Southeast Milk Decides No rBST

News EditorIndustry News, Milk

southeastmilklogoThe latest Dairy Herd Management is reporting that Southeast Milk, Inc., a cooperative based in Florida, has decided to market only non-rBST member milk. The decision by the cooperative’s board of directors goes into effect September 1st.

The Board of Directors of Southeast Milk, Inc., made the decision last week upon learning that three of their customers want milk from cows not treated with rBST. (The largest customer, Publix Super Markets, made its announcement two weeks ago.) Co-op members will be asked to sign affidavits that they are not using rBST. Regarding members who want to continue using rBST, Southeast Milk says it will make “every effort” to find a plant to receive their milk. Yet, they will have to pay a handling charge, including transportation.

Formulating Milk Proteins

News EditorIndustry News, Milk, Nutrition, Products

Exploring new venues for dairy products is a major push in the industry right now. One of the hottest trends is formulating new products containing milk proteins. An added benefit to producers!

As consumers have begun giving credence to scientific data indicating the importance of quality protein in the diet, the marketplace for all proteins is expanding. Soy, milk, casein and rice protein have defined roles in the market, especially since consumers with food allergies and other health concerns are aware of the potential health benefits of protein.

Protein is increasingly associated with satiety, weight loss and sustained energy because it digests slowly in the human body and aids in controlling insulin fluctuations. Health-conscious consumers are taking note, and the market is diversifying. As sales of functional foods topped $25 billion in 2006 and should gross $39 billion by 2011—demand for protein of all shapes and sizes is high. To address the American preference for convenience, formulators are demanding various powdered proteins, which is keeping manufacturers busy.

Milk proteins haven’t ruled the protein supplement market for over a decade by chance. When whey protein came to be associated with weight lifters, early manufacturers developed keen marketing strategies to create markets outside of muscle building and exercise recovery. The adage about milk doing a body good also benefited marketing efforts for isolated milk proteins. When the health benefits of protein began circulating in media outlets besides muscle mags, manufacturers looking to fortify existing products with protein naturally defaulted to whey and casein. Dairy proteins have plenty of health benefits. Milk protein is now associated with satiety because of digestion duration and the prolonged feeling of fullness after protein consumption.

Organic Milk Supply Grows

News EditorIndustry News, Markets, Milk, Organic

Reports are circulating news of organic milk potentially flooding the market this year, due to next year’s regulation change and higher profit margins available to producers. A sure change after years of organic milk being in short supply.

The dairy industry is expecting organic milk supply to surge by at least 40 percent this year from a previous annual growth rate of 20 percent, creating an excess of 25 million gallons, according to some estimates. Meanwhile, consumer demand for organic milk will continue to grow at 25 percent annually, leading some industry experts to predict that a retail promotion war is imminent.

U.S. dairy processors and distributors like Dean Foods Stonyfield Farm and Organic Valley, a dairy farmers’ cooperative that sells to retail grocery chain Whole Foods Market and others, are welcoming the news because it provides an opportunity to expand the market and offer more organic milk-based products.

Greater quantities of organic powdered milk, yogurt, ice cream and cheeses are expected to hit store shelves as dairy processors divert their excess supply. Consumer prices for organic milk, however, are unlikely to drop because the industry expects the glut to be short term.

Companies have used the grace period to encourage more farmers to go organic and lock in higher long-term supplies, on the expectation that consumer demand will eventually catch up. They have also planned uses for the short-term excess supply, or are stepping up promotions. Beginning 2008, organic milk supply is expected to trickle off as retail promotions expand the market.

Raw prices for conventional milk are also expected to hit new highs in 2007 on strong cheese prices, global demand for whey and skim powdered milk, and higher grain costs. “The conventional market now looks a lot more profitable so there will less incentive for farmers to move into organic.”

Hood Buys West Coast Plant

News EditorIndustry News, Milk

HP Hood logoHP Hood has bought Crystal Cream & Butter Co. of Sacramento, Calif. The company is a dairy processor and distributor with 415 employees.

“Hood’s investment in Crystal will allow us to better serve our existing customers in the West and position us for the future growth. Working with the Crystal team, our primary emphasis will be to support and build upon the business segments with the most potential for growth and opportunity.”

Family-owned Crystal Cream was founded in 1901.

DRAXXIN Now in 50-mL Bottles

News EditorAnimal Health, Industry News

PfizerlogoPfizer Animal Health is now offering 50-mL bottles of the respiratory treatment, DRAXXIN® (tulathromycin).

The new 50-mL bottle treats nearly 4,500 pounds (approximately nine 500-pound cattle or 45 100-pound pigs), making DRAXXIN more convenient for veterinary practitioners and producers who have fewer animals to treat or those who want the flexibility, ease and convenience of a smaller bottle. Veterinarians who carry and dispense DRAXXIN will appreciate the additional convenience provided by the new 50-mL size, especially when working in the field or in ambulatory situations. Customers have a number of choices, with the 100-, 250- and 500-mL bottles still available.

In cattle, DRAXXIN is a unique, single-dose therapy for the first-line treatment of bovine respiratory disease (BRD) associated with Mannheimia haemolytica, Pasteurella multocida and Histophilus somni (Haemophilus somnus) and is the only antibiotic labeled for the treatment of BRD caused by Mycoplasma bovis. Furthermore, DRAXXIN is labeled for the control of respiratory disease in cattle at high risk of developing BRD associated with Mannheimia haemolytica, Pasteurella multocida and Histophilus somni (Haemophilus somnus).

Take the Survey!

News EditorAnimal Health, Government

The School of Veterinary Medicine at the University of California-Davis, in collaboration with the National Center for Foreign Animal and Zoonotic Diseases (FAZD), and supported by the USDA and the Department of Homeland Security is asking all producers across the nation to participate in an online survey.

Livestock producers throughout the nation are asked to participate in an online survey to gather data on animal movements and husbandry practices that will be used in a simulation model to predict the impact of a foot-and-mouth disease outbreak, as well as determine the best strategies for containment.

According to Dr. Tim Carpenter, director of the study, “the online survey will allow us to develop a model based on real, up-to-date data for animal movements and current practices that could determine how the disease spreads. Only livestock producers can provide us with this information. This model would put the U.S. at the forefront in preparedness for not only foot-and-mouth but also other foreign animal diseases.”

CADMS guarantees that all the information will be kept confidential and will only be used for modeling purposes.

Fantastic Pour

News EditorIndustry News, Milk

fantasticfourA new milk mustache ad is hitting the newstands, appearing in the May issue of Marvel Magazine – the Fantastic Four!

The ad copy reads, “Fantastic Pour. Want to look super? Some studies suggest that teens who choose milk instead of sugary drinks tend to be leaner and the protein in milk helps build muscle. Staying active, eating right and drinking 3 glasses a day of lowfat or fat free milk helps you look your best. That’s no stretch.”

Saving the world with superhuman powers is no easy task. But the Fantastic Four know that choosing milk over sugary drinks can help provide protein to help build muscle, and some studies suggest milk drinkers tend to be leaner. In conjunction with the launch of the movie, “Fantastic Four: Rise of the Silver Surfer,” the quartet appears in the latest National Milk Mustache “got milk?” Campaign that promotes the health benefits of drinking milk. They join such stars as Beyonce and David Beckham in the ‘Body by Milk’ campaign, which encourages teens to stay healthy by drinking 3 glasses of lowfat or fat free milk everyday.

Dairyline Markets in Review

Chuck ZimmermanDairyline, Markets

DairylineDairy Markets Week in Review
Cheese prices suffered a short-lived relapse at the beginning of the week of May 7th. It started in the barrel market the Friday before and saw four successive declines before rebounding. Block plunged 3 1/4-cents on Monday but finished the week at $1.6950 per pound, down three-quarters of a cent on the week, and 52 1/2-cents above that week a year ago.

Barrel dropped as low as $1.60 but closed Friday at $1.6526, up 1 3/4-cents on the week, and 47 1/4-cents above a year ago. Eight cars of block traded hands and 29 of barrel. The NASS U.S. average block price hit $1.4719, up 5.1 cents. Barrel averaged $1.4875, up 4.2 cents.

Butter closed Friday at $1.49, up 3 1/2-cents on the week, and 31 1/4-cents above a year ago. Two cars were sold. NASS butter averaged $1.3902, up 2.2 cents.

Cash Grade A nonfat dry milk held all week at $2.00 after jumping 35 cents the previous week. Extra Grade gained 35 cents this week and closed at $1.80 but no sellers were enticed to the market. NASS-surveyed nonfat dry milk averaged $1.5593 per pound, up 4 cents. Dry whey averaged 76.68 cents, down 1.5 cents.

Provided courtesy of Dairyline.

Free Dibs for a Month

News EditorIce Cream

dibsThis time of year, most dairymen are so busy planting and getting ready for the summer that they barely take a few minutes for lunch. But, if free ice cream was involved my guess is the tractor would but stopped for a few more breaks! Dreyer’s Grand Ice Cream Inc. recently conducted a survey to promote its Dibs bite-sized ice cream. The company is running a promotion called “Dibs Quest for a Cooler Workplace” contest, which asks workers to share their ideas about how to make the work environments cooler. The 350 winners will receive free fully stocked freezers of Dibs for a month. Now, this is one contest worth entering!

This is a good thing, because Americans spend half their life at work, according to a survey of over 1,500 full-time and part-time U.S. workers. Fully 64% of respondents enjoy their work a great deal, and 29% enjoy it somewhat, while those who don’t care for work at all numbered just 5%.

One thing worth noting: Americans work hard, but they may be leaving their desks a little crummy. Every month, workers bring lunch to work 8 days; eat while working 7.5 days, and buy lunch at or near work 5.9 days. They skip lunch entirely 3.5 days a month. A full 60% of workers work non-stop throughout their shift without taking any breaks. About one in four women (28%) said a snack break would help them be more productive at work, with a third (30%) of younger workers (18-34) claiming that free ice cream would boost morale.

Farm Aid to be Separated

News EditorGovernment, Industry News

After a recent failed attempt to get billions of dollars in aid to the nation’s farmers through the war spending bill, House appropriations leaders say they are considering keeping agricultural disaster relief separate next time around. According to the New York Times, Wisconsin Congressman Dave Obey, thinks that a separate farm disaster aid bill would be difficult to veto and would draw support from both sides of the aisle.

“I think it is going to be very hard for the president to explain why he has declared counties disaster areas and why he doesn’t support legislative action to keep those farmers from being driven off the farm and out of business if he vetoes a farm disaster aid bill,” said Obey, who chairs the House Appropriations Committee.

News reports say a new domestic aid bill, which includes $3.5 billion in farm disaster aid, may come up for vote on Friday.

The last farm aid package included funding for emergency ag disasters, Milk Income Loss Compensation program, drought aid and other domestic spending. President Bush vetoed the measure because it was attached to a troop withdrawal bill.