For years, proponents of the dairy industry have argued that plant-based goods should not be permitted to use names like “milk” or “cheese” on their labels.

This controversy is now expanding to encompass items that are supposed to resemble milk but are created in a lab rather than by a cow.

Fermentation is used in lab-grown or cell-based dairy products to produce proteins that resemble whey protein. These proteins are then ground into powders that may be used to create milk, cream cheese, and other goods.

On Tuesday, Democratic U.S. Senator Tammy Baldwin and seven other senators wrote to the Food and Drug Administration, urging the government to prohibit these goods from using dairy names. Baldwin and other politicians have made a similar case for plant-based alternatives.

In a recent letter, Baldwin and the other senators criticize the FDA for “decades of inaction” on dairy labeling, claiming that many cell-based products are nutritionally inferior to normal dairy products in ways comparable to plant-based goods. According to the MPs, consumer uncertainty about the nutritional value of dairy replacements has resulted in public health issues.

Baldwin told Wisconsin Public Radio that the FDA has failed to safeguard consumers and dairy farmers for years because other goods “have profited off of dairy’s good name.”

“I’m calling on the Biden administration to step up and enforce dairy labeling rules, especially as new synthetic imitators enter the market,” she added.

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Milk prices remain 5-10p/litre below current cost-of-production projections, putting dairy producers at risk of incurring significant losses.

Most milk purchasers kept farmgate prices low in September and October, however some processors slashed even more.

Despite the low costs, supply remains plentiful, and milk deliveries are up somewhat over the same time last year.
Milk pricing at the farm level

• Arla has reaffirmed a manufactured litre price stay of 35.12p/litre in September, and an organic price of 40.79p/litre.
• Dairy producers who supply Muller directly will continue to get 37p per liquid litre until October.
• In October, First Milk will maintain its manufacturing litre price of 36.85p.
• Based on a regular manufacturing litre, Barbers Cheesemakers has reduced their October milk price by 1.65p/litre to 36.14p/litre.
• According to industry sources, Saputo Dairy and South Caernarfon Creameries have also announced small cutbacks.

Daily milk deliveries in the United Kingdom averaged 32.1 million litres for the week ending August 26, up 0.5% from the same week previous year.

Demand remained weak, and prices for butter, skimmed milk powder, and mild cheddar fell in the UK wholesale markets in August.

Meanwhile, in August, the actual milk price equivalent (Ampe) market indicator decreased to 28.6p/litre, the lowest level in three years.

However, the recent weekly Global Dairy Trade (GDT) auction on September 5 showed some early indications of increasing demand.

Following four consecutive price drops, the GDT price index climbed by 2.7% to average $2,888/t (£2,300/t).

According to Chris Walkland, a dairy expert, the increase in the GDT was an encouraging indication, but not enough to reverse market sentiment.

“I wouldn’t say we’re out of the woods yet in terms of price cuts.” “The market has to pick up significantly for that risk to disappear,” he added.

Mr Walkland anticipates more of the same in the next month or two, given there is plenty of stock available. Longer term, he believes the market will be impacted by levels of demand from traders making purchases in the run-up to Christmas in the fourth quarter.

Arla Foods amba board director and farmer Arthur Fearnall said, “Inflation is finally softening, albeit slowly, and as a result retail sales are picking up.”

“Global commodity markets have turned negative this summer, but European markets have been more stable.” The prognosis is positive. However, commodities market changes have created considerable uncertainty.”
Farmers at Sainsbury’s face a price increase.

Farmers who are members of Sainsbury’s Dairy Development Group will get an extra 1p/litre on top of the cost-of-production price from October 1.

Farmers that satisfy the standards may additionally get an additional 1p/litre sustainability incentive.

Farmers in the association have gotten 2.45p/litre more on average than the rest of the market since its start.

“The dairy farming industry is becoming increasingly challenging,” said Gavin Hodgson, director of agriculture, aquaculture, and horticulture at Sainsbury’s, “and we recognize the responsibility we have as a retailer to support farmers, as well as the need for continuous investment in this sector.”

The figures

• 32.1 million litres Average daily milk delivery in the United Kingdom (w/e August 26)
• 28.6p/litre In August, the actual milk price equivalent (Ampe) was 2.7%. On September 5, there will be an increase in the Global Dairy Trade auction.

New Zealand has won a trade fight with Canada over the refusal of Kiwi dairy goods to enter the North American nation.

Both countries are signatories to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), a trade agreement between a group of countries that also includes Australia and Mexico and to which the United Kingdom has committed.

New Zealand initiated the matter, basically charging Canada of protectionism, in May of last year. A CPTPP tribunal heard the case and upheld New Zealand’s complaint.

It found that Canada’s dairy quota administration is incompatible with its CPTPP obligations, and that as a result, New Zealand exporters were unable to fully utilize Canada’s 16 dairy tariff rate quotas because Canada was granting priority access to its own domestic dairy processors.

New Zealand asserted Canada devised a sophisticated mechanism that diverted allocations away from Canadian importers who were likely to utilize the quota to purchase New Zealand products. Instead, domestic dairy processors purchased the quota.

Damien O’Connor, New Zealand’s Minister for Trade and Export Growth, applauded the decision.

“Canada was not living up to its CPTPP commitments by effectively blocking access for our dairy industry to expand its exports,” he added. That will have to alter immediately.

“This is a major victory for New Zealand and our exporters.” In the last three years, our dairy sector has lost an estimated NZ$120 million ($70.7 million) in income from the Canadian market.

He went on to say, “Today’s ruling will give exporters confidence and certainty that the mechanisms in place will ensure they receive the market access that all members agreed to.”

In reaction, David Wiens, president of The Dairy Farmers of Canada, said, “Dairy Farmers of Canada is disappointed with the dispute panel’s ruling.”

In response, he has urged the Canadian government to conduct a “thorough review” of New Zealand’s dairy-support policies to “ensure that they are consistent with its international trade obligations.”

This is New Zealand’s first disagreement with a CPTPP partner, and its position was backed by the majority of the other pact members.

The CPTPP went into effect in 2018. Jennifer Hillman, a former commissioner of the US International Trade Commission, Colleen Swords, a former Canadian diplomat, and Petros Mavroidis, an international trade expert, co-chaired the dispute panel in this case.

According to Trade Minister Mary Ng, Canada has won a trade dispute lawsuit against New Zealand, which claimed Ottawa was unjustly limiting access to the domestic market for dairy goods.

New Zealand has requested that a dispute panel be established under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, a major trade agreement, to handle Auckland’s complaint.

“Canada is very pleased with the outcome of the panel’s report, which represents a clear victory,” Ng said in a statement.

New Zealand and the United States have often protested that Canada is failing to satisfy its duties under multiple trade treaties to open its market to foreign manufacturers.

They claim that, although Canada committed to provide foreign corporations some dairy market access via a system of tariff-rate quotas, it was in reality unfairly assigning some of them to local enterprises.

“The panel has made a significant finding by recognizing Canada’s sole discretion to set tariff-rate quota allocations policies,” Ng added.

She also restated Canada’s commitment to defending the national supply management system, which protects dairy producers via output caps and hefty import tariffs.

According to a recent research on recent Zealand dairy export profits, the industry produced over NZ$26 billion/US$15.29 billion in export income in the 12 months to April 2023. This indicates that dairy exports accounted for one-fourth of all export revenues.

The survey, commissioned by trade groups DairyNZ and the Dairy Companies Association of New Zealand (DCANZ) and conducted by Sense Partners, also revealed that the value of dairy exports increased by 45% in the past five years.

The sector has also served as a’shock absorber’ for local communities that have seen milk prices decline. Export revenues, according to DairyNZ’s director of economics Mark Storey, ‘translate into well-paying employment in the industry and allow the purchase of products and services from other industries’. Fonterra reduced its farmgate milk price prediction in August to between NZ$6 and NZ$7.50 per kgMS, down from the revised range of NZ$6.25-NZ$7.75 per kgMS issued two weeks earlier. CLAL reports that the monthly average milk price in July 2023 was down 32.45% year on year, standing at NZ$51.30/US$30.17 per 100kg exclusive of VAT.

“There will inevitably be an impact from the recent drop in milk price,” Storey said, “with farmers limiting non-essential expenditure and short-term purchases where possible.” This research, however, demonstrates that the industry absorbs some of the consequences on dairy producers’ income. Despite reduced milk prices, dairy producers will continue to recruit workers and buy farm supplies.”

According to the research, dairy farmers spent about NZ$8 billion/US$4.71 billion on goods and services in the year to March 2023, while processors spent NZ$19.6 billion/US11.53 billion in the same time. According to Storey, the industry produces NZ$3.6 billion/US$2.12 billion in earnings each year and employs 55,000 people both on and off farms, making it a “significant employer” in the community. “For example, in Waimate, one in every three jobs is in the dairy industry, and wages account for 52% of total wages paid.” Dairy also employs more than 20% of people in both South Taranaki and Westland areas, and pays more than 40% of total earnings in both districts.” According to the survey, jobs in dairy account for more than one in ten across eight more districts and pay higher incomes than similar industries.

Individual dairy goods such as whole milk powder, skim milk powder, butter and dairy spreads, protein products, and cheese are all multibillion-dollar exports, but there has been a noticeable movement in recent years toward exporting more dairy protein products and less whole milk powder. “The analysis highlights that New Zealand dairy exporters continue to change their market offerings in response to demand,” said DCANZ executive director Kimberly Crewther. “The proportion of whole milk powder has decreased from 36.9% in 2019 to 31.6% in the year to April 2023, while dairy protein products have increased to 13.2% of the product mix, up from 8.6% in 2019.”

According to Crewther, trade obstacles remain, emphasizing the need of free trade agreements (FTAs) such as the UK-New Zealand agreement, which eliminates tariffs on a variety of Kiwi products such as yogurt, liquid milk, and baby formula in May 2023. Tariffs on dairy proteins including lactose, whey, and milk powder will be eliminated on January 1, 2026.

“According to Sense Partners, New Zealand dairy exports continue to incur more than NZ$1.5 billion/US$0.88 billion in tariffs and NZ$7.8 billion/US$4.6 billion in non-tariff measures costs.” “86.7% of global dairy consumption is still subject to trade tariffs of 10% or higher,” added Crewther.

“This highlights the critical importance of New Zealand continuing to invest in efforts to remove trade barriers, including those that remain in some free trade agreement partner markets for dairy.” Fewer trade obstacles would imply more export prospects for New Zealand dairy producers and a better capacity to handle market volatility.”

According to the USDA, dairy product output fell in July due to lower milk availability.

Total cheese output was approximately 1.2 billion pounds, a 1% decrease from the previous year and month. Italian cheese output was down 1.5 percent year on year and slightly higher in June, while American cheese production was up marginally year on year and month on month.

Butter output totalled 157 million pounds, up 3.5% from the previous year but down more than 3% from the previous month.

Nonfat dry milk fell approximately 19% from 2022 to 2024, whereas skim milk powder grew by more than 2%. Dry whey production increased by more than 3% year on year, but lactose output decreased by about 3%.

According to Rabobank’s annual Global Dairy Top 20 report, which highlights revenue performance of the world’s dairy sector leaders, just five businesses retained their place from the previous year, suggesting a rearrangement throughout the whole list. Lactalis maintained its lead, but Dairy Farmers of America moved up to second, pushing Nestlé to third. Position changes in the ranking were impacted by a higher US dollar. The aggregate turnover of the Top 20 corporations increased by 7.4% in US dollar terms, after a 9.3% increase the previous year. For these 20 market leaders, merger and acquisition activity was virtually on par with the previous year. The second half of 2022 had a slump, which lasted into the first part of 2023.

Due to elevated dairy commodity costs, 2022 will see a record-high turnover.

EU dairy product prices rose to record annual average highs, fueled by a second wave of war-induced inflation. Milk powder costs were also raised in Oceania and the United States. Simultaneously, lower-than-expected milk production increases in the key exporting areas, along with solid domestic demand, led to an overall tight dairy market with limited exportable surpluses throughout most of 2022.

Overall, year-on-year average price increases in butter, cheese, milk powders, and other dairy goods lay the way for double-digit local currency turnover growth in 2022.

Higher revenues are offset by a rising cost base and historically high milk costs.

“In the end, most turnover gains were absorbed by exploding costs, leaving little left on the companies’ bottom lines,” says Richard Scheper, Rabobank’s dairy analyst. “Many dairy companies paid record-high average farmgate milk prices to offset large farm input costs.” Rising energy prices and the availability of natural gas, particularly in Europe, were the most pressing problems for energy-intensive dairy processing at the plant gate. Other costs, such as shipping, packaging materials, and labor, will also rise in 2022.

A stronger US dollar affected ranking position alterations.

According to Scheper, “for non-US-based dairy companies, turnover gains in local currencies were partly or even entirely offset by the stronger US dollar, giving rise to position changes across the board and contributing to the entry of Ireland-based Glanbia.” Glanbia’s revenues are mostly drawn from sales in the United States, and the business recently stated that it would begin reporting in US dollars rather than euros in the near future.

The Canadian dollar also gained ground against a variety of other currencies, notably the euro. This allowed Canada-based Saputo (10th) to maintain its place in the top ten, while moving Agropur up one spot to 15th. Both firms have significant sales volumes in the United States, providing them a competitive edge over the other 11 companies on the list that report in euros.

FX developments in 2022 were especially unfavorable for dairy companies reporting in New Zealand dollars, renminbi, and yen, causing New Zealand’s Fonterra to drop three spots, China’s Yili and Mengniu to lose turnover gains in US dollar terms, and Japan-based Meiji, a long-standing Top 20 company, to drop out of the list.

Less activity and smaller transactions in mergers and acquisitions

With approximately 25 acquisitions, merger and acquisition activity in 2022 was virtually on pace with the previous year. However, 1H 2023 activity declined in terms of both the quantity and amount of agreements disclosed, with around eight announced vs approximately 12 announced in the first six months of 2022.

Fonterra CEO Miles Hurrell has written to farmer-shareholders outlining a strategy to slash $1 billion from the dairy cooperative’s expenditures over the next seven years.

The letter, which was posted on the NZX sharemarket, does not specify how many positions would be lost, but Hurrell said that the “focus on efficiencies will have implications for staff numbers.”

Fonterra has dropped its milk price prediction numerous times in recent weeks, putting many of its farmer-shareholders under pressure, and Hurrell said this made the balance of the year “even more challenging.”

“I acknowledge that the pace and magnitude of these recent price changes has been unsettling,” Hurrell said in a report on the global dairy market and initiatives to lower costs to enhance farmer profits.

“We have been developing plans since late last year with the goal of reducing costs across the co-op by about $1 billion over the next seven years to 2030,” Hurrell said.

“We intend to achieve this goal through a variety of projects that will streamline how we operate, and it will help offset higher inflation expectations.”

“These projects include operational efficiencies, cash cost reductions across the business, and business process digitization.”

“We plan to front-load as much of this activity as possible over the next few years.”

Hurrell said that Fonterra will use new efficiency measurements that farmers could use to assess how well the company was functioning.

He discussed Fonterra’s problems and expectations in China, the world’s biggest dairy market.

“Right now, we’re hearing a lot about the China market, as a drop in demand from China for imported whole milk powder has been one of the key drivers of falling prices.”

“High raw milk prices have fueled strong domestic milk supply growth in China over the last few years.” More recently, China’s lengthy Covid-19 blockade has lowered consumer demand for fresh milk products, which has yet to rebound to previously predicted levels.”

As a result, Chinese processors were forced to spray dry their excess milk, resulting in significant in-market supplies of whole milk powder.

However, there were signs of a rebalancing of China’s domestic milk output, he noted.

Hurrell believes that when supply from Chinese milk producers falls, demand for New Zealand milk will begin to rise in calendar year 2024.

This aligns with the removal of residual duties on New Zealand dairy goods as part of the NZ-China Free Trade Agreement, he added.

He said that Fonterra’s Greater China business was doing well.

“China is still the world’s top market for dairy imports, and we believe imports will remain an important part of the product mix for the foreseeable future.”

Fonterra now expects to collect less milk in the coming months, with its estimated milk collections for the 2023/24 season reduced from 1480 million kilogrammes of milk solids to 1465 million kilogrammes of milk solids.

“Wet weather has impacted pasture cover and quality, and while we could see some improvement in these conditions as we head into Spring, we expect inflationary pressures and the Farmgate Milk Price outlook to continue to impact milk production levels,” he added.

Fonterra dropped its milk price prediction for the second time in a fortnight in mid-August, after a drop in global dairy prices.

On August 18, the co-operative said that it expects to pay farmers between $6 to $7.50 per kgMS this season, a decrease from the revised $6.25 to $7.75 per kgMS range released a week earlier.

Farmers are paid $6.75 per kgMS, a decrease from the prior expectation of $7 per kgMS, the opening forecast of $8 per kgMS in May, and the $8.20 per kgMS estimate for last season.

For the 2018/19 season, it is expected to be the lowest payout since $6.35 per kgMS.

China is on track to become the world’s third-largest producer of cow milk this year. Despite its high worldwide milk production rating, the nation remains the top dairy importer owing to its vast population, which continues to increase per capita dairy consumption, according to Rabobank.

China is on track to become the world’s third-largest producer of cow milk this year. Despite its high worldwide milk production rating, the nation remains the top dairy importer owing to its vast population, which continues to increase per capita dairy consumption, according to Rabobank.

Domestic per capita consumption has a great possibility to develop further, since it is now just one-third of the worldwide average, according to those experts.

According to Rabobank, China’s milk supply will increase from 41.5 million metric tons in 2023 to 47.4 million metric tons liquid milk equivalent (LME) in 2032, with a compound annual growth rate (CAGR) of 1.5% by volume.

Annual demand in the nation is predicted to climb 2.4% on average between 2023 and 2032, with dairy consumption reaching 62.2 million metric tons LME by 2032, according to the report.

“China will continue to play an important role in the global dairy industry, with the import deficit expected to widen further.” Imports are expected to reach 15 million metric tons LME by 2032, according to Michelle Huang, a dairy analyst at Rabobank.

According to a recent Dutch bank dairy analysis, China’s self-sufficiency rate ranges between 70% and 80% and is unlikely to improve much, implying that domestic dairy output will not meet increasing demand in the long term.

“The most important swing factors influencing domestic supply will be production costs, land, water, heifers, and capital availability, and future government policy.”

“On the demand side, downside risks include weaker income growth, slower economic growth, and sluggish consumer demand,” Huang said.
Production that is highly focused ​

China’s milk production is extremely concentrated, with the majority of it located in the country’s north. The dairy agricultural belt includes areas like as Inner Mongolia and Heilongjiang.

The country’s milk sector has grown as a result of a change in food security awareness caused by China’s recent geopolitical difficulties. The country’s ministry of agriculture and rural affairs (MARA) enacted a five-year strategy for the domestic dairy industry in February 2022, outlining major measures that the government would support, such as the development of large-scale modern dairy farms.

The share of the Chinese dairy herd on farms with more than 1,000 head climbed from 24 to 44% between 2015 and 2020. Dairy farms with more than 1,000 head are predicted to increase and dominate the Chinese dairy landscape by 2025, accounting for 56% of the country’s herd.

MARA is also working to develop domestic breeding and genetics skills, to help dairy farming’s digital revolution, and to stimulate vertical integration of the dairy value chain.
Forage availability ​

Another important goal mentioned by the agriculture ministry is to enhance the availability of high-quality fodder.

“In China, dairy cows are typically fed one of three types of rations: forage grass/alfalfa, concentrated feed, and supplementary feed.” According to the Rabobank analysis, “alfalfa plays a critical role in increasing milk yield and protein content, and China’s dairy farms rely on imported alfalfa from the United States.”

According to dairy industry experts, the government has created multiple high-yielding alfalfa farms in Inner Mongolia, Gansu, and Ningxia provinces to minimize dependence on imported alfalfa and boost local supplies.

The agriculture industry is in the midst of a technological revolution, and dairy farming is no exception. Advancements in agricultural technology, often referred to as agtech, are transforming the way dairy farmers manage their operations. From automated milking systems to data analytics, these innovations offer opportunities for increased efficiency, improved sustainability, and enhanced profitability. However, for dairy farmers to fully benefit from the agtech revolution, they must proactively prepare and adapt to these changes.

1. Embrace Data-Driven Decision Making
   One of the fundamental aspects of the agtech revolution in dairy farming is the collection and analysis of data. Dairy farmers can install sensors in barns, on cows, and in equipment to gather information about everything from milk production to cow health. By harnessing this data, farmers can make informed decisions that lead to better outcomes.
   Implementing a farm management software system that integrates data from various sources can provide a holistic view of the operation. This allows farmers to monitor cow behavior, track feed consumption, optimize breeding cycles, and identify potential health issues in real-time. The insights gained from data analytics can enhance operational efficiency and maximize milk production.

2. Invest in Automation
   Automation is another key component of the agtech revolution in dairy farming. Automated milking systems, robotic feeders, and even autonomous tractors can reduce labor costs and improve efficiency. These technologies allow for round-the-clock monitoring and management of the herd and dairy facilities.
   By automating routine tasks, dairy farmers can free up their time to focus on more strategic aspects of their business, such as herd health management, genetics, and market trends. Additionally, automation can help ensure consistency in tasks like milking and feeding, which can lead to higher milk quality and better overall herd health.

3. Explore Precision Agriculture
   Precision agriculture techniques, commonly associated with crop farming, are increasingly relevant to dairy farming as well. This involves the use of GPS technology, sensors, and data analytics to optimize resource allocation and minimize waste. For dairy farmers, precision agriculture can help with pasture management, nutrient management, and even manure disposal.
   By accurately mapping pastures and monitoring soil conditions, farmers can make data-driven decisions about when and where to graze their cattle. This can reduce overgrazing, improve soil health, and ultimately increase the sustainability of the operation. Precision agriculture can also aid in managing manure more efficiently, minimizing its environmental impact.

5. Stay Informed and Collaborate
   The agtech landscape is continually evolving, with new innovations and technologies emerging regularly. Dairy farmers must stay informed about these developments and be open to adopting new tools and practices. Attending industry conferences, joining agtech-focused organizations, and networking with other farmers can provide valuable insights and opportunities for collaboration.
   Collaboration is especially important in the agtech space, as it can lead to shared resources, knowledge exchange, and access to cutting-edge technologies. Working with agritech companies, universities, and research institutions can help dairy farmers stay at the forefront of technological advancements.
6. Address Connectivity and Cybersecurity
   As dairy farms become more connected through the Internet of Things (IoT) devices and data-sharing platforms, it’s crucial to prioritize cybersecurity. Protecting sensitive farm data and ensuring the integrity of automated systems is paramount. Dairy farmers should invest in cybersecurity measures and stay vigilant against potential threats.
   Additionally, reliable internet connectivity is essential for the successful implementation of agtech solutions. Farmers in remote areas may need to explore options for improving their internet infrastructure to fully leverage the benefits of these technologies.

The agtech revolution presents dairy farmers with exciting opportunities to enhance their operations, increase productivity, and promote sustainability. By embracing data-driven decision making, investing in automation, exploring precision agriculture techniques, staying informed, collaborating with others in the industry, and addressing connectivity and cybersecurity concerns, dairy farmers can prepare themselves for the future of farming. Adapting to these technological advancements can not only improve the bottom line but also contribute to the long-term success and sustainability of dairy operations.

Dairy Management Inc. (DMI), the planning and management organization that oversees the national dairy checkoff program on behalf of America’s dairy farmers and importers, has posted its 2022 annual report at www.usdairy.com/for-farmers/resources.

The report provides checkoff funders and other members of the dairy community an audited financial report and highlights from 2022 focused on strategies and programs including:

· Accelerating incremental dairy sales growth

· Building trust in dairy, dairy foods and dairy farming with youth and other important consumer audiences

· Positioning dairy in a global food system

“Farmers and importers seek transparency in their checkoff strategies and the 2022 annual report is a great way to deliver on those expectations,” said Marilyn Hershey, Pennsylvania dairy farmer and DMI chair. “Our checkoff team works daily to fulfill its goal of building sales and trust of dairy, and this report offers a comprehensive overview of how the plan is delivering results.”

The checkoff’s 2023 program budget summary and audited financial statements also are available at www.usdairy.com/for-farmers/governance. Previous checkoff annual reports can be found at www.usdairy.com/for-farmers/resources.

Those interested in learning more about the checkoff can listen to the “Your Dairy Checkoff Podcast,” subscribe to the Dairy Checkoff Newsletter or visit the Dairy Checkoff Facebook Page and USDairy.com.

Dairy Management Inc.™ (DMI) is funded by America’s nearly 28,000 dairy farmers, as well as dairy importers. Created to help increase sales and demand for dairy products, DMI and its related organizations work to increase demand for dairy through research, education and innovation, and to maintain confidence in dairy foods, farms and businesses. DMI manages National Dairy Council and the American Dairy Association, and founded the U.S. Dairy Export Council, and the Innovation Center for U.S. Dairy.

‘It was the most difficult thing I’ve ever had to do.” That was the devastating confession of a British dairy farmer after selling his herd of cows, thereby ending a nearly 200-year-old family company.

What prompted this tragic decision? Within a few months, his milk price had dropped by 14p per litre, despite continuing high expenses for energy, animal feed, and fertilizers. “I’m not sure why anyone would want to continue,” he remarked.

The milk producer, who wishes to remain anonymous, related his experience to Sussex farmer David Exwood, who published the remarks on Twitter. His predicament is far from unusual. Dairy farmers and other food producers have been dealing with spiraling expenses since the commencement of conflict in Ukraine last February, which drove up energy expenditures, influencing the cost of fertilizer, which requires gas for manufacture.

Financial strains were increased further by last summer’s drought, which forced farmers to purchase extra animal feed due to a shortage of grass.

Due to milk shortages caused by the epidemic, wholesale prices reached all-time highs by late 2022, culminating at 51.6p per litre last December. Farmers could now breathe a sigh of relief since their bills had been met. But the reprieve was brief.

According to official data, the average farm-gate price for milk has been falling in recent months, falling to 37.6p per litre in May. This marked an almost 5% loss in a month, and a nearly 8% dip from the same month a year before.

Paul Rowbottom, a farmer who also sells animal feed, says he sees the effects of financial stress on the farms he visits in Staffordshire, Derbyshire, and Cheshire every day. “Trying to get money into the country is a nightmare,” he continues. “They can’t afford to pay their bills.” He claims that the dairy farmers and other food producers he serves are facing the most difficult circumstances he has faced in his 30 years in the business: “I don’t think I’ve ever seen so many people so irritated as now.”

Recent drops in milk prices have been ascribed in part to the “spring flush,” when cows naturally produce more milk when they are let out into fields, resulting in an overstock. However, dairy producers plainly believe that when milk processors and merchants cut the price paid for their product, they suffer financially.

Cheaper milk, as well as reduced costs for butter and bread, have lately been touted by supermarkets as they compete for price-conscious clients amid the cost of living crisis and a period of persistently high food inflation. A four-pint bottle currently costs £1.45 at supermarkets such as Tesco and Sainsbury’s, which is approximately 20p less than the price in early April and the lowest price since before the epidemic.

Food makers are also warning that a sustained flight of dairy farmers might jeopardize the UK’s existing liquid milk self-sufficiency. According to the National Farmers’ Union (NFU), over 5% of them quit the sector last year.
Andrew Hall, a farmer from Warwickshire, stands on a lush field, surrounded by cows.
Andrew Hall, a farmer in Warwickshire, claims that his children are unwilling to take over the family company. Photograph: provided

Following the price drop, the Dorset Dairy Company has become one of the latest farms to decide to sell off its milking cows. Dan Miller, the company’s operations manager, is the third generation in his family to manage a herd at Stalbridge. He now expects to sell their 180 cows in September, after which the firm will purchase milk from other sources to continue producing yoghurt, butter, and cream.

Miller claims he took the choice because to milk price instability, where the “happy days” of wholesale highs in late 2022 spurred many dairy producers to expand, just as consumers cut back on spending. People’s milk habits are also evolving, whether it’s a reduction in conventional cups of tea or morning cereal or the emergence of dairy-free alternatives.

Miller argues that the sector has been slow to adjust, with small suppliers being particularly susceptible. “With milk, you can’t easily turn off the taps,” Miller explains. “Many people said, ‘Let’s improve, grow, and produce more milk.'” We should have exercised greater caution.

“This is an epic cycle, and I don’t see it getting better quickly enough,” he said, explaining why he is selling his herd. “We don’t know how long this is going to last.”

Farmers throughout the nation are wondering how long they can survive in the face of mounting financial constraints and persistent labor shortages. In a recent study, over three-fifths of dairy farmers affiliated with Arla, the UK’s biggest dairy cooperative, expressed concern about labor shortages, stating it was more difficult to hire workers than in 2019.

Andrew Hall, a cattle and dairy farmer from Alveston in Warwickshire, has also had similar experience. The eldest two of his four children have already graduated from university and have opted not to take over the farm, while employees “my age and older are saying ‘I’m sick of this,'” he adds.
A hand clutching a plastic container with a pint of milk.
To cater to consumers suffering from the cost of living crisis, supermarkets have reduced the price of milk. Photo by Andy Rain/EPA

“I’m finding it difficult financially and mentally, and obviously labor is a huge issue,” he adds, adding that he’s getting 15p less per litre than he did in February. “The majority of dairy farmers work seven days a week, but this is 2023, not 1983 or 1973.” And we’ve been left behind in terms of pay.”

The 56-year-old will also miss his one week of vacation this year since his “relief milking” assistance is recuperating from a car accident. “I can’t find anybody else to milk,” he explains.

Hall has cut the quantity of grain supplied to his cows and is scaling down output to stay under his budget, glad that there is more grass available than last summer. “You never hear of farmers striking,” he observes. “But we have been taken advantage of for far too long.”

A big number of dairy cows are coming to market at Kivells, an agricultural and animal auction company, due to succession issues. Mark Davis, an auctioneer in Exeter, anticipates selling 1,500 dairy cows during the next month. “We are seeing a lot of sales come forward,” he adds. “The milk price and finances are bound to have an effect.”

Davis, who also works part-time on his brother’s family dairy farm, says the next generation’s unwillingness to take over family enterprises is also a factor. “The upcoming sales are generally due to retirement; a couple have been ill; in one, the farmer died and the family did not want to take it on.”
Michael Oakes on his Worcestershire farm. He’s standing in an indoor shed with livestock rows on each side.
Michael Oakes, who farms in Worcestershire, expects that a new regulation would make the supply chain more equitable. Photograph courtesy of Christopher Thomond/The Guardian

Some farmers are hoping that the government would implement new laws in the coming months, bringing greater stability to the dairy supply chain. According to the Department for Environment, Food, and Rural Affairs (Defra), the dairy code is designed to “ensure supply contracts in the dairy sector are fair and transparent, with farmers being paid a fair price for their produce.”

The laws are intended to enable farmers to contest processors’ pricing and to prevent contract modifications from being forced on producers without their approval, while also making it easier for them to express their concerns.

Michael Oakes, a dairy farmer in Worcestershire, is optimistic that the measures, which are due to become law in the fall, would “remove some unfair practice from the supply chain.” He feels that the present scenario, in which farmers often only learn out what they will be paid for next month’s milk a few days in advance, is unsustainable.

Oakes, who also serves as head of the NFU’s dairy board, expects that the restrictions would “create a new relationship with processors, getting rid of the ‘us and them’.” We rely on one another, but it’s never seemed like a real collaboration.”

For the time being, dairy farmers like Hall are dedicated to staying in farming, although admitting that he sometimes fantasizes about a life without caring for a dairy herd. “I could rent out farm buildings for storage and live a simpler and better lifestyle.”

Following record-high milk prices in 2022, dairy farmers’ incomes have plummeted in recent months, with more businesses battling to remain in business and others shutting their doors permanently.

Their condition has drawn analogies to the 2009 economic crisis, which pushed thousands of dairy to declare bankruptcy. Some believe it will be worse this time owing to increased inflationary pressures and rising interest rates, which make it more expensive for firms to borrow money.

“This is a real downturn,” said Jack Hamm, a dairy farmer in California’s San Joaquin County. “The last two months have been every bit as bad as they were in 2009.” Every week, there are dairies for sale.”

As the global crisis took hold in 2009, dairy producers faced an unparalleled financial disaster. Milk prices plummeted due to a sharp drop in export market demand and a global milk surplus. Simultaneously, dairy producers were facing record high feed prices.

While milk prices in 2009 were lower than they are today, Hamm noted that total production expenses were “so much lower” back then.

Dairy producers are now not only paying more for feed, but all of their other expenditures, including labor, gasoline, and fertilizer, have surged.

“It’s tough right now to make ends meet,” Hamm said. “But it’s not the first time we’ve been through it.”

Milk prices have fallen, according to dairy economists and researchers, since the weakening economy and increased food costs have dampened demand for milk and dairy products.

The growing supply of milk hasn’t helped. RaboBank observed in its June report that worldwide milk output is still increasing, but it is slowing.

At the same time, food producers continue to raise prices because they “have learned that higher profits are to be found in ever-higher retail prices,” despite customer resistance by purchasing less, according to CoBank analyst Rob Fox in his May research.

According to Peter Fredericks, market administrator for the California federal milk marketing order, most dairy product prices may continue to fall before rebounding in the fourth quarter, according to his June report.

Dairy producers have sent more low-producing cows and calves to auction to earn more money as their milk checks have shrunk and beef cattle prices have remained robust.

“That’s definitely one of the bright spots, and it’s definitely helping us,” said David Barroso, a dairy farmer in California’s Merced County.

The milking herd has not diminished throughout the country. According to the USDA, total U.S. milk cows were at 8.929 million head in June, up from 8.915 million head at the same time previous year, with U.S. milk output up 0.2%.

Forward contracts and insurance may assist with risk management, but there are expenses connected with them, and they can “only do so much,” according to Tom Barcellos, a dairy farmer in Tulare County, California.

While some producers may postpone farm upkeep and other repairs until financial conditions improve, Barroso said this year’s modifications to assist cool cows from the heat had helped to sustain milk output. It’s too soon to say how much, he says, but “there have definitely been improvements.” He said that without the adjustments, his farm lost 20% to 25% of its milk yield last summer.

“We’ve put a lot of money into it,” Barroso remarked. “I’m not sure we picked the best year to do it, just because of cash flow and financial issues, but hopefully we’ll start paying it off when that upswing happens.”

China’s economy, as one of the world’s largest and most influential, has far-reaching implications for various sectors, including the dairy industry. The recent signs of a slowing Chinese economy have raised questions about how this shift might affect the global dairy market. In this article, we will explore the potential impacts of China’s economic slowdown on the dairy industry and how stakeholders might respond to these challenges.

The Chinese Dairy Market: China has been a significant player in the global dairy market, with a growing middle class and increasing demand for dairy products such as milk, cheese, and yogurt. The country’s vast population and evolving dietary preferences have led to a surge in dairy consumption, making it a critical market for dairy exporters.

Impact on Dairy Exporters:

1. Demand Fluctuations: A slowing economy in China could potentially lead to reduced consumer spending power, affecting the demand for higher-value dairy products. This could result in fluctuating demand for dairy exports from major dairy-producing countries.
2. Export Markets Diversification: To mitigate the impact of a potential decrease in demand from China, dairy exporters might need to diversify their export markets. This could involve seeking new markets in other countries with growing dairy consumption patterns.

Domestic Dairy Industry:

1. Supply Chain Disruptions: If China’s economic slowdown leads to reduced consumer spending, the domestic dairy industry might face challenges related to supply chain disruptions and decreased profitability.
2. Focus on Domestic Production: A shift in consumer preferences towards more affordable products could prompt the Chinese government and dairy producers to invest in bolstering domestic dairy production to meet local demand.

Global Dairy Prices:

1. Price Volatility: China’s economic fluctuations could impact global dairy prices due to its status as a significant importer. A decrease in Chinese demand could potentially lead to an oversupply of dairy products on the global market, resulting in price volatility.
2. Export Market Competition: If Chinese buyers reduce their imports, exporters might need to compete more aggressively in other markets, potentially leading to price pressures.

Response Strategies:

1. Market Diversification: Dairy exporters could explore and expand into emerging markets with growing dairy consumption patterns to reduce reliance on a single market.
2. Innovation and Product Differentiation: Producers can focus on developing innovative dairy products that cater to changing consumer preferences and affordability concerns.
3. Supply Chain Efficiency: Increasing supply chain efficiency and reducing production costs could help mitigate potential profit loss resulting from a decrease in demand.

The dynamics of China’s economy undoubtedly impact the global dairy industry. While a slowing economy presents challenges, it also underscores the need for adaptability and innovation. Stakeholders across the dairy supply chain should closely monitor economic trends in China and strategize to ensure resilience in the face of potential shifts in demand and market dynamics. Flexibility, diversification, and a commitment to quality and innovation will be key factors in navigating the impact of China’s slowing economy on the dairy sector.

A sizable Dairy Margin Coverage (DMC) payout is on its way to producers, as projected. In fact, the DMC revenue over feed cost computation in June established a new low of $3.65/cwt. Milk insured at the $9.50 level will get a $4,366.09 indemnity payment for each million pounds enrolled. This is a $1.18/cwt decrease from the previous record low in May.

Premium alfalfa hay dropped $7 per ton to $310, while maize decreased $0.05 per bushel to $6.49. Soybean meal fell $10.12 per ton to $413.46, bringing feed prices down $0.22 to $14.25/cwt.

The margin over feed cost is $1.18/cwt lower than the previous record low in May. This is the lowest milk revenue margin level since the DMC program and its predecessor, the Margin Protection Program for Dairy (MPP-Dairy), were established. Payments to date amount $16,780 per million pounds insured at the highest level.

According to Phil Plourd, president of Ever.ag Insights, farmers can also use risk management systems such as Dairy Revenue Protection (DRP).

“These are the kinds of times that remind us that risk management necessitates vigilance and diligence.” I doubt many people expected margins to be this low in 2023. “However, here we are,” he adds.

The DMC program was established by the 2018 farm bill to provide farmers with protection when the gap between the all-milk price and the average feed price falls below the producer-selected margin trigger.

According to Jim Mulhern, CEO of NMPF, DMC’s catastrophic coverage level is at the top of his team’s farm bill wish list.

“The basic DMC’s catastrophic coverage level includes up to 5 million pounds of annual protection, which is equivalent to a 200 to 220 cow herd.” “We’re looking at DMC’s tier 2 adjustments—anything above basic—because those markets collapsing would be more akin to a truly ‘catastrophic’ event,” Mulhern explains.

“I became a farmer because I love cows and want to be out with them all the time,” Harrold said. “And every day, I spend less and less time doing that because we keep getting laws like this that require more documentation and layers.”

Harrold is also the president of the Oregon Dairy Farmers Association’s board of directors.

Senate Bill 85 was signed into law by Governor Tina Kotek in July.

The new regulations mandate that major agricultural businesses get stricter water quality permits and develop a water supply strategy. The regulations also prohibit farmers from using drinking water for cattle unless they have a permit or a water right.

It would impose additional regulations on enterprises with more than 700 dairy cows or 1,000 beef cows.

Environmentalists believe the new legislation is a small step toward safeguarding Oregon’s drinking water.

“It’s really notable that our coalition and legislators were finally able to stand up to big ag and pass a bill that even enacts modest reforms on the factory farm industry,” said Tara Heinzen of Food & Water Watch. “Because this is such an incredibly powerful industry.”

Heinzen also claims that there is a lot more work to be done.

“This bill doesn’t go nearly far enough,” she said. “However, it is encouraging to see the state finally take factory farm groundwater overuse seriously and impose even a modest and temporary limit on exploitation of the so-called stock watering loophole, which has allowed factory farms to take vertically unlimited water from scarce groundwater resources.”

Threemile Canyon Farms, situated in Boardman, has 35,000 milking cattle, and Jeff Wendler, director of livestock operations, believes the new standards will benefit his firm. He claims that the new restrictions would be more difficult and costly for smaller livestock farms. Smaller dairies, for example, may need to construct water systems with flow meters to measure cattle drinking water use.

“If you’re not set up to track drinking water, it’s going to be an additional burden,” he says.

Wendler said that many of these restrictions were enacted in response to the conduct of one bad actor, Lost Valley Farm, which was closed due to huge pollution and difficulties. That farm is currently mostly managed by the sons of Cody Easterday, a rancher who defrauded Tyson Fresh Meats and another corporation out of about $244 million in cattle.

Threemile Canyon Farms, on the other hand, has worked closely with state officials to operate a closed loop for dairy waste, according to Wendler.

“We’ve always gone above and beyond what the regulations were doing anyway,” Wendler said. “Most of our industry adheres to the regulations; they do things the right way.”

The US dairy industry plays a vital role in the nation’s economy and food production. However, like many other sectors, it faces increasing pressure to adopt sustainable practices to address environmental concerns, animal welfare, and consumer demands. This article examines some of the sustainable strategies that the US dairy industry is implementing to ensure a more environmentally friendly and socially responsible future.

Transition to Regenerative Agriculture

Regenerative agriculture is a farming approach that aims to rebuild soil health, improve biodiversity, and increase resilience to climate change. In the dairy sector, adopting regenerative practices involves minimizing the use of synthetic fertilizers, promoting rotational grazing, and integrating cover crops to enhance soil quality. By focusing on these practices, dairy farmers can reduce their carbon footprint, conserve water resources, and support wildlife habitats.

Renewable Energy Adoption

Many dairy farms are recognizing the importance of reducing greenhouse gas emissions associated with energy use. Consequently, there has been an increasing trend towards adopting renewable energy sources such as solar panels, wind turbines, and biogas digesters. These renewable energy systems not only reduce carbon emissions but can also provide energy cost savings for the farmers.

Waste Management and Biogas Production

Dairy farms generate substantial amounts of organic waste, including manure and food scraps. Proper management of these wastes is crucial to prevent environmental contamination and methane emissions. Some farms have turned to anaerobic digesters, which convert organic waste into biogas and nutrient-rich fertilizers. Biogas can be used as a renewable energy source, and the resulting fertilizer can help reduce the need for synthetic fertilizers.

Animal Welfare Initiatives

Consumers are increasingly concerned about the ethical treatment of animals in the food supply chain. The dairy industry is responding by adopting animal welfare initiatives that promote better living conditions for dairy cows. These initiatives may include providing more space for cows to roam, enhancing veterinary care, and reducing the use of hormones and antibiotics.

Sustainable Packaging

Beyond on-farm practices, the dairy industry is also focusing on sustainable packaging options to reduce its environmental impact. Some companies have started using eco-friendly materials for milk cartons, yogurt cups, and cheese packaging. These initiatives aim to reduce plastic waste and promote recycling.

Water Conservation

Water scarcity is a global issue, and the dairy industry is taking steps to improve water management practices. Implementing water-saving technologies, optimizing irrigation systems, and promoting responsible water use are some of the strategies being adopted to minimize water usage in dairy farming operations.

Conclusion

The US dairy industry is actively embracing sustainable strategies to mitigate its environmental impact, improve animal welfare, and meet the changing demands of consumers. From adopting regenerative agriculture practices to investing in renewable energy and sustainable packaging, dairy farmers and industry stakeholders are taking significant steps towards a more sustainable future. As consumer awareness and demand for sustainable products continue to grow, it is likely that the US dairy industry will further innovate and integrate even more eco-friendly practices into its operations.

The Chinese economy has slowed dramatically, which is bad news for global dairy prices. The country’s GDP expanded 6.3% in the second quarter compared to the same period in 2022, which was still less than economists projected. The figure was sobering in light of the fact that second-quarter GDP rose by just 0.4% last year, the second-lowest growth rate in the previous ten years, according to Betty Bering, analyst with the Daily Dairy Report. The lowest GDP reading was in 2020, during the height of the epidemic. If GDP continues to stagnate, the government may fail its 2023 GDP target of 5%, which is currently regarded moderate, she added.

“China has been importing fewer dairy products, driven in part by its faltering economy,” Bering said. “Despite the Chinese government’s efforts to restart the country’s economy following the severe Covid-19 lockdowns, dairy demand has sputtered.” While the Chinese economy started to recover in December 2022 when pandemic-era restraints were eased, it has since faltered. Other economic data signals indicate that problems is looming in China, and declining dairy demand may keep global dairy prices stable for some time.”

China’s exports have also declined. China’s exports decreased 12.4% year on year in June, after a 7.5% drop in May. The country’s real estate crisis is also ongoing. CNN reported earlier this month that China extended policies enacted in 2022 to support the country’s real estate industry, which accounts for 30% of GDP. According to the New York Times, about 20% of properties in Nanchang are empty, the highest percentage of vacancy among 28 big and medium-sized Chinese cities.

In terms of Chinese dairy imports, whole milk powder (WMP) purchases increased 37.6% year on year in June to roughly 105.6 million pounds, according to Trade Data Monitor. Following a terrible first four months for WMP imports, June’s strong gain represented the second straight month of increases over the previous year, according to Berning. However, China’s WMP imports of 610 million pounds year to far through June underperformed the same time in 2022 by 45%, or over 500 million pounds.

“With a 90% market share, New Zealand has borne the brunt of the decline in WMP imports, and tepid Chinese demand has been cited as a critical reason for low milk prices in the 2022-23 and 2023-24 seasons,” Berning said.

Chinese imports of ultra-high temperature milk (UHT) were down year over year in every month this year. In June, UHT milk imports fell by more than 17%. Skim milk powder imports from China have fared better than WMP and UHT milk. Year-to-date imports of 460.4 million pounds were up roughly 21% year on year through June. China’s SMP imports of 63.6 million pounds in June increased by 20% over June 2022 but fell short of the 75.5 million pounds imported in June 2021.

Looking farther forward, Berning believes China’s population has reached a tipping point, with birth rates declining and death rates rising as the population ages. While China will remain a significant market for dairy goods, its significance may diminish, especially if the nation continues to invest in its own dairy sector, she noted.

The dairy sector in Australia has produced a comprehensive action plan to eliminate food waste. The Dairy Sector Food Waste Action Plan aims to cut food waste in half by 2030.

Dairy is the first agricultural industry in Australia to take this critical step. It is in response to the Australian government’s objective of cutting food waste in half by 2030. Food waste from the dairy supply chain had previously been recognized as one of the six top Australian food waste sources, according to Dairy Australia managing director Dr David Nation.

The Action Plan’s goal is to evaluate and identify commercial and practical food waste reduction solutions across the dairy supply chain. “This plan will galvanize the sector to pursue opportunities to address our food waste challenges,” says Nation.

Dairy is Australia’s third-largest rural sector, with 4,420 dairy farms and 455 processing plants located around the nation. The overall annual milk output in season 2021-2022 was 8.55 billion litres, with 86% produced in south-east Australia.

The industry has obtained insights into where, what, and how much food waste is happening as a result of the formulation of the Action Plan, and has identified ten important steps to decrease waste, minimize environmental consequences, and reduce costs.

Each year, 0.71 million tonnes of real dairy food waste are created in the dairy production chain. Significant amounts of dairy food waste are produced at the production, food service, and residential levels.
Production of cheese

The states with the largest percentage of dairy food loss are those that process the most milk (Victoria, Tasmania, and New South Wales). Cheese manufacturing generates the most dairy food waste, mostly as a consequence of whey (a byproduct of cheese making) being discharged to sewers and land.

Milk processing is also responsible for considerable amounts of dairy food waste, with the bulk of this waste stream originating from finished product that was not eaten, followed by losses owing to process wastes. In comparison to the rest of the supply chain, raw milk losses on the farm are minimal.

It presently costs dairy producers roughly AUS$700 million (US$471 million) per year to handle all possible food waste, with an extra AUS$120 million (US $81.1 million) in income lost due to discarded completed goods.

The necessity and continuous requirement to regularly monitor dairy food waste and loss throughout the supply chain was a critical conclusion from building the Action Plan. Given the diversity and breadth of dairy food items, establishing a consistent measure for measuring and monitoring dairy food waste is a major concern for the dairy sector.

The dairy sector and wider supply chain need a standardized monitoring tool to facilitate regular and continuous monitoring of dairy food waste and to track industry progress toward dairy food waste reduction objectives. According to UK experience, projects focusing on frequent food waste monitoring may result in a 15% decrease in food waste.

Priority actions include investing in R&D and technical solutions for dairy manufacturing sites, implementing efficient inventory management systems to monitor and report on waste, collaborating with food rescue organizations, promoting sustainable packaging solutions, and educating consumers through product labeling and storage advice-behavior changes throughout the supply chain.

On farms, it is critical to minimize milk losses and immediately evaluate if milk picked up early (at temperatures over 5°C) can fulfill Food Standards Code and/or EU criteria. Antibiotics used selectively on cows, milk vat temperature sensors, and generators to handle power outages may all assist to decrease losses.

Dairy Australia produced the Action Plan in partnership with the Australian Dairy Products Federation and Stop Food Waste Australia, as well as input from dairy companies around the nation.
Dairy farmers will save a lot of money.

The development of the Dairy Sector Food Waste Action Plan, according to Janine Waller, executive director of the Australian Dairy Products Federation, has offered the sector information about where, what, and how much food waste occurs throughout the dairy supply chain.

According to Mark Barthel, chief operating officer of Stop Food Waste Australia, studies show that a 1% reduction in food waste could result in savings of up to AUS$10 million per year (US$6.7 million) for dairy manufacturers, increasing their ability to compete in local and international markets.

“The benefits of reducing food waste go beyond financial gains,” he says. “Effectively preventing and managing dairy food waste can reduce associated greenhouse gas emissions by up to 20%, while also conserving water and energy and significantly reducing the ecological footprint.”

E.B. Flory’s voice broke several times on Friday describing how exceptional dedication in different parts of the dairy supply chain kept milk losses to a minimum this week.

Despite catastrophic flooding and road damage across the state, most of what Vermont’s farmers and their herds produced made it to a processing facility, the dairy section chief at the Vermont Agency of Agriculture, Food & Markets said, even if it was not their usual one.

“Our cows, goats and sheep in the state, they don’t stop milking, and we have to get that milk, we have to get where it needs to be to be processed,” she said. “This has been a very stressful week, but we’ve had a lot of unexpected things come together that made things work in a successful way.”

The amount of milk that farmers and processors have had to dump was much less than everyone feared on Monday, agency Secretary Anson Tebbetts said during a press event on Friday. There also had been no reports of large-scale loss of livestock to flooding, he said.

Milk buyers within Vermont and in other states did not expect to see the volume of milk that arrived after news of the deluge and its aftermath had spread, Flory said. But from the farmers to the milk haulers to staff at processing plants and her own staff, many people worked around the clock to save the majority of the supply.

“We really only had a handful of instances where milk couldn’t get picked up because farms were inaccessible,” said Amber Sheridan, spokesperson for Cabot Creamery and the Agri-mark dairy cooperative. “It was really a small volume, given the magnitude of flooding.”

Flory and Sheridan gave milk hauling companies and their drivers a great deal of credit for that. 

With main state routes blocked, it took much longer for haulers to drive their regular routes, and more trucks and drivers had to be brought in quickly. Haulers and their dispatchers, who Flory compared to air traffic controllers, worked long hours and communicated frequently about which routes were creating the greatest difficulties. Flory said she was able to communicate those locations directly to the Agency of Transportation, which put them onto the priority list. 

For Agri-mark and Cabot, the biggest challenge was the closure of Route 2, which largely reopened Thursday afternoon, Sheridan said. When a truck could not reach the Cabot processing plant, the driver would be rerouted to Middlebury, or, when Interstate 89 closed on Monday, down to a plant in West Springfield, Massachusetts, so the milk cargo would not be wasted. 

In the background, there were the new larger, more energy-efficient bulk tanks that many farmers across the state were able to buy as part of a federal grant through the Northeast Dairy Business Innovation Center, based at the state agency. Farms that had upgraded were able to keep milk cool between pickups for three days, rather than two. 

“That was a really big deal,” Flory said. “They made a difference.”

An emergency waiver from the Food and Drug Administration allowed processors a bit more leeway in how long they could hold milk before dumping as well. Product testing still ensured consumer safety, she said.

Beyond that, it was all about the people. 

“It’s been all hands on deck with many different sectors trying to get this done,” Flory said. 

Haulers were incredibly dedicated, creatively trying to get to farms in whatever way possible, she said. “They had their own crises at home, you know. Their basements were flooded, and they were on the road getting the milk,” Flory said. 

And it wasn’t just drivers. In the Northeast Kingdom, agency milk inspector Eric Perkins decided he would help them, going ahead in his car to the next farm to scout the best route to avoid backups and turnarounds. That initiative was so successful that the state’s other inspectors adopted the practice in the other corners of the state. 

“He stepped up and did something really innovative that we’ve never done before, and it really worked,” Flory said. 

Evaluating flooded crops and fields

While damaged roads were the immediate crisis to overcome, they are becoming more passable by the day. Now farmers are turning to evaluating flooded crops, hayfields and stored bales to determine how much damage the rains caused to what their livestock needs to eat. 

“In our hilly state, some of our most fertile farmland lies in the river valleys,” Tebbetts said at the Friday morning event. Across Vermont, “countless fields of corn, hay, vegetables, fruit and pasture were swamped and buried,” he said.

Heather Darby, an agronomist with the University of Vermont Extension service, is visiting many of them. On Friday, she traveled from Swanton to Hardwick by car to lend her expert eye. She helped write two different informational sheets for farmers on flooded corn and flooded forage.

So far she has been pleased to see that most of the corn and soybean fields she has examined appear likely to recover. Unlike Tropical Storm Irene, which occurred in late summer, those crops are younger and should regrow and bounce back. 

“Corn does have the ability to sort of stand itself back up, so it’s really a watch-and-see game for a lot of the fields right now,” Darby said. 

Hayfields are another story. They are her biggest concern right now. 

Most farmers had been waiting to take the second or third cut of this year’s hay until after the latest bout of rain. Where a field was flooded, that entire cutting is lost. 

“They’ve got to chop it off and get it off the field so that those grasses can regrow,” Darby said. 

If farmers want to try to save it, the crop should be stored separately from non-flooded silage and tested repeatedly for bacteria and toxins produced by fungus or mold. 

At the farm she was headed to in Hardwick, flooded by the Lamoille River, even that may not be possible. 

“The fields have so much debris on them, and there is so much silt on the fields, so we are not sure if the grass will die,” she said. She is going to try to advise the owners on whether they need to replant entirely. 

For bales and other stored silage that got wet, the future is questionable. Some may be usable, but also need to be repeatedly tested. If hay was fully submerged for several days, it’s unlikely that it is safe for animals to eat, even if wrapped, Darby said. 

Jane Clifford, who runs an eighth-generation dairy farm in Starksboro with her husband, said her farm was spared, but she has close friends in the region who had hundreds of active acres underwater. 

While the losses are large, and dairy farming has unique challenges, farmers are aware they are just one of many small businesses who are reeling right now, she said. 

“It’s frustrating. It’s hard. But for those of us in the industry, it’s a business,” Clifford said. “I look at all the businesses in downtown Montpelier or Barre that were impacted. I look at it that we are all kind of in the same boat.”

Source: vtdigger.org

Milk costs are falling and will keep on falling, said Martin Ziaja, leader of the Opole Cows Raisers Affiliation and individual from the leading body of the Clean League of Steers Reproducers and Milk Makers, talking with neighborhood press.

Somewhat, the ongoing emergency is an outcome of the Coronavirus pandemic, Ziaja said, as lockdowns in Europe prodded the interest in the dairy market. “The pandemic has changed buyer propensities. A huge piece of society worked in a supposed work space. Going through the day at the PC, it is not difficult to go after cheddar or yogurt as a fast bite,” he made sense of.
Cost of milk creation

In 2023, customer propensities are getting back to the way there were before the pandemic, while an ascent underway costs sped up expansion. Thus, utilization of most dairy items in Poland is in the red zone this year.

“The typical expense of milk creation, then again, expanded from PLN1.20-1.25 (US$0.29-0.31) to about PLN2 (US$0.49), and in certain homesteads to PLN2.30 (US$0.56) per liter,” he said.

In 2022, milk processors were anxious to follow through on sensible costs for crude milk, with the typical rate near PLN3 per liter during the year. Right now, the farmgate milk costs don’t take care of creation costs. To no one’s surprise, incidentally, little ranchers seem to experience the most.
Little dairy ranches shutting

“For a long time, specialists urged ranchers to make neighborhood, little cooperatives. I accept that this is some unacceptable way. Little dairy organizations don’t have some specialty, remarkable items that no one but they can make, so they can’t endure the tempest. Presently, the circumstance is generally emotional for these little dairy organizations,” Ziaja said.

With little dairy processors going down, an enormous number of milk ranchers could choose to sell their crowds in the pre-winter of 2023. A few organization associations approached specialists to step in with mediations and financial guide for impacted tasks, yet Ziaja accepts such advances would give just transitory help.

“Tragically, the recipe for advancing the circumstance is severe: we want to create less. There should be a harmony among request and supply. It is a waste of time to deliver more than the purchaser consumes. Eventually, simply the most grounded will stay available,” Ziaja said.

Today, U.S. Senators Tammy Baldwin (D-WI) and Marsha Blackburn (R-TN) introduced the Dairy Business Innovation Act of 2023, bipartisan legislation that will reauthorize and strengthen the Dairy Business Innovation (DBI) Initiatives to help more American dairy farmers and processors add value to their businesses, including creating new products, expanding their markets, and modernizing their production facilities. Senator Baldwin successfully created the DBI Initiatives through the Dairy Business Innovation Act in 2018, which passed as part of the 2018 Farm Bill and has since delivered almost $40 million to help Wisconsin dairy businesses innovate and reach new customers.

“Wisconsin Dairy is essential to our Made in Wisconsin economy and our state’s identity. I’ve heard directly from dozens of Wisconsin dairies that have expanded their businesses thanks to the Dairy Business Innovation Initiatives, and I’m proud to lead the charge to ensure this program has the resources it needs to help more businesses innovate and grow for the future,” said Senator Baldwin. “Our dairy farmers and producers face unique challenges, and expanding this program will give more small- and medium-sized dairy businesses the tools and opportunity to reach new markets, implement efficiencies, and create world-class products.”

“The dairy industry is an essential part of the American economy. It is crucial that we provide the resources that dairies in Tennessee need to expand and create new products,” said Senator Blackburn. “With many small Tennessee dairies struggling to remain open, this bill will allow these businesses to diversify and expand their market competitiveness.”

The DBI Initiatives provide resources to serve prospective and established businesses that produce a product made from milk from a dairy animal, including dairy farms with their own production facilities and dairy processors with cheese, ice cream, and bottling facilities. Since the program was established in 2019, DBI Initiatives have supported over $150 million in awards through regional centers across the country. Each regional initiative is tasked with providing technical assistance and grants to farmers and processors, including:

• Supporting new and expanding dairy businesses—Centers provide assistance with business plan development, accounting, market evaluation, and strategic planning.
• Promoting innovation in dairy products—Dairy businesses receive assistance with product innovation, marketing and branding, packaging, distribution, supply chain innovation, food safety training and consultation, and dairy product production training.
• Assisting with dairy plant modernization and process improvement—Dairy businesses receive assistance with processing facility improvement, including assistance with plant upgrades, food safety modernization, energy and water efficiency, byproduct reprocessing and use maximization, and waste treatment.

The Dairy Business Innovation Act of 2023 will increase funding for the DBI Initiatives, authorizing $36 million per year, up from $20 million, to help more American farmers and processors modernize, reach new markets, and create economic growth.

In addition to Senators Baldwin and Blackburn, the Dairy Business Innovation Act of 2023 is co-sponsored by Senator Peter Welch (D-VT). The legislation is endorsed by the National Milk Producers Federation, Organic Valley, International Dairy Foods Association, Midwest Dairy Coalition, and Wisconsin Cheese Makers Association.

“We thank Senators Baldwin and Blackburn for their leadership to ensure the Dairy Business Innovation Initiatives program can continue to grow and thrive,” said Jim Mulhern, President and CEO of National Milk Producers Federation. “Dairy has a long history of ingenuity and pioneering cutting-edge advancement, and this program helps support researchers and industry leaders as they work to continue to drive innovation.”

“IDFA applauds Senators Baldwin and Blackburn for introducing the Dairy Business Innovation Act of 2023,” said Michael Dykes, D.V.M., President and CEO of the International Dairy Foods Association (IDFA). “The bill promotes innovation in the dairy processing sector and will help industry members work together to address common challenges and create new market opportunities for healthy and nutritious dairy products.”

“This legislation to resource the Dairy Business Innovation Initiatives is unique in that it helps secure regionally specific dairy infrastructure needed for the future. We at Organic Valley know dairy processors who are doing more with support from this initiative and farmers who are better positioned to bring milk to market because of it,” said Adam Warthesen, Senior Director of Government and Industry Affairs at Organic Valley. “Senator Tammy Baldwin and Senator Marsha Blackburn should be commended for a bill that enhances the assets in the dairy industry and builds upon the economic vitality that dairy provides our nation.”

“Senator Baldwin has been an enthusiastic, steadfast supporter of the Dairy Business Innovation Initiatives since she championed the program’s creation in the 2018 Farm Bill. Since then, she’s successfully pushed to keep the focus – and funding – on strengthening the entire dairy supply chain,” said John Umhoefer, Executive Director of the Wisconsin Cheesemakers Association. “This $36 million proposed investment is a welcome boost that will help dairy businesses nationwide pursue new ideas and cutting-edge projects, building a healthier dairy industry for generations to come. We’re deeply grateful for Senator Baldwin’s support for dairy processors and their farmer partners.”

“The Midwest Dairy Coalition greatly appreciates the leadership of Senators Baldwin and Mashburn in introducing the Dairy Business Innovation Act of 2023 to expand resources for four regional DBIA Initiatives. These regional initiatives have been an excellent tool to encourage innovation and diversification in the dairy sector, and to do so in a way that benefits our nation’s dairy farmers,” said Steven Etka, Policy Director of the Midwest Dairy Coalition.

“FarmFirst Dairy Cooperative is appreciative of Senators Tammy Baldwin and Marsha Blackburn for their work in securing additional funding for the Dairy Business Innovation Act,” said Jeff Lyon, General Manager of FarmFirst Dairy Cooperative. “It is imperative that we continue to support the advancement of dairy businesses through innovation, foster the development of new dairy products and enhance the efficiency of dairy plants through modernization. The increased funding for grants is crucial to address the never-ending challenges to grow the dairy industry and provide vital support to dairy farmers.”

“As one of only four Dairy Business Innovation Initiatives in the country, Tennessee’s grants to dairy businesses go a long way to help producers diversify products and markets, as well as increase the use of locally-produced milk,” said Charlie Hatcher, D.V.M., Commissioner of the Tennessee Department of Agriculture. “The initiative puts more money in dairy farmers’ pockets to create more jobs and strengthen local economies. The Tennessee Department of Agriculture supports the reauthorization of the Dairy Business Innovation Act and the recommended increase in funding through SDBII that will allow for success for dairy processors and producers.”

“Since its passage, the Dairy Business Innovation Act has been a major catalyst in increasing revenue for rural dairy businesses and in overcoming impediments to their expansion. As the program manager for the Southeast region, the University of Tennessee Institute of Agriculture (UTIA) strongly supports the continuation and expansion of this valuable assistance to producers and the dairy industry. These grants, totaling more than $38.7 million in five years with more than $19.3 million focused on grants for dairy businesses, have had an historic impact on our industry in Tennessee and in the surrounding states, and we are grateful to Senators Blackburn and Baldwin for their support,” said Dr. Elizabeth Eckelkamp, Southeast Dairy Business Innovation Initiative program director and dairy Extension specialist with UTIA.

Source: weau.com

The US dairy industry consolidation over the past two decades has left a profound impact on family-scale farms, the environment, and the economy. This in-depth analysis unravels the complex dynamics of the industry, revealing a concerning trend of ‘get big or get out’ that has been driven by misguided policies and market forces. The average American dairy turned a profit only twice in the past two decades despite milk production rising by almost 40%, according to analysis by Food and Water Watch (FWW).

The US dairy industry has undergone a significant transformation over the past two decades, with a clear trend towards consolidation. This shift has been largely driven by policies aimed at boosting milk production and expanding export markets. However, this approach has had detrimental effects on family-scale farms and the environment, while benefiting agribusinesses and corporate lobbyists. In the past 20 years, US dairy exports rose eightfold – more than almost any other commodity – which has coincided with rapid consolidation across the industry.

The Economic and Environmental Cost of Dairy Monopolies

The consolidation in the US dairy industry has occurred at a faster pace than in every other agricultural sector apart from hog and egg production. This consolidation is happening at both the farm level – fewer farms, more mega-dairies — and at the processing level — fewer but larger corporations and cooperatives that purchase, process, and market dairy products. Nationally, the total number of US dairy farms fell by more than half between 1997 and 2017, while the average number of cows per farm increased by 139%, according to analysis of USDA data. More than 70% of US milk is produced on farms with at least 500 cows, with the largest dairies boasting herds of more than 25,000.

“The economic cost of dairy consolidation is a story filled with the incredibly orchestrated and devastating farmer loss and hardship, and a worsening environmental outlook. But it wasn’t always this way, and it doesn’t have to be this way. We have to reject false solutions and instead reform policies to support farmers, the environment, and the U.S. economy.”

The Role of Policy Shift in Dairy Farm Consolidation

In the past 20 years, spiraling debt and bankruptcies have been linked to farmer suicides and the decline in rural populations. “We cannot export or consume our way out of this problem, we need policies to better manage supplies to reflect actual demand so that dairy farming can go back to being a viable livelihood,” said Sarah Lloyd, a dairy farmer in Wisconsin who helps run the family’s midsize farm with 450 cows.

Farmers have struggled to break even due to production costs rising faster than milk prices – which were slightly lower in 2021 compared with 2000. This is partly due to a major shift in US dairy policy away from price stabilization achieved through minimum price guarantees and buying and storing excess milk that would be donated or resold to manage oversupply, to one that encourages production and expanding export markets.

The Influence of Corporate Schemes on Dairy Farmers

But dairy farmers are forced to pay into corporate schemes that work against their interests. FWW estimates that between 2005 and 2018 dairy farmers paid around $4bn into the mandatory Dairy Checkoff program which funds campaigns pushing US milk, butter, and creamers to consumers and fast-food firms that mostly benefit mega-dairies. At the state level, at least $75m in New York taxpayer dollars has flowed to a handful of corporate and cooperative entities in the last 20 years, with the promise of a few thousand jobs – some of which were quickly lost when dairy plants closed.

The Urgent Need for Dairy Policy Reform

The urgent need for dairy policy reform is clear. The current state and federal dairy policies are driving family-scale farms to extinction while fueling the climate crisis. It’s time to reject false solutions and instead reform policies to support farmers, the environment, and the U.S. economy.

The Environmental Implications of Dairy Industry Consolidation

The environmental implications of the US dairy industry consolidation are equally concerning. Despite the number of cows remaining stable, methane emissions from dairy manure have more than doubled since 1990. This increase is largely due to theway factory farms manage waste, with larger farms less likely to graze their cattle and more likely to store manure in liquid form, which encourages the release of methane. The dairy industry is responsible for 2% of total US greenhouse gas emissions, according to the EPA.

In recent years, as scientists have warned about the oversized role played by industrial farming in global heating, agribusinesses including dairy have looked towards unproven industry-led fixes like carbon offset markets and feed additives to lower the methane content in cow burps, rather than addressing the main problem, which is factory farming large herds.

In conclusion, the US dairy industry consolidation has had profound economic and environmental impacts. It’s time to take a hard look at the policies and market forces driving this trend and work towards a more sustainable and equitable future for the dairy industry. This will require a fundamental shift in policy, away from the current focus on boosting production and exports, towards a model that supports family-scale farms, protects the environment, and ensures a fair return for farmers.

Key Takeaways:

• The US dairy industry has undergone significant consolidation over the past two decades, largely driven by policies aimed at boosting milk production and expanding export markets. This has coincided with rapid consolidation across the industry, with more than 70% of US milk produced on farms with at least 500 cows.
• This consolidation has had detrimental effects on family-scale farms and the environment, while benefiting agribusinesses and corporate lobbyists. Farmers have struggled to break even due to production costs rising faster than milk prices.
• The economic cost of dairy consolidation has led to farmer loss and hardship, and a worsening environmental outlook. Dairy farmers paid around $4bn into the mandatory Dairy Checkoff program which mostly benefits mega-dairies.
• Dairy farmers are forced to pay into corporate schemes that work against their interests, such as the mandatory Dairy Checkoff program. At the state level, at least $75m in New York taxpayer dollars has flowed to a handful of corporate and cooperative entities in the last 20 years.
• The urgent need for dairy policy reform is clear, as current policies are driving family-scale farms to extinction while fueling the climate crisis.
• The environmental implications of dairy industry consolidation are concerning, with methane emissions from dairy manure more than doubling since 1990 due to the way factory farms manage waste. The dairy industry is responsible for 2% of total US greenhouse gas emissions.
• It’s time to reject false solutions and reform policies to support farmers, the environment, and the U.S. economy.

Source: tanktransport.com

The dairy sector in the Netherlands, renowned for its high-quality products and efficient production methods, is facing a range of challenges that require careful planning and adaptation. As one of the world’s leading dairy exporters, the Dutch dairy industry plays a crucial role in the country’s economy. However, various factors, including changing consumer preferences, sustainability concerns, and international market dynamics, are posing significant challenges to the sector. In this article, we will explore some of the key challenges that the Dutch dairy sector is currently bracing for and the strategies being implemented to mitigate their impact.

1. Shifting Consumer Preferences: One of the primary challenges faced by the Dutch dairy sector is the evolving preferences of consumers. Health-conscious consumers are increasingly opting for plant-based alternatives to traditional dairy products. The rise of veganism and lactose intolerance awareness has led to a decline in milk consumption in certain segments of the population. To address this trend, dairy companies in the Netherlands are investing in research and development to innovate and produce dairy alternatives that cater to changing consumer demands.
2. Sustainability and Environmental Concerns: The dairy industry, like many other agricultural sectors, is under scrutiny due to its environmental impact. Concerns about greenhouse gas emissions, water usage, and animal welfare have prompted calls for sustainable and responsible dairy production. The Dutch dairy sector recognizes the importance of addressing these concerns and has made substantial efforts to reduce its ecological footprint. Initiatives such as resource-efficient farming practices, circular economy models, and investments in renewable energy are being implemented to enhance sustainability throughout the supply chain.
3. International Trade and Market Dynamics: The Dutch dairy sector heavily relies on international trade, with a significant portion of its production destined for export markets. However, global trade dynamics, including trade disputes, geopolitical tensions, and fluctuating demand, pose challenges for the sector. Tariffs and trade barriers imposed by certain countries can hinder market access and impact export volumes. To mitigate these challenges, the Dutch dairy sector is diversifying its export destinations, focusing on emerging markets, and investing in market intelligence to identify new opportunities.
4. Technological Advancements and Digitalization: The dairy sector is experiencing a rapid transformation due to technological advancements and digitalization. Automation, precision farming, and data analytics are revolutionizing dairy production processes, improving efficiency, and reducing costs. The Dutch dairy industry is embracing these technologies to stay competitive and enhance productivity. Additionally, digital platforms are being developed to facilitate supply chain transparency, traceability, and consumer engagement, allowing stakeholders to make informed decisions and build trust with consumers.

The Dutch dairy sector faces a series of challenges that require proactive measures and adaptation. By addressing shifting consumer preferences, embracing sustainability, diversifying export markets, and harnessing technological advancements, the sector can navigate these challenges and maintain its position as a global dairy powerhouse. Collaboration between industry stakeholders, government support, and continuous innovation will be key to ensuring a resilient and thriving Dutch dairy sector in the face of evolving market dynamics.

California has long been the leading supplier of dairy products in the United States, producing nearly one-third of the nation’s total output. But recently, California dairy producers have been facing a number of challenges that could ultimately lead to other states becoming top suppliers.

According to Dairy Global, the dairy industry in California may soon lose its dominant position in the United States. Although it has been the leading state in milk production for over 20 years, California is facing fierce competition from neighboring states such as Idaho and Texas. In recent years, these states have been investing in the latest technology and infrastructure to modernize their dairy operations and increase production efficiency. As a result, California’s share of the US milk market has declined from 21 percent in 1992 to just under 16 percent in 2019. These developments suggest that California’s reign as the top US dairy producer may be coming to an end.

The biggest challenge for California is water shortages due to severe droughts in recent years and the resulting low availability of water for dairy farms. This lack of water has made it difficult for farmers to irrigate their pastures and provide adequate feed for their cows. Without enough food or water, the health of the cows can suffer, leading to lower milk production and quality.

Another issue facing California’s dairy industry is rising feed prices. Feed costs are a major part of a dairy farm’s operating budget, and with feed prices on the rise due to weather-related crop losses and other factors, it is becoming more difficult for farmers to stay in business.

The number of dairy-beef cattle on the market is growing. Researchers at Oklahoma State University Extension (OSU) are watching closely, finding that 100 percent dairy steers are not holding a lot of value.

“A 100-percent dairy steer is very low in value, so the dairies have treated those like they’re a byproduct or just a kind of a waste,” said OSU Nutrition Specialist Paul Beck. “There has been a change in some reproductive technologies that our dairies are taking advantage of where they can use sex semen to produce heifer calves out of only their best cows to make their replacements. Then they’re opened up to the freedom of using a beef-type bull on their other mediocre cows because they need a pregnancy just to restart lactation.”

According to Beck, these beef-dairy hybrid cattle are grabbing the attention of livestock producers, and the industry is taking an interest.

“That has given us a large availability of some beef-dairy crosses that are very superior to a 100 percent dairy animal in beef production performance efficiency,” Beck said. “And they’re keeping a lot of the high-quality meat characteristics that we would see with a dairy calf. So, the industry is very interested in the right management of these cattle and how to best utilize those in beef production systems.”

Finding the best way to use beef-dairy crosses is still something OSU Extension researchers are still exploring.

“At Oklahoma State, we’ve been doing some research with some beef on dairy crosses, looking at how to incorporate those into the finishing period,” Beck said. “Whether we go to finish directly on feed and take them as a 200- or 300-pound animal all the way to slaughter, or if we look at him as a stalker animal and put them out on grass—get them a little bit bigger, a little bit more mature, more used to being in a beef animal—and then getting them on feed as a larger feeder-sized calf.”

The Dairy Business Association, Wisconsin’s leading dairy advocacy group, thanks Gov. Tony Evers for signing the Agricultural Road Improvement Program legislation into law today. This new program creates grants for local governments to improve deteriorating rural infrastructure serving our farms and rural communities.

Action last week by the Joint Committee on Finance provided $150 million in funding for the newly created program. The effort to support long-term investment in our state’s agricultural infrastructure was led by the Committee’s co-chairs, Sen. Marklein and Rep. Born, as well as the bill’s authors, Sens. Marklein, R-Spring Green, Tomczyk, R-Mosinee, and Ballweg, R-Markesan, and Reps. Tranel, R-Cuba City, and VanderMeer, R-Tomah.

About DBA

The Dairy Business Association is Wisconsin’s leading dairy lobby group, championing smart and sensible regulations affecting the dairy community. The nonprofit organization is comprised of farmers, milk processors, vendors and other business partners who work collaboratively to ensure that dairy farms of all sizes have the support they need to keep America’s Dairyland strong. More information: www.dairyforward.com.

The Dairy Farmers of America (DFA) has withdrawn from the International Dairy Foods Association (IDFA). It follows IDFA’s request to amend the USDA’s Federal Milk Marketing Order programme.

DFA has declined interview requests but has issued a statement saying, “While IDFA generally maintains a neutral position on policies lacking full membership consensus, a critical exception was made earlier this year when they submitted a divisive milk pricing policy proposal to USDA.”

“This placed DFA in the untenable position of being represented as supporting a policy position that contradicts what we believe to be in the best interests of our farmer-owners and the dairy industry,” the statement reads.

This month, the American Farm Bureau Federation also suggested many changes to Federal Milk Marketing Orders to USDA. According to AFBF Economist Danny Munch, the ideas include raising pricing.

“The initial element of our proposal was a revision of what was in the NMPF petition. So, in theory, we endorse the majority of the suggestions in that petition, including returning to the higher of class one mover, raising class one differentials, and increasing the component value utilised in milk price,” Munch added. “In addition, we had eight other proposals based on our current policy.” Some of the most important ones include extending the goods questioned in the National Dairy goods Report Survey, eliminating advanced pricing for class one and class two milk, and introducing consistent check requirements to promote farmer openness.”

Meanwhile, World Agricultural Outlook Board Chair Mark Jekanowski reports that the USDA’s most recent projections for milk classes and all-milk prices are mixed for 2023, but lower for 2024.
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Due to overstock, videos of Minnesota farmers dumping hundreds of gallons of milk have appeared online.

A milk producer is now investigating what may be done to find a solution.

“Ultimately, dairy nutrition is very much needed in this part of the country and around the world,” Justin Malone said.

Malone is a third-generation dairy farmer and one of the Hastings Creamery’s proprietors. This enterprise includes 45 dairy farms from Minnesota and Wisconsin.

However, many farmers have recently struggled to find a market for their goods.

“It’s the same situation for a lot of people, in that we just don’t have enough processing to handle the amount of milk that the dairy industry is producing right now,” Malone said.

It has resulted in milk-dumping incidents, such as at Thompson Dairy near Lewiston, Minnesota.

According to the owners, older processing factories have been unable to keep up with what farmers are producing.

However, many farmers have recently struggled to find a market for their goods.

“It’s the same situation for a lot of people, in that we just don’t have enough processing to handle the amount of milk that the dairy industry is producing right now,” Malone said.

It has resulted in milk-dumping incidents, such as at Thompson Dairy near Lewiston, Minnesota.

According to the owners, older processing factories have been unable to keep up with what farmers are producing.

For almost a century, the Hastings Creamery factory has been bottling milk. The Metropolitan Council recently notified the creamery that it was in violation of its industrial wastewater licence as it struggled to keep up with farmers.

Malone feels the problem has been handled at a critical juncture.

Due to excess, farmers are dumping thousands of litres of milk.

“It’s back to business as usual.” We are working on short-term solutions with the Met Council. We’re keeping with the long-term approach, but it’ll take at least a year and a half to completely execute,” he added.

This might imply constructing a wastewater treatment facility on-site. Malone believes that brighter days are coming for farmers.

“We’re updating equipment and trying different things to make it more efficient,” he said. “In the end, help more dairy farmers.” That is our intention.”

Every day, the Hastings Creamery processes 150,000 pounds of milk.

To attempt to balance out the oversupply concerns, several Minnesota dairy producers claimed they downsized by selling cows.
The economic effect of the dairy business in the United States is roughly $794 billion.

According to the latest Economic Impact Report from the International Dairy Foods Association (IDFA), the US dairy industry has grown significantly over the last two years, adding nearly 60,000 new jobs, increasing average wages by 11%, and increasing its total impact on the US economy by $41 billion.

Over the last two years, the sector has grown dramatically.

According to the latest Economic Impact Report from the International Dairy Foods Association (IDFA), the US dairy industry has grown significantly over the last two years, adding nearly 60,000 new jobs, increasing average wages by 11%, and increasing its total impact on the US economy by $41 billion.

According to IDFA’s 2023 Economic effect Study, the overall effect of the dairy industry—including the milk, cheese, ice cream, cultured dairy products, and ingredients sectors—was $793.75 billion in the United States. The study is published every two years during National Dairy Month to assess the industry’s influence on local, state, and national economies.
According to recently disclosed data, the dairy business in the United States today supports:

3.2 million overall employment, up from 1.018 million in 2021, including 1.078 million in dairy product production.
Workers in the dairy business will earn $49 billion in direct salaries, up from $42 billion in 2021.
$72.0 billion in federal, state, and municipal taxes (excluding consumer sales taxes), up from $67.1 billion in 2021 3% of U.S. GDP

“The United States dairy industry is expanding to meet intense global demand, which means more jobs, higher wages, more tax breaks, and more economic growth for communities across the country,” said Michael Dykes, D.V.M., IDFA president and CEO. “Consumers in the United States and around the world recognise U.S. dairy products for their nourishing and delicious qualities, and they are purchasing record amounts of U.S. dairy products.” In turn, American dairy enterprises provide economic advantages to the areas in which they operate.”

The paper also shows how several dairy product categories contribute directly to the US economy, such as:

Cheese has a direct economic effect of $64.5 billion and supports 59,538 dairy sector employment.
Milk has a direct economic effect of $50.9 billion and supports 67,995 dairy sector employment.
Dairy Ingredients: Has a direct economic effect of $20.4 billion and supports 16,552 dairy sector employment.
Ice cream has a direct economic effect of $11.4 billion and supports 27,066 dairy sector jobs.
Yoghurt and cultured products have a direct economic effect of $8.3 billion and sustain 10,867 dairy sector employment.

The increase in employment and economic effect comes as demand for American dairy continues to rise. The USDA announced in September 2022 that per capita dairy consumption in the United States increased by 12.4 pounds per person in 2021, following a 50-year increasing trend that began in 1975, when the USDA began measuring yearly consumption.

The results of the research are accessible via an interactive economic impact tool on IDFA’s Dairy Delivers® website, where visitors may click on an interactive map of the United States to understand how dairy affects their town. Simply choose a region of the nation that interests you—the whole United States, any of the 50 states, or any of the 435 Congressional districts are all available. After you’ve selected the state and/or district of interest, click View/Print to create your own thorough information sheet or economic impact report.
The economic effect of the dairy business in the United States is roughly $794 billion.

According to the latest Economic Impact Report from the International Dairy Foods Association (IDFA), the US dairy industry has grown significantly over the last two years, adding nearly 60,000 new jobs, increasing average wages by 11%, and increasing its total impact on the US economy by $41 billion.

According to a new report from Rabobank, the cumulative effects of high food price inflation over the past 24 months, along with slowing economic activity in 2023, have translated into lower dairy demand in developed and emerging markets.

Various companies in western Europe, Australia, Brazil, China, and other emerging markets are experiencing weaker-than-expected sales in 2023 (mostly in volume terms). Households in many regions remain under financial pressure, which is impacting food purchasing behavior. One notable exception is the US, where current consumer demand for dairy products remains firm. “Some price deflation in dairy could help sustain demand levels in key markets during the second half of 2023,” notes Andrés Padilla, Senior Analyst – Dairy at Rabobank.

Production growth losing momentum

Global milk production is still rising but losing momentum, and that slower production increase could stabilize global market prices. Growth is attributed to EU and US gains, while Oceania and South America continue to see lower output in 1H 2023. Dry weather in South America and parts of Europe must be monitored and could be a key factor impacting production during Q3, particularly in Europe. “Our current outlook for lower production in the EU and US, with limited growth elsewhere, is likely to support global dairy prices in Q3 and into 2024,” states Padilla.   

More affordable feed brings farmers relief

Lower input costs are providing some relief to farm-level margins. Continued optimism about Brazil’s second corn crop, combined with large Russian grain exports, renewal of the Black Sea Grain Initiative, a good upcoming EU harvest, and accelerated US corn planting, continue to drive prices lower. More affordable feed provides dairy farmers some relief as farmgate milk prices decline globally. However, Chinese dairy farm margins remain under pressure despite falling feed prices. And in the US, lower milk prices have outpaced the decline in feed costs, putting farmers’ margins under additional pressure and into negative territory – a sharp contrast to the close-to-record profitability farmers experienced this time last year.

Weak Chinese demand pressures prices

To date, China’s dairy demand recovery has not offset strong domestic milk production growth. Farm expansions and continued gains in milk yields are driving domestic milk production higher, and supply may take longer than previously forecast to respond to weakening milk prices and comparatively higher feed costs. Meanwhile, Chinese dairy imports (liquid milk equivalent, excluding whey) declined in Q1 2023, adding pressure to already weaker global prices in the short term. With no immediate signal of a swift recovery in consumer demand, Chinese traders may remain cautious about returning to the market, or such a return may largely be motivated by competitive international prices and efforts to build reserves.

Brian Leslie, a prominent dairy auctioneer and cattle merchant, has been recognised in the King’s Birthday honours list.

Mr Leslie, a senior dairy auctioneer with Dairy Livestock Services who was instrumental in the establishment of International Dairy Week, has been awarded the Order of Australia in the general division (OAM).

Mr Leslie was raised in a dairying family in Gippsland and has worked in the sector his whole life.

He has an encyclopaedic knowledge of cow families owing to a photographic memory that he gained as a child.

He was a previous co-owner of 21st Century Genetics, the owner of Brown and Leslie Dairy Agency, and the 2008 Les Bunn Memorial Award winner.

Mr Leslie owes a big part of his success to working with knowledgeable mentors, decent individuals, and many great breeders, beginning with Gippsland and Northern agent Daryl Brown.

He is highly aware of the possibilities he was given as a young man, and in response, he has volunteered at youth camps to encourage the next generation.

“I was fortunate to work with some very good people in the dairy industry, so I wanted to give back to the kids.”

In 1987, he founded the first all-breed dairy youth camp.

Dairy cows play a vital part in agriculture and provide several advantages to both people and the environment.  Here are some beneficial statistics regarding dairy cows:

1. Production of milk:

Dairy cows are specifically developed for their capacity to produce big amounts of milk. They are very effective at turning nutrients in their food into high-quality milk, which is an important source of nourishment for humans.
2. Nutritional worth:

Milk from dairy cows is a good source of calcium, protein, vitamins (including vitamin D and vitamin B12), and minerals. These minerals are essential for proper bone formation, muscular growth, and general health.
3. Economic significance:

The dairy sector contributes considerably to the economy by providing jobs for farmers, farm employees, and others engaged in milk processing, distribution, and sale. It also helps the local and national economies via commerce and export.
4. Land use that is sustainable:

Dairy farming often makes use of marginal terrain that would otherwise be unsuitable for agriculture. Dairy cow grazing on these fields helps to optimise land usage and may contribute to more sustainable farming practises.
5. Fertiliser manufacturing:

Cow dung is an excellent source of natural fertiliser. It includes nutrients such as nitrogen, phosphorus, and potassium, which may be utilised to boost agricultural yields by enriching soils. Manure management may help minimise the need for synthetic fertilisers.
Sequestration of carbon:

Well-managed pasture-based dairy systems may have a favourable environmental effect. Dairy cow pastures operate as carbon sinks, removing carbon dioxide from the atmosphere and helping to reduce climate change.
7. Increasing biodiversity:

Dairy farms with different fodder crops and grazing systems may offer habitat and food supplies for a broad range of species, helping to conserve biodiversity.
Animal protection:

Many ranchers prioritise their cows’ health and wellbeing by providing clean and pleasant housing, appropriate diet, and medical treatment. There are organisations and standards in place to guarantee that dairy cows are treated ethically.

According to IDFA’s biannual report, the industry has paid around $7 billion more in salaries, $5 billion more in taxes, and supported over 3.2 million employment since 2021.

The cheese business has had the greatest economic effect, creating more than $64.4 billion, while the milk industry has supported the most employment – 67,995.

The dairy ingredients industry generated $20.4 billion in direct economic effect and supported over 16,552 jobs, while ice cream ($11.4 billion, 27,066 employment) and yoghurt and cultured goods ($8.3 billion, 10,867 jobs) also contributed significantly to the US economy. According to the IDFA, the entire effect of the dairy business on the US economy since 2021 has climbed by $41 billion, totalling $793.75 billion.

The sector also paid over $72 billion in federal, state, and local taxes, up from $67.1 billion in 2021, and paid $49 billion in direct salaries to employees, up from $42 billion. Since 2021, over 60,000 new employment have been created, with earnings increasing by 11%.

Dairy’s contribution of US GDP fell to under 3% from 3.5% in 2021, although overall exports increased to $9.5 billion, up from $6.5 billion two years before.

“The United States dairy industry is expanding to meet intense global demand, which means more jobs, higher wages, more tax breaks, and more economic growth for communities across the country,” said Michael Dykes, D.V.M., IDFA president and CEO. “Consumers in the United States and around the world recognise U.S. dairy products for their nourishing and delicious qualities, and they are purchasing record amounts of U.S. dairy products.” In turn, American dairy enterprises provide economic advantages to the areas in which they operate.”

The IDFA’s 2023 economic impact report, which includes a state-by-state analysis, may be seen at www.idfa.org/dairydelivers.

Russia’s dairy industry wants to strengthen links with China. According to the Russian government agency Agroexport, Russia aims to export 30,000 tonnes of milk powder to China each year. Increased sales to international clients are required to address the projected local glut.

China, along with the Persian Gulf countries, are the most attractive export destinations for Russian dairy producers, according to Russian Agricultural Minister Dmitry Patrushev, who spoke at an industry conference in Moscow. He anticipated that the nation will export dairy products worth $400 million in 2022, virtually precisely the same as the previous year. On the other hand, 90% of Russian dairy exports are still destined for ‘near-abroad’ markets.

According to Agroexport, China will import 1 million tonnes of milk powder worth $4.43 billion in 2022, with New Zealand being the country’s biggest supplier, followed by Australia, the United States, Uruguay, and Belarus. Russian officials acknowledged that China remained a viable market for Russian dairy firms, but that fierce competition from other supply would be a significant problem.

The largest producer is on the rise.

EkoNiva, Russia’s biggest dairy producer, has announced ambitions to produce 1.3 million tonnes of milk in 2023, 100,000 tonnes more than the previous year. Meanwhile, the corporation acknowledged a reduction in demand in several product categories in the home market.

EkoNiva’s goods are already being exported to Kazakhstan, Armenia, Belarus, Uzbekistan, and China. Currently, the corporation is making efforts to enter markets in Southeast Asia and the Middle East.
Milk surplus of 2 million tonnes

According to Mikhail Mishenko, head of the Dairy Intelligence Agency, Russia and Belarus have a domestic market glut of about 2 million tonnes of milk each year. He added that Russia and Belarus form a single market since they share a shared customs space. He also warned of a drop in consumption, saying that if export sales do not increase, the dairy industry could face difficult times.

“The situation is unlikely to improve dramatically in the near future.” Consumption increase is not anticipated. As a result, we will be living in an era of overproduction. “There are two possible outcomes: a drop in production or an increase in exports,” Mishenko said, adding that, rather than relying on the Chinese market, Russian dairy producers could boost their presence in Central Asia.

“If we do not significantly increase exports, milk production will fall by the end of 2023.” We shall first experience a period of stagnation, followed by a period of decline. If we can improve exports, we may be able to survive,” he continued.

Minnesota Agriculture Commissioner Thom Petersen today released the annual list of top Minnesota dairy herds with low somatic cell counts (SCC). Somatic cell count is a key indicator of milk quality – a lower SCC count is better for cheese production and a longer shelf life for bottled milk.

In honor of National Dairy Month, 93 Minnesota dairy farms are being recognized for their superior herd management skills by achieving an average SCC of under 100,000.

“I’m honored to recognize these dairies for their dedication to quality and excellence,” Petersen said. “Minnesota’s dairy farmers provide the state and the world with high quality, wholesome dairy products for us all to enjoy.”

Although somatic cells occur naturally and are not a food safety concern, dairy farmers monitor them because they can be used as a measure of the health of their cows. Processors also pay a premium for milk with low counts. A farmer whose herd has a very low count can receive a higher price per hundredweight compared to a farmer whose herd average is high.

Minnesota Department of Agriculture and University of Minnesota dairy experts have worked with the state’s dairy farmers for 20 years to lower somatic cell counts. When the initiative began in 2003, the herds honored that year included those with SCC averages as high as 144,000, compared to the current goal of obtaining a SCC under 100,000.

Visit our website to see the low SCC list of Minnesota dairy farms. Producers on the list were nominated by their dairy plants.

NMPF strongly opposes legislation introduced today by Senators Mike Lee, R-UT, and Bob Menendez, D-NJ, and Representatives Adrian Smith, R-NE, and Don Beyer, D-VA, that would increase U.S. vulnerability to infant formula supply disruptions by increasing U.S. reliance on imported formula and formula inputs. The legislation would unilaterally and permanently remove tariffs and tariff rate quotas on infant formula and infant formula base powder, resulting in job loss and foreign dependence.

“This bill would make American families more reliant on foreign companies for their infant formula supply and puts in place new one-way-street trade conditions that would harm dairy farmers, cooperatives and processors,” said Jim Mulhern, president and CEO of NMPF. “Instead of weakening our domestic infant formula sector and putting American jobs at risk, we ask that Congress work with us to reinforce and expand our domestic production capacity.

“We strongly support two-way dairy trade,” Mulhern said. “That’s why we advocated for passage of existing U.S. free trade agreements and why we’ve been vocal proponents of resuming trade negotiations to expand dairy trade opportunities; but we vehemently object to putting unilateral import expansion on the backs of American dairy farmers.”

This bill is a misguided response to the dire shortages of infant formula that occurred last year after a temporary production crisis at a large U.S. formula manufacturing plant. In response to that short-term, unique emergency, NMPF supported the 2022 Formula Act and did not oppose passage of the subsequent 2022 Bulk Infant Formula to Retail Shelves Act, which increased import access at a time of acute need. Both laws rightfully expired at the end of 2022, once U.S. production had recovered to pre-crisis levels.

FDA noted in May 2023 testimony to the House Oversight Committee that formula stocking levels are now higher than those seen prior to last year’s temporary crisis, making the legislation introduced today all the more nonsensical.

“American dairy farmers and dairy cooperatives are committed to ensuring a robust, dependable supply of infant formula for American families,” said Randy Mooney, NMPF chairman and a dairy farmer near Rogersville, MO. “The United States can absolutely more than meet domestic demand, and should in fact be positioning itself as a net-exporter of infant formula. The U.S. dairy industry is a proven leader in providing milk powder, whey, lactose and cheese to consumers all around the world – infant formula should be no different.”

Mulhern said that “the idea that the best way for the United States to secure a dependable supply of infant formula is through foreign companies and an unreliable global supply chain is simply wrong. Congress should focus its efforts instead on better supporting the American companies, workers, and farmers who supply nearly all of this country’s formula and formula ingredient needs. Those steps should include reforms to WIC program procurement; ensuring new domestic formula firms have the support needed to gain market authorization; and negotiating new trade agreements to expand export opportunities for American-made formula and other dairy products.”