Dairyline Markets In Review

Chuck ZimmermanDairyline, Forage Forum, General, Markets

DairylineDairy Markets Week in Review
Cash block cheese ended the final week of January at $1.3325 per pound, down 1 1/2 cents on the week, but 9 1/4 cents above that week a year ago. Barrel closed Friday at $1.3750, up a penny on the week, and 16 1/2 cents above a year ago. 2 cars of block traded hands on the week and of 18 of barrel. The NASS-surveyed U.S. average block price slipped to $1.3090, down 2.2 cents. Barrel averaged $1.3337, unchanged from the previous week.

Butter closed Friday at $1.2250, down 4 1/2 cents on the week, and 2 1/4 cents below a year ago. 3 cars were sold. NASS butter averaged $1.2144, up 1.7 cents. NASS nonfat dry milk averaged $1.0872 per pound, down 0.3 cent. Dry whey averaged .4838, up 0.8 cent.

Provided courtesy of Dairyline.

Getting a Florida Dairyman's Perspective

Chuck ZimmermanAudio, Beef Checkoff

Woody LarsonWoody Larson is a Florida dairyman who is attending the Cattle Industry Convention and he serves on the Beef Board.

I’ve known Woody for quite some time and was very happy to see him here in Nashville. I interviewed Woody in between the Dairy Producer Forum lunch yesterday and the Beef Checkoff update session.

Woody explains how he feels about the Checkoff and what it means to the dairy industry and dairy producers like himself. He says that he’s been very pleased to see more interaction between beef and dairy producers in recent years.

Listen to my interview with Woody here: Woody Larson Interview (5 min. MP3 File)

Proposed Farm Bill

News EditorGovernment, Industry News

The National Milk Producers Federation (NMPF) expressed optimism towards the proposed USDA Farm Bill.

Agriculture Secretary Mike Johanns mentioned the value of maintaining the dairy price support program Wednesday as he unveiled the USDA’s list of items it will ask Congress to consider adopting. NMPF also supports continuing the general framework of the price support program in the next Farm Bill.

The USDA is also proposing a new system of direct payments in lieu of the Milk Income Loss Contract (MILC) program. Jerry Kozak, President and CEO of NMPF, noted that NMPF understands that there is no single program that addresses all of the industry’s complex needs. Because of this, the upcoming Farm Bill must take a hybrid approach by encompassing a package of safety net programs, including some form of direct payment, along with incentives for on-farm renewable energy development. Kozak said he was also encouraged by USDA’s plan to implement a promotion assessment on imported dairy products. NMPF worked include the import assessment in the 2002 Farm Bill, but it was never implemented because not all U.S. dairy farmers currently pay the 15 per hundredweight promotion checkoff. The few farmers in Alaska, Hawaii and Puerto Rico are exempt, which will change in the new Farm Bill.

Break-Through Research

News EditorIndustry News, Research

New research published Monday suggests BSE may be caused by a virus, and not prions as previously thought. More investigation is needed to confirm this study.

Researchers reported that they found virus-like particles in mouse nerve cells infected with two brain-wasting diseases similar to mad cow disease, but found no traces of the particles in uninfected cells. Lead author Dr. Laura Manuelidis, a neuropathologist at Yale University, said the finding suggested that prions in infected brains were the result of a viral infection and not the cause of the disease.

Several brain researchers were skeptical about Manuelidis’ findings, published in the Proceedings of the National Academy of Sciences. “It’s very remarkable that we only see these particles after infection of these cells,” said Bob Rohwer, director of the Molecular Neurovirology Laboratory at the Veterans Affairs Medical Center in Baltimore, who was not involved in the study. “But the evidence that they are in fact the infectious agent responsible is still highly circumstantial.”

The prion theory of mad cow disease proposes that a normal protein spontaneously misfolds, starting a cascade of abnormal changes in other proteins. In Manuelidis’ previous experiments, prions did not appear until late in the progression of spongy brain diseases.

What's the Definition of "Raised Naturally"

Chuck ZimmermanAudio, Beef Checkoff

Dr. Dennis StifflerThe Beef Checkoff Dairy Producer Forum is underway here at the Cattle Industry Convention.

This is an annual opportunity for beef and dairy producers to get together and learn about how the Beef Checkoff is providing value to the dairy industry. Attendees heard comments from both Mike John, NCBA President, and Jay O’Brien, CBB Chairman.

The featured speaker this year was Dr. Dennis Stiffler, Coleman Natural Foods. He is giving a talk on “Raised Naturally” – Definition and Application.

I got to interview Dr. Stiffler before things got started. He talks about how dairy producers need to have a voice in the process that’s taking place from a regulatory standpoint to provide consumers with more standardized definitions of terms like “natural.”

Listen to my interview with Dr. Stiffler here: Dr. Dennis Stiffler Interview (3 min. MP3 File)

Wisconsin Speaks Out on NMPF Proposal

News EditorGovernment, Industry News, Markets, Price

Wisconsin dairy producers have their state’s congressional delegation reaching out to the USDA on their behalf.

Three members of Wisconsin’s Congressional delegation are calling on U.S. Agriculture Secretary Mike Johanns to reject changes to the federal milk marketing orders being considered by the USDA that could hurt the prices that Wisconsin dairy farmers receive.

Congressman Dave Obey, along with Senators Herb Kohl and Russ Feingold say the changes proposed by the National Milk Producers’ Federation (NMPF) would significantly alter classified pricing formulas by increasing prices paid to dairy farmers who produce milk for the fluid milk market, while undercutting those who’s milk goes to make cheese.

As part of the NMPF’s plan, the USDA would move the make allowance for cheddar cheese to 16.82 cents per pound of cheese, up from the current value of 16.5 cents. They would also raise the make allowance to produced dry whey to 19.56 cents per pound, up from 15.9 cents. The make allowance to produce butter would rise about one-half cent to 12.02 cents per pound and the cost of making nonfat dry milk rose from 14 cents to 15.7 cents per pound.

“For years, farmers in Wisconsin and Minnesota have suffered under outdated federal milk marketing orders that keep prices for milk that goes into fluid use high while paying farmers outside the Upper Midwest more for their milk through Class I dairy differentials,” Obey said. “Instead of considering proposals to bring regulation of dairy markets into the 21st century, USDA is considering a plan that would exacerbate the inequities and increase the market distortions caused by the archaic federal orders.”

Kick Back with a Yogurt

News EditorInternational, Markets, Yogurt

Drinkable yogurt is popular among the younger set — I haven’t seen too many ‘older’ folks kicking back with a Go’gurt! But, drinkable yogurt is the fastest growing food category in the world – wow!

Annual sales of drinkable yogurt rose 18.4 percent to $7.76 billion from mid-2005 to mid-2006, according to a survey by market research company AC Nielsen Global Services. Drinkable yogurt taps into the trend of consumers looking to eat and drink healthy foods, but not having time to stop and sit when they do it.

Beef Board Communicating With Dairy Producers

Chuck ZimmermanAudio, Beef Checkoff

Gary & Donna SharpI’m attending the Cattle Industry Convention in Nashville, TN and blogging for the Cattlemen’s Beef Board on their blog, Beef Board Meeting.com. I’ll try to find some items of interest for you. Like this interview I did with Gary and Donna Sharp.

Gary and Donna Sharp are dairy producers and Gary likes to point out that that makes them beef producers as well.

Gary is serving on the Beef Board and is chairman of the dairy producer communications committee. Donna is a past Beef Board member and is currently serving on the board of the national dairy checkoff.

I interviewed both of them together right before the first lunch session here today. One of the things that Donna points out is how many issues affect both the beef and diary checkoff programs and that the staff of both stay in touch to provide a united front in addressing them.

You can listen to my interview with the Sharps here: Gary & Donna Sharp Interview (5 min. MP3 File)

Research from Monsanto

News EditorDairy Business, Industry News

Finally, among all of the BST news out there, we hear from Monsanto themselves. This week, the company released a study of 213 samples of 95 milk brands, taken from retailers in the 48 contiguous states. You may not be surprised by the results.

Third-party laboratories, funded by Monsanto, tested for certain hormones, nutrients and antibiotics. Their bottom line: Milk is milk, regardless of whether Posilac is used in its production.

The study included samples of milk labeled as being free of rBST, or recombinant bovine somatotropin, the scientific name for Posilac; organic milk, which carries a similar claim; and ordinary milk bearing no such label. It found:

• No difference in the levels of the hormones progesterone, insulin-like growth factor 1, or BST. Critics of Posilac have said it elevates these levels and can cause human health concerns as a result.
• No difference in nutrients such as protein, fat and lactose.
• No antibiotic residue, which is prohibited by the Food and Drug Administration. Posilac critics say its use leads to health problems in dairy cattle, which then must be treated with antibiotics that can end up in milk.

It intends to counter “rBST-free” labeling moves by major retailers including Wal-Mart Stores Inc., processors such as Dean Foods Co. and, most recently, restaurant chain Starbucks Coffee Co. Some financial analysts estimate Posilac is worth about $250 million a year to Monsanto, which in its last fiscal year had total sales of $7.3 billion.

Cows Raise Awareness

News EditorIndustry News

cowparadelogoThe CowParade has captured the imagination of America since 1999. The recent Parade in Wisconsin shows how successful these arty cows have been in promoting the dairy industry.

More than 100 colorful cows grazed the Madison area and traveled to every corner of the state this past summer and fall as part of CowParade Wisconsin 2006. A survey conducted by the Wisconsin Milk Marketing Board (WMMB) following the event confirmed the memorable success of CowParade Wisconsin. When compared to a similar survey of 300 geographically dispersed Wisconsin residents done just before the CowParade promotion, it was found that Wisconsinites’ awareness of the state’s $20.6 billion dairy industry and how it affects their quality of life improved dramatically thanks in part to the promotion.

· 94 percent of those surveyed agreed that Wisconsin is proud to be America’s Dairyland
· 92 percent indicated they “would miss seeing Wisconsin farms if too much land was developed into housing and commercial buildings”
· 89 percent felt “the dairy industry played a key developmental role in the state of Wisconsin”
· And, 88 percent said they were “proud to call Wisconsin the Dairy State.”

Noteworthy awareness increases between the two surveys were also seen in the level of agreement with the following statements:

· “Wisconsin dominates the cheese industry” – Up 9 percentage points
· “One of every five Wisconsin jobs is related to agriculture” – Up 8 percentage points
· “The dairy industry improves my quality of life” – Up 6 percentage points