May 2012 Issue No. 394
Current Dairy Supply/Demand Picture Downright Ugly (p. 1):
In mid-spring 2012, the U.S. is awash in raw milk supplies.
Milk powder inventories are building rapidly. Long-distance hauls of milk from
both the East and West Coasts are finding low-ball prices paid at Midwest dairy
manufacturing plants (-$6 to -$7 per cwt.).
John Bunting Suffers Strokes, Undergoes Brain Surgery (p.
1):
The Milkweed’s “right-hand man” – John Bunting – is
hospitalized, recovering from two strokes and brain surgery. We’ll keep folks
posted on our Web site home page – www.themilkweed.com
“Good News Department” (p. 2):
The shelf if pretty empty. The spring flush has either peaked
early or started to recede. And cull cow prices are high, due to a shortage of
beef.
April Class III Price $15.72 – Class IV $14.80 (p. 2):
Falling dairy commodity prices are generally pulling down
manufacturing milk prices in the federal milk order program. More to come,
likely.
Big Export Sales to China Reducing U.S. Corn Supply (p. 3):
In recent weeks, China has purchased large volumes of U.S.
corn. Some of these purchases are for shipment this marketing year (by August
31). Other sales are for the following grain marketing year. Remaining stocks of
grain are running scarce. USDA’s latest grain analysis – issued May 10 – shows
an anticipated 18+ bushel per acre gain in this year. Price-wise: USDA projects
cash corn markets will be $4.20 to $5.00 per bushel. We’ll see …
Negotiations Pending Re: Russian Embargo of U.S. Dairy
Products (p. 4):
For nearly two years, Russia has embargoed U.S. dairy
products – in a dispute over animal health certification, details of which are
vague. A team of U.S. negotiations are trying to schedule a trip to Russia to
iron out these problems. Russia is the world’s biggest importer of cheese and
butter.
U.S. Dairy Import Discussions Far Along with China (p. 4):
In April 2010, China enacted a ban against U.S. dairy imports
– perceived as a strategy for some strange reason. Negotiations are ongoing … so
are exports to China.
ERROR! USDA/AMS Goofs Whey Price for Week of March 31 (p.
4):
For the first week of USDA’s new dairy price data collection,
the AMS goofed up by four cents per pound on whey prices. The error was not
acknowledged until three weeks later.
Farm Bill Events – The Right Progress, or Not? (p. 5):
Writer Julie Walker updates details on dairy’s portion in the
2012 farm bill discussions. It’s doubtful that – in a big election year – a farm
bill will pass. That’s probably good. Also, Julie lists a long array of
questions that she thinks ought to be asked regarding the dairy provisions of
the farm bill.
Protein Imports Disrupt U.S. Dairy Markets,
Weaken Producers (p. 6-7):
Our other “Story of the Month” can be read
here.
Greek-Style Yogurt Sparking U.S./Canada “Border War” (p.
7):
Chobani yogurt – the most successful consumer product launch
in U.S. dairy industry history – wants to sell product in Canada. But yogurt
giants Dannon and Yoplait want the Canadian government to impose a 200+% import
surcharge. Meanwhile, “smuggling” of Chobani yogurt from the U.S. to Canada is
going on.
In-Depth Research of Ground Beef Controversy: Facts Don’t
Support Claims of “Safety” for LFTB (p. 8-10):
Writer Paris Reidhead has exhaustively researched the LFTB
(“pink slime”) details and lays out a comprehensive history of what’s evolved as
a big ground beef battle between meat processors and consumer groups. Most of
the material used in LFTB in the U.S. is imported trim. Disgusting stuff, this
ammoniated mash from slaughterhouse cutting room floors … domestic and
otherwise.
Holsteins Now Dual-Purpose Breed: Dairy/Beef (or
Beef/Dairy?) (p. 10):
Holstein bull calves are bringing more than grade Holstein
heifer calves at many auctions. Light-weight Holstein heifers are being bought
to go into beef feedlots. Many dairy cows’ value is primarily for hamburger
right now. Pete Hardin explains how the Holstein dairy cow has become a
dual-purpose breed.
Organic Promotion Check-off Proposal has Farmers Wary (p.
11):
A processor-dominated trade group – the Organic Trade
Association – is proposing an across-the-board organic foods promotion board,
overseen by USDA. Many farmers are skeptical, given the track record of
USDA-managed agricultural promotion groups. Sounds like another tax …
DFA/DMS Dilemma: Can’t Assess Non-Members as Marketing
Losses Climb (p. 11):
Just about everything is going wrong for DFA and its
marketing clone, Dairy Marketing Services. Huge losses are piling up as the pair
tries to get rid of surplus milk from coast to coast. DFA can pass on these
marketing losses to co-op members (called “reblends)), but not to “independent”
producers whose milk is marketed by DMS.
Some Southeast Producers Confused by Milk Marketing Details
(p. 12):
As farmers submit milk marketing volumes to collect claims in
the Southeast dairy antitrust lawsuit, they’re encountering problems and
confusion. Some DFA members are learning that the co-op marketing some of their
milk in Florida, but the farmers never got any extra money! Now, they can’t
collect on those marketings because the milk volume was not pooled on either
Order 5 or Order 7.
On NAIS, National Milk Producers Sings Same Old Song: To
Heck with Farmers (p. 12):
Writer Mary Zanoni explains how the dairy co-op lobby –
National Milk Producers Federation – is sneakily pushing is agenda of mandatory,
electronic identification for dairy cows. Why???
Dairy Commodities in Surplus, Under Several Downwards Price
Pressure (p. 13):
Egad. Lots more milk than anyone needs is stressing truckers
and dairy manufacturing plant workers. Nonfat dry milk is piling up. Dairy
exports are weak, both volume- and price-wise.
Too Much Competition? DFA Running Backwards in Ohio (p.
14):
“DFA is all done in Ohio.” That’s what several folks are
saying, following many setbacks for DFA’s milk marketing in the Buckeye State.
DFA members have lost virtually all premiums. Milk has been dumped. Members
building new farms are told the co-op won’t take their milk. What’s wrong? Among
other items, Ohio is too competitive for the nation’s largest dairy cooperative.
Why? Why Not (Selected Short Subjects) (p. 15):
Pete Hardin let’s off a few short bursts on short-term
“helps” for the dairy surplus problems, the evils of “Free Trade,” and DFA’s
failure to provide 2011 financial audits ot its members.
33 years complete, and … (p. 15):
The May 2012 issue completes 33 years of continuous
publication for The Milkweed. Editor/publisher Pete Hardin looks back and
looks ahead.
Closer Look at Klondike Cheese’s “Continuous Coagulation”
System (p. 16):
We follow up last month’s article about Klondike Cheese’s
Feta cheese production/marketing with a photo essay detailing the German-made,
continuous coagulation system. Imagine! A cheese curd making system without
stainless steel sidewalls!
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