DairyProfit Update for Dec. 18, 2012

CWT assists with 8.9 million lbs. of cheese and butter export sales

Cooperatives Working Together (CWT) accepted 41 requests for export assistance from Dairy Farmers of America, Darigold, Foremost Farms, Maryland & Virginia Milk Producers Cooperative, Michigan Milk Producers Association and United Dairymen of Arizona to sell 7.547 million lbs. of cheddar and Monterey Jack cheese and 1.318 million lbs. of butter to customers in Asia, the Middle East and North Africa. The product will be delivered December 2012 through June 2013.

So far in 2012, CWT has assisted member cooperatives in making export sales of 123.2 million lbs. of cheese, 72.4 million lbs. of butter, 127,868 lbs. of anhydrous milk fat and 171,961 lbs. of whole milk powder. The product is going to 36 countries on four continents. On a butterfat basis, the milk equivalent of these exports is 2.718 billion lbs.

 

Dairy suing FDA over raw milk interstate ban

Organic Pastures filed a lawsuit against the U.S. Food and Drug Administration (FDA) for allegedly failing to act on its four-year-old petition to amend a law banning sales of raw milk-based dairy products across state lines. Under federal law, FDA is required to respond to such requests within 180 days.

The suit (Case Number 1:2012cv02019), filed in U.S. District Court in the Eastern District of California, Dec. 12, names U.S. Secretary of Health and Human Services Kathleen Sebelius and FDA Commissioner Margaret Hamburg as defendants.

Located near Fresno, Calif., Organic Pastures is the nation's largest raw milk dairy. It markets raw milk, butter, cream and cheese, as well as organic beef and raw almonds. It filed a petition in December 2008, requesting an amendment to CFR 1240.61, which prohibits distribution of dairy products made from unpasteurized milk across state lines. 

In its original request, Organic Pastures said raw milk tested, inspected, regulated and labeled for retail in one state allowing raw milk sales should be able to transport products to other states also allowing raw milk and raw-milk-based dairy product sales.

According to the California Department of Food & Agriculture website, Organic Pastures’ products were last subjects of statewide recalls in September 2012, May 2012 and November 2011, due to potential health risks related to campylobacter bacteria and E. coli O157:H7.

 

Dean Foods issues corporate responsibility, sustainability progress reports

Dean Foods released its 2012 Corporate Responsibility Report, including details of the company's environmental sustainability goals. The new 2020 goals expand the company's focus to more areas of sustainability, align with the broader dairy industry timing for greenhouse gas reductions, and better reflect customer expectations and consumer demands, the company said.

The goals are a revision of the company's previous 2013 Environmental Roadmap. The expansion aligns with the Innovation Center for U.S. Dairy's comprehensive industry goal of reducing greenhouse gas emissions 25% by 2020. At its current pace, the company would miss its 2013 greenhouse gas and water goals due to unforeseen volume declines and more water-intensive processes from an expanding product portfolio, a common occurrence across the food industry.

The company said it has reduced solid waste 21%, increased recycling by more than 50%, and exceeded a goal of reducing distribution fleet carbon dioxide equivalent emissions by 50,000 metric tons. Visit http://www.deanfoods.com/responsibility.

 

MARKETS: Blocks down 0.5¢; Class III futures inch upward again

Today's market closing prices:

Butter: unchanged, at $1.57/lb.

Cheddar blocks: down 0.5¢, to $1.72/lb.

Cheddar barrels: unchanged at $1.63/lb.

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

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

Class III milk: steady to +25¢ through April 2013. Based on current CME closing prices, the 2012 average is $17.45/cwt.; the 2013 average is $18.60/cwt.; and the 2014 average is $16.24/cwt.

 

Corn futures mixed; soybean, meal futures lower

Corn: -4¢ to +1¢ through December 2013. The 2013 average is $6.86/bu.

Soybeans: -9¢ to -30¢ through November 2013. The 2013 average is $14.09/bu.

Soybean meal: -$2.70 to -$10.50/ton through December 2013. The 2013 average is $410.89/ton.