June 2011 Archived Dairy News

Supreme Court to review California law regarding non-ambulatory livestock
Michigan dairyman tackled Johne’s with focus on calves
CME Holiday Trading Schedule
DeLaval AMR™ Commercial Installation Sold in Germany
Dairy going beyond organic
World Forage Analysis Superbowl to Award $22,000 Cash
No Excuses, Cattle Are Always Right
Higher prices helps lift Tulare Co. crop values
Hingham dairy farmer interested in former Griffin’s Dairy Farm
Natl. Ice Cream Month: Celebrating Ice Cream Calif. Style
Dairy company leaving Riverbank for Modesto
June 29, 2011
All Milk Price Hits 43-Month High
Cheese vendors on NY Rules: No Whey!
Bad Axe Dairy Owner Pleads Guilty to Hiring Illegals
Best ice cream comes from MSU Dairy store
June 28, 2011
Livestock Risk Protection Program Available in the Pacific Northwest
Responding to demand, Dryden dairy offers raw milk
Dairy Business Innovation Center faces loss of federal funding
Costa bill would end ethanol subsidies
Big fire near Turlock destroys dairy barn and hay
NAIDC elects leadership
June 27, 2011
California groups support alternative dairy policy proposal
Western United Dairymen weekly update
Milk Producers Council weekly update
Feed costs rattle dairies
Dairy farms still recovering from price collapse
Dairy forecaster shares optimism
Report: Beware non-real estate debt levels
CA State Senate passes bill declaring Sundays 'Buy California Grown Day'
Cheese tourism gives travelers chance to connect with source
Know where your milk comes from 
CCC Purchases
Don’t Miss DairyProfit Seminars at 2011 Empire Farm Days
Land O'Lakes quarterly financial statements on web
June 24, 2011
Cull Cow Slaughter Lower
U.S. Rights to Export Variety of Cheeses to Korea Upheld
California Milk Price Formula Hearing Update
USDA issues U.S. ag GHG emissions report
Guest Commentary: Dairy immigation raid went too far
AABP report addresses veterinarian shortage perception
May Soybean Crush Slightly Larger Than Expected
Letter to Editor - Robin Fitch
Caught in the middle of ethanol fight
Focus on food, says ag official
'Legendary' cow prank impresses some, disappoints others

June 23, 2011
NMPF Backs New Comprehensive Immigration Reform Legislation  
IDFA launches policy coalition newsletter
Ethanol Vote Signals Change on Capitol Hill
Milk product prices to increase at least 5%
Five natural gas-fueled delivery vehicles to Dean Foods
Milk Matters: Producers leverage resources
Simplicity Breeds Success
Footrot can limit dairy reproductive performance
Colorado milks Dairy Month for all it's worth
Ag Leaders Honored at Sonoma County Farm Bureau's "Love of the Land
Pour a tall glass of milk during June Dairy Month

All Milk Price Hits 43-Month High
(June 29, 2011) The All Milk Price was estimated at $21.00 per hundredweight, up $1.40 from last month's estimate, and $5.60 above a year ago. According to the CME's Daily Dairy Report, the All-Milk price is the highest since December 2007.

The June Milk-Feed Price Ratio is 1.83, up from May's 1.73 estimate, and compares to 2.26 in June 2010. 

Corn averaged $6.58 per bushel, up 28 cents from May, and $3.17 above a year ago. The soybean price, at $13.30 per bushel, was up 10 cents from May, and $3.85 above a year ago. Alfalfa baled hay at $180.00 per ton, was down $6.00 from May, but $61.00 above a year ago.

Cull Cow Slaughter Lower

May Cold Storage Report
(June 22, 2011) ) May butter stocks totaled 170.4 million pounds, up 28.7 million pounds or 20 percent from April but 42.1 million pounds or 20 percent below May 2010, according to preliminary data in the Agriculture Department’s latest Cold Storage report issued Wednesday afternoon.   

The May American cheese inventory, at 620.5 million pounds, was unchanged percent from April, but 5.6 million pounds or 1 percent above a year ago. 

Total cheese stocks amounted to over 1.049 billion pounds, and was up 10 million pounds or 1 percent from April, and 22 million pounds or 2 percent above a year ago.

May Milk Production Up 1.5 Percent
(June 17, 2011) May milk production in the top 23 states totaled 16 billion pounds, up 1.5 percent from May 2010, according to preliminary data in the USDA’s latest Milk Production report issued this afternoon. Output in the 50 states amounted to 17.3 billion pounds, up 1.3 percent.

May cow numbers in the 23 states totaled 8.45 million head, 103,000 head more than May 2010, and 15,000 head more than April 2011.

California milk output was up 3.7 percent from a year ago, thanks to a 55 pound gain per cow. Cow numbers were up 17,000 head. Wisconsin was down 1.8 percent on 5,000 more cows. Output per cow was down 40 pounds. New York was down 1.4 percent with output per cow down 25 pounds. Cow numbers were unchanged. Idaho was up 5.4 percent, thanks to 18,000 more cows. Output per cow was up 40 pounds. Pennsylvania was down 0.8 percent due to a loss of 20 pounds per cow. Cow numbers were up 2,000 head however. Minnesota was down 2.7 percent on a 50 pound per cow loss. Cow numbers were up a thousand head.

The biggest gain was in Texas, up a 8.8 percent, followed by Colorado, up 6.7 percent, and Arizona, up 6.4 percent. Ohio recorded the biggest loss, down 5.9 percent, followed by Illinois, down 4 percent, and Missouri down 3 percent
 

State by State	Milk Cows  Change from  May 2010	Output Per Cow  Change from May 2010	Milk Production Change from May  2010
Arizona	+13,000	-20 lbs.	+6.4%
California	+17,000	+55 lbs.	+3.7%
Colorado	+9,000	-20 lbs.	+6.7%
Florida	+3,000	+20 lbs	+3.6%
Idaho	+18,000	+40 lbs.	+5.4%
Illinois	-3,000	-20 lbs.	-4.0%
Indiana	+1,000	-10 lbs.
Iowa	-4,000	+40  lbs.	+0.3%
Kansas	+5,000	+10 lbs.	+4.6%
Michigan	+5,000	-25 lbs.	+0.3%
Minnesota	+1,000	-50 lbs.	-2.7%
Missouri	-5,000	+20 lbs.	-3.0%
New Mexico	+3,000	+20 lbs.	+1.9%
New York	Unchanged	-25 lbs.	-1.4%
Ohio	-3,000	-85 lbs.	-5.9%
Oregon	+4,000	+10 lbs.	+4.4%
Pennsylvania	+2,000	-20 lbs.	-0.8%
Texas	+20,000	+70 lbs.	+8.8%
Utah	+2,000	-40 lbs.
Vermont	-2,000	+30 lbs.
Virginia	+1,000	-35 lbs.	-1.3%
Washington	+11,000	+20 lbs.	+5.3%
Wisconsin	+5,000	-40 lbs.	-1.8%
23 State Total	+103,000	+6 lbs.	+1.5%

July Federal Order Class I Base Up 71 Cents

(June 17, 2011) The July Federal order Class I base milk price is $21.03, up 71 cents from June, $5.37 above a year ago, the highest since November 2007, and equates to about $1.81 per gallon. Its 2011 average now stands at $18.55, up from $14.60 a year ago, and compares to $11.08 in 2009.

The Class IV advanced pricing factor remained the “higher of” in driving the Class I value and National Milk’s Roger Cryan does not project an MILC payment to producers. Feed prices would have to go up quite a bit for the target to reach the announced price, according to Cryan, and would take something like $10 corn and $16 soybeans.

The NASS-surveyed butter price averaged $2.1343 per pound, up 8.8 cents from the previous month. Nonfat dry milk averaged $1.6462, up 4 cents. Cheese averaged $1.7934, up 15.2 cents, and dry whey averaged 52.01 cents, up 2.9 cents.  

2-week Product Price Averages:

California July Class 1 Prices Highest in Three Years

Dairy product trade
The value of April 2011 U.S. dairy exports, estimated at $403 million, was down 4% from March 2011, but 40% more than April 2010. At $242 million, April 2011 imports were down 13% from March 2011, but 20% more than April 2010. 

Through the first seven months (October 2010-April 2011) of fiscal year (FY) 2011, exports were estimated at $2.517 billion, up 46% from the same period in FY ’10. Year-to-date FY ’11 imports were estimated at $1.697 billion, up about 13% from the same period in FY ’10. The Y-T-D FY ’11 dairy trade surplus stands at $820 million.

March 2011 cheese imports were estimated at $89 million,  down 7% from March 2011. Y-T-D FY ’11 cheese imports were estimated at $650 million, up about 12% from the same period in FY ’10.  

Dairy solids trade balance In the first four months of the year, U.S. dairy exports were equivalent to 13.0% of U.S. milk solids production, slightly above the total for 2010. Meanwhile, imports as a percent of milk solids production were 2.8% in the January-April period, near historic lows. 
Source: U.S. Dairy Export Council, National Milk Producers Federation  

Dairy cattle exports  April 2011 U.S. female dairy cattle exports couldn't keep pace with March, but still turned in a strong month, according to USDA’s Foreign Ag Service. April exports totaled 5,008 head, down from 9,604 head in March. Through the first four months of 2011, the female dairy cattle export total stands at 22,774 head, more than double the 11,114 head exported during the same period in 2010.

Turkey was again the leading destination for U.S. female dairy cattle in April, at 2,112 head (42% of the total), followed by Mexico (2,035 head). Year-to-date exports to Turkey stand at 15,559 head, with 5,247 head shipped to Mexico. Russia, with 750 head in April, is third, at 1,398 head for January-April 2011. 

Will Milk Prices Be High Enough To Cover Feed Costs? 

(June 3, 2011) The Agriculture Department announced the May Federal order Class III benchmark price this morning at $16.52 per hundredweight (cwt.), down 35 cents from April, but still $3.14 above May 2010. That pulled the 2011 average to $16.64.

The May Class IV price is $20.29, up 51 cents from April, $5.00 above a year ago, and $3.77 above the Class III price.  

US dairy exports have more than doubled in the past decade due to a rapidly increasing demand for dairy products around the globe.  As a result, our domestic prices have been closely aligned with world market prices since 2004.  Before then, our dairy exports were relatively small and even those exports were often only due to government export subsidies.  

IDFA and the National Milk Producers Association seem to agree that we need to take advantage of this huge opportunity for export growth.  National Milk even states that one of its guiding principles is that they will not promote policies that will discourage exports.   So, reasonable people might ask, what’s the problem?

The answer is that National Milk’s proposal, called the Dairy Market Stabilization Program, will do exactly what National Milk says it won’t do.  The stabilization program will decrease exports.

A study by the Food and Agricultural Policy Research Center, or FAPRI, that can be found on National Milk’s website, directly predicts that U.S. dairy exports would have dropped significantly if the dairy market stabilization program had triggered limits to farm milk production during the dates reviewed. The study found that during three months - March, April and May of 2009 - U.S. exports of nonfat dry milk would have fallen by 38 percent, butter exports by 16.4 percent and American cheese exports by 8 percent.  

The FAPRI study likely underestimates the negative impact on exports.  A study by Informa Economics of the FAPRI impacts on dairy prices indicates that overall U.S. dairy exports would have dropped by 14% if the Dairy Market Stabilization Program had been in place in 2009.  Using USDA data relating exports and U.S. jobs, a 14 percent decline would have resulted in losses of more than 300 million dollars in dairy exports and a loss of over 2,500 jobs.

Finally, an interesting finding in the FAPRI study appendix table shows that U.S. dairy market prices would be more volatile; when the market stabilization program triggers on prices increase, but when the program triggers off, FAPRI predicts that some dairy prices fall lower than they actually were. So, the so-called stabilization program in reality will increase volatility as the production limits go on and off.

It is difficult enough for the dairy industry to make plans to innovate and grow exports without the Dairy Market Stabilization Program.  If implemented, this program would create a disincentive for the industry to develop new products and seek new markets due to the uncertainty of the future farm milk supply due to this policy.

Existing data shows that dairy programs that attempt to limit price volatility by controlling milk production – whether called quotas or stabilization or growth management – clearly have a negative impact on U.S. dairy exports.

Visit www.idfa.com and read the whole report – complete with data and graphs from the FAPRI study frequently cited by NMPF. 

California's May Class 4 Prices Announced
(June 1, 2011) California's May 2011 Class 4a milk price was announced at $19.94/cwt., up 49 cents from April 2011, and $5.99 more than May 2010. 

The April 4b price is $14.74/cwt, up 40 cents from April 2011, and $2.34 more than April 2010.

(May 31, 2011) The May Milk-Feed Price Ratio is 1.74, down from April's 1.83 estimate, and compares to 2.17 in May 2010. 
 
The All Milk Price was estimated at $19.40 per hundredweight, down 20 cents from last month's estimate, but $4.40 above a year ago. 

Corn averaged $6.15 per bushel, down 20 cents from April, but $2.67 above a year ago. The soybean price, at $13.00 per bushel, was down 10 cents from April, but $3.59 above a year ago. Alfalfa baled hay at $186.00 per ton, was up $31.00 from April, and $65.00 above a year ago.