DairyProfit Update for Oct. 9, 2012
CWT assists with 1.1 million lbs. of cheese and AMF export sales
Cooperatives Working Together (CWT) accepted five requests for export assistance from Dairy Farmers of America and Darigold to sell 1.056 million lbs. of cheddar and Monterey Jack cheese, and 4,409 lbs. of anhydrous milk fat (AMF), to customers in Asia and Central America. The product will be delivered October 2012 through April 2013.
So far in 2012, CWT has assisted member cooperatives in making export sales totaling 96.9 million lbs. of cheese, 58.3 million lbs. of butter and 127,868 lbs. of AMF to 34 countries on four continents. On a butterfat basis, the milk equivalent of these exports is 2.169 billion lbs., or the same as the annual milk production of 103,200 cows.
Manure energy could replace coal
Wisconsin can be a national leader in bioenergy production using waste from the state's prosperous agriculture and food processing sectors, according to a recent Wisconsin Bioenergy Initiative (WBI) study. In dairy cow manure alone, the report found 4.77 million dry tons available per year, which is the potential energy equivalent of replacing a large-scale coal plant.
The research identified high-density biomass sources that create opportunities for regional production. These clusters present an opportunity to produce energy from waste without disrupting other state industries. The waste can be diverted from dairy farms, food processing facilities, landfills and municipal wastewater treatment plants into biogas.
The report was part of an effort coordinated by the Wisconsin Division of Energy Services with WBI and Baker Tilly to assess the opportunity and effect of renewable energy production in Wisconsin. The report, titled "Wisconsin Strategic Bioenergy Feedstock Assessment," can be downloaded at http://www.wbi.wisc.edu/policy-analysis/.
Coming later this week
• Oct. 10: California Class 1 milk prices
• Oct. 11: USDA Crop Production and World Ag Supply & Demand Estimates reports
• Oct. 11-12: U.S. ag and dairy trade updates
MARKETS: Butter up, Class III futures mixed in a narrow range
Today's market closing prices:
Butter: up 1.5¢, to $1.94/lb.
Cheddar blocks: unchanged, at $2.10/lb.
Cheddar barrels: unchanged, at $2.06/lb.
Grade A nonfat dry milk: unchanged, at $1.66/lb.
Extra Grade nonfat dry milk: unchanged, at $1.6350/lb.
Class III milk: -14¢ to +5¢ through December 2013. Based on current CME closing prices, the average for October-December 2012 is $20.85/cwt.; the full year 2012 average is $17.62/cwt.; and the 2013 average is $18.66/cwt.
Little movement in grains
Corn: steady to +2¢ through September 2013. The 2013 average is $6.98/bu.
Soybeans: -1¢ to +2¢ through September 2013. The 2013 average is $14.38/bu.
Soybean meal: -$1.60 to -$0.10/ton through September 2013. The 2013 average is $414.38/ton.
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