning around and are looking much better in 2010. 

"Obviously there is still a lot of collateral damage; there’s been a huge amount of equity that’s been lost." Galen said. One of the things farmers can be thankful for is having a generous and understanding lender that may have allowed some farmers to tap into the equity that they’ve built up in order to stay afloat. 

Other things to be thankful for are USDA and Congress, according to Galen, who helped out dairy farmer. The Cooperatives Working Together Program has also done some heavy lifting in reducing the national dairy herd to a level where milk production and consumption are in alignment. 

"I think the other thing we should express gratitude for is that there are consumers out there," Galen said. "Even during the recession, we saw an increase in consumption of cheese and milk." 

"Consumers have been very faithful," he said. A lot of people have less money to spend, but are still buying dairy products. "So we should be thankful for everyone that had dairy products on the dinner table during this holiday." he concluded. 

She said now is the time to stand up proudly and share with customers and consumers how well we are doing as far as taking care of our animals. She added that producers are not in the business unless they first enjoy working with the animals. "That’s what the dairy industry is all about, before we make a pound of milk we all know we have to take care of that cow so that she ultimately takes care of us an our family," Mayer said.

The beef and dairy checkoff programs help give the consumer a look into our farms and "therefore they can see how milk is made and how meat is grown and what we’re doing on our farms everyday."

"Animal welfare and animal well being is not a new way of thinking for the dairy industry, all of us have been thinking about this for a long time," she said. Now, more consumers are curious about where there food is coming from and are asking questions about how animals are cared for, which according to Mayer, is a great opportunity to share how we really get the milk from the cow to the consumer table.

"So it’s a great opportunity to share all the care, all the work, all the science, all the understanding that goes into taking care of those cows."

Dairy Markets Continue to Show a Steady Increase
(November 24, 2009) The cash dairy markets continue to show a steady increase. Dairy economist Brian Gould, Associate Professor at the Department of Agricultural and Applied Economics at the University of Wisconsin-Madison sees that continuing, especially in light of what is going on internationally.

The production in New Zealand and Australia is not going to be as high as initially forecast. “Since July, we’ve had a steady increase in the international prices of whey, skim milk powder, cheddar and butter,” he said. “And they are increasing not only in dollar terms but also relative to the U.S. prices.”  

Gould says the outlook is great for the continued increase in demand for U.S. dairy products. “Given the increase in importance of export markets, I think it bodes well for the continuation of higher cheese prices in spite of having pretty high cheese stocks,” he said.  

In terms of relative values, the ratio in New Zealand , dry whey is about 40 percent above the U.S. domestic price. Nonfat dry milk –skim milk powder is 30-35 percent over and butter is about 20 percent higher, “Making our export markets very attractive relative to what they were just six, seven months ago,” Gould concluded.

DMI Update

(November 20, 2009) October butter stocks totaled 195.1 million pounds, down 32.8 million pounds or 14 percent from September but 45.7 million pounds or 31 percent above October 2008, according to preliminary data in the Agriculture Department’s latest Cold Storage report issued Friday afternoon. September butter stocks were revised down 2.3 million pounds.

The American cheese inventory, at 579.6 million pounds, was down 16.6 million or 3 percent from September but 39.5 million pounds or 7 percent above a year ago. September stocks were revised down 10.9 million pounds.

Total cheese stocks amounted to 968.4 million pounds, was down 15.5 million pounds or 2 percent from September, but 139.4 million or 17 percent above those a year ago. September stocks were revised up 13.4 million pounds. 

Dairy Markets Weekly Recap
(November 20, 2009) The cash dairy markets showed little reaction to the milk production data which appeared bullish; but concern over the October Cold Storage report, may have kept the markets from moving much, though block cheese gained almost 2 cents Friday morning and the barrels jumped 5 3/4 cents.  

Block cheese closed the third Friday of November at $1.60 per pound, up 2 1/2-cents on the week, but still 17 cents below a year ago. Barrel closed at $1.50, up 5 3/4-cents on the week, 24 cents below a year ago, and a dime below the blocks.  Seven cars of block traded hands on the week and three of barrel. The NASS-surveyed U.S. average block price hit $1.5044 per pound, up 3 cents. Barrel averaged $1.5113, up 0.8 cent.

Butter closed the week unchanged at $1.5250, but 6 1/2-cents below a year ago. Thirteen cars were sold on the week. NASS butter averaged $1.4004, up 8.6 cents.

Both cash Grade A and Extra Grade nonfat dry milk closed Friday at $1.40 per pound, up 2 cents on the week for the Grade A. NASS powder averaged $1.1115, down 0.7 cent, and dry whey averaged 34.68 cents, up 0.3 cent.

October Slaughter Numbers Released
(November 20, 2009)  Friday’s Livestock Slaughter report from the Agriculture Department shows 227,000 dairy cows were sent to slaughter in October, down 10,000 head from September's revised estimate, and 9,000 below a year ago.  

The January to October total for this year is 2.375 million, up from 2.154 million this time last year. 

December Federal Order Class I Price is $13.99

2-week Product Price Averages:

(November 20, 2009) Do you remember that “emergency” aid that lawmakers wanted dairy farmers to have to help them through these grueling hard times? The holdup has been USDA’s decision on how to distribute the $290 million in emergency funds approved in the fiscal year 2010 ag appropriations bill and signed into law by President Obama in late October. But, the program now has a name; the Dairy Economic Loss Assistance Payment (DELAP) Program, but other details are still sketchy, according to Dairy Profit Weekly’s Dave Natzke in Friday’s broadcast.

USDA’s Farm Service Agency sent instructions to county and state FSA offices on Wednesday, November 18, in preparation for administration of the program. According to the instructions, the Milk Income Loss Contract (MILC) program will serve as the basis for determining the amount of payments individual dairy farmers will receive, Natzke reported, although provisions pertaining to eligibility, payment formula, payment rate, and processing were not announced.

USDA said DELAP regulations have not received final clearance and won't become official until they are published in the Federal Register. The instructions to FSA officials gave no timetable as to when dairy farmers will be able to receive the funds, according to Natzke, although top USDA officials have said they anticipate the money will be available in mid to late December. “In the meantime, dairy farmers suffering through one of the worst financial years ever will have to wait a little longer,” Natzke concluded.

(November 19, 2009) An independent economic analysis of the CWT program shows a return on investment of $1.54 per hundredweight so far in 2009 for dairy farmers. National Milk’s Chris Galen said “It’s the answer to the bottom line question of what has CWT done to help dairy farmers in 2009.”

Galen reported that, as in the past, Dr. Scott Brown, Professor of Ag Economics at the University of Missouri and an expert on how various farm programs affect farmers, was commissioned to assess the voluntary program’s impact on dairy farmers across the U.S.

The $1.50 does not include the current ongoing CWT herd removal, according to Galen, who also reported that the cumulative impact of CWT’s export program and herd retirement has added $2.4 billion to farm level milk receipts this year, a year where dairy income is expected to be down more than $10 billion because of the global recession. It would have been far worse, Galen said, had we not had CWT in place.”

CWT’s impact is much greater this year, according to Galen, because this has been the most aggressive year of CWT’s six year history. It has removed about 200,000 cows in the past 12 months and the important thing to keep in mind is that when Dr. Brown does his analysis, he shows a linger impact going into the forward years. We conducted two herd retirements in 2008 so part of the reason we have $1.50 per hundredweight enhancement in milk prices is because of those herd retirement last year in addition to the two that were conducted earlier in 2009. For more information, log on to www.cwt.coop.

The September revision represented an increase of 16 million pounds or 0.1 percent from last month's preliminary production estimate. 

Production per cow in the 23 major States averaged 1,721 pounds for October, 21 pounds above October 2008. 

The number of milk cows on farms in the 23 major States was 8.32 million head, 196,000 head less than October 2008, and 22,000 head less than September 2009.

California was down 5.3 percent, due to 78,000 less cows and a 20 pound drop per cow from a year ago. Wisconsin was up 3.5 percent, thanks to a 50 pound gain per cow and 5,000 more cows. New York was down 1.5 percent. Cow numbers were off 11,000 but output was up 5 pounds. Idaho was down 1.4 percent, with a decrease of 8,000 cows. Output per cow was unchanged. Pennsylvania output was unchanged from September, on a 30 pound gain per cow but 10,000 less cows, and Minnesota was up 2.5 percent on a 30 gain per cow and 3,000 more cows.
 
The biggest increase was Indiana, up 4.4 percent, thanks to 2,000 more cows and 55 pounds more per cow. Wisconsin was next, followed by Illinois. The biggest decline occurred in Arizona, down 10.6 percent due to an 20,000 decline in cow numbers. Colorado was next, down 8.9 percent with 11,000 fewer cows. Missouri followed with a 5.4 percent loss.  

(November 18, 2009) The calves you’re feeding today are the cows you’ll be milking tomorrow so it’s important to feed them the best, according to Land O Lake’s young animal technical manager, Dr. Susan Day. Speaking in Wednesday’s DairyLine, Day updated listeners on a product they hear a lot about on our broadcast, AMPLI-Calf milk replacer. She reported that AMPLI-Calf technology is now available throughout the United States, though field trials are still underway.

Users have seen better growth in their calves, according to Day, and better health. Land O Lakes makes no health claims on AMPLI Calf, she said, but health data from field trials shows calf health to be improved from feeding it.

She reported that Land O lakes has seen a lot of interest by registered cattle producers and many show calves are being fed AMPLI Calf technology. Day is herself a registered dairy producer with her husband and feeds AMPLI Calf.

She said they have had great success in getting their calves to eat it and “they grow like champs.” She admitted that her husband and his father refuse to feed their calves anything else and “they’re not known for jumping on a band wagon,” so “that means more to me than even seeing the technology work itself.”

Producers are watching their budgets closely these days but Land O Lakes is helping in that regard, Day said, by offering producers some cost saving tips, such as encouraging them to think long term so as not to stunt the growth and the health of their “future herd” by trying to cut corners now in their calf program.

There are other ways to save money, she said, such as switching to a pelleted feed, which tends to be less expensive than a textured feed. Make sure calves get good colstrum is another important tip, according to Day, so calves stay healthier and you’re not spending money in treatments.

Feeding milk replacer three times a day can improve feed efficiency and allow you to wean those calves earlier, Day said, and thus save on labor costs, “So there’s a lot of things you can do to save money without cutting you calf program.” For more information, Day recommends a visit to the local Land O Lakes Purina feed dealer or visit www.amplicalf.com or call 1-800-237-9895.

Dairy Outlook

(November 17, 2009) The block cheese price appears headed to $1.60. Monday’s trading saw the blocks pick up another three quarters of a cent and hit $1.5825 per pound. The concern is that the barrels remain at $1.4425, a 14 cent spread, so something has to give and perhaps Wednesday’s October Milk Production report will either cause the blocks to fall or the barrels to roll up hill.

Downes-O’Neill dairy economist Bill Brooks reported in Tuesday’s broadcast that it’s not out of the ordinary to have wide spreads either way in the cheese market but the spread is likely more to do with the time of the year where there’s more focus on block products; shredded cheese and chunk cheese for the holidays. Process cheese, the barrels, has probably taken a back seat right now, he said.

Brooks expects the October Milk Production report to show a drop in milk output, perhaps as much as 1 percent or more. It was a good weather month, he said, but there was a decent number of animals moving to slaughter plus adjustments in feeding look like it will take until the next lactation before animals will recover, especially in states where weather was hot. He expects milk output to be below year ago levels for the next month or two.

Look for a $1.16 increase in the December Federal order Class I base milk price, according to Brooks. He looks for Friday’s announcement to come in at $14.02 per hundredweight, but that would still be $1.41 below December 2008.

Partnerships Continue Between Dairy Checkoff and Brand Names
(November 16, 2009) California dairy producer and Chairwoman of the National Dairy Board, Kimberly Clauss, was our guest on Monday’s “DMI Update” this week. She talked about the partnerships between the dairy check off and brand name chains, calling it “good news for dairy farmers.”  

She said she actually sees her check off dollars at work whenever she drives into her local McDonalds or orders a Domino pizza. The latest venture with McDonalds is the McCafe line of beverages, now offered in 14,000 outlets across the U.S., she said, and these beverages use 80 percent more milk.

Another example of check off dollars at work is Dominos where dairy farmers partnered in the new “Legends” line of pizza. These six new pizzas use 40 percent more cheese, she said, but the check off is also developing a healthier pizza targeted for schools in an effort to make kids lifelong consumers of dairy.

Pizza sales have slipped in recent years but the check off is working to reverse that, according to Clauss, because pizza is so vital to dairy producers. More cheese is consumed on pizza than anywhere else, she said, “So we in the dairy industry realize the need to help the pizza industry and work with our powerful partner, be it Dominos or other pizza chains, to create more demand for our product.”

Butter started the week with a 2 1/2-cent jump, to $1.5250, and that was all she wrote. That’s 11 cents below a year ago. Twenty nine cars traded hands on the week. NASS-surveyed butter averaged $1.3140, up 1.9 cents.

Cash powder was pretty quiet all week though Grade A gained a penny, to close at $1.38, while Extra Grade held at $1.40. NASS powder averaged $1.1215, up 10.2 cents. Dry whey averaged 34.39 cents, up 0.4 cent.

There were no price support purchases on the week nor were there any Dairy Export Incentive program bid acceptances.

Dairy Farmers Receive Better News Regarding 2010 Price Outlook
(November 13, 2009) Echoing Chris Galen’s report, Dairy Profit Weekly editor, Dave Natzke, reported Friday that dairy farmers at the meeting heard better news regarding the 2010 price outlook, with most forecasts predicting a return to positive margins in 2010. However, he quickly added that farmers seeking a major overhaul in federal dairy policy in the short-term probably won't be as pleased.  

“With health care reform and climate change dominating time in Congress, any major change probably won't come until the 2012 Farm Bill,” Natzke reported. “Another hot-button issue, immigration reform, will have to be tackled in early 2010, or it will also be pushed aside until after fall elections, because the topic is just too controversial for lawmakers seeking reelection.”

Addressing dairy farmers Thursday morning, UDSA Undersecretary Jim Miller said USDA is finalizing a plan to distribute the $290 million in emergency aid approved by Congress, and once approved by the Office of Management and Budget, farmers should start receiving payments in mid to late December.

The meeting coincided with Veteran’s Day and a highlight was the delivery of 800 slices of Domino's pizza to patients in the Dallas VA hospital. Sponsored by dairy farmers and the non-profit “Pizza 4 Patriots,” it was part of a five-city project, delivering pizza and milk to hospitalized veterans. Farmers participating in the project were reminded of the sacrifices our veterans make to preserve the freedoms we all enjoy, Natzke concluded.

I heard it through the Grapevine
(November 12, 2009) Dairy producers met in Grapevine, Texas this week for the joint annual meetings of National Milk, the National Dairy Board, and United Dairy Industry Association. National Milk’s Chris Galen reported Thursday that the highlight was the greater sense of optimism among attendees that 2010 will be a better year financially than 2009 was.  

Discussion centered on what the Federation has done, both for the short term and the long term, to help improve dairy farm economics. Short term, the spotlight was on CWT activities and what might be done differently in 2010, Galen reported. Discussion also centered on what the Federation asked of Congress regarding reactivating the Dairy Export Incentive program, raising price supports, and purchasing cheese to stimulate farm prices in the short term.

A big focus of the meeting is what comes next, Galen said. Farmers recognize that the status quo in terms of dairy economics, can’t stand but must be changed, according to Galen, and the Foundation for the Future program was outlined which includes a multi facetted approach to changing the Federal order system, changing CWT, and changing dairy safety nets “with an eye toward making certain that this terrible price crisis that we’ve had can be averted in the future.”

The meeting wound up with an address by Dave Brandon, CEO of Domino’s Pizza, a partner with the dairy industry in selling more cheese on pizzas, and Jim Miller, an undersecretary at USDA, outlined the steps the Department has taken to help dairy farmers.

(November 11, 2009) California dairy producer Brad Scott says the Beef Check off has been “very beneficial” to dairy producers because it’s “marketing our products.” Speaking in Wednesday’s DairyLine, Scott said dairymen need to remember that they are not only dairy producers but they are also meat producers because their animals go to market and end up in the food chain as meat products.

The beef check off provides education, research, and promotion and dairy producers do have opportunity to have their voices heard as to how their dollars are spent in promoting beef consumption, which in turn contributes to their bottom line.

Scott believes that he sees a return on his investment, pointing out that the dollar he spends on the check off does things that he himself can’t do himself in getting the message out to consumers about the quality product that farmers produce.

Scott also gave high marks to the staff of the beef check off and is glad that dairy farmers have seats on the beef board to insure that the money dairy farmers invest is used in areas they deem important.

When asked what suggestions he would make to the Beef Board, Scott answered, “Keep doing what you’re doing.” “They’re continually educating the public that what we produce is a wholesome, quality, nutritious product and that farmers take good care of their animals so that, when they do reach the market, they are of a good quality for the consumer.”

The 2009 Class 1 average for the North is $13.12, compared to $19.79 last year.
This year's average for the South is $13.39, compared to $20.07 in 2008. 

Latest World Ag Supply and Demand Estimates

(November 10, 2009) The cash butter market is “red hot,” according to analyst, Alan Levitt in Tuesday’s broadcast. He said it’s being driven by market psychology, lower milk production in the western region and international markets. The butter market has gained more than 27 cents in the last three weeks alone, Levitt reported, and is above $1.50 for the first time in nearly a year.

Butter futures last week rallied as well, according to Levitt, and could mean even higher prices ahead. 2010 butter futures are averaging $1.60 per pound, he said, and he attributed a lot of this to last week’s September Dairy Products report which showed butter output down 22 percent from a year ago so there’s certainly a fear of shortages going forward.”

Manufacturer and marketer orders are very strong, Levitt reported, particularly for retail, and butterfat exports, which have been dormant most of the year have actually picked up pretty well. International prices are strong, he said, and Dairy Market News reported international butter prices at around $2.00 per pound from Europe and $1.40 from Oceania so that’s all pulling things up.”

Cash cheese keeps marching higher as well, according to Levitt, and blocks seem to have support above $1.50 per pound, but he cautioned that traders recognize that the bulk of the holiday buy in should be winding down and that could lead to a letdown in the market. “I’m not saying it’s going to,” he concluded, “But it’s one of those things that hanging out there.”  

(November 9, 2009) Dr. Gregg Miller, executive vice president of research, regulatory, and scientific affairs with Dairy Management Incorporated, discussed a buzz word among health professionals, “nutrient rich,” in Monday’s “DMI Update.” He said the dairy check off is communicating with consumers and health professionals about the nutrient value of dairy foods, with the goal of changing the paradigm in the nutrition community from nutrient avoidance.

Previously it was said, “Don’t eat fat, don’t eat salt, and don’t eat sugar,” Miller explained, and now the focus is one that balances choices over time, choosing nutrient rich foods to get a healthy diet.

“When people try to avoid saturated fat, they cut whole food groups out of their diets like dairy foods,” Miller argued, “And that’s really wrong for the nutritional quality of their diet.”

This message is being picked up globally now, according to Miller, the Global Dairy Platform, the International Dairy Foods Association, European Dairy Association, are all carrying nutrient rich foods messaging.

It’s really not a new message as we in the dairy industry have known this all along, and Miller stated that the dairy industry has emphasized the calcium content of dairy products in the past but “Now it’s time to re enlighten the image of dairy foods with consumers and talk about the whole nutrient package that dairy delivers.”  

(November 6, 2009) Dairy farmers are seeing more light at the end of their financial tunnel as dairy product prices continue to climb. The cash block cheese price closed the first Friday of November at $1.56 per pound, up a nickel on the week and the highest since mid-December 2008, however it’s still 9 cents below a year ago. Barrel closed Friday at $1.5250, up 3 3/4-cents on the week, but 11 1/4-cents below a year ago. Twenty three cars of block was sold on the week and seven of barrel. The lagging, milk price-dictating, NASS-surveyed, U.S. average block price hit $1.4690, up 1.7 cents on the week. Barrel averaged $1.4738, up 1.5 cents.

Cash butter closed the week at $1.50, up 9 cents, but still 13 1/2-cents below a year ago. Only four cars were sold. NASS butter averaged $1.2968, up a nickel.

Cash Grade A nonfat dry milk closed Friday at $1.37, up 3 1/2-cents on the week, while Extra Grade closed at $1.40, up 13 cents and even saw a trade this week. The NASS-surveyed powder price averaged $1.0190, down 1.6 cents, and dry whey averaged 34.02 cents, up 1.4 cents.

There were no Dairy Export Incentive Program bid acceptances this week and no price support program purchases, leaving the cumulative powder purchase total at 132,276 pounds, compared to 37 million pounds a year ago.

Cow Prices at a 10 Year Low
(November 6, 2009) Despite wide regional variation, U.S. average replacement cow prices continue to be pressured by low milk prices and herd liquidations. Dairy Profit Weekly editor, Dave Natzke, reported Friday that, based on USDA’s October estimate, average prices declined to $1,240 per cow, down $680 from a year ago, and the lowest quarterly average dating back to April 1999.   

Of the 23 major dairy states, 17 reported lower average prices compared to the previous quarter, with only California and Oregon reporting small increases.

In a contrasting story, Natzke reported that, in its quarterly financial report, Dean Foods announced this week that third-quarter profits totaled $49.7 million, up 32 percent compared to the same quarter a year ago. Quarterly net income was up from $37.8 million for the third quarter of 2008. Net income for the first nine months of 2009 was estimated at $190 million, compared to $117 million for the same period last year.

The price Deans paid for raw milk averaged $10.41 per cwt. during the quarter, down 45 percent from a year earlier. In its report to investors, Deans said it anticipates increasing milk prices through the end of 2009 and 2010.

The eyes of livestock producers nationwide were on Ohio this week where voters approved a referendum to establish a Livestock Care Standards Board. Natzke reported that the state was under pressure from animal rights activists to ban some methods of livestock production, and the Ohio vote is largely seen as a victory for farmers because the guidelines and enforcement will now be overseen by a 13-member board.

Nonfat dry milk output, at 87.1 million pounds, was down 17.7 percent from August, but was up 1.8 percent from a year ago. The CME’s Daily Dairy Report says “the shift from butter/powder to cheese reflects reduced milk supplies in the Western region and increased supplies in the Midwest.”

Total cheese output hit 845 million pounds, down a half percent from August, but 4.4 percent above a year ago. American type cheese output hit 341 million pounds, down 1.1 percent from August, but 6.4 percent above that of a year ago. Cheddar production was up 8 percent from a year ago and mozzarella was up 4.4 percent.

Climate Change Legislation Being Dealt With on Capitol Hill
(November 5, 2009) National Milk’s Chris Galen updated DairyLine listeners Thursday on climate change legislation in the Senate. Climate change, along with health care reform, is one of the biggest ticket, most controversial issues, being dealt with in 2009 on Capitol Hill.  

Earlier this year, the House passed a Cap and Trade bill and the Senate is now considering one. The Senate’s Environment Committee was to mark up a similar bill this week but “it got bogged down in partisan wrangling over whether it’s the right approach,” Galen said, and Republicans were boycotting the process.

“The good news,” Galen said, “Is that there are some amendments pending that would make the bill more friendly to agriculture.” National Milk believes that the legislation has to keep the needs of dairy farmers and other agricultural interests in mind, Galen reported, and believes USDA needs to play a major role in supervising the carbon credit and offset markets that might be generated through this legislation. The Federation also wants to grandfather in pre existing projects and avoid regulation of agricultural sources that may emit greenhouse gases.

Galen said they do not know what the prospects are yet but the Federation wants to be a player in process because “We know there are some potential benefits to agriculture, particularly to dairy, if we get a well constructed Cap and Trade bill.”

(November 4, 1009) On the farm, milk comes in only one flavor but, as you take a walk down your grocery store aisle or a school lunch line, you'll see many more, according to Michelle Matto, Assistant Director, Nutrition and Labeling at the International Dairy Foods Association. Speaking in Wednesday’s “Processor’s Perspective,” Matto made the point that flavored milk encourages kids to drink milk.

Chocolate has been joined by strawberry, vanilla and other flavors to tempt the tastebuds of the American consumer, according to Matto, while providing all the nutrient benefits of milk. 

Chocolate, and other flavors of milk, start with white milk and have flavoring and sweeteners added, she said. In general, they meet the standard of identity for milk, including the required levels of milk solids, and are available in a variety of calorie and fat levels.

There are also rich "milkshake" type products for people looking for a special treat and there are fat-free, no sugar added products for those that want great taste and nutrition with fewer calories, according to Matto.

She reported that, in 2007, almost 4.4 million pounds of flavored milk was sold in American retail stores; or about 8 percent of total retail milk product sales. Per capita consumption was 14.5 pounds, an increase from about 12 pounds per person in 2000 and “is an area of growth amid the continued decline in milk consumption,” she said.

While children can select from a variety of milks, Matto said it's not surprising that most milk sold in schools is flavored, with the majority being lowfat. “This is a great option for children to enjoy the nine essential nutrients of milk,” she said, and “It’s particularly important for milk to be attractive to children because most kids over the age of 8 are not drinking enough.”

Dairy processors are working to formulate new flavors and products with different levels of fat, sugar and calories to meet the demands of consumers, especially school districts, Matto reported, and these products may use different flavoring systems, or a combination of caloric and non-caloric sweeteners, while still meeting the standard of identity for milk. 

“By providing more choices, milk can better compete with other beverages,” she concluded. “When adults and children drink more flavored milk, they drink more milk, getting the nutritional benefits and supporting the dairy industry.”

(November 3, 2009) Cash cheese prices slipped a quarter-cent in Monday’s trading at the Chicago Mercantile Exchange. “Prices are taking a pause,” said analyst Mary Ledman, Principal of Keough Ledman and Associates Incorporated in Libertyville, Illinois, in Tuesday’s DairyLine. She said the pause will “serve milk prices better in the long run if we pause to see if these prices are sustainable.”

She warned that punching through that $1.50 per pound price level is going to be difficult because there will have to be a slowdown in milk production and hence cheese production and an eroding of stocks before we hit that $1.60 level. The $1.40-$1.50 range seems to be sustainable, she said, but we need to see a correction in milk production before we will hit $1.60.

When asked if she thought the lower CWT bid acceptances may have disappointed the markets, Ledman said, “Whether it’s disappoint from lower numbers on the CWT or a realization that we have about 10 percent higher stocks than what we had a year ago, even as a percentage of total production over the last eight months, that’s close to 26-27 percent which is a strong inventory level versus production.”

She said she wouldn’t blame it all on CWT though she added that CWT had enough money to take out twice as many animals as what they did. She believes that “It’s more a reflection of the optimism in producers who think these markets have turned and want to stay in this business longer,” she concluded.

Yogurt Gets Bigger Playing Field Through Dairy Checkoff

(November 2, 2009) Yogurt is and has been a driving and growing force in the dairy industry but that growth slowed recently, according to Dairy Management Incorporated CEO Tom Gallagher in Monday’s “DMI Update.” He said the reason was that the size of the packaging at retail was reduced by two ounces. Unit numbers were not changed but there were two ounces of yogurt per unit that wasn’t sold and this demonstrated the importance for the dairy check off, working on behalf of farmers, to work with the rest of the industry, namely processors.

Our challenge, he said, is to make sure that change like that doesn't negatively affect the dairy industry and one of the ways they’re doing that is to broaden the playing field in terms of sales availability, in other word, making more yogurt more available.

An example of that is the partnership between the dairy check off and General Mills and their fruit and yogurt smoothie now found in the frozen foods section of the grocery. It’s yogurt chips with fruit that you take home and mix with milk to turn it into a smoothie and in test markets, General Mills said that this product has tested as well as better than any other product they’ve ever introduced.

The strategy is to “keep what’s strong, strong, Gallagher said, “And add new venues and new ways for dairy products to be used with yogurt.” It’s another successful partnership between the dairy check off and a brand name and we salute it this week.