Archive for Dairy Industry – Page 15

American Dairy Coalition Develops Pricing Priorities

The American Dairy Coalition has announced policy goals designed to increase milk prices and strengthen farmers’ voice.

The “emerging priorities” were announced May 2 after two virtual forums about the federal milk marketing orders.

The group supports changing the Class I (fluid milk) price calculation back to a method using the higher of the Class III or IV price.

To improve buyers’ ability to hedge, the 2018 Farm Bill changed the formula to an average of the two class prices plus a fixed adjuster.

But unusual market conditions early in the pandemic caused this pricing mechanism to go negative for several months and reduce many farmers’ income.

The coalition also wants milk checks to be simplified and provide added clarity about how farmers are paid. This policy stems from the concern that cooperatives’ interests may conflict with farmers’ because some co-ops have developed large processing businesses.

Many farmers also want to remove bloc voting, in which a cooperative votes on behalf of its members in federal order referendums. Farmers would like to vote confidentially and individually, coalition CEO Laurie Fischer said.

Despite simmering frustration, the coalition said farmers have faced obstacles in their efforts to change the system. The federal milk pricing system is notoriously complex, and some farmers fear losing their markets if they voice their opinions.

Source: lancasterfarming.com

The drums of war are beating and the dairy sector knows it

A year ago we wrote in these lines that China was stockpiling foodstuffs as if preparing for war. Nobody imagined the current context. Today we could observe that the US is following the same strategy.

In April 2021 we talked about the speculations in the market due to the growth of Chinese food imports. At that time, everyone was looking at a possible invasion of Taiwan by the Asian giant, it seemed to be the only possible conflict on the horizon. Perhaps the Chinese already knew something of what was to come.

It became clear that Russia’s invasion of Ukraine was not in the papers of any Western leader. But, it seems, today everyone is speculating that the conflict may be extended in time and even widened.

eDairyNews was present at the Annual Conference of the American Dairy Products Institute and the American Butter Institute (ADPI/ABI 2022) in Chicago, and there we were able to learn about the current situation of the world dairy market.

In the USA there is a very important shift in production towards cheese, which is causing a decrease in the volume of local milk powder. This is largely due to the large investment that DFA has made with Glambia in Indiana. This new, modern, fully robotized plant demands a lot of milk, which has weakened the milk powder and buttermilk chains.

The local U.S. market is now about 1% short of milk, in the face of strong demand. The biggest problem observed by farmers is that of generational turnover. In view of this problem, DFA is promoting the investment of its producer partners to bring young people to the farm with the incorporation of state-of-the-art technology.

The demand continues and will continue to be strong in the coming months, even with the decrease in Chinese purchases due to its particular Covid enclosure. Today, the biggest problem that China imposes on the world is the great logistical bottleneck. It is estimated that the inconveniences may last until the end of the year.

In the meantime, and in silence, North America is trying to promote food stockpiling, the drums of war continue to beat.

Source: eDairyNews

Why the price of dairy products continues to rise as inflation slows

The U.S. Bureau of Labor Statistics said food prices have risen 9.4% over the past year. But the Bureau said in April, the rate of inflation fell for the first time since August 2021. But prices haven’t slowed on dairy products.

The cost of butter and margarine has gone up more than 19% over the past year. Milk prices are up nearly 15%.

“We have to get more for our product because everything we buy to make milk costs us more money,” Dustin Bliss, the owner of Bliss Dairy Company, said.

Bliss said right now, dairy farmers are facing two options.

“The option is to either stay in business, and pay the extra money for fertilizer, for seed, for fuel, or go out of business and do something else with your land,” Bliss said.

He said over the past year, his labor costs have increased 50-100% because there are fewer workers.

“My decisions throughout the labor shortages has just been to pay more money. There wasn’t an option between getting the chores done adequately or cutting corners in my mind or just staying in business. We chose to stay in business,” Bliss said.

It’s also become more expensive to feed the animals because the cost of feed and fertilizer has risen.

“The average cost of fertilizer has more than doubled for everything. Some products have increased 250%. You don’t have an option again. I have 1200 animals here I have to feed. I can’t just use less fertilizer,” Bliss said.

Combine these expenses with the rising cost of fuel, a truck driver shortage, and farms on track to spend the most they have in a long time.

“I would say an average year, over the past ten years, the month of May and summer has run between $10,000 and $15,000. I expect that cost to eclipse $30,000 just for the month of May,” Bliss said.

Source: wkbw.com

Fonterra cuts forecast milk price payout to farmers as demand drops

Fonterra has cut its milk price payout range for the first time this financial year, as short-term global demand drops.

Fonterra milk truck picking up Simon Mackle's milk.

The new mid-point in of $9.30 would still be a record payout for farmers, Fonterra said. Photo: RNZ / Rebekah Parsons-King

The co-operative now expects this season’s payout to farmers to be between $9.10 and $9.50 per kilogram of milk solids compared to the prior forecast of between $9.30 and $9.90 per kgMS.

The new mid-point of $9.30 would still be a record payout for farmers.

Fonterra chief executive Miles Hurrell said the downgrade was due to a number of recent factors which resulted in short-term impacts on global demand for dairy products.

They included lockdowns in China due to Covid-19, the economic crisis in Sri Lanka and the Russia-Ukraine conflict, he said.

“As an exporter to 140 countries we deal with these kinds of global events all the time, but right now we’re seeing the impact of multiple events.”

Coupled with inflationary pressures, it was surprising to see buyers being cautious, he said.

“This will be disappointing for our farmers, but the change in global dairy prices is coming off record high levels.”

The forecast milk price payout had been upgraded several times this financial year as demand outstripped supply.

He said the new payout would still see about $14 billion pumped into the local economy through milk price payments.

The downward revision on the milk price payout follows the fall in global dairy prices of 8.5 percent at the most recent global dairy auction – the biggest single drop since 2015.

The price for whole milk powder, a key driver of the price local farmers are paid, had fallen 18 percent over the past four auctions.

Hurrell said while the long-term outlook for dairy remains positive, he expected global supply and demand to be more balanced over the rest of the year.

Global milk production was expected to be constrained in the northern hemisphere by high feed, fertiliser and energy costs, he said.

“We expect demand to recover as the short-term impacts begin to resolve.

“While there is still a high level of uncertainty in global markets, the majority of our milk has been contracted for the season. It’s for this reason that we’ve made the decision to narrow our forecast range to plus or minus 20 cents.”

Hurrell said the co-operative would continue to monitor the potential effects on demand from inflationary pressure, rising interest rates, Covid-19 and geopolitical events.

Source: rnz.co.nz

Whey: history, uses and its role in the dairy market

When we say that milk is versatile, it is perhaps one of its most interesting characteristics. Whey, a by-product of cheese production, whose raw material is milk, is full of nutritional properties, applications and also history

When we say that milk is versatile, it is perhaps one of its most interesting characteristics. Whey, a by-product of cheese production, whose raw material is milk, is full of nutritional properties, applications and also history, because it has not always had the market value and utilities that it has today. 

For a long time it was a waste that was difficult to eliminate due to the large quantities produced in cheese factories, but today it is one of the most used elements in the food industry, and it was new technologies that made it possible to separate its main nutrients and convert them into new products such as whey protein concentrates, emulsifiers, stabilizers and other additives. 

The use of whey has a 7,000-year history. It was first used as a medicine for the treatment of infections, wound healing, stomach diseases (Hippocrates 460 BC), and for the preparation of soups and whey butters (17th century). In the modern age it was considered a waste and became a problem for the environment. In the second half of the 20th century, technological advances made it possible to transform this underappreciated product into a valuable raw material.

Companies that process whey produce different types of high value-added ingredients, combining separation, demineralization and drying processes. The main uses for these ingredients are additives in other dairy products such as yogurts and desserts, baked goods, beverages, sausages and other foods, as well as in pharmaceutical and/or higher value-added food products such as lactose and proteins. These companies include Canada’s Agropur, Chile’s Prolesur and Argentina’s Franz and Mafralac, which have a strong presence in our eDairy Market.

Almost 90% of the volume of milk is whey and contains approximately 55% of its nutrients: lactose (45 – 50 g/l), soluble proteins (6 – 8 g/l), lipids (4 – 5 g/l) and mineral salts (4 – 6 g/l). 

After water, whey contains the most lactose, 70% of total solids, a great raw material for the production of high added value products. It is used as an ingredient in infant formulas and as an excipient in the pharmaceutical industry. 

Soluble proteins are the most important nutritional component, with practically 12% of total solids in whey, its chemical, physical and functional properties are perfect for its use in food and pharmacology. The β-lactoglobulin its main component with about 50% and α-lactoalbumin with 20% of the soluble whey proteins; in addition, it contains other proteins such as immunoglobulins, bovine serum albumin and other minor ones such as lactoferrin, lactoperoxidase, and glycomacropeptides. 

Whey proteins contain high levels of amino acids such as tryptophan, lysine and sulfur amino acids (cysteine, methionine and glutathione) of very high nutritional quality, highly valued for their composition and digestibility, and this is the reason why they are nutritionally superior to vegetable proteins. 

These proteins were gaining great relevance in the food industry due to their high nutritional value, and interesting applications were found in the pharmaceutical industry, since they could have antibacterial and antiviral effects. 

Its functional properties also make it an attractive food ingredient. Solubility, gelatinization, emulsifying and foaming capacities are the most outstanding. They are egg protein replacers in confectionery and bakery products. 

Whey is used in infant food, for the elderly and in supplements for athletes for its nutritional properties, for the manufacture of fermented and non-fermented beverages, in cereal bars, in meat products such as sausages and in a wide variety of soups and sauces. 

Whey is rich in potassium, calcium, phosphorus, sodium and magnesium. It contains B vitamins (thiamine, pantothenic acid, riboflavin, pyridoxine, nicotinic acid and cobalamin) and ascorbic acid, important components in children’s diets, for their contribution to the development and strengthening of bone structure and tissues.

Whey proteins accounted for 7.2 % (OCLA) of total exports from Argentina in 2021.

OCLA
OCLA

Dairy industry, from the dairy farm to the shelves, is huge, involving thousands of families and companies that make a living from it. A lot of knowledge and technology is applied in each food that brings it to our table. 

Younger EU population eats more dairy now than 3 years ago

34% of 18-35-year olds are consuming more dairy

According to a consumer survey by Tate & Lyle, the purchase of dairy products has been on the decline for several years with many turning to dairy alternatives. However, a third (34%) of 18-35-year-olds in Europe are consuming more dairy than they were three years ago.

Tate & Lyle PLC, a global provider of food and beverage ingredients and solutions, commissioned new research amongst consumers in the UK, France, Germany, Poland, Spain, and Sweden, to investigate attitudes towards dairy consumption.

The survey found that the frequency in which young consumers eat dairy products is high, with 71% eating cheese, 81% drinking milk and 69% eating yoghurt at least once a week.

Furthermore, 77% of 18-35-year-olds said they are happy to consider eating more dairy products if they could try products with less fat, sugar, and allergens.

“Our research has uncovered some interesting emerging trends when it comes to how and why consumers are purchasing dairy,” said Beth Nieman Hacker, market research director at Tate & Lyle “It is so important to understand how behaviours, values and appetites are changing and the drivers behind these shifts, so food and drink brands can launch products that meet the needs of consumers today.”

The research uncovered opportunities for food and drink manufacturers to do more to encourage young people to eat dairy products.

Health is a key priority for the younger generation, with 1 in 4 (39%) of 18-35-year-olds stating they felt dairy products contained too much fat and 34% claiming that dairy products contain too much sugar.

Younger consumers are much more likely to eat dairy alternatives – with 35% eating non-dairy cheese, 33% eating non-dairy ice cream and 46% non-dairy milk, at least once a week.

A flexitarian diet seems to be on the rise amongst consumers of all ages, who switch between dairy and dairy alternatives depending on the meal type. 39% said they eat dairy cheese at dinner, compared to 26% who chose a dairy alternative. 32% preferred dairy yoghurt at breakfast, while 26% liked a dairy alternative yoghurt as a mid-morning snack.

Consumers are also looking to make more sustainable choices – with a fifth (18%) of older consumers saying products with environmental certifications would be a big factor in them increasing their dairy intake, while younger consumers were looking for more environmentally-friendly packaging (19%) and a longer shelf life (20%).

“Our research found that nearly three quarters of 18-35-year-olds who are eating less of dairy are happy to consider eating more dairy products if they could try products with less fat and sugars,” said Delphine Forejt, dairy category development manager at Tate & Lyle. “Whilst dairy products have long been associated with goodness, in today’s world, the dairy industry must adapt to modern consumer tastes, convenience and healthier lifestyles.”

Source: thedairysite.com

Most dairy firms in Ukraine continue operation

Arsen Didura, executive director of the organisation, estimated that given the warehouse stocks of dairy products the domestic demand could be met by Ukrainian companies in the near future.

Raw milk production remains stable

The country’s per capita milk production is likely to rise from 212 kg in 2021 to 229 kg in 2022, the union of dairy enterprises estimated.

It is believed that most dairy cows in the country are concentrated in the central and western regions, where no active fights with the Russian troops have taken place yet.

Imports not needed

Given the large stocks and sustainable production, adding dairy products to the list of critical commodities leads to a “useless waste of precious foreign exchange funds,” the organisation said in the statement.

Besides, dairy imports would hinder domestic dairy production, and consequently, hamper raw milk production, the union added.

On 24 February, the first day of the Russian invasion, the Ukraine cabinet of ministers approved a list of critical commodities that were allowed to be imported into the country. On 28 February, the list was expanded with milk, cream, butter, and cheese. On 10 March, the authorities added whey, and on 13 March, condensed milk, yoghurt, kefir, and other fermented or fermented dairy products.

On 20 March, the ministers also added milking machines and other equipment for milk production or processing to the list of critical commodities.

In this context, the government should focus on supporting the domestic dairy industry, paying special attention to preserving the number of milk cows, the union said.

Withdrawing milk and dairy products from the list of critical commodities should help to beat that goal, the union claimed.

Reserves are sufficient

As stated by the minister of Agrarian Policy and Food of Ukraine, Mykola Solsky, the country has sufficient food reserves, including dairy products.

“We have reserves for basic food products for several years. Since we have a lot of grains, and some of them are [used in] animal feed, we will definitely have meat and dairy products. And there is no particular cause for concern in this case,” Solsky said.

Source: dairyglobal.net

From Ukraine to COVID and Sri Lanka: Fonterra says global shocks hit demand for dairy

Fonterra cut its Farmgate Milk Price forecast range for the year from $9.30-9.90 per kgMS to $9.10-9.50 per kgMS. This reduces the midpoint of the range, which farmers are paid off, from $9.60 per kgMS to $9.30 per kgMS.

Fonterra CEO Miles Hurrell said the move reflected demand for dairy products which have been hit by the COVID-19 lockdowns in China, the economic crisis in Sri Lanka and the Russia-Ukraine conflict.

“While the long-term outlook for dairy remains positive, and we expect global demand and supply to be more balanced over the rest of the year, we have seen these short-term impacts flow through into pricing on the Global Dairy Trade (GDT) platform. For example, average prices for whole milk powder (WMP), a key driver of the milk price, have decreased by 18% over the past four GDT events,”​ he noted.

Fonterra’s scale and value-added focus offers comfort 

Fonterra exports dairy products to 140 countries worldwide and Hurrell said the cooperative has to ‘deal with these kinds of global events all the time’.

However, the current situation is distinct because the dairy markets are seeing ‘the impact of multiple events’. “Coupled with inflationary pressures, it’s not surprising to see buyers being cautious,”​ the chief executive noted.

Conceding that this update will be ‘disappointing for our farmers’ Hurrell stressed that the dip comes off the back of ‘record high’ farmgate milk prices. “At a midpoint of $9.30 per kgMS, this would continue to be the highest forecast Farmgate Milk Price in the Co-op’s history and would see us contribute almost $14 billion into New Zealand’s economy through milk price payments, which supports the wellbeing of our local communities.”

Fonterra remains well-placed to manage any downward pressure on pricing thanks to its scale and focus on high-value products, the dairy executive claimed. “Our scale and ability to move products between different markets and categories remains important, and reinforces our strategic focus on ensuring our milk is going into the highest value products.

“Looking out to the rest of the year, global milk production is expected to remain constrained as high feed, fertiliser and energy costs continue to impact production in the Northern Hemisphere, and we expect demand to recover as the short-term impacts begin to resolve,”​ he predicted.

The majority of Fonterra’s milk has been contracted or the season, allowing the company to narrow its milk price forecast. However, Hurrell did note a degree of ‘uncertainty’ on the global dairy market. “As always, there are a number of risks we are continuing to keep a close eye on, including potential impacts on demand from inflationary pressures and rising interest rates, increased volatility as a result of high dairy prices, and further disruptions from COVID-19 and geopolitical events.”

Source: dairyreporter.com

Dairy access remains ‘great frustration’ in bilateral trade ties: U.S. representative

United States Trade Representative Katherine Tai said dairy and softwood lumber remain thorny issues in the Canada-U.S. trade relationship.

U.S. Trade Representative Katherine Tai, shown in Washington, D.C., in February 2021, met with her Canadian counterpart, International Trade Minister Mary Ng, on a trip to Ottawa this week. (Bill O’Leary/The Washington Post/The Associated Press)

United States Trade Representative Katherine Tai says the status of access to Canada’s dairy market remains a “source of great frustration,” which, along with the decades-long softwood lumber dispute, represent “fundamental differences” between the Canadian and American approaches.

At the tail end of her trip to Canada, Tai said in an interview on Rosemary Barton Live, which aired on Sunday, that rising housing costs made the softwood lumber challenge even more difficult.

“The two of us remain committed to talking and thrashing out the details for how we might be able to make some progress. But it’s been a thorny issue for decades, for sure,” Tai told CBC chief political correspondent Rosemary Barton.

Tai was referring to her Canadian counterpart, International Trade Minister Mary Ng, with whom she met this week.

WATCH | U.S. trade representative discusses irritants in Canada-U.S. ties

How strong is the Canada-U.S. trade relationship?

Chief political correspondent Rosemary Barton speaks with U.S. Trade Representative Katherine Tai, on her first visit to Canada, about the state of the two nations’ trade relationship. Tai says dairy and supply management remain a point of contention between Canada-U.S. economies. 8:50During a news conference in Ottawa on Thursday, both repeatedly praised the two countries’ ability to work through disputes and have productive talks.

Canada has launched a challenge to existing U.S. duties on Canada softwood under the new North American free trade deal’s dispute resolution process. It’s just the latest development in a fight that has lasted for decades.

Dairy difficulties

Another provision of the Canada-U.S.-Mexico Agreement (CUSMA) that was seen as a win by the Americans were changes to access to Canada’s dairy industry. Tai challenged Canada’s interpretation of the deal’s provisions, arguing it was not properly implementing them.

A dispute panel found in January that Canada was not living up to its promises under the deal, and the Americans claimed victory. Canada has proposed a new import allocation system, but it’s been criticized by U.S. producers. The dairy industry in Canada has defended this country’s ability to set its own import framework.

But Tai told Barton that improved market access “has not been realized,” which was “a source of great frustration” for American dairy farmers and elected representatives who supported CUSMA in part because of the dairy provisions.

Asked about the dairy dispute during their Thursday news conference, Ng told reporters that Canada’s trade obligations were “something that we take very seriously” and that “Canada will certainly implement the findings of the panel report.”

But she also noted that the federal government knows “how important this issue is to our farmers, to industry and to the workers they employ.”

“Of course, in a relationship as large as the one between Canada and the United States, there are going to be issues. The question really is how we’re going to work on those issues,” Ng said.

Mary Ng, right, Canada’s international trade minister, and U.S. Trade Representative Katherine Tai speak at a joint news conference in Ottawa on Thursday. (Adrian Wyld/The Canadian Press)

Possible drawdown of China tariffs

Tai was also asked about the possibility that the U.S. would remove some import tariffs on goods from China, first put in place under former president Donald Trump.

Tai has signalled that removing the tariffs may be one tool for mitigating the effects of inflation in the U.S.

But she told Barton that this was the beginning of the process, and while rising prices were “anxiety inducing,” decisions needed to be made in the wider context of China-U.S. trade considerations.

“Whatever we do in the near term to address the pressures and the challenges that we are facing in the near term cannot, in my view, undermine or lock us into a path that would make us more vulnerable and less strong in the medium term coming out of these turbulent years,” she said.

You can watch full episodes of Rosemary Barton Live on CBC Gem, the CBC’s streaming service.

Source: cbc.ca

Sky-high commodity prices and dirt-cheap debt are whipping up a farm-buying frenzy in Australia

The median price of Australian farmland grew by more than 20 per cent last year — far outpacing growth on the ASX 200 and residential property price rises, according to Rural Bank.  

Key points:

  • The median price of Australian farmland rose to $7087/ha in 2021
  • The farmland market is growing much faster than the ASX or residential property market
  • The area of farmland that went under the hammer was larger than many countries, including Portugal, Austria and Ireland.

The soaring prices came despite the highest number of transactions in almost three decades, with a total area of just under half the size of Victoria changing hands.

In its yearly Farmland Values Report, specialist lender Rural Bank said the demand for farmland was being fuelled by historically low interest rates, soaring commodity prices and strong production.

The median price per hectare (ha) grew by more than 30 per cent in Victoria ($10,583/ha), Queensland ($,6,827/ha), and Western Australia ($4,178/ha).

Nationally it sits at $7,087/ha.

The growth in farmland value over the past 20 years has risen to 8.4 per cent, outpacing the ASX200’s 4 per cent growth over the same time frame, and the capital city residential market’s 5.4 per cent rise over the past 18 years, according to Rural Bank.

“Generally we’ve had a very favourable season for agriculture in 2021,” Rural Bank general manager sales, partnerships and marketing Simon Dundon said.

A map of Australia overlaid with the figures displaying the price paid for farmland per hectare in each state.

The Rural Bank Farmland Values report shows continued demand for Australian farmland has pushed prices higher in every state for the eighth year in a row.(ABC News: Sharon Gordon)

Commercial real estate firm LAWD senior director Danny Thomas told a recent NSW Farm Writers event the market “was absolutely red hot”.

“There’s very few segments of the market that are not performing extremely well, and the depth of purchases is unprecedented,” Mr Thomas said.

Rising rates

Rural Bank anticipated demand for farmland would remain strong through 2022, but noted rising interest rates could curb the extent of the demand.

“Finance is an input, and it will certainly play on people’s minds,” Mr Dundon said.

“But the caveat I’d put on that is that interest rates are still at historically low levels and farmers are generally long-term investors.”

An aerial photo of South Callandoon property on the QLD border near Goondiwindi.

The sale of South Callandoon in Queensland was described as a “once in a lifetime” transaction.(Supplied: Nutrien Ag Solutions)

Who’s buying?

The Weekly Times has revealed Australia’s richest woman, Gina Rinehart, is no longer the largest landholder in Australia, with Crown Point Pastoral Company’s Viv Oldfield and Danny Costello now sitting at the top of the list.

Crown Point Pastoral now owns a total of 7.2 million hectares of land across northern Australia, after it purchased four stations from Ms Rinehart’s Hancock Prospecting and S Kidman & Co portfolio, for $3.1 million, Weekly Times editor James Wagstaff told RN’s Country Breakfast.

A spending spree by Canadian pension fund PSP Investments has resulted in a $5 billion portfolio of assets, and places the fund as the biggest owner of farmland by value.

In 2020, the ABC revealed PSP, which manages the pensions of the Canadian Royal Mounted Police and its public service and armed forces, was the largest owner of water rights in the Murray Darling Basin.

Through its subsidiaries, Daybreak Cropping, Australian Food and Fibre, Aurora Dairies among others, it acquired AusCott in May last year, including AusCott’s 40,000 hectares of land and cotton gins in northern NSW and the Riverina.

Earlier this year PSP Investments acquired 1.1 million hectares of land in the NT, for $96 million. 

Family farms expanding

At the same time larger corporate players have been expanding their holdings, across the country some of the highest prices paid for farmland have been by family farms looking to acquire neighbouring or local parcels of land that have hit the market.

“Some corporate landowners have been selling off land, and it has been really refreshing to see the family farmers expanding and buying those properties,” Mr Dundon said.

That was the case in 2020, in southern New South Wales, when the Westchester Group, a US fund, listed an aggregation of broadacre properties that were purchased in smaller parcels by neighbouring family farming operations.

Oxley Capital Partners managing director Ben Craw said investments made 7 to 10 years ago by fund managers were winding down.

Gina Rinehart smiles while standing in front of cattle pens

Hancock Prospecting executive chairman Gina Rineheart is no longer Australia’s biggest landholder.(Supplied: Hancock Prospecting/James Radford)

“There’s been anecdotal evidence in the market of a number of closed-end funds reaching the end of their time horizon,” he said.

The latest data from the Foreign Investment Review Board revealed a slowing in foreign purchases of Australian farmland.

But Mr Craw said the ability for large corporate investors to sell off land to local buyers made Australia an attractive investment.

“It’s a positive, and the groups we speak to, domestic investors and offshore capital, they see Australia very favourably.

“So there’s a lot of appetite, and a lot of money that still has Australia in its sights.”

A gravel farm path with a large tree with a field nearby

Rural Bank expects the demand for farmland to remain strong in 2022.(ABC Rural: Jo Prendergast)

Good days

Mr Dundon expects the market to remain “buoyant” in 2022.

Mr Craw said the run of good seasons, and the cash flowing through the regions was reaching beyond the farm gate.

“There is a lot of prosperity when you go into the regions,” Mr Craw said.

“You talk about the social fabric of regional Australia, you can really feel the prosperity, which will influence more younger people to come into agriculture.”

Source: abc.net.au

Why the Texas dairy industry keeps growing

When it comes to cows, Texas is known more for beef than dairy.

The state leads the nation in beef cattle. But dairy has been on the rise for several years now, and the industry appears poised to keep growing. Texas recently passed Idaho to become the third-largest milk producing state in the U.S. Darren Turley, executive director of the Texas Association of Dairymen, spoke to Texas Standard about what’s behind the growth. Listen to the interview above or read the transcript below.

This transcript has been edited lightly for clarity:

Texas Standard: What’s behind all this growth in the Texas dairy industry? It’s my understanding that if you look at the top five, Texas has surpassed New York and Idaho more recently, right?

Darren Turley: Yes, sir. We have worked diligently for about a year and a half, two years to kind of overtake New York. That was a big accomplishment. And then surprisingly, the first of this year, we’ve surpassed Idaho as well. We’ll see if we can continue that throughout the year. But right now, we are surpassing them.

Holy cow. Well, is this growth from brand new dairies or dairies from out of state moving here or existing dairies increasing the size of their operations?

We really haven’t had new dairies come to the state now in several years. And so we’re really seeing a continued growth of better genetics and management. And we’ve had a couple of mild years. I know we’ve had a cold snap in there, but in general the last couple of years have been pretty mild weather and those mild summer are sure to help milk production for dairy cows.

It’s funny because it almost seems counterintuitive. We’ve been reading and hearing so many stories about Texas becoming hotter and drier, what with climate change. It struck me as somewhat counterintuitive when I read this story that Texas had moved into the number three slot.

Well, it is, but the dairy industry is up in the northern part [of the state]. Now 82% comes out of the panhandle of the state. And cows don’t really like humidity. Cows don’t really like wet weather. And so these factors are a plus for the dairy industry. Now, making crops and feeding the cattle is a challenge in dry weather, but milk production usually works very well.

Let me ask you about what that does, if anything, to the milk itself. Does climate affect anything about the product? Is there something about raising dairy cows in Texas versus a place like Wisconsin, that could affect the product?

No, not really. Most of the products are homogenized to be the same. And so there’s very little impact. There would be a slight change in what we feed the cattle. But the way we feed cattle is so scientific that we just balance the ingredients, basically back to amino acid levels, not even just protein and carbohydrates. So that’s usually not too big of an impact.

Has the industry actually been making a push in Texas to grow the dairy industry, or is this something that’s just sort of organically occurred as people were looking for new ways to grow their agricultural investments?

Well, Texas had seen some growth a decade ago. We had some California dairies that had moved in and they have now matured. And production is doing well. As far as the industry goes, the big news for the dairy industry is we do have some new plants in place that are going to be breaking ground, building construction in the next few years and will give us the ability to grow even further. In two to three years from now, we should see another pretty good growth. I don’t know that we we’re big enough to take Wisconsin for number two position, but we will continue to mature and produce more milk in Texas.

Tell us a little bit about the investments being made. Where’s the money coming from to build these plants, as you’re describing?

We have a California-based Hispanic cheese production facility. Cacique Cheese is coming from California to make their first expansion is going to be in the Amarillo area. We also have a Leprino cheese plant, which is going to be quite large outside of Lubbock that has just been announced as well. So those two facilities will give us roughly another 200 loads of milk of processing capacity. So 200 more truckloads a day of milk eventually will be made in Texas to fill those plants.

I’m no cheese connoisseur, but. But I wonder. Do you think Texas cheese could make a mark in the industry?

It is more and more. Most people are eating a lot of Texas cheese, whether they know it or not. It’s been labeled and a lot of fast food cheeses [are from Texas]. So Texas is continuing to grow. We also see the location of Texas with the port and then, of course, our southern neighbors is being a bigger factor for export. Right now, almost one in every five milk trucks is going to export. And so we continue to grow that market as well. And so for Texas and its location, that’s a benefit to us in the future.

Source: texasstandard.org

War and covid disrupt markets

China’s covid-19 lockdown has caused huge disruptions in the supply chain and contributed to the softening of dairy prices through April.

Dairy prices finally went off the boil in April after three negative GDT auction results followed the dizzying heights of January-February.

Whole milk powder has seen some of the biggest price drops. 

Its price index declined by the largest amount in over a year, down 4.4% to an average winning price of US$4207/t following the April 20 auction.

That result, which saw a 3.6% fall in prices came as no surprise to analysts, given what is going on around the globe.

NZX dairy insights manager Stu Davison said he was surprised the percentage fall wasn’t higher.

In an NZX pre-auction update, he said “simply put, my expectations are very bearish prior to this auction”.

China’s covid-19 lockdown in Shanghai, the Ukraine war and Sri Lanka’s economic crisis had all fuelled the deterioration of demand, he said.

Prices, he said are “down but not out”, pointing to turbulent times ahead for the global dairy market.

ASB’s Commodities Weekly similarly pointed to China, saying the lockdown was causing huge disruptions to the country’s domestic supply chains. 

Westpac agricultural economist Nathan Penny put the result into context. 

Despite the fall, overall and WMP prices still both sit 13% higher than as at the end of 2021.

But the size of the fall showed the Omicron outbreak in China had surpassed all other dairy market concerns, he said.

But there is one positive, despite the global disruptions – demand remains steady while global milk supply is constrained.

On the production side, milk volumes among Northern Hemisphere producers is down because of the spike in input costs – namely feed and fuel. 

In the US, production was down 1.4% and 2% both in Germany and the Netherlands for the first two months of the year.

In New Zealand across that same period, milksolids production declined 6.7% year-on-year to nearly 360,000 tons, according to the Dairy Companies Association of New Zealand.

As a result, it’s highly unlikely there will be the kind of volatility seen in the past when producers in Europe and North America lifted production to take advantage of high prices, which flooded the market and crashed prices.

Any farmer who recalls boom-bust cycle in 2015 when the milk price dropped to $3.85 will remember how it had previously leaped to $8.40, Penny said.

He cites various reasons for this. 

Past volatile cycles had been fuelled by the growth in dairy conversions in NZ. 

That was now largely a thing in the past.

“In fact, we project that the dairy herd has shrunk by around 400,000 cows between 2016 and 2022.”

Tighter regulations, labour and credit constraints have all contributed to this fall, he said.

What it means is the industry can no longer crank out production like it could in the past.

“The upshot is that as it stands the boom-bust milk price cycles are behind us. 

And unless there is a major unwinding in regulations and compliance around land use, in particular, the milk price has moved structurally higher.

“We expect it to average around $8.00/kg in today’s dollars over the long term from here,” he said.

As a result, in mid-April the bank shifted its milk forecast up 75 cents to $9.25/kg MS for the new season, which should more than match the huge lift in farm expenses across the board.

They have retained that prediction because it believes the lockdown in China will eventually lift.

Davison said the slide will have a negative impact on milk price forecasts for the coming season despite saying earlier in the month there was potential for the price to hit $10/kg MS for the first time – with the disclaimer that the forecast has low confidence.

ASB senior economist Chris Tennent-Brown was more positive, saying the declines won’t stop a record milk price for this season.

The bank was sticking with its current milk price picks – $9.50/kg MS for this season and $9.20/kg MS for the new season.

There are two more auctions scheduled before Fonterra announces its opening forecast for the new season. 

Given the global state of play and how quickly China opens itself up from its lockdown will determine what those numbers could be.

Source: farmersweekly.co.nz

A look into a little-known segment of Wisconsin’s dairy industry

America’s Dairyland had become world famous for its cow and goat milk and cheese long ago, but there’s a little-known segment of the dairy industry that hopes to grow in the years to follow.

Persephone Allen milked her livestock twice a day for three hours at a time since she decided which animal she’d manage.

She runs a dairy in Waterloo where she milks not cows nor goats, but sheep.

“I tell [people] I milk sheep and they’re like, ‘You mean goats, right?’ and I’m like, ‘No, sheep,’” Allen said.

She said her dairy, Forever Young Sheep Dairy, is one of 20 members of the Sheep Dairy Association of Wisconsin.

The group says there are only 13 sheep dairy producers in the state. While the number seems small, that’s still more sheep dairies than any other single state in the union.

Allen said she wants to see more people get into milking sheep.

She’s learned how hard it can be to get started.

“You don’t want people to get into it and fail, so it’s really important right now before anyone starts a sheep dairy to make sure they have a market for their milk,” she said.

Allen said she milks 160 sheep and will soon expand to 200. She said she feels like she’s in a good spot after carving out her place in the industry.

“Some days are rough but other days it’s like, ‘Yeah, this is perfect,’” Allen said.​

Source: spectrumnews1.com

Maxum Foods’ global dairy commodity update for May

Edwin Lloyd, executive general manager – foods, said dairy commodity prices have weakened from peaks in Oceania and US, but the EU market remains firm.  He said supply-side constraints remain a feature in the outlook, as the effects of war on feed markets will mean extended periods of high input costs (corn, grain and fertilizer) and weak margins for milk producers.

“Higher milk prices may alleviate some of the pressure, but most milk producers typically recoil from high costs by reducing inputs rather than looking longer term at their expected business cashflows,”​ Lloyd said.

He added weather is also an issue, as Europe is forecast to have another hotter than usual summer, and other regions face a weaker La Niña, while a worsening US drought threatens water supplies.

The effect of the fragile global feed situation will run into next year with the ongoing damage to Ukraine’s food production and sanctions on Russia and its allies, Lloyd said, adding the escalating tensions between Russia, EU and the US are unpredictable.

“Uncertainty about EU milk output hangs over protein and fat values, keeping wholesale prices firm, but buyers have retreated from strong prices in some developing regions. The higher food (and dairy) prices have not reached many developed world consumers yet – the downward pressure on demand for cheese and butterfat may not significantly affect pricing given the supply constraints in the region,”​ Lloyd said.

“The fundamentals suggest a tighter US dairy market, subject to the risks for cheese demand as households learn to cope with inflation. While milk production looks to be stabilizing, growth is occurring in limited regions and may soon stall. The US drought is worsening.”

Lloyd said China’s zero-Covid restrictions will also weaken short-term demand for ingredient imports while domestic whole milk powder output is increasing in the short term, while a stimulated recovery could bring a revival later in the year to recover some lost ground.

Source: dairyreporter.com

The Right Chemistry: Playing it safe with pasteurized milk

The pasteurization of milk has been one of the most successful public health measures of all time, and a big improvement over boracic acid.

Isabella Beeton certainly did not intend to harm children. But a casual remark in her wildly popular 1861 book Mrs. Beeton’s Book of Household Management about boracic acid purifying milk was responsible for many children getting sick and even dying from drinking milk contaminated with bovine tuberculosis bacteria.

With the advent of the Industrial Revolution, and the growth of cities in Victorian England, urban dairies could not keep up with the demand for milk. Unfortunately, transportation from farms in those pre-refrigeration, pre-pasteurization days allowed time for various microbes in the milk to multiply. Some of these microbes produce enzymes that convert the lactose and proteins in milk into smelly, foul-tasting compounds, and farmers had somehow discovered a work-around. Adding “boracic acid,” a mixture of sodium borate (borax) and its acidified derivative, boric acid, countered the milk’s unpleasant smell and off-taste. Mrs. Beeton was aware of this, and assured her readers that boracic acid was harmless, and recommended that they could even preserve their milk longer by adding some themselves. Bad idea!

Boron compounds are not harmless. Indeed, an article in 1887 in The Lancet, the prime medical journal at the time, claimed that “even small quantities of boracic acid are capable of exerting a distinctly injurious action on the human organism.” This, however, was not the major problem. While boracic acid retarded the growth of microbes that caused the unpleasant sensory properties, it did not prevent the growth of disease-causing organisms. The longer the milk was kept, and boracic acid allowed for that, the more time the tuberculosis bacteria had to multiply. Infection of Victorian children with bovine tuberculosis was common, and many deaths could have been spared had boracic acid not contributed to the illusion of safety.

Milk was killing children on this side of the pond as well. Here, the problem wasn’t the masking of spoiled milk with boracic acid, it was contaminated milk from cows kept in filthy conditions and fed brewery waste “swill.” New York, like London, had become a huge, bustling city with an ever-increasing demand for milk to feed infants. Distilleries in the city produced large amounts of alcoholic mash left over from making whiskey, something that did not go unnoticed by milk producers. Dairies sprang up around distilleries where cows were fed the “swill.” To maximize profits, the animals were squeezed into narrow stalls where they were covered with flies and wallowed in their own excrement. No wonder they became so sick they could hardly stand. Even the milk they produced looked sickly. To alter its bluish colour, plaster of Paris and molasses were added and flour was used as a thickener. A New York Times editorial in 1858 described “swill milk” as “bluish-white compound of true milk, pus and dirty water,” produced by “running distillery slops through the udders of dying cows and over the unwashed hands of milkers.” The Times estimated that every year some 8,000 infants died from drinking swill milk.

Now, let’s hop back to Europe, where in 1856 Louis Pasteur, then Professor of Chemistry at the University of Lille, was investigating why wine sometimes turns sour. Looking through a microscope, he noted the presence of bacteria that he then determined were capable of converting alcohol into acetic acid. These bacteria, Pasteur found, could be inactivated by heat. This inactivation became known as “pasteurization.” Pasteur was not the first to note that beverages or foods could be preserved with heat. Some 40 years earlier, Nicholas Appert had shown that boiling food in a glass jar which was then sealed prevented the contents from spoiling. Pasteur’s contribution was working out conditions that allowed for heating at a lower temperature for a shorter time to preserve texture and flavour. He did not work with milk. It was Franz von Soxhlet, a German agricultural chemist who first suggested in 1886 that milk sold to the public be “pasteurized.”

Back across the ocean once more. Nathan Straus, who as a young boy had emigrated from Germany to America, grew up to become the wealthy co-owner of Macy’s department store. He became interested in milk when he learned that a cow on a farm he owned had died of tuberculosis despite appearing to be healthy. Could milk from such cows be entering the marketplace and make children sick?

Upon learning von Soxhlet’s suggestion to “pasteurize” milk, Straus became a passionate advocate. In 1893 he built the Nathan Straus Pasteurized Milk Laboratory and set up stations in poor areas of New York to give away milk, eventually establishing 297 milk stations in 36 cities, all at his own expense. Nathan Straus is estimated to have directly saved the lives of close to half a million children!

Straus was a great philanthropist, writing in his will that “what you give for the cause of charity in health is gold, what you give in sickness is silver, and what you give in death is lead.” He had a long healthy life, gave away millions, built shelters for the homeless, distributed food and coal to the poor, founded a health centre in Jerusalem which he said was to be for all the inhabitants of the country, irrespective of race, creed or colour. The Israeli city of Netanya is named after him.

The pasteurization of milk has been one of the most successful public health measures of all time, but has not escaped criticism. Advocates of drinking “raw milk” claim that pasteurization destroys vital nutrients in milk and that there is no problem with drinking raw milk from healthy cows. Farmers who produce raw milk, they say, are better at taking care of their cows than “factory farmers.”

I would rather play it safe and stick to pasteurized milk. As for borax? Belongs in the washing machine, not in milk.

Source: montrealgazette.com

Dairy Revitalization Plan meetings spark hope

Farmers from throughout western Wisconsin gathered last week to envision how the Dairy Revitalization Plan could boost farm income and slow the exodus of dairy herds in America’s Dairyland. Over 200 farmers attended a series of meetings held in Abbotsford, Cashton, and Chippewa Falls.

The events were organized by local dairy farmers, with support from 31 chapters of the Wisconsin Farmers Union (WFU) and Wisconsin Farm Bureau Federation (WFBF). The groups presented a farmer-led, research-backed growth management plan for the U.S. dairy industry.

“We’ve lost an average of one to two dairy herds a day in Wisconsin in recent years,” said Dairy Together Organizer Bobbi Wilson. “This program does not seek to pit small farms against large farms; instead, we’re looking at how we can pull together to create meaningful dairy policy reform in the next farm bill.”

Buffalo County Farm Bureau leader Joe Bragger noted that only 30,000 dairy farms remain in the United States — roughly as many dairy farms as Wisconsin alone boasted in the 1990s.

“I’m proud of the grassroots of Farm Bureau and Farmers Union and the fact that we’re in the room here together,” Bragger said. “As we move into this next farm bill cycle, someone will be making decisions on dairy policy. We need to be at the table.”

Dairy economists Chuck Nicholson and Mark Stephenson provided an overview of what could have been accomplished if growth management was implemented in the 2014 Farm Bill. The presentation was based on their “Analyses of Proposed Alternative Growth Management Programs for US Dairy,” which was funded by the University of Wisconsin (UW) “Baldwin Wisconsin Idea” program, the Grassland 2.0 project, the Wisconsin Cover Crops Research and Outreach Program, and UW Center for Integrated Agricultural Systems.

The pair studied a growth management program in which each dairy farm would start with a base level of milk production, determined by historic production. A rate of allowable milk production growth would be set based on demand; those choosing to expand beyond allowable growth would pay a market access fee.

“Farms that stay within their allowable growth wouldn’t pay a market access fee and would receive money from a pool of expanding farms,” Nicholson explained. That payment acts as an incentive for farmers to coordinate production to match growth in demand.

Stephenson pointed out that the idea of growth management is becoming less radical, as cooperatives have seen the benefits of managing their intakes. “We’ve gotten some real-life experience with these programs as co-ops implemented them over the past few years, and we realized no one died, and they did have an impact on the price,” he said.

During the winter of 2020-2021, a group of WFU and WFBF members collaborated on possible growth management scenarios. The groups established core tenets for a growth management plan they could support, including allowing for beginning farmer entry, complying with existing trade agreements, and not causing a significant increase in retail prices. Those parameters guided Nicholson and Stephenson’s research.

The study showed that growth management would reduce variation in milk prices, enhance average milk prices, and increase average net farm operating income for operations staying within allowable growth rates.

“If we would have had such a program implemented, the average increase in price from 2014 to 2021 would have been $1.41 per hundredweight,” Nicholson noted, stressing the research shows farmers would have seen less price variation on their milk checks.

The impact on consumer prices would be minor, with costs rising 15 cents for fluid milk prices and 11 cents per pound for wholesale American cheese. In turn, U.S. dairy exports would continue to grow, albeit at a slightly reduced rate.

“Exports continue to grow; they do grow more slowly, but also more steadily, with stabilized prices in the U.S. market,” Nicholson noted. “Our present price cycles in the U.S. dairy industry make us less consistent in pricing, which makes us a less consistent supplier.”

The plan would also reduce the need for government safety nets for dairy farmers, cutting expenditures nearly in half. Domestic dairy product sales were projected to continue to grow, with a drop of only a few percentage points compared to the baseline comparison of no implementation of growth management.

Time for Change

Nicholson stressed that he was not there to tell farmers which path to take. “What I’m trying to do is help folks have a conversation, he said. “The question becomes, do we want to live in this world, or do we want to live in this world over here?”

The answer for many of those in attendance is that it is time for change.

Clark County Farm Bureau President Clark Turner milks 120 cows on his Withee dairy farm. He wonders about the future for the next generation of dairy farmers, including his sons.

“Right now we’re in an uptick for prices, and you think ‘oh boy, this is gonna help us,’ but then we see the cost of inputs skyrocketing,” he said. “It’s bleak. We just never seem to be able to dig out of the hole.”

“It does look like this plan could provide that stability that we all long for,” Turner said. “We all want to know that we’re going to be okay and the bills are going to be paid going forward. This is a step in the right direction to get there.”

WFU District 6 Director Sarah Lloyd has been involved in the conversation around growth management in her roles as a rural advocate and researcher. She farms near Wisconsin Dells with her husband and his family on a 400-cow dairy farm and, in her role with the UW Center for Integrated Agricultural Systems (CIAS), helped convene a stakeholder group to provide input around growth management research.

“We were that farm that was at 125 cows in 2002 and doubled the herd in order to have all 3 families draw a salary from the farm,” Lloyd said. “We’ve been running on the treadmill ever since.”

She views working on a policy to stabilize prices as a benefit for Wisconsin’s rural communities, which have been hit hard by the decline of dairying.

“We all know those neighborhoods where there used to be dairy farms all down the road, but they’re gone now,” she said. “When you lose those farms, they stop buying from suppliers. I see the benefit of growth management not only as the potential for my farm business but also for the web of economic interactions between the businesses we work with and for the social vitality of our communities.”

“We’re seeing processors owning farms,” added Bruce Gumz of Tri-G Farms in Dorchester. “We’ve got a clear picture, looking at what happened with chickens and hogs, of what could happen. We’re following that pattern of consolidation, pedal to the metal.”

WFU Vice President and Westby dairy farmer Darin Von Ruden said he takes the growing support for growth management as a hopeful sign. “It’s exciting to see different groups coming together around this plan,” he said. “I’ve been involved in dairy issues for 20 years and have seen crowds gather around an idea and then die down, but there’s a lot of hope and momentum behind this movement.”

As he nestled his young grandson in his arms, he stressed, “My work today is really about looking ahead to 20 or 25 years. What future is there for our kids and grandkids if we continue down this path we’re on?”

Monroe County dairy farmer Jack Herricks agreed. “This discussion has had a longer lifespan than any other effort made in the past,” said Herricks, a Farm Bureau member who farms on his family’s century farm near Cashton. “The fact that it continues to gain support and more discussion and consideration speaks to the fact that there is interest and there’s a lot of work being done to flesh it out and make it work for the majority.

Von Ruden added that implementing a plan that keeps more farms on the land rather than fewer is valuable from a food security perspective.

”As chaotic and painful as the COVID crisis was over the past few years, it was an important lesson in the need for resilience so we can better withstand future shocks to our food system,” Wilson agreed. “I hope this can be the turning point to not only think about economic efficiency but also economic resilience. Growth management has the potential to do that.”

Since launching in 2018, Dairy Together has built a strong coalition of dairy farmers and industry stakeholders, secured research on growth management, and empowered farmer-led solutions to the dairy crisis — but the work is far from over.

“The opportunity we have is the 2023 Farm Bill, and those conversations are happening right now,” Wilson said. “The strength we can bring as a community of dairy farmers and allies is a demonstration of what can be done. Now we have the benefit of hindsight, of knowing what would have happened if we had implemented growth management in 2014, and we can see clear benefits.”

She called on farmers to lift up growth management, and particularly the Dairy Revitalization Plan, in their cooperatives and help educate fellow farmers, consumers, and policymakers. Those who are interested can sign up for updates and find action steps at www.dairytogether.com.

“Changing federal dairy policy is a huge task, but if we don’t get this done in the next farm bill, there are not going to be enough dairy farms left to support a sustainable industry,” Wilson said. “We need diversity in herd sizes – we need large farms to supply a bulk of milk but also small farms to provide resilience – and growth management is the path toward striking that balance.”

Raw milk wins in Georgia, runs ahead in Missouri, but dies in Iowa

Governor Brian P. Kemp made a special occasion earlier this month for signage of his administration’s Georgia Grown Farm to Food Bank legislation (SB 396), the Freedom to Farm Act (HB 1150), and a bill to expand the elementary agriculture education program (HB 1303).

Gov. Kemp did not, at that time, sign House Bill 1175, the Georgia Raw Dairy Act, which has also reached his desk. 

Any significance to Kemp not including the Raw Milk Dairy Act as one of his celebratory food bills isn’t known,

The Georgia Legislature passed the Raw Milk Dairy Act by large margins, making the Peach State the 31st state to allow raw milk sales with an effective date of July 1, 2023.

Georgians can purchase raw milk under existing law. But, its labeled as “pet milk” and sold by farms with animal feed licenses, which are available for a small fee.

Rep. Clay Pirkle, R-Ashburn, said that “pet milk” is never tested or checked for bacteria or somatic cell counts under the current system. 

 “We have no idea what’s in it,” said Pirkle, (HB) 1175’s sponsor.

In support of the bill, he said it would allow for raw milk regulation for the safety of consumers. 

But in passing the Georgia Raw Dairy Act, the Legislature is betting regulated raw milk sales will top “pet milk” sales.  

Measurements for raw milk and raw milk products are not readily available because they are relatively small and stagnant. Georgia, however, is counting on consumers clamoring for more raw milk products for their alleged benefits.

Martin Yoder, owner of the White House Dairy Farm at Montezuma, GA, told the Georgia Legislature that (HB) 1175 opens a new market that potentially will triple his income.

Yoder predicted that without change, family-owned dairy farms would be gone within 10 years, leaving Georgia with only about 40 large dairies. A switch to Grade A raw milk is an option that could save some family-owned dairies, he says.

The Raw Dairy Act requires licenses and requirements for raw milk products for human consumption following food safety regulations under the authority of the Commissioner of Agriculture.

One of those requirements is a warning label on the raw milk packaging. It must say: “Warning: This is a raw milk product that is not pasteurized and may increase the risk of foodborne illness.”

Iowa’s Senate File (SF) 2309 was another raw bill not unlike Georgia’s, but it did not get as far.

The Iowa Senate voted 32-15 on March 10 in favor of (SF)2309, which sought to allow dairy farmers to sell raw milk directly to consumers, either on the farm through direct deliveries. 

But nothing much has happened after the Senate vote. Since it passed the Senate, opposition to SF2309 dominated.

Wanting the bill killed are the Iowa Public Health Association, Iowa Department of Agriculture & Land Stewardship; Iowa Institute for Cooperatives, Iowa Environmental Health Association, Iowa State Dairy Association, Iowa Veterinary Medical Association; Iowa Grocery Industry Associaton; Iowa Farm Bureau, and the Iowa Dairy Foods Association.

Coalitions representing pasteurized foods and public health have stopped many raw milk bills in the past, and, in Iowa, such joint efforts worked again.

The Iowa Legislature adjourned on April 19, not allowing (SF)2309 to gain any traction in the House.

However, Missouri’s House Bill 1977 remains alive, with adjournment not scheduled until May 20.

On April 25, Missouri’s House voted 124-to-11 to pass HB1977. Another 11 members voted “present.” The Senate placed it on the First Reading calendar.

HB1977 bill would legalize selling “Grade A” retail raw milk and raw cream products made in Missouri at grocery stores, restaurants, soda fountains, and similar establishments.

The raw milk products would also be required to post and carry warning labels saying: “WARNING: This product has not been pasteurized and, therefore, may contain harmful bacteria that can cause serious illness in children, the elderly, and persons with weakened immune systems.”

 Raw milk does not go through pasteurization, which is the process of quickly heating milk to a high enough temperature for a short time to kill illness-causing germs. Pasteurized milk is milk that has gone through this process

According to the federal Centers for Disease Control and Prevention (CDC), raw milk and raw milk products are health risks for consumers.

From 1993 through 2012, 127 outbreaks reported to CDC were linked to raw milk. These outbreaks included 1,909 illnesses and 144 hospitalizations. Most of the outbreaks were caused by Campylobacter, Shiga toxin-producing E. coli, or Salmonella

A large number of raw milk outbreaks involve children. At least one child younger than five was involved in 59 percent of the raw milk outbreaks reported to the CDC from 2007 through 2012. Children aged 1 to 4 years accounted for 38 percent of Salmonella illnesses in these outbreaks and 28 percent of illnesses caused by Shiga toxin-producing E. coli, which can cause kidney failure and death.

The CDC finds that reported outbreaks represent the tip of the iceberg. Most illnesses are not a part of a recognized outbreak, and many others occur for every outbreak and every illness reported.

For the past 100 years, almost all milk in the United States has been subject to pasteurization. The process ended the era when millions of people became sick and died of tuberculosis, scarlet fever, typhoid fever, and other diseases that were transmitted through raw milk.

Pasteurization has prevented millions of people from becoming ill. Most public health professionals and health care providers consider pasteurization one of public health’s most effective food safety interventions ever.

Source: foodsafetynews.com

Report claims Fonterra farmers would be the losers

Fonterra’s planned capital restructure could see the co-operative’s share price slump to $2/share – shaving $4 billion off the shareholders’ balance sheet.

That’s the claim of a report prepared for Fonterra rival Open Country Dairy. Consulting firm Castalia was hired by Open Country to look at the implications of Fonterra’s recent capital restructure.

The report claims that for the average dairy farm producing 176,000 kgMS per year, this would mean a loss of around $360,000. The report was made public as Fonterra and the Government discuss final approval by Parliament.

Fonterra believes its new capital structure will attract more suppliers, ensure better utilisation of assets and help the co-op deliver a higher milk price to farmer shareholders.

Fonterra’s competitors, including Open Country, could be forced to match the co-operative’s milk price to retain shareholders. The NZ milk supply has peaked and competition for raw milk is intensifying.i

Castalia says the restructure shifts wealth from farmers to Fonterra.

Fonterra has rejected the Castalia report.

In a statement to the NZ Stock Exchange, Fonterra director capital markets, Simon Till, says the co-operative disagrees with the report and a number of its conclusions – including the assertion that protections for a fair milk price will be eroded and that the restructure will cause Fonterra’s milk price to increase.

“Fonterra also notes that Castalia estimates Fonterra’s future share price on the basis of possible dividends up to 2030 but appears to assume that Fonterra has zero value at the end of 2030.

“Fonterra considers this to be a misleading approach to valuing its shares,” Till says.

“The report contains no perspectives not previously considered by Fonterra and discussed with shareholders in the lead up to the 2021 vote.”

Fonterra’s share price has weakened since the capital structure was approved in December last year – down from $3.13 to $2.90 last week.

Jarden head of research Arie Dekker also questions the $2/share reference point used by Castalia. He notes that Fonterra is currently generating earnings per share of 30c and a 20c/share dividend.

Dekker says the co-operative hopes to increase earnings and dividends over the next ten years with meaningful investment to support that.

“Even in the absence of meaningful dividend growth, discounting divideds currently supported by earnings results in a share value well above the suggested $2,” he says.

He also notes that Fonterra plans to return $1 billion capital to shareholders and that the proposed capital structure plans will not change the way in which the milk price is set.

“The level of independence in the setting of the milk price has long been an area of debate in the industry.

“The level of independent oversight was reviewed recently with a ministerial appointee added to the milk price panel,” Dekker adds.

“Despite the questions, we remain of the view that the robustness of the milk price has been supported over the last two decades by the increase in independent processing capacity put in place in NZ.”

Source: ruralnewsgroup.co.nz

U.S. dairy urges additional export supply chain relief

The U.S. Dairy Export Council (USDEC) and the National Milk Producers Federation (NMPF) today sent a letter to the Biden administration recommending specific steps to provide relief and support to dairy farmers and exporters facing supply chain constraints.

The letter to Agriculture Secretary Tom Vilsack and Transportation Secretary Pete Buttigieg called for interagency collaboration to enhance capacity at ports, incentivize carriers to load export cargo, and improve transparency throughout the supply chain. The lead recommendation called for USDA’s Agriculture Marketing Service (AMS) to restart its Ocean Shipping Container Availability Report (OSCAR).

“Supply chain challenges have cost U.S. dairy exporters over $1.5 billion last year alone. We thank Secretaries Vilsack and Buttigieg for their advocacy for America’s agriculture exporters in the face of significant supply chain constraints. We are incredibly grateful for the administration’s ongoing efforts and creative solutions, particularly for the development of ‘pop-up’ sites for agricultural exporters to source empty containers,” said Krysta Harden, president and CEO of USDEC. “The additional recommendations submitted today would provide agricultural exporters much needed insight into container availability and provide avenues to incentivize carriers to load outbound shipments to key dairy markets around the world.”

“Shipping containers for U.S. dairy exports continue to be in short supply at coastal ports, and even more scarce at inland locations. These essential links in the global supply chain must be available to American dairy exporters throughout the country in order to ship their products to overseas buyers,” said Jim Mulhern, president and CEO of NMPF. “We thank USDA and DOT for their strong focus on this issue. As congestion continues, so too must the spectrum of tools deployed to address these challenges. Today’s letter highlights the additional steps necessary to take to ensure American dairy farmers are not losing long-term international market share due to these persistent supply chain challenges.”

The specified programmatic elements to provide supply chain relief include:

  • Restarting USDA AMS’ OSCAR, which would detail the availability of ocean shipping containers at locations throughout the United States.
  • Establishing inland pop-up terminal yards, similar to those in Oakland and Seattle, in Minneapolis, Chicago, Detroit, Salt Lake City and Kansas City. This would enable greater access inland to containers and improve the ability to secure vessel accommodations with short earliest-return-date windows at those locations.
  • Developing the ‘fast lane’ concept to incentivize the flow of agriculture exports into and from ports. This would include trucking lanes at port terminals that are dedicated to the expeditious delivery of perishable agriculture goods to ports.
  • Incentivizing ocean carriers to load more export containers, instead of empty containers, through preferred or prioritized berthing access.
  • Including real-time tracking of containers as part of the Administration’s Freight Logistics Optimization Works initiative.
  • Piloting projects with carriers for ‘dual turns’ of containers, wherein containers delivering imports to an in-land location may be provided directly to an export-focused shipper, rather than being sent back empty to the port. This could be supported through the USDA’s Commodity Credit Corporation resources

Michigan farmers cope as dairy farms in the United States continues to decline

The Weiss Centennial Farm has been in existence since 1853. Throughout its time, the farm has seen its fair share of neighboring farms.

But according to the Department of Agriculture and Rural Development, Michigan has lost 700 dairy operations in the last five years.

Roger and Joan Marie Weiss are fifth-generation owners of the Frankenmuth dairy farm. Roger says when he was growing up there were many dairy farms within a three-mile radius. Currently, he’s the only farmer in the area.

The Weiss’ tells Mid-Michigan NOW that they’ve seen a rapid decrease of dairy farms over the last decade due to the strenuous workload.

Roger says operating a dairy farm is an around-the-clock job and can be very expensive. He says with costs of products increasing, it doesn’t make working any easier.

But although the cost of running the farm may have risen, Roger’s wife, Joan Marie tells us they are finding creative ways to stay afloat like offering agricultural tourism.

Phil Durst is a senior extension educator with Michigan State University and specializes in dairy and beef cattle production. He says this decrease in dairy farms are due to several things, one specifically being generational transfer, advising that kids don’t want to farm and may want to pursue other careers.

But Durst offers a little solace for dairy farmers advising that although Michigan is losing dairy farms, the cow population continues to grow. He says that buyers have nothing to worry about when it comes to the supply of milk.

Source: nbc25news.com

Regenerative dairy: Finding what works

Regenerative dairy can help rebalance Earth’s ecosystems, while producing high quality nutrition, and making farming and food businesses more resilient. Recently, a group of experts introduced a new project ‘Regen Dairy’, outlining the challenges and opportunities of regenerative dairy and discussing how the project will work to co-develop a roadmap.

The Regen Dairy project will define what regenerative dairy looks like – from the bottom up, and throughout dairy supply chains.

The project’s goal is to engage dairy farmers and food businesses around a practical vision for a productive and profitable global dairy sector that also restores its relationship with nature. The vision is intended to be global, but the solutions it aims to provide will be local, reflecting the difference between farm systems and national climates.

The Regen Dairy project has been set up by FAI Farms and Farmwel in collaboration with a number of global food companies, including Unilever, Barry Callebaut, Arla Foods, Woolworth South Africa and Ben & Jerry’s.

Ffinlo Costain, CEO of Farmwel based in the UK and moderator for the event, noted that regenerative agriculture can help to reestablish natural balance by mitigating global warming and creating resilience in the landscape by restoring biodiversity, soil health and the water cycle. It can do this while producing high quality food and ensuring that farming and food businesses become less vulnerable to economic, social and environmental risks, he added.

Reconnecting dairy to the soil

Klass Jans van-Calker, Global Sustainable Sourcing Manager at Unilever, noted that dairy production has become disconnected from how it can contribute to develop a sustainable food system. The cow is an amazing animal that can digest grass and contribute to making arable and vegetable farming systems more sustainable. But somewhere along the line the sector got disconnected from other crops, other farming systems and cost issues. That’s where solutions need to be found, he said.

In the last 20 years, dairy production has focused on sustainability, as well as doing no harm. But the focus of regenerative agriculture is trying to do good, to contribute to biodiversity and save land use by using marginal land, using food waste as regenerative feed, and by adding manure to arable farming systems, van-Calker said. This leads to biodiversity growth, producing clean water, creating carbon sequestration and reducing methane emissions, he added.

This demonstrates that the dairy industry is moving from doing no harm to genuinely doing good, which is a very important change.

Van-Calker said there’s a circularity to regen agriculture, where livestock production — eggs, dairy, meat — is not competing for feed with human food production. By using marginal grasslands for grazing and food waste, regen agriculture becomes complimentary to arable and vegetable systems.

Regen dairy is not something that can be achieved overnight and there is no one size fits all. The solution will be different from farm to farm. However, the goal is to build farming systems that are less dependent on inputs and less dependent on market volatilities by becoming resilient.

Finding what works

Oistein Thorsen, CEO at FAI Farms, spoke about the project that FAI and Farmwel are heading in collaboration with major companies and dairy producers. The goal of the Regen Dairy project is to engage directly with dairy farmers and food businesses around a practical vision for a productive and profitable global dairy sector that also restores its relationship with nature, he said.

“That starts with trying to understand what regen dairying looks like right now,” he said. “What are farmers doing now that is having a regenerative impact on their land and on their farm? We’re documenting those stories.”

One of the key aspects of the Regen Dairy project is it’s “user centered design” approach. Thorson explained that this methodology has been developed in the service design sector but is not commonly used in agriculture. The methodology that will be applied will include creating personas and user journeys to really understand the key challenges and opportunities and the support requirements.

“For the dairy farmers embarking on their journey, what do they really need as opposed to what do we think they might need? That’s the bottom-up approach being taken,” he said.

The project aims to facilitate more conversation between farmers in regen dairy. The goal is to facilitate discussion and sharing of practices between people who are doing it every day, he said.

“Farmers start from different places, and contexts, and the pressures and opportunities are different because practices vary in different parts of the world,” he said.

Thorsen mentioned that there is a lot of discussion about defining what exactly regen is. Should it be a focus on practices, principles, or outcomes?

The idea is to understand how regen dairy is currently being measured. Through interviews and case studies, the goal is to highlight the measures and metrics that farmers are already using, Thorson said.

We recognise that there are already a range of initiatives that are focusing on measuring regenerative agriculture, but that won’t be the priority of this project, in fact we are more interested in finding out the challenges associated with these metrics and measures, he added.

“This is about taking stock of where you are, from a whole farm perspective, thinking about which direction you want to be going in. The metrics might help guide you along the way and make sure that you’re moving in the right direction, but ultimately this is about a mindset shift,” Thorson said.

The Regen Dairy project information and details can be found at regendairy.org.

Regen dairy farmers

IMAGE NAME/DESCRIPTION

Tom and Sophie Gregory, dairy farmers in England who are practicing Regen Dairy principles

Tom and Sophie Gregory are dairy farmers in southwest England. They are first generation, organic dairy farmers that supply Arla. They’ve been dairy farmers for eight years, seven of those in organic production. They are now part of the Arla regen pilot program, a four-year project, with 24 farmers across their global network. The aim of the project is to give feedback to other farmers.

Sophie Gregory said they are share farming with another organic dairy farmer who’s also an Arla member. They raise 360 cows on 900 acres.

“It’s a real mixed bag, in terms of soil type. It can be quite a challenge, depending on the climate. We aim to be out nine months of the year, depending on the season. But the biggest aim for us is to turn grass to milk,” she said.

Tom Gregory said, “one of the first lightbulb moments was when we started doing a second round of soil sampling. And it was only basic chemical and organic matter samples, but we were starting to see that even though we were organic…some of the indices weren’t improving. Maybe we needed to change some of the methods we were using to improve grass growth and soil health,” he said.

That’s what started their search for different approaches and led them to regen dairy principles.

The Gregory’s are moving away from heavy cultivations and are making changes in hedgerow management to improve the farming-to-environment balance. But at the same time, the business must be profitable, Tom emphasized.

“If you’ve got the field that looks slightly compact or hungry, why is this field looking this way? We’re not going to implement machinery passes, aerating. Let’s try and solve that problem by looking at the soil and working out if this is a chemical issue, a biological issue or a fungal/bacterial ratio issue?” Tom queried.

Sophie noted, “my biggest thing would be to emphasize that small changes really add up.”

Start doing things like changing hedgerow management. There’s a different sized hedge for different wildlife and you can change your grassland species to help increase infiltration. Even a very small tweak can help along the journey to being regenerative, she said.

“My vision would be to encourage others to get on board by implementing small changes,” she said. “I think it’s definitely a mindset. We have a flexible view. We’re constantly having to adapt how we do things when the climate changes or when things alter. It’s just trying to get people to take that first step into it. And then once you do, it’s kind of a rabbit hole, you start one thing and it works or it doesn’t work, you try another thing, and it sort of leads on to another change, that is how we’ve found it,” Sophie emphasized.

Tom said, “as tenant farmers, we have a particular amount of fixed costs, we’ve got bills we need to pay every month, so it has to work.”

“If we were to decide to move away from rye grass-clover leys,” — which represent 80% of their fields — “we couldn’t just suddenly decide to reseed the whole farm in one year, that’s not going to work. We’re not paid on nutrient density, we’re paid on volume and fat and protein content,” he concluded.

Commercial perspective

Jo Lawrence, who provides agri-commercial support at Arla Foods, also joined the webinar discussion.

“At Arla, we talk about stronger people and stronger planet. We really feel that dairy has a key role to play in delivering on that mission. And obviously, we talk a lot about the health benefits of milk,” she said. “I think where we really need to use this movement and momentum with farmers around regenerative is to start collecting the data from the practices to be able to deliver those proof points back to our customers and consumers to really demonstrate that dairy farming with our cows is delivering this positive impact on nature and climate. Because we feel it’s when you can have that data, we can tell a bigger story.”

Arla is a farmer-owned cooperative with 10,000 farmer owners. She said Arla talks a lot about needing to transform, which is why it’s so important to have farmers right at the heart of leading this. However, these are businesses as well, and they need to make money. The way Arla approaches regen dairy has to be aligned with supporting them to continue to be a sustainable business themselves, she said.

“This is a journey, and all farmers are starting from different places and having different contexts. And it’s not an overnight thing. We’re not going to wake up tomorrow and be regenerative. How can we use the data to demonstrate that we’re making that continual improvement, and through that sharing and commercializing with customers, to give the farmers the incentive to take that first step and to start their own journey?” Lawrence asked.

“I think the first challenge is the fact there is no blueprint. There’s no tried and tested way of doing this…because of the complexity of regen and the fact it’s a systems approach,” she said. “We’re going to try and pull together what’s already out there, what’s already working and start to share that knowledge and what measures are meaningful for farmers.”

She also noted that these collaborative approaches across the supply chain are important because ultimately, the industry is trying to align on what we’re trying to achieve together. It wouldn’t make sense for Arla to come up with our own approach of what is regenerative, and then other companies come up with their approaches, because from a farmer’s point of view, they want clarity, said Lawrence.

The industry should align to make long term decisions and give dairy farmers the direction of travel and not have them worried that, if they’re going down a path, that it is suddenly going to change, she concluded.

Source: thedairysite.com

Chobani to end production of dairy milk after less than 3 months

Dive Brief:

  • Chobani is ending the production of its Chobani Ultra-Filtered Milk that it launched in February, the company said in a statement emailed to Food Dive. The company decided to discontinue Chobani Ultra-Filtered Milk in the second part of the first quarter.
  • The dairy manufacturer, which produced the milk with a co-packer, said similar to other companies it is being impacted by inflation. “We have come to the tough conclusion that it does not make sense for Chobani to be in the Dairy Milk business at this time,” the company said. 
  • The milk was among the latest products introduced by Chobani as it moves beyond its signature Greek yogurt to grow sales and evolve into a total food company.

Dive Insight:

After several years of introducing new products to the market under the Chobani name, the company is making what so far is an unusual move: pulling a high-profile offering it only recently launched.

The ultra-filtered milk was touted by Chobani as a potential disruptor in a category with more than a billion dollars in annual sales. The company’s offering, which was made using a special filtration process to help eliminate lactose and reduce sugar by half, had 2.5 times more protein than traditional milk. 

While traditional milk has struggled, the ultra-filtered category has bucked the downward slide, attracting big-name companies in the process. 

Megan Poinski/Food Dive

Coca-Cola acquired the remaining stake in Fairlife it didn’t already own in 2020, adding to the fold the brand’s ultra-filtered, higher-protein and lactose-free milk. Organic Valley debuted ultra-filtered milk and Danone’s Horizon Organic offered its own high-protein milk line. New Zealand’s a2 Milk, which makes a product that lacks a protein that can cause stomach discomfort, also has seen success in the marketplace. 

Chobani has thrived for much of its existence in Greek yogurt, which continues to be an area of growth for the company. But much of its innovation in recent years has been focused on bringing the Chobani name into other dairy and non-dairy categories. Since 2019, Chobani has introduced oatmilk, cold-brew coffeeprobiotic beverages and coffee creamers. Yogurt generated $1.2 billion in sales for the company in 2020, while its other products posted net sales of $157.7 million. 

“We did look at ways to evolve [milk] in order to continue servicing our customers, but at the end of the day, we thought it would be best to focus our resources and prioritize our core products, like yogurt, coffee creamers and oatmilk,” the company said.

Chobani Half & Half, introduced at the same time as the Ultra-Filtered Milk, is remaining in the company’s lineup.

Chobani has not publicly shared how sales of its milk were doing and how many retail locations were carrying it. It’s possible sales weren’t doing as well as the company liked, or not as many stores opted to carry it as initially expected.

Chobani seemed to hint in its statement that inflation made it too costly for the company and its co-packer, so it’s possible it no longer made financial sense to keep producing the milk. It makes sense for Chobani to devote more of its finite dollars and resources toward growing and innovating products that have shown more promise. 

The decision to end production of its ultra-filtered milk comes amid a tumultuous time for the New York dairy maker.

In March, Chobani hired its former president and chief operating officer Kevin Burns to return to the position after his predecessor, Peter McGuinness, left to run Impossible Foods. It’s uncertain whether Burns played a role in ending the production of the company’s milk. Earlier that month, other executives joined McGuinness in leaving Chobani, and the company announced plans to delay its long-awaited IPO until later this year or 2023.

Source: fooddive.com

Fourth-generation dairy farmer worried about the future of agriculture amid rising costs and labor shortages


A fourth-generation dairy farmer told Fox News on Monday that climate change-related policies and heightened economic woes could signal bad news for her family’s farm and the larger agricultural community.

“We’ve seen 45,000 dairy farms go out since 2003. I’m worried for my beef farmers, the processing plants… I’m worried about pretty much all of agriculture. What is our future looking like and how are Americans going to rally around our agriculture community? We must support our local agriculture. We cannot let regulations kill off our food supply,” Stephanie Nash said on “Tucker Carlson Tonight.”placeholder

Rising costs, labor and supply shortages and little federal support – in addition to climate change and conservation regulations – are all major obstacles threatening the Nash family, and others like them. 

Chris Pollack, co-owner of Pollack-Vu dairy farm tells Fox News fuel costs have more that doubled (Megan Myers/Fox Digital)

Chris Pollack, co-owner of Pollack-Vu dairy farm tells Fox News fuel costs have more that doubled (Megan Myers/Fox Digital) (Fox News)

“We are facing higher farm inputs, were facing opinions from the public, were facing regulations, were facing drought,” Nash said. “[In] California, [Gov. Gavin] Newsom passed a law that we can’t drill any water right now, and California has the largest agriculture county in the United States,” she told Carlson.

Nash said the Biden administration has not only been little help to farmers and ranchers, but they’ve “made it very clear that the Green New Deal and climate change and billions of dollars going to Washington, D.C., is their agenda and they couldn’t care less about the American people, our food supply and our food security.”

The cost of fertilizer alone has risen more than 300% in some areas, according to the American Farm Bureau.

Rising costs, labor and supply shortages are all major obstacles threatening farms across the U.S.  (Matt Leach/Fox Digital)

Rising costs, labor and supply shortages are all major obstacles threatening farms across the U.S.  (Matt Leach/Fox Digital) (Fox News)

The rise in price is due to a number of factors, including increased demand, supply chain disruptions, increase in energy costs, according to the American Farm Bureau. Even the war in Ukraine plays a role.placeholder

Nash said she hopes people will start to realize that “no farm,” means “no fuel,” and “no future.”

Source: foxnews.com

21/22 Great Britain milk year finishes 1.5% down

The 2021/22 milk year (Apr-Mar) has ended, with GB milk deliveries totalling 12.36bn litres – down 1.5% on the 2020/21 season.

Although the season started with a relatively strong spring, numbers started to fall behind year-ago figures around July as production fell swiftly from the peak. Production then stayed behind for the rest of the season, as rapidly rising input costs hit farmer margins and restrained yields.  

  graph of GB daily milk deliveries

Production did pick up through March 2022, with the usual seasonal upturn as the spring flush began. However, it continued to run below year-ago levels, with deliveries totalling 1,072m litres in March, down 3.1% on March 2021.

For the new season (2022/23), we have forecasted deliveries to reach 12.25bn litres, which would be another 0.9% down on 21/22. However, with cost pressures looking set to continue, it is possible that production could be even lower than this, depending on how prices and availability of key inputs evolve through the season.

Source: ahdb.org.uk

Space: The next frontier for dairy at Yili

The collaboration will include establishing a space lab for future dairy, which will aim to leverage space technology to bring new transformative innovations to the health sector.

Yu Dengyun, deputy director of the science and technology committee of CASC and academician of the Chinese Academy of Sciences, said the two sides will focus on boosting the dairy industry through space technology. He said research on space biology and new space materials will introduce new solutions to upgrade the dairy industry.

“Yili will strive to develop more healthy dairy products that fulfill consumers’ nutritional demands and meet strict quality standards. We will drive and contribute to the upgrading of the dairy industry through space technology,”​ said Zhang Jianqiu, CEO of Yili Group.

The two sides will work with related space institutes on scientific research, technology transfers and product development. Through joint efforts in packaging using new space materials, bacterial strains in space, TanSat-based pasture monitoring, and health and nutritional care, Yili said they are committed to taking dairy products to a higher level.

The lab marks a step forward towards further empowering industries with space technology and improving consumers’ health and nutritional status. Dr Situ Wenyou, a scientific researcher at Yili’s Innovation Center, said he hoped the inter-disciplinary cooperation will bring about lighter, safer and more environmentally friendly food packaging materials, as well as nutrition and health products tailored for special segments of the population, with the aim of enabling consumers to enjoy advanced technologies and products in their daily lives.

Yili said it aspires to participate in future space experiments by applying research to dairy products under special conditions such as long-term microgravity, strong radiation and extreme temperatures.

To date, the company has built 15 innovation centers globally, and actively engages in innovation-focused collaborations across its supply chain.

Yili is also stepping up its efforts to build the Future Intelligence and Health Valley in Hohhot, Inner Mongolia Autonomous Region. The Valley includes a $785m demonstration program focused on the 5G- and AI-based green production of liquid milk, the largest and most highly automated such initiative of its kind.

Source: dairyreporter.com

Dairy industry mulls federal Milk Marketing Orders overhaul

Dairy groups across the United States are currently working on proposals to overhaul the Federal Milk Marketing Orders.

For years, the orders have put Midwestern dairy producers at a significant pricing disadvantage to their counterparts in other areas of the country. That is because this complex marketing system pays producers in states in the northeast and southeast United States, who predominantly produce fluid milk, more than producers in states like South Dakota and Minnesota, where the milk is largely used for manufactured dairy products such as cheese.

marin bozic um.jpg
 
Marin Bozic is an assistant profession at the University of Minnesota.

Contributed / University of Minnesota

Marin Bozic is an assistant professor in dairy foods marketing economics in the Department of Applied Economics at the University of Minnesota. He said as Congress prepares to write the 2023 farm bill, he is proposing sweeping changes to the way milk is priced.

Bozic believes the FMMOs are no longer effective because fluid milk sales are not that strong anymore. The foundation of Bozic’s proposal looks at rebuilding trust between dairy producers and milk buyers through a Milk Check Transparency Report.

“Which is a way for dairy producers to understand better their milk check and to understand better how they are being paid verses others in the region are receiving,” he said.

A view of the hooves of a cow hooked up to a milking machine.
 
Dairy industry officials are working on a rewrite of Federal Milk Marketing Orders that disadvantage Midwestern dairy producers.

Michelle Rook / Agweek

Bozic said the industry also needs legislation to mandate fairness in milk contracting.

“Meaning that when a producer and their buyer have a contract for selling milk, that contract should have a certain structure and it should be in writing,” he explained.

Beyond that he says if a processor no longer wants to buy an operation’s milk, they should give at least six month’s notice so that the dairy producer can find another buyer.

Another part of his regulatory change proposal also prohibits contracts where dairy buyers require exclusivity and impose volume limits at the same time, which he says is a practice taking place today.

“If I am a buyer and you are a dairy producer I can say if you want to ship your milk to me, I am going to buy it, but you’re not allowed to work with anyone else, you only work with me and that’s OK. Then I cannot come back to you and say you can only work with me but I’m not going to buy all the milk you have I’m only going to buy a certain portion of your milk, or I am going to buy all your milk today, but you’re not allowed to grow,” he said.

He said if a processor is not allowing an operation to expand to reap efficiencies, then they have to allow the dairy producer to ship to multiple milk buyers.

South Dakota Dairy Producers Association President Marv Post said his organization is part of a coalition of Midwestern dairy groups asking for a wholesale rewrite of the FMMOs. The coalition has commissioned a study of the pricing system.

“We found out that if you change a little bit in one place, it’s such a big document that it has unintended consequences later on,” he said.

Post said the orders are outdated and need to be modernized and that came to light in 2020 during the pandemic.

“That is what has driven this after the COVID and the negative (Producer Price Differentials) that we saw for Class I milk,” he said. “So let’s take a wholesale look at it.”

The Producer Price Differential, or PPD, is the remaining market value of producer milk after accounting for the component values. To determine each FMMO PPD, the difference between the component and classified value of milk in the pool is divided by the total pounds pooled on the FMMO.

Bozic said as producers in the I-29 Corridor look to grow, new FMMOs would provide the framework for a new social contract between dairy producers and dairy manufacturers. He said this way no one would feel taken advantage of and dairy producers would be better able to manage their risk because they know what the expectations are.

Post said once the new rules are done, they need to be agreed upon by all dairy producers. In order to accomplish that, the FMMO will need to be changed so that they don’t disadvantage producers in the Midwest.

“So that it works for all parts of the country and that we can all use it in our areas,” Post added.

Bozic expects likely debate on this issue in Congress and among the industry in the next three to four months.

Source: agweek.com

Dairy farms decline 64% in 20 years with shift to bigger, commercial operations

America’s small dairy farms are disappearing as larger agricultural operations are producing more milk, cheese, ice cream and butter at lower costs. placeholder

Some small family farmers can’t compete.   

There seems to be a red barn on every corner in Waterloo, Wisconsin. But you likely won’t find any cattle inside many of them.

George Crave is the head cheese maker and president at Crave Brothers Farmstead Cheese. He drove around the town of Waterloo pointing out where cattle farms have closed. 

dairy farm

George Crave with Crave Brothers Farmstead Cheese says people are consuming two to three times more cheese than they were 15, 30 years ago, which has driven dairy sales. (Fox News / Fox News)

“There’s a barn over there. See that? No cows,” Crave said. “Dairy farming, you have to understand, is a 24/7 operation.”

He’s seen small dairy farms in Waterloo vanish over the past 40 years.    

“There are about 15 farms in the township here. They used to milk cows, (but) don’t milk cows anymore. However, we produce more milk on this farm than what all those other 15 farms produced in a day,” Crave said. 

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Wisconsin milk

Data from the 2017 census on farming in the U.S. shows that Wisconsin and California accounted for about a third of U.S. sales.  (Fox News)

Last year, Wisconsin lost 360 dairy farms, about 5% of the state’s total. It’s a similar story across the country. Nationally, 5.7% of dairy farms closed in 2021. 

“The number of farms has been declining. And their average size has been growing,” said Peter Vitaliano, an economist with the National Milk Producers Federation.   

In 2000, there were 83,000 licensed dairy farms in the country. Today, there are fewer than 30,000.    

The Feltz Family Farm and Dairy Store started in the 1990s with just 50 cows.   

“We’ve grown to be about 600 cows now,” Jake Feltz said. “I have noticed, especially in the last 5-10 years, some of those smaller farmers in our area have closed down.” 

Vitaliano says consolidating into bigger farms usually means lower prices at the grocery store. placeholder

“We’re seeing prices that in previous normal times would lead to an explosive increase in milk production. We’re not seeing that because it’s getting very, very difficult and expensive to expand production,” Vitaliano said. 

But inflation is increasing prices, and supply issues are helping drive that. 

Crave Brothers dairy

George Crave of Crave Brothers Farmstead Cheese says dairy farming is hard work, and many farmers have retired from the industry or chose to move on to jobs that don’t require work on weekends and holidays.  (Fox News / Fox News)

“Construction materials are hard to get and (there are) huge delays in getting lumber, any construction materials,” Vitaliano said. “Farm machinery is almost impossible to get. There are huge delays in availability, and there’s a lot of partly finished farm equipment sitting on lots just like there are buyers waiting to get computer chips, which are in short supply.

We’re looking at historically high milk prices this year. But costs are going to be also historically high because replacement cows are getting hard to find. Labor is very hard.”   

Vitaliano says the growth of commercial farms has a bit of a social cost because rural communities are losing population, which means they lose schools, hospitals and medical care. But many of these farms give back to the communities in other ways. 

Crave Brothers Farmstead Cheese says it has donated to local schools, and Feltz Family Farm is booked with school field trips all next month.  placeholder

Even though larger farms are more cost effective, supply shortages and inflation have made it harder than ever for farmers to buy materials and expand.  

Source: FOX

U.S. Dairy Industry Urges Additional Export Supply Chain Relief

The U.S. Dairy Export Council (USDEC) and the National Milk Producers Federation (NMPF) today sent a letter to the Biden administration recommending specific steps to provide relief and support to dairy farmers and exporters facing supply chain constraints.

The letter to Agriculture Secretary Tom Vilsack and Transportation Secretary Pete Buttigieg called for interagency collaboration to enhance capacity at ports, incentivize carriers to load export cargo, and improve transparency throughout the supply chain. The lead recommendation called for USDA’s Agriculture Marketing Service (AMS) to restart its Ocean Shipping Container Availability Report (OSCAR).

“Supply chain challenges have cost U.S. dairy exporters over $1.5 billion last year alone. We thank Secretaries Vilsack and Buttigieg for their advocacy for America’s agriculture exporters in the face of significant supply chain constraints. We are incredibly grateful for the administration’s ongoing efforts and creative solutions, particularly for the development of ‘pop-up’ sites for agricultural exporters to source empty containers,” said Krysta Harden, president and CEO of USDEC. “The additional recommendations submitted today would provide agricultural exporters much needed insight into container availability and provide avenues to incentivize carriers to load outbound shipments to key dairy markets around the world.”

“Shipping containers for U.S. dairy exports continue to be in short supply at coastal ports, and even more scarce at inland locations. These essential links in the global supply chain must be available to American dairy exporters throughout the country in order to ship their products to overseas buyers,” said Jim Mulhern, president and CEO of NMPF. “We thank USDA and DOT for their strong focus on this issue. As congestion continues, so too must the spectrum of tools deployed to address these challenges. Today’s letter highlights the additional steps necessary to take to ensure American dairy farmers are not losing long-term international market share due to these persistent supply chain challenges.”

The specified programmatic elements to provide supply chain relief include:

  • Restarting USDA AMS’ OSCAR, which would detail the availability of ocean shipping containers at locations throughout the United States.
  • Establishing inland pop-up terminal yards, similar to those in Oakland and Seattle, in Minneapolis, Chicago, Detroit, Salt Lake City and Kansas City. This would enable greater access inland to containers and improve the ability to secure vessel accommodations with short earliest-return-date windows at those locations.
  • Developing the ‘fast lane’ concept to incentivize the flow of agriculture exports into and from ports. This would include trucking lanes at port terminals that are dedicated to the expeditious delivery of perishable agriculture goods to ports.
  • Incentivizing ocean carriers to load more export containers, instead of empty containers, through preferred or prioritized berthing access.
  • Including real-time tracking of containers as part of the Administration’s Freight Logistics Optimization Works initiative.
  • Piloting projects with carriers for ‘dual turns’ of containers, wherein containers delivering imports to an in-land location may be provided directly to an export-focused shipper, rather than being sent back empty to the port. This could be supported through the USDA’s Commodity Credit Corporation resources.

 

Eastern Iowa dairy farmer uses social media to entertain and educate

Dan Venteicher is no stranger to technology.

On his Iowa dairy farm, robots milk and feed his cows every day.

“So this [robot] is one thing people really enjoy seeing and watching is the robot itself,” he explains as a cow wanders in for a milking, which is done by laser-guided robots.

“There we go, perfect connection,” Venteicher says as the milker latches on to each of the cow’s udders after wiping them clean.

Over the last year, though, he’s made connections through another tool – his smartphone.

“It completely blows my mind that every month, 35 million people have seen our page and it’s just a dairy farm,” he says.

Last March, Venteicher started using TikTok to share his daily experiences on the farm. He added Facebook in July to reach another audience.

“Another reason we went to Facebook was because I kept getting banned from TikTok,” he explains, saying the algorithm often mistakenly flagged his videos as graphic content. “Between the two, we’re over 1.1 million followers.”

Now Venteicher says he’s always carrying his phone, ready to film even the most mundane chore. A video about power washing his barn floors often nets more than two million views.

Some of the cows have become used to the limelight. (Photo: KGAN)

The idea to get on social media came after Venteicher stumbled across a TikTok video a college student took of his robots during a tour.

“I saw that and I saw the comments were kind of making fun of the equipment, saying how crazy it was, we were crazy, why do we need robots?” he says. “And that, honestly, just really annoyed me.”

Now he works to explain and entertain as he battles myths and misinformation about the industry, especially claims of animal abuse and adverse impacts on the climate from farming.

“People really liked what I was showing and it kind of took off from there,” he says.

He’s introducing the next generation to an industry that’s losing small farms every year. Venteicher says younger people are shifting away from the long hours and hard work they saw their parents and grandparents put into family farms. Before his operation went automatic, he was putting in 16-hour days and missing out on time with his kids.

Now his hard work goes into his content.

“There’s less than 30,000 dairy farmers in the whole country, so there’s a massive story to tell and not a lot of people to tell it,” he says.

His tools have helped free him up for his family, but also allowed him to share his story across the globe. While most of his followers are in the U.S., he also gets views from the U.K., Australia and Ireland.

He does get trolls who have beef with what he does; some have even threatened him.

“Those comments are offset ten-fold from comments from people who tell me we completely changed their mind on the dairy industry,” he says.

So he’s just going to keep milking it.

“I screenshot every one of those comments, ‘I started drinking milk again because of your page,’” he smiles. “Those are what make it worthwhile.”

Source: nbc24.com

BC Dairy farmers going green — 3 stories of environmental innovation

When the Stobbe family moved their farm from Abbotsford to Mara, BC, in 2003 they immediately had a problem to solve. Thank goodness farmers are problem-solvers and see every challenge as an opportunity to improve efficiency.

“It’s important to cool raw milk as quickly as possible,” explains AJ Stobbe. “Milk grows bacteria when it’s warm. The longer it’s warm, the more bacteria it grows.”

In Abbotsford the Stobbe family used electricity to rapidly cool their raw milk from 38 degrees Celsius to 2.5 degrees Celsius and natural gas to heat their barn and other buildings. However, their new farm in Mara didn’t have access to natural gas, and they didn’t want to use propane to heat buildings. So they followed the lead of cutting-edge farmers in Europe and installed a geothermal system – not only does it draw heat from the milk, it also repurposes that heat to warm the barn, offices and their family home.

“Our primary goal was to invest in our cows, keeping them healthy and productive. But it’s a real source of pride that we’ve found a way to use this technology to heat the floor in the barn and other buildings as well,” Stobbe says.

Today, the farm doesn’t use any fossil fuels other than diesel in its tractors. They’ve also recently started a blueberry farm, and are committed to keeping it insecticide-free so it’s a safe place for pollinators.

“Sustainability is a balance. We’re still running a business, so if we don’t make a profit we’re not sustainable long-term. If creation around us dies or our cows are unhealthy, that’s not sustainable either,” Stobbe says. “Anyone who comes to our farm for a tour immediately sees how much we care. We love showing people everything we’re doing.”

Mickey Aylard of Brackenhurst Farm on Vancouver Island’s Saanich Peninsula is preserving family heritage while incorporating new practices to make her farm sustainable for future generations.

Mickey Aylard of Brackenhurst Farm on Vancouver Island’s Saanich Peninsula is preserving family heritage while incorporating new practices to make her farm sustainable for future generations.

Sustainable farming for future generations

On the Saanich Peninsula on Vancouver Island, Mickey Aylard of Brackenhurst Farm is also focused on longevity through sustainability.

“We still have cows in barns my great-grandfather built. Preserving that family heritage is pretty big for us,” she says. “My family’s been farming for four generations, and I would love for the family to continue farming here for another four generations. We can’t do that if we don’t take care of the land and the animals.”

They’ve dug ditches to capture rainfall reducing erosion and preventing flooding while also providing a source for irrigation. They have plans to add solar panels, and plant fast-growing Empire apple trees that will sequester carbon dioxide and support pollinator populations.

“We won’t have any food if we don’t have any bees,” Mickey says. “There are a lot of really cool sustainable practices I would love to do, but it takes time to fulfil them all.”

In Agassiz, Holger Schwichtenberg is planting trees and adding walking trails to care for the land and give back to the community.

In Agassiz, Holger Schwichtenberg is planting trees and adding walking trails to care for the land and give back to the community.

Caring for the environment, the people and the cows

Back on the mainland in Agassiz, Holger Schwichtenberg is also a careful steward of the land. When his parents started in 1960 their dairy farm was rural, but now houses have sprouted nearby. So he’s worked with the community to plant hundreds of native trees and shrubs and install a walking trail on the farm’s perimeter that’s free for his neighbours to use.

“This is a beautiful place to live, a great place to raise kids,” he says. “Your farm environment should be about contented animals and contented employees, who are fairly compensated, well treated, and where educational opportunities are encouraged. You take care of the environment, you take care of people, and you take care of the cows.”

Learn more about sustainable farming practices at bcdairy.ca and on Facebook, Instagram and Twitter.

Aussie beverage company Made removes natural sugars from milk

Beverage producer Made is expanding its portfolio by launching ReMilk which has half the sugar and more protein than standard milk. 

Featuring patent-pending cold filtration technology, the milk is sourced locally and filtered to balance the protein and natural sugar content. 

Natural milk contains about 12gm of sugar in the lactose which means that even low-fat milk contains sugar. 

A survey conducted by Nature and commissioned by ReMilk has shown that 65 per cent of Aussies are concerned about the amount of sugar in their diets. A growing number of consumers are tending to buy lactose-free milk since regular milk can cause an upset stomach or bloating.

According to Made, “consumers can remove up to 1.7 kilograms of sugar from their diet every year” by switching to ReMilk which, being lactose-free, is easier to digest.

“With Aussies seeking healthier alternatives and simple swaps to remove sugar from their diets, we saw an opportunity in the white milk category that wasn’t tapped into,” said Luke Marge, co-founder and joint CEO at Made. 

“Together with our 100-per-cent renewable carton, ReMilk will revolutionise the way Aussies consume milk that is better for their health and the environment.”

ReMilk has an RRP of $3.20 for a 1L carton and comes in full cream and light options. It is sold through Woolworths and independent retailers across Australia. 

Source: insidefmcg.com.au

Dairy industry seeks to ‘curb’ local rules for livestock near St. Croix River

Hog CAFO in North Carolina. (Photo by Emily Sutton, Waterkeeper Alliance, via Flickr)

Two statewide Wisconsin dairy lobbying groups, joined by a pair of farmers from Polk and Burnett County, have asked the state Department of Agriculture and Trade Policy to review new ordinances recently passed in northwestern Wisconsin. As previously reported on St. Croix 360, in recent months a coalition of rural towns has worked to pass similar ordinances to prevent pollution from proposed Confined Animal Feeding Operations (CAFOs).

This week, the Dairy Business Association and Edge Dairy Farmer Cooperative wrote to state regulators asking for an assessment of whether the ordinances are consistent with state law. Their argument is essentially that the towns don’t have legal authority to say how large-scale livestock facilities can operate.

“The towns assert to rely on a town’s general police power, a town’s ability to regulate nuisances and a local municipality’s jurisdiction to prescribe livestock regulations, even though no evidence has been provided that either the Department of Natural Resources or DATCP have reviewed and approved any ordinance as mandated in the statute,” wrote Chad Zuleger, a lobbyist for the industry groups.

The letter (PDF) urges the agency to act, noting that three of the towns have already passed their version of a model ordinance developed in partnership, and the other three may soon join them.

Readers make St. Croix 360 possible.

Local advocates who have supported the town efforts said the ordinances were carefully crafted and within their authority. Complicated legal questions abound, but simply put, the Wisconsin legislature has given state agencies a lot of power over CAFOs, but still allows local governments to regulate operations as long as their policies are based in fact and science.

Andy Marshall, an attorney and local property-owner who has been deeply involved in the ordinance effort, said he is confident the ordinances will stand up to challenges.

“Trade Lake has done a ton of work researching and drafting not only its CAFO Operations Ordinance but also the CAFO Study Committee Report — which is about 130 pages long and includes over 200 citations to scientific and industry research articles,” Marshall said. “The report is incorporated into the ordinance by reference and provides scientifically based findings that support the ordinance.”

He also questioned how a private organization could request the government spend taxpayer dollars and resources to conduct such a review. One of the towns referenced, Trade Lake, hasn’t even implemented the policy yet as it works to finish the application forms that will be required.

“[The] request is, at the very least, premature,” he said.

The Wood River, a St. Croix River tributary downstream of areas where the proposed Cumberland CAFO would spread manure. (Greg Seitz/St. Croix 360)

No matter what, Marshall says the ordinances are necessary to ensure new CAFOs don’t harm health, pollute lakes, rivers, and groundwater, or destroy property values.

“Wisconsin regulations partially address the millions of gallons of feces, urine and process water these factories produce but are poorly enforced,” Marshall said. “Health issues, air pollution, carcass disposal, biosecurity, fire safety and road damage are just some of the other issues our local ordinances address.”

Polk County farmer and CAFO opponent Lisa Doerr said the operations ordinances are intended to prevent the kinds of problems recently seen around Wisconsin. For example, it regulates the disposal of dead animals.

“Our town ordinances only apply to giant animal factories like the one in Jefferson [County] that had to kill 2.7 million chickens,” Doerr said. “Town people there had no idea the factory would be composting birds infected with highly infectious avian [flu] at the end of a residential driveway. A Barron County Jennie-O turkey plant just announced having to kill nearly 50,000 birds. We don’t know where those carcasses will go. Under our ordinances the factories are required to submit biosecurity, depopulation and disposal plans.”

The only formal CAFO proposal in the region currently is the Cumberland LLC plan for a facility in Trade Lake that would house up to 26,000 hogs and produce 9 million gallons of waste each year. The facility would be used for breeding swine, and would almost certainly require nearby facilities to finish the hogs to market weight, and it’s likely other related operations would follow.

Residents of the area report that interest from companies like Cumberland, which is owned by Iowans, is high.

“We know that the large livestock industry wants in to northwestern Wisconsin,” Doerr said. “They have approached many land owners to buy land. They have spent thousands on Madison lawyers and lobbyists. They want our land, air and water.”

For the past several years, local governments aware of this possibility have instituted moratoriums and worked to pass new protections. The goal has been to clearly communicate to companies behind any new CAFO proposal what the community expects.

“If corporate farming interests want to do business in our back yards and take advantage of our local resources, then it is entirely appropriate that our local ordinances require these industrial agricultural operations show how they will protect our lakes, wells and farms from contaminants and pathogens,” said Marshall.

The letter from the agriculture groups say the new ordinances would add fees and require additional reporting, as well as reducing the number of animal allowed and limiting the hours of operation. The groups also say the ordinances were developed and passed without state review and approval.

Trade Lake Town Hall (Greg Seitz/St. Croix 360)

CAFO critics say state review of the new ordinances is not required because the policies were developed under a separate law from the state’s livestock facility siting law.

“[O]ur towns have developed Operations ordinances that are built on Wis. Statute 92.15,” Doerr said. “Under that law, towns are not required to have an ordinance reviewed or authorized. We’ve written the strongest legal protection possible.”

Under the model ordinance developed by the town consortium, large livestock facilities could need to apply for a permit, which might include conditions to protect human and animal health, “safety, and general welfare, prevent pollution and the creation of private nuisances and public nuisances, and preserve the quality of life, environment, and existing small-scale livestock and other agricultural operations.”

There are only a few CAFOs currently in the St. Croix River watershed. A dairy operation in the Willow River watershed, owned by out-of-state individuals, has caused manure runoff that killed fish in a nearby trout stream, and was possibly linked to extremely elevated levels of harmful nitrates in a nearby well. Another large dairy near Shell Lake has had problems in the past, although the family who owns it has taken significant steps to prevent pollution recently.

Marshall pointed out that the lobbying groups’ objections to the new ordinances don’t concern the many existing small- and medium-sized farms in the region. The new requirements would only apply to new proposals and expansions that surpass the CAFO cutoff.

“So it is interests outside of Trade Lake, who want to take advantage of our resources and risk damage to our health, air, and water, who now seem desperate to challenge the work being done by Trade Lake and other local communities,” Marshall said.

Source: stcroix360.com

Inflation is hurting dairy farmers in multiple ways

Inflation is hitting the farms behind that gallon of milk in your fridge.

Jeff King of King Brothers Dairy in Schuylerville says costs are rising in every aspect of the business. He’s seeing higher prices for the diesel for the delivery trucks and tractors, for the fertilizer, and the feed for the nearly 2,000 cows on his farm.

We spend a fair bit of money to purchase corn and soybean and grains and so forth. Our costs are up at least 30% over 4-5 months ago.” King said.

He says inflation is even impacting the packaging for their products.

“We’ve had some of our suppliers talk to us and say you should really think about ordering enough packaging for 8 to 12 months because they’re not even sure that we’re going to be able to get some of that!” He said.

King says as much as they’ve fought it, they have raised their prices – including the delivery fee for home milk delivery. He says prices are up about 20% in some instances.

King says he’s very thankful for loyal customers, but the uncertainty of the future is a big cause for concern for his small business.

I’m worried about the future and I hope that our economy can level out we can slow this inflation train down a little bit.” King said.

Right now, a gallon of milk at Kings Brothers is $3.89. The Regional Dairy Management Specialist with Cornell Cooperative Extension tells me, the average cost of milk nationwide is the highest it’s been in years.

CBS6 looked at the USDA’s Retail Milk Price Report, which shows the average cost of a gallon of whole milk. Milk in the Syracuse area costs about $3.92 this month. The data shows it has increased more than 30 cents since the start of the year. The report did not list data for the Capital Region, Syracuse was the closest city listed.

Source: cbs6albany.com

A new report claims the capital restructure of Fonterra, New Zealand’s biggest business, will cause its farmers a short-term loss of $4 billion

A new report claims the capital restructure of Fonterra, New Zealand’s biggest business, will cause its farmers a short-term loss of $4 billion, strengthen the dairy company’s market dominance and push up the price of chilled milk at the shops

The Castalia report commissioned by Fonterra export rival and the country’s second-biggest dairy processor Open Country says it will also probably fuel land prices

Open Country hired Castalia, a global strategic advisory firm, to examine the impact of the proposed restructure on Fonterra’s share price and on competition between dairy processors for milk supply.

In summary, the report said the proposal would likely collapse the price of Fonterra shares and shift significant wealth from current farmers to Fonterra itself.

Fonterra said it had not seen the report and was not prepared to comment in detail without reading it.

Source: home.nzcity.co.nz

Great Britain milk production could fall by over half a billion litres

The uncertainty surrounding availability and prices of key inputs makes forecasting milk production for the upcoming season an even trickier task than normal. 

With access to key agricultural inputs and feed ingredients severely impacted by the Ukraine war, we have looked at how milk production may be impacted under alternative scenarios. GB milk production could fall by between 0.8% and 5.3% depending on what happens to feed prices, availability, and milk prices. 

Our baseline forecast, completed in March following discussions at the Milk Forecasting Forum, set production for 2022/23 at 12,250 million litres. This represents a drop of 0.8% on the already reduced volumes delivered in 2021/22, estimated at 12,344 million litres.

 The baseline forecast assumed a lower than average retention rate and reduced yield growth for the season to zero from the long-term trend of 2.3% annual growth.

Low impact
  • Assumes feed costs remain high into the autumn, but milk prices increase sufficiently to cover costs. Good grass growth in the spring provides a good volume of winter silage
  • Yield growth remains at 0% for the year as per baseline forecast
  • High cull cow prices, plus uncertainty over cashflows in winter arising from a reduced SFP and higher feed costs accelerates destocking. This is accounted for by a reduction in retention rates by 1% from the long-term trend 
Medium impact
  • Assumes feed costs remain high into the autumn plus higher volume of purchased feed due to lack of silage
  • Could also cover situation where there is sufficient winter silage but increases in milk prices are not large enough to cover increased costs leading to a low MFPR
  • Either of these situations are assumed to lead to negative yields growth of -1% for the year
  • High cull cow prices, plus uncertainty over cashflows in winter arising from a reduced SFP and higher feed costs accelerates destocking. This is accounted for by a reduction in retention rates by 1% from the long-term trend
High impact
  • Assumes further increases in feed costs through the year, driven by poor yields in key exporting regions as a result of reduced fertiliser use. In addition, there is a lack of good quality or sufficient volumes of silage for winter feed, leading to increased purchases
  • The added pressure to cash flows provides a stronger incentive to destock, so retention rates are reduced by 2% from the long-term trend
  • Yield growth remains at -1% for the year
Very high impact
  • In addition to the high feed costs and higher purchases (due to lack of good quality or sufficient volumes of silage), milk prices fail to keep up with rising input costs. Yields fall by 2% for the year due to the low returns on purchased feed
  • The high cost to retain animals over the winter, plus the incentive to sell for cashflow reasons
  • Retention rates lowered by 2% from long term trend due to high cost to keep animals over the winter plus incentive to sell to ease cashflow

Potential milk production scenarios for 2022/23

milk production scenario assumptions table

milk production scenarios table

milk production scenarios graph

 

UK milk production could fall by over half a million litres

Uncertainty, rising costs cited as key drivers

Great Britain’s milk production could fall by up to 605,000 litres (5.3%) over the 2022/23 season according to new analysis by AHDB.

With uncertainty about how prices and availability of key inputs will develop through the year, and the impact on cash flows, AHDB have looked at the potential impact on milk production.

Five alternative scenarios show that production could fall between 0.8% and 5.3% depending on how changes impact decisions on farm.

“Access to key agricultural inputs and feed ingredients have been severely affected by the war in Ukraine, which is forcing decisions to limit production,” said Patty Clayton, AHDB lead dairy analyst.

In March, AHDB published a baseline forecast based on discussions from the Milk Forecasting Forum, which set production for 2022/23 at 12,250 million litres, an 0.8% fall on the previous season.

AHDB have updated this forecast to reflect a range of scenarios from mild to very high impact based on changes to feed, cull cow and farmgate prices as well as retention rates.

“The current uncertainty makes forecasting milk production for the upcoming season an even trickier task than normal, but we know it’s going to be a tough year for farmers,” said Clayton.

“Reviewing input costs, feed strategies and making the most of home-grown forage can all help. Farmers could also use the cost benefit calculator on our website to understand whether it makes sense to apply fertiliser to grassland,” said Clayton.

Source: thedairysite.com

Time To Stop Digging

By Rick Adamski
Wisconsin Farmers Union President

In the game of Monopoly there is only one winner. If current dairy ‘market forces’ prevail, we are steadily moving in that direction.

Losing one to two dairy herds per day, as we have in recent years, is not progress. It is a sign that our antiquated dairy policy and ongoing price volatility need to be addressed.

In late March, dairy farmers from local chapters of the Wisconsin Farmers Union and Wisconsin Farm Bureau Federation teamed up to host a series of Dairy Revitalization meetings in western Wisconsin. The success of the events indicates interest and the potential for bringing about the kind of change we hope for in the future.

I use quotation marks around the phrase ‘market forces’ because the fiscal and public policy of past decades has been intended to continue a trajectory pre-determined for us. It is time that we reevaluate these assumptions of ‘progress’ and evaluate the effects of past policies.

We almost had a more farmer-friendly dairy policy in the 2014 Farm Bill, but it was taken out in the eleventh hour due to powerful lobbying forces at play. The outcome is that we have spent around $1.2 billion more on government-funded dairy subsidy programs than what would have happened had we adopted growth management in 2014. We have lost countless dairy herds that might still be in business today, if we would have had a mechanism in place to better balance milk supply with demand. We have witnessed the erosion of farms from the landscape throughout the Midwest.

Thousands of farms have been forced out of dairy production in recent years because of these bad policies and broken markets. Opportunity seems to be reserved for only a handful of farmers and thus exposes how policy creates a history of American agriculture where the big get bigger and the small get out.

It is imperative that we diligently monitor our deliberations leading up to the next Farm Bill in 2023. Those in power want to continue the trends of the past. They want to conserve power with those who have power. It will be easier for politicians to support subsidy programs over meaningful reform, because there is little accountability for those subsidies. Projections will be created upon false hopes to justify more of the same types of policies.

If we look at these policy options as opportunities to learn from our past, we may create a better future.

A new set of data needs to be considered in these discussions. The lessons learned from a concentrated food system during the distress of the COVID-19 pandemic teach us that a diversified agriculture is a more resilient agriculture. This lesson has been learned by countries experiencing the turmoil of war or the losses caused by catastrophic natural disasters. Depending upon a very consolidated supply chain is not as durable as a distributed, diverse production system. We need farms of all sizes that will be able to supply our basic needs in a very uncertain future.

I believe that if you find yourself in a hole, the first thing needed to be done is to quit digging. The hole that the US dairy industry is in is a trend towards fewer and larger farms, which concentrates our food security into the hands of a few.

We can create a better, more diverse future with the plan presented at the Dairy Revitalization meetings. We can restore a more vibrant rural economy based upon more diverse farms. We can start breaking the addiction to government subsidies to prop up only the farms and agribusinesses that are ‘too big to fail.’

If you weren’t able to attend the meetings, I encourage you to visit www.DairyTogether.com to learn about this plan that could increase farm net income, decrease our reliance on subsidies, stabilize the markets, and create a future for the next generation of US dairy farmers.

Rick Adamski is the president of the Wisconsin Farmers Union. He and his family run Full Circle Farm near Seymour, WI. 

Canada’s dairy farmers unimpressed with 2022 federal budget

Full details were not provided in the budget announcement

Dairy Farmers of Canada (DFA) issued a statement following the Canadian government’s 2022 federal budget announcement last week. 

DFC said it is content with the clarity provided by the government in the 2022 budget on the timetable for an announcement for full and fair compensation for the impacts of the Canada-US-Mexico Agreement (CUSMA). However, the statement did express worries over the absence of full details on the compensation. Dairy farming requires predictability, namely for investing in innovation initiatives and sustainability, said the statement.

“Recall that during the 2021 federal election campaign, the Prime Minister committed that full and fair compensation for the impacts of CUSMA would be announced during the first year of the Liberal government’s new mandate,” the statement said. “In tabling Budget 2022 without details, the government missed an opportunity to provide predictability to the industry.”

DFC recently aligned with the government’s climate change objectives by setting a goal of net-zero emissions from farm-level dairy production by 2050. The organisation welcomed the announcement of funding to support the energy transition and sustainability at the farm level in the budget. However, it did say that compensation for the impacts of CUSMA is equally vital, as farmers will need to dedicate additional resources to support innovation and sustainability initiatives.

“We strongly urge the government to continue to engage with us on the details of full and fair compensation for CUSMA,” the statement concluded.

Source: thedairysite.com

Return of the milkman – why more and more people are choosing to pay to have their milk dropped to their door every morning

Many who grew up before the 1990s will remember opening the front door on a fresh blustery morning to find six glass bottles filled to the brim with fresh milk, dropped off by a milkman who you likely knew on a first-name basis.

Fast-forward to 2022 and the purchase of milk is a far less glamorous affair. Through the noughties, milkmen slowly fell out of fashion as supermarket giants gained a stronghold over the dairy industry, selling off cheap milk in plastic bottles – no strings attached.

In some parts of Wales, though, the milkman seems to be making something of a grand come-back. In Swansea and Cardiff in particular, demand for traditional doorstep milk is surging, and it has something to do with sustainability, as well as nostalgia.

One person who has discovered the joys of having their milk dropped off on their doorstep is Sheila Pryce, a 56-year-old woman from Cockett.

Sheila said: “I’ve been using the milkman for about eight years now. I saw him out there one night when I was putting the bins out, and I realised I had no milk in the house. It was a double whammy – I got myself two pints for the morning, and I now get to support a local business.

“It’s fab knowing that I don’t have to worry about remembering to get milk from the shop, and knowing my pint will be there for my morning cuppa.”

Sheila Pryce, pictured, started her milk subscription eight years ago and hasn’t looked back since. (Image: Sheila Pryce)

Sheila grew up in Dunvant in the 1970s, a time where having milk delivered was the norm. She said: “I grew up in Dunvant in the 70s, so it was the norm to have it delivered. The only difference is that I pay by direct debit now. It’s not as personal as it was back then, but my milkman does leave daffodils for St David’s Day, and occasional other bits through the year.”

The doorstep milk business is also booming in Cardiff with customers old and new.

Jay Jordan, a self-described “trendy fifty-something-year-old” living in Cardiff, said that the milkman was a life-line for her and her husband through the pandemic, particularly with her husband in the extremely vulnerable category.

She said: “Our milkman has been delivering to us for 23 years now. His name is Steve and he is superb, he’s like twinkle toes in the middle of the night. He’s been doing this for a very long time and it will be really hard to ever replace him.

“The milkman service was incredibly important to us throughout the pandemic because my husband has always been in the most vulnerable category. We don’t just order milk from them (Totally Welsh) either, we order vegetables, welsh cakes, garden products and even cleaning products. I will only use their butter.”

The milkman of today comes to deliver much more than just milk (Image: Totally Welsh)

Jay also orders doorstep milk for her 90-year-old mother who lives in Swansea. He said: “Another thing I like about using the service is that I can order milk for my 90-year-old mother who lives a while away in Swansea. I think everyone should support their local milkman. When it comes to this sort of thing, you get out what you put in. You have to appreciate the service for it to work efficiently and effectively. You have to nurture it and cherish and and love it.”

One milk company that’s noticed the surge in demand for doorstep milk is Totally Welsh, a local dairy that’s based in Haverfordwest.

Totally Welsh now deliver fresh milk and other goods to the doorsteps of 8000 homes in Cardiff and Swansea – roughly 80,000-100,000 glass bottles a week.

A spokesman for Totally Welsh said: “The numbers have grown a fair amount over the past few years from around 5000 to 8000, and that’s still growing. We were heavily relied upon through the pandemic, and I think people really came to appreciate being on a first name basis with their milkman. We were initially concerned there’d be a fall back after the pandemic as everyone went back to work, but there really was hardly any change.

“There has been a shift toward local businesses within communities – people like to know who their local butcher is, who their local fruit and veg suppliers are. Having a local milk man who you know on a first name basis, and who you can rely upon, is a great experience.

“We are still that traditional milkman – nothing has really changed. We deliver the milk in glass bottles and then sterilise them to use again. A big focus for us is on the sustainability of the glass bottle.”

The spokesman acknowledged that doorstep milk isn’t as cheap as supermarket milk, but customers are paying for a better service, and more often than not, better produce.

He also added that there is no pattern or ‘type’ of household that uses the milkman service, either.

“There’s no real difference in demographics when it comes to who orders doorstep milk. In Swansea, we deliver across the board and there’s no real difference in areas of affluence. Gorseinon, Llanelli and Port Talbot are fairly popular spots, but there’s really no pattern. Townhill is also a popular one.”

Source: walesonline.co.uk

Farmers and Ranchers Feel Crunch of Railway Supply Chain Shortfalls

The domestic rail transportation network is vital to the movement of products and goods supplied by America’s farmers and ranchers. U.S. railways account for nearly 28% of freight movement, second only to trucks within the domestic transportation system. Over the past two years, starting with the COVID-19 pandemic and exacerbated by global geopolitical rifts, supply chain efficiency has plummeted, with heavy disruptions across freight delivery. In a previous Market Intel, Increasing Freight Rail Rates Put Additional Pressure on Farm and Ranch Income, we outlined some of the factors complicating farmers’ and ranchers’ ability to cost-effectively utilize rail systems to move their products. Today, with growing reports of reduced delivery service, we provide an agriculture-focused status update on U.S. rail networks.

Some quick background: U.S. freight railroads are privately owned. As independent businesses they are responsible for the maintenance and efficiency of their railways, as well as for setting competitive rates (generally called “tariffs” by the rail industry) and formulating contracts. Approximately 94% of the revenue generated by the rail system belongs to seven Class I railroad-operating firms. Class I rail firms are defined as having inflation-adjusted annual carrier operating revenue of $900 million or more and include Burlington Northern and Santa Fe Railway (BNSF), Canadian National Railway (CN), Canadian Pacific Railway (CP), CSX Transportation, Kansas City Southern Railway (KCS), Norfolk Southern Railway (NS) and Union Pacific Railroad (UP).

Looking at how frequently grain rail cars are loaded and billed, as of the first quarter of 2022 there is still no obvious upward trend that would signify an abnormal increase in demand pressuring rail systems. The number of grain cars loaded and billed by Class I railways in the first three months of the year was about 25,000 units below the first quarter of 2021 and 75,000 and 50,000 units above the first quarters of 2020 and 2019, respectively. This range is well within the average variation between quarters and suggests grain car movements are not unusually high or low, so far, in 2022. Figure 1 displays these quarterly frequencies by railway. You will notice the proportion of cars loaded and billed by each railway firm remained relatively stable over the period analyzed, with BNSF and UP claiming approximately 70% of the total. Given railways exist in specific, generally immovable locations, if railroads that control a large portion of grain movements experience service disruptions, a correspondingly large portion of shippers and product delivery will be impacted since those routes cannot be easily shifted. 

One metric that can better reveal rail service disruptions and how fluidly grain cars are moving through the rail network is the number of unfilled grain car orders. Each railroad reports their definition of “unfilled order” slightly differently but generally it is the number of cars a shipper (such as a grain elevator) ordered but did not receive. For example, if a grain elevator ordered 10 cars from a railroad and received seven, that would leave three unfilled orders. Figure 2 displays the number of grain car orders in the first quarter from 2018 to 2022 that were one or more days overdue. Between the first quarter of 2021 and the first quarter of 2022, the number of these unfilled orders jumped from 93,000 to 137,000, a 47% increase. By percentage increase, NS saw the largest jump (1,614%) followed by CP (171%) and BNSF (134%). By numerical increase, BNSF reported the largest jump – nearly 50,000 unfilled orders – followed by CP with an additional 14,500 unfilled orders. Figure 3 displays orders that are 11 or more days overdue. You will notice more than half of the orders one or more days overdue were also 11 or more days overdue, revealing the severity of disruption for some shippers. Between the first quarter of 2021 and the first quarter of 2022, the number of 11+ overdue orders jumped 39,000, or 107%. By percentage and numerical increase, BNSF saw the largest jump — 606% or 42,000 unfilled orders — followed by CP with 394% and 11,000 unfilled orders.

This unfilled order metric could explain why increased demand is not discernable in the grain carload frequency (Figure 1) measurement. Since reported frequency includes only cars loaded and billed, orders that lay outside the railroads’ ability to effectively deliver will be reflected in the unfilled metric. Even still, grain cars loaded and billed for the first quarter of 2022 were lower than the same period last year. When grain shippers are unable to receive orders from railroads it disrupts agriculture markets throughout the broader supply chain. Flour and feed mills waiting on deliveries of grain that never arrive could be forced to temporarily cease operating and cut off sales to customers until deliveries return. This means livestock operations that are reliant on the feed shipped from these mills may be forced to ration or stop feeding until deliveries return, or find alterative feed options, stunting the production cycle and putting the health and wellbeing of livestock at risk. At a minimum, increases in unfilled orders would shift some shippers from the primary railcar market for service contracts into the secondary rail market to attempt to make up for delayed orders.

The primary rail market refers to when service contracts are first auctioned directly from railroads to shippers. Bids may be higher or lower depending on the demand for railcars but generally remain more in line with tariff rates published by the railway, which tend to reflect the most likely market conditions. For reference, average published per-car grain tariffs (including fuel surcharges) were $5,195 in the first quarter of 2021 and $5,378 in the first quarter of 2022, a 4% increase. This corresponds to an average $1.37 per bushel and $1.41 per bushel for the same periods, respectively. Railroads typically only change published rates once or twice per year and are required by law to give a 20-day notice prior to changing tariffs. This insulates buyers from short-term market changes resulting from unexpected events, like weather, or service disruptions. It does not, however, guarantee orders will be received because of these disruptions. In these cases, or in general cases when shippers who are looking to buy or sell a contract go directly to another shipper to receive or place bids, they are participating in the secondary rail market. Sales that occur in this secondary stage may either represent a premium or a discount to the underlying original tariff rate and are reported as a positive or negative value, respectively. When disruptions in rail service increase, shippers will likely look to the secondary market for another chance to get orders filled. Thus, high demand for cars in this market pushes rates up far above the original underlying tariff.

Figure 4 shows the average dollar amount per bid above or below the original primary market service contract value for the first quarter between 2018 and 2022. Comparing the weighted average data point (between BNSF and UP) for the first quarters of 2018-2021 to the first quarter of 2022 shows a near 500% increase in secondary railcar grain auction bids (from $102 to $602). The premium cost shippers are willing to pay in the secondary market helps illustrate the severe magnitude of demand for grain rail contracts so far in 2022.

Similarly, bids in the secondary market for shuttle service have escalated significantly in the past several weeks. USDA defines a shuttle train as having more than 75 cars that originate at a single origin and go to a single destination (for instance a grain elevator to rail yard). As shown in Figure 5, for the week ending March 24, bids/offers were over $2,500 higher than the prior three-year average for shuttle railcars to be delivered in April, an 11-fold increase. Both secondary market metrics signify how service disruptions in existing contracts force shippers to enter the secondary market and attempt to obtain different contracts to get orders delivered, albeit at a super-inflated rate.

Other metrics are also available to measure service quality on railways. Rail speeds, or the average speed of trains (in miles per hour), can shed light on the fluidity of a rail network. Overall, compared to the first quarter of 2021, train speeds in the first quarter of 2022 were down 5%. Considering train speeds of grain cars by railroad during the same timeframe, NS had a 20% drop in average train speed (over 3.5 mph), followed by KCS and CN, which both dropped 8%. Rail origin dwell times, the number of hours trains spend waiting after initial release at origin, have increased by 9% across railroads between the first quarter of 2021 and the first quarter of 2022. They are the highest for CSX (+73%), BNSF (+28%), UP (+26%) and NS (+20%). On the terminal dwell time side, increases at some of the busiest rail yards in the country are common. Figure 6 shows the top six rail yards in terms of average terminal dwell time and the total number of dwell hours in the first quarter of 2021 versus the first quarter of 2022, with their corresponding railroad carrier(s) listed in parenthesis.

Reasons for service and quality disruptions on railways can vary widely. Labor and crew availability remains a major hurdle across all segments of the transportation system and worker shortages within railways can lead to delays, held trains and general service disruptions. Weather and mechanical issues can slow or stop operations. Delays make it more difficult for orders to be filled down the line. Cars bound for future orders get tied up in the delay, forcing the railway to either figure out how to reduce congestion or add more railcars into service. Car inventory is an additional hurdle. If there are not enough cars to cover additional orders, delays will compound. Railroads may have made COVID-19-related decisions to liquidate assets, such as railcars, and are now left with gaps in their ability to fill orders. Intermodal containers, or shipping containers used across multiple modes of transportation like ocean barge to railway or truck, have been impacted by global market issues. A new round of COVID-related shutdowns across China has halted movement of around 10% of the global container-ship fleet and with it, a significant portion of containers. Containers held up oversees can limit order movement domestically and put pressure on other car and container types used by agricultural buyers. Manufacturing disruptions and delays for new locomotives and containers also shorten capacity to pick up additional orders. All of these factors heighten obstacles railway customers, like farmers and ranchers, face in marketing their products.

Conclusion

Railways are a vital piece of the supply chain and are usually a cost-effective and reliable way to get agricultural goods to their destination. Current rail service disruptions associated with labor shortages, railcar inventory and capacity, weather and shortfalls in other global transportation networks have contributed to a large increase in the number of unfilled orders faced by shippers. Unfilled and delayed orders mean a disruption in the general delivery of agricultural and other goods to buyers. For example, milling operations reliant on just-in-time delivery of grain from elevators are forced to halt operation, putting the essential flow of feed to livestock operations at risk. Shippers scrambling to find alternative methods to deliver their goods are seeing steep, multifold increases in the price to acquire service contracts in the secondary railcar market. Competing transportation options, like trucking, have their own slew of service shocks and remain a far costlier, often less efficient option.

Speaking of costs, farmers paying for storage in grain elevators that cannot move product may face added holding fees, contributing to even higher marketing expenses. In addition, service disruptions impact local basis for cash commodities that influence the price farmers receive for their crops. News of possible rail-related mergers or line closures also reveal concerns about the impacts of consolidation in the railway market and amplify questions of how competitive forces will be maintained. Altogether, a handicapped railway system puts the profitability of many farms, ranches and agribusinesses at risk and contributes to uncertainty in already unsettled commodity markets. Beyond creative solutions to immediately improve railway efficiency, long-term investments in on-farm and on-operation storage facilities may help hedge against transportation disruptions. In any case, improvements will need to be in place soon to prevent further disruptions in across the farm economy.

BNSF recently acknowledged that service is not where it needs to be and sharedspecific details of a service restoration plan already in process focused on crew and locomotive availability as well as car inventory management.

Source: FB

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