CWT Annouonces Seventh Herd Retirement

News Editorcwt, Industry News

cwtlogoIn light of the perilous financial plight affecting America’s dairy farmers, Cooperatives Working Together (CWR) has announced it will conduct its latest herd retirement round. Bids are being accepted starting today through Friday, May 1st.

Detailed information can be found online, including bid forms, an interactive bid calculator to help estimate a farmer’s bid, and answers to frequently-asked questions. All bids must be postmarked by Friday, May 1st, in order to be considered. All dairy producers submitting bids to sell their herds must be members of CWT effective January 2009, either through their membership in a fully participating cooperative, or as an independent member of CWT. For more information, call 888-Info-CWT (888-463-6298).

“We all recognize that 2009 is shaping up to be among the toughest years on record for dairy farmers, but CWT will help shorten the price plunge farmers are facing, and speed the recovery,” said Jerry Kozak, President and CEO of NMPF, which manages CWT.

This is the seventh herd retirement round since CWT began operations in the summer of 2003.

Kozak said that, given the dramatic downturn in dairy economics in the past six months, CWT is anticipating a large number of bids. However, since the value of cows and heifers has dropped dramatically, the price level of bids accepted will be much lower than in recent years. As has been the case in recent herd retirement rounds, Kozak said CWT has no set target for the volume of milk or the number of cows to be removed in this round.

“Whether CWT will remove a significant number of dairy animals will depend on the number of bids received and the price level of those bids. CWT will not pay more for cows than what they are currently worth in the marketplace.”

As was the case in 2008, in addition to submitting bids for their milk herds, participating farmers will have the option of offering all of their bred heifers, at a flat price of $700 per animal. In addition, there are two program rule changes in this round:

1. Members of CWT whose bids were accepted in a previous round may bid again in this round. This is a one-time exception to the exclusion affecting prior participants in the program;

2. Producers whose bids are accepted in the next and future herd retirements will be paid in two installments: 90% of the amount bid times the producer’s 12 months of milk production when it is verified that that all cows have gone to slaughter, and the remaining 10% plus interest at the end of 12 months following the farm audit, IF both the producer and his dairy facility – whether owned or leased – do not become involved in the commercial production and marketing of milk during that period.

Winners from Syracuse NAIDC Announced

News EditorEducation, Industry News

0798_firstplaceplatinum_2009naidcCongratulations to the student teams from the University of Minnesota, Purdue University, the University of Wisconsin–Madison and The Ohio State University who earned First Place Platinum in the eighth annual North American Intercollegiate Dairy Challenge (NAIDC), held March 27 and 28 in the Syracuse, N.Y.

Organized by the Northeast Regional Dairy Challenge committee, NAIDC 2009 attracted teams from 31 universities located across the United States and Canada. Each team of four was challenged to put their textbook and practical knowledge to the ultimate test – analyzing dairies. The contest started with a walk-through at one of the four host dairies, followed by the opportunity to ask questions of the owners and analyze farm-specific data. Teams then used this information and their observations to develop management recommendations, and then presented their recommendations to the herd owners and a panel of five dairy industry judges.

This was the second consecutive year for teams from Purdue and Minnesota to earn the contest’s highest ranking. Purdue’s team, coached by Dr. Mike Schutz and Dr. Tamilee Nennich, consisted of Austin Deardorff, Macy, Ind.; Kurt Fischer, Attica, Ind.; Megan Kron, Evansville, Ind.; and Jared Roberts, Westfield, Ind. Members of the Minnesota team were Jennifer Becker, Eden Valley, Minn.; Brett Boyum, Battle Lake, Minn.; Adam Husfeldt, Gaylord, Minn.; and Amanda Rasmussen, Rothsay, Minn. They were coached by Dr. Marcia Endres.

The Ohio State team of Jordan Beck, Wauseon, Ohio; Paige Gott, Greenwich, Ohio; Renee Starkey, Spokane, Wash.; and Kyle Uhlenhake, Coldwater, Ohio; was coached by Dr. Maurice Eastridge. UW–Madison team members were Laura Bahn, Berlin, Wis.; Patrick Kusilek, Baldwin, Wis.; Phil Monson, Brodhead, Wis.; and Annette Zwald, Hammond, Wis. Team coach was Dr. Dave Combs.

Each of the First Place Platinum team members received $200 scholarships. Read More

Breeding Corn Hybrids for Silage

Cindy ZimmermanAudio, Feed, Forage Forum, Pioneer Hi-Bred, Podcast, Silage

Pioneer Hi-Bred Forage Forum PodcastBreeding corn for silage is very much like a conventional program for grain. The main difference is the equipment used to measure the end product. Bill Curran, Pioneer research scientist, discusses some of the key traits producers and breeders are looking to achieve. Some key traits include dry matter, tonnage and starch digestibility.

[audio:http://www.podtrac.com/pts/redirect.mp3?http://zimmcomm.biz/pioneer/pioneer-podcast-51-wdd.mp3] Bill Curran on Breeding Corn Hybrids for Silage (5:00 min MP3)

To see all archived Pioneer Forage Forum podcasts, click here.

DFA Honors Members

News EditorCompany Announcement, Industry News

Dairy Farmers of America, Inc. (DFA) honored members during it’s Annual Meeting. Congratulations to all the honorees!

During DFA’s annual banquet, seven Members of Distinction were recognized for their vision, leadership and innovation in the dairy industry. The 2009 honorees, one from each of DFA’s regional areas, include Gillins Dairy, Inc., Minersville, Utah; Koepke Farms, Inc., Oconomowoc, Wis.; Koster Dairy, Comanche, Texas; Lumbra Dairy, Enosburg Falls, Vt.; Pine Tree Dairy, LTD, Rittman, Ohio; Tjaarda Dairy, Shafter, Calif.; and Tri-M-Valley Farm, LLC, Cane Hill, Ark.

Also honored were 11 scholarship recipients. Now in its second year, DFA’s Scholarship Foundation provides $1,500 awards to deserving students pursuing careers in the dairy industry. Awardees in 2009 include Brenda Arnold, Drexel, Mo.; Curtis Beidel, Springfield, Penn.; Tyler Boyd, Parrotsville, Tenn.; Amber Ettinger, Kinards, S.C.; Stephanie Heilman, Kittanning, Penn.; Rosemary Liskey, Harrisonburg, Va.; Benjamin Meyer, Linn, Kan.; Megan Schrupp, St. Paul, Minn.; Ashley Sears, South Deerfield, Mass.; Kira Tate, Larsen, Wis.; and Hannah Young, Clifton Springs, N.Y.

Retiring director Charles Beckendorf of Tomball, Texas, and Dave Parrish of Maricopa, Ariz., who recently retired as chief operating officer for the Western Area Council, were recognized at the banquet.

DFA Holds Annual Meeting

News EditorCompany Announcement, Industry News

DFA logoDairy Farmers of America, Inc. (DFA) recently held it’s Annual Meeting in Kansas City, March 24-25. More than 1,200 members and industry guests attended the meeting.

Board Chairman Tom Camerlo kicked off the meeting with a look at the Cooperative’s key initiatives and how these activities are positioning DFA and its members to push through the industry’s current down cycle toward future success.

President and CEO Rick Smith presented a management report that explored the Cooperative’s progress during the past several years. He also detailed the strategic opportunities DFA is pursuing to help members hold strong despite economic factors hindering the dairy industry.

In addition to Camerlo and Smith, guest presenters and their topics included:

* Tom Gallagher, President and CEO, Dairy Management Inc. – “Dairy Promotion: Driving Sales and Demand for Today and Tomorrow”
* Jerry Kozak, President and CEO, National Milk Producers Federation – “Issues and Opportunities Facing Producers in 2009”
* Eduardo Tricio, President, Grupo LALA – “Innovation in the Dairy Industry: The LALA Story”
* Henry van der Heyden, Chairman, Fonterra Cooperative – “View of the Global Dairy Industry: A Partner’s Perspective”

Also during the meeting, DFA reported 2008 financial results. The Cooperative had a strong year financially with record revenues of $11.7 billion in 2008 and net income of $61.7 million. In 2008, the Cooperative marketed 61.2 billion pounds of milk and directed more than $7 billion dollars in milk payments to members.

“Although 2008 was a record year for the Cooperative, our results are delivered with mixed feelings,” Camerlo said. “We are proud of the Cooperative’s progress and achievements – and the individuals who contributed to these successes. At the same time, we are deeply concerned about our members and the economic influences shaping 2009.”

Record operating profits were helped by the strong performance of DFA’s commercial division, Dairy Food Products Group, which represented 17 percent of consolidated net sales. Sales of milk comprised 77 percent of consolidated net sales in 2008. Revenues and cost of sales were significantly affected by fluctuations in milk prices, which were, on average, at record high levels in 2007 and declined in 2008.

The Cooperative also reported that its investment grade financial ratings from Moody’s Investors Service and Standard & Poor’s were affirmed, reinforcing continual improvement of financial results.

Dairy Crest Sells Yogurt Portion

News EditorInternational, Yogurt

dairycrestDairy Crest has taken a big step in easing its debt position by selling its 49% stake in yogurt group Yoplait Dairy Crest for £63.5m.

Following the sale, the dairy products group now expects its net debt at year end to be about £435m. Dairy Crest, whose brands include Country Life butter and Cathedral City cheese, said the sale was also consistent with its policy of focusing on core brands.

Trading remains in line with previous statements, the group said. The retail environment remains tough, Dairy Crest said, adding that it has been using promotions to grow volume.

Sales of Country Life butter, which has been helped by an advertising campaign featuring John Lydon (formerly Johnny Rotten of the band the Sex Pistols), and Clover are up by 25% to 30%, it said.

Cathedral City sales have increased approximately 10% by volume and 20% by value over the year, Dairy Crest said.

Speaking at a presentation for analysts, chief executive Mark Allen said Dairy Crest had not been adversely affected by a move to own label products as recession-hit consumers seek value. Volumes are down 4% in own label dairy products, but Dairy Crest has been lifting volumes, he said.

He added that the company had not had to use promotions more than anticipated, with 68% of goods sold at full price. The firm is coping with a decline in milk production in the UK by reducing the amount used as an ingredient in its products, he said, adding that it will reduce the total amount used by about 50m litres this year.

Moo-ving and Shaking: Smart Dairy Farmers and Electric Co-Ops Make Hay with Manure

Amanda NolzWaste Management

My neighbors up at Morris, Minn. are up to good things with their 12,000 dairy cow operation. They will soon be creating renewable energy for electric generation for Great River Energy. Two local dairy operations have installed anaerobic digesters in their facilities to help control methane emissions. Could this be the new wave for livestock producers? It keeps popping up in the news, and I think that soon, the sweet smell of success will be manure! I can picture it now… Here is an excerpt from the press release. You can read the full text at “Moo-ving and Shaking: Smart Dairy Farmers and Electric Co-Ops Make Hay with Manure.”

logo_small Great River Energy, Maple Grove, Minn., is the wholesale power supplier to 28 member distribution cooperatives across Minnesota. The distribution cooperative serving the Morris region, is Agralite Electric Cooperative. Riverview is the managing partner of West River Dairy and Riverview Dairy of MN. When the dairies decided to install anaerobic digesters, largely to convert dairy wastes into more valuable and manageable byproducts, a win-win situation emerged.

These anaerobic digesters are large, cement tanks outside the barn, mostly underground, which capture the cows’ waste. This step greatly reduces odor from the dairy operation. When manure breaks down, it creates a bio-gas, which is primarily methane. The methane rises to the top of the tank and is captured. Methane is a greenhouse gas which, when released into the atmosphere, is 23 times more potent than carbon dioxide. Once captured, the methane is typically destroyed through “flaring,” during which it is burned through a flame that flares out the end of a pipe. The business earns carbon offsets or carbon reduction credits based on the amount of methane destroyed in the process, which is measured by a third party.

Dairyline Markets In Review

Chuck ZimmermanDairyline, Markets

DairylineDairy Markets Week in Review

Hopes of a cheese price recovery suffered a setback early this week following a couple weeks of gains. However, Friday’s session ended on an up note with the block price closing at $1.29 per pound, after dipping to $1.25 on Wednesday. The Friday close was down a quarter-cent on the week and 52 cents below a year ago. The barrels closed at $1.2975, unchanged on the week, but 45 1/4-cents below a year ago. Thirty four cars of block traded hands on the week and 39 of barrel. The lagging, NASS-surveyed, U.S. average block price slipped 0.1 cent, to $1.2226. Barrel averaged $1.2768, up 4.6 cents.

Cash Grade A butter closed the week at $1.1875 per pound, up a half-cent on the week, but 17 1/4-cents below a year ago. Four cars were sold on the week. Cash Grade A nonfat dry milk jumped a penny and a quarter on an unfilled bid, to 84 1/2-cents per pound, while Extra Grade remained trading at 85 cents.

The NASS-surveyed butter price averaged $1.1603, up 2.4 cents. Nonfat dry milk averaged 81.83 cents, up 0.3 cent. Dry whey averaged 17.38 cents, up 0.9 cent.

Price support purchases for the week amounted to 6.3 million pounds of nonfat dry milk, raising the cumulative total so far to 205.4 million. USDA announced that it will direct 200 million pounds of powder to the school lunch program and food banks, with additional quantities possibly directed to foreign aid programs. There was no word on resurrecting the Dairy Export Incentive Program.

Provided courtesy of Dairyline.

Leprino Foods to Work With O'Neill Consulting

News EditorCheese, Company Announcement

leprinofoodsThe world’s largest mozzarella producer has retained O’Neill Consulting Group LLC, a Wakefield-based executive search firm, to support the expansion of its manufacturing facilities in California.

In its partnership with Denver-based Leprino Foods Co., O’Neill Consulting will recruit 15 Front Line Managers for one of the company’s plants in Lemoore, California. According to Jim Nellis, Director of Client Development with OCG, the largest of Leprino’s 10 domestic facilities, the Lemoore West plant, will increase production by 66%. These roles are critical to a seamless transition.

Leprino Foods supplies cheese to most of the United States’ nationwide pizza chains — including Domino’s, Papa John’s and Pizza Hut — as well as many major food manufacturers and distributors. Its annual sales of cheese and other dairy products top $2.4 billion.

The company’s Lemoore West facility —one of the largest mozzarella manufacturing facilities in the world — processes six million pounds of milk each day in the production of cheese, whey and lactose products. Upon completion of this phase of the expansion in 2009, the facility will process ten million pounds of milk each day setting the stage for the state of California to overtake Wisconsin as the largest producer of cheese in the United States.

USDA and Vilsack Announce Plans for Nonfat Dry Milk

News EditorGeneral

usdaThe USDA and Agricultural Secretary Vilsack announced today that 200 million pounds of nonfat dry milk will be directed to the federal school lunch program and to food banks, helping low-income families and dairy farmers hit by high feed costs and low prices. Additional quantities of powdered milk may also be directed for use in foreign food aid programs. The movement of the powdered milk out of USDA storage will eliminate a source of surplus dairy products that could overhang commercial markets and delay a recovery of dairy farm prices, which are, on average, below $1 per gallon this month.

An estimated 61 million Americans are affected by USDA’s nutrition programs. A record 31.8 million Americans receive food stamps.

The National Milk Producers Federation (NMPF) thanked Agriculture Secretary Tom Vilsack today for the U.S. Department of Agriculture’s decision to increase the use of surplus nonfat dry milk powder in feeding programs. NMPF said the move represents a “win-win scenario” that will benefit both dairy farmers and needy families across the U.S. suffering from the global economic downturn.

“This is an important first step taken by Secretary Vilsack to use the resources of the USDA to help address the economic crisis facing dairy farmers, who right now are suffering from punishingly low milk prices. Using government surpluses in a way that doesn’t displace commercial dairy sales benefits everyone served by these programs,” said Jerry Kozak, President & CEO of NMPF.

Kozak also thanked the many members of Congress who also had weighed in with the USDA, urging the agency to move aggressively to confront sagging dairy prices. He said that USDA should also consider using other tools at its disposal, such as purchasing additional quantities of consumer-ready dairy products, such as process cheeses and infant formula, for using in feeding programs through the so-called Section 32 program. He also renewed the request NMPF made in January to resurrect the USDA’s dormant Dairy Export Incentive Program, to help boost overseas sales of U.S. dairy products in certain markets.