June 2010 Archived Dairy News

June 30, 2010
June Federal Order Class III Projected at $13.63
DFA Mideast Industry Insider   June/July 2010
MN: Dairy industry in the area is still alive and well
Vilsack clarifies antitrust initiative
Say Cheese
Dairy Checkoff Update - June 2010
Antimicrobial resistance
USDA, Dept. of Justice focus on dairy industry competition
Dairy products offer more than nutrition during the summer
June 29, 2010
Latest Ag Prices Report
Market Talk with Brian Gould
CWT Export Assistance Accepts Sales Totaling 405 Tons  
To the Editor
Dean Foods comments to DOJ/USDA workshop
Glass is half full for dairy industry after workshop
FDA Issues Draft Guidance on the Judicious Use of Antimicrobials in
Animals
Construction Begins on Second Farm Power Dairy Digester
July 1 Deadline to Apply For Jersey Youth Scholarships
Art of Dairy Contest: Safeway Names Arizona Student Top Prize
Winner
Hilmar Cheese makes donation for lab
Healthy school meals fuel kids, farm industry
WLIC looking forward to another Farm Technology Days  
June 28, 2010
DOJ And Ag Departments Hear Dairy Concerns
Keep Local Farms initiative aims to help New England dairy farmers
Missouri conference, farmer says spraying milk on field improves grass
Marketing critical to dairy industry as it looks to the future
Danone JV Boosts Russian Dairy Business
Union tackles Fonterra over office shift
UK - Renting dairy cows
June 25, 2010
Audio Report From Dave Natzke at DOJ/USDA Workshop 
Dairy Market Weekly Recap
Dairy Market Report - Roger Cryan, NMPF
Dairy Profit Weekly Report with Dave Natzke
US regulators examine dairy industry competition
Feingold On Expectations for the USDA/DOJ Workshop
Letter: Obama ignoring the plight of dairy farmers
Dairy producer finds value in working with Extension
Dairy Science Professor Named Cal Poly Distinguished Scholar
June 24, 2010
DFA Prepares for USDA/DOJ Dairy Workshop  
Fresno County Top Ag Producer
UK: Rabobank predicts slow ease in global dairy prices
Kansas Man Killed in Accident at Dairy
Dairy Farmer Faces Mistreatment Charges
World Dairy Expo 2010
Local dairy offers free tours for Dairy Month
Free ice cream, tours Friday at Dairy Farm
Dairy Festival Sunday in Hilmar
June 23, 2010
Three reports will help clear up feed price picture
Holstein USA CEO Comments on "Foundation For The Future"
Milk Prices Poised To Rebound
Hanford dairy farmer to join national panel
UVM dairy herd for sale
NY: Boilermaker Event To Beef Up Your Health
PA Dairy Farmers Hit The Speaker Circuit
MILC Article in Galena Gazzette
June 22, 2010
Sideway Trading Predicted For This Week's Cheese Market
Farmers' voices to be heard at dairy meetings    Agenda
PDPW & WFBF to Hold Dairy Policy Summit in August
Supreme Court rules on Roundup Ready(R) Alfalfa
CWT Export Assistance Accepted Sales Totaling 225 Tons
Penn State Dairy Outlook - Jim Dunn, June 2010
Target Plans To Offer Fresh Meat, Dairy In More Stores
Dean Foods to roll out diesel-saving truck   Eco Friendly
Bringing Vets To Rural Kansas
PA: Chester County a hotbed of cheese artisans
Lucas Praises Miller's Efforts in Protecting Dairy Producers
Down Under: Dairy's bright decade ahead
Danone to merge Russia operations with local dairy
June 21, 2010
U.S. Dairy Exports Are Strong Again
Unfair milk prices are destroying dairy farmers
Dairy farmers push EPA on spilled milk
Local couple organizing dairy farmers' strike
New California Dairy Ads
June 18, 2010
May Milk Production Up 1.3 Percent
Milk Producers Council Responds to Comments by IDFA’s CEO  
Cheese Price Roller Coaster Heads Back Up
July Federal Order Class I Up 38 Cents
Dairy Outlook
DOJ & USDA public workshop to examine competition in the dairy
industry
Co-ops give dairy farmers a voice
WI Editorial: June Dairy Month time to rethink farm policy
Saratoga County dairy farmers fighting for their way of life
Accelerated Genetics Adds New Products
Woloszyn dairy a three-generation farm
Promoting Dairy
Barcellos family from Porterville is named Dairy Family of the Year
Team showcased at Dairy Days
June 17, 2010
Mid-Week Milk Production Update
'Foundation For The Future' Is A Comprehensive Proposal
Conditions are getting somewhat better for dairy farmers in California
MI State Senate calls for EPA to change rule classifying cow's milk as oil
Deansboro farmer using rotational grazing
USDA Bans Organic-Foods Certifier From Chinese Operations
NRCS announces CIG funding available
UterFlush Reproductive Care for Cattle Introduced
West Salem cheesemaker opens tasting room
Gregory Family Hosts 1,300+ for Breakfast
Bridging the Gap
S. Dakota Dairy Tours are Saturday
ID: Get Rural With Dairy Days
NY: Mobile milk mustache campaign will roll through the area
June 16, 2010
More Upside On The Cash Cheese Market
Video: One Hungry Planet
June Dairy Month Passes Unanimously in the House
Moo Memories a great success in telling Holstein story
Milk producers seek to replace federal price supports
Milk: Moo to you; a day of the life of a farmer
Europe: Seven recommendations to reinforce position producers
Canada: From robotic milkers to energy made from manure
June 15, 2010
Independence Day Milk Dump Protest Planned  Radio Interview 
CWT Export Assistance assisted sales total 911 tons
Audio: NMPF Press Conference Audio on Changes in U.S. Dairy Policy
Market Analysis With Al Levitt
National Dairy Cattle Congress Marks 100th Anniversary
Study aims to maximize return on dairy beef
Workers evacuated from Kroger dairy
Dairy Festival: Udder Success
Dairy Breakfast Offers a Taste of Farm Life
Ode family opens Royalwood Dairy to community
N.Z. Dairy Exports To Top NZ$15.7 Billion By 2014 - Government
June 14, 2010
Sweeping Dairy Policy Reform Makes Headlines Friday
Dairy Market Weekly Recap
EPA to Delay Deadline for Spill Control Regulation of Bulk Milk Tanks  
Alliance of Western Milk Producers update
Western United Dairymen Update
Milk Producers Council Friday Updates
The 2nd World Jersey Cheese Awards
U.S. dairies grow in size, but also in amount of comfort provided to cows
U.S. Milk Production On Track For Record Year, Price Outlook Fading
NY Dairy Farms Struggling
Pfizer Animal Health to Expand Access to E. coli O157 Vaccine from
Epitopix for Beef Cattle 
Farm Worker Pleads Not Guilty To 12 Animal Abuse Counts
 DFA Advocates Supply Management, Dairy Policy Reform
IDFA Commends Proposals for Dairy Policy Reform but Opposes Supply
Management Plan
No Changes In MILC Projections
NMPF Elects New Officer, Board Members 
Dairy Farmers To Be Given Boost
Authorities Unsuccessful in Search of Sauk Co. Farm Defying Order
Dane County Farmers' Market: Bleu Mont Dairy
Sick Cattle Sometimes Need Fluid Therapy
New Charge For Man Accused Of Abusing Dairy Cows
Breakfast on the Farm is a chance to see a dairy operation up close
ClariFly Larvicide Fly Control That's Included In The Feed
June 10, 2010
July California Class 1 Prices Announced
Mid-Week Milk Production Update
Milk Production Forecast Raised Again
NMPF Adopts Multi-Faceted Proposal To Make Major Changes in U.S. Dairy Policy
CWT Export Assistance assisted sales total 750 tons
DOJ and USDA Announce Workshop On June 25 in Wisconsin
Robots help do the work on a Wayne County, Ohio dairy
Dairy farmers play key roles in the daily lives of us all
"Cow and Calf Day" at Farmers Fare
June 9, 2010
Dairy producers need to be involved of what’s going on in the beef side
Low milk prices hurt Tulare County ag sales
Key Components to Animal Well-Being Program Now Available in
Spanish
Abating ammonia emissions from dairy barns and fields
Did you drink your milk today: June is Dairy Month
Fonterra Doubles Milk Powder Auctions
June 8, 2010
Market Analysis with Bill Brooks
Manitowoc County cows top producers in the state
Growing grass for dairy cattle is a science
Dairy projects: Kids don't cower from challenge
June 7, 2010
Leahy on the borderline in immigration debate
Milk Producers Council Weekly Update
Western United Dairymen Update
MILC Payment Update
Cheesemaking in Wisconsin   Related
Inspectors Visit Farms, Reinforce Raw Milk Law
Dairy disobedience
|California Puts A Face On Dairy Farmers
Moncton farmers milk the power of computers
June is Dairy Month
Checkoff Partners With Domino's
Family Meals Matter - Celebrate June Dairy Month
June 4, 2010
Dairy Market Weekly Recap
May Federal Order Class III Up 46 Cents
Fonterra is Becoming Household Name in U.S. Dairy Industry
Milk Storage Tanks to be Exempt from Oil Spill Prevention Rule
PA: Dairy farmers to receive higher premiums
NY: Jefferson County lost 20 dairy farms last year
Loganville Dairy Producer: I Refuse to Stop Selling Raw Milk
US backs off plan to take Vt. farm for border port
More Evidence Links E. coli to MN Dairy Farm
WI: Breakfast aims to enlighten public
Got Milk? Traverse Colantha Walker sure did
June 3, 2010
Say Cheese Magazine Expands Distribution to the Northwest  
CWT Update
Hardin County dairy farm could become the largest in Ohio
Not the Standard for Ohio Dairy Farms
Celebrate Dairy Month on the Farm
A Very Dairy Day
June 2, 2010
April Dairy Products Report
Energy Star Challenge For Dairy
California's May Class 4 Prices Announced
New Brochure Available: Cost Of Johne’s Disease To A Dairy Herd
Award Available For Missouri Dairy Farmers
Dairy giant eyes Rock County property
June 1, 2010
CWT Export Assistance Assists Sales of 191 Tons
Market Talk with Bob Cropp
Happy June Dairy Month
Ag Prices Report Shows Improvement In Pocketbook
MD: County Dairy Princess crowned

June Federal Order Class III Projected at $13.63
(June 30, 2010) June Federal Order milk prices are announced Friday morning. Market analyst, Alan Levitt, predicts the Class III price will come in at $13.63 per hundredweight. That would be a 25 cent increase from May and $3.66 above a year ago.  

He predicts the Class IV price at $15.76. That would be a 47 cent increase from May and $5.54 above a year ago. Check here for the official prices along with California’s June 4a and 4b prices.

Say Cheese
(June 30, 2010) DairyLine’s parent company, DairyBusiness Communications, in January, launched Say Cheese magazine. Editor Pat Dailey talked about its goals in Wednesday’s broadcast. Short answer, said Dailey, is to sell more cheese.  

“We want to educate consumers and readers about the many different kinds of cheese that are available, how to use them, how to enjoy them and integrate them into their lives so that they understand how to navigate the cheese counter much more effectively.”

The magazine features a lot of educational material, according to Dailey, and introduces them to new cheeses, how cook with them, and how to pair them with different accompaniments.

Say Cheese started in California with 50-55,000 copies and the reception has been so strong, she said, that the third issue, coming in July, will go to Oregon and Washington, and the January issue will be expanded to the East Coast.

Say Cheese is targeted to consumers but Dailey is quick to point out that it came about from discussions with dairy farmers. Many farmers do farmstead cheese themselves, she said, or are working with cheese makers and manufacturers that purchase their milk, and the farmers felt that greater education about cheese was needed. For more information, log on to www.saycheesemedia.com.  

(June 29, 20101) The June Milk-Feed Price Ratio is 2.33, up from May's revised estimate of 2.19, according to USDA’s “Ag Prices” report issued Tuesday, and compares to 1.45 in June of 2009. 
 
The All Milk Price was estimated at $15.80 per hundredweight, up 70 cents from last month's estimate, and $4.50 above a year ago. 

Corn averaged $3.38 per bushel, down a dime from May, and 63 cents below a year ago. The soybean price, at $9.39 per bushel, was down two cents from May, and $2.01 below a year ago. Alfalfa baled hay was $119.00 per ton, down $2.00 from May, and $9.00 below a year ago.

Market Talk with Brian Gould
(June 29, 2010) The cash block cheese market gave back all of Friday gain in CME trading the last Monday of June Dairy month. The barrel gave up most of Friday’s jump however butter held at an amazing $1.72.  

The University of Wisconsin’s Dr. Brian Gould said in Tuesday’s DairyLine that the butter market is anticipating improved exports and given the “normal level of stocks,” any increase in butter exports is “really going to have a positive impact on prices,” and the upward trend since May is indicative of that.

Cheese prices are reacting the year over year increases in milk production, according to Gould, and the “exceedingly high stocks of cheese.”

Gould also commented on Friday’s Department of Justice/USDA workshop on competition and regulatory issues in the dairy industry. He said a primary concern of a lot of the attendees was a possible change in the Capper-Volstad act which exempts cooperatives from antitrust litigation. The message that came out from the workshop, he said, was that there would not be any changes.

The workshop featured three panels, one dealing with the state of the industry, one with market consolidation, and one on price and market transparency. Gould said it was a packed house and remains to be seen whether anything of substance will come of it.

He expressed concern in that most of the comments that were made in the two public comment periods were centered on milk pricing, which was really not the focus of the workshop.

DOJ And Ag Departments Hear Dairy Concerns

(June 27, 2010) Dairy farmers, processors, and lawmakers met in Madison June 25 for a Department of Justice/USDA workshop on competition and regulatory issues in the dairy industry. It was the third in a series but focused on dairy.

U.S. Agriculture Secretary Tom Vilsack acknowledged the financial struggle in rural America, particularly among dairy farmers, and emphasized the importance of cooperatives in agriculture and said the purpose of the workshop was not to weaken cooperatives.

Christine Varney, Assistant Attorney General, said they are working to improve competitiveness and is mindful of concern in the industry over competitiveness at the farm as well as at retail and foodservice, including school milk.

Dairy Profit Weekly’s Dave Natzke reported that a lawmaker and producer panel

dealt with market transparency as one of the issues in the morning session. Criticism was voiced of the Chicago Mercantile Exchange for being too thinly traded and easily manipulated.

The farmer’s share of the retail dollar was also raised, Natzke reported, as being squeezed by large retailers plus concentration and consolidation among large processors.

Wisconsin’s two Democratic Senators Herb Kohl and Russ Feingold as well as Secretary Vilsack and Secretary Varney said the CME would likely be a focus of an investigation.

Several farmers pointed to the CME as the reason for the severe market volatility in cheese which in turns affects all milk prices. There was also concern voiced regarding trading against interest, Natzke said, where organizations bought cheese at low prices on the CME and then sold it back on the CME at a higher price, effectively keeping a lid on prices.

Dairy Market Weekly Recap
(June 25, 2010) The cash dairy markets had little reaction to this week's Cold Storage report. Block cheese closed Friday at $1.41 per pound, up a half-cent on the week, and 29 cents above that week a year ago. Barrel closed at $1.3950, up a penny on the week and 30 1/2-cents above a year ago. Only two cars of block traded hands on the week and six of barrel. The lagging NASS-surveyed U.S. average block price lost 1.7 cents, slipping to $1.4414. Barrel averaged $1.3909, down 3.6 cents.  

Butter closed Friday at $1.72, up 8 1/2-cents on the week, 51 1/2-cents above a year ago, and the highest it has been since September 2008. Only six cars were sold on the week. NASS butter averaged $1.6012, up 2 1/2-cents.

Cash Grade A nonfat dry milk held all week at $1.25. Extra Grade lost a half cent, closing at $1.2450. NASS powder averaged $1.3059, up 0.2 cent, and dry whey averaged 37.18 cents, up 0.4 cent.

Dairy Profit Weekly Report with Dave Natzke
(June 25, 2010) With U.S. milk production on the rise and more than a billion pounds of cheese in storage, attention remains on a controversial topic in the dairy industry, establishing supply-demand balance controls, according to Dairy Profit Weekly editor Dave Natzke in Friday’s DairyLine.  

Earlier this month National Milk proposed sweeping changes to federal dairy policy, and one of the most controversial components is the Dairy Market Stabilization Program. Simply put, the plan deducts money from a dairy farmer’s milk check if national average income margins fall below trigger levels. Only dairy farmers who produce more their designated milk base would pay the deduction, getting a signal to cut the milk supply. 

Connie Tipton, head of the nation’s dairy processor organization, vowed to fight any proposals establishing supply management controls, saying a mandated program would raise consumer prices, decrease dairy product demand, encourage non-dairy substitutes in manufacturing, and hurt U.S. dairy exports.

That drew outrage from Rob Vandenheuvel, general manager of California’s Milk Producers Council, a dairy farmer organization which been promoting a supply-demand balancing program of its own as a means to help financially struggling dairy farmers. Another organization promoting its own supply management plan, Holstein USA, is holding its annual convention in Minnesota this weekend. One of the topics will likely be whether to endorse National Milk’s proposal.

Natzke went on to report on another controversial topic, this one related to dairy feed. The U.S. Supreme Court ruled 7 to 1 that a California federal judge went too far when he imposed a nationwide ban on planting genetically engineered alfalfa seed, known as Roundup Ready alfalfa.

USDA initially approved the seed in 2005, but U.S. District Court Judge Charles Breyer issued the ban, ordering the agency to conduct a more extensive environmental impact study of the herbicide-resistant seed. USDA issued a draft environmental impact statement last November, and is expected to take final action next spring, which could pave the way for farmers to plant the seed next growing season.  

(June 23, 2010) State Beef Council check off dollars help add value to beef and dairy farmers and help drive consumer demand for beef through events like the “Boilermaker” event in Utica, New York, in July, according to Jean O’Toole, New York Beef Industry Council director of retail, foodservice, and consumer events.”

Speaking in Wednesday’s DairyLine, O’Toole said the “Boilermaker” includes a 15K road race, the largest in the U.S., a 5K run, a three milk walk, and a kid’s run and beef is involved in a “massive way.” She reported that they have a large tent with the theme “Beef Up Your Health” which offers glucose and blood pressure testing, they have the “Beef It’s What’s For Dinner culinary stage to teach attendees how to cook beef properly, a “Beef Booth,” and a “Power of Protein challenge.”

Beef, veal, and dairy producers are competing in the ZIP team, which stands for zinc, iron, and protein. The local dairy princess is involved as Upstate Dairy donated chocolate milk to the kid’s run so they have a “nice recovery drink,” one of Chocolate milk’s many attributes, and the local Beef Council dietician is there for nutrition consulting.

The event draws radio, newsprint, and TV coverage and “When you have 100 runners wearing our “Team ZIP” shirts, you get the media’s attention.” The shirts read, “Beef, It’s What’s For Dinner.” 

(June 22, 2010) May butter stocks totaled 211.5 million pounds, up 5.2 million pounds or 3 percent from April but 41.8 million pounds or 16 percent below May 2009, according to preliminary data in the Agriculture Department’s latest Cold Storage report issued this afternoon. April butter stocks were revised down nearly 1.3 million pounds from last month's estimate. 

The May American cheese inventory, at 617.2 million pounds, was up 7.7 million pounds or 1 percent from April and 31.1 million pounds or 5 percent above a year ago. April revised estimates were lowered nearly 4.5 million pounds.

Total cheese stocks amounted to over 1.018 billion pounds, up 10.4 million pounds or 1 percent from April and 48.4 million pounds or 5 percent above a year ago.

Sideway Trading Predicted For This Week's Cheese Market
(June 22, 2010) Monday’s cash block cheese market gave back Friday’s half-cent increase and the barrels were unchanged prompting analyst Mary Ledman, Principal of Keough Ledman and Associates Incorporated in Libertyville, Illinois, to predict sideway trading for this week’s cheese market until we see a down tick in milk production.  

She reported that there is a strong flush in the Midwest, pointing to Friday’s preliminary data showing Wisconsin up 5.8 percent in May, Minnesota up 3.8 percent, Michigan up 4.4 percent.

She said we have to see a moderation in the growth of milk production before we’ll see any clear upward signals on cheese prices.

Friday’s reported increase in milk output was not as much as many had expected however Ledman pointed to USDA revisions on March cow numbers which added about 6,000 head to the herd and USDA’s revisions have tended to be increases and not decreases, she said.

“There’s plenty of milk in most areas of the country,” Ledman said, and a considerable amount of condensed skim in the marketplace and she believes it’s being priced very competitively against nonfat dry milk powder and resulting in less cream being available in the marketplace and enhancing butter prices.

The cash butter price jumped a penny and three quarters Monday. She attributed that to seasonally low component levels in milk. Some believe that feed is having a negative impact as well but this is also the seasonal high demand period for butterfat and the increased sales of condensed skim is shorting the amount of cream available for the churns as well.  

U.S. Dairy Exports Are Strong Again
(June 21, 2010) U.S. dairy exports are strong again and April data was reported in Monday’s “DMI Update” by the U.S. Dairy Export Council’s Margaret Speich. Speich reported that milk powder, whey proteins, cheese, butterfat and lactose exports posted gains over a year ago.  

April exports were valued at $291 million, up 68 percent from a year ago, according to Speich, the highest figure (on a daily average basis) since September 2008. Looking more broadly, at the first four months, exports were valued at $1 billion, up 52 percent, she said.

On a product basis, exports of milk powder remained strong in April, up 51 percent in volume. Exports of whey proteins in April were the highest in two and a half years, principally led by big volume gains of 45 percent to China and 57 percent to Southeast Asia. In addition shipments to Mexico were up 12 percent.

Cheese exports in April a record high in volume, up 72 percent from April 2009. And, if you look at the first four months of this year, U.S. exports of cheese were up 43 percent, she said, and looking at a percentage basis, in the first four months of this year, U.S. exports were equivalent to 29 percent of the milk powder produced, 63 percent of whey proteins and 3.1 percent of cheese. Overall, April exports represented 12.3 percent of U.S. milk solids production, the most since August 2008.

April revised production at 15.2 billion pounds, was up 1.8 percent from April 2009. The April revision represented an increase of 14 million pounds or 0.1 percent from last month's preliminary production estimate.

Production per cow in the 23 major States averaged 1,889 pounds for May, 55 pounds above May 2009. 

The number of milk cows on farms in the 23 major States was 8.33 million head, 143,000 head less than May 2009, but 4,000 head more than April 2010.

California production was up 0.2 percent from a year ago,  with 65,000 fewer cows. However, output per cow gained 75 pounds. Wisconsin was up 5.8 percent, thanks to 5,000 more cows and 95 pounds more per cow. New York was down 0.4 percent, on 13,000 fewer cows but output per cow was up 30 pounds. Idaho was up 1.8 percent, on 4,000 more cows and a 20 pound increase per cow. Pennsylvania was up 1.3 percent. Cow numbers were down 6,000 head but output per cow was up 40 pounds. Minnesota was up 3.8 percent, due to 1,000 more cows and a 60 pound gain per cow.

The biggest increase was in Wisconsin, up 5.8 percent. Washington state was next, up 5 percent,  due to 10,000 more cows and a 15 pound increase per cow. Michigan saw the third biggest production increase in the nation, up, 4 percent, with 1,000 more cows and a 80 pound increase per cow.

The biggest decline was in Missouri, down 7.5 percent, due to 9,000 fewer cows, however output per cow was up 10 pounds from a year ago. Colorado was next, down 6.3 percent with 11,000 fewer cows, however output per cow was up 50 pounds. Kansas had the third biggest drop at 2.7 percent with 5,000 fewer cows, but output per cow was up 25 pounds.

(June 18, 2010) The cheese price roller coaster headed back up mid way through June Dairy Month as the market awaited the May Milk Production report which came out Friday afternoon after our deadline. Cash block closed that morning at $1.4050 per pound, up 3 1/2-cents on the week, 28 3/4-cents above a year ago, and reversed three weeks of decline. The barrels closed at $1.3850, up 5 1/2-cents on the week, and 31 1/2-cents above a year ago. Fourteen loads of block traded hands on the week and 35 of barrel, all of them on Friday. The NASS-surveyed block price average lost a penny, slipping to $1.4581. Barrel averaged $1.4274, down 5.2 cents.

Butter continued its climb, closing Friday at $1.6350, up 2 1/2-cents on the week, and 43 cents above a year ago. Only three cars were sold on the week. NASS butter averaged $1.5766, up 3.4 cents. NASS powder averaged $1.3039, up 0.1 cent, and dry whey averaged 36.83 cents per pound, down 0.3 cent.

July Federal Order Class I Up 38 Cents
(June 18, 2010) The July Federal order Class I base milk price was announced by the USDA Friday morning at $15.66 per hundredweight, up 38 cents from June, and $5.40 above July 2009. That pushed the year’s average to $14.60, up from $11.08 a year ago, but compares to $18.79 in 2008. The advance Class IV pricing factor was again the “higher of’ in driving the Class I value and there will be no MILC payment to producers.  

The two week NASS-surveyed butter price averaged $1.5620 per pound, down 2.6 cents from June. Nonfat dry milk averaged $1.3037, up 5.8 cents. Cheese averaged $1.4726, up 6.1 cents, and dry whey averaged 36.98 cents, up just under a penny.

2-week Product Price Averages:

DOJ & USDA public workshop to examine competition in the dairy industry

(June 18, 2010) The Obama Administration’s look into antitrust and competitive issues focuses its attention on the dairy industry next week. Dairy Profit Weekly editor Dave Natzke reported Friday that representatives of both the USDA and Department of Justice, including U.S. Agriculture Secretary Tom Vilsack, U.S. Attorney General Eric Holder, and Assistant Attorney General for the Justice Department's Antitrust Division Christine Varney, will participate in what's billed as a “public workshop” to examine competition and regulatory issues in the dairy industry.

Wisconsin Gov. Jim Doyle, state ag secretary Rod Nilsestuen, as well as many of Wisconsin’s Democratic congressional representatives will participate, according to Natzke. Organizers have promised time for dairy farmers, processors and academia to provide input during the workshop, which is set for 9 a.m.-6 p.m., June 25, on the University of Wisconsin campus in Madison, Wis.

“The Obama Administration has stepped up investigations related to antitrust issues in the dairy industry,” Natzke reported, “And Wisconsin is in the center of one of those storms.” Last January, the Justice Department filed a suit challenging Dean Foods’ 2009 acquisition of two fluid bottling plants from Foremost Farms, a Wisconsin-based cooperative, alleging the deal hurt competition in the sale of milk to schools and stores in the Upper Midwest. Deans and Dairy Farmers of America, the nation’s largest dairy cooperative, also face an antitrust lawsuit in Vermont.

The dairy session is the third in a series of five workshops planned by the Obama Administration. The Department of Justice and USDA will hold another public workshop, Aug. 27, in Fort Collins, Colo., where the focus will be on the livestock industry. That will be followed by a workshop on financial margins in agriculture, December 8, in Washington, D.C.  Previous workshops covered general agriculture and poultry industries, according to Natzke.

The general public and media interested in attending the Wisconsin workshop should register at www.surveymonkey.com/s/V3FHXPY

Please visit the Antitrust Division's events website: www.justice.gov/atr/events.htm, 
or contact agriculturalworkshops@usdoj.gov for more information.

(June 17, 2010) National Milk CEO Jerry Kozak talked about the Federation’s “Foundation for the Future” plan on Thursday. He called it a “comprehensive look at all aspects of our milk pricing system.” He admitted they have a “massive challenge” to communicate what the plan is about, explain the reasoning behind its features, and welcomed input from producers and others in the agricultural community.

Various other proposals have already been made such as the Specter-Casey bill, Holstein Association plan, Milk Producer’s Council’s plan, and when asked about charges that National Milk being late in coming to the program, Kozak explained that their proposal was a year-long project dealing with a lot of “tough stuff.”

He referred to National Milk’s expertise in dairy policy and the time it took to research the direction to go. He said they evaluated many of the other proposals and included a number of the ideas from other groups in the Federation plan.

“Rather than saying we like or don’t like certain proposals,” Kozak said, “I think it’s far better to focus on the fact that the difference with our proposal is that it is a comprehensive proposal.” He said that it looks at revising farm safety nets, revising the Federal order system, establishes a new margin protection program, and establishes a dairy market stabilization effort.

“If you look at all of the other proposals,” Kozak said, “Most of them are sort of single focused and, with all due respect to proposals that have been put up by the Congress, I think we’re in a better position to try to control our destiny and our membership is in a better position to tell the Congress what we think we should do rather than for the Congress to tell us what we should do.”

(June 15, 2010) Downes-O’Neill dairy broker Dave Kurzawski looks for more upside on the cash cheese market. Speaking in Wednesday’s DairyLine, Kurzawski said the market appears to be in balance in the mid $1.30s per pound “although the buyers put up a pretty good fight last week,” and he expects them to be back this week.

He adds that, when you also consider the butter price ($1.6150), which he doesn’t see dropping any time soon, that gap will likely be narrowed and cheese will soon be above $1.40 again.

He doesn’t expect much market reaction to National Milk’s proposed changes to U.S. dairy policy but quickly added that the market has “substantial premium on Class III futures right now,” but doesn’t see anything in the Federation’s proposal that is bullish or bearish for milk. He called it “progressive,” and one he likes.

Dairy processors have also praised the plan with the exception of its supply management provisions. Kurzawski said that when you compare National Milk’s version of supply management with other proposals, the Federation plan is leaner and more mild and there’s a sunset provision and “appears to be a little bit more palatable than some of the other growth management programs that are being discussed.”

When asked about the CME’s announcement of the June 21 startup of a new cheese futures and options contract, Kurzawski said “it’s going to be a great contract,” praising it as another risk management tool for dairy producers or end users.” He warned that a lot of times a new contract will have problems in it infancy but he doesn’t believe that will be the case for this one but “only time will tell.” For more information, call Dave at 1-800-231-3089.

A grassroots effort is underway for a 4^th of July Milk Dump to get U.S. lawmaker’s attention to the financial plight of dairy farmers, organized by West Winfield, New York dairy producers Dave and Robin Fitch. Robin Fitch told DairyLine “We have been suffering in the dairy industry for over a year and a half now with the lowest of lows” (milk prices).

Fitch said officials told her there was no hope for change until the 2012 Farm Bill but dairy farmers across the country are expressing support for the Milk Dump effort, which is not being organized by any particular farm group. She added that the effort is not just for farmers but for consumers as well who “want safe quality food that is produced in our country.”

Milk dumps in the past have garnered headlines but have not successfully achieved change in police or prices but Fitch argued; “We can all sit at our tables and we can talk and we can complain but until we do something, nothing is going to change so it is up to the farmer to take back their independence and make the stand that we need to do something to make a change.” For more information, call Dave or Robin at 315-822-5093 or email to fitchrnd@yahoo.com.  

Listen to audio 

For more information, call Dave or Robin at 315-822-50093 or email to fitchrnd@yahoo.com.

Market Analysis With Al Levitt

(June 15, 2010) Cash cheese prices started the week of June 14 unchanged, with the blocks holding at $1.35 and barrel at $1.33. Market analyst, Alan Levitt, said in Tuesday’s DairyLine that prices are in a familiar pattern of $1.35 to $1.50. He believes buyers will be back and prices will climb over the next few weeks.

Orders are good, according to Levitt, but he warned of inventories hanging over the market, causing some buyer resistance when prices approach $1.50. That level has been tested three times, he said, and will likely be tested a fourth time.

One factor that may help draw stocks down, according to Levitt, is the shift in trade. April cheese exports totaled 32 million pounds, he said, while imports only totaled 19 million so there were about 13 million more pounds exported than imported and “that’s pretty unusual because historically we import much more than we export.”

School closings will divert more milk into the cheese vat but Levitt pointed out that we’re past the seasonal peak in milk production and component levels are lower so, over the next couple months, supplies are going to shrink and there may be a shortage of current cheese trading on the market in July and August and that could be the factor that pushes prices above $1.50, he said.

Meanwhile; cream and butterfat supplies remain tight and the seasonal pull of cream from ice cream manufacturers has been pretty heavy. “Butter users feel pretty comfortable building and holding inventory because they’re expecting that things will be tighter later in the year,” Levitt said, plus with compon
ent levels being down seasonally and versus a year ago, milk production may be up, but the amount of fat being produced is about the same as it was a year ago.  

(June 14, 2010) Dairy Management Incorporated’s Joe Bavido completed his series Monday on the goals and objectives of the dairy check off, focusing on the partnership with McDonalds. McDonalds is the world’s largest fast food chain and is working to develop and launch new menu items that include dairy as a key ingredient, Bavido reported, and is part of a multi-year partnership with the checkoff.

New menu offerings in the last 18 months include Frappes which are made up of 50 percent milk. Offered in 80 percent of McDonald’s 14,000 outlets, they will be available nationwide later this summer, he said, and will be offered in mocha and Carmel flavors and require an additional 100 million pounds of milk annually.

Real fruit smoothies are another new addition, according to Bavido, and use low fat yogurt in strawberry-banana and wild berry flavors. They will launch nationally in July and will require an additional 23 million pounds of milk annually.

Café Specialty coffees are also new to McDonalds although they have been available nationwide for over a year. They use up to 80 percent milk and will require an additional 300 million pounds of milk annually, he said.

Improved milkshakes are a new formulation that includes real whipped cream in a plastic cup that, Bavido says will require an additional 320 million pounds of milk annually.

Finally, the Angus burgers that were introduced for a limited time in 2009 were so popular that they have become a permanent menu item, Bavido reported. The burgers use two slices of cheese per sandwich and will and require an additional 60 million pounds of milk annually, and to meet the needs of those customers wanting a snack size option, the chain will also introduce Angus “Snackwraps” later this summer and they will include one slice of cheese.

“By using partners, the checkoff is gaining and increasing demand for dairy products,” Bavido concluded.  

The plan would transition existing safety nets into a Dairy Producer Margin Protection Program to guard against periods of severe financial pressures, establish a Dairy Market Stabilization Program to help address periodic imbalances in production and demand and reform the market order program.

Dairy Farmers of America CEO Rick Smith offered a ringing endorsement of the proposal in a June 10 conference call, explaining that, as dairy prices are now determined by global factors, the resulting extreme price volatility never allows dairy farmers to succeed.

He called the current down cycle “unparalleled” in severity and length, causing many farmers to lose a generation of wealth. He charged that “We really need to take the risk of new dairy policy and we can’t wait for the 2012 Farm Bill.”

National Milk’s plan also drew praise from dairy processors. The International Dairy Foods Association (IDFA) commended the margin insurance program but warned that the Dairy Market Stabilization Program would have “dire consequences for our industry and consumers.” IDFA said “Supply management will decrease demand for dairy products and dairy ingredients,” and “will drive low-cost non-dairy substitutions in foods and restaurants across the country.”

(June 11, 2010) The bleeding continued in the cash cheese market although prices reversed gears and regained a penny on Friday. The blocks closed June 11th at $1.37 per pound, down 2 3/4-cents on the week but still 22 cents above a year ago. The block price has lost 13 cents in three weeks. Barrel closed Friday at $1.33, also down 2 3/4-cents on the week, and 23 3/4-cents above a year ago. Thirty one cars of block traded hands on the week and 32 of barrel. The NASS-surveyed U.S. block price average gained 3.6 cents, hitting $1.4680. Barrel averaged $1.4795, up 2.5 cents.

On a brighter note; cash butter gained 3 1/2-cents on the week, closing Friday at $1.61, 38 1/4-cents above a year ago. Nothing was sold all week, the gains all came on unfilled bids. NASS butter averaged $1.5425, up 4.3 cents.

Cash Grade A nonfat dry milk closed Friday at $1.25, unchanged on the week, and Extra Grade closed at $1.25, down a penny. NASS powder averaged $1.3034, up 1.5 cents, and dry whey averaged 37.16 cents, up 0.2 cents.

ClariFly Larvicide Fly Control That's Included In The Feed
(June 11, 2010) In a special broadcast on Friday, DairyLine listeners learned of an innovative way to control a problem prevalent on most dairy operations, flies. Central Life Science regional sales manager, Rick Short, talked about ClariFly larvicide, which is a fly control that’s included in the feed.  

ClariFly can be fed to beef and dairy cattle at all stages, lactating cattle, even veal and baby calves, Short said, and can actually be included in milk replacer.

Dosage depends on cow size and consumption, according to Short. It’s a small amount, he said, so there really no set dosage other than weight and consumption and is fed on the “30/30 rule.” Feed it 30 days before your last frost in the spring, Short said, until 30 days after your first frost in the fall.

“The old timers used to say we need a hard winter to kill all the bugs but that’s not actually an accurate statement, especially as far as flies are concerned, Short warned. “When flies hatch out, they hatch out in the manure before it starts getting very cold and when they hatch out, they will grow very slowly and, when the spring rain and the warm weather arrives, they hatch out as adults.”

ClariFly can go into pelleted or extruded feed as it’s a very stable molecule, he said, and there’s no need to be concerned about residue in the milk or meat. It even has Codex approval (World Health Organization) so “what goes in comes out in the manure.”

ClariFly mainly works on house flies, according to Short, and stable flies, which are the blood suckers. Cattle can lose blood from these flies, he said, and flies have been known to transfer over 60 diseases so, other than the bother that flies are to people and cattle, you also reduce the possible transfer of diseases, he concluded. For more information, log on to www.centralflycontrol.com.

Smith said there is a national dairy farmer consensus advocating change, citing support not only from the cooperative members of NMPF but also from a coalition of dairy groups such as the Milk Producers Council in California, Dairy Farmers Working Together in the Northeast and the Holstein Association USA.

Also during the hour and a half long call, Smith explained that in the second half of 2008, during a period of high dairy prices, DFA had alerted its members to coming price difficulties.  He said no one, however, predicted the extreme depth and continuing duration of the current down market.  He said that while there are some signs of improvement, he couldn’t say that the near term will show any marked improvement.

He described a DFA member survey taken in mid-2009, the depth of the crisis, with 25% of the members responding.  He said it was a tribute to dairy farmer persistence that 90% said they saw the global market as an opportunity but that over 80% also said a change in dairy policy was needed to manage the resulting volatility.

The status quo isn’t working, Smith said.  The existing U.S. safety nets are not working.  The safety net that exist currently only helps those competitive exporters around the world but that does virtually nothing for us here at home.

He said producers do not want to receive direct payments from the government.

He advocated his strong support for the key elements of the NMPF program including reform of the Federal Milk Marketing Orders, disincentives for producers when there is not market for their milk with some form of price stabilization.

Also during the call, Smith reviewed DFA operations, saying the balance sheet is stronger than it’s ever been, the direction is to derived more income from the value added manufactured dairy products, allowing farmers to share in those higher margins.  He explained that during 2009, special payments of over $40 million had been made to members but he said they were only tokens and could not do enough to stem producer losses on the farm.

He described the cooperatives business units designed to help farmers reduce operating costs, including divisions for risk management, lending, on-farm energy, grazing and dairy supplies.

He says DFA remains focused on its core values of member service, integrity and quality while acknowledging that some “legacy issues” remain, a carry-over from past aggressive operating practices.

Based in Kansas City, MO, DFA is the nation’s largest dairy cooperative with 18,000 members producing 20% of the U.S. milk supply.

July California Class 1 Prices Announced
(June 10, 2010) California’s July Class 1 milk price was announced by the California Department of Food and Agriculture this at $17.14 per hundredweight for the North and $17.42 for the South, up $1.46 and $1.47 respectively from June, and $5.26 and $5.27 above July 2009. The Federal order Class I base is announced June 18.

(June 10, 2010) In news from “the Hill;” National Milk expressed concern this week that dairy farmers will need to file a plan to avoid oil spills from their bulk tanks if changes in pending Environmental Protection Agency (EPA) regulations aren’t changed. The way they are written now, the butterfat in milk would be considered an oil and thus the law of unintended consequences is about to kick in this fall.

NMPF’s Jamie Jonker reported in Thursday’s DairyLine that the regulations referred to as the Spill Prevention Control and Countermeasure Rule (SPCC) looks to insure that oils are not spilled from containers and if it does happen, there’s a way to quickly clean up those spills. Animal fats would fall under this definition he said, and that would include milk.

The regulations have nothing to do with the oil gushing out of the ocean floor in the Gulf as they were written long before that occurred but revisions

NMPF worked with the EPA and other interested groups to obtain an exemption for bulk storage of milk products and the EPA was very ameanable to that in January of 2009, he said, but has not finalized that exemption yet.

It’s important for the dairy industry because of the approaching November compliance deadlines so, without that exemption, there’s significant uncertainty how dairy farmers would be affected.

The International Dairy Foods Association last week issued a press release saying that it had learned that the EPA had agreed to the exemption and Jonker said they have heard the same rumors and hopes they are true but there has not yet been an official statement from EPA to that effect.

Dairy producers need to be involved of what’s going on in the beef side
(June 9, 2010) Dairy producers need to be involved and informed of what’s going on in the beef side of the business, according to Ted Greidanus of Tipton, California. Greidanus raises black and white bull calves in the heart of California’s dairy industry and is a current Beef Board member and Operating Committee member.  

Speaking in Wednesday’s “Beef Board Update,” Greidanus said there’s a good percentage of their calves that go directly to beef production along with their market ready cows thus dairy animals make up a good percentage of U.S. beef production and that beef goes throughout the world.

Dairy producers have an investment via the beef check off on their bull calves and cows, according to Greidanus, who called it a “very good investment,” based on statistical information which shows that their one dollar investment returns about five dollars to the farmer.

“The Beef check off does so much,” Greidanus said, and he knows it first-hand because he serves on the Operating Committee which makes recommendations to the Executive Committee on how the check off money is to be spent, being it advertising, research, developing international markets, or food safety.

The budget runs around $40 million, he said, though it is declining because cattle numbers are declining so “We need to work hard with the precious resources that we have but it’s about promoting beef and making sure that, that dollar that gets invested through the check off program returns more dollars back to the producers.”  

(June 8, 2010) Cash block cheese lost another three quarters of a cent Monday, slipping to $1.39 per pound, while the barrels held at $1.3575. Downes-O’Neill dairy economist Bill Brooks said in Tuesday’s DairyLine that the question on everyone’s mind is how low will it go?

“You would anticipate that our level of support would be $1.3650 which we hit on April 20^th, Brooks said.” Cheese has been trading between $1.30 and $1.50 for the most part, he said, and “Whenever we have had pullbacks in our price, we’ve established higher lows on the downturns so that would indicate that maybe we’ll stay above the $1.3650 though we’re not very far away from it.” The low $1.30s would be the next point of support, he said.

Weather is good in the Midwest, according to Brooks, a little warm but not too bad but a lot of that milk is going into cheese and right now we’re not seeing demand keep up with production.

The $1.39 U.S. block price is well below the world price, world price meaning Australia and New Zealand via Dairy Market News price reports. We’ll see new prices this week, he said. Two weeks ago, it was at $1.8144 down slightly from the previous price level.

The problem we run into in exporting cheese, Brooks warned, is getting geared up for it and making the Cheddar the international market wants and that is a white Cheddar that is much whiter than what the world market is used to. That makes it difficult to get into that market, he said, even with the lower price.

Butter, on the other hand, continues to creep higher, up a quarter-cent Monday, to $1.5775. The gains haven’t been outlandish, Brooks said, but good and steady and Monday was the eight consecutive session of gain and only one load has been sold since May 26.

“Those who have butter are holding on to it with confidence,” he said, and a lot of our butterfat is working its way out of the churn and into Class II products like ice cream, frozen desserts, sour creams, and dips and that’s keeping things tight and anticipation of the tight world market for butterfat is spilling over into the U.S. although Brooks is not sure U.S. butter makers will be able to take advantage of it because of the difference in product and the color issue that sometimes pops up but “it’s helping out and is kinda the only area that’s bright point right now for dairy prices.”  

(June 7, 2010) Dairy Management Incorporated’s Joe Bavido continued his series reviewing the objectives and goals of the dairy check off in Monday’s “DMI Update,” and spotlighted the partnership with Domino’s Pizza. He said the check off is working with Domino’s and other leading pizza chains to reenergize the pizza category by focusing on cheese, the core ingredient of pizza, as well as in their menu development via DMI’s consumer marketing efforts.

Check off consumer research communicated the consumer’s “love affair with cheese,” Bavido said, and that influenced Domino’s strategy to increase the amount of cheese offered on their pizza. Domino’s reported an increase in same store sales of over 14 percent between January and March of 2010, according to Bavido. Domino’s attributed the increase to their new pizza recipe which included an increase in the amount of cheese used as well as the type of cheese, having included a hint of Provolone, along with improved sauce and crust.

The chain also doubled the amount of cheese on its cheese-only pizzas and this is in addition to last year’s creation of its American Legends specialty pizza line which includes 40 percent more cheese than Domino’s traditional pizzas. Domino’s increased cheese use resulted in an additional 120 million pounds of milk in 2009, Bavido reported, and that demand will grow even further in 2010.  

(June 4, 2010) CME cash cheese prices continued to weaken in the Memorial Day holiday-shortened week. The blocks closed Friday at $1.3975, 6 3/4-cents below the previous week, but 25 cents above a year ago. Barrel closed at $1.3575, down 7 1/4-cents on the week, and 25 3/4-cents above a year ago. Nineteen cars of block traded hands and 14 of barrel. The lagging NASS-surveyed U.S. average block price gained 3.4 cents, hitting $1.4325. Barrel averaged $1.4544, up 3.9 cents.

Butter strengthened, closing Friday at $1.5750, up 1 3/4-cents on the week and 32 1/4-cents above a year ago. Nothing was sold. NASS butter averaged $1.5858, up 0.2 cent.

Cash Grade A nonfat dry milk closed Friday at $1.25, down a nickel on the week. Extra Grade closed at $1.26, down 3 cents. NASS powder averaged $1.2878, up 1.6 cents, and dry whey averaged 37.01 cents, up 0.6 cent.

May Federal Order Class III Up 46 Cents
(June 4, 2010) The May Federal order Class III benchmark milk price was announced this morning by USDA at $13.38 per hundredweight (cwt.), up 46 cents from April, $3.54 above May 2009, and 98 cents above California’s 4b cheese milk price. That pulled the 2010 Class III average to $13.57, up from $10.23 a year ago, but compares to $17.86 in 2008. 

Thursday’s Class III futures portend a $13.52 Class III price in June, $13.28 in July, $13.87 in August, $14.52 in September, and a peak of $14.70 in November before retreating.

The May Class IV price is $15.29, up $1.56 from April and $5.15 above a year ago.

The four week-NASS-surveyed cheese price averaged $1.4257, up 4.3 cents from April. Butter averaged $1.5801, up 10.3 cents. Nonfat dry milk averaged $1.2520, up 13.1 cents, and dry whey averaged 36.45 cents, virtually unchanged.

(June 4, 2010) A New Zealand dairy products company has made greater inroads into the U.S. dairy industry with the purchase of a Midwest cheese company. Dairy Profit Weekly editor, Dave Natzke, reported in Friday’s broadcast that DairiConcepts, a joint venture between New Zealand dairy company Fonterra and Dairy Farmers of America, the largest dairy cooperative in the United States, has purchased the U.S.-based Italian hard cheese business owned by Rochester Cheese, a wholly-owned affiliate of Swiss Valley Farms and another large U.S. dairy co-op.

The deal includes Rochester's Italian cheese plant in Dalbo, Minnesota. Rochester Cheese will retain ownership of another plant, in Springfield, Minnesota, but transfer all Italian cheese production to the Dalbo plant.

DairiConcepts, formed in 2000 by Fonterra and DFA, manufactures dairy and cheese ingredients for retail, foodservice and industrial customers. The deal would make DairiConcepts the second-leading maker of Italian cheeses in the United States, according to Natzke.

And, with U.S. milk production anticipated to grow and dairy farmer milk price recovery continuing to be slow, dairy policy discussions are heating up during June Dairy Month, according to Natzke. A meeting to gain support for a national dairy supply management proposal was held in California this week, and the second meeting of the Dairy Industry Advisory Committee wrapped up Friday in Washington, D.C., as U.S. Agriculture Secretary Tom Vilsack seeks input on federal dairy policy proposals.

In addition, the House Ag committee has been holding field hearings on the 2012 Farm Bill for about a month, and now Senate Ag committee chair Blanche Lincoln (D-AR) announced that her committee will kick off Senate hearings on the next Farm Bill, beginning June 30.  Also, a joint USDA/Department of Justice hearing on antitrust issues related to the dairy industry, will be held in Madison, Wisconsin, June 25.

(June 3, 2010) Much thought and analysis went into the CWT’s decision to launch its tenth herd retirement program. CWT CEO Jim Tillison said in Thursday’s DairyLine that they consider a number of factors and one of them is dairy cow culling, which has picked up dramatically.

“Cull cow prices are very strong,” he said, “And cow prices on the market are not as strong so we thought that now would be an ideal time to keep things moving in the right direction and to take out as many cows as we could with the limited funds that CWT has available.”

When asked about a bred heifer program not being included this time around, Tillison said its original intent was to “take out future milk production,” but the belief this time was that the most effective use of CWT money would be to take out cows that are currently being milked or soon will be. He also added that the bred heifer program was not “strongly subscribed to” in the past.

When asked about the criticism over the maximum bid only being $3.75 per hundredweight, Tillison responded, “One of the things that we can’t do is pay much more than what cows are selling for in the marketplace.”

He said that CWT always set a maximum bid but it’s just been in the last three removals that a maximum bid was announced. He said the committee considers what top springers are selling for across the country and “if you look at the sales, and I’m not talking about purebreds, I’m talking about top springers, they’re selling for around $1500.00.” They also consider beef prices which are running as high as 80 cents but have been averaging closer to 60 cents per pound.

“When you take those two factors together, $3.75 is a pretty good price, Tillison argued. A producer bidding in the program with a 20,000 pound cow, production wise, is going to get probably close to $1500 per head, depending on the milk production of the cow, he concluded.

Mozzarella cheese output totaled 288.6 million pounds, down 11.7 million pounds or 3.9 percent from March, but 18 million or 6.6 percent above a year ago.

Total Italian type cheese, at 366.5 million pounds, was down 14.1 million pounds or 3.7 percent from March, but 20.5 million or 5.9 percent above a year ago.

Cheddar production totaled 272.7 million pounds, down 9.3 million pounds or 3.3 percent from March, but unchanged from a year ago.

American type cheese amounted to 360.1 million pounds, down 2.2 million pounds or 0.6 percent from March, but up 5.3 million pounds or 1.5 percent from a year ago.

Total cheese output came to 862.8 million pounds, down 28.8 million pounds or 3.2 percent from March, but 15.2 million pounds or 1.8 percent above a year ago. 

Nonfat dry milk output, at 150.1 million pounds, was up 10.7 million  pounds or 7.7 percent from March, but 3 million pounds or 2 percent below a year ago. 

California's May Class 4 Prices Announced

(June 2, 2010) For a number of years, the Energy Star logo has appeared on household appliances that demonstrate a measurable savings in energy usage.  When the Environmental Protection Agency extended the program to include industry, the International Dairy Foods Association’s (IDFA) saw an opportunity for dairy processors to be recognized for their energy savings and commitment to the environment, according to IDFA’s Peggy Armstrong in Wednesday’s DairyLine.

Under the Energy Star Challenge for Industry, manufacturing sites establish an energy intensity baseline, set a 10 percent reduction goal, implement energy efficiency projects, track energy use and verify their savings, Armstrong reported.  Through this program, EPA estimates that Americans could save nearly $10 billion and reduce greenhouse gas emissions equal to about 12 million vehicles.

“Through a partnership with EPA, we established the Energy Star Challenge for dairy,” Armstrong said, “Which is different than the broader Challenge.” IDFA, not EPA, will be the point of contact to sign up, she said, and we will track who succeeds and convey that to EPA. IDFA advocates for increased energy efficiency in U.S. dairy processing facilities. EPA provides expertise, training, energy management guidance and management tools, she said.

Working with members, IDFA has already taken the first step and identified energy-intensity metrics that will be used within the dairy processing industry. 

Facilities that join the dairy program and achieve a 10 percent reduction in energy intensity within 5 years are recognized by the EPA and earn a certificate from EPA's ENERGY STAR program, a profile on the ENERGY STAR web site, letters from EPA to the company's CEO and to the plant's US Senators and Congressional Representatives highlighting their accomplishments, and materials for communicating the site's ENERGY STAR Challenge achievement to employees, stakeholders, customers, and others.

“We're excited about the potential for real, measurable energy efficiencies this program offers,” Armstrong concluded. “Participation is open to all dairy processing facilities.” For more information; log on to www.idfa.org.

(June 1, 20101) The Agriculture Department’s latest “Ag Prices” report shows an improved profit for dairy farms in May. The May index, at 115, is up 2.7 percent from a month ago and 29 percent higher than May last year.

The May all milk price of $15.00 per cwt is up 40 cents from last month and $3.40 from May 2009. The fluid grade milk price increased 40 cents and the manufacturing grade milk price 20 cents from the previous month.

Market Talk with Bob Cropp
(June 1, 2010) University of Wisconsin Emeritus Professor Dr. Robert Cropp said in Tuesday’s DairyLine that the cheese market is responding to USDA’s April Milk Production report which showed output above a year ago for the second month in a row. He added that there’s still a fair amount of cheese in storage, with American stocks the highest since April 1986.  

Cheese recovered the second week in May, he said, but now it has dropped and he sees it hovering in the $1.40-$1.45 per pound range until we work some of this inventory off or see some sign that milk production is going to slow and cow numbers not keep climbing.

Cropp said it’s hard to say if the CWT’s announcement last week of its 10^th herd removal program will have an impact. It depends on how many cows are removed, he said, but he pointed to the low maximum bid of $3.75 as being down a fair amount from the last removal program.

He said he’s not convinced the removal program will get a big response but “If they can move out 30,40, 50,000 cows it may help a little bit.” He stressed that we need to get cow numbers going down but warned that “there’s a lot of replacement heifers out there.”

Butter sales are fair, according to Cropp, there’s interest in the export market, butter stocks are down about 13 percent from a year ago, and the cream supply is tighter “so $1.55-$1.60 butter seems to be reasonable,” he concluded.  

(June 1, 2010) Happy June Dairy Month! Though easily taken for granted, consumers need to be reminded of the valuable contributions dairy products make to their life. I believe that the dairy check off is partly responsible to do that and, with that in mind, Dairy Management Incorporated’s Joe Bavido, began a series in Monday’s “DMI Update,” reviewing the goals and objectives of the dairy check off program.

He began by reminding us that, since the check off was established in 1984, the goal has been to “increase sales and maintain and build a positive perception of dairy and dairy products among consumers.”

Producers have helped advance this goal, Bavido said, through general image building campaigns and short term sales building efforts such as the “Got Milk” and “Ah, the Power of Cheese” campaigns in the past.

These efforts helped the industry, he said, but national and local dairy promotion leaders began a new direction for the check off in 2005 through a strategic business plan that directs check off funds to agreed-upon strategies to grow sales over the short and long term.

The approach works, Bavido said, by identifying partners, goals, and beliefs that are aligned with those of producers to grow sales. One example is the partnership with HP Hood and its Lactaid brand to help bring consumers back to fluid milk. Many have stopped drinking milk, he said, because of real or perceived lactose intolerance.

HP Hood developed two new lactose-free products currently in test markets, according to Bavido, and “by sharing key nutrition and consumer insights with the brand, dairy producers and Lactaid are partnering to educate health professionals about the role of lactose free products as part of a healthy diet.”