DairyProfit Update for Dec. 5, 2012
November FMMO prices announced
November 2012 federal order Class II & IV milk prices are up from October, but the Class III price is slightly lower. In contrast, the Class III price is higher than November 2011, while Class II & IV prices are lower than a year ago. Average 2012 year-to-date (Y-T-D) prices for all classes remain below the average for January-November 2011.
• Class II: $18.81/cwt., up 37¢ from October 2011, but 45¢ less than November 2011. The 2012 Y-T-D average is $16.49/cwt., down $3.27 from January-November 2011.
• Class III: $20.83/cwt., down 19¢ from October, but $1.76 more than November 2011. Even though it's down from October, it's the highest Class III price for the month of November ever. It is $2.35 more California’s comparable Class 4b milk price. The 2012 Y-T-D average is $17.33/cwt., down $1.00 from January-November 2011.
• Class IV: $ 18.66/cwt., up 12¢ from October and 79¢ more than November 2011. The 2012 Y-T-D average is $15.84/cwt., down $3.41 from January-November 2011.
California Class 4b efforts move on two fronts
Efforts to get the California Department of Food and Agriculture (CDFA) to adjust the state’s Class 4b milk pricing formula moved forward on two fronts.
Assemblyman Dr. Richard Pan (D-Sacramento) introduced Assembly Bill 31 in the California Legislature. With language developed by Western United Dairymen (WUD), the bill would require CDFA to establish the price for class 4b milk using a dry whey value factor that is no less than 80% of the dry whey value used in federal milk marketing order Class III milk. Each handler’s plant in California that purchases milk for class 4b utilization would be allowed deduct a dry whey credit for quantities up to 264,480 lbs. solids-not-fat produced per month.
California Dairies, Inc. (CDI), Dairy Farmers of America – Western Area Council (DFA) and Land O’Lakes, Inc. (LOL) submitted a petition to CDFA requesting an emergency public hearing to consider a change to the Class 4b pricing formula. As in previous petitions denied by CDFA, this one seeks modifications to the sliding scale that translates market prices for dry whey into higher monetary contributions to the California Class 4b price. The change to the Class 4b milk pricing formula would remain in place for six months to give dairy producers milk price relief in the face of skyrocketing feed costs.
Cornell ‘dairy academy’ application deadline is Dec. 15
Cornell’s “Academy for Dairy Executives” is a management training program for up to 30 up-and-coming managers of dairies in western New York. The program involves three 2-day training sessions, in January, March and November of 2013. Applications will be accepted for the program through Dec. 15. A limited number of scholarships are available. Applications can be submitted online at: http://www.ansci.cornell.edu/prodairy/academy/.
Registration is now open for the 52nd National Mastitis Council (NMC) Annual Meeting, scheduled for Jan. 27-29, in San Diego, Calif.
Meetings will begin on Sunday and end Tuesday evening. General sessions and the “Technology Transfer” sessions will be held Monday and Tuesday. The featured symposium, “Where the Rubber Meets the Teat: Understanding and Managing the Milking Process at the Interface between Teats and Liners,” will be Tuesday afternoon.
Nine short courses will be held on Sunday afternoon/evening and Tuesday evening. An extra registration fee is required for the short courses.
The complete agenda and list of short courses can be found online at: http://nmconline.org/annualmeet/2013/.
MARKETS: Barrels lower
Today's market closing prices:
Butter: up 0.5¢, to $1.5850/lb.
Cheddar blocks: unchanged at $1.76/lb.
Cheddar barrels: down 2.25¢, to $1.68/lb.
Grade A nonfat dry milk: unchanged, at $1.5575/lb.
Extra Grade nonfat dry milk: unchanged, at $1.56/lb.
Due to technical difficulties, DairyProfit Update was unable to access CME milk and feed futures prices today.
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