Archive for January, 2011

IDFA 2011 Dairy Forum heavy on policy talk

By Dave Natzke

Other than supply management, dairy processors and producer cooperatives are probably closer than ever on a number of dairy policy issues, according to leaders of both organizations. Whether that translates into consensus on dairy policy in the 2012 Farm Bill, and what impact federal budget woes have on final policy decisions – remains to be seen.

Appearing together to conclude the International Dairy Foods Association (IDFA) Dairy Forum, IDFA CEO and president Connie Tipton and National Milk Producers Federation’s (NMPF) CEO and president Jerry Kozak agreed a number of current federal programs – the Dairy Product Price Support and Milk Income Loss Contract (MILC) programs and federal order end-product pricing – were not serving the industry well. They also agreed federal milk marketing order reforms and simplicity were needed, and that environmental and processing regulations were burdening the industry at a time flexibility and innovation were needed in an increasingly global market.

Opinions diverged on the topics of supply management and export assistance, however.

Tipton address

In her annual keynote address, IDFA’s Tipton said the dairy industry is at a crossroads in federal policy. Tipton called 2009 a “great depression” for dairy farmers, with large losses of income and equity. She warned, however, that short-term economic pain should not direct longer-term dairy policy.

Tipton said price volatility was the biggest issue facing both processors and farmers, and that current policies created or amplified that volatility. To help change the course, she said IDFA supports simplifying the federal milk marketing order system, and improving margin insurance and risk management programs for dairy farmers.

Later in the Forum, Tipton and Kozak appeared together to provide processor and producer views on dairy policy. One area where they face a possible policy collision course is over supply management.

NMPF’s Foundation for the Future (FFTF) Dairy Market Stabilization Program (DMSP) would withhold a percentage of milk payments from farmers who surpass their base production – at times when farmer income margins are small – as a market signal to reduce milk production.

‘Supply management’ study

IDFA used the Dairy Forum to unveil a study showing the economic impact of the plan, had it been in place in the past decade. The study, commissioned by IDFA and conducted by Informa Economics, concluded DMSP would have been triggered four times in the past decade, with deductions in effect 18 months during the study period. Total dairy farmer milk payment withholdings were estimated at $626 million. In 2009 alone, $390 million would have been withheld, with the majority of it, $236 million, coming from five states: Wisconsin, New York, Minnesota, Pennsylvania and Michigan (find the full report at www.idfa.org).

However, Kozak countered the DMSP deductions would not be implemented alone, but instead would work in concert with a Dairy Producer Margin Protection Program, providing income insurance payments in times of low margins, offsetting the overall income declines suggested by IDFA’s study.

Citing the study, Tipton suggested dairy farmers did not fully understand the full implications of a mandated supply management program on their overall income. She also said private supply management – through processor/producer contracts based on milk volume – was appropriate, because milk processors knew their marketing capabilities and capacity.

Kozak and Tipton also sparred a bit on the Cooperatives Working Together (CWT) Export Assistance program, with Tipton implying the program created export subsidies. Kozak countered it was not government money, but cooperative/producer money, utilized under a specific business plan to create and serve export market growth.

DIAC results

Both Kozak and Tipton said they were pleasantly surprised in some of the consensus developed by USDA’s Dairy Industry Advisory Committee (DIAC), but reminded Dairy Forum attendees the group was advisory, with USDA making recommendations and Congress ultimately deciding the dairy provisions of the 2012 Farm Bill.

Kozak said long-term strategies – not the prevailing price of milk – would drive dairy policy. Both Tipton and Kozak said the federal  budget – and how dairy policy proposals are scored by the Office of Management and Budget – would ultimately decide what dairy policy is approved, making it incumbent for the industry to develop a consensus on as many issues as possible, because Congress would not likely “have the stomach” to write policy.

Rabobank global outlook

Rabobank’s Tim Hunt provided an overview of global dairy markets during the Dairy Forum, characterizing it as being in a state of “convergence.” In the past, global markets have been fragmented, due to the perishability of products, trade distorting policies, limited connection between industry players, and the regional/national make-up of markets.

He said the international dairy market is seeing “asymmetric” growth, with traditional markets stagnant, but new emerging markets showing strong growth. He said 85% of dairy growth between 2009-2014 will be in developing markets, especially India, China and South America, which are currently unable to fill their own dairy supply needs.

Hunt said much of the U.S. export market growth can be attributed to the presence of China in the global market – either in direct sales, or in filling markets previously filled by New Zealand, which has directed more attention and product to the Chinese market.

Another reason for global growth is corporate internationalism, as western companies enter developing markets, leveraging foodservice expertise and brand and product strength to those regions.

Category convergence is also a factor, as major beverage companies, such as Coca-Cola and Pepsi, enter the dairy market. They are experts in processing, packaging and distribution, and also see potential in “healthy” beverages, both economically, and as a means to improve their “health” public image and hedge against declines in current beverage products, often focussed on sugary beverages.

Global growth is also enhanced by developing countries investing in dairy to secure supplies, and gain product and processing know-how.

Hunt said U.S. growth is hindered by current policies which encourage production of “wrong” products. He said the U.S. must address the regulatory system, become more aware of global markets and strategies, and be ready to meet customer product specifications.

Cheese just a ‘treat’?

The speaker drawing the most emotion from Dairy Forum attendees was Margo Wootan, director of Nutrition Policy for the Center for Science in the Public Interest. Participating on a “Food Policies That Are Changing the Dairy Industry” panel, Wootan said cheese should be consumed only as a treat, similar to ice cream. While a proponent of low-fat and fat-free milk consumption, Wootan was highly critical of U.S. cheese consumption, blaming it as a major factor in high cholesterol and heart disease.

“Americans are eating too much cheese, and (dairy) can’t grow that business without growing American’s fat size and clogging their arteries,” she charged.

Reminded that Europeans consume more cheese per capita than Americans, Wootan said Americans’ lifestyles and diets are different than in many European countries, including portion sizes and levels of physical activity.

Possible fluid milk strategy outlined

During IDFA’s Dairy Forum, Steven Golbach, a partner in marketing research and consulting firm, Monitor, detailed an extensive dairy consumer study, commissioned by the fluid milk processors’ MilkPEP program, to identify causes and stem the tide of declining U.S. fluid milk consumption. Golbach said study’s results conclude dairy industry profitability not only requires promotion strategies focusing on increasing volume, but also value.

Golbach said it was unrealistic to try to get consumers to increase total overall fluid consumption: U.S. per capita fluid consumption has been stagnant for more than a decade – from 224 gallons in 2000 to 223 gallons in 2009.  Therefore, milk must compete against other fluids to gain a bigger share of the existing volume. Chief competitors are led by bottled water, followed by soda, soy and energy drinks. Beverages with greatest innovation and branding showed the largest growth in the decade.

During the 2000-09 period, per capita fluid milk consumption declined about 1.8 gallons, falling from 10% of total beverages consumed in 2000, to 9.3% in 2009. Carbonated beverages and juices suffered an even greater decline. However, bottled and, more recently, tap water through innovative filtration systems – increased from 7.5% of total fluid consumption in 2000 to 12.5% in 2009.

In addition to innovation and branding, the study identified matching milk marketing with “complements” to boost sales, including breakfast cereals (sales have been on the decline) and coffee/milk and fruit/milk beverage combinations (which have been on the rise).

The study also emphasized a closer tie-in to “occasions” to boost milk consumption. About 30% of all fluid milk is consumed at breakfast; with 7.3% at lunch; 4.2% in school lunch; and 17.5% with dinner at home.

An overall strategy to “defend” breakfast; “extend” success at lunch and dinner at home; and “create” new milk drinking occasions after or between meals was advised. Other occasions with opportunity – and the need for marketing priority  – include post-exercise nutrient replenishment. Milk as an after-dinner indulgence – perhaps instead of alcohol, as a reward at the end of the day – was also on the list.

DairyProfit Friday, Jan. 28, 2011

An (almost) daily recap of dairy information: Jan. 28, 2011

Heifer numbers plentiful

USDA’s semiannual “Cattle” inventory report indicates there are plenty of replacement heifers ready to step into the nation’s milking parlors.

As of Jan. 1, 2011, there were 9.15 million cows in U.S. herds, about 64,100 more than Jan. 1, 2010.

Dairy replacement heifers (weighing more than 500 lbs.) were estimated at just under 4.56 million on Jan. 1, 2011, up 31,000 from a year ago. Of the total, about 3.04 million are expected to calve in the next year, up about 85,200 from Jan. 1, 2010.

Based on these estimates, there were 49.8 replacements (>500 lbs.) for every 100 cows in U.S. herds on Jan. 1, 2011, virtually unchanged from a year ago. If the “expected to calve” estimate is correct, there were 33.2 replacement heifers for each 100 cows as of Jan. 1, 2011, up from 32.5 heifers per 100 cows a year earlier.

MARKETS

Cheese climbs some more, but Class III futures lower

Closing on Friday, Jan. 28:

Cheddar barrels: up 2.25¢, to $1.7050/lb.

Cheddar blocks: up 3.25¢, tot $1.7350/lb.

Butter: unchanged, at $2.10/lb.

Extra Grade nonfat dry milk: unchanged, at $1.6000/lb.

Grade A nonfat dry milk: up 2.5¢, to $1.6575/lb.

Class III milk futures: -2¢ to -25¢/cwt. through December 2011.

Corn futures: -5.2¢ to -8.2¢/bushel through September 2012.

Soybean futures: -1.4¢ to -4.6¢/bushel through September 2012.

Soybean meal futures: -$0.10 to +$1.30/ton through September 2012.

The week in review

Cash traders ignored last week’s Cold Storage numbers, as rising feed prices appear to be driving the dairy product markets higher, according to DairyLine Radio’s Lee Mielke.

CME cash cheddar cheese blocks closed the last Friday in January at $1.7350/lb., up 21¢ on the week and 22¢ more than the corresponding week a year ago. Blocks gained gained 23.5¢ in the last six trading sessions.

Cheddar barrels closed Friday at $1.7050/lb., up 19.5¢ on the week and 20¢ more than a year ago. The big gains only attracted one sale of blocks and three of barrels for the week.

Butter held steady at $2.10/lb. all week, where it’s been since Jan. 7. That’s 77¢ more than the corresponding week a year ago.

Cash Grade A nonfat dry milk closed Friday at $1.6575/lb., up 13.5¢ on the week and the highest since January 2008. It has gained almost 39¢/lb. since the first of the year. Extra Grade closed at $1.60/lb., up 11¢ on the week and up 37.5¢ since Jan. 1 .

DAIRYLINE RADIO

Monday: DMI Update

Where did your dairy checkoff dollars go last year? Dairy Management Inc.’s Joe Bavido continues his series in Monday’s DairyLine broadcast.

To read the comments, visit www.dairyline.com under “Today’s Dairy News.” Or, listen to the conversation with DairyLine’s Lee Mielke by clicking on “DairyLine Daily Broadcast.”

WESTERN DAIRYBUSINESS

Western Pulse – February 2011

• Bloomhall of Diamond V, named ‘Entrepreneur of the Year’ finalist

• Dairy Princess-Ambassadors will represent Oregon counties; finalists for statewide crown

• 2011 SW Nutrition and Management Conference Feb. 23-25

EASTERN DAIRYBUSINESS

February 2011 PRO-DAIRY’s The Manager – Cropping Strategies

You’re already planning for spring, and the quarterly package of dairy management information from Cornell University’s PRO-DAIRY program will feature a wide range of cropping information, from alfalfa fertilization and manure’s impact on corn yields to tillage depth and corn plant populations. To read the full articles in the online version of Eastern DairyBusiness, visit www.dairybusiness.com.

Check for daily DPW news updates at www.dairybusiness.com.

For a sample copy of Dairy Profit Weekly, or subscription information, visit www.dairyprofit.com or phone: 800-334-1904, ext. 244.

Dave Natzke, Editor

This week in DairyProfit Weekly

This week in Dairy Profit Weekly:

1) Dairy Forum: A 2011 Dairy Forum dairy policy discussion between IDFA’s Connie Tipton and NMPF’s Jerry Kozak found agreement on many issues, but divergence over supply management and export assistance.

2) Global dairy: Rabobank’s Tim Hunt told Dairy Forum attendees the global dairy market – once fragmented – is now in a state of “convergence.” He said U.S. growth is hindered by current policies which encourage production of “wrong” products. The U.S. must address regulatory systems, become more aware of global markets and strategies, and be ready to meet international customer product specifications.

3) DPW Trends: Short of a Friday price collapse, it’s been quite a week for Chicago Mercantile Exchange dairy product prices. Compared to a week ago, cheddar blocks and barrels were up nearly 18¢/lb., and Extra Grade and Grade A nonfat dry milk are both up 11¢/lb. Less robust, average Class III milk futures prices were up 29¢/cwt., averaging $16.44/cwt.

4) DPW Industry: During IDFA’s Dairy Forum, marketing researcher and consultant Steven Golbach detailed an extensive dairy consumer study, commissioned by the fluid milk processors’ MilkPEP program, to identify causes and stem the tide of declining U.S. fluid milk consumption.

5) DPW Washington: USDA deregulated Roundup Ready alfalfa; the House ag committee named dairy subcommittee members; and new U.S. dietary guidelines will be released on Jan. 31.

Dave Natzke, Editor

For a sample copy of Dairy Profit Weekly, or subscription information, visit www.dairyprofit.com or phone: 800-334-1904, ext. 244.

USDA announces decision to fully deregulate Roundup Ready Alfalfa

USDA’s Animal and Plant Health Inspection Service (APHIS) announced its decision to grant non-regulated status for alfalfa that has been genetically engineered to be resistant to the herbicide commercially known as Roundup.

“After conducting a thorough and transparent examination of alfalfa through a multi-alternative environmental impact statement (EIS) and several public comment opportunities, APHIS has determined that Roundup Ready alfalfa is as safe as traditionally bred alfalfa,” Agriculture Secretary Tom Vilsack said. “All of the alfalfa production stakeholders involved in this issue have stressed their willingness to work together to find solutions. We greatly appreciate and value the work they’ve done so far and will continue to provide support to the wide variety of sectors that make American agriculture successful.”

After releasing a final EIS in December 2010, USDA took another step to ensure that this issue received the broadest examination before making its final decision. USDA brought together a diverse group of stakeholders to discuss feasible strategies for coexistence between genetically engineered (GE), organic, and other non-GE stakeholders. The stakeholders helped to identify areas of consensus; issues where the group disagreed and opportunities for further dialogue exist; and areas where USDA could – or should – play an important and helpful role.

In response to the request for support from its stakeholders, USDA is taking a number of steps, including:

  • Reestablishing two important USDA advisory committees – Advisory Committee on Biotechnology and 21st Century Agriculture, and the National Genetic Resources Advisory Committee. These two committees will tackle a broad range of issues, from ensuring the availability of high quality seed, to helping ensure that growers have access to the best tools available to support their production choices, to whether risk management and indemnification options can play a role;
  • Conducting research into areas such as ensuring the genetic integrity, production and preservation of alfalfa seeds entrusted to the germplasm system;
  • Refining and extending current models of gene flow in alfalfa;
  • Requesting proposals through the Small Business Innovation Research program to improve handling of forage seeds and detection of transgenes in alfalfa seeds and hay; and,
  • Providing voluntary, third-party audits and verification of industry-led stewardship initiatives.

More information on these areas of support USDA will provide outside of the regulatory arena is available online .

APHIS’ deregulation of Roundup ready alfalfa will become effective upon publication of the Agency’s determination of nonregulated status in the Federal Register. USDA’s Record of Decision on RR alfalfa is available to the public at http://www.aphis.usda.gov/

Roundup Ready® Alfalfa cleared by USDA

USDA announced the deregulation of Roundup Ready® Alfalfa, without conditions, according to PR Newswire, Jan. 27. (The announcement was not yet posted on the USDA website.)

This was the final step in an extensive environmental review process undertaken by USDA that took 46 months to complete.

“We are very pleased that the USDA has deregulated the product without conditions,” said Mark McCaslin, president of Forage Genetics International, a co-developer of RRA.  McCaslin noted that Forage Genetics and other licensed seed companies are prepared to sell RRA seed to growers for the spring planting season.

“With this decision, the USDA has acknowledged that in these difficult economic times, America’s farmers need every advantage to stay competitive and help provide a reliable, affordable food supply for the U.S. and people worldwide,” McCaslin said.  “To feed a hungry world, we need all types of agriculture – biotech, conventional and organic options. Forage Genetics supports alfalfa forage and seed production for all markets and is a leading alfalfa seed supplier to the biotech, conventional, export and organic markets,” he added.

McCaslin emphasized that Forage Genetics and the seed industry remain deeply committed to stewardship programs that enable co-existence and grower choice.  ”These stewardship programs, designed by teams representing seed companies, forage/seed growers and various market channels, provide assurance that RRA can safely co-exist with other crops.” McCaslin said.

For more information, go to www.roundupreadyalfalfa.com

Forage Genetics International, LLC. (www.foragegenetics.com) a wholly owned subsidiary of Land O’Lakes, Inc., is the world leader in the development, production and marketing of alfalfa germplasm and traits that add value to their seed customers, and to livestock producers and other alfalfa end users.

DairyProfit Thursday, Jan. 27, 2011

An (almost) daily recap of dairy information: Jan. 27, 2011

Roundup Ready® Alfalfa cleared by USDA

USDA announced the deregulation of Roundup Ready® Alfalfa, without conditions, according to PR Newswire, Jan. 27. (The announcement was not yet posted on the USDA website.) Mark McCaslin, president of Forage Genetics International, a co-developer of RRA, said Forage Genetics and other licensed seed companies are prepared to sell RRA seed to growers for the spring planting season.

Opponents said they are evaluating their choices and likely will resume their legal battle.

MARKETS

Cheese, powder post more gains, but Class III futures dip

Closing on Thursday, Jan. 27:

Cheddar barrels: up 4.0¢, to $1.6825/lb.

Cheddar blocks: up 1.0¢, tot $1.7025/lb.

Butter: unchanged, at $2.10/lb.

Extra Grade nonfat dry milk: up 4.25¢, to $1.6000/lb.

Grade A nonfat dry milk: up 4.0¢, to $1.6325/lb.

Class III milk futures: -1¢ to -24¢/cwt. through January 2012.

Corn futures: -6.6¢ to -9.0¢/bushel through September 2012.

Soybean futures: mostly higher, +0.4¢ to +14.0¢/bushel through September 2012.

Soybean meal futures: +$1.20 to +$3.00/ton through September 2011; -$0.90 to -$2.70/bushel, October 2011 through September 2012.

DAIRYLINE RADIO

Friday: DairyProfit Weekly

Dairy Profit Weekly editor Dave Natzke recaps the International Dairy Foods Association’s annual Dairy Forum in Friday’s DairyLine broadcast. He said IDFA’s president and CEO Connie Tipton and National Milk Producers Federation’s Jerry Kozak found similarities – and differences – in processor and producer stances on dairy policy proposals.

To read the comments, visit www.dairyline.com under “Today’s Dairy News.” Or, listen to the conversation with DairyLine’s Lee Mielke by clicking on “DairyLine Daily Broadcast.”

WESTERN DAIRYBUSINESS

Opinions & sacred cows: A lot of water under Expo bridge

Western DairyBusiness editor Ron Goble reflects on the history of World Ag Expo – and what’s ahead for the 44th edition, set for Feb. 8-10, in Tulare, Caif.

EASTERN DAIRYBUSINESS

DairyProfit Update February

DairyProfit Weekly’s Dave Natzke provides a monthly review of dairy issues impacting your business:

• Chesapeake: Farm Bureau lawsuit seeks to restrict EPA Chesapeake TMDL ‘Diet’

Innovation Center for U.S. Dairy publishes first U.S. Dairy Sustainability Commitment Progress Report

• Cooperatives Working Together (CWT) moves closer to membership target

Check for daily DPW news updates at www.dairybusiness.com.

For a sample copy of Dairy Profit Weekly, or subscription information, visit www.dairyprofit.com or phone: 800-334-1904, ext. 244.

Dave Natzke, Editor

House Ag Committee subcommittee members named

Members of the House Ag Committee met, Jan. 25, to formally organize and to adopt the Committee’s rules for the 112th Congress.

The Committee approved rules designed to enhance transparency and increase accountability. One addition provides that the text of bills will be posted online for the public no fewer than 24 hours prior to a business meeting. Another addition provides that both live and archived webcasts of hearings and markups be made available online.

The Committee also ratified the members and leadership of all six subcommittees. Ag Committee chair Frank Lucas (R-Okla.) and Ranking Minority Member Collin C. Peterson (D-Minn.) serve as ex-officio members of all subcommittees.

Livestock, Dairy, and Poultry
Jurisdiction: Livestock, dairy, poultry, meat, seafood and seafood products, inspection, marketing, and promotion of such commodities, aquaculture, animal welfare, and grazing.

REPUBLICANS

Rep. Thomas J. Rooney, FL, Chair

Rep. Bob Goodlatte, VA

Rep. Steve King, IA

Rep. Randy Neugebauer, TX

Rep. K. Michael Conaway, TX

Rep. Stephen Lee Fincher, TN

Rep. Tim Huelskamp, KS

Rep. Scott DesJarlais, TN

Rep. Christopher P. Gibson, NY

Rep. Reid J. Ribble, WI

DEMOCRATS

Rep. Dennis A. Cardoza, CA, Ranking Member

Rep. David Scott, GA

Rep. Joe Courtney, CT

Rep. Tim Holden, PA

Rep. Leonard L. Boswell, IA

Rep. Joe Baca, CA

Rep. Kurt Schrader, OR

Rep. Bill Owens, NY

Department Operations, Oversight, and Credit
Jurisdiction: Agency oversight, review and analysis, special investigations, and agricultural credit.

REPUBLICANS

Rep. Jeff Fortenberry, NE, Chair

Rep. Timothy V. Johnson, IL

Rep. Steve King, IA

Rep. Eric A. “Rick” Crawford, AR

Rep. Stephen Lee Fincher, TN

DEMOCRATS

Rep. Marcia L. Fudge, OH, Ranking Member

Rep. James P. McGovern, MA

Rep. Joe Baca, CA

Conservation, Energy, and Forestry
Jurisdiction: Soil, water, and resource conservation, small watershed program, energy and biobased energy production, rural electrification, forestry in general and forest reserves other than those created from the public domain.

REPUBLICANS

Rep. Glenn Thompson, PA, Chair

Rep. Bob Goodlatte, VA

Rep. Marlin A. Stutzman, IN

Rep. Bob Gibbs, OH

Rep. Stephen Lee Fincher, TN

Rep. Scott R. Tipton, CO

Rep. Steve Southerland II, FL

Rep. Martha Roby, AL

Rep. Tim Huelskamp, KSRep. Randy Hultgren, IL

Rep. Reid J. Ribble, WI

DEMOCRATS

Rep. Tim Holden, PA, Ranking Member

Rep. Kurt Schrader, OR

Rep. William L. Owens, NY

Rep. Mike McIntyre, NC

Rep. Jim Costa, CA

Rep. Timothy J. Walz, MN

Rep. Chellie Pingree, ME

Rep. Marcia L. Fudge, OH

Del. Gregorio Kilili Camacho Sablan, MP

General Farm Commodities and Risk Management
Jurisdiction: Program and markets related to cotton, cottonseed, wheat, feed grains, soybeans, oilseeds, rice, dry beans, peas, lentils, the Commodity Credit Corporation, risk management, including crop insurance, commodity exchanges, and specialty crops.

REPUBLICANS

Rep. K. Michael Conaway, TX, Chair

Rep. Steve King, IA

Rep. Randy Neugebauer, TX

Rep. Jean Schmidt, OH

Rep. Bob Gibbs, OH

Rep. Austin Scott, GA

Rep. Eric A. “Rick” Crawford, AR

Rep. Martha Roby, AL

Rep. Tim Huelskamp, KS

Rep. Renee L. Ellmers, NC

Rep. Christopher P. Gibson, NY

Rep. Randy Hultgren, IL

Rep. Vicky Hartzler, MO

Rep. Robert T. Schilling, IL

DEMOCRATS

Rep. Leonard L. Boswell, IA, Ranking Member

Rep. Mike McIntyre, NC

Rep. Timothy J. Walz, MN

Rep. Larry Kissell, NC

Rep. James P. McGovern, MA

Rep. Dennis A. Cardoza, CA

Rep. David Scott, GA

Rep. Joe Courtney, CT

Rep. Peter Welch, VT

Rep. Terri A. Sewell, AL

Nutrition and Horticulture
Jurisdiction: Food stamps, nutrition and consumer programs, fruits and vegetables, honey and bees, marketing and promotion orders, plant pesticides, quarantine, adulteration of seeds and insect pests, and organic agriculture.

REPUBLICANS

Rep. Jean Schmidt, OH, Chair

Rep. Steve King, IA

Rep. Thomas J. Rooney, FL

Rep. Steve Southerland II, FL

Rep. Eric A. “Rick” Crawford, AR

DEMOCRATS

Rep. Joe Baca, CA, Ranking Member

Rep. Chellie Pingree, ME

Del. Gregorio Kilili Camacho Sablan, MP

Rural Development, Research, Biotechnology, and Foreign Agriculture
Jurisdiction: Rural Development, farm security and family farming matters, research, education and extension, biotechnology, foreign agriculture assistance, and trade promotion programs, generally.

REPUBLICANS

Rep. Timothy V. Johnson, IL, Chair

Rep. Glenn Thompson, PA

Rep. Marlin A. Stutzman, IN

Rep. Austin Scott, GA

Rep. Randy Hultgren, IL

Rep. Vicky Hartzler, MO

Rep. Robert T. Schilling, IL

DEMOCRATS

Rep. Jim Costa, CA, Ranking Member

Rep. Henry Cuellar, TX

Rep. Peter Welch, VT

Rep. Terri A. Sewell, AL

Rep. Larry Kissell, NC

DairyProfit Wednesday, Jan. 26, 2011

An (almost) daily recap of dairy information: Jan. 26, 2011

MARKETS

Cheese, powder post more gains

Closing on Wednesday, Jan. 26:

Cheddar barrels – up 1.25¢, to $1.6425/lb.

Cheddar blocks – up 4.25¢, tot $1.6925/lb.

Butter – unchanged, at $2.10/lb.

Extra Grade nonfat dry milk: up 3.0¢, to $1.5575/lb.

Grade A nonfat dry milk: up 4.25¢, to $1.5925/lb.

Class III milk futures: mostly higher, -3¢ to +49¢/cwt. through December 2011, with March-May 2011 above $17.10/cwt.

Corn futures: +10.6¢ to +13.6¢/bushel through September 2012.

Soybean futures: +9.4¢ to +13.0¢/bushel through September 2012.

Soybean meal futures: +$1.70 to +$4.00/ton through September 2012.

DeLaval’s ‘Sustainable Barn’ showcased

Sustainable dairy technology is on display at the world’s largest consumer show for agriculture, food and horticulture, the 2011 International Green Week, though Jan. 30, in Berlin, German. DeLaval will display the latest version of their voluntary milking system, the VMS 2011. Other SDF solutions will also be showcased, aimed at lowering the cost of milk production while maintaining a healthier ecosystem.

DAIRYLINE RADIO

Wednesday: Dairy beef promotion

Western dairy producers will read about “My beef checkoff can promote beef to consumers at the retail level” in an ad appearing in some of their favorite dairy magazines, like Western DairyBusiness.

Bill Dale, executive director of the California Beef Council, discusses western beef promotion efforts in Wednesday’s DairyLine report.

Thursday: NMPF: ‘State of the Union” means budget cuts

The message for dairy farmers in the President’s ”State of the Union” address and the Republican response is ”budget cuts,” according to National Milk’s Chris Galen.

To read the comments, visit www.dairyline.com under “Today’s Dairy News.” Or, listen to the conversation with DairyLine’s Lee Mielke by clicking on “DairyLine Daily Broadcast.”

WESTERN DAIRYBUSINESS

On the Edge of Common Sense: Headin’ and heelin’ on the High Plains

Cowboy stories are about wrecks: horse wrecks, cow wrecks, dog wrecks, financial wrecks, Tyranosaurus Wrex, and flat-bed, mad cow, Ranger-with-a-vet-box-in-the-bed wrecks, according to Baxter Black is a cowboy poet and ex-veterinarian.

EASTERN DAIRYBUSINESS

DAIRYBUSINESS FILE – Environment

Information you can use from the files of DairyBusiness Communication, addressing topics related to February 2011’s theme: Manure management and the environment:

• Develop manure spill emergency kit

• Calendar aids Indiana nutrient management

Tool determines emission-cutting opportunities

2011 AgSTAR Conference moves to Idaho, May 10-12

• Midwest Manure Summit coming to Lambeau Field

Check for daily DPW news updates at www.dairybusiness.com.

For a sample copy of Dairy Profit Weekly, or subscription information, visit www.dairyprofit.com or phone: 800-334-1904, ext. 244.

Dave Natzke, Editor

DeLaval’s ‘Sustainable Barn’ showcased

Sustainable dairy technology is on display at the world’s largest consumer show for agriculture, food and horticulture, the 2011 International Green Week, though Jan. 30, in Berlin, German.

“‘Farm Experience’ is our special exhibition during International Green Week in Berlin,” according to general manager Dr. Gibfried Schenk. “It is all about showing consumers entire agricultural production chains and we are very happy to have DeLaval as a new partner this year. DeLaval enables us to show a modern cow barn, from flooring to automatic milking, and demonstrate the seamless transition of steps in the dairy chain – all with just one supplier. DeLaval is helping us to make the dairy value chain, from cow to consumer, truly come alive.”

“Consumers and trade visitors alike want to see how today’s agricultural businesses plan to help farmers produce more quality food for an increasing population with less impact on the environment. So we want to show them how DeLaval intends to support dairy farmers around the world with smart technology and services to increase resource efficiency on farm,” said DeLaval vice president marketing and communications Benoit Passard.

The company will display the latest version of their voluntary milking system, the VMS 2011. Other SDF solutions will also be showcased, aimed at lowering the cost of milk production while maintaining a healthier ecosystem.

The environment is one important aspect for sustainable dairy farming, but, according to Passard, cannot be addressed in isolation. DeLaval’s initiative, called Sustainable Dairy Farming SDF and is a holistic approach based on measuring and improving the performance of a dairy farm in terms of four interlinked resource pillars: animal welfare, environment, social responsibility and farm profitability.

DairyProfit Tuesday, Jan. 25, 2011

An (almost) daily recap of dairy information: Jan. 25, 2011

Study questions supply management program

A new study by Informa Economics, commissioned by the International Dairy Foods Association, raises economic questions about the Dairy Market Stabilization Program (DMSP) proposed by the National Milk Producers Federation.

Tipton calls for policies that promote profitability, not protection

International Dairy Foods Association president and CEO Connie Tipton said the dairy industry is at a crossroads, with the 2012 Farm Bill serving as the traffic signal for the industry’s future. In her keynote speech at Dairy Forum 2011, Tipton  federal dairy policy must address volatility and create programs that reduce risk, such as margin insurance and forward contracting tools, for dairy farmers hard hit by the economic collapse of 2009. For processors, policy must also promote innovation and foster industry growth.

MARKETS

Cheese up more than 6¢; Class III mixed

Closing on Tuesday, Jan. 25:

Cheddar barrels – up 6.75¢, to $1.63/lb.

Cheddar blocks – up 6.25¢, tot $1.65/lb.

Butter – unchanged, at $2.10/lb.

Extra Grade nonfat dry milk: up 3.75¢, to $1.5275/lb.

Grade A nonfat dry milk: up 2.25¢, to $1.55/lb.

Class III milk futures: mixed, -19¢ to +41¢/cwt. September 2012.

Corn futures: -5.6¢ to -11.2¢/bushel through September 2012.

Soybean futures: -17.2¢ to -30.0¢/bushel through September 2012.

Soybean meal futures: -$3.30 to -$7.90/ton through September 2012.

Balchem expands production capacities

Balchem Corporation, a global leader in choline chloride and protection technology, announced expansion at two of its Animal Nutrition and Health production plants in St. Gabriel, LA, and Verona, MO.

Intervet/Schering-Plough Animal Health reintroducing Vista® vaccine line to U.S.market

Intervet/Schering-Plough Animal Health is reintroducing to the United States market the Vista® vaccine line, which provides dairy veterinarians and producers with the most complete protection available against the most common and costly bovine respiratory and reproductive diseases.

WESTERN DAIRYBUSINESS

Accounting for Profits: Tax planning for 2011 & 2012

The “Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010” extended some of the Bush-era tax cuts and revised others tax provisions. However, the new tax laws are temporary and are expected to expire at the end of 2012, according to  Ralph Lizardo, CPA, senior manager, Moore Stephens Wurth Frazer and Torbet, LLP. Therefore, it’s important to start 2011-2012 tax planning now.

EASTERN DAIRYBUSINESS

Put manure management on ‘solid’ financial footing

Associate editor Susan Harlow reports on dairy producers who are turning manure solids into livestock bedding, kitty litter and clean energy, reaping environmental and financial benefits.

Check for daily DPW news updates at www.dairybusiness.com.

For a sample copy of Dairy Profit Weekly, or subscription information, visit www.dairyprofit.com or phone: 800-334-1904, ext. 244.

Dave Natzke, Editor

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