DairyProfit Update for Nov. 12, 2012

IDA leads effort to help dairy producers cut farm energy costs, use

The Idaho Dairymen’s Association (IDA) board’s Industry Relations Committee is leading an effort to help Idaho’s dairy producers increase energy efficiency, cut costs and save energy. IDA is  partnering with the Innovation Center for U.S. Dairy®, USDA-Natural Resources and Conservation Services, EnSave and others in the state.

“These are tough, economic times and producers are struggling to cash flow their farms,” said Tony VanderHulst, IDA’s new dairy producer president. “So, looking at every opportunity for helping them to find savings makes good business sense. We want our Farm Energy Efficiency effort to connect Idaho producers with information that will benefit their farms.” 

The campaign kicked off at the 2012 Annual Meeting of the United Dairymen of Idaho, held last week. The first step will be to encourage producers to get an energy audit that breaks down their energy bill and identifies areas for improvement. The second is to connect them to funds and services which allow them to make changes.

Visit http://idahodairymens.org.

September fluid sales continue trend

September 2012 packaged fluid milk sales totaled 4.29 billion lbs., down 5.2% from September 2011. But adjusted for calendar composition, the numbers weren't quite that bad. With adjustments, September 2012 sales totaled 4.40 billion lbs., down 1.5% from September 2011.

September sales of conventional products (unadjusted), at 4.12 billion lbs., were down 5.2%; organic products, at 174 million lbs., were down 4.5%. 

January-September 2012 total packaged fluid milk sales, at 39.20 billion lbs., were down 1.8% from the same period a year earlier (39.31 billion lbs. and down 1.5%, adjusted); conventional products, at 37.60 billion lbs., were down 2.0%; organic products, at 1.60 billion lbs., were up 2.4%. Organic represented about 4.1% of total sales.

California back on top as dairy exporter

A record year for U.S. dairy exports was mirrored in individual state export totals for 2011 according to latest estimates from USDA’s Economic Research Service (ERS). 

After a couple of years ranked as No. 2, California again became the leading dairy product exporting state, with $928.6 million in 2011. Wisconsin, the previous leader, was second, at $634.2 million.

Those two states alone saw the value of dairy exports improve from about $1.185 billion in 2010 to $1.563 billion in 2011, an increase of $378 million (32%).

Rounding out the Top 10 dairy product exporting states in 2011 (export totals in $ million) were: New York ($331.0); Idaho ($294.2); Pennsylvania ($282.0); Texas ($240.2); Minnesota ($217.7); Michigan ($214.5); New Mexico ($190.7); and Washington ($154.0).

Overall, 2011 U.S. dairy exports totaled $4.8 billion, an increase of nearly $1.1 billion from 2010. With one quarter to go in 2012, the U.S. is on pace ($4.0 billion, January-September 2012) to break the 2011 dairy export total.

Starting in 2007, ERS began making export share estimates based on each state’s dairy product production, instead of using data from shipping locations. ERS said ag commodities are frequently produced in inland states, but were previously credited to states where the products began their export journey. 

For more information, visit www.ers.usda.gov/data-products/state-export-data.aspx

FY ’12 dairy trade value is record high

The U.S. dairy trade story continues to be a bright one.

The value of U.S. dairy exports set a record high in fiscal year 2012 (October 2011-September 2012), at $5.271 billion, up 14% from FY ’11. FY ’ 12 dairy imports were also a record, up 10% from FY ’11, to $3.135 billion, but the resulting dairy value trade surplus was $2.136 billion, the largest ever.

At $403 million, the value of September 2012 U.S. dairy exports declined 7% from August and 4% from September 2011, but still surpassed $400 million for the 19th consecutive month. 

September exports were down about 5% by volume compared to August, according to the U.S. Dairy Export Council. NDM/SMP shipments were lighter (-18% vs. August and -3% from the third quarter of 2011). Cheese, butterfat and dry whey fell for the fourth straight month since peaking in May, with cheese volume the lowest since last October, and dry whey and butterfat the lowest in more than three years (daily-average basis). 

At $247 million, the value of September 2012 imports was down 4% from August  2012, but 19% more than September 2011. At $97 million, September cheese imports were up 12% from August 2012 and up 14% from September 2011. FY ’12 cheese imports are estimated at $1.06 billion, unchanged from FY ’11.