DairyProfit Update for Oct. 8, 2012Print
22 dairy co-ops among ‘Top 100’
Kicking off October as National Cooperative Month, USDA released its annual list of the nation’s 100 largest agricultural cooperatives, based on 2011 revenues. Among the top 100, 22 were dairy co-ops.
Dairy Farmers of America (DFA), Kansas City, Mo. was the top dairy co-op, with $12.9 billion in revenue. Land O’Lakes Inc., St. Paul, Minn., a dairy, food and farm supply co-op, was second, with $12.8 billion in revenue in 2011. Land O’Lakes reported about one-third of the co-op’s total 2011 revenues came from its Dairy Foods Division, still making it the second-largest dairy co-op.
California Dairies Inc., at $3.66 billion, was third. Other dairy co-ops in the “Top 100” were: Northwest Dairy Association; Associated Milk Producers Inc.; Foremost Farms USA; Prairie Farms Dairy Inc.; Dairylea Cooperative Inc.; MD & VA Milk Producers Co-op; Agri-Mark Inc.; Select Milk Producers Inc.; Lone Star Milk Producers Inc.; Michigan Milk Producers; United Dairymen of Arizona; Upstate/Niagra; CROPP; NFO Inc.; Tillamook County Creamery; First District Assoc.; Swiss Valley Farms; Bongards Creameries; and Saint Albans Creamery.
While corn and soybean prices have declined sharply from their peaks, prices are still very high by any measure. The pace at which prices transition to lower levels will be determined by a number of factors, beginning with USDA's October production forecasts on Oct. 11, noted Darrel Good, University of Illinois ag economist. Prices over the past two months for corn and the past month for soybeans appear to be in the classic "short crop, long tail" pattern where prices peak early in a year of sharply lower production and then decline in the post-harvest period as the smaller supplies get rationed and production rebounds in the following year. A change in the trend of lower prices will require an additional supply shock or evidence that supplies have not been sufficiently rationed.
To update current and potential customers on advances in research and end-users' experience in feeding U.S. distiller's dried grains with solubles (DDGS), the U.S. Grains Council has released a third edition of A Guide to Distiller's Dried Grains with Solubles. New chapters and expanded feeding sections provide greater detail in feeding methods. The handbook includes information on low-oil DDGS in dairy cattle diets. The handbook also provides detail on the nutrient composition and digestibility of DDGS and recommended laboratory analytical procedures. To view the handbook online and download the PDF, visit www.grains.org or click here.
Chocolate milk sales fueled by Olympics
Summer chocolate milk sales rose significantly, coinciding with efforts to promote it as an after-workout sports recovery drink during the 2012 Summer Olympics. The Milk Processor Education Program initiative – REFUEL | “got chocolate milk?” – highlighted some of the world’s best athletes, underscored with the tagline “My After.”
• Sales volume in grocery, drug, club, dollar and military outlets grew 8.3% for the 13 weeks ending Sept. 9, when compared to the same period in 2011, according to RI/Symphony, a market research firm.
• July USDA statistics showed an 8.6% sales volume increase across all channels selling flavored milk.
MARKETS: Butter jumps back up, Class III futures up, too
Today's market closing prices:
Butter: up 6.5¢, to $1.9250/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: +7¢ to +32¢ through July 2013. Based on current CME closing prices, the average for October-December 2012 is $20.93/cwt.; the full year 2012 average is $17.63/cwt.; and the 2013 average is $18.63/cwt.
Corn, soybean futures lower; meal futures mixed
Corn: -2¢ to -8¢ through September 2013. The 2013 average is $6.97/bu.
Soybeans: -1¢ to -11¢ through September 2013. The 2013 average is $14.35/bu.
Soybean meal: -$3.10 to +$8.80/ton through September 2013. The 2013 average is $413.99/ton.
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