|march 7, 2014 — Cheese prices hit record highs last month, then slumped, but are climbing back up again. Speaking in Friday’s DairyLine, Jerry
Dryer, editor of the Dairy and Food Market Analyst, said “It’s called supply and demand and demand is very strong both here and around the world and supply is a little bit snug.”
He cited this week’s Dairy Products report showing Cheddar production, which is primarily block cheese, below a year ago again and total American-type cheese was only up modestly. And demand is strong.
He believes we could see $2 cheese through the end of March and said it’s looking more likely to be here well into the Second Quarter. International buyers who took a lot of cheese out of the U.S. last year, and in October and November, before the markets starting advancing, hedged their purchases through the first half of the year, Dryer said. He speculates that it sold in the $1.85 per pound range “so that’s what they’re paying for the cheese despite these higher prices at the Exchange.”
Switching to commercial disappearance data, Dryer said he has pulled 2013 data together in both the domestic and export side of the business. Commercial cheese disappearance was around 11.5 billion pounds, according to Dryer, up 3 percent. U.S. sales were up 2 percent, he said, and up 22 percent on the export side, ?a very significant force and price driver.”
Commercial butter disappearance was up about 5 percent, Dryer reported, actually a bit lower in the U.S., he said, but up about 90 percent on exports.
Ditto on nonfat dry milk, which is very important to this current market, he concluded, as “The higher nonfat dry milk price is helping support other milk prices.”
Archive for the ‘Todays Dairy News’ Category
March 5, 2014 — Last week, America’s milk companies launched the “Milk Life” campaign – a new multi-million dollar, cross-platform campaign designed to reinforce how milk’s many nutritional benefits can help power the potential of every day. The campaign spotlights everyday moments of accomplishment, achievement and enjoyment, bringing to life how families and individuals who include milk’s protein at breakfast make the most of every day.
The new campaign stems from consumer research insights that show that while milk is found in most U.S. refrigerators; many Americans don’t realize its full nutritional contributions – especially the 8 g. of high-quality protein in each 8 oz. glass – as well as eight other essential nutrients. The Milk Life campaign aims to change that.
One of the great things about “Milk Life,” is that it has a double meaning: it’s about wringing every last drop out of every single moment, and it represents a way of living where milk helps power you to be your best. The Milk Life campaign includes print, TV and digital advertising, consumer and retail promotions, public relations and social media. It’s fully integrated to have the most impact on our consumer targets and encourage them to change their current behavior. We need them to start every day with milk’s powerful protein.
Many of the news reports this week have emphasized the change in the campaign. That’s not a surprise. However, this doesn’t mean that “got milk?” and the Milk Mustache are being retired. The “got milk?” tagline has tremendous equity, and you’ll continue to see it on a number of dairy programs (including the California Milk Processor Board programs). The Milk Mustache is iconic and has successfully helped educate Americans on the benefits of milk for nearly two decades. It will continue to be part of the program in the future but not the core feature of our print campaign.
Consumers can visit MilkLife.com to join a growing community that makes a point to Milk Life every day, share stories about how to Milk Life and explore recipes and tips from top registered dietitians and videos from other parents revealing how they make milk part of their family’s life. And producers and processors can learn more about how they can leverage the program by calling 1-800-945-MILK.
Source: Victor Zaborsky, MilkPEP
March 3, 2014 — Dairy producer’s income over feed costs hit a record level gaining both a higher milk price and lower feed costs. The latest numbers show that income over feed more than
doubled from February of last year.
“It shows that U.S. dairy producers are in for some very profitable times,” FC Stone’s Bill Brooks said on Tuesday’s DairyLine broadcast.
Producers just need to get the milk out of their cows to take advantage of the profitability this year. Brooks expects a slow-down in 2015 based on where futures are trading for milk, corn, and the soybean complex, but still will be slightly above average for next year.
“You have your fingers crossed for livestock producers, but for our dairy producers in general we will have a couple of good years for them to try and build up those balance sheets and get more comfortable on their financial position,” he said.
Looking at prices at the CME – Cash butter shot up 10 cents Friday to $1.88, but has been quiet the first two days of trading this week.
“I believe there could have been end of the month issues,” Brooks reported.
We have seen the butter market pick up on previous Fridays. Six out of nine Fridays this year have seen double-digit trades.
“The butter market is adequately supplied,” he said. “There’s plenty of butter out there in storage but the folks that own it are holding on to it with pretty decent confidence because inventories aren’t burdensome.”
Looking at the current cheese prices – CME blocks are holding at $2.2275, while the barrel price continues to slip, losing 3 1/4-cents on Tuesday to $2.1275.
“I think we’ll see some seasonal declines, but not necessarily large drops,” Brooks said.
March 3, 2014 — 2013 was a great year for U.S. exporters as we saw volume up 22 percent to almost 700 million lbs.
“That’s like exporting all the cheese produced in Minnesota,” USDEC’s Alan Levitt reported.
The United States saw exports up in all the major markets. Mexico was up 26 percent, Korea up 25 percent, The Middle East North Africa region was up 40 percent, and Japan was up 21 percent. Even China, which is still a relatively small customer, saw an increase of 29 percent.
“It’s been a really nice run,” Levitt said. “That level of exports has more than tripled since 2009, so it’s a real significant volume.”
Another way of putting it in context is the U.S. is exporting nearly 50 loads of a cheese per day. But what hasn’t received a lot of mention is that in 2013 the U.S. became for the first time, the worlds’ largest single country cheese exporter.
The U.S. passed France and the Netherlands in 2007, Germany in 2008, Australia in 2010, and New Zealand 2013.
“If this were the Olympics we have won the gold medal,” Levitt said. “It’s a big achievement and we want overseas buyers now to think of us as the market leader and look to us as a strong partner.”
Levitt says maintaining our spot as the number one cheese supplier in the world requires a shift in mindset and tactics. That’s because market leaders take a different approach than those with a smaller slice of the pie.
“Market leaders aren’t looking to chip away at competitors share to build business,” he said. “Instead, they’re looking to grow the market as a whole and to expand the pie.”
For example, being the market leader in pizza cheese means focusing on building overseas pizza consumption and also getting more cheese on pizza. Or, it could mean working with food companies to get them to incorporate cheese into more processed foods.
“It’s that sort of expanding the pie work that’s at the core of what USDEC’s marketing approach and U.S. suppliers are actively taking part in this work as well,” Levitt concluded.
February 28, 2014 — The winner of the 2014 World Ag Expo DairyBusiness booth giveaway is Alexandria Lopes from Gustine, CA. Alex is the daughter of Paul & Darlene Lopes and helps her parents on their 1,367 head dairy, P & D Dairy. A sophomore at Gustine High School, Alex is very active as a junior member of the California Holstein Association and in FFA, showing at all the state and local fairs. She is also an avid cheerleader at Gustine. Alex was thrilled to win the iPad Mini and hopefully will be using it to further her interests in the dairy industry. Congratulations Alex!
February 28, 2014 – Those are just two of the issues to be addressed at Western United Dairymen’s (WUD) annual meeting March 5-7 in San Luis Obispo. The theme this year is “Taking Action, Embracing Change.” One of the changes being embraced is possible formation of a Federal Milk Market Order. CEO Michael Marsh reported in Friday’s DairyLine that the producer community in California has become very frustrated when comparing local milk prices to milk going into cheese in other parts of the country.
That will be addressed on Thursday and include presentations by USDA Agricultural Marketing Service Dairy Programs Deputy Administrator, Dana Coale, as well as two attorneys, one specializing in Federal orders, Chip English, a partner at Davis, Wright, Tremaine LLP, and the architect of the California regulatory system, John Vlahos, Partner, Hanson Bridgett LLP, and WUD’s long-time legal advocate.
California’s quota system is a “problematic issue,” according to Marsh, “Because quota is very important to California dairy producers and securing it is also going to be one of the challenges with a federal order.”
Marsh said he believes that cooperatives are drafting language for a proposed federal order for California that envision USDA administering the federal market order and a transfer of quota monies would come from USDA, back to the California Department of Food and Agriculture to redistribute to producers. That provision, however, will take legislation within the California legislature to implement that, he said.
When asked about California’s higher minimum standards with respect to its fluid milk, Marsh said “I think we’ll be okay.” He admitted that he had a scare in July, 2012 when Rep. Steve King of Iowa had offered an amendment in the House Ag Committee’s markup that would have eliminated California’s fluid standards but it was not included in the final farm bill so “we will be able to maintain our higher fluid standards.”
February 27, 2014 – The Food and Drug Administration’s latest National Drug Residue Database (NMDRD) shows that only 0.014 percent of all truckloads of raw milk tested positive for medicinal animal drug residues in fiscal year 2013. The results, which are published yearly, shows the figure dropped from 0.016 percent last year.
The U.S. dairy industry tests every truckload of raw milk prior to use. All truckloads of raw milk testing positive for violative drug residues are disposed of and not used to produce food for human consumption. The benefits of this standard practice are reflected in the fact that no residues were found in any of the more than 160,000 samples of pasteurized milk and milk products tested since 2010 and reported through FDA’s NMDRD reports.
Furthermore, the amount of milk disposed of in fiscal years 2009 through 2013 continues a decline that began in fiscal year 2008, according to the NMDRD.
IDFA’s vice president of regulatory affairs and international standards, John Allan, stated on IDFA’s website that “The results further illustrate the high level of safeguards the dairy industry has in place to ensure that consumers can safely enjoy our high quality and nutritious dairy products.”
Dairy farmers and veterinarians use animal medicines under strict controls to treat sick dairy cattle. Treated cattle are removed from regular milk production and are not returned to the milking herd until their milk is free of any medicinal residues. When used according to label directions, medicines should not result in any residues in the milk. Testing of all bulk milk trucks is designed to ensure that all necessary precautions are being taken to keep residues out of the milk supply.
February 26, 2014 — The tight dairy economy is forcing producers to take a close look at improving milk production levels and reducing treatment costs. More milk and less mastitis add up to an improved bottom line. Professional services veterinarian - Dr. Brian Miller – tells us the importance of milk culturing before treating some cases of mastitis.
February 25, 2014 — Nearly 300 dairy producers and industry professionals gathered for the Oregon Dairy Farmers Convention in Salem this week. The theme “Milk Matters” featured a variety of industry experts and hot topics. Here were some of the highlights at this years conference:
-Dr. Tony Richard from the University of Missouri shared the latest research and insights on forage.
-Former NFL player Anthony Newman discussed the importance of our youth and the “Fuel Up to Play 60” program.
-Bruce Vincent, a logger from Libby, Montana discussed the importance of having a relationship with local government, civic organizations and how activism can be fun and easy.
-Amanda Gamblin from Schwabe, Williamson & Wyatt shared the latest news on how new labor laws will affect the dairy business in Oregon.
-Dr. Sherri Noxel from Austin Family Business Program shared information and resources to build family unity and pride that is essential for securing the farm’s legacy.
-Stan Erwine, VP of Producer Relations at Dairy Management, Inc. (DMI) gave an update on the national dairy checkoff activities and successes.
-Don Schindler, Sr. VP of Digital Initiatives at DMI shared how dairy fits into the paradigm shift.
-Troy Downing, Oregon State University Dairy Extension Specialist discussed the challenges and opportunities of producing milk in a global economy.
-Oregon’s legislative leaders were also on hand to address concerns and answer questions.
TEMPE, AZ — February 24, 2014 –Nearly 300 nutritionists, consultants, academia and veterinarians attended the 29th annual Southwest Nutrition and Management Conference in Tempe, Arizona last week.
“It’s a very strong representation from academia and from the nutrition profession providing a variety of information,” Joel Hastings, partner with DairyBusiness Communication reported from the conference.
Dr. Mike Hutjens, a well known nutritionist from the University of Illinois gave an entertaining presentation looking at the basic aspects of dairy management under the title, “Are you leaving money on the table?”
Another cutting edge presentation was delivered by Dr. Laura Hernandez from the University of Wisconsin, who discussed the role of serotonin in calcium metabolism.
Dr. Charlie Elrod, Vi-COR’s dairy division manager, discussed the influence of minerals in the water supply for dairy cows and how as much as 20 percent of the water fed to dairy cows in different parts of the country can have an impact on what the mineral balance is and should be taken into account in formulating rations.
University of Arizona Ph.D. candidate Xavier Ortiz reviewed the research work being done on conductive cooling, and explained the process of how cool water flows through the cow beds as a way to cool the cows during hot weather.
The Pioneers in Nutrition Award was presented to Dr. Charles Schwab from the University of New Hampshire. Schwab is currently an independent consultant in Wisconsin. He was recognized for his work with the National Research Committee to improve the feeding recommendations for cows. He was involved in the 1991 report and the National Research Council is beginning to organize the next update.
“This work presents the basic framework for dairy cattle nutrition that’s referred to by not only academics but also by independent nutritionists as they work on formulating the best strategy for feeding dairy cows,” Hastings reported.