World Dairy Diary

PepsiCo-Almarai Joint Venture Acquires Stake in Jordanian Dairy

PepsiCo has announced that the dairy and juice joint venture it formed earlier this year with Saudi-based dairy company Almarai has made its first acquisition.

The joint venture, International Dairy and Juice Limited (IDJ), acquired 75% of leading Jordanian dairy producer Teeba Investment for Developed Food Processing Company (Teeba). The Teeba stake had been owned by Almarai, which acquired it in January 2009 and is transferring it to the joint venture at cost.

Teeba is one of the leading players in the fresh dairy sector in Jordan, with its own dairy farm, and a producer and distributor for a wide variety of other dairy and juice products.

“This is an important step forward in our ongoing effort to build a diversified global portfolio of foods and beverages, addressing consumers’ need for nutrition as well as fun and refreshment,” said Michael White, PepsiCo Vice Chairman and PepsiCo International CEO.

IDJ is held 52% by PepsiCo and 48% by Almarai. It was formed to focus on opportunities in Southeast Asia, Africa and the Middle East, excluding the Gulf Cooperation Council countries, where Almarai already has a very strong presence.

IDJ will identify and develop growth opportunities for a range of high-quality dairy and juice products. The venture will draw on the two partners’ complementary brands and capabilities — benefiting from Almarai’s in-depth knowledge of the dairy industry and PepsiCo’s marketing capabilities and experience as a world leader in juice.

Deferred Payment Loan Now Available for Silage Inoculants

logo_pioneerCustomers of Pioneer Hi-Bred, a DuPont business, now can buy silage inoculants using the Pioneer Deferred Payment Loan program. This program will provide payment options specifically designed for dairy and livestock producers as they face economic challenges. Talk to your Pioneer sales professional for details. If you don’t have an existing line of credit for Pioneer® brand seed purchases, your sales professional can help you apply with PHI Financial Services, Inc., for this new credit program for silage inoculant purchases.

Now more than ever, dairy and livestock producers need to maximize the nutritional value of feed to maximize milk or meat per acre. Inoculants can boost producers’ bottom lines by improving the quality of their silage. Pioneer utilizes industry-leading research, as well as agronomic and nutritional experts, to provide its customers the entire range of seed genetics, crop-specific inoculants including revolutionary Corn Fiber Technology, silage know-how and local service – all dedicated to the goal of producing more nutritious feed supplies.

“It’s a difficult time for the livestock producers, and price volatility is affecting everyone,” says Kyle Whitaker, Pioneer marketing manager – forage additives. “This program offers a way to finance silage inoculant purchases and set up structured loan payments to better coincide with an operation’s income.

“We have four inoculants for corn silage, three for alfalfa silage, three for grass and cereal silage and two more designed for high-moisture corn,” Whitaker says. “This gives growers a wide range of crop-specific product options and flexibility with their inoculant decisions.” The goal is to give producers choices to suit their individual preferences.

Qualified customers can purchase silage inoculants this summer and include those purchases on their existing 2009 Deferred Payment Loan. As an added benefit, the silage inoculant portion of the loan can be moved to the 2010 loan with final payment due June 30, 2010. The seed and crop protection portion of any existing 2009 Deferred Payment Loan is still due on the normal due date, Dec. 1, 2009.

“Customers can set up a payment plan to match their expected income,” Whitaker says. “They must make a minimum of three payments, with the final payment due June 30, 2010. However, they can set up the payments monthly or a number of ways to meet individual financial needs.” After setting up an approved payment schedule, the customer will receive an acknowledgment letter that includes coupons to make payment easier. For an even more convenient option, customers also can schedule electronic payments for their silage inoculants.

Dairyline Markets In Review

DairylineDairy Markets Week in Review

The block cheese price closed the first Friday of June Dairy month at $1.1475 per pound, down a half-cent on the week, and $1.0125 below a year ago. Barrel closed at $1.10, unchanged on the week, but $1.05 below a year ago. 21 carloads of block found new homes on the week and five of barrel. The NASS-surveyed U.S. average block price slipped to $1.1425, down 0.6 cent on the week, and barrel averaged $1.0987, down 0.1 cent.

Butter closed at $1.2525, down 1 1/4-cents on the week, the first decline since mid March, and 22 3/4-cents below a year ago. Twenty nine cars were sold. NASS butter averaged $1.2519, up 1.4 cents. Nonfat dry milk averaged 84.3 cents, up 1.2 cents, and dry whey averaged 24.49 cents, up 0.6 cent.

Cash Grade A nonfat dry milk closed at 90.25 per pound, up a quarter-cent on the week, while Extra Grade held at 87.50.

Price support purchases for the week totaled 4.1 million pounds of nonfat dry milk, pushing the cumulative total to 243.6 million, compared to none a year ago.

Provided courtesy of Dairyline.

June Declared Real California Milk Month

California Governor Arnold Schwarzenegger has officially claimed June Real California Milk Month in honor of national June Dairy Month! Read his proclamation below, and be sure to support your local dairy farmers!

California’s dairy industry has long had a significant role in our economy and agricultural legacy. Our state produces more milk, ice cream, butter and yogurt than any other, and in 2007, dairy products generated a $61.4 billion economic impact in California.

In addition to these benefits, dairy products are also a great source of essential vitamins and minerals, including calcium, phosphorus, riboflavin, vitamin D and vitamin A, as well as protein. These nutrients are vital to a healthy diet and help to build strong bones and teeth and reduce your risk of cancer, obesity, diabetes and heart disease.

The California Milk Advisory Board introduced the Real California Milk seal in 2007 to certify products made exclusively with milk from our Golden State. By purchasing these designated foods, we support our farmers and pump up our economy while receiving tasty and nutritious products. I encourage all Californians to choose these foods this month and all year long, and I am proud to recognize our dairy producers for their fantastic contributions to our state.

NOW, THEREFORE, I, ARNOLD SCHWARZENEGGER, Governor of the State of California, do hereby proclaim June 2009, as Real California Milk Month.

IN WITNESS WHEREOF, I have hereunto set my hand and caused the Great Seal of the State of California to be affixed this 1st day of June 2009.

ARNOLD SCHWARZENEGGER

Nominate an Innovative Dairy Farmer

idfalogoDo you know an innovative dairy farmer? Then, nominate them for the Innovative Dairy Farmer of the Year, an annual award co-sponsored by the International Dairy Foods Association (IDFA) and Dairy Today magazine. The winner will be honored at the 2010 Dairy Forum, January 17-21 at the Arizona Biltmore and Spa in Phoenix. The deadline for nominations is October 2, 2009, and there is no entry fee. Complete award criteria and a nomination form are available here.

The call asks for nominations of active U.S. dairy farms that are improving on-farm efficiency through progressive management practices, production technologies and/or marketing approaches. Nominees will be judged on current methods as well as their positioning to meet future economic and business challenges.

The award recipient will be chosen through a formal judging process that will include agriculture economists, former award winners and Dairy Today editorial staff. The winner will receive an all-expenses-paid trip to the 2009 Dairy Forum to attend a special presentation ceremony held during the program. (Winner will be responsible for all tax liabilities.) Dairy Forum is widely recognized as the most important processor and producer conference of the year for the U.S. dairy industry.

In addition, the winning operation will be highlighted in the January 2010 issue of Dairy Today.

This call for nominations begins the 12th annual competition for the award. The 2009 winner was High Plains Dairy of Friona, Texas. Previous winners were was Mason Dixon Farms, Gettysburg, Pa.; Clauss Dairy Farms, Hilmar, Calif.; Baldwin Dairy/Emerald Dairy, Emerald, Wis.; Si-Ellen Farms, Jerome, Idaho; Pagel’s Ponderosa Dairy, Kewaunee, Wis.; C Bar M Dairy, Jerome, Idaho; North Florida Holsteins of Bell, Fla.; KF Dairy of El Centro, Calif; Joseph Gallo Farms of Atwater, Calif.; and KBC Farms, Purdy, Mo.

Billboard About Milk Study Gets Attention

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Take a look at this billboard, and it’s no shock that it’s catching the attention of passing drivers. A flashy sign, a law suit and a questionable study…This is certainly an interesting story that should spark some dialogue on this blog. Let me know what you think.

Bill Gehm, a partner in LR Gehm, LLC, a manufacturer of milking equipment based in Lisle, filed a lawsuit against Cornell University last summer, alleging that the university is disseminating false information about one of its products. In preparation for Cornell graduation two weekends ago, he propped up the billboard facing east to meet families traveling to Ithaca. Mid-way through the weekend, he turned it around to meet travelers on their way out of Tompkins County.

It got plenty of attention, he said, with some folks stopping to take pictures or ask him about it. The sign includes a Web site about his conflict with Cornell, stemming from a study in which Cornell researchers claimed his product doesn’t do what he says it does.

The study, published in the Journal of Dairy Science in March 2000, states that while rates of intramammary infections did not vary significantly among cows, no new cases of one particular bacteria, Staphylococcus aureus, were found in cows milked by CoPulsation. The study’s conclusion was that “these results support previous studies, which have found that except for complete failure of pulsation, differences in pulsation characteristics apparently have little effect on milking and udder health.” Therefore, the system provides no benefit, though it was not found to do harm.

To read the entire article, link to Liz Lawyer and Kate Hill’s article in the Ithaca Journal.

Dairy Producers Participate in Largest-Ever Buyout

2009_june_3_4 The pressure increases on dairy producers with high environmental and water costs and low prices in the grocery stores. Ching Lee at the California Farm Bureau Federation writes about the largest dairy cattle buyout in history. (Photo provided by California Farm Bureau Federation)

To help temper the nation’s milk supply and strengthen prices for dairy farmers, the National Milk Producers Federation is moving forth with its largest herd retirement to date, removing more than 100,000 dairy cows and 2 billion pounds of milk from the market.

This latest round of herd retirement comes amid one of the toughest years for the nation’s dairy farmers, who have been struggling with plunging milk prices, high production costs and a global recession that has dried up domestic and export sales of dairy products, said Jim Tillison, chief operating officer of the Cooperatives Working Together herd retirement program, which the NMPF administers.

Seventy-nine percent of the nearly 103,000 cows to be removed will come from the Western and Southwestern regions of the United States, while 60 percent of the farms selected are located east of the Mississippi River, according to CWT. Eighty-one percent of the milk removed will come from those two regions, a portion slightly higher than in the six previous CWT rounds.

To read the entire article, link to the California Farm Bureau Federation.

McDonald’s Partnership Helps Boost Milk Sales

mccafeOne more dairy checkoff story to share tonight – and it’s definitely the best one! If you’ve been to or even near a McDonald’s® restaurant in the last few weeks, you’ve heard about the new McCafe® specialty coffee drinks. But as a dairy farmer, did you know that these specialty coffee-house drinks consist of up to 80 percent milk?

McDonald’s has officially launched the McCafe coffee line at the chain’s nearly 14,000 restaurants nationwide. Dairy producers, through their checkoff investment, are partnering with McDonald’s to increase milk sales through the new beverages.

“The dairy checkoff’s long-standing partnership with McDonald’s — the world’s largest quick-serve restaurant chain — helped increase single-serve milk sales among kids and adults,” said Paul Rovey, Arizona dairy producer and chair of Dairy Management Inc.™, which manages the national dairy checkoff. “We are now growing this relationship to focus on short- and long-term innovation to help develop specialty coffees, a market that relies heavily on fluid milk and has grown 84 percent over the past five years, according to NPD CREST.”

This month, McDonald’s launched a campaign aimed at boosting McCafe espressos that will thereby boost milk sales. In total, McDonald’s invested more than $1 billion in store remodeling and equipment costs, and $100 million a year in advertising and marketing support for the new beverages.

Dairy producers, through the dairy checkoff, supported the McCafe launch by:
· Providing consumer data and insights on milk and specialty coffee
· Assisting McDonald’s on the introduction of specialty coffees and nationwide sampling efforts to build local awareness of McCafe espresso beverages

“This is just the beginning,” Rovey said. “The dairy checkoff is entering into a longer-term agreement with McDonald’s that could lead to new milk and dairy menu options, including yogurt smoothies, espresso drinks, new cheeseburgers, and new single-serve, flavored milk options.”

Iowa Puts the Call Out to Celebrate Dairy Farmers

isda_logoAttention all folks living in Iowa! Did you use milk on your cereal, cheese on your salad, or yogurt as a snack today? Then, the Iowa State Dairy Association (ISDA) invites you to celebrate Iowa’s dairy industry as part of June Dairy Month! Did you know that Iowa is home to nearly 2,000 dairy farms and more than 216,000 dairy cows? According to the USDA, each Iowa dairy cow produces nearly 20,000 pounds of nutritious, high quality milk per year and in 2008, Iowa milk production totaled 4.3 billion pounds.

“June Dairy Month is a great time to recognize all that Iowa’s dairy farmers do for you,” says Wayne Dykshorn, ISDA president. “The dairy industry is essential to Iowans in many ways. Consuming dairy products is important for people of all ages in order to maintain good health and much of the dairy products we Iowans consume every day come from Iowa’s own dairies.

According to the USDA, Iowa’s dairy industry provides approximately 26,000 jobs; which includes not only jobs on dairy farms and in dairy processing plants but many other services that aid the dairy industry. More than $1.5 billion is contributed annually to Iowa’s economy by the dairy industry.

Batter Up!

boysbaseballAttention dairy farmers in the Mid-Atlantic region! Do you and your family like baseball? Then you are in luck! The Mid-Atlantic Dairy Association and Pennsylvania Dairy Promotion Program invite Mid-Atlantic dairy farmers and their families to Dairy Nights at local ballparks. Mid-Atlantic dairy farmers will receive an invitation and additional information in the mail.

“Dairy Nights are a great way to thank our dairy farmers for their hard work and their support for dairy checkoff,” said Cindy Weimer, director of industry image and relations for Mid-Atlantic Dairy Association.

The ballpark promotions, which will include a pre-game picnic and tickets to the game, offer Mid-Atlantic dairy farmers a chance to enjoy good food, fellowship with other dairy farmers and a chance to learn more about their local dairy promotion programs.

Following is a schedule of picnics and games:

• Harrisburg Senators – Sunday, July 12 • Pre-game picnic at 12:30 p.m. • Game time, 2 p.m.
• Delmarva Shorebirds – Thursday, July 16 • Pre-game picnic at 6:30 p.m. • Game time, 7:05 p.m.
• Erie SeaWolves – Wednesday, July 22 • Pre-game picnic at 5:45 p.m. • Game time, 7:05 p.m.
• Altoona Curve – Thursday, July 23 • Pre-game picnic at 6 p.m. • Game time, 7:05 p.m.
• Washington Wild Things – Thursday, Aug. 6 • Pre-game picnic at 5:30 p.m. • Game time, 7:05 p.m.

Quick Dairy Facts

uofilogo In the spirit of dairy month, it’s time to gear up with dairy facts and start talking with the consumers. Despite rumors that low dairy prices may “sour” dairy month, it’s increasingly important to remain positive and work towards raise demand for dairy products. According to the University of Illinois, consumers annually indulge on:

-20.7 gallons of milk
-31.9 pounds of cheese
-21.2 pounds of ice cream
-4.4 pounds of butter

I think those numbers are pretty interesting, but you might need more than that in a typical conversation with a consumer. Here are a few more facts that might pique the interest of the folks in your community:

Did you know there are dairy farms in all 50 states in the United States?
Did you know vanilla is America’s favorite ice cream and cheddar is America’s favorite cheese?
Did you know there are more than 1000 new dairy products are introduced every year?

For more quick dairy facts, link to University of Illinois Extension.

Hispanic Cheese Becoming Popular in America

pr_5lbfrescoHave you ever tried Hispanic-style cheeses known as Queso Fresco or “fresh cheese?” It is one of the most commonly used ingredients of Hispanic foods, and it is becoming increasingly popular on American tables. It has a soft, mild flavor and firm but creamy consistency that puts it somewhere between ricotta, mozzarella, and white cheddar.

Castro Cheese Company is a leading manufacturer, marketer, and distributor of Hispanic cheeses and creams. The company markets its products under the “La Vaquita”(R) brand. Check out the company’s website to learn more about the different Hispanic cheeses available!

“Queso Fresco contains less calories, fat and cholesterol than other cheeses such as Cheddar, Mozzarella, or processed cheese products like Velveeta(R) while providing the recommended daily calcium intake,” said Elizabeth Castro, VP of Sales and Marketing at Houston-based Castro Cheese Company. “It’s an excellent option for those who want or need to reduce weight.”

Hispanic cheese is one of the fastest growing food categories in the United States. Production jumped about 183% percent from 1996 to 2008, according to U.S. Department of Agriculture’s National Agricultural Statistics Service.

FAO Dairy Scheme Boosts Farm Incomes

220_246510200w300There’s not so many feel-good stories coming out of Afghanistan these days, and even fewer about life getting better for women there. But Food and Agriculture Organizations of the United Nations (FAO) has one to tell.

A dairy project started by FAO in Kabul and four Afghan provinces: Logar, Wardak, Mazar and Kunduz, has proved so successful that the 1,600 farming families taking part have seen their incomes increase fivefold, from $130 to $650 a year. And as it’s women who do most of the work involved, they keep 95-percent of the money.

The project started in 2003 with German funding and its success is built on a number of integrated elements such as improved fodder, access to artificial insemination or breeding bulls, improved veterinary services and better organization.

“That plus a lot of hard work,” says Tony Bennett, FAO’s Dairy Officer. “Starting from scratch we helped them increase their milk production to 10,000 litres a day.” The approach is now known as the Integrated Dairy Schemes (IDS).

FAO experts showed the farmers how to organize themselves into cooperatives that collect the milk and provide veterinary and animal husbandry services for their members. The cooperatives also operate processing plants which pasteurize milk and process it into products such as yogurt, fermented milk, butter and ghee (clarified butter) and run retail counters in the main cities. Farmers thus have a guaranteed outlet for their produce.

Dairy farmers and their families are not the only ones benefiting. While many more Afghanis now have access to fresh, healthy milk products, the success of the dairy schemes has also made it much more profitable for farmers to grow fodder/seed such as lucerne, which can return profits of $900 per ha, perhaps even competing with illicit crop production.

Although local demand for fresh milk products is high, security problems, particularly in the south of the country, limit how fast the project can grow. But last year the Italian Government came forward with $2 million to expand activities into Herat Province, and IFAD (International Fund for Agricultural Development) and the World Bank are also stepping forward with large programmes to expand the IDS project concept.

The dairy initiative is part of larger FAO efforts to help revitalize Afghanistan’s war-battered agricultural economy. Says Tekeste Tekie, the local FAO Representative, “Increasing farmers’ incomes from cereal crops, horticulture and dairy produce can, in the long-term, offer a viable alternative to poppy cultivation.”

Animal Antibiotics, Resistance and Human Health

dairy-logo Adam Anson, from TheDairySite, recently wrote an interesting article on use of antibiotics in animals, antibiotic resistance and how it relates to human health. This thorough report deals with both sides of the issue in an educational platform that reminds all of us just how far the agriculture industry has come.

Antibiotics are a vital component to rearing healthy livestock, but many researchers argue that mismanaged use is having a detrimental effect on the industry. When antibiotics were first introduced back in the 1930′s they had an instant and momentous impact on life. Nowadays, it is easy to take the use of these drugs for granted and their importance can be overlooked. They haven’t only helped humans live longer, healthier lives, but they have also been used for the same effect on livestock. Consequently, the meat and animal products which we consume are safer as well.

Farmers have benefited from the advantages of higher outputs as healthier animals put on more weight. Inputs have also been reduced, not only through feed, but also space. Whether it is deemed for better or for once, antibiotics have enabled farmers to restrict the space and movement of livestock whilst keeping their health at an optimum. Without antibiotics intensive livestock systems may never have become a lucrative form of trade.

Link to TheDairySite to read about the long debate and who to believe. Come to your own conclusions, and don’t forget to leave your thoughts for discussions on World Dairy Diary!

Export Incentives for Dairy Products

Dairy producers should keep a watchful eye on the new provisions Secretary Vilsack is making on the Dairy Export Incentive Program, with allocations of 68,201 metric tons of nonfat dry milk; 21,097 metric tons of butterfat; 3,030 metric tons of various cheeses and 34 metric tons of other dairy products, as well as individual product and country allocations will be made available through Invitations for Offers. Country and region quantities may be limited by the invitation. More information can be found at Southwest Farm Press.

vilsack_tom_ag_secretary_crop-300x0 Agriculture Secretary Tom Vilsack has begun implementing provisions of the Dairy Export Incentive Program, partly in response to the reintroduction of direct export subsidies by the European Union earlier this year.

Vilsack announced the allocations under the program for the July 2008 through June 30, 2009 period. The allocations, which are allowed under World Trade Organization rules, are designed to help U.S. dairy exporters meet prevailing world prices in areas where U.S. dairy products are not competitive due to subsidized dairy products from other countries.

“These allocations illustrate our continued support for the U.S. dairy industry, which has seen its international market shares erode, in part, due to the reintroduction of direct export subsidies by the European Union,” said Vilsack.

Congrats to Youth Dairy Promoter, Brittany Arnold!

brittany-arnold I would like to extend many congratulations to Brittany Arnold, the recent crown winner of the Frederick County Dairy Princess contest in Frederick, MD. Arnold is a sophomore agriculture education student, who is incredibly passionate about the dairy industry. Arnold will compete along with other regional princesses for the title of Maryland Dairy Princess at 7:30 p.m. July 15, at the Francis Scott Key Holiday Inn in Frederick . (Photograph courtesy of photography Sam Yu)

For all past and present dairy promoters, what did you like about your time serving the dairy industry? What did you learn? What can be done to encourage the next generation to get involved in dairy production and promotion? What are your thoughts? The Frederick News-Post released an article about Arnold titled, Young educator takes on new role as dairy promoter, and here are the highlights from the story…

As part of the competition, Arnold presented a skit, based on “The Wizard of Oz,” she will use to educate the public about the industry during her reign. As Dorothy, she carried Betsy the cow as she traveled down the Yellow Brick Road of cheese. Instead of Oz, Arnold found herself in Dairyland, where she said rivers of chocolate milk flowed and rose petals were made of butter. Arnold explained the path milk takes from farm to tank to truck to plant, and the processes the beverage undergoes to ensure its safety.

In her various roles as a dairy promoter, she has visited various schools and child care centers with her dairy animals, given milk toasts touting the beverage at meetings and events and presented speeches at her school, Penn State University, on the importance of the dairy industry.

“I don’t think I’ll ever stop preaching that chocolate milk does not come from brown cows,” she said.

Cheers to Day One of Dairy Month!

junedairylogo Today is June 1, and I probably don’t have to remind any of you that today launches the first official day of June Dairy Month. In honor of this celebratory month, I found an interesting column written by Roxie Rodgers Dinstel in the News Miner that is worth highlighting. The column is titled, June is dairy month, so drink milk for your health, and while it notes the benefits of milk, it also provides some great ideas for summer dairy treats just for kids. Enjoy!

Raise a glass of ice-cold milk and toast the dairy farmers across America who make it possible to enjoy an abundance of fresh, dairy-licous products like milk, cheese and yogurt, every day. Besides the great taste, three servings of dairy provide calcium and eight additional nutrients that help keep bones strong and bodies fit.

Milk is big business today in many nations, particularly those in Europe and North America. Thirty-five countries produce 85 percent of the world’s supply. Cows are major sources of milk, although the milk of sheep, goats, horses, water buffalo, camels, donkeys, reindeer and llamas also is consumed by humans. We all drink milk, eat cheese and dine on yogurt. But sometimes, it can be just a little boring. Here are three ways to make your dairy more fun.

Link here for cool ideas for summer dairy treats using yogurt, pudding and of course, ice cream!


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