DairyProfit Update for Oct. 23, 2012

BTSCC: U.S. milk quality continues to rise

The quality of milk marketed through several federal milk marketing orders continues to improve, according to a new report from USDA’s Animal and Plant Health Inspection Service (APHIS). “Determining U.S. Milk Quality Using Bulk-tank Somatic Cell Counts, 2011,” released in September 2012, summarizes analysis of U.S. milk quality using bulk-tank somatic cell count (BTSCC) data in four federal milk marketing orders – Central Upper Midwest, Mideast and Southwest.

The milk-weighted geometric BTSCC mean in 2011 was 206,000 cells/mL compared with 224,000 cells/mL in 2010, a decrease of 18,000 cells/mL. The producer shipment

BTSCC – which is a geometric, nonmilk-weighted mean of all shipments – decreased from 272,000 cells/mL in 2010 to 259,000 cells/mL in 2011.

More than 99% of milk and 98% of shipments monitored met the current U.S. Pasteurized Milk Ordinance (PMO) limit of 750,000 cells/mL. In 2011, during all monitored months, BTSCCs in 92.7% of milk were less than 400,000 cells/mL.

To find the full report, visit www.aphis.usda.gov/animal_health/nahms/dairy/downloads/dairy_monitoring/BTSCC_2011infosheet.pdf

NMPF revitalizing REAL® Seal

As part of its efforts to revitalize one of the most recognized product symbols in the food industry, the National Milk Producers Federation (NMPF) announced that the REAL® Seal is undergoing a makeover. The first step in that process was taken Oct. 23, with the launch of a revamped website: www.realseal.com.

To address expanded use of the REAL® Seal, the seal itself is in the process of being tailored to other applications. Terms like “Made With” real dairy, and “American Made,” along with specific dairy product names, will be stacked above and below the basic REAL® Seal.

“Our goal is to have a fully integrated program up and running early in 2013,” said Jerry Kozak, NMPF president and CEO. “We know dairy farmers are enthusiastic about the REAL® Seal, and we’re excited about the tremendous potential this has for expanding sales of REAL® dairy products made from U.S. dairy farmers’ milk.”

CWT assists with 2.6 million lbs. of cheese and butter export sales

Cooperatives Working Together (CWT) accepted nine requests for export assistance from Dairy Farmers of America, Darigold, Foremost Farms, Land O’Lakes and United Dairymen of Arizona to sell 2.262 million lbs. of cheddar, gouda and Monterey Jack cheese and 330,693 lbs. of butter to customers in Asia, the Middle East, North Africa and the South Pacific. The product will be delivered October 2012 through March 2013.

So far in 2012, CWT has assisted member cooperatives in making export sales of 102 million lbs. of cheese, 58.7 million lbs. of butter and 127,868 lbs. of anhydrous milk fat to 34 countries on four continents. On a butterfat basis, the milk equivalent of these exports is 2.225 billion lbs., or the equivalent of 60% of the increase in U.S. milk production through September.

CMAB adds innovative marketing tools

The California Milk Advisory Board (CMAB) is utilizing new advertising spots, interactive gaming and technology to show that no matter how much the world has shifted, California milk and dairy products remain an important and relevant part of modern family life.

• Make Us Part of Your Family: In the newest series of CMAB ads, the cows have evolved. Directed with the comic touch of Fred Savage of the Wonder Years fame, the California cows join everyday families in a world of texting, Facebook, and lip synch videos.

• The California Dairy Industry’s Got Game: A California cow and the Real California Milk Seal are now permanent fixtures in Farmville, the seventh most played game on the planet with over 1 million California cows already living on virtual farms. The CMAB also created a customized game called Cow Spotter that lives on wildtangent.com and on the RealCaliforniaMilk.com website. In addition to fun and games with California’s beloved cows, an upcoming mobile phone app will use breaking technology to allow consumers to personally make California dairy part of their family.

For more information, visit www.RealCaliforniaMilk.com.

MARKETS: Cheese moves higher, but Class III futures drop

Today's market closing prices:

Butter: down 1.25¢, to $1.89/lb.

Cheddar blocks: up 3.5¢, to $2.0450/lb.

Cheddar barrels: up 4.0¢, to $2.01/lb.

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

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

Class III milk: 5¢ to 32¢ lower, December 2012 through June 2013. Based on current CME closing prices, the average for October-December 2012 is $20.62/cwt.; the full year 2012 average is $17.56/cwt.; and the 2013 average is $18.65/cwt.

Soybean, meal futures move higher

Corn: -1¢ to -5¢ through July 2013. The 2013 average is $7.10/bu.

Soybeans: steady to +7¢ through September 2013. The 2013 average is $14.51/bu.

Soybean meal: +$0.70 to +$5.30/ton through September 2013. The 2013 average is $417.35/ton.

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