World Dairy Diary

World Dairy Situation 2006

As we look forward to 2007 how about reviewing 2006? The International Dairy Federation has released it’s annual World Dairy Situation report.

This major publication including statistics on production, consumption and trade assists researchers, policymakers, and economists in providing a tool for strategy formulation. The new authoritative World Dairy Situation survey is based on independent dairy sources. This new IDF publication presents a thorough and broad overview on trends in production, milk processing, consumption, trade and prices in major parts of the world. Detailed statistics by world, region and individual countries are also included. Data are compiled using the expertise of IDF members and other sources.

Comments from dairy specialists in many countries inside and outside IDF reveal the perceptions and preoccupations of the world dairy business and lift the curtain on the growing trend towards bilateral agreements affecting international trade in dairy products which has certainly been given a boost by the Doha failure. The 2006 edition includes special articles on the International Farm Comparison Network (IFCN), on worldwide market prospects, on the collapse of the WTO Doha Round negotiations, on the EU Commission’s projections for dairy markets from 2006 to 2013, and on EU enlargement: the dairy sector in Bulgaria and Romania.

Dairy Policy Paper

The IDFA is happy to point out a Cato Institute paper that calls for dairy policy changes. The paper was released just over a week ago and will be quoted a lot I’m sure as we lead up to a new farm bill.

The Cato Institute is the first public policy organization, or “think tank,” to tackle dairy policy in the lead-up to the 2007 Farm Bill. The institute’s briefing paper, titled “Milking the Customers: The High Cost of U.S. Dairy Policies,” highlights weaknesses in current U.S. dairy policies and demonstrates how existing programs have a minimal and conflicting role in supporting prices for farmers. “The experts at the Cato Institute have concluded that today’s dairy policies will not help dairy producers and processors meet the challenges of tomorrow,” said Chip Kunde, IDFA senior vice president. “This call should inspire us to initiate a smooth transition away from current outdated and conflicting policies to one, national policy that provides critical support to all producers but allows free market opportunities to flourish.”

You can find the paper here.

New York Dairyman Named AFT Steward of the Land

The American Farmland Trust (AFT) today honored Tom Hutson, a dairy farmer from DeLancey, NY, with their annual Steward of the Land award. Hutson received a check for $10,000 at a presentation on the steps of City Hall.

“Tom has always understood how his farm’s stakeholders include not only the consumers of his products but the residents of New York City, whose clean drinking water depends on environmentally friendly agriculture,” said Ralph Grossi, President of American Farmland Trust. “Tom both works the land and sustains it.”

Hutson operates River Haven Farm in New York’s Catskill Mountains where he has 380 acres and a herd of 108 Holsteins. He raises corn, alfalfa hay, grass hay, along with oats and barley for grain, and straw for bedding. There are 57 acres of hardwood forest on the farm. He also raises Hi-HO’s, a Holstein-Scottish Highland beef cattle cross.

Hutson was one of the first farmers to participate in pilot programs administered by the Watershed Agricultural Council (WAC) to reduce organic pollution in the Catskill/Delaware reservoir systems. He installed buffer and filter strips, permanent rows of vegetation that slow water runoff and erosion of riverbanks, and also filter out damaging substances from the water supply.

In 2002, Hutson protected his farm with a conservation easement acquired by the WAC, which allows him and future owners of River Haven Farm to continue working the land while limiting any future development and subdivision of his property. This will ensure that New Yorkers enjoy clean water and wildlife habitat in perpetuity including the bald eagles that nest in a huge sycamore tree on his farm.

Hutson has shared his experiences with his peers and advocates through numerous on-farm demonstrations and speaking to countless visitors, media and groups. His one-on-one consultations with other farmers have resulted in numerous applications to the WAC Easement program.

Fred Huneke, Chair of the WAC, added his praise for Hutson’s efforts. “New York City faced a looming crisis in 1990 spending billions of dollars to build and operate a water filtration system. Instead, they came up with a novel plan to protect the water supply and keep it clean: by partnering with farmers like Tom who work to manage their farms in environmentally positive ways. Tom has encouraged farmers in the watershed to join him in these efforts and that’s meant the City has been spared a huge financial burden.”

“Tom is a champion of good agriculture leading and showing by example on his farm how you can provide consumers with food and environmental benefits and attract wildlife at the same time,” adds Ralph Grossi, “he is a true steward of the land and a great inspiration to farmers across the country.”

Established in 1997, AFT’s Steward of the Land Award recognizes the American farmer or farm family who best demonstrates leadership in protecting farmland and caring for the environment. The award honors the memory of Peggy McGrath Rockefeller, an avid farmer and conservationist who helped found AFT. Hutson is the tenth farmer to win this award.

FDA Thinks Restaurants Should Sell More Milk

Sounds like a fine idea to me. I sat at an Ohio State Ag Alumni awards banquet last year with an alum from the dairy biz. I was thrilled, being a multi-gallon per week milk drinker, when he ordered a pitcher of the milk for the whole table. His comment was that he was always amazed when he took his dairy clients to dinner that they rarely ordered milk, so he ordered it for them. Sounds like a good policy to me, like fueling your farm equipment with soy biodiesel or driving a flex-fuel car.

The US Food and Drug Administration wants to help you in this situation - a new report issued late last week suggests that restaurants should offer more lower-calorie food and beverage choices on menus, including low-fat and fat-free milk and dairy products. The report specifically calls for more low-fat and fat-free milk offerings with an eye toward the multiple nutrients advantages they hold. The report highlights successes at the quick-service restaurant counter, noting that the key to successful milk sales is appealing packaging like resealable plastic bottles.

Here’s another thought, however. The packaging is fine, but have you noticed that US restaurants appear to be trying to make their entire profit margin on milk? Why on earth are the single-serve cardboard cartons we paid 25-cents for in school being sold for 75-cents to a full dollar in restaurants? OR, if you are at a family-style or fine-dining establishment, why do you expect to pay $1.50 and up for a single glass of milk when you can buy the whole gallon in the grocery for $2? Perhaps if we can help restaurants end the dairy price-gouging on their menus we can all enjoy increased dairy demand from the food-service industry. Just a thought.

House Agriculture Subcomittee Hosts Forum on Dairy Biz

Last week, the Subcommittee on Deparment Operations, Oversight, Dairy, Nutrition, and Forestry met at Winona, Minnesota to discuss the Upper Midwest Dairy industry. Chairman Gil Gutknecht, commenting on the changes in the industry, noted that “… producers are mindful of these changes, prepared to face the challenges before them, and are open to the idea of modernized policies that will help them succeed.” Witness included Ag Marketing Service Administrator Lloyd Day, Upper Midwest Milk Marketing Area Administrator Paul Kyburz, Dr. Bob Cropp from the University of Wisconsin-Madison, and a number of leaders from the region’s dairy organizations and cooperatives.

90 individuals attended the forum, which was the third this year convened to gather feedback from producers in preparation for the 2007 farm bill.

WDBA Press Conference Held

The Wisconsin Dairy Business Association press conference we alerted you to yesterday has now been held. Thanks to Dana Pronschinske for the follow up information. Here’s a summary of what happened.

Citing reform of federal dairy policy as a top priority, the Wisconsin Dairy Business Association, representing dairy farm families, joined with industry experts and producers to urge Chairman Gil Gutknecht (R-MN) and members of the House Agriculture Subcommittee on Department Operations, Oversight, Dairy, Nutrition and Forestry to help fix what is badly broken with regard to U.S. dairy policies. The press conference was held just prior to the dairy field hearing in Winona, Minnesota on Wednesday, May 31, 2006.

In commending the Chairman and members of the subcommittee for convening the field hearing, John Vrieze, president of the Wisconsin Dairy Business Association (pictured) noted that “the complexity and importance of federal dairy policy warrants the creation of a new Farm Bill that will encourage innovation, efficiency, profitability and market access for all producers and processors.” Vrieze continued that, “our organization comprised of dairy farm families, cooperatives, agricultural lenders and manufacturers recognize we are at a critical moment in history whereby fundamental reform is essential for the long-term health of our industry.” (more…)

Dairy Policy Press Conference Planned

The Wisconsin Dairy Business Association will be conducting a press conference tomorrow to discuss how things are going in the dairy industry. It will be held at Winona State University.

The Wisconsin Dairy Business Association joined by dairy experts and producers will hold a press conference prior to the start of the House Agriculture Subcommittee Hearing to discuss the current state of the dairy industry and why the 2007 Farm Bill is critical for reforming federal dairy policy. Representing dairy farm families as well as processing entities, cooperatives, agricultural lenders and rural leaders, DBA will also unveil specific principles to reenergize the dairy industry and enable producers to compete in the marketplace.

WHO: John Vrieze — President, Wisconsin Dairy Business Association, Dr. Robert Cropp — Professor, Department of Agricultural and Applied Economics, University of Wisconsin, Director, Wisconsin Center for Cooperatives, Dana Allen, PhD — Minnesota Diary Producer; Testifying on behalf of the Minnesota Milk Producers Association