DairyBusiness Update for 9.11.13

EPA, Iowa DNR reach agreement on CAFO oversight

The U.S. Environmental Protection Agency (EPA) said it has reached an agreement with the Iowa Department of Natural Resources (IDNR) to make changes to Iowa’s Clean Water Act (CWA) permit and compliance program for concentrated animal feeding operations (CAFOs).

EPA’s investigation of Iowa’s permit and compliance program for CAFOs was carried out in response to a petition for withdrawal of the National Pollutant Discharge Elimination System (NPDES) program authorization from IDNR, filed in 2007 by the Iowa Citizens for Community Improvement, Sierra Club and the Environmental Integrity Project. 

Under the agreement, IDNR will conduct a comprehensive survey of all large CAFOs and medium animal feeding operations that currently don’t have CWA wastewater discharge permits; and conduct on-site inspections following agreed upon inspection procedures for all large CAFOs. 

For additional details, click here.

 

July dairy export values top $600 million again

The value of U.S. dairy product exports hit $619 million in July 2013, the second time it has topped $600 million in three months, and the second-highest monthly total ever. It marked the 28th time in the past 29 months exports topped $400 million, according to USDA’s Foreign Ag Service.

July exports were up 4% from June 2013, and up 54% from the July 2012 total of $402 million. At $245 million, the value of July 2013 imports was down 4% from June 2013 and down about 11% from July 2012.  The July dairy trade surplus (exports minus imports) was $374 million.

Fiscal year 2013 (FY ’13, October 2012 through July 2013) exports total $5.003 billion, up about 13% from the same period in record-setting FY ’12. FY ’13 imports total $2.696 billion, up about 2% from the same period in FY ’12. The FY ’13 dairy trade surplus stands at $2.307 billion.

At $91 million, July 2013 cheese imports were up 7% from June 2013 and up about 4% from July 2012. FY ’13 cheese imports total $953 million, up 9% from the same period in FY ’12.

 

NMPF, IDFA oppose Wisconsin ‘raw milk’ bill

For the second time in three years, organizations representing the nation’s dairy farmers and dairy companies jointly urged state lawmakers in Wisconsin to reject efforts allowing raw milk sales directly to consumers in the nation’s second-largest dairy state.

In a letter sent Tuesday to Wisconsin state senators, the National Milk Producers Federation (NMPF) and the International Dairy Foods Association (IDFA) said  the risks inherent in raw dairy products are not worth any purported benefits to either consumers or producers of unpasteurized milk products. The two associations urged lawmakers to reject Wisconsin State Senate bill 236, which would allow the state‐wide direct sale of raw milk. 

 

Pennsylvania August IOFC improves

Penn State University’s measure of income over feed costs (IOFC) rose 10.6% in August, according to the latest Dairy Outlook report from economist Jim Dunn. At $8.24/cow/day, the August IOFC is up 79¢/day from July, and the highest since December 2012. 

IOFC reflects daily gross milk income less feed costs for an average cow producing 65 lbs. of milk per day, and most of the improvement in August came from lower feed prices.  The August Pennsylvania all-milk price was up just 10¢/cwt. from July’s revised estimate, to $20.80/cwt. That results in daily gross milk income from a cow producing 65 lbs. of milk per day of $13.52. The cost to feed the same cow dropped 72¢, to $5.28/day. Lower corn (down 86¢/bushel), soybean meal (down 21%) and alfalfa hay (down 9%, to $189/ton) prices followed national trends. Read more ...

To read Dunn’s latest 2013 Dairy Outlook report, click here.

 

ARS researchers develop strategies to stop bovine TB

Scientists at the Agricultural Research Service (ARS) National Animal Disease Center in Ames, Iowa, are developing new methods to prevent and control TB in cattle and white-tailed deer. 

Veterinary medical officers Ray Waters and Mitch Palmer and microbiologist Tyler Thacker are collaborating with international groups, other U.S. government agencies, the cattle industry and private companies to combat TB. They are developing better tests to help producers identify and remove TB-infected cattle from herds and keep healthy animals.

The tuberculin cattle skin test has helped eradication efforts, but has drawbacks, such as a 72-hour waiting period for results, according to Waters. Interferon-gamma release tests require live white blood cells that must be processed quickly. Traditional serum tests would be more convenient and less expensive.

Scientists demonstrated that improved antigens—substances that cause the immune system to produce antibodies against foreign bacteria—are crucial in developing effective serum tests. Read more about this research in the September 2013 issue of Agricultural Research magazine.

 

MARKETS: Blocks & barrels higher; Class III futures mixed

Cash cheese moved higher this morning and butter took a breather, according to DairyBusiness Update associate editor Lee Mielke. Buyers took the block cheese price up 2¢ (following yesterday’s 1¢ rise) to $1.84/lb., the highest level since May 10. Two trades were at $1.8375/lb. but the next sale took it to $1.84/lb.; 1 bid at $1.84/lb. went unfilled. Two sales took the cheddar barrel price to $1.81/lb., but an unfilled bid inched it up another 0.25¢, to close at $1.8125/lb., up 1.25¢ on the day and set another high for the barrel price on the year.

Butter was quiet today following the 10 sales that occurred yesterday. The price remained at $1.45/lb., following 3 successive sessions of gain. Buyers were nowhere to be seen this morning, although a bid at $1.45/lb. went unfilled. An offer at $1.46/lb. saw no action either.

The buyers were in the nonfat dry milk market, where 2 sales moved the Grade A price up 0.5¢, to $1.82/lb. They sure wanted more, as 10 bids at $1.82/lb. were left on the board. Extra Grade remained at $1.78/lb., with no activity.

Today’s market closing prices:

Butter: unchanged, at $1.45/lb.

Cheddar blocks: up 2¢, to $1.84/lb.

Cheddar barrels: up 1.25¢, to $1.8125/lb.

Grade A nonfat dry milk: up 0.5¢, to $1.82/lb.

Extra Grade nonfat dry milk: unchanged, at $1.78/lb.  

Class III milk: -10¢ to +17¢ through December 2014. Based on current CME closing prices, the September-December 2013 average is $17.80/cwt.; with an overall 2013 average of $17.75/cwt.; and a 2014 average of $16.76/cwt.

 

Corn, soybeans up; soybean meal futures mostly up

Today’s futures prices at the Chicago Mercantile Exchange:

Corn: +2¢ to +5¢ through December 2014, settling in a range of $4.72-$5.08/bushel.

Soybeans: +1¢ to +5¢ through September 2014, with November 2013 through September 2014 contracts settling in a range of $12.36-$13.58/bushel.

Soybean meal: -$1.60 to +$3.40/ton through October 2014. October 2013-September 2014 contracts settled in a range of $380-$429/ton.


Thursday on DairyLine:

• Raw milk law debated in Wisconsin, again. National Milk’s Chris Galen reports.

• Ray Nebel from Select Sires has tips on using fans to keep your cows cool.

• Awaiting Thursday’s Crop Report from USDA, Lance Hoenig talks about how the data was gathered for the report.

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Looking ahead 

USDA issues its monthly Crop Production and World Agricultural Supply and Demand Estimate reports on Thursday, Sept. 12.  The WASDE report includes the latest 2013 and 2014 milk production and milk price forecasts. CDFA also holds its Class 4b/whey factor milk price hearing in Sacramento, Calif., on Thursday.

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Today in DairyBusiness Weekly:

(Our digital-only magazine)

• Countdown to World Dairy Expo: Meet World Dairy Expo’s team

• Innovation Center for U.S. Dairy sustainability awards

• California co-ops to hold FMMO meetings

Dairy trade outlook remains strong

Dairy Coach: How do you bring value?

• Dear Holstein Friends

• Diverse goals, great genetics across southern Wisconsin

30 years ago at World Dairy Expo

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