World Dairy Diary

CWT Export Assistance Bids

Cooperatives Working TogetherHere’s the latest announcement from Cooperatives Working Together:

Cooperatives Working Together announced today that it accepted an export assistance bid last week for the sale of whole milk powder. The bid was from Humboldt Creamery of Fortuna, CA, for the export of 75 metric tons (165,000 pounds) of whole milk powder to Egypt.

CWT will pay an export bonus to the bidder, only when delivery of the product is verified by the submission of the required documentation.

With this accepted bid, CWT’s total 2008 export obligations are: whole milk powder, 150 metric tons (330,600 lbs.), and butter, 291.2 metric tons (641,805 pounds).

Kraft Offers New Cheese

There’s a new cheese on the market, but it’s missing something according to Kraft Foods Inc. The cheese says it is free of rBST, and may be the first in a line of dairy products that uses the absense claim of the controversial technology to gain market share.

Kraft Foods Inc. plans to offer cheese free of a controversial growth hormone, a strategic move that pressures competitors to follow. Northfield-based Kraft says it will start selling a line of cheese made with milk from cows free of rBST by June.

Kraft aims to capitalize on consumer worries about food safety with a specialty product that will fetch a higher price than its mass-market cheeses. The new cheese reflects CEO Irene Rosenfeld’s plan to rekindle growth with premium brands. Such a move by the nation’s biggest food company also could force rivals to offer products free of artificial hormones.

“This is a big development and shows that food companies acknowledge consumers are taking a much more active interest in what is in their food,” says Bill Bishop, chairman of Barrington-based consultancy Willard Bishop. “This used to be a niche interest, but as it becomes more mainstream the big food companies . . . have to respond or they will find themselves in an unfortunate position.”

For big food companies like Kraft, changing processes can add to manufacturing expenses, but those added costs can be passed on to consumers. And given their higher retail prices, natural and organic lines typically are more profitable, Mr. Bishop says.

Kraft began talking with suppliers in November about using milk free of synthetic hormones for its “2% Milk” cheese lines, a spokesman says. Kraft chose the 2% brand because it’s a premium line with several dozen products. “We understand this is important to some people, and this is what is really driving the decision for us,” he says.

Still, the company’s shift has the potential to reverberate throughout the dairy industry, resulting in more rBST-free cheese, ice cream and butter in general, says Catherine Donnelly, professor of nutrition and food science at the University of Vermont in Burlington. Several small processors, including Tillamook County Creamery Assn. in Oregon, began offering rBST-free cheese several years ago, but the decision by Kraft, the maker of Velveeta and Cheez Whiz, validates it as a mass-market move, she says.

Monsanto and other opponents to such labeling say there is no way to accurately certify something as free of rBST because milk with or without the hormone is chemically the same.

“Unfortunately, consumers are being misled to think one carton of milk is safer or more healthy, when in fact all milk is the same,” a Monsanto spokeswoman says. “People are paying more for milk that is the same.”

IDFA Supports Moratorium

idfaInternational Dairy Foods Association (IDFA) President and CEO Connie Tipton has announced the support of the association’s dairy processors to FDA’s announced continued moratorium on milk and food from cloned animals. Portions of the statement appear below.

“We applaud Acting Secretary of Agriculture Chuck Connor for his common sense decision to continue the moratorium on milk from cloned animals while USDA and other government agencies review the implications that the approval of this niche technology would have on trade and public health. Numerous surveys reveal that consumers are not comfortable with the idea of buying milk from cloned cows, and more time is needed for the American public to gain a better understanding of this new technology.

“U.S. dairy exports have grown significantly during the past few years, reducing the cost of government support programs. However, milk and food from cloned animals have not been approved for consumption in most countries that are importing our products. Therefore, it would be prudent to wait until all major foreign trading partners have reviewed and approved the same cloning technology in their respective countries.

“Moving too fast on this technology without a thorough and deliberative dialogue at all levels could also unintentionally lead to reduced domestic consumption of milk, a nutrient-dense food that is an excellent source of nine essential nutrients, including protein and calcium. USDA’s Dietary Guidelines for Americans recommend at least three daily servings of dairy as part of a healthy diet.

“We are reassured that the Food and Drug Administration has confirmed that there are no health or safety issues with food from cloned animals. During the moratorium, we encourage the biotechnology industry to work with consumers to help them gain a full understanding of the technology.”

Final Decision on Clones Released

fdaI know I’m a little late posting this news, but for those of you who haven’t heard yet, the Food and Drug Administration (FDA) has released their report that concludes that food from clonded animals and their offspring is safe. The agency has asked producers of cloned animals to continue their voluntary moratorium on the sale of meat and milk from clones and their offspring at least temporarily.

A long-awaited final report from the Food and Drug Administration concludes that foods from healthy cloned animals and their offspring are as safe as those from ordinary animals, effectively removing the last U.S. regulatory barrier to the marketing of meat and milk from cloned cattle, pigs and goats.

But, recognizing that a majority of consumers are wary of food from clones — and that cloning could undermine the wholesome image of American milk and meat — the agency report includes hundreds of pages of raw data so that others can see how it came to its conclusions.

The report also acknowledges that human health concerns are not the only issues raised by the emergence of cloned farm animals.

“Moral, religious and ethical concerns . . . have been raised,” the agency notes in a document accompanying the report. But the risk assessment is “strictly a science-based evaluation,” it reports, because the agency is not authorized by law to consider those issues.

In practice, it will be years before foods from clones make their way to store shelves in appreciable quantities, in part because the clones themselves are too valuable to slaughter or milk. Instead, the pricey animals — replicas of some of the finest farm animals ever born — will be used primarily as breeding stock to create what proponents say will be a new generation of superior farm animals.

When food from those animals hits the market, the public may yet have its say. FDA officials have said they do not expect to require food from clones to be labeled as such, but they may allow foods from ordinary animals to be labeled as not from clones.

To create its final risk assessment, the FDA gathered data on nearly all of the more than 600 U.S. farm-animal clones produced and hundreds of their offspring, as well as many from overseas.

“Food from cattle, swine, and goat clones is as safe to eat as that from their more conventionally-bred counterparts,” the FDA risk assessment concludes.

Looking ahead, the report says FDA is collaborating with veterinary and scientific organizations, notably the International Embryo Transfer Society, to create a database on the health of new clones, which will help the agency track the field as the industry grows.

The Moo Mixer

Moo MixerThanks to our buddy Leon The Milkman we learned about the Moo Mixer. This is the way to mix your chocolate milk.


It’s the Moo Mixer!! Holds 8 oz. of fun. Just add milk, chocolate and imagination!

Perfect for mixing hot or cold drinks. Battery operated and dishwasher safe. The trigger button brings the mixing tornado to life. Safe for small heifers and hungry calves. Watch their faces shine with amazement as the moo mixer goes to work.

DBA Supports Governor Doyle

The Dairy Business Association (DBA) has announced its support of Wis. Governor Jim Doyle’s efforts for launching the Next Generation Agriculture Plan at its annual business meeting.

The Next Generation Agriculture Plan is a detailed, aggressive plan that will continue to build collaborative efforts between the Administration and the DBA to further improve the Wisconsin’s agriculture economy, especially its dairy and cheese industry.

“We are pleased that the Governor chose to unveil his Next Generation Agriculture Plan at our annual convention,” said John Vrieze, DBA’s outgoing president.

According to the Governor’s office, the Next Generation Agriculture Plan commits $33 million to assist the state’s agriculture economy. Of that, $13 million will be invested in nutrient management programs, which will help producers implement nutrient management plans effectively and efficiently. It will also help producers with waste water management so they become even better stewards of the land.

In addition, the plan includes tax credits that will modernize the state’s comprehensive dairy infrastructure by allowing for dairy plant improvements and investments and meat processors to reinvest in their facilities. The plan also includes a $10 million initiative targeting expansion of the state’s exports of whey to international markets.

Rascal Flatts – Milk Rocks!

flattsThe Milk Rocks! campaign now has power group Rascal Flatts on-board, and one lucky winner will have their dream come true – the chance to sing live onstage with the band! The contest, “Be a Milk Rock Star” starts on March 1 and will include advertisements on milk carton sides and lunchroom posters in more than 95,000 elementary, middle and high schools across the country.

The “Be a milk rock star” push, part of the broader Milk Rocks! public service effort, promotes health and nutrition and was created by MilkMedia. The band will pre-record messages to fans explaining contest rules as well as nutritional facts about milk, which can be seen on milk cartons, school lunchroom posters and a Web site prior to the live concert.

Launching on March 1, 2008, Rascal Flatts fans can register on the Milk Rocks! Web site to select their favorite song (among five) and upload a karaoke-style video of the tune. The top 10 participants voted by the Milk Rocks! online community will win signed Gibson guitars, Rascal Flatts CDs and posters signed by the band. The winner will appear in concert with Rascal Flatts. The grand prize also includes hosting a concert Webcast from the customized Gibson guitar tour bus and meeting a rep of Lyric Street Records, Rascal Flatts’ label.

“We have the greatest fans in the world,” said Rascal Flatts band member Gary LeVox. “So giving our songs back to them, with the opportunity to join the band for a night, is the least we can do to say thanks. And since drinking milk is a big part of keeping our fans energized for our show, we’re happy to help Milk Rocks! get their message out there,” he said.

WDE Announces 2008 Judges

wde2008The 2008 World Dairy Expo, scheduled for September 30 – October 4 in Madison, Wis., has announced the official judges for the dairy shows. The 2008 theme: “Building Bridges – Making Connections” promises to make for an exciting ring display!

The individuals responsible for placing nearly 2,500 head of dairy cattle during the five-day show are:

Central National Ayrshire Show – Steve White, New Castle, Indiana

Central National Brown Swiss Show – Wayne Sliker, St. Paris, Ohio

National Guernsey Show – Madison – Carrie Sears, South Deerfield, Massachusetts

International Holstein Show – Brian Carscadden, Guelph, Ontario Canada

Central National Jersey Show – Ron Rider, Upton, Kentucky

International Milking Shorthorn Show – Ted Smart, Anna, Ohio

Grand International Red & White Show – Perry Phend, Osseo, Wisconsin

Dairyline Markets in Review

DairylineDairy Markets Week in Review
Anticipating the December Milk Production report Friday afternoon, cash cheese prices continued to weaken the week of January 14. The block price closed Friday morning at $1.65 per pound, down 20 cents on the week (it lost 30 1/4-cents the previous week), 36 1/4-cents above a year ago, but the lowest block price since May.

Barrel closed at $1.8025, down 17 3/4-cents on the week, 49 1/2-cents above a year ago, and a whopping 15 1/4-cents above the blocks. Sixteen cars of block traded hands and four of barrel. The NASS-surveyed U.S. average block price inched up to $1.9956, up 1.5 cents. Barrel averaged $2.0309, up 4.1 cents.

Butter closed Friday at $1.22, down a penny on the week and a half cent below a year ago. Only three cars were sold. NASS butter averaged $1.2413, down 3.8 cents. NASS nonfat dry milk averaged $1.6452, down 8.7 cents, and dry whey averaged 43.59 cents, down 0.6 cent.

Provided courtesy of Dairyline.

Southern Great Plains Dairy Consortium

Southern Great Plains Dairy ConsortiumIf you’re interested in learning more about dairy herd management there’s a relatively new consortium to turn to. It’s made up of 8 schools.

The Southern Great Plains Dairy Consortium (SGPDC), will coordinate with industry and government to enhance the dairy industry’s competitiveness, as well as its ability to produce a safe, wholesome and competitively priced supply of milk and related products. The consortium has research, extension and teaching components. However, the first activity of the consortium will be to establish a large herd teaching program.

Consortium Teaching Program leaders Mike Tomaszewski of Texas A & M University, Bob Collier of the University of Arizona, and Robert Hagevoort of New Mexico State University describe the teaching program as the first of its kind for the dairy industry: a regional, multi-university program which provides a framework for coordinating dairy training in a large herd setting.

Consortium members are Abilene Christian University, University of Arizona, New Mexico State University, Oklahoma State University, Tarleton State University, Texas A&M University, Texas Tech University, West Texas A&M University, Texas Agricultural Experiment Station, Texas Cooperative Extension, Texas Veterinary Medical Diagnostic Lab, and USDA Agricultural Research Service. In addition industry support is being provided by trade organizations such as Dairy Producers of New Mexico, Texas Association of Dairymen, Dairy Max and Southwest Dairy Museum.

The first program to be offered is “Advanced Large Herd Management Program” which will give 25 to 30 students a unique educational experience and employment opportunities.

Cheese Is Super For Football Parties

dairycheckoffPretty soon it’ll be Super Bowl party time. I’m betting a lot of people are doing playoff parties. If so, hopefully cheese is on the menu. Apparently it is according to the Dairy Checkoff.

With the football playoffs underway, some may be surprised to know that many Americans offer pizza as a key game-day menu item. But in addition to driving football party menus, pizza is also a significant driver of demand for U.S. dairy producers, as Brian Baxter reports.

You can listen to Brian’s report here: dairy-checkoff-sports-cheese.mp3

Organic Milk Being Dropped From Starbucks Menu

StarbucksWhy sell organic when you’ve got artificial-hormone-free dairy products? Good question and according to a story on The Seattle Times that’s what Starbucks has decided. The story says they’ll stop offering organic milk in U. S. stores next month.

The Seattle-based coffee company began making organic milk available at an extra cost in 2001 to satisfy customers who wanted dairy products from cows that had not been given a controversial artificial growth hormone, said spokesman Brandon Borrman.

But when Starbucks completed a transition to artificial-hormone-free dairy products in all of its U.S. stores earlier this month, it eliminated customers’ primary reason for requesting organic milk, Borrman said.

CWT Export Assistance Bids

Cooperatives Working TogetherHere’s the latest announcement from Cooperatives Working Together:

Cooperatives Working Together announced today that it accepted an export assistance bid last week for the sale of whole milk power.

The bid was from Humboldt Creamery of Fortuna, CA, for the export of 75 metric tons (165,000 pounds) of whole milk powder to Egypt.

CWT will pay an export bonus to the bidder, only when delivery of the product is verified by the submission of the required documentation.

With this accepted bid, CWT’s total 2008 export obligations are: whole milk powder, 75 metric tons (165,000 lbs.), and butter, 291.2 metric tons (641,805 pounds).

Dannon Introduces New Yogurt

DannonlogoDannon will introduce new yogurt offerings that will have benefits beyond basic nutrition, including probiotics. The two new products are called Light & Fit 0% Plus and DanActive Light, a new version of DanActive that has fewer than half the calories.

The two products, hitting stores this month, are the latest manifestation of the company’s “high-health strategy,” a concept of providing consumers with yogurt with benefits beyond basic nutrition. Previous efforts in that vein include probiotic yogurts Activia (in 2006), DanActive (2007) and Dannon Activia Light (2007).

“Our strategy focuses on the absence of negatives, in terms of calories, and the presence of positives, that is, the addition of nutrients and vitamins in diets,” said Andreas Ostermayr, CMO, Dannon, White Plains, N.Y.

Light & Fit 0% Plus ads launching next month will focus on “making every calorie count and adding nutrients into diets, rather than simply reducing calories,” said Ostermayr. Young & Rubicam, New York, handles.

The seven-SKU Light & Fit 0% Plus line retails between $2.59 and $4.69 for four- and eight-packs, and sports 60 calories per 4-oz. cup. “Consumers often have to sacrifice taste when eating light products,” said Ostermayr. “Our objective was to create a great tasting light yogurt that doesn’t taste light.” To achieve that goal, Dannon decided to go with a new proprietary blend of sweeteners that includes aspartame, sucralose, acesulfame potassium and fructose.

A longtime runner-up to General Mills’ Yoplait in the U.S., Dannon appears to be benefiting from its focus on healthier yogurt. Activia has grown 48% to $181.3 million in sales, per IRI, for the 52-week period ending Dec. 2. DanActive experienced 185% growth, recording sales of $60 million during that period. Dannon Activia Light (2007) had 197.5% growth with sales of $57 million.

Dairy Today Getting New Look

Dairy TodayThere’s a reason we were taught in college journalism classes to “never work with animals or small children.” In this video from the Pentagram website you’ll see what I’m talking about.

I’ve watched this done now quite a few times at livestock shows. I don’t envy DJ the challenge of working with a prima donna who’s only interested in the feed bucket.

DJ Stout has redesigned the magazine Dairy Today that is launching this month. In addition to a bold new logotype, the magazine will feature a stylized “portrait” of a dairy cow on the cover of each issue in an effort to differentiate it from its competitors. This is the second dairy magazine and the sixth agricultural trade publication Pentagram’s Austin office has redesigned. Stout and his team previously reworked three magazines for the American Quarter Horse Association, Dairy Herd Management magazine and Drovers magazine (about the beef industry).

Wendt’s Dairy to Close

wendtslogoWendt’s Dairy located in Niagara Falls, N.Y. will be shutting its doors in May 2008 after almost 60 years of operation. The plant was opened in 1948 and is currently owned by Upstate Niagara Milk Cooperative.

The milk manufacturing site is part of Upstate Farms Niagara and is being closed to avoid a duplication of operations, said Eva Balazs, communications manager for Upstate Niagara.

Balazs said only fluid milk and some juices are manufactured at the Falls plant, the same operations conducted at Upstate Niagara’s larger plants in Cheektowaga and Rochester.

“It will be closed sometime in May,” she said. “There was just too much duplication going on to keep it open.”

Balazs said the “majority” of the workers losing their jobs here will be offered positions at the Cheektowaga plant.

“We will still need them because we’re still producing the same amount of product,” Balazs said.

Wendt’s Dairy has existed at 8450 Buffalo Ave. since 1948. It was most recently owned by about 170 farm families known as Niagara Milk Cooperative before merging with Upstate Farms Niagara in 2006. Balazs said Wendt’s milk will still be sold locally.

Aurora Dairy to Reduce Footprint

auroradairyColorado based Aurora Organic Dairy, has announced a partnership with the University of Michigan to measure and reduce its company’s carbon footprint. The reduction of energy and material use will be across the entire product lifecycle, from cattle feed to cartons in retail dairy cases.

Aurora Organic Dairy Foundation, a new not-for-profit organization formed to fund research, market-development initiatives and community-building activities benefiting organic agriculture, will foot the bill for the initiative.

The foundation’s first grant of more than $320,000 will fund a long-term research partnership with the Center for Sustainable Systems at the University of Michigan’s School of Natural Resources and Environment. The center will conduct lifecycle and sustainability research at Aurora Organic Dairy’s facilities, including its High Plains organic dairy farm near Platteville and its Coldwater organic dairy farms in Texas.

The study will identify the current carbon footprint of the operations and then seek to improve Aurora Organic’s sustainability performance by adjusting energy supply and demand options, non fuel-related carbon emissions, and energy and greenhouse gases from material resources such as packaging.

Dairyline Markets in Review

DairylineDairy Markets Week in Review
The crash you heard January 7th was a 40-pound block of cheese at the Chicago Mercantile Exchange. We have seen several large single-day drops in the past two to three months only to see it rally a few days later. This time it was a 15 1/4-cent plunge and, while it regained almost a nickel the next day, it gave that up and more on Wednesday and ended Friday at $1.85 per pound, down 30 1/4-cents on the week, but still 54 1/4-cents above that week a year ago.

Barrel closed Friday at $1.98, down 11 cents on the week but 65 cents above a year ago. Sixteen cars of block traded hands on the week and five of barrel. The lagging NASS-surveyed U.S. average block price inched 0.9 cent lower, to $1.9803. Barrel averaged $1.9902, down 2.8 cents.

Provided courtesy of Dairyline.

New Brazil Dairy Plant to Open

Nestle SA, the world’s largest food company, and New Zealand’s Fonterra Cooperative Group Ltd. plan to open a dairy in Brazil in the first half of this year.

The companies will invest as much as 70 million reais ($39.5 million) in the plant, according to a statement sent from Nestle’s Brazil unit. The factory will be located in Palmeira das Missoes, in the Southern state of Rio Grande do Sul, and rank among Brazil’s five biggest dairies, Vevey, Switzerland-based Nestle said. Production capacity is projected at 1 million liters a day.

Nestle intends to double annual sales in Brazil by 2011 from 11 billion reais in 2006. The investments will boost yearly production by 50 percent. Fonterra, based in Auckland, is the world’s largest exporter of dairy products.

Jersey Association Declares 2007 Greatest

JerseylogoThe American Jersey Cattle Association has declared 2007 “the greatest year in the history,” for U.S. Jerseys! The association continues to see record numbers in all areas of its operation.

“It’s hard to imagine how 2007 could have been better for members of the USJersey organizations,” said Neal Smith, Executive Secretary and Chief Executive Officer of the AJCA and National All-Jersey Inc., headquartered in Reynoldsburg, Ohio. “The organizations achieved major milestones last year and each of the three companies operated in the black.

“The AJCA recorded 79,535 animals last year,” Smith reported. “That made 2007 the third-best year in our history and the fourth consecutive year that the association has recorded at least 70,000 animals.

Use of official Jersey performance evaluation programs surged to new heights in 2007. As of December 31, 121,049 cows were enrolled in one of seven programs available from the AJCA, breaking the previous record by more than 8,200 cows.

“REAP continues to grow to its ultimate potential,” Smith continued, “as evidenced by 2007’s numbers: 115,653 cows and 781 herds, both all-time records.”

Linear type evaluation services were delivered to over 60,000 cows for a sixth consecutive year. “Our staff visited 1,010 different herds in 2007 and scored 69,182 cows, second only to the 70,165 cows that were evaluated in 2005.”

The official Jersey lactation average increased to 18,391 lbs. milk, 842 lbs. fat, and 655 lbs. protein. On a Cheddar cheese equivalent basis, average yield is 2,208 pounds. All are new category records, as are the 72,094 lactation records processed by the AJCA for 2007. The lactation average is calculated on a standardized 305-day, twice daily, mature equivalent (m.e.) basis. Actual 305-day yield per cow for 2007 averaged 16,539 lbs. milk, 765 lbs. fat (4.6%), and 591 lbs. protein (3.6%). Actual cheese yield was 1,995 pounds per cow, equivalent to a yield of 12.1 lbs. per hundredweight.

“Dairymen in all parts of the U.S. were looking for, and paying top dollar for quality Jersey cows and close-up bred heifers,” said Smith. “Nationally, the average price paid for Registered Jerseys™ at auction increased by nearly $170 per head to set an all-time record of $2,425.

“According to the National Association of Animal Breeders, domestic sales of Registered Jersey™ bull semen stood at 1.4 million units annually, a 7.4% increase over the previous year and a 130% increase in the past 10 years.

The organization has set 2010 goals of 90,000 registrations and 150,000 cows on performance programs. In the short run, Smith is confident that 800 herds will be enrolled on REAP before the association convenes its annual meeting in late June, and that the total number of cows enrolled on AJCA performance programs will exceed 125,000.


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