DairyBusiness Update for 10.25.13

Lawmakers urge MILC extension 

A bipartisan group of lawmakers sent a letter to Senate Ag Committee leaders, urging extension of the Milk Income Loss Contract (MILC) program until a new dairy program is implemented.

Both House and Senate-passed Farm Bills put a new margin protection program in place, but it will take several months to implement, the lawmakers said. During this time, the Senate-passed Farm Bill extends the MILC program until farmers can enroll in the new dairy program. However, the House-passed bill does not, and provides no immediate safety net during this period, only a retroactive payment once the new program is up and running.

Signing the letters were Sens. Tammy Baldwin (D-WI), Kelly Ayotte (R-NH), Susan Collins (R-ME), Al Franken (D-MN), Angus King (I-ME), Bernie Sanders (D-VT), Jeanne Shaheen (D-NH), Chuck Schumer (D-NY), Chris Murphy (D-CT), Kirsten Gillibrand (D-NY), Jack Reed (D-RI), Ben Cardin (D-MN) and Robert Casey (D-PA).


First public meeting for 2013 Farm Bill Conference Committee announced 

House and Senate Agriculture Committee leaders announced the first public meeting for the 2013 Farm Bill conference committee will be held next week on Wednesday, Oct. 30 at 1:00 p.m. ET in room 1100 of the Longworth House Office Building (the Ways and Means Committee Room). The agenda for the meeting of conferees will include opening statements and discussion of H.R. 2642, The Federal Agriculture Reform and Risk Management Act of 2013. Read more …

Visit the Committee Business Meeting webpage for additional information as it is made available.


‘Mid-Atlantic Secure Milk Supply Plan’ stakeholders meeting

A group of stakeholders were scheduled to meet, Oct. 25, to develop the Mid-Atlantic Secure Milk Supply Plan (SMS), according to Mike Oscar, writing in the Northeast Dairy Farmers Cooperatives’ NDFC Newsletter. The purpose of the plan is to protect the dairy industry in the event of a severe disease outbreak such as foot and mouth disease. 

Since movement of both milk and animals will potentially be severely disrupted should an outbreak occur, it is essential that a plan be in place to minimize this negative impact on all aspects of our dairy industry, Oscar wrote. States to the south of Pennsylvania, spearheaded by Virginia and working under a cooperative agreement with USDA, have taken significant steps in developing an SMS program. The cooperative agreement allows for Pennsylvania to be included in this effort, and the state’s Department of Agriculture (PDA) has decided it is in the best interests of its dairy industry to move forward with this initiative. 

Dr. Craig Shultz, Director, Bureau of Animal Health and Diagnostic Services, agreed to take the lead on behalf of PDA. During the Oct. 25 meeting, representatives of the SMS were to explain the general concept of the plan, provide additional background information, and report on plan development.


UHT milk provides growing export opportunity

Chinese demand for imported UHT milk is soaring, according to the U.S. Dairy Export Council (USDEC). Consumption jumped from nearly 18 million lbs. in 2010 to a forecast 331 million lbs. this year. Demand scenarios suggest China’s appetite for imported UHT milk could grow fourfold to more than 1.3 billion lbs. by 2020.

A growing economy and higher incomes and accelerated urbanization cultivated the drive to consume more and better food, including UHT milk, according to Ross Christieson, USDEC senior vice president, market research and analysis. Food safety concerns play a role in the appeal of imported UHT milk.

Among steps to help the U.S. gain a larger share of the Chinese UHT market, USDEC recommends U.S. suppliers need to develop products that better match Chinese expectations. For example, U.S. UHT milk is primarily consumed in half-pint and pint boxes and bottles, but the Chinese UHT market is dominated by 1-liter boxes.

The opportunity is broader than strictly UHT milk and China. USDEC sees potential in other Asian markets, including the Philippines, and for additional products such as UHT cream and lactic acid beverages.


Checkoff helps Pizza Hut introduce new 3-Cheese Pizza

The dairy checkoff provided Pizza Hut® important consumer insights during the development of its 3-Cheese Stuffed Crust Pizza, the first permanent new pizza product added to the chain’s menu in nearly two decades.

Dairy Management Inc. (DMI), which manages the national dairy checkoff, provided Pizza Hut consumer trend analysis related to “millennials” (those born between the early 1980s and mid-1990s) and consumer preferences on cheese blends. 3-Cheese Stuffed Crust Pizza features a combination of cheddar, mozzarella and provolone cheeses. 

The 3-Cheese Stuffed Crust Pizza became available Oct. 20 across the country.


National Dairy Council and Feeding America Featured in National Media

An example of the work of National Dairy Council® (the nutrition education and communications arm of the dairy checkoff) with Feeding America and the Academy of Nutrition and Dietetics to address the nation’s hunger issue appears in a video blog produced by The Washington Post Company.

The story, developed through the checkoff’s partnership with the Post and featured on www.washingtonpost.com for key thought leaders and consumers, highlights the Northern Illinois Food Bank, which received a $10,000 grant from National Dairy Council, Feeding America and the Academy of Nutrition and Dietetics. Ten food banks across the country each received a $10,000 grant in May to support nutrition education efforts and help increase access to nutrient-rich food choices, including low-fat milk, cheese and yogurt.

Around 49 million Americans today are food insecure and 37 million use food banks to provide food for themselves and their families, according to Feeding America.


Fuel Up to Play 60 Launches ‘Make Your Move’ Campaign

Fuel Up to Play 60 will launch the “Make Your Move” campaign in late October to inspire students to get 60 minutes of activity each day. The campaign, which aims to elevate the profile of Fuel Up to Play 60, allows students and schools to access ideas and tips on how to get their school moving at www.FuelUpToPlay60.com.

A “Make Your Move” video at the site features Fuel Up to Play 60 student ambassadors challenging NFL players, mascots and cheerleaders to match their favorite “move.” Between Oct. 29 and the end of November, students will have a chance to win exclusive NFL prizes and funds for their school to support physical activity programs.   


Mielke’s Market Daily

(A daily wrap-up of dairy markets and the things affecting them, from DairyBusiness Update associate editor Lee Mielke)

Things looked a little brighter in the cash dairy market in Chicago, taking this week’s Dairy Products report in stride. Cash cheddar block cheese, on 2 sales, closed this morning at $1.8750/lb., up 1¢ on the day, following a gain of 0.75¢ yesterday. Two bids at that price went unfilled. Barrel finished at $1.82/lb., up 2¢. Four sales were accomplished, ranging from $1.80 to $1.82/lb., with 2 bids at $1.81/lb. going unfilled.

The blocks are up 1.75¢ on the week, but 24.5¢ below this week a year ago. The barrels are up 5.75¢ on the week, but 26¢ below a year ago. The spread is now closer at a more typical 5.5¢.  Five cars of block traded hands this week; 11 of barrel.

Double A butter was unchanged again this morning, holding at $1.4750/lb. Two bids at that price went unfilled, with 1 offer at $1.48/lb. going uncovered.

Grade A nonfat dry milk jumped 3.25¢, following yesterday’s 0.75¢ gain, and closed the day and the week at $1.90/lb., up 4¢ on the week. Grade A was up 3¢ this morning and the week, hitting $1.85/lb. Today’s activity consisted of 1 sale, 1 bid and 1 offer of Grade A, all at $1.90/lb., while 5 bids at $1.85/lb. Extra Grade got no response.

Today’s market closing prices:

Butter: unchanged, at $1.4750/lb.

Cheddar blocks: up 1¢, to $1.8750/lb.

Cheddar barrels: up 2¢, to $1.82/lb.

Grade A nonfat dry milk: up 3.25¢, to $1.90/lb.

Extra Grade nonfat dry milk: up 3¢, to $1.85/lb.

Class III milk: -4¢ to +6¢ through December 2014. Based on current CME closing prices, the Q4  2013 average is $18.27/cwt.; with an overall 2013 average of $17.90/cwt.; and a 2014 average of $16.93/cwt.


Corn, soybeans, soybean meal futures slightly lower

Today’s futures prices at the Chicago Mercantile Exchange:

Corn: slightly lower through December 2014, settling in a range of $4.40-$4.83/bushel.

Soybeans: -10¢ through November 2014. November 2013 through August  2014 contracts settled in a range of $12.37-$13.00/bushel.

Soybean meal: -$1.20 to -$4.10/ton through December 2014. December 2013-September 2014 contracts settled in a range of $373-$424/ton.


USDA reports rescheduled

The government shutdown resulted in several USDA reports being rescheduled. The Oct. 21 September Milk Production report will be issued on Nov. 1. The Oct. 22 September Cold Storage report will be released Oct. 31, and the Oct. 24 Livestock Slaughter report will be out Oct. 31, along with the monthly Ag Prices report. The next issue of Dairy Market News will be released Friday, Nov. 1.


Monday on DairyLine:

• NY dairy producer Audrey Donahoe tells us about a website that has proved to be a great resource for both producers and consumers.

• Lynne McBride with California Dairy Campaign comments on why California needs to join the federal order milk marketing system.


Today on Facebook


• Photo of the Day: Keeping an eye on the herd! The Walker family cat, Tiger, was spotted overseeing a recent classification at Walk-Era Farms in Wisconsin Dells, Wisconsin. ~Photo by Marci Walker #HolsteinWorldPOTD

NY Holstein Harvest Sale Preview. The Livestock Pavilion at Cornell University is buzzing this week as the Cornell University Dairy Science Club, NY Holstein Association and The Cattle Exchange prepare for the NY Holstein Harvest Sale, taking place at 11AM on Saturday, Oct. 26 in Ithaca, NY. You can click here to view the online catalog.


Today in DairyBusiness Update:

1) California: For 4b/whey factor, there's an extension (but not accord)

2) Mielke: USDA dairy reports getting back on track; Ukraine mission features dairy

3) Trends: November prices for Class 1, Class I base highest of the year

4) Industry: Dairy company and organization news updates

5) Washington: Farm Bill Conference Committee first public meeting is Oct. 30


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