Dairy coops sign marketing agreement

News EditorDairy Business, Industry News

Four California milk marketing cooperatives have signed an agreement to work together to market their milk and dairy products in the state. The announcement came from California Dairies Inc. in Visalia, Calif.

The formation of the Western Milk Cooperatives Agency July 16 will allow its members to exchange production, marketing and statistical information. The four cooperative members are: California Dairies Inc., Dairy Farmers of America Inc. (Western Council), Land O’Lakes Inc. and Security Milk Producers Association.

The cooperatives have agreed to immediately begin to identify operational inefficiencies, especially in milk transportation, to address what they call the “short-term dire financial crisis” facing California dairymen.

NMPF Strategic Planning Task Force Probes Milk Pricing Proposals

News EditorIndustry News, Markets

NMPFlogoThe National Milk Producers Federation’s Strategic Planning Task Force met Monday in Chicago to further analyze several proposals intended to offer long-term solutions to the twin issues of low milk prices and extreme price volatility.

The group concluded that more information is needed regarding the ramifications of dairy imports and exports on the efficacy of a mandatory supply management proposal that several dairy industry organizations are promoting. The Task Force also recognized the critical importance of evaluating the unintended consequences that could result from the implementation of such a program. The Task Force further agreed to examine a plan to reform the Federal Milk Marketing Order program by eliminating make allowances.

Reflecting a desire to review the most current and complete information available on the impact of globalization on the domestic market, the Task Force was presented with a major research report, conducted by Bain and Company, of how the U.S. dairy sector currently fits into the global dairy system, and how that role may change in the future depending on the course of action taken by the domestic industry in the coming years.

“There is strong interest on the part of our Task Force in making dramatic and positive changes in milk pricing so that we don’t have to find ourselves in the same position again in the future,” said Jerry Kozak, President and CEO of NMPF. “Because the stakes are so high, we want to be certain that we have fully explored all the consequences of any actions that we recommend, such as how the position of the U.S. dairy business may evolve over time compared to our competitors in other countries.”

The Task Force heard detailed analyses of the so-called price stabilization plan, being promoted by the Holstein Association USA and other groups, by Dr. Chuck Nicholson of Cornell University, and Dr. Richard Sexton of the University of California-Davis. Each economist offered his perspective on how that supply management program would be implemented, affect farm-level prices, and alter the flow of both imports to, and exports from, the U.S. market.

“We recognize that the proposals the Task Force is reviewing won’t relieve the current pain and suffering on dairy farms across the country. However, the severity of the present situation raises the stakes for our effort, and strengthens the resolve of our group to make certain we are as thorough as possible in suggesting changes in future dairy policy,” Kozak said.

While the NMPF Strategic Planning Task Force is focused on future changes in milk pricing, Kozak said that NMPF is continuing to take short-term steps to help improve the pricing situation. This includes having Cooperatives Working Together (CWT) conduct its second-largest ever herd retirement round in August and September, and continuing to work with the U.S. Department of Agriculture to implement corrective improvements, such as the recent increase in the dairy product price support program.

Final USDA Rule Ensures Milk Available in Schools

News EditorGovernment, Industry News, Milk

flavoredmilkThe U.S. Department of Agriculture has published a final rule reaffirming that milk may be sold anytime, anywhere in all schools participating in the National School Lunch Program. The rule bans any school policies or procedures that attempt to restrict the sale or marketing of fluid milk in a la carte lines, vending machines and concession stands at school-sponsored events.

The International Dairy Foods Association and the National Milk Producers Federation worked together five years ago to have Congress include the “anytime, anywhere” provision in the 2004 Child Nutrition Act. USDA issued an interim final rule in November 2005 to carry out the provision.

Before that, milk processors’ efforts to offer milk to students beyond the cafeteria lunch line often were hindered by school contracts with soft drink companies. These contracts included exclusivity clauses, which restricted sales and marketing of milk, as well as other beverages.

“IDFA applauds USDA for finalizing the rule prohibiting restrictions on milk sales in schools,” said Michelle Matto, IDFA assistant director of nutrition and labeling. “By eliminating restrictions on when or where milk can be sold, schools can encourage students to drink more milk and consume more of milk’s essential nutrients.”

The final rule amends the interim rule without changes and will become effective September 4, 2009. Read the Federal Register notice here.

Accelerated Genetics Offers Spanish Version of Website

News EditorAccelerated Genetics, Industry News

acceleratedgenlogoAccelerated Genetics is excited to announce a multilingual addition to it’s website! A full Spanish version of the site is now available.

Mirroring the English version of the Accelerated Genetics website, the Spanish version is catered to make it more convenient for Spanish Speakers to find what they are looking for. Spanish speaking employees, dealers, and producers alike will be able to get news, data, and key information faster and easier. More videos for dairy sires and also training on Farm Products will also be coming in the near future to the Accelerated Genetics website.

Senate Approves $350 Million for Milk Price Supports

News EditorGovernment, Industry News

The Senate tonight voted 60 to 37 for an amendment to provide an extra $350 million for milk price supports to increase government purchases of surplus dairy products. Senator Arlen Specter (D-Pa.) cosponsored the measure introduced by Sen. Bernie Sanders (I-Vt.).

The extra $350 million would provide farmers, on average, an estimated $1.50 extra per hundredweight, the industry’s standard unit of measurement and help farmers as they cope with the lowest prices in nearly four decades.

“The dairy farmers of Pennsylvania and the nation are receiving record-low prices for their products – prices that we have not seen since the late 1970’s,” Senator Specter said in a speech on the Senate floor. “I am pleased my colleagues have recognized the importance of adopting this amendment to give some much-needed relief to dairy farmers.”

“Family-based dairy agriculture is on the verge of collapse,” Senator Sanders told colleagues in a Senate floor speech. “This is not a regional issue. This is a national issue. From the east coast to the west coast, what we are seeing is prices plummeting below the cost of production. If Congress does not act, all over America rural communities are going to be suffering economically.”

The increase in the Farm Service Agency budget to more than $1.6 billion would allow the U.S. Department of Agriculture to raise the support price for nonfat dry milk from $.92 per pound to $.97 per pound. The price farmers receive for their milk has bottomed out over the last year, plummeting 41 percent to $11.30 per hundredweight. It costs farmers about $18 per hundredweight to produce milk.

This measure comes on the heels of a roundtable Senator Specter hosted in Washington, D.C. on July 22nd with various stakeholders from Pennsylvania to discuss challenges facing the dairy industry with USDA Undersecretary Jim Miller.

New Purebred Dairy Cattle Scorecard Available

News EditorIndustry News

judging1The Purebred Dairy Cattle Association has just released its newly revised Dairy Cow Unified Scorecard. The scorecard was first established in 1943 and has had four previous revisions, the latest in 1994.

This, the sixth edition, will feature many improvements including increased emphasis on traits and characteristics associated with a longer productive life, anatomical functionality, and industry management trends in housing systems and animal welfare. The new scorecard also includes breed characteristics for the most recent breed member, the Red and White.

Key changes include balancing the cow’s dairy and strength characteristics, making movement and locomotion a priority in feet and leg evaluation, and reducing the value placed on stature.

According to Ted Halbach, chairman of the scorecard revision committee, “There are several significant changes. Dairy character and body capacity are combined to create dairy strength with a 25 percent weighting, rear feet and legs receive more weight, each breakdown has traits listed in priority order with a point value for each trait, and breed exceptions to specific traits are listed under breed characteristics.”

The Purebred Dairy Cattle Association, Inc., is a federation of the seven national dairy breed registry associations serving breeders and owners of Ayrshire, Brown Swiss, Guernsey, Holstein, Jersey, Milking Shorthorn, and Red and White dairy cattle. PDCA and its member organizations promote the added value and profitability of registered dairy cattle.

Fort Dodge Dairy Producer Short Course

Chuck ZimmermanAnimal Health, Disease, Fort Dodge Animal Health

Fort Dodge Dairy Producer Short CourseYou can find a series of Dairy Producer Short Courses from our sponsor, Fort Dodge Animal Health, online. I’m going to feature some summaries of them here for you.

In this first one the topic is BRSV (Bovine Respiratory Syncytial Virus) which Fort Dodge calls the “stealth disease” of dairies.

BRSV typically hits young calves hardest. Its microscopic lung lesions stimulate the system to release the same chemical that causes your nasal passages to swell in response to a cold — which similarly swells the lung lining and traps body fluid until, in effect, the calf drowns. Even when calves escape that fate, BRSV may suppress their immune system and leave enough tissue damage to set up the ideal environment for bacteria like Pasteurella and Mannheimia to finish them off.

Fort Dodge offers Pyramid, a one-dose option for BRSV protection. You can read more about this disease in their full short course publication (pdf).

Pa. Center for Dairy Excellence Offers Finance Experts

News EditorDairy Business, Industry News

cdelogoThe Pennsylvania Center for Dairy Excellence is offering dairy producers ways to plan financial strategies for the next six months from two nationally-known financial advisors – Dr. David Kohl and Gary Sipiorski – during two “Mastering the Dairy Business” conference calls hosted by the Center for Dairy Excellence.

Kohl, professor emeritus from Virginia Tech, will lead a call on Wednesday, Aug. 26, from noon to 1:30 p.m., and Sipiorski, a 17-year veteran in the banking industry and regular columnist for Hoard’s Dairyman, will lead a call on Tuesday, Sept. 29, from noon to 1:30 p.m.

“The conference calls provide useful, timely information for our state’s dairy producers,” said John Frey, executive director of the Center for Dairy Excellence. “These next two calls in particular will be unique opportunities to hear from two well-respected, nationally-known experts who have a broad understanding of dairy finances.”

Kohl will address the volatile economic environment and discuss short- and long-term factors impacting dairy profitability, by providing insight into the viability of the dairy industry. He will share the “nuts and bolts” of making a dairy farmer more bankable, or capable of receiving credit. Kohl has traveled more than seven million miles in his professional career and has energized a variety of agricultural audiences with his keen insight in more than 5,000 workshops and seminars.
During the call on Sept. 29, Sipiorski will address the impact of the worldwide recession on the dairy industry and explain what happened to milk prices and what needs to happen for price recovery. He will also recommend financial measures dairy producers should take now, and how to prepare for the rebound in milk prices.

Sipiorski joined Vita Plus in 2008, after spending 17 years with the Citizens State Bank of Loyal, Wis., where he worked primarily with dairy producers. He serves on an advisory committee on agriculture and industry for the Federal Reserve Bank of Chicago, and is a columnist for Hoard’s Dairyman.

Registration is required to participate in either call, and participation is on a first-come, first-served basis. To register, call 717-346-0849 and specify the date of call, name, phone number and e-mail address. To ask specific questions to be answered during the conference call, please e-mail the questions to the Center for Dairy Excellence at info@centerfordairyexcellence.org. Once registered, participants will receive the call-in number and code.

Wisconsin Dairy Business Offers Thoughts on Dairy Situation

News EditorDairy Business, Industry News

DBAlogoThe Wisconsin Dairy Business Association (DBA) offers these insights and comments on the current dairy situation.

In these difficult economic times, (DBA) says only market-based solutions will solve the problem of low milk prices over the long term. Supply management, milk quota system, high guaranteed minimum prices, government cow buyouts, more MILC, and even a moratorium on large farms have all been proposed by groups seeking short-term relief. Supply management is not acceptable for world trade agreements and other countries who have previously tried these types of approaches have failed. These ideas will eventually lead to a nation of producers who depend on government to survive. Government intervention merely shifts the problem into the future.

“Setting a milk price floor of $18/cwt is illogical and would cause taxpayers to drown in a sea of milk,” said Jim Mlsna, DBA Vice-President. “All Wisconsin producers regardless of size are feeling the pain, but quick fixes may make the problem worse.”

Market forces have always influenced the price of milk and, in recent decades, these forces are coming from around the world. “Gone are the days when the main factor driving milk prices was the weather’s impact on the feed in the county the milk was bottled in,” stated Laurie Fischer, DBA Executive Director. “Our members understand that they are producing a commodity in a global market. They are doing the best they can to reduce their cost of production and hope they have enough equity and good lenders to allow them to weather this challenge.”

Some say we are producing too much milk, but many Wisconsin cheese makers continue to be looking for additional milk. “Dairy producers are facing a difficult downturn in milk prices brought by a weak global economy,” said John Umhoefer, Executive Director of the Wisconsin Cheese Makers Association. “Over-production or a growth in farm size is not the core issue, as national milk production has contracted in recent months. Wisconsin dairy producers are uniquely positioned to thrive when this cycle turns and prices improve. A decade of modernization on farms and market/brand building by Wisconsin’s cheese industry has positioned our state’s producers to profit as the global economy improves. Wisconsin’s demand for fresh farm milk continues to exceed supply, assuring long-term multiple markets for our state dairy producers.”

DBA continues to evaluate every proposal it learns of to address low farm milk prices. Having a low cost of production, adequate equity, and the prudent use of risk management tools appear to hold great promise for successfully competing in the dairy industry for years to come.

Dairy Checkoff Awards Scholarships to Iowa Students

News EditorCompetition, Dairy Checkoff, Education

Congrats to the 11 dairy students who received scholarships from the Iowa Division of Midwest Dairy Association! The 2009 Educational Awards program is an annual initiative to assist dairy farm families with college expenses. The organization awarded $7,000 in scholarship money to students in Iowa this year. Scholarship applicants are evaluated on their participation in leadership and academic activities, reference letters, personal essays and involvement in the dairy industry.

“Dairy producers support the national checkoff program striving to increase sales and demand for dairy products and the youth striving to obtain more education,” said Joe Lyon, Toledo, Midwest Dairy Association’s Iowa Division chairman. “The scholarship program is a way for producers to show that support.”

This year’s winners are as follows:
* Kala Barre, daughter of Richard and Joyce Barre of Ottumwa and attending Iowa State University pursuing a degree in early childhood education with a minor in psychology;
* Celia Bruning, daughter of David and Elitha Bruning of Red Oak and attending Southwestern Community College pursuing a degree in nursing;
* Kristy Demmer, daughter of Rick and Kathy Demmer of Peosta and attending Loras College pursuing a degree in sports science with a minor in psychology;
* Jessica Hermsen, daughter of Gary and Nancy Hermsen of Masonville and attending Iowa State University pursuing a degree in public service and administration in agriculture with a double minor in Spanish and dairy science;
* Jill Jessee, daughter of Olan and Ardis Jessee of Fonda and attending Simpson College pursuing a degree in math with a minor in secondary education;
* Justin Liddle, son of Loren and Kathy Liddle of Tripoli and attending Wartburg College pursuing a degree in education.
* Kari Lien, daughter of Gary and Patty Lien of Calmar and attending University of Northern Iowa pursuing a degree in communications;
* Jacob Manternach, son of Chris and Sharon Manternach of Hopkinton and attending Northeast Iowa Community College pursing a degree in dairy science;
* Justin Mardorf, son of Les and Linda Mardorf of Hopkinton and attending Iowa State University pursuing a degree in agronomy;
* Aaron Palmer, son of Greg and Marlene Palmer of Waukon and attending Iowa State University pursuing a degree in agricultural business with a minor in general business; and
* Michael Till , son of Allan and Karen Till of Maquoketa and attending University of Wisconsin Platteville pursuing a degree in dairy science, agriculture management and real estate.