World Dairy Diary

NMPF’s Strategic Planning Pursues a Four-Part Plan

NMPFlogoThe National Milk Producers Federation’s (NMPF) Strategic Planning Task Force agreed last Friday to pursue a four-part approach to implementing sweeping changes as to how federal dairy policies protect producers and how farm-level milk prices are established.

Recognizing the need to promote programs that will help reduce price volatility and protect producer income, the Task Force agreed last week at a meeting in Chicago to take action on the further development of a multi-pronged approach that, if fully implemented, would assist in maintaining the on-going viability of the nation’s dairy farms and revise some of the more perplexing and less popular aspects of the national milk pricing system.

The four features of NMPF’s plan include: revamping the safety nets of the Dairy Product Price Support and Milk Income Loss Contract programs; creating a new dairy producer income insurance program; addressing the need to improve participation in the producer self-help program, Cooperatives Working Together (cwt), while allowing it to better address periodic imbalances in the milk supply; and reforming the Federal Milk Marketing Order program.

“These four tracks are the foundation for a new future direction for milk pricing in the U.S.,” said Jerry Kozak, President and CEO of NMPF. “With the concurrence of the Task Force, we will immediately begin hammering out the specific details of each element of this new and comprehensive program. We will move quickly, but responsibly, to fashion a dairy safety net and milk pricing system that work in tandem, leveraging the outcome of one program to the benefit of another, whenever possible. For example, we believe a producer income insurance program can be structured to achieve a measure of production control now advocated by a segment of our industry.”

“We shouldn’t underestimate how big a challenge these changes represent, but we also shouldn’t underestimate the shared desired to dramatically alter the current system. Both the Task Force members and our staff recognize that the status quo is not as attractive as the potential to make far-reaching, positive changes down the road,” Kozak said.

The Strategic Planning Task Force has been meeting to analyze what long-term steps are in the best interests of the U.S. dairy producer sector. As a result of Friday’s meeting, the Task Force instructed NMPF staff to immediately begin fleshing out the operational aspects of the four elements.

In particular, the Task Force is pursuing how an income insurance program would be designed in such a way as to provide a better safety net to protect the net profit margins of farmers, which the current price support program and the MILC don’t always do during times of high production costs. In addition, the Task Force is exploring not only improving price discovery mechanisms and how changing the Federal Milk Marketing Order program would improve the pricing signals sent to farmers, but also the elimination of unpopular aspects of the current system, such as make allowances. Rounding out its assignment from the NMPF Board of Directors, the Task Force is also seeking new ways to address the free-rider issue associated with participation in the CWT program and how the program itself can become even more effective in the future.

As this long-term approach progresses, NMPF continues to focus on short-terms steps to help farmers, including urging the Congress to appropriate $350 million in dairy aid to farmers in the fall. House and Senate appropriators are expected to decide in the coming days on the extent of the aid package, and how it will be used. NMPF has recommended that Congress allocate the money for purchases of cheese products that would then be donated to food banks and similar charitable organizations that serve needy populations.

New York Times on the State of the Dairy Industry

nytimes “From Science, Plenty of Cows, but Little Profit,” was the titled of a New York Times piece written by William Neuman, and it offers insights on the state of the dairy industry today. While granting that technology has advanced the efficiency of all dairy farms, they explained the troubling times facing dairy producers in the markets. Check out this balanced article; it’s one worth reading. Here is an excerpt…

Three years ago, a technological breakthrough gave dairy farmers the chance to bend a basic rule of nature: no longer would their cows have to give birth to equal numbers of female and male offspring. Instead, using a high-technology method to sort the sperm of dairy bulls, they could produce mostly female calves to be raised into profitable milk producers.

Now the first cows bred with that technology, tens of thousands of them, are entering milking herds across the country — and the timing could hardly be worse.

The dairy industry is in crisis, with prices so low that farmers are selling their milk below production cost. The industry is struggling to cut output. And yet the wave of excess cows is about to start dumping milk into a market that does not need it.

USDA Economist Sees Improvement Ahead

Even though dairy producers continue to lose money, milk output is only expected to drop about one percent in 2010, according to USDA Outlook Board chairman Gerry Bange who sees higher prices in the future.

usda“We do look for a price turnaround,” Bange says. “We’re looking at a $15.05 per hundredweight price for 2010, that’s up nearly 24 percent from the price we expect in 2009, which is about $12.15.”

And Bange expects those prices to be reflected across the full range of dairy products. “We’re looking for a stronger cheese price, looking for a stronger butter price, stronger non-fat dry milk pricing, whey pricing – so we’re looking at prices up rather sharply for 2010,” he says.

However, with prices down this year by about 38 percent compared to last year, Bange says they are not expected to fully recover to those levels by next year.

Pioneer Explores Benefits of Reduced Lignin Alfalfa

Developing new varieties of “redesigned” alfalfa with reduced lignin could not only benefit provide benefits for meat and dairy animals, but also play a role in the future of cellulosic ethanol production.

pioneer David MillerPioneer Director of Alfalfa Research Dave Miller says they believe cellulosic ethanol will need multiple feedstocks and alfalfa is a good fit for a number of reasons. “It’s great for crop rotation, its environmental benefits in terms of lack of soil erosion because it’s deep rooted and a perennial are well known, and it fixes nitrogen.”

In addition, Miller says preliminary work shows alfalfa is competitive with other feedstocks for its ability to convert to cellulosic ethanol and that a corn/alfalfa rotation creates a very favorable carbon footprint for ethanol production.

Producing varieties with less lignin would be helpful in making alfalfa even more competitive as a cellulosic ethanol feedstock. In addition, the reduced lignin alfalfa also has benefits with its more traditional use as livestock feed. “When animals are fed lower lignin forage, they perform better,” said Miller. “Both systems are digestions, one is an enzyme-acid digestion to go into a fermentation vat, the other is a digestion to make milk or meat.”

The U.S. Dairy Forage Research Center estimates that just a 10 percent increase in cell wall digestibility by decreasing lignin would increase milk and beef production by $350 million per year and decrease manure production by 2.8 million metric tons annually. Pioneer is working in cooperation with the Consortium for Alfalfa Improvement on reducing the lignin content of alfalfa.

Pioneer Forage Media Day Photo Album

Listen to or download an interview with Dave Miller here:

Dairy Teams with NFL for Child Nutrition

U.S. Department of Agriculture is teaming up with the National Football League (NFL) and the nation’s dairy farmers to promote good nutrition and fitness in the nation’s schools.

This week, Agriculture Secretary Tom Vilsack met with NFL Commissioner Roger Goodell and Thomas Gallagher, chief executive of Dairy Management, Inc., which runs the National Dairy Research and Promotion Program. The NFL and DMI are launching Fuel Up to Play 60, an innovative nutrition and fitness program based on the Dietary Guidelines for Americans, in some 60,000 schools this fall. The social marketing program empowers students to assume leadership in being more active and eating more healthy foods.

“National Dairy Council is honored to work together with USDA and the NFL on Fuel Up to Play 60,” said Gallagher. “Child nutrition, particularly in schools, has been a cornerstone of National Dairy Council for nearly a century. This program centers on youth taking the lead in changing the school environment through increasing opportunities for eating healthier and getting more physical activity.”

The campaign will inspire kids to “fuel up” with the nutrient-rich foods they often lack—fruits, vegetables, whole grains, and low- or no-fat dairy products—and “get up and play” with 60 minutes of daily physical activity. Student teams will evaluate their school’s “wellness” and choose the healthy eating and physical activity programs on which the school will focus.

Dairyline Markets in Review

DairylineDairy Markets Week in Review

Cheese prices are strengthening again. The bock price closed September 18th at $1.33 per pound, up 6 cents on the week but still 62 1/2-cents below that week a year ago. Barrel closed Friday at $1.29, up 4 cents on the week, but 64 1/4-cents below a year ago. Thirty cars of block traded hands on the week and 10 of barrel. The lagging NASS-surveyed U.S. average block price inched 0.1 cent lower, to $1.3721. Barrel averaged $1.3395, down 4 cents.

Cash butter closed at $1.27, up 9 cents on the week, but 45 1/2-cents below a year ago. Forty one cars were sold. NASS butter averaged $1.1677, up 0.4 cent.

Cash Grade A nonfat dry milk finished the week at $1.04 per pound, up 3 1/2-cents on the week, and Extra Grade closed at $1.00, up 5 cents. NASS powder averaged 97.19 cents, up 3 cents, and dry whey averaged 29.76 cents, up 0.7 cent.

There were no price support purchases on the week, in fact 1.3 million pounds of powder was canceled. Year to date powder purchases stand at 276.2 million. DEIP bid acceptances for the week included 661,300 pounds of anhydrous milkfat to Africa and the Middle East, 1.3 million pounds of butter to Asia and Eurasia, and 659,174 pounds of Cheddar cheese to Africa and the Middle East and Asia and Eurasia.

Provided courtesy of Dairyline.

Fall Alfalfa Management and Corn Hybrid Selection

Pioneer Hi-Bred Forage Forum PodcastLeo Brown, Pioneer Livestock Information manager, discusses fall alfalfa management and corn hybrid selection for silage at the 2009 Farm Progress Show in Decatur, Ill. Brown says producers should evaluate alfalfa stands in the fall. Depending on stand quality, a producer can look to fertilize for optimum spring growth or apply a herbicide treatment to kill the crop for easier groundwork in the spring. Now is also the time to consider hybrid selection for corn – looking for good starch and fiber digestibility.

Listen to this edition of Forage Forum here:

pioneer-podcast-63-wdd.mp3
Leo Brown from Farm Progress Show (5:30 min MP3)

To see all archived Pioneer Forage Forum podcasts, click here.

Pioneer Lab Tests More Reliably Than Others

Chuck Interviews Scott DennisAfter all the classroom presentations today we got to tour the Pioneer Livestock Nutrition Center. We couldn’t take photos inside but afterward I interviewed our tour guide, Scott Dennis, Pioneer Technical Services Manager, Forage Additives. Cindy took the photo of me interviewing Scott who is pictured on the left.

PLNC signScott says the facility was originally built in 1993 to measure differences in what makes silage more digestible. They do swine digestibility studies, sheep and beef cattle feeding. One of the things they do that you won’t find in a commercial lab is that they grind samples down to a 6 millimeter size instead of 1 millimeter. The grind they use is more closely tied to the size of what the animal is actually chewing and therefore creates more accurate results. They also do 16 tests for every sample instead of 1 and use multiple animals and take an average to get a much more meaningful result. He says you won’t find this in any other University or commercial lab.

Pioneer Forage Media Day Photo Album

You can listen to my interview with Scott below:

Pioneer Keeps Animal Welfare Top of Mind

Robin NewellThe man who got us started here at the Pioneer Hi-Bred Forage Media Day is Robin Newell. Cindy spoke to him about the “long look.” He says the Pioneer long look has four components that include: “We strive to create the best products;” “We deal honestly and fairly with our constituents;” “We represent our products vigorously;” “We help our customers get the most from our products.”

He says the focus today is on the development of corn silage and alfalfa and inoculants like their new 11GFT. He also mentioned their focus on animal welfare since they keep many animals here at the Livestock Nurition Center. He says they have an animal welfare committee that even includes “local clergy.” He says that person helps provide a good moral and ethical backbone to the committee.

Pioneer Forage Media Day Photo Album

You can listen to Cindy’s interview with Robin below:

Pioneer Introduces 11GFT Inoculant For Better Forage Digestibility

Pioneer Introduces 11GFT Inoculant PlatformPioneer Hi-Bred announced a new inoculant platform this morning. The 11GFT inoculant is the second in a series of products in the Pioneer fiber technology platform. This one will offer dairy producers another avenue to enhance forage digestibility which will reduce feed costs. The product was developed exclusively for grass and cereal silage and is the first of its kind. The company says other fiber technology products are currently under development.

Cindy interviewed Kyle Whitaker, Pioneer Hi-Bred Marketing Manager, Forage Additives, about the new product. Kyle says they see three key benefits that includes good basic fermentation, aerobic stability and fiber digestibility. He says they see the product used in silage markets across the U.S. with key targests in the northeast and far west.

We also have a photo album started for the event which will be added to later today but we’ve got some photos in there for you now: Pioneer Forage Media Day Photo Album

You can listen to Cindy’s interview with Kyle below:

Pioneer Forage Media Day Class In Session

Pioneer Forage Media Day ClassThe Pioneer Forage Media Day has started with class in session at their Livestock Nutrition Center near Des Moines, IA. We have a very good attendance from the ag media. Right now we’re listening to the first presentation by Bill Curran on corn silage reearch. He’s giving us a complete overview of their process for testing and evaluating genetics of various hybrids.

During our breaks Cindy and I will be conducting interviews with the presenters which we’ll post for you. We’ll also be building up some new Forage Forum podcasts as well. So it’s going to be a busy day here.

We’ll also be doing some special tweets on the World Dairy Diary Twitter feed so keep an eye on it too. Please feel free to follow if you aren’t yet.

Attending Pioneer Hi-Bred Forage Day

Pioneer Forage Media DayPioneer Hi-Bred has invited ag media to attend a day filled with information on their forage products.

The Pioneer Livestock Nutrition Center (PLNC), Pioneer experts will provide the latest updates on technologies designed for producers and forage growers to get the most return on their investment.

Pioneer provides the entire range of seed genetics, crop-specific forage additives, revolutionary Corn Fiber Technology, silage know-how and local services – all dedicated to the goal of producing more nutritious feed for livestock.

Cindy and I are on location and will be covering the event throughout the day here and on World Dairy Diary.

Dairyline Markets In Review

DairylineDairy Markets Week in Review

The markets had the Labor Day weekend and holiday to digest the Dairy Products report however the block cheese price closed the holiday shortened week at $1.27 per pound, unchanged on the week, but 63 1/4-cents below a year ago when they jumped almost 12 cents and appeared to be headed toward topping $2.00 again. They stopped short at $1.9550 the week of September 15.

Barrel closed Friday at $1.25, up a quarter-cent on the week, but 63 1/4-cents below a year ago. Eighteen cars of block traded hands on the week and nine of barrel. The NASS-surveyed U.S. average block price gained 4 cents, hitting $1.3730. Barrel averaged $1.3798, up 2.2 cents.

Cash butter, after holding at $1.17 for nine consecutive sessions, closed Labor Day week at $1.18, up a penny on the week, but 48 cents below a year ago. Only five cars were sold on the week. NASS butter averaged $1.1633, down 0.3 cent. NASS nonfat dry milk averaged 94.57 cents, up 1.7 cents, and dry whey averaged 29.06 cents, down 0.1 cents on the week.

There were no price support purchases that week and Dairy Export Incentive Program bid acceptances included 12 bids from four different exporters on 4.6 million pounds of butter. A bid on 220,460 pounds of Cheddar cheese was also accepted. There were no bids on powder.

Provided courtesy of Dairyline.

Iowa Dairy Farmer Testifies Sector in a ‘Price-Cost Squeeze’

The High Plains Journal recently reported on an increasing number of dairy producers whom are standing up to tell others about the dire situation they have found themselves in during the past year. Here is what the article had to say…

America’s dairy producers find themselves in a “price-cost squeeze” between plummeting milk prices and feed costs that have remained high. Several public and private assistance initiatives are in place, but relief is not yet being fully felt at the farm gate, an Iowa dairy farmer today told a House Agriculture subcommittee.

Iowa Farm Bureau President Craig Lang, partner in a dairy with his father, brother and sons, testified on behalf of the American Farm Bureau Federation before the subcommittee on livestock, dairy and poultry during a hearing on the economic challenges facing the dairy sector.

Lang said that due to historically low milk prices, his family and a number of other dairy producers have depleted cash that was put aside during positive economic years, and they are “now using a bank line of credit to help pay for daily operations.”

Coming off positive economic returns in 2007 and most of 2008, farmers responded to market signals to produce more milk. Lang explained that last fall, factors such as the global economic recession and a stronger dollar effectively shut down the international market for U.S. dairy goods.

Lang said “the demand shock from the evaporation of the international marketplace, excess supply being thrust upon the domestic marketplace, and shrinking margins of income over feed costs” are putting dairy farmers at financial risk.

To read the entire article, link here.

Dairy Cow Culling Remains Strong

According to AgWeb.com, dairy culling remains strong in the United States dairy herd. Are you culling many of your cows? Does this ring true in your area?

U.S. dairy farmers sent 228,000 dairy cows to slaughter through Federally-inspected plants in July, USDA reports this morning. That’s 19,000 more than July of 2008 but 28,000 head less than June of this year.

The wild swings in numbers, a 9% increase over last July but an 11% decrease from June, is likely due the Cooperatives Working Together (CWT) program. The 7th round of CWT took 105,000 head earlier this summer, but when they actually moved to slaughter depended on when auditors could verify individual herds.

Year-to-date, dairy cow slaughter is running 205,000 head above last year, a 14% increase.

Lincoln First Woman to Lead Senate Ag Committee

Blanche-Lincoln-750068Congratulation to Senator Blanche Lincoln on becoming the first woman to head the Senate agriculture committee! Lincoln comes to her new position under leadership changes made because of Ted Kennedy’s death.

Lincoln, D-Ark., said implementing the new federal farm bill and ending the trade embargo with Cuba are among the top issues facing the Senate panel.

”I’ve always supported opening up trade with Cuba, and I’ll continue to do so. I can’t single-handedly make it happen as chairman of the committee,” she said Wednesday, adding that she would do her best to keep the issue front and center.

Lincoln takes over from Sen. Tom Harkin, D-Iowa, who will replace Kennedy as chairman of the Health, Education, Labor and Pensions Committee in a series of leadership changes announced Wednesday.

”As a seventh-generation Arkansan and farmer’s daughter, I know my father is smiling down on me today,” Lincoln said.

Lincoln is a supporter of government farm subsidies who has served on Senate Committee on Agriculture, Nutrition and Forestry January 1999. When she was a congresswoman, she served on the House Agriculture Committee from 1993-1995.

Lincoln said the committee has always been a top choice for her during her time in Congress.

”As the chairman, I’m going to again enjoy an elevated opportunity to really help our state, and that’s exactly what I’ll be aiming to do,” she said.

Farm advocates in her home state praised the move, saying they hoped it would increase the state’s clout on agricultural issues.

”Agriculture is the largest industry in our state,” said Randy Veach, president of the Arkansas Farm Bureau. ”Her being in that position gives us an opportunity to keep agriculture financially sound and stable.”

Lincoln said she ended up first in line for the job because other more senior senators — Sens. Max Baucus, Kent Conrad and Patrick Leahy — already serve as chairmen of other committees.

”The ag committee is a very old committee, and it’s also a very senior committee in the sense that most of the members have been on there for quite some time, and that means there’s not a lot of turnover in terms of chairmanship,” she said.

Minn. Dairy Research and Promotion Council Seeks Candidates

The Minnesota Dairy Research and Promotion Council is seeking candidates to run for board positions in 11 statewide districts. Candidates will represent dairy farmers in their district and make decisions regarding the expenditure of dairy check-off funds. Candidates should be active dairy farmers who are well-informed members of their community and interested in check-off promotion programs. Interested candidates should contact their local nomination chair by October 15.

Election ballots will be mailed in January for the two-year terms.

•District 1: Robert Dahlen: (218) 584-5534; Red Lake, Polk, Roseau, Beltrami, Norman, Marshall, Mahnomen, Kittson, Clearwater, Pennington, Lake of the Woods counties.

•District 3: Brian Kimm: (218) 863-4211; Becker, Cass, Wadena, Clay, Hubbard counties.

•District 5: Tom Rausch: (320) 749-2714; Todd County.

•District 7: Craig Awsumb: (320) 246-3356; Douglas, Stevens, Traverse, Pope, Grant counties.

•District 9: Corrine Hadrich: (320) 746-2381; Stearns County Townships – Albany, Avon, Brockway, Clearwater, Collegeville, Eden Lake, Fair Haven, Farming, Holding, Krain, Le Sauk, Luxemburg, Lynden, Maine Prairie, Munson, Paynesville, Rockville, St. Martin, St. Wendel, St. Augusta, St. Cloud, St. Joseph, Wakefield, Zion.

•District 11: Larry/Jean Urban: (320) 354-5291; Kandiyohi, Swift, Yellow Medicine, Renville, Lac Qui Parle, Big Stone, Chippewa counties.

•District 13: Wayne Rusch: (320) 587-5603; Carver, McLeod counties.

•District 15: Ray/Bridget Pieper: (507) 744-2957; Rice, Scott, Dakota, Le Sueur counties.

•District 17: Kevin/Kay Siewert: (507) 753-2501; Wabasha County.

•District 19: Larry/Cindy Clayton: (507) 835-7715; Faribault, Blue Earth, Martin, Steele, Waseca, Freeborn, Watonwan counties.

•District 21: Jim/Laurie Orth: (507) 523-2430; Winona.

MSU Unveils First Large-Animal MRI

Image StockMichigan State University‘s College of Veterinary Medicine is now armed with the first large-animal MRI ever at an academic institution, a move that will allow veterinarians to tackle research questions and greatly impact both animal and human health.

The magnetic resonance imaging machine, which recently became fully operational and has a 70-centimeter opening that is nearly 50 percent larger than the standard MRI, will allow doctors and researchers at the college to analyze larger animals such as horses and cows. Just as important, said diagnostic imaging section chief Anthony Pease, will be the ability to study and interpret the images they receive.

“MSU’s new MRI is one of only three in the country and the first at an academic institution,” Pease said. “We will be able to look critically for the first time at many animal processes.”

The new machine, Pease said, will give veterinarians new insight into how illnesses and injuries affect animals.

“The main benefit is to look at the spinal cord and brain better than we ever have before,” he said. “CT imaging has been able to provide information about bone, but now we can image muscle, brain and spinal cord without invasive procedures.

“Also, we will be able to look at how the animal brain works, how animals sense pain, and how their minds work when they sleep.”

An example of a specific ailment that will be focused on is arthritis, which many animals face. Pease said for the first time, veterinarians will be able to see articular cartilage in animals to look for early signs of the crippling disease. He added the MRI will continue to give veterinarians valuable insight into treating human ailments as well.

“Everything we learn about animals, we will compare to what is known about people with the hope to treat both humans and animals with similar diseases,” he said.

Construction began in January 2009 on the $2 million project, which has been in the works for four years. Now that it is operational, MSU’s Veterinary Teaching Hospital offers every possible imaging technique, said hospital director Pat LeBlanc. That includes the new MRI, ultrasound and CT imaging, fluoroscopy and nuclear medicine.

Outgoing Pa. Ag Secretary Dennis Wolff Heads to Lobbying Firm

Dennis Wolff, Pennsylvania’s outgoing secretary of agriculture, is joining the partnership at the lobbying firm of Versant Strategies. He had announced his resignation in August.

Wolff’s role at Versant is effective Sept. 14, where he will work with the network of producers, consumers, and private and public organizations that make up the state’s agricultural community.

Wolff was confirmed as Gov. Ed Rendell’s secretary of agriculture in May 2003. During his tenure, he oversaw the creation of some of the state’s most innovative and effective agricultural programs, including the Center for Dairy Excellence, PAgrows and the PA Preferred marketing program.
Background

His own Pen-Col farm, a 600-acre dairy cattle operation, is renowned in the field of specialized genetics. In 1994, Wolff was named a Master Farmer for his work in the agricultural field.

Wolff is president and founder of the Nicholas Wolff Foundation and Camp Victory in Millville, Pa., a nonprofit camp for children with special medical needs.

Wolff joins Versant Strategies’ current partners: John Barley, a Master Farmer with 18 years of experience as a leader in the state House of Representatives; and MeeCee Baker, the firm’s chief operating officer and veteran agricultural educator.

Source: Farm & Dairy

Novus Unveils DairyBalance.com

Stephanie GableThe first presenter this morning at the Novus International Media Day was Stephanie Gable, Marketing Manager, Ruminants. Stephanie gave us the lowdown on how Novus is helping dairy producers achieve “oxidative balance” in their herd. They’ve found that just like with human beings, when dairy cows come under stress from oxidation they become less productive. So to prevent it and maintain a healthy balance they recommend the use of antioxidants like AGRADO Plus feed ingredient.

They feel so strongly about the importance of dairy nutrition that they’ve created a new website on the subject where you can learn a lot more about this oxidative balance issue.

You can listen to my interview with Stephanie here:


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