World Dairy Diary

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:

Cattle Industry Summer Conference Photo Album

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.

Helping Keep Technology Alternatives on the Farm

At this year’s World Ag Expo Dairyline’s Bill Baker interviewed Liz Dornick and Carol Campbell, dairy producers who were at one of the Dairy Profit Seminars. They talked about AFACT, American Farmers for the Advancement and Conservation of Technology. Liz is in Wisconsin and Carol is from Kansas. They’re both frustrated with the misinformation that consumers find on labels and wanted to help do something about it.

AFACT is an organization that “seeks to educate, equip and empower all participants in the food chain to understand the benefits of technology and encourage consumers to demand access to high-quality, affordable food with a minimal impact on the environment.”

They say that producers understand the long term effect of the loss of technology, especially when it comes from a mis-informed public.

You can listen to Bill’s interview with them here:

Outstanding Dairy Industry Edcucator/Researcher

One of the awards given by Western Dairy Business Magazine at World Ag Expo is the Outstanding Dairy Industry Edcucator/Researcher. This year that honor was presented to Dr. John Smith, Kansas State University.

Dr. Smith was interviewed by Dairyline’s Bill Baker. He’s humbled by the award. He’s one of the presenters at the Dairy Profit Seminars that were held at Expo. He talked about cross-ventilation for cow comfort.

You can listen to Bill’s interview with Dr. Smith here:

Ohio Department of Agriculture Issues Emergency Rule on Dairy Labeling

The Ohio Department of Agriculture has issued an Emergency Rule with the Joint Committee on Agency Rule Review (JCARR) that regulates on dairy labeling regarding recombinant bovine somatotropin (rBST), a supplement used for milk production. The issue of rBST labeling has become one of the hottest issues in Ohio agriculture, and Director of Agriculture Bob Boggs has taken the point on identifying a workable solution.

The rule will require any processor using a claim related to milk from cows not supplemented with rBST to to prove production claims are accurate through proper documentation (for example, producer-signed affidavits, farm weight tickets, and processing plant audit trails are among some of the supporting documents that must be readily available for ODA inspection). Perhaps more importantly, the rule requires such labels to also contain a contiguous, identically formatted U.S. Food and Drug Administration (FDA) disclaimer stating, “no significant difference has been shown between milk derived from rbST-supplemented and non-rbST-supplemented cows.” In other words, to quote the Director, the label will have to be on the same panel, the same size, the same font, the same color” as the marketing claim. In other words, this isn’t going to be like the surgeon General’s Warning on a pack of Camels.

In terms of the specifics of implementing the rule, the Governor has taken action to supplement the ODA rulemaking process:

Governor Ted Strickland signed an executive order today, issuing an emergency rule prohibiting the mislabeling of dairy products and defining what constitutes false and misleading labels for dairy products. The emergency rule, effective immediately, establishes acceptable, more consistent labeling practices for dairy marketing organizations and labeling entities pertaining to rbST.

The emergency rule provides guidance to the dairy industry and helps interpret the existing law contained in Ohio Revised Code 917.05 and 3715.60. These laws authorize ODA to take enforcement action if a dairy label contains false or misleading statements.

The emergency rule is in effect for 90 days while ODA completes the statutory rule-making process through the Joint Committee on Agency Rule Review. As part of the process, a formal public hearing will be held to give stakeholders an opportunity to comment on the proposed rule.

ODA Dairy Chief Lewis Jones says there are roughly 40 processors in Ohio who will be affected by the rule. ODA estimates nearly 15% of milk produced in Ohio is a result of rBST use.

Idaho Closes in on No. 3 Spot

Idaho is closing in on New York’s No. 3 spot in U.S. milk production, coming within 4 million pounds of out-producing the Empire State in September.

In September, Idaho produced 979 million pounds of milk while New York produced 983 million pounds.

While New York is well within range, major changes would have to occur before Idaho passed California and Wisconsin, the top two milk-producing states in the nation, respectively. The Golden State produces roughly three times as much milk as Idaho, and Wisconsin is not far behind California.

Australia Dairy Manufacturering Students Graduate

Students in Australia have graduated from the first industry-endorsed dairy manufacturers course. The National Centre for Dairy Education – Australia (NCDEA) and Dairy Food Safety Victoria (DFSV) joined forces to offer the course which is held at a dairy manufacturer through two four-hour sessions.

Since its inception, 44 trainees from around Victoria have completed the Fundamentals of Food Safety and Quality (Dairy) course. It covers all aspects of food safety and quality assurance and was designed specifically for small and medium-sized dairy food manufacturers.

Joanne Patterson, DFSV’s general manager of strategic policy, said although there were many food handling courses available, this was the first one specifically for dairy food manufacturers. She said holding it on site at a manufacturing facility allowed for hands-on learning.

Italian Parmalat Sells Plant

Italian dairy group Parmalat, has sold a milk processing plant to the Venezuelan government amid shortages of milk in the South American nation. Venezuelans have been scrambling for milk for several weeks and there have been inconsistent supplies this year of other basic food products, including meat, chicken and wheat flour.

Venezuela this year has suffered periodic shortages of basic food products such as milk and eggs, and recently confiscated 125 tonnes of powdered milk from a Venezuelan plant run by Switzerland’s Nestle. Parmalat on Tuesday signed an accord to sell its 1 million liter per day facility in western Venezuela to a state-owned corporation for an undisclosed sum, the company said, adding it had been in talks over the deal for two years.

Business leaders blame the situation on price controls imposed by the government of President Hugo Chavez, while government supporters say growing demand and hoarding by unscrupulous businesses have caused the supply problems. A global boom in demand has also made it difficult for the South American nation to import sufficient quantities to meet demand, according to milk industry leaders.

Production and Price Outlook From USDA

U.S. milk production numbers are lowered and prices are stronger according to a report out at the end of the week from USDA. Brenda Curtis has the report with the Chair of USDA´s World Outlook Board, Gerald Bange.

USDA Production Report (1 min MP3)

N.Y. Crowley Plant Closing

HP Hood LLC is closing its Crowley Foods plant’s manufacturing, warehousing and customer-service divisions in Albany, N.Y. and laying off 80 people. The plant’s distribution and sales divisions will remain open.

Martucci noted that Crowley recently lost an account to provide milk to the Price Chopper supermarket chain, and said workers were told the closure is resulting from low production volumes at the plant. But Bohan said the decision to close the plant did not result from decreasing sales or demand for Crowley products, adding also that it did not result from the workers’ work quality.

Indeed, a 2006 study by the Cornell University Department of Food Science said the Albany plant produced the highest-quality milk in the state. On Tuesday, Kathryn Boor, the professor who runs the study, said she was disappointed and saddened to learn of the coming shutdown.

Select Sires Recieves USDA Grant for Sexed Semen

Select Sires earned a $300,000 Rural Business Cooperative Value Added Producer Grant from USDA this month, supporting Select’s efforts in commercializing Gender SELECTed sexed semen. Select will match the grant dollar for dollar in marketing and educational efforts promoting the product, highlighting the pros and cons of using sexed semen in production.

We’ve talked about Gender SELECTed semen before, noting how it can propel your heifer calf ratio above 90% on first calf heifers.

Robo-Milker Coming to Market

This may not be the first robotic milker to hit the parlor, but nonetheless, AgriMarketing is reporting that a new model from Lely will have several new features.

For more than 50 years, Lely has been a global frontrunner in the development of advancements in farm equipment. In 1992, Lely first introduced its Astronaut robotic milking system with the goal of enhancing productivity, reducing overall operational costs and providing dairy farmers with the necessary tools to increase herd productivity through better herd management. With more than 3,700 Astronaut robotic milking system installations worldwide, Lely has secured its position as the world leader in robotic milking systems.

Lely has a wide variety of brochures about automatic milking on their website for your perusal.

Slowdown in Milk Production Expansion

A new USDA report shows smaller than expected increases in milk production.

I think it’s always nice to hear it directly from the experts.

So here’s a story from USDA featuring Gerry Bange, Outlook Board Chairman. He thinks that increased feed costs will lead to more herd culling. USDA Dairy Outlook Story (1 min MP3)

Milk Price Forecast Up

According to a story out from USDA today milk production is now forecast higher than first estimated for 2006.

You can listen to the report by USDA’s Brenda Curtis, featuring the Chair of USDA´s World Outlook Board, Gerald Bange: Milk Price Forecast Story (1 min MP3)

Bange also provided his thoughts on why the production forecast has been moved higher: Milk Production (30 sec MP3)

World Dairy Innovators

Dairy Australia has announced the opening of a “new centre designed to place the Australian dairy industry at the forefront of world dairying innovation and thinking.”

Dairy Australia managing director Mike Ginnivan said the new centre would replace the existing manufacturing sector centres and that it was the most exciting collaborative initiative for the sector in more than a decade.

The centre will be based in Werribee Victoria and is expected to open its doors in January. It will manage projects that protect the core business of the industry, capture emerging market opportunities and create new market opportunities and value chains.

Answers From Monsanto

I have some new information that goes along with a post I did last week on Monsanto’s Dairying Equals Choice. I received some Q&A with Kevin Holloway, president of Monsanto Dairy Business who shares his perspective on dairy farmers’ right to choose safe, effective tools. Here you go:

What is Monsanto’s interest in the dairy industry? Holloway Answer 1 (MP3)

What about dairy farmers who don’t use POSILAC anyway, is there any downside for them to supply specialty milk for little or no premium? Holloway Answer 5 (MP3)

Blue Ribbon Cheese

The Blue Ribbon Cheese Company, owned by American Dairy Parks, LLC, is planning on building a new cheese plant in 2009. The projected $225 million project will be located in the Fresno, California area and is planned to be state-of-the art. The new plant would use a projected 6.8 million pounds of milk a day to make cheddar and mozzarella cheeses. Read more here.

Hesston Header Heightens Drydown

AGCO’s Hesston line of hay equipment now features a new disc double conditioner header for faster drydown. The 9180 disc header features two sets of steel-on-steel herringbone conditioning rolls for smoother crop throughput and more thorough crimping. This system is known as the Advanced Conditioner System, or ACS. AGCO says efficent haymaking is about quality and time, and that the 9180 delivers, processing heavy crops faster and more evenly. The header also produces windrows that will dry down faster, with a more even crimping for a more palatable forage.

The 9180 Disc Head sports a 15′3″ cutter bar, with a rotary head driven from each end of the bar to equalize torque load, reducing wear and prolonging gear life.

Hesston points out that the cracking of the stems speeds drydown, and the ACS system completely cracks the stems while leaving leaves intact and attached. The herringbone design keeps the windrows consistent without bunching, while fluffing the crop to aid drying.

AgriMarketing magazine offers a more thorough review of the product here, and AGCO hosts a thorough look at the 9000 series self-propelled windrower here.