Archive for the ‘Todays Dairy News’ Category

Banning Chocolate Milk Backfires

April 22, 2014 — To some, banning chocolate milk from elementary schools seemed like a good idea, but new Cornell University research shows that removing chocolate milk from chocolatemilkschool menus has negative consequences.

“When schools ban chocolate milk, we found it usually backfires. On average, milk sales drop by 10 percent, 29 percent of white milk gets thrown out, and participation in the school lunch program may also decrease,” reports Andrew Hanks, lead author and research associate Cornell’s Dyson School of Applied Economics and Management. “This is probably not what parents wanted to see.”

The Cornell study, which included professors David Just and Brian Wansink was published today in PLOS ONE; it examined what happened when chocolate milk was banned in a sample of Oregon elementary school. It shows what happens when chocolate milk-loving kids are suddenly confronted with something paler – and proposes what researchers hope can be a healthful compromise.

“Members of the school district’s PTA were adamantly opposed to offering chocolate milk in the cafeterias, claiming it was as bad as soda,” said Hanks. “While this policy does eliminate the added sugar in chocolate milk, it also introduces a new set of nutritional and economic consequences. Children typically don’t choose foods for health, but rather for taste.”

Nutritionally, after the milk substitution, students consumed less sugar and fewer calories; however, they also consumed less protein and calcium.

Here’s what the behavioral economics experts propose: “Instead of banning chocolate milk, make white milk appear more convenient and more ‘normal,’” said Wansink co-author and Director of the Cornell Food and Brand Lab. “Put the white milk in the front of the cooler, and make sure that at least one-third to half of all the milk is white. We’ve found that this approach can increase sales by 20 percent or more.”

This article was written and prepared by Melissa Osgood,Cornell University media relations

Research paper, graphic and video are available at:

March Milk Production up 1.1 Percent

April 21, 2014 — Milk production in the 23 major States during March totaled 16.7 billion pounds, up 1.1 percent from March 2013. February revised production at 14.9 billion pounds, was up 1.3 percent from February 2013. The February revision represented a decrease of 18 million pounds or 0.1 percent from last month’s
preliminary production estimate.

Production per cow in the 23 major States averaged 1,959 pounds for March.

The number of milk cows on farms in the 23 major States for March was 8.51 million head, 1,000 head more than February 2014.

January – March Milk Production up 1.0 Percent

Milk production in the United States during the January – March quarter totaled 51.1 billion pounds, up 1.0 percent from the January – March quarter last year.

The average number of milk cows in the United States during the quarter was 9.22 million head.

Milk Production % – 23 Selected States: March 2013 and 2014

Arizona           1.2
California       3.7
Colorado        6.5
Florida            3.1
Idaho               1.7
Illinois           -1.8
Indiana           0.6
Iowa               -3.4
Kansas            1.2
Michigan        0.3
Minnesota    -3.8
New Mexico  -0.1
New York
Ohio               -4.8
Oregon            4.2
Pennsylvania  0.3
South Dakota  1.8
Texas                6.4
Utah                 3.5
Vermont          0.4
Virginia            2.6
Washington    3.5
Wisconsin     -1.6

23-State Total  1.1

Sustainability: Dairy Industry Leads The Way

April 21, 2014–

April 22 is Earth Day, a celebration of our planet and a chance to learn more about how the dairy industry leads the way when it comes to sustainability.

Christian Poggensee, DeLaval North American President on DairyLine

Christian Poggensee, DeLaval North American President with DairyLine’s Bill Baker at World Dairy Expo in Madison, WI.

DeLaval is a company with 4,500 employees in 100 markets  and has transformed the buzz word ‘sustainability’ into a business strategy. The company’s vision recognizes a shared corporate social responsibility.

“Sustainable food production supports the need to feed a growing world population in a way that makes the industry, people and the earth economically, environmentally and socially better – now and for future generations,” said Christian Poggensee, DeLaval Regional President, North America.

For the second year in a row, DeLaval helped sponsor the U.S. Dairy Sustainability Award. The awards are organized each year by the Sustainability Council at the Innovation Center for U.S. Dairy, which was established under the leadership of dairy farmers. DeLaval has been a member of the Council since 2010. Poggensee said the awards mirror the vision of DeLaval – to make sustainable food production possible.

“These awards are a platform for sharing ideas and engaging in discussions that seek productive, responsible solutions to meet the demand for nutritious dairy products,” he said. “DeLaval is proud to be a part of these conversations as the term ‘sustainable dairy farming’ evolves from buzzword to business strategy.”

He reported DeLaval is committed to supporting dairy farmers around the world to do more with less. This translates to reducing the environmental footprint of farms, while improving food production, farm profitability, and the well-being of the people and animals involved.

“At DeLaval, this challenge generates opportunities for smarter technologies and services designed to increase resource efficiencies,” he said. “DeLaval believes we can make a difference to the overall sustainability of dairy farms in six key areas: feed, animal health, manure, energy, water and working conditions.”

Market Recap – Cheese Rally During Short Week

April 18, 2014 — Last Friday’s small cheese price rally turned into a sustained recovery this week and reversed 3 weeks of declines. The cash blocks tacked on another 5.75¢ this morning on 4 sales, ending the Good Friday holiday-shortened week at $2.28/lb. The 1st 3 sales were at $2.2325/lb., with the 4th sale at $2.28/lb. An unfilled bid again rolled the barrels higher, this time 7¢, following yesterday’s 2¢ rise, and closed today and the week at $2.2575/lb., 2.25¢ below the blocks.

The blocks are up 11¢ on the week, 40¢ above a year ago, but 15.25¢ below their record March 24 peak. The barrels are up 17.75¢ on the week, 48.75¢ above a year ago, but 12¢ shy of their record high.

Four cars of block traded hands this week and none of barrel, the barrel price gains all came on unfilled bids so someone must be breaking out the barbecue grill and needs some cheese. The still climbing NDPSR-surveyed block price hit $2.4149/lb., up 1.6¢, while the barrels averaged $2.3440/lb., down 1.5¢.

FC Stone market analyst Ryan Cox wrote in this morning’s Insider Opening Bell that “International prices have weakened, but demand is decent. Retailers were reluctant to bump up prices.”

Cash butter was unchanged, after 3 days of loss, and closed at $1.89/lb. An offer at $1.90/lb. was again left on the board.   Cash butter resumed its decline this week, after holding all last week at $1.97/lb. It is down 8¢ this week but still 10.25¢ above a year ago. Seven carloads traded hands this week. NDPSR butter averaged $1.9839/lb., up 2.5¢.

Cash nonfat dry milk dropped 2.5¢ this morning on an offer, and closed the day and the week at $1.8650/lb., down4.25¢ on the week. Twelve carloads found new homes this week in the spot market.

Cox says “The nonfat market has been weak and buyers have been stepping aside, expecting prices to weaken further based on international markets.”

Dairy Margins Deteriorating

Dairy margins deteriorated since the end of March due to both weaker milk prices and higher feed costs, according to the latest Margin Watch from Chicago-based Commodity & Ingredient Hedging LLC.

Margins remain strong in nearby Q2 at the 96th percentile of the previous 10 years, while deferred margins are at or near the 90th percentile through the first quarter of 2015. While still very high from a historical perspective, milk prices have started to slip recently following weakness in dairy product values.

Both block and barrel cheese prices have generally been in retreat since late March while cash butter prices on the CME have similarly experienced weakness after flirting with $2.00/lb. recently.

The latest results of the Global Dairy Trade auction reflected the fifth consecutive drop in price, with all products declining except anhydrous milk fat.

Corn prices meanwhile have firmed recently in response to tighter stocks reflected in the April WASDE report along with slow planting progress. USDA reported corn ending stocks down 125 million bushels from March due to a similar increase in the export forecast, with the figure falling on the low end of trade expectations.    USDA also released the first crop progress report of the season, with corn plantings at 3% complete through April 13 vs. 6% on average for this point.

Soybean meal prices are also drawing support from USDA reporting soybean ending stocks down 10 million bushels from March, suggesting a continued tight supply of soybean meal through the remainder of the season.    For more details, log on to

Don’t Let Your Taste Buds Fool You

April 17, 2014 — “It’s not real dairy if it’s made from a bean, a seed, a nut, or a weed,” says DairyUS, the animated Real Seal character, in his latest video.

The video is a reminder to consumers that only real dairy products have the same nutrition they have come to know and love and imitation products don’t necessarily have the same nutritional benefits and shouldn’t be able to call themselves milk, cheese or yogurt.

That’s one of the reasons the National Milk Producers Federation (NMPF) took over the Real Seal program last year, according to Chris Galen. NMPF is using the website to remind consumers that not all products made from imitation sources have the same nutritional content.
Milk includes vitamins A and D, calcium, potassium and a bevy of other nutrients including protein.

“A lot of these imitators are very skimpy on the protein content in particular,” Galen said.

The Real Seal program continues to grow. This year NMPF is setting up a Pinterest page for people to share cooking recipes and health and wellness information.

“That cries out a presence for the dairy’s Real Seal,” Galen reported. “To remind people that when they do go shopping, eat out or share recipes – dairy ingredients should be real ones and display the Real Seal.”

NMPF remains disappointed that the Food & Drug Administration hasn’t done anything to go after imitators who misuse terms like milk, cheese and yogurt.

“That’s why we need to have a proactive campaign, using something like the Real Seal as a designation that reminds people that only products displaying that seal are made from real dairy products,” he concluded.

For more info go to



USDA Helps Expand Export Markets

April 16, 2014 –  Agriculture Secretary Tom Vilsack announced today that the U.S. Department of Agriculture’s (USDA) Foreign Agricultural Service (FAS) awarded funding to more than 60 U.S. agricultural organizations to help expand commercial export markets for American products. The funding was made available through the 2014 Farm Bill. USDA will begin accepting applications for 2015 export development program funding on April 17, 2014.

“Now that Congress has passed the Farm Bill, USDA is moving quickly to implement our trade promotion programs to help open and expand opportunities for farmers, ranchers, and small businesses and build on the past five years of record agricultural exports,” said Vilsack. “These programs are an important investment in rural America. Every dollar we invest in trade promotion provides $35 in economic benefits.”

Through the Market Access Program (MAP), FAS partners with U.S. agricultural trade associations, cooperatives, state regional trade groups and small businesses to share the costs of overseas marketing and promotional activities that help build commercial export markets for U.S. agricultural products and commodities. The program, which focuses on consumer promotion, including brand promotion for small companies and cooperatives, is used extensively by organizations promoting fruits, vegetables, nuts, processed products, and bulk and intermediate commodities. Through MAP, FAS will provide $171.8 million to 62 nonprofit organizations and cooperatives. Participants contribute an average 171-percent match for generic marketing and promotion activities and a dollar-for-dollar match for promotion of branded products by small businesses and cooperatives.

The Foreign Market Development (FMD) Program focuses on trade servicing and trade capacity building by helping to create, expand and maintain long-term export markets for U.S. agricultural products. Under FMD, FAS will allocate $24.6 million to 22 trade organizations that represent U.S. agricultural producers. FAS partners with U.S. agricultural producers and processors, who are represented by non-profit commodity or trade associations called cooperators. The organizations, which on average contribute nearly triple the amount they receive in federal resources, will conduct activities that help maintain or increase the demand for U.S. agricultural commodities overseas.

Applications for 2015 export development program funding will be accepted beginning April 17, 2014. In addition to MAP and FMD programs, eligible organizations can apply for funding through the Technical Assistance for Specialty Crops (TASC) Program, Quality Samples Program (QSP) and Emerging Markets Program (EMP). The TASC program funds projects that address sanitary and phytosanitary barriers that prohibit or threaten the export of U.S. specialty crops. The 2014 Farm Bill amended the program to allow participants to address technical barriers to trade regardless of whether they are related to a sanitary or phytosanitary barrier. QSP helps agricultural trade organizations provide product samples to potential importers. EMP provides funding for technical assistance activities to promote exports to emerging markets. The programs were authorized as part of the 2014 Farm Bill.

Applicants are encouraged to apply via the Unified Export Strategy online application system. Information is available at Applications can also be emailed to or hand-delivered to: USDA Foreign Agricultural Service, Office of Trade Programs, 1400 Independence Avenue, SW, Room 6512-S, Washington, D.C. 20250. New applicants are encouraged to email to request more information. Applicants must have a Dun & Bradstreet (DUNS) number for federal assistance, which can be obtained online at or by phone, (866) 705-5711.

USDA’s international market development programs have had a significant and positive impact on U.S. agricultural exports. An independent study released in 2010 found that trade promotion programs like MAP and FMD provide $35 in economic benefits for every dollar spent by government and industry on market development.

The past five years represent the strongest period for U.S. agricultural exports in the history of the United States. Farm exports in fiscal year 2013 reached a record $140.9 billion and supported 1 million jobs in the United States.

The following chart summarizes this year’s Market Access Program allocations:

Market Access Program – 2014 Allocations
Participant FY 2014 Allocation
American Hardwood Export Council, APA – The Engineered Wood Association, Softwood Export Council, and Southern Forest Products Association $8,996,182
Alaska Seafood Marketing Institute $3,560,749
American Peanut Council $2,235,570
American Pistachio Growers/Cal-Pure Pistachios, Inc. $1,380,409
American Seed Trade Association $229,118
American Sheep Industry Association $421,340
American Soybean Association $4,523,434
American Sweet Potato Marketing Institute $200,000
Blue Diamond Growers/Almond Board of California $4,729,064
Brewers Association, Inc. $600,895
California Agricultural Export Council $1,228,525
California Cherry Marketing and Research Board $519,189
California Cling Peach Growers Advisory Board $444,892
California Grape and Tree Fruit League $428,800
California Pear Advisory Board $442,081
California Prune Board $2,668,406
California Table Grape Commission $3,093,070
California Walnut Commission $3,902,619
Cherry Marketing Institute $204,115
Cotton Council International $15,423,937
Cranberry Marketing Committee $1,561,170
Distilled Spirits Council $401,630
Florida Department of Citrus $3,885,364
Food Export Association of the Midwest USA $9,637,643
Food Export USA Northeast $8,138,985
Ginseng Board of Wisconsin $167,539
Hop Growers of America $310,320
Intertribal Agriculture Council $642,528
Mohair Council of America $45,759
National Association of State Departments of Agriculture $3,533,072
National Confectioners Association $965,826
National Pecan Growers Council $487,035
National Potato Promotion Board $3,647,427
National Renderers Association $871,872
National Sunflower Association $1,119,044
National Watermelon Promotion Board $290,367
New York Wine and Grape Foundation $484,886
Northwest Wine Promotion Coalition $988,092
Organic Trade Association $746,912
Pear Bureau Northwest $2,926,873
Pet Food Institute $1,361,288
Raisin Administrative Committee $827,922
Southern United States Trade Association $5,874,329
Sunkist Growers, Inc. $2,372,577
Synergistic Hawaii Agriculture Council $388,412
The Popcorn Board $369,806
U.S. Apple Export Council $712,727
U.S. Dairy Export Council $4,084,503
U.S. Dry Bean Council $1,147,741
U.S. Grains Council $6,731,882
U.S. Hide, Skin and Leather Association $49,548
U.S. Livestock Genetics Export, Inc. $1,538,250
U.S. Meat Export Federation $14,073,511
U.S. Wheat Associates $5,973,322
USA Dry Pea and Lentil Council $850,359
USA Poultry and Egg Export Council $4,952,183
USA Rice Federation/U.S. Rice Producers Association $2,735,162
Washington Apple Commission $4,930,752
Washington State Fruit Commission $1,561,810
Welch Foods, Inc. $834,411
Western U.S. Agricultural Trade Association $8,097,508
Wine Institute $6,322,046
Total $171,874,788

The following chart summarizes this year’s Foreign Market Development Program allocations:

Foreign Market Development Program – 2014 Allocations
Cooperator FY 2014 Allocation
Almond Board of California $125,045
American Hardwood Export Council, APA – The Engineered Wood Association, Softwood Export Council, and Southern Forest Products Association $2,655,416
American Peanut Council $533,746
American Seed Trade Association $185,722
American Sheep Industry Association $123,798
American Soybean Association $5,198,548
Cotton Council International $3,199,712
Cranberry Marketing Committee $153,754
Leather Industries of America $210,730
National Renderers Association $682,463
National Sunflower Association $212,505
North American Millers Association $54,594
U.S. Dairy Export Council $442,188
U.S. Dry Bean Council $100,313
U.S. Grains Council $2,439,510
U.S. Hide, Skin and Leather Association $91,952
U.S. Livestock Genetics Export, Inc. $535,518
U.S. Meat Export Federation $1,081,750
U.S. Wheat Associates $4,176,733
USA Dry Pea and Lentil Council $157,661
USA Poultry and Egg Export Council $1,014,940
USA Rice Federation $1,267,187
Total $24,643,785

Visit to learn more about the Market Access Program, the Foreign Market Development Program and other FAS programs.


USDA is an equal opportunity provider and employer. To file a complaint of discrimination, write to USDA, Assistant Secretary for Civil Rights, Office of the Assistant Secretary for Civil Rights, 1400 Independence Avenue, S.W., Stop 9410, Washington, DC 20250-9410, or call toll-free at (866) 632-9992 (English) or (800) 877-8339 (TDD) or (866) 377-8642 (English Federal-relay) or (800) 845-6136 (Spanish Federal-relay).


Cheese Spread Narrows

April 15, 2014 — The spread between the block and barrel cheese price was a concern up until yesterday, when the barrel price shot up 8 ¾-cents to narrow the spread with the

Bill Brooks, FC Stone

Bill Brooks, FC Stone

blocks to under two cents.

“With the amount of price decline that we have seen with both the blocks and barrels the last couple of weeks it’s not surprising for us to get a little bit of a correction,” FC Stone’s Bill Brooks told DairyLine.

Even though prices may be steep for cheese buyers, they may want to get some product locked up bringing cheese prices higher for the time being.

“I don’t know if the higher prices are going to have much life to it,” Brooks said. “It is warming up and cows will be producing more, so normally we would see prices dropping off.”

Still, it’s nice to see a bump in prices after dropping nearly 20 cents in the past week.

It’s a light week for USDA reports this week as we gear up for a busy week next week. USDA will release Milk production, Livestock Slaughter, Cold Storage and Commercial Disappearance reports. We’ll also get our Class I base price for May next week.

Inspiring Tomorrow’s Dairy Leaders Today

April 14, 2014 — There’s an event that brings together the best and the brightest collegiate students who are diligently studying for a career in the dairy industry: The North AmericanNAIDC Intercollegiate Dairy Challenge.

264 dairy science students from 37 universities participated in the unique two-day competition at Ohio State University earlier this month.

“Certainly an array of students that are heavily interested in dairy science, production and dairy processing,” Professor Maurice Eastridge reported.

The competition challenges those institutions to inspire their students with a high quality education – empowering them with the resources for real-world success.

Six different dairy farms were used this year with first place awards presented to Cal Polytechnic State University, Cornell, Penn State, and the University of Guelph.

This challenge incorporates all facets of a working dairy business in a forum that’s interactive, educational and fun. The NAIDC is the competition for tomorrow’s dairy leaders.

“Consistently it has been commented that those who interact with these young people that the industry is in good hands,” Eastridge said. “There sharp individuals, they’re energetic and certainly the dairy industry has a great talent.”

He credited the success of the event came from support by host farmers and agribusiness companies who donated their time and money to make it an inspiring program for future dairy leaders. The North American Intercollegiate Dairy Challenge moves to Syracuse, NY the next two years.

The Sky is NOT Falling

April 11, 2014 — Go away Chicken Little, Jerry Dryer, editor of the Dairy and Food Market Analyst says it’s a “classic cheese market. It overreacts, going in either direction.”    Speaking

Jerry Dryer Dairy Market Analyst

Jerry Dryer
Dairy Market Analyst

in Friday’s DairyLine, Dryer said “It was probably too high, too long and now we’re facing a correction.” He added that a “swift correction like this rather than Chinese water torture, a quarter-cent per day for two months makes for a better market,” and he predicts a cheese market floor above $2 per pound. Ditto on butter and nonfat dry milk, according to Dryer, and he believes there’s still strength in the whey price so “the sky is not falling.”

Switching to Wednesday’s World Agricultural Supply and Demand Estimates report, Dryer said the entire report caught his attention because of the significant upward price “They now expect the cheese price to averaged about $2 per pound,” Dryer said, “Twelve cents more than they were forecasting just a month ago.” Their butter forecast was raised by 15 cents, to $1.80 per pound for the year, he said, but they held their nonfat dry milk forecast at $1.85, and bumped up their whey forecast to 63 cents “So that gives us an All Milk price around $23.00 per hundredweight,” he concluded.

Milk Output and Prices Raised

April 10, 2014 — USDA’s latest World Agricultural Supply & Demand Estimates report released Wednesday, raised projected 2014 milk production estimates from a month earlier cow_go2as strong returns are expected to encourage a more rapid expansion in cow numbers and increased milk per cow. Fat-basis exports were raised on higher sales of cheese and butter, but the skim-solids export forecast was lowered on weaker-than-expected nonfat dry milk (NDM) sales. Skim-solid imports were reduced slightly due to lower imports of milk protein concentrate and casein.

• 2014 production and marketings were projected at 206.1 billion lbs. and 205.2 billion lbs., respectively, up about 400 million lbs. and 500 million lbs. respectively from last  month’s projections. If realized, 2014 production and marketings would be up 2.4% from 2013.

Product price forecasts for cheese, butter, and whey were higher, supported by strong demand and price strength to date. However, the NDM price was unchanged at the midpoint as export demand is weaker than expected. Class III and Class IV prices were raised on higher product prices. The all milk price was forecast at $22.55-23.05 per cwt.

Dairy Price Forecasts Estimated Product Forecasts

Product              2012  2013 2014    

Class III ($/cwt) 17.44 17.99 20.40-20.90

Class IV ($/cwt) 16.01 19.05 21.05-21.65

All milk ($/cwt) 18.53  20.01 22.55-23.05

Cheese ($/lb.) 1.7076  1.7683 1.9850-2.0350

Butter ($/lb.) 1.5943    1.5451 1.7600-1.8400

NFDM ($/lb.) 1.3279    1.7066 1.8300-1.8700

Dry whey (¢/lb.) 59.35 0.5902 0.6150-0.6450


WASDE Offers Lots to Feed Off Of

U.S. feed grain ending stocks for 2013/14 are projected lower this month, according to today’s World Agricultural Supply and Demand Estimates report, with reductions for corn, barley, and oats. A 125-million-bushel increase in projected corn exports reduces corn ending stocks by the same amount. Continued strong export sales and a rising

weekly shipment pace for U.S. corn during March support the higher expected export level as does an increase in projected global corn demand.

The 2013/14 season-average farm price for corn is raised 10 cents at the midpoint with the projected range also narrowed to $4.40 to $4.80 per bushel, compared with $4.25 to $4.75 per bushel last month.

U.S. soybean supplies for 2013/14 are projected at 3.49 billion bushels, up 30 million

on increased imports. Imports are projected at a record 65 million bushels based on trade reported through February and prospective large shipments from South America during the second half of the marketing year. Soybean exports for 2013/14 are increased 50 million bushels to 1.58 billion reflecting record year-to-date shipments and large outstanding sales.

Despite relatively high prices and record harvests in South America, U.S. exports have remained strong, especially to China, where imports from the United States have already exceeded the previous marketing-year record. The soybean crush is reduced 5 million bushels to 1.685 billion with lower domestic soybean meal consumption more than offsetting a small increase in projected soybean meal exports. Seed use

is raised in line with the record plantings reported in the March 31 Prospective Plantings report, while residual use is reduced based on indications from the March 31 Grain Stocks report. U.S. soybean ending stocks are projected at 135 million bushels, down 10 million from last month.

Projected prices for soybeans and soybean products are all raised this month. The projected range for the season-average soybean price is raised 5 cents at the midpoint to 12.50 to $13.50 per bushel. Soybean oil prices are projected at 38 to 40 cents per pound, up 1.5 cents at the midpoint. Soybean meal prices are projected at $460 to $490 per short ton, up 5 dollars at the midpoint.


WASDE Beef Update/Prices Remain Strong

The 2014 forecast of total red meat and poultry production was lowered from last month in today’s World Agricultural Supply and Demand Estimates report, as higher beef production is more than offset by lower pork, broiler, and turkey production. For beef, production is forecast higher as lower forecast slaughter in the first quarter is more than offset by higher slaughter in the second half. The larger forecast second-half slaughter reflects larger placements of cattle during the first half.

The beef import forecast for 2014 is raised from last month as demand for processing-grade beef remains strong and the export forecast is raised on continued strong sales to Asian markets.

   Cattle prices for 2014 are raised from last month, reflecting continued price strength for fed cattle.                                              Source:?USDA WASDE report, April 9, 2014