Dairyline Markets In Review

Chuck ZimmermanDairyline, Markets

Block and barrel cheese inched higher the second week of May, with the blocks ending the week 8 1/4-cents higher, at $1.4625 per pound, 33 cents above that week a year ago. Barrel closed Friday at $1.4175, up 4 1/2-cents on the week and 33 3/4-cents above a year ago. Six cars of block traded hands on the week and 15 of barrel. The lagging NASS-surveyed U.S. average block price lost 2.2 cents, slipping to $1.4040. Barrel averaged $1.3931, down 0.1 cent.

Cash butter continued to recoup some of the previous week’s loss and closed Friday at $1.6150, up a penny on the week and 35 cents above a year ago. Only one car was sold on the week. NASS butter averaged $1.5865, up 3.7 cents.

Cash Grade A nonfat dry milk closed three quarters of a cent higher on the week, at $1.3350. Extra Grade held all week at $1.30. NASS powder averaged $1.2389, up 2.2 cents, and dry whey averaged 36.07 cents, up 0.3 cent.

Provided courtesy of Dairyline.

Sign-up Today to Visit Wis. Dairies

News EditorGeneral

Dairy farmer have the opportunity to see two dairy robotic milkers, if they attend the Wis. tour hosted by the Minnesota Milk Producers Association and University of Minnesota Extension. Held June 15th though the 17th, attendees will visit Dugan Valley Dairy, along with several other dairies in Wis.

The tour will feature two farms that utilize robotic milkers. Dugan Valley Dairy has a new 260 free stall guided flow robot facility that uses five DeLaval VMS robots. Dugan Valley Dairy’s barn has translucent siding, is half slatted and half bedded pack for fresh cows, and is tunnel ventilated/ cross ventilated with automatic curtains. Ron and Ester VanLangen moved from the Netherlands in 2008 and are milking 130 cows with two Lely A3 robots. In 2009 they moved from a tie-stall barn to a new five row natural ventilated free stall barn. They use an automatic feed pusher and all grain is fed through a feeding station in the barn.

Additional stops on the tour include rotary and swing parlors as well as a specialty cheese plant. Holsum Dairy milks 3,700 cows in an 80 stall external rotary parlor. Holsum has a cross ventilated calf barn and a manure digester that generates enough electricity for 1,200 homes. They also use the digested solids for bedding. Country Aire milks 2,000 cows with a 40 stall internal rotary parlor and averages over 95 pounds per cow per day. Their barn uses two sand lanes, one every other day. Rosendale Dairy milks 8,000 cows in two side-by-side 80 stall external rotary parlors that have robotic arms for post-dipping. They have two new 16-row cross ventilated free stall barns that use sand separators and solid separators. Landl Farm recently transitioned from an 80 tie-stall barn to a low cost swing parlor where they milk 315 cows three times a day. Landl Farm has nearly a 40% pregnancy rate and also custom raises 1,000 heifers. They use sand bedding in a three row monoslope barn with an outside feed alley. Harmony Specialty Dairy Foods LLC purchased the closed “Cloverbelt” plant in 2007 and now makes handmade vat cheese. The fourth generation dairy producers, Ralph and Sharon Bredl, also operate Harmony-Ho Holsteins, a 450 cow registered dairy.

Participants will also have the opportunity to choose from two evening tour options. The Stone Cellar Brewpub is located in a 146 year old building where participants will be given a tour and enjoy beer or root beer samples. A guided bus will take other participants through the Paper Baron Mansion Neighborhood in Neenah. Participants in this tour will experience how owners of the paper mills made their fortunes and hear interesting stories about the lives of these businessmen.

Source: Minnesota Milk Producers Association

Cooperative Network Applauds Legislation

News EditorGeneral

Cooperative Network President and CEO Bill Oemichen commended Governor Doyle for bills signed into law today at a farm in north central Wisconsin. Three of the bills signed by the governor enjoyed the support of Cooperative Network during the legislative session, and were among the bills that received strong bi-partisan support in both houses of the Legislature.

The bills supported by Cooperative Network are:
· AB 756, which extends the dairy farm investment tax credit for tax years 2010 and 2011 and expands the “pocket value” for claimants to $75,000. Cooperative Network was the primary originator and promoter of the prior dairy investment tax credit, which was in place from 2004-2009. More than $500 million in dairy farm facility modernization has taken place as a result of the credit, resulting in increased cow numbers, greater milk production, and a more vibrant and competitive dairy industry in Wisconsin.
· AB 757, which creates a food processing modernization tax credit for food processing and distribution businesses.
· SB 527, which amends the agricultural producer security (APS) program to provide greater flexibility and lessen the cost of compliance for some contractors who are participants in the program.

Oemichen stated, “Cooperative Network is very proud of the positive financial impact the original dairy farm investment tax credit has had on the dairy industry and believes the second installment will have a continued and significant positive impact on the modernization of our dairy industry.”

Source: Cooperative Network

Dairy Price Stabilization Act Introduced

Cindy ZimmermanGovernment, Video

The Dairy Price Stabilization Act was introduced on the House floor today by Congressman Jim Costa (D-Fresno) and co-sponsors Peter Welch (D-VT), Joe Courtney (D-CT), Rick Larsen (D-WA), and John B. Larson (D-CT).

Costa says the bill promotes market stability and individual dairy farmers’ ability to grow their own business. “While periods of boom and bust are not new to the dairy industry, our dairy families cannot afford another year of low milk checks that don’t even cover the cost of production,” said Costa. “The dairy price crisis is devastating our local economy and ability to create and sustain jobs. This bill will help the dairy industry get back on track and curb the milk price volatility that is driving dairy farmers in the Valley and our nation out of business”

Watch Costa introduce the bill here via YouTube:


The Dairy Price Stabilization Act would help stabilize dairy prices by better aligning supply and demand. Under the program, individual dairies would have the choice of either maintaining their current production level (plus an allowable year-over-year growth rate based on market indications) or expanding their production and increasing their share of the market.

Dairies choosing to increase their market share would pay a fee during the first year of expansion which is paid out to their fellow dairy farmers who are maintaining their current share of the market. This creates a rational system that allows the market to absorb increases in production by providing a tangible financial incentive for most dairies to manage their production growth.

The structure of the bill is based on unbiased economic analysis and modeling conducted in the past 18 months. Both the growth rate and market access fee would be determined based on market indicators including feed costs which are the largest cost factor for producers in states like California. A producer board of directors would be established to advise the Secretary of Agriculture on any necessary adjustments to program operations. The bill empowers farmers by allowing them to vote on whether to enact the program and, three years after it commences, to vote on whether to continue it.

Fonterra Names Hudgson VP

News EditorInternational

Troy Hudgson has been named the Vice President, Category Development for Fonterra Ingredients North America. Fonterra is a cooperative based in New Zealand.

Mr. Hudgson will be based at Fonterra North America’s corporate headquarters in Chicago, Ill. He will oversee Fonterra’s regional growth strategies for categories, including bars and snack foods, ingredients for cheese, cheese for meals, cultured foods, pediatric nutrition, organics and functional beverages. In addition, he will create annual marketing and innovation plans to support consumer and customer insights in the United States.

Mr. Hudgson is transitioning from his role as the Marketing and Channel Development Manager for Fonterra’s Global Foodservice division, and will report directly to Martin Bates, President of Fonterra Ingredients North America.

“Troy has been recognized as playing a key role with his successful work in global foodservice that align well to our category development strategies in the United States,” said Martin Bates, President, Fonterra Ingredients North America. “His work has resulted in the creation of a marketing strategy that has resulted in the growth of the global foodservice business. We are confident that Troy will effectively be able to implement this knowledge into his new position and positively support Fonterra’s innovative products development pipeline.”

Prior to his foodservice role at Fonterra, Hudgson worked in business development at Genesis Research and Development, and CSIRO Health Sciences and Nutrition in Australia.

Source: NPI Center

Holstein Juniors Can Entry Ad Contest

News EditorHolstein Association

Holstein Association USA Juniors – have you gotten your unique advertisement entry in? The deadline is quickly approaching!

Entries must be received by June 1, 2010 to be considered. The contest is open to any Junior Holstein member, and entries will be split into three age divisions. The grand prize winner will have their ad printed in the August 2010 issue of Holstein World magazine!

The ad must be the original work of a Junior member. Prizes will be awarded in the following divisions (all ages are as of January 1, 2010): Junior (ages 9 to 13), Intermediate (ages 14-17) and Senior (ages 18-21). Entries will be judged on organization and clarity, layout and deign, appropriateness, as well as a brief essay describing the target audience and intended purpose of the ad.

Source: Holstein Association USA

Yogurt Snacking Grows

News EditorYogurt

The good news – kids love yogurt, and are snacking on it in higher numbers! Grab a yogurt today!

While fresh fruit remains the most-consumed kids snack, refrigerated yogurt showed the largest growth in number of units consumed per child last year as compared with 2008, according to a kids’ snack category growth ranking released by The NPD Group.

Yogurt wasn’t the only healthier snack showing growth. Fresh fruit ranked third in per-capita consumption growth, and string cheese/pre-packaged cheese cubes or shapes ranked fourth, according to NPD’s SnackTrack, which continually monitors the consumption of snack foods both at home and out-of-home.

However, potato chips showed the second-largest consumption growth among kids’ snack categories.

And the categories ranking fifth through 10th in consumption growth were, in order: hard candy, ice/fudge/cream pops, chewy candy, corn chips, donuts, and snack pies/pastries.

Source: MediaPost News; Karlene Lukovitz

Dean Reports Losses

News EditorCompany Announcement, Markets

Dean Foods Co. announced it will be cutting jobs in its processing plants after profit losses.

The discounting prompted Dean’s chief executive to describe prices as dropping “beyond sustainable levels.” Dean, the nation’s largest dairy processor, said that its profit fell 43 percent to $43.15 million, or 24 cents a share. That compares with profit of $76.25 million, or 48 cents a share, a year ago.

Dean shares closed Monday at $10.47 – a tumble of 28.43 percent, the largest one-day decline in at least six years. The company blamed its poor profit picture on retailers taking “zero profit” on their own store-brand milk.

“Our most profitable brands, the ones with the highest [price] premiums, suffered the most,” said Gregg Engles, chairman and CEO. He called the pressure on milk prices intense. The retail price wars could strip more than $100 million from company margins this year, he said.

To shore up the bottom line, Dean said it will cut up to 400 jobs in its largest division, Fresh Dairy Direct/Morningstar, which sells milk and other traditional dairy products under private labels and regional brand names. The cuts, expected to save the company $25 million, are on top of 150 jobs eliminated earlier this year. The cuts will come nationwide throughout the year.

First-quarter sales were $2.97 billion, up nearly 10 percent from a year ago, thanks to increased sales at its division that sells organic and soy milk. Also, as the prices Dean pays to dairy farmers increase, Dean is permitted by the government to pass those costs on to customers, including retailers.

Source: The Dallas Morning News

Expo Names Virtual Tours

News EditorWorld Dairy Expo

One unique part of World Dairy Expo is the annual virtual tours of dairy farms. The 2010 list has been released.

Free tours will be presented daily, Tuesday through Saturday, September 28 – October 2, in the Mendota 1 meeting room in the Exhibition Hall. Managers will present a half-hour pictorial view of their operation, including general operation information and highlights of exceptional management practices. Time for questions and discussion will follow. The tours will be available for viewing on World Dairy Expo’s website after the show.

Tour hosts include:
Valley-Drive Holsteins, LLC, Campbellsport, Wisconsin
Managed by Jeff & Merlene Hayes family and Daryl Winter
200 Milking – Adaptation Leads to Longevity
Sponsored by: Structures Unlimited LLC

Stewart Farms Inc., Nampa, Idaho
Managed by Joe, Jere, Jim & Marcella Stewart
630 Milking – Innovative Reproductive Tools
Sponsored by: Semex

Clover Patch Dairy, Millersburg, Ohio
Managed by Alan & Sharon Kozak
420 Milking – Grazing Benefits
Sponsored by: American Jersey Cattle Association

Ripp’s Dairy Valley, Dane, Wisconsin
Managed by Gary, Troy & Chuck Ripp and families
860 Milking/Managing Transition Cows
Sponsored by: AgSource Cooperative Services

University of Minnesota Teaching & Research Facility, St. Paul, Minnesota
130 Milking – A Research Dairy Herd
Sponsored by: Quality Liquid Feeds

Cycle Farm, Sturgeon Bay, Wisconsin
Managed by Bill, Clarice, Jacob, Tony & Moriah Brey
240 Milking – Family Succession
Sponsored by: Grow Wisconsin Dairy Team

Royal Farms Dairy, Garden City, Kansas
Managed by Kyle Averhoff & the Irsik Family
6150 Milking – Environmental Stewards
Sponsored by: Kansas Department of Commerce

Sandy Acres Dairy, Elk Mound, Wisconsin
Managed by Jeff & Marie Pagenkopf
480 Milking – Robotic Calf Feeders
Sponsored by: Land O’Lakes Purina Feed

Source: World Dairy Expo

Borden, RIF Announce Kids Reading Adventures

News EditorCompany Announcement, Competition

Borden Milk has announced an exciting contest in Texas and Louisiana for kids who like to read and drink milk! Get your coloring pencils, books and milk ready!

Joining Reading Is Fundamental, Inc. (RIF), Borden Milk introduces the “Elsie the Cow’s Reading Adventures” Art Contest. Borden and RIF have teamed up to promote the joy of reading for local children throughout Texas and Louisiana and to encourage families to fuel up for learning. Borden understands the importance of providing kids with essential nutrients to help develop sharp minds and is supporting education by donating books and reading materials to schools.

As part of a multi-year commitment to support children’s literacy, the contest will offer 10 lucky winners a chance to win a $1,000 literacy grant for their local school or a non-profit organization of their choice as well as a prize package, including a year’s supply of fresh and delicious Borden Milk, $50 book-retailer gift card, Borden T-shirt, Elsie the Cow stickers, Borden pencils, Borden growth chart and a certificate from RIF.

“RIF is pleased to partner with Borden Milk to promote reading as an essential key to success,” says Carol H. Rasco, president and CEO for RIF. “These literacy grants will provide books and reading materials to help children throughout Texas and Louisiana discover the joy of reading.”

Entrants can submit an original drawing inspired by the theme “Elsie the Cow’s Reading Adventures.” The art should convey the joy of reading and can include images of books, milk and Elsie the Cow. The contest begins on May 10 and ends on June 30. It is open to children ages 6-12 in the following cities in Texas: Austin, Corpus Christi, Dallas/Fort Worth, Houston, Laredo, McAllen, San Antonio, and Texarkana as well as the following markets in Louisiana: Baton Rouge and Lafayette.

“Borden understands the importance of providing kids with the essential nutrients needed to develop sharp minds and is honored to partner with RIF,” said Rick Beaman, president for Borden. “We are excited to give back to our local communities and we want to encourage children across our area to fuel up to be smart with a good book and Borden milk.”

Source: Borden Milk