DairyBusiness Update for June 21, 2013

May dairy cow slaughter slows, but beef cow totals up

USDA estimated 247,700 culled dairy cows were slaughtered under federal inspection in May 2013, down 20,700 from April 2013, and 3,600 less than May 2012. Despite the slowdown, the January-May 2013 total was estimated at 1.347 million head, 52,500 more than the same period in 2012. 

While dairy cow slaughter has slowed somewhat, beef cow slaughter has picked up the pace, topping 307,500 head in May, the highest monthly total since November 2012, and bringing the January-May 2013 total to 1.333 million head, about 41,000 more than the same period a year ago.

 

Flavored milk to drive global fluid growth

According to new research from Tetra Pak, the world’s leading food processing and packaging company, global consumption of flavored milk is forecasted to grow by a compound annual rate of 4.1%, for a total of 13% between 2012 and 2015. That’s more than double the consumption growth rate of white milk (1.7% annually), and triple that of carbonated soft drinks.

There are many trends driving this growth, including urbanization, the desire for healthy foods, and the desire for indulgence as an escape during tough economic times. The growth in on-the-go in conveniently packaged, ready-to-drink portions directly relates to these trends. Growth will be driven by developing countries, led by China, India, Indonesia and Brazil.

Find the full report at http://www.tetrapak.com/food_categories/dairy/index/Pages/default.aspx

Cold storage inventories higher

May 31 butter stocks totaled 323.2 million lbs., up 4% from April 30, and 24% more than May 2012, according to USDA’s Cold Storage report, released June 21. Total cheese stocks, at 1.157 billion lbs., were up 3% from April 2013, and 8% more than May 2012. American cheese, at 717.9 million lbs., was up 3% from April, and 10% more than a year earlier.

 

Cattle on feed down 3% 

Cattle and calves on feed for slaughter market in U.S. feedlots with capacity of 1,000 or more head totaled 10.7 million head on June 1, 3% less than a year earlier, according to USDA’s Cattle on Feed report, released June 21. May placements totaled 2.05 million head (1.95 million net), down 2% from a year earlier. May fed cattle marketings totaled 1.95 million, down 3%.

Source: USDA

 

Mooney: Current immigration policy a threat to food security

Current immigration policy is threatening access to quality, affordable food in this nation, Dairy Farmers of America, Inc. (DFA) board chair Randy Mooney asserted during a USDA forum on comprehensive immigration reform in Kansas City.

U.S. Agriculture Secretary Tom Vilsack was the keynote speaker at the event. Former Kansas City mayor and current Congressman Emanuel Cleaver also voiced support for immigration policy reform.

“Because of America’s farmers, we enjoy abundant, safe and affordable food in this country,” Mooney said. “In order to ensure that continues, we need Congress to pass comprehensive immigration reform. For the dairy industry — an industry where there is no such thing as a day off — there is no viable visa program to provide a legal, stable and knowledgeable workforce that ensures milk and other dairy products get into the dairy case, our lunch programs and more.”

Mooney emphasized that the need for qualified workers is an issue bigger than dairy, pointing to specialty crops such as lettuce, strawberries and apples that also require labor that is not desirable to domestic workers. Similarly, a shortage of workers affects crop farmers, directly for their own farms and for farmers who buy their product.

 

MARKETS: Butter, barrels down again; Class III futures mixed

Today's market closing prices:

Butter: down 0.75¢, to $1.50/lb.

Cheddar blocks: unchanged at $1.7250/lb.

Cheddar barrels: down 0.5¢, to $1.7175/lb.

Grade A nonfat dry milk: up 0.5¢, to $1.73/lb.

Extra Grade nonfat dry milk: unchanged at $1.70/lb.

Class III milk: -13¢ to +2¢ through June 2014. Based on current CME closing prices, the 2013 average is $18.04/cwt.; and the 2014 average is $16.97/cwt.

 

Corn, soybean futures lower; soybean meal mixed

Corn: -3¢ to -11¢ per bushel through December 2014. Remaining 2013 average: $6.03/bu.

Soybeans: -4¢ to -12¢ per bushel through November 2014. Remaining 2013 average: $13.74/bu.

Soybean meal: -$2.70 to +$2.10/ton through December 2014. Remaining 2013 average: $404.40/ton.

 

This week in DairyBusiness Update:

1) Dairy sideshow: House Farm Bill vote turns into a three-ring spectacle.

2) May milk: Major dairy state, U.S. output up a little, but that's on top of strong May 2012 gain.

3) California ‘order’: Waiting on CDFA, a new study indicates state’s producers could benefit from a federal order.

4) TRENDS/NUMBERS: July Class I base steady; April fluid sales up; May cow culling down, but still well ahead of 2012. 

5) Washington: Two oceans – two trade negotiations (with dairy trade floating in the balance).

 

For a sample copy of DairyBusiness Update, or subscription information, visit http://dairybusiness.com/Update.php or phone: 800-334-1904, ext. 222.

 

Stay connected to DairyBusiness Communications on the go with the DairyBusiness News section on our HolsteinWorld APP for iPhone and Droid. Simply go to http://www.widgetbox.com/mobile/app/holstein-world-rblodgett 

 

(Website) (Facebook) (Twitter)