Inside this month’s issue …
OUR STORIES OF THE MONTH (Click below on
the blue title to read "the complete story"):
SUBSCRIBE TO THE MILKWEED TO READ ALL THESE CURRENT DAIRY STORIES!!
Reasons for Improving Dairy Prices after 2018’s First Quarter (p. 1 - STORY OF THE MONTH – CLICK ABOVE):
Pete Hardin details his reasons why dairy commodity prices will start improving in early spring. One of our “Stories of the Month.”
75% of EU SMP Intervention
Stocks 2-Yr. Old by June (p. 1):
We analyze information that originally appeared in Barry Wilson’s Dairy Industry Newsletter about the age of the European Union’s intervention stocks. By late June, three-quarters of the EU’s governments’ stockpiles of Skim Milk Powder will be more than two years old. Not exactly fit for a king!
Jan. ’18 Class III Price Nose Dives gain:
$14.00/cwt. (p. 2):
The value of cheese milk in USDA’s milk order system fell to $14.00/cwt.
EU Grappling with EMP Inventories: Tough
Decisions Ahead (p. 3):
What to do with nearly 900 million lbs. of aging Skim Milk Powder? EU agricultural leaders face some tough decisions, including re
Legal Complexities Freeze Calif. FMMO Process
Don’t ask. Complex legal challenges to status of administrative law judges now before the U.S. Supreme Court mean USDA cannot proceed any further at this time with the effort to create a California federal milk order.
JBS Hopes to Divest U.S.
Cattle Feeding Assets (p. 3):
The financially troubled and scandal-ridden Brazilian beef processor, JBS, SA, is trying to sell is U.S. cattle feed lots to investors.
New Tax Code, Section 199Q: What’s the Deal?
Nate Wilson looks at the politics behind Section 199A of the new federal tax law. That law allows co-op members to write down 20% of their sales of agricultural products to co-ops. Somebody made a huge mistake on this one!
Breeding Product Temporarily Off Market Until
Production Facility Re-opens (p. 4):
Jan Shepel details how the reproduction veterinary drug Cystorelin® is in tight supply because the manufacturing plant has been shut down.
MD&VA’s Laurel MD Powder Dryer Goes Down
In he second half of January, the milk powder dryer at Maryland & Virginia Milk Co-op’s Lauren, Maryland plant went down. The co-op has been forced to dump large quantities of condensed skim milk, after removing the butterfat.
News Going into 2018 Not Great for Ag
Commodities, Including Dairy (p. 5):
Jan Shepel summarizes dairy markets’ analyses by Dr. Mark Stephenson of the UW-Madison at that university’s recent Ag Outlook Forum. Stephenson sees 2018’s milk prices running close to 2016’s lowball levels.
Rep. Peterson (D-MN) Not
Optimistic About MPP-Dairy Changes in Farm Bill (p. 5):
The politician who sired the non-performing Margin Protection Plan-Dairy, Minnesota Congressman Colin Peterson, stated recently that he sees little chance for changes in that program in the next federal Farm Bill. Does that mean dairy farmers are in for another four years of this protracted “Colin-oscopy”?
Livestock Outlook for 2018: Growing Beef
Production, Importance of Exports (p. 7):
Jan Shepel summarizes the livestock outlook provided by UW-River Falls agricultural economist Dr. Brenda Boetel at the recent UW Ag Outlook Forum. Dr. Boetel emphasized the need for expanded beef exports to maintain producers’ prices.
U.S. Converted from MPC
“Screwee” to MPC “Screwer” (p. 9):
Pete Hardin traces to sordid history of Milk Protein Concentrates for the past two decades. U.S. dairy farmers saw diminished demand for their production due to MPC imports in the late 1990s and early/mid-2000s. Then, the U.S. got the bright idea to manufacture MPCs and sell them to Canada. That’s how this nation went from MPC “screwee” to MPC “screwer.”
Steps to Eliminate Organic Fraud, Make USDA
Accountable (p. 12):
John Bobbe, director of OFARM (a consortium of organic grain marketing co-ops), lays out his suggestions for restoring integrity to organic agriculture, with particular emphasis on grain. We keep hammering on organic grain issues because cheap corn makes cheap milk – conventional and organic.
Organic Farmers Assn: For Organic Farmers, By
Organic Farmers (p. 14):
John Bobbe details the purpose of a relative newcomer on the organic scene – the Organic Farmers Assn. He notes tha neighbors need to work with neighbors to improve the climate for organic agriculture.
Losing “critical mass” in dairy country … (p.
Pete Hardin takes a look at the dairy mess and offers short-term solutions to farmers to take the top off milk production. We have a crisis on the farm. And the silence among dairy co-op leaders for honest suggestions is deafening.
Meager resources devoted to promoting butter
… (p. 15):
The national dairy promotion check-off generates $300 million annually. But only about $1 million is spent promoting butter. No single commodity has the ability to improve dairy farmers’ milk prices faster than an uptick in butter prices. Hardin suggests a $10-$15 million annual expenditure to promote consumer butter purchases. Where’s he money to come from? Take it out of the worthless “Fuel Up to Play 60” and GENYOUth wastes funded by dairy promotion dollars.
Global protein glut in the midst of global
hunger ,... (p. 15):
With all the hunger in the world, why are producers of dairy proteins facing such tough financial times? We need to use surplus dairy proteins to address global hunger.
State of Antitrust in Agriculture:
Consolidation and Other Competition Issues in Agricultural
Sectors (p. 16):
The nation’s leading authority on agricultural and food anti-trust issues, Dr, Peter Carstensen, an emeritus professor at the University of Wisconsin-Madison law school, discusses critical issues involving competition. He details his thoughts about the dairy industry, the Capper-Volstead Act, federal milk orders, and foreign ownership of food processing businesses.
© 2002 - 2017 The Milkweed all rights reserved