June 2008 Archived Dairy News

Latest Dairy News    Archived Cash Prices

Friday, June 27, 2008
Milk Feed Price Ratio Continues to Decrease
Dairy Markets Weekly Review
Global Warming The Topic at IDF Summit
IL: County's dairy farms are fading fast
Ag Secretary Asks Cattle Industry to Voluntarily Ban Downers
WI: It's all about the cows: Holsteins, that is, for Stephanie Nagel...
Dairy Fest offers food, entertainment and education
Fonterra opens new HQ in United States
Fonterra reportedly in joint bid for Australian dairy company
New Zealand: Holstein friesian group turns 60
Dean Foods boosts Q2 EPS outlook; backs full-year EPS view; shares...
UK: Cattle prize glory
UK: Sales prices up 50 per cent for Whitefords’ cattle
Thursday, June 26, 2008
Task Force Looks To Move Beyond Make Allowance System
CWT deadline reminder
Top USDA Officials Discuss Farm Bill Implementation
Dairy Industry Commits to Reducing Greenhouse Gases, Increasing Business...
PA: Feed costs worry Franklin County dairy farmers
S.D.: Veblen Dairy Has Grand Opening
NY: Dairies of Distinction
New video of mistreated cows released
Canada: BC Dairy Foundation takes hard-hitting campaign to the streets
Canada: Tribunal orders milk quota fee refunded
Free trade in food? Not until the milking's done
Wednesday, June 25, 2008
Higher Interest Rates Will Negatively Impact Commodities
NY: State ag leader appoints milk marketing council members
Robotic milkers big draw on Wisconsin dairy tour
MUEL: LOI to Acquire European Distributor for Dairy Farm Milk Coolers
IA: Celebration draws hundreds to Dykstra Dairy
ID: Winners of Dairy Days Cow Wow Art Contest named
PA: Raw Milk At Dairy Farm Contaminated, Test Shows
WA: A guilty plea for selling tainted product reopens debate over...
Unpasteurized milk has backers, detractors
Australia: Dairy farm numbers expected to plummet
Tuesday, June 24, 2008
Market Analysis with Alan Levitt
New case of mad cow disease found in BC; third in three years  Related
Bion Outlines Differences between its Patented Comprehensive...
Dairy Checkoff Update - June 2008
Obey: Ag Appropriations Bill Restores Positive Vision...
ID: Meridian Dairy Days Cow-wow art and mocktail recipe winner announced
MA: Garelick Farms: A local success story
PA: Bacteria found in raw milk from York County dairy
ADRs in Focus: Perdigao declines after downgrade
Illegal milk: the new US food fad
Nestle sells yoghurt and dairy dessert business to Fonterra
Australia: Jason is definitely a cow man
Will new milk law boost Russia’s dairy industry?
Monday, June 23, 2008
DMI Update
Alliance of Western Milk Producers   Letter to EPA
The JUGIT RPC's new concept in milk packaging
Got milk? Spend Much: Don't Blame the Dairy Farmers
MN: Thief River Falls dairy odors drive out families, but attract lawsuit
MO: Cattle farmers need to have water plans
NE: State's Operators to Celebrate Dairy Month With Open House
OH: Got milk? Celebrate National Dairy Month
PA: Lancaster County Dairy Promotion Selects Court
PA: State, dairy disagree on raw milk
Applications for Jersey Youth Scholarships must be postmarked on or before July 1
Global demand, drought, rising prices may change dairy industry...
Record corn prices mean more expensive meat, dairy
Wisconsin Dairy Production Growth Lagging  Related
Protect Calves With The Highest Level of BVD PI Prevention Available
UK: Milking the factory cows dry
British farmers help their African comrades to ‘sindika’
Pakistan Dairy plans to set up 6000 milk cooling tanks
Brazil targets joining world milk production short list in 5 years
Friday, June 20, 2008
USDA Issues Two Long Awaited Decisions This Week
Checking the Cupboard  May Cold Storage
Dairy Market Weekly Review
July Federal order Class I milk prices will take a jump
Slaughter Report
June 'Scary' Month
Farmers at Organic Valley Assert Control to Maintain High Ethics ...
Family says dairy farm operations will continue after E. coli plea ...
State sues pungent dairy farm near Thief River Falls
Cattlemen support waiver of Renewable Fuels Standard mandate
NDSA roundups look at trade, beef checkoff, rancher concerns
Moo-ve over for milk mocktails at Dairy Days
A rarity among dairy princesses
ADRs in Focus: Wimm-Bill-Dann Foods shares slide
Dairy farmer boycotts daylight saving
Thursday, June 19, 2008
Dairy Sustainability Summit Held in Arkansas
June Dairy Outlook report - Ken Bailey
NAIDC elects board members, executive committee
Granby Farm Wins State Award Of Distinction
Farmers could face prison in raw milk case
Owners of dairy plead guilty to selling milk that caused E. coli ...
Teabow Farms opens doors for cow-care tour
Dairy farming was in his blood from the beginning
Cadbury gets a boost with Dairy Milk line
Cadbury sees Q2 sales growth
Wednesday, June 18, 2008
May Milk Production Up 3.4 Percent
CDRF Celebrates 20 years of Service
Dairy Outlook Predicts Small Increase in 2009 Milk Production
Slowing Milk Production & Export Opportunities Generate Mixed Signals
Export Assistance Bid
Protect Calves With The Highest Level of BVD PI Prevention Available
Gold Medal Winner At World Jersey Cheese Awards Added to Tasting Menu, June 25
Southeast Minnesota news and notes
Grow Dairy' Grants Fuel Investment in Pennsylvania Dairy Farms
Cow Celebrates Retirement…Seriously
A dab of dairy will do you good
Tuesday, June 17, 2008
Barrel Cheese Price Plummets
Dairy Connect Training Session Coming to Madison
CA: Nuevo dairyman's invention gets traction on problem of downed cows
ID: Pancake Feed, free concert to kick off Meridian Dairy Days Thursday
NY: Dairy farm expecting huge crowds
PA: Fire Destroys Dairy Barn
Monday, June 16, 2008
DMI Update
Dairy Market Report - Roger Cryan
Western United Dairymen Update
Milk Producers Council Weekly Update
Pfizer Animal Genetics Expands Commitment to Genetic Progress...
American Agri-Women urges Congress to act on ag labor legislation
AR: Dairy Days draws kids from four states
CA: Spike in alfalfa price has horsemen, dairy farmers seeking relief
Insurers: Don't Have to Cover Colorado Organic Dairy in Suit
MO: Visitors milk fun from Dairy Days festival
MT: Kalispell dairy closes
NY Dairy 'Listening' Forum Set for June 23
NY: Contests, demos and more set for Dairy Day
OR: The last of its kind in Baker County
PA: 'Strolling of the Heifers’ Celebrates Dairy Farming
Technology helps drive Wisconsin dairy industry
WI: John Oncken: Janesville family dairy farm adapts to the times
Australia: Dairy farmers warned boom won't last forever
Canada: Hometown Jerseys is Where Her Heart is
Parmalat higher on banks settlements
UK: Farmers tell of fears over future of dairy industry
China Issues Dairy Industry Policy
Friday, June 13, 2008
Dairy Markets Weekly Review 
Concerns Over Crops and Prices in Midwest
CWT Program To Be Renewed in 2009
NMSU provides hazard analysis training to meat, food processing industry members
Md. livestock auctioneer to settle in abuse probe
Does paying more for food ensure better, safer quality?
CA: Double rarity: Family start-up dairy & small 320 cow herd
CA: Delhi artist, 12, inspired to create cow for Fest
Dairy Industry Expansion Paying Off In Nebraska
Nebraska's Growing Dairy Industry Good for Rural Communities, Corn...
Canada: Milk Jump Starts High School Breakfast Program
Canada: Glengarry Dairy Farm Officially Goes Organic
UK: Store cattle
UK: Bonus from Dairy Crest
Fonterra May Increase Investment in US Market, Ferrier Says
Thursday, June 12, 2008
Vote of Confidence in the Future of CWT
DBA: Wisconsin's Dairy Industry Plans for More Growth
5th Annual Symposium on Milk Genomics & Human Health Heads Down Under
Sweet relief? Minnesota dairy says it's reduced its odors
NY: Ag Commish Recognizes June As Dairy
NY: ADifferent Kind Of Dairy
MS: LA-Z Daze Farm
Health officials crack down on unpasteurized milk
Wednesday, June 11, 2008
Disappointing News on the Feed Front Has Dairy Producers Concerned
Cheese Market to Stay Strong Despite Milk Prices
Learn about The Top 10 Dairy Companies
WI: State farms benefit from consumers' 'local foods' push
WI: Low Cost Dairy Parlor Tour is June 19
WI: Historical Society brings back 'cow county' days
IN: Hoosier Ag Today Dairy Trivia Contest
KS: BLHS is just dandy for dairy days
Fun ways to get your 3-a-day from the dairy group
NZ Cattle Treatment May Increase Milk Output, Ag Research Says
Firm extols odds of 'sexed semen'
Protests against US beef stir backlash against South Korea's president
UN helps replace livestock lost in 2006 hostilities
German milk crisis is over
Tuesday, June 10, 2008
California Class 1 Prices Announced
Latest World Ag Supply and Demand Estimates
Market Analysis
Dairy Prices Increase As Production Levels Soar
Agricultural Bankers see role for risk management in volatile times
MN: Stunk out of house and home near a dairy feedlot
WI: Cutting Edge Dairy Technologies to be Featured at FTD
Canada: Dairy farmers were the backbone of the economy
UK: Doorstep delivery dairy opens farm shop
Croatia Kickstarts Privatization of Dairy Company Zdenka
Monday, June 9, 2008
Dairy Checkoff Dollars Branching Out
PA: Cows + curiosity = new family business
Idaho's Bilingual Dairy Publication Helps Improve Cull Cow Beef ...
Got milk? Your school soon will
Milk & Cheese Festivals
Report: Israeli cows produce more milk than cows in other Western ...
Hoosier Ag Today Dairy Trivia Contest
VT: Brattleboro Welcomes Bovines
5th Annual Symposium on Milk Genomics & Human Health Heads "Down...
Milk Producers Council Weekly Update
Western United Dairymen Update
Dairy processors spent $167000 on lobbying
AK: Matanuska Creamery puts Valley milk back on store shelves
MD: Carroll dairy princess to begin reign
ND: Royal Farms hauls area’s milk to plants
PA; Future Dairyman Earns Top Judging Marks
TN: Dairy Days
Venezuela Buys a Dairy To Battle Milk Shortages
UK: The farm vet
Status Quo Looms After German Milk Strike
Friday, June 6, 2008
Dairy Markets Weekly Review
High Feed Prices Also Impacting Farmland Values and Rental Rates
Southwest Border Food Safety & Defense Center prepares state for ag emergencies
MN: Dairy Days this weekend
NY: The 2008 Dairy/Ag Fest honors Springville’s history  Website
MO: Dairy Days launched at Rutledge-Wilson Farm Community Park
Wisconsin Hosts 2008 National Guernsey Convention June 26-30
Global Food Production, Prices Focus of Chicago Conference
ND Dairy Bottles Own Milk
Students Receive in-Depth Dairy Lessons
Japan's Kirin Holdings to make joint bid for Australia's Dairy...
Canada: Tough to attract youth to dairy farming
Saputo's profit jumps
National Foods and Warrnambool Cheese and Butter confirm interest...
National Foods Is to Lead Bid For Dairy Farmers
UK: Dairy cattle trade on fire despite production costs
German Dairy Farmers Call off Milk Strike
Environmental impacts of dairy farming in the Czech Republic
Polish workers step in to plug dairy skills gap – milking cows
High-protein, high-dairy diet prevents bone loss: study
Thursday, June 5, 2008
Mid-Week Milk Production Update
NMPF Announces Fifth CWT Herd Retirement Program 
MN: Dairy farms aren’t gone, but they’ve changed
MT: Efficiency is key to small dairy success
MT: Owners of 3 Flags Dairy focus on cow/calf housing, comfort
MS: Despite looking through her tears, she sees a good life
Have a dairy good time at Harvard Milk Days
Milkman gone, but Dairy Month lives on
US milk futures mixed on Globex, pit ends higher
Farming for dummies 101
Australia: Milk price needs to rise to cover farmer costs
New Zealand: Dairy land prices expected to stabilise
German dairies demand price hike across the board
Wednesday, June 4, 2008
Processors Perspective: Declining Fluid Sales
WI: Milk Prices Heading Back Up During Dairy Month
TN: Experience the life of a dairy cow
German farmers agree to lift milk blockades
Cyprus: All clear for milk and dairy products
Tuesday, June 3, 2008
April Dairy Products Report Released
CWT Herd Retirement Commences    Listen To News Conference
Milk Feed Price Ratio May Not Be As Negative As It Looks
MN: Mueller has big plans for Arlington dairy operation
University of Minnesota sponsors Dairy Systems Field Days in...
MN: Herderings ready to host Breakfast on the Farm June 7
“Ladies of Wisconsin” Offered at National Convention Sale to Benefit Holstein Foundation
Add dairy products to daily diet
New Zealand: Fonterra defends milk price after Greens' subsidy call
Ireland: Shortage of calves threatens dairy herd
Switzerland: Milk strike ends as farmers accept price rise
UK: Award makes dairy say 'cheese'
UK: Lucrative contract ensures dairy is cream of the crop
UK: Farmer uses Tai Chi moves to cheer up cows
Monday, June 2, 2008
California May Class 4 Prices Announced
NMPF’s 1^st Quarter 2008 Import Watch
Happy June Dairy Month!
June Is Dairy Month
Young Breeder Panel to Highlight National Holstein Convention Agenda
Record $108.5 billion Ag Exports Forecast for 2008
Pfizer Animal Genetics to Partner with Charleston|Orwig 
Milk Producers Council Weekly Update
Western United Dairymen Update
Weekly Update -- Alliance of Western Milk Producers
CA: Lords of the ring
CO: Weld Food Bank reaches deal, receives donated cow
CT: Arethusa Farm awards FFA
IL: Owner of proposed dairy working though procedures
MD: Tightens Livestock Auction Inspections
NV: Individuals, businesses encouraged to compete in milk carton regatta
WI: Breakfast nourishes understanding of farm life
Ronnie Green, Ph.D., Joins Pfizer Animal Genetics
UK: Farm of the Week: Healthy cows give best milk results
New Zealand: $1 billion set to change hands
New Zealand: Milk payout a surprise to farmers
Dutch dairy farmers seize processing plants to protest low milk prices
After Germany, Milk Protest Spills Into the Baltics
Food crisis reaches Europe
Canada: New dairy plant to replace one destroyed by fire
Canada: Huizinga continues to graze along despite farming crisis

Dairy Markets Weekly Review
(June 27, 2008) Block cheese closed the last full week of June Dairy Month at $1.92 per pound, down 4 cents, and 2 cents below that week a year ago. Barrel closed Friday at $1.96, up a penny on the week, and 5 cents above a year ago. Thirteen cars of block traded hands on the week and two of barrel. The NASS-surveyed U.S. average block price hit $2.1519, down 6.1 cents. Barrel averaged $1.1765, down a nickel.

Cash butter, which saw twelve consecutive sessions of gain, closed Friday at $1.5450, up 4 1/4-cents on the week and 6 cents above a year ago. Eight cars traded hands on the week. NASS butter averaged $1.4690, up 1.6 cents. NASS nonfat dry milk averaged $1.3610, up 2.9 cents, and dry whey averaged 27.69 cents, down 0.1 cent.

Market analyst, Alan Levitt said in Tuesday’s DairyLine that, over the last year the cheese price had six runs over $2.00 per pound but backed off once demand started to slow. In the five previous run ups, the block price fell to the $1.80s or lower, he said, so he expects that to happen this time as well.

Global Warming The Topic at IDF Summit
(June 27, 2008) Regardless of where your thoughts lie regarding global warming and greenhouse gas emissions, you can run but you can’t hide. It was the topic at the first International Dairy Federation’s Dairy Farming Summit in Edinburgh Scotland this week and Northeast DairyBusiness magazine associate editor, Susan Harlow.

She reported that the dairy industry around the world is thinking about its carbon footprint and water usage and how it can reduce its greenhouse gas emissions. She said that some 230 people from 40 countries were represented at the summit and you could be talking with a Russian journalist one minute and a dairy producer from Egypt the next.

One of the highlights was a series of short films from five different countries, highlighting a dairy operation in that country. The operations filmed were located in China, Egypt, the U.S., Brazil, and the Netherlands and a panel discussion followed each one and the couples featured in the films were there to answer questions from the audience.

Various research reports were given on green house gas emissions, according to Harlow, including one long-awaited report from the International Farm Comparative Network (IFCN). Its conclusion was that intensive dairies, high input, high production had a lower carbon footprint than lower production operations and that generated a lot of discussion.

On a more controversial element, Harlow reported that opinions differ over how much the dairy industry actually does contribute to greenhouse gas emissions.

The IFCN report says dairy operations contribute about 2 percent but a United Nation’s Food and Agriculture Organization report pegs agriculture’s contribution at 18 percent so that generated a lot of discussion as to which one is right and how does carbon sequestration come into that.

“Everybody knows that it’s right and good to reduce greenhouse gas emissions,” Harlow concluded, “But it’s going to cost, so who pays, is the key question here.”

Task Force Looks To Move Beyond Make Allowance System
(June 26, 2008) National Milk Producers Federation (NMPF) asked the USDA to render a decision that balances the needs of both dairy producers and Cooperatives that they own, recognizing that they both have economic needs that need to be taken into account.  

“In the end, this decision is a compromise. It’s a difficult one, and yet it’s the only outcome that’s acceptable economically and politically,” Galen reported.  Because it’s such a divisive issue where one group gets a large piece of the pie, the other group gets the smaller piece; NMPF has formed a task force, hoping to devise a way to move beyond the make-allowance system.  

Galen also reported on the farm bill, which was finally enacted into law. A paper work snafu resulted in the omission of the trade title, which Congress rectified last week. Galen said NMPF’s next step is making sure USDA goes about implementing all the new and expanded programs that will benefit NMPF members.  

Also, a CWT deadline reminder: Any producer interested in bidding in the current herd retirement round of Cooperatives Working Together have to submit their bids by Monday, June 30^th, otherwise they won’t be accepted. More Info: http://www.cwt.coop

Higher Interest Rates Will Negatively Impact Commodities
(June 25, 2008) Look for higher interest rates following the coming Presidential election, according to several speakers at last week’s Dairy Outlook conference held by Downes-O’Neill in Chicago. Dairy broker, Robert Chesler, reported in Wednesday’s broadcast that the move will negatively impact the commodities markets because, as interest rates increase, the dollar will firm and, if the dollar firms, that could hurt or hamper commodity exports.

Dairy producers have had and still do have some attractive milk prices, Chesler said, but “They need to focus on profit margins as opposed to prices, be it on milk or grains, they need to be focused on what margin that would yield them.”

They need to know what their break even costs are, he said, and they need to understand what their profit margins have been over the past three to five years in their operation and what they need to sustain themselves and their desired growth going forward. They need to understand how to look at the futures markets and know when those profit margins are obtainable.

Those profit margins have been obtainable in recent times despite the high prices for inputs, Chesler said, and “Producers should be getting protection on at least a percentage of their input and output to protect that margin.”

“Be careful, be wary, what goes up must come down,” Chesler concluded. He says he’s not bearish but warned, “2009 leaves me with a lot of concern for commodity prices overall and I would look for ways to secure attractive profit margins going forward, as uncertainty levels continue to rise along with volatility.”

Market Analysis with Alan Levitt
(June 24, 2008) Cheese traded started the new week with a 2 cent decline in both block and barrel. Market analyst, Alan Levitt said in Tuesday’s DairyLine that, over the last year we had six runs over $2.00 per pound and the price backed off once demand started to slow. In the five previous run ups, the block price fell into the $1.80s or lower so he expects that to happen this time as well.

When asked about the May Milk Production report, Levitt said many viewed it as bearish and somewhat of a surprise but he wasn’t all that surprised because “We’re comparing with a year ago when production was much weaker so, to get a 3 percent increase wasn’t a huge surprise.”

He expects that again in June but once we hit July, then we’ll be comparing with big increases in the second half of 2007 and predicts we’ll see smaller gains from a year ago in the second half of 2008.

Friday’s Cold Storage report might have a subtle bearish effect on the market, according to Levitt. The increased supply is starting to show up in a little bit of a build-up in cheese stocks over the past four months, the February to May period, Levitt reported. American cheese inventories were up 75 million pounds from a year ago, the most since 2005, according to Levitt. Historically we gain about   55 million pounds in that period so slowly but “surely we’re starting to build a little.”

Butter stocks increased but not as much as usual, Levitt said. Inventories grew just 11.5 million pounds in May, the smallest May increase in eight years.

Levitt also warned that the increased make allowances that USDA announced last week will mean less in dairy farmer milk checks in Federal orders. The Class III price will lose an average of 35 cents, he said, Class IV will be down about 26 cents, and the Class I will lose about the same amount, depending on whether the “higher of” is the Class III or the Class IV price.

DMI Update
(June 23, 2008) National Dairy Board Chairman and Greeley, Colorado dairy producer, Les Hardesty, said in Monday’s “DMI Update” that a lot of exciting things have happened in the dairy check off program in the past year. One of them is the partnerships that have been created with various food companies, whether it’s helping a pizza chain develop a new menu item or a fast food chain, Hardesty said “It all helps sell more dairy products for our farmers.”

He added however that we have to view the world as our market now, especially in terms of milk as an ingredient because you can “take it apart and do things with it that are wonderful.”

He added that the world really wants U.S. dairy products, whether it’s whey protein concentrate or cheese, the world wants the quality the U.S. industry offers and is another opportunity for U.S. producers to sell more of their products.

Nearly 10 percent of 2007 milk production was exported and Hardesty reminded us that 95 percent of the consumers in this world are outside the U.S. They also have more income to spend, he said, plus the U.S. dollar’s weakness has contributed to U.S. export success.

USDA Issues Two Long Awaited Decisions This Week
(June 20, 2008) USDA announced two long-awaited decisions this week. On June 19, USDA issued a tentative final decision to amend Class III and Class IV product price formulas in Federal orders. The decision was based on previous public hearings.

The decision amends manufacturing (make) allowances for cheese, from 16.82 cents, to 20.03 cents per pound. That compares to 19.88 cents in California. Butter went from 12.02 cents to 17.15 cents (15.6 cents in Calif.).  Nonfat dry milk went from 15.7 cents to 16.78 cents (16.98 cents in Calif.), and dry whey from 19.56 cents to 19.91 cents. California has no make allowance for whey.

The decision also proposes to increase the butterfat yield factor of the butterfat price formula from 1.20 to 1.211. Public comments are due August 19, 2008. These amendments are subject to producer approval before being implemented.

USDA issued a final rule amending the Dairy Products Mandatory Reporting Program as well. Companies manufacturing more than 1 million pounds of dairy products annually must report the quantity, price, and moisture content of products sold or stored to the National Agricultural Statistics Service.

Exempt from the rule are organic products, Dairy Export Incentive Program sales and products made under faith-based supervision. The final rule did not exclude mandatory reporting on products labeled or contracted as sourced from cows not supplemented with recombinant bovine somatotropin. Land O’Lakes, the International Dairy Foods Association, and others had requested the exclusion.

Checking the Cupboard
(June 20, 2008) The Agriculture Department’s latest Cold Storage report issued this afternoon shows May butter stocks totaled 263 million pounds, up 5 percent or 11.5 million pounds from April, but were down 3 percent or 7.2 million from May 2007.

The American cheese inventory stood at 569.6 million pounds, up 5 percent  or 26.5 million pounds from April, but 1 percent or 7.1 million below a year ago. Total cheese stocks amounted to 887.5 million pounds, up 4 percent or 31.6 million from April but down 1 percent or 11.4 million below a year ago.

Dairy Market Weekly Review
(June 20, 2008) Checking the CME cash dairy markets; cheese saw its fourth consecutive week of loss. Block closed Friday at $1.96 per pound, down 8 cents on the week and 14 cents below a year ago. Barrel closed Friday at $1.95, down 20 cents on the week and 9 3/4-cents below a year ago. Ten cars of block traded hands on the week and seven of barrel. The lagging NASS-surveyed U.S. average block price hit $2.2129, up a nickel. Barrel averaged $2.2265, up 1.1 cent.

Cash butter gained 2 1/2-cents on the week, closing Friday at $1.5025, 1 1/4-cents above a year ago. Only three cars traded hands on the week. NASS butter averaged $1.4531, down 2.1 cents. NASS nonfat dry milk averaged $1.3305, down 3.1 cents, and dry whey averaged 27.81 cents, up 0.1 cent.

Cash Grade A nonfat dry milk closed Friday at $1.45 per pound, down a half-cent on the week. Four cars traded hands on the week. Extra Grade also closed Friday at $1.45, down a penny on the week.

July Federal order Class I milk prices will take a jump
(June 20, 2008) The Agriculture Department reported the Class I base price Friday at $20.78 per cwt., up $2.60 from June, but 13 cents below July 2007. The Class III advanced pricing factor remained “the higher of” in driving the Class I value.

The NASS-surveyed butter price averaged $1.4607 per pound, up 3.8 cents from June. Nonfat dry milk averaged $1.3479, up 4.7 cents. Cheese averaged $2.2156, up 26.3 cents, and dry whey averaged 27.74 cents, up almost a penny from June.

2-week Product Price Averages:

Slaughter Report
(June 20, 2008) 194,700 culled dairy cows were slaughtered under federal inspection in May, down 24,400 head from April 2008, but 3,400 more than May 2007, according to USDA’s latest Slaughter report.        

June 'Scary' Month
(June 20, 2008) Things aren’t improving on the feed front and June Dairy Month is turning into June “Scary” Month, as Midwest flood damage continues to impact crop conditions, dairy feed prices and the outlook for dairy farmer income margins.

Dairy Profit Weekly editor, Dave Natzke, reported Friday that the Midwest got a break from the rain this week, but flooding continues in major crop-producing states as all that water moves down the Mississippi River. 

USDA’s weekly Crop Progress report indicates the overall condition of the nation’s corn and soybean crops worsened for the second consecutive week, pushing feed prices higher. It could take weeks to get a clear picture of how much crop damage occurred, Natzke warned, but early estimates put the losses at 5-10 percent of the nation’s total corn and soybean crops.

And, as the water began to recede in the Upper Midwest, there was an indication that Chicago Board of Trade futures prices might have finally crested, at least for a day. The June 19 close saw corn futures prices for the period July 2008-September 2009 rose nearly 25 percent, averaging $7.59 per bushel, or about $1.47 a bushel more than May 29.

Soybean futures for the period rose more than 14 percent or about $1.93 per bushel from May 29, and averaged about $15.31 a bushel at the close. Soybean meal futures prices for the period July 2008-September 2009 rose about 21 percent, or about $69 per ton since May 29, and averaged $399.50 per ton. 

“Milk futures prices have trended upward in the past week, amid concerns the high feed price will curtail milk production,” Natzke reported, “But dairy farmer income margins are being squeezed.”  

A new program, through the USDA’s Risk Management Agency, may help, he said. Referred to as Livestock Gross Margin Insurance for Dairy Cattle (LGM Dairy), bundles the price of both milk and feed costs, allowing farmers to purchase insurance to protect the margin between their milk price and feed costs. The program is open to farmers in 30 states and will begin with the 2009 livestock insurance year.  

Dairy Sustainability Summit Held in Arkansas
(June 19, 2008) Some 250 dairy producers, processors, manufacturers, distributors, and retailers gathered in Rogers, Arkansas this week for a Dairy Sustainability summit, sponsored by Dairy Management Incorporated, National Milk, the International Dairy Foods Association, and the University of Arkansas. National Milk’s Chris Galen reported Thursday that sustainability has become “a big buzz word” in consumer products today and dairy is no exception.

“We’re all concerned about looking at ways to increase the sustainability in the dairy industry,” Galen said, “Specifically ways to reduce the carbon footprint, the greenhouse gas emissions that come from the entire dairy distribution chain.”

He reported that the key goal in the summit was to make the fluid milk part of the chain more sustainable, but included ways to reduce greenhouse gas emission from crop production, milk production on farms, the transportation, processing, and packaging of milk and dairy products and ultimately the retailing of dairy.

More pressure has come from consumer marketers to discover ways to reduce the carbon footprint but Galen said “The summit will help discover opportunities to find new processes for doing some things but ultimately, it’s about the bottom line.” He said they want to make sure that anything that results from this will improve energy efficiency and, “hopefully reduce costs.”

Many view the global warming debate with a degree of skepticism but it’s an issue the dairy industry must face but Galen quickly adds, “If we can come up with ways to make dairy production more efficient by reducing energy, even if gas weren’t $4 a gallon and diesel $5 a gallon, it would still be a good idea.” He added that capturing the value of manure is important because that value will increase due to the focus on bio fuels and renewable energy. 

California output was up 2.8 percent from a year ago, thanks to 42,000 more cows and a 10 pound gain per cow. Wisconsin was up 1.8 percent, on a 4,000 cow increase and 25 pounds more per cow. New York was up 4.7 percent, thanks to an 80 pound gain per cow. Cow numbers were unchanged. Idaho was up 9.2 percent, on 44,000 more cows and a 10 pound gain per cow. Pennsylvania was down 0.1 percent. Cow number s were down a thousand and output per cow was unchanged. Minnesota was off 0.4 percent despite having 5,000 more cows than a year ago but output per cow was down 25 pounds.

(June 18, 2008) The California Dairy Research Foundation (CDRF) recently celebrated 20 years of service to the state’s dairy industry, and Foundation Executive Director, Joe O’Donnell, reported in Wednesday’s DairyLine that the CDRF was started in 1988 “with the intention of having professional management of research to carry the industry forward.”

Three specific areas were in view, he said; nutrition and health, processing, and dairy confidence, including food safety and environment.

In the area of nutrition and health, O’Donnell said the Foundation focused on why milk is the way that it is and how the components in milk work together to deliver nutrition and health, and “is nature’s most perfect food.”

Once that’s understood, O’Donnell said you have to process the milk to “have the products people want to eat, tasty products that meet the cultural requirements of the consumer.” A lot of that work was and is done at Cal Poly, O’Donnell said, with most of the nutrition work done at the University of California at Davis.

Dairy confidence includes having “safe, wholesome products,” which O’Donnell said a big issue today, and consumers are concerned about the environment, “so we must make sure that the product is produced in an environmentally-friendly way.” That work is done with at UC Davis and others to “get data for producers to do the job right and meet the needs of their consumers.”

Dairy Outlook Predicts Small Increase in 2009 Milk Production
(June 17, 2008) The Agriculture Department predicts in its latest Livestock, Dairy, & Poultry Outlook, issued this morning that 2009 milk production will hit 190.3 billion pounds, up only about a half a percent from 2008, due to higher feed costs slowing growth in milk per cow. It also sees a slight decline in cow numbers, mainly due to the recently announced CWT herd removal program. 2008 production is predicted to hit 189.3 billion pounds, up about 2 percent from 2007.

Stronger-than-expected export sales resulted in higher export forecasts for 2008, but reductions are anticipated in 2009. Continuing changes in the structure of supply and demand for milk and dairy products in the European Union, reduced product availability from Oceania and other regions, and the lower valued U.S. dollar are still making the U.S. an increasing supplier to global dairy product markets, according to the Outlook, but competitors are expected to recover their international market share in 2009.

Barrel Cheese Price Plummets
(June 17, 2008) The inevitable happened Monday as the barrel cheese price plunged 11 cents, to restore a more typical relationship with the block price. Both are now trading at $2.04 per pound. Block was unchanged, with no activity.

Mary Ledman, Principal of Keogh Ledman and Associates in Libertyville, Illinois, said in Tuesday’s DairyLine broadcast that, with the volume of milk available in the Upper Midwest, that it was more likely that the barrels would drop in price, rather than the blocks recover from the previous week’s declines.

Volatility occurred in May and into June, Ledman said, and she was mystified as to why the block price went from $1.95 to almost $2.30 in May, something she said was “unsustainable,” given the growth in milk supplies in the Upper Midwest and the flush in the Northeast.

She said the dairy industry is in a “healthier position,” being closer to the $2.00 mark than it was at $2.30, because exports backed off due to the higher prices.

When asked as to how much the rain and flooding that has occurred in the Midwest is affecting the cash dairy markets, Ledman replied, “From the standpoint of the market today, it’s not but will it have an impact on 2009, yes.”

Look for cheese prices to trade at $1.85 to $2.35 over the next six to nine months, according to Ledman, depending on cow numbers; adding the caveat that the lower range could fall below $1.85.

The butter market is trading in a narrower range, Ledman reported, and she expects prices somewhere around $1.25 to $1.60.

DMI Update
(June 16, 2008) We’re all familiar with the effect rising oil costs have had on gas at the pump, however, it has also created new marketing opportunities for U.S. dairy producers, according to Nina Bakht, Middle Eastern marketing representative for the U.S. Dairy Export Council (USDEC).

Speaking in Monday’s “DMI Update,” Bakht said the USDEC has monitored the Middle East market for years, conducting seminars and researching target countries to track their levels of dairy usage, wholesale and retail structure, competitors, and other market factors.

“In 2007, a new development opened doors for U.S. dairy exports in the Middle East.” Bakht reported, that higher oil prices have increased incomes among Middle Easterners and created more opportunity for high-quality U.S. dairy ingredients and products.

The Export Council used this opportunity to grow demand for U.S. ingredients in the Middle East, according to Bakht, and “grow the pie of possible outlets for U.S. dairy production, particularly for whey proteins and lactose.”

The Export Council used creative means to grow demand for dairy ingredients in the Middle East and brought a group of seven Middle Eastern bakery and confectionery manufacturers to the United States and provided demonstrations using U.S. dairy ingredients that highlighted the ingredients, functionality, multiple applications, and high-quality.

Programs like this helped increase the value of whey protein exports to the Middle East by 231 percent, she said, up to $13.8 million in 2007.

“USDEC, through the support of U.S. dairy producers’ check off dollars, will continue to drive demand for U.S. dairy products and ingredients not only in the Middle East, but throughout the world,” she concluded.

Dairy Markets Weekly Review
(June 13, 2008) The cash block cheese market continued to weaken the second week of June and closed Friday at $2.04 per pound, down 12 cents on the week, and just 4 cents above a year ago. Barrel closed at $2.15, unchanged on the week, 10 cents above a year ago, and 11 cents above the blocks. Sixteen cars of block traded hands on the week and none of barrel. The NASS-surveyed U.S. block average hit $2.1630, up 9.1 cents, while barrel averaged $2.2152, up 7.8 cents.

Butter closed at $1.4775, down a quarter-cent, and a quarter-cent below a year ago. Four cars sold. NASS butter averaged $1.4741, down 0.2 cent. Nonfat dry milk averaged $1.3613, up 2.3 cents. Dry whey averaged 27.61 cents, up a half-cent.

There were a couple of sales of nonfat dry milk in the cash market this week but prices were unchanged. Grade A held at $1.4650 and Extra Grade at $1.46.

Concerns Over Crops and Prices in Midwest
(June 13, 2008) The planting season is winding down but extremely wet conditions and flooding in the Midwest are raising concerns over crops and prices. Dairy Profit Weekly’s, Dave Natzke, said in Friday’s broadcast that he has covered dairy for a long time but, “When it comes to feed prices, we've probably never seen anything like this.”

He reported that, as of the close of June 11 trading, corn futures for the period July 2008-September 2009 rose about 20 percent in the past two weeks and averaged more than $7.30 per bushel through September 2009. Regular Dairy Profit Weekly spot checks found corn prices above $9.00 a bushel in Lynden, Washington and over $8 in Turlock, California and Okeechobee, Florida.

July 2008-March 2009 soybean futures rose almost 15 percent in the past two weeks and averaged more than $15 per bushel through August 2009. Soybean meal futures rose almost 20 percent and averaged more than $385 a ton through next August. Dairy Profit Weekly spot checks found soybean meal at more than $450 a ton from Lynden, Washington, to North Java, New York.

USDA’s weekly Crop Progress report indicated corn and soybean conditions worsened in the past week, with the lowest percentage of the corn crop rated good to excellent for this date in 12 years. In addition, USDA’s latest World Agricultural Supply and Demand Estimate report (WASDE) lowered 2008 projected yields by five bushels per acre.

Adding to the turmoil in the world soybean market are rising crude oil prices, Natzke said. Reports of sharply higher Chinese soybean imports and a protest by farmers and truckers in Argentina have brought export market soybean deliveries there to a standstill.

Rising oil prices have hurt consumers but they have actually helped U.S. dairy exports, according to the U.S. Dairy Export Council. We'll talk about it on Monday's "DMI Update," on DairyLine and we have our weekly Pfizer "Vet Visit" in our second half.

Vote of Confidence in the Future of CWT
(June 12, 2008) High cheese and milk prices have some questioning the timing of the CWT’s latest herd removal effort and National Milk’s, Chris Galen, addressed that in his weekly Thursday report.

“Anyone who has bought feed lately or fuel, understands that dairy farmer margins are under incredible pressure right now,” Galen charged, “So we do think that this was the right time to proceed.”

He pointed to the historically low milk price feed ratio and at what happened this week in the corn market where prices approached $7.00 per bushel so “there are number of pressures that dairy farmers are facing and that’s why CWT was created, to benefit dairy farmers by helping trim future milk production.”

Galen reminded producers interested in participating in the latest herd removal that they have until the end of June to submit their bid.

The committee this week voted to continue the CWT program into 2009, subject to approval by various member boards and committees, Galen reported, but is a “vote of confidence in the future of the CWT.” He added that task forces overlooking the herd retirement and export assistance programs will, this summer, consider new and different ways to improve them.

Disappointing News on the Feed Front Has Dairy Producers Concerned
(June 11, 2008) Disappointing news on the feed front has dairy producers concerned and weather has not been helping. Cottonseed is no exception, according to Cotton Incorporated’s, Tom Wedegaertner, in Wednesday’s broadcast. Cotton acreage will be reduced this year by 1.4 million acres, he said, and he attributed that to four or five factors that don’t bow well for the cottonseed supply demand picture.

Corn and soybeans are very expensive, he said, as is winter wheat, so a lot of cotton acres were converted to winter wheat, corn or soybeans, accounting for cotton’s 1.4 million acre loss.

Wedegaertner also pointed out that cotton lint is very inexpensive right now. India is growing a lot of cotton, he said, and there’s a world glut of cotton, “So these factors have all lined up to suppress the supply of cottonseed and therefore we can expect some very high prices for the next year, going forward.”

When asked if price will make feeding cottonseed prohibitive, Wedegaertner admitted that, for low producing cows, it is being removed from the ration but is being maintained for the high producers.

Nutritionists have told him that compared to corn at almost $7.00 per bushel, compared to corn and soybeans, cottonseed is not that far out of line and they are maintaining it in the ration even at these $400 per ton prices.

Don’t look to imports of cottonseed, according to Wedegaertner. “It’s actually the reverse that’s causing problems here,” he said. Cottonseed is actually being exported to the Pacific Rim countries as we have in the past, he said, largely due to the weak dollar and Pacific Rim countries think that cottonseed is a bargain. He advises dairy producers to look for buying opportunities at harvest time.

Latest World Ag Supply and Demand Estimates
(June 10, 2008) The Agriculture Department reduced its latest milk production forecast for 2008 and 2009 in its World Agricultural Supply and Demand Estimate report issued this morning, due primarily to high feed prices. 2008 cow numbers were fractionally lower from last month’s estimate, reflecting expected cow removals through the CWT herd reduction program.

2008 milk output is predicted to hit 189.3 billion pounds, down from the 189.8 billion predicted a month ago. 2009 output is projected to hit 190.3 billion pounds, down from 190.4 billion predicted last month.

The 2008 commercial export forecast was raised as sales have been stronger than expected, according to the report. However, with relatively tight supplies forecast in 2009, the 2009 export forecast was unchanged.

Forecasts of domestic disappearance of fat and skim solids were reduced from a month ago. Tighter supplies of dairy products and competition between export and domestic markets are expected to result in relatively strong prices. Dairy product prices were forecast higher in both 2008 and 2009.

Cheese prices are forecast higher in both years, which coupled with higher whey price forecasts, lead to an increase in the forecast Class III price. Look for the 2008 Class III price to average $18.15-$18.55 per hundredweight, up from the $17-$17.50 projected a month ago. The 2009 average is expected to range $17.10-$18.10, up from $16.80-$17.80 projected last month.

The butter price forecast was raised for 2008 as demand remains robust in the fact of relatively large supplies. However, as prices remain relatively strong in 2008, export demand may weaken and the price forecast for 2009 was reduced slightly from last month. Conversely, forecasts for 2009 nonfat dry milk were raised as exports are expected to support higher prices.

Look for the 2008 Class IV price to average $$15.55-$16.05, up slightly from the $15.45-$16.05 prediction a month ago. The 2009 average is now put at $16.55-$17.65, up a nickel from the forecast last month.

Market Analysis

(June 10, 2008) The cash block cheese price lost 8 1/4-cents the first day of trading in the new week and is now trading at $2.0775. Barrel was unchanged, holding at $2.15.

The University of Wisconsin’s, Dr. Brian Gould, said in Tuesday’s DairyLine that he wasn’t sure if blocks would recover some or if barrel would drop in order to restore the typical 3-cent spread but he has crunched some prices, taking the Class III milk pricing formula and plugging in futures prices on butter and whey for the January to December 2008 period.

He reported that, with prices as of June 6, average Cheddar ranges $2.15 per pound for June, up to $2.23 for September and “not much in between so a fairly narrow range.” He adds that, if you compare that with Friday’s Oceania mid- point price of $2.29, “We’re in the ballpark for those international markets,” and he doesn’t see that changing in the near term.

When asked why we’re not seeing more cheese exports, he answered that we are seeing a lot of cheese being exported, relative to history, although he admitted there may be some problems currently with getting enough refrigerated containers but, “compared to historical numbers we’re breaking new ground every month and, just as in butter and dry whey, international markets are becoming much more important for our cheese products.”

Look for this situation to remain for some time, according to Gould, depending on what happens domestically to the supply ala feed costs and milk production.

Dairy Checkoff Dollars Branching Out
(June 9, 2008) Dairy producers have to look elsewhere to see their dairy check off dollars at work, according to Kimberly Clauss Hilmar, California dairy producer and DMI Board member. Speaking in Monday’s “DMI Update,” Clauss said you used to see it in commercials and advertisements but the business plan has changed and now focuses on three main areas; making school kids life-long dairy consumers, developing powerful partnerships such as those with McDonalds, Wendy’s, and Pizza Hut, and creating long term value for producer dollars.