World Dairy Diary

Fuel Up to Play 60 for the Super Bowl

Whether you like the Patriots or the Giants – or neither one – Super Bowl time is a great opportunity to highlight the powerful partnership that dairy farmers, through their checkoff program, have forged with the National Football League.

The “Fuel Up to Play 60″ program encourages young people to get 60 minutes of activity daily, and to make balanced nutrition choices, including low fat and fat free dairy products. Mark Leitner of Dairy Management Inc., which manages the National Dairy Checkoff, says more than 70,000 schools with some 36 million students are now participating in the program.

“It makes the program by far the largest program of this type, nutritional and physical fitness program in the country, and gaining momentum because of that,” said Leitner. “Because of its scale and success we’re starting to attract additional resources, additional partners to the program — which is great for farmers, because of course, that means the message of nutrition and dairy products goes out to not just at the school level, but at the individual kid level.”

Fuel Up to Play 60 benefits from the NFL’s star power to encourage kids to be more physically active and enjoy the nutritional benefits of reduced fat dairy products including milk, cheese and yogurt. Leitner says one study of the 21 pilot markets with the program resulted in an additional 42 million pounds of milk sold.

January Dairy Outlook

USDA World Agricultural Outlook Board Chair Gerry Bange expects milk production to increase in 2012.

Talking about the latest USDA Dairy Outlook in terms of production and price estimates, Bange says, “U.S. milk production in 2012 is expected to increase about 1.3%. We’re looking now at 198.5 billion pounds.” That’s unchanged from the last forecast, but the 2011 production total was lowered. “It looks like 2011 is going to come in right around 196 billion pounds. That’s down about 100 million pounds from what we previously thought.”

Given the 1.3% increase in production expected for the coming year, Bange says they are expecting lower prices compared to 2011. “We’re now looking at an all milk price for 2012 at $18.70 per hundred weight,” he said. That’s up 20 cents from the previous USDA forecast but down 7% from the $20.14 of 2011.

Rising Milk Production Boosts Corn Sales

Milk production is on the rise according to the latest report from USDA’s National Agricultural Statistics Service.

Milk production in the 23 major States during November totaled 14.7 billion pounds, up 2.2 percent from November 2010. October revised production at 15.2 billion pounds, was up 2.5 percent from October 2010.

The report indicates that production increases came from both a per cow production increase of 16 pounds and a herd expansion of 108,000 head since this time in 2010. Notably, California continues to lead the nation in milk production outpacing second place Wisconsin by more than 1.2 billion pounds last month.

As the U.S. dairy industry is a major market for feed corn, distillers dried grains and corn silage, the National Corn Growers Association noted that this trend benefits not only dairy but also grain farmers across the country.

“It is important to value our relationship with dairy farmers, a constant and valued customer for our product,” said NCGA President Garry Niemeyer. “In 2011 alone, it is estimated that the U.S. dairy herd will consume more than 800 million bushels of corn. As they grow, so do we thus reemphasizing the importance of cooperation throughout the agricultural community.”

Prices, Cows and Milk All Up From Last Year

Despite rising feed prices and a hot summer, milk production continues to increase this year, with forecast milk output rising 1.5 percent in 2011 to 195.7 billion pounds, according to USDA.

Cow numbers continue to increase more than expected and output per cow appears to have rebounded from the July and August heat. Cow numbers are projected at 9.2 million head this year, and output per cow was raised slightly from last month to 21,280 pounds for the year.

USDA reports that milk output in August was up over 2% from a year ago, output per cow up 18 pounds over last year, and the dairy herd is now 102,000 head more than 2010 with 3,000 head added just during August.

Prices have been very strong and this year’s average all milk price is expected to set a record $20.40 cwt, up over $4 from last year. “A very strong price and an incentive for milk producers,” said USDA Outlook Board Chairman Gerry Bange. However, Bange says they are revising the 2012 outlook downward. “While we do expect production to be up 1.4%, we think it will be about 300 million pounds less than we thought,” he said. “The reason we came off the 2012 forecast is because we are looking at weaker milk prices for 2012 at $18.30 for the all milk price, and we do expect the higher grain prices to work their way through the system.”

Milk May Do Grass Good

The Associated Press picked up on a story out of Columbia, Missouri this past weekend about a Nebraska dairy farmer who found that spraying milk on his pastures improves the grass – and the cows love it.

The original story from the Columbia Daily Tribune came out of a small conference that was held in Linn, Mo., on growing thicker, more nutritious grass with milk. David Wetzel of Nebraska shared how he started a second career as a dairy farmer in 2002, making specialty butters and cheeses. Not having a use for skim milk leftover from processing the butter and cheese, he started dumping it on part of his pasture. Within a short time, the cows began to prefer the grass in that area, which was thicker and denser than in other parts of the pasture. Wetzel eventually set up test plots and found that those treated with milk grew about 1,100 more pounds of grass per acre than untreated plots, a 26 percent increase in yield.

More research is being done, but you can read more about feeding grass with milk here.

Hawaiian Dairies Post Increased Milk Production

Congratulations to Hawaiian dairy farmers! For the first time in 11 years, they posted an increase year-over-year in milk production!

Hawaii milk production increased 15 percent in 2009, the first time in 11 years the state has seen a year-over-year production increase, according to a report released Wednesday by the U.S. Department of Agriculture.

The state has 15 farms with dairy cows and two commercial dairies licensed to sell milk — Island Dairy on the Big Island, which sells under the label Hawaii’s Fresh Milk, and Meadow Gold Dairies of Honolulu, according to a 2009 USDA report.

Source: Pacific Business News (Honolulu)

High Volume Dairy Implements Robotic Palletizing

Packworld.com recently released this information about a new plant packaging for butter products using robots. This is pretty cool. For more information, download the white paper on this topic here.

California Dairies’ Turlock, Calif., plant produces more than 170 different SKUs of butter in case sizes ranging from 8 to 55 pounds. This Motoman case history describes the plant’s transition from manual to robotic palletizing.

“The robot system has improved our ability to run in a consistent manner,” says Eric Snoke, Vice President of Operations. “We calculated that the payback for the system would be two years or less, based on direct labor savings alone, and that does not take into account the reduction in workmen compensation claims.”

Dairy Producer Masters Social Media to Tell Story

Here is a positive story about a dairy producer in California who is standing up and speaking out to tell the real story of production agriculture. Her name is Barbara Jackson, and her story was recently printed in the Modesto Beef in an article titled, “Ag Tries Twitter,” a feature by Robert Rodriguez that describes how farms are feeding info to the public and their peers via social media outlets. (Photo courtesy Modesto Bee) Here is Barbara’s story…

With a hand-held video camera, a computer and 800 cows, Barbara Martin of Lemoore is letting the world into her life as a dairy operator. No, it’s not a new reality television show. And Martin isn’t craving her 15 minutes of fame. But she is joining a growing number of farmers and others in agriculture who are using social media tools to communicate with each other, send out information and educate the public about agriculture.

Dairy operators have become especially skilled at launching Facebook pages, blog posting and using Twitter, a microblogging site. Martin uses all three to tell the public about the family’s 800-cow dairy. She launched “A Dairy Goddess’s Blog” in late August.

For Martin, using social media and blogging is a way to dispel some myths about farmers and encourage a greater understanding of the slumping dairy industry. She’s blogged about everything from fixing the pricing structure for milk to sharing her childhood memories about growing up on a farm. Her most recent post is a video diary about her heifer Chica.

Building Knowledge On Transition Cow Management

Farmers Weekly Interactive recently posted an article titled, “Building Knowledge On Transition Cow Management,” and it offers tips and trips for dairy cow management during the early stages, transition period and once the cow has calved. This is a solid piece that could be beneficial to many dairy producers. Check it out.

The dry period is a critical time for dairy cows and getting the management wrong impacts on the whole lactation, says Gwyn Jones, Wern Vet Surgeons, Ruthin, north Wales.
“The success and productivity of the whole lactation depends on getting the freshly calved cow into production gently and smoothly,” he says.

There are three critical stages: The early period, the transition period and the freshly calved cow. The early dry period is meant to be a break for the dairy cow, a time in which she can rest important organs and tissues. However, she still needs to be actively managed, says Mr Jones.

“Producers should aim to keep dry cows at a body condition score of 2.5-3, while still maintaining high dry matter intakes to avoid displaced abomasums in the subsequent lactation, by feeding a low energy, high fibre diet,” he says.

“Dry cows at all stages – housed or grazed – should have ad-lib access to good quality, palatable straw or hay, and should be eating at least 4kg a day of it when out at grass. All forages must also be of good quality so intakes are maximised.”

New York Times on the State of the Dairy Industry

“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.

New DeLaval Swinging Cow Brush Makes Cows Happier, More Productive

A new study by Cornell University shows that dairy cows using the DeLaval Swinging Cow Brush (SCB) register higher milk production and lower clinical mastitis cases. The SCB is a grooming device that allows a cow to brush and scratch herself at her leisure!

The study compared different groups of cows housed in pens using the Swinging Cow Brush to the similar reference groups kept in identical pens under the exact same conditions but without the SCB. The research team concluded that second lactation cows using the SCB showed a significant and increasing difference in daily milk production of up to +1kg per day.

According to DeLaval the investment made on SCB can be covered several times over by the profits made through increased milk production and the cost savings achieved through mastitis prevention. Additionally, the SCB keeps cows clean, active, calm and more balanced.

Animal Antibiotics, Resistance and Human Health

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

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

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

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

Export Incentives for Dairy Products

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

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

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

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

Land O’Lakes to Close Wis. Butter Plant

Land O’Lakes Inc. plans to close its butter manufacturing plant in Madison, Wis. and lay off 120 employees.

The cooperative based in St. Paul, Minn., said Madison Dairy would close within 60 days because it no longer is economically feasible to operate.

Casey Langan of the Wisconsin Farm Bureau said the shutdown is the type of thing the industry has tried to avoid, because it reduces infrastructure at the same time the state’s milk production has grown, with cheese plants running at capacity.

Dean Foods to Close Meadow Gold Dairy

Dean Foods announced that it will be closing its Meadow Gold dairy plant in Lincoln, Neb., causing about 100 people to lose their jobs. The plant produces milk and other dairy goods, bottled water and juices.

Another 70 people working in sales and distribution will continue to work in Lincoln. Dean Foods spokeswoman Marguerite Copel said the plant would close in September, but she could not name a date. It was unclear where the Lincoln plant’s production would move, but she indicated it would remain within the region.

AP reports dairy plans to engineer “cow of the future”

The Associated Press released an article reporting the U.S. dairy industry plans to engineer the “cow of the future.” This “ideal” cow would pass less gas as part of its project aimed at cutting the industry’s greenhouse gas (GHG) emissions by 25 percent by 2020. The article lists several other GHG emission projects that will be explored including turning digester-generated methane into marketable energy. This article can be found in several major publications, including the Minneapolis Star Tribune.

The cow project aims to reduce intestinal methane, the single largest component of the dairy industry’s carbon footprint, said Thomas P. Gallagher, chief executive officer of the U.S. Dairy and Dairy Management Inc.’s Innovation Center in Rosemont, Ill. One area to be explored is modifying the dairy cows’ feed so they produce less methane, said Rick Naczi, the leader of the initiative.

“Right now there is some work being done on fish-oil additives and some other things,” he said. “The cow is responsible for the majority of the greenhouse gas on the farm itself. We know there are ways that we can find to cut or reduce that production.”

Another possible solution is targeting the microbes in the cow’s gut, Naczi said. “You can change the mix of the bacteria in the cow’s rumen and change the methane production that way.”

He expects the research to develop some solutions within a year.

Elanco Purchases Posilac From Monsanto

Here’s an interesting announcement. Elanco has signed an agreement to buy the worldwide rights to Posilac from Monsanto. The deal includes the product’s supporting operations. I hope they have good luck with it. There sure are a lot of activists against it. I don’t think they’ve got any scientific basis for their fears but sometimes perception is reality. I sure don’t mind the product and think it’s perfectly safe.

“Global dairy demand is increasing, outstripping supply, and consumers are seeing rapidly rising prices,” said Jeff Simmons, president, Elanco. “With the purchase of Posilac, Elanco can enhance its overall product portfolio and work together with the industry to provide dairy farmers more options and give consumers affordable choices. Critically, we remain focused on the health and care of the cow in working with farmers to increase global milk supply.

Elanco has exclusively sold sometribove outside of the United States for a decade. Posilac has been safely used for more than 14 years. (more…)

Beef Quality Assurance Awards Announced

The first ever winners of the BQA Award were announced today and one of them is a dairy producer.

Quality. It’s not only a word written in an instruction manual but a responsible action – one must live it and then teach it. That was the underlying theme this week as two producers were honored with the national Beef Quality Assurance (BQA) award, created to recognize outstanding beef and dairy producers from across the country who incorporate BQA principles as part of the day-to-day activities on their operations. The winners were selected based upon their commitment to beef quality assurance while operating sustainable cattle operations.

A common trait among the two winners is a strong desire to continually improve BQA on their operations while successfully encouraging others around them to implement BQA. The National BQA award winners are selected annually by a committee of representatives from universities, state beef councils and cattle industry groups. For more information about the beef checkoff or BQA program, visit www.bqa.org, www.dbqa.org or www.beefboard.org.

Listen to my interview with Jim and Anne here: cisc-08-bqa.mp3

Cattle Industry Summer Conference Photo Album

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S.D. Cheese Plant Renovation to be Completed

Davisco Foods, headquartered in Le Sueur, Minn. has announced that a multi-phase, $8.22 million improvement project to the Lake Norden Cheese Co., S.D. is on track to complete in May 2008. When completed, Lake Norden will increase its whey processing capacity by 60 percent.

The company is adding a new whey pasteurizer, additions to its whey processing infrastructure and upgrades to the factory’s utility infrastructure to accommodate future growth in both milk and cheese processing capacity. The Lake Norden factory also is adding nearly 50,000 square feet to its dry storage capacity.

Davisco Foods International operates five dairy processing plants in South Dakota, Minnesota and Idaho.

Winn Dixie to Sell Two Plants

Winn-Dixie Stores said it has agreed to sell its two dairy plants, located in Hammond, La., and Plant City, to Southeast Milk.

Winn-Dixie said in a release that it is choosing to focus more on its retail operation. Once this sale is complete, its only remaining manufacturing operation will be the Chek Cola plant in Fitzgerald, Ga.

Founded in 1925, Jacksonville-based Winn-Dixie is one of the nation’s largest food retailers, with 521 grocery locations. Southeast Milk is the largest operating co-op of dairy farmers in Florida, with more than 300 family-owned and -operated dairy farms. It supplies to most of the southeastern United States.