World Dairy Diary

New Special Dark Chocolate Milkshake

Herheys-Special-Dark-Image-300HP Hood’s Hershey milk line is introducing a single-serve Hershey’s Special Dark Chocolate milkshake. Sounds delicious!

With the popularity of single-serve milk and chocolate milk positioned as a recovery beverage, processors like Lynnfield, Mass.-based HP Hood are taking notice.

The new milk product is inspired by Hershey’s Special Dark flavor within its candy line. Along with the existing milk flavors, the Special Dark Chocolate flavor will be available in 12-ounce, single-serve, plastic bottles at retailers nationwide beginning in March. Each bottle contains 12 grams of protein and 3.5 grams of fat.

Source: Dairy Foods

Plant to Open in Arizona

Franklin Foods Inc., a cream cheese company, announced plans to open a manufacturing facility in Casa Grande, Arizona. Production is expected to begin in early 2013.

The plant in Casa Grande would be the second manufacturing facility for Delray Beach, Fla.-based Franklin Foods. It would expand the company’s rapidly growing food service, industrial, retail, private label and international businesses. The Casa Grande plant also would help meet demand for Franklin’s recently launched Greek cream cheese.

Franklin Foods was established in Enosburg Falls, Vt., in 1899 and has a rich tradition of supporting local New England dairy farmers by purchasing fresh milk and cream from nearby farms and suppliers. The company will continue this tradition in Arizona by purchasing local milk and cream from United Dairymen of Arizona.

Franklin Foods’ state-of-the-art, 90,000-square-foot facility in Casa Grande will produce a full line of cultured cream cheese and cream cheese-based products, including the newly announced and industry first Greek cream cheese. The facility is expected to create 59 new jobs over the next two years.

Source: Casa Grande Dispatch

Co-ops Announce Proposed Merger

The board of directors for Family Dairies USA, Manitowoc Milk Producers Cooperative and Milwaukee Cooperative Milk Producers have unanimously voted to recommend a unified merger for their membership. Combined, these three cooperatives could soon become the largest Midwest dairy marketing cooperative under the new name of FarmFirst Dairy Cooperative.

“We are extremely excited about the future this effort will offer our members,” says David Cooper, general manager for Family Dairies USA. “The combined size and strength of the new cooperative will provide all of our members with a deeper and broader voice in policy-making decisions, both locally and nationally. And, by combining the resources of three independent organizations, we will be able to improve efficiencies and effectiveness.”

“The timing of coming together could not be better,” adds Dennis Donohue, general manager of Manitowoc Milk Producers Cooperative. “The current, individual financial status of all three cooperatives is outstanding. This allows the new organization to start out on very strong footing, so that we can immediately focus on growing and improving member benefits.”

“Considerable due diligence has been done by each board,” says Jim Bird, general manager of Milwaukee Cooperative Milk Producers. “Our cooperatives have shared common goals and even collaborated in business together over the years. It is a natural progression. Now, we can combine efforts that will allow us to put more resources into critical member areas that will continue to build upon the 200-plus years of combined history we have.”

Informational meetings will be held by each cooperative’s membership over the next six weeks. The proposal to merge will be voted on by each membership in mid-December. If the merger passes, the new, combined cooperative will begin business function January 1, 2013.

Under the new cooperative, the combined member representation will be divided into a total of nine districts, based on membership within each district. The current directors from each of the three cooperatives will transition into the new organization, helping ensure consistency in leadership and membership voice.

Family Dairies USA Milk Program and the Fox Valley Quality Control Laboratory will continue to operate as subsidiaries of the new cooperative.

Listen to this morning’s press conference with reps from each co-op answering questions about the merger:
FarmFirst Cooperative Announcement

Dairy Reports at Risk in USDA Budget Cuts

Some USDA reports vital to dairy producers could be on the budgetary chopping block. A recent Farm Foundation webinar featured several speakers from the federal government, private industry and commodity groups discussing how to head off cuts to many market reports. Jim Robb, the Senior Agricultural Economist and Director at the Livestock Marketing Information Center, told the panel that the real problem is that livestock reports, in particular, are not sexy and hard to explain to the average person, including lawmakers who will be voting on funding for these programs.

“I think that compared to the Census of Agriculture, [which is not targeted] and you can explain to a bureaucrat or politician and put in a rather concise package, this is a whole array of market reports that really is much harder to explain in a simplistic context, and that contributes to why these are being targeted,” Robb said.

Robb pointed out that information from National Agriculture Statistics Service (NASS) to produce dairy disposition and income reports is very cumbersome and complex and could not be accurately done without the information now coming from the USDA. He continued that too many reports are not mandatory, and thus, at risk in the budget. And losing these reports, many a monthly or quarterly update on the annual report, would leave too big of a gap in information. “Annual is not satisfactory in an industry that is biologically based,” he said.

Robb made a final, compelling argument for why the government needs to keep many of the reports. “Quality data do not magically occur. This is a classical public good. We cannot just do random reports and expect markets to function effectively.” He encouraged private companies, government officials, and commodity groups to lobby for these reports to be continued. He echoed what some other speakers on the Farm Foundation webinar said that while some commodity groups could provide the information, it would not be the unbiased and trusted source USDA continues to be.

You can here more of what Robb had to say here: Jim Robb, LMIC during Farm Foundation Webinar on Data Collection

Plus, his slide show to go along with the audio is available here.

And you can hear the entire hour-long Farm Foundation webinar here:
Farm Foundation Webinar on Data Collection

Greek Yogurt Just Getting Started

Chobani, the maker of Greek yogurt in upstate New York, thinks that the Greek yogurt trend has just gotten started.

Its plant already pumps out 1.5 million cases of the thick yogurt every week, and pallets are stacked four stories high in the chilled warehouse. But like other Greek yogurt makers, Chobani is expanding.

Greek yogurt now accounts for a quarter of the total yogurt market after a dizzying growth spurt that is especially apparent here in the heart of upstate New York. The nation’s No. 1 and No. 2 Greek yogurt brands — Chobani and Fage, respectively — are both expanding plants within 60 miles of each other, and another company is building a plant in western New York. The expansions come as the big U.S. yogurt makers are focusing on Greek products, too.

While the quick growth has some hallmarks of a food fad — think cupcakes or bubble tea — the long-term investments point to a widespread industry belief that many Americans will continue to like their yogurt a bit richer.

“I personally do not believe that the yogurt story has started yet. I believe the yogurt story in this country is about to start,” Chobani’s founder, Hamdi Ulukaya, said during an interview in his office. “The magnitude hasn’t started yet.”

The company said production will increase from 1.5 million cases a week to more than 2 million when the current $134 million expansion is completed this year. Another $128 million Chobani plant being built 2,000 miles west in Twins Falls, Idaho, will add still more.

About 60 miles northeast, the Greek company Fage (pronounced FA’-yeh) is in the early stages of doubling the capacity of its 3-year-old plant in Johnstown, N.Y. to about 160,000 tons of yogurt annually.

The NPD Group, a consumer marketing research firm, reports that Greek yogurt appeals most to adult females and that it’s more popular in smaller and higher-income households.

“I think that you’re going to see a very high level of innovation in the yogurt category generally and in Greek yogurt specifically over the next 6 to 12 months,” General Mills chief executive officer Kendall J. Powell told a conference call with analysts last month.

Source: Copyright 2012 Associated Press, Wall Street Journal

Dairy Snack Foods Market Grows

This is an interesting new study, and good news for dairy farmers. As consumers become even more time strapped, many are looking to dairy snack foods as a source of nutrition.

The international market for dairy snacks, such as cheese strings and yogurt tubes, grew by 7% in 2009 and is heading for a 6% rise this year. The first major study on this sector, by leading food and drink consultancy Zenith International, estimates total volume at 217,000 tonnes in 2010 across 26 countries in North America, Latin America, West Europe, East Europe, Africa, the Middle East and Asia Pacific.

Currently, the majority of dairy snack products are cheese-based and targeted at children. In some countries, however, manufacturers are increasingly looking at innovations for adults. Although many dairy snacks are designed to be eaten on the move, some recent launches have been designed for at-home snacking, reflecting continuing changes in consumer eating habits.

Of the total dairy snack volume identified in 2009, the US accounted for almost two-thirds. The UK was the second largest market, with other key countries including France, Canada, Germany and Japan. The most developed regions are North America, West Europe and Australasia, with Latin America and East Europe presenting the next opportunities for companies to be first to market.

The most successful dairy snack products have come from leading international players in the overall dairy market, who command brand recognition and marketing power. Key players and brands include Bel with Mini Babybel, Kraft with Dairylea, and Yoplait yogurt tubes. In countries where dairy snacks have been available for longer and are more established, retailer private labels have been introduced, but these have yet to make a material impact.

“Dairy snacks, although a relatively recent phenomenon, have firmly established themselves as an important segment within both the dairy market and the wider market for snacks,” commented Zenith Market Analyst Laura Knight. “As modern on-the-go lifestyles have left consumers time poor, many people are increasingly looking for a convenient snack that delivers on health and nutrition, also one that tastes good and provides a pleasurable eating experience. Dairy snacks are well placed to meet these consumer demands and manufacturers have begun to capitalise on the opportunity this presents.”

Although dairy snacks are undeveloped as a snack segment, compared to more traditional snacking foods such as crisps and bars, it is clear that there is considerable long term potential for the market and Zenith expects the market to reach over 260,000 tonnes by 2014.

Source: Australian Food News

Dairyline Markets In Review

High temperatures and humidity are driving dairy prices higher. School pipelines are refilling and making less milk available for the churn or the vat. The block cheese price closed Friday the 13th at $1.62 per pound, up 1 3/4-cents on the week, and 25 3/4-cents above a year ago. The barrels closed at $1.5850, also up 1 3/4-cents on the week, and 24 1/2-cents above a year ago. Two cars of block traded hands on the week and one of barrel. The NASS-surveyed U.S. average block price hit $1.5834, up 3.7 cents. Barrel averaged $1.5779, up 2.3 cents.

Butter closed Friday at $1.9175, up 6 3/4-cents on the week, 69 3/4-cents above a year ago, and the highest in over five years. Only one car was sold on the week. NASS butter averaged $1.8025, up 3.2 cents. NASS powder averaged $1.1766, up 0.2 cent, and dry whey averaged 35.9 cents, up 0.6 cent.

Provided courtesy of Dairyline.

Dairyline Markets In Review

The blocks closed the first Friday in August at $1.6025 per pound, unchanged on the week but 29 1/4 cents above a year ago. Barrel closed at $1.5675, up a penny on the week, and 27 3/4 cents above a year ago. No cars of block traded hands on the week and six of barrel. The NASS-surveyed U.S. average block price hit $1.5409, up 4.7 cents. Barrel averaged $1.5552, up 4.4 cents.

Butter closed at $1.8500, up 3 1/2 cents on the week, and 62 cents above a year ago. Six cars were sold. NASS butter averaged $1.7701, down 0.1 cent.

Cash Grade A nonfat dry milk closed Friday at $1.2100, unchanged on the week, and Extra Grade closed at $1.2250. NASS powder averaged $1.1751, down 1.1 cents, and dry whey averaged 36.48 cents, up 0.4 cents.

Provided courtesy of Dairyline.

Dairyline Markets In Review

Farm milk prices keep inching higher. The Agriculture Department announced the July Federal order Class III price at $13.74 per hundredweight, up 12 cents from June and $3.77 above July 2009. That pulls the 2010 average to $13.60, up from $10.16 a year ago, and compares to $18.25 in 2008. The Class IV price is $15.75, up 30 cents from June and $5.60 above a year ago.

The NASS-surveyed cheese price averaged $1.4567 per pound, up a penny from June. Butter averaged $1.7375, up 14.3 cents. Nonfat dry milk averaged $1.2277, down 3.5 cents, and dry whey averaged 36.41cents, down a half cent.

Cash dairy product prices remain strong however cheese may be showing a little weakness. The blocks closed the last week of July at $1.6025 per pound, unchanged following six weeks of gain, but 31 3/4-cents above a year ago. Barrel closed at $1.5575, down a quarter-cent on the week, but 29 3/4-cents above a year ago. Six cars of block traded hands on the week and eight of barrel. The lagging NASS-surveyed U.S. average block price gained 6.3 cents, hitting $1.4999. Barrel averaged $1.5110, up 3.4 cents.

Butter gained a penny and a half, closing Friday at $1.8150, up 57 cents from a year ago. Nine cars were sold. NASS butter averaged $1.7713, up 2.8 cents.NASS powder averaged $1.1865, down 4.7 cents, and dry whey averaged 36.21 cents, up 0.1 cent.

Provided courtesy of Dairyline.

Dairyline Markets In Review

Cheese prices continued to move higher this week with the blocks closing Friday at $1.6025 per pound, up 2 3/4-cents on the week, and 40 1/4-cents above a year ago.
Barrel closed at $1.56, up 3 1/2-cents on the week, and 39 cents above a year ago.

Cheese prices have strengthened for six consecutive weeks. Six cars of block traded hands on the week and eight of barrel. The NASS-surveyed U.S. average block price hit $1.4369, up 2.6 cents from the previous week, and barrel averaged $1.4766, up 5.6 cents.

Cash butter closed Friday at $1.80, up 2 1/2-cents on the week, and 54 cents above a year ago. Butter has also increased for six weeks in a row. Only one car was sold all week. NASS butter averaged $1.7438, up 2.4 cents.

Cash Grade A nonfat dry milk closed Friday at $1.21, down three quarters on the week, while Extra Grade held all week at $1.2250. NASS powder averaged $1.2335, up 0.1 cent, and dry whey averaged 36.15 cents, down 0.1 cent.

Provided courtesy of Dairyline.

Dairyline Markets In Review

Cheese prices keep climbing, up the fifth week in a row, driven primarily by climbing temperatures around the nation. The blocks closed July 16 at $1.5750 per pound, up 4 3/4-cents on the week, 43 cents above that week a year ago, and the highest they’ve been since December. Barrel closed Friday at $1.5250, up 2 1/2-cents on the week, 38 1/2-cents above a year ago, and a nickel below the blocks. Only one car of block traded hands on the week and none of barrel. The NASS-surveyed U.S. average price of block hit $1.4112, up 0.9 cents, while the barrels averaged $1.4201, up 1.9 cents.

Butter inched higher in an effort to bring sellers to the market closing Friday at $1.7750, up 1 1/4-cents on the week, 52 1/2-cents above a year ago, and the highest since December 2004. Only two cars were sold all week. NASS butter averaged $1.7201, up 1.7 cents. The Daily Dairy Report says cream is very tight due to strong Class II production and decreasing component levels in milk.

Cash Grade A nonfat dry milk closed the week at $1.2175, up three quarters of a cent. Extra Grade closed at $1.2250, down a half-cent. NASS powder averaged $1.2336, down 4.8 cents. Dry whey averaged 36.21 cents, down a penny.

Provided courtesy of Dairyline.

Dairyline Markets In Review

Cash cheese strengthened in the shortened 4th of July holiday week. The blocks closed that Friday at the year high $1.5275 per pound, up 7 1/4-cents on the week, and 43 3/4-cents above that week a year ago. Barrel closed at $1.50, up 10 cents, and 41 cents above a year ago. Only one car of block traded hands on the week and one of barrel. The lagging NASS-surveyed U.S. average block price slipped 0.4 cent, hitting $1.4025. Barrel averaged $1.4007, up 1.2 cents.

Butter closed at $1.7625, up 1 1/4-cents on the week, and 54 cents above a year ago. Nothing was traded all week. NASS butter averaged $1.7014, up 5.4 cents.

Cash Grade A nonfat dry milk closed the week at $1.21, down 2 cents, and Extra Grade closed at $1.23, down 1 1/2-cents. NASS powder averaged $1.2816, up 6.6 cents, and dry whey averaged 37.27 cents, up 0.9 cent.

Provided courtesy of Dairyline.

Dairyline Markets In Review

The June Federal order Class III milk price was announced Friday at $13.62 per hundredweight (cwt.), up 24 cents from May, $3.65 above June 2009, and $1.39 above California’s comparable 4b price. The 2010 Class III average now stands at $13.58, up from $10.19 at this time a year ago, but compares to $18.26 in 2008.

Class III futures portend more gain to come. The July contract settled Thursday at $13.51, August at $14.34, and September at $14.87, with a peak of $14.85 in October before the seasonal downturn.

The Class IV price is $15.45, up 16 cents from May and $5.23 above a year ago.

The NASS-surveyed cheese price averaged $1.4475 per pound, up 2.2 cents from May. Butter averaged $1.5946, up 1 1/2 cents. Nonfat dry milk averaged $1.2631, up 1.1 cent, and dry whey averaged 36.88 cents, up fractionally.
California’s June 4b cheese milk price is $12.23, down 17 cents from May but $2.71 above a year ago. The 2010 average now stands at $12.29, compared to $9.84 a year ago. The 4a butter-powder price is $15.26, up $1.31 from May, and $5.20 above a year ago.

The cash block cheese price closed June Dairy month at $1.4550 per pound, up 4 1/2-cents on the week and 34 cents above a year ago. Barrel closed at $1.40, up a half-cent on the week, and 30 cents above a year ago. Ten cars of block traded hands on the week and three of barrel. The NASS U.S. average block price lost 3.6 cents, dipping to $1.4063. Barrel averaged $1.3885, down 0.2 cent.

Cash butter closed Friday at $1.75 up 3 cents on the week, 55 3/4-cents above a year ago, and the fifth consecutive weekly increase. Only one car was sold on the week. NASS butter averaged $1.6478, up 4.7 cents.

Cash Grade A nonfat dry milk lost 2 cents on the week, closing Friday at $1.23. Extra Grade held all week at $1.2450. NASS powder averaged $1.2159, down 9 1/2-cents, and dry whey averaged 36.34 cents, down 0.8 cent.

Provided courtesy of Dairyline.

Dairyline Markets In Review

The cash dairy markets had little reaction to this week’s Cold Storage report. Block cheese closed Friday at $1.41 per pound, up a half-cent on the week, and 29 cents above that week a year ago. Barrel closed at $1.3950, up a penny on the week and 30 1/2-cents above a year ago. Only two cars of block traded hands on the week and six of barrel. The lagging NASS-surveyed U.S. average block price lost 1.7 cents, slipping to $1.4414. Barrel averaged $1.3909, down 3.6 cents.

Butter closed Friday at $1.72, up 8 1/2-cents on the week, 51 1/2-cents above a year ago, and the highest it has been since September 2008. Only six cars were sold on the week. NASS butter averaged $1.6012, up 2 1/2-cents.

Cash Grade A nonfat dry milk held all week at $1.25. Extra Grade lost a half cent, closing at $1.2450. NASS powder averaged $1.3059, up 0.2 cent, and dry whey averaged 37.18 cents, up 0.4 cent.

Provided courtesy of Dairyline.

Dairyline Markets In Review

The cheese price roller coaster headed back up mid way through June Dairy Month as the market awaited the May Milk Production report which came out Friday afternoon after our deadline. Cash block ended the week at $1.4050 per pound, up 3 1/2-cents on the week, 28 3/4-cents above a year ago, and reversed three weeks of decline. The barrels closed at $1.3850, up 5 1/2-cents on the week, and 31 1/2-cents above a year ago. Fourteen loads of block traded hands on the week and 35 of barrel, all of them on Friday. The NASS-surveyed block price average lost a penny, slipping to $1.4581. Barrel averaged $1.4274, down 5.2 cents.

Butter continued its climb, closing Friday at $1.6350, up 2 1/2-cents on the week, and 43 cents above a year ago. Only three cars were sold on the week. NASS butter averaged $1.5766, up 3.4 cents. NASS powder averaged $1.3039, up 0.1 cent, and dry whey averaged 36.83 cents per pound, down 0.3 cent.

Provided courtesy of Dairyline.

Tipton Opposes Supply Management

International Dairy Foods Association president and CEO Connie Tipton expressed disappointment in recent proposals that would create a government-mandated system to limit the supply of milk produced by dairy farms.

A “supply-management” proposal was recently introduced in the House of Representatives and a similar proposal was included as part of a dairy policy reform plan released last week by the National Milk Producers Federation.

“I’m not going to mince words,” IDFA President and CEO Connie Tipton told more than 80 dairy company leaders. “Supply management will destroy our dairy industry’s opportunity for the future.”

Tipton said that government-mandated supply-management programs, intended to reduce price volatility for dairy farmers, will only add more complexity to the system and will decrease demand for dairy products and dairy ingredients by encouraging non-dairy substitutions in foods and restaurants across the country.

“Dairy processors are sensitive to the market situation for farmers, and we are well aware that dairy producers are coming out of a period of devastating margins,” said Tipton. “But we need a solution that offers support AND opportunity.”

Tipton said that increasing demand for dairy products in global markets provides a unique opportunity for the U.S. dairy industry to grow and prosper.

“Supply management will stop U.S. dairy exports at a time when emerging markets are crying out for more dairy products,” she said. “Supply management will kill the growth of the U.S. dairy industry and prevent us from adding jobs that will help with our nation’s economic recovery.”

Tipton added that supply management will raise the price for basic foods and will cost the U.S. government hundreds of millions more to fund food and nutrition programs that are the priority of the Obama administration.

“IDFA has successfully fought supply management in many previous farm policy debates, and it is an idea that we need to fight hard to defeat,” Tipton said.

She called upon dairy producers, dairy coops, cattlemen and other national agriculture organizations that oppose supply management to join with IDFA to defeat supply management for the U.S. dairy industry.

Source: The International Dairy Foods Association (IDFA)

Dairyline Markets In Review

The bleeding continued in the cash cheese market although prices reversed gears and regained a penny on Friday. The blocks closed June 11th at $1.37 per pound, down 2 3/4-cents on the week but still 22 cents above a year ago. The block price has lost 13 cents in three weeks. Barrel closed Friday at $1.33, also down 2 3/4-cents on the week, and 23 3/4-cents above a year ago. Thirty one cars of block traded hands on the week and 32 of barrel. The NASS-surveyed U.S. block price average gained 3.6 cents, hitting $1.4680. Barrel averaged $1.4795, up 2.5 cents.

On a brighter note; cash butter gained 3 1/2-cents on the week, closing Friday at $1.61, 38 1/4-cents above a year ago. Nothing was sold all week, the gains all came on unfilled bids. NASS butter averaged $1.5425, up 4.3 cents.

Cash Grade A nonfat dry milk closed Friday at $1.25, unchanged on the week, and Extra Grade closed at $1.25, down a penny. NASS powder averaged $1.3034, up 1.5 cents, and dry whey averaged 37.16 cents, up 0.2 cents.

Provided courtesy of Dairyline.

NMPF Board Meeting Results

Recently National Milk Producers Federation (NMPF) held their spring board meeting. New officers were elected, and a new approach to reforming dairy policy called “Foundation for the Future” was approved. Read on to learn more.

New Board Elected
John Underwood was elected the Third Vice Chairman of NMPF, representing Northwest Dairy Association in Seattle, Wash. The new Board members include: Mickey Childers of Somerville, Alabama, representing Dairy Farmers of America, Inc.; Dan Senestraro of Johnson, Kansas, also representing Dairy Farmers of America; and Jim Werkhoven of Monroe, WA, representing the Northwest Dairy Association.

“Foundation for the Future.”
The features of NMPF’s Foundation for the Future plan include: transitioning the existing safety nets of the Dairy Product Price Support and Milk Income Loss Contract programs into a new Dairy Producer Margin Protection Program to guard against periods of severe financial pressures; establishing a Dairy Market Stabilization Program to help address periodic imbalances in milk production and demand; and reforming the Federal Milk Marketing Order program.

NMPF President and CEO Jerry Kozak said that the Foundation for the Future is the result of 12 months of detailed deliberations concerning the most appropriate course to follow in reforming federal dairy policies, some of which have been in place for many decades. He added that the package will be used as the basis for the future direction of the dairy provisions in the next Farm Bill, or in some other form of federal legislation that Congress may consider in the future.

The Federation’s proposal to revamp the federal safety net involves creating an insurance program tied to the margin between the national average cost of feed, and the national average all‐milk price. After farmers choose to enroll in the base level of the Dairy Producer Margin Protection Program at no cost to them, they would receive indemnity payments during periods when their margins are severely compressed, as they were for most of 2009. In addition, farmers would have the option of purchasing supplemental coverage to protect a higher margin level between feed costs and milk prices.

Another key element of the Foundation for the Future will be a Dairy Market Stabilization Program that sends a signal to producers that an imbalance in the marketplace could result in lower farm‐level margins. Like the Dairy Producer Margin Protection Program, the Stabilization Program is tied to farmers’ margins that could be reduced either by low milk prices and/or high feed costs.

The Stabilization Program was shaped by some key principles: that it allows for the growth of U.S. production, doesn’t encourage imports or hinder exports, and keeps government intervention at a minimum.

Lastly, the Foundation for the Future also calls for changes in the Federal Milk Marketing Order program to create a competitive milk price, maintain Class I differentials, and eliminate unpopular aspects of the current system, such as make allowances. The changes in the Federal Order system are intended to be revenue neutral so that farmers’ milk checks are not adversely impacted.

Source: National Milk Producers Federation

Dairyline Markets In Review

CME cash cheese prices continued to weaken in the Memorial Day holiday-shortened week. The blocks closed Friday at $1.3975, 6 3/4-cents below the previous week, but 25 cents above a year ago. Barrel closed at $1.3575, down 7 1/4-cents on the week, and 25 3/4-cents above a year ago. Nineteen cars of block traded hands and 14 of barrel. The lagging NASS-surveyed U.S. average block price gained 3.4 cents, hitting $1.4325. Barrel averaged $1.4544, up 3.9 cents.

Butter strengthened, closing Friday at $1.5750, up 1 3/4-cents on the week and 32 1/4-cents above a year ago. Nothing was sold. NASS butter averaged $1.5858, up 0.2 cent.

Cash Grade A nonfat dry milk closed Friday at $1.25, down a nickel on the week. Extra Grade closed at $1.26, down 3 cents. NASS powder averaged $1.2878, up 1.6 cents, and dry whey averaged 37.01 cents, up 0.6 cent.

Provided courtesy of Dairyline.

Dairyline Markets In Review

Cash dairy trading in the final week of May saw block cheese close at $1.4650 per pound, down 3 1/2-cents on the week, but 31 1/4-cents above a year ago. Barrel closed at $1.43, down 4 3/4-cents on the week, and 33 cents above a year ago. Eight cars of block traded hands on the week and 14 of barrel. The lagging NASS-surveyed U.S. average block price gained 0.9 cent, hitting $1.3988. Barrel averaged $1.4155, up 1 1/2-cents.

Butter closed the week at $1.5575, down 2 1/4-cents but 29 1/4 above a year ago. Only one car was sold all week. NASS butter averaged $1.5837, down 0.6 cent.

Cash Grade A and Extra Grade nonfat dry milk held all week at $1.30 and $1.29 respectively. NASS powder averaged $1.2722, up 1.9 cents, and dry whey averaged 36.46 cents, down 0.1 cents.

Provided courtesy of Dairyline.


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