World Dairy Diary

N.Y. Crowley Plant Closing

HP Hood LLC is closing its Crowley Foods plant’s manufacturing, warehousing and customer-service divisions in Albany, N.Y. and laying off 80 people. The plant’s distribution and sales divisions will remain open.

Martucci noted that Crowley recently lost an account to provide milk to the Price Chopper supermarket chain, and said workers were told the closure is resulting from low production volumes at the plant. But Bohan said the decision to close the plant did not result from decreasing sales or demand for Crowley products, adding also that it did not result from the workers’ work quality.

Indeed, a 2006 study by the Cornell University Department of Food Science said the Albany plant produced the highest-quality milk in the state. On Tuesday, Kathryn Boor, the professor who runs the study, said she was disappointed and saddened to learn of the coming shutdown.

UK Organic Sales Slow

A new study out of the UK shows that sales of organic milk have slowed considerably. Is this a glimmer of what may happen in the States?

According to market research company TNS, which closely monitors the market, sales of organic milk grew from 73.8 million litres in 2004 to 158 million last year. Though that represents rapid growth, it has slowed down considerably in recent months. Growth in the last 12 weeks has faltered to zero.

However, fans of organic milk claim the dramatic slowdown and rising prices are because of a lack of supply, with it taking at least two years for farmers to undertake the expensive process of converting to organic.

:-{)

You’re going to get a kick out of this. MilkPEP, funded by the nation’s dairy processors, has launced a new campaign to reach teens through the very popular medium of text messaging. The smiley gets a milk mustache! :-{)

If you don’t know, those are examples of emoticons that are used in the electronic world to help express emotion, especially in emails and text messages, where the meaning behind your words isn’t always obvious. They were created in 1982 by Scott E. Fahlman. Make sure you use this one proudly! :-{)

“It’s really about new ways to reach our teen target audience,” said Victor Zaborsky, director of marketing for MilkPEP. “They don’t watch as much TV and they don’t ready as many magazines. The Internet is where they live and breathe.” The new emoticon is one of the few associated with a specific brand or trademark.

To encourage the use of the new symbol, MilkPEP appended the series of typographic characters to online title of a video the group posted to YouTube featuring NBA star Vince Carter, who stars in milk ads. The group also employed the milk-mustache emoticon in e-mail alerts sent to its 20,000 MySpace “friends.”

Dairy Shrine Apps Due March 15

National Dairy Shrine is again seeking nominations for its annual awards and scholarships. The deadline for applications is March 15, except for the NDS/lager Scholarship, which is due July 1.

Awards include Guest of Honor, Distinguished Dairy Cattle Breeder, Pioneers and Progressive Dairy Producers. Youth awards include: Kildee Scholarships, Dairy Student Recognition Program, NDS/DMI Milk Marketing Scholarships, McCullough Scholarships, NDS/Klussendorf Scholarships and NDS/lager Scholarship.

Dairy Producer Approve Beef Checkoff

According to the Cattlemen’s Beef Promotion and Research Board, 68-percent of dairy producers recently surveyed by an independent company approve of the $1-per-head beef checkoff program they contribute to as beef producers. Beef can be a valuable second income opportunity for dairy producers, it’s great to hear so many support the efforts of the checkoff program!

This level is similar to the 70 percent of beef producers surveyed who said they approved of the beef checkoff. Additionally, 66 percent of dairy producers surveyed said they were informed about The Beef Checkoff Program, with 21 percent of those saying they were “very well informed” about it.

The dairy industry is well represented on the Cattlemen’s Beef Board, with 15 dairy producers sitting on the board that administers all national checkoff-funded programs. Dairy producers’ investment into the beef checkoff funds six different areas —promotion, research, consumer information, industry information, foreign marketing and producer communications. Beef checkoff programs such as nutrition research and youth initiatives help build demand by educating consumers about the lean and nutrient-rich qualities of beef.

CWT Export Assistance Bids

Here’s the latest announcement from Cooperatives Working Together:

Cooperatives Working Together announced today that it accepted six export assistance bids last week for the sale of cheese and anhydrous milkfat.

All the bids were from Dairy Farmers of America of Kansas City, MO: 600 metric tons of anhydrous milkfat (1.3 million pounds) to Indonesia; 112 metric tons (246,400 lbs.) of Cheddar cheese to Morocco; 36 metric tons (79,200 lbs.) of Monterey Jack cheese to Japan; 19 metric tons (41,800 lbs.) of Mozzarella cheese to the Dominican Republic; 19 metric tons (41,800 lbs.) of Cheddar cheese to South Korea; and 15 metric tons (33,000 lbs.) of Mozzarella cheese to Israel.

CWT will pay an export bonus to the bidders, once completion of the milkfat and cheese shipments is verified.

Vermont Producers Get Assistance

Dairy farmers in Vermont earned a small victory on Friday, the state’s governor, James Douglas, signed a law that will distribute $3 million dollars in assistance to them.

The checks will be mailed to as many as 1,100 farmers by the end of March. The amount they get will be based on how much milk they produced in January and February. The goal is to give farmers — who have been strapped by weather disasters, high fuel and feed costs and low milk prices — some cash assistance in coming weeks as they make decisions whether to plant their crops this spring or go out of business.

Douglas initially opposed assistance and the objected because the House was looking at raising a property sales tax to pay for it. Ultimately, the administration and Legislature found money elsewhere in state government to be spent on farmers.

Horizon Organic Has New President

Horizon Organic has a new president, Blaine E. McPeak, the former president of Kellogg Company’s portable breakfast and snacks division, and a leader in the company’s Kashi brand.

Dean Foods Company said Thursday that Blaine E. McPeak, a former Kellogg Co. executive, will join the company’s WhiteWave division as president of its Horizon Organic unit. McPeak will oversee all aspects of the Horizon Organic business and seek to expand the Rachel’s Organic brand, the company said.

WeatherMaster Technology From ADM Alliance Nutrition

While I was attending the recent Cattle Industry Convention I met Brad Dalke, business manager, ADM Alliance Nutrition. He was there to discuss their new WeatherMaster technology. This technology, which ensures minerals will not leach out or break down in rainy or harsh weather conditions, is produced with naturally sourced ingredients and does not contain petroleum-based ingredients.

“The NCBA show offers ADM the opportunity to meet face-to-face with cattle producers across the country in order to share the important role that high quality mineral supplements play in achieving optimal cattle nutrition,” said Dr. Brad Dalke, Beef Business Manager, ADM Alliance Nutrition. “These discussions allow us to fulfill our commitment to meet the current demands of our customers while also envisioning their future needs.”

Listen to my interview with Brad here: Brad Dalke Interview (3 min mp3)

Podcast: Play in new window | Download

Johnson Addresses Cow Overeating

During the 2007 Tri-State Dairy Nutrition Conference, Tim Johnson, Purdue University Extension dairy nutrition specialist will address protein overfeeding and how it can affect a dairy operation. The conference will be held on April 24-25 at the Grand Wayne Center in Fort Wayne, Ind. Register soon – pre-registeration closes on April 5th.

Overeating doesn’t do a dairy cow any more good than it does a human. In fact, the negative consequences could be greater when a bovine makes a pig of itself, said Johnson. Dairy producers need to carefully monitor how much supplemental protein they feed their animals in order to avoid possible environmental and herd health problems, as well as higher operating costs, Johnson said.

Johnson’s presentation, “Use of Milk Urea Nitrogen in Herd Management,” is slated for 5:15 p.m. on the conference’s opening day. Johnson will be joined in his presentation by Herb Bucholtz, Michigan State University Extension dairy nutrition specialist.

Dairyline Markets in Review

Dairy Markets Week in Review
The cash cheese market strengthened in the President’s Day shortened week. Block cheese closed that Friday at $1.37 per pound, up 7 1/2-cents on the week, and 24 1/4-cents above that week a year ago. Barrel closed at $1.35, up 7 3/4-cents on the week, and 24 1/2-cents above a year ago. Seven cars of block traded hands on the week and 12 of barrel. The NASS-surveyed U.S. average on blocks hit $1.3240, up 2.1 cents. Barrel averaged $1.3591, up a penny.

The cash Grade “A” nonfat dry milk price gained 7 1/2-cents, hitting $1.5250. One car was even sold. Extra Grade remained at $1.45. The NASS nonfat dry milk price gained 0.3 cents, hitting $1.0974. Dry whey averaged a record 61.41 cents, up another 3 cents on the week. It has gained 20 cents since the first of the year and every penny equates to about 6 cents on the Class III milk price.

Provided courtesy of Dairyline.

Institute to File Lawsuit Against USDA

The Cornucopia Institute announced its intend to file a federal lawsuit against the U.S. Department of Agriculture (USDA), accusing the agency of failing to enforce federal laws about the labeling of organic foods. The impending lawsuit is the latest salvo in a seven-year-long dispute between organic family farmers and the USDA.

At the center of the controversy are two major agribusiness corporations, Dean Foods and Aurora Dairy. Dean’s Horizon brand and private-label milk produced by Aurora (marketed by Safeway, Wild Oats, Trader Joe’s and Wal- Mart) have gained a dominant market share, estimated as high as 70 percent, by ramping up production on feedlot dairies milking as many as 2000 to 10,000 cows, according to the institute.

“There are five sections in the federal organic standards that relate to pasture and grazing. Taken together, they leave little doubt as to what is expected of organic livestock producers,” said Jim Riddle of the University of Minnesota and former chair of the National Organic Standards Board. “It’s no coincidence that except for the handful of mega-farms, all of the nation’s organic dairy farmers, and most of the certifiers that inspect them, understand that grazing is required and operate their farms in accordance with the law. It appears that the USDA is looking the other way by allowing these confinement dairies to not provide pasture for their lactating cows.”

New Dairy Blog

Our good friend, Leon the Milkman, reported on his blog today that the South African Society for Dairy Technologists is starting their own blog! This media outlet is really catching on!

Hi, Milk Fans

Leon the Milkman

FAGE Names U.S. Agency

Congratulations are in order for advertising agency, Ogilvy North America for being awarded the FAGE Dairy Industry account. FAGE is a premium dairy brand from Greece whose Total yogurt brand will soon be distributed in the U.S. I reported on the company’s U.S. site choice in a previous post.

Ogilvy was awarded FAGE’s fully integrated marketing account based on the agency’s proven success in building brands across multiple channels. Launched in the US in 1998, FAGE is planning a new marketing push behind its Total yogurt brand as it expands its distribution and commences US production over the next two years.

Ogilvy will utilize a broad array of marketing solutions on behalf of FAGE including, traditional advertising, customer relationship marketing, direct, interactive and activation.

Saputo Acquires LOL Cheese & Protein International

Saputo Inc has entered into an agreement to acquire Land O’Lakes Inc’s Cheese & Protein International business for $216 million in cash. Land O’Lakes Inc’s Cheese & Protein International business employs approximately 530 people and manufactures, sells, shreds and blends mostly mozzarella and provolone products. In 2006, the business generated $415 million in sales and approximately $20 million of EBITDA. The transaction is expected to close on or about April 2, 2007.

BST Stolen from Calif. Dairy

More news about California dairy producers and BST – this time $30,000 worth of the product were stolen.

Surveillance video captured three thieves slipping onto E.J. deJong’s dairy farm under the cover of night, making their way past the cows in his milking parlor. They made quick work carting out their haul. In just one night, deJong lost about $30,000 worth of the genetically engineered hormone rBST, or recombinant bovine somatotropin, in what police say was one of the most brazen, high-value heists to date. The three suspects still haven’t been caught.

Rural crime officials say vials of rBST are a favorite among thieves who resell the growth hormone for top dollar on the black market. Fewer dairy farmers use it these days due to concerns over its health effects, and thefts have declined in recent years, but the sophistication and overall worth of the December break-in have alarmed authorities over the possibility of a larger hormone-peddling syndicate. Though DeJong was the first to catch it on video, similar heists have targeted farmers throughout the San Joaquin Valley. Some have been clandestine break-ins; others were inside jobs.

Proposed Change to Heifer Show Rule

The Holstein Association USA recently announced a proposal to change its show rules concerning heifer classes. The proposal would break heifer classes by height rather than age. The Association is seeking comments and feedback on the proposal – be sure take part in the discussion.

During the Association’s Show Committee meetings last spring and fall, considerable discussions took place regarding the prospect of researching the concept of showing heifers by height instead of age. For the past several years at Regional Member meetings, and through responses given in a recent survey of Association members, concerns have been raised over the credibility of the ages provided on some heifers that are shown. For the most part, the common complaint is that some heifers appear to be just too big for the classes in which they are being shown.

Over 58″, under two years old, and not in milk.

Dairy Producers Speak Out

More than 100 dairy producers and employees in California came together to express their concerns about consumer confidence in the industry. The group took a tentative step toward organization while voicing their opinions on the marketing of rbST-free milk.

The recent announcement by dairy cooperative California Dairies Inc., that they would ask all members to sign an affidavit saying they no longer use the Monsanto product Posilac, the artificial recombinant bovine somatotrophin used to boost milk production, spurred many of the dairymen to speak out. One of their prime concerns was that if milk marketers could convince consumers the technology was unsafe, which dairy technology would be the next target.

Dr. Terry Atherton, dairy researcher and professor of animal science at Penn State University, spoke at the meeting and hit the producers with some cold, hard facts about the future of food biotechnology. Animal rights activists have a business agenda, he said, and they collect donations and spend millions to scare the public. He said the reality is that America has the world’s safest food supply. Etherton also pointed out that what activists say is not what the majority of consumers are saying about their food.

Midwest Cooperatives to Merge

Two leading dairy cooperatives in the Midwest announced plans to merge. The boards of directors of Cass-Clay Creamery Inc. and Associated Milk Producers Inc. approved the merger into one cooperative.

The merger will create a farmer-owned dairy marketing company with more than $1 billion in annual sales. Together, the cooperatives will provide a complete line of dairy products to a regional and national marketplace. To finalize the merger, the dairy farmer-owners of Cass-Clay must approve the transfer of assets to AMPI. That approval is expected in March, with the merger completed April 1.

CWT Export Assistance Bids

Here’s the latest announcement from Cooperatives Working Together:

Cooperatives Working Together announced today that it accepted seven export assistance bids last week for the sale of cheese, anhydrous milkfat and butter.

The first two bids are from Darigold of Seattle, WA: one for 250 metric tons (550,000 pounds) of Cheddar cheese to Egypt, and another for 200 metric tons (440,000 lbs.) of butter to Saudi Arabia. Three bids from Land O’Lakes of Arden Hills, MN, were accepted: 40 metric tons (88,000 lbs.) of Mozzarella cheese to Jordan; 20 metric tons (44,000 lbs.) of butter to the Netherlands; and another 20 metric tons (44,000 lbs.) of butter to Bermuda (the first CWT export to that country).

One bid from Foremost Farms of Baraboo, WI, was accepted, to export 38 metric tons (83,600 lbs.) of butter to Kyrgyzstan (the first CWT export to that country). Lastly, a bid from Dairy Farmers of America of Kansas City, MO, was accepted for 19 metric tons (41,800 lbs.) of anhydrous milkfat to Indonesia. CWT will pay an export bonus to the bidders, once completion of the butter, milkfat and cheese shipments is verified.

CWT will pay an export bonus to the bidders, once completion of the butter and cheese shipments is verified.