July 2010 Archived Dairy News

July 29, 2010
Crack Down on the Misbranding of Dairy Products
NWROC dairy herd dispersal marks end of 115-year program
Fourth-generation dairy farm family expands on success
Letter: Food for thought
NDS Announces Scholarship Winners
Dairy industry display entertains and informs
Petersons were hard-working hosts
Ulster to crown new Dairy Princess
Pregnant Cow Shot at California State Fair
July 28, 2010
California Beef Council Makes Social Media New Priority
Milk payments to Franklin County dairy farmers to be adjusted
Pennsylvania Dairy Farm Agrees to Stop Improper Medication
Vintage home on dairy property in Fallon
Dairy Research Institute Formed to Align Resources, Grow Dairy Research Program
Help Your Child Succeed With Family Meals
Aldens Top Dairy Show
July 27, 2010
CWT Expands Eligible Product List, Accepts Bids
Butter Market Remains Strong
Ag bill will help NM farmers and ranchers
Indiana agency revokes permit for 3,500-cow dairy
WA: Cause of manure-filled dairy lagoon breach found
SC: New dairy coming to Wateree prison farm
Register now for Aug. 18 Farm Bureau, PDPW Dairy Price Forum
Lightning Claims Life of Eight Dairy Cows in Green County
July 26, 2010
Construction delayed for new dairy farm in N.D.
Low milk prices continue to haunt dairymen
WSBT-TV: Dairy misses deadline
Dairy Farmers Impact The Value of Cheeseburgers
Alliance of Western Milk Producers update
Western United Dairymen update
Milk Producers Council Weekly Update  Archive
Lightning kills 8 dairy cows in southern Wis.
Dairy Farm Destroyed By Flames Now Under Investigation
Cow gives birth to triplets of different breeds
Due to statewide cuts, UMC sells off dairy herd
July 23, 2010
Dairy Market Weekly Recap
August Federal Order Class I Price Up 11 Cents
Average Cow Brings In $1,640
Dairy farmers in Wis., Minn. have strong month  Related
Wis. ag secretary's death leaves 'glaring void'
Producers mull dairy proposals
Congressional Hearing on Livestock Marketing Continues Debate
EPA's plan could cost dairy farmers
July 22, 2010
June Cold Storage Report
Rod Nilsestuen, state DATCP head, drowns in Lake Superior
National Milk Weighs In On Dietary Guidelines
Schumer: EPA reg treats dairy farmers like BP
Dairy Checkoff Update - July 2010
Dairy Farmers Can Fight Johne's Disease Threat With Chlorine And Stainless Steel
Johnson reflects on dairy research at Morris
Midwest Dairy Association Brings a Popular State Fair Tradition to You Online
Great Dairy Adventure kicks off at MSU Pavilion
July 21, 2010
Dairy Outlook
Monday's Milk Production Report Was A Surprise
Dairy support sought
CBS News Report on Raw Milk
Farmer's fight over raw milk lands in courtroom
Auction Seen as a Positive During Difficult Times for Dairy Farmers
Approved Dairy Confinement Near Crooks
WPC34 and WPC80 obtain preliminary USAID approval  
NZ - Dairy industry expandingJuly 20, 2010
Market Analysis with Bob Cropp
1 killed, 1 injured in crash with Producers Dairy truck
Boccieri, Vilsack: OARDC research will be instrumental in re-creating
rural America
Adding Value to the Dairy with Ice Cream
July 19, 2010
June Milk Production Up 2.7 Percent
Oneida County Farms are 'Dairy of Distinction'
Fuel Up To Play 60 Gets Kids More Active
Building on 102 years
China’s Bright Dairy Buys Stake in N.Z. Milk Plant
KS: Fort Scott woman put on dairy marketing board
Lisbon field day to take a look at organic grass-fed dairy operation
With milk prices low, dairy farmers turn to beef cattle
Wayne County woman to build dairy barn in Thailand
Dairy herd sale by Michigan State to save moo-lah
July 16, 2010
CWT Export Assistance Accepts Sales Totaling 176 Tons
Dairy Market Weekly Recap
This Week in Dairy Profit Weekly
Dairy Exports Reaching Two Year Highs
Dairy Cow Feeding Economics
Pfizer Animal Health and Partners Donate $830,181 to FFA, AABP
Calif. : Scream-Worthy Desserts For Natl. Ice Cream Month
Clear Spring student crowned 2010 Maryland Dairy Princess
MSU selling cows to reduce costs
Buchanan County fair trains future famers
July 15, 2010
New DEIP Allocations Announced
CWT Can't Continue Much Longer
Dairy farmers stress importance of co-ops at USDA workshop
Holstein Foundation Successfully Launches Capital Campaign
Aid For Dairy Farmers
Selling NRWOC's dairy a "Hugely Difficult Decision" 
Canada: It’s business as usual as workers picket Farmers Dairy
China lowers dairy protein requirement to curb melamine
Europe: Farmers direct dairy sales grow
IDF Freshens Dairy Nutrition Website
July 14, 2010
New bill aims to boost dairy prices
Dairy Prices Hit Oregon Hard
EPA's Oil Spill Prevention Plans for Dairy is 'Ridiculous'
Communicating The Benefits Of Lean Beef
Dairy Farmers Share strong Image
Stearns County agency marks 60 years of soil, water conservation work
Study on mastitis in dairy herds available online
Wireless helps dairy with milk, ice cream deliveries
July 13, 2010
Cheese Prices Keep Climbing
Legislation aims to stabilize milk prices  Leahy, Sanders tout proposal
Get Burning Dairy Questions Answered Aug. 11, 12
EU dairy farmers protest reforms  Video
Milk Price Rally Has More Upside As Heat Wave Grips U.S. 
2 teen dairy farm workers die after falling into silo in western Michigan
CWT Export Assistance Accepts Sales Totaling 100 Tons NMPF
Receives $25,000 to Educate about Spill Prevention...  
Udder-ly Impressive: Dairy princess wins Rock-Fest milking contest
July 12, 2010
Cheese plant expansion in Jefferson County is good news for CNY dairy
farmers
FDA seeks comments on menu, vending labeling
July Penn State Dairy Outlook
Analysis: Inside the Ohio agreement
Agriculture colleges sell cow herds to cut costs
The complexities of keeping dairy farms alivePDPW & WFBF to Hold Dairy Price Forum on August 18
Fuel Up To Play 60
July 9, 2010
California Class I Milk Prices Inch Higher
Latest World Ag Supply and Demand Estimates
Early Retirement For Thousands of Cows
FAPRI Analysis of NMPF Policy Proposal
Second Bill Aimed at Steadying Milk Prices Introduced in Congress
ME: State Fund for Dairy Farmers running out of money
Cornell Expert to Head Wisconsin Center for Dairy Profitability
International Participation at Dairy Solutions Symposium
Bovine Tuberculosis Discovered in Paulding County Dairy Herd
Community pitches in to help tornado victims
Johnson cherishes her time as dairy princess
Cows Compete For Baileys Title
Dairy Farmers of Canada busts Guinness(TM) World Record
July 8, 2010
CWT Accepts 194 Bids Representing 34,000 Cows
Correction To Fluid Milk Product Definition
Pfizer Animal Health Launches New Online Resource for Milk Quality  
NDRC and General Mills Foodservice to Award K-12 Schools $100,000 
Changes at Conklin Dairy after Firing and Arrest
Dairy Farmers Ask Feds to Fix a Broken System
Why soaring temperatures put Vt. farms at risk
Youth showcase animals at Chino Fair
Sweetwater Valley Farm cows keep cool
July 7, 2010
Processor's Perspective on Supply Management
CWT Export Assistance Accepts Sales Totaling 50 Tons
No Additional Charges To Be Filed In Animal Abuse Case
Dairy farmers threatened by collapsed Parmalat deal
National DHIA Increases Scholarship Amount
July 6, 2010
Markets: June Dairy Month Ended On A Good Week
Milk prices up some; dairy farmers still struggling
Milk Dump Story  WKTV  
Tennessee working on $12 million dairy project
CA: Valley dairies keep cows cool in the heat
PA: Milk from Rutter's Dairy leaks into creek
ork, love converge at organic dairy farm
Farmers defend way of life with Facebook, Twitter
Natural Dairy of China Seeks Approval to Buy New Zealand Farms
July 5, 2010
Editorial: Milk Dump Afterthoughts
My Dairy Program Sponsoring Video Contest
Western United Dairymen update
Milk Producers Council update
Alliance of Western Milk Producers update
Livestock Gross Margin- Dairy Insurance August Workshops  faq  
Milk prices up some; dairy farmers still struggling
Dairy farm survives tough times
Moo-ve on Up!: Sustainable Innovations in Dairy
Dairy farmers use social media to take on abuse claims
Rumen Fermentation Key To Feed Efficiency
DFA Engineer Selected for National Leadership Program
Shakespeare Helps Cows Make More Milk
Holstein Honors Three
July 2, 2010
Dairy Market Weekly Recap
Dairy News For Co-Ops
MILC Update
Federal Order Class III Price $13.62
The supply management drumbeat continues
Dairy Farmers' Revolt: No Tears Over This Spilled Milk
Milk prices and the future of dairy farms are enduring questions
Effect Of Dry Period Length On Reproduction...
MSU dairy camp helps 4-H’ers learn new skills
Dairy gives visitors a peek into life on the farm
Longmont May be the Dairy Empire of Colorado
July 1, 2010
May Dairy Products Report
What Does FDA's Action Mean For Medicated Milk Replacers?
June California Class 4 Prices Announced
Dairy farmers discuss price stabilization
Rumen Health Subject of Dairy Solutions Symposium
NAIDC elects board members
Holsum Dairy melds two facilities together for perfect fit
Pancakes and education served at Dairy Center

Crack Down on the Misbranding of Dairy Products
(July 29, 2010) A rose by any other name is still a rose, so it has been said, but that doesn’t apply to dairy products, according to the National Milk Producers Federation (NMPF). The Federation’s Chris Galen updated DairyLine listeners in Thursday’s broadcast on imitation dairy product labeling.  

You recall that, in April, NMPF wrote the Food and Drug Administration asking it to crack down on what NMPF calls the “misbranding of non dairy products that use terms like milk, cheese, or yogurt.”

This week, NMPF responded to requests by the FDA for public input on what types of information should be allowed on the front of packages, including labels and shelf tags when consumers encounter these products in stores. Comments posted on NMPF website

“We’ve used this as another opportunity to remind the Food and Drug Administration that they really should disallow the use of terms like soy milk, rice yogurt, and so on,” Galen said, “Because those are often times things that consumers look at first and the only things they look at when they make a purchasing decision.”

He adds that when consumers see plant-based products with milk or yogurt in their name, they assume those products contain similar levels of protein, vitamins, and minerals that dairy products do but “research shows that imitation products made from plants, vegetables, weeds, and seeds don’t have the same level of nutrition,” Galen said.

What asked if NMPF has received any reaction from the FDA, Galen answered that this comment period will take a while to work through but they did receive a letter from the FDA, in response to the April petition, thanking NMPF for their response and said their input would be “take under advisement.”

Galen said the FDA hasn’t quite brushed NMPF off but were fairly non committal in terms of what they’re going to do, “so we’re just going to keep up the drum beat on this and keep pressure on the federal government, particularly the FDA, because they seem very concerned about how foods are presented, marketed, and packaged so the whole issue of whether or not foods have the right names to begin with should be a front and center issue for them,” he concluded.

“That’s quite significant,” according to University of Wisconsin’s Dr. Brian Gould, who said in Tuesday’s DairyLine Radio broadcast that butter has gained 15 percent since June 1^st. “There hasn’t been a down day at the CME spot price, it’s been going up continuously.”

The high butter price has broader implications with respect to the federal pricing system. For example, last Friday the advanced Class I was released and the Class IV was the mover at $15.77 compared to the advanced Class III of $13.66. 

“So again, almost more than a two dollar difference between Class IV and Class III and it’s been that way for six out of the last eight months,” Gould reported. “So it’s truly a change in the market conditions and it’s due to purely what’s going on in the butter side.”

He said that it could stay that way for a while with the heat and humidity affecting a large portion of the U.S.  “The components are going down a little bit and being allocated to butter because it’s so valuable.”

The high butter price may bode well for cheese. “Again, the price of cheese may go up a little bit because less components going into the cheese vat.”

Gould said he has a model on the Understanding Dairy Markets website, where current futures market data and state specific statistical analysis to look at the relationship between the announced Class III and the futures Class III and the mailbox. Using last week’s end of week Class III futures prices, we see that over the July to December period, the U.S. average Federal Order mailbox is projected to be about $15.76. Wisconsin is $15.93 and California, not surprisingly, at $14.32.

“These are substantially higher  then obviously what happened at this time last year," he concluded.

Dairy Farmers Impact The Value of Cheeseburgers
(July 26, 2010) America loves cheeseburgers and dairy farmers have impacted that value chain, according to Jim Montel, executive vice president of strategic initiatives for Dairy Management Incorporated. He talked about the dairy check off partnership with McDonalds in Monday’s “DMI Update.”  

He pointed out that cheeseburgers use a large quantity of cheese and reported on McDonald’s introduction last year of the Angus burger which became very popular. That spurred the competition that looked at the result so Burger King and Wendy’s introduced their own comparable sandwiches.

Cheeseburger servings the last 12 months jumped 9 percent and 2 percent in the total category, according to Montel. That translates into about 122 million more pounds of milk in cheese being consumed, he said, and “a great return on investment for our dairy farmers.”  

(July 23, 2010) Cheese prices continued to move higher this week with the blocks closing Friday at $1.6025 per pound, up 2 3/4-cents on the week, and 40 1/4-cents above a year ago.

Barrel closed at $1.56, up 3 1/2-cents on the week, and 39 cents above a year ago. 

Cheese prices have strengthened for six consecutive weeks. Six cars of block traded hands on the week and eight of barrel. The NASS-surveyed U.S. average block price hit $1.4369, up 2.6 cents from the previous week, and barrel averaged $1.4766, up 5.6 cents.

Cash butter closed Friday at $1.80, up 2 1/2-cents on the week, and 54 cents above a year ago. Butter has also increased for six weeks in a row. Only one car was sold all week. NASS butter averaged $1.7438, up 2.4 cents.

Cash Grade A nonfat dry milk closed Friday at $1.21, down three quarters on the week, while Extra Grade held all week at $1.2250. NASS powder averaged $1.2335, up 0.1 cent, and dry whey averaged 36.15 cents, down 0.1 cent.

August Federal Order Class I Price Up 11 Cents
(July 23, 2010) The August Federal order Class I base milk price was announced this morning by the Agriculture Department at $15.77 per hundredweight, up 11 cents from July and $5.73 above August 2009. That put the 2010 average at $14.74, up from $10.95 a year ago, but down from $18.75 in 2008. The Class IV advanced pricing factor was the "higher of" in driving the Class I value and there will be no MILC payment to producers.  

The NASS-surveyed butter price averaged $1.7321 per pound, up 17 cents from July. Nonfat dry milk averaged $1.2333, down 7 cents. Cheese averaged $1.4497, down 2.3 cents, and dry whey averaged 36.18 cents, down a penny.

2-week Product Price Averages:

The average cow produced about 10,675 pounds of milk in the first half of 2010, up almost 300 pounds from a year earlier, and the 2010 all milk price has averaged about $15.38 per hundredweight, an increase of about $3.50.

“Multiply $283 by 9 million cows, and that results in a $2.5 billion increase in gross income compared to the first half of 2009,” Natzke said. “But despite the improvement, 2010 still is well behind income for both 2008 and 2007.”

One of the bright 2010 dairy spots is exports however a snag may be in the works, Natzke reported. Earlier this year, the European Union informed the U.S. that it is changing requirements for dairy product export certificates.

Since 1997, the EU has required imports of dairy products come from milk with a somatic cell count of less than 400,000 cells per milliliter. While that standard isn't changing, the EU said it will now require milk quality records for the milk from all individual farms used in the imported products, instead of just a single test from commingled milk.

National Milk and the U.S. Dairy Export Council asked the U.S. Food & Drug Administration to intervene, contending the issue is not related to food safety, but rather a potential artificial trade barrier. After meeting with U.S. government officials, the EU said it will extend the December 1 deadline to allow additional time to work out details.

(July 22, 2010) June butter stocks totaled 197.9 million pounds, down 14.6 million pounds or 7 percent from May and 65 million pounds or 25 percent below June 2009, according to preliminary data in the Agriculture Department’s latest Cold Storage report issued this afternoon. May butter stocks were revised up nearly one million pounds from last month's estimate. 

The June American cheese inventory, at 628.4 million pounds, was up 13.5 million pounds or 2 percent from May and 26.4 million pounds or 4 percent above a year ago. May revised estimates were lowered nearly 2.3 million pounds.

Total cheese stocks amounted to over 1.027 billion pounds, up 10.4 million pounds or 1 percent from May and 39.2 million pounds or 4 percent above a year ago. May revised estimates were lowers nearly 2.5 million pounds. 

National Milk Weighs In On Dietary Guidelines
(July 22, 2010) National Milk has weighed in on the June 15 release of the Dietary Guidelines Advisory Committee’s report for 2010 (DGAC). Chris Galen likened it to the World Cup of food and nutrition policy in his weekly Thursday program. 

The guidelines are updated every five years and the dairy industry has a great deal riding on the outcome of this, according to Galen, because of the strong and prominent role that milk and dairy products historically have enjoyed.

Dairy critics have become bolder in the last decade or two, he said, and claim that alternative and imitation dairy products should be included or that a plant-based diet is preferable to consuming animal products.

This is why National Milk has been so involved in this process, Galen said, and issued comments on the advisory committee’s report affirming their recommendation of three servings of dairy products per day for children two and younger and that a range of dairy products, milk, cheese, and yogurt be included.

“They are nutrient dense and offer a big nutritional bang for the buck,” Galen argued, “And real milk and dairy products should be preferred over imitations because some of these plant-based foods like soy drink and rice yogurts etc. are trying to elbow their way into the guidelines and recommendations and we want to keep elbowing them out.”

The danger is that it comes down to politics versus science and Galen warned that food has become a lot more political over the last 10 years. “The stakes become higher and that’s why it’s very important to have sound science guiding the process that we’re undertaking,” Galen said.

Congress is also trying to renew the Child Nutrition Reauthorization Act which outlines what types of products are served in schools. Galen pointed out that these dietary guidelines have to be followed in school lunch programs and “that’s why these guidelines are so very important in making certain that dairy still has a prominent role in government feeding programs.”

Related Link: http://www.nmpf.org/washington_watch/standardsandsafety/nutrition

Given the outlook for feed and milk prices, the ratio will remain nearly the same in 2011. Although producer returns have improved over 2009, the improvement is not enough to result in higher average cow numbers this year or next.

Cow numbers are expected to average 9.1 million head this year and be about the same next year. According to the June Milk Production report, monthly cow numbers have increased fractionally since the first of the year but still trail yearearlier levels.

Meanwhile, milk per cow continues to trend upward on a year-overyear basis. The increased output per cow will more than offset reduced herd size this year, resulting in more milk. Production in 2010 is forecast at 191.2 billion pounds. Next year, the forecast decline in cow numbers is expected to slow even further and production per cow is expected to be closer to trend, rising 1.6 percent year-over-year. The result is an estimated 193.5 billion pounds of milk in 2011.

Economic recovery is continuing apace in Asia and South America and coupled with weaker production in Oceania has tightened global diary product supplies. However, prices were lower at the most recent world Dairy Trading auction. According to Dairy Market News, seasonally strong production in Northern Hemisphere countries and optimism for the upcoming season in Australia and New Zealand pushed down prices.

The lower auction prices may have anticipated greater global supplies in the coming year. U.S. Milk equivalent exports are projected to reach 5.3 billion pounds in 2010 and 5.1 billion pounds next year on a fats basis.

Exports on a skims-solids basis are expected to climb to 26.3 billion pounds this year and rise to 27.3 billion pounds in 2011. The skims-solids export forecasts are in the range of 2008 export totals after last year's falloff.

Correspondingly, U.S. imports will be lower this year. Milk equivalent imports are projected at 4.5 billion pounds on a fats basis and 4.6 billion pounds on a skim solids basis this year. Imports are forecast to rise slightly to 4.7 billion pounds on a fats basis and 4.8 billion
pounds on a skims-solids basis in 2011.

The most recent Cold Storage report shows butter stocks at the end of May at 16 percent below year-earlier levels and total cheese stocks are 5 percent ahead of a year ago. The relatively higher cheese stocks and relatively low butter stocks compared with last year are contributing to butter prices being higher than cheese prices.

The July Dairy Products report shows May end-of-month nonfat dry milk (NDM) stocks at 26 percent below year-earlier levels. Fats-basis domestic commercial use is projected to rise by 1.3 percent in 2010 and by another 1.5 percent in 2011. A rise in domestic commercial use is likely on a skims-solids basis as well, but the increase is expected to be a moderate
0.1 percent in 2010 and 0.9 percent in 2011. basis, ending commercial stocks are expected to tighten both this year and next, and on both a fats- and skims-solids basis. The drawdown in stocks on a skims-solids basis is expected to be more pronounced next year than in 2010.
The current situation has Class IV prices above Class III prices, a reflection of the tightness in fat availability. Lower fat tests have boosted butter prices and may have helped firm up cheese prices as well.

This situation should correct itself early in 2011. Prices for the major dairy products, except butter, are expected to rise slightly next year.

Cheese prices are expected to average $1.465-$1.495 per pound in 2010 and $1.520-$1.620 per pound in 2011. Butter prices are forecast to average $1.530-$1.590 this year and $1.400-$1.530 per pound next year. NDM prices are expected to average $1.195-$1.225 per pound this year and $1.235-$1.305 in 2011. Whey prices are forecast to average 36.5-38.5
cents per pound in 2010 and 37.5-40.5 cents in 2011.

Class IV milk prices are forecast to average $14.65-$15.05 per cwt this year and increase slightly to $14.40-$15.50 per cwt, in 2011. The Class III price is projected to average $13.80-$14.10 per cwt in 2010 and climb to $14.40-$15.40 per cwt in 2011. The all-milk price is expected to average $15.80-$16.10 per cwt in 2010, with a rise to $15.90-$16.90 in
2011.

Monday's Milk Production Report Was A Surprise
(July 21, 2010) Downes-O’Neill dairy broker Dave Kurzawski said Monday’s Milk Production report was “a surprise.” Most analysts expected a 1-1 1/2 percent gain and he warned that this kind of bearish news should bring weaker prices but, if it doesn’t then the market likely believes July output will be hurt by the hot weather.  

Kurzawski expects cheese prices to top $1.60 for the short term though he cautioned that “we’re in uncharted waters as far as forecasting how high this price will go.” “Will this be the case 60 or 90 days from now is too early to tell,” he said, “But that is the case right now.”

The butter price is the highest it has been in several years and showing no signs of weakness, according to Kurzawski. “Cream multiples in the country are still trading at $1.50 plus, meaning, if you buy a load of cream, you’re paying a butterfat plus this cream multiple.”

Typically at this time of year trading runs around $1.20, according to Kurzawski, so there’s real good strength in the cream market and on the butterfat side of things and he doesn’t see that going away either, any time soon. “Both the strength in the CME spot cheese market and the butter market right now may override this bearish milk production number,” he concluded.

(July 20, 2010) The cash block cheese price was bid another quarter-cent higher in the first day of trading of the third week of July as it anticipated that afternoon’s release of preliminary June milk production data. The barrels were quiet at $1.5250.

The University of Wisconsin Emeritus Professor Dr. Robert Cropp said in Tuesday’s DairyLine that hot weather is the likely cause. “Buyers evidently think that things will be tighter down the road even though we still have a good supply of cheese in storage,” Cropp said, in fact the highest level since 1984 and “sales are mixed.”

Mozzarella sales are good, according to Cropp, thanks to frozen pizza demand, but fluid sales are off, so the demand side is not really strong but the export market is good. He cited a new report showing May cheese exports were up 105 percent from a year ago and butter exports were up 266 percent.

He cautioned however that there’s plenty of milk and plenty of product out there but “the thinking is that things will get tighter and this is good news.” A cheese price that’s almost $1.58 is “reasonable,” he said, but he figured that would happen at the end of August or September.

Some believe that, even if June milk production was up a fair amount from a year ago, the market would pretty much ignore that, knowing that July output is going to be down due to hot weather. Cropp concurred and said that weather and the drop in milk composition, particularly butterfat but also protein, from a year ago will likely fall even more with the hot weather so product yield is down.

Production per cow in the 23 major States averaged 1,816 pounds for June, 67 pounds above June 2009. The number of milk cows on farms in the 23 major States was 8.35 million head, 87,000 head less than June 2009, but 10,000 head more than May 2010. 

California production was up 3.5 percent from a year ago,  with 53,000 fewer cows. However, output per cow gained 125 pounds. Wisconsin was up 5.1 percent, thanks to 5,000 more cows and 80 pounds more per cow. New York was down 0.2 percent, on 13,000 fewer cows but output per cow was up 40 pounds. Idaho was up 3.5 percent, on 10,000 fewer cows but a 30 pound increase per cow. Pennsylvania was up 1.1 percent. Cow numbers were down 4,000 head but output per cow was up 30 pounds. Minnesota was up 2.1 percent, due to 1,000 more cows and a 30 pound gain per cow.

The biggest increase was in Wisconsin, up 5.1 percent. Washington state and Michigan were next, both up 4.7 percent. 

The biggest decline was in Missouri, down 5.4 percent, due to 9,000 fewer cows, however output per cow was up 35 pounds from a year ago. Colorado was next, down 2.9 percent with 9,000 fewer cows, however output per cow was up 85 pounds. Texas had the third biggest drop at 0.5 percent with 18,000 fewer cows, but output per cow was up 65 pounds.

Milk Production in the April - June quarter totaled 49.7 billion pounds, up 1.7 percent from the April - June quarter last year. The average number of milk cows in the U.S. during the quarter was 9.11 million head, 151,000 head less than the same period last year.

(July 19, 2010) National Dairy Council’s (NDC) Vice President, Jean Ragalie was back in Monday’s “DMI Update” to continue last week’s update on the “Fuel Up to Play 60” program, of which the dairy check off is involved. She said it’s popular because it enables schools to get kids to eat better and be more active.

“When we talk about eating better,” Ragalie said, “That means eating foods that they (kids) should be eating more of.” She said it takes a positive approach to nutrition and a critical part of that is eating more low-fat and fat-free dairy products and making more of them available in schools.

That means getting kids to drink milk more often, according to Ragalie, and have it in more places in the school. The “New Look of School Milk” program does that, she said, and the popular plastic re-sealable bottles are now in 11,000 schools nationwide.

Healthier school pizza is another area, she said, meaning tasty low-fat cheese on the pizza and “we know kids love pizza.”

It also means looking at the nutritional value of flavored milks, Ragalie said, and “the opportunity that presents to get more kids to drink more milk, more often.”

Breakfast is another important area. Kids get more than 50 percent of their calories at school, according to Ragalie, and making sure they have access to a nutritious breakfast as well as lunch and snack time so “there’s a lot of opportunities for encouraging consumption of more low-fat and fat-free dairy products as well as fresh fruits and vegetables and whole grains.”  

Dairy Market Weekly Recap
(July 16, 2010) Cheese prices keep climbing, up the fifth week in a row, driven primarily by climbing temperatures around the nation. The blocks closed July 16 at $1.5750 per pound, up 4 3/4-cents on the week, 43 cents above that week a year ago, and the highest they’ve been since December. Barrel closed Friday at $1.5250, up 2 1/2-cents on the week, 38 1/2-cents above a year ago, and a nickel below the blocks. Only one car of block traded hands on the week and none of barrel. The NASS-surveyed U.S. average price of block hit $1.4112, up 0.9 cents, while the barrels averaged $1.4201, up 1.9 cents.  

Butter inched higher in an effort to bring sellers to the market closing Friday at $1.7750, up 1 1/4-cents on the week, 52 1/2-cents above a year ago, and the highest since December 2004. Only two cars were sold all week. NASS butter averaged $1.7201, up 1.7 cents. The Daily Dairy Report says cream is very tight due to strong Class II production and decreasing component levels in milk.

Cash Grade A nonfat dry milk closed the week at $1.2175, up three quarters of a cent. Extra Grade closed at $1.2250, down a half-cent. NASS powder averaged $1.2336, down 4.8 cents. Dry whey averaged 36.21 cents, down a penny.

Dairy Exports Reaching Two Year Highs
(July 16, 2010) While much of the dairy economy has been gloomy for quite some time, one area that's beginning to brighten is in dairy trade. Dairy Profit Weekly editor Dave Natzke reported in his Friday program that USDA’s monthly estimates shows the value of May 2010 U.S. dairy exports reached levels the industry hasn’t seen in almost two years, when milk prices were at their peak.  

May exports, estimated at $364 million, were up $67 million or 22 percent from April and nearly double the $182 million exported in May 2009. With May’s estimates, export values have exceeded imports in nine of the past 10 months.

The last time monthly U.S. dairy exports topped $300 million was in October 2007 through August 2008, according to Natzke, and the $350 million mark has only been topped five times in history.

In contrast to the big jump in exports, U.S. dairy imports were up just 2 percent in May from April, to $206 million, and were down 14 percent from May 2009. Year-to-date, cheese imports were down 8 percent compared to last year and means the fiscal year dairy trade surplus stands at about $387 million, Natzke said.

In another trade area that we don't talk much about, U.S. dairy cattle exports are also growing, Natzke reported. U.S. female dairy cattle exports in 2010 are on a record pace, bolstered by a strong U.S. supply of heifers, and demand from oil-rich countries. 

After a lull earlier in the decade, annual dairy cattle exports have doubled since 2007, to more than 16,000 head last year, Natzke reported. And, through the first four months of 2010, cattle exports had already topped 11,000 head.   

Mexico remains a leading market for U.S. dairy cattle, but oil-producing countries, such as Saudi Arabia, have sharply increased dairy cattle buying, and superior cow and heifer quality and health make the U.S. an attractive market, he concluded.