DairyProfit Update for Dec. 12, 2012

Be wary of ‘FDA’ letters

Dairy producers in several states have received letters from a company identified as FDA Registrar Corporation, Hampton, Va., offering to complete a U.S. Food & Drug Administration (FDA) food facility registration for $195.

Click here to read an example of the solicitation.

Dairy farms are not required to register with FDA as a food facility. The FDA's Registration of Food Facilities Final Rule, 21 CFR §§ 1.225-1.243, requires owners and operators of all domestic and foreign facilities that manufacture, process, pack, or hold food that will be consumed in the United States to register with U.S. FDA. Dairy farmers are exempt from this registration process.

FDA has issued a notice regarding services such as FDA Registrar Corporation. Dairy producer organization leaders are urging members that, if they receive similar letters, destroy them and take no action.

NASS to conduct dairy survey

USDA National Agricultural Statistics Service (NASS) representatives will conduct a national Milk Production survey in January 2013.

NASS conducts the quarterly Milk Production survey of producers, gathering information on the number of milk cows in the herd, number of cows milked and total milk production, using the data to make monthly Milk Production report estimates.

Those surveyed will have several options to respond, including a convenient, secure online reporting system, telephone, mail or personal interviews. Information provided by respondents is confidential by law.

All NASS reports are free and available online at www.nass.usda.gov.

Judge dismisses yogurt labeling lawsuit

A Minnesota federal district court judge dismissed a class-action lawsuit against General Mills and Yoplait, Dec. 10, saying the U.S. Food & Drug Administration (FDA), and not the courts, should decide label requirements for yogurt.

Last April, Illinois resident Martin Taradejna filed the suit against General Mills and Yoplait, alleging the company’s Greek yogurt was improperly labeled because it contained milk protein concentrate (MPC).

In her ruling, U.S. District Judge Susan Richard Nelson noted other litigation over yogurt labels is pending in other courts, with the potential for judicial inconsistency and lack of uniformity in establishing labeling requirements. A federal class action false advertising lawsuit was filed Aug. 31, claiming Cabot Greek-Style Yogurt is not made in the authentic way using an expensive filtering system. Instead, Timothy Smith v. Cabot Creamery Cooperative, Inc. and Agri-Mark, Inc., Case No. 12-cv-4591, U.S. District Court, Northern District of California, alleges the product is thickened through the addition of whey protein concentrates and MPC.

Nelson invoked the doctrine of "primary jurisdiction", finding FDA was best suited to handle the dispute. In 2009, the FDA issued a proposed rule on the standards of identity for yogurt. However, no public hearings have ever been held on the proposed rule, according to court documents.

October dairy trade

The value of U.S. dairy exports totaled $413 million in October 2012, up 3% from September 2012, but virtually unchanged from October 2011. It marked the 20th consecutive month export values surpassed $400 million. Year-to-date (Y-T-D, January-October 2012) exports are estimated at $4.403 billion, up 10% from the same period last year.

At $261 million, the value of October 2012 imports was up 6% from September 2012 and 5% more than October 2011. Y-T-D imports are estimated at $2.563 billion, up 10% from January-October 2011.

The 2012 dairy trade surplus stands at $1.84 billion, compared to $1.65 billion a year earlier.

At $92 million, October cheese imports were down 5% from September 2012 and down 16% from October 2011. Y-T-D 2012 cheese imports are estimated at $828 million, down 2% from the year before.

MARKETS: Barrels down 1¢; Class III futures slightly lower

Today's market closing prices:

Butter: unchanged at $1.5950/lb.

Cheddar blocks: unchanged at $1.76/lb.

Cheddar barrels: down 1.0¢, to $1.65/lb.

Grade A nonfat dry milk: unchanged, at $1.5575/lb.

Extra Grade nonfat dry milk: unchanged, at $1.56/lb.

Class III milk: -20¢ to +5¢ through December 2013. Based on current CME closing prices, the 2012 average is $17.43/cwt.; the 2013 average is $18.43/cwt.; and the 2014 average is $16.19/cwt.

Corn and soybean futures lower; meal up

Corn: -2¢ to -3¢ through December 2013. The 2013 average is $6.90/bu.

Soybeans: -5¢ to +1¢ through November 2013. The 2013 average is $14.19/bu.

Soybean meal: +$0.40 to +$4.50/ton through December 2013. The 2013 average is $415.88/ton.

New: DairyBusiness Weekly

DairyBusiness Weekly, our first digital-only publication, launched last November. Produced 48 times per year, it’s delivered free every Wednesday to readers’ inboxes. It combines the resources of the entire DairyBusiness content team in a short and easy-to-read digital format, complete with videos, audio, direct links, social media and more. To subscribe, visit www.dairybusiness.com.