Four California milk marketing cooperatives have signed an agreement to work together to market their milk and dairy products in the state. The announcement came from California Dairies Inc. in Visalia, Calif.
The cooperatives have agreed to immediately begin to identify operational inefficiencies, especially in milk transportation, to address what they call the “short-term dire financial crisis” facing California dairymen.
The group concluded that more information is needed regarding the ramifications of dairy imports and exports on the efficacy of a mandatory supply management proposal that several dairy industry organizations are promoting. The Task Force also recognized the critical importance of evaluating the unintended consequences that could result from the implementation of such a program. The Task Force further agreed to examine a plan to reform the Federal Milk Marketing Order program by eliminating make allowances.
Reflecting a desire to review the most current and complete information available on the impact of globalization on the domestic market, the Task Force was presented with a major research report, conducted by Bain and Company, of how the U.S. dairy sector currently fits into the global dairy system, and how that role may change in the future depending on the course of action taken by the domestic industry in the coming years.
“There is strong interest on the part of our Task Force in making dramatic and positive changes in milk pricing so that we don’t have to find ourselves in the same position again in the future,” said Jerry Kozak, President and CEO of NMPF. “Because the stakes are so high, we want to be certain that we have fully explored all the consequences of any actions that we recommend, such as how the position of the U.S. dairy business may evolve over time compared to our competitors in other countries.”
The Task Force heard detailed analyses of the so-called price stabilization plan, being promoted by the Holstein Association USA and other groups, by Dr. Chuck Nicholson of Cornell University, and Dr. Richard Sexton of the University of California-Davis. Each economist offered his perspective on how that supply management program would be implemented, affect farm-level prices, and alter the flow of both imports to, and exports from, the U.S. market.
“We recognize that the proposals the Task Force is reviewing won’t relieve the current pain and suffering on dairy farms across the country. However, the severity of the present situation raises the stakes for our effort, and strengthens the resolve of our group to make certain we are as thorough as possible in suggesting changes in future dairy policy,” Kozak said.
While the NMPF Strategic Planning Task Force is focused on future changes in milk pricing, Kozak said that NMPF is continuing to take short-term steps to help improve the pricing situation. This includes having Cooperatives Working Together (CWT) conduct its second-largest ever herd retirement round in August and September, and continuing to work with the U.S. Department of Agriculture to implement corrective improvements, such as the recent increase in the dairy product price support program.
The U.S. Department of Agriculture has published a final rule reaffirming that milk may be sold anytime, anywhere in all schools participating in the National School Lunch Program. The rule bans any school policies or procedures that attempt to restrict the sale or marketing of fluid milk in a la carte lines, vending machines and concession stands at school-sponsored events.
The International Dairy Foods Association and the National Milk Producers Federation worked together five years ago to have Congress include the “anytime, anywhere” provision in the 2004 Child Nutrition Act. USDA issued an interim final rule in November 2005 to carry out the provision.
Before that, milk processors’ efforts to offer milk to students beyond the cafeteria lunch line often were hindered by school contracts with soft drink companies. These contracts included exclusivity clauses, which restricted sales and marketing of milk, as well as other beverages.
“IDFA applauds USDA for finalizing the rule prohibiting restrictions on milk sales in schools,” said Michelle Matto, IDFA assistant director of nutrition and labeling. “By eliminating restrictions on when or where milk can be sold, schools can encourage students to drink more milk and consume more of milk’s essential nutrients.”
Accelerated Genetics is excited to announce a multilingual addition to it’s website! A full Spanish version of the site is now available.
Mirroring the English version of the Accelerated Genetics website, the Spanish version is catered to make it more convenient for Spanish Speakers to find what they are looking for. Spanish speaking employees, dealers, and producers alike will be able to get news, data, and key information faster and easier. More videos for dairy sires and also training on Farm Products will also be coming in the near future to the Accelerated Genetics website.
The Senate tonight voted 60 to 37 for an amendment to provide an extra $350 million for milk price supports to increase government purchases of surplus dairy products. Senator Arlen Specter (D-Pa.) cosponsored the measure introduced by Sen. Bernie Sanders (I-Vt.).
The extra $350 million would provide farmers, on average, an estimated $1.50 extra per hundredweight, the industry’s standard unit of measurement and help farmers as they cope with the lowest prices in nearly four decades.
“The dairy farmers of Pennsylvania and the nation are receiving record-low prices for their products – prices that we have not seen since the late 1970’s,” Senator Specter said in a speech on the Senate floor. “I am pleased my colleagues have recognized the importance of adopting this amendment to give some much-needed relief to dairy farmers.”
“Family-based dairy agriculture is on the verge of collapse,” Senator Sanders told colleagues in a Senate floor speech. “This is not a regional issue. This is a national issue. From the east coast to the west coast, what we are seeing is prices plummeting below the cost of production. If Congress does not act, all over America rural communities are going to be suffering economically.”
The increase in the Farm Service Agency budget to more than $1.6 billion would allow the U.S. Department of Agriculture to raise the support price for nonfat dry milk from $.92 per pound to $.97 per pound. The price farmers receive for their milk has bottomed out over the last year, plummeting 41 percent to $11.30 per hundredweight. It costs farmers about $18 per hundredweight to produce milk.
This measure comes on the heels of a roundtable Senator Specter hosted in Washington, D.C. on July 22nd with various stakeholders from Pennsylvania to discuss challenges facing the dairy industry with USDA Undersecretary Jim Miller.
The Purebred Dairy Cattle Association has just released its newly revised Dairy Cow Unified Scorecard. The scorecard was first established in 1943 and has had four previous revisions, the latest in 1994.
This, the sixth edition, will feature many improvements including increased emphasis on traits and characteristics associated with a longer productive life, anatomical functionality, and industry management trends in housing systems and animal welfare. The new scorecard also includes breed characteristics for the most recent breed member, the Red and White.
Key changes include balancing the cow’s dairy and strength characteristics, making movement and locomotion a priority in feet and leg evaluation, and reducing the value placed on stature.
According to Ted Halbach, chairman of the scorecard revision committee, “There are several significant changes. Dairy character and body capacity are combined to create dairy strength with a 25 percent weighting, rear feet and legs receive more weight, each breakdown has traits listed in priority order with a point value for each trait, and breed exceptions to specific traits are listed under breed characteristics.”
The Purebred Dairy Cattle Association, Inc., is a federation of the seven national dairy breed registry associations serving breeders and owners of Ayrshire, Brown Swiss, Guernsey, Holstein, Jersey, Milking Shorthorn, and Red and White dairy cattle. PDCA and its member organizations promote the added value and profitability of registered dairy cattle.
You can find a series of Dairy Producer Short Courses from our sponsor, Fort Dodge Animal Health, online. I’m going to feature some summaries of them here for you.
In this first one the topic is BRSV (Bovine Respiratory Syncytial Virus) which Fort Dodge calls the “stealth disease” of dairies.
BRSV typically hits young calves hardest. Its microscopic lung lesions stimulate the system to release the same chemical that causes your nasal passages to swell in response to a cold — which similarly swells the lung lining and traps body fluid until, in effect, the calf drowns. Even when calves escape that fate, BRSV may suppress their immune system and leave enough tissue damage to set up the ideal environment for bacteria like Pasteurella and Mannheimia to finish them off.
Fort Dodge offers Pyramid, a one-dose option for BRSV protection. You can read more about this disease in their full short course publication (pdf).
The Pennsylvania Center for Dairy Excellence is offering dairy producers ways to plan financial strategies for the next six months from two nationally-known financial advisors – Dr. David Kohl and Gary Sipiorski – during two “Mastering the Dairy Business” conference calls hosted by the Center for Dairy Excellence.
Kohl, professor emeritus from Virginia Tech, will lead a call on Wednesday, Aug. 26, from noon to 1:30 p.m., and Sipiorski, a 17-year veteran in the banking industry and regular columnist for Hoard’s Dairyman, will lead a call on Tuesday, Sept. 29, from noon to 1:30 p.m.
“The conference calls provide useful, timely information for our state’s dairy producers,” said John Frey, executive director of the Center for Dairy Excellence. “These next two calls in particular will be unique opportunities to hear from two well-respected, nationally-known experts who have a broad understanding of dairy finances.”
Kohl will address the volatile economic environment and discuss short- and long-term factors impacting dairy profitability, by providing insight into the viability of the dairy industry. He will share the “nuts and bolts” of making a dairy farmer more bankable, or capable of receiving credit. Kohl has traveled more than seven million miles in his professional career and has energized a variety of agricultural audiences with his keen insight in more than 5,000 workshops and seminars.
During the call on Sept. 29, Sipiorski will address the impact of the worldwide recession on the dairy industry and explain what happened to milk prices and what needs to happen for price recovery. He will also recommend financial measures dairy producers should take now, and how to prepare for the rebound in milk prices.
Sipiorski joined Vita Plus in 2008, after spending 17 years with the Citizens State Bank of Loyal, Wis., where he worked primarily with dairy producers. He serves on an advisory committee on agriculture and industry for the Federal Reserve Bank of Chicago, and is a columnist for Hoard’s Dairyman.
Registration is required to participate in either call, and participation is on a first-come, first-served basis. To register, call 717-346-0849 and specify the date of call, name, phone number and e-mail address. To ask specific questions to be answered during the conference call, please e-mail the questions to the Center for Dairy Excellence at info@centerfordairyexcellence.org. Once registered, participants will receive the call-in number and code.
In these difficult economic times, (DBA) says only market-based solutions will solve the problem of low milk prices over the long term. Supply management, milk quota system, high guaranteed minimum prices, government cow buyouts, more MILC, and even a moratorium on large farms have all been proposed by groups seeking short-term relief. Supply management is not acceptable for world trade agreements and other countries who have previously tried these types of approaches have failed. These ideas will eventually lead to a nation of producers who depend on government to survive. Government intervention merely shifts the problem into the future.
“Setting a milk price floor of $18/cwt is illogical and would cause taxpayers to drown in a sea of milk,” said Jim Mlsna, DBA Vice-President. “All Wisconsin producers regardless of size are feeling the pain, but quick fixes may make the problem worse.”
Market forces have always influenced the price of milk and, in recent decades, these forces are coming from around the world. “Gone are the days when the main factor driving milk prices was the weather’s impact on the feed in the county the milk was bottled in,” stated Laurie Fischer, DBA Executive Director. “Our members understand that they are producing a commodity in a global market. They are doing the best they can to reduce their cost of production and hope they have enough equity and good lenders to allow them to weather this challenge.”
Some say we are producing too much milk, but many Wisconsin cheese makers continue to be looking for additional milk. “Dairy producers are facing a difficult downturn in milk prices brought by a weak global economy,” said John Umhoefer, Executive Director of the Wisconsin Cheese Makers Association. “Over-production or a growth in farm size is not the core issue, as national milk production has contracted in recent months. Wisconsin dairy producers are uniquely positioned to thrive when this cycle turns and prices improve. A decade of modernization on farms and market/brand building by Wisconsin’s cheese industry has positioned our state’s producers to profit as the global economy improves. Wisconsin’s demand for fresh farm milk continues to exceed supply, assuring long-term multiple markets for our state dairy producers.”
DBA continues to evaluate every proposal it learns of to address low farm milk prices. Having a low cost of production, adequate equity, and the prudent use of risk management tools appear to hold great promise for successfully competing in the dairy industry for years to come.
Congrats to the 11 dairy students who received scholarships from the Iowa Division of Midwest Dairy Association! The 2009 Educational Awards program is an annual initiative to assist dairy farm families with college expenses. The organization awarded $7,000 in scholarship money to students in Iowa this year. Scholarship applicants are evaluated on their participation in leadership and academic activities, reference letters, personal essays and involvement in the dairy industry.
“Dairy producers support the national checkoff program striving to increase sales and demand for dairy products and the youth striving to obtain more education,” said Joe Lyon, Toledo, Midwest Dairy Association’s Iowa Division chairman. “The scholarship program is a way for producers to show that support.”
This year’s winners are as follows:
* Kala Barre, daughter of Richard and Joyce Barre of Ottumwa and attending Iowa State University pursuing a degree in early childhood education with a minor in psychology;
* Celia Bruning, daughter of David and Elitha Bruning of Red Oak and attending Southwestern Community College pursuing a degree in nursing;
* Kristy Demmer, daughter of Rick and Kathy Demmer of Peosta and attending Loras College pursuing a degree in sports science with a minor in psychology;
* Jessica Hermsen, daughter of Gary and Nancy Hermsen of Masonville and attending Iowa State University pursuing a degree in public service and administration in agriculture with a double minor in Spanish and dairy science;
* Jill Jessee, daughter of Olan and Ardis Jessee of Fonda and attending Simpson College pursuing a degree in math with a minor in secondary education;
* Justin Liddle, son of Loren and Kathy Liddle of Tripoli and attending Wartburg College pursuing a degree in education.
* Kari Lien, daughter of Gary and Patty Lien of Calmar and attending University of Northern Iowa pursuing a degree in communications;
* Jacob Manternach, son of Chris and Sharon Manternach of Hopkinton and attending Northeast Iowa Community College pursing a degree in dairy science;
* Justin Mardorf, son of Les and Linda Mardorf of Hopkinton and attending Iowa State University pursuing a degree in agronomy;
* Aaron Palmer, son of Greg and Marlene Palmer of Waukon and attending Iowa State University pursuing a degree in agricultural business with a minor in general business; and
* Michael Till , son of Allan and Karen Till of Maquoketa and attending University of Wisconsin Platteville pursuing a degree in dairy science, agriculture management and real estate.
Oberweis Dairy, Illinois, has announced that despite the current recession, the company is ramping up its hiring to build a large team of direct salespeople. The company is hiring approximately 100 direct sales representatives to grow its home delivery business.
“We hope to pair a lot of people who need work with our need to get our message out to consumers,” said Joe Oberweis, 4th generation family member and the company’s president. “Even in this tough economy, consumers still demand high quality food products, especially when it’s for their kids. And there’s no higher quality milk than Oberweis. So we’re going to take our message face-to-face, and that takes people. This is a win-win.”
The company’s win-win scenario provides benefits to people who join the team full-time and the opportunity for substantial earnings based on each person’s performance. “In a market where many people need jobs to feed their families, we’re happy to adjust our strategy to fulfill that need and simultaneously help grow our business. This is good news for everyone,” said Lino Carrillo, the company’s vice president for home delivery sales. “It’s certainly not free money, but it’s an opportunity when very few are available today.”
The company is redirecting funds previously invested in other non-advertising marketing efforts to build a team of people to talk directly to consumers. Positions are available in the following metropolitan areas: Chicago, St. Louis, Indianapolis, Milwaukee, Detroit, and Norfolk, Va. Interested candidates should contact the company via e-mail at salesjobs@oberweis.com.
Having been started on a dairy farm nearly a century ago, Oberweis Dairy focuses on making the best-tasting milk and ice cream available anywhere. The company is famous for milk in its trademark glass bottles as well as its best-in-class smooth and creamy ice cream. The company distributes its products through its 48 ice cream and dairy stores, to thousands of homes through its home delivery service, and through grocery stores. Oberweis is family owned and operated, currently by the 3rd and 4th generations.
The cash cheese market added more strength the first week of August, the fourth consecutive week of gain. Block cheese closed Friday at $1.31 per pound, up 2 1/2-cents on the week and the highest it’s been since late February, but that’s still 45 3/4-cents below a year ago. The blocks are now trading at the government’s new temporary support price.
Barrel closed Friday at $1.29, up 3 cents on the week, 43 cents below a year ago, and a penny above support. Fourteen cars of block traded hands on the week and only two of barrel. The NASS-surveyed U.S. average block price inched up 1.2 cents, to $1.1318, while barrel jumped 3 1/2-cents, to $1.1602.
Cash butter closed Friday at $1.23, down a penny and a half on the week, and 42 cents below a year ago. Twenty six cars were sold this week. NASS butter averaged $1.2246, down 0.4 cent.
Cash Grade A nonfat dry milk closed Friday at 98 cents per pound, up 7 cents on the week, while Extra Grade remained at 90 cents. The new temporary support price on nonfat dry milk is 92 cents. NASS-surveyed powder averaged 84.13 cents, down 0.9 cent, and dry whey averaged 29.61 cents, up 0.1 cent.
Price support purchases for the week totaled 892,394 pounds of nonfat dry milk. Dairy Export Incentive Program (DEIP) bid acceptances for the week included 826,725 pounds of butter to Africa and the Middle East and 2.2 million pounds of nonfat dry milk to Asia and Eurasia.
America’s Heartland took a trip to a dairy facility that is making a huge effort on behalf of America’s dairy producers. This positive YouTube video really helps explain a dairy farm’s story. From Grass to Glass, Check out this video!
On our travels throughout the heartland weve visited small farms, big farms, and really big farms. But there are some that, in size anyway, simply defy classification.
Posted: August 6, 2009 at 4:05 pm
By Cindy Zimmerman
The most important thing a quality inoculant can do is maintain or retain more of the forage that is put in a bunker. Paul Porter, Pioneer dairy specialist, says that improvement in dry matter recovery can add up to some substantial dollars.
AgUnited For South Dakota has helped sponsor open houses for community members to tour local dairy farms. These outreach programs help educate neighbors about dairy production, while celebrating the work of dairy farmers. In the past two events, more than 500 people attended and ate lunch at the Moonlight Dairy open house near Alcester, and more than 750 attended the open house at Oaklane Colony near Alexandria. What a fantastic way to promote dairy!
To take part in upcoming dairy tours, check out information provided at AgUnited for South Dakota. Salas Dairy is the next stop on the list on August 15, 2009 in Parker, S.D. That will be followed by Hilltop Dairy on August 29, 2009 in Elkton, S.D. If you’re in the area and want to take part, everyone is welcome! Enjoy a good lunch, tour the dairy, learn more about dairy production in South Dakota and the importance of dairy in your diet! Sounds like an exciting day to me!
Cooperatives Working Together announced today that it has tentatively accepted 294 bids in the third herd retirement it has conducted in the last nine months. The 86,710 cows and 1.8 billion pounds of milk accepted in this round, combined with CWT’s previous two herd retirements, equal a total production capacity of 4.8 billion pounds of milk being removed since December 2008.
This is the second-largest herd retirement since the farmer-funded self-help program started in 2003. The previous retirement round completed in July removed a record 101,000 cows and 1.96 billion pounds of milk.
“These two summer 2009 herd retirements, combined with the USDA’s recent price support increases, should result in very positive movement in dairy farmers’ milk prices,” said Jerry Kozak, President and CEO of NMPF, which administers CWT.
Farmers in 38 states submitted a total of 312 herd retirement bids last month to CWT. This eighth CWT herd retirement in the past six years was also the first to feature a maximum acceptable bid threshold of $5.25 per cwt. It was also the quickest herd retirement following a previous round, which is an indication “that there is still an interest on the part of our members to use CWT to remove more cows, even though the program has been very active in 2008 and to date in 2009,” noted Kozak. This round is removing 3,104 bred heifers.
Starting next week, CWT field auditors will begin visiting the 294 farms whose bids were accepted, checking their milk production records, inspecting their herds, and tagging each cow for processing. All farmers will be notified no later than August 31, as to whether their bid was among those accepted.
“Outdoor activities like camping and hiking are excellent ways for your family to get lots of exercise and fresh air,” Sara Wing, Registered Dietitian and Health & Education Programs Manager for Cabot Creamery Cooperative says. “But even away from home, there’s no need to load up on junk foods and unhealthy beverages when you can carry healthy treats in your backpack and cook healthy meals while on the trail or camping.”
Cabot’s individually wrapped, three-quarter ounce, 50-percent reduced fat cheddar bars are the ideal snack for hikers and campers. These energy boosters are high in protein, low in fat, and easy to carry on the go.
“One of my favorite recipes for camping, hiking or RVing,” Wing says,” is Cabot’s Cheesy Tortilla Rolls; they’re healthy and easy to make. You don’t need a lot of cooking gear or utensils, and there’s not a lot of cleanup involved when you’re done. That’s something anyone enjoying the great outdoors will appreciate.”
Cheesy Tortilla Rolls
Makes 2 servings
3 tablespoons fat-free cream cheese, softened
2 tablespoons tomato salsa
1 (10-inch) flour tortilla
1/3 cup Cabot 50% Reduced Fat Jalapeno Cheddar, grated
1 tablespoon minced green onion, green part only
1 tablespoon chopped fresh cilantro
1. In small bowl, stir together cream cheese and salsa. Spread cream cheese mixture over tortilla.
2. Sprinkle evenly with cheese, green onions and cilantro. Roll up tightly. Slice in half diagonally.
Saputo Cheese USA Inc. plans to close its plant in Fond du Lac, Wis. by the end of the year, leaving 39 employees without jobs. Layoffs are expected to occur no later than Dec. 31, according to a plant closing notice filed Monday with the Wisconsin Department of Workforce Development. The decision is part of the company’s effort to improve overall operational efficiency, according to the notice. The Saputo plant produces blue cheese, mozzarella sticks and condensed whey products.
New evidence suggests that children who consume dairy products may have a lower mortality rate compared with those who do not, according to research to be published in the journal Heart. A 65-year follow-up of a study into the eating habits of families carried out in the 1930s found that dairy products and a diet high in calcium made a difference to how long people lived.
“My father used to say milk was the only true, natural drink,” said Eifion Huws, dairy committee chairman at the Farmers Union of Wales.
In one of the first studies, in 1937-39, the food consumption of children from 1,343 families in England and Scotland were assessed from seven-day household food inventories. The data came from the Carnegie (“Boyd Orr”) survey of diet and health in pre-war Britain.
Now researchers in Bristol and Brisbane, Australia, have carried out a 65-year follow-up study to discover what happened to 4,374 of these children between 1948 and 2005. By 2005, 1,468 (34%) of them had died, including 378 deaths due to coronary heart disease and 121 deaths due to stroke. The researchers looked at two main causes of deaths – stroke and cardiovascular disease.
While warning that other factors may play a part, such as socioeconomic differences, they concluded: “Children whose family diet in the 1930s was high in calcium were at reduced risk of death from stroke.
“Furthermore, childhood diets rich in dairy or calcium were associated with lower all-cause mortality in adulthood.”
Another recent review, in the Journal of the American College of Nutrition, made similar findings. It found that dairy products conferred an “overall survival advantage” against vascular disease, diabetes and cancer.
Judith Bryans, of the Dairy Council, said the findings were clear: people who are well nourished will be healthier.
“It has long been known that calcium plays an essential in maintaining normal blood pressure and that in turn is important in terms of reducing risk of stroke and heart disease. Milk, cheese and yogurt also provide potassium, another mineral essential for normal blood pressure.”
The Ozarks and Kansas City Divisions of Midwest Dairy Association awarded four Missouri students academic student scholarships through its 2009 Educational Program. Jacob O’Quinn, Falcon, Brenda Arnold, Drexel, Nathan Bunse, Savannah, and Alex Peterson, Trenton, each received $500 awards. The program is an initiative that helps dairy farm families with the expense of college.
O’Quinn, son of Jan and Dianne O’Quinn, plans to attend Missouri Southern State University to study industrial engineering. Arnold, daughter of Bob and Sharon Arnold, is a continuing student at the University of Missouri, Columbia. Bunse, son of Steven and Carole Bunse, is a continuing student at Northwest Missouri State University. Peterson, son of Brian and Barb Peterson, is a continuing student at the University of Missouri.
“Dairy farmers value checkoff programs that encourage innovation and strive to increase demand and consumption of dairy products,” said Stacy Dohle, industry relations manager for Midwest Dairy Association. “They are dedicated to supporting the education of youth from dairy backgrounds. The educational program is an excellent way for dairy farmers to help support the future of agriculture.”
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Dairy Markets Week in Review
The most important thing a quality inoculant can do is maintain or retain more of the forage that is put in a bunker. Paul Porter, 
