Organic Infighting Now Official

Andy VanceCompetition, Dairy Business, Dairy Group, Markets, Milk, Production

Organic and “natural” or “whole” foods comprise one of the fastest growing niches in food marketing today. Consumers are open to messaging decrying conventional commodity agriculture and touting products that are somehow more wholesome and nutritious due to their specialized production style. These interests are now attempting to eat their own, it appears. The Cornucopia Institue, which claims to be a non-profit food policy lobby, has filed formal compliant with USDA requesting investigations into Aurora Organic Dairy near Dublin, Texas. Cornucopia claims that the dairy, whose cows number somewhere between 3000 and 5000, violates numerous organic regulations “governing the management of its livestock at the factory-farm operation.”

This is not, however, the first time that Cornucopia has gone after fellow Organic supporters. Last winter, the Institute tackled Horizon Organic Dairy and one of its facilities in Idaho, alleging basically the same thing. Horizon and Aurora combined are perhaps the largest slice of the Organic milk production in the country, and as such, fairly large targets.

The question of these dairies meeting the prescribed regulations may be valid. The folks asking the questions, however, may have a vested interest here. In his blog Milk Is Milk, Alex Avery dissects who is really behind the Cornucopia Institute, and discovers that one of the founders is, at the very least, a former consultant and lobbyist for Organic Valley Dairy. Conflict of interest? It certainly appears as such. Avery’s thesis is that Cornucopia may very well be a tax-free marketing arm of Organic Valley, seeking to discredit the co-op’s largest competitors, if not to earn them some hefty fines and bad publicity.

This situation is concerning, at the very least, because of the bad press it may bring to the dairy industry in general. Great marketing always has the potential to offend someone, but dairy marketers need to walk a thin line to avoid turning consumers off to not just their competitors, but to milk in general.

FluNix-D Approved for Lactating Cows

Chuck ZimmermanAnimal Health

AgriLabs The FDA has approved FluNix-D for use in lactating dairy cows, according to a release from AgriLabs of St. Joseph, MO. FluNix-D (flunixin meglumine) is a Non-Steroidal Inflammatory Drug (NSAID) that reduces the fever and inflammation caused by Bovine Respiratory Disease (BRD) and endotoxemia.

FluNix-D may be administered intravenously or intramuscularly. The compound breaks down quickly in the animal’s body and is cleared from the bloodstream via the urine. FluNix-D has a 36-hour milk withdrawal and four-day meat withdrawal in lactating dairy cows.

Dairyline Markets In Review

Chuck ZimmermanDairyline, Markets

DairylineDairy Markets Week in Review

Cash block cheese ended the week at $1.16 per pound, unchanged from last week, but 28 1/4-cents below a year ago. That’s when block and barrel both dropped 10 3/4-cents. Barrel closed Friday at $1.1150, down a half-cent on the week, and 28 3/4 cents below a year ago. Eleven cars of block were sold this week and 10 of barrel. The NASS-surveyed U.S. average block price slipped to $1.1623, down 1.6 cents. Barrel averaged $1.1670, down 0.4 cent.

Butter closed the week at $1.1525, up three quarter cents, but 43 3/4-cents below a year ago. 19 cars sold. NASS butter averaged $1.1267, down 0.2 cent.

Provided courtesy of Dairyline.

CWT Export Assistance Bids

Chuck ZimmermanExport, International

Cooperatives Working TogetherHere’s the latest announcements from Cooperatives Working Together:

  • Cooperatives Working Together announced Monday that it has accepted an export assistance bid for the sale of cheese. The bid is from Land O’Lakes of Arden Hills, MN, for the export of 145 metric tons (319,000 pounds) of Mozzarella cheese to Saudi Arabia. CWT will pay an export bonus to the bidder, once completion of the cheese shipment is verified.
  • Cooperatives Working Together announced Tuesday that it has accepted an export assistance bid for the sale of butter. The bid is from Dairy Farmers of America of Kansas City, MO, for the export of 19 metric tons (41,800 pounds) of butter to Mexico. CWT will pay an export bonus to the bidder, once completion of the butter shipment is verified.
  • Cooperatives Working Together announced Thursday that it has accepted an export assistance bid for the sale of whole milk powder. The bid is from Land O’Lakes of Arden Hills, MN, for the export of 40 metric tons (88,000 pounds) of whole milk powder to Guatemala. CWT will pay an export bonus to the bidder, once completion of the milk powder shipment is verified.

    • Missiles Destroy Dairy Plant in Lebanon

    Chuck ZimmermanInternational

    The violence in the middle east has had an effect on the dairy business. According to a story on Mirror.co.uk, the Libanlait milk farm and processing plant, near Hosh el Sneid, in the Bekaa Valley was destroyed by missile fire. The manager sounds like a hero though.

    “We distribute milk to the whole of the region. We’ve no idea why we were targeted. But I’m not leaving. Our duty is to stay here and rebuild.”

    Dairy Program Review

    Chuck ZimmermanGovernment

    Hopefully, members of the Senate Agriculture Committe were not expecting to get any clear consensus on U.S. dairy programs from the four witnesses who testified on behalf of the industry during a committee hearing in Washington on Thursday.

    There was some agreement between Jim Green, representing the International Dairy Foods Association, and Ken Hall of Idaho, who spoke on behalf of the Idaho Dairymens Association. Both clearly stated that current dairy price support programs need to be changed.

    “Most of our dairy policies were enacted in the 30s and 40s, although Congress has layered on new programs in recent years,” said Green. “The current set of programs is failing our industry and the consumer as well.”

    Hall said nearly the same thing. “If the intent of the government support programs is to provide an adequate return on time and investment, then the outcome shows that the programs have failed.” He noted that in 1981, the Class 3 price averaged 12.57, in 2000 it averaged 9.74, and dipped as low as 8.57 in November 2000. “This extreme volatility and pricing lower than prices received over 30 years ago is a direct result of failed government programs that do not allow the market system to work.”

    Both Green and Hall stated that the dairy price support program and the MILC program are in conflict with each other and should be re-evaluated in the next farm bill.

    Leon Berthiaume with St. Albans Cooperative Creamery, Inc. in Vermont disagreed. “(MILC) has provided much needed economic assistance to our farms in Vermont when prices have become so depressed,” he stated. “I believe we need to understand that MILC is not a cost, but an investment in dairy farms, agribusinesses, processors and our rural communities.”

    Charles Beckendorf, speaking for the National Milk Producers Federation, testified that the price support program is “an effective, efficient, and equitable safety net program that continues to benefit all dairy producers.” However, he noted that Congress did not include a “supplemental payment program” in the 2002 Farm Bill, as supported by NMPF, to provide a broader safety net for producers. “Instead they created a new direct payment program, which came to be known as MILC. NMPF at this time still remains neutral on the MILC program.”

    So, if you are keeping score – that was two votes against MILC, one in favor and one abstaining.

    Written testimony, as well as an audio file of the full hearing, can be found on the Senate Ag Committee website.

    Reality-Driven Pricing for Corn Silage

    Chuck ZimmermanAudio, Forage Forum, Pioneer Hi-Bred, Podcast

    Pioneer Hi-Bred Forage Forum PodcastShould the cost of purchasing corn silage be driven by quantity or quality? Dr. Bill Mahanna, coordinator of global nutritional sciences for Pioneer Hi-Bred, believes in retiring the 30-year-old rule of thumb, the Board of Trade price for corn times seven or eight. Current lab methods and credible indexes are more accurate in determining relative values to dairy operators and fairly compensating silage growers. Bill details various pricing opportunities in a spreadsheet, which he’s willing to share. For a copy, e-mail him at bill.mahanna@pioneer.com.

    Listen to these observations and let Bill know your thoughts. Listen To MP3 File Dr. Bill Mahanna on reality-driven silage pricing (3 min MP3)

    Forage Forum is a regular podcast which you can subscribe to on your computer. Visit our “How To Subscribe To Forage Forum” page for instructions. If you’re already familiar with podcasting you can use this link to subscribe or you can also easily subscribe in iTunes.

    Holstein Women's Scholarships Announced

    Chuck ZimmermanDairy Group, Holstein Association

    Holstein Women's Scholarship WinnersThere’s more news from the Holstein folks. This time it’s about the winners of their Women’s Scholarships.

    The National Holstein Women’s Scholarship Organization is proud to announce the 2006 recipients of their annual scholarships. Six scholarships totaling $7,500 were awarded to youth at the 2006 National Junior Holstein Convention in Sioux Falls, S.D.

    The 2006 National Holstein Women’s Scholarship recipients are: (from left) Susan Davenport, NHWSO Vice President, John Mitchell, Winnebago, Ill.; Annie Specht, Dover, Ohio; Laura Leazer, Wilton, Iowa; Sonja Galley, Garrattsville, N.Y.; Esther Rupp, Seville, Ohio; and Krista Sheehan, Rochester, Minn.

    Dairy Group Cooperation Down Under

    Chuck ZimmermanDairy Group, International

    Dairy InSightGetting more bang for their buck only makes sense to these Australia and New Zealand groups. Makes sense to me too.

    Australian and New Zealand dairy farmers will drive their levy dollars further with their two service organisations agreeing to share research, development and extension activities across the Tasman. Dairy Australia and New Zealand’s Dairy InSight will undertake ‘collaborative activities’ to reduce duplication and provide opportunities for co-ordinated research between the two countries.     Read More

    Holstein Junior and Young Juniors

    Chuck ZimmermanHolstein Association

    Distinguished Junior Award Winners 2006Holstein Association USA has some winner pictures for you.

    The Holstein Association USA, Inc. is proud to announce the winners of its highest Junior honor, the Distinguished Junior Member (DJM) award. Six youth were named DJMs at the Junior Awards Banquet on June 24 during the 2006 National Junior Holstein Convention in Sioux Falls, South Dakota. The finalists are: (from left) Laura Leazer, Wilton, Iowa; T. Jason Ewing, Fordland, Mo.; Casey Rickeman, Hutchinson, Minn; Krista Sheehan, Rochester, Minn.; Joseph Sarbacker, Verona, Wis.; and Julie Drendel, Hampshire, Ill.

    The Distinguished Junior Member award is one of the oldest and most prestigious youth honors. The contest, held since 1922, has honored more than 300 outstanding dairy youth for their contributions to the Association and the dairy industry as a whole.

    2006 Young Junior HolsteinThe Young Distinguished Junior Member Contest selected eight Junior members as finalists, were recognized at the National Convention. The YDJM winners were judged on similar criteria to the Distinguished Junior Member Contest, but do not complete the interview phase.

    They are: (seated, from left) Danielle Brown, Dodgeville, Wis.; Maureen Lee, Johnson Creek, Wis.; and Alissa Arata, Chowchilla, Calif. (standing, from left) Kevin Shaffer, Beavertown, Pa.; Jarrett Remsberg, Middletown, Md.; Christopher Potts, Purcellville, Va.; Mark Simon, Farley, Iowa; and Patrick Lundy, Granville, N.Y.