CWT Export Assistance Bids

Chuck ZimmermanDairy Group, Export

Cooperatives Working TogetherHere’s the latest announcement from Cooperatives Working Together:

Cooperatives Working Together announced today that it accepted seven export assistance bids last week for the sale of cheese, anhydrous milkfat and butter.

The first two bids are from Darigold of Seattle, WA: one for 250 metric tons (550,000 pounds) of Cheddar cheese to Egypt, and another for 200 metric tons (440,000 lbs.) of butter to Saudi Arabia. Three bids from Land O’Lakes of Arden Hills, MN, were accepted: 40 metric tons (88,000 lbs.) of Mozzarella cheese to Jordan; 20 metric tons (44,000 lbs.) of butter to the Netherlands; and another 20 metric tons (44,000 lbs.) of butter to Bermuda (the first CWT export to that country).

One bid from Foremost Farms of Baraboo, WI, was accepted, to export 38 metric tons (83,600 lbs.) of butter to Kyrgyzstan (the first CWT export to that country). Lastly, a bid from Dairy Farmers of America of Kansas City, MO, was accepted for 19 metric tons (41,800 lbs.) of anhydrous milkfat to Indonesia. CWT will pay an export bonus to the bidders, once completion of the butter, milkfat and cheese shipments is verified.

CWT will pay an export bonus to the bidders, once completion of the butter and cheese shipments is verified.

Members Named to National Fluid Milk Board

News EditorGovernment, Milk

Secretary of Agriculture Mike Johanns has announced the appointment of six incumbents and two new members to the National Fluid Milk Processor Promotion Board.

Re-appointed to serve second terms are: Michael Francis Touhey, Jr., Franklin, Mass. (Region 1); Robert Bruce McCullough, San Antonio, Texas (Region 10); Jerry N. Tidwell, Pleasanton, Calif. (Region 13); and Randy
Dean Mooney, Rogersville, Mo. (At-Large Processor). Re-appointed to serve first terms after filling vacancies lasting less than 18 months are Charles L. Gaither, Jr., Asheville, N.C. (Region 4) and Teresa E. Webb, Wallington, N.J. (At-Large Processor). Newly Appointed are: James B. Green, St. Paul, Minn. (Region 7) and Jay B. Simon, Stockton, Calif. (Region 14).

The National Fluid Milk Processor Promotion Board is composed of 15 fluid milk processors from 15 geographic regions and five at-large members. At least three at-large members must be fluid milk processors and at least one must be from the general public. The Board was established by the Fluid Milk Promotion Act of 1990 to develop and administer a coordinated program of advertising and promotion to increase the demand for fluid milk products.

Environmental Training in Minnesota

News EditorIndustry News

minnmilklogoDairy producers, or those who consult to dairy producers, who are interested in environmental stewardship, can attend the 2007 Environmental Quality Assurance (EQA) Technician Training and Certification Workshop. The training is hosted by the Minnesota Milk Producers Association, and will take place March 15-16 at the Best Western Chelsea Inn & Suites in Monticello, Minn.

EQA Technicians that complete the training will be eligible to receive up to $1,360 per farm for technical services provided under the EQA Program. The EQA Program is a voluntary program created by dairy producers, for dairy producers. It assists dairy producers in achieving environmental excellence in five major areas: water quality, odor & air quality, soil quality & nutrient management, habitat quality & diversity and community image. Participants of the EQA Technician Training and Certification will learn how to perform an environmental assessment and how to create an environmental action plan using the EQA Standards.

New Holstein Graduates at Select Sires

News EditorGenetics

selectsireslogoSelect Sires announces 12 new bulls into their line-up, all sons of sire 7HO5708 Fustead Emory BLITZ-ET (EX-94-GM). Additionally, other new sires include those that offer high-type, elite milk production, positive health traits, TPI(TM) super-stars and a polled, unique-pedigreed Red and White sire. Click here to read all about the new sires!

“Select Sires is extremely proud to introduce the first sons of BLITZ, a truly elite sire that has sold more than 1 million units of semen worldwide. BLITZ transmits performance traits that are high in demand from dairy producers around the globe. In addition to his sons, this class offers a balanced combination of high type, elite production, unique pedigrees and outstanding health traits. All dairy producers will find sires to improve their herds in a variety of ways,” said Blaine Crosser, vice president of dairy sire product line and sales management for Select Sires.

Milk Quality and Labeling Panel

News EditorIndustry News

NYFarmShowLogoThe New York Farm Show will host “The Truth about Milk” expert panel on Friday, February 23rd at 11 a.m. in Syracuse. The program is a joint effort of the New York Farm Show, Feedstuffs, FeedstuffsFoodLink.com and American Agriculturist. This is a must attend event!

Consumers may be paying more than necessary for milk products with labels implying reduced health risks and nutritional differences over conventionally produced milk. Discover whether “artificial hormone-free” milk and organic milk are worth up to twice the price at the supermarket. Hear directly from the dairy industry as to how new demands from milk processors are affecting their bottom line.

The panel includes: Dale Bauman, Cornell dairy nutritionist; Jonathan Taylor, dairy farmer and board member of New York Farm Bureau, and John Siglow, vice president of marketing for Dairy Marketing Services.

Distillers' Grains Expert

Chuck ZimmermanFeed

Jerry Shurson This is THE go-to guy for livestock nutrition information about distillers’ grains – dry or wet.

He is Dr. Jerry Shurson, a nutritionist with the University of Minnesota, AKA “The DDGs Expert.” He spoke this week at a seminar in Jefferson City, Missouri sponsored by the Missouri Corn Growers Association bringing together all the stakeholders who are being affected by the ethanol boom, namely the livestock industry.

Here is an interview that Cindy did with Dr. Shurson about using distillers grains. Listen To MP3 Dr. Shurson Interview (8 min mp3)

Here also is a link to the University of Minnesota Distillers Grains By-products Web Site, which is an excellent resource for the latest distillers grains nutrition research and information – www.ddgs.umn.edu.

Dairyline Markets in Review

Chuck ZimmermanDairyline, Markets

DairylineDairy Markets Week in Review
The cash dairy markets weakened this week in anticipation of Friday’s January Milk Production report. Block cheese closed Friday morning at $1.2950 per pound, down 5 cents on the week, and has lost 6 1/2-cents since February 7th, but it is 13 cents above that week a year ago when the blocks lost almost 7 cents and were on their way down to a year-low of $1.1225 in the last week of February.

Barrel closed Friday at $1.2725, down 4 3/4-cents on the week, but 12 3/4-cents above a year ago. 19 cars of block traded hands on the week and 13 of barrel. Barrel lost 9 3/4-cents over a seven day period. The NASS U.S. average block price hit $1.3028, up 0.6 cent. Barrel averaged $1.3583, up 2.2 cents.

Butter closed this morning at $1.21, down a penny on the week, but 4 cents above a year ago. 18 cars sold on the week. NASS butter averaged $1.2221, up 0.2 cent.

NASS nonfat dry milk averaged $1.0945, up 1.5 cents. Dry whey averaged a record high 58.39 cents, up a nickel. It gained 4.9 cents the previous week. Every penny on whey equates to about 6 cents on the Class III milk price. Dry whey has been a key mover in the Class III futures prices.

Provided courtesy of Dairyline.

Pricing Task Force Formed

News EditorGovernment, Industry News

NMPFlogoNMPF announced today the formation of a new task force to examine Federal Milk Marketing Orders and changes for the future. Results are expected in early of 2008.

Approximately 66% of the nation’s milk is priced under the regulations of the Federal Order system, which was established to ensure consumers an adequate supply of fluid milk, and to prevent the economic predation of individual dairy farmers by setting regional minimum prices.

The new NMPF task force will allow the organization’s members to provide input on ways to improve how the system functions, with the ultimate goal of advocating long-term solutions before Congress and/or the U.S. Department of Agriculture, which oversees the Federal Order system.

The task force will review the functions performed currently under the ten Federal Orders, including classified prices, regional pooling, monthly minimum prices, and data reporting, and how those functions might be improved. The task force will also compare Federal milk orders to state pricing regulations, such as the system used in California, the nation’s largest dairy state, and to areas where there are no pricing regulations at all, such as Idaho, the 4th-largest dairy state.

Land O'Lakes Reports Earnings

News EditorAgribusiness, Butter, Milk

landolakeslogoLand O’Lakes announced Thursday a $44 million net earnings during the fourth quarter of 2006. This is good news for the company’s many dairy farmers across the country.

Land O’Lakes, the Arden Hills-based dairy cooperative, Thursday reported $44 million in net earnings during its fourth quarter of 2006, a considerable improvement over 2005’s small fourth-quarter loss. Sales were down slightly, to $1.9 billion, due mostly to lower dairy prices.

For the year, Land O’Lakes reported $88 million in net earnings on $7.3 billion in sales. While both are below the previous year, 2005’s annual earnings were inflated by a large one-time gain from the sale of the co-op’s fertilizer operations. Excluding that one-time gain, Land O’Lakes earnings in 2006 rose nearly 50 percent.

Within the co-op, the strongest results came from Land O’Lakes’ well-known dairy products — the company makes the nation’s No. 1 brand of butter — and from its seed business. Dairy foods contributed $47.2 million to the year’s earnings, while the surging seed business contributed a record $40.1 million. Earnings in its feed business also were higher.

Weaker results came from the agronomy unit, called Agriliance, a joint venture with Inver Grove Heights-based farmer cooperative CHS. That unit reported a pretax loss of $16.3 million for the quarter. Its troubled MoArk egg business showed some improvement, with $1.6 million in pretax earnings for the quarter, but a $40.8 million loss for the year.

Premium Creameries Sold

News EditorDairy Business, Ice Cream, Industry News

coldstonelogoNexCen Brands is expected to announce today the purchase of Marble Slab Creamery and MaggieMoo’s International in a move to overtake Cold Stone Creamery. Interesting news for the premium ice cream world!marbleslablogo

The purchases, which are expected to be announced today, could shake up the young industry, which in the last decade has transformed ice cream from a simple and relatively inexpensive pleasure into a luxury product, blended by hand on marble slabs with mix-ins, like crumbled cookies and fruit, often at a cost of $5 or more a scoop. The chains, with more than 520 franchise locations between them and combined sales of about $140 million, are expected to be bought for $37 million in cash and stock.

The buyer, NexCen Brands, is only six months old, but it has already made its presence known on Wall Street, buying the footwear chain Athlete’s Foot and the designer clothing label Bill Blass.

MaggieMoo’s opened its first store in 1989 and has more than 150 franchises under development. Marble Slab opened its first store in 1983 and has 157 stores under development. Cold Stone Creamery, founded in 1988, has 1,400 stores worldwide.