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May 2015  Issue No. 430

Inside this months issue...

Butter Prices Zooming Up; Cheddar Solid; Milk Powder Weak (p. 1):
    Butter prices at the Chicago Mercantile Exchange are showing surprising strength, topping the $2/lb. mark on May 11. Cheese demand is solid. Dairy Protein powder markets are weak.

CA’s Surface Water Metrics: That’s All Folks (p. 1):
    California’s reservoirs are 20% below seasonal normal capacity in early May. With zero snowpack left to melt, what’s in the reservoirs is all Golden State residents have until late next fall. Agriculture is taking a lot of criticism for its water use.

Gov’t “Sequestration” Reduces DMPP Pay-Out by 7.3% (p. 1):
    A law passed by Congress in 2011 means that USDA payments to the Dairy Margin Protection Program will be reduced by 7.3%. Not that the half-cent payout on $8.00 margin insurance for the January-February 2015 DMPP period was any bargain.

March ’15: Mozzarella, Butter & Yogurt Output All Lower (p. 2):
    Three key dairy sectors – Mozzarella, butter and yogurt all showed surprisingly weak numbers for March 2015, compared to one year ago.

Listeria Contamination Forces Recall of All Blue Bell Ice Cream (p. 2):
    A listeria contamination problem has closed all Blue Bell Creameries’ plants and a 100% recall of products. Three persons were killed by the contamination. FDA has released information indicating that Blue Bell execs knew about the problem a couple years ago.

April 2015 Class III Price is $15.81/cwt.; Class IV is $13.51 (p. 2):
    The numbers tell it all. Rising butter prices will lift class prices in coming months.

Trans-Pacific & Atlantic Trade Pacts Loom as Congress Advances “Fast Track” (p. 3)
    Contributor Jim Eichstadt dissects the political events in Washington, D.C. and puzzles why certain dairy producer groups would support Free-Trade measures that would denigrate our nation’s supply food integrity.

Fonterra & University of Wisconsin Too Friendly with China’s Dairy Industry (p. 4):
    Now that global milk prices have crashed due to rising Chinese milk production and diminished dairy import needs by China, Pete Hardin wonders what rationale there was/is for major dairy interests to help China grow its own milk production … if the end result is lowball milk prices.

NY Gov’s Trade Junket to Cuba Included Cayuga Milk Ingredients & Chobani (p. 4):
    In late April, NY governor Andrew Cuomo went on a trade mission to Cuba. Tagging along with Cuomo were representatives of New York State dairy processors … hoping to drum up business.

Some Suggested Solutions for New York State/Northeast Dairy Industry Mess (p. 5):
    Pete Hardin offers suggestions regarding the New York dairy marketing crisis. They include: Review USDA’s calculations for the “All-Milk Price,” have USDA make emergency purchases of frozen hamburger, conduct an emergency analysis of dairy marketing conditions in the Northeast, declare the Northeast dairy industry an economic disaster zone, and create an emergency USDA program to offer low-interest loans to producers and milk haulers in the event of handler bankruptcies.

Recent Dairy Conferences: Differing Fortunes for Cheese & Butter vs. Dairy Proteins (p. 6):
    Read our “Story of the Month” here.

New York Dairy Situation a Huge Mess (p. 7):
    Pete Hardin digs into the imbalance of dairy supply/demand in New York State.

Northeast & Mid-East FMMOs Pooling “Dumped” Milk (p. 7):
    For the period April 1 to June 15, 2015, two beleaguered federal milk orders will pool milk that’s dumped. That’s how bad supply/demand imbalances are in that part of the country.

Key ADPI Speakers’ Important PowerPoint Panels (pp. 8, 9 & 16):
    We reproduce important PowerPoint panels provided by speakers at the recent American Dairy Products Institute/American Butter Institute annual conference. Along with key graphics, we offer summary analysis.

The Lancet Draws Monsanto’s Fire (p. 10):
    Writer Paris Reidhead reports further on the events surrounding the recent declaration by the International Agency for Research on Cancer’s determine that Glyphosate is a likely cancer causing substance. The Lancet – a British medical journal – caused Monsanto executives to howl in anger over that journal’s reporting of IARC’s findings.

“Con Job” – Monsanto’s Hitmen Target Dr. Oz (p. 10):
    Ten “distinguished” medical doctors recently wrote Columbia University, seeking removal of famous television doctor, Dr. Oz, from that institution’s medical faculty. The issue: Dr. Oz’s repeated denigration of biotech foods. One of the “distinguished” doctors actually served in federal detention for Medicaid fraud. These clowns are fronting for Monsanto.

Stover: Baled Cornstalks Gaining Favor as Cheap Substitute for Hay (p. 11):
    Contributor Jim Eichstadt goes into great depth discussion the growing practice of feeding corn stover to livestock. He details the reasons (scarcity of hay) and nutritional values. Great article!

Empire Specialty Cheese Project: Suddenly, Nobody Wants to Talk … (p. 12):
    Writer Nate Wilson again details what’s (not) going on at the long-delayed Italian cheese plant project in western New York. A lot of public money has been committed to this long-delayed construction.

Chobani Custody Battle? All in and All Done (P. 12):
    Writer Nate Wilson reports on news media summaries of the custody battle for Chobani Yogurt waged by founder Hamdi Ulukaya and his ex-wife, Dr. Ayse Giray.

Sorghum Can Thrive in Dry Conditions; Rootwork Control, too (p. 13):
    Writer Paris Reidhead talks about sorghum’s benefits: about half the moisture requirements of corn and two years of “free” rootworm control after the sorghum is harvested.

Cultivate and fertilize domestic markets smarter … (p. 15):
    Now that the Golden Idol of exports markets has again tarnished, Pete Hardin details why it makes more sense for U.S. dairy interests to do a far better job developing increased at-home demand.

Does Monsanto’s failed bid for Syngenta signal plan to pull back from GMO seeds? (p. 15):
    Pete Hardin comments on a recent report in The New York Times that Monsanto’s failed bid to buy Syngenta represents a strategy to “morph:” Monsanto back ot a chemical firm and move away from seed biotechnology.

Dean Foods U nveils “DairyPure” Milk (p. 16):
    Dean Foods has rolled out a national milk label – “DairyPure.” Doesn’t matter what they call the product, as long as Walmart is charging $2.00-$2.50/gallon more for Dean’s branded milk than what Walmart’s store brands go for.

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