DairyBusiness Update for Nov. 19, 2013

October milk production up 1.0%
October 2013 U.S. milk production in the 23 major dairy states totaled 15.36 billion lbs., up 1.2% from October 2012, according to preliminary data in USDA’s latest Milk Production report. Cow numbers totaled 8.5 million head in those states, down 2,000 from September, but 36,000 more than a year ago. Output per cow averaged 1,806 lbs., up 14 lbs. from a year ago.

Revisions lowered the original September estimate by 13 million lbs., to 14.8 billion lbs., up 1% from a year ago.

Nationally, October 2013 production was estimated at 16.43 billion lbs., up 1% from a year earlier. Cow numbers were estimated at 9.2 million head, down 3,000 from September, but up 13,000 from October 2012.

Looking at individual states compared to a year earlier, California output was up 1% despite a 15-lb. per cow drop in production; cow numbers were up 3,000 head. Wisconsin was up just 0.9%, although output per cow was up 15 lbs., and cow numbers were up 1,000 head. Read more …

 

U.S. September dairy exports down, but strong

U.S. dairy export volumes cooled in September vs. prior months, but were still up significantly from a year ago,  according to a monthly summary from the U.S. Dairy Export Council. Pricing relationships remain favorable for U.S. suppliers and global demand is steady. Oceania and European supply is recovering, creating more competitive pressure, but the United States has continued to gain share of the global market throughout 2013.

Declining month-over-month sales were mostly a reflection of seasonally low output of milk powder, whey products and cheese. For instance, production of nonfat dry milk/skim milk powder (NDM/SMP) in September was just 59,240 tons, down from a peak of more than 93,000 tons in May. Even so, U.S. suppliers exported 77% of their NDM/SMP production during September, and exports were up 36% from last year.

On a volume basis, exporters shipped 157,267 tons of milk powder, cheese, butterfat, whey and lactose during September, up 22% from the prior year.

On a value basis, U.S. dairy exports were nearly $593 million in September, up 48%. That brought year-to-date export values to $4.92 billion, 26% ahead of last year’s pace. Read more ...

 

FY 2013 dairy export values top $6 billion

The value of U.S. dairy product exports hit $6.22 billion in fiscal year 2013 (October 2012-September 2013), up  18% from $5.27 billion in FY 2012, and a new record high. September 2013 exports, estimated at $590 million, although down 5% from August, represented the seventh straight month monthly exports topped $500 million.

FY 2013 dairy product imports were estimated at $3.17 billion up about 1% from FY 2013. Cheese imports totaled $1.15 billion, up 8% from FY 2012.

September U.S. dairy cattle exports surge

September2013  U.S. female dairy cattle exports totaled 8,067 head, the third highest monthly total of the year, according to USDA’s Foreign Ag Service.

The 2013 year-to-date total – at 49,592 – has already surpassed the total for all of 2012, and closed the gap on the export pace during record-setting 2011. About 52,630 head were exported during the January-September period in 2011, a year that saw annual exports total 73,639 head.

Russia was the top destination for U.S. replacements during September, at 4,697 head. Turkey was second, at 1,832 head, followed by Mexico, at 1,325 head.

 

September U.S. alfalfa exports ‘average’

September 2013 U.S. alfalfa hay exports totaled 162,414 metric tons, similar to monthly averages so far in 2013, according to USDA’s Foreign Ag Service. September’s exports bring the 2013 year-to-date total to 1.451 million metric tons.

China was the top market in September, at 55,762 metric tons, followed by the United Arab Emirates (UAE), at 50,981 metric tons, and Japan, at 32,707 metric tons.

 Meanwhile, monthly U.S. exports of other hay totaled 166,538 metric tons in September, the highest total in eight months. Japan and South Korea were the top two markets, taking about 73% of the monthly total.

 

McDonald’s thanks the nation’s early risers: Dairy farmers

You have to get up pretty early to provide the milk that allows McDonald’s® to have cheese for its breakfast sandwiches, milk for its coffee drinks and yogurt in its smoothies.

Recognizing this commitment, McDonald’s showed its appreciation for the nation’s early risers – America’s dairy farm families – in a video shown at the 2013 Joint Annual Meeting of the National Dairy Board, National Milk Producers Federation and United Dairy Industry Association.

The video is posted at the checkoff’s www.dairygood.org web site, which provides an online forum to help reconnect consumers with dairy farming so they better understand “where good comes from.”This is in addition to the sales-building activities that McDonald’s and the checkoff have completed as part of a multi-year partnership that has seen billions of pounds of additional milk sold through new and reformulated products. This includes the testing and introduction of 27 new dairy-friendly products in 2013 alone! 

For more information about dairy checkoff partnerships, visit www.dairy.org

 

‘Protecting Your Profits’ call is Nov. 20

Pennsylvania’s Center for Dairy Excellence (CDE) will host a “Protecting Your Profits” conference call on Nov. 20, 12-12:15 p.m. Alan Zepp, CDE risk management program manager for the center,  will discuss global and domestic issues influencing prices for dairy and other commodities in the next 10 months, with a brief review of risk management opportunities available, and an update on the status of Livestock Gross Margin (LGM-Dairy) margin insurance.

There is no charge to participate in the call, but pre-registration is required. To register, call the center at 717-346-0849 with name, phone number, and e-mail address. Once registered, participants will receive the call-in number and information. Calls are hosted in a webinar format to be recorded and made available for later viewing. Past Protecting Your Profits calls can be accessed at www.cenerfordairyexcellence.org under “Dairy Information.” 

 

Mielke’s Market Daily

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

Cash dairy traders were anticipating today’s Global Dairy Trade auction and this afternoon’s October Milk Production report. The block cheese price was unchanged again this morning, holding at $1.82/lb. Two bids at the current price went unfilled. The barrels inched down 0.25¢, to $1.7550/lb., on an uncovered offer. The spread now stands at 6.5¢.

Butter was unchanged this morning, holding at $1.65/lb. Five carloads were sold, all at $1.65/lb. Two offers at $1.67/lb. got no takers.

FC Stone market analyst, Ryan Cox wrote in this morning’s eDairy Insider Opening Bell that "We will see some last-minute holiday demand. We still have Christmas, then the Super Bowl, so we'll see additional demand going forward."

Cash Grade A nonfat dry milk was offered down another 0.75¢, following yesterday’s 0.25¢ loss, and is now trading at $1.9650/lb. Extra Grade remained at $1.9650/lb., following yesterday’s 6.5¢ jump on an unfilled bid. There was no activity today.

Today’s market closing prices:

Butter: unchanged, at $1.65/lb.

Cheddar blocks: unchanged, at $1.82/lb.

Cheddar barrels: down 0.25¢, to $1.7550/lb.

Grade A nonfat dry milk: down 0.75¢, to $1.9650/lb.

Extra Grade nonfat dry milk: unchanged, at $1.9650/lb.

USDA announces the December federal order Class I base milk price tomorrow afternoon. The monthly Livestock Slaughter report is out Thursday, and the October Cold Storage report is released Friday afternoon.

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Wednesday on DairyLine:

• Marketing like a marathoner – Scott Stewart, Stewart-Peterson

• The Art of Negotiation – Rob Wilson, The Gap Partnership

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Tomorrow in DairyBusiness Weekly:

(Our digital-only magazine)

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Other headlines  

2013 ADADC annual meeting addresses decrease in fluid milk consumption

Statement by Bob Stallman, President, American Farm Bureau Federation, Regarding EPA’s Proposed Cut to the RFS2

OSU: 2013 Farm Bill Update - November 2013

Kraft Wins Battle Over Cracker Barrel Label, For Now

Great Lakes Cheese Breaks Ground On Expanded Cold Storage Facility

SD Legislative Panel OKs Proposed Raw Milk Rules

Smith Dairy Recognized With Natural Gas Vehicle (NGV) Achievement Award

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