Area dairy farmers and manufacturers will have a better chance to tap into Canadian markets, Rep. Tom Reed, R-23, said last Wednesday as he reported the nation’s top trade official is working with Congress to uphold a recent ruling on trade violations.

Canada had reserved most of the in-quota quantity in its dairy tariff-rate quotas for the exclusive use of Canadian processors and for “future processors,” the panel found. A tariff-rate quota, the USTR’s office reported, sets a lower duty rate to “in-quota” quantities of imported milk products. By setting aside almost all of its quota for Canadian processors — rather than finished products from American processors — the panel found Canada violated the treaty by limiting competition from American processors such as Great Lakes Cheese in Cuba, Saputo in Friendship and HP Hood in Arkport.

U.S. exports to Canada totaled $78 million in the first 10 months of 2021, the USTR’s office reported in January during a statement on the dispute. Canada is the third-largest importer of American dairy products.

Reed said during the hearing that Canada has not taken steps to comply with the December ruling, and urged Tai to push the issue.

“What I see is an opportunity with this first case under the USMCA — to say ‘enough is enough’, that when we enter into trade agreements that it’s not just a piece of paper,” Reed said. “There are obligations that come with that agreement, and you can’t play games with it.

“I’m very disappointed in how they’ve handled dairy access,” Reed added, calling on the USTR’s office to continue on ensuring Canada allows fair competition in its dairy markets for the region’s manufacturers and dairy farmers.

“From a USTR perspective, we will not give up. We will continue to work with stakeholders,” Tai said, adding she hopes to continue working with Congress on enforcement.

According to the U.S. Department of Agriculture’s monthly milk production report for the Northeast, milk production in New York during February 2022 totaled 1.18 billion pounds. Farmers received an average of $24.70 per hundredweight — around 4.75 gallons of milk, according to the USDA — up $7.60 from January 2021. That adds up to about $29 billion for milk producers, not including the economic impact of cheese and other dairy product manufacturing across the state.

The state is roughly tied with cattle-heavy Texas for the fourth-largest producer of milk in the nation.

Source: fltimes.com

Ukraine dairy farmers are trying to keep their businesses afloat, but it is becoming nearly impossible to move milk because of the destruction of infrastructure in parts of Ukraine. Some dairy farms have been destroyed, while others struggle to keep farming. (Photo courtesy of eDairy News)

The Russian invasion in Ukraine has taken a toll on all aspects of agriculture there, including the dairy industry. In the regions where Russia has heavily invaded, some dairy farms have been destroyed, while others struggle to keep their operation going.

Ukrainian dairy farmer Nataliya Koval talked to eDairy News on March 21 about her determination to continue farming despite Russia invading Ukraine on Feb. 24.

According to eDairy News, “At the beginning of 2022, the Kovals were successfully running a 300-head Holstein dairy farm along with a mixed fodder production workshop, a cheese and dairy products facility, a school workshop for baking and cheese products, a farm store, a store in Kharkiv.” They also had online store they began late last year. The Kovals were milking their cows three times a day.

Things changed quickly.

“On Feb. 24, the milk truck did not take milk from us, because the bridge to get to the farm had been destroyed,” Koval said. “We had to throw the milk out, because the containers with chilled milk were already full, and the cows had to be milked.”

The war also closed the two processing plants where the Kovals delivered their milk. Their milk had to be dumped instead.

Their farm normally has about 40 employees who helped with fieldwork, as well as milking, cow health, feeding, cheesemaking and baking. Weeks after the war started, the dairy farm owned by Nataliya and her husband, Andriy, suddenly had to face utmost adversity and change its operation, she told eDairy News.

Now, they milk their cows twice a day for about 4 tons of milk daily. They give away their cows’ milk for free to anyone who needs it. Their on-farm facilities have been switched to baking bread to feed local Ukrainians running out of food because of the war.

Dairy Together, an organization focused on improving the livelihoods of dairy farmers, is pushing for a proposal called the Dairy Revitalization Plan that it says will better-regulate the production of milk and the need for expansion when it comes to dairy farming. Members of the group are hoping the proposal is included in the 2023 Farm Bill. Listen in as a Wisconsin Farm Bureau member and Wisconsin Farmers Union member give us the latest on the proposal.

Listen

Source: WPR

For American dairy farmers the price they get for milk and have to pay for other products tends to be controlled by events happening in the world, such as a global pandemic or a conflict in certain countries.

While this might make the price of milk increase, prices of other inputs that farmers need to buy to produce milk also increase, making farmers — including those in Chautauqua County — struggle.

Inflation is controlled by the market that it is part of, according to Camila Lage, dairy management specialist at Cornell Cooperative Extension. For milk, the price increases when there is a supply chain disruption.

“If you have something that is not necessarily available the price will increase,” Lage said. “The price of milk has become so high since the pandemic because of the supply chain being disrupted. It’s similar to the car industry, where there are less parts available so now the prices of those parts have increased. Now that the pandemic is starting to slow, there is an increase in the amount of people buying things. The market has not fully recovered to be able to meet the increase in demand.”

During the pandemic many farms had to sell some of their cows or shut down completely, reducing the supply of milk and leading to the current inflation.

Additionally, Lage said the ongoing conflict between Russia and Ukraine has caused another supply chain disruption, specifically in grain and fertilizer.

“For farmers, even though the price of milk has increased, so has the cost of everything needed to produce milk,” Lage said. “Even with the shrink on the milk supply and there not being the same amount of milk in the market, which has led to a 40% increase in the price, a good chunk of what the farmers are getting has been taken out because of the price of other things. They’re being paid more but not necessarily getting more. The market is very unstable.”

Locally, this unstable market has caused struggles for some dairy farmers.

Paul Starceski of Sherman noted that while the price is better than before, farmers can hardly tell.

“We are getting a significantly better price right now than we have for a while,” Starceski said. “This is being offset by the price we have to pay for grain and crops, so we’re not feeling it. The price of fuel is almost double and so is the price of urea. It’s putting a squeeze on us.”

For Ben Nickerson, also of Sherman, the increase in milk prices is a relief, even with the additional struggles.

“We have had quite a few years of low milk prices where we’ve seen a lot of farms struggling,” Nickerson said. “It’s really been an uphill battle and the last couple of years, with the pandemic, things have been impacted even further. It is a welcome relief on our farm, where we milk around 850, that we’re seeing an upward trend with milk prices right now. With costs of things like fuel, fertilizer and grains soaring now as well, it’s really just enough for most of us to keep things moving along without falling further behind.”

Nickerson called for an update on how milk is priced in the market.

“Milk pricing as a whole needs a complete overhaul for the volatility we tend to cycle through to come to an end,”Nickerson said. “Farmers don’t get to set the price we sell our products at, so we need to be able to count on a system that works more fairly and effectively when things happen around the world that impact the industry as a whole, like we are seeing now.”

And while the struggle continues, Lage said dairy farmers should take this time to look at their finances and know their numbers.

“Producers should know the amounts they are paying and receiving,” Lage said. “Be mindful of your expenses. You can take the time to negotiate a good contract on the feed side and to find ways to be more efficient with the money you have to spend on inputs. Talk to your financial advisors.”

Also, Lage added that farmers are allowed to be excited about the high price of milk, but cautious as well because the market can and does change quickly, and that they should focus on their own operations and not necessarily the situations of the world.

“Farmers should always try to be more efficient,” Lage said. “Make the best out of your operation and don’t depend on situations that are happening outside of your own farm. You cannot manage what you don’t measure. Independent on milk prices, farmers should focus on what they can control to achieve optimal performance and efficiency and guarantee a good margin on their milk prices.”

Source: post-journal.com

Milk production in the USA was below a year ago for the fourth month in a row in February. That was expected but no need to worry about a milk shortage like consumers were over toilet paper not so long ago. 

The Agriculture Department’s preliminary data shows output at 17.5 billion pounds, down 1.0% from Feb. 2021, and follows the 1.7% drop in January. Output in the top 24 producing states totaled 16.7 billion pounds, down 0.7%. Revisions lowered the original 50-State January estimate by 20 million pounds to 19.0 billion, 1.7% below that of a year ago.

February cow numbers totaled 9.37 million, up 3,000 from January, first increase in eight months, but were down 96,000 from a year ago. The January count was revised 1,000 head lower.

Output per cow averaged 1,869 pounds, up 1 pound from 2021. January output per cow was revised down 2 pounds to 2,032 pounds.

California production totaled 3.3 billion pounds, down 6 million pounds or 0.2% from a year ago, thanks to a 5 pound drop per cow. Cow numbers were up 1,000. Wisconsin output totaled 2.4 billion pounds, up 17 million or 0.7%. Cow numbers were up 9,000 and output per cow was unchanged from a year ago.

Idaho was unchanged in cow numbers, output per cow, and total production. Michigan was down 2.9% on 13,000 fewer cows, though output per cow was unchanged. Minnesota was down 3.2% on a 25 pound drop per cow and 8,000 fewer cows. New Mexico produced 86 million pounds or 13.1% less milk in February on a drop of 44,000 cows, although output per cow was unchanged.  

New York was off 0.8% on 6,000 fewer cows though output per cow was up 5 pounds. Oregon was down 0.5% on a 5 pound drop per cow. Cow numbers were unchanged. Pennsylvania was down 0.9%, on 7,000 fewer cows, though output per cow was up 10 pounds. South Dakota continues to put lots of milk in the tank, up 18.3%, thanks to 27,000 more cows far offsetting a 10 pound drop per cow. Texas was up 4.3% on 15,000 more cows and a 35 pound gain per cow. 

Vermont was off 0.5% on 1,000 fewer cows, though output per cow was unchanged. Washington State was down 4.7% on a loss of 15,000 cows, though output per cow was up 15 pounds.

Hopefully, the milk supply remains in check and supports prices. Rising feed and fuel prices will likely act as a governor to milk output however rising fuel and food prices for families could threaten dairy product demand. 

Global milk output is not rising either. StoneX Mar. 21 Early Morning Update pointed out that February New Zealand milk output was down 7.2% from last year. The forecast for the full season is down 4.4%, “but there’s still room for it to come in lower than forecast, according to StoneX.

Meanwhile, China’s latest import data from January and February showed that “Combined volumes were down against the record start to 2021,” says HighGround Dairy, “as weaker demand needs for whey, lower availability of skim milk powder and other finished goods counterbalance the strong import volumes for whole milk powder.” 

Whole milk powder imports were up in both January and February, according to HGD’s Lucas Fuess in the March 28 Dairy Radio Now broadcast. They totaled 157.1 million pounds in February, up 40.3% from February 2021, as the country looked anywhere it could around the globe for product, while skim milk powder totaled just 62.4 million pounds, up only 5.2%. Fuess blamed the lack of product availability rather than a downturn in Chinese demand for skim milk powder.

The largest drop was in the whey category, according to HGD, with extensive losses to the U.S. and Europe. February imports were the weakest since June 2019, but Fuess said the recovery in China’s hog herd from African Swine Fever likely led to the decrease in whey needs.

Milk availability is tight in New Zealand, Fuess concluded, a major supplier of dairy to China, which had caused them to look to other sources such as Australia, the EU, and the U.S.

Fat imports were solid with the bulk of the volume from New Zealand, says HGD. “Demand for butter and anhydrous milkfat in recent months has been observed on Global Dairy Trade events as the North Asia region increased fat purchases in 2022. The countries seeing the largest drops were Poland and the U.S. 

China, for the past few years, has released its January and February data together in March as retaliation of President Trump’s tariffs.

Faced with balancing what would be considered profitable milk prices against profit robbing feed and fuel prices, U.S. dairy farmers keep weeding out less profitable cows. Culling was up slightly from January and a tad above a year ago. 

USDA’s latest Livestock Slaughter report shows an estimated 266,500 head were sent to slaughter under federal inspection in February, up 5,700 from January, but 1,300 head or 0.5% below Feb. 2021. 

Culling in the first two months of 2022 totaled 527,400 head, down 15,100 or 2.8% from the same period a year ago.

In the week ending March 12, 65,000 dairy cows were sent to slaughter, down 2,500 from the previous week, and 3,800 head or 5.5% below a year ago.

Checking the cupboards; U.S. butter stocks continued to build in February but remained well below a year ago. The Agriculture Department’s latest Cold Storage report shows the February 28 inventory at 263.0 million pounds, up a hefty 43.6 million pounds or 19.9% from the January level which was revised down 1.9 million pounds. Stocks were a whopping 91.6 million pounds or 25.8% below a year ago however, the fifth consecutive month to fall short of the previous year. 

American type cheese totaled 833.5 million pounds, down 4.1 million pounds or 0.5% from the January level, which was revised down 1.2 million pounds, but topped those of a year ago by 16.3 million pounds or 2%. 

The “other” cheese category climbed to 610.7 million pounds, up 26.7 million or 4.6% from January, and 13.3 million pounds or 2.2% above a year ago.

The total cheese inventory stood at 1.469 billion pounds, up 24.2 million or 1.7% from January, setting another all-time high for total stocks, and were 33.1 million pounds or 2.3% above a year ago. The report is viewed as slightly bearish.

The Agriculture Department announced the April Federal order Class I base milk price at $24.38 per hundredweight, up $1.50 from March and $8.87 above April 2021. It is the highest Class I price ever, topping the previous high of $24.47 in May 2014, and equates to $2.10 per gallon, up from $1.33 a year ago. The four month average stands at $22.15, up from $15.35 in 2021, and $17.67 in 2020.

After falling 6 cents the previous week, Cheddar block cheese shot up to $2.2750 per pound Friday, up 14.50 cents on the week, highest since Nov. 10, 2020, and 55.50 cents above a year ago. The barrels closed at $2.25, up 22 cents, highest since Nov. 6, 2020, and 78.75 cents above a year ago. There were 8 sales of block on the week at the CME and 27 of barrel.

StoneX warns that worries about high labor, feed, and energy costs posed more of an impact on market participants than the stall in milk production decline or the stall in international demand for products that have been driving export volume.

The March 23 Early Morning Update says “The grain complex continues to rip higher as the war continues to rage unchecked in Ukraine. Private analysts UKRAgroConsult just released new estimates and expect Ukrainian corn plantings to drop 29% year over year. They also expect all of their other crops to drop significantly as well. Informa released U.S. estimates Tuesday and dropped corn plantings to 91.4 millimeter acres, down from 93.4 last year.” 

Cheddar interests are reportedly very strong right now, according to Dairy Market News. Contacts say buyers were hesitant about market price increases as they hovered around $2, but “that hesitancy may have morphed into urgency as customers’ pipelines ran short and market prices continued northbound.” Spot milk is available for most needs with some reports of an early flush.

Looking westward; cheese export demand remains strong with continuing notable demand from Asian buyers. Domestic demand remains steady to higher as warmer weather and loosening COVID restrictions result in higher food service purchasing. Cheese inventories are tightening. Deliveries continue to face delays due to port congestion and a shortage of truck drivers. Western cheesemakers are busy working through available milk supplies but labor shortages and delayed deliveries of supplies continue to prevent full capacity.

The butter marched to $2.8025 per pound Wednesday, highest since Feb. 15, but was offered lower Friday, slipping to $2.7950, 7 cents higher on the week and $1.02 above a year ago. There were 7 carloads that exchanged hands. 

Butter producers able to source cream from the West are still finding relative pricing deals, says DMN, while more who take on locally sourced cream are seeing upticks on multiples. Churning is somewhat busy as spring holidays approach, though some producers say demand is a little lighter than expected this close to the onset of spring and the upcoming holidays. Bullish market prices based on limited supplies, both now and down the line, have created hesitancy among retail buyers. Food service demand, though, is mostly steady, says DMN.

Demand for cream continues to pick up in the West as ice cream makers increase output. Cream is available but tightening as some butter makers use their cream internally rather than sell on the spot market. Butter makers are running busy schedules, though labor shortages continue to prevent full capacity. Food service butter demand is steady to higher and retail is strengthening as customers prepare for the spring holidays. Export demand for butter is steady. Butter makers are working to build inventories in the region, limiting availability. 

Grade A nonfat dry milk climbed to $1.88 Thursday, highest since Feb. 16, but closed Friday at $1.8525, down 0.75 cents on the week, though 68.25 cents above a year ago. There were 24 sales reported on the week.

Dry whey finished at 72 cents per pound, down 4 cents on the week and the lowest since Dec. 16, 2021, but 9.25 cents above a year ago. 3 cars were sold.

Checking the demand side of things; the March 18 ‘Dairy and Food Market Analyst’ reports “Total sales at foodservice and drinking places were up 24% year over year in January and up an estimated 33% in February. Compared to before the pandemic (2020), sales grew by 7.0% in February. Limited-service sales (cheese-friendly) continue to out-perform relative to before the pandemic and were up 15% versus the 2020 level, according to Census Bureau data.”

By the way; the DFMA also pointed out that the numbers of ships waiting to be unloaded at West Coast ports is near the lowest level in several months. The average wait time for ships to berth has shrunk to just 11 days after peaking at more than two weeks during December.

That port congestion prompted action by lawmakers and one such move was passage by the Senate Commerce Committee of the Ocean Shipping Reform Act (OSRA). The legislation garnered praise from the National Milk Producers Federation and the U.S. Dairy Export Council, stating in a joint press release that “The approval establishes Senate committee support for action to address shipping supply chain challenges as Congress prepares to commence conference procedures on the Senate-passed U.S. Innovation & Competition Act and the House-passed America Creating Opportunities for Manufacturing, Pre-Eminence in Technology, and Economic Strength (COMPETES) Act. The House COMPETES Act includes the House-passed version of OSRA.”

“Today’s action by the Senate Commerce Committee brings the Ocean Shipping Reform Act one step closer to passage,” said NMPF’s Jim Mulhern. “Export supply chain issues continue to pose immense challenges to dairy exporters, which is why this legislation remains so critical as part of a broad-based approach to tackling those problems.” The measure also got a thumbs up from the International Dairy Foods Association. Next step is a vote by the full Senate. 

The IDFA gave a thumbs down however to the Food and Drug Administration’s response to its objections and request for a hearing on the final rule to amend and modernize the standard of identity for yogurt released in June 2021.

IDFA President Michael Dykes stated; “Yogurt makers have been waiting 40 years for the FDA to update and modernize the yogurt standard of identity. Today, the FDA issued a notice telling us to keep waiting and threw in a whole lot of uncertainty, to boot.” 

“Last July, IDFA forcefully objected to the FDA’s final rule to amend and modernize the standard of identity for yogurt released in June. In December. IDFA sent a letter to Dr. Woodcock, Acting Commissioner for FDA, reiterating our request for a hearing with FDA to resolve the industry’s objections, along with providing manufacturers sufficient time for compliance. Today, after eight months of waiting, FDA issued a notice staying certain provisions of the yogurt standard of identity final rule. IDFA was able to leverage unique formal rulemaking procedures available to the dairy industry to object and, ultimately, prompt a stay of certain provisions that are detrimental to our industry. Without this lever, an impractical final rule would have gone into effect, damaging yogurt makers, throwing retail establishments into confusion, and limiting choice for consumers. While a stay is helpful at this stage, IDFA’s efforts to reform the yogurt SOI will continue into an inexplicable fifth decade.”

Source: farmersadvance.com

There’s a rhythm that develops as Brian Gronski moves from house to house delivering milk in glass bottles.

He scans the order before hopping in the back of the Farmer’s Best Home Delivery truck to find the bottles and other foods customers ordered.

With the assembled items in hands, he steps off the truck and heads toward the house to deliver the order.

“A lot of our customers still get it delivered to an old-fashioned milk box,” said Gronski, who owns Farmer’s Best Home Delivery with his wife Teri. “A lot of them get it to their coolers… or inside their garage to a refrigerator.”

Home milk delivery was once common, but in 2022, it’s unique.

“The difference is that 50 years ago the milk man delivered to 100 houses and he had maybe a six-mile route,” Gronski said while driving between stops in De Pere and Ledgeview near Green Bay. “Today, we’ll deliver to 80 customers and it will be a 120 mile route.”

Farmer’s Best’s core delivery area is in Green Bay, the Fox Valley and Manitowoc.

In addition to milk from Lamers Dairy in Appleton, Farmer’s Best also offers a range of locally produced and sustainable foods for delivery.

Customer April Malo said part of the appeal of working with Farmer’s Best is the relationship with the drivers and the focus on sustainable foods.

“It’s person to person, basically the closest to farm to table,” she said. “We’re pretty sustainable and eat from our backyard most of the summer and fall here and this is the closest thing I can get to for dairy for that.”

Gronski said the foods are a key part of sustaining the dairy delivery.

“You can’t do the business like you once did it because it still costs money for every mile you travel, every hour you spend on the road,” he said. “To deliver two, or four, or six bottles of milk alone without the other products that we offer would be very difficult to sustain.”

Gronski said the business is about more than just work, it’s about helping his customers — who he knows by name — and offering small farmers another outlet for their products.

“There’s no need to transport food thousands of miles when we live in one of the most productive agricultural states in the nation,” he said.

Source: spectrumnews1.com

The National Milk Producers Federation and the U.S. Dairy Export Council expressed appreciation for robust Congressional support on ensuring Canada fully honors its U.S.-Mexico-Canada dairy market access commitments. Several leading members of the U.S. House of Representatives sent a bipartisan letter to U.S. Trade Representative Katherine Tai and U.S. Secretary of Agriculture Tom Vilsack calling on the administration to reject Canada’s recent dairy proposals and insist on real reform.

Last month, Canada proposed inconsequential changes to its dairy tariff-rate quota (TRQ) allocations after a USMCA dispute panel found in January that Canada’s existing rules do not meet USMCA requirements. Led by Reps. Ron Kind (D-WI), Tom Reed (R-NY), Antonio Delgado (D-NY), Glenn Thompson (R-PA), Suzan DelBene (D-WA), Dusty Johnson (R-SD), Jim Costa (D-CA), and David Valadao (R-CA), the letter argues that Canada must bring its dairy TRQs into alignment with its USMCA commitments, which would further open Canada’s market to U.S. dairy products.

Representative Elise Stefanik (R-NY) has sent a similar letter pointing out that Canada’s USMCA dairy TRQ proposal is insufficient to deliver on USMCA’s promise for dairy exporters on March 4.

Last year’s return to in-person promotional events was a welcome return to normalcy for Michiganders. For United Dairy Industry of Michigan (UDIM), it also meant launching creative efforts combining the lessons learned from virtual connections with big, new ideas to reach consumers and future consumers of dairy foods.

“UDIM continues to fine-tune efforts to meet dairy consumers where they live and in ways they prefer to connect,” says Corby Werth, UDIM President. “We’ve adapted our promotion of farming practices and dairy foods using social media and digital platforms, digging deeper into virtual connections, especially with future milk drinkers.”

Dairy farmers and industry leaders met earlier this month to share highlights from 2021 dairy promotion activities on state, local and national levels. This meeting marked the Dairy Council of Michigan’s 93rd Annual Meeting and the American Dairy Association of Michigan’s 79th Annual Meeting.

Here are a few ways dairy farmers’ checkoff investments work on behalf of Michigan farm families to strengthen consumer trust in farms and dairy foods.

Record-setting dairy exports

2021 was the most successful year in the history of U.S. dairy exports, with records set for both value and volume. Year-end export data showed total sales rose 18% over the previous year to a record $7.75 billion. Export volume climbed 10% higher, a significant accomplishment considering 2020 also was a record-setting year.

“The world needs your dairy products, and you need the world,” Krysta Harden, President and CEO, U.S. Dairy Export Council (USDEC), noted in her keynote address. “I’m excited about the future of dairy exports.”

She cites booming cheese demand, growing global demand for animal proteins and lowered milk production from key competitors as prime growth opportunities. “I am optimistic we will continue to make progress in these areas, and we look for persistent growth in Mexico, the Americas and Southeast Asia,” she says. “We need to listen to our customers, be adaptive with our products and continue to seek market diversification. Exports can be and should be part of our strong future.”

Reaching consumers

Closer to home, UDIM partners offered insights into dairy promotion activities.

• Dairy influencers Kip Siegler, Stef Turner, Alycia Burch and Glenn Packard are diverse in background and target audience. Still, all are passionate about dairy and emphasize the importance of being authentic when connecting on social media. All say dairy farmers and others who engage on behalf of dairy must “be real and be yourself” if you want consumers and potential consumers to listen to your message.
• Metrics shared by Detroit Pistons corporate leadership Brenden Mallette and Elizabeth Zouzal demonstrate the effectiveness of pairing UDIM’s dairy messaging with sports promotions to “leverage the Piston’s megaphone to reach more people.” Combining social media, in-arena messaging, player spokesperson Saddiq Bey and community events are exponentially amplifying Milk Means More and ‘You’re Gonna Need Milk for That’ brand awareness to key generational and diverse audiences.

Leadership transition

Passing her leadership torch, outgoing UDIM CEO Sharon Toth shared how far dairy promotion advanced over her 30-year career.

From simply talking about calcium for bone health to promoting dairy’s wellness in ways and on platforms that weren’t even imagined three decades ago, dairy communications have significantly changed. “By trying new things, communicating in diverse ways and collaborating with partners, we’ve brought more dairy to more people to make their lives better,” she says.

Look for incoming UDIM CEO Dwyer Williams to “create a culture of curiosity and entrepreneurial spirit” among the checkoff team, partners and Michigan farmers. “Good ideas come from anywhere,” she says. “I’m excited to collaborate with our farmer founders, as well as incorporating ideas from national, regional and other state programs to the benefit of Michigan dairy farmers.”

To learn more about UDIM’s efforts to build sales and grow trust in dairy foods, visit www.milkmeansmore.org or call the office at 517-349-8923.

About the United Dairy Industry of Michigan

The United Dairy Industry of Michigan (UDIM) is dedicated to serving Michigan’s hard-working dairy farm families and promoting Michigan’s locally produced dairy products. UDIM is the umbrella organization for the American Dairy Association and Dairy Council of Michigan. These non-profit organizations provide dairy product promotion and nutrition education services on behalf of their funding members.

A major rule change was rolled out this week for the rapidly growing organic dairy industry in the United States.

The USDA Origin of Livestock rule announced this week puts a premium on cows used to produce organic milk. Those cows likely become the “few and the proud” as cows under conventional care will only once be able to transition to organic care.

Dairy cows under conventional care usually are exposed to antibiotics and less expensive, non-organic feeds.

Under the new rule,  a one-time transition to organic care is permitted, but no switching back and forth. And only until the animal is 1-year-old could the transition occur.  That ends the practice of cows being under conventional care until they are older and then being switch to organic.

“The new rule closes the loopholes that have given some operations an unfair advantage,” said Ed Maltby, executive director of the Northeast Organic Dairy Producers Alliance.  “The rule is meaningful and essential to protect the livelihoods of family-scale organic dairy producers.”

The global market value of organic dairy products was $20 billion in 2020, according to Statista Research, and in the same year, the organic food market in the U.S. topped $56 billion.

Steve Pierson, farmer-member and president of Organic Valley, says the “origin of livestock” issue has created a lack of consistency for the past 20 years.  He says USDA’s new rule is consistent with public comments supporting a narrowing of permissible organic transitional options.

The USDA published the new Origin of Livestock rule for organic dairy on March 29.  The department said changing the organic regulations will result in a  fairer and more competitive market for all organic dairy producers because products will be produced to the same consistent standards.

“This action demonstrates the USDA’s strong commitment to America’s organic dairy farmers,” said Secretary of Agriculture Tom Vilsack. “The Origin of Livestock final rule provides clean and uniform standards about how and when livestock may be transitioned to organic dairy production, and how transitioned animals are managed within the organic dairy system.”

Vilsack said all organic producers will now have confidence and certainly that they are operating in a fair and competitive market.

Under the final rule, organic milk must be produced by cows that have been managed as organic since before birth with the one-time exception for the transition to organic from conventional. The rule to close the transition loopholes was first proposed in 2015.  The National Organic Coalition has supported the change from the beginning.

Source:foodsafetynews.com

After years of lobbying by organic farmers, the Agriculture Department tightened its rules on how dairy animals — cattle, goats, and sheep — enter organic production, in the name of fairness to farmers and consumers. The new “origin of livestock” rule would end the practice of cycling dairy animals between organic production and feeding on lower-cost, non-organic rations.

“Now, all organic livestock producers will have the confidence and certainty they are operating in a fair and competitive marketplace,” said Agriculture Secretary Tom Vilsack. Jennifer Moffitt, agriculture undersecretary for marketing, said the new rule would assure consumers that products carrying the USDA Certified Organic seal “meet their expectations for how organic products are produced.”

Under the new rule, which becomes effective one year after appearing in the Federal Register, milk and dairy products must come from animals that were organically managed from the last third of gestation onward, with a one-time exemption allowed for new organic farms to transition non-organic livestock over a 12-month period to organic production. Otherwise, farms only can raise or purchase organic livestock. They cannot transition other stock to organic production or buy animals that have been transitioned.

“This is a win for organic dairy producers and all those who care about the integrity of the organic program,” said Ed Maltby, executive director of the Northeast Organic Dairy Producers Alliance. “The new rule closes the loopholes that have given some operations an unfair advantage.”

Farmers complained of inconsistent enforcement of organic livestock regulations in the past. Some dairies were allowed routinely to transition non-organic animals into their operations rather than raise their own replacement animals. Some would also take organic animals out of a herd, raise them on conventional feed, and then transition them back into organic output, said critics. These cost-saving measures gave these companies a competitive advantage over those farmers who were committed to raising animals organically.

The USDA proposed an Origin of Livestock rule in 2015. It was withdrawn by the Trump administration and revived last May by the Biden administration.

Moffitt announced completion of work on the new rule during a House Agriculture subcommittee hearing. “I look forward to implementing that,” she said. Rep. Chellie Pingree of Maine said the new rule “is going to make a huge difference” and Rep. Kim Schrier of Washington state said, “My organic farmers will just be thrilled to hear this.”

“This Origin of Livestock rulemaking levels the playing field by ensuring consistency in how farms source and transition dairy cows to organic production,” said Organic Valley, a farmer-owned dairy cooperative.

The U.S. organic dairy market generated $6.6 billion in revenue in 2019, making it the second-largest organic food category after fruits and vegetables, said Statista. “The vast majority of organic dairy sales are attributed to milk, followed by yogurt and butter.” In 2020, organic milk sales totaled 2.88 billion pounds, it said, while combined organic and conventional milk sales were 46.2 billion pounds.

To read the text of the rule, click here.

A USDA fact sheet on the rule is available here.

Source: agriculture.com

Chasing a dream . . . New Zealand Dairy Industry Awards Canterbury/North Otago share farmer of the year finalists Roley and Yranee Monoy. PHOTOS: SUPPLIED

Roley and Yranee Monoy keep reaping the rewards of their hard work.

The couple, who moved to New Zealand in 2008, were among the first Filipino workers to arrive in the Waitaki district when the dairy industry was undergoing significant growth.

In their 30s, and with two young children, they saw an opportunity to chase a dream, and

Mr Monoy accepted a job as the assistant herd manager on a 1200-cow dairy farm in Corriedale. As well as caring for their children, aged 2 and 4 at the time, Mrs Monoy helped on the farm, and worked nights at New World packing shelves.

Two years later, the couple received residency — and started thinking about how they could work their way up in the dairy industry.

They made the move to Papakaio, where Mr Monoy rose to second-in-charge at DK Farms, and Mrs Monoy also worked on the farm full›time.

They were well supported by their employers, Doug and Kirsti Rogers, and loved the Papakaio area, where their children settled in to school well.

But after three years with the Rogers, they were ready to progress their career again — and started looking for farm management positions.

‘‘Doug Rogers, who might be one of the nicest people around to work for, I could have stayed with him for years,’’ Mr Monoy said.

‘‘But . . .there was just a part of me that always wanted to move up.’’

One of Mrs Monoy’s close friends, Barbara Richardson, suggested they also consider applying for contract milker positions. Her advice, and belief in the couple, was pivotal for them, and they received an offer from Dairy Holdings to take on a 420-cow farm nearby in Papakaio.

‘‘We got the contract milking job without actually having any experience farm managing,’’ Mr Monoy said.

Two years later, Dairy Holdings offered them the opportunity to take on a bigger, 920›cow dairy farm, Awanui, also in Papakaio.

They went from employing one staff member, to three full› time staff, and taking on another three part›timers during calving. They started at Awanui milking 920 cows , and they now have 1050, and hope to grow to 1200 in the coming season.

Before moving to New Zealand, Mr Monoy, who has a bachelor’s degree in agriculture, majoring in animal science, spent 10 years working in the poultry industry.

Mrs Monoy worked as an insurance underwriter in the Philippines, but she came from a farming family and was used to the lifestyle. At present, she is studying agri-business management, working as a quality control inspector at Alliance Pukerui and taking care of the administration side of their farming business.

The couple, who were high school sweethearts, loved working for Dairy Holdings, appreciating the company’s support network and investment in people, and said there was much to enjoy about their job.

It was hard work at times, but they appreciated the flexibility it gave them, as they both valued family time. Their daughter, Leyanne (17), is in her first year at Otago University, studying health science, and son Drewbert (15) is in year 11 at St Kevin’s College.

Running their own farming business, Woodland Acres, had been a learning curve — but they enjoyed the challenge. This coming season, they would own just over half of the herd.

In three years, their goal was to be 50:50 sharemilkers, owning the entire herd.

The couple entered the New Zealand Dairy Industry Awards this year as an opportunity to compare their farming operation with others’, and get feedback from industry experts. They were surprised to be named as finalist in the Canterbury and North Otago region.

While they did not win share farmer of the year at Tuesday night’s award ceremony, they said it had been a great experience.

‘‘It gives us more confidence now to go on with our business, that we are on the right track,’’ she said.

They wanted to inspire other Filipino dairy farm workers to chase their dreams in the dairy industry, and hoped to see more becoming business owners.

Source: oamarumail.co.nz

Dairy farmers have struggled for years with fluctuations in milk prices.

“Dairy farmers have been struggling mightily with consistent low prices, and then when we get a little bit of an up-swing, it seems like it comes right back down,” said Sarah Lloyd, a dairy farmer in Columbia County.

That’s why several farmers came together to form the “Dairy Together” movement.

It’s not just any group. It’s made up of members from both the Wisconsin Farmers Union and the Wisconsin Farm Bureau, two organizations that have had historically opposing viewpoints when it comes to policy.

“Philosophically, the dairy industry should be interested in managing our supply,” said Hans Breitenmoser, a dairy farmer in Lincoln County. “I feel like that should be our responsibility.”

Dairy Together is hoping to approach that issue not by limiting milk production, but by controlling the growth of individual farms.

Under their plan, farmers would have the same level of allowable growth each year, and would have to pay a fee if they wanted to expand beyond that. When the demand for milk is high, those fees are low, but if the demand is low, those fees increase.

“You can expand, you can grow… but you will need to think about the other farmers in this situation,” Lloyd said.

Breitenmoser says this coudl be a good way to keep independent family farms afloat even in uncertain times.

“I think the strategy of managing growth makes sense so that we can meet demand rather than so often exceed demand,” he said.

The Dairy Together movement is hoping to lobby congress in order to get their plan into the 2023 federal farm bill.

Source: wxow.com

Fonterra’s principal scientist Shalome Bassett displays the company’s new piece of equipment, a genome sequencing device.

It’s only 10 and a half centimetres high and just over three centimetres wide, but Fonterra’s latest piece of equipment for adding value to farmers’ milk is making a difference.

The piece of equipment is called a MinION and Fonterra’s principal scientist, Shalome Bassett, said it’s already playing a key part in Fonterra’s choices to focus on New Zealand milk, be a leader in sustainability and to lead in innovation and science.

“The MinION is a genome sequencing device that can spit out DNA results from bacteria at a fast pace and a quarter of the cost,” she said.

“It is giving us a real step up in our Kowbucha project, which is looking to use probiotics as a natural way to reduce the methane produced by cows and lower New Zealand’s carbon emissions. Until recently, we had to send DNA from potential probiotic strains overseas for sequencing.”

This could usually take weeks or months, but the new technology allowed them to do it hours in New Zealand.

“It means we’ll be able to unlock the secrets of more dairy cultures for Kowbucha, selected from our collection of 40,000 dairy cultures stored at our Research and Development Centre in Palmerston North.

“Whole Genome Sequencing can provide amazing amounts of information and we recently sequenced more than 500 cultures, which generated 1.4 terabytes of data, or the equivalent of 50 million A4 pages worth of text.

“As far as we know we are the only dairy company in the world which manufactures our own starter cultures that we use in our factories to create everyone’s favourite dairy products, like yoghurt and cheese.”

In New Zealand the company was the only commercial manufacturer of probiotic strains, which have been shown to help people improve their mental and physical health and wellbeing, she said.

Fonterra has been working on genome sequencing with The Institute of Environmental Science and Research and Massey University, and have also received funding from the Ministry for Business, Innovation and Employment.

“Along with our research partners, we wanted to develop this genome sequencing capability in New Zealand for use by other New Zealand food companies.

“This would provide everyone with greater food safety and quality assurance and protection of New Zealand’s reputation, as well as better health.”

Source: stuff.co.nz

Dairy farmers are feeling the pain of inflation. Rising costs are making it harder to grow feed for cows, and ship the milk to the grocery store.

Sam Reed, the Chief Operating Officer for Reed’s Dairy in Idaho Falls, says their costs for producing a gallon of milk are going up.

“I think feed prices are going to be really high just to fueling those tractors it’s not cheap,” Reed said. “They take a lot of fuel and the fertilizer that that goes in. I see feed prices going to be really high, which in turn makes the costs produce a gallon of milk just going to be that much higher.”

Reed says everyone in their dairy is doing what they can to keep their costs down, but it’s a process.

“Every day I get a call or an email or a letter in the mail of, ‘Hey, sorry to do this, but we’re raising your prices again and we’re raising your prices again’,” Reed said. “We try to eat as much of that as possible, but eventually you just kind of got to pass it along, which is not good for the end consumer.”

According to the National Family Farm Coalition on average when we buy a gallon of Milk only about $1.45 gets back to them. With the inflation in the industry in the past year making prices go up 5% in the past year.

Reed’s dairy current sells a gallon of milk for $5. “A large reason for the price has to do with the rising fuel prices to get the raw products to be processed Reed says. “As the price of fuel goes up, the cost to get those products to us, those raw materials, the sugar in the bottles is a big one for us.”

If you are interested in helping your local dairy farmers Reed says “Buy local, that’s the biggest thing. I think that helps our community. Supporting the local companies, local potato farmers, your local dairymen, your local grocery stores. I think that’s probably the best thing we can do is, you know, at least keep the money in in our own communities here.”

Source: localnews8.com

Taco Bell restaurants nationwide have rolled out a dairy-based coffee creamer and a new coffee drink with support from dairy checkoff food scientists.

The vanilla creamer replaces a non-dairy product and will become a permanent offering at more than 7,500 Taco Bell locations in the United States. The shelf-stable creamer also was used in the checkoff-created Pineapple Whip Freeze and Island Berry Freeze beverages that previously appeared on Taco Bell’s menu.

Taco Bell consumers who order 12-ounce hot or 20-ounce iced coffee drinks have the option of adding the creamer. The Dairy Management Inc. (DMI) product research team worked with the checkoff-funded Midwest Dairy Center at the University of Minnesota to create the creamer in 2020.

The creamer also is featured in the Cinnabon Delights® Coffee, which is available at participating U.S. locations for a limited time. DMI dairy scientist Kimber Lew led the creation workstream and said it demonstrates the chain’s desire to grow its breakfast business.

“We’re really excited for this because we are putting a lot of emphasis into getting consumers to think more about starting their mornings at Taco Bell,” Lew said. “Creating a coffee that has dairy and the iconic, crave-able Cinnabon Delights® flavor was a no-brainer.”

Lew said the creamer and Cinnabon Delights® Coffee are further proof of Taco Bell’s openness to menu innovations featuring dairy.

“This demonstrates how Taco Bell is leaning in on dairy in multiple avenues,” Lew said. “It’s not just about cheese and reduced-fat sour cream use; it’s about exploring other ways to elevate the consumer experience with the deliciousness of dairy. This shows the strength of our partnership.”

Heather Mottershaw, vice president of pipeline innovation and product development for Taco Bell, said these additions greatly enhance the chain’s breakfast menu.

“These fit very well with our strategy of growing our breakfast business and offering a premium coffee drink and creamer made from dairy,” Mottershaw said. “We are very grateful for the checkoff’s continued support to lead the way with dairy innovation that resonates very well with our consumers.”

For information about the dairy checkoff, visit www.usdairy.com.

New Data from USDA’s Economic Research Service shows total dairy exports from the United States to Canada, adjusted for inflation, rose 48 percent from $466.4 million in 2010 to $691.5 million in 2021.

Canada is an important market for U.S. dairy products, second only to Mexico. Canada’s proximity to the United States favors imports such as fluid milk, cheese, and infant formula, among others. Supplemental imports of fluid milk, butter, and butterfat in addition to cheese and cream from the United States often meet the shortfall in Canada’s production. By value, infant formula has been the top U.S. dairy product exported to Canada, accounting for $151.3 million in 2021 and representing 22 percent of the total.

Coming in second, the combined export value of fluid milk, cream, and milk-based drinks reached $128.5 million in 2021—an inflation-adjusted increase of $85.2 million from 2010. U.S. exports of cheese to Canada have grown by 12 percent to $68.1 million in 2021.

Source: newsdakota.com

Wisconsin taxpayers will pay $883,000 for a new agricultural exports program to promote dairy products.

The tab results from a bill signed by Gov. Tony Evers on Tuesday, which was National Agriculture Day.

Wisconsin Act 207 (Senate Bill 827) requires the Department of Agriculture, Trade, and Consumer Protection to apply the existing, unused appropriation for a newly created agricultural exports program.

Evers enacted the 2021 Wisconsin Act 92 (Assembly Bill 314) in December to require the department to collaborate with the Wisconsin Economic Development Corporation to increase the value of the state’s milk and dairy, meat, crop and other product exports by 25% by June 2026. He had proposed the original legislation in in 2020 State of the State address to invest in Wisconsin’s farmers and rural communities, a news release from his office said. Wisconsin legislators released funds for the Wisconsin Initiative for Agricultural Exports in February.

“We’re darn proud to be America’s Dairyland, and I’m glad to be celebrating National Agriculture Day right here in Plymouth – the Cheese Capital of the World – to sign bipartisan legislation to help continue supporting Wisconsin dairy,” Evers said in the release. “Our dairy industry is not only core to our economy, but it’s core to who we are as a state. This bipartisan legislation builds on our work to expand and increase our dairy exports so folks around the globe can experience the high-quality dairy products we know and love produced right here in Wisconsin.”

The Wisconsin Cheese Makers Association Executive Director John Umhoefer said in a news release that the WIAE program will help support Wisconsin’s dairy processors and farmers to reach consumers around the world.

“With household incomes and demand rising in emerging international markets, now is an ideal time to make these smart, targeted investments,” Sartori Company CEO Jeff Schwager said in the association’s release. “Governor Evers’ action today will provide valuable assistance to help Wisconsin dairy processors navigate the complex logistics of exporting and build their businesses abroad for years to come.”

State agency officials said in a December 2021 report to lawmakers that administration of the WIAE would include participating in international trade shows, reverse buyers’ missions, consultative and educational resources for new exporters, marketing campaigns, and direct-to-industry grants, the association’s release said.

Source: kpvi.com

There has been a positive response to a letter which appeared in last week’s Farming Life, calling for the establishment of a Northern Ireland Dairy Farm Association.

Dairy cow numbers continue to decline in Australia due to increasing competition for land with beef and sheep producers. Dairy producers along Australia’s north coast continue to struggle with heavy rain and flooding. Cows are being moved to higher ground. 

New Zealand dairy markets are happy due to the strong GDT, says DMN. The United Kingdom and New Zealand signed a trade deal, including a five-year period moving to full removal of tariffs on cheese and butter exports from New Zealand. Tariffs are eliminated on all UK exports, according to DMN.

Cheese vats were busy in January. You’ll recall that USDA’s preliminary data reported January milk production at 19.1 billion pounds, down 1.6% from January 2020. The January Dairy Products report shows which products got shorted and it wasn’t cheese. Total output hit 1.168 billion pounds, up 1.8% from December and 2.8% above January 2021. And, a lot of that went into the cooler, according to USDA’s Cold Storage report, in fact total stocks were up 3% from Jan. 2021.

Wisconsin produced 291.9 million pounds of the January total, down 0.9% from December but 2.8% above a year ago. California vats provided 194.6 million pounds, up 3.6% from December but 7.4% below a year ago. Idaho added 87.1 million pounds, down 1.3% from December, and 0.8% below a year ago. 

Italian cheese totaled 489.1 million pounds, up 0.9% from December and 1.7% above a year ago. 

American type cheese, at 479.6 million pounds, was up 4.7% from December and up 1.1% from a year ago. 

Mozzarella output totaled 379.1 million pounds, up 1.1% from a year ago.

Cheddar, the daily traded cheese at the CME, totaled 337.4 million pounds, up 9.7 million pounds or 3.0% from December’s output, which was revised down 6.9 million pounds, and was down 9.5 million pounds or 2.7% from January 2021, fourth month in a row to be below the previous year. 

Churns produced 195.2 million pounds of butter, up 15.2 million pounds or 8.4% from December, but 14.4 million pounds or 6.9% below a year ago, seventh consecutive month below a year ago. Stocks were down 33% from a year ago.

January yogurt output totaled 374.9 million pounds, up 2.8% from a year ago.

Dry whey production climbed to 80.3 million pounds, up 2.6 million pounds or 3.3% from December, but 3.7 million pounds or 4.4% below a year ago. 

Dry whey stocks slipped to 56.4 million pounds, down 1.2% from December and were 10.9 million pounds or 16.3% below those a year ago.

Nonfat dry milk output climbed to 170.7 million pounds, up 2.9 million pounds or 1.8% from December but was down 27.3 million or 13.8% from a year ago. 

Stocks climbed to 261.3 million pounds, up 9 million pounds or 3.6% from December, but were down 43.7 million pounds or 14.3% below those a year ago.

Skim milk powder amounted to 43.4 million pounds, up 5.1 million pounds or 13.5% from December and up 7.4 million or 20.6% above a year ago. 

The report was viewed as slightly bearish however StoneX stated in its March 7 ‘Early Morning Update;’ “Given the recent increase in dairy cow slaughter levels, declines in milk collection in Europe, yields in the U.S., and poor weather in New Zealand and Australia, any increase in milk production will likely take longer than we anticipated. This stall in production levels likely has a far bigger long-term impact in the market than dairy product production numbers being slightly higher than we expected.”

The U.S. still has plenty for U.S. and global consumption. HighGround Dairy’s (HGD) Lucas Fuess reported details of January export data in the Mar. 14 ‘Dairy Radio Now’ broadcast. Technical difficulties interrupted the usual posting to the USDA website, he said, however HGD secured data from an alternative source, though it may be subject to some revision. 

Cheese exports totaled 65.1 million pounds, up 16.5% from January 2021, highest January volume since 2014, according to Fuess, and that despite the port congestion issues that have been plaguing the industry.

Those issues have impacted nonfat dry milk a lot more, he said. Powder exports totaled 131 million pounds, down 5.5%, down for the second consecutive month regardless of the strong global demand. He said he believes that demand will remain strong and support the price and does not think the U.S. will price its way out of the market despite the rise in U.S. prices. 

January butter exports totaled 7.8 million pounds, up 24.8%, and dry whey amounted to 26.8 million pounds, down 33.8%.

HGD says “The exports showed weakness across a wide swath of products, but strength in cheese, butter, and lactose was encouraging. Tough prior year comparable volume coupled with port congestion will limit the ability of exports to show impressive strength in the coming months,” however HGD warned. “Significant volume will continue to leave the U.S. as demand remains firm and U.S. prices remain a value buy,” HGD concludes.

Meanwhile, the Agriculture Department again lowered its estimate for 2022 milk production, citing lower dairy cow numbers and slower growth in milk per cow, and raised milk price projections in the latest World Agricultural Supply and Demand Estimates report (WASDE).

2022 production and marketings were estimated at 226.0 and 225.0 billion pounds respectively, down 1.2 billion pounds on production. If realized, 2022 production would be down 200 million pounds or 0.1% from 2021. 

The fat basis import forecast was lowered on lower expected imports of cheese and butterfat products, while exports were reduced on lower shipments of whole milk powder and whey. The skim-solids basis import forecast was raised, primarily as higher imports of milk proteins more than offset weaker cheese imports. The export forecast was reduced on weaker expected sales of whey products and skim milk powders, according to USDA.

Price forecasts for cheese, butter, nonfat dry milk, and whey were raised from the previous month, based on current prices, lower expected production, and continued demand strength. The higher product prices resulted in both Class III and Class IV milk prices being raised.

Cheese is now projected to average $2.03 per pound in 2022, up 13 cents from last month’s estimate, and 35.55 cents above the 2021 average.

Butter was projected at $2.5750 per pound, up 18.5 cents from a month ago and 84.25 cents above 2021. 

Nonfat dry milk was projected at $1.74 per pound, up 7.50 cents from last month’s estimate and 47.1 cents above the 2021 average.

Whey is projected to average 71 cents per pound, was up a half cent from last month’s estimate and 13.6 cents above the 2021 average.

The 2022 Class III milk price is projected to average $21.65 per hundredweight, up $1.35 from what was expected a month ago, and $4.57 above the 2021 average of $17.08. 

The Class IV average was projected at $23.70, up $1.40 from a month ago, and $7.61 above the 2021 average of $16.09.

The war in Ukraine is especially impacting global grain markets and the USDA lowered its export data on corn and wheat from the region. Ukraine’s corn exports were reduced 6 million metric tons and the March 9 ‘Daily Dairy Report’ warned; “Even if other exporters, such as the U.S., increase shipments to partially offset lower Ukrainian exports, the resulting supply shortage is nonetheless expected to keep global corn prices elevated.”

The corn outlook is for increased food, seed, and industrial use, larger exports, and smaller stocks relative to last month. Corn used for ethanol was raised 25 million bushels to 5.35 billion. Exports were raised 75 million bushels to 2.5 billion, reflecting expectations of sharply lower Ukraine exports. The projected season-average farm price was raised 20 cents to $5.65 per bushel. Global coarse grain production was forecast 1.5 million tons higher to 1.499 billion.

Higher exports of soybeans are anticipated and lower ending stocks. Exports were raised 40 million bushels to 2.09 billion, with lower production and reduced exports for South America. Soybean ending stocks were projected at 285 million bushels, down 40 million from last month. With rising soybean oil prices, soybean oil used for biofuel was reduced. 

The U.S. season-average soybean price was forecast at $13.25 per bushel, up 25 cents. The soybean meal price was forecast at $420 per short ton, up $10. Global soybean supply and demand forecasts include lower production, crush, exports, and stocks, according to the WASDE.

In the week ending February 26, 65,200 dairy cows were sent to slaughter, down 2,000 from the previous week, and 6,500 head or 9.1% below a year ago.

After jumping 20.50 cents the week before, the CME Cheddar blocks climbed to $2.2325 per pound Wednesday, highest since November 10, 2020, but closed Friday at $2.19, up 4 cents on the week and 40 cents above a year ago. 

The barrels climbed to $2.0850 Wednesday, also the highest since November 10, 2020, but finished Friday at $2.01, also up 4 cents on the week, 45.75 cents above a year ago, and 18 cents below the blocks. Sales totaled 6 cars of block and 21 of barrel

The March 4 Dairy and Food Market Analyst cautions that foodservice sales are “losing momentum.”  “Data from OpenTable show restaurant traffic decreased by 4.7% in the latest week versus pre-pandemic levels. This compares to mid-February when sales managed to move above pre-pandemic levels.”

Milk availability in the Midwest is mixed, according to Dairy Market News. Location has played a big part in recent months and not necessarily plants’ proximities to dairy farms. Milk handlers and cheese plant managers are working together to move milk loads, at discounts, o active plants, while others undergo maintenance downtime. A growing number of cheese plants are opting to use internally sourced milk unless spot milk loads are sub-Class, as Class III milk prices are $20 plus per cwt. Cheese sales continue steady to busier. Some cheesemakers think the bullish market push will slow interest, while others say buyers are actively trying to stay ahead of price increases, says DMN.

Cheese markets continued along their recent bullish trend in the West. Contacts report that loosening COVID restrictions and improving weather was leading to more food service sales and retail demand is steady. International demand remains strong as purchasers look to fill second and third quarter needs. U.S. prices remain competitively priced but port congestion continues to cause delays. Cheesemakers are running busy schedules but below capacity due to labor shortages and delayed deliveries of production supplies.

Cash butter shot up to $2.7775 per pound Wednesday, fell back 8.50 cents Thursday, but climbed back to a Friday finish at $2.71, up 2.50 cents on the week and 99.50 cents above a year ago, with 24 sales reported.

The spot market has rolled over to new crop butter, meaning only that which was produced after December 1 last year will be allowed and, as StoneX put it; “Add in an already tight stock situation and it will likely underpin the market.” 

Butter producers continue to report accessible cream from within the region and the West. Seasonal milk yield increases will likely push extra cream onto the spot market, says DMN, but spring holiday-focused processing of dips, whips, cream cheese, and other staples could keep cream availability in check, if not tighten it. Some butter makers say they are in somewhat good shape regarding fall stocks but others are not. Staffing shortages remain a hurdle to full capacities but that varies plant to plant. DMN says “There are a number of questions pertaining to Ukraine and Russia. As fuel prices quickly increase, plant managers and others say hauling costs will add another barricade to smooth running operations.”

Cream demand is steady to higher in the West. Inventories are available but tightening, as butter and ice cream makers ramp up production for spring. Food service butter demand is trending higher; thanks to warmer weather and loosening COVID restrictions. Demand is also increasing in food service, as grocers purchase more for upcoming spring holidays. Export demand for butter is strong. Higher international prices and tight inventories are contributing to higher prices. Butter producers are running busy schedules in the region but labor shortages and delayed production supplies continue to prevent full capacity.

Grade A nonfat dry milk closed Friday at $1.84 per pound, down 3.25 cents on the week but 67 cents above a year ago, with 16 sales reported on the week.

Dry whey held all week at 75.75 cents per pound, 15.75 cents above a year ago, with only 1 sale reported on the week at the CME.

Western European milk output is seasonally increasing though the pace slowed in Germany and France. French production was unofficially noted to be below a year ago. Nearly 40% of Western European milk comes from Germany and France, according to DMN.

Source: farmersadvance.com

Milk production in the United States during February totaled 17.5 billion pounds, down 1.0 percent from February 2021.

Production per cow in the United States averaged 1,869 pounds for February, 1 pound above February 2021.

The number of milk cows on farms in the United States was 9.37 million head, 96,000 head less than February 2021, but 3,000 head more than January 2022.

Source: NASS

The decline in Vermont dairy farms continues as many are having a hard time competing with massive facilities.

Our Rachel Mann spoke with two different direct-to-consumer dairy farms. Both are relatively new to the business, but are heading in very different directions.

Neil Dunlop and his wife moved to Marshfield during the pandemic, taking over operations at Hollister Hill Farm. After less than two years into the business, they’ll be ending dairy production.

“It feels sad to us and it wasn’t an easy decision for us to make, to stop doing it of course,” Dunlop said. “It feels like the end of something.”

Hollister Hill farm only has three dairy cows. Dunlop says there’s no way to compete with larger facilities.

He says they sell half-gallons of raw milk for$5 per half-gallon in their farm store, but estimates it takes about $12 to produce.

“It has been being sold here for years and we thought it was kind of a community service,” Dunlop explained. “In 2021, the first year we were able to keep records we we lost the thousands of dollars,”

Sunday Bell Farm in Danville is a first-generation farm, also relatively new to the dairy business. It’s not their most profitable area of business, but they are looking to expand dairy production in the coming months.

“This will be our second season of production, so we’re still dealing with you know the general challenges of access to land and access to market stuff like that,” said Kylie Cook, one of the farm’s owners.

She says their biggest concern is supply chain issues.

“Fuel and grain, those are the two biggest ones I worry about,” she said. “Those those two have different implications.”

While small dairy may not be the most profitable, Dunlop and Cook say it’s a way of life.

“We will be keeping the cows on the farm,” Dunlop explained. “We plan to milk them when they freshen or have calves.”

“I wasn’t born into dairy, but I always knew I wanted to farm,” Cook explained. “It just felt right in my heart.”

Hollister Hill farm will stop selling raw milk on March 31st. However, all of their other products will still be available.

Source: wcax.com

Outlook still good despite rising cost of production

Dairy Australia released its latest Situation and Outlook report, which analyses the forces influencing the global market for dairy commodities and the effect they are expected to have on the profitability of Australian dairy farms in the coming season.

Despite costs going up across the board, dairy farmers in most regions are well-placed for another profitable year ahead, with strong international demand and weak supply boosting global commodity values.

Production in major dairy exporting regions has dropped due to adverse weather conditions, worker shortages and declining herd numbers, while buyers in key international markets are looking to build up stocks to mitigate supply chain disruptions.

Domestic consumption has rebounded over the holiday period, with foodservice sector sales up by 24% and retail sales on par with pre-pandemic levels.

Supportive market fundamentals provide cause for optimism even as costs maintain their upwards trajectory. With the national milk pool expected to shrink by between 1% and 3% this season, strong competition for milk is likely to continue, concluded the summary report. 

The National Milk Producers Federation (NMPF) and the U.S. Dairy Export Council (USDEC) rejected a proposal issued late yesterday by Global Affairs Canada that outlines the Canadian “changes” to their current scheme for allocating U.S.-Mexico-Canada Agreement (USMCA) dairy tariff-rate-quotas (TRQ).

In January the United States Trade Representative’s office announced that it had won USMCA’s first-ever dispute settlement panel by prevailing in its case against Canada regarding how Canada’s USMCA dairy TRQ allocation process violated the agreement. Ambassador Tai noted at the time that, “This historic win will help eliminate unjustified trade restrictions on American dairy products and will ensure that the U.S. dairy industry and its workers get the full benefit of the USMCA to market and sell U.S. products to Canadian consumers.”

“Enough is enough. U.S. dairy producers are sick and tired of Canada’s game playing on dairy market access. From their irrelevant celebration that the panel upheld Canada’s right to retain a supply management system, a fact that no one has challenged and was not at issue in the USMCA case, to the continual efforts to undermine established trade commitments in order to favor Canadian dairy farmers, this pattern of behavior has gone on too long. All that American dairy farmers want is fair and good-faith implementation of USMCA’s dairy provisions. That doesn’t seem like a high bar, yet it appears to be insurmountable for Canada based on yesterday’s proposed dairy TRQ scheme changes,” said Jim Mulhern, president and CEO of NMPF. “We urge the administration to demand that Canada go back to the drawing board until it can genuinely deliver on providing the U.S. dairy industry the full benefit of USMCA.”

“U.S. dairy farmers and manufacturers have only limited access to the Canadian market under USMCA. That makes it essential that Canada abide by its original commitments under that agreement,” said Krysta Harden, president & CEO of USDEC. “Canada’s recent dairy TRQ proposal will not lead to that result. While it’s not surprising that Canada is trying to see just how little will be demanded of them, it’s essential that the U.S. government insist on real reforms.”

As the first case brought and decided under USMCA, the U.S.-Canada dairy TRQ panel is a test-case for whether or not the USMCA dispute settlement process can provide effective enforcement and deliver genuine compliance with the agreement. NMPF and USDEC will continue to work with the Biden administration and Congress to seek to ensure that the process provides the type of strong precedent needed for future USMCA disputes as well.

Source: USDEC

Fonterra posted a 13% fall in half-year profit over last year

Demand for dairy products is holding up in China despite concerns about an economic slowdown and the impact of COVID-19 outbreaks, a senior executive at New Zealand’s Fonterra Co-operative Group Ltd said on Thursday.

Fonterra, the world’s largest dairy exporter, posted a 13% fall in half-year profit after its margins were squeezed by rising input costs and lower milk collections in New Zealand due to bad weather.

Sales margins also took a hit from raw milk prices rising due to constrained supply and strong demand, it said.

Chief Financial Officer Marc Rivers told Reuters that if lockdowns to contain COVID-19 in China, Fonterra’s biggest export market, hurt demand, the co-op could switch its product mix toward consumer goods from the food-service sector.

“It’s early days. We’re live monitoring the situation,” he said, adding a bigger challenge was whether Fonterra would be able to pass on significantly higher wholesale dairy prices, which were squeezing its margins.

“But we’ve not seen that as a problem yet,” said Rivers, who will leave Fonterra at the end of 2022.

Dairy prices fell for the first time this year in the Global Dairy Trade auction on Tuesday, which analysts said was due largely to concerns about Chinese demand. Even after this week’s fall in prices, the Global Dairy Trade price index has risen 18% since the start of 2022. 

China this week reported some unexpectedly strong economic data for early 2022, but analysts have cautioned any nascent recovery could be tested by surging COVID-19 cases, a weak property market and an uncertain global recovery. 

Fonterra last month lifted its forecast range for what it will pay farmers for milk in the 2021/22 season, passing on the benefit of strong global milk prices. 

Fonterra’s net profit after tax for the six months ended 31 January came in at NZ$364 million ($248.36 million), down from NZ$418 million recorded in the year-ago period.

The company’s Greater China earnings before interest and tax fell 20% due largely to the food-service sector, which saw revenue grow 7% but margins contract.

The Auckland-based dairy exporter declared an interim dividend of 5 New Zealand cents per share, the same as last year.

Source: Reuters

A dairy farmer who would not allow WorkSafe​ inspectors on to his farm, instead challenging their authority and making himself scarce, has failed in his latest attempt to overturn his convictions.

The Court of Appeal dismissed Daniel Sproull’s​ appeal in March against two convictions for obstructing WorkSafe inspectors.

He was found guilty of the charges by Judge Jonathan krebs after a judge-alone trial in 2020.

The convictions stem from 2018 and 2019, a time when Sproull ran three farming companies based in Aokautere​, just outside of Palmerston North.

WorkSafe inspectors repeatedly tried to visit Sproull’s farm to do compliance checks, but Sproull spent his time either not accepting their authority to conduct inspections or not being on the property.

A vehicle was also used to block access to a milk shed inspectors wanted to check, while Sproull failed to tell inspectors why he was absent for pre-arranged inspections.

He defended himself at trial, but asked no questions, called and gave no evidence and made no submissions on the law.

The judge described Sproull as “a business operator who was determined to thwart the investigation process” when sentencing him to pay a fine of $2000.

Sproull’s arguments about WorkSafe staff properly identifying themselves were again at the crux of his case in the Court of Appeal.

According to the court’s decision, Sproull said WorkSafe failed to properly disclose relevant documents on that point.

While WorkSafe did not provide that information before Sproull’s trial, it was given leave during the trial to present documents which proved the inspectors had authority to inspect Sproull’s farm.

Sproull argued there was no legal basis for letting that evidence in during the trial, which raised the risk of a miscarriage of justice and wrongful conviction.

WorkSafe argued Sproull had not raised any matter of public importance, so his appeal should be dismissed.

The Court of Appeal agreed with WorkSafe.

Sproull never made any objection during the trial about the way inspectors were delegated authority to inspect his farm.

While he sent a query about it to WorkSafe before the trial, that was not the same as raising it at trial.

But even if he did raise the issue during the trial, the evidence WorkSafe was given leave to present put the issue to bed.

WorkSafe’s error on not giving him that information did not change the factual and legal position of the inspectors’ authority.

The Court of Appeal did note Sproull was self-represented at trial, so he may not have known he had to bring the issue up with the trial judge.

“But such lack of knowledge cannot allow him to avoid the legal consequences of failing to take the appropriate step at trial.”

Source: stuff.co.nz