DairyBusiness Update for March 26, 2013
CWT assists with 11.1 million lbs. of cheese, butter and AMF export sales
Cooperatives Working Together (CWT) accepted 28 requests for export assistance from Dairy Farmers of America, Foremost Farms USA, Maryland & Virginia Milk Producers Cooperative Association, Michigan Milk Producers Association, United Dairymen of Arizona and Upstate Niagara Cooperative (O-AT-KA). The requests cover sales of 7.108 million lbs. of cheddar, Gouda and Monterey Jack cheese, 3.942 million lbs. of butter and 44,092 lbs. of anhydrous milk fat (AMF) to customers in Asia, Europe, the Middle East, North Africa and North America. The product will be delivered April through September 2013.
So far in 2013, CWT has assisted member cooperatives in selling 41.156 million lbs. of cheese, 44.849 million lbs. of butter, 44,092 lbs. of AMF and 218,258 lbs. of whole milk powder to 28 countries on six continents. These sales are the equivalent of 1.359 billion lbs. of milk on a milkfat basis, or the annual milk output of 64,700 cows.
AMPI reports $1.7 billion in sales
Associated Milk Producers Inc. (AMPI) delivered sales of $1.7 billion and earnings of $9.3 million in 2012, according to leaders of the Upper Midwest milk marketing cooperative. Delegates representing the co-op’s 2,900 dairy producers attended the annual business meeting in Bloomington, Minn.
AMPI’s core products were the cooperative’s top performers in 2012. Cheese production, which represents 57 % of total sales, grew by more than 11 million lbs. as compared to one year earlier. Butter production continued to grow steadily, increasing 5 million lbs.. Consumer-packaged cheese and butter represented nearly half of the cooperative’s sales.
AMPI members operate dairy farms in Wisconsin, Minnesota, Iowa, Nebraska, South Dakota and North Dakota. The members own 11 manufacturing plants and market a full line of consumer-packaged dairy products.
Pro-Ag: Milk COP report escapes sequestration cut
While monthly USDA milk production reports will be suspended through the end of the fiscal year, another monthly report – covering dairy farmer costs to produce that milk – should survive, according to Arden Tewksbury, manager of the Progressive Agriculture Organization (Pro-Ag).
USDA Economic Research Service (ERS) dairy economists William McBride and Don Blayney, met with Pro-Ag members, Tewksbury said. Both economists feel that the sequestration cuts the USDA may make will not affect the ability of the ERS personnel from continuing to develop the dairy farmers’ cost of production figures,” he said.
Last fall, U.S. Sen. Robert P. Casey, Jr. (D-Pa.) introduced the Pro-Ag-supported Federal Milk Marketing Improvement Act (S-1640), dairy policy which includes milk cost of production in determining federal minimum prices paid to dairy producers.
Tewksbury also said he had contacted a representative of the Congressional Budget Office (CBO) regarding estimating a CBO budget score for S-1640. A Casey staff member informed Tewksbury the bill had been sent to CBO, and a quick turnaround in scoring the bill was expected.
Jones joining DairyBusiness
DairyBusiness Communications announced the addition of David Jones to its editorial content team, effective April 22. Jones’ primary role will be Editor of DairyBusiness West, working with dairy producers and industry professionals throughout the Western half of the country. He will also contribute to all of the DairyBusiness digital and broadcast media.
Jones grew up on his family's dairy farm in Stevinson, Calif. In addition to working on the family dairy, his activities have included successful FFA dairy judging and public speaking competitions, collegiate level dairy judging and Dairy Challenge participation, as well as sale committee marketing roles. While in college David also was the editor of the Ag Circle Magazine and held several communications internships, including work with HolsteinWorld.
After graduating with degrees in Dairy Science and Ag Communications from California Polytechnic University, Jones joined Accelerated Genetics as the Communications Coordinator in Baraboo, Wis.
Once he joins DairyBusiness, Jones can be contacted by email at email@example.com.
MARKETS: Cheese lower; Class III futures slightly higher
Today's market closing prices:
Butter: unchanged, at $1.66/lb.
Cheddar blocks: down 0.25¢, to $1.6950/lb.
Cheddar barrels: down 1.75¢, to $1.6050/lb.
Grade A nonfat dry milk: unchanged, at $1.54/lb.
Extra Grade nonfat dry milk: unchanged at $1.56/lb.
Class III milk: steady to +11¢ through February 2014. Based on current CME closing prices, the 2013 average is $18.32/cwt.; and the 2014 average is $16.71/cwt.
Corn lower, soybean and meal futures higher
Corn: -1¢ to -3¢ per bushel through December 2013. The 2013 average is $6.54/bu.
Soybeans: +7¢ to +10¢ per bushel through December 2013. The 2013 average is $13.69/bu.
Soybean meal: +$1.10 to +$2.50/ton through December 2013. The 2013 average is $386.37/ton.
USDA announces its Grain Stocks and 2013 Prospective Plantings reports on March 28.
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