Ohio Meeting Discusses Milk Market

News EditorDairy Business, Industry News, Price

dollar-bilss-in-a-hole-money-going-down-the-tubeHere’s another story about dairymen and allied industries coming together to discuss the current milk market, and their concerns about it. Farmers in Ohio met to discuss the market effects of imports, marketing organizations and supply and demand, while a panel of experts spanning California to New York presented their plan for a new system of marketing milk.

Past U.S. Holstein Association President Doug Maddox said the fallout in dairy prices goes deeper than the current generation. He farms in California, where he operates RuAnn Dairy, one of the world’s largest registered dairy farms.

“This crisis that we’re in right now and how we solve it is as much about who and what controls our future, and our dairy industry, as it is about the prices and the current situation,” Maddox said. “Either the dairy farmers are going to control the industry and manage our supply and set our prices, or the processors and the large companies.”

Maddox said a dairy farmer is typically losing $3-$4 a day per cow, or $100 per cow per month. Farm equity is being turned into bank loans, and farmers are exiting the industry altogether, by choice or by force, and a few have exited by suicide, he said.

The meeting was organized by Ohio Farmers Union and a host of local sponsors in hopes of gathering more producer perspectives and educating farmers and consumers about the dairy industry.

New York dairy farmer John Bunting discussed the impact to the market of dairy processors and marketing cooperatives, as well as imported milk protein concentrate.

The country imported about 16 million pounds of milk protein concentrates in 2008, according to information Bunting compiled from the U.S. International Trade Commission. That’s up from 2007 imports of 14 million pounds, and 2006 imports of about 12 million pounds.

Milk protein concentrate is the industry term used to describe a form of processed, dried milk used in foods such as processed cheese products, macaroni and cheese, protein bars, nutritional drinks, candy bars and cookies.

Bunting is one of a growing number of dairy farmers who say imports are partly to blame for their struggles.

But not everyone agrees.

Maddox said imports are a factor but the industry is ultimately experiencing woes because of an imbalance of supply and demand.

“You can blame all the other things, but it all gets back to supply and demand; it’s economics 101,” Maddox said.

He is an advocate for the Dairy Price Stabilization program, a newly formed effort to stabilize the market through a mandatory, self-funded growth-control program.

Read More

N.Y. Dairy Rally Brings Out Dairymen

News EditorDairy Business, Industry News, Price

The current milk price has spurred many dairy farmers into action, getting them more involved in how their milk is marketed. A group of dairymen from western N.Y. and several even from Pennsylvania, met to discuss the Federal Milk Marketing Improvement Act of 2009 last week, at a dairy rally held in N.Y.

A group of more than 150 dairy farmers, their family members, a handful of local officials, farmer union leaders and Congressman Eric Massa, D-29, addressed the audience and talked about the act. The proposed legislation, brought forward by Sen. Arlen Specter, D-Pa, and Sen. Robert Casey Jr., D-Pa., would change the amount farmers are paid for milk to the national average cost of production, eliminate reference to the Chicago Mercantile exchange in determining milk prices paid to dairy farmers and encourage new dairy farmers to produce milk by allowing them to be exempt from inventory management costs in their first year, among other things.

“This will provide a floor under the price of milk that will keep a majority of our dairy farmers in business, give them an opportunity to pay their bills and have an extremely modest level of income,” said Larry Breech, president of the Pennsylvania Farmers Union.

Breech said there is tremendous amount of opposition to the legislation, but it insists that dairy farmers all of the country will begin closing if some governmental action is not taken.

“Dairy co-ops have miserably failed to represent their members and that’s why we are at the pint we are at now,” he said.

“Right now dairy farmers have seen a 47 percent drop in the prices they were getting last year and we have to get them some short-term relief immediately,” said Arden Tewksbury, manager of the Progressive Agriculture Organization.

“There are many farms that are going to be closing soon. People argue the number is as high as 25 or 35 percent,” he said.

Dairy farmers at the rally said they are getting as low as $10 to $12 a hundredweight, an amount they say doesn’t even cover operation costs.

A study by Cornell University estimated that farmers need to be paid at least $17 per hundredweight to cover production expenses.

“Because we have married ourselves to a free trade system that gives everything away and does not protect our consumers the international market collapsed and here we are sitting on huge surpluses,” Massa said. “By the way, you saw the price of milk at the producer drop by 50 percent, but we never saw the price of milk in retail drop that much. Now, somebody is making a hell of a lot of money, and candidly, it is not much different then we saw in the petroleum industry. The price of crude went from, what was it, $140? To $50 a barrel and yet the prices at the pump did not drop that same ratio.”

Dairyline Markets In Review

Chuck ZimmermanDairyline, Industry News, Markets

DairylineDairy Markets Week in Review

The cash dairy market is somewhat in limbo as it anticipates whether government will try to affect it some more. Cheese prices reversed six weeks of gains the last week of August. The blocks closed Friday at $1.3675 per pound, down 2 1/4-cents on the week, and 33 1/2-cents below a year ago. Barrel closed at $1.34, down 3 cents on the week, and 29 1/4- cents below a year ago. The blocks had gained 30 cents in those six weeks and barrel gained 28 cents.

Thirty cars of block traded hands on the week and 25 of barrel. The latest NASS-surveyed U.S. average block price hit $1.2927, up 7.1 cents on the week. Barrel averaged $1.3163, up 5.7 cents.

Butter closed Friday at $1.17, unchanged on the week and halted four weeks of losses, but is 44 1/4-cents below a year ago. Nineteen cars sold on the week. NASS butter averaged $1.1931, down 1 1/2-cents. NASS nonfat dry milk averaged 88 cents, up 1.2 cents, and dry whey averaged 28.82 cents, up a penny.

Price support purchases for the week totaled 2 million pounds of nonfat dry milk, raising the cumulative total to 279.2 million. Uncle Sam accepted DEIP bids on 11 million pounds of nonfat dry milk for export this week, 275,575 pounds of butter, and 169,754 pounds of Cheddar cheese.

Provided courtesy of Dairyline.

Ag Secretary Listens to California Dairy Farmers

Cindy ZimmermanFort Dodge Animal Health, General, Industry News, Milking Parlor, Price, usda

In the largest dairy producing area of the top dairy state, it was no surprise that dairy was the number one topic addressed during a visit by Agriculture Secretary Tom Vilsack to Modesto, California last week on his Rural Tour.

Vilsack was joined at the event by California Congressman Dennis Cardoza, Deputy Secretary of Agriculture Kathleen Merrigan and California Secretary of Agriculture, A. G. Kawamura. Together they listened to the concerns of nearly 400 frustrated dairy producers imploring for help to stem the losses that threaten their livelihood.

“I’d like to thank you for all you’ve done so far, but it isn’t enough,” said Linda Lopes, president of the California Dairy Women. “We need the support price to be higher, we need it to be extended longer, and we need it to be floored. Because right now all of us are surviving on our equity and if this price doesn’t come up and stay up for a long time, the next time there won’t be any equity to borrow against and that will be the end of the dairy industry in California.”

Vilsack outlined what USDA has done so far to help producers, including export subsidies, increased federal purchases for nutrition programs and raising the support price for dairy products. The secretary said he wants to do more but he has to wait until Congress is back in session. “The problem is that we are now facing the beginning of a new fiscal year,” Vilsack said. “It’s not a simple thing to do what you have asked me to do. I want to do it, I want to help. We are going to try and work through the process.”

Vilsack also talked about the formation of a 15 member dairy industry advisory committee to help come up with solutions to the industry crisis, “to try to figure out what will be better than what we have today.”

Listen to some of the comments and questions from the California Rural Tour in this Milking Parlor podcast sponsored by Fort Dodge Animal Health: [audio:http://zimmcomm.biz/dairy/milking-parlor-fdah-2.mp3]

Fort Dodge Dairy Producer Short Course

Chuck ZimmermanAgribusiness, Disease, Fort Dodge Animal Health

Fort Dodge Dairy Producer Short CourseHere is our next installment in a series of online Dairy Producer Short Courses from our sponsor, Fort Dodge Animal Health.

Our topic this week is BVD: AVOIDING PERSISTENT INFECTION.

Never had a PI in your dairy? Good to hear, says Mark van der List, DVM, Fort Dodge Animal Health senior veterinary consultant. You’ve probably never had a house fi re either, yet that shouldn’t convince you to drop your homeowner’s insurance. Here’s how to stay PI-free.

IF YOU CAN SAY your herd is free of persistent BVD infection, you should be congratulated — but cautious. Uncontrolled BVD costs:

  • ■ Reproductive losses such as early embryonic death, abortions, birth defects and congenitally infected calves — those infected in the womb — which are more likely to succumb to calfhood diseases.
  • ■ Increased rates of mastitis, metritis, pneumonia and other diseases caused by suppression of the immune system.
  • ■ Reduced calf and heifer performance, leading to higher death loss and greater risk of early culling.

Ongoing vaccination using a vaccine labeled to prevent PIs, like PYRAMID 5 or 10, is an essential part of the control program. Vaccinating 30 days before breeding optimizes the cow’s immunity during the critical 30 to 120 days of gestation when the risk for PI development is greatest.

Fort Dodge offers Pyramid to combat the BVD virus. You can read more about this disease in their full short course publication (pdf).

Pa. Secretary Wolff to Resign

News EditorGovernment, Industry News

secretaryphotobiopagePennsylvania Secretary of Agriculture Dennis Wolff is stepping down after 6 1/2 years, and one of his top aides is in line to replace him.

Share your good luck wishes to Secretary Wolff here, in the comments section.

Gov. Ed Rendell said Friday that Dennis Wolff’s last day would be Sept. 12, and the governor will be nominating Russell Redding to take over the department.

Redding is a Gettysburg native who’s worked in the Agriculture Department since 1995. He’s run its day-to-day operations as executive deputy secretary since 2003.

Rendell says Wolff’s accomplishments include the PA Preferred initiative, the centers of beef and dairy excellence, efforts to improve food safety and a program that helps farmers deal with “illegal and burdensome” local ordinances.

Redding’s appointment requires Senate confirmation.

Young Breeders Sign Up for Accelerated Genetics Conference

News EditorAccelerated Genetics

acceleratedgenlogoEnthusiastic producers and herds people from across Wisconsin, Minnesota, Illinois, and Iowa are invited to the Young Producers (YP) Summit – ‘Innovate, Integrate, Motivate,’ to be held December 5-6, 2009, at the Holiday Inn Conference Center in Tomah, Wis. The YP Summit is part of the Accelerated Genetics Young Producer Program.

Seminars for this year’s YP Summit include presentations by state-of-the-art speakers with extensive backgrounds including Michele Payn-Knoper, with Cause Matters Corp., speaking about “Celebrating Agriculture and Championing Agriculture and Dairy;” Dan Schreiner, Product Specialist for Accelerated Genetics, with a talk on “Importance of Complete Calf Care;” and Nigel Cook, Associate Professor at the University of Wisconsin – Madison, who will speak to attendees on “Designing Welfare Friendly Housing for Dairy Cows;” along with a panel of dairy producers. Additionally, there will be a new event, the ‘Cream of the Crop Ball.’ Everyone is encouraged to trade in their barn clothes for their best clothes and dancing shoes for Saturday night’s dinner and dance.

On top of all of the educational seminars, networking, and fun, interested producers and herds people will also have the opportunity to run for the Young Producer Committee. This dynamic committee helps organize and lead the yearly Young Producer activities. Committee members can serve two 3-year terms and are expected to attend two annual planning meetings.

To register for the 2009 YP Summit – ‘Innovate, Integrate, Motivate,’ or for more information on this or other upcoming Young Producer events, contact Kari Stanek at 1-800-451-9276 ext. 222, or kstanek@accelgen.com. The deadline for registration is November 9, 2009.

Cow Power Dairy NY State Fair Butter Sculpture

News EditorDairy Checkoff, Industry News, Media

large_2009-08-26-db-Fair2The 2009 New York State Fair butter sculpture was unveiled yesterday in Syracuse, N.Y.

This year’s State Fair butter sculpture celebrates the old-time milk delivery system — the milk man. But with a twist: The “milk man” is actually a cow taking on the character of the hardy soul was up at the crack of dawn each day to deliver milk, cream and butter right to the doorsteps of his customers in cities and towns throughout Central New York, New York state and the country.

The sculpture shows the old-fashioned milk truck driven by a cow — providing the name for the sculpture, “Cow Power.” But it goes one step further, showing how cows not only make the milk, but they help generate energy that can power local communities through the use of methane digesters.

The digesters use cow manure to make methane gas that then generates electricity. Connie Patterson of Patterson Farms in Aurelius, Cayuga County, was one of the first in the state to put a digester on a farm. She uses it to generate all the electricity for her farm.

Be sure to stop into the Dairy Products Building at the State Fair to check out the sculpture.

56th Princess Kay of Milky Way is Olsen

News EditorCompetition, Dairy Checkoff, Industry News

Elizabeth OlsenCongratulations to Elizabeth Olson, Hutchinson, Minn. for her new title as the 56th Princess Kay of the Milky Way. Elizabeth was crowned in an evening ceremony at the Minnesota State Fairgrounds on August 26. This marks the first time two people have been named Princess Kay from the same family; Olson’s sister Sarah was crowned Princess Kay in 2002. Her other sister, Lana, was a finalist in 2005.

As Princess Kay, Olson, who represents McLeod County, will serve as the official goodwill ambassador for Minnesota’s nearly 4,700 dairy farmers. Elizabeth is the daughter of Loren and Laura Olson of Hutchinson, and is a sophomore at the University of Minnesota, majoring in animal science and minoring in applied economics.

PK2009ElizabethOlsonTwelve county dairy princesses competed for the Princess Kay of the Milky Way title. Sarah Brauen of Foley, representing Benton County, and Emily Lahr of Sauk Centre, representing Stearns County, were selected as runners-up. Jessica Oelfke of Hamburg, representing Sibley County, was named Miss Congeniality. Scholarships were awarded to Olson, Brauen and Lahr.

One of Olson’s first duties as Princess Kay will be to sit in a rotating cooler for nearly eight hours on the opening day of the Minnesota State Fair to have her likeness sculpted in a 90-pound block of butter. Each of the 11 other finalists will have her likeness carved in butter during the fair, as well. Throughout her yearlong reign as Princess Kay of the Milky Way, Olson will make public appearances helping consumers make a connection with Minnesota dairy farm families who are dedicated to producing wholesome milk while caring for their animals and natural resources.

Princess Kay candidates are judged on their general knowledge of the dairy industry, communication skills, personality and enthusiasm for dairy promotion. The Midwest Dairy Association sponsors the Princess Kay program with funds provided by dairy farmers.

Milking Parlor Podcast on Dairy Issues

Cindy ZimmermanAudio, Fort Dodge Animal Health, General, Industry News, Milking Parlor, Podcast, Policy, Price, The Milking Parlor, usda

Cow ipodThis edition of the Milking Parlor podcast focuses on what is being done on the national level to address the current dairy industry crisis. From congressional actions to USDA to the dairy industry itself, we hear from Congressman John Boccieri, Sen. Bernie Sanders, Agriculture Secretary Tom Vilsack, University of Wisconsin Ag Economist Dr. Bruce Jones and National Milk Producers Federation president Jerry Kozak.

Thanks to Fort Dodge Animal Health for sponsorship of this regular monthly podcast for dairy industry professionals. We encourage your feedback, comments and questions to provide input for future editions of the program.

Listen to this podcast here:
[audio:http://www.podtrac.com/pts/redirect.mp3?http://zimmcomm.biz/dairy/milking-parlor-fdah-1.mp3]

Subscribe to the Milking Parlor podcast here.