March 2023 – Issue No. 524

Inside this month’s issue …

OUR STORY OF THE MONTH (Click the blue title below to read "the complete story"):

FDA’s Draft “Guidance” OKs Clearly Illegal Labeling of Plant-Beverages as “Milk”

More Milk & Lower Retail Sales Push Down Commodities’ Prices (p. 1): Dairy commodities’ prices are generally down in recent weeks. Milk supplies are growing and retail sales are below year-ago levels during 2023’s first two months. Good news? Chinese buyers are very active, and cull cow prices are strong. California’s flooding should impair that state’s milk output – bad news for California.

China’s Reopening Economy Boosting Asia’s Dairy Demand (p. 1): Chinese dairy buyers are back in the market, buying and forward-ordering nicely. China’s opening up its Covid restrictions means other Asian nations that are tourism destinations for Chinese are also buying more dairy.

Grain Markets Sliding Backwards in Mid-March 2023 (p. 2): Slow export sales are pushing down current cash grain prices.

Feb. ’23 Manufacturing Milk Classes Decline Again (p. 2): All manufacturing Classes of milk declined, price-wise, in February.

DAIRY PRIDE Act Re-Introduced in Congress After FDA “Guidance” (p. 3): Wisconsin U.S. Senator Tammy Baldwin has rounded up numerous co-sponsors and has reintroduced legislation that would order the FDA to enforce the law when it comes to standardized dairy products’ names.

Danone for Offer Horizon Organics for Sale (p. 3): The French corporate parent of Horizon has put up a “For Sale” sign.

Red Stag: New Entrant in Eastern NY Trucking (p. 3): Curious: a new player has appeared in milk trucking in eastern NY. Red Stag is taking over hauling for Horizon and Horizon is soliciting producers.

Boosting Class I Milk Prices: Milking a Sick Cow? (p. 3): As Class I use sinks lower and lower, the dairy co-op lobby is seeking at least two moves to boost consumers’ beverage milk costs. How smart is that?

Jan-Feb ’23 Dairy Retail Sales Declined Sharply (p. 4): Ouch. The financial squeeze of food inflation is reducing dairy products’ sales volume.
Order 30 Class I Use in Dec. & Jan.: 5.6% (p. 4): Class I sales in the Upper Midwest federal milk order have demised to a miniscule level.

NZ’s North Island Slammed by Cyclone; Disastrous Flooding (p. 5): Jan Shepel reports on terrible flooding in New Zealand’s North Island that hit in mid-February. Readers may view a video of a dairy cows swimming for their lives across a flooded river, heeding their owner’s summons: “Come here, girls.”

Checkoff Reform Legislation Re-Introduced (p. 5): Once more, concerned legislators have introduced proposed legislation in Washington, D.C. to reform how agricultural commodities’ promotion funds are spent.

FDA’s Draft “Guidance” OKs Clearly Illegal Labeling of Plant-Based Beverages as “Milk” (p. 6-7): HUGE ISSUE!!! Pete Hardin takes apart FDA’s recent draft “Guidance” that would allow plant-based beverages to be called “milk” – even though that agency acknowledges that in numerous cases, such plant-based products are nutritionally inferior to old-fashioned cow’s milk.

USDA Posts Final Rule on Enforcing Organic Foods’ Integrity (p. 8): This horse escaped from the barn more than a decade ago. No guarantee that USDA’s promise to better enforce organic food rules will be any better than past failures.

Dairy Checkoff Funds F.A.R.M. Program, NMPF Runs it: F.A.R.M. Rules Cause Some Producers to Lose Milk Markets (p. 8): Hard to believe, but dairy promotion checkoff money is funding the F.A.R.M. program, operated by National Milk Producers Federation. And dairy farmers have lost their milk markets for alleged failure to comply with F.A.R.M. rules.

Prairie Farms’ FY 2021-22 Saw $26.478 Million Net Loss (p. 8): Worst year in Prairie Farms’ history.

Corporate Resolutions Committee Nixes Proposal to Reveal DFA’s Directors’ Per Diem Payments (p. 8): On February 28, DFA’s resolutions committee killed a proposed resolution to make available to members information on directors’ compensation.

Many battles at the dairy case (p. 10): Pete Hardin takes a long look at the battles taking place at the dairy case, and how many of these battles are harming dairy sales.

Mexico Can’t Be Forced to Import U.S. GM Corn, Study Says (p. 11): Paris Reidhead explores the major brouhaha between the U.S. and Mexico over Mexico’s refusal to accept imports of GM corn for human use.

Maple Leave Cheese Co-op Bankruptcy: Judge Accepts and Unseals Settlement (p. 11): We reveal details of the Settlement between parties in the aftermath of the Maple Leaf Cheese Co-op bankruptcy. That failure occurred in December 2020 in Green County Wisconsin. Both parties wanted the Settlement sealed, but the judge refused and made it public.

Pictures of Former Dean Foods’ Corporate Headquarters’ Demolition (p. 12): Pictures show the destruction of the former Dean Foods corporate headquarters in Franklin Park, Illinois.

Too Much Moisture: Snow & Rain Forebode Massive California Flooding (p. 12): Huge volumes of rain in the valleys and snow in the mountains mean California’s current flooding will last for a long time.

February 2023 – Issue No. 523

Inside this month’s issue …

OUR STORY OF THE MONTH (Click the blue title below to read "the complete story"):

Complaint to USDA’s Office of the Inspector General Regarding DMI’s Financial Excesses

Commodity $$$ Lower, Modest Recent Rebound for NFDM & Dry Whey (P. 1): The big news? Chinese buyers have recently returned to the U.S. dairy commodity market. Our commodity prices are favorable, the U.S. dollar is somewhat less strong, and China’s reopening economy needs more dairy products.

2023 U.S. Cattle Slaughter Numbers to Tumble Dramatically (p. 1): Drought and high feed costs boosted unduly large numbers of beef cattle to market last year. This year, the outlook is for 5% less slaughter animals (dairy and beef). Tight beef supplies will impact dairy.

Economist Predicts Farm Milk Price Decline in ’23 (p. 1): Dr. Mark Stephenson projected that 2023’s “All-Milk Price” would be 4.50 to $5.50 lower than 2022’s. Other milk price forecasts are less down. Mark’s outlook was negative on the U.S. economy and export opportunities to China. Both those variables may be changing.

Volatility, South American Weather Are Key Factors in Grain Markets Now (p.2): Jan Shepel’s monthly review of grain prices covers the grain markets. Old crop will be tight, new crop price estimates are down.

Plaintiffs Suffer Setback in SW Antitrust Case (p. 2): In the Southwest dairy antitrust lawsuit against DFA and Select Milk Producers, an administrative judge has stayed (i.e., halted) discovery. Not a good omen for plaintiffs’ case.

January ’23 Class Price is $19.41/Cwt. (Down $1.07) (p. 2): All Classes of manufacturing milk declined in USDA’s federal milk marketing order program for January.

Feb. 28 Hearing on Southeast Transportation, Delivery Credits (p. 3): At the request of regional dairy cooperatives, USDA will conduct a multi-order hearing on transportation credits, assembly credits and other matters, starting on February 28. Bottom line: More money drained from monthly fmmo revenue pools before produecrs’ statistical uniform prices are calculated.

Agri-Mark Boosts Milk Check Deducts While Contemplating Future (p. 3): Agri-Mark’s continued red ink flow means that as of January 1, members will pay a variety of higher marketing fees. Meanwhile, unmentioned to members, Agri-Mark directors are contemplating their options – incuding sale of the co-op’s only profitable subsidiary: Cabot.

Fertilizer Commodity Prices Keep Dropping (p. 3): Paris Reidhead’s monthly update on commodity fertilizer costs shows further declines during the past month. Global natural gas prices have sharply declined, due to warm winter weather in Europe and conservation measures there.

December ’22 Continues Year(s) Long Fluid Milk Sales Plunge (p. 5): December ’22 saw a 4.3% decline in fluid milk sales (compared to Decembrr ’21). For all of ’22, estimates are that total fluid sales declined by about 2.3%.

Ottery Transportation, Inc.: A Couple Hundred Million Road Miles Logged Over 5+ Decades of Hauling Milk (pages 6-7): We profile a lasrge-scale milk transportation firm in eastern Wisconsin.

Cow Breath-Analysis Technology Identifies Respiratory Infections (p. 8): Exhale! Jan Shepel describes a new technology that can detect respirator infections in cattle by simply sampling those animals’ breath.

Simplify FMMOs: 2 Classes, Annual Pooling Commitment (p 10): Pete Hardin proposes two Classes of milk in FMMOs, with a once a year opportunity for manufacturing plants to be in or out of the regional milk order.

My Best, Needed Laugh (p. 10): Pete Hardin reminisces about the funniest thing that ever happened during his 50+ years as a dairy journalist. You’ll laugh you’re a** off.

Prairie Farms’ Heavy Whipping Cream Contains Hydrogenated Soybean Oil (p. 11): Hydrogenated soybean oil in Prairie Farms’ Heavy Whipping Cream? Where is Mr. Yuk when you need him?

Will Beef Needs Help Offset Milk Production & Price Declines! (p. 11): Strong demand for beef – due to lower feedlot cattle available for slaughter in ‘23 – will have strong implications for milk production.

Complaint to USDA’s Office of the Inspector General Regarding DMI’s Financial Excesses (p. 12): Our “Document of the Month” – Pete Hardin files a formal complaint to USDA’s Office of the Inspector General regarding excessive executives’ salary and compensation at Dairy Management, Inc.

January 2023 – Issue No. 522

Inside this month’s issue …

OUR STORY OF THE MONTH (Click the blue title below to read "the complete story"):

December 18, 2022 at a Walmart Store in Central Florida

Only Block Cheddar Holds Amid Dairy Commodity Price Erosion (p. 1): At year’s end, most dairy commodity prices had slipped backwards. Butter suffered a big decline. But tight supplies and strong demand has actually pushed up block Cheddar prices in early 2023.

CA Dairy Faces Many Challenges from Incessant Moisture (p. 1:): Continued, intense moisture coming off the Pacific Ocean has inundated California’s lower regions and is causing severe flooding. Dairy farmes face losing stored hay, due to moisture spoilage. Muddy cow yards mean milk quality problems and other animal disease problems ahead.

Markets Factoring Global Weather, Exports and War into Grain Prices (p. 1): Jan Shepel takes her monthly wide view of the national and global grain markets situation. Wheat prices have declined, due to volumes from Australia and Russia. Hopes are that moisture shortages in the U.S. will be alleviated.

Pre-Christmas: Regional Cream “Multiples” Also Started Melting (p. 2): The week before Christmas, prices paid for spot sales of cream fell backwards. The “multiples” in all regions actually turned negative at times.

Apologies! Milk Transportation Story Bumped Back (p. 2): Bad timing? Whatever ... our plans to take a deep look at dairy’s milk transportation sector have been bumped back to a future issue.

December ’22 Class III Price at $20.50/Cwt. (Down 51 Cents) (p. 2): All manufacturing Class milk prices for December 2022 slid backwards, in USDA’s milk order program.

Questions Loom Re: Foremost’s Scheme for Retirees Equity Sales (p 3): Greater scrutiny of Foremost Farms’ scheme to sell retired members’ equities to current members is analyzed. One former was told by a high-level Foremost official that she should be glad to get anything for her equity that totals nearly $400,000.

Another “Generational Blizzard” Buries Buffalo, NY Area Dairy Industry (p. 3): Buffalo, NY has enjoyed two “once in 25 years” blizzards within one month. The latest – over Christmas weekend – totally froze dairy logistics in place – from snowed-in farms to closed major supermarkets.

Kroger: Darned Either Way in Albertsons Purchase Proposal (p. 3): Food price inflation means scrutiny for the proposed purchase by The Kroger Company of Albertsons – a merger of the nation’s two largest supermarket chains. Kroger faces an added problem: Albertson’s owners are pulling a $4 billion stockholder bonus, pre-merger. That move would saddle Kroger with a cash-strapped acquisition. Nearly half of the $4 billion bonus would be borrowed!

AFBF Dairy Working Group Releases FMMO Policy Proposals (p. 4): We summarize the eight needed changes that the American Farm Bureau Federation’s Dairy Working Group has propose for federal milk marketing orders. These proposals follow years of deliberations and the AFBF’s mid-October meeting in Kansas City.

Can FMMOs Be Made Fair, Equitable? (p. 4): Pete Hardin puzzles whether the major dairy cooperatives – which essentially control federal milk orders – really want to change systemic inequities? After all, co-ops propose rules changes, vote on them, and then do not need to follow them – i.e., paying their members “whatever.”

Omnibus Spending Bill Excludes Dairy Workforce Provisions (p. 5): Jan Shepel reviews the dairy components of the recent massive federal omnibus spending bill.

Late Christmas Present: Declining Fertilizer Prices (p. 5): Recent fertilizer prices (F.O.B. the Port of New Orleans) have declined. Paris Reidhead provides numbers and an explanation.

Most Dairy Livestock Prices Softer in Early January (p. 5): Pries for good dairy culls are moving up, due to beef shortages. Same for dairy-Angus calf crosses. Some markets see stronger prices for breeding age heifers. Otherwise, markets for dairy livestock are relatively flat.

AMPI’s Portage, WI Plant Suffers Major Fire Damage (p. 6): Jan Shepel reports on the early January fire that hit AMPI’s cheese processing plant at Portage, Wisconsin. That facility is one of the biggest of its kind in the country.

Wisc. Dairy Herd Numbers Continue Dropping (p. 6): In 2022, Wisconsin saw its number of dairy farms decline by just over 400.

More Research Details on “Moo-thane” Suppression (p. 6): Paris Reidhead explains how certain feed materials may reduce cows’ greenhouse gas emissions.

Vilsack OK with Throwing Mexican Campesinos Under the Bus (p. 7): Paris Reidhead details the history of Mexico’s rural economic devastation that has taken place since the 1993 NAFTA treaty was signed. Cheap U.S. corn imports tanked Mexico’s corn producers. Mexico is now planning to ban imports of genetically-modified corn as well as disallow use of glyphosate herbicides. USDA Agriculture Sectary Vilsack is twisting the Mexica president’s arm, so to speak, to avoid bans on GM grain and glyphosate.

Intense Precipitation Builds Massive Snowpack in California (p. 8): At press time (Jan. 10), California’s snowpack in the Sierra Mountains was 215% greater than the 20-year historic average. And the snow keeps on coming!

Why not? Visions for a better 2023 (p. 10): Pete Hardin suggests that U.S. dairy work with non-profit food groups to collect funds to acquire dairy products to Ukraine’s hungry citizens.

Reminiscing on a +50-year dairy journalism career … (p. 10): Pete Hardin traces the roots of his long dairy journalist career.

Bailout of Teamsters Pension Fund merits questions (p. 10): See the following article.

$35.8 Billion Taxpayer Bailout for Failing Teamsters Union Pension Fund (p. 11): In December, the federal Pension Benefit Guarantee Board okayed a $35.8 billion bailout for the scandal-ridden Teamsters Union Central States Pension Fund. $35.8 billion!

December 18, 2022 at a Walmart Store in Central Florida (p. 12): A Florida dairy farm woman took a picture of a virtually empty fluid milk case on December 18 at a Walmart store in Central Florida. We reproduce that picture, along with a poem commemorating that repetitive situation. Hint: What Yiddish word that rhymes with “luck” describes Borden’s top dog, Gregg Engle$?

DFA Corporate Board Chair Randy Mooney Avoids Regional Election (p. 12): Some powerful dairy politicians’ board positions are better not left to review by their neighbors.

December 2022 – Issue No. 521

Inside this month’s issue …

OUR STORIES OF THE MONTH (Click the blue title below to read "the complete story"):

$2,680,255: DMI’s Retired CEO Gallagher’s ’21 Compensation AND
National Dairy Promotion Checkoff Has Strayed Far from Missions

2022 Looms Amid a Cloud of Economic Uncertainty (p. 1): Inflation? Recession? Higher interest costs? Fertilizer costs? Food price inflation? Pete Hardin reviews the economic uncertainty we’ll face in 2023.

Dairy Commodities’ Prices Seasonally Slipping (p. 1): Seasonally, dairy commodity prices are sliding backwards. Firms are leery about carrying excess inventories in early 2023.

Grain Factors: Mexico’s Pending GM Corn Ban, Argentine Drought & USDA Report Adding to Mix (p. 1): Jan Shepel has crafted a detailed look at the many complex factors involved in the extended grain trade. Excellent journalism!

$2,680,255: DMI’s Retired CEO Gallagher’s ’21 Compensation (p. 2): One of our stories of the month.

Food Processors See Skyrocketing Ingredients Costs (p. 2): Ingredients’ costs for 2023 are showing huge increases. These higher costs will fuel food inflation.

November ’22 Class III Milk Price at $21.01 – Down 80 Cents (p. 2): All manufacturing Class milk prices declined for November, due to fallng dairy commodity prices.

Coca-Cola Scouting Northeast for Fairlife Plant Site (p. 3): Dramatic sales increases – 28% compounded annual growth since 2018 – mean Coca-Cola is scouting for a new production facility. Bet on somewhere in Pennsylvania.

National Dairy Promotion Checkoff Has Strayed Far from Mission (p 4): Another story of the month.

Limited Posilac® Still Being Marketed and Used (p. 4): Rick North details different analysts’ opinions about continued sale and use of Posilac – the biotech bovine drug that spurs milk production in lactating cows.

Ex-Foremost Farms Members Offered “Patronage Interest” Redemption Scheme (p. 5): Foremost Farms is suggesting that retired members who own “Patronage Interest” in the co-op sell their holdings sto active members. Our analysis: this is a crazy scheme that Foremost has failed to properly explain.

Ex-Foremost Member Warns: DO NOT Provide Personal Financial Data (p 5): Many inconsistencies in Formost Farms’ “Patronage Interest” sell-off scheme lead one savvy retired member to advise against others participating. Why? Too much financial information is sought with no guarantee of any receipt of payments.

Good Dairy Compost Helps Fight Climate Change (p. 6): Paris Reidhead details why composting ruminant and poultry manure produces no greenhouse gasses such as methane.

Commercial Feed Additive Fights Methane Formation (p. 6): Writer Paris Reidhead explains that Rumensin® -- an approved feed additive for dairy and beef cattle – reduces bovine enteric emissions (farting and belching).

Dairy Woman’s Dreams Come True: Showing Milking Shorthorns and Milking Cows (p. 7): Carrie Ritschard of Monroe, Wisconsin is living her dream – raising, milking, and showing top Milking Shorthorn cattle.

A Brief History of the Milking Shorthorn Breed (p. 7): Jan Shepel provides a brief history of this dairy breed.

Cell-Cultured “Chicken” Passes FDA’s Initial Review (p. 8): The federal Food and Drug Administration has signed off on any human health concerns regarding lab-cultured “meat” that is supposed to mimic chicken. Pete Hardin notes how a White House declaration in 1991-92 concluded that biotech products needed no special safety testing.

Proposed Settlement for Class Action vs. Lely’s A4 Robotic Milkers (p. 8): In November, a Class Action Settlement was filed by lawyers for plaintiffs and defendants in a legal matter that involves Lely’s A4 robotic milking units. The Settlement’s value could reach just over $100 million.

Sources Advise: “Emergency Class I Hearing” Idea Won’t Fly (p. 10): Wise souls advise that Pete Hardin’s idea for an emergency, national federal milk order hearing to shift the fmmo Class I base formula back to the “old” system will not fly, politically.

GHG Solutions for Dairy Needn’t be Big, Complex (p. 10): Composting. Grazing. Green-chopping forages. Dairy farms’ efforts to reduce greenhouse gas output need not be focused on “big systems” like methane digesters.

Long Look at Milk Hauling in January issue … (p. 10): Next month, we’ll look long and hard at milk transportation challenges.

Will Wisconsin’s School for Beginning Dairy Farmers Be Closed? (p. 11): Jan Shepel reports how the University of Wisconsin-Madison is cutting back on dairy production education programs.

Calif. Dairies, Inc. Buys Out DairyAmerica Partners (p. 12): CDI is now sole owner of DairyAmerica, the dairy protein powder marketing agency in common. Former partners Agri-Mark and O-AT-KA Milk Producers were bought out.

Hiland Dairy Refutes Story about Hydrogenated Vegetable Oil (p. 12): Hiland Dairy refuted a story tha appeared in the November 2022 issue. Hiland Dairy asserts that hydrogenated vegetable oil is a legal stabilizer in Heavy Whipping Cream.

Studies vary on GHG’s Durations in Earth’s Atmosphere (p. 12): Jan Shepel wades through the sometimes contradictory numbers regarding GHG’s life in the atmosphere.

November 2022 – Issue No. 520

Inside this month’s issue …

OUR STORY OF THE MONTH (Click the blue title below to read "the complete story"):

Mississippi River Waterway Crippled by Drought–Induced Low Water Levels

Butter Price Declines, Cheddar Down Slightly (p. 1): Butter prices toppled sharply during October 31-November 2. Generally speaking, that decline was a seasonal signal that commitments to fill retailers’ butter needs had been met. However, that 530-cent/lb. drop in those three days was an overreaction. Prices have since bounced back somewhat.

Geopolitics & Weather Shaking Global Grain Trade (p. 1): Contradictory statements by Russians about whether that nation was continuing to allow grain shipments of from Ukraine have whipsawed global grain markets. Weather events are already providing enough stress for grain-hungry world markets.

Consumer Reports: “Some Really Good News About Cheese” (p. 2): The nation’s leading consumers’ magazine, in its November 2022 issue, had a long article extolling the benefits of cheese! Wow!

Oct. ’22 Class III Price Climbs $1.99/Cwt., to $21.81 (p. 2): For October, the cheese milk price regulated by USDA’s milk order program rose $1.99/cwt. above September’s Class III value.

AFBF FMMO Meeting in KC: Progress … or Not? (p. 3): At the American Farm Bureau’s special meeting in mid-October, attendees came away with a bundle of agreed-upon policy changes for the federal milk marketing order program. But some major issues were avoided.

The “Big Boys” DO NOT Want to Discuss … (p. 3): Perhaps the most egregious inequity of federal milk orders is varying depooling rules. In some regions, handlers may decide whether they’re in or out, in a given month. Those “in and out” practices drain money from dairy producers’ milk checks.

Agri-Mark’s Board Boosted Deducts by $1/Cwt., Effective July 1 (p. 3): In late June, Agri-Mark co-op’s directors approved additional deductions from members’ milk checks totaling just over $1.00/cwt., for milk deliveries starting July 1.

The Northeast Dairy Antitrust “Tar Baby” – Round #3 (p. 4): Pete Hardin compares the latest events in Northeast dairy antitrust litigation to a never-ending boxing match with a “tar baby.” DFA has counter-sued the Plaintiff in the latest Complaint filed against DFA in the Northeast.

Quoting from the Allen Settlement (p. 4): We quote from the relevant passages in the Allen case – the first Northeast dairy antitrust battle.

Mississippi River Waterway Crippled by Drought–Induced Low Water Levels (p. 6-7): Jan Shepel has written an extraordinary, fact-filled overview of the logistical problems of the extended Mississippi River basin due to low water levels. Our “Story of the Month.”

Low River Levels Snag Barges’ Critical Fertilizer Backhauls (p. 8): Paris Reidhead covers the fertilizer supply situation facing farmers in the extended Mississippi River basin, due to the slowdown of barge traffic on our heartland river system

Dairy Commodities‘ Prices All Softening from Earlier Peaks (p. 9): Declining butter pries have been in the spotlight the past couple weeks. Cheddar pries have declined modesty. Nonfat dry milk prices are being pulled down by diminished export opportunities.

Emergency hearing needed for Class I base issue (p. 10): In Pete Hardin’s opinion, reverting the Class I formula in federal milk orders merits an emergency hearing. Without this subject being addressed on an emergency administrative basis, the prolonged process could take two to three years. That’s too long for dairy producers to continue losing money to the “New” formula that has turned out to be a political fiasco that’s drained over $900 million from dairy farmers’ revenue since mid-2020.

Who will feed the Ukrainian people this winter? (p. 10): Good question Our sources know of no moves by the United States government to address that question at this time.

Inflation: Sources (plural) and “remedies” (p. 10): Current inflation does not entirely fit into “classic” definitions of inflation. Thus, Pete Hardin suggests that “classic” solutions are not exactly appropriate.

Retail Scanner Data: Most Dairy Categories Below Year-Ago (p. 11): We print and analyze retail scanner sales data for major dairy products, by quarter, for the past few years.

Kroger Moves to By Albertsons: #1 & #2 U.S. Grocery Chains to Marry? (p. 11): Kroger has proposed to purchase Albertson’s – a potential marriage of the nation’s two largest grocery chains.

Hiland Dairy Selling Adulterated, Misbranded Heavy Whipping Cream (p. 12): Hiland Dairy – a joint venture owned by Prairie Farms and Dairy Farmers of America, Inc. – is illegally selling Heavy Whipping Cream that contains hydrogenated vegetable oil. That ingredient is not a legal ingredient for Heavy Whipping Cream, according to the FDA’s standards of identity.

FDA’s Definitions of Adulteration and Misbranded (p. 12): We report the FDA definitions for “adulteration” and “misbranded” food products.

October 2022 – Issue No. 519

Inside this month’s issue …

OUR STORY OF THE MONTH (Click the blue title below to read "the complete story"):

Climate Change, Drought & Global Food Insecurity

Ukraine War Again Sparks Explosive Grain Trading (p. 10): Recent events in Ukraine quickly spiked global wheat prices, dairy farmer/ag writer Jan Shepel explains.

Dairy Faces Many Questions and Challenges (p. 1): Long-festering problems are now complicated by fast-emerging headaches for the U.S. dairy industry. Grain costs? Energy costs? The economy?

2021’s Fluid Milk Sales Declined $5 in U.S. (p. 2): Fluid milk sales in the United States took a thrashing last year, unfortunately. Some 35-cents per hundredweight of promotion funds are generated by each 100 lbs of milk processed into fluid. What good is that doing?

21’s U.S. Cheese Consumption: ¾ lb./Week! (p. 2): The good news: U.S. per capita cheese consumption hit a new peak last year, topping 39 lbs. annually.

Sept. ’22: All Manufacturing Milk Class Prices Ease Back (p. 2): All manufacturing milk price Classes slid back modestly in September, compared to August’s prices.

Foremost Farms Members Smacked with 90-Cent/Cwt. Assessments(s) (p. 3): Ouch. Foremost Farms has hit its members’ milk checks with a big assessment starting with September milk deliveries: 90-cents per cwt. No word how long that assessment will last.

CoBank Pushed Low Equity Co-ops’ Deducts (p.3):   The cooperative’s banker is pulling the emergency cord, pressuring low-equity dairy co-ops to deduct funds from members’ milk checks. Why? Rising interest rates threaten the stability of low-equity dairy co-ops.

DFA Again Blocks NMPF Proposal to Raise “Make-Allowances” (p. 4): On October 5, for the third time in three months, DFA blocked a proposal by the National Milk Producers Federation to raise manufacturing Class make-allowances in the federal milk order program. Other NMPF members are spitting mad at DFA.

SMI’s Condensing Plant Shutdown to Short Customers in SE and Abroad (p.4): Close to the end of the year, Southeast Milk, Inc. will lose its condensing facility in Georgia. That means both domestic and foreign buyers of products from that plant must seek alternatives.

NMPF Committee: Restore “Old” Class I Formula (p. 4): Good news? On Oct. 5, a NMPF committee approved bringing back the “old” Class I (fluid) milk formula base: the “higher of” either the advance Class III or Class IV prices.

High Butter & Cheese Prices Bode Well for Jersey Cattle & Their Genetics (p.5): Jan Shepel covers how strong prices for butter and cheese, as well as high grain prices, are spurring greater interest in Jersey cattle and Jersey genetics.

Climate Change Drought & Global Food Insecurity (p. 6-7): Paris Reidhead takes a global perspective on adverse weather events – mostly severe droughts – that are challenging the world’s food production.

Current By-Products Prices with American Agco’s Sean Laschinger (p. 8): We interview Sean Lacschinger about current by-products’ costs and background factors. Sean has a 25-year career with American Agco selling by-products.

Sky-High Butter Prices Hold; Barrel Cheddar Gains; NFDM Struggles (p. 9): Pete Hardin reviews the current dairy commodity price scene and marketing climate.

$2.8 billion for “Climate Smart Commodities” (p.10): In September, USDA announced a total of $2.8 billion in grants for “Climate Smart Commodities.” Dairy nabbed about $245 million from that package.

FMMO Cheese pricing is Highly Destabilizing (p. 10): The current federal milk order program is causing most cheese plants pooled on the milk orders to bleed red ink.

Agri-Mark’s Future??? (p. 10): Agri-Mark Co-op is in dire straits, having dismissed a large contingent of top managers.   What’s best? The Milkweed speculates that a merger with Upstate-Niagara Co-op would best serve the interests of Agri-Mark’s members.

Simple Tool: Fatty Acid Chains in Milk Can Measure Cows’ Methane Emissions (p. 11): Interesting technology! A French firm – ITK – has a patented system that profiles the fatty acids content of milk to measure dairy cows’ methane emissions.

Beyond Meat’s COO Arrested for Allegedly Biting Man’s Nose (p. 11): Hard to believe, but true.

Dairy /Pork Check-offs Push Anonymous Persons to “Rat Out” Farmers (p. 12):   At World Dairy Expo, the F.A.R.M. booth was distributing posters that urged persons who “witnessed or suspected” animal abuse to anonymously call a “hot line” and report possible offenses. What a use of dairy and pork producers’ promotion check-off funds.

September 2022 – Issue No. 518

Inside this month’s issue …

OUR STORY OF THE MONTH (Click the blue title below to read "the complete story"):

The Northeast Dairy Dilemma: Solutions for Concentration in a Vertically Integrated Market

Dairy Commodities: Butter Tops All-Time Peak, Cheddar & NFDM Rise (p. 1): Around Labor Day, industry-wide realization that farm milk supplies are tight sparked a price surge for all dairy commodities except whey.

Soybean Prices Skyrocket After Sept. 12 USDA Crop Report (p. 1): Dairy farmer/journalist Jan Shepel analyzes the current grain marketing scene, following the monthly September 12 USDA Crop Report. Soybean prices spiked following that report.

Some Kraft Heinz & Chobani Consumer Products’ Price Points Over the Top (p. 2): Food inflation is real. But it looks like certain major food corporations are getting a bit carried away in their retail price hikes.

CME Butter Prices Hit All-Time Price Peak. More Ahead? (p. 2): On September 13, CME prices for Grade AA butter hit an all-time peak: $3.24 per pound.

Aug. Class III & Class IV Prices Decline, Class II Up a Bit (p. 2): Class III milk fell by $2.42/lb. from the August level. Class II (cultured products) rose by 25-cents, to $26.91. And Class IV declined to $24.81.

Southeast Milk Supply & Sales Situation: Tenuous in Mid-September (p. 3): Milk supplies are very tight in the Southeast. Major procurers are scrambling to pirate others’ producers. The only “good news” – fluid milk sales are down, somewhat easing that region’s supply-demand crunch.

Some WI Schools Still Searching for Half-Pint Milk Vendors (p.4): Hard to believe, but some schools in central Wisconsin were lacking school milk suppliers as schools opened around Labor Day.

“Butter-Cheddar Split” – Latest Headache for Private Cheese Plants (p. 4): The price “split” between Grade AA butter and block/barrel Cheddar traded at the Chicago Mercantile Exchange is around $1.20/lb. That wide spread is posing a headache for cheese plants, which cannot recover all the value that high butter prices are putting into the Class III formula in USDA’s federal milk order system. That problem leaves farmers wondering why they cannot receive higher prices.

DFA Won’t Support Raising FMMO “Make Allowances” (p. 4): The nation’s largest milk producers’ cooperative has succeeded in irking virtually all other co-ops by DFA’s refusal to support proposed increases in the “make allowance” for manufacturing plants in the federal milk order system. Why? That’s a good question.

Oat Milk & Specialty Products Recalled for Contamination Concerns (p. 5): Possible contamination in a wide variety of food products – including Oatly oat beverage – resulted in massive voluntary recalls. How did cattle gut bacteria get into plant-based products such as Oatly?

Borden Takes Down “For Sale” Signs at Remaining Fluid Milk Plants … For Now (p. 5): Very recently, Borden announced that its four remaining milk plants were for sale. Just as suddenly, Borden pulled up those “For Sale” signs. Why?

DMI Executives’ Pensions & Benefits Scandal is Long-Running (p. 6): We review historic abuses of pensions and other benefits enjoyed by executives at Dairy Management, Inc. What a rip-off of dairy farmers’ milk promotion check-off funds!

The Northeast Dairy Dilemma: Solutions for Concentration in a Vertically Integrated Market (pages 7-10): This article is linked to Pete Hardin’s presentation at the Yale University conference on concentration in the food industry, which was held in March. Hardin and co-author Zach Shelley analyze that Dairy Farmers of America holds roughly an 85% market share for processed “conventional” milk that’s distributed in New England, New Jersey, New York City, Long Island, and the Hudson Valley. The authors propose several solutions to defang DFA’s stranglehold on the Northeast fluid milk business.

Lowville, NY: Epicenter of Northeast Dairy Marketing Dysfunction (p. 11): Where Kraft Heinz reigns, dairy farmers are screwed. Welcome to Lowville, New York – home of some of the dirtiest dealing in the nation’s dairy industry.

Vil$ack Enjoyed Tenure as USDEC CEO (p. 11): We reprint Tom Vil4ack’s total annual compensation as CEO of the United States Dairy Export Council for the years 2017-2019. (Average: $877,629.)

Accountant’s Analysis: Michigan Has "2nd Lowest” Mil Prices in U.S. (p. 12): We cite recent analysis by accountant Joe Arens, who digs into low milk prices received by Michigan dairy producers. Michigan trails only New Mexico as the low-ball milk price state.

Agri-Mark CEO Dumped (p. 12): Adios!

Severe Food Crisis Looms (Don’t tell anybody) (p. 14): Pete Hardin projects that the world is about to see the worst hunger and food shortages in many decades.

“Dirty Green" – Dairy and The Inflation Reduction Act (p. 14): Federal subsidies and tax credits for “dirty” practices are part of the environmental rewards contained in the recently passed Inflation Reduction Act.

Human Safety Questions Re: Genetically-Engineered Dairy Substitutes (p. 15): Gene-altered bacteria producing a substance similar to cow’s milk? Cheese-like substances made from vats of :”precision-engineered” “stuff”? Biotech foods mimicking dairy have no requisite human safety tests.

Genetically-Engineered Foods Have ZERO Human Safety Testing (p. 15): Writer Richard Kahn reviews the technologies used to produce genetically-altered products that mimic dairy, as well as citing scientists’ concerns about inadequate human safety testing for those products.

Darigold Starts Digging for $600 Million Milk Powder Plant: Additional Debt to Equal about $2,000,000 Per Co-op Member (p. 16): Here’s one for the books! After virtually no news for eight months, Darigold co-op has started construction on a state-of-the-art, $600 million milk powder plant at Pasco, Washington. When completed, that project will dump debts totaling roughly $2,000,000 member on Darigold’s approximate 300 farmer-members.

Ukraine Nuclear Plant Poses Threat to All 00 Including Dairy (p 16): The world’s largest nuclear power plant is caught in the crosshairs of combatants in Ukraine. If a nuclear disaster were to occur there, it’d be bad news for everybody.

The Milkweed Files FOIA Re: DMI/UDIA Pension Bail-Out (p. 16): This publication has requested that USDA provide all documents related to the 2016 failure of the pension program covering employees of several dairy promotion groups. Some $22 million was borrowed by Dairy Management, Inc. to cover the pension failure. Why should dairy farmers’ milk promotion funds be used to bailout bloated pensions of executives?

August 2022 – Issue No. 517

Inside this month’s issue …

OUR STORIES OF THE MONTH (Click the blue title below to read "the complete story"):

Uncertainty Depresses Dairy Commodities’ Prices; Butter Remains Stable and
Geopolitics, Weather, U.S. Dollar’s Value Continue to Impact Grain Price and
Black-Mold Update at Borden-Select’s Franklin Park, IL Facilitys

Uncertainty Depresses Dairy Commodities’ Prices; Butter Remains Stable (p. 1): Dairy commodity prices have declined in recent weeks. Marketers are leery about adding too many inventories, if this nation is headed into an economic slowdown.

Geopolitics, Weather, U.S. Dollar’s Value Continue to Impact Grain Prices (1): Jan Shepel takes a wide focus on the global and national grain situation, with primary emphasis on events in Eastern Europe and weather in the United States.

Butter Prices High, Same for Cream “Multiples” (p. 2): Butter prices are near $3.00/lb. at the Chicago Mercantile Exchange. But that high price is just the starting point for food processors buying spot cream. “Multiples” for cream – i.e., markups over the butter price—are up to 1.5 in the East and Midwest.

July Class III Price Drops $1.81/Cwt., to $22.52 (p. 2): The July Class III (cheese) milk price drop signals a bigger decline that will hit for August, as cheese and whey prices have declined.

Southeast Mess: Borden Plant Closings, Impossibly Tight Milk Supplies (p. 3): Borden Dairy is dramatically exiting the dairy business. That firm has closed two plants in the Southeast, will close two more in that region soon, and has leased is remaining milk plants in Texas. These departures come on top of closing two plants in the Upper Midwest. All these evens have occurred within a relatively few months.

Borden Leases Texas Milk Plants to Hiland Dairy: No Fluid Milk Competition in Lone Star State (p. 3): Borden Dairy has leased its milk plants in Texas to Hiland Dairy – a joint venture owned by Prairie Farms and Dairy Farmers of America. The only other major competitor in fluid milk processing in Texas is DFA’s Dean Foods.

Stubborn Dutch: Holland’s Dairy Farmers Redefine the Term (p 4): Paris Reidhead details protests rising from Dutch farmers against their government’s proposals to control nitrogen by reducing livestock (and farmers).

Wisconsin Dairy Farmer Promotes Dairy at Local Agricultural Fair (p 5): Jan Shepel profiles Dane County dairy farmer Jim Koch’s long history of running a dairy concession stand at the Lodi Agricultural Fair. In four days in July, that stand sold $20,000 worth of grilled cheese sandwiches and ice cream. Proceeds go to local ag groups.

DFA Smacked with Another Northeast Antitrust Class Action Lawsuit (p. 6): Here they go again. Yet another –this is the third – Class Action lawsuit has been filed against Dairy Farmers of America in the Northeast. The allegations are the usual fare: Since May 2017, DFA has limited dairy farmers access to milk markets and underpaid them for their milk.

Hardin’s Yale Univ. Paper on Northeast Dairy Concentration Available (p 6): On March 12, Pete Hardin was a presenter at the Yale University conference on concentration in the food industry. Hardin detailed his analysis that one firm controlled 85% of conventional fluid milk processing in the Northeast. Hardin’s formal paper from that conference – co-authored by Yale law student Zachary Shelley – is now available at this paper’s website: www.themilkweed.com

2020-2022 Quarterly Data Show Dairy’s Up & Down Sales Trends (p. 7): The past two and a half years have been an up and down ride for retail dairy sales. We analyze quarterly supermarket sales data for nine dairy commodities, 2020 through 2022’s second half.

AFBF to Host FMMO Forum in Kansas City Oct. 14-16 (p. 7): The American Farm Bureau Federation is hosting an industry-wide forum on proposals to revise the federal milk orders. Bravo to AFBF!

The Milkweed’s Analysis of Latest Class Action Complaint vs. DFA (p. 7): We analyze the latest lawsuit against DFA in the Northeast.

Drought Challenging Food Production Across North American Continent (p. 8): The latest North American Drought Monitor map shows massive drought overreaching roughly 60% of the United States, perhaps 80-85% of Mexico, and reaching into key Canadian wheat-growing provinces.

Dairy Livestock Report: Mixed Results (p. 8): Cull prices are again rising. Heifer prices are holding their own, except for springers in some markets.

Championing dairy proteins & whole milk (p. 10): Pete Hardin looks at what he views as dairy’s two best promotion efforts: “The Inside Strong” promotion of milk proteins and the “97Milk” push to boost Whole milk sales. He then contrasts these progressive efforts with the incredible waste of dairy promotion resources by Dairy Management, Inc., the national dairy promotion overseer.

Is Putin “Gaming Grain & Oil Futures to Bankroll War vs. Ukraine? (p. 10): Pete Hardin theorizes that Russian dick-tator Vladimir Putin likely “gamed” grain and energy futures, taking positions that would boost returns to firms that bet on prices in advance of Russia’s invasion of Ukraine.

DMI Borrowed $22 Million to Bail Out Failed Pension Program (p. 11): Egad. Dairy Management, Inc. (DMI, aka “dummy”) had to borrow $22 million to cover employees’ pension losses. Why should dairy farmers’ milk promotion dollars bail out failed pension programs?

UW-Madison Dedicates Educational Fund in Name of Dr. Robert L. Bradley (p. 11): A fund has been established to further the education of food science students at the University of Wisconsin-Madison in the name of Dr. Robert L. Bradley – “Dr. Butter.”

Black-Mold Update at Borden-Select’s Franklin Park, IL Facility (p. 12): Less than a week after the July issue of this publication was mailed (showing black mold all over the facility), cleanup crew was power-washing the black mold from the Borden-Select milk depot at Franklin Park, Illinois. Apparently, the black mold infestation was deemed a health hazard to demolition workers scheduled to start knocking down the building soon.

High Sulfur Levels in DDGs Pose Health Threats to Cattle (p 12): Paris Reidhead warns livestock producers to be careful how much DDGs are in their animals’ rations. Too great a percentage of DDGs derived from ethanol production will lead to sulfur toxicity – a disabling and sometimes deadly livestock health affliction.

July 2022 – Issue No. 516

Inside this month’s issue …

OUR 3 STORIES OF THE MONTH (Click the blue title below to read "the complete story"):

Dairy in Early Summer Doldrums: Down? Sideways? Up? and
DGrain Trading on Corn Belt’s Volatile Weather and
Inside Borden-Select’s Black Mold-Infested Cold-Storage Locker

Dairy in Early Summer Doldrums: Down? Sideways? Up? (p. 1):
Pete Hardin attempts a “big picture” overview of dairy in a volatile world. A “Story of the Month.”

Grain Trading on Corn Belt’s Volatile Weather (p. 1):
Jan Shepel reviews the current U.S. grain situation.

UW’s Mark Stephenson Projects Second Half ’22 Milk Prices (p. 2):
Outgoing UW economist Mark Stephenson projects manufacturing Class milk prices in the mid-20s ($/cwt.) for the second half of ’22.

June Class III Price Drops; Class II and IV Climb (p 2):
June saw manufacturing Class milk prices in USDA’s milk orders go in two directions: Class II and Class IV prices rose, based on the strength of butter. But when prices pulled down the Class III (cheese) milk price.

U.S. Supreme Court Ends R-Calf’s Beef Checkoff Case (p. 3):
Challenges to the national beef checkoff were not reviewed by the U.S. Supreme Court.

Southeast’s Seasonal Spot Milk Needs Will be Strong (p. 3):
Declining milk production, combined with drought overspreading the region, mean the Southeast’s supplemental milk needs for late summer and fall will be substantial.

DFA’s Corporate Board Shows “Tricky Rick” the Egrees (p. 3):
DFA’s corporate board relieved CEO President Rick Smith six months earlier than Smith had intended.

Upper Midwest Superpools Seek Lower Class I Pooling Rules (p. 4):
Two marketing agencies have requested lowering Class I (fluid) milk shipping percentages to 4.5% in the Upper Midwest fluid milk order.

“The Strong Inside®” – Milk Proteins Positive Messaging Revs Up (p. 50):
Efforts to promote milk proteins’ positive values of by concerned dairy organizations are being amped up in 2022. This project shines the light of truth on many bogus claims coming from marketers of plant-based,0000 competing products.

Eastern NY Milk Hauling Situation Update … (p. 5):
Milk hauling in eastern New York State has been disrupted, by DFA’s taking over routes from GTI – a private milk transportation located in Amsterdam, NY. Most impacted producers have found alternate milk haulers.

Supply Chain Chaos Hits Upper Midwest’s Fluid Milk Business (p. 6):
Closing two fluid milk plants leaves a chaotic situation in the region. Some Wisconsin schools cannot find bidders for next year’s school milk contracts. And consumers at Piggly-Wiggly stores in Wisconsin saw a $1/gallon price increase during the week of June 20.

Early July: Borden-Select Closed Two Fluid Milk Plants (p. 7):
We dig deep into the behind-the-scenes actions leading to Borden-Select closing fluid milk processing at Chemung, Illinois and DePere, Wisconsin..

Long-Time Chicago-Area Distributors Evicted by Borden-Select (p. 8):
Two long-time dairy products distributors in the Chicago market had their leases cancelled on short notice by Borden-Select. One firm sold its business and the other downsized.

Roundup (Glyphosate) Suffers Two Major Legal Setbacks (p. 8):
Manufacturers of glyphosate-based herbicides have suffered two legal setbacks in the past month-plus. These issues relate to labeling issues relating to glyphosate’s potential carcinogenicity.

Butter Price Holds, Cheddar, Nonfat & Whey All Slipping (p. 9):
Our price review finds most dairy commodities’ prices falling backwards. The exception is butter.

Dirty Pictures? No Dirty dairy big-wigs! (p. 10):
The “dirty pictures” refer to the story on page 12 – black mold-infested walls and ceiling at the Borden-Select milk depot located behind the old Dean Foods corporate headquarters in Franklin Park, Illinois. The “dirty dairy big-wigs” are the owners of Borden-Select.

Amending last month’s comments re: lactoferrin (p. 11):
We follow up on last month’s brain-storming about the potential for a dairy-wide effort to collect lactoferrin – a milk-derived protein – that appears to have the ability to knock down coronaviruses. Some wise persons caution that such an idea is not practical. On the other hand, we see Glanbia Nutritionals investing over $100 million in firms that process bovine colostrum (a rich source of lactoferrin).

Gulf of Mexico’s Dead Zone: Failing Report Card for Upriver Farmers (p. 11): Paris Reidhead traces the massive “dead zone” in the Gulf of Mexico upriver to farming practices in the extended Mississippi River watershed.

DFA to Sell Empire Livestock (p 11):
Dairy Farmers of America is selling its six livestock auctions in New York State to a Pennsylvania-based slaughterhouse operator.

Inside Borden-Select’s Black Mold-Invested Cold Storage Locker (p. 12):
This story is the most disgusting article ever printed by The Milkweed.
Inside the Borden-Select milk depot at Franklin Park, Illinois, black mold infests the ceiling and walls – a complete violation of food premises sanitation. Gregg Engle$ leaves another mess in his wake.

June 2022 – Issue No. 515

Inside this month’s issue …

OUR STORIES OF THE MONTH (Click the blue title below to read "the complete story"):

U.S. Wheat & Corn Stressed, Global Grain Supply Crisis and
DFA Buys GTI – Eastern NY Milk Hauling Firm:
Non-Members Must Join DFA by July 1 … or Else

U.S. Wheat & Corn Stressed, Global Grain Supply Crisis (p. 1):

DFA Buys GTI – Eastern NY Milk Hauling Firm: Non-Members Must Join DFA by July 1 … or Else (p. 1)

Summer 2022: “Perfect Storm” Threatens Upper Midwest Milk Marketing Melt-Down (p. 2): Cheese plants are depooling from the Upper Midwest milk order, due to the whey formula’s too-high values. Uncertainty prevails over fluid milk plant closings’ impact on demand, utilization.

May Class II & Class III Prices Rise, Class IV Drops (p. 2): For May, USDA reported milk for cultured products and cheese processing increased, while butter-powder milk declined.

Chemung, IL Plant Closing Will “Short” Fluid Milk Supplies in Chicago Market (p. 3): What a mess. July 9 will mark the close of the Chemung, IL fluid milk plant. Retailers are scrambling to find alternate fluid milk suppliers. School milk bids may go unmet.

Future Scenario: Chicago Area Families Will Struggle to Find Milk for Children (p. 3): It’s predictable that some milk customers in the Chicago area will be unble to find packaged milk, once the Chemung, IL plant closes.

Operator of Closed Cheese Plant “Milked” PPP for $1.015 Million (p. 4): The principals of Maple Leaf Cheesemakers, Inc. received a $1.015 loan million from the federal Payroll Protection Program and closed cheese making at their plant a few months later. Six months after the plant closed, the entire amount was forgiven.

DFA Makes 2-Pronted Attack vs. Arkansas’ Class I Premium (p. 4): DFA is challenging Arkansas newly-instituted state milk premium on two fronts: in court and by hauling its Arkansas’ members milk out-of-state.

Northeast Crisis: Emergency Milk Dumping May 1 thru July 8 (p. 4): With numerous dairy plants down for maintenance, huge volumes of milk were dumped recently in the Northeast.
“Godfather of Dairy Nutrition – Dan Loper, Sr. – Revolutionized Dairy Feeding Through TMR (p, 5): Jan Shepel profiles Dan Loper, Sr., who pushed TMR feeding programs for dairy, starting in the 1970s. Great story!

Colostrum – Vitl for All Calves and Many Humans (p. 6): Paris Reidhead digs deeper into colostrum and its wondrous, life-spurring and nutritive values.

Walter Reed Army Hospital Research: Iron May be an Anti-Covid Weapon (p. 6): Interesting!

Freeburg Hay Business Built on High Quality, Attention to Customers’ Needs (p. 7): Jan Shepel profiles Freeburg Hay, LLC – operated by Gary and Amy Freeburg for 50 years, near Vermillion, South Dakota. They’ve focused on quality, dried hay and customer service.

Teamsters’ Union Pension Fund Seeks $25 Billion Taxpayer Bailout (p. 8): The Teamsters’ Union Central States Pension Fund is awaiting a $25 billion bailout from the federal government. Historically, that pension fund has been wildly abused.

Joint USDA/DOJ Website for Reporting Anticompetitive Practices in Agriculture (p. 8): Farmers who feel abused by anticompetitive events may directly contact a joint USDA/Department of Justicce information center.

Dairy Personnel in Transition … (p. 8): We profile several recent personnel changes in dairy.

Butter & NFDM Prices Strengthen, Cheddar Backslides (p. 9): Demand is starting to soften, despite challenges to global milk production.

Needed: “Manhattan Project” dairy industry effort to recover lactoferrin (p. 10): Pete Hardin urges dairy to engage in a massive effort to collect bovine colostrum and have qualified firms extract lactoferrin for use in human health applications.

FDA decision on dairy names’ use expected “soon” (p. 10): Coming “soon” … decisions by the Food and Drug Administration regarding use standardized dairy names by marketers of plant-based imitations.

Infant Formula Shortage’s Media Coverage Lacks Depth (p. 11): Richard Kahn, a Registered Dietician, takes issue with media coverage of the current infant formula shortages.

Kraft’s “Three Cheese Ranch Dressing” Ingredients List TWO Cheeses (p. 12): What? The ingredients panel on Kraft’s “Three Cheese Ranch Dressing” only lists TWO cheeses. Intentional or a mistake?

May 2022 – Issue No. 514

Inside this month’s issue …

OUR STORIES OF THE MONTH (Click the blue title below to read "the complete story"):

Shanghai Port Constipation May need Year to Unravel, If and When and
DFA's 2021 Financial Report: (Mostly) More of the Same Old "Stuff"

Global Grain Chaos Threatens Famine; Late Planting & Drought Challenge U.S. (p. 1): Dairy farmer/ag writer Jan Shepel provides a national and global update on the dangerously volatile grain situation.

U.S. Dairy Industry Adrift in Uncharted Waters (p. 1): Pete Hardin details the major challenges currently facing our industry.

Borden-Select Closing Chemung, IL Plant on July 9 (p. 2): One of the biggest fluid milk plants in the Chicago market will close July 9, That closing leaves the Upper Midwest with even less competition among fluid milk processors.

Spring Peak! All April Manufacturing Milk Classes Climb (p. 2): Take a good look. From April’s peak, dairy commodity and farm milk prices are headed down for a while.

Shanghai Port Constipation May Need Year to Unravel, IF and WHEN … (p. 3): One of our “Story of the Month.”

DFA’s 2021 Financial Report: (Mostly) More of the Same Old “Stuff (p. 3): Another “Story of the Month.”

Moody’s: DFA Members Milk Checks Subordinate to Debt; Preferred Equity Securities: are 50% det/50% Asset (p. 3): Another “Story of the Month.”

Can Milk Proteins Help Fight Covid-19? (p. 4): Paris Reidhead digs deep into the science behind a recent report in the Journal of Dairy Science that noted lactoferrin – a milk protein – disables the coronavirus. Interesting!

Late April Sea Surface Temperatures Mean Worse Heat/Drought for Western U.S. (p. 5): Meteorologist Jon Davis reported on how Sea Surface Temperatures (SSTs) will influence coming months’ weather events in the U.S. and globally.

ADPI/ABI Joint Convention Offered Wealth of Critical Dairy Info (p. 6): We note the value of the recent American Dairy Products Institute/American Butter Institute joint convention in late April in Chicago. In this issue, we reproduct and summarize PowerPoint panels from several presenters at that meeting.

Some WI Cheese Plants De-pooling Class III Milk to Lower From Milk Costs (p. 8): In recent months, some Wisconsin cheese plants are de-pooling Class III milk from the federal milk order. Why? To hold down raw milk costs. We explore some of the reasons behind this strategy.

Dairy Livestock Prices Strong at MI, OH Auctions (p. 8): Prices for #1 Holstein springers have pushed past the $2,000/head mark. Available female dairy animals of all ages are scarce and increasingly expensive.

USDA’s ’21 Mailbox Price Data Proves SW Class Action Complaints (p. 8): Recently released “mailbox” milk prices for 20 different areas of the country showed the only two regions with lower farm milk prices in 2021 (compared to ’20) were West Texas and New Mexico. That’s exactly the area covered by a recent Class Action lawsuit filed against DFA and Select Milk Producers. That Complaint alleges unduly low milk prices paid to members of those cooperatives in West Texas and New Mexico.

Dairy Commodity Prices Start Backsliding, Amid Global Shipping Crisis (p. 9): Prices for all global dairy commodities are
Slipping backwards from earlier, astronomical peaks. Global milk supplies are tight. But shipping headaches resulting from shutting down China’s biggest port city – Shanghai – are harming flow of exports to customers.

FMMOs future … deregulate manufacturing milk? (p. 10): Pete Hardin reviews questions about federal regulation of manufacturing milk Classes in the federal milk order program. Conclusion: Between co-op’s reblending members’ milk income and other plants depooling Class III and Class IV, we’re just about at a deregulation situation.

Closer Look at DFA’s Financial Report (p. 10): Pete Hardin digs deep into DFA’s latest financial audit. 1) Despite statements from management and the accounting firm that DFA’s 2021 audit conforms to U.S. Generally Accepted Accounting Principles, that is not completely the case. 2) DFA made nearly $100 million in member milk income disappear. How so? DFA’s average price paid to members in 2021 fell about 15cents below the nation’s average “mailbox price” increase for last year.

$55 Million Class Action Settlement vs. Failed DeLaval Robotic Milkers (p. 11): DeLaval – a long-time fixture in milking equipment – recently settled a Class Action lawsuit by dairy farmers for a whopping $55 million. At issue: a faulty robotic milking system made and sold by DeLaval – the VMS Classic model.

Resource Scarcity: Troubling New Reality for Agriculture (p. 11): For decades, U.S. agriculture has pretty much taken for granted that adequate resources would be available to plant, harvest and market farm products. No longer!

“MOVE OVER BUTTER” – Multiple Violations of Wisconsin Law (p. 12): Citing Wisconsin ag department statute 100.36, we explain how Conagra’s “MOVE OVER BUTTER” is multiple violations of butter labeling law in “America’s Dairyland.” Will the state agriculture department do anything???

Southeast Milk Declines in ’21 Presage Regional Scarcity (p. 12): In 2021, most states in the Southeast saw milk production fall sharply backwards. The Southeast is in danger of becoming an even greater “milk-deficit region” for its fluid milk processors’ needs.

April 2022 – Issue No. 513

Inside this month’s issue …

OUR STORIES OF THE MONTH (Click the blue title below to read "the complete story"):

California Water Crisis Dramatically Worsens in Past Month and
Strong Milk Prices Through All of 2023

California Water Crisis Dramatically Worsens in Past Month (p. 1): We analyze California’s latest water data. As of early April, the mountain snowpack lost nearly half its water content in the past month. And the state’s top 17 reservoirs gained more water. (A Story of the Month.)

Strong Milk Prices Through All of 2023 (p. 1): Economist Dr. Corey Freijie projects manufacturing Class milk prices should remain strong for the next two years. (A Story of the Month.)

Troubling Dairy Retail Sales Volumes for 2022’s First Quarter (p. 2): Except for cream, all major dairy categories faced lower retail sales volumes during 2022’s first quarter. Troubling.

HP Hood Plants Cyber-Hacked in Early March (p. 2): Dairy and plant beverage processor HP Hood’s computer systems were hacked in early March. That caused a shutdown of Hood’s many dairy plants in the U.S. In the Northeast, large volumes of milk were dumped.

March ’22 Manufacturing Milk Class Prices Increase (p. 2): All manufacturing Classes of milk saw price increases during March 2022. Class IV (butter-powder) continues to lead Class II and Class III.

More Soybean Acres, Fewer Corn Acres in 2022 (p. 3): Dairy woman/farm writer Jan Shepel analyzes the numbers following USDA’s March 31 planting intentions report. The headline summarizes those numbers.

Grain Markets Trading on “Bullish Trifecta” (p. 3): Jan Shepel details how grain traders took the early April WASDE report from USDA and then turned into bulls, driving up corn, soybean and wheat prices.

Feb. NZ Milk Output Falls Off Table: Down 8.2% (p. 3): New Zealand’s tough dairy production season started off on a slow foot and has gone downhill from there. February ’22 milk output fell 8.2% below the same-month, year-ago total.

DFA Trying to Sandbag Arkansas’ Class I Payments Rules (p. 4): Arkansas’ Farm Bureau and state legislators have worked hard for two years to establish a program to boost milk prices for the few remaining dairy farmers. The Arkansas Milk Stabilization Board proposes that the Class I fmmo price be paid to Arkansas producers for milk produced, processed, and marketed in the state. DFA is fighting this proposal.

Arkansas’ Declining Milk Supply Reflects Wider Southeast Reality (p. 4): The Southeast is a dramatic fluid milk deficit region. Local dairy co-ops have failed to boost producers’ milk prices and reduce marketing costs. The battle in Arkansas to establish a state Class I premium is being closely watcyed by other states in the region.

Fertilizer Commodity Cost Increases Slowing? (p. 4): Paris Reidhead reports that some nitrogen-based fertilizer prices have started to come down, price-wise.

Grand Larceny in the Golden State: De-polling Class IV Milk (p. 5): Pete Hardin shows how de-pooling butter-powder milk in January-February 2022 caused an average of about $300 million dollars to disappear from the California federal milk order’s revenue pool EACH OF THOSE MONTHS!

California January-February 2019-2022 Class IV/IV Data: “De-pooling” is SOP*, Producers are SOL** (p. 5): For the past four years, January & February have featured massive de-pooling in the California federal milk order – sometimes Class III (cheese) milk and sometimes Class IV (butter-powder)/. Net impact: Hundreds of millions of dollars disappear from farmers’ milk checks.

Class III De-pooling Made “Negative PPDs” wore in Order 51 (p. 5): From September 2019, we list the many months -- plus those months’ specific “negative PPDs” -- during which Class III (cheese) milk was de-pooled from the California federal milk order. Want an example why California dairy producers are seeing red? In both July and November 2020, the “negative PPDs” were $9.82 and $9.85 per hundredweight, respectively.

Major Lawsuit Filed vs. DFA & Select Milk Producers in Southwest (p. 6): Present and former DFA members have filed a Class Action lawsuit in New Mexico, charging that DFA and co-Defendant Select Milk Producers underpaid farmers’ milk incomes. The Complaint documents how New Mexico dairy farmers have received $2.00 to nearly $4.00/cwt. below the prevailing federal milk order pride for the past 16+ years.

Al Capone’s Insights on Milk (p. 6): We share noted entrepreneur Al Capone’s thoughts on milk, as reported by the Illinois History Journal. Capone said there was a bigger markup in milk than booze. Any resemblance to behaviors by Capone and modern dairy leaders is purely lamentable.

Q&A with Kevin Ellis – CEO, Cayuga Milk Ingredients (p. 7): The CEO of New York State’s Cayuga Milk Ingredients answers wide-ranging questions about his firm, the dairy protein powders sector, and federal milk orders.

Buckwheat: Ancient Crop with Modern Benefits (p. 9): Paris Reidhead extolls the many merits of buckwheat, an ancient crop with decided attributes for modern cropping challenges.

Commodity Prices: Cheddar & Butter Climb, NFDM Flat (p. 9): Pete Hardin’s monthly dairy commodity review finds Cheddar prices have shown good gains in recent weeks. Global dairy supply/demand is tight.

Protein. Protein … and more Protein. (p. 10): Pete Hardin argues that dairy is failing to promote its greatest attribute: the nutritional value of reasonably priced, readily available complete protein. We see pet foods advertising protein content more than dairy products!

Buyers pushing prices for scarce dairy livestock (p. 10): Fast-rising farm milk prices are rapidly boosting dairy livestock prices. Female dairy animals – from calves to springing heifers – are scarce.

Yale Law conference video available soon on-line (p. 10): Videos of presenters at the March 12, 2022 conference on food antitrust that was hosted by the Yale University Law School is available on line. Pete Hardin was one of the presenters. After about April 20, you can find an icon on The Milkweed’s home page that will connect you to the videos.

Manure Starch Testing: 2021’s Corn Harder for Cows to Digest (p. 11): Jan Shepel reports on an emerging dairy cow metabolism problem: starch from 2021’s corn crop does not seem to be as digestible as normal. WI & NY Ag Departments Taking No Action Re: Treeline “Dairy-Free Cheddar Cheese (p. 11): Despite formal complaints to the above-cited state agriculture departments, no action has been taken against the marketer of “Treeline Dairy-Free Cheddar Cheese.” That firm’s use of the phrase “Cheddar Cheese” violates FDA’s Standards of Identity for Cheddar.

Dueling Dairy Price Forecasts: Ordser30 & Rabobank (p. 12): We contras the future milk price projections from the Upper Midwest milk order economist with those of Rabobank’s dairy team. A huge difference!

March 2022 – Issue 512 – Issue No. 512

Inside this month’s issue …

OUR STORIES OF THE MONTH (Click the blue title below to read "the complete story"):

War in Ukraine Ignites Historic Grain Trading and
Calfoorinia's Manufactured Products Output Nose-Dived in January

War in Ukraine Ignites Historic Grain Trading (p. 1): Jan Shepel reports on events in the fast-moving grain industry. A “Story of the Month.”

Dairy Farming Dos and DO NOTs in these Crazy Times (p. 1): We offer “DO” and “DO NOT” strategic suggestions for mucking through these creazy times of higher prices, higher costs, and certain scarce inputs. Must reading.

United States: Arsenal of (Food) Democracy –202-202? (p. 2): As in World War II, U.S. farmers will again be called upon to help feed persons in Europe who have been dislocated by war.

PMVAP Funds go to Handlers, Producers Receiving Checks (p. 2): Dairy farmers have started receiving checks from their handlers for income losses that occurred in July-December 2020, due to changes in USDA’s Class I (fluid) milk price formula.

California’s Manufactured Products Output Nose-Dived in January (p. 3): Big declines in January ’22 production of cheese, nonfat dry milk, and butter create a puzzle: How much did California’s milk production really drop that month? A “Story of the Month.”

March 1: Global Prices Spike at Fonterra’s GDT Auction (p. 3): Numerous dairy commodity prices hit all-time peaks in Fonterra’s Global Dairy Trade auction held on March 1.

Land-Spreading Milk: A Soil Health & Fertility Insurance Premium (p. 4): Writer/crops consultant Paris Reidhead reports on the amazing benefits of land-spreading milk as a beneficial fertilizer.

Waunakee, WI Dairy Farmer Stresses Value of Manure Composting (p. 5): Jan Shepel writes about the documented benefits enjoyed by a Wisconsin dairy farm that composts its manure.

Calcium Fortification of Soy Milk: Bio-Availability? (p. 6-7): Richard Kahn, a registered dietician, discusses research and background information about the actual availability of calcium supplement sin soy milk.

Drought Covers About Two-Third of Lower 48 States (p. 7): Drought plagues virtually the entire American west and Plains, pushing up into Iowa, parts of Illinois, and much of Wisconsin. The water content of California’s mountain snowpack was 63% of normal, as of March 1. California’s top 17 reservoirs were 27% below normal capacity as of that same date.

Conflict in Eastern Europe Will Push Up Dairy Commodity Prices (p. 8): What seem to be already “high” dairy commodity prices will only get higher. U.S. Cheddar in early March trailed NZ prices by about 60-80-cents per pound. And the U.S. will have to help feed refugees from the war in Ukraine.

Higher Beef & Milk Prices Pushing Up Dairy Livestock Values (p. 9): We estimate that #1 Holstein springers have climbed $400-$500 head during the past three months. Cull cow prices are spiking, pulling up values for most younger dairy animals.

Fat Wisconsin Holstein Cull Cow Nets $1,800 (p. 9): Why is dairy farmer Adam Faust of Chilton, Wisconsin smiling? Just read the headline.

Deconstructing the Northeast fluid milk monster (p. 10): Pete Hardin summarizes his upcoming, March 10 presentation at Yale University Law School conference on concentration in the Northeast fluid milk industry.

Fraud at the dairy case in America’s Dairyland (p. 10): UW-Madison emeritus Food Science professor Dr. Robert Bradley and Pete Hardin recently appeared before the advisory committee of Wisconsin’s Department of Agriculture, Trade and Consumer Protection. They detailed illegal butter and cheese prodsucts being sold at supermarkets in “America’s Dairyland” and criticized DATCP’s Food Safety Division for its failure to enforce the laws.

Good Questions for DFA’s Annual Meeting (p. 11): A couple samples: What is DFA’s management’s plan for reducing high marketing costs deductions from members’ milk checks? How much is outgoing CEO “Tricky Rick” Smith’s severance package? (Hinr: Aeouns $100 million.)

Kingston Cheese Cooperative Emerges from Pademic with New Vibrancy (p. 11): Jan Shepel describes how an Amish dairy cooperaetive in Wisconsin

“Bum of the Month – Fraudulent Dairy Products: “Treeline Dairy-Free Cheddar Cheese and Mozzarella Cheese” (p. 12).

February 2022 – Issue No. 511

Inside this month’s issue …

OUR STORY OF THE MONTH (Click the blue title below to read "the complete story"):

Cheddar Prices Moving in Opposite Directions: NZ (Up), CME (Down) and
Possible War, LA Nina & Short Stocks Propel Grain Markets

Cheddar Prices Moving in Opposite Directions: NZ (Up), CME (Down) (p. 1): During January’s second half, block Cheddar prices continued rising in New Zealand. But at the Chicago Mercantile Exchange (CME), block Cheddar prices declined. SEE STORY OF THE MONTH.

Possible War, La Nina & Short Stocks Propen Grain Markets (p. 1): Dairy farmer-ag journalist Jan Shepel reviews current, red-hot grain markets. SEE STORY OF THE MONTH.

Yale to Hold Conference on Concentration Issues in the Grocery Story (p. 2): Yale University’s Law School is holdidng a conference on centration in the food industry, as it impacts retailers.

Watch for January Class IV Depooling, Especially in California (p. 2): For Jan. ’22, the Class IV (butter-powder) price will be higher than the Class IV (fluid) milk prices in the federal milk marketing orders system. That leaves the door open for handlers of Class IV milk to “depool” that milk from FMMOs … and use the money at their discretion. Watch out for Class IV depooling to occur in California.

Infant Formula Supply-Chain Running Hand-to-Mouth (p. 2): Parents of infants are finding restricted supplies of infant formula at stores. About half of all infant formula sold in the U.S. is produced abroad – subject to global supply-chain woes.

Big Jumps for Jan. ’22 Manufacturing Milk Prices (p. 2): Fast-rising dairy commodity prices during recent weeks propelled manufacturing Class milk prices in USDA’s federal milk order program for January ’22.

Feb. 8: No PVMAP Details (p. 3): At press time, USDA was unable to provide specific details about when funds for the Pandemic Market Volatility Assistance Program would be issued to milk handlers, for transfer to dairy producers whose milk was priced by federal milk orders during July-December 2020. Once handlers receive the funds, they are obligated to pay producers within 30 days.

Antitrust Lawyers Go Big-Game Hunting: Deere in Their Cross-Hairs (p. 4): A Class Action lawsuit was filed on January 12, 2022 against Deere & Co., the nation’s largest farm machinery manufacturer. At issue: allegations that Defendant Deere has unduly profited by denying purchasers of its product access to computer codes that would allow owners and independent equipment repair shops to conduct certain repairs. Triple damages are sought.

Prairie Farms’ Audit Reports Good Year, but Questions Loom (p. 4): The Milkweed reviews Prairie Farms’ 9/30/21 financial report. Prairie Farms faces some tough choices: How to secure an adequate milk supply for its expanded empire of dairy processing plants?

Beef Producers’ Margins Look Better; Retail Prices Climbing (p. 5): Jan Shepel reviews in-depth the recent presentation by Brenda Boetel, UW-River Falls chair of the Agricultural Economics Department. Boetel provided a wide-ranging overview of beef industry trends, as well as other sectors in the meat industry.

UW-Madison’s Mark Stephenson: Good Milk Prices Ahead (p. 6): Jan Shepel reports on the dairy industry survey provided by UW-Madison economist Mark Stephenson. He forecasts strong milk prices in 2022.

Vil$ack’s $10 Million “Fake Meat” Research Grant: Replace Fetal Calf Blood as Growth Medium inVats (p. 7): The Milkweed has received preliminary documents from a Freedom of Information Act request that probes the $10 million grant from USDA to Tufts University. That grant is for researching a alternate growth medium for “lab-cultured meat.” The documents acknowledge that current reliance on “fetal calf serum (blood drained from calf fetuses yanked from their mothers’ wombs at slaughterhouses) is neither economically feasible nor socially acceptable. Why should taxpayers pay for the “fake meat” industry’s problems?

Friday: “Vegan School Meal Days” in NYC (p. 7): Eric Adams, New York City’s recently installed mayor, is foisting his dietary preferences on that city’s public school children. Where’s the adequate protein in those Friday meals?

Moody’s Analysis of DFA: Members’ Milk Checks Pledged (p. 8): Moody’s Investors Service provided its most recent financial review of Dairy Farmers of America. Among other things, Moody’s reports that DFA’s members’ milk checks are subordinated to cover the co-op’s debts..

MD/VA Co-op Poised to Add Producers Cut Loose by Readington Farms (P. 8): The 150 (or so) dairy producers that were selling their milk to Readington Farms (NJ) will likely shift to become members of the Maryland & Virginia Milk Producers Cooperative Assn. Plans had been to shang-hai those independent producers into DFA’s clutches.

Nonfat & Whey Prices Stronger; Cheddar & Butter Decline (p. 9): Pete Hardin reviews recent events in the dairy commodity sector.

Grain/forage/fertilizer costs reviving “old” dairy farm success model (p. 10): Pete Hardin explains how “old fashioned” models of dairy farming success are back, starting with farms producing most of the feed for their livestock.

Vil$ack’s “apple” lands under the tree (p. 10): Jess Vil$ack is the corporate attorney for an Iowa-based corporation that proposes to build 2000 miles of pipelines across the Midwest and Upper Plains to transport carbon dioxide to North Dakota. At some location in North Dakota, the company will pump the carbon dioxide deep into the earth. Huge federal subsidies accompany this “carbon sequestration.” Guess whose dad oversees the federal agency involved with these carbon sequestration payments?

Global Fertilizer Crisis Begins Self-Correcting, Maybe (p. 11): Paris Reidhead surveys recent price shifts for fertilizers in the U.S., and details the cross-currents impacting global fertilizer supplies and costs.

Biden/Vil$ack: Convert Open Manure Pits to Methane Digesters (p. 12): One program in President Biden’s failed “Build Back Better” program was a program to put caps on open manure slurry storage facilities and then have federal taxpayers pay to build manure digesters next to those sites. Tom Vil$ack is up to his ears in the dirty money behind manure digesters – an environmental travesty.

“The Cure for High Prices is High Prices” (p. 12): We have a picture of Land O’ Lakes butter for sale at $6.99/lb. That’s $1.75 per quarter-pound stick. Any customers?

Agri-Mark Docks Checks (p. 12): Agri-Mark took an extra 35-cents per cwt. out of members’ payments for December 2021 milk. The co-op’s goal is $12 million in “profits” – thanks to draining members’ milk checks.

January 2022 – Issue No. 510

Inside this month’s issue …

OUR STORY OF THE MONTH (Click the blue title below to read "the complete story"):

Supplies Very Tight: CME Butter Prices Rocketing

Supplies Very Tight: CME Butter Prices Rocketing to the Moon (p.1): One “Story of the Month.” CME butter prices spiked 84-cents per pound from early December through January 11.

PVMAP Payments to Producers in February or March (p. 1): Eligible dairy producers will likely receive payments from their milk handlers for the PVMAP compensation from USDA in February or March.

Vil$ack: Brazilian Beef Import Ban Requests are “Politics, Not Science” (p. 2): USDA Secretary Tom Vil$ack has dismissed requests from many U.S. cattle producers groups to ban beef imports from Brazil. Vil$ack labeled those requests as “politics, not science.” Brazil has repeatedly failed to comply with nternational food safety rules to promptly report discovery of cattle infected with ”Mad Cow Disease.”

Ban Brazil’s Beef Imports? Politics or Science? R-CALF USA’s Bullard Counters Vil$ack’s Drivel (p 2): The CEO of the progressive cattle producers’ group – R-CALF USA – counter’s Vil$sack’s dismissal about requests for banning Brazil beef as “politics.”

Dec. Class IV Price ($19.88 Tops Class III ($18.36) (p. 2): Fast-rising butter and nonfat dry milk prices propelled the Class III (butter-powder) price more than $1.50 above the Class III (cheese) price in December.

Southeast Dairy Co-ops to Jaw-Bone FMMO Changes with AMS in GA (p. 3): Following the conclusion of the Georgia Milk Producers meeting in mid-January, USDA’s top federal milk order official is scheduled to sit down with dairy co-ops to talk about changes in the federal milk order program.

Biden Administration Making Noises about Beef Processors’ Concentration (p. 3): For real or symbolic? The Biden administration is targeting beef processors as an easy culprit that’s partially responsible for fast-rising consumers’ food costs.

NJ Milk Plant Closing: DFA’s Domination of Northeast Fluid Milk Market Expands (p. 4): Readington Farms – the last plant processing conventional fluid milk in New Jersey – will close during 2022’s first quarter. The parent firm will turn over its milk processing volume to about a half dozen plants owned by Dairy Farmes of America. Readington Farms’ 150(or so) independent dairy producers are being “encouraged” in the same direction.

DFA: Nation’s Biggest Processor of Plant-Based “Milk” (p. 4):

Grain Marketers: Focus on South America’s Crops & USDA Reports (p. 5):

Hudson Valley Fresh Dairy Co-op …. Produces Marketing Quality to Consumers (p.6-7):
Global Glyphosate Inventory is Running on Fumes

Spectacular Gains for Butter Prices; All Dairy Commodities’ Prices Strong (p. 9):

N-U-T-R-I-T-I-O-N: dairy’s best attribute (p. 10):

Details Scarce: State AGs Pushing DFA Antitrust Probe (p. 10):

Bankrupt Maple Leaf Cheese Co-op Sues Former Business Partners (p.11):

Saputo is Scrooge-like at Christmas (p. 11):

USDMCA Supports U.S. Complaint vs. Canadian TRQs (p. 11):

Balade “Light Butter” is NOT Butter (p. 12):

December 2021, Issue 509 2021 – Issue No. 508

Inside this month’s issue …

Vil$ack Ignores Demands for Banning Brazilian Beef (p. 1): Jan Shepel digs deep into the failure by USDA Secretary Tom Vilsack to even reply to U.S. cattle organizations that are demanding a ban on Brazilian beef imports.

U.S. Senators Submit “Dairy Pricing Opportunity Act of 2021” (p. 2): Three U.S. senators have submitted a bill ordering USDA to hold a national federal milk order hearing within six months after that bill passes.

Quick FMMO Solution: Restore “Old” Class I Formula (p. 2): Suggestion: Pete Hardin advises adding a rider to proposed fmmo legislation. Senators should mandate that USDA temporarily revert to the “old” Class I formula. That would avoid what could be a couple years’ of delays that a fmmo national hearing would require.

Nov. ’21 Class III Price is $18.03, Class IV Tops III (p. 2): Commodity price hikes are moving up farm milk prices.

GOOD News: USDA’s PVMAP Payments Not Out Until Next Year!!! (p. 3): Getting any information out from USDA regarding the Pandemic Volatility Market Assistance Program is almost impossible. Payments will not go out until some time in 2022. The income that dairy farmers receive from PVMAP will be taxable.

Grain Markets Go Sideways, Waiting for South American Harvest & Inflation Data (5): Jan Shepel analyzes recent grain market events.

Oct. ’21: Top 24 States’ Milk Turns Negative (0.3%) vs. ’20 (p. 5): Dairy’s top 24 states showed a decline of 0.3% in October ’21, compared to October ’20. Milk production has been hitting the brakes since the big splurge last May.

Global Fertilizer Dilemmas Still Simmering (p. 6) Crop advisor Paris Reidhead details the latest news and prices for fertilizers. For spring 2022, fertilizer is looking like an expensive game of musical chairs.:

Holiday Cheese Boxes Share Wisconsin’s Dairy Goodness Across the U.S. (p. 7): Jan Shepel profiles three Wisconsin firms that are enjoying strong sales of gift cheese boxes as Christmas approaches.

The Art of Plaintiffs’ Class Action Antitrust Law (p. 8-9): We profile Arthur N. Bailey, a legendary attorney in the complex field of plaintiffs’ antitrust law. Many of Bailey’s cases have involved food or farm issues.

Selected Food Antitrust Cases in Arthur Bailey’s Portfolio (p. 9-10): On pages 9-10, we describe the wheat, potatoes and wheat cases in which attorney Arthur Bailey engaged.

Dairy’s Anti-Competitive Antics? Feds Have Snoozed for Decades (p. 11): Pete Hardin details a 40-year history of failed federal antitrust oversight of the dairy industry. Dairy Farmers and Dean Foods stole while the feds slept.

Demand Prices for Replacement Heifers Finally Start Improving (p.12): At last, optimism in the heifer markets reported by our sources in Michigan and Ohio.

CME Butter & Block Cheddar Lag Far Behind Global Prices (p. 12): Global dairy supplies are tight, and demand is strong. U.S. butter and block Cheddar prices trail global values.

Nearing Year’s End, Only Barrel Cheddar Lags Among Commodity Prices (p. 13): Pete Hardin reviews dairy commodity trends. Higher prices ahead.

National fmmo hearings? Good luck! (p. 14): Yes, three senators are pushing USDA to act with a bill that requires national federal milk order hearings within six months of passage. Trouble is: the many complex issues at hand mean a hearing process could drag on for a couple years.

Vilsack & Brazil’s unsafe beef scandal: version 2.0 (p. 14): Back in summer 2015, then USDA Secretary Vil$ack announced that this nation would allow beef imports from regions of Brazil that were free of Foot and Mouth Disease infections. Prices across the entire cattle complex nose-dived, and have not recovered.

Kraft-Heinz Dumping 3 Co-ops Supplying Lowville, NY (p. 15): Kraft-Heinz is up to its old dirty tricks. Three co-ops that had been supplying farm milk to the Lowville, NY plant are being terminated, effective January 1.

Sept. & Oct. ’21 Fluid Sales Data Continue Year’s Erosion (p. 15): National fluid milk sales continue their sharp downtrend.

Michigan Milk Producers Assn. Buys Superior Dairy (p. 15): Michigan Milk Producers Assn. will purchase Superior Dairy (Canton, OH), effective December 30. MMPA has zero experience in the fluid milk sector.

Pete Hardin’s Comments to USDA on Lab-Cultured “Meat” (p. 16): Informal comments to USDA’s Food Safety & Inspection Service, Pete Hardin seeks warning labels for lab-cultured “meat” products that use fetal calf serum (blood drained from unborn calves) as one element in the growth media in vats where lab-cultured “meat” is produced. This is a “Story of the Month.”

November 2021 – Issue No. 508

Inside this month’s issue …

OUR STORIES OF THE MONTH (Click the blue title below to read "the complete story"):

Global Grain & Energy Dynamics Push Spiking Fertilizer Costs and
Violife’s “Cheddar Shreds” – Misbranded, Imitation, Artificially Flavored

Global Grain & Energy Dynamics Push Spiking Fertilizer Costs (p. 1): Paris Reidhead tracks current fertilizer components; price increases, and details the reasons propelling those spiking costs. Our “Story of the Month.”

NFDM & Barrel Cheddar Prices Rise; Supply-Chain Chaos (p. 1): Two important dairy commodities have risen sharply during the past month – nonfat dry milk and 500-lb. Cheddar barrels. Meanwhile, all suppliers are facing headaches finding needed materials and trucking.

Solutions Missing at NMPF’s Oct. 5 Economics Policy Meeting (p. 2): The dairy co-op lobby cannot specify solutions to the nation’s failing federal milk pricing system. Why? The co-ops are dependent on the grand larceny they’re pilfering from members’ milk checks.

DMI CEO Gallagher to Finally Retire (p. 2): Mercifully, after Tom Gallagher has announced he will step down as CEO of Dairy Management, Inc.

Ouch! January-July ’21 Fluid Milk Sales Way Down (p. 2): Fluid milk sales are in trouble.

September Class III Price at $16.53/cwt., (+ 58 Cents) (p. 2): Prices for all manufacturing Classes of milk increased in September, according to data released by USDA’s federal milk order program. Bigger increase lie directly ahead.

Details Scarce Concerning $350 Million Payments from USDA (p. 3): Few details are yet available regarding the PMVAP program, which is intended to compensate dairy farmers for losses incurred in 2020’s second half, when the Class I (fluid) pricing system misfired. When details are released by USDA, the howling will start.

USDA Restores DMC Funding After July Payments Fiasco (p. 3): As reported last month in The Milkweed, payments to some eligible producers for July 2021 from the DMC program to failed to come through on a timely basis. Those payments were completed in mid-September.

Suppliers “Shorting” Foods for School Meals in Many Regions (p. 3): Some schools have either been “shorted” or entirely cut off by their suppliers of foods for school meals. Certain foods are scarce. Same for plant workers and truck drivers. A sign of wider events to follow?

“Turnkey” or Turkey? Ex-Maple Leaf Cheese Plant Listed for Sale (p. 4): The former Maple Leaf Cheese Co-op plant in Green County, Wisconsin is offered for sale as a “turnkey” operation. The Milkweed scorns use of the word, “Turnkey” because of many defects in that plant and equipment contained therein.

Northwest Dairy Assn. 18 Years Behind Retiring Equity (p. 4): Retired members are hoping to see return of their equities from the Northwest Dairy Association before they die. The co-op is now 18 years behind schedule paying back those interest-free moneys to qualified retired and present members. And management wants to add over $1 million in per member debts to build a new milk powder plant?

DFA’s Integration of Dean Foods’ Businesses Not Going Well (p. 4): When Dairy Farmers of America acquired 40+ milk plants from the bankrupt Dean Foods’ empire, Dean Foods was losing more than 25-cents per gallon. DFA is struggling to turn around the money-losing Dean Foods operations.

Violife’s “Cheddar Shreds” – Misbranded, Imitation, Artificially Flavored (p. 5): What crap! We beat up on a plant-based product called “Cheddar Shreds” that’s being sold at Costco Warehouse stores. This product, described as “just like” “Cheddar Shreds” contains ZERO protein and ZERO calcium. Another “Story of the Month.”

Buholzer Family Builds on Tradition with Cheese-Making Innovations at Klondike Cheese (p. 6-7): Writer/dairy farmer Jan Shepel visits Klondike Cheese (Monroe, Wisconsin) and profiles that cheese plant’s marketing endeavors, such as Feta cheese and Greek-style yogurt.

In Current Conditions, Running a Cheese Factory is Challenging (p. 7): Klondike Cheese’s marketing manager, details some of the logistical headaches involved in running a modern cheese plant. Trucking. Plastic packaging materials. Labor.

DFA’s “Quota” Manipulations in New Mexico Hurt Members (p. 8): In recent months, a decision by DFA’s Southwest Area Council has dropped the value of local DFA daily “quota” from $10lb. to $3/lb. What happened? DFA disallowed transfer of quota from a New Mexico producer to a Texas dairy – after the transaction took place at around $10/lb.

Barrel Cheddar & Nonfat Dry Milk Prices Strengthen Nicely (p. 9): Demand is improving and milk supplies are somewhat easing up.

Whose milk money? Whose debt liabilities? (p. 10): Pete Hardin ventures into the underworld of dairy co-op financial skullduggery. First, Hardin criticizes dairy co-ops that use the money due for members’ outstanding milk payments as collateral for co-operatives’ loans. The same dollar of milk income is often used twice as loan collateral – once by the co-op and once by the farmer. Also, Hardin criticizes use of co-op “profits” to help fund equity programs. Annual “profits” and building equity should be two separate functions.

Agri-Mark Members: Prepare for More Marketing Deducts (p. 10): the board of directors of Agri-Mark are weighing how to assess increased marketing costs against members’ milk checks. An intended decision for the October board meeting has been punted, due to rising member dissatisfaction.

FSA State Directors Not Named Yet (p. 11): Jan Shepel reports that USDA Secretary Tom Vil$ack has not yet named any state directors for the Farm Service Agency. Why the delay?

Book Review: The Monsanto Papers (p. 12): Writer Cary Gillam’s second book about Monsanto and the evils of Roundup herbicide has been published. The Monsanto Papers tracks the tragedy behind plaintiff Lee Johnson, a school groundskeeper in California who was doused with Roundup by accident and developed Non-Hodgkins’s Lymphoma, which later proved fatal. Based on the strength of her first book (Whitewash: The Story of a Weed Killer, Cancer, and the Corruption of Science), Gillam gained great access to the plaintiff and the team of lawyers that pursued the landmark, Class Action lawsuit against Monsanto that charged the company with failing to properly disclose adverse human health problems associated with its weed killer.

BelGioioso Cheese to Acquire Iconic Polly-O Brands (p. 12): Wisconsin’s highly successful BelGioioso Cheese is prepared to gain title to the Polly-O line of Italian cheeses.

Horizon Organics: “Bad News” for Producers Continues (p. 12): Horizon Organics (owned by the French food giant, Danone) has informed organic, grass-fed dairy producers in the Midwest that they must absorb a $2.75/cwt. cut in their base milk prices, or else lose their markets next spring. This move follows Danone’s recent decision to terminate milk markets for 89 organic dairy farmers in the Northeast

October 2021 – Issue No. 506

Vil$ack to Throw $350 Million Banana to Dairy Farmers (p. 1): USDA Secretary Tom Vil$ack authorized a $350 million payment to dairy farmers, as compensation for losses due to failure of the Class I (fluid) milk price formula during 2020’s second half. The devil will be in the details.
Supply/Demand Picture Tightens; Fuure Dairy Demand Uncertain (p. 1): Farm milk volumes are slowing, and demand for dairy products is strong, with schools opening.
U.S. Monthly Milk Production Growth Slowing Noticeably (p. 2): Since last May’s spectacular gains, monthly milk volume data is slowing significantly. That trend will continue, given weather and cost challenges facing many dairy producers.
No Solution to Failing Class I Price Formula (p. 2): While USDA is paying dairy farmers for Class I losses, there is no solution formally proposed to actually solve the problem.
August Class III Price is $15.95/cwt. (Down 54 Cents) (p. 2): Lower commodity prices for Cheddar, butter and dry whey in August pulled down the Class III price.
Darigold Plans $450-$500Million Milk Powder Plant in WA (p. 3): Darigold – the predominant dairy co-op in he Pacific Northwest, wants to bit off debt equal to $1 million per member (or more) to build a new dairy powder plant near Pasco, Washington.
Horizon to Terminate 89 Organic Producers in New England & NY p. 3): Horizon Organics, owned by the French food giant Danone, has issued market termination notices to 89 producers in the Northeast.
Dannon’s ’18-’21 Organics: Fluid Up, Yogurt Way Down (p. 3): A review of Dannon’s past four years of organic dairy products sales show fluid milk sales have climbed, but yogurt sales have fallen off the table.
Organic Valley Draft Proposal Would Restrict Stanchion Barn Use (p. 4): Organic Valley dairy farmer members are weighing a recommendation to quit accepting milk from daiiy herds housed in stanchion barns, effective January 1, 2027. Tie-stall barns are probably in trouble, also.
The New Yorker: Excellent Overview of “Big Ag” Antitrust Issues (p. 4): An exhaustive article by writer Dan Kaufman in The New Yorker took a broad look at the history and current state of concentration in the sectors of agriculture and food. Kaufman had a good emphasis on dairy – writing about “the ususl suspect.”
Ellsworth Co-op & Kwik Trip Partner Selling Curds (p. 4): This year, the Ellsworth Co-op in northwestern Wisconsin sold the equivalent of 15 refrigerated trailers of cheese curds in a June Dairy Month promotion with the regional Kwik Trip chain of convenience stores.
Donation Program Links Dairy and Hunger Relief Groups (p. 5): USDA recently announced details for a new round of food donations programs. Jan Shepel fills in some of the dairy details.
Hurricane New USDA Report Shape Grain Price Outlook (p. 5): Grain exporting facilities at the mouth of the Mississippi River took a direct hit from Hurricane Ida, disrupting grain exports.   Fortunately, September is the low month for grain exports, with little old crop on the way out and little new crop available.
U.S Corn Imports Worsen Mexican Border Crisis (p. 6): Writer Paris Reidhead reviews how corn imported from the United States has disrupted rural communities in Mexico and exacerbated the trend of Mexican immigrants moving north – legally or otherwise.
List of Scofflaw Butter Products Sold in Wisconsin Grows (p. 7): The Milkweed’s visits to several food retailers in Madison, Wisconsin yielded several butter products being sold in violation of rules of the state agriculture department.
Dean Foods’ Failure Exposed FMMO Weakness: Funds Unrecoverable (p. 7): Dean Foods’ November 2019 bankruptcy caused a failure by the federal milk order system. Dean Foods failed to pay into the Producer Settlement Funds of regional milk orders. That meant there was no money available to compensate handlers with below-market average fluid milk sales. Thus, the fmmos failed to equalize payments to all producers.
Light Demand for Dairy Livestock, Cull Prices Stable (p. 8): There’s little demand for dairy livestock right now, except for slaughter.
Recent Weeks’ Dairy Cull Numbers Climbing Over Last Year’s Levels (p. 8): Drought and high feed costs are boosting the number of dairy cows heading to slaughter.
U.S. & Global Milk Powder Prices Spiking (p. 9): Prices for nonfat dry milk are leading the upwards momentum at the Chicago Mercantile Exchange.
More than just the farmer’s milk price … (p. 10): Pete Hardin discuses the longer-term impacts of historic low farm pries.   No only is our oo-concentrated agriculture and food sectors pushing farmers into serfdom and off the land, but we’re killing the dreams of their kids who might want to farm.
“It’s not easy to be green,” (Kermit the Frog): Organic dairy farmers – particularly in the Northeast – are taking a pounding.
Vil$ack & NMPF: “One Hand Washes the Other” (p. 10): See Tom. See Tom again be USDA Secretary. See Tom shell out money to the dairy industry, which kept Tom employed during the Trump administration.
DMC Program Runs Out of Money to Pay Dairy Farmers (Temporarily?) (p. 11): Writer/dairy farmer Jan Shepel reveals that the Sauk County, Wisconsin Farm Services Agency office has halted payments to producers for the Dairy Margin Coverage program. Why? USDA has exhausted its funds.
Japan Tries to Head of Glyphosate-Resistant Giant Pigweed (p. 11): Paris Reidhead details concerns by the Japanese that grain imports from the U.S. could allow giant pigweed to enter that country.
9/7/21: SMP (+7.3%) Leads Across-the-Board GDP Price Spikes (p. 11): The September 7 Global Dairy Trade auction found prices for Skim Milk Powder spiking by 7.3%. All dairy commodities’ prices climbed that day.
California Reservoirs’ Volumes at Very Low Ebb (p. 12): The map showing current water levels at California’s major reservoirs are shocking.
Critical Packaging Material Shortage (p. 12): EVOH, a clear material used as a moisture barrier for packaging of meat and shredded cheese, is in very short supply.
AZ Judge Voids Trump’s “WOTUS” Changes (p. 12): The Trump administration’s changes to the “Waters of the United States” rules have been voided by a federal judge in Arizona.

August 2021 – Issue No. 505

Inside this month’s issue …

OUR STORY OF THE MONTH (Click the blue title below to read "the complete story"):

Congress should restore “old” Class I base formula

Fluid Milk Sales Declined by 4.8% (p.1): For January-May 2021, fluid milk sales declined by 4.8%. And June ’21 witnessed 7.8% less Class I milk pooled on federal milk orders. There’s a hazard in comparing ’21 data to ’20 – because last year’s shut-down of the economy spurred retail sales of foods including milk.

Labor, Packaging Materials & Trucking – Huge Headaches for Processors (p. 1): Finding and paying for plastic packaging materials is almost as difficult for dairy processors as it is to find plant employees and truck drivers. Last February’s Arctic blast shut down plastics production in Texas for months – leading to current shortages.

China, Weather & Yield Projections Drive Grain Markets (p. 1): Jan Shepel takes a deep look at the current grain commodity trade. China’s grain demand and the impact of weather on this year’s crops are the big items.

June ’21 U.S. Milk Production Grow Slows Slightly (p. 2): U.S. milk production growth for June ‘221 was 3.2% above June ‘20’s figure. That’s somewhat less gain than May ‘21’s eye-popping 4.9% increase. Maybe, just maybe, the drought and high feed prices are starting to slow milk flow.

July Class III Price is $16.49 (Down 72 Cents/Cwt.) (p. 2): The federal milk order cheese milk price for June declined, following trends for commodity Cheddar.

Nobell Foods Raises $75 Million for Plant-Based “Cheese” Output (p. 3): Dairy farmer/writer Jan Shepel details how a company is preparing to make “cheese” from plant-derived, biotechnology-produced proteins. Just what we need!

Q & A: Peter Carstensen’s Comments on Recent Antitrust & Regulatory Events (p.4): We pose questions to Peter Carstensen, UW-Madison law professor emeritus, who is perhaps the top authority on antitrust issues concerning food and agriculture

Highly Significant: Lina Khan’s U.S. Senate Confirmation as FTC Chairperson (p. 4): Researcher Austin Frerick profiles the 32-year old legal scholar who has been confirmed as Chair of the Federal Trade Commission.

African Swine Fever Found in Western Hemisphere (p. 4): ASF – the dreaded disease that killed about 25% of the world’s total swine population a few years ago – has been found in the Dominican Republic, a nation in the Caribbean.

After August ’20 Derecho, Herd Coms Home to Schanbacher’s Iowa Dairy (p. 5): We revisit Brian and Kristen Schanbacher – Iowa dairy farmers profiled one year ago when the early August derecho destroyed their milking barn. The Schanbachers have rebuilt and continue dairying … with plenty of help from their friends and family.

Smooth Transition: Next Generation Takes Root at Ohio’s L&R Dairy Farm, LLC. (p. 6-7): We profile Robyn Baer and her family – operators of L&R Dairy Farm, LLC, located near Orville, Ohio. This family-run dairy farm is a gem.

Hot Summer of ’21 Worsens Dicamba Drift Problems (p. 8): Paris Reidhead updates this year’s problems with dicamba drift – the vaporization of a herbicide approved for use on soybeans that vaporizes, drifts and kills non-resistant crops in adjoining fields.

Dicamba Drift Problems Not Limited to Deep South (p. 8): Dicamba drift has been found as far north as Minnesota in 2021.

Strong Milk Flow + Sorry Fluid Sales + Uncertainty = ???? (P. 9): Pete Hardin analyzes the current dairy commodity scene. Lots of milk and falling fluid milk sales are depressing dairy commodity prices.

Congress Should Restore “Old” Class I Base Formula (p. 10): Pete Hardin offers a solution to the Class I pricing problem: Have Congress restore the “old” Class I formula, which was dumped as part of the 2018 federal farm law. Congress made a mistake. Congress can fix that mistake. No lengthy federal milk order hearings would be necessary to solve this problem that has contributed to billions of dollars of dairy farmers’ lost income.

Livestock Prices Steady, Cull Prices Strong (p. 10): Dairy livestock prices are generally steady, but continue to below. Strong interest in Angus-dairy cross calves persists. Prices for good cull cows are improving.

8/10/21 U.S. Drought Map Shows Nation on Verge of Food Distress (p. 11): Egad. What a mess. Western states’ water situation is dire. Access to irrigation water is becoming difficult for some western states farmers.

DFA’s Plant/Dairy “Blend” Beverages Hard to Find on Retail Shelves (p. 11): Recent data shows that sales of DFA’s 50-50 plant/milk beverages are down to about $30,000 per month – selling less than 10,000 units, nationwide. This product is a marketing failure.

No Butter! ABI Blasts Crisco’s “Butter No-Stick Spray” (p. 11): Wow! The American Butter Institute woke up and found fraudulent use of the word “butter” by a consumer product marketer.

Vital Farms’ “Pasture-Raised” Butter: No USDA or WI Inspection Noted (p. 12): The Milkweed finds another butter marketer that is not complying with rules to list a federal or state inspection on its consumer package.

Quick (4-Minute) Mycotoxin Assay Available from Nelson-Jameson, Inc. (p. 12): Nelson-Jameson, Inc. – a major supplier of products and materials for dairy and food processors – has come out with a quick test to detect mycotoxins in grain. Mycotoxins can be deadly. Numerous food and feed recalls occur due to presence of mycotoxins.

July 2021 – Issue No. 504

Inside this month’s issue …

OUR STORY OF THE MONTH (Click the blue title below to read "the complete story"):

Widespread Drought Theatens U.S. & Global Food Supplies

The Widespread Drought Threatens U.S. & Global Food Supplies (p. 1):
The accompanying North American Drought Monitor map tells the story: Major portions of the U.S., Canada, and virtually all of Mexico are under drought. A “Story of the Month.”

All Mfg. Milk Classes Rose for May 2021 (p. 12):
All dairy commodities’ prices climbed in May – driving up manufacturing class milk values in the fmmo system.

Weather, Exports Continue to Drive Grain Prices Higher (p. 3):
Writer/farmer Jan Shepel conducts a wide-ranging analysis of the current factors driving grain supply/demand picture.

Dairy Marketing Situation is Uncertain, More Questions than Answers (p. 3): April saw big spikes in U.S. farm milk production – the top 24 states were up 3.5% over same-month, year-ago levels. Uncertainty about federal food programs is restraining upwards price movement. Inventories of cheese and butter are significant. Drought & grain prices will pull down milk flow in coming months.

End of the Road for Twin Grove Cheese Plan & Equipment? (p. 4):
The Twin Grove cheese plant sits idle, with remaining equipment under disputed ownership. The bankrupt dairy farmers’ co-op has no financial resources to continue its legal battle against the Maple Leaf Cheesemakers, Inc.

DFA’s 2020 Audit; Curious “Assets” & Underpaying Members (p. 4):
Our analysis of the 2020 financial audit of Dairy Farmers of America finds spectacular accumulation of questionable “assets.” Where’s the milk money go last year? DFA paid its members far lower than might be expected by looking at USDA’s “All-Milk Price.”

The Ocean-Going Livestock Ship Finally Arrives at Port! (5): Stephen Le Van, V.M.D., continues his serious on trans-ocean shipment of dairy livestock.

28 Members of Congress Ask DOJ to Investigate Cattle Markets (p. 6-7): Cattle producers are hopping-mad about the wide spread between what beef packers pay for slaughter animals, compared to consumers’ retail beef costs. Processor margins have been close to $800/head in recent weeks.

Cattle Prices Crash While Consumers Continue Paying Record Beef Prices (p. 7): We reproduce an updated version of the chart produced by R-CALF USA that contrasts slaughter prices paid for market-ready steers vs. consumers “all beef” retail prices.

The a2 Milk Company’s Stock Plunges, Global Demand & Competition Spike (p. 8-9): Pete Hardin puzzles about the stock plunge of The a2 Milk Company during the past year. That firm’s stock tumbled from just over $14/share in July 2020 down to just above $4/share in recent weeks. But global demand for A2A2 dairy protein products is viewed as a major growth factor in coming years.

Tre-G Organic Cows Enjoy Free-Choice Milking (p. 10-11): Paris Reidhead visits the Smith family’s organic dairy farm near Pompeu, New York. In recent years, the Smiths shifted to organic dairy and acquired robotic milking units – factors that helped the “fifth generation” – son Ryker and his wife, Jenny, stay with the farm.

Russian “Organic” Grain Imports? Don’t Bet on NOP Preventing Fraud (p. 11): John Bobbe analyzes the potential fraud involved in importing “organic” grain from Russia.

Victims & Families May Get Only Peanuts in Ophioid Drug Settlement (p. 12): As the proposed settlement in the Purdue Pharma bankruptcy nears a vote by Class members, details emerge that pay-outs will be peanuts -- $3,000 to $48,000 per claimant, BEFORE lawyers’ fees and costs are deducted. Tom Vil$ack, current USDA Secretary, was paid $190,000, between February 2000 and January 2021, to “moderate” oversight of efforts by the bankrupt ophioid drug manufacturer to bring victims into the Class. No thank you, Tom.

Horizon Crops Organic Producers in New England (p. 12): Despite strong demand for organic dairy products in the Northeast in early 2021, Horizon Organic has issued termination notices to organic dairy farmers in New England.

Dairy Commodity Prices Fall: Market Uncertainty, Plenty of Milk (p. 13): The past few weeks have seen back-sliding commodity prices. There is lots of milk out there. And uncertainty about future federal food assistance programs persists.

“Common Sense” fluid milk pricing: Regional production costs, Class I shipping rules (p. 14): Pete Hardin offers several thoughts about changing Class I (fluid) pricing in the federal milk order system: Some of those changes include: regional cost of production + a common butterfat differential with manufacturing classes, getting ride of Class I shipping requirements, and reducing the number of federal milk orders.

Protein Complex Needs Anti-Trust Probes (p. 14): Beef, dairy, pork, broilers, eggs – the whole damned consumer protein complex is price-fixed.

BelGioioso Cheese Enters Popular “Snack Cheese” Market (p. 15): We profile the expanded marketing thrust into the “Snacking Cheese” segment by BelGioioso Cheese, Inc., one of Wisconsin’s most successful cheese firms.

“Mike’s Popcorn “Butter Popcorn” Contains ZERO Butter (p. 16):
We assert that it’s illegal to call a product “Butter Popcorn” when there is no butter in the product..

June 2021 – Issue No. 503

Inside this month’s issue …

OUR STORY OF THE MONTH (Click the blue title below to read "the complete story"):

Widespread Drought Theatens U.S. & Global Food Supplies

Inside this month’s issue …

OUR STORY OF THE MONTH (Click the blue title below to read "the complete story"):

Serious Drought Challenges 2021's U.S. Agricultural Output

Serious Drought Challenges 2021’s U.S. Agricultural Output (p. 1):
The western half of the United States is almost totally covered in drought. The situation in California is dire.

Critical Industrial Inputs’ Prices Spiking to Fuel Inflation (p. 1): Lumber. Steel. Fertilizer. Grain. All those items are registering sharp spikes in costs, brewing inflation.

NMPF & IDFA Can’t Agree on New Class I Price Proposals (p. 2): Dairy’s two biggest lobbies – cooperatives vs. processors – are at odds over what changes might be needed in USDA’s pricing for fluid milk in the federal milk order program.

Proposals Flying, But No Hearing Requests to USDA Yet (p. 2): Hot air, but few details yet on specific proposals to amend USDA’s Class I pricing system.

April Class III Price Climbs to $17.67/cwt. (+$1.52) (p. 2): April saw a needed bump in the Class III (cheese) milk price in the federal milk order program.

Vil$ack Ineptly Straddling “Meat vs. ‘Fake Meat’” Divide (p. 3): In late April, USDA Secretary Tom Vil$ack told a convention of agricultural journalists that the Biden administration would not move to reduce lean meat consumption. A few days later, VegNews (a vegan publication) reported that USDA had recently approved Impossible Foods’ putting plant-based “meat substitutes” into school cafeterias in several states.

Parts? New Radial Tractor Tires? Bale Wrapping? Stainless Steel Pipelines? (p . 3): Farmers are increasingly frustrated by scarcity … or downright lack of availability … of critical inputs.

DFA Press Release Mis-States 2020 “All-Milk Price” (p. 3): Dairy Farmers of America made an error in the press release that gave details from the co-op’s annual meeting. DFA wrongly cited the 2020 “All-Milk Price” as $17.79. In fact, 2020’s “All-Milk Price” was $18.31 –53 cents per hundredweight better than the milk price received by DFA members, which was $17.79.

Foremost Farms’ 2020 Audit: Profits & Les Debt (p. 4): Foremost Farms’ leadership made tough choices in 2020. That co-op’s audit showed that profits had been restored and a big chunk of debt had been paid down.

Wild Ride Continues for Corn & Soybean Prices (p. 4): Jan Shepel updates readers on recent grain industry events and price trends.

Lawsuit targets Kraft Heinz’ “Bagel Bites” Snack Product’s Claims (p. 5): Kraft-Heinz has been hit with a lawsuit alleging that the “mozzarella” portion of its “Bagel Bites” snack product are not mozzarella.

Critics Cite “Georgia-Style” Tactics by CDFA in QIP Referendum (p. 5): Grade A dairy producers in California are down to the last few weeks of a referendum on whether or not to continue the state’s milk quota program (QIP). Critics assail the state agriculture department for failing to conduct a transparent referendum process.

Culver’s Restaurants: Dedicated to Quality & Promoting Agriculture (with Lots of Dairy) (p. 6-7): Jan Shepel profiles the highly successful, Wisconsin-based restaurant chain, Culver’s. That firm’s ethics emphasize quality food, Midwest hospitality, and plenty of dairy.

Clyde Rutherford, Long-time Dairylea Co-op Leader, Passes (p. 8):
We note a few of the more tawdry events in Rutherford’s long career as a dairy leader.

Priority IAC: Enhancing Rumen Function & Protein Conversion Efficiency (p. 8): Paris Reidhead revisits the subject of Priority-One’s dairy cow feed supplement that moderates rumen acidity. Important for efficiently converting dietary proteins.

Strong Demand Boosts NFDM Prices, Cheddar & Butter Rise & Fall (p. 19): The big news in dairy commodities is recent weeks’ strong price hikes for nonfat dry milk – driven by strong domestic and global demand.

Here we (don’t need to) go again … (p. 11): Dairy farmers are facing fast-rising costs for many key inputs – feed, fertilizer, etc. Pete Hardin emphasizes that the past year’s failures by the milk pricing system and some milk buyers mean that “business as usual” cannot continue. Hardin details his opinion for needed changes in federal milk orders, as well as urging dairy producers to quit accepting lame excuses from their milk buyers about why “negative PPDs” are causing milk revenue to fail to register in milk checks.

Q1 2020 fluid milk sales decline about 1.7% (p. 11): Hard to measure fluid milk sales for this.

Serious Drought Challenges Continued from Page 1 (p. 12): Includes the California Snowpack and Reservoir Conditions maps.

April 2021 – Issue No. 501

Inside this month’s issue …

OUR STORIES OF THE MONTH (Click the blue title below to read "the complete story"):

How Many BILLION$ Did DFA Siphon in 2020??? and

DFA’s 2020 Financial Audit: Lipstick on a Larcenous Hog

How Many BILLIONS Did DFA Siphon in 20200??? (P. 1): Pete Hardin reports that DFA’s 2020 financial audit raises questions about over $1 billion that evaporated A “Story of the Month.”

Will “Negative PPDs” Erode 2021’s Rising Milk Prices? (p. 1): Rising commodity Cheddar and dry whey prices set the table for another round of “neegativePPDs.” What excuses will marketers cook up this year to explain why farmers don’t see better milk checks?

Arkansas Dairy Farms Spearhead Law to Boost Fluid Milk Returns (p. 2): The Arkansas governor has signed a recent bill that proposes to return the full Class I value to in-state producers for milk produced, processed, and sold in Arkansas.

March Class III Prices Rises $0.40, to $16.15/cwt. (p. 2): The headline says it all.

Grain Prices Surge After Recent USDA Reports (p. 3): Two USDA reports in late March found shrinking grain stocks (particularly soybeans) and fewer intended planting acres in 2020 than previously expected.

Recent Months’ Steel Prices Shooting Up (p. 3): An Ohio trailer manufacturer reports that his steel costs have climbed 82% since December.

Dairy Loan Woes in Northern New England: Farm Credit East to Absorb Yankee Farm Credit (p. 3): The last remaining independent Farm Credit unit in the Northeast is waiving the white flag, pulled down by a portfolio of struggling dairy farmers. On January 1, 2022, Yankee Farm Credit is expected to be absorbed by Farm Credit East.

DFA’s 2020 Financial Audit: Lipstick on a Larcenous Hog (p. 4): The nation’s largest dairy farmers’ cooperative recently issued its bogus 2020 financial report, on which The Milkweed does a proctology. (A Story of the Month.)

DFA’s Creative Bookkeeping Defies Generally Accepted Accounting Procedures (p. 4): DFA’s 2020 financial report was not in conformance with U.S. generally accepted accounting principles.

Toxic Chemicals Found in “Organic” Soy Imports from India (p. 5): John Bobbe reports on recent developments involving imported, “organic” soybeans and soybean oil meal from India. Analyses show presence of rodenticides and hexane. Hexane is one of the most carcinogenic substance known to man.

Deeper Look at Prairie Farms’ 2020 Net Income (p. 5): Analysis of Prairie Farms’ 9/30/20 financial audit shows that co-op’s $90 million profit was boosted by $45 million for undervalued assets acquired form the Dean Foods bankruptcy and $29 million from joint venture profits.

New York State Farmers Fight Land Grabs by Cheese Company (6): Two New York State dairy farmers face loss of their best farmland, as the County is threatening to seize that property under “eminent domain” powers … to build a cheese plant for Great Lakes Cheese. The cheese plant project is in line for some $200 million in taxpayer subsidies for an estimated $500 million project.

NYS Empire Development Corporation: Big Taxpayer Subsidies to Dairy Plants (p. 6): New York taxpayers have selled out hundreds of millions of dollars of subsidies to build and expand dairy plants, with notable failures.

Wisconsin Bills target “Truth in Food Labeling” (p. 7): Jan Shepel describes bills recent passed by the Wisconsin legislature that would protect names of dairy and meat products from “fake” products using those names. She also writes about national events on this same subject.

The Supermarket “Butter” Case:Prime Real Estate for Fraudulent Deception (p. 8-9): Pete Hardin visits Wisconsin supermarkets and finds a wide array of products that do not conform with state and federal law – some are butter and other products are plant-based but using butter’s good name and image.

Pirating Butter’s Good Name, Avoiding FDA’s “Margarine” Definition (p. 8): Curiously, some products that use the word “butter” in their names carefully keep their content of plant-based oils below 80% so they can avoid being called “margarine.”

Priority IAC’s Smart Bacteria Cater to Rumen Microflora (p. 10): Paris Reidhead reports on Priority IAC’s product – “Priority One-P-OneTM” – that changes the pH of a dairy cow’s rumen to boost protein conversion efficiency.

Same: the Best for Man and Beast – Part 6 of Series (p. 11): Steven Le Van, V.M.D., continues his series on ocean transit of dairy livestock.

Report: Weaker U. S. Dollar Doesn’t Help Ag Commodities Equally (p. 12): Jan Shepel analyzes a CoBank report on varying benefits enjoyed by different U.S. farm commodity exports, in light of the weaker U.S. dollar.

Food Service Re-opening & Gov’t Food Aide Boosting Dairy Commodities (p. 13): Dairy commodity prices are on the rise – pretty much across the board – due to various factors. High global prices are pulling up butter. Cheese is benefiting from food service firms’ bigger orders and anticipation of strong demand for the next round of federal food aid for the needy.

Dairy Livestock Markets (p. 14): Cull cow prices and demand for open dairy heifers are strengthening. Otherwise, prices are flat.

Follow the money … (p. 15): Pete Hardin summarizes the Grand Larceny that drained dairy producers’ milk checks in 2020. Billions …

Analyzing DFA’s financial statement (p. 15): Why it’s important to look closely at DFA’s financial statement.

Follow the law: protect dairy’s standards and names (p. 15): Why won’t state and federal regulators enforce the law by penalizing firms that use names of standardized dairy products to peddle non-dairy “stuff.”

Old Bill Gates Has a Farm, Ei-EI-O! And on that Farm he Has WHAT??? (p. 16): John Bobbe reports that billionaire Bill Gates is the single largest owner of farmland in the United States. But he’s also investing many millions in companies making “fake” milk and meat.

Past Year Tough for Trans-Ocean Livestock Shipments (p. 16): Many, many problems have hit ocean-going ships that transport livestock during the past year.

3,100 High-Capacity Wells Draining Central WI Surface Waters (p. 16): The average, daily draw of groundwater by 3,100 high-capacity wells in the Central Sands region of Wisconsin is 4.34 billion gallons. That’s enough water to fill 62,000, 7,00-gallon semi tank trailers per day.

March 2021 – Issue No. 500

Inside this month’s issue …

OUR STORIES OF THE MONTH (Click the blue title below to read "the complete story"):

Fertilizer Costs Mimic Explosive Corn & Soybean Prices

Fertilize Costs Mimic Explosive Corn & Soybean Prices (p. 1): Fertilizer prices are skyrocketing. Our story of the month.

Brutal February Storm Hammers Texas Dairy Industry (p. 1): Mid-February saw a massive blizzard hammer Texas’ dairy industry, from farm to consumer. We cover some of those events.

Dairy Groups Demand “Seat at the Table” on FMMO Changes (p. 2): The American Dairy Coalition is demanding that the dairy co-op lobby seek an emergency, national milk order hearing to address multiple inequities in the fmmo program. National Milk Producers Federation is likely aiming for a legislative “fix” to the Class I (fluid) milk formula problem. NMPF would like to ignore Class III (cheese) milk depooling and the resulting “negative Producer Price Differentials.”

Vil$ack Confirmed as Next Ag Secretary (p. 2): The devil we know.

Vil$ack’s Haul from Purdue Pharma Up to $190,600 (p. 2): Tom Vil$ack’s “night job” fronting for the bankrupt, opioid drug manufacturer Purdue Pharma yielded compensation of $190,650 from February ‘2 0 through January ’21.

February ’21 Class III Price at $15.75 (Down 29 Cents) (p. 2): Lower cheese and butter prices were somewhat offset by higher dry whey prices in USDA’s calculating that the February ’21 Class III (cheese) milk price declined.

Equipment Dispute: Maple Leaf Cheesemakers Sues Co0op & Bank (p. 3): It’s necessary that equipment ownership issues be resolved before the next existence of the Twin Grove cheese factory near Juda, WI can be resolved.

3/10: March Grain Futures: Corn $5.48, Soybeans $14.12 Shipping Headaches Raise Questions about Exports (p. 3): Corn and soybean prices remain high. But shipping bottlenecks are delaying movement of some grain to export buyers.

Reports of “Hard Butter” Ripple Across Canada, Culprit Unclear (p.4): Writer Peter Kane reports on the “hard butter” brouhaha in Canada.

Scenic Central Leaders Highlight Roller-Coaster 2020 with No Milk Dumped (p. 5): Jan Shepel summarizes the annual meeting of Scenic Central Milk Producers – a definite “roller-coaster.”

Imports of Cattle and Beef Hit All-Time High in 2020 (p. 5): Jan Shepel summarizes cattle and beef imports in 2020, as analyzed by R-CALF USA.

Final $19 Trillion Covid-19 Relief Package Passes Congress (p. 5): Jan Shepel summarizes the recently passed Covid-19 relief passage. That newly-signed law allocates about $22 billion for farm and food programs.

Social Media Craze Propels Feta Cheese Demand Way Up! (p. 6): Cheese plants producing feta cheese saw a huge bump in demand in 2021’s first two months. Why? A recipe for baked feta with pasta went viral on social media.

A Tale of Two Cooperatives … (p. 6): We contrast how two dairy cooperatives handled their respective past year’s financial reports – Prairie Farms and Scenic Central Milk Producers. Prairie Farms reported just over $90 million in profits, and the manager responded, that’s the way it works, when questioned by a member why the co-op didn’t put more money in members’ milk checks. Scenic Central surprised its members by putting oer $3.00/cwt. into the final milk check for December 2020 milk payments – sharing a “rainy day fund” with members.

Online Sales Rose 950% for Westby Cooperative Creamery (7): Last spring, Wisconsin’s Westby Co-op faced a sales dilemma as Covid-19 disrupted normal pathways for that co-op’s product to consumers. So the co-op developed a “Dairy Farmers’ Cheese Box” and pushed online sales. Result: A 950% increase for online sales in 2020.

Prairie Farms Audit Raises Questions about Dean Foods Bankruptcy (p. 7): A big portion of Prairie Farms’ $90 million profit for the fiscal year ending September 30, 2020 was an “asset” of $45 million described as a “bargain” purchase. That year, Prairie Farms shelled out $102 million to buy a handful of dairy plants from Dean Foods. The implication is that Prairie Farms paid far less than the actual value of those facilities acquired from the Dean Foods’ bankruptcy.

Smits Find Organic/Grass Fed Market with Maple Hill Creamery and NFO (p. 8): Paris Reidhead profiles the Smith family of Chenango County, NY and their rocky path to organic, grass-fed dairy production.

World Dairy Expo Leaders Exploring Possible Alternate Location (p.8): World Dairy Expo is searching for an alternate location, perhaps avoiding tight Covid-19 restrictions in Dane County, Wisconsin which could possibly cancel that event for the second straight year.

Challenges of Adequate, Clean Water for Cattle on the Ocean (p 9):

Researcher Offers Cheap Alternative for Fetal Calf Blood in “Fake Meat” (p. 9): A researcher in Turkey claims to have created a far less costly alternative for using fetal calf blood for producing lab-cultured (“fake”) meat. Interestingly … the researcher notes that fetal calf blood (drained from calf fetuses at slaughterhouses) costs about $400 per liter – that’s $500 per quart.

For Real? Dairy Commodities Prices Climb in Early March (p. 10):
… like a Dutch uncle (p. 11): Pete Hardin discussed needed changes for the nation’s dairy industry.

Issue #500! (p. 11): Whew! The March 2021 issue is number 500 for The Milkweed. The editor-publisher offers a few thoughts …

CDFA starts producer vote on QIP sunset plan (p. 11): California dairy producers are in the midst of a referendum on whether or not to “sunset” the state’s milk quota program in 2025.

Dirty Green, Dumb Green, and Smart Green (pg. 12): Pete Hardin discuses the environmental foolishness of manure digesters, the bone-headed efforts by the national dairy promotion “bozos” to define dairy’s green house gas emissions, and the smart way to handle livestock manure – composting. Digesters? Burning one pound of methane products 2.75 lbs. of carbon dioxide.

February 2020 – Issue No. 499

Inside this month’s issue …

OUR STORIES OF THE MONTH (Click the blue title below to read "the complete story"):

HUGE Antitrust Class Action Filed vs. Agricultural Chemical & Seed Giants

2020: FMMOs Yielded a $3.4 Bil. Red Ink

HUGE Antitrust Class Action Filed vs. Agricultural Chemical & Seed Giants (p. 1): Jan Shepel has produced extensive coverage of a recently filed Class Action complaint alleging that major players in the ag seed and chemical industries conspired to keep farmers from competitively determining prices for inputs.

2020: FMMOs Yielded a $3.4 Billion Red Ink Bath (p. 1): When adding up the “lost” Class I (fluid) milk revenue due to the “new” fmmo formula … and throw in de-pooled Class III (cheese) milk, the sum of those two items in 2020 added up to right around $3.4 billion of evaporated dairy producer revenue last year.

Log-Jammed Shipping, Labor Headaches Challenge Dairy Exporters (p. 2): Freighters are back-logged, waiting to be unloaded at global ports. U.S. exports to Asia are being crippled, because the Chinese want the international shipping containers returned ASAP … even empty.

China’s Purchases, South American Problems Drive Higher Grain Prices (p. 2): Jan Shepel surveys the grain commodity scene. Just prior to press time, March’21 corn futures had pushed well above $5.50/bushel and soybean futures even danced close to the magical, $14/bushel price … before slipping back.

January Class III Price Drops to $16.04/Cwt. (Down 32 Cents) (p. 2): USDA knocked back the Class III (cheese) milk price slightly in January 2021.

May 2019 FMMO Class I Formula Change Exploded “Negative PPDs” (p. 3): Pete Hardin takes a long look at how the May 2019 changes in the Class I (fluid) milk price formula actually encouraged de-pooling of Class III (cheese) milk in 2020 … with resulting losses of revenue in regional federal milk order pools during the second half of 2020.

Forages Scarce? Hit the (Warming) Ground Running! (p. 5): Paris Reidhead poses 10 questions (and answers) about strategies for coping with scarce forage supplies. He emphasizes the need for livestock producers to grow winter forages for early spring harvest.

2020’s Dairy Products Data Reflects Consumers’ Changed Food Habits (p. 6-7): Using selected data from USDA’s Dairy Products report The Milkweed analyzes month-by-month production data for a wide array of dairy products, and explains factors that drove up … or down … output for those items. Interesting …

Partake Carefully: Lab-Grown Meat & Plant-Based Beverages (p. 7): John Bobbe returns to share more distasteful insights about “fake” meat and “fake” milk.

2020 Retail Cheese Sales Data: “Very Strong” (p. 7): Retail cheese data for 2020, generated by Dairy Management, Inc., shows a 13% gain in total cheese volume sold by supermarkets and other retailers last year. This big jump in retail sales reflects citizens’ changed food habits, in the face of the Covid-19.

Mid-Ocean, with 1,500 (or More) Hungry Holstein Heifers (p 8): Stephen Le Van, V.M.D., continues his series on ocean transport of U.S. dairy livestock. This issue he writes about storing and feeding hay on board.

Namibia Has Second Outbreak of FMD in Matter of Months (p. ): Jan Shepel reports that Namibia – a major African beef producing nation with sales to the United States – has uncovered multiple incidents of Foot & Mouth disease infections in the past five months.

Politics Thick in QIP Fight CDFA Announced Referendum (p. 9): The battle over California’s QIP assessment from all Grade A producers milk checks gets murkier. The state ag department will hold a vote among dairy producers later this spring.

DFA Now Biggest Processor of Plant-Based Beverages (p. 9): Hard to believe … but Dairy Farmers of America is THE largest processor of plant-based beverages in the United States. Way to go!

Last Month’s Fetal Calf Blood in Lab-Cultured “Meat” Story … (p. 9): John Bobbe’s detailed story about using fetal calf blood in the production of lab-cultured “meat” drew a lot comments and some further digging into that matter.

Dairy Commodities: Uncertainty Reigns Over Domestic & Export Markets (p. 10): Both domestic and export markets have great uncertainty right now. U.S. butter prices are a full $1/lb. below Oceania’s prices quoted in USDA’s Dairy Market News.

NMPF cooking up another FMMO Class I base formula (p. 11): Egad. The same clowns that brought us the most recent milk pricing fiasco are cooking up another batch! National Milk Producers Federation is proposing a new Class I skim milk base formula … after the last one (new in May ’19) is wildly failing. Trust those clowns?

How many cost gougers & price “fixers” can farmers afford (p. 12): Pete Hardin puzzles about how many American farmers can survive, when they’re faced with limited number of suppliers (some of whom are in collusion) and few buyers (some of whom are in collusion.

Vilsack’s Back: Confirmed by Senate Committee on Agriculture, Forestry and Nutrition (p. 12): Peter Kane covers the hearing on Tom Vilsack’s nomination to again head USDA. Kane quotes Vilsack’s say-nothing comments on milk prices.

Groups Cite “Five Reasons to Reject Tom Vilsack” (p 12): Jan Shepel reviews communications to U.S. Senators from organizations opposing the nomination of TomVilsack to again serve as Secretary of the United States Department of Agriculture.

December 2020 – Issue No. 496

Inside this month’s issue …

OUR STORIES OF THE MONTH (Click the blue title below to read "the complete story"):

AFBF: De-pooling + "Negative PPDs" Cost Producers $2.694 Billion (p. 8): One of our “Stories of the Month.”

Adding Up 2020's "Missing Milk Check Money" - $4 Billion??? (p. 9):

Cheddar, NFDM & Whey Prices Gaining; Butter Back-Sliding (p. 1): Three dairy commodities’ prices are strengthening, while butter prices have tumbled sharply. What’s going on? Pete Hardin explains.

Lab-Cultured (Fake) “Meat” Made with Fetal Calf Blood (p. 1): You can’t make this up! Writer John Bobbe reveals that blood extracted from calf fetuses is used as a production material to make lab-cultured “meat.”
Wait ‘til the vegas, vegetarians, animal welfare-types, and just folks who think about what’s in their food get a hold of this!

Producer Tells CA FMMO: Stop Deducting Unauthorized QIP Assessment (p.2): Dairy producer Craig Gordon (Chino, CA) has written the California federal milk order, demanding that the QIP deductions of $0.38/cwt. taken from his milk checks be halted. Gordon claims the QIP deduct is not authorized. He provides documentation – a video-tape from a state ag department lawyer who admitted at a March 2019 hearing that the QIP assessment was not in accordance with California’s Administrative Procedures Act.

Milk Powder Settlement Checks: Mid-January Mailing (p. 2): Screwed up mail delivery, pre-Christmas, was cause not to mail out Settlement checks to some 25,000 claimants in the milk powder mis-reporting matter. Those checks are set to go in the mail in mid-January.

December ’20 Class III Drops to $15.72/Cwt., Down $7.62 (p 2): A big drop in cheese prices caused a big drop in December’s Class III (cheese) milk price.

Borden-Select Joint Venture Buys 2 Ex-Dean Foods Milk Plants (p. 3): The new owner (finally!) of the former Dean Foods milk plants at Chemung, Illinois and DePere, Wisconsin is a joint venture between Borden and Select Milk Producers.

New Covid-19 Relief Bill Helps Agriculture: $13 Billion in Funding (p. 4): Buried among the 5,000+ pages of the most recent federal Covid-19 relief law (finally signed by Trump) are many important programs involving agriculture and food. Jan Shepel reviews the highlights. Great reporting!

Petition Drive Aimed at Up-or-Down Vote on Beef Checkoff (p. 4): Discontent among beef producers is taking for as a petition drive to orce a recall referendum on USDA’s mandatory, $1 per head of cattle marketed, promotion checkoff. Dairy livestock also pay that checkoff.

Spiking Corn & Soybean Prices, Global Scarcity, New Challenges for Dairy (p. 5): Pete Hardin looks around at domestic and global grain trends, and also reviews events of the early 1970s that caused panic about world food supplies.

Vil$ack ($902, 895) Tops DMI’s 2019 Execs’ Compensation List (p.5): Tom Vil$ack, head of the U.S. Dairy Export Council, was the top=paid executive receiving money from the dairy checkoff. Vil$ack has been nominated to serbe as the next Secretary of the U.S. Department of Agriculture.

Global Supply-Demand Impacting Grain Producers, Livestock Sector (p. 6): Writer/dairy farmer Jan Shepel analyzes trends in the grain sector, with an emphasis on their impact on livestock producers.

Maple Leaf Co-op Producers Received November Milk Income (p. 6): Thanks to the federal bankruptcy court and the Sugar River Bank, Santa Claus was able to deliver milk checks to producers of the newly bankrupt Maple Leaf Cheese Co-op in Green County, Wisconsin.

Macro-Managing Dairy Nutrition through Winter ’20-21 … and Beyond (p. 7): Paris Reidhead discusses feeding and crop-testing strategies t help forage-short dairy producers get through this winter. He also offers some longer-term suggestions.

AFBF: De-pooling + “Negative PPDs” Cost Producers $2.694 Billion (p. 8-9): Economists at the American Farm Bureau Federation recently estimated that de-pooling Class III (cheese) milk and the resulting “negative PPDs” cost dairy farmers in seven federal milk orders a total of $2.694 billion dollars from June through November 2020.

Adding Up 2020’s “Missing Milk Check Money” - $4 Billion??? (p. 9): Pete Hardin adds on other “lost” milk check income for dairy farmers during 2020 and comes up with an estimated $4 billion gap.

At Dockside: Leasing he Livestock Carrier (Cattle, Documents & Supplies) (p. 10-11): “Cow Doc” Stephen R. Le Van, D.V.M., continues his series on oceanic transport of dairy cattle. Le Van was the ship’s vet on mor than 20 such voyages.

Feds Indict Gutman Brothers: False Blood Tests for Exported Dairy Cattle (p. 11): In November, federal indictments were levied against the Gutman Brothers – a Maryland-based dairy cattle exporter. Allegations are that the Gutmans oversaw a scheme to submit blood tests from known healthy cows for other cows that were exported.

Biomethane: The Future of Renewable Energy? (p. 12-13): Writer Peter Kane discsses the wide-ranging issues relating to use of methane from livestock wastes as a biofuel. Lots of questions.

WI Dairy Farm Numbers Drop Below 7,000 (p 13): Down, down, down.

America, America … (p. 15): Pete Hardin discuses his father’s front-line service as an infantryman in Europe during 1944-45 -- one of millions of Americans who defended Democracy. Good that his father is no longer here to witness recent events at the nation’s Capitol, which resemble Hitlerism.

Using fetal calf blood to produce lab-cultured “meat” … What??? (p. 15): Hardin comments on the use of fetal calf blood to produce lab-cultured “meat.” His conclusion: “Enough to gag a maggot.”

Tom Vil$ack’s “Factitious” U.S. Senate Confirmation Hearing (p. 16): Tongue in cheek, we commit a “factitious”, March 2021 grilling of Tom Vil$ack’s confirmation hearing before the U.S. Senate ag committee. The best we can say about Vil$ack is that, a) he’s the devil we know, and, b) he’s not Sonny Perdue.

Tom Vil$ack’s 2020 Opioid Drug Cut Up to $175525 (p. 16): Here we go again, picking on Vil$ack. Through November 2020, Vil$ack has received $175,525 in consulting fees for his work with the Purdue Pharma bankruptcy. Purdue Pharma is a major manufacturer and peddler of opioid drugs, which in recent years have killed over 50,000 Americans in each of several recent years. This “side-gig” was earned on top of Vil$ack’s huge salary at the U.S. Dairy Export Council.

Vil$sack's 2020 Opioid Drug Cut Up to $175,525 (p. 16)

For FMMOs Ok Holiday “Milk Dumping” (p. 16)

December 2020 – Issue No. 496

Inside this month’s issue …

OUR STORIES OF THE MONTH (Click the blue title below to read "the complete story"):

Dairy Exits 2020 with More Questions than Answers (p. 1): One of our “Stories of the Month.”

American Farm Bureau Federation Defends Farmes from Demands by Dean Foods’ Bankruptcy “Maggott” (p. 12):
One of our two “Stories of the Month.” Must Read!

Dairy Exits 2020 with More Questions than Answers (p. 1): One of our “Stories of the Month.”

China’s Buys, Fewer Acres & Tight Supplies Boost Grain Prices (p. 1): Writer/dairy farmer Jan Shepel reviews events that have driven strong, upwards prices for corn and beans at harvest time.

Huge, Second Wave of “Demand Letters” Hits Ex-Dean Foods Suppliers (p. 2): Just before Thanksgiving, hundreds of dairy farmers (and other suppliers of Dean Foods) received Demand letters from a law firm representing the bankrupt “estate” of Dean Foods. These letters demand that firms doing business with Dean Foods pay back a high percentage of funds paid to them by Dean Foods during the 30-90 days prior to the firm’s November 12, 2019 bankruptcy.

12/3 AFBF Letter Blasts Lawyers for Dean Foods (p. 2): The American Farm Bureau Federation sent a stinging letter to the law firm representing Dean Foods’ bankrupt estate. That letter is reproduced as one of our “Stories of the month.”

Nov. Class III Price Peaks at $23.34/Cwt. (+1.73) (p. 2): Take a good look. It’ll be a while before we see $23/cwt. cheese milk prices.

Covid-19 Vaccines’ Dry Ice Needs Concern Dairy Industry (p. 3): Cheese and yogurt manufacturers need cultures shipped at sub-zero temperatures. The emerging distribution of Covid-19 vaccines has dairy interests scrambling to make sure the industry is able to obtain adequate supplies of dry ice.

Maple Leaf Cheese Co-op Files Chapter 11 Bankruptcy (p. 3): A small dairy cooperative in Green County, Wisconsin has filed for financial reorganization under Chapter 11, in an effort to sort out its tangled situation following the terminated lease of the cheese plant owned by the co-op.

Finally! Milk Powder Lawsuit Settlement Checks Issued Soon (p. 4): Pehaps by Christmas, if the U.S. Postal Service is up to the task, dairy farmers who submitted claims from the Milk Powder class action case ma se their pay-outs. Some 25,000 claimants will divide $25 million.

EPA Re-Approves Dicamba for Five More Years (p. 4): The EPA has okayed use of the controversial herbicide Dicamba for five more yeas, with additional restrictions.

“Stop QIP’s” Latest Thrust Vs. California’s “Milk Quota Tax” (p. 5): On March 9, 2019, an attorney for the California Department of Food and Agriculture stated at a March 9, 2019 hearing that her department had not followed required administrative rules when it implemented the $.038/cwt. “tax” on all Grade A milk producers in that state. The “tax” funds pay-out of $1.70/cwt. to firms holding milk quota.

GM Nightmare (Giant Pigweed) Sneaks into Japan in S. Grain Shipments (p. 5): So-called “Giant Pigweed” – a glyphosate-resistant super-weed – is now causing problems in Japan. Seeds for that weed snuck into that country included in grain shipments.

Cook’s Farm Dairy: Nearly 40 Years Processing/Marketing (p. 6-7): Talk about experience! The Cook family of Michigan has been processing its dairy herd’s milk for nearly 40 years and selling those products at itsfarm store and local supermarkets.

Variety: The Slice of Life & Backbone of Heterosis (p. 7): Paris Reidhead summarizes research from the University of Minnesota that demonstrates improved breeding efficiency for Holstein-crosses, wit no loss lf components production.

“20/20” Hindsight: Reviewing 2020’s U.S. Beef Markets & Imports (p. 8): Writer Peter Kane dissects beef imports entering the U.S. during 2020. The biggest gainers were Brazil and other South/Central American countries.

Not Much “Real” in Fake Milk & Meat (p 9): Organic grain consultant John Bobbe takes a hard kick at “fake” milk and meat products.

Dairy Livestock Prices Declining (p. 9): Early December results at our key livestock auctions showed reduced buyers’ interest and generally lower prices for dairy animals.

Dairy Prices: Cheddar Drops Sharply, Protein Powders Strengthen (p.10): Dairy Prices: Cheddar Drops Sharply, Protein Powders Strengthen (p. 11): Cheddar prices at the Chicago Mercantile Exchange tumbled dramatically. But dairy protein powders are showing strength.

Food boxes: indirect, costly means to a vital end (p. 11): There are smarter, more cost-efficient ways to meet America’s growing problem with hungry families than making them wait in line for food boxes.

Moving off the farm … (p.11): After 32 years on their farm, Pete Hardin and his wife, Rachel, are moving to town in early 2021. Pete reminisces …

American Farm Bureau Federation Defends Farmes from Demands by Dean Foods’ Bankruptcy “Maggott” (p. 12): One of our two “Stories of the Month.” Must Read!

November 2020 – Issue No. 496

Inside this month’s issue …

OUR STORIES OF THE MONTH (Click the blue title below to read "the complete story"):

Series of Stories by a New Writer: Peter Kane (p. 8-10). One of our “Stories of the Month.”

U.S. Imports of Brazilian Beef (Metric Tons) (p. 1): This summer, imports of Brazilian beef started spiking – just as U.S. consumers’ meat costs spiked and prices for slaughter cattle nose-dived.

Rumor: Borden Poised to Acquire Chemung, IL Fluid Plant (p. 2): Our sources indicate that Gregg Engle$, CEO of Borden Dairy, will be awarded the ex-Dean Foods fluid milk plant in northern Illinois.

October Class III Price Climbs to $21.61/Cwt. (Up $5.16) (p. 2): October’s Class III price topped the $20 mark in USDA’s milk orders. But “depooling” means that most dairy farmers won’t see anything close to that value for cheese milk in their settlement checks for October 2020.

D-I-V-O-R-C-E in Cheese Country (p. 3): In Green County, Wisconsin, the long-term relationship between the dairy co-op that owns the Maple Leaf cheese factory and the business that owns the cheese-making equipment will end on December 7.

Farmers Encouraged to Sign Up for CFAP 2 Payments (p. 3): In late September, USDA announced another round of payments to producers. Dairy farmers may sign up to receive $1.20/cwt. on their milk volume for April-December 2020.

Foremost Farms Finally Releases Pug-Ugly 2019 Financial Audit (p. 4): Foremost Farms’ members finally rcceived an audit of their cooperative’s financial performance for 2019. The co-op took a terrible financial beating, and was forced write-down $57 million of members’ equity. That write-down erased 45% of members’ equity in the co-op. Foremost continus to operate in violation of its financial covenants with its lender, CoBank.

Dairy Farmers Urged to Sign Up for DMC for 2021 (p. 4): All the uncertainty ahead for dairy means that dairy farmers should re-look and sign up for the Dairy Margin Coverage program for 2021.

Milk PIC Tests: No Scientific Basis for Milk Quality Deducts (p. 5): Paris Reidhead unveils a shocker: There is scientific basis for claims that the Preliminary Incubation Count (PIC) test is a valid measure of farm milk quality. Reidhead cites analysis from experts at Cornell University’s Milk Quality Improvement Program. The Milkweed estimates that over the past 15 years, U.S. dairy farmers have seen over $100 million deducted from their milk checks due to poor PIC test results.

NY Dairy Farmers’ Check-off $$$ Fund Butter-Like Spread that’s 80% Water (p. 5): Paris Reidhead reports on a Cornell University research project –funded by dairy farmers’ check-off dollars – that has created a butter-like “spread” that’s comprised of 80% water and 20% milk proteins. Huh?

2020 Tax Planning Vital, Due to Gov’t Payments (p. 6): Jan Shepel draws upon the expertise of a farm tax consultant. Advice: farmers should start year-end tax planning soon, but some key questions remain unanswered by the IRS.

Depooled Class III Milk Boosts “Negative PPDs” in Several Regional Federal Milk Orders (p. 6): October 2020 saw another round of depooling of cheese milk from federal milk orders. That depooling removed hundreds of millions of dollars from that month’s federal milk order revenue pools.

Bradley Taylor, Jr., DFA Regional Director from Mississippi, Bails Out (p. 7): A recently departed DFA regional director from the Southeast shares his insights about how that co-op operates.

Cattle Prices Cash While Consumers Continue Paying Record Beef Prices (p. 8): The trend lines go two directions: prices paid for slaughter cattle go down, while consumers are paying all-time record prices for beef.

2020: U.S. Resumes Imports of Fresh & Frozen Beef from Brazil (p 8): Beef imports from Brazil have helped boost supplies and depress cattle producers’ prices in 2020.

The Rise of JBS: A Brief History of Corruption and Scandal (p. 9): Journalist Peter Kane details the sordid history of JBS – the world’s largest meat slaughter firm.

Numerous Lawmakers Ask USDA t Crack Down on JBS (p. 10): USDA Secretary Sonny Perdue has turned a deaf ear to complaints from elected officials about JBS’ operations in the U.S.

DOJ & SEC Settle with JBS’ International Corruption Scandal (p. 10): In October, JBS and its Pilgrim’s Pride chicken subsidiary settled to investigations with the federal government.

Ocean Transport of Dairy Livestock – Chapter II (p. 11-12): Stephen R. Le Van, V.M.D., continues his series on trans-oceanic shipping of U.S. dairy livestock.

Uncertainty Reigns: Cheddar Falls from Too-High Peak, Butter and NFDM Also Down (p. 13): Pete Hardin surveys the current dairy commodity picture.

2020: Year of the Missing Milk Check B-I-L-L-I-O-N-S (p. 14): Grand larceny without precedent has hammer dairy farmers’ milk checks in 2020 …and the year isn’t over.

On-farm milk supply signals needed in these uncertain times (p. 15): Pete Hardin explains the need for produces and their milk buyers to establish clear signals on how much farm milk is needed.

WI Dairy Farmer Raised $$$ to Move Cheese & Dairy Products to Consumers (p. 16): Dairy farmer Andy Leonard (Blanchardville, WI) raised thousands of dollars last spring to move dairy products consumers. Andy and his family were spurred to publicity about millions of gallons of farm milk being dumped last March and April.

Vil$ack’s Side-Gig Monthly $$$ Plunge; But Net for 2020 Stands at $148,475 (p. 16): Why does the head of the U.S. Dairy Export Council need a side-job, shilling for bankrupt opioid drug manufacturer Purdue Pharma? So far in 2020, Vil$ack has raked in $148,475 from Purdue Pharma, to supplement his big salary at USDEC.

October 2020 – Issue No. 495

Inside this month’s issue …

OUR STORIES OF THE MONTH (Click the blue title below to read "the complete story"):

Cattle Prices Crash While Consumers Continue Paying Record Beef Prices (p. 8): One of our “Stories of the Month.””

Series of Stories by a New Writer: Peter Kane (p. 8-10). One of our “Stories of the Month.”

Rumor: Borden Poised to Acquire Chemung, IL Fluid Plant (p. 2): Our sources indicate that Gregg Engle$, CEO of Borden Dairy, will be awarded the ex-Dean Foods fluid milk plant in northern Illinois.

October Class III Price Climbs to $21.61/Cwt. (Up $5.16) (p. 2): October’s Class III price topped the $20 mark in USDA’s milk orders. But “depooling” means that most dairy farmers won’t see anything close to that value for cheese milk in their settlement checks for October 2020.

D-I-V-O-R-C-E in Cheese Country (p. 3): In Green County, Wisconsin, the long-term relationship between the dairy co-op that owns the Maple Leaf cheese factory and the business that owns the cheese-making equipment will end on December 7.

Farmers Encouraged to Sign Up for CFAP 2 Payments (p. 3): In late September, USDA announced another round of payments to producers. Dairy farmers may sign up to receive $1.20/cwt. on their milk volume for April-December 2020.

Foremost Farms Finally Releases Pug-Ugly 2019 Financial Audit (p. 4): Foremost Farms’ members finally rcceived an audit of their cooperative’s financial performance for 2019. The co-op took a terrible financial beating, and was forced write-down $57 million of members’ equity. That write-down erased 45% of members’ equity in the co-op. Foremost continus to operate in violation of its financial covenants with its lender, CoBank.

Dairy Farmers Urged to Sign Up for DMC for 2021 (p. 4): All the uncertainty ahead for dairy means that dairy farmers should re-look and sign up for the Dairy Margin Coverage program for 2021.

Milk PIC Tests: No Scientific Basis for Milk Quality Deducts (p. 5): Paris Reidhead unveils a shocker: There is scientific basis for claims that the Preliminary Incubation Count (PIC) test is a valid measure of farm milk quality. Reidhead cites analysis from experts at Cornell University’s Milk Quality Improvement Program. The Milkweed estimates that over the past 15 years, U.S. dairy farmers have seen over $100 million deducted from their milk checks due to poor PIC test results.

NY Dairy Farmers’ Check-off $$$ Fund Butter-Like Spread that’s 80% Water (p. 5): Paris Reidhead reports on a Cornell University research project –funded by dairy farmers’ check-off dollars – that has created a butter-like “spread” that’s comprised of 80% water and 20% milk proteins. Huh?

2020 Tax Planning Vital, Due to Gov’t Payments (p. 6): Jan Shepel draws upon the expertise of a farm tax consultant. Advice: farmers should start year-end tax planning soon, but some key questions remain unanswered by the IRS.

Depooled Class III Milk Boosts “Negative PPDs” in Several Regional Federal Milk Orders (p. 6): October 2020 saw another round of depooling of cheese milk from federal milk orders. That depooling removed hundreds of millions of dollars from that month’s federal milk order revenue pools.

Bradley Taylor, Jr., DFA Regional Director from Mississippi, Bails Out (p. 7): A recently departed DFA regional director from the Southeast shares his insights about how that co-op operates.

Cattle Prices Cash While Consumers Continue Paying Record Beef Prices (p. 8): The trend lines go two directions: prices paid for slaughter cattle go down, while consumers are paying all-time record prices for beef.

2020: U.S. Resumes Imports of Fresh & Frozen Beef from Brazil (p 8): Beef imports from Brazil have helped boost supplies and depress cattle producers’ prices in 2020.

The Rise of JBS: A Brief History of Corruption and Scandal (p. 9): Journalist Peter Kane details the sordid history of JBS – the world’s largest meat slaughter firm.

Numerous Lawmakers Ask USDA t Crack Down on JBS (p. 10): USDA Secretary Sonny Perdue has turned a deaf ear to complaints from elected officials about JBS’ operations in the U.S.

DOJ & SEC Settle with JBS’ International Corruption Scandal (p. 10): In October, JBS and its Pilgrim’s Pride chicken subsidiary settled to investigations with the federal government.

Ocean Transport of Dairy Livestock – Chapter II (p. 11-12): Stephen R. Le Van, V.M.D., continues his series on trans-oceanic shipping of U.S. dairy livestock.

Uncertainty Reigns: Cheddar Falls from Too-High Peak, Butter and NFDM Also Down (p. 13): Pete Hardin surveys the current dairy commodity picture.

2020: Year of the Missing Milk Check B-I-L-L-I-O-N-S (p. 14): Grand larceny without precedent has hammer dairy farmers’ milk checks in 2020 …and the year isn’t over.

On-farm milk supply signals needed in these uncertain times (p. 15): Pete Hardin explains the need for produces and their milk buyers to establish clear signals on how much farm milk is needed.

WI Dairy Farmer Raised $$$ to Move Cheese & Dairy Products to Consumers (p. 16): Dairy farmer Andy Leonard (Blanchardville, WI) raised thousands of dollars last spring to move dairy products consumers. Andy and his family were spurred to publicity about millions of gallons of farm milk being dumped last March and April.

Vil$ack’s Side-Gig Monthly $$$ Plunge; But Net for 2020 Stands at $148,475 (p. 16): Why does the head of the U.S. Dairy Export Council need a side-job, shilling for bankrupt opioid drug manufacturer Purdue Pharma? So far in 2020, Vil$ack has raked in $148,475 from Purdue Pharma, to supplement his big salary at USDEC.

October 2020 – Issue No. 495

Inside this month’s issue …

OUR STORIES OF THE MONTH (Click the blue title below to read "the complete story"):

Yo-Yo Cycle Continues: CME Cheddar Prices Spiking Again (p. 1): One of our “Stories of the Month.””

Next Round of CFAP Payments to Farmers Announced: Dairy Producers’ Payout--$1.20/Cwt. for April-December ’20. One of our “Stories of the Month.”

Dean Foods Bankruptcy: Confusion & Chaos Continue (p. 2): Two sets of receivables (each around $500 million) and several hundred million in dairy plants’ sell-off have ostensibly disappeared. Now Dean Foods laws are seeking to “claw-back” money paid to vendors 90 days prior to the bankruptcy filing.

Sept. ’20 Class III Price: $16.43/Cwt. (Down $3.34) (p. 2): Lower Cheddar prices in USDA’s monthly price survey pulled own the Class III (cheese) milk price during September.

“New” Class I Base Price Formula “Came Up Short” in Summer 2020 (p. 3): In May 2019, with the approval of industry groups, USDA changed the formula for calculating monthly Class I (fluid) milk base price in the federal milk order program. For the first 14 months, that shift put a modest higher values on Class I. But in summer 2020, a train-wreck occurred: draining Class I incomes dramatically.

Sitts vs. DFA Case Settles; Details Scarce, But … (p. 3): The Class Action antitrust case set for trial in federal court in Vermont was settled at the last minute. Details are sealed, but we report the settlement price.

Who Benefits from Inequitable Cheese Milk Pricing??? (p. 3): We explore where this past summer’s depooled Class III value may have disappeared to.

1984-2020: Dairy Promotion Check-Off Drained +$9 Billion from Milk Checks (p. 4): Since its start, more than 36 years ago, the dairy promotion check-off has extracted over $9 billion from dairy farmers milk checks.

Kraft-Heinz Sells Many Cheese Products to Lactalis (p.4): The financially-struggling food products giant – Kraft-Heinz – has sold off its natural cheese product line to the French firm, Lactalis.

Opioid Side-Gig Has Netted Vil$ack $134,300 in ’20 (p. 4): The $1 million per year head of the U.S. Dairy Export Council, Tom Vil$ack, has earned an extra $134,300 so far in 2020 from his “night job” – monitoring opioid drug lawsuit relief for victims of the opioid scourge and their families.

“Systemic” Defenders try to Debunk Deep Dissatisfaction with FMMOs (p. 5): Sharp criticisms and calls for reform are targeting the federal milk order program. “Systemic” industry leaders are defending the milk order program. Of course, their clients are among the beneficiaries.

Bradley Taylor’s “Farewell Emil” to DFA’s Southeast Council (p. 5): Mississippi dairy producer Bradley Taylor exited DFA’s Southeast Council board and shifted to another milk market in September. We reprint Mr. Taylor’s “Farewell email.”

WI Research: Does a Whey Protein Aid Women’s Weight Loss & Bones? (p. 6): A recent state grant will allow UW-Madison Nutrition Science researcher Dr. Denise Ney to further explore the possible connection between a whey protein – GMP – and that protein’s possible benefits to women’s health that may include weight loss and bone health.

NZ’s Fonterra Dumping “White Elephant” Dairy Farms in China (p. 6): New Zealand’s largest dairy co-op is selling off its mega-dairy farms built in China – at big losses. Talk about a bad idea!

Insights from a Salty, Old Cow Doc: Stephen R. Le Van, V.M.D. (p. 7): A veterinarian who’s sailed on about 20 ocean shipments of U.S. dairy livestock starts a series on details of those exports.

USDA Awards RFID Tags Contracts Wants All Cattle RFD-Tagged by ’23 (p. 8): By 2023, USDA wants to mandate electronic ear tags for all cattle in the U.S. Jan Shepel details this proposal.

South Mountain Creamery Wins Skim Milk Labeling Battle vs. FDA (p. 9): Three generations of the Sowers family operate South Mountain Creamery in Maryland. They process their dairy herd’s milk. The federal Food and Drug Administration called their Skim Milk packages illegal, because their Skim milk did not contain artificial additive Vitamin D. With the help of a pro bono legal defense group, the Sowers family beat back FDA.

Let Producers Vote! Democratize the Dairy Check-Off (p. 10): Pete Hardin proposes the following changes in the next federal farm law: 1) Allow dairy farmers to have a one-farm/one-vote on the issue of whether or not to continue the dairy promotion check-off; and, 2) if that referendum passes, allow dairy farmers to vote on their regional directors serving on the National Dairy Promotion and Research Board. The Milkweed and the Pennsylvania-based weekly dairy paper, Farmshine, are committed to this project. More details next month!

DFA Ordered to Divest Ex-Dean Foods Plants: High-Level DFA Execs Among Interested Parties (p. 10): DFA is under orders to sell off three plants it acquired from Dean Foods. But high-level DFA executives are rumoredly among interested parties in acquiring plants in northern Illinois and northeastern Wisconsin.

Member Explain R-CALF USS’s Opposition to RFID Ear Tags (p. 11): The cattle producers’ group R-CALF USA strongly opposes USDA’s efforts to mandate RFID ear tags by 023. Jan Shepel interviews one of those opponents.

Western Weather & New MI Cheese Plant Likely Portend Stronger NFDM Prices (p. 11): The Milkweed projects stronger prices for nonfatdry milk in coming months. WHY? Domestic and global demand are strong. Severe drought haunts many key western milk producing regions. And a big, new cheese plant is set to go on line in Michigan. That plant will soak up milk supplies previously directed to nonfat dry milk plants.

Are Dairy Processors That By Milk from DFA “Sleeping with the Enemy?” (p. 12): Dairy processors buying farm milk from DFA face the challenge of competing for finished products’ sales against their supplier. And the supplier can “bleed” members’ milk checks to help cut costs and covser inefficiencies.

NY Milkshed’s “Ancient History” Relevant Today (p. 12): In the 1950s and 1960s, New York City fluid milk processors struck out into the country to obtain their own milk supplies … after buying their milk from a competing fluid processor/supplier – the Dairymen’s League.

At NY Dispersal, DFA “Quota” Worth More than Cows (p. 12): At a recent dairy herd dispersal in New York’s Finger Lakes region, sales of dairy cattle averaged $1,300 a head. But buyers paid $1,900 (on a per cow basis) to buy DFA’s Northeast “quota.”

CME Cheddar Prices Soar, NFDM Strengthens Nicely; Butter Slides (p 13): We review recent dairy commodity events.

Craig Gordon Details QIP Battle, Producers’ Frustrations in California (p.14): California dairy producer and hay broker Craig Gordon answers questions about recent turns of events in the battle by dissatisfied producers to end California’s milk “quota” program.

The case of the missing milk check money (many hundreds of millions) (p. 15): Pete Hardin “follows the money” (that is, money not paid to dairy farmers) during the past year. Very deep research!

U.S. Drought Monitor (p. 16): The latest U.S. Drought Monitor map continues to show serious drought conditions hitting numerous milk--producing regions in the United States.

Last Month’s Article Draws Angry Letter from Kalona Farms/Small Farms (p. 16): Last month’s article about organic dairy producers’ dissatisfaction with their new milk market with Kalona Farms/Small Farms Program drew an unhappy response from the owner of those firms. We note some of his criticisms and our responses.

September 2020 – Issue No. 494

Inside this month’s issue …

OUR STORY OF THE MONTH (Click the blue title below to read "the complete story"):

Bankruptcy “Maggot” Demands Claw-Back from Dean Foods Milk Suppliers (p. 1) & Derecho Windstorm Batters Wide Swath Across Central Iowa (p. 6)

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Bankruptcy “Maggot” Demands Claw-Back from Dean Foods Milk Suppliers (p. 1): A must-read “Story of the Month.”

Confusing Yo-Yo Prices for Cheddar and Milk Continue (p. 1): Cheddar cheese prices at the CME have been up and down repeatedly this year. Farm milk prices have followed ... sort of. Pete Hardin discusses what’s behind these price swings.

Iowa Crops: Before and After the Derecho (p. 2): Jan Shepel compares pre- and post-derecho analyses of Iowa’s corn and soybean crops.

August ’20 Class III Price Drops $4.77, to $19.l7/Cwt. (P. 2): Declining dairy commodity prices pulled down manufacturing milk prices in USDA’s federal milk orders in August.

Adverse Weather: Asia Facing Serious Food Challenges (p. 3): Severe weather events – ranging from drought to floods – have disrupted numerous Asian nation’s food production this year.

WI Dairy Farmer’s Ag Policy Delusion at GOP Convention (p. 3): Wisconsin dairy farmer Cris Peterson spoke at the recent Republican national convention. She extolled the benefits of the Trump administration’s farm and trade policies. Others disagree.

Gregg Engle$ Latest Ivy League MBS Chicanery: Borden Dairy Plants Now All Separate Entities (p. 3): That master of financial delusion, Gregg Engle$, has split up the pieces of his recently acquired Borden Dairy empire. All Borden milk plants are now self-standing corporations. All the better to bankrupt the poor performers and not impair the rest of those assets.

Ex-Horizon Organics Producers Soured on New Milk Buyer in NY (p. 4): Earlier this year, dozens of Northeast dairy farmers selling their milk to Horizon Organics (a subsidiary of Danone) were pushed into selling their milk to an Iowa firm – Kalona Farms. After about six months with the new milk buyer, many of those organic producers are frustrated. The biggest frustration: nearly-impossible milk quality standards to earn premiums.

Retail Dairy Sales Momentum Slows in August (p. 5): August 2020 witnessed a dramatic slow-down in retail dairy products’ retail sales momentum. Of course, one month does ot a trend make. But the shaky status of the United States’ economy is good reason to pay attention to fundamentals, like retail dairy sales.

Derecho Windstorm Batters Wide Swath Across Central Iowa (p. 6): A must-read “Story of the Month.”

An Iowa Dairy Farmer’s Experience with the August 10 Derecho (p. 7): Dairy farmer/writer Jan Shepel profiles the experience of Iowa dairy producers – Bryan and Kristen Schanbacher – who saw their free-stall barn collapsed by the August 10 fierce windstorm that hammered central Iowa.

DFA: How Many Hundreds of Million$ in Legal Settlements? (p. 8): Pete Hardin lists all the antitrust and price-fixing lawsuits that DFA has settled over the years. Hardin puzzles how much these settlements, plus legal fees, have cost DFA’s members.

USDA’s National Organic Program: New Rules to Fight Fraud (p. 8): Organic grain consultant John Bobbe writes (skeptically) about USDA’s proposals to tighten up rules regarding fraud in organic agriculture and foods.

Dairy Livestock Prices Varying (p. 9): Springing heifer prices are stronger in Wisconsin and Ohio, but flat in Michigan. Where crops and competition for milk are better, then springing heifer pries are better.

NZ Livestock Ship Sinks, Killing 37 Crew Members and 5,867 Bred Heifers (p. 9): On September 2, a violent typhoon sunk a livestock carrier with nearly 6,000 bred heifers heading from New Zealand to China. All but two crew members are missing.

Vilsack’s Opioid Side-Gig Earned $93,250 as of July ’20 (p. 9): Through July 2020, Tom Vilsack – head of the U.S. Dairy Export Council – had been paid $93,250 in 2020 as the “monitor” for opioid drug manufacturer Purdue Pharma to reach out to drug victims and their families. Egad. Vilsack is already paid around $1 by dairy farmers to boost dairy exports.

CME Cheddar Prices Rebound, Milk Powder Prices Strengthen (p. 10): Pete Hardin reviews the pas month’s dairy commodity trends. Watch milk powder!

Absurd “Claw-Back” vs. Dean Foods Milk Suppliers (p. 11): How crazy! Lawyers suing firms that sold milk to Dean Foods want to recover 20% of all payments made by Dean Foods for the 90 days prior to that firm’s November 12 bankruptcy filing.

Common Consumer Items Becoming Scarce (p. 11): Scarcity is becoming a fact of life. From sandwich basics to truck tires, air conditioners … and even 2x4s – supplies are hard to find.

Savoring & Saving Late Summer’s Bounty (p. 11): Pete Hardin offers two tasty recipes for enjoying late summer garden bounty. Got tomatoes?

U.S. Corn, Soybean Crops Drop a Bit, But Still Look Better Than Last Year (p. 12): Jan Shepel reviews data on corn and soybean crops from USDA’s latest Crop Progress report. Of course, “better than last year” doesn’t mean a whole lot, when we’re talking about 2019’s crops as the basis.

September 10 Drought Map Shows Western Conditions Worsening (12): Drought conditions continue to worsen in western states. Most of the western half of the country is caught in drought – including major areas experiencing severe drought.

Dumping Producers Standard Behavior for Horizon’s Gregg Engle$ (p. 12): No surprise that Horizon dumped organic producers in the Northeast. The “Big Cheese” at Horizon – Gregg Engle$ -- has a long history of dumping producers into inequitable marketing alternatives.

DFA Closes New Cheese Plant in Western New York (p. 12): In early February 2018, DFA opened the Western New York cheese plant. In mid-summer 2020, DFA closed that facility. Huh.

August 2020 – Issue No. 493

Inside this month’s issue …

OUR STORY OF THE MONTH (Click the blue title below to read "the complete story"):

U.S. Antitrust Chief Clarifies Capper-Volstead Exemptions Re: DFA (p. 6)

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National Economic Uncertainty Clouds Dairy’s Forecast (p. 1): The escalating Covid-19 pandemic threatens the U.S. with additional closings of restaurants. The $600/month supplemental payments to unemployed citizens have dried up. As many as 40 million Americans face inability to pay rents or mortgages. We face tough times ahead.

Economic Uncertainty Pulls Down Cheddar & Butter Prices (p. 1): Marketers are worried about future months dairy demand, as the nation=n’s economy threatens to go into a tailspin. Marketers don’t want excess capacity of inventories.

Cheesemakers Squeezed by Yo-Yo Milk Prices and Inventory Values (p. 2): Cheesemakers face a tough financial balancing act: top-dollar costs for June-July Class III milk as cheese inventory values have dropped nearly $1.50/;b. since July 13.

July ’20 Class III Hits All-Time Record: $24.54/cwt. (p. 2): Take a good look.

‘Got Milk?’ Campaign Returns in Different Form as Consumer Trends Change (p. 3): Jan Shepel reports on the changing dairy promotion scene.

Ice Cream, Yogurt, Sour Cream & Cottage Cheese: Big Gains in Late Spring ’20 (p. 3): Consumer demand for these four dairy products have climbed nicely since the Covid-19 problems hit the United States. These sales gains mirror wider changes in this nation’s consumers’ food habits – more meals prepared and eaten at home.

DMI Hires a ‘Director of Dairy Scale for Good,’ Resume Looks Impressive if You Want to Keep on Diluting Dairy (p. 4): We reprint two articles that originally appeared in Farmshine, written by Sherry Bunting, that expose the latest (and perhaps the worst) waste of dairy promotion check-off dollars. Dairy Management, Inc. has hired a character to tell dairy what’s “good” – except that clown (Caleb Hunter) has a long history of championing “fake milk” and “fake meat.”

New Face, New Position, Dubious Credentials. ‘Undeniably Dairy” Affirms ‘Milk Without Cows’ (p. 4): This is the second of Sherry Bunting’s articles exposing DMI’s hiring a “fake milk”/”fake meat” promoter to help lead dairy towards “good.”

Central NY Co-op & Plant Embrace Sustainability, + A2A2 Milk (p. 5): The Cayuga Marketing co-op built a massive dairy ingredients plant in 2014 near Auburn, New York. That plant is Caytuga Milk Ingredients. That plant is part of a strategy employed by the co-op to farm sustainablty. Three member farms are producing A2A2 milk – ingredients from which go world-wide.

U.S. Antitrust Chief Clarifies Capper-Volstead Exemptions Re: DFA (p. 6): Our “Article of the Month.” Click the headline.

DFA Dismisses DOJ Antitrust Statement as Irrelevant to VT Case (p. 7): In court filings and public statements, DFA has dismissed the DOJ Antiotrust Chief’s “Statement of Interest” to the Federal District Court in Vermont, where DFA is scheduled for trial on September 30.

Legal Scrutiny of DFA Piling Up … (p. 7): DFA is getting a number of closer looks at its anti-competitive behaviors in the U.S. dairy industry.

In 2006 Court Case: DFA Didn’t Want to Overcompensate Orphans (p. 7): At a 2006 trial seeking damages for a pair of children who were made orphans when their mother was killed by a DFA milk truck, a lawyer for the co-op warned jurors not to award those orphans too much money in damages. Why? The lawyer worried that the kids’ motivation would be ruined if they were paid too much money as compensation for the loss of their mother. How many farm kids’ dreams has DFA shattered by draining their parents’ milk checks and putting those farms out of business?

Planting & Harvesting Winter Forages Helps Boost Total Forage Supplies (p. 8): With forage supplies again short in the Northeast, Paris Reidhead extolls the merits of of planting and harvesting winter forages to boost farms’ forage supplies.

Dairy Livestock Report (p. 9): Cull prices rising. Demand for springing heifers improving slightly.

Cheddar Cheese Prices Crash Hard at CME; Butter Also Declines (p. 10): So far, 2020 has see dramatic shifts in commodity Cheddar prices at the Chicago Mercantile Exchange. In the past month, block Cheddar prices at CME have collapsed from $3.00/lb. (July 13) down to $1.54 (August 11).

June/July ’20 price “disappearing act” begs FMMO reform (p. 11): Pete Hardin details what’s needed to reform federal milk orders. FMMOs have failed to deliver the goods to producers, as farm milk prices have generally failed to reflect higher Class III (cheese) milk values for June production … with more “disappearing milk mone” ahead for July’s milk payments.

Give DFA the “Ma Bell” treatment (p. 11): The U.S. Department of Justice ought to break up DFA into several operating regions and make those units run distinctly – no common finances, no common directors, no common management, etc. Two historic parallels offer models: the 1970s breakup of the Bell system, and Bobby Kennedy’s taking over the Teamsters Union in 1960s as a “corrupt organization.”

Vilsack’s side-gig earnings now up to $69,875 (p. 11): That sly, double-dipping ol’ fox, Tom Vilsack, has piled on $69,875 so far this year from his second job – representing the bankrupt, opioid manufacturer Perdue Pharma’s outreach to compensate victims of that drug. In 2018 – the last year for which Vilsack’s compensation as head of the U.S. Dairy Export Council has been revealed, he netted just shy of $1,000,000.

Latest Map Shows Expanded Drought Conditions, Especially in West (p. 12): During the past month, drought conditions in the U.S. have worsened, particularly in the West. But states such as Iowa, Michigan, and Ohio are also almost entirely covered by drought conditions.

Heifer Growers Left Out of Pandemic Relief Fund (p. 12): A Missouri farmer who raises dairy heifers was shocked to learn that his enterprise was not eligible to receive payments from USDA’s COvid-19 relief program. Cattle producers qualified. Dairy producers qualified. Even strawberry growers qualified. But not dairy heifer raisers.

July 2020 – Issue No. 492

Inside this month’s issue …

OUR STORY OF THE MONTH (Click the blue title below to read "the complete story"):

Unpredictable Future: Dairy in the “Age of Precarious” (p. 1)

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Unpredictable Future: Dairy in the “Age of Precarious” (p. 1): Holy Cow! On July 13, block Cheddar prices at CME hit $3.00 per pound! Pete Hardin reviews 2020 cheese-pricing events to date, and lays out the alternative, “good scenario/bad scenario” possibilities for upcoming months.

Will Producers See June 2020’s Sky-High Class III Prices? (p. 1): Yes, June’s Class III (cheese) milk price hit $21.04/cwt. But how much of that value will producers see in their final milk checks for June? Those two old buga-boos – “Negative PPDs” and depooling – threaten to siphon milk money from June’s settlement checks.

Producers Should Study Price Protection Strategies Even as Milk Price Rise (p. 2): Using agricultural bankers at the State Bank of Cross Plains as sources, Jan Shepel reviews the array of price protection options available to dairy farmers. Lenders strongly urge dairy producers to strategically protect their milk prices during this unpredictable year.

Court Okays Borden Dairy Assets Sale to Engle$, KKR (p. 2): Gregg Engle$, former long term CEO of Dean Foods – whose mismanagement is widely credited as leading to Dean Foods’ ultimate failure – is the lead dog among a pack of investors newly crowned as owners of Borden Dairy.

June 2020 Class III Price Hits $21.04/cwt. (+8,90) (p. 2): June 2020 saw the single greatest month-to-month increase in the Class III (cheese) milk price – up $8.90/cwt.

Beef. Pork. Broilers. Do U.S. Consumers Face a “Meat Pricing Conspiracy?” (p. 3): Federal officials are investigating events in the meat industry – beef, pork and poultry. Ironically, some of the same firms are giants in more than one of those areas. Conspiracy? Will the gov’t do anything? Or just go through the motions once again? The feds’ track record enforcing antitrust laws in dairy is not comforting.

Welcome Back, Mr. Engle$ (NOT!) (p. 3): Gregg Engle$ is the lead investor in a consortium that has acquired Borden Dairy’s assets through bankruptcy. Engle$’ debt-driven, manic growth while at Dean Foods is widely credited with causing that firm’s demise.

RICO (Anti-Mafia) Lawsuit vs. DFA Filed in New York State (p. 4): RICO is a complex sector of federal law, originally designed as a tool for federal prosecutors fighting the Mafia. On behalf of several clients, a NY lawyer has filed a RICO lawsuit against Dairy Farmers of America.

Arkansas AG Requests DFA Address Low Pay Prices, Restricted Markets (p. 5): Arkansas’ Attorney General Leslie Rutledge has quietly been investigation Dairy Farmers of America for several months, following complaints prices paid by DFA to Arkansas dairy farmers. Rutledge’s office has hired a high-caliber attorney with dairy antitrust experience involving DFA to research the matter. Interesting ….

Threats to Terminate Arkansas Members? DFA Can’t Learn (p. 5): Responding to complaints by Arkansas dairy farmer members, DFA staff and at least one director have threatened to terminate membership for those troublemakers. Not so funny thing … 25 years ago, DFA’s predecessor co-op used that same crowbar against a Louisiana dairy farming husband and wife. DFA ended up paying over $600,000 in legal costs and damages to Carole and Clayton Knight, when the Knights filed suit against the co-op.

DFA Running Chemung, IL Plant (p. 6): Dairy Farmers of America is operating the former Dean Foods fluid milk plant west of Chicago, awaiting sale to another buyer. DFA started out cost-cutting by cutting weekend overtime bonuses to union employees.

Actual Human Resources are a Top Priority at The Specialty Cheese Co. (p. 6): For the second straight month, Jan Shepel profiles The Specialty Cheese Company of Reeseville, Wisconsin. This month, Jan writes about investments in the workforce development that the owners have made. Attracting and keeping employees in rural Wisconsin can be challenging, due in great part to rural social issues.

Certified Crop Advisor: Clovers Eclipse Alfalfa (p. 7): Paris Reidhead reviews experiments conducted by New York State certified crop advisor Tom Kilcer and others at Cornell regarding red clover’s improved nutritional merits, compared to alfalfa.

Big Ag fails Population Genetics 101 (p. 7): Paris Reidhead walks readers through the history of glyphosate and dicamba herbicides. He emphasizes how plant species developed resistance to years of Roundup®. That problem forced agri-chemical companies to revive dicamba – an old herbicide with a nasty trait – “drifting” from sprayed plants to adjoining fields during hot, humid conditions.

Some Dairy Livestock Price Start Improving Modestly (p. 9): With a big milk price upswing in the works, somewhat better interest is being shown at dairy auction sales. Heifers of breeding age and older are viewed as scarce.

Foremost Farms to Offer Office Building (p. 9): Foremost Farms – Wisconsin’s largest indigenous dairy farmers cooperative – is putting its office building for sale. That building is in rural Baraboo – located across from a Native American casino. Let’s hope the Native American’s have some extra wampum.

Vilsack’s Side-Gig Earns $55,625 (Through 5/5/20) (p. 9): Tom Vilsack, the $1 million per year genius guiding U.S. dairy exports, has earned over $55,000 so far in 2020 as “monitor” for disgraced, bankrupt opioid drug manufacturer Purdue Pharma’s outreach to victim of its drug-peddling. Guess $1 million a year isn’t enough for the former USDA Secretary.

“Depooling & Negative PPDs – a Game of “Keep Away” (p. 11): Pete Hardin compares current milk-pricing rules to a kid’s game of “keep away” – where some players throw the ball in a fashion to prohibit another player or players from catching it. June 2020’s huge -- $8.90/cwt.—increase in Class III (cheese) milk prices will likely lead to significant disappearance of income from many producers’ milk checks, through “depooling” and negative PPDs. Watch this one!

4/1/04 Dairy Antitrust event: Knight’s tale brought tears (p. 11): 16 years ago, The Milkweed co-hosted a dairy antitrust meeting that drew 275 attendees. Some came to the Syracuse, NY event from as far away as California and Maine. The most compelling speaker was Carole Knight, who told how Mid-America Dairymen (DFA’s predecessor co-op), wrestled control of over 98% of Louisiana’s farm milk supply and then started docking members’ milk checks by $1.00 to $1.25/cwt. Knight was elected by her neighbors to sit on the local Mid-Am board. Mid-Am didn’t like her questions, and illegally terminated the Knights’ membership – forcing sale of their dairy herd. Carole’s story of how Mid-Am cut the guts out of the once-vigorous dairy farming community drew over half of the audience to tears. Mid-Am, and later DFA, have repeated that tactic in many dairy communities across the country.

Drought Parching Western Half of U.S., Mid-East & Northeast (p. 12): We reproduce the July 8, 2020 U.S. Drought Monitor map. That map shows major portions of the western half of this country in drought. Meanwhile, in recent weeks, drought conditions have spread in the Northeast and parts of the Mid-East.

June 2020 – Issue No. 491

Inside this month’s issue …

OUR STORIES OF THE MONTH (Click the blue title below to read "the complete story"):

Three Important Analyses inside: Cream Multiples, Midwest Spot Prices & Depooling (p. 1)

Down Like a Rock Up Like a Rocket (p. 1)

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Recent Yo-Yo Cheddar Prices: Down Like a Rock Up Like a Rocket (P. 1): Page 1 is one of two included as our “Stories of the Month.”

Three Important Analyses inside: Cream Multiples, Midwest Spot Prices & Depooling (p. 1): Also included as a “Story of the Month.”

Dean Foods Failed April Payments to Many Suppliers & Vendors (p. 2): Dean Foods spectacularly failed to pay many vendors and suppliers for April 2020 obligations. April was Dean Foods last month of operations.

DFA Members Absorb “Coronavirus” Deducts (p.2): Members of Dairy Farmes of America saw varying deducts taken from their April 2020 milk checks to cover coronavirus-related marketing costs. The biggest hit was absorbed by DFA members in Wisconsin, who saw deducts of $1.98/cwt. just for coronavirus.

May 2020 Class III Price Down to $12/14/cwt. (p. 2): May should be the absolute bottom for Class III (cheese) milk prices in 2020.

Tom Vilsack’s “Moonlighting” for Purdue Harma Earned $37,650 in April (p. 3): A $1 million per year job atop the U.S. Dairy Export Council isn’t enough for Tom Vilsack.   See this as “Story of the Month.”

Mike McCloskey Rumored Top Bidder for Dean Foods’ Chemung, IL Plant (p. 3): Word is that Indiana mega-dairy operator Mike McCloskey has the inside track to acquire the Dean Foods’ milk plant in northern Illinois. (A story of the month.)

Milk Fat Scarce: Cream Multiples Spie Across the Country (P. 4): In a few short weeks, cream supplies have become very scarce and pricey, particularly in the Northeast. Ice cream sales at supermarkets are way up!

I Can Hear Dairy Producers’ Howls of Frustration a Month in Advance … (p. 4): Dick Bylsma, a long-time dairy professional, details the coming storm of complaints when many dairy farmers see their June 2020 settlement checks. Why? “Depooling” – the legal practice of disassociating Class III (cheese) milk supplies from monthly federal milk order revenue pools – promises to really drain a lot of income from June 2020 milk prices.   Bylsma is currently national marketing director for the National Farmers Organization.

FSA Issues First Payments to Farmers in COVID-=19 Assistance Program (p. 5): Agricultural produces who signed up early in late May have started receiving payments from the federal government under the “Coronavirus Food Assistance Program” (CFAP). Jan Shepel covers many of details of this new federal assistance program in this story.

March-April Chaos Boosted Cheese Export Efforts, U.S. Buyers in Frenzy Finding Fresh Product (p. 5): In March-April, when dairy demand collapsed due to restaurants and schools closing, many West Coast cheese plants lined up large volumes of exports, some of which run into July. Now, as domestic demand has been greatly restored, some distributors are having problems finding any cheese.

Is U.S./China Trade Deal in Trouble? (p. 6): Earlier this year, negotiators for the U.S. and China completed “Phase 1” of a trade plan that attempted to ease economic tensions between the world’s two largest economies. But since coronavirus hit, China has been blamed by the Trump administration and relations between the two nations are at their worst in more than 40 years. China cannot fulfill terms of the trade deal, and the Trump administration is acting like the deal is a lesser priority.

1981 Agri-Mark Consent Decree: Good Precedent for Today’s DFA (p. 6): Back in 1980, a newly-formed giant coop (Agri-Mark) in New England proposed to buy the region’s largest fluid milk processor (H.P. Hood). But the U.S. Justice Department intervened (perhaps the last good thing ihas done in dairy). DOJ compelled Agri-Mark to agree to a Consent Decree that forced the co-op to sell milk to other buyers on the same terms as milk was sold to Hood. Pete Hardin opines that the 1981 Agri-Mark Consent Decree would be a perfect model for today’s DFA.

But Co-ops Unpaid (p. 7): Yes, Dean Foods finally paid some April ’20 milk obligations. But those independent farmers did not have their third party assignments honored. Dairy co-ops waiting for settlement checks from April are still waiting.

Recent Letter to Dean Foods’ Creditors: No Reason for Cheers (p. 7): Dean Foods’ unpaid supplies and vendors received a late May letter that stated they might be paid by mid-June.   However, that same letter warned that these creditors’ held junior positions, relative to other creditors. Don’t hold your breath, in other words.

Foremost Farms Closing Chilton, WI Plant; No Interest in Reedsburg (p. 7): Financially-troubled Foremost Farms – Wisconsin’s biggest indigenous dairy co-op – has announced it’s closing the antiquated Chilton, WI cheese plant – a relic from WWII. Meanwhile, a series of parties has looked at Foremost’s butter plant at Reedsburg and so far, no potential buyers are interested.

Scharfmans’ Specialty Cheese Company Built on Niche Markets (p. 8-9): In the early ’90s, Paul Scharfman and Vicki Semo Scharfman bought a small cheese plant in eastern Wisconsin. Today, their Specialty Cheese Company is doubling its size, gearing up to meet increased demand for its niche cheese products. Son David has developed and marketed an amazing baked cheese “bar” that sold over $3 million worth of product its first year.

Hunger Task Force Announces June Dairy Month Recovery Grant Program (p. 9): Wisconsin’s Hunger Task Force is seeking private donations to match a $1 million private grant.

West=View Dairy: from Soil to Scoop (Ice Cream)and Everything In between (p. 10-11): Paris Reidhead profiles the Westendorp family of Nashville, Michigan. They milk cows and process their milk into milk, ice cream and butter at their adjoining MOO-Ville Creamery. Recently, the herd became 100% A2A2 genetics. Very interesting!

Disappoints About USDA Food Box Program (p. 11): Congress quickly funded emergency food program to distribute food to families that have lost incomes. However distributing products through food boxes and to food pantries has many, many problems – some of which Jan Shepel details.

Scenic Central Milk Producers Cooperative is Marketing More Milk than Ever (p. 12): Dairy farmer/writer Jan Shepel reports on the March 2020 annual meeting of Scenic Central Milk Producers, which is based in Wisconsin.

U.S. DOJ Seeks Info from Top 4 Beef Packers (p. 22): Folks in cattle country are in an uproar over the spread between what meat packers are paying for slaughter cattle and consumers’ skyrocketing hamburger prices at retail. Prodded by farm state political officials, the federal Department of Justice has requested data from the top four meat packers. 80% of beef slaughter is controlled by four firms – some of which operate beef feedlots.

Cheddar Prices Rocket to the Moon; Butter Also Sees Gains (p. 13): The past month has seen the wildest upswing in commodity Cheddar prices in history. We try to make sense of recent events. As restaurants and businesses reopen following coronavirus shut-downs, demand is very strong. And export demand for cheese is also strong.

Dairy Livestock Picture: Money Tight Heifer Numbers Light (p. 14): Dairy livestock auctioneers we talk with report light numbers of available heifers, but also light interest among buyers right now, since cash flow on many dairies is tight. Looking ahead, we see extremely optimistic about heifer prices in the second half of the year – as milk prices improve.

Food Lion and MD & VA Milk Producers File Antitrust Complaint vs. DFA (p. 14): Food Lion – a supermarket chain with over 1,000 outlets in the Southeast – and Maryland & Virginia Milk Producers Co-op Assn. have filed an antitrust lawsuit in federal court in North Carolina against DFA’s gaining control of all Dean Foods milk plants in the Carolinas. Food Lion and MD & VA are doing what the U.S. Dep’t of Justice’s Antitrust Division ought to have done!!!

Time to restrict DFA’s milk empire (p. 15): Dairy Farmers of America now is the nation’s biggest milk producers’ cooperative and also the biggest fluid milk processor. Given DFA’s historic penchant for anti-competitive, evil-doings, Pete Hardin offers a simple solution to restrain DFA. That solution: emulate the 1981 Consent Decree forced upon Agri-Mark by the United States Department of Justice. That Consent Decree forced Agri-Mark to offer milk in the same terms to other buyers as it charged its fluid milk subsidiary – H.P. Hood. If DFA is not similarly inhibited, LOOK OUT!

Direly needed: forensic audit of Dean Foods’ finances (p. 15): Twice in six months, Dean Foods has failed to pay its suppliers and vendors. After the firm declared bankruptcy in November 2019, a statement appeared on the company’s website that it intended to pay in full all firms that continued to do business while Dean Foods operated in Chapter 11. Next lie. Dean Foods failed to honor massive obligations accrued during April 2020, -- its final month in business. HUNDREDS OF MILLIONS OF DOLLARS REMAIN UNACCOUNTED FOR. Pete Hardin urges that a forensic audit of Dean Foods finances be conducted.

Recent Retail Scanner Data Shows Spectacular, Weekly Dairy Products Sales Gains (p. 16): Through a most valuable source, we are able to report weekly supermarket check-out scanner data for a wide array of dairy product sales for the past three months. These data reflect a tremendous shift in consumer purchasing habits, as more home-cooked meals are the order of the day. Butter, ice cream, and cheese sales are all way, way up!

May 2020 – Issue No. 490

Inside this month’s issue …

OUR STORIES OF THE MONTH (Click the blue title below to read "the complete story"):

Hunger Task Force Responds To Dairy and Food Crises (p. 6)

Sweetman Family Diversifies Dairy, Adding Meat Sales & Farm Stand (p. 7)

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Dairy Commodity Prices Start to Rebound from the Pits (p. 1): After a horrendous April, dairy demand is gaining traction and milk supplies are tightening in several regions (Midwest, Northeast and Mid-East). Commodity prices have started crawling out of the April basement, but there’s a long way to go.

Late April: NZ Cheddar Prices Double CME’s (p. 1): Hard to believe, but in late April, Cheddar prices in New Zealand were DOUBLE the cash-market prices traded at the Chicago Mercantile Exchange. We explain …

Walmart, USDA Shoot Down Class I Price Mover Proposals (p. 2): A group of dairy cooperatives sought to floor the Class I (fluid) milk price base, first through their Capper-Volstead Act powers. But Walmart shot down “Plan A.” Next, “Plan B” sought an emergency hearing from USDA to floor Class I prices via the federal milk orders. But USDA quickly turned thumbs down on that proposal.

April Class III Price Plunges $3.18/Cwt., Down to $12.07 (p. 2): April’s manufacturing Class prices took a big hit, according to data released by USDA’s federal milk order system.

Butter Values, Cream “Multiples” Scrape Bottom, Before Early May Rebound (p. 3): April 2020 saw butter prices collapse. And demand for cream was so light that cream sellers often had to discount their products by 50% to move the “stuff.” Mercifully, early May has witnessed upticks in both butter prices and cream demand.

Mid-’19: U.S. Justice Department Erased Consent Decrees That Bound DFA (p. 3): Coincidence or conspiracy? In June 2019, the Antitrust Division of the U.S. Department of Justice dismissed all Consent Decrees that restricted potential anticompetitive behaviors by DFA. These restraints dated back to the 1970s and 1980s, but concerns about the co-op’s antics have never been greater.

Irresponsible: Co-op Annual Meetings Lacking Financial Audits (p. 3): Here in 2020, with many dairy farmers selling tens of thousands of dollars of milk each month to their co-ops, and some co-op members holding hundreds of thousands of dollars in “equities,” some dairy co-ops don’t even have audited financial reports available at their annual meetings.

Bankruptcy Court Oks Sales of Dean Foods’ Assets (p. 4): Dairy Farmers of America (40-plants) and Prairie Farms (8 plants) emerged as the big winners in bidding for Dean Foods’ bankruptcy. Examples: Foremost Farms and Organic Valley.

DFA’s 2019 Financial Audit: Exploding Debt & Bogus “Assets” (p. 4): DFA’s 2019 financial audit shows debt nearly doubling, along with huge increases in bogus assets like “Goodwill” and “Intangible Assets.” Meanwhile, DFA’s network of hundreds of “affiliates” saw profits drop by 65% in 2019.

3/19 Letter: Dean Foods Losing Over $.25 Per Gallon (p. 5): On March 19, the bankrupt Dean Foods issued a letter to buyers noting there would be no decrease in the March to April price list for dairy products. Why? Dean Foods’ letter claimed the company was losing more than $.25 per gallon! That’s about $1 million per day, we calculate. We wonder if that letter was a signal to other dairy processors to hold their prices in April.
Also, we note that Dean Foods failed to pay its distributors for the month of April.

Hunger Task Force Responds to Dairy and Food Crises (p. 6): Jan Shepel details how a Milwaukee-based non-profit – the Hunger Task Force – has collected donations and spent over $1 million buying dairy products for distribution to food pantries around Wisconsin. Products distributed include fluid milk, Baby Swiss cheese, and cheese curds. The state agriculture department and Dairy farmers of Wisconsin have helped connect dairy personnel with the Hunger Task Force.

Sweetman Family Diversifies Dairy, Adding Meat Sales & Farm Stand (p. 7): Near Warwick, New York, Tunis and Sharon Sweetman, along with their daughter Carrie (and many other helpers) have scaled back their dairy herd in the past decade and diversified into beef/pork production. They created a farm stand at their store. Recent consumer demand for their meat products has been very, very strong. The Sweetmans’ farm is located only about 40 miles from Manhattan, in historic Orange County, New York.

Organic Valley: $30 Mil. Loss in ’19, But Q1 ’20 Sales Profitable (p. 8): Writer Marc Eisen details the factors behind Organic Valley’s 2019 financial losses. The biggest factor was write-down of aged commodity inventories. But he also reports how strong sales of organic fluid milk helped turn 2020’s first quarter into black ink

Organic Valley Contracts DFA as Fluid Processor (p. 8): Organic Valley has contracted DFA – the new owner of many Dean Foods’ plants – to process and distribute OV’s organic milk in many markets across the U.S.

Analysis: Pandemic Drops Corn Revenue by $50 Per Acre (p. 8): Farmer/writer Jan Shepel covers the severe, negative impact of coronavirus on corn prices. That $50/acre cost she cites may be modest..

USDA Announces $19 Billion Plan to Help Farmers, Purchase Food (p. 9): Jan Shepel offers the limited details available on USDA’s $19 million plan to compensate agriculture and food industry firms for some of their losses due to the Covid-19 pandemic. MANY DETAILS REMAIN TO BE EXPLAINED, SUCH AS PAYMENTS TO DAIRY FARMERS.

Dairy Commodities Start Rebounding from Rock-Bottom April Levels (p. 10): Our dairy commodity analysis. Mercifully, farm milk supplies were tightening and dairy commodities edging up in early May.

Americans reverting to food/nutrition basics (p. 11): Pete Hardin theorizes that we’re watching a fundamental shift in attitudes and purchasing habits about food. We’re back to basics.

Strategies to SELL MORE Wisconsin cheese (p. 11): How about some new ways to sell Wisconsin cheese, such as: on-line, discount coupons for consumers to use at Wisconsin cheese plant stores; sell grilled cheese sandwiches (and blocks of cheese) to truckers at Interstate highway rest stops; offer consumers’ 10-lb. packages of quality Wisconsin cheese for $65-$70 (including shipping); and kick the national dairy promotion bozos to starat promoting whole fat dairy products.

April 2020 – Issue No. 489

Inside this month’s issue …

OUR STORIES OF THE MONTH (Click the blue title below to read "the complete story"):

Chinese Health Groups: Milk Builds Immune Resistance (p. 2)

Why Does Tom “Million Dollar” Vilsack Need Side-Gigs? (p. 4)

Clayton Act’s Antitrust Implications Re: Dean Foods Bankruptcy (p. 11)

Back to Dairy! Spectacular Retail Sales Gains in Mid-March (p. 12)

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Coronavirus Disrupts Farm-to-Consumer Food Supply Chain (p. 1): Large volumes of farm milk have been dumped in early April. Dairy commodity prices have plunged. The flow of dairy products from farm to consumer has been severely disrupted. Chaos reigns.

Court Oks DFA Buying 44 Dean Foods Plants (p. 1): The bankruptcy judge has agreed to Dairy Farmers of America (DFA) acquiring 44 Dean Foods milk plants. Numerous antitrust questions abound in this “hurry up and shut up” process.

Federal Milk Orders Ok Nation-wide “Dumping & Other Changes (p. 2): Due to emergency conditions, USDA has okayed looser milk pooling rules, including “dumping” farm milk.

Chinese Health Groups: Milk Builds Immune Resistance (p 2): Chinese health and dairy groups recommend drinking milk for personal wellness.

March ’20 Class III Price Declines $75/Cwt.: $16.25 (p. 2): Delays in USDA’s commodity price survey mean that the biggest impact of falling prices for manufacturing milk will be witnessed during April.

Coronavirus Events Shut Down Beef Slaughter Plants in PA, MI (p. 3): A shortage of plant workers has closed beef slaughter operations at a few plants in Pennsylvania – including giant facilities owned by JBS and Cargill. Meanwhile, JBS has reduced its kill floor operations at Plainwell, Michigan to only handle contracted cattle.

DFA, LOL & Agri-Mark on Hook for $220 Million CWT. Settlement (p. 3): Those three co-ops were the named defendants in a civil suit settled late in 2019. The settlement cost of $220 million is their obligation.

Why Does Tom “Million Dollar” Vilsack Need Side-Gigs? (p. 4): Dairy farmers are paying Tom Vilsack about $1 million a year. But he has taken an additional responsibility heading Purdue Pharma’s outreach to victims of opioid drugs and their families. A “Story of the Month.”

Milk Dumping Begins as Pandemic Hits Dairy Farms & Processors (p. 40): Dairy farmer/writer Jan Shepel summarizes the sad events in Wisconsin as widespread milk-dumping commenced in early April.

Questions & Answers: Bill Bullard, R-CALF USA (p. 5): The CEO of the trouble-making cattle producers group – R-CALF USA – offers his wisdom about current events in the livestock trade, including Sonny Perdue’s recent decision to all fresh beef from Brazil and Namibia to enter the United States, as well as Country of Origin Labeling and beef check-off follies.

Land-spread Raw Milk Boosts Soil Health & Crop Yields (p. 6-7): This month, Paris Reidhead interviews an organic farm family in Nebraska that sells raw milk, produces cheese and butter, and sells home-raised meat. One secret to the Bernt’s success is using raw milk to enhance soil health.

Milk As Fertilizer Contains All Plant-Available Nutrients (p. 7): Jan Shepel reports fertilizer benefits from raw milk as recenetly summarized by UW-Madison experts.

Frivelous Appeal Delays $25 Million Payments to Dairy Farmer Claimants in Decades-Old Milk Powder Case (p 8): Ohio dairy farmer John Rahm writes about what he calls a frivolous appeal of the long-running DairyAmerica milk powder case. Some 25,000 claimants are waiting for Settlement checks averaging around $1,000 each.

Tales from the Dairy Battlefront … (p. 8): Pete Hardin details specific items in dairy’s chaotic situation.

Coronavirus Chaos Torpedoes Dairy Commodity Prices at CME (p. 9): On the day we went to press (April 13), both block and barrel Cheddar prices ended up at $1.01 per pound in cash market trading at the Chicago Mercantile Exchange. Ouch.

Dairy crisis requires new & old strategies … (p. 11): Pete Hardin lays out an array of strategies to turn dairy around, including: developing on-line simple recipes for casserole-type meals that contain plenty of tasty dairy products, having dairy promotion groups push full-fat dairy products, urging USDA to buy frozen hamburger for emergency feeding programs, urging farmes to seek interest-only payments to their bankers for three to six months, etc.

Clayton Act’s Antitrust Implicatoins Re: Dean Foods Bankruptcy (p. 11): University of Wisconsin-Madison law professor emeritus Peter Carstensen, one of the nation’s leading authorities on food and agriculture antitrust law, wries about the implications of the Clayton Act and the dispesla of Dean Foods assets through bankruptcy. A “Story of the Month.”

Back to Dairy! Spectacular Retail Sales Gains in Mid-March (p. 12): The Milkweed obtained weekly, nation-wide dairy product sales data for four weeks ending on March 21: Here are some spectacular sales gains for retail dairy product sales that took place the week of March 21 (compared to the same week, one year ago): Milk --- + 36.4%, Butter – 111.8%. Cheese -- +77.9%. A “Story of the Month.”

March 2020 – Issue No. 488

Inside this month’s issue …

OUR STORY OF THE MONTH (Click the blue title below to read "the complete story"):

Shocking Erosion of Fat Free and Low Fat Milk Sales in Recent Year

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DFA Offers $425 Million to Acquire 44 Dean Foods’ Dairy Plants (p. 1): In February, Dairy Farmers of America submitted a bid to acquire 44 milk plans from the Dean Foods bankruptcy. The nation’s biggest dairy cooperative is attempting to buy most of the milk processing assets from the (bankrupt) biggest fluid milk processor in the biggest bankruptcy in the history of the nation’s dairy industry.

Opposition Mounting vs. Proposed DFA Purchase of 44 Dean Foods Plants (p. 1): A chorus of unhappy parties has emerged, complaining about many aspects of the “hurry up and shut up” disposition of Dean Foods assets through bankruptcy. The process looks as if it were pre-determined that DFA would end up with its desired holdings.

Lawyers Suggest DFA CEO Rick Smith Lied to Dean Foods’ Bankruptcy Court (p. 1): Aha! Lawyers in the civil Class Action case vs. DFA in federal court in Vermont are seeking to unveil as yet secret testimony by DFA CEO Rick Smith. Plaintiffs’ lawyers state that if Smith’s testimony in the Vermont court is revealed, it will prove he lied in a statement to the federal judge handling the Dean Foods bankruptcy.

Feb. ’20 Class III Price Drops 5 Cents to $17.00/cwt. (p. 2): Cheese prices pulled down USDA’s Class III price in February.

Did the Canadians Snooker U.S. Negotiators on MPC Exports (p. 3): In the recently concluded USMCA trade deal, Canadian negotiators pulled a fast one on the U.S. Here’s how: The category of MPC exports that’s limited annually does not include MPCs containing protein content above 85%.

MPC Trade Deals – Snookered Again … (p. 4): We review this nation’s long history of being played for a sucker on MPC issues in global trades negotiations.

Cattle Markets React to CoronaVirus Fears, Brazilian Imports (p. 4): Writer/dairy farmer Jan Shepel tackles declining futures prices for U.S. beef, unveiling two factors. First, food shipments to China and Asia are being delayed by transportation logistics due to CoronaVirus. The second factor threatening future beef prices is a deal just concluded between the White House and Brazil to allow imports of fresh beef from that suspicious country.

November ’19 “Mailbox Milk Price: Data Missed Release Date Due to DF Bankruptcy (p. 4): Timely release of the November 2019 “Mailbox Milk Price” data has been delayed. That month is critical, because of widespread depooling of Class III milk.

CoronaVirus Worsens China’s Food Supply Challenges (p. 5): Seaport and trucking logistics have been completely balled up by China’s government’s restricting half its population to stay at home. Food is a key import. Ships are delayed being unloaded. Trucking goods from port cities to their destinations is also a mess. Inability to ship dairy commodities to China is backing up products in the United States.

Excerpts from Dairy Market News 2/28/20 “Oceania Dairy Market Overview” (p. 5): We quote excerpts from the excellent analysis by Dairy Market News’ 2/28/20 issue on the dairy situations in Australia and New Zealand. Both those areas are challenged by extremely dry weather.

Shocking Erosion of Fat Free and Low Fat Milk Sales in Recent Years (p. 6-7): Our “Story of the Month.”

5th Anniversary: IARC’s Finding Glyphosate a Probable Carcinogen (p. 8): Paris Reidhead reviews some major events over the past five years since the World Health Organization’s cancer research branch labeled Glyphosate a possible human carcinogen. To date, some 44,000 lawsuits have been filed claiming exposure to Glyphosate caused suffering due to non-Hodgkin’s lymphoma.

Six Co-ops Claim Dean Foods Bankruptcy Process Is Unfair, Seek Delay (p. 9): A half dozen dairy cooperatives have filed a document with the bankruptcy court seeking to delay review of DFA’s proposal to acquire 44 fluid milk plants from Dean Foods. The document cites too speedy a process, irregularities, and concerns about DFA’s ability to dominate dairy if it becomes the nation’s largest fluid milk processor.

NPPC & 30 State Assns. Seek to Halt “Organic” Soybean Imports (p. 9): Fears that the dreaded African Swine Fever could enter the U.S. in a load of imported soybeans from Eastern Europe or Asia has prompted pork producer groups to seek a U.S. ban on imported soybeans.

Nonfat Prices & Futures Drubbed by CoronaVirus’ Trade Disruptions (p. 10): Our dairy commodity review.

A tale of two viruses … (p. 11): Pete Hardin draws parallels between the United States lack of preparedness for the arrival of coronavirus with this nation’s laxity in the face of threats from Food and Mouth Disease.

Why not? Expedite U.S. food shipments to China (p. 11): The United States has an abundance of food and productive capacity that’s bankrupting agriculture. China needs food, particularly with disrupted commerce due to CoronaVirus. Where’s the common ground between these nations?

UW-Madison’s Dr. Mark Stephenson Advises: “Watch the Flush.”
(p. 12): What’s ahead for milk prices in 2020? UW-Madison dairy policy analyst Dr. Mark Stephenson advises watching daily milk production levels during April-May 2020 to have a better handle on this year’s second half milk prices.

February 2020 – Issue No. 487

Inside this month’s issue …

OUR STORIES OF THE MONTH (Click the blue title below to read "the complete story"):

November ’19: Over 3 Billion Lbs. of Cheese Milk Depooled …

Scrutinizing DFA’s Nutritionally Inferior “Dairy + Almond Swill”

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Coronavirus Pandemic Threatens Global Health & Economy (p. 1): We’ll keep hearing about coronavirus until we’re sick of it. The deadly, highly contagious virus that originated in China threatens global health and the economy. We try to summarize some of the known and suspected details regarding coronavirus.

Data Split Over 2019’s Fluid Milk Sales (p. 1): Retail sales of fluid milk in 2019 found good news only on Whole Milk volumes – which lost only 0.1% of volume during a 52-week period ending last December 29. The entire range of fluid milk sales lost 3.9% of total sales. Lesser-fat milks got whupped: 1% was down 8.1% and non-fat (skim) sales fell 11.8%.
Important to note: USDA has been unable to release data for November and December 2019 fluid sales. Total sales, according to federal milk order data will probably be somewhat better than the above-cited data collated from retail check-out scanners.

Late February: Two USDA Dairy Reports to Watch (p. 2): Pay attention to two upcoming USDA dairy reports: First, final data for 2019’s national milk production should undergo a substantial downwards revision – due to mistaken data reported to USDA for last year’s first 10 months. Second, watch the November 2019 “mailbox” data for the embarrassing revelation that may U.S. dairy producers received less milk income in November ’19 than they had in August ’19 – despite the fact that the Class I and Class III prices were substantially higher in November.

Univ. of Wisconsin Regents Add $25 Million for CDR Budget Overruns (p. 2): As predicted in the January 2020 issue, the two dairy projects being built on the UW-Madison campus (new Center for Dairy Research and new dairy plant) were way over-budget. In early February, the University of Wisconsin Board of Regents threw another $25 million in the pot to try to complete those joint projects. New estimates for total costs are in the $72 million range, making the projects more than twice original budgets and years behind schedule.

Borden Supplied Walmart Store Pictured in Jan. 2020 issue (p. 2): Correction: Borden Dairy, not Dean Foods, supplied the Avon Park, Florida’s Walmart dairy case we pictured on the back page of the January 2020 issue. That picture showed virtually empty shelves on December 27. Guess Borden employees were too busy drafting bankruptcy papers to pay attention to minor details like keeping milk on the shelves.

January Class III Price Drops $2.32/cwt., to $17.05 (p. 2): Lower cheese prices translated into lower prices for milk processed into cheese during January.

Questions about DFA for Federal Antitrust Enforcers … (p. 3): DFA’s proposed take-over of Dean Foods’ assets raises huge antitrust concerns. The Milkweed estimates that those firms’ combined dairy processing plants would control massive volumes of packaged fluid milk in several major markets, including: Southern New England, Minneapolis/St. Paul, Chicago/Eastern Wisconsin, and St. Louis.

Wisconsin Saw 10% of Dairy Herds Exit in 2019 (p. 3): By December 2019, “America’s Dairyland” had lost 818 dairy herds exit production last year – 10% of the number that was milking cows in January 2019.

Foremost Farms Releases 37 HQ Employees (p. 3): In mid-January, Foremost Farms gave termination notices to 37 employees at its headquarters in Baraboo, Wisconsin. This move comes as new CEO/President Greg Schlafer tries to put his stamp on the financially troubled dairy cooperative.

Borden Dairy’s Lenders P.O.’ed at Bankruptcy Filing (p. 4): Borden Dairy’s bankruptcy filing surprised its major lenders, which were on the verge of concluding an extended line of credit when the dairy processor landed in bankruptcy court.

MMPA Commits 25% of Milk to Glanbia Cheese Plant (p. 4): Details are scarce, except to note that the geniuses at Michigan Milk Producers Assn. have committed a whopping 25% of the co-op’s current milk supply to the new cheese plant being completed in St. John’s, Michigan. That project – headed by Glanbia – is expected to commence production in fall 2020. When the plant is operating at capacity and drawing about two million lbs. of milk per day from MMPA, the co-op’s other major raw milk customers may be scratching for milk. No details on what service fee (i.e., payment over/under Class III price) that MMPA will receive. The MMPA/Glanbia supply deal is supposed to last for at least three years. Select Milk Produces and Dairy Farmers of America are also partners in the Glanbia plant.

Cow’s Contaminated Bedding: Cheese Quality Problem (p. 4): The second or third biggest gripe heard form dairy farmers in the Upper Midwest is the lack of bedding materials. Straw is very scarce and expensive. Some farmers round-baled corn stover for bedding – but much of that stover came off the fields too wet, even moldy. Already cheese quality experts at the UW-Madison Cheese Research Institute are fielding quality problems about gassing of cheeses, due to contaminants resulting from poor-quality bedding. Note: Because so little winter wheat was planted in either fall 2018 and fall 2019, that means shortages of straw for bedding will persist until the 2021 winter wheat crop is harvested in mid-summer 2021.

Dairy State Cheese Owner Faces Felony Theft Charges (p. 4): The president of Dairy State Cheese (Rudolph, WI), faces charges for alleged theft of milk income from producers. Mike Moran is charged with defrauding 83 producers out of a total of $21,250. Moran will appear in court in late February.

Dean Foods & Borden Dairy Bankruptcies Challenge Southeast (p. 5): The Southeast doesn’t even produce enough farm milk to meet consumers’ Class I needs over that 10-state region, according to data presented by dairy consultant Calvin Covington at the recent Georgia Milk Producers annual meeting. Now two big processors’ bankruptcies plague the Southeast. Covington estimates that, combined, Dean Foods and Borden Dairy operate 18 out of 40 fluid milk plants in the 10-state Southeast region.

Meatless Meat Probably Not Likely Among USDA Changes in School Meals (p. 5): In late January, USDA released details of proposed changes in school meals. Included in those changes is substituting “meat alternatives” for meat. Does that mean “Impossible Burgers” in front of school kids? Probably not, according to analysis by journalist Tony Ends. Rather, beans and nuts will become alternate protein sources to a greater degree.

Politics Getting Thick in California “Stop QIP” Effort (p. 6): About 350 California Grade A dairy producers have signed petitions that were submitted in late January to state agriculture officials. Those petitions seek a referendum on continuing the $0.38 deduct used to pay-out $1.40-$1.70/cwt. to a minority of producers holding “quota.” The troublemakers have also field legal action against California’s agriculture secretary. That lawsuit claims that the state did not hold a mandatory, formal hearing on the matter of creating the Quota Implementation Program.

OFF Bill for Commodity Check-off Reform Adds Sponsor (p. 6): Dairy farmer/writer Jan Shepel details new sponsors for legislation in Washington that would reform USDA’s agricultural check-off programs.

Lifetime Career with Jersey Cattle Yields Enviable Milk Fat & Protein Tests (p. 7): Jan Shepel profiles John and Mary Rahm’s Jersey dairy farm that’s located near Versailles, Ohio. John has been breeding to higher-components Jersey bulls for decades. The 45-50 cow Jersey herd sports a very high level of components. Their December 2019 milk tested 6.3% butterfat and 4.2% protein. High-components Jersey milk helped put three children through college and provides the Rahms with a good lifestyle.

November ’19: Over 3 Billion Lbs. of Cheese Milk Depooled (vs. August ’19) (p. 7): Up to $700 million of Class III milk value may have disappeared. This is one “Story of the Month.”

Maryland Dairy Producer Files Lawsuit Against Former Cooperative (p. 8): A Maryland dairy producer, Andrew Toms, has filed a lawsuit against his former dairy cooperative, Lanco. Toms claims that Lanco failed to provide an audited financial statement to members in Maryland, as Maryland statutes specify. Lanco’s attorney counters that specific statute does not apply to Lanco. And, further, that since Toms is no longer a Lanco member, he has no standing in these matters. A hearing is scheduled for August.

Lower Corn & Soybean Prices Seen for 2020 Crops; Hog and Beef Prices to Improve (p. 9): Jan Shepel summarizes commodity markets’ projections from the January 28 UW-Madison Agriculture Outlook program. Bottom line: The 2020 “All Milk Price” should be $1.20/cwt. higher than 2019 “All Milk Price,” according to Mark Stephenson, UW-Madison’s lead dairy analyst. Dr. Brenda Boetel, of UW-River Falls, foresees stronger prices for pork and beef in 2020. However, she projects that the 2020 corn and soybean crops will fall $.40 and $.50 per bushel, respectively, below prices for those 2019 crops.

New Whole Milk Research Spotlights Low Fat Health Myths (p. 10): Writer Paris Reidhead digs deep into recent research that shows how kids fed Whole Milk actually are less obese than their counterparts who were fed low-fat milk products. This research turns upside-down prevailing nutrition “logic” for the past 50-60 years. Very interesting!!!

One-Farm/One-Vote Referendum on National Dairy Check-Off? (p. 11): Pete Hardin explains how NEVER in the 35+ years of USDA’s dairy promotion check-off, have producers had the opportunity for a one-farm, one-vote referendum on whether the 15-cent dairy check-off should continue. Further, dairy producers have never had a voice on selection of the board of directors for the National Dairy Board. Result: An out-of-control bureaucracy that fails to operate in the interests of dairy farmers.

FMMO Uniform Receiving Credits for All (p. 11): Dick Bylsma, milk marketing director for the National Farmers Organization, proposes that federal milk orders build in uniform receiving credits that help absorb costs of balancing on days/weeks when plants do not receive milk.

No Requests for Holiday “Dumping” in NE, But … (p. 11): Despite a lack of requests for pooling “dumped” milk during the Christmas & New Year’s holidays, the Northeast milk market administrator exercised his judgment and allowed 11 million lbs. of milk to be disposed of and credited at the Class IV during December 2019. In great part, the Northeast’s problem was 39 million lbs. of “lost” fluid milk sales in December 2019, compared to December 2018.

USDA’s National Organic Program Continues Failing Producers (p. 12): Organic grain marketer John Bobbe blasts USDA’s National Organic Program for failure to properly oversee imports of “organic” grain from the Black Sea region. NOP is not serving the interests of organic producers and consumers.

Cheddar Barrels Nose-Dive at CME, NFDM Market Reflects China Uncertainty (p. 13): Pete Hardin analyses the current dairy commodity scene. Barrel Cheddar prices have plunged far below Cheddar blocks. Milk powder prices and futures are retreating, due to uncertainty regarding exports of dairy proteins to China.

Livestock Report: Prices for Springers & Good Culls Improve Slightly (p. 14): Livestock markets are generally flat, except for somewhat better prices for springers and good cull cows.

New Dairy Grants Created Under Senator Baldwin’s Leadership (p. 14): In the 2019 federal farm law, Wisconsin Senator Tammy Baldwin was able to insert language creating three “Dairy Business Innovation Centers.”
One of those centers is based in Madison, Wisconsin and will serve a five-state area of the Upper Midwest. Jan Shepel reports on early efforts for this program in Wisconsin.

FMMO milk check “fraud” – petty and grand larceny (p. 15): Pete Hardin contrasts two news events reported in this issue: felony charges against the owner of a Wisconsin cheese plant involving $21,250 … and the disappearance of up to $700,000,000 (seven hundred million dollars) of Class III (cheese) milk income from federal milk order revenue pools during November 2019. Without excusing the former, the latter event has drawn little explanation from USDA. Hardin concludes that petty larceny is easier to chase after than grand larceny, when it comes to USDA’s federal milk orders.

Wisconsin farm loses horses to Blister Beetle Toxicity (p. 15): Really interesting! Jan Shepel – a horse owner herself – details how a Wisconsin horse range had 14 horses die, and as many as 100 other animals sickened, by hay trucked in from Wyoming. That hay contained the carcasses of so-called “blister beetles.” Those bugs – killed during hay-making – leave a residue in the hay that is highly toxic to horses.

Scrutinizing DFA’s Nutritonally Inferior “Dairy + Almond” Swill (p. 16): Where’s “Mr. Yuk” when you need him? A story of the month …

Fluid Milk Sales Nose-Dive Started in 2010-2012 (p. 16): We reproduce a slide from Dr. Mark Stephenson’s presentation at UW-Madison’s Ag Outlook Forum in late January. Stephenson’s “rolling daily average” for fluid milk consumption fell off the chart, starting in 2010. That’s when the national dairy producers’ check-off starting advertising only low-fat and no-fat dairy products. In 2012, Tom Vilsack oversaw putting only low-fat and no-fat dairy products in school meals.

January 2020 – Issue No. 486

Inside this month’s issue …

OUR STORIES OF THE MONTH (Click the blue title below to read "the complete story"):

2020 Forward Vision: Uncertainty, Tighter Global Milk Supplies

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N2020 Forward Vision: Uncertainty, Tighter Global Milk Supplies (p. 1): We review the major factors that will drive the national and global dairy industries during 2020, including weather-related milk production declines China’s demand for more human-quality proteins, energy costs, trade uncertainty, interest rates, etc.

Australia’s Wildfires Devastate Top Two Dairy States: Oceania’s Future Milk Production Capacity Impaired (p. 1): Wildfires ravaging parts of Australia are centered in that nation’s two biggest dairy states – Victoria and New South Wales, which produce about 75% of Australia’s milk.

2019 U.S. Milk Production to be Revised Down on Feb. 28th (p. 1): USDA will revise 2019’s milk production data in late February. At issue: California ag department economists over-reported the Golden State’s milk output through most of last year.

DFA, Saputo at Odds Over Milk Sales Details (p. 2): At all Wisconsin plants and at Murray, Kentucky, Saputo Cheese has kicked out DFA as the milk supplier.

December ’19 Class III Price Drops $1.08/Cwt. Further Decline Likely for January 2020 (p. 2): Lower Cheddar prices have started to pull down monthly Class III (cheese) milk prices.

California “Stop QIP Tax” Coalition Efforts Advance (p. 3): Opponents of California’s milk quota system are on the verge of submitting 300+ petitions to the state agriculture department in the latest thrust to do away with assessments against all Grade A producers’ milk checks to bankroll payments to quota holders.

“Keep Away” – Some Producers Paid less in Nov. than in Aug. (p. 3): Most dairy producers are wondering why their milk checks in November were for lesser amounts (per cwt.) than in August. The Milkweed tries to explain this complicated situation which starts with fast-rising Cheddar prices in November. But there’s a big dose of grand larceny involved, too!

U.S. Antitrust Official Wants Comments on Dean Foods/DFA Merger (p. 4): A lawyer from the United States Department of Justice’s Antitrust Division sent out an email to some dairy producers asking for their comments on DFA’s proposed acquisition of Dean Foods’ assets. We reprint that email and invite others to weigh in with their opinions.

DFA/LOL/Lanco-Pennland Form Marketing Agencies in Northeast, Southeast (p. 4): Details are almost non-existent. Three dairy cooperatives have formed marketing agencies in the Northeast and Southeast. The three are Dairy Farmers of America, Land O’Lakes, and Lanco-Pennland.

Tuberculosis – A Truly Zoonotic Disease (p. 5): Jan Shepel details a recent conference’s presentation on bovine tuberculosis challenges.

Borden Dairy Copycats Dean Foods into Chapter 11 Bankruptcy (p. 6): On January 5, 2020, Borden Dairy filed for bankruptcy protection from suppliers and creditors. This situation looks like some quick-buck artists trying to take advantage of lenders and suppliers through federal bankruptcy laws.

Dairy: Canary in Interest Rate & Energy Crisis Coal Mind? (p. 6): We note dairy’s sensitivity to hikes in energy costs and interest rates – both of which seem to be on the horizon.

UW-Madison’s CDR/Dairy Plant Projects: Over-Budget & Several Years Behind Schedule (p. 7): The combined Center for Dairy Research and dairy plant construction projects at the University of Wisconsin-Madison campus has become an embarrassment: years behind schedule and looking at costs around twice original estimates. A key contractor – a firm that designed the dairy plant and teaching facilities – remains unpaid more than half a year after submitting an invoice totaling just over $300,000 to the lead architecture firm.

Muranda Dairy .. No Longer Milking Cows… Intensifies Cheese Operation (p. 8): Paris Reidhead visits the Muranda Cheese Company of Waterloo New York. The Murray family sold their Holsteins last summer to fully concentrate on cheese production/marketing. Paris’ story is full of insightful information about strategies for marketing of quality cheeses.

Dairy Livestock: Prices for Good Springers Up, Market Otherwise Flat (p. 9): Auctions in Michigan and Ohio report slightly improved buyers’ interest in springing heifers. Dairy faces a serious shortage of replacement heifers in coming months … and years.

Organic Milk Markets Struggling (p. 9): Any good news here? Several organic marketers are dishing out tough news. Organic Valley is terminating some inefficient routes. DFA is cutting back to buying “spot” milk at Rochester, Minnesota. No further details on Horizon’s plan to turn over its organic producers to a newly-formed firm, Small Farms, LLC.

Winn-Dixie, Dairy Co-ops settle CWT Lawsuit (p. 9): At the end of 2019, Winn-Dixie and another Southeast food retailer settled a lawsuit against National Milk Producers Federation’s Cooperatives Working Together program. NMPF got off cheap – only $7 million was the supposedly secret settlement amount. This settlement makes the total of CWT settlements $279 million.

CME Cheddar Prices Tumble Sharply; Butter & NFDM Firm (p. 10): Pete Hardin analyzes recent dairy commodity trends. Basically, the pendulum for block Cheddar swung too low, then too high, and now it’s back in the basement.

Can’t dairy fight back against fake “milk” and meat? (p. 11): Pete Hardin urges dairy to fight back against fake “milk” and meat, selectively using dairy promotion check-off resources. Specifically, he suggests: 1) testing oat “milk” products for Glyphosate residues, and, 2) engaging in rodent nutrition tests feeding oat milk to some rats and good, old-fashioned cow’s milk to others. Plant-based beverages do not contain as much protein, nor are the proteins have complete amino acid sequences. Further, it’s doubtful that the Calcium in plant-based milks is equally bio-available.

Behind NMPF’s CWT lawsuit settlements: incompetent legal advice (p. 1): The National Milk Producers Federation has no racked up $279 million in lawsuit settlements involving the Cooperatives Working Together program. Where did NMPF go wrong?

12/27/19: Whole Milk Gallons All Gone at Florida Walmart Dairy Case (p.12): This picture is worth 1,000 words. A sharp-eyed dairy woman from Florida took a picture of virtually empty dairy case shelves at a Walmart in central Florida. All five doors reserved for Whole Milk gallons were empty. Borden Dairy is the supplier of milk to that Walmart.

Kraft-Heinz Hoses NY Producers on Milk Supply Contracts (p. 12): Food giant Kraft-Heinz dumped two dairy cooperatives as milk suppliers on January 1, part of a dirty game pitting one milk supplier against another. Behind the scenes, the dirty hand of DFA is involved.

December 2019 – Issue No. 485

Inside this month’s issue …

OUR STORIES OF THE MONTH (Click the blue title below to read "the complete story"):

Dean Foods: Biggest Bankruptcy in U.S. Dairy Industry’s History

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A November Class III Price at $20.45; Tight Milk Supplies Ahead (p. 1): November will be the peak for 2019’s second-half dairy commodity prices. In early December, holiday demand for barrel Cheddar has peaked. But the stage is set for solid dairy commodity and farm milk prices in 2020, in our opinion. Why? Many farmers have serious problems with quality and/or quantity of stored crops for over-winter feeding. And by mid-2020, when farmers are ready to add replacement heifers, they’ll find out that replacements are scarce.

11/12/19: Dean Foods Files Chapter 11 Bankruptcy (p. 1): Dean Foods picked the single day of the month when it had the greatest exposure to payments for farm milk to declare bankruptcy. This event has many ramifications. See our reports on pages 7-10 of this issue.

Kraft-Heinz Playing Dirty with NY Mil Suppliers (p. 2): Kraft-Heinz has informed two dairy cooperatives – the Jefferson Bulk Milk Co-op and the National Farmers Organization – that they will not sell milk to Kraft Foods in 2020. Why is Kraft-Heinz shafting local producers, after receiving millions and millions of federal, state and local tax breaks and other “gimmes.”

November ’19 Class IIII Price Rises $1.73 – to $0.45/Cwt. (p. 2): The headline tells it all. That price will be the peak for 2019.

NMPF Settles CWT Price-Fixing Case for $220,000,000 (p. 3): Once again, the National Milk Produces Federation has settled a lawsuit involving the Cooperatives Working Together program, pre-trial. This time the settlement is $220 million. An earlier settlement of a similar case cost “only” $52 million. The matter involved an improper legal structure of the CWT program for killing dairy herds.

Milwaukee Journal Sentinel Exposes DMI’s Execs’ 2018 Salaries (p. 3): In early December, reporter Cary Spivak of the Milwaukee Journal Sentinel revealed the 2018 salaries and compensation enjoyed by top executives at Dairy Management, Inc. (aka “The Milk Promotion Bozos). Tom Vilsack, who heads the U.S. Dairy Export Council, came in just a few hundred dollars short of a million for his 2018 compensation.

Except for Butter, USMCA to Yield Tiny Dairy Export Gains to Canada (p. 4): Citing gov’t documents, we repeat information originally printed here in October 2018 showing insignificant gains for U.S. dairy exports to Canada during the first and sixth years following approval of the U.S./Mexico/Canada trade agreement. Butter is the only exception. Butter will gain an additional 5.36% access to Canada (vs. 2017 data) by year 6 of the USMCA deal.

Dean Foods Bankruptcy Complicates DFA’s Shady Finances (p. 4): Dean Foods’ bankruptcy sticks Dairy Farmers of America with $172.9 million in unpaid milk bills. But that’s just the start. DFA, already up to its ears in debt, is proposing to acquire all of Dean Foods’ assets through bankruptcy. How much more debt will that add to DFA’s collection of bogus assets?

WI Ag Dept: “Can’t Do” Performance on Cheese Safety (p. 4): In November, Steve Ingham – head of the Food and Recreational Safety Division of the Wisconsin Department of Agriculture – gave a sorry, “can’t do” report to the Department’s advisory board on attempts to track cheese originally intended for a milk farm, but which, in part, may have ended up in the human food chain. Ingham professed inability to track cheese. Sadly, his agency is responsible for enforcing federal food safety rules.

Check-Off Improvement Bills Introduced to Congress (p. 5): Jan Shepel details legislation before the U.S. Senate that would reform dairy and other ag commodity check-off programs. Can’t wait for hearings!

Dannon (Horizon) to Outsource Organic Milk Supply (p. 5): Organic dairy producers selling their milk to Dannon (Horizon) have been notified that their milk inspections and payments will be covered by a relatively new entity – “Small Farms Program, LLC.” Local meetings will be held, prior to the transition. Our worry: Dannon’s WhiteWave division is headed by Gregg Engle$ -- former CEO of Dean Foods who has no qualms about setting up dairy farmers for lower pay prices. In the larger picture, fears are that organic dairy producers are being lined up for lower prices, across the marketing spectrum. That cheap, so-called “organic” milk from the arid Southwest is pulling down everybody’s prices for organic dairies.

Round 2 of Trade Aid $$$ Out: Democrats Say Program Unfair (p. 6): Around Thanksgiving, eligible farmers received the second round of payments from the federal program to ease the pain from the multiple trade wars in which the Trump administration has engaged. For dairy producers, that second payment equaled $.20/cwt. – one half the amount paid in July. A possible third payment (same amount as recently received) is due in early January.

(Some of) Sonny Perdue’s Own Words Championing Lab-Cultured (Fake) Meat (p. 6): The nation’s illustrious Secretary of Agriculture is a big fan of lab-cultured (fake) meats. We cite Sonny Perdue’s own words.

Dean Foods: Biggest Bankruptcy in U.S. Dairy Industry’s History (p. 7): Part of our “Story of the Month” coverage of this fiasco.

DFA + Dean Foods? Antitrust Concerns in 4 Major Markets (p. 8): Part of our “Story of the Month” coverage.

Dean Foods Hides Accounts Receivable as “Bankruptcy Remote” (p. 8): Part of our “Story of the Month” coverage.

Dean Foods: An Unofficial, Sordid History (p. 9): A revisionist history of Dean Foods as only The Milkweed can report. Part of our “Story of the Month” coverage.

Saturday Night Live Skit Roasts Dean Foods (p. 9): Part of our “Story of the Month” coverage.

2019 Corn Harvest Wraps Up … Sort of (p. 11): Paris Reidhead sots through the debris of 2019’s belated harvest season.

Trump Signs Antitrust Cruelty Law (p. 12): A federal law defining animal cruelty has been signed by the White House.

USDA’s National Organic Program Revolving Door Smacks Organic Integrity in the Chops (p. 12): Organic grain consultant John Bobbe describes the latest “See No Evil” shenanigans involving a former USDA organic official taking a new job with a big organic grain firm.

SMI: Dean Foods Owes $6.5 Mil. MORE (p. 12): Dean Foods apparently was stiffing Southeast Milk Inc. for several weeks of milk payments, prior to the bankruptcy filing. Thus, when Dean Foods listed SMI as a creditor – owed about $6.5 million – that amount was only about half of what Dean Foods actually owes SMI.

Dairy Prices: “Block/Barrel Split” Reversed, Butter Down, NFDM Climbs (p. 13): We review the past month’s dairy commodity picture.

1/1/20: DFA to Double Members’ Equity Requirements (p. 14): In early summer, Dairy Farmers of America informed its members that their Capital Plan requirements would double – to $3.50/cwt. on all milk marketed annually – on January 1. After all, with all DFA’s indebtedness loosey-goosey “assets,” DFA’s lenders ought to be clamoring for more equity plugged into the co-op from member’s milk checks.
Here’s what’s interesting: Kansas Statute 17-1629 specified that if a Kansas-based cooperative (like DFA) raises its capital requirements, votes must be taken by appropriate bodies within the co-op. Did DFA ever conduct such a vote???

Dean Foods’ bankruptcy … told you so (p. 15): Last month, Pete Hardin predicted that there appeared to be no option but bankruptcy for Dean Foods. The next business day after that issue was mailed, Dean Foods obliged. But our prognosis of Dean Foods declaring bankruptcy goes much further back – to January 2019 – when The Milkweed published a front-page article projecting that Dean Foods was headed to you-know-what.

No milksop. The Milkweed marks 40 years as dairy industry watchdog (p. 16): We reprint an article by writer Marc Eisen that appeared in the July 3, 2019 issue of Isthmus – a Madison, Wisconsin news and entertainment weekly. This article offers profiles Pete Hardin – editor/publisher of The Milkweed.

November 2019 – Issue No. 484

Inside this month’s issue …

OUR STORIES OF THE MONTH (Click the blue title below to read "the complete story"):

Dairy Crisis Shifting Milk Prices to Feed Supplies/Quality (p. 1): One of our “Stories of the Month.”

Barrel Cheddar Prices Spike at CME, Eclipsing 40-lb. Blocks (p. 1): Another “Story of the Month.”

DATCP Explains Complaint about Adulterated Cheese (p. 2): Another “Story of the Month.”

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Dairy Crisis Shifting Milk Prices to Feed Supplies/Quality (p. 1): A “Story of the Month” selection.

Barrel Cheddar Prices Spike at CME, Eclipsing 40-lb. Blocks (p. 1): Another “Story of the Month.”

DATCP Explains Complaint about Adulterated Cheese (p. 2): Another “Story of the Month.”

Greg Schlafer: Foremost Farms’ New CEO/President; 2019’s First-Half Losses Reported at $19.7 Million (p. 3): Another “Story of the Month.”

October ’19 Class III Price Hits $18.72/Cwt. (p. 3): Another “Story of the Month.”

Attorneys Tackle Possible Class Action Lawsuit Against Robotic Milker Systems (p. 4): Jan Shepel interviews lawyers representing numerous dairy farmers whose investments in robotic milking systems have turned disastrous. A class action lawsuit may be in the works.

“Stop QIP” Effort in California Gaining Steam (p. 4): Over 300 Grade A California dairy producers’ signatures on petitions are being prepared for submission to the California Department of Food and Agriculture. At issue: A thrust to terminate the statute that authorizes deductions from all Grade A milk producers’ checks to fund the state’s milk quota system.

Speaker: “Meatless Mondays” & Going Vegan Won’t Save the Planet (p. 5): At World Dairy Expo, Dr. Frank Mitloehner of UC-Davis detailed livestock and agriculture in the Greenhouse Gas debate. Mitloehner puts up convincing data to show that in many instances, the GHG impact of dairy and livestock is being dramatically overstated by critics.

UW-Madison CDR Project Costs Now DOUBLE Original Estimates (p. 5): Insiders now estimate that the costs for UW-Madison’s modernization of Babcock Hall and the Center for Dairy Research are now in the $640 to $680 million dollar range. That’s double the original estimates put forth in 2012. Where’s the money going to come from for this long-delayed project? Sheer incompetence …

Dr. Robert Cropp Offers Positive Dairy Outlook for 2020 (p. 6-7): Writer/dairy farmer Jan Shepel summarizes an October 31 market analysis presented by UW-Madison dairy economist emeritus Dr. Robert Cropp. His data-based summary pointed to significantly better milk prices in 2019’s fourth quarter and 2020.

“Out Months’” Don’t Reflect Tight 2020 Dairy Supply-Demand (p. 7): Pete Hardin digs deep into Class III futures and explains that the “out months” futures prices seldom, if ever, admit to uptrends in cheese milk prices. On one hand, few analysts predicted the sky-high fourth-quarter Class III prices. But Hardin puzzles why the first half of 2020’s futures prices are so modest, compared to 2019’s fourth quarter. Feed conditions in many dairy states mean tighter farm milk supplies ahead.

Republicans Fire WI Ag Secretary; CAFO-Sitting Politics Heat Up (p. 8): On November 5, the Republican Senate dumped Democratic Governor Tony Evers’ nominee – Brad Pfaff – who was serving as Secretary-designee atop the Department of Agriculture, Trade and Consumer Protection. Pfaff’s sin? He called public hearings, seeking public comment on the state’s law for approving Confined Animal Feeding Operations (mega-dairies_

Industrial Hemp Woes in Wisconsin: THC Content? Markets? (p. 9): Many Wisconsin growers of industrial hemp are coming off their earlier highs. About 10% of all plots tested for THC content came in too high, and those stands had to be destroyed. Cost per acre to establish industrial hemp plots are estimated a between $5,000 and $10,000. Wet weather and a late harvest also boosted THC content in plants. Now that most of the crop has been harvested, growers are finding problems locating processors as well as getting paid.

Dairy Livestock Prices Generally Flat or Down (p. 10): While the milk prices are rising, in many northern dairy states, producers are shipping large numbers of dairy livestock to auction barns because of scarce supplies of feeds for the coming winter. Prices for most livestock – excluding springers in some markets – are down. Bull calves are becoming worth next to nothing. Some low-end cull cows in Wisconsin have brought as low as 4 cents per pound recently.

Battle Over “Fake” Meats Rages On … (p. 10): Jan Shepel takes a long look at emerging controversies involving “fake” meats. The Center for Food Safety is challenging FDA’s approval of a genetically-engineered material contained in Impossible Foods’ plant-based beef-type products.

CME: Barrel Cheddar Prices Zoom Up; Solid Gains for NFDM (p. 10): The headline summarizes well Pete Hardin’s analysis of the dairy commodity scene

Dean Foods: Few, if any, good options (p. 11): Dean Foods – the nation’s largest fluid milk processor – is in deep trouble. The firm’s stock has plunged below $1.00/share and the street is expecting another poor report on quarterly operating results on November 12. Pete Hardin discusses Dean Foods’ historic mistakes and the ramifications of a possible bankruptcy.

MMPA Swipes $1.99/cwt. from Sept. ’19 PPDs (p. 11): For September 2019 members’ milk deliveries, Michigan Milk Producers Assn. deducted $1.99/cwt. off the prevailing federal milk order Producer Price Differential. MMPA members are livid about the co-op’s incompetence at marketing their milk.

PFAS Mangle Maine Dairy Farmer’s Present … and Future (p. 12): Paris Reidhead details the horrid experience of Fred Stone and his family – Maine dairy farmers who’ve lost their milk market because of PFAS contamination from their soils has passed through the crops to their milking herd. This is a sobering story about environmental dangers posed to humans and food-producing creatures from PFAS – chemicals commonly contained in fire retardants and many other consumer products.

October 2019 – Issue No. 483

Inside this month’s issue …

OUR STORIES OF THE MONTH (Click the blue title below to read "the complete story"):

Judge Denies Motion to Dismiss Sitts vs. DFA/DMS Antitrust Case (p. 6): One of our “Stories of the Month.”

DFA/DMS: Two Enterprises – Both Squeezing Farmer's Milk Checks (p. 7): Another “Story of the Month.”

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NOW OFFERING ELECTRONIC SUBSCRIPTIONS

Think Tank: Engineered Proteins Will Kill Dairy & Beef Industries by 2030 (p. 1): A recently released study by a Silicon Valley “think tank” – RethinkX – estimates that the emergence of plant-based and lab-cultured meat and dairy proteins will devastate most dairy and beef producers by 2020. Further, the study projects a 40-60% decline in U.S. farmland values.
Many major U.S. food corporations are developing alternate proteins. The Milkweed raises a critical question about lab-cultured proteins: Where are the human safety studies? Since the early 1990s, federal policy has been that biotech-derived food products require no human safety studies?

Foremost Farms in Operating & Financial Chaos (p. 1): Foremost Farms – with 1,200 members spread over 7 midwestern states –is in the throes of severe operating and financial problems. Besides millions of pounds of “missing” inventories, Foremost is trapped by rising values for farm milk and dairy commodities – while waiting 180 days for payments from some major customers.

U.S./Japan Trade Pact: Boost for Beef & Dairy Exports (p. 2): These two nations’ negotiators have agreed on a trade deal that will benefit U.S. agriculture. Japan is the fourth or fifth largest destination for U.S. farm/food exports.

September ’19 Class III Price Rises 71 Cents to $18.31/Cwt. (p. 2): USDA’s federal milk order program saw Class III (cheese) milk jump by $.071/cwt. in August – the highest level since late 2014 or early 2015.

WI Lawmakers’ Bills Would Limit “Milk” and “Meat” Terms to Real Products (p. 3): Bravo! Writer Jan Shepel details bills introduced into Wisconsin’s legislative houses that would restrict terms specifically associated with dairy and meat products to only food products made from … cows and livestock. Wiscsonsin – and other states – are moving to protect consumers and farmers from deceptive practices, in absence of actions by the federal government.

USDA Secretary Perdue’s WI Visit: “Flatulence” in Church (p. 4): On October 1, USDA chief Sonny Perdue held a dairy Town Hall event at World Dairy Expo. He was in proper form, rejection proposals for flexible milk supply control, opined “Butz-like” wisdom such as how in agriculture, “the big get bigger and the small get out,” and denied he’d championed “fake meats” last October at a joint USDA-FDA conference on that subject.

Will Perdue “Run Out the Clock” on Organic Livestock Rules? (p. 4): Mark Kastel reviews the recent announcement that USDA will take public comments on transitioning dairy livestock to organic status. Kastel gives the long history of USDA’s failure to get this issue right.

OrganicEye: Food Activist Mark Kastel’s New Endeavor (p. 5): You can’t keep a good man down. Mark Kastel, formerly with The Cornucopia Institute, is now working for OrganicEye and will continue his vigilance of organics on behalf of farmers and consumers.

Question: Where Are Milk Powder Settlement Checks? (p. 5): A series of objections to the Settlement of the milk powder case have delayed issuance checks that would average around $1,000 apiece to some 26,000 dairy farmer claimants.

Judge Denies Motion to Dismiss Sitts vs. DFA/DMS Antitrust Case (p. 6): On September 27, federal judge Cristina Reiss denied the significant elements of Dairy Farmers of America’s petition to summarily dismiss the antitrust lawsuit it faces in federal court in Burlington, Vermont. That case – Sitts et al. vs. DFA/DMS – seeks damages from defendants’ alleged restraint of access by farmers to milk markets in the Northeast. Judge Reiss wants to move fast – a pre-trial hearing is set for November 14.

DFA: Two Enterprises – Both Squeezing Farmers’ Milk Checks (p. 7): In this article, The Milkweed draws upon heavily upon federal judge Cristina Reiss’ recent decision denied defendants’ motions to summarily dismiss the case. Judge Reiss’ decision concludes that it’s a valid move to submit the complaint to a jury trial; she holds out the possibility that DFA violated both its 1977 Consent Decree with the Antitrust Division of the U.S. Department of Justice, as well as terms of the Allen case’s settlement, in her own courtroom.

CMAB’s “Project Milkman” Starts ESL Fluid Milk Shipments to China (p. 8-10): For more than two years, officials at the California Milk Advisory Board have been working to move fluid milk in China. Two events paved the way for those sales, which started in September. First, CMAB employees realized that the Cross Border e-Commerce program locked in a modest, 11.9% tariff rate on qualified sales direct to consumers in China. Second, arrival of the federal milk order in California last year upgraded the value of ESL milk exports to Class I status. (Under California’s state milk order, those fluid exports were valued as the same rate as skim milk processed into milk powder.) CMAB’s strategy: Move milk from lower-valued manufacturing classes into Class I – to boost state dairy producers’ milk checks.

Dairy Quality Hay Scarce Across Much of the U.S. (p. 11): Talks with exhibitors selling hay at World Dairy Expo yielded a common conclusion: Dairy-quality hay is scarce in many important dairy regions of the country.

National Organics Program Slaps Texas’ Wrist (p. 11): Organic warhorse John Bobbe writes about USDA’s National Organics Program finally mildly rebuking the Texas Department of Agriculture for poor oversight on organic dairies.

DMI’s Own Numbers Debunk “Fuel Up to Play 60” Investments (p. 11): In the September 30 issue of Feedstuffs, a puff piece about the tenth anniversary of “Fuel Up to Play 60” appeared. In that article, DMI officials claimed that an additional 1.2 billion lbs. of milk had been sold in schools because of that program – which promotes only no-fat and lowfat milk products. The Milkweed analyzes those claims and concludes, given the investment by dairy farmers of an estimated $80-$90 million in dairy check-off dollars since 2010, that the program hasn’t even covered the investment.

Amonia (NH3) – The “King Kong” of Ag Health Concerns (p. 12): William Tooley contributes an article with jaw-dropping information about the societal health costs associated with ammonia air pollution related to industries – including dairy and livestock. Ammonia combines with aerial by-products of combustion to confront human health.

Dean Foods’ Board Okays “Stand Alone” Plan (p. 12): The nation’s largest fluid milk processor will try to pull itself out of financial problems the old-fashioned way – by itself.

Commodity Prices: Cheddar, Butter & Whey Go Backwards, NFDM Stronger (p. 13): During the past month, several dairy commodity prices have slid backwards. Nonfat dry milk is the one commodity gaining strength, primarily due to strong domestic demand to supplement protein in cheese vats. Watch cheese inventories!

Dairy Livestock Prices Mostly Steady; Replacement Heifers Scarce (p. 14): Our monthly survey of livestock auctions finds dairy animals’ prices mostly steady, with some back-sliding in cull cow prices.

“Fake” meat: Where are the human safety tests? (p. 15): Pete Hardin discusses how the human gut biome is important for human health. Further, the gut’s bacteria may react adversely to “novel” proteins – i.e., proteins to which the gut micro-biota are not accustomed. That said … Hardin puzzles whether there are human safety tests for lab-cultured meat products. Since the early 1990s, the federal government has not required biotech food products to have any special safety tests conducted. Lab-cultured meaete products are produced using biotechnology. Human safety: We can’t let that stand in the way of profit, can we?

WI DOJ’s failure to prosecute blasted (p. 15): On September 19, two witnesses testifying before Wisconsin's ag board blasted the failure of the Wisconsin Department of Justice to prosecute a firm that tried to move contaminated cheese into the human food chain. “Shorty” Miller and Pete Hardin demanded that the ag board push the state’s DOJ to enforce the law and penalize the wrong-doers.

DFA: History of avoiding gov’t antitrust scrutiny (p. 15): Pete Hardin reviews the long history of DFA avoiding the short arm of federal antitrust overseers. Maybe, just maybe, events in the second dairy antitrust case in federal court in Vermont will catch the attention of Washington, D.C.

Dairy Farmer Suffers Collateral Chemical Damage from PFAs (p. 16): Writer Paris Reidhead explores the dangers of PFAs – industrial chemicals used heavily in applications such as fire- and stain retardants. These chemicals are a threat to human health and apparently do not bio-degrade.
More next month …

September 2019 – Issue No. 482

Inside this month’s issue …

OUR STORIES OF THE MONTH (Click the blue title below to read "the complete story"):

Foremost Farms’ President/CEO & CFO Canned (p. 1 & 3): One of our “Stories of the Month.”

Source: WI DOJ Won’t Prosecute Mink Farm’s Crooked Cheese Antics (p. 3): Another “Story of the Month.”

SUBSCRIBE TO THE MILKWEED TO READ ALL THESE CURRENT DAIRY STORIES!

NOW OFFERING ELECTRONIC SUBSCRIPTIONS

9/9/19: CME Block Cheddar Price at $2.00/lb. (p. 1): Strong demand drove spiking block Cheddar prices to the $2.00/lb. benchmark on September 9.

Agriculture Caught in Trade Wars’ Cross-Fire (p. 1): No end is in sight for the multiple trade wars in which the United States is enmeshed. Agriculture is shouldering a huge share of the financial burden of these international economic disputes.

Foremost Farms’ President/CEO & CFO Canned (p. 1): Amid rumors of missing millions of pounds of cheese inventories, the board of directors of Foremost Farms has removed that co-op’s President/CEO (Michael Doyle) and Chief Financial Officer (Olga Longan). If these events happened at a stockholder owned corporation, investors would be screaming for answers.

Pending “Hard Brexit” Will Severely Disrupt UK’s Dairy Industry (p. 2): The United Kingdom is descending into political chaos as Prime Minister Boris Johnson tries to force his nation’s exit from is trade agreements with the European Union in late October. UK dairy farmers and consumers will be particularly hard hit, since that nation imports large volumes of fluid milk and cheese.

USDA’s August Grain Projections are Real “Head-Scratchers” (p. 2): In August, USDA came out with forecasts projecting 90 million acres of corn plantings and corn yields at 169 bushels per acre. What planet’s corn crop were USDA analysts covering?

Milwaukee Journal-Sentinel Exposes National Dairy Promotion $$$ Waste (p. 2): On September 4, the Milwaukee Journal-Sentinel unveiled weeks of hard digging in to Dairy Management, Inc. by investigative reporter Cary Spivak. Spivak revealed wasted financial resources at the nation’s biggest dairy promotion group.

Administrative Hiccups Plague DMC Payments to Some Producers (p. 3): Most of the 17,000+ dairy farmers who signed up for the Dairy Margin Coverage program have received two payments. However, some producers spread across several states have received zero payments. Officials at both the Wisconsin and Washington, D.C. offices failed to return telephone inquiries from The Milkweed on this matter.

Source: Wisconsin DOJ Won’t Prosecute Mink Farm’s Crooked Cheese Antics (p. 3): After 11 months since the state’s ag department investigators turned over the file to the Wisconsin Justice Department, there will be no action taken against a mink farm that tried to sneak sub-human grade cheese into the human food chain. The cheese contained sand and gravel. and was sold as below human-grade back in 2016. No legal charges will be brought. Why? “Nobody got poisoned.” Huh.

Southeast Co-ops Struggle in Effort to Revive Regional Superpool (p. 4): Dairy co-op leaders in the Southeast, under pressure from producers, met in August in Dallas, Texas to talk about re-establishing a regional raw milk superpool to gain over-order pricing. Despite dire needs to recover some marketing costs of Class I milk from processors, don’t anybody hold his or her breath on this one.

The A2 Milk Company, Ltd. Reports Spectacular Year-End Results (p. 4): The A2 Milk Company, Ltd. reported spectacular results for its fiscal year ending June 30, 2019. Examples: Total revenue up 41.4%, to $1.304 billion. Net profit after tax: $$287.7 million (+47%).

Danone Pressuring Organic Producers: Sign Money-Losing Contracts, or Else (p. 4): Organic dairy producers shipping their milk to Horizon in the Northeast are facing an ugly, “take it or leave it” contract offer from global food giant Danone (Dannon, here in the U.S.).

Report Finds WI Dairy Processing Surged, But Producers Economics Lagged (p. 5): Recently, UW-Madison ag economist Steve Deller unveiled his study of 2017’s economic impact for dairy upon the state’s economy. Bottom line, compared to 2012, business volume at dairy processors surged. But farm milk prices slid backwards.

Michigan Milk Produces Now Swiping $1.95/cwt. off PPDs (p. 5): Starting with July 2019 payments for members’ milk, the thieves at Michigan Milk Producers Assn. upped their deduct off the prevailing federal order Producer Price Differential (PPD) to $1.95/cwt. Previously, MMPA had been draining members’ milk checks to the tune of $1.72/cwt. – a figure budgeted in late summer 2018 to cover the co-ops losses. What incompetents!

$17.60: August Class III Price Rises 5-Cents Per Cwt. (p. 5): The August 2019 Class III (cheese) milk price reached $17.60/cwt. for milk pooled in federal milk orders.

Top-Notch Restaurant + Top-Quality Cheese = Award-Winning Fried Curds (p. 6-7): It’s tough work being a dairy writer some times. Jan Shepel was forced to sample Wisconsin’s best cheese curds at The Old Fashioned (a Madison restaurant) and then back-track those curs to the source: Henning’s Cheese.

Ripley’s Hillcrest Dairy Grows with A2 Guernsey Milk (p. 7-8): The hard-working Ripley family of Moravia, New York milks 500 cows. They also operate a dairy processing plant that makes fluid milk from their Guernseys – all of which are registered and A2A2. Paris Reidhead profiles the Ripley family.

“Patriotic” Farms Should Take One for The Team (p. 9): Writer John Bobbe reflects the growing frustration in farm country with claims that farmers are “patriots” sacrificing income and profits for the greater good of trade wars. Pardon the cynicism …

Mad Cornell Food Scientists Develop Butter Substitute (80% Water) (p. 9): Talk about stupid! Using funds from the New York State Dairy Promotion Order, Cornell University food scientists recently announced they’d developed a substitute “spread” that contains 80% water and 20% oil. That doesn’t leave much room for a wee bit of dairy products. Why should dairy farmers’ check-off dollars fund such research? Why should Cornell University research such crap?

Consumer Group: “Plant-based’ Meats Don’t Grow in Gardens (p. 9): Jan Shepel writes about recent information released by the Center for Consumer Freedom, which takes the shroud off plant-based “meat” products. Where’s “Mr. Yuk” when you need him?

Dairy Commodity Scene: Cheddar Blocks Spike, Butter Tumbles (p. 10): Pete Hardin review the diary commodity picture, which features strong demand pushing up block Cheddar prices at CME to 42.00/lb.. Meanwhile, imports of butter and anhydrous milk fat are depressing domestic commodity butter prices.

Wisconsin’s Justice Department: Gutless (p. 11): Pete Hardin lays out the facts and lays into the Wisconsin Justice Department for its failure to prosecute a mink farm that tried to sneak sand- and gravel-laden cheese into the human food chain. No prosecutions will apparently be made in this matter, which featured cheese sold in 2016 as sub-human grade due to contaminants. Logic from WI’s Department of Justice for not pursuing legal action? “Nobody got poisoned.”

Winter Rye Forage: Leave No Soil Uncovered (p. 11): Paris Reidhead extols the merits of using ryegrass as a winter forage crop. Benefits nclude: soil and moisture retention, carbon sequestration, and fresh green-chop forage come spring.

Farmshine marks 40th anniversary (p. 11): We congratulate Dieter Krieg, who founded the Pennsylvania-based dairy weekly, Farmshine, 40 years ago on September 1. Dieter’s family snuck out of East Germany in the 1950s, to become dairy farmers here in the United States. Dieter’s lifelong work combines a love of dairying and an appreciation of the free press. We also compliment Farmshine’s major contributing writer, Sherry Bunting – an ace investigative reporter.

WI Ag Department Taking Public Comments on CAFOs ‘til Sept. 13 (p. 12): Farmer/writer Tony Ends covers public testimony from Wisconsin citizens at recent hearings held by the state’s agriculture department. Those hearings sought public comments on the rules governing oversight of Confined Animal Feeding Operations (CAFOs, or large-scale livestock or poultry operations). Big-wig republican legislators tried to derail public comment on this most sensitive issue.

December 2019 – Issue No. 485

Inside this month’s issue …

OUR STORIES OF THE MONTH (Click the blue title below to read "the complete story"):

Dean Foods: Biggest Bankruptcy in U.S. Dairy Industry’s History

SUBSCRIBE TO THE MILKWEED TO READ ALL THESE CURRENT DAIRY STORIES!

NOW OFFERING ELECTRONIC SUBSCRIPTIONS

August 2019 – Issue No. 481

Inside this month’s issue …

OUR STORIES OF THE MONTH (Click the blue title below to read "the complete story"):

Global & U.S. Milk Production Will Feel Weather’s Impact (p. 1): One of our “Stories of the Month.”

Trade War Escalates; China Halts Imports of U.S. Farm Products (p. 1): Another “Story of the Month.”

SUBSCRIBE TO THE MILKWEED TO READ ALL THESE CURRENT DAIRY STORIES!

NOW OFFERING ELECTRONIC SUBSCRIPTIONS

Global & U.S. Milk Production Will Feel Weather’s Impact (p. 1): One of our “Stories of the Month.”

Trade War Escalates; China Halts Imports of U.S. Farm Products (p. 1): Another “Story of the Month.”

Aug. Dairy Marketing Doldrums Will Give Way to Sept. Craziness (p. 2): In August’s second week, dairy marketers are starting to see the draw of milk from the north and southwest to fill school milk needs in the Southeast. By mid-September, we see tight milk supplies having some processors puzzling where their milk needs will come from.

Signup Begins for Trade Mitigation Payments (p. 3): The highly-publicized second round of government payments to certain agricultural producers to cover financial losses due to the trade wars is off to a clumsy start. Many USDA county offices were not prepared to handle farmer signups on July 29 – the first day that Washington indicated farmers could begin enrolling.

July Class III Price Jumps $1.28 – to $17.55/Cwt. (p. 3): The headline says it all. Domestic cheese sales are good, and farm milk is tightening. These factors are driving up prices for commodity Cheddar.

California Co-ops Funding Review of Quota Implementation Program (QIP): Angry producers who’ve tried to force a referendum on continuing California’s fluid milk Quota program were turned down. But the fury behind their petition has propelled the state’s three biggest dairy co-ops to sponsor state-wide meetings to seek solutions to the problem. Meanwhile, after it was brought to the attention of California’s agriculture department officials that the state was deducting too much money from producers milk checks -- $.038/cwt. on all Grade A milk (3..5% bf test) – that deduct will scale back o $0.32/cwt.

Dean Foods: New CEO, Bad Q2 Results (p. 4): Dean Foods lost twice as much per share during Q2 as analysts had projected, and the value of its stock plunged. Former CEO Ralph Scozzafazza mercifully wasn’t around to explain another quarter’s horrid performance … he’s history.

St. Albans Co-op Members OK DFA Merger (p. 5): On July 29, members of St. Albans co-pop voted, 99-9, to approve merger with Dairy Farmers of America. The merger closed on August 1. In The Milkweed’s analysis, DFA failed to comply with Vermont laws requiring that present and retired producers holding equity in a merging cooperative be informed of details of that merger and their rights as dissidents.

Latest Foolishness – DFA’s 50/50 Dairy/Plant Beverage – Exposed in Farmshine (p. 5): Reporter Sherry Bnnting, writing in the Pennsylvania-based dairy weekly Farmshine, revealed DFA’s latest foolishness – marketing beverages that consist of half cows’ milk and half plant beverages. Worse yet, these products were developed by Dairy Management, Inc., -- the national milk promotion bozos.

DFA’s “50/50” Almond Milk and Oat Milk are NOT Class I Products (p. 5): The dairy ingredients in blended dairy/plant beverages not marketed by Dairy Farmers of America are NOT regulated as Class I (fluid) by USDA.

Conventional & Organic CAFOs Giving Dairy Producers a Black Eye (p. 7): Mark Kastel details how recent videos of animal abuse on mega-dairies are harming he image of all dairy producers. Thee videos have surfaced from workers at Fair Oaks Farms in Indiana and the De Jong organic dairy in Texas.

Sassy Cow’s Organic Status in Jeopardy (p. 7): Sassy Cow Creamery and its related dairy farm – Baerwolf Dairies – are on the verge of having their organic permits suspended by USDA for multiple violations of organic dairy standards. Sassy Cow Creamery is an organic producer-handler located nar Columbus, Wisconsin – northeast of Madison. Ironically, USDA is coming down hard on a small, Wisconsin organic dairy … when massive, “organic” mega-dairies from Texas are flooding organic milk markets with huge quantities of milk.

USDA’s Ibach & Purdue Hurting Organic! (p. 7): John Bobbe reports how recent comments by a high-level USDA official, Greg Ibach, stated that the government was entertaining the notion of allowing biotech-derived products to qualify under the agency’s organic standards.

WI Towns Safeguarding Water Find Uniform Frustration Under State Law (p. 8): Writer/farmer Tony Ends reports on how two Wisconsin towns – one in Green County and one in Kewaunee County – are enmeshed in legal battles trying to protect local water quality.

Emory University Probes Drug, Growth Hormone Residues in Milk (p. 8): Researchers at Emory University (Atlanta, GA) recently published a study that analyzed residues from nationwide samples of both conventional and organic fluid milk. A high percentage of conventional milk samples contained drug residues. Also, the conventional samples tested nearly 20X higher in bovine growth hormone residues, compared to organic samples.

Dairy Livestock Markets Flat at Best (p. 9): Tight cash-flows and uncertainty about quality/quantity of this winter’s feed supplies are keeping buyers’ hands in their pockets at the livestock auctions we survey each month.

These Dairymen VERY Unhappy with Dairy Revenue Protection (p. 9): Here’s what Wisconsin dairy producer Bob Froelich says about USDA’s new Dairy Revenue Protection Program: “…. it’s another one of those worthless programs where they’ve got their hand in our pocket.” Wrier/farmer Jan Shepel interviews two dairy producers who claim their agents selling Dairy Revenue Protection seriously misrepresented the benefits.

Dairy Commodities: Cheddar Stronger, Butter Declines, NFDM Weaker (p. 10): Solid demand and tighter milk supplies are pushing up commodity Cheddar prices at the Chicago Mercantile Exchange. Butter prices at CME have slipped backwards during the past month. The market tone for nonfat dry milk is weaker.

Strategies for our future soil and food sustainability (p. 11): Pete Hardin takes a “Big Picture” look at agriculture’s potential to help solve weather/climate events disruption or nation’s agriculture and commerce. Basically, Hardin proposes taking the extended Mississippi River watershed – from western Pennsylvania to Montana – and changing government programs to emphasis increasing soils’ organic matter and requiring cover crops to better protect against soil erosion. Every 1% increase in soils’ organic matter content increases the moisture retention capacity by 16,000 gallons PER ACRE.

DFA, DMI & ‘half-crap” milk/plant beverages (p. 11): From the headline, you can guess what Hardin thinks of DFA’s latest – marketing milk/plant blended beverages. Even worse, the “dairy promotion bozos” – Dairy Management, Inc. – are claiming to have developed that crap.

Long Range Forecast: Cornell Climatologist Comments (p. 12): Pris Reidhead reports that the 90-day outlook for temperatures across the U.S. is generally warmer, according to the National Oceanic and Atmospheric Administration. However, much of the northern Plains states and Midwest may expect normal temperature patterns. Heat units for the upcoming 90 days are critical, due to belated plantings of corn and soybeans this past spring. Farmers with late-planted crops are praying for a late fall frost.

July 2019 – Issue No. 480

Inside this month’s issue …

OUR STORIES OF THE MONTH (Click the blue title below to read "the complete story"):

Town Official's Vote to Curb Challenge Raises CAFO Conflict-of-Interest Question (p. 7)

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Industry Prepares for Tighter Milk Supplies, Higher Prices & Costs (p. 1): Looking ahead, we see contracting milk supplies due to adverse weather and four-plus years of low farm milk prices. Weather has been particularly tough for Midwest and Northeast dairy farmers’ crops so far in 2019.

New DMC Forage Adjustment Triggers Higher Payments to Producers (p. 1): Write Jan Shepel details how in mid-June, USDA changed its formula for forage costs used in the monthly calculations for dairy margin insurance. That change will boost pay-outs to participating diary farmers in the Margin Protection Plan.

St. Albans Co-op Members to Vote in July Re: Merger with DFA (p. 2): Members of the St. Albans Cooperative Creamery will vote on July 29 regarding the proposed merger with Dairy Farmers of America.

Dean Foods’ Metrics Erode Further (p. 2): Recent weeks’ sales for Dean Foods continue eroding. The firm’s stock value slipped as low as $.88/share on June 28, but have since rebounded all the way up to $1.07 on July 10.

Trump Delays Threatened New Tariffs On Mexican Imports: No Details (p. 2): At the last minute, just before the June 10 deadline to start affixing tariffs on all imports from Mexico, President Trump reneged and held off imposing those fees. At issue: Mexico’s inability to stem the flow of Central American refugees seeking to enter the United States.

June ’19 Class III Price Dips Slightly: $16.27/cwt. (p. 2): USDA’s benchmark price for Class III (cheese) milk; slipped backwards in June from the May price. June’s Class III was $16.27/cwt. for farm milk testing 3.5% milk fat.

Loud Griping about Dairy Revenue Protection Program Pay-Outs (p. 3): Starting in January 2019, dairy farmers could participate in a new “safety net” program: Dairy Revenue Protection. That program is modeled somewhat like insurance programs – sold by private firms that enjoy hefty premiums. Early participants are now loudly complaining that insurance agents selling Dairy Revenue Protection made unduly high representations about that program’s pay-outs.

DFA to Double Members’ Equity Requirements: To $3.50/Cwt. (p, 3): Dairy Farmers of America announced in early July that it would double members’ equity requirements – up to $3.50/cwt. for all milk marketed to the co-op in a year’s time.

Salvage Value: Corn’s Early Energy Peaks at Silking! (p. 4): Research shows that corn at the Silking stage has about 85% of the stored energy for ruminants (like cows) as is found at maturity. That’s interesting info for corn producers looking for some salvage value.

July-Planted Corn Silage Yield Data (p. 4): UW-Madison agronomist Joe Lauer explains tonnage gained by planting corn as source of quality nutrition for over-wintering livestock.

Dairy Task Force 2.0 Finalizes Report (p. 5): Wisconsin’s Dairy Task Force 2.0 completed its role with a set of more than four dozen recommendations to put “America’s Dairyland” on a better future path.

WI Budget Includes Dairy innovation Funds (p. 5): Wisconsin’s two-year budget kicked in on July 1. It includes funding for a Dairy Innovation Hub project.

Milk Quality Efforts Pay in Cow Health and on the Bottom Line Dividends (p. 6): Jan Shepel covers a presentation by a local veterinarian about all the benefits accruing from early detection/treatment of mastitis. Benefits include: more milk production, higher niilk quality (and premiums) and improved breeding efficiencies.

Dry Hay Situation Critical in WI (p. 6): The first harvest of forage in Wisconsin each year normally yields about 60% of the annual totals. Unfortunately, spring weather has been near impossible to find weather windows adequate to make hay. Shortages pending!

Town Official’s Vote to Curb Challenge Raises CAFO Conflict-of-Interest Challenges (p. 7): A recently seated supervisor in the Town of Sylvester (Green County, Wisconsin) has earned ethics complaints submitted by local citizens to the Wisconsin Ethics Commission. At issue: actions taken by supervisor Mike Witt to scale down the Town’s challenges to a local mega-dairy. Witt has admitted several business relationships with that dairy.

June Cheese Curd Promo Links Ellsworth Co-op & Kwik-Trip Stores (p. 8): In June, the Ellsworth Cooperative marketed several semi-trailer loads of cheese curds through Kwik-Trip stores. Kwik-Trip is a highly successful convenience store business with over 600 locations across the Upper Midwest. Kwik-Trip marketed 12-oz. packages of Ellsworth’s curds for $1.99 during the June dairy promotion.

Mixed Bag of Results fo Dariy Livestock Prices (p. 9): Springing heifer prices up at Brush, Colorado; down at Rosebush, MI; and too few sales to register at Kidron, OH in early July events.

“Blinders On” a USDA’s National Organic Program (p. 9): John Bobbe details the latest efforts by USDA’s National Organics Program officials to ignore questionable imports of “organic” grain from the Black Sea region.

Worries About Future Supplies Driving Up Cheese, Butter Prices (p. 10): In our commodity analysis, Pete Hardin explains how CME cheese prices have moved up nicely in recent weeks. Domestic sales are good. But concerns about future availability of products – due to tough weather and crop situations – may also be helping push up Cheddar prices a the CME.

Worries About Future Supplies Driving Up Cheese, Butter Prices (p. 10): Pete Hardin analyzes the current dairy market scene, attributing the recent uptick in Cheddar prices at the CME to both good domestic demand and concerns about future supplies of cheese, in light of challenges to the nation’s milk supply.

Isthmus article features The Milkweed’s 40 years (p 11): A local Madison area weekly paper recently profiled Pete Hardin’s 40th anniversary of publishing The Milkweed. Interested persons may go to the Isthmus website and read that article:

https://isthmus.com/news/news/the-milkweed-marks-40-years-as-dairy-industry-watchdog/

St. Albans Co-op “Assets” Evaluated AFTER Members Vote on DFA Merger (p. 11): Documents provided to members of the St. Albans co-op in advance of their voting on a proposed merger with Dairy Farmers of America, specify that the valuation of St. Albans’ assets will occur AFTER members so vote. They’re voting with blinders on.

Mother Nature’s Warning Shots over the Bow (p. 12): Writer Paris Reidhead takes a long view of the history of failed societies that have failed to protect their soil resources – from Biblical times to the present. Very interesting!

June 2019 – Issue No. 479

Inside this month’s issue …

OUR STORIES OF THE MONTH (Click the blue title below to read "the complete story"):

6/3/19 Crop Progress Report: Corn & Soybeans Severely Delayed (p. 1) . . . And

Butter Is BEST (p. 12)

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6/3/19 Crop Progress Report: Corn and Soybeans Severely Delayed (p. 1):
Unusually wet weather has continued to deluge America’s agricultural heartlands. USDA’s most recent Crop Progress report shows both plantings of corn and soybeans far, far behind average for the prior five years. Early June was the deadline for farmers with crop insurance to elect a “Prevent Plant” option.

Trump’s Tweets: New Tariffs Levied Against Imports from Mexico (p. 1):
In late May, the White House announced it would impose a 5% tariff against all imports entering this country from Mexico, effective June 10. The tariffs are intended to force Mexico’s government to crack down on migrants from Central American countries crossing Mexico and seeking to enter the United States. Trump threatens to raise the tariffs by another 5% each month, up to a peak of 25%. Many Republican Senators oppose this move.

Updated Strategies for Dairy Farmers’ Survival & Success (p. 2):
We update suggested strategies for dairy producers. #1: Lock in your corn costs for the next year N-O-W.

May ’19 Class III Price Rises to $16.38/cwt – Up $.44 (p. 2):
USDA’s Class III (cheess) milk price for May 2019 rose by $.44 from the April Class III. The May Class III is $16.38.

USDA Announces New Trade Mitigation Package for Farmers (p. 3):
Details to follow. The White House, acknowledging damage from various “trade wars” to its Republican farmer constituency, has announced new rounds of paymenets to offset lost foreign markets. Payments of some $14 billion will be spread out from June through early next year.

Dean Foods: No Rabbits(s), Probably No Hat (p. 3):
Amid reports of faster-eroding sales, Dean Foods’ stock hit $1.00/share on June 3. The stock since rebounded to $1.22 on June 6. No good news from America’s largest fluid milk processor.

Winterkilled Alfalf” Another Challenge for Dairy Farmers (p. 4):
Writer Jan Shepel takes a long look at alfalfa winterkill problems in Wisconsin. On May 19, the state’s branch of the National Agricultural Statistics Service issued a map of alfalfa conditions, dividing the state into nine regions. The winterkill problem exacerbates an already depleted forage supply in the state and region.

Twice Stung by Hay Prices: Pat & Andy Leonard’s 6-Way Forage Strategy (p. 5):
We visit the Lafayette County, Wisconsin dairy farm of Pat and Andy Leonard – a father-and-son team milking 48 high-producing Holsteins. In Pat’s early dariy career, two droughts (’76 and ’88) nearly put him under, buying expensive hay. So the Leonards are equipped to put up forage half a dozen different ways, if you include rotational grazing their herd.

Huge Wisconsin CAFO Manure Spill Case Settled for Only $80,000 (p. 6-7):
Writer/farmer Tony Ends digs deep into a 300+ page open records report from the Wisconsin Department of Natural Resources on a 275,000 gallon manure spill in St. Croix County in late 2016. Owners of Emerald Sky Dairy – the Tuls family – failed to inform the state of the spill for nearly 100 days after the mess was discovered.

Climate Cycles (Sunspots) May Mandate Cropping Changes (p. 8):
Writer Paris Reidhead draws upon a lot of history and science to explain how aberrant sunsot activity, which has commenced sometime in late 2018, is influencing North America’s extremely wet, cool weather patterns..

Fair Oaks Farms Grapples with Fallout from Undercover Video (p. 9):
On June 4, an animal rights group released a painful of animal abuse and drug use by some employees at Fair Oaks Farms in Indiana. Fair Oaks Farms officials responded that the parties involved have been dismissed. The video was viewed over 1 million times the first day it was posted on the Internet. Ouch.

Commodities: Block-Barrel “Split” Widens Again, Butter & NFDM Prices Stable (p. 10):
Pete Hardin reviews the dairy commodity scene. We expect tight butter/cream supplies in 2019’s second half, as well as a slow-down in farm milk production.

A very wet “Farm-ageddon” (p. 11):
Pete Hardin takes a “big picture” look at weather events impacting Ameica’s agriculture and food systems. He conservatively estimates we’ll lose 25-35% of 2019’sintended corn and soybean crops. The longer challenge: if aberrant sunspot activity is behind the past several months’ unduly wet, cold conditions – how does agriculture respond to feed the nation?

CDR/Babcock Hall Project Now Faces $11.6 Million Shortfall (p. 11):
Jan Shepel reports on a June 6 meeting involving Dairy Farmers of Wisconsin and UW-Madison officials over the long-delayed Babcock Hall/Center for Dairy Reseach construction project. Cost over-runs now total at least $11.6 million. UW-Madison officials seem clueless about many aspects of this project.

6/29: IA Dairy to Sell 3,000_ 1^st Lactation Holsteins (p. 11):
On June 29, Meadowvale Dairy will sell 3,000+ first lactation Holsteins at auction. The dairy is located near Rock Valley, in Iowa’s northwestern corner. The sale is being conducted by Overland Stockyard (Hanford, CA).

Butter Is BEST (p. 12):
Elizabeth and Tom Kearns of TomBeth Farms have created what’s probably Wisconsin’s first “hay bale-board” -- just east of the small dairy community of Seneca. Elizabeth spray-painted a plastic-wrapped, large square hay bale hellow – and then affixed the words, “Butter Is BETTER.” The “hay bale-board” phenomenon started in mid-February in eastern Pennsylvania and has spread dramatically back East. Bravo .. Elizabeth and Tom!

May 2019 – Issue No. 478

Inside this month’s issue …

OUR STORIES OF THE MONTH (Click the blue title below to read "the complete story"):

Staight Ahead: Global Surge in Human-Quality Protein Prices (p. 1)

China's Hog Deaths Drop Demand for U.S. Whey/Lactose (p. 4)

DFA Studying Doubling Member's Equity Requirements (p. 5)

Kansas Statue #17-1642: Ex-DFA Members May Object to Merger, Request Equity Pay-Out (p. 5)

DFA & Vermont's St. Albans Co-op Mulling Merger (p. 5)

SUBSCRIBE TO THE MILKWEED TO READ ALL THESE CURRENT DAIRY STORIES!!

Straight Ahead: Global Surge in Human-Quality Protein Prices (p. 1): One of our stories of the month.

Commodities to Springers: Dairy Prices Improving (p. 1): Another “Story of the Month.

River City Mayors: Tariffs & Flooding Are 1-2 Punch (p. 2): Jan Shepel reports on a recent conference call hosted by the Mississippi River Cities and Towns Initiative. The mayors bemoaned about the economic harm that soybean growers are facing, due to China’s countervailing duties. Also, damage from flooding along the Mississippi is a swelling concern.

Political Squabbling Blocks Progress on Gov’t Aid to Midwest Flooding Victims (p. 2): Republican and Democratic legislators in Washington, D.C. are doing what they do best: disagreeing. No legislation is moving to help victims of Midwest flooding. Why? Democrats want to extend additional disster relief to Puerto Rico, which is opposed by Republicans.

April ’19 Class III Milk Price Rises $.92/cwt., to $25.94 (p. 2): USDA’s Class III (cheese) milk price climbed $.92/cwt. in April – boosting farmers’ milk incomes for that month.

DMC Signups Still On Track for June 17; USDA Rolls Out New Online Dairy Decision Tool (p. 3): Jan Shepel updates the latest news on the upcoming Dairy Margin Coverage program. USDA will start taking producer sign-ups on June 7. There’s net money in this program for dairy farmers!

2017: Good Year for DMDI Execs’ Salaries & Compensation (p. 3): We finally obtained the IRS Form 990 for 2017 – the document that details the “milk promotion bozos” salaries and total compensation for that year. 2017 may have been a bad year for dairy farmers’ milk prices, but DMI’s top executives did just fine, financially.

China’s Hog Deaths Drop Demand for U.S. Whey/Lactose (p. 4): Prices for lactose permeate and certain whey derivatives are in free fall, due to declined demand from China. China is anticipated to lose at least 30% of its swine population due to the dreaded African Swine Flu.

DFA Studying Doubling of Members’ Equity Requirements (p. 5): Fresh off speing nearly $950 million to buy a processing firm that mainly makes plant-based beverages, Dairy Farmers of America’s leaders are “studying” plans to boost members’ equity requirements. Bets are that DFA’s member equity demands will jump from $1.75/cwt. on a year’s worth of milk sales up to $3.50/cwt.

Kansas Statute #17-1642: Ex-DFA Members May Object to Merger, Request Equity Pay-Out (5): Anybody know any former DFA members who are waiting up to 20 years to retrieve their “equity” in DFA? The pending merger with Vermont’s St. Albans co-op presents an opportunity for former DFA members to object in writing to the merger and be paid out their full equity amounts within 60 days, IF the merger passes. More on our website by May 20!

DFA & Vermont’s St. Albans Co-op Mulling Merger (p. 5): Vermont’s historic St.Albans Co-op direly needs to upgrade its processing equipment. That co-op’s leaders believe that a merger with DFA is their best option.

CDR Project Displays Incompetence of State Gov’t & UW-Madison (p. 6): At $11 million over-budget and 3.5 years behind schedule, the UW-Madison campus project to upgrade facilities for the Center fo Dairy Research is beleaguered by incompetence. The state’s dairy processors collected $18.4 million for that project. Late word: CDR will have to close for up to 1.5 years during the construction.

Q&A: Wisconsin Cheese Maker Ken Heiman’s Insights on UW-Madison’s CDR Project (p. 6): Want to know what one of Wisconsin’s leading cheese makers thinks about the delays and cost over-runs at UW’Madison’s Center for Dairy Research Project. We ask Ken Heiman of Nasonville, Cheese.

Wisconsin’s Silent Spring: Tight Credit for Dairy Producers (p. 6): An unknown percent of Wisconsin’s dairy producers have not been able to obtain loans for spring planting. The Milkweed estimates the percent is n the low double-digits. That’s serious.

Salmonella: A “Ticking Time Bomb” for the Dairy Industry (p. 7): Writer Jan Shepel has spent several hours listening to presentations on Salmonella from Dr. Don Sockett, an epidemiologist with the UW-Madison Animal Diagnostic Laboratory. Certain strains of Salmonella are very dangerous for dairy livestock and humans.

Alfalfa Winterkill Problems: Significant, But Vary by Region (p. 7): From numerous dairy regions, we’re hearing that alfalfa winterkill is a significant problem.

2019 Milk Prices Looking Better – But it Doesn’t Take Much to Beat 2018 Levels (p. 8): Writer Jan Shepel summarizes a wide-ranging presentation by University of Wisconsn-Madison dairy economist emeritus Dr. Robert Cropp. Cropp detailed his analysis, which draws upon a wide range of factors impacting dairy supply/demand, that price improvement for dairy farmers is finally happening in 2019.

A Structured Management Program for America’s Dairy Farmers (p. 9): Dick Bylsma, dairy director for National Farmers, lays out his organization’s logic for shifting federal milk order financial resources to better balance returns per cow for small, medium and large dairies.

Thicke’s Radiance Dairy: Organic Producer-Handler (p. 10): Paris Reidhead interviews Francis and Susan Thicke. They operate an organic dairy farm and process their milk into fluid milk and cheese.

FDA Updating “Allergen” Labels (p. 10): Three years after other food sectors had to comply with dictates of the Food Safety Modernization Act, FDA is updating compliance rules for dairy. There are some very bad pieces of advice being given out by state inspectors to dairy processors.

USDA’s Continued Failing to Protect U.S. Organic Producers (p. 11): Same story, different twists. Writer John Bobbe explains how USDA’s National Organic Program is failing to enforce many rules – particularly with regard to imported “organic” foods and grains.

Will USDA’s AMS Blow Another $5N of “Organic” Funds (p. 11): The 2018 federal farm law budgeted another $5 million for organic information. But writer John Bobbe explains how USDA’s National Organic Program wasted most of the $5 million allotment from the 2014 farm law on matters other than “organic.”

No “Rabbit Out of the Hat” at Dean Foods (p. 11): Dean Foods’ annual stockholders meeting came and went without any major revelations. Management claims that things are improving incrementally. Details to follow, maybe.

USDA’s Perdue Blasts Vietnam’s Glyphosate Ban (p. 12): Our nation’s prestigious Secretary of Agriculture, Sonny Perdue, recently blasted the government of Vietnam for instituting a ban on Glyphosate. Who is the United States to lecture Vietnam on the safety of herbicides, after our nation dumped over 20 million lbs. of poison on Vietnam in the 1960s and 1970s?

DFA’s Audit: Same-Old, Same-Old, But … (p. 12): Once again, DFA’s management :”put lipstick on a pig” (the co-ops annual financial report. Beyond the 2018 numbers, on January 4, 2019, DFA spent $947 million to acquire the outstanding stock interest in Stremick’ Heritage Dairy – a firm that processes lots of plant-based “milk” products, in addition to some real dairy milk.

Dairy Commodities Prices: Cheddar & NFMD Gain, Butter Maintains (p. 13): The dairy commodity price complex is moving up, although recent forays by block and barrel Cheddar into the $1.70s may have been premature. Milk powder prices and butter prices at the Chicago Mercantile Exchange are moving up.

Dairy Heifer Prices Start Rebounding! (p. 14): At livestock markets we survey in Michigan, Ohio, and Colorado, prices for #1 springing heifers climbed abouit $200-$225 per head in early May trading. \\

FDA: March Dairy Margins Also Trigger DMC Payments (p. 14): Just in from USDA … Jan Shepel reports that March 2019 will have pay-outs to dairy producers who sign up for the Dairy Margin Coverage at either the $9.00 or $9.50 per cwt. level.

Ken Nobis Now a MMPA Employee (p. 14): Which to believe? Hard to keep a good man down? Or, hard to get rid of skunk? Recently ousted director/president of Michigan Milk Producers Assn., Ken Nobis, is now working for the co-op as a senior policy advisor.

U.S./China trade war turns uglier (p. 15): Pete Hardin discusses the fallacies and dangers of the fast deteriorating U.S./China trade war. What happens if the Chinese quit buying United States’ Treasury bonds?

Weather Watch: Mother Nature Calling a Difficult Tune (p. 16): We report on a presentation by Jon Davis, head meteorologist for Riskpulse – a firm that consults agricultural interests on weather patterns and their possible impact upon crops and livestock. Davis’ presentation was given at the recent annual convention of the American Dairy Products Institute and the American Butter Institute.

Kilcer: Aberrant Sun Spot Activity Problematic for Ag (p. 16): Dr. Tom Kilcer of Advanced Ag Systems provides insights on cropping strategies.

April 2019 – Issue No. 477

Inside this month’s issue …

OUR STORIES OF THE MONTH (Click the blue title below to read "the complete story"):

Severe Flooding Disrupts U.S. Agriculture; All Prior Bets Off (p. 1) &

DFA Owns Stremicks – Plant “Milk” Processor (p. 1)

SUBSCRIBE TO THE MILKWEED TO READ ALL THESE CURRENT DAIRY STORIES!!

Feb ’19 Daily Mozzarella Output Up 10.3% Over ’18 (p. 1): Amazing! This past February, on a daily average basis, the nation’s cheese plants produced 10.3% more Mozzarella-style cheese. Double-digit growth for our largest cheese category is unprecedented.

Jan. ’19 WI Milk Output +2.9%, But Cheese Production -4.8% (p. 2): Clearly, reviewing data from this past December and January, the impact of distressed, out-of-state milk that was previously entering Wisconsin is becoming apparent. For both December ’18 and January ’19, despite the fact that Wisconsin dairy farmers produced more milk, cheese production in the state declined sharply.

DMD to Pay Dairy Farmers for January & February, Once Signups Begin (p. 2): USDA is still drafting the rules, but the 2018 federal farm law boosted the attractiveness of the new Dairy Margin Coverage program for dairy farmers. The pay-out for January 2019 will be about $1.50 per cwt. for producers that sign up for the full $9.50 margin coverage.

March ’19 Class III Price Jumps Up $1.15/cwt. (p. 2): About time. Rising commodity Cheddar prices boosted the Class III (cheese) price in March.

Dean Foods’ Financial Erosion Worsens Seriously (p. 3): Dean Foods is going down. The only remaining questions are which Chapter of Bankruptcy protection the firm will seek. And when. The company’s stock value has dropped into the low $2.00 range. In the past month or so, the face value of unsecured bonds has dropped by about one-third.

U.S. Senators Offer Bills to Review/Reform USDA Promotion Check-offs (p. 3): About time! Four U.S. Senators are backing bills to review and reform USDA’s numerous agricultural commodity check-off programs.

More Strategies for Survival & Prosperity (p. 3): The Milkweed offers several further strategies for dairy farmers to follow.

“Net Income Attributable to DFA” Stolen from Members’ Milk Checks (p. 4): In 2018, DFA claimed $39 million in “profits” from its operations. However, DFA increased the “spread” between what its members received for their milk and the USDA “All-Milk Price” by 8-cents/cwt. last year. What’s 8 cents a hundredweight? On DFA’s 52.7 billion lbs. of milk, that’s $42 million. For 2018, DFA members actually received 20-cents per cwt. less than the “All-Milk Price.” At DFA, profits within the core co-op operations are merely swiped from members’ milk checks.

ADPI Ready to Unveil “Dairy Protein Messaging Initiative” (p. 5): For more than a year, the American Dairy Products Institute has been assembling a Task Force to counter anti-milk messages with a positive campaign promoting dairy proteins. Blake Anderson, ADPI CEO, explains the background and goals of the “Dairy Protein Messaging Initiave” – to be unveiled in early May.

Epic Heartland Flood: Causes, Consequences … and Recovery (p. 6): Writer Paris Reidhead takes a long look at the disastrous flooding that has hammered America’s heartland during the past month. One of the most important revelations from Paris’ work: 100% of grain in flood-impaired storage facilities must be destroyed.

WI Farmer Leads Relief Convoy to Help Flood-Stricken Nebraska Farmers (p. 7): Writer/dairy farmer Jan Shepel interviewed Joe Keller, a Prairie du Sac, Wisconsin farmer, who lined up contributions of good and money and headed a relief convoy to help flooded-out Nebraska farmers.

Arena Cheese’s Three Foundations: Quality, Relationships & the Deli Counter (p. 8-9): The Milkweed profiles the success formula behind Arena Cheese (Arena, WI). Vice-president Bill Hanson is marking his 20th anniversary at Arena Cheese. In 2006, he partnered with Jerry and Ron Weil – St. Louis-area cheese marketers. Arena Cheese primarily produces quality cheeses for delicatessen customers.

Perdue Even Worse than Vilsack as USDA Chief (p. 10): Sonny Perdue has achieved in two years what Tom Vilsack accomplished in eight years: evolving as the worst USDA Sectretary. Bad enough that Sonny-boy is championing lab-cultured meat substitutes as “good for American agriculture.” But he’s also now sending U.S. meat plant inspectors to Brazil to expedite approval for [Foot-and-Mouth Disease infected] Brazil to ship fresh beef to the United States.

March 2019: Three Organic Groups’ Top Executives Dismissed (p. 10): Times are tough in organics. Three heads of Wisconsin-based organic farming organizations rolled in March. George Siemon is out at Organic Valley. Mark Kastel is out at The Cornucopia Institute. And John Mesko was terminated at the Midwest Organic and Sustainable Education Service (MOSES)

Hay Bale “Whole Milk Rebellion” Starts in PA (p. 10): Starting in February, some dairy farmers in Pennsylvania started taking milk promotion matters into their own hands. They’ve placed dozens of white plastic-wrapped hay bales alongside roads, urging passers-by to Drink Whole Milk – 97% Fat Free.” Virtually no check-off funded dairy promotion groups are championing Whole Milk. FDA rules prohibit marketers from claiming milk is “97% Fat Free” (in the case of Whole Milk). But these dairy farmers are exercising their “Free Speech” rights using their hay bales as roadside signage.

Wisconsin Cheesemakers Fed Up with Delays on CDR Project (p. 11): The project to modernize the UW-Madison’s Center for Dairy Research is three and a half years behind original schedule, with untold cost overruns. Wisconsin’s dairy processors – particularly cheese plant operators – dug deep to help fund this project. They’re steaming mad at the incompetence shown by University and state personnel on this project.

“StopQIP Coalition” Supporters Submit Petition to CDFA (p. 12): The California dairy producers’ group that’s attempting to force a referendum on the state’s milk quota system. That system takes $.38/cwt. from all Grade A producers and redistributes that money to quota-holders at the rate of $1.70/cwt. “StopQIP” supporters submitted a petition with signatures from 293 signatures from state dairy producers requesting that referendum be held by the state agriculture department.

CA Producers Should Look at Depooling’s Impact (p. 12): “Depooling” is a milk marketer’s discretionary decision to not associate some or all of a plant’s milk with the monthly federal milk order pool. In California, since the start of federal regulation in November 2018, most Class II (cultured products) and Class IV (butter-powder) milk have been de-pooled – over 1 billion lbs. for each month, November through February. The Milweed estimaes that this depooling drained $30 to $.540/cwt. from the federal milk order revenue pools for those months.

CDI to Join NMPF; Wants CA Standards for Entire Nation (p. 12): California Dairies, Inc. plans to rejoin National Milk Producers Federation after several years on the outs. CDI also wants to expand California’s higher fluid milk standards nationwide – a bad idea, in our analysis.

Cheddar Prices Strengthen; Butter Holding Firm; NFDM Slightly Down (p. 13): Dairy’s supply/demand picture is tightening, thanks to a number of factors, even during the spring flush. Strong demand for Mozzarella is pulling milk away from Cheddar production. Butter is holding. Farm milk supplies are tightening.

“Down Market” Erods Prices for Off-Grade Cheeses & “Trim” (p. 14): For the past several months, low-end commoditiy cheese prices have taken no pity on off-grade products and “trim” (i.e., the residual material from cutting and wrapping operations).

Trump Administration Wrong to Life Brazilian Fresh Beef Restrictions (p. 14): Bill Bullard, CEO of R-CALF USA, blasts the recenet move by USDA Secretary Sonny Perdue to send U.S. meat plant inspectors to Brazil to pave the way for importing fresh Brazilian beef into this country.

“Fake Meat” – What to call that stuff? (p. 15): Pete Hardin unloads on “Fake Meat” – cell-cultured meat substitutes. When will farm organizations and consumer groups wake up to the reality of such products – materials derived from genetically-modified yeast that primarily feed off of high fructose corn syrup?

Data shows cheese sales growth & Class I erosion (p. 15): In general, cheese sales are gong well. But in the fluid category, only Whole Milk is showing sales gains. Whether cheese or fluid milk, consumers are running away from low fat and no-fat products.

Flooding Boosts Contaminated Grain Worries: Testing Kits Available from Nelson-Jameson, Inc. (p. 16): Flooding in many areas of the country is stressing grain quality. Tests for Aflatoxin contamination of grain are available through Nelson-Jameson, Inc. – a Wisconsin-based supplier of many needs to dairy and food processors.

MMPA Delegates Dump Ken Nobis Off Board (p. 16): In March, delegates of Michigan Milk Producers Assn. voted long-tenured co-op president out of his position as director at large. Thus, Nobis is off the board and out of the presidency.

March 2019 – Issue No. 476

Inside this month’s issue …

OUR STORIES OF THE MONTH (Click the blue title below to read "the complete story"):

Dean Foods – Nation’s Biggest Fluid Processor – in Financial Meltdown &

Failing Operations & Pensions: Big Obstacles to Selling Dean Foods

SUBSCRIBE TO THE MILKWEED TO READ ALL THESE CURRENT DAIRY STORIES!!

Dean Foods – Nation’s Biggest Fluid Processor – in Financial Meltdown (p. 1): One of our “Stories of the Month.”   Click above to get the complete story.

Strategies for Dairy Producers in 2019 (p. 1): We offer a list of strategies for dairy farmers to help navigate 2019. Among them: Do sign up for USDA’s DMC program when it’s available later in the string. And Don’t waste time studying USDA’s new revenue insurance program or taking out futures/options positions with brokers.

Agriculture/Food Issues Prominent in Slow-Moving Trade Talks (p. 2): U.S. farmers shouldn’t hold their breath waiting for relief from the “Trade Wars.” Very little, if any, actual progress is moving in those fronts.

Poor Earnings, Big Write-Down Torpedoes Kraft/Heinz’ Stock (p. 2): Bundling $15.4 billion of write-downs in 2018’s fourth quarter proved painful for Kraft-Heinz’ stock value, which has declined by 24% since the beginning of 2019.

Feb. ’19 Class III Price Down Slightly to $13.89/Cwt. (p. 2): The headline says it all.

DMC Implementation Slowed But Promised by June (p. 3): Dairy farmers will have to wait until mid-spring to get details about signing up for the Dairy Margin Coverage program that is an improved “safety net” for farm milk prices – approved in the 2018 farm law. USDA Secretary Sonny Perdue has stated that checks will be issued in early July.

Failing Operations & Pensions: Big Obstacles to Selling Dean Foods (p. 3): Another “Story of the Month.”   Click above for the complete story.

Why Did Wisconsin’s Cheese Output Nose-Dive in December? (p. 4): Wisconsin’s cheese output in December dropped 3.9%, compared to December 2017’s total. That decline took place, despite state milk volume climbing a modest 0.5%. What happened? Far less distressed milk from out-of-state – especially Michigan – was entering Wisconsin, compared gto one year ago.

Best Guesses: Looking Ahead to 2019 (p. 4): Pete Hardin offers some looks ahead at the rest of the year, including less milk volume east of the Mississippi, poor-quality feed materials to be fed, a pending shortage of replacement heifers, and tight funds for spring planting expenses.

Livestock Manure, Farming Practices Accountable in WI Water Pollution Study (p. 5): Jan Shepel reports on findings from a recent study of northeastern Wisconsin’s water pollution problems by a USDA microbiologist. Livestock and farming practices – particularly manure storage – are the big culprits in that region’s groundwater quality problems.

Perfect Day and Memphis Meats: Ghots of “Pink Slime” Past? (p. 5): Paris Reidhead takes a long, hard look at fake “milk proteins”and fake “meat” that are prepared using genetically-modified yeast or cell-cultures. These products propose to displace consumption of real milk and dairy proteins. Where are the human safety tests for those genetically-modified products???

Latest USDA Dairy Products Report: Excellent 2018 Summary (p. 7): We reproduce and analyze data tables from USDA’s latest Dairy Products report – a summary of 2017 and 2018 manufactured dairy products across the nation. The best news: Spectacular Mozzarella gains – up 4.1% in 2018. Additionally, we review Cheddar Cheese, Butter, Nonfat Dry Milk, and Yogurt. Interesting to see two years’ data back-to-back.

USDA and NOP Doing “To” Farmes instead of Doing “For” Farmers (p. 8): John Bobbe, recently retired executive director of OFARM (the organic grain producers’ marketing agency), reviews USDA’s widespared failure to enforce rules governing organic agriculture.

Glyphosate Residues: “Gift” Keeps on Giving (p. 8): Paris Reidhead reviews the latest research on how long Glyphosate residues may last in soils. He also reports on another firm’s system for remediating those residues in soil.

Michigan Dairy Livestock Prices Improving (p. 9): At the March 6 auction at Rosebush, Michigan, prices for dairy livestock (other than calves_ were up $100 to $150 per head. That’s good news.

Cheddar and Nonfat Milk Prices Down Slightly, Butter Up a Bit (p. 10): We summarize the past months dairy commodity events

Strategy for Countering “Fake Meat” and “Fake Milk” (p. 11): Pete Hardin details strategies for dairy and livestock folks to push back against the threats of cell-cultured “meat” products and “fake milk” (derived from genetically-modified materials). Here’s a quick summary of the logic behind these suggestions:
     In 1991-92, a White House commission headed by then vice president Dan Quayle laid out about a dozen and a half economic sectors in which the United States could be competitive in the future. One of those sectors was biotechnology. Quayle’s commission recommended, and the White House approved, a policy that biotech-derived products were the same as their natural counterparts and needed no additional regulatory review (in other words, safety testing for biotech-derived foods). That determination came at the time when the recombinant bovine growth hormone issue was white hot. Biotech developers like Monsanto didn’t want any more furors over biotech foods. That’s the origin of the White House declaration that biotech products needed no additional regulatory review (safety testing).
     The vat-derived “fake meats” and “fake milk proteins” result from genetically-modified materials. In all likelihood, there are no human safety tests of these products.
      So, in these times, when consumer skepticism against genetically modified foods is at an all-time peak, imagine how dairy and livestock interests could publicly eviscerate these products with a publicity campaign designed to unveil GENETICALLY MODIFIED FOODS WITH NO HUMAN SAFETY TESTING. On top of that, a main “feeder material” for the “fake meats” is high-fructose corn syrup – a product that many food processors are now avoiding.

Sherry Bunting’s Amazing Investigation of GENYOUth (p. 11): Agricultural writer Sherry Bunting has produced a long-running investigative series on the GENYOUth program – an apparent waste of dairy farmers’ promotion dollars that ties in witih the National Football League in the “Fuel Up to Play 60” promotion. Bunting’s exhaustive research unveils much waste and foolishness in the GENYOUth program. Hilariously, PepsiCo was named GENYOUth’s “Vanguard Award” for dairy nutrtion promotion late last year. Right after that, PepsiCo unveiled its “Oat Milk” product and later bought “Muscle Milk” –a chemical-laden, anti-dairy product.

Middlebury, Indiana Cheese Plant Reflects MMPA’s Incompetence (p. 12): We cite Michigan Milk Producers Assn’s Middlebury, Indiana cheese plant as a measure of that co-op’s overall incompetence.

DairyAmerica Legal Case in Home Stretch (p. 12): Ohio dairy farmer John Rahm updates the nearly-over status of the decade-old class action lawsuit against DairyAmerica and California Dairies, Inc. The lawsuit, which was settled pre-trial, involves mis-reporting of milk powder prices to USDA by those two co-ops. Those too-low price reports resulted in dairy farmers losing millions of dollars. About 25,000 claims have been filed. Rahm expects the settlement to average about $1,000 per claimant, depending upon how much milk was marketed through the federal milk order system during the time frame in question (Jan. 2002-April 2007).

February 2019 -- Issue No. 475

Inside this month’s issue …

OUR STORY OF THE MONTH (Click the blue title below to read "the complete story"):

Dean Foods on Financial Tightrope: March 1, 2019 Deadline Looms (p. 1)

SUBSCRIBE TO THE MILKWEED TO READ ALL THESE CURRENT DAIRY STORIES!!

Lost Export Markets Boost U.S. Cheese Inventories & Erode Prices (p. 1): Jan Shepel details how lost export sales for cheese during 2018’s final seven months caused a build-up of inventories – particularly for American-style cheeses (like Cheddar). Inventories up, prices down.

Dean Foods on Financial Tightrope: March 1, 2019 Deadline Looms: The nation’s biggest fluid milk processor is in violation of covenants with lenders and has until March 1 to straighten out matters, or … (A Story of the Month.)

“Furloughed” Dairy & Farm Data to Slowly Resuscitate (p. 2): The 35-day federal gov’t shutdown means many important USDA dairy reports were not available. USDA personnel will belatedly be issuing these reports.

UW’s Stephenson: Challenges Continue for Dairy (p. 2): Jan Shepel eports on the dairy forecast offered by University of Wisconsin-Madison’s Dr. Mark Stephenson at the recent UW=Madison Agricultural Outlook Forum.

Jan. ’19 Class III Price Rose $0.18/cwt. to $13.86 (p. 2): The January ’19 Class III (cheese) milk price rose modestly, according to USDA.

Record Meat Supplies & Trade Tensions Will Depress Cattle Prices (p. 3): Dr. Brenda Boetel, agricultural economist at UW-River Falls, gave the outlook for the meat industry. She projects record supplies sof beef, pork and poultry will be sent to market in 2019. Trade wars will keep a lid on livestock prices this year, she expected. Reported by Jan Shepel.

Rep. Kind Weighs in on Trade Issues, Government Payments to JBS (p. 3): Wisconsin Representative Ron Kind (D) is hammering USDA for paying $5 million to JBS for pork purchases, using funds that were supposed to help U.S. farmers and processors financially weather the trade wars. JBS is Brazilian-owned.

Dairy Cow Slaughter: Big Surge in Late December (p. 3): Recently released USDA numbers show a big jump in dairy cows sent to slaughter during the weeks of December 15 and December 22. Farmers are culling cows to try to boost year-end farm income.

DFA Heavily Exposed to Collateral Damage at Dean Foods (p. 4): As Dean Foods’ financial stability is under a cloud, that firm’s single biggest supplier of raw milk is Dairy Farmers of America (DFA).

Phony Miyoko’s “Butter” Draws Legal Challenge (p. 5): A lawyer in New York State has filed a class action lawsuit against Miyoko’s Kitchen butter product. That “butter” contains no dairy ingredients.

Taking a Closer Look at Miyoko’s Kitchen’s Butter (p. 5): The ingredients on this product defy FDA standards of identity for butter. In late January or early February, Miyoko’s Kitchen’s on-line store was suddenly out of stock!

Dr. Robert Bradley Unveils Better Butter II (p. 5): UW-Madison emeritus professor of Food Science Dr. Robert Bradley has issued an updated version of his butter book. The new title is: Better Butter II. Dr. Bradley offers insights gained from a long professional career in this fact-packed book.

Organic Dairy Farmers Struggle to keep Milk Market (p. 6): Jan Shepel revisits the Uebersetzig family of Prairie du Sac, Wisconsin. Their organic dairy markets have been disrupted during 2018, but they’re now back – shipping to Cedar Grove Cheese.

Is Use of Glyphosate in Crop Production Leading to a Variety of Health Problems in Dairy Cows? (p. 7-8): Dairy Nutrition consultant Dieter Harley has assembled a wide body of research suggesting that Glyphosate residues in crops and water and impairing the health of some bovines.

Bioremediation Neutralizes Soil Glyphosate Residues (p. 9-10): Writer Paris Reidhead describes a mineral tea product sold by Bio Minerals Technologies (Logan, Utah). This firm’s products – derived from fermenting ancient humus from Alaska – help remove Glyphosate residues from soils. This product is important for numerous reasons, including the fact that later in 2019, China will start limiting Glyphosate residues on foods and commodities imported into that country.

Some Plant-Based “Milks” Are Nutritionally Closer to Pepsi-Cola than to Dairy Milk (p. 11): The staff of The Cornucopia Institute – the organic industry’s watchdog group – is compiling an analysis of various plant-based products that compete with beverage milk. The full report will be out in March. The Milkweed enjoys a sneak preview. In many instances, the nutritional quality of these plant-based, “milk”-type beverages is inferior.

California’s “Stop QIP” Going on the Road (p. 11): Organizers of the petition seeking a referendum to vote on California’s milk quota system are organizing a “road show” to visit major dairy regions of the state and seek signatures on their petitions.

Not a Swan Song! The Future of Organic Farming (p. 12): Our friend John Bobbe is retiring at the end of February from his post as executive director of O=FARM (a marketing agency for organic grain producers’ cooperatives). John offers his “parting wisdom,” but warns he isn’t going away.

2018 Farm Law Boosts Funds to Fight Organic import Fraud (p. 12): The 2018 federal farm law provides new teeth (and financial resources) for USDA to track the integrity of organic foods – particularly imports. Credit for this added funding should go to Wisconsin senator Tammy Baldwin and Montana Senator Jon Tester.

Cheddar Prices Rising, Butter & Milk Powder Holding (p. 13): The dairy commodity complex is steady (butter, nonfat dry milk) to rising (Cheddar). That’s good. We see good legs under nonfat dry milk prices as 2019 ensues. U.S. production is down and Europe’s mountain of aged, surplus Skim Milk Powder is virtually gone.

No Improvement in Dairy Livestock Prices (p. 14): The headline says it all.

Slaughter of the Innocents: Nationwide, Hundreds to Thousands of Dairy Calves Killed Weekly (p. 14): There is no market for many dairy calves right now – even females. By the hundreds, and perhaps thousands, many calves are being killed each week across the U.S. We’ve become the “Land of Milk and No Money.”

Dairy Policy Proposal: The National Dairy Disaster Assistance Program (p. 14): Mark Spurgeon, who milks cows near Seymour, Indiana, offers his novel solution for the U.S. dairy industry. Spurgeon proposes a “National Dairy Disaster Assistance Program” that would paya dairy produces in emergency conditions a premium to send their herds to slaughter. Spurgeon proposes to pay for these herd acquisitions by a $.40/cwt. deduct from all milk production. He theorizes that removing herds from disaster situations (fire, flood, tornado, human health, etc) would reduce surplus milk production and give a graceful exit to some producers.

Suicide Try by WI Organic Producer: Market Failure (p. 15): Following an attempted suicide by a Wisconsin dairy farmer, Mark Kastel – director of The Cornucopia Institute – urges depressed dairy farmers to seek out help. This producer had lost his organic milk market and then shipped to a small cheese plant that folded – owing producers unpaid milk checks.

Caputo Cheese’s “Grated Parmesan Style Cheese”is Suspicious (p. 16): The list of ingredients for this product is enough to gag a maggot. Yet on the back panel, the firm marketing this product brazenly refers to the product as “Parmesan.” Parmesan is a cheese with an FDA standard of identity. Parmesan may not legally contain ingredients such as “milk protein,” water, modified food starch, partially hydrogenated soybean oil, citric acid, guar gum, etc. Parmesan it ain’t.

“Down Under” Milk Trends: Kiwis Up, Aussies Down (p. 16): On the opposite side of the world, the two major dairy nations are seeing opposite milk production trends. New Zealand milk output this season is up – milk solids are up about 6% over last year. (Note: Last year, NZ was below the 2016-17 season.) Meanwhile, Australian dairy farmers are facing a terrible drought and heat wave – widespread deaths of milk cows have been occurring. Australian dairy farmers are facing very scarce, expensive supplies of hay.

January 2019 -- Issue No. 474

Inside this month’s issue …

OUR STORIES OF THE MONTH (Click below on the blue title to read "the complete story"):

Dean Foods: Preparing for Bankruptcy??? (p. 1)

Dean Foods: Profitable Units Sold o Cover Engle$-Era Debts (p. 4)

A Few Facts about Dean Foods’ Operations … (p. 4)

SUBSCRIBE TO THE MILKWEED TO READ ALL THESE CURRENT DAIRY STORIES!!

2019: Turnaround Year … for Dairy’s Survivors (p. 1):
Fewer dairy farms, reduced supplies of replacement heifers, feeding poor-quality 2018 crops, more cows headed to slaughter – all of these factors add up to tighter milk supplies and higher prices for dairy commodities and farm milk. Cheese inventories – backing up due to the trade war with Mexico – are dairy’s biggest problem holding down prices.

Dean Foods: Preparing for Bankruptcy??? (p. 1):
The nation’s biggest fluid milk processor recently released its latest 10-Q report. That report states that numerous subsidiaries’ accounts receivable – up to $450 million worth -- have been squirreled away so as to be “bankruptcy remote.” The Milkweed offers a lengthy analysis of Dean Foods’ finances and history. Vendors selling to Dean Foods should exercise caution.

Federal Government Shutdown Impacts USDA Programs (p. 2):
Our modern dairy industry is data-driven. During the gov’t shutdown, we’re missing: the monthly Cold Storage report, the weekly Dairy Cow Slaughter report, the monthly Dairy Products report, and all reports issued by the National Agricultural Statistics Service. Darn ….

New Pacific Trade Deal Likely to Hurt U.S> Livestock, Agriculture (p. 2):
After the U.S. torpedoed the Trans-Pacific Trade Deal, other nations have proceeded to fashion their own trade deal – without the U.S. U.S. exporters will likely face tariffs sending products to member nations of the new CPTPP.

Dec. 2018 Class III Price Drops $.66/cwt., to $13.76 (p. 2):
Low commodity Cheddar prices lead to low farm milk prices.

Dairy Provisions in New Federal Farm Law (3):
Dairy farmer/ag writer Jan Shepel details the changes in federal dairy policy coming out of the new farm law that was passed by Congress and signed by President Trump in December. Dairy farmers should pay close attention to the Dairy Margin Coverage package.

Calif. Class I Quota Trading/Prices Down (p. 3):
The petition drive to force a referendum on continuing the California Quota Implementation Program has gained about 145 signatures to date. Trading of Quota and prices have declined, since the petition drive started.

CA: Huge De-Pooling of Manufacturing Milk in Nov. (p. 3):
Over 1 billion lbs. of manufacturing class milk was de-pooled from the new federal milk order for California during the first month of operation.

Dean Foods: Profitable Units Sold o Cover Engle$-Era Debts (p. 4):
Dean Foods’ failing business model traces back more han 20 yeas to he debt-driven spree of acquisitions and excesses that saddled the firm with too much debt. Worst example: Borrowing $1.96 billion to pay out a one-time, $15/share stockholder bonus in 2007.

A Few Facts about Dean Foods’ Operations … (p. 4):
We mine available information to present key facts profiling Dean Foods.

Recent Practices Creating Future Dairy Replacement Heifer Shortage (p. 5):
Dairy producers face scarcer supplies of replacement heifers later in 2019, due to a series of reasons that we explain. Heavy use of beef bull semen in dairy cows and heifers is one factor.

12/7/18 Food & Agriculture Antitrust Conference in Madison, WI (p. 5):
The American Antitrust Institute held a day-long conference in Madison, Wisconsin in early December, with full focus on food and agriculture antitrust issues. Excellent meeting ….

Banks Tied to Dean Foods “Third Amended Credit Agreement” (p. 5):
We list the 17 financial institutions listed as lenders to Dean Foods in the company’s recent 10-Q report. Strange, but 7 of the 17 lenders are units of the extended Farm Credit System. Doesn’t Farm Credit have enough other headaches in dairy?

Q&A with Bill Bullard, CEO, R-CALF USA (p. 6-7):
Bill Bullard’s presentation at the American Antitrust Institute meeting in December offered eye-popping graphics and testimony about the erosion of livestock producer margins in the past four years … while consumer prices for retail hamburger have generally kept climbing higher. Bullard offers a long question-and-answer session on problems facing livestock producers due to concentration among meatpackers.

China’s Limits on Glyphosate Residues Will Alter Global Farm Practices (p. 8):
Paris Reidhead oulines the limits of China’s move to limit Glyphosate residues to 200 parts per billion in imported commodities and foods. China’s dictates are gong to set the stage for far stricter use of glyphosate on crops by producers who hope to export products to China.

Early January: Light Livestock Sales Activity (p. 9):
During the first week of January, sales activities at the livestock auctions we cover was very light.

Organic Market Disruptions in New York State (p. 9):
Two different buyers have issued termination notices to organic dairy producers in recent weeks: Maple Hill and Byrne Dairy.

NFDM Markets Strengthening, Butter Holding, Cheddar Groveling (p. 10):
Across the board price indices for nonfat dry milk are up – breaking the $1.00/lb. barrier at CME and Dairy Market News early January actions. Butter prices remain in the $2.20s (per lb.). But substantial inventories of cheese – particularly American cheese – are depressing Cheddar prices and the cheese complex.

Why is USDA championing “phony” milk/meat? (p. 11):
Pete Hardin lambastes former USDA Secretary Tom Vilsack and present USDA chief Sonny Perdue for their support of “phony” milk and meat, respectively. Under Vilsack’s tenure at USDA, the department developed genetically-altered yeast cultures to create dairy protein substitutes. Soon, the Perfect Day company is preparing to market that “stuff” (for lack of a four-letter word) to consumers.
And Perdue is crowing about how cell-cultured meat products (beef, fish and poultry) will benefit U.S. agriculture and help feed the world. What portion of U.S. agriculture does our nation’s overstuffed ag chief imagine will benefit from cell-cultured meat products produced in laboratories. Livestock farmers won’t benefit. Grain producers won’t benefit. We’ve heard all this “feed the world” technology horseshit before – when Monsanto was trying to cram recombinant bovine growth hormone down the throats of suspicious consumers.

Farm Credit System snared 3X in dairy’s problems (p. 11):
As if being strung out on loans to struggling dairy farmers and financially woebegone dairy co-ops wasn’t enough, 7 of Dean Foods’ 17 lenders are brnaches of the Farm Credit System. What happens if Dean Foods hit the financial rocks?

Knock. Knock. Is Anybody Home at USDA’s NOP? (p. 12):
John Bobbe details the latest antics of USDA’s National Organics Program, which is turning a blind eye to reports of suspicious “organic” grain imports from Eastern Europe and Russia.

African Swine Fever Explods in China (p. 12):
China is witnessing exploding cases of African Swine Fever. Paris Reidhead writes about how the Chinese government at first tried to block internet discussions of the disease – and now is trying to protect its pork industry with exclusion zones and depopulating swine herds.

UW-Madison Veterinarian Again Spouting Animal Rights Crap (p. 12):
Here he goes again! Dr. Nigel Cook, UW-Madison veterinarian, is again voicing specious warnings about how dairy animals houses in stanchion and tie-stall barns may be ill-tended. Last winter, Cook made a speech in Lancaster County, Pennsylvania (the heart of Amish country) warning that stanchion and tie-stall barns were “unjustifiable.” Proof? In a recent interview that appeared in Dairy Today, Cook claimed that 70% of dairy cows in stanchion or tie-stall barns have hair loss on their hocks. Egad. What about hair loss of dairy farmers at their wit’s end pulling out their hair wondering how they’ll survive this crooked industry’s pricing system?

December 2018 -- Issue No. 473

Inside this month’s issue …

OUR STORIES OF THE MONTH (Click below on the blue title to read "the complete story"):

Financial Crisis in Dairy Country: Industry Leaders Clueless (p.l)

Swiss Heritage Cheese Plant Terminating Amish Producers in Southern WI (p. 7):

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Financial Crisis in Dairy Country: Industry Leaders Clueless (p.l): Four years into dairy farmers’ crisis, the industry’s leaders have few honeste suggestions for betterment. The Milkweed proposes a novel, “5% Solution” – all farmers produce 5% less milk in January-February 2019 than they did for those months in 2018. Any better ideas?

Despite “Deals,” Tariffs vs. U.S. Ag Exports Remain (p. 1): Forget the politicians’ words. Tariffs remain in place against U.S. farm and food exports – making overseas sales all the more difficult.

Agencies Haggle Over Second Market Facilitation Payment (p. 1): A review by the White House Office of Management and Budget is holding up the second round of payments to U.S. farmers impacted by the tariff wars. So much for pre-election promises.

When(ever) Farm Bill Completed, Look at Risk Management Options (p. 2): If and when we have a new federal farm legislation, dairy producers should take a good look at the “Dairy Risk” package. Expectations are that will be a significantly sweetened version of the 2014 farm law’s “Dairy Margin Protection Program (DMPP—univaersallly regarded as a bust).

DFA’s “Tricky Rick” Smith Touts “Same Old Stuff” (p. 2): DFA CEO Rick Smith made a recent speech in Syracuse, NY, where he told of buying five more dairy plants and stressed the need for more cooperative consolidations (mergers).

Nov. 2018 Class III Price Drops $14.44/Cwt. (p. 2): Tumbling Cheddar prices pulled down the Class III price for USDA’s federal milk order program during November.

FDA Extends Comment Period on Plant-Based “Milk” Drinks (p. 3): Writer/dairy farmer Jan Shepel digs into the controversy surrounding plant-based beverages being called “milk.” The FDA is taking public commenets on the subject. FDA already has the power to enforce accurate labeling of milk.

Michigan Milk Producers Assn: 15-cent “Equity” Deduct Starts December 1 (p. 3): Here they go again. Delegates of Michigan Milk Producers Assn authorized the board to deduct another 15 cents per cwt from members’ milk checks – to build “equity.”

Is Wall Street Hammering Dean Food Stock too Hard? (p. 4): Following a loss in 2018’s third quarter, Dean Foods’ stock fell to $4.40/share on December 10. With its stock valued at around $400 million, and company debts in the $890 range, one must wonder if Wall Street isn’t being too brutal on Dean Foods. It would seem the tangible assets of the firm are worth more than the combined $400 million plus nearly $900 million in debt obligations.

Plant-based “Milk” Just the Beginning … (p. 4): We refer to a recent, excellenet article that appeared in the November 23, 2018 issue of Farmshine, written by Sherry Bunting. She covered two serious threats to dairy and livestock producers: “fake” milk and “fake” meat. These are items produced by genetic engineering, which hope to capture sales of dairy and meat products from traditional suppliers.

Big Cream Multiples in Northeast Peak at 1.6 (p.4): Tight regional cream supplies and desperate buyers drove up the high end of the cream “multiple” in the Northeast to 1.6 in November. In other words, desperate spot buyers paid 1.6 times the daily value of CME butter for cream. (Note: Loads of creamare adjusted according for milk fat content – usually around 50%).)

Largest Soybean Crop Ever Suffers from Lack of Market, Thanks to Trade War (p. 5): Jan Shepel covers the soybean woes. Exports to China have virtually ceased. Soybeans are piling up in storage as there is little market for that product. Blame the “trade wars.”

Insights Regarding WI’s Bovine TB Indemnification (p. 5): We glean information about how Wisconsin’s bovine TB indemnification program works. A herd in western Dane County is under quarantine, due to the disease.

Data Hiccups in Milk Powder Case Settlement (p. 5): Dairy farmers who produced milk from January 2002 through April 2007 that was regulated by the federal milk order system are eligible to submit claims for damages in a recently-settled Class Action legal matter. However, producers in the Upper Midwest should double-check their production histories, due to the fact that the Upper Midwest federal milk order no longer maintains pre-2006 milk production histories.

False God: Exporting U.S. Dairy’s Path to Prosperity (p. 6): Currently, Tom VIlsack is scurrying around the country, preaching the gospel of dairy exports. Vilsack wants to boost exports to 20% of U.S. milk production – a move that would leave U.S. dairy farmers even more vulnerable to the vagaries and trickery of international markets.

Biotech Interests Attacking Non=GMO Project & First Amendment (p. 6): Writer Paris Reidhead reviews a complaint filed with FDA last fall with the FDA by the Information Technology and Innovation Foundation (ITIF). That group is a pro-biotechnology lobby. ITIF wants to block use of the monarch butterfly symbol used by The Non-GMO Project.

Swiss Heritage Cheese Plant Terminating Amish Producers in Southern WI (p. 7): A group of Amish dairy farmers in southern Wisconsin have been notified that they’ll lose their milk markets on January 1. The co-op taking over milk supply responsibilities for the new owners of Swiss Heritage doesn’t accept Amish milk. A Story of the Month.

Dairy Heifers Undervalued … Relative to Future Needs (p. 7): The lowball prices for young dairy animals represent a bargain for folks with the facilities, feeds and skills.

Feed Issues Posed by Mycotoxins: An Update (p. 8): Paris Reidhead reviewed laboratory tests on corn silage and kernel corn samples from crop laboratories in the Midwest and Northeast. Toxins? Yes.

Dairy Livestock Complex Prices Tumble Lower (p. 9): No good news in the dairy livestock sales department.

“Stop QIP” Petitions in California Gaining Momentum (p. 9): We update the news on efforts by a group of California dairy producers to collect enough signatures on petitions calling for a referendum on California’s milk “quota” system. We include a Question/Answer session with Craig Gordon, a China, California dairyman who’s involved in the recall effort.

Cheddar Prices Tumble, Butter Holds, NFDM Gains (p. 10): The dairy commodity picture has a lot of uncertainty. Cheddar prices reflect slower sales for exports. Domestic cheese buyers are waiting to see what will happen with CME prices. Butter prices are edging slightly lower, a sign that the holiday season demand cycle is being met. Milk powder prices are rising slowly, following several months of reduced nfdm output in the U.S.

Despite weather, NY meetings go well. Emphasis on solutions (p. 11): At Pete Hardin’s recent pair of public meetings on dairy, farmers were listening closely and open to suggestions for improving dairy.

Good questions/scarce answers: In the Northeast, Pete Hardin was met with two very common questions from dairy farmers (p. 11): Why, if the price of soybeans is down,am I still paying high prices for purchased feed? Why, if milk is so tight, aren’t milk prices going up.

Dairy’s “San Andreas Fault” – Multiple Firms Pledging the Same “Asset” (p. 11): One of dairy’s biggest structural faults involves more than oe firm pleding the same, cash-flow “asset” as collateral to cover is indebtedness.

Walmart Store in Ohio “Sorry” – No Half-Gallons (p. 12): Talk about a big screw up! A Walmart store in Ohio has posted signs advising customers that they can’t purchase half gallons of milk until the end of January. The sign cites :”Supply Isssues.” In truth, Walmart’s start-up fluid milk plant at Fort Wayne, Indiana is off to a flopping start.

Organic Grain Fraud Continues, But Perhaps Two Small Rays of Hope (p. 12): John Bobbe of OFARM updates readers on the continued failure by USDA to dig into fraud involving imported “organic” grain.

November 2018 -- Issue No. 472

Inside this month’s issue …

OUR STORIES OF THE MONTH (Click below on the blue title to read "the complete story"):

Uncertainty : U.S. Dairy Industry Facing Confusing Market Signals (p. 1)
Soils Saturated in Eastern Half of U.S. (p. 16)

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Uncertainty : U.S. Dairy Industry Facing Confusing Market Signals (p. 1): One of our featured “Stories of the Month.

DFA Doubles Debt; Adding $1.1 Billion for 2 Acquisitions (p. 1): Another “Story of the Month.” Read it and weep, DFA members.

ADPI Kicks Off Pro-Dairy Protein Effort for Industry (p. 2): The American Dairy Products Institute is initiation an across-the-board effort to collect funds and research to answer critics of dairy proteins. This effort has early, widespread support.

WI Ag Dep’t Shifts “Off-Grade” Cheese Case to Atty. General (p. 2):

An investigation of attempted use of off-grade cheese for human food by Wisconsin’s state agriculture department has beef referred to the state’s Attorney General. A large mink ranch in eastern Wisconsin attempted to have sand and gravel-laden cheese cut and wrapped for human use.

Oct. 2018 III Price Down $.56, to $15.53/cwt. (p. 2): Lower values for Cheddar in USDA’s weekly surveys during October pulled down the Class III price in federal milk orders.

Sign-Up for Milk Powder Case Claims Announced Soon (p. 3): By the end of November information will be released for dairy farmers to sign up to collect damages from the long-running milk powder antitrust litigation. Who is eligible? Dairy farmers whose milk was marketed on federal milk orders from January 2002 through April 2007. Plaintiffs’ attorneys have milk production histories for virtually all eligible dairy producers.

Beef Demand Keeping Up with Supplies, BUT … (p. 3): In late October, a livestock marketing specialist at the Wisonsin agriculture department explained that strong beef demand was keeping up with cattle movement to slaughter. That situation has since changed.

DFW Launches Holiday Butter Promotion (p. 3):
Dairy farmers of Wisconsin will promote butter in Wisconsin during November-December, the peak period for retail butter sales.

Dairy Revenue Protection Insurance? Cautionary Comments (p. 4):
Pete Hardin offers his concerns about the recently announced program by USDA to provide “dairy revenue insurance.” Complex, and based upon CME quarterly dairy commodities futures prices – not a prescription for success.

Bovine Tuberculosis (TB) Found in Wisconsin Dairy Herd (p. 4):
Jan Shepel reports that three dairy animals in a 2,000-head Dane County herd have been confirmed to have bovine TB. The herd is currently under quarantine. Keep an eye on this one!

Oneida-Madison Co-op Ignoring DFA’s Threats (p. 4):
In Central New York, the Oneida-Madison co-op will market its milk independently, come January 1. The co-op had been told by its long-term marketer, Dairy Farmers of America/Dairy Marketing Services, to cease operations and have all its producers join DFA. Instead, Oneida-Madison’s 85 members’ milk will be sold directly to HP Hood plants at Oneida and Vernon.

Recent “Irregularities at CME Cash Dairy Trading Question “integrity” (p. 5):
Grade AA butter sold without the Kosher symbol? Low grade barrel Cheddar sold to unsuspecting buyers? Whey prices 15-cents out of whack with USDA’s weekly survey prices? Cash market events at the CME leave many in the industry questioning the integrity of dairy events at CME.

Two Wisconsin Cheese Plants Sold: F&A Cheese & Swiss Heritage (p. 5):
Two privately-owned Wisconsin Cheese plants have been sold. Saputo Cheese bought F&A Cheese (Dresser) and a Hispanic cheese company in Monroe is buying Swiss Heritage in Monticello.

Unrest in Golden State: Challenge to $1.1 Bil. Quota System.(p. 6):
Craig Gordon, an Ontario, California dairy producer, is a ringleader in the petition drive seeking to terminate California’s milk quota program. He offers detailed answers to questions about reasons for the petition drive.

CoBank Report: Shift to Larger Farms Extending Low Farm Milk Price Cycles (p 7):
Jan Shepel analyzes a recent report from CoBank that explains how the number of mega-dairies means that low price cycles are being extended.

Research Shows Milk Fat Derivative Enhances Infants’ Intellects (p. 8):
We cite a recent presentation by Dr. Rafael Jimenez-Flores of The Ohio State University. He detailed how Milk Fat Globule Membranes may be harvested post-processing. MFGMs have been shown to boost infants’ intelligence scores when added to soy-based formula products. Other health benefits may also accrue.

At South Mountain Creamery, FDA Skims (and Tosses) Common Sense (p. 9):
Paris Reidhead writes about the Sowers family’s struggles with the federal Food and Drug Administration. The Sowers process fluid milk from their dairy herd. FDA does not want to allow South Mountain Creamery to label its skim milk products sold in interstate commerce as “Skim Milk.” Rather, FDA is insisting the family label its skim milk products with the word “imitation.” The Heritage Foundation is supplying legal help to the Sowers in their battle with FDA.

“Pension Closure Expense” of $2.433 million Caused Big Loss for American Dairy Assn. & Dairy Council in Northeast in 2016 (p. 10):
Hard to believe, but the Northeast’s dairy promotion group lost over $2.1 million in 2016. Why? A huge cost of closing out an employees’ pension program in 2016 caused $2.4 million in unanticipated costs.

Q&A: Blake Waltrip, CEO of The A2 Milk Company U.S. (p. 11):
We interview the U.S. CEO of The A2 Milk Company about a wide range of issues, including his firm’s response to challenges to labeling claims.

Jersey Assn. & A2 Milk Co. Funding Purdue U. Milk Digestibility Research (p. 11):
The American Jersey Cattle Assn. is co-funding research at Purdue University to measure digestibility of a variety of milks. The A2 Milk Company is a co-funder of research being conducted by Dr. Dennis Savaiano.

NMPF Challenges A2 Milk Company’s Label Claims; Matter Now Heading to Federal Trade Commission (p. 11): The dairy co-op lobby is challenging claims by the A2 milk company about that firm’s products’ easier digestibility. See comments, page 15.

Nasty Mycotoxins’ Command Performance in 2018 (p. 12):
Paris Reidhead analyzes early reports from the fields and laboratories about contamination of 2018 crops by toxins in molds in areas that have been hit with heavy precipitation in recent months.

Tariffs’ Uncertainty Helps Push CME Cheddar Prices Backwards (p. 13):
Buyers are starting to sit on the sidelines, watching as slower export demand caused inventories to remain troubling.

Dairy Livestock Prices Falling Lower (p. 14):
Except for dairy/beef-cross calves, Jersey-Holstein-cross heifers in some markets, and nice, just-fresh 2-year old Holsteins in Michigan, we find little good news in dairy livestock prices.

Cranberry Growers Get Supply Control Rule from USDA (p. 14):
Writer Jan Shepel details how the cranberry industry belatedly gained USDA approval for supply control … as this year’s harvest was taking place. Jan suggests that maybe dairy could learn a lesson from cranberry growers.

Steel tariffs: Basis for destructive trade wars (15):
Pete Hardin traces back the origins of current trade wars to the 25% tariffs imposed on steel imports. Those tariffs were designed to harm China, which was only exporting 2% of the steel entering this country. Other nations countered with tariffs against select U.S. goods, including agricultural products like dairy. As long as these steel tariffs are in place, great uncertainty will hover over mainstream U.S. farm sectors such as dairy and soybeans.

NMPF attacks A2 Milk Company’s label claims (p. 15):
Doesn’t the nation’s dairy cooperative lobby have anything better to do that attack what may be the greatest opportunity for improved global dairy product consumption?

Soils Saturated in Eastern Half of U.S. (p. 16):
The accompanying soil moisture map tells it all. One of our “Stories of the Month.”

October 2018 -- Issue No. 471

Inside this month’s issue …

OUR STORY OF THE MONTH (Click below on the blue title to read "the complete story"):

Canadian Trade War “Victory” Claims for U.S. Dairy are Bogus (p. 1)

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Canadian Trade War “Victory” Claims for U.S. Dairy are Bogus (p. 1): One of our “Stories of the Month.”

Negotiators Finally OK New U.S./Mexico/Canada Trade Deal (p. 2): In the wee hours of September 30, negotiators for the three countries finally agreed to accept a revised trade package linking these North American nations. Writer Jan Shepel covers many of the details.

Sept. ’18 Class III Price Rises $1.06 to $16.09/Cwt. (p. 2): September’s cheese milk price rose by $1.06/cwt., thanks to improved cheese sales prices reported to USDA by manufacturers. Price gains by whey at the CME have not yet registered in weekly sales reports to USDA.

Grassland Dairy Products Out Seeking More Milk! (p. 3): In early 2017, Grassland Dairy Products (Greenwood, WI) terminated several dozen producers in Wisconsin and Minnesota from their markets with Grassland. At that time, Grassland blamed Canada’s restrictions on MPC imports for the decision to dump producers. Guess what? Grassland now needs more milk and its representatives are soliciting dairy producers in Wisconsin again. Milk is tight in the Upper Midwest.

Dean Foods Struggles with New England School Milk (p. 3): Dean Foods – which at one time controlled 80% of fluid milk distributed in southern New England – was failing to so adequately supply schools, institutions and food retailers with packaged milk in early September. This information was reported by the Boston Globe.

California’s Nov. 1 FMMO Arrival Has Questions (p. 3): California inaugurates a federal milk order system on November 1. Major questions remain, including: how will fluid milk processors recover their costs for higher-solids mandated by state law, and how much “depooling” of manufacturing milk will take place???

WI Dairyman Selling Semen from a “Bull for the Future” (p. 4): Ferdi Seeuws is a Wisconsin dairy farmer who owns, with his wife Barbara, a most interesting Holstein bull – “Presto.” The bull’s dam is classified Excellent and posts components of 5.5% fat and a hair short of 4.0% protein for her first two lactations. But Presto’s best attribute: he’s both A2A2 and Kappa-casein BB. High components & the right A2/Kappa-casein package make Prestp a “bull for the future.”

Biotechnology Front Organization Challenges “Non-GMO” Labeling (p. 5): A biotechnology front group has filed a Citizen Petition with the Food and Drug Administration, seeking to ban the phrase “Non-GMO” as an icon on consumer food products. The Information Technology and Innovation Foundation claims there is no scientific basis for differentiating consumer foods that are free from genetically-modified materials.

New Dairy Revenue Insurance Program Now Available (p. 5): The American Farm Bureau Federation has unveiled an USDA-supported insurance program for dairy farmers’ revenue. Writer Jan Shepel wades through the details here.

Barrel Cheddar Prices Out of Whack: CME Block & Barrels vs. AMS Survey Prices (pages 6-7): Another “Story of the Month.” In a nutshell, inferior quality barrel Cheddar transacted at the Chicago Mercantile Exchange has effectively caused the “dregs” to become the market price for 500-lb. Cheddar barrels.

Under-Water Crops Undermine Cattle Health and Nutrition (p. 8-9): Writer Paris Reidhead takes a long look at the impact of flooding and unduly wet weather upon crops and the health of animals consuming those crops. Paris relates some of his earlier experiences dealing with tremendous floods and wet conditions.

Counting Mycotoxins (p. 8): We print a list of highly-recommended laboratories for testing crops.

Aflatoxin Residue Tests for Raw Milk, Corn & Wheat Available (p.9): FDA sets a limit of 0.5 parts per billion for Aflatoxin residues in farm milk. Historically, aflatoxin residue contamination of farm milk in the Upper Midwest has not been a concern. But 2018 could be different. Nelson-Jameson, Inc. offers a package of Aflatoxin-testing devices for milk, corn and wheat samples.

Milk Supplies Tightening Amidst Good Commodity Demand (p. 10): Solid demand for cheese and butter is being somewhat confused by trading irregularities at the Chicago Mercantile Exchange. Cheese and butter inventories are heading down, seasonally. Tough weather and crop conditions will pull down U.S. farm milk productivity.

Elanco Selling Posilac® to Brazilian Firm (p. 11): Elanco found a sucker to take Posilac® off its hands – a Brazilian firm, Union Agener. Posilac(® is the most controversial veterinary drug in history. Consumer pressures have caused most U.S. dairy processors to disallow their farmers from using the milk-stimulating, biotech hormone drug. It is not known if Union Agener will continue sales of the drug in the U.S.

Dairy Markets’ Integrity??? (P. 11): Pete Hardin relates three items reported in this issue --- urregularities in CME trading for both butter and barrel Cheddar, as well as continuation of Mexico’s 25% tariffs on U.S. cheese. Individually, but even more so in tandem, these three events conspire to depress prices received by U.S. dairy producers as well as reduce operating margins for honest dairy processors.

Farm Law Expires, Conferees Spar Over Details (p. 11): The old federal farm/food law expired after September 30. Elected representatives in Washington have not concluded a new federal farm bill. Conferees are arguing bitterly over terms in that legislation. Republicans want to tighten up requirements for persons/families receiving supplemental food nutrition from the federal government. Writer Jan Shepel reports on B.S. as usual in D.C.

Novel Fungus – Black Tar Spot – Devastates Southern WI Corn Fields (p. 12): Writer Jan Shepel digs into a South American-derived fungus that has devastated many thousands of acres of corn in southern Wisconsin. Black tar spot halts photosynthesis, killing the plant. Once dessicated, corn plants are susceptible to being broken off by wind, as well as open to other problems such as mycotoxins.

September 2018 -- Issue No. 470

Inside this month’s issue …

OUR STORY OF THE MONTH (Click below on the blue title to read "the complete story"):

Severe Adverse Weather Battering Crops, Cows & Components Globally (p. 1)
Clear Signal: Dairy Supply/Demand Tightening (p. 1)
Two Maps Tell Two Tales: Drought and Wet Soils (p. 16)
Dairy Transportation Becoming a Severe Headache (p. 16)

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June & July ’18 Milk Dumpage Spikes in Northeast (p. 2): Writer Nate Wilson reveals shocking totals for “dumped milk” in the Northeast federal milk order. The June/July 2018 combined total for dumpage was 54 million lbs. – almost 900 milk trailers’ worth.

Prices Tight, July 19 Butter Output Down Slightly (p. 2): Strong demand for cream during July’s heat boosted cream “multiples” and meant that butter output slowed down that month.

USDA to Buy $50 Mil. of Fluid Milk for Food Programs (p. 2): It’s an election year.

August FMMO Class III at $14.95 (+85 Cents) (p. 2): All Classes of manufacturing milk rose in the federal milk order program during August.

USDA “Trade War” Aid Package for Farmers Details Announced (p. 3): With record speed, the Trump administration has published details and started sign-ups for farmers to make claims of lost income due to the trade wars. Soybean producers are the biggest apparent gaines, corn farmers bring up the rear.

Illegal Farm Worker Charged with Iowa Woman’s Murder (p. 3): A dairy farm worker from Brooklyn, Iowa has been charged with the murder of a 20-year old, female college student. The worker was in the country illegally. Fears are that this murder will be used to push a political agenda against illegal migrants.

Dairy Cull& Steer Prices Likely to Remain Low (p. 3): Supplies of dairy culls are abundant, as farmers send animals to slaughter to supplement cash-flow. In another couple months, we’ll see commercial cattle opeators start their fall culling. We forsee relatively low dairy cull cow prices until after January 2019.

Northeast Producers Finally Receiving Checks from DFA/DMS Antitrust Settlement (p. 4): In late August, eligible Northeast dairy farmers started receiving their payments from a $50 million antitrust settlement agreed to by defendants Dairy Farmers of America and Dairy Marketing Services, LLC. The amounts will average about $4,000 apiece. Settlement of that private antitrust case has not improved the anti-competitive antics of DFA and DMS.

Beware: DFA’s Actual Indebtedness Exceeded 2017 Monthly Milk Sales (p. 4): We document how DFA uses money due for payment for members’ milk marketings as collateral to cover its massive debts. In 2017, DFA marketed an average of $730 million of members’ milk per month. But DFA’s actual debt exceeded that amount.

Canada Returns to NAFTA Talks, But No Agrement Reached (p. 5): Writer Jan Shepel provides an update on the tumultuous international trade talks. While the U.S. and Mexico have recently agreed on terms of a bi-lateral trade deal, Canada remains on the outside.

FDA Rules Changes Sought to Legalize New Dairy Processing Technologies (p. 5): Writer Jan Shepel details efforts by Wisconsin dairy officials, in tandem with the International Dairy Foods Assn., to allow modernizing of dairy standards so that cutting-edge technologies may be used in processing.

Farm Bill Conference Committee Starts Reconciling Two Versions (p. 6): Writer/dairy farmer Jan Shepel lays out the respective versions of the Senate and House farm bills now in conference committee in Washington, D.C.

Collin Peterson: Bad Rollout for MPP-Dairy, Can it be Fixed? (P. 6): The main legislative sponsor of the original Margin Protection Program Dairy (MPP-Dairy), Minnesota Congressman Collin Peterson (D), now laments that the terrible roll-out of that program in 2015 has jaundiced many dairy farmers against any sort of participation in the more modern versions.

$12 Billion Trade War Bail-Out: A Windfall for China??? (p. 7): Ohio dairy farmer John Rahm and Milkweed editor Pete Hardin tam up to do an x-ray of the newly-created, $12 billion bail-out for farmers and agriculture just announced by the Trump administration. Curiously, it would appear that Chinese-owned agricultural and food processing interests could claim some of the payments! Talk about “stooopid.”

Using Ultra-Sound Can Help Manage Pneumonia in Calf Barns (p. 8) Writer Jan Shepel details how UW-Madison Veterinary School professor Dr. Terri Ollivett is using ultra-sound technology to detect respiratory infections in baby calves. Catching those infections early and treating them means more productive lives for those animals in the milking string.

Changes Ahead as California Enters FMMO Regulation (p. 9): On November 1, 2018, California’s dairy industry will be regulated by USDA’s federal milk order program. That change means multiple new regulations. The net impact appears to be higher costs for fluid milk processors.

WI’s Organic Dairy “Epicenter” Devastated by Flooding (p. 9): In late August and early September, incredible volumes of rain hit parts of western and central Wisconsin. In the “Driftless Region” south and southeast of La Crosse, the torrents were particularly devastating. That area features the greatest concentration of organic dairy farms in the country. Crops, fences, roads, bridges, homes and businesses were all devastated.

Glyphosate Residues Sneak Up the Food Chain (p. 10): Writer Paris Reidhead analyzes what’s behind resent research that revealed widespread contamination of grain-based human foods with glyphosate residues. Glyphosate is the most commonly used herbicide in the world. Hint: The problem is spraying small grain crops with glyphosate about seven to ten days pre-harvest. That practice yields uniform dry-down for farmers.

“Dicamba or Bust” for Bayer (Monsanto’s New Owner) (p. 11): Why will Bayer fight without mercy to protect its line of dicamba-based herbicides and dicamba-resistant, patented seeds? Because there’s nothing behind this latest generation of genetically-modified seeds that can be commercialized for the next decade!

CA Jury Awards $289 Million to Glyphosate Cancer Victim (p. 11): A maintenance worker in California who sprayed weeks with glyphosate-based herbicides for years gained a total award from a jury for $289 million. His lawyers asserted that the herbicide caused the cancer.

WHO: Ban Trans Fats Globally in the Next 5 Years (p. 12): Paris Reidhead covers the World Health Organization’s proposal to eliminate Trans Fats from foods over the next five years.

Fluid Milk Sales Dropped 2.2% in 2017 (p. 12): USDA recently released sales trends for fluid milk for last year – generally down. The postives were Whole milk sales (+2.5%) and flavored milk products (+6.8%). Otherwise, it’s all down, down, down.

Dairy Commodity Markets in “Wait and See” Game (p. 13): Pete Hardin’s monthly commodity review finds dairy marketings watching and waiting to see how several events play out, including: impacts of trade wars on dairy exports; how weather events may impair crops intended for dairy livestock; and what impact will come from severe drought in Europe, England and Ireland.

Dairy Livestock Prices Continue in the Basement (p. 14): Recemt dairy auctions show no improvement in livestock prices. The number of cull cows going to market means lower prices on the whole.

Lots of Hoop-Dee-Doo Over Agri-Mark’s 8/3 Albany, NY Meeting (p. 14): Over 300 attendees were at Agri-Mark’s dairy meeting in Albany, New York in mid-August. While some producers are enthusiastic about supply-control at the federal level, industry leaders and the Trump administration aren’t buying.

Short bursts … random thoughts (p. 15): Pete Hardin writes about the insanity of the current trade wars and realities behind some folks’ dreams of supply control.

“The Field Reps are Coming. The Field Reps are Coming.” (p. 15): Milk supplies are tight in the Upper Midwest. Cheese plants can’t get enough milk to meet orders. Class III “spot” prices are up to $2.00 over class price, according to USDA’s Dairy Market News. Pete Hardin warns dairy farmers they’ll start seeing field reps knocking on milkhouse doors, seeking farmers to switch milk markets. Hardin proposes a $20 “stop charge” – charge the field rep $20 to talk with him … a good way to separate out those who are serious from those who are just blowing smoke.

August 2018 -- Issue No. 469

Inside this month’s issue …

OUR STORY OF THE MONTH (Click below on the blue title to read "the complete story"):

Trade Wars? Dairy Commodity Prices Rebounding (p. 1)

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Weather Events Stressing Dairy Cows & Crops (p. 1): As the accompanying U.S. Drought Monitor map shows, several important dairy states/regions in the U.S. are being impacted by drought. The biggest problems are along the West Coast and Southwest. But central Wisconsin, nearly all of Michigan, northern New York and northern New England all face drought conditions. Heat and dry weather are already stressing dairy animals and crops.

Minus $2.22/Cwt! MMPA Drains Members’ June ’18 PPDs (p. 2): For June 2018, Michigan Milk Producers Assn. dug even deeper into members’ milk checks – swiping $2.22/cwt. from the Producer Price Differentials (PPDs). For January-May 2018, MMPA had swiped $1.87/cwt.

Salmonella Forces AMPI Whey Recall (p. 2): Associated Milk Producers, Inc. conducted a voluntary recall of whey, due to lab tests showing Salmonella contamination in samples. A handful of consumer products were also recalled, including Ritz crackers. No reports of illnesses have come forward. AMPI’s cheese plant at Blair, Wisconsin continues operating.

July ’18 Class III Price Drops $1.11/Cwt. (p. 2): Declining commodity values pulled down all manufacturing classes of milk in USDA’s fedseral milk order program fo July 2018.

$12 Billion in Gov’t Payments to Farmers Hurt by Trade Wars (p. 3): Pay ‘em to shut up. USDA is allocating $12 to pay to farmers who’ve suffered financial losses due to tariffs and lost sales stemming from the trade wars into which the United States has stumbled. Many critics pan the payments, claiming that farmers need markets, not welfare checks.

Dean Foods Posts $41 Mil. Q2 Loss (p. 3): As the nation’s largest dairy processor struggles to find internal efficiencies, its quarterly profits are suffering. “No pain/no gain” might be the company’s new motto. Wall Street investors are backing away from Dean Foods’ stock.

F.A.R.M. Scrutinizing Tie-Stall & Stanchion Barns + Worker Conditions (p. 3): The annual gathering of the F.A.R.M. (Farmers Assuring Responsible Management) had nothing better to do than talk about whether tie stall and stanchion barns are bad for dairy cattle health. Starting next year, F.A.R.M. inspectors will start closely monitoring hocks of cows in those barns. Also, in 2019, look for F.A.R.M. to start digging deeper into employees’ compensation, time off, break rooms, etc. Just what we need …

WI Ag Dep.t Investigating Off-Grade Cheese Fraud (p. 3): Wisconsin’s agriculture department is investigating a situation where off-grade cheese sold as sub-human grade was set to a cutting and wrapping firm. A mink farm in eastern Wisconsin is apparently the culprit. Ag Dep’t officials may not comment upon an ongoing investigation.

Long-Running Milk Powder Lawsuit Settles: $40 Million (p. 4): After more than nine years in litigation, the lawsuit against defendants DairyAmerica and California Dairies, Inc. settled for $40 million. At issue, mis-reporting by defendants of milk powder prices to USDA during the years 2002 through early 2007. This story tells a complete history of the matter, since The Milkweed’s reporting initiated the matter.

FDA Foot-Dragging on Enforcing Standard Dairy Definitions (p. 5): Paris Reidhead takes a tough look at recent statement by the commissioner of the Food and Drug Administration that the agency will reverse prior course and start enforcing dairy standards of identity in consumer product labeling. Previously, FDA had contended it didn’t have the resources to enforce its existing laws when it came to plant-based products called “milk.”
FDA will start soliciting public comments about enforcing its existing laws. In high school basketball, such a strategy would be called “The Stall.”

Ohio Dairy Promoters: Win Some, Lose Some (p. 5): Dairy farmer John Rahm reports on local dairy promotion efforts at county fairs. At the Shelby County Fair, dairy promoters were disgusted that Dean Foods delivered 2% milk (instead of the ordered whole milk) and charged $6.10 per gallon!

Farm Bureau: “Dairy Revenue Insurance Plan” Available in Fall (p. 6): Writer Jan Shepel reports details of the recently released “Dairy Revenue Insurance Plan” from the American Farm Bureau. Premiums for this program will be mostly subsidized by USDA.

How Many Gov’t Subsidies Needed To Offset Failed Pricing/Marketing/Trade? (p. 6): Pete Hardin runs through the newly-hatched (in 2018) plans from the federal government to subsidize dairy farmers’ incomes. The taxpayers are paying a mighty fee to compensate for the federal government’s historic failure to overse fair milk pricing, fair marketing, and reasonable trade policies.

DFA Looking at Fluid Milk Plant in Eastern Pennsylvania (p. 6): Dairy Farmers of America is reported close to acquiring Clover Farms (Reading, PA) – a well-regarded, efficient fluid milk processor. That purchase, if finalized, would further cement DFA’s strategy of putting together a Maine-to-Florida combination of farm milk and fluid milk processing.

Wisconsin Farmer’s Hotline Calls Rise Dramatically (p. 7): Writer Jan Shepel reports on the Farmer’s Hotline crisis center operated by the Wisconsin Department of Agriculture, Trade and Consumer Protection. As we’ve reached three and a half years of low milk prices, a lot of dairy farm families are seriously stressed out.

The Cornucopia Institute Details “Industrialization of Organic Dairy” (p. 7): The watchdog of organic farming and foods – The Cornucopia Institute – has recently released an exhaustive report on organic dairy’s takeover by industrial-sized farms and big processors. Also, Cornucopia has come out with a scorecard for organic dairy processors.

DFA Targets Oneida-Madison Co-op in Central New York (p. 7): The latest local cooperative in New York State to get the word from DFA to quit business and have its members join DFA is the historic Oneida-Madison co-op. That co-op counts about 85 farms as members and has marketed its milk through DFA/DMS and their predecessor, Dairylea Co-op, for about 40 years. For many years, Oneida-Madison has sold its milk to HP Hood plants in nearby Vernon and Oneida.

Accurate Labels Act: Another Wolf in Sheep’s Clothing? (p. 8): Writer Paris Reidhead draws upon the wisdom of two leading consumer activists – Patty Lovera of Food and Water Watch and Dr. Michael Hansen of Consumers Union – to flesh out sordid details of the “Accurate Labels Act.”
That legislative proposal is before both the U.S. Senate and House of Representatives. It’s dangerous – “Big Food” running wild.

Dairy Commodities Regain Most of June’s Price Erosion (p. 9): A pleasant surprise! Dairy commodity prices have rebounded positively from the losses incurred in the second half of June and early July. What’s going on? Strength in the domestic dairy market, for one.

Dairy Livestock Prices Declining (p. 10): Little good news here for sellers. All of the local auction markets that we talk with report lower prices for early August sales.

Milk-pricing: a game of “keep-away” (p. 11): After 40+ years of writing about milk pricing and dairy economics, Pete Hardin concludes that it’s just a game of “keep-away” == that is, keep the money away from the farmer.

Gov’t “base” or “quota” program – wrong solution. Pete Hardin encourages individual dairy marketers adopt “base” programs when necessary. But he warns that a complex government program with a “one-size-fits-all” mentality won’t work effectively.

Side by Side in the Dairy Case: 2 Gallons, $1.90 Difference (p. 12): Two half-gallons, side by side in a supermarket dairy case in southern Wisconsin. Price difference: $1.90 per gallon. Both packaged by Dean Foods.

Soy/Coconut/Almond/Cashew “Milks” in Giant-Eagle “June Dairy Month” Ads (p. 12): Talk about adding insult to injury! A recent “June Dairy Month” promotion ad issued by Giant-Eagle supermarkets included plant-based milks among is specials to celebrate June Dairy Month.

July 2018 -- Issue No. 468

Inside this month’s issue …

OUR STORY OF THE MONTH (Click below on the blue title to read "the complete story"):

International Trade Wars Disrupting Dairy Commodity Prices

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Cheese/Butter Inventories Help Depress Dairy Prices (p. 1):
    USDA’s May 31, 2018 Cold Storage Report found record amounts of cheese and butter in commercial warehouses. Those inventory figures have helped depress commodity values for those products.

House Then Senate Pass Their Versions of Farm Bill (p. 2):
    Dairy farmer/writer Jan Shepel details the current status of the respective versions of the farm legislation passed by the U.S. Senate and Congress. The versions are quite different, and will need reconciliation in a conference committee later this summer.

June ’18 FMMO Milk Classes Higher, BUT … (p. 2):
    All manufacturing Classes of farm milk use were higher for June 2018, for milk priced by USDA’s federal milk order system. However, USDA’s weekly survey prices did not generally reflect the big declines in Cheddar and butter prices at the Chicago Mercantile Exchange during June.

Big Price Tumble for July Milk Looms (p. 3):
    Looks like the impact of late June dairy commodity prices will be mostly felt when producers see their final payments for July 2018 milk deliveries.

U-MINN Ag Economist Bosic Touts “Mega-Dairy” Visions (p. 3):
    University of Minnesota dairy economist Marin Bosic testified at a state Senate hearing earlier this year that he saw 80% of Minnesota’s dairy farmes as “last generation” enterprises. He sees the future as being populated by dairies housing tens of thousands of milk cows. Huh.

Weather Events Bear Close Watching in U.S. and EU (p. 3):
    Keep your eyes on the weather and the crops. We see the possibility that both the United States and the European Union face weather challenges to milk production in the coming year.

U.S. Dairy Leaders Pursuing “Good Mexico/Bad Canada” Strategy (p. 4):
    A large consortium of several dozen dairy firms has requested the Trump administration to lift the tariffs levied against Mexican steel and aluminum, at least until the NAFTA treaty is renegotiated. Mexico, our largest dairy export customer, has hit U.S. dairy products with retaliatory tariffs of 10% to 25%. Meanwhile, for some strange reason, Canada continues to be the bad guy in the eyes of U.S. dairy leaders.

Northeast FMMO Drops Fall Class I Shipping Requirement to 10% (p. 4):
    Dairy marketing groups will only need to put up 10% of their total milk supplies ot serve the fluid milk markets in the Northeast this coming fall.

AMS Doesn’t Calculate Monthly Milk Movement Between Mid-East and Upper Midwest FMMOs (p. 4):
    A request to USDA regarding monthly data fo movement of milk between the Mid-East and Upper Midwest federal milk orders was denied.   USDA does not calculate or release that data on a monthly basis – only nationally.

Soybean Prices & Exports Hammered by U.S./China Trade War (p. 5):
    Like dairy, U.S. soybean farmers and their extended industry are being hammered in every fashion by import tariffs imposed by China. Writer Jan Shepel takes an in-depth look at current pressures facing this nation’s soybean processors

Dairy Industrialization at a Rapid Clip (p. 5):
    Small- and medium-sized dairy farmers are being shunted on the side track … at best … these days.

Three Village Cheese Company ... as Local as it Gets (p. 6):
    Writer Paris Reidhead visits a small, artisan cheese business located in Central New York --- Three Village Cheese, owned by the Felio family.

CME Weekly Dairy Prices vs. AMS Survey: Is Something Goofy? (p. 7):
    June 2018 showed a tremendous difference between weekly CME Cheddar prices and the prior week’s survey prices conducted by USDA’s Agricultural Marketing Service. Pete Hardin compares the weekly data for these two measures of Cheddar prices. The CME prices – the basis for which most cheese is sold – came in far lower than the AMS survey prices – the benchmark of actual raw milk costs calculated by the federal milk order program.

June 2018: Red-Ink Bath for Some Cheese Plants (p. 7):
    June 2018 will see many cheese plants “buy high” and “sell low” – the way farm milk and cheese pricing systems work. During June, the sharp declines in cheese prices also contributed to inventory losses by some cheese plants.

Cornucopia Institute Unveils Turkey’s Corruption of U.S. Organic Grain Market (p. 8):
    The Cornucopia Institute – the “watch dog” group for organic agriculture, recently unveiled a thoroughly detailed study into the fraud behind much of the gain imported from Turkey. Cornucopia’s farm policy analyst, Anne Ross, dug deep into the murky waters of the organic trade press. Required reading if you’re interested in organic agriculture!

Dairy Guest Worker Proposal Gutted from House Immigration Bill (p. 8):
    Jan Shepel details how the attempt to secure a special “Guest Worker” status for agricultural workers was yanked at the last minute from legislation in Washington, D.C.

Southeast Milk, Inc. Board to Explore Relationship with DFA (p. 8):
    n June, the board of directors of Southeast Milk, Inc. – the predominant dairy co-op in the Southeast – voted to be open to review of proposals that may come from Dairy Farmers of America for some sort of working relationship.

All Dairy Commodity Prices Decline at CME (p. 9):
    All fall down … thaat’s about it. But keep an eye on the weather’s role in milk production in the United States and Europe.

Dairy Livestock Prices Generally Trending Lower (p. 10):
    Prices for dairy livestock at auctions reflect the value for milk at the processing plant.]]

Silence of the dairy sheep … (p. 11):
    Dairy’s leadership has been virtually silent regarding the milk price crisis, in addition to not challenging the White House on the subject of the “trade wars.”

Learn from our neighbors (11):
    Pete Hardin urges that the U.S. dairy industry study the Canadian milk system, instead of damning it. Matters such as supply control and the “Class 7” export price bear a second look.

Scary combo: Inflation/recession stoking (P. 11):
    Pete Hardin lists a number of factors pointing towards a run-up of inflated costs. Some of those concerns include: energy costs, steel costs, and interest rates.

“J/X” Controversy Upends Politics at American Jersey Cattle Assn. (p. 12):
A “dark horse” candidate – Jonathan Merriam of California – was elected president of the American Jersey Cattle Assn. in June. His candidacy was sparked by the issue of Jersey-crosses being considerd for full membership in the breed.

Heat/Humidity Spurring Many Dicamba Drift Complaints in ’18. (p. 12):
Paris Reidhead takes an early July reading of the situation involving drift of weed killer – dicamba. Last year, millions of acres of soybeanas were killed and maimed by drift from nearby farm fields.

June 2018 Issue No. 467

Inside this month’s issue …

OUR STORY OF THE MONTH (Click below on the blue title to read "the complete story"):

Dean Foods’ Long-Ago Business Strategies & Huge Debts Backfired

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Trump Came Late & Left Early: G-7 Ends in Chaos (p. 1):
Following the meeting of the G-7 nations in early June, trade relations between the U.S. and Canada are at their lowest point in many decades. Canada wouldn’t bend to President Trump’s dictates. In response to U.S. tariffs on steel and aluminum imports from Canada, both those nations have included dairy products on their lists for countervailing duties.

House Farm Bill Version Fails, Senate to Try (p. 1):
After a rancorous failure by the House of Representatives to pass a partisan farm bill, the U.S. Senate will take up that task during June in an atmosphere generally described as collegial.

Dean Foods Will Close Several Dairy Plants (p. 2):
The nation’s largest fluid milk processor is closing a handful of dairy plants, in an effort to offset losses in volume as customers are shifting to other suppliers for dairy products.

Bayer-Monsanto Mega-Merger Approved (p. 2):
With minor slaps on the wrist from U.S. Antitrust overseers, Bayer and Monsanto will merge, creating a mammoth agri-chemical and seed business.

May 2018: All FMMO Mfg. Milk Class Values Rise (p. 2):
Stronger commodity prices pulled up all classes of milk in USDA’s federal milk order program fo the month of May 2018.

Dairy Farmers of Wisconsin “Re-branding” Tops To-Do List (p. 3):
Writer/dairy farmer Jan Shepel reports in changing strategies at Dairy Farmers of Wisconsin (formerly the Wisconsin Milk Marketing Board).

CoBank: Rising Interest Rates & Softer Land Values Stressing Rural Economy (p. 3):
Even CoBank – on of the nation’s top agricultural lenders – is admitting tremendous financial stresses on farmers, after several years of low farm commodity prices. Interest rates are rising. Concerns are voiced about farmland values going South, if crop prices don’t substantively improve.

Trucking Costs Altering Cheese Advantage for Northeast, Midwest (p. 4):
Trucking costs are squeezing all in agriculture. Moving cheese and butter across the U.S. by truck costs between 15-20 cents per pound. The advantage of location is shifting to cheese plants in the Northeast and Midwest.

Dairy title of Senate Farm Bill proposal (p. 4):
Jan Shepel reports on the “safety net” program for dairy being proposed in the Senate version of the farm bill.

DMS Hikes “Marketing Adjustment” Charged to Northeast Co-ops (p. 5):
Dairy Marketing Services and Dairy Farmers of America have increased marketing and balancing fees for Northeast producers and their cooperatives, as of April 1. That’s strange, since there’s significantly less milk in the Northeast than one year ago. Why should marketing costs go up?

Sunrise Family Farms’ Way Behind Paying Producers in NY (p. 5):
A dairy processor in Central New York – Sunrise Family Farms (Norwich, NY) – is far behind paying present and former producers for milk. Producers who shipped to that plant have not been paid for milk deliveries past March 16, as of press time. That’s a violation of NY State law.

Belgioioso Cheese to Build Second Plant in NY (p. 5):
One of Wisconsin’s most successful cheese firms is building its second plant in New York State. Belgioioso Cheese will build a new cheese plant at Glenville, NY.

Chobani Rumored to Expand NY Plant, While Screwing Farmers (p. 5):
The stinkers! Chobani has informed co-ops selling milk to that Greek-style yogurt company that it will reduce payments for weekend milk by $3.50 per cwt. Spread oer a week’s time, that’s a $1.00/cwt. price cut.

Dean Foods’ Long-Ago Business Strategies & Huge Debts Backfired (p. 6):

Our story of the month. Click on the blue title at the top of this page.

Ad Touts Class Action Lawsuit vs. NMPF, CWT & Co-ops (p. 7):
The legal morass in which National Milk Producers Federation’s “Cooperatives Working Together” finds itself just gets stickier and sticker. The Milkweed counts four different lawsuits against CWT, not including the $52 million case settled by NMPF with animal rights activists.

CWT Lawsuit Seeks Customers at Agri-Mark’s VT Cheese Store (p. 7):
Agri-Mark, one of the defendants in multiple lawsuits involving NMPF’s “CWT” program, now finds plaintiffs’ attorneys seeking customers who purchased cheese and/or butter at Agri-Mark’s cheese store in Vermont. When does it ever stop???

How Available is Fortified Calcium in Plant-Based “Milk” Beverages? (p. 8):

Excellent article! Paris Reidhead details how supplemental calcium contained in plant-based “milk” products is not very bio-available to persons drinking that “stuff.” Oftentimes, supplemental calcium is simply chalk or limestone.

Jan.-April 2018: Troubling Data for Yogurt, Ice Cream (p. 8):
Through 2018’s first four months, production of both yogurt and ice cream are way down, compared to 2017’s data. What’s wrong?

Key Commodity Markets (p. 9):
We present dairy’s key data for the recent month.

Trade Uncertainty Clouds Improving Dairy Outlook (p. 10):
It’s hard to make firm predictions about the future, what with the sharply deteriorating relations between the United States and its tow largest export buyers of dairy products.

Organic Integrity Bills Introduced in Washington (p. 10):
John Bobbe, executive director of OFARM (an organic grain coops’ marketing agency), provides an update on progress of efforts seeking more integrity in organic foods’ integrity.

Wisconsin Gov. forms Dairy Task Force (p. 11):
Governor Scott Walker has appointed a Dairy Task Force to plot the future of Wisconsin’s dairy industry. Pete Hardin offers several constructive suggestions for improving Wisconsin’s dairy industry.

Combat plant-based “milks” with nutrition science (p. 11):
Picking up on Paris Reidhead’s article about low bio-availability of plant-based “milk” beverages, Pete Hardin suggests taking good science and communicating to consumers that these products are nutritionally inferior.

Trade uncertainty looms … (p. 11):
What a mess. United States’ farmers are being disserved by the trade policy incoherence spewing from the White House.

Test-Run at Fort Wayne Implodes Walmart Milk Silo (p. 12):
Ho. Ho. We print a picture of a stainless steel milk silo at the Walmart plant in Fort Wayne, Indiana. A mistake during a test-run (using water) through the plant resulted in a silo being sucked in. Hard to get good help these days.

Ship of ‘Organic Corn’ Lands in U.K. (p. 12):
John Bobbe reports on the latest news about the Mountpark’s cargo of suspicious “organic” corn that was refused entry into the United States by federal agencies. The ship ended up sailing to England.

2017: EU Surpassed NZ as World’s Biggest Dairy Exporter (p. 12):
Rising EU milk production, falling New Zealand milk output, and China’s growing needs for dairy products resulted in EU topping NZ as the leading global dairy exporter last year.

Talk of Federal Cranberry Marketing Order Includes Provisions for Controlling Production (p. 12):
In Wisconsin, the troubled cranberry industry is exploring a federal marketing order. A key aspect of those discussions would call for an approximate 25% reduction in cranberry production. Question: If marketing orders may be used to create supply controls for cramberry producers, could federal milk orders create production controls for dairy????

May 2018 Issue No. 466

Inside this month’s issue …

OUR STORY OF THE MONTH (Click below on the blue title to read "the complete story"):

PowerPoint Panels from ADPI/ABI Meeting

SUBSCRIBE TO THE MILKWEED TO READ ALL THESE CURRENT DAIRY STORIES!!

Will U.S. Trade Threats Bear Fruit or Backfire? (p. 1):
Writer Nate Wilson continues his series examining the precarious nature of global trade negotiations taking place between the United States and major dairy export destinations such as Mexico, Canada and China. The Trump administration is burning goodwill faster than the U.S. dairy industry can repair it.

All Dairy Commodity Prices Rising, Farm Milk Price Improvements to Follow (p. 1):
All dairy commodity prices are rising, driven by strong domestic and tightening global supply/demand. Butter prices in Western Europe, as of May 11, were approximately 75 cents per pound higher than the CME Grade AA butter cash market. (Remember, EU butter is 82%, while ours is 80%.

Suspicious Organic Corn on the Wy to the U.K. (p. 2):
Anne Ross, food policy analyst for The Cornucopia Institute, relates the recent problems facing owners of the “organic” cargo in the ship M/V Mountpark. After being rejected by the U.S. government, the ship has headed through the Panama Canal and is steaming towards the United Kingdom.

All Mfg. Milk in FMMOs Increased Modestly in April (p. 2):
Somewhat higher commodity prices for Cheddar, butter, nonfat dry milk and whey helped move up manufacturing class prices in the federal milk order program.

Recent NMDM Price Boosts Welcome, But Skeptics Remain (p. 3):
Over the past several weeks, CME prices for Grade A nonfat dry milk have increased by about 15 cents per pound. Despite large inventories of SMP in the EU, coupled with unknown quantities of powder in storage here, prices for current production are rising. Some skeptics offer caution on these price increases.

USDA Lowers 2/28/18 MFDM by 8% (p. 3):
USDA lowered its earlier estimates of manufacturers’ stocks of nonfat dry milk in the U.S. for Feb. 28, 2018 by about 30 million lbs.

UW-Madison CDR Project Finally Ok’ed (p. 3):
Jan Shepel updates progress on the UW-Madison Center for Dairy Research -- project that has been interminably stalled and features big cost over-runs, compared to original fund-raising estimates.

The New York State Dairy Farm Crisis (p. 4):
One sentence summarizes Pete Hardin’s protology of failed leadership in New York State: “Basically, what New York’s dairy industry has devolved to is n insider’s game for Cornell-educated, mega-dairy operators nd their college-buddy insiders in finance and government.

Giving the MPP-Dairy Another Change for 2018 (p. 5):
Writer Jan Shepel relates how she and her dairy farmer/husband took a second look at 2018’s revised MPP-Dairy “safety net” program and concluded that signing up for the $8.00/cwt. level of margin protection was a good move. Jan explains how USDA has dramatically sweetened the pot for 2018 – an election year.

Gillibrand Proposes a $23.34 Milk-Floor Price (p. 5):
NY Senator Kirstin Gillibrand – a long-serving member of the Senate Agriculture Committee – has offered a proposal for the 2018 farm bill. Gillibrand’s Senate Bill 2555 proposes a MILC-type dairy program that would cover 45% of income between a $23.34 floor price and the monthly “All-Milk Price.”

Is the Corn/Soy Non-Rotation Losing its Grip? (p. 6):
Writer Paris Reidhead takes readers on a journey that starts with reasons for the cold spring weather and concludes with advice to take advantage of cover crops on corn and soybean acreage to reduce soil loss, boost soil organic matter content, and improve crop yields.

Late “Grilling Season” Impacts Beef & Overall Meat/Protein Complex (p. 7):
Jan Shepel reports on a presentation by Wisconsin Department of Agriculture, Trade and Consumer Protection meat specialist Jeff Swenson, who ranged through a variety of subjects on consumer beef demand. Swenson projects stronger prices for dairy and beef slaughter animals in the second half of 2018.

R-CALF: DOJ Should Block Nt. Beef Purchase by Brazil’s Marfrig (p. 7):
A Brazilian firm – Marfrig – has proposed to acquire National Beef Packiing Company – a firm with an estimated 16% market share of all beef slaughtered in the United States. If the DOJ allows that purchase to procede, that would give Brazilian interests control of about 40% of U.S. beef slaughter operations. R-CALF U.S.A, a maverick cattle producers group, has demanded that DOJ officials block that sale.

PowerPoint Panels from ADPI/ABI Meeting (pages 8-9):
Our “Story of the Month.”

EU: Emerging “Tail-Wagger” for Global Dairy Commodity Prices (p. 10-11):
Pete Hardin digs into the changing dynamics of global dairy trade and concludes that the European Union is now the “tail that wags the dog” when it comes to international dairy trade.

Ntl. Organic Standards Board Reviews Fraud Charges. Solutions?

John Bobbe, executive director of OFARM (an organic grain co-operatives’ marketing agency) testified on organic fraud before the National Organic Standards Board in Arizona, recently.

Young Dairyman Sees Little Hope for Farm Like His, Sells Out (p. 12):
Jan descries a neighbor dairy farmer who just couldn’t any sense to continuing producing milk. This article pulls in a lot of the frustrations felt by many, many folks milking cows.

Butter, Cheddar & NFDM Prices All Increase (p. 13):
All dairy commodity prices have been strengthening in the past month-plus. That’s good news.

Dairy Livestock Values Generally Down (p. 14):
Except for nice springers at the Brush, Colorado livestock auction, prices for dairy livestock are generally down or flat.

NMPF’s CWT: Expensive Export Subsidies … Or Covering Legal Bills? (p. 14):
Last year, National Milk Producers Federation claimed to have exports almost 900 million lbs. of dairy products. The Milkweed estimates that NMPF’s cost per cwt. was somewhat over $6.00/cwt. per cwt., IF all CWT. revenues actually went to subsidize exports. In separate matters, NMPF’s CWT. program is enmeshed in a legal battle with two Southeast supermarket chains whose lawyers allege that CWT illegally raised their milk costs. So … how much are dairy farmers whose funds to go CWT paying for legal mistakes??? NMPF already settled one such lawsuit for $51 million.

Central Equity Milk Co-op adjusting to plant closing (p. 15):
In Missouri, the 130-member Central Equity Milk Co-op was given a challenge one year ago by its buyer – Eagle Foods. Eagle’s plant at Seneca, MO would be closing. But local co-op has successfully secured other markets for its milk.

WI DNR grants WPDES Permit to Pinnacle Dairy, LLC (p. 15):
The Wisconsin Department of Natural Resources has awarded the critical WPDES permit to Pinnacle Dairy, LLC (Brodhead, WI). That permit was granted, even before the dairy has met conditions set down by DNR and Green County.

2018 Shaping Up as a “Weather Year” (p. 16):
The southwestern quadrant of the U.S. is in the grips of serious drought. Drought conditions are also hammering the Dakota, major parts of the western Corn Belt, nd some areas of the Southeast. Meanwhile, California faces water dichotomy: the reservoirs are brimming over, but the water content of the snow pack in the Sierra Madre Mountains is miniscule. The Upper Midwest and the Northeast have seen prolonged cold conditions during much of the spring.

April 2018 Issue No. 465

Inside this month’s issue …

OUR STORY OF THE MONTH (Click below on the blue title to read "the complete story"):

March Dairy Meetings Somber in Wisconsin (p. 5)

Mideast Milk Flooding Into Upper Midwest (p. 1)

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Trump’s Trade Policies: Risky for U.S. Farmers & Deteriorating (p. 1): What more needs to be said.

China’s January ’18 Dairy Import Tonnage Jumped 45% (p. 1): China’s dairy import needs are climbing, due in part to a 9% decline in that nation’s farm milk output for 2017.

Jan-Feb.’18: NZ’s Drought Pulls Down Milk Solids by 5.85% (p. 2): A serious drop in milk solids content of NZ’s milk supply started in December 2017 and continues at least through February 2018.

June 1 Deadline for “Revised” MPP-Dairy Sign Ups (p. 2): USDA has announced details for the “new” MPP-Dairy program. Farmers may sign up to participate by June 1.

Bounce Back: March Class III Price at $14.22/cwt. (+$0.82/cwt.) (p. 2): All manufacturing milk classes in USDA’s federal milk order program rose during March. The all-important cheese milk price was $14.22/cwt.

“Double-Whammy” Hammering Dean Foods’ Prospects (p. 3): As 100+ dairy farmers shipping milk to Dean Foods as “independents” count down that market’s ending on May 31, most of the “blame” for that situation has been placed on Walmart’s new fluid milk plant at Fort Wayne, Indiana. But in a separate matter, the European owners of several East Coast supermarkets chains have informed Dean Foods that they’ll be seeking other suppliers of packaged fluid milk. Two of those chains are Food Lion and Hannaford’s.

Fonterra’s Red Ink to Push Out CEO (p. 3): A bad investment in a Chinese infant formula manufacturer and a huge liability for contaminated dairy proteins sold to Danone added up to a $348 net loss for Fonterra during the July-December 2017 period. Fonterra’s CEO will depart.

Byrne Dairy (NY) Won’t Renew Local Co-op’s Contract (p. 3): Byrne Dairy, based in Central New York State, has notified one of its milk suppliers – the Finger Lakes Milk Producers – that it will not renew contract negotiations at the end of 2018.

Plaintiffs’ Attorneys Sparring with DFA Over Disclosures in Northeast Case (p. 4): DFA doesn’t want to release data about top executives’ salaries and the profits generated by major subsidiaries. That’s the take-away from a March 14, 2018 filing by plaintiff’s attorneys in the Sitts et al. v. DFA & DMS case now being aired in federal court in Burlington, Vermont. To counter DFA’s claims that executives are not being spoiled at the expense of DFA’s member-farmers, plaintiffs’ attorneys quote descriptions of DFA’s new headquarters in Kansas. Hilarious.

Chaos in Mid-East & Southeast Markets (p. 4): Chaos reigns in the Mid-East and Southeast markets, as dairy farmers scramble to find new markets.

Pay-Out from Northeast Antitrust DFA/DMS Settlement Taking Time (p. 4): Class members of the Northeast antitrust settlement involving defendants DFA and DMS may see their checks by fall 2018. Maybe …

Story of the Month (Click Above to view the PDF of the complete story):
March Dairy Meetings Somber in Wisconsin (p. 5): The Milkweed’s editor-publisher attended two dairy meetings in Wisconsin in mid-March (before catching the flu). Dairy farmers are scared about their futures.

At 20-Year Mark: DFA’s Audit Full of Same Old “Stuff” (p. 6): Twenty years … and DFA’s financial audit is still full of bogus assets and laden with debt. DFA members should know that their milk checks and equity are subordinated to the co-op’s creditors.

Excerpts from DFA’s Rick Smith’s March 13 Handwritten Letter to Members (p. 6): When times are tough, DFA President/CEO Rick Smith likes to sent out a hand-written letter to members. Times are tough. Smith’s letter paints DFA as remarkably powerless to do anything about improving milk prices … three-plus years into the current milk price Drought.

FDA Inspectors Find Melamine in Dairy Imports from China (p. 6): Why would any U.S. food processors import dairy ingredients from China? Regardless, FDA inspectors in January 2018 found melamine-contaminated Buttermilk and Whey Protein Concentrate sent to the U.S. from China.

--Kappa Casein BB & A2 … Genetic Dynamic Duo Boosts Cheese Yields and Meets Consumer Demand (p. 7): Writer Ken Rabas takes a long, insightful look at two emerging qualities for farm milk – Kappa Casein BB and A2 proteins. Rabas finds a remarkable correlation in sires that have the Kappa Casein BB and A2 traits. Kappa Casein BB boosts cheese yields by 10%.

Alternate Marketers Emerging for A2 Products (p. 7): Separate from The a2 Milk Company, two other dairy processors – Nestle and Mengniu – are unveiling their own consumer products containing only A2 dairy proteins.

Strong Chinese Business Volumes Building On Dairy Consumption (pages 8-9): Writer Jan Shepel details the success of a Chinese businessman – Zhu Like. Mr. Zhu has built a network of 1,000+ dairy stores in China’s “smaller” cities. These stores are sort of like Starbuck’s stores, except that they sell milk and yogurt-based foods. Zhu’s firm buys milk from 6,000 cows.

Selling U.S. Dairy in China Means Building Relationships (p. 9): Writer Jan Shepel details efforts by Wisconsin’s Ellsworth Creamery to develop markets for that co-op’s cheese and cheese curds in China. The secret to marketing gains in China entails long-term, personal relationships.

Dairy Not (Yet) In Cross-Fire of U.S./China Trade War Threats (p. 9): So far, dairy products have not been specifically mentioned in the verbal sparring between China and the U.S. that threatens a trade war. Why? Maybe because China seriously needs more dairy imports to meet needs.

New Test from Iowa State Univ. Verifies Grass-fed Milk (p. 10-11): Very interesting! Writer Paris Reidhead describes a brand new lab test developed by Iowa State University’s Leopold Center for Sustainable Agriculture. That test detects whether milk from cows comes from cows that have grazed on fresh forage. This test, if widely applied on commercial basis, could go long way towards answering questions about the integrity of “organic” mega-dairies.

Two Ships of “Organic” Grain Fail to Arrive at Stockton, CA (p. 11): OFARM – the organic grain producers’ marketing agency – reports that two ships bearing cargoes of “organic” grain were due to unload at the Port of Stockton, California during the first week of March. Neither of those ships has yet arrived. One – from Argentina – eventually unloaded its cargo as “feed-grade wheat.” The other ship – from Turkey – is moored in San Francisco By, going no where. The owner of the cargo is objecting to USDA demands to test the cargo.
Michigan Milk Producers Posts 9/30/17 Financial Results (p. 11): After deducting almost $2.00/cwt. from member milk checks to cover marketing losses last year, Michigan Milk Producers Assn. managed to declare a “profit” for its fiscal year ending September 30, 2017. MMPA’s membership is angry at the co-op’s failure to stem marketing losses.

NYS Dubiously Throwing Big $$$ at Dairy Processors (p. 12): Writer Nate Wilson gives the sorry history of New York State Gov. Cuomo’s failed scheme to make NY the “yogurt capital of the world.” State gov’t has sown big subsidies to expand milk production and dairy plant expansions – creating a mess as national yogurt consumption has slid backwards for the past three years! Wilson digs into specific subsidies doled out to certain dairy plants.

Butter Prices Strengthen; Cheddar Prices Rising; Nonfat??? (p. 13): Pete Hardin covers the dairy commodity scene. Commodity prices are rising, with butter in the lead. Marketers have serious questions about recent increases of nonfat dry milk.

Dairy Livestock Markets All Down, $$$ Tight in Farm Country (p. 14): Dairy livestock prices are in the tank. Money is tight in dairy country. Many farmers are looking to sell cattle in down-turned, buyers’ market.

Is this what “Industrialization” looks like??? (p. 15): Pete Hardin takes a look at the financial mess known as the United States dairy industry.

Trade War threats – playing games with gasoline and matches (p. 15): Agriculture is the guaranteed loser when it comes to “trade wars.”

NZ dairy exports in January 2018 up 12.8%, despite lower milk solids output for Dec.-Jan. (p. 15): Bigger exports and lower total dairy products manufactured last December-January mean New Zealand dairy marketers re drawing down their stockpiles.

Data Shows NZ’s Seasonal Milk Solids Production Declining Sharply (p. 16): We cite a monthly chart of New Zealand’s milk solids output, showing data from 2014-2017, as well as January and February 2018. Bottom line: the Kiwis’ milk solids are depressed by drought and historic trends only show lower levels each month, until milk production starts picking up again in August. Interesting to see the wide swings in New Zealand’s seasonal milk production patterns.

Researchers Claim Russians Fomenting Anti-GMO Attitudes (p. 16): What a bucket of bologna! Two researchers from Iowa State University are claiming that Russians are helping spark attitudes in the United States that oppose genetically-modified organisms (GMOs). Blaming the Russians for long-prevailing attitudes in this country that are skeptical of GMOs is pure bunk.

March 2018 Issue No. 464

Inside this month’s issue …

OUR STORY OF THE MONTH (Click below on the blue title to read "the complete story"):

NZ Milk Production Nose-Diving: January 2018 Solids Drop 7% (p. 1)

Mideast Milk Flooding Into Upper Midwest (p. 1)

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7th Round of NAFTA Negotiations Concludes (p. 2): Nate Wilson updates continued failures at the North American Free Trade Agreement talks involving the U.S., Canada and Mexico.

Dean Foods Reports Disappointing Q4 & 2017 (p. 2): Another quarter of poor performance by Dean Foods, the nation’s largest fluid milk processor.

Organic Dairy Markets Being Disrupted (p. 2):
     Organic dairy producers in several states have been notified that their current buyers will soon not be accepting their milk.

Dairy “Safety Net” Emerges from Federal Gov’t’s Budget’s Backroom Del (p. 3):
    Behind closed doors, Congress amended the Margin Protection Program-Dairy ss part of the budget process. We’re skeptical …

Does Moody’s Investors Service Correctly Understand DFA??? (p. 4):
    Moody’s Investors Service’s October 2017 analysis of Dairy Farmers of America seems to miss a key point. DFA’s payments to members are cleared monthly, not accumulated for a year. That throws off Moody’s assertion that DFA is in a healthy balance of total member payments relative to the co-op’s debt.

Beef Checkoff Lawsuit Heard in Court of Appeals (p. 4):
     Jan Shepel writes about challenge to the beef promotion checkoff program being heard in a Montana federal court. R-CALF USA is the plaintiff.

Monsanto’s President Hopes to Double Dicamba “Resistant” Soybean Acreage (p. 5): Paris Reidhead explores in depth the issue of “dicamba drift” as    Monsanto hopes that nearly half of all U.S. soybean acreage in 2018 will be planted to its dicamba-resistant GMO seeds.

a2 Milk: Sales, Profits & Joint Venture Propel Stock Price (p. 6):
     Ken Rabas conducts an in-depth review of the factors that have been behind the spectacular stock price gains of the a2 Milk company. A sidebar story covers a2 Milk’s recently announced joint marketing venture with Fonterra, New Zealand’s predominant dairy cooperative.

Southeast Milk Markets in Total Chaos (p. 7):
     Dean Foods sent out termination notices to some of its producers in the Southeast. DFA-owned Piedmont Milk Sales will quit buying milk from “independents” and DFA will “help” those producers form a new co-op.

’18 Grain Outlook Sobering: Trade Deals & Weather Are Factors (p. 8):
     Writer/dairy farmer Jan Shepel reports on the analyses of 2018 grain markets and prices offered at the UW-Madison Ag Outlook Forum in late January.
.
Butter & Cheddar Prices Strengthen, Milk Powder Prices Decline (p. 9):
     We see improving commodity prices for butter and Cheddar, but not for nonfat dry milk. Pay close attention to the NZ drought!

Dairy Livestock Prices Mostly Down (p. 10):
     The markets we talk to show prices mostly down for dairy livestock. Short-bred heifers and breeding age heifers have buyers’ interests in Michigan. In Ohio, high-end Holstein cull cows were bringing $.646-$.71/lb. live weight)

All’s Not Well in Garden City, KS (p. 10):
    Nate Wilson informs us of recent comments by Congressman Roger Marshall (R-KS). Marshall is complaining that DFA’s new powder plant in Garden City, KS can’t sell milk powder to the Chinese because the Canadians have flooded the market.

Butter & A2 milk … winners! (p. 11):
     Pete Hardin urges the dairy industry to focus on “winners” – such as butter (and other high-fat products) as well as marketing opportunities offered by dairy products that exclusively contain the A2 beta-casein proteins.

The 5% Solution … (p. 11):
    Pete Hardin suggests that all U.S. dairy farmers simply curtail their milk output by 5% for April-June 2018. \\

Agri-Mark’s Cabot Cheese Lie: “Owned by our FAMILY FARMERS …” (p. 12):
    Agri-Mark’s Cabot Cheese products claim that the company is owned by its family farmers. Not so. A 1995 court case (Shaw v. Agri-Mark, Inc.) that in fact the “owners” of Agri-Mark are the co-op’s directors.

VA Sales Tax Higher than Farmer’s Shrae of Price of 8-oz. (1%) Milk at Subway (p. 12):
     Dairyman E. Cline Brubaker of Virginia was shocked when he saw a $1.29 price tag on an 8-oz. container of 1% milk at a local subway. Brubaker calculated that the dairy farmer’s portion of that milk ws 4.2-cents.

February 2018 Issue No. 463

Inside this month’s issue …

OUR STORIES OF THE MONTH (Click below on the blue title to read "the complete story"):

Reasons for Improving Dairy Prices after 2018’s First Quarter (page 1)

Canadian Dairyman Explains Canada’s Milk Marketing/Pricing System (pages 8&9)

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!

NAFTA Talks Drag On & U.S. Farmers Worst Fears Are Materializing (p. 2):
Writer Nate Wilson reports on the challenges facing the NAFTA negotiations. Mexico and Canada are increasingly turning away from the U.S. as a supplier of key agricultural commodities and goods.

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 (p. 3):
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? (p. 4):
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 (p. 4):
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”?

UW Madison Prof: Stanchion Dairy Barns Cannot Be Justified (Animal Health Reasons):
UW-Madison veterinary school professor Dr. Nigel Cook recently spoke at a farm meeting in Pennsylvania’s Amish Country where he stated that stanchion dairy barns cannot be justified, due to animal health concerns. Say what????

Whitewash: The Story of a Weed Killer, Cancer, and the Corruption of Science (p. 6):
Paris Reidhead’s assignment this month was to review a new book about the human safety dangers associated with glyphosate – the active ingredient in Monsanto’s Roundup® herbicide. The review will make concerned persons want to read the book.

Out-of-State Milk Displaces WI NFO at Emmi Roth Cheese in WI (p. 7):
On February 1, the Wisconsin National Farmers Organization was cut from its long-term contract supplying farm milk to the Emmi Roth cheese plant in Monroe, Wisconsin. Cheaper, out-of-state milk displaced some Wisconsin farmers’ milk at one of the state’s premiere cheese plants. Emmi Roth uses the Wisconsin Milk Marketing Board’s “Wisconsin Cheese” logo on many of its cheeses.

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.

Canadian Dairyman Explains Canada’s Milk Marketing/Pricing System (p. 8 - STORY OF THE MONTH – CLICK ABOVE):
A “Story of the Month: At the early February annual convention of the Wisconsin Farmers Union, the vice chair of Dairy Farmers of Ontario – Murray Sherk – presented an overview of dairy industry structure for that province. Sherk noted that Ontario producers received $27/cwt. (U.S. equivalent) in 2017 fo their milk. It’s a different world for dairying in Canada.

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.”

Organic Dairying’s Initial Promise and Producers’ Current Economic Catastrophe (p. 19-11):
In this long report, Mark Kastel, co-director of The Cornucopia Institute, details the long evolution of organic dairy farming in the United States. Unfortunately, at some point, the profits from organic milk production attracted the “big boys” and now family organic dairy farmers are struggling to survive financially.

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.

Dairy Commodities Hopefully at Low Ebb, Price-wise (p. 13):
Pete Hardin makes his monthly dairy commodity analysis. We see the most upside potential for butter. But the EU problem with aging SMP inventories could surprise the industry by stoking stronger prices for current production of nonfat dry milk.

Bottom Falling Out of Dairy Livestock Prices (p. 14)::
On February 7, the lowest-end Holstein springers sold for $300 at Michigan’s biggest monthly dairy livestock auction. Baby heifer calves sold for $40 to $100. At Kidron, Ohio on Feb. 8, baby calves went for $30 to a top price of $90. There is no money available in dairy country to buy calves.

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. 15):
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.

January 2018 Issue No. 462

Inside this month’s issue …

OUR STORY OF THE MONTH:

Pinnacle of Bull-Headed Stupidity:
Plopping a 5,800-Cow CAFO on 127 Low-Lying Acres

SUBSCRIBE TO THE MILKWEED TO READ ALL THESE CURRENT DAIRY STORIES!!

Few Predictions for Dairy’s Fortunes in 2018 (p. 1):
Pete Hardin details some of the positive signs in the dairy market place, but isn’t making any predictions about 2018.

How Solvent is Diary Globally??? (p. 1):
Look around … some of the global dairy industry’s biggest players have serious question marks concerning their economic stability: China Huishan Dairy, Fonterra, Dean Foods, and Dairy Farmers of America.

NAFTA Partnees Explore and Pursue Alternative Trading Options (p. 2):
Nate Wilson continues his vigilance on the global trade scene. He reports how our partners in the North American Free Trade Agreement – Canada and Mexico – are both pursuing alternate trading relationships in response to threats against them by U.S. president Donald Trump. Agriculture has a lot to lose if trade relationships with Canada and Mexico deteriorate.

All FMMO Manufacturing Milk Prices Declined in December (p. 2):
Lower dairy commodity prices caused declines in USDA’s calculations of many facturing milk prices in December.

Without MPP-Dairy, Producers Turning to LGM Insurance Program (p. 3):
Dairy farmer/writer Jan Shepel describes the expanded LGM insurance program that dairy farmers may opt for, in order to floor their milk prices. Since USDA Secretary Sonny Pursue released dairy farmers from their five-year contracts under the Margin Protection Program-Dairy, dairy producers may look to LGM for some price protection.

MMPA Deducted $1.98/Cwt. Off PPDs in 2017 (p. 3):
For milk payments received during 2017, a Michigan Milk Producers Assn. member in southern Michigan has calculated that his co-op took $1.98/cwt. off the “Producer Price Differential.” Those deductions helped absorb the co-op’s losses marketing members’ milk. We include a chart comparing those monthly MMPA PPD’s with the prevailing federal milk order PPDs.

"Curiouser and Curiouser”: DFA’s Dictates to other Northeast Co-ops (p. 4):
Dairy Farmers of America continues its extortionate, thieving ways in the Northeast. DFA is now telling certain co-ops that have marketing contracts with DFA’s subsidiary Dairy Marketing Services, that those other co-ops cannot add any new members! The Northeast milk supply is rapidly turning tight. And DFA/DMS are having problems meeting the raw milk needs of major cheese plants in northern New York. What gives?

DFA Now Shafting Some NY Mega-Dairies (p. 4):
DFA Now Shafting Some NY Mega-Dairies (p. 4): Some large dairies that belong to Dairy Farmers of America have been told they will now be assessed up to $1.00 for the privilege of hauling their own milk. Cash-hungry DFA is even turning on the mega-dairies in New York State.

Michigan Milk Producers Grabs Yoplait Supply Contract in TN (p. 4):
In early January, Michigan Milk Producers Assn replaced Maryland & Virginia Cooperative Milk Producers as the supplier of condensed milk at General Mill’s massive Yoplait yogurt plant at Murfreesboro, Tennessee. One more time, MMPA is screwing farmers in other regions to get rid of is distressed milk

Foremost Farms’ Wisconsin Members Angry Over “Drained” Milk Checks (p. 5):
From April 2017 through last November, Foremost Farms swiped about $.60/cwt. from is Wisconsin members’ milk checks. That “adjustment” has not been well explained. Wisconsin dairy farmers are not used to having their milk income siphoned away. Suspicions are that Foremost’s Wisconsin members are feeling the pain for the co-op’s problems of too much milk in Michigan.

U.S. Dairy Exports to Canada Decreased as 2017 Progressed (5):
Starting last spring, and accelerating in recent months, Canada has increasingly turned its back on the United States as a source of dairy commodities and ingredients. Canada is not putting up with trash talk from the U.S. White House.

Tackle Spring Flush by Inoculating Soil with Raw Milk (p. 6):
Our writer and friend, Paris Reidhead, has his own solution for spring flush milk on organic dairy farms. He is recommending raw milk – up to three gallons per acre – be used as a soil enhancer. Interesting!

USDA’s “Pineapple Center Ring Organic Circus Fraud” Continues (p. 7):
John Bobbe, executive director of OFARM, cynically describes a recent organic foods scandal at USDA that involves pineapples fraudulently sold as organic. His point is that USDA’s National Organics Program is failing to police the integrity of organic foods for a variety of foods.

Comparison of Milk Prices Received by East Coast OrganicMilk Producers (p. 7):
No less source than Moody’s Investors Service states that DFA members’ milk checks are subordinated to their co-op’s indebtedness.

Michigan Dairy Farmer Sentenced for Illegal Labor Scam (p. 7):
Denis Burke will serve 30 months in prison, and pay a $1.38 million fine for hiring undocumented farm workers.

Pinnacle of Bull-Headed Stupidity: Plopping a 5,800-Cow CAFO on 127 Low-Lying Acres (p. 8-11):
OUR STORY OF THE MONTH. GO TO THE TOP OF THE PAGE AND CLICK ON THE LINK.

U.S. Policy Decisions Can Make or Break Sorely Needed Dairy Exports (p. 12):
Jan Shepel reports on a speech delivered in early December by Matt McKnight, COO of the U.S. Dairy Export Council.

1/1/18: Agri-Mark Raising “Stop Charge” to $15., Plus Unspecified Higher Milk Hauling Charges (p. 12):
The easiest way for Agri-Mark to cover costs and inefficiencies is to dip into members’ milk checks. That’ss the case, as of January 1, 2018, when Agri-Mark members see their stop charges and hauling costs rise.

Dairy Commodity Picture: Big November ’17 Butter Inventory Drawdown (p. 13):
Butter inventories in the U.S. declined by a nice 60 million lbs. during November. But on the downside, barrel Cheddar prices have lost about $.45/lb. since early December.

Chinese Soccer Investment Reveals Shoddy Assets Scam (p. 12):
A shady Chinese investor who purchased a famous Italian soccer club – A.C. Milan – is tangled in a web of fictitious assets. This story reveals the widespread fraud behind some Chinese corporations and investors.

Dairy Commodity Scene: All Commodity Prices Slipping (p. 13):
Block Cheddar, nonfat dry milk, and Grade A butter are all down at the Chicago Mercantile Exchange. 500-lb. barrel Cheddar is up, temporarily. There is no hope for milk powder prices in the coming half-year, except perhaps in the event of a nuclear war.

Petition Calls on USDA to Revoke Brazil’s “Equivalency” Status for Meat Imports (p. 14):
Jan Shepel details a move by R-CALFUSA to address inequities in the beef markets. R-CALFUSA wants the USDA to remove Brazil’s meat inspections’ status as being equivalent to the U.S.

Brutally Cold Weather Drops Milk Production in the Northeast (p. 14):
The combination of low-energy corn silage from 2017 and brutally cold weather has pulled down farm milk output in the Northeast – particularly in New York State and New England.

Food is different, dairy is different … (p. 15):
Pete Hardin stresss that the nation’s best, long-term interests are served by creating policies that recognize the special role that agriculture and food provide. Policies that create long-term, sustainable agriculture are the only sane policies to chart. Further, we must explore what interests are benefitting from agricultural pricing systems that keep farm prices low.

1St “Ed McNamara Award” to MMPA’s Ken Nobis (p. 15):
It’s been more than 30 years coming, but The Milkweed can now bestow its first-ever “Ed McNamara Award” to Michigan Milk Producers Assn. president Ken Nobis. The award recognizes the dumbest dairy co-op leader since McNamara’s ego took down NEDCO in the Northeast in 1985. In 2017, MMPA deducted $1.98/cwt. from members’ Producer Price Differentials to compensate for the co-op’s marketing losses.

Farm Credit offices in NY and PA bullying borrowers over accounting services (p. 15):
Imagine a lender that coerces borrowers to use that lender’s accounting and tax-filing services … under threat of losing the loans! That’s the case in certain parts of the Northeast.

GENYOUth Gala: What was Bill Clinton’s Speaker’s Fee??? (p. 16):
What good can come of a dairy “fund-raiser” that solicits $2,500 to $15,000 per seat (in tables of 10) to hear vegan Bill Clinton speak? Clinton doesns’t even eat dairy products. The Clinton Foundation has denied a request for a copy of Clinton’s speech. Dairy Management, Inc. has failed to respond to questions about Clinton’s speaker’s fee for the event, that honored *%^#@ Tom VIlsack.

Post-Glyphosate: Let the Healing Begin (p. 16):
Writer Paris Reidhead details results from an experiment in Switzerland where several dozen farmers in a watershed dramatically reduced their use of glyphosate-type herbicides. Water quality improved!

December 2017 Issue No. 461

Inside this month’s issue …

Our stories of the month:

U.S. Agriculture Faces Surplus, Price and Credit Crises in 2018 (Page 1)

and

What Speaker’s Fee did GENYouth Pay Bill (“Vegan”) Clinton??? (Pages 7)

and

Large Volumes of Out-of-State Milk Entering Wisconsin Cheese Plants (Page 16)

Click Above for Stories of the Month.

SUBSCRIBE TO THE MILKWEED TO READ ALL THESE CURRENT DAIRY STORIES!!

U.S. Agriculture Faces Surplus, Price and Credit Crises in 2018 (p. 1):
In our analysis, years of low farm prices for most major U.S. agricultural commodities will come to a head in 2018, with a crisis of available credit being compounded by continued low prices. Dairy ought to be near the top of the list among ag commodities. (See our “Story of the Month, see link above.)

Block-Barrel “Split” Dramatically Inverted (p. 1):
Recent days have witnessed dramatically higher barrel Cheddar prices, compared to 40-lb. blocks. This inverted “split,” coupled with CME cash market prices being lower than USDA’s AMS weekly survey prices, sets the table for cash flow challenges to cheese plants that must pay their patrons the Class III (cheese) milk price dictated by USDA’s federal milk orders.

DFA’s Debt Up $313.5 Mil. During 2017’s First Half (p. 1):
The nation’s largest dairy cooperative added an astounding $313.5 million of additional debt during the first half of this year – a 37l4% increase.

Trump’s NAFTA Marksmanship Strategy Leaves U.S. Dairy Exports Lagging (p. 2):
Writer Nate Wilson is following the failed efforts to re-negotiate terms of the North American Free Trade Agreement (NAFTA). While the Trump administration blusters against Canada’s dairy policies, the Canadians are striking new deals and replacing a quantity of U.S. butter imports with product from New Zealand.

New Class III Prices Up Modestly ($16.88/cwt), Class IV Tumbles ($13.99/cwt.) (p. 2):
USDA’s federal milk order manufacturing milk prices were announced for November 2107.

Dec. 18 Deadline Looms for Truckers’ Electronic Log Devises Compliance (p. 3):
On December 18, long-distance truckers will have to be in one form of compliance or another with dictates from the U.S. Department of Transportation’s new rules for Electronic Log Devices.

CDFA Extends Dairy Quota Vote Program (p. 3):
Too few California dairy farmers sent in their ballots on a referendum that proposes shifting the state’s historic milk quota program into the proposed federal milk order. California’s agriculture department had dot extend the deadline for returning ballots until late December. Without a successful approval by voting producers on that referendum, California’s entry into the federal milk order program will be kaput.

Noteworthy Global Reporting in Dairy Industry Newsletter (p. 4):
We properly credit the international dairy report, Barry Wilson’s Dairy Industry Newsletter, with continued important reporting. We note DIN’s reports that China’s largest dairy processor is headed for dissolution, following vain attempts to restructure its finances. Also, Saputo, Inc. is the apparent winner among bidders to buy Australia’s largest dairy processor – the troubled Murray Goulburn co-op.

Foremost Farms’ Plan for New MI Plant Omits MMPA (p. 4):
Foremost Farms is moving ahead with a dairy processing plant project in Greenville Twp., Michigan. No mention is made of any role in the deal for Michigan Milk Producers Assn.

Citing Historic “Unrecovered Milk Hauling Costs,” Agri-Mark Hikes Fees (p. 4):
Agri-Mark has informed its members of higher hauling fees and stop charges, effective January 1, 2018.

Cheese Plant Operators Puzzled by November Prices (p. 5):
Cheese plants are being squeezed by divergent prices at the Chicago Mercantile Exchange and at USDA’s weekly survey of manufacturers’ prices. A very complex and vital topic!

DFA Scratching Hard for Cash (p. 6):
Dairy Farmers of America is gouging members’ milk checks and customers’ costs as it ruthlessly seeks to bring cash into the cooperative.

Preferred Equity Securities: “Asset” … or WHAT??? (p. 6):
On DFA’s audit, the co-op claims an asset of $375 million called “Preferred Equity Securities.” However, DFA is paying interest on that asset, which bears a “pay-back” date for holders. This is not an “asset” … but a liability, in the analysis of The Milkweed. Take $375 million off DFA’s list of assets, and properly plug it into the “liability” column and what do you have? A net shift of $750 million in the co-op’s net worth.

Moody’s Re; DFA: “All Payments to members … subordinated as debt service payments to creditors.” (p. 6):
No less source than Moody’s Investors Service states that DFA members’ milk checks are subordinated to their co-op’s indebtedness.

What Speaker’s Fee did GENYouth Pay Bill (“Vegan”) Clinton??? (p. 7):
The headline asks the question, how much did the GENYouth gala in New York City on December 6 pay former president Bill Clinton? We invite dairy farmers to contact a long list of dairy promotion groups asking questions about whether their state/regional promotion groups bought tables (10 persons) at that gala with chairs costing $2,500 to $15,000 each. Another "Story of the Month," see link at top.

Human Illness in NJ Linked to Raw Milk Business (p. 7):
Jan Shepel details how “Udder Milk” – a slippery raw milk distributor in the East, has had its products identified as a source of brucellosis infection in a New Jersey woman.

Pulling Together: Amish Salemville Cheese Co-op Enjoying Expanded New Facility (pages 8-9):
Writer Jan Shepel profiles the Salemville Cheese Co-op in Wisconsin. That co-op receives milk from 62 Amish patrons, whose Faith dictates that they milk their cows by hand. The co-op employs 35 members of the community producing and packaging high-quality Blue and Gorgonzola cheeses.

Northeast’s Bizarre Growing Season: Crops Final Report Card (p. 10):
Paris Reidhead analyzes Northeast weather patterns for the 2017 crop season to explain why this year’s regional corn silage and haylage crops are often nutritionally deficient.

Three Years and Farm Loses Totaling Hundreds of Millions of Dollars Later! (p. 11):
Executive director of OFARM, John Bobbe, takes a scathing look at how the Organic Trade Assn., a supposed organic organization, belatedly “discovered” fraud in organic grain imports. Bobbe lists an array of other OTA misdeeds that have harmed the integrity of organic foods.

Dairy Commodity Scene: All Commodity Prices Slipping (p. 13):
Block Cheddar, nonfat dry milk, and Grade A butter are all down at the Chicago Mercantile Exchange. 500-lb. barrel Cheddar is up, temporarily. There is no hope for milk powder prices in the coming half-year, except perhaps in the event of a nuclear war.

Dairy Livestock Prices Generally Slipping (p. 14):
Except for a few Canadian buyers paying top $$$ for absolutely top-end Holsteins, dairy livestock prices in the U.S. are generally down.

"Screaming and yelling in public” (p. 14):
With his permission, we reprint an excellent article from “Farm and Food File” syndicated columnist Alan Guebert. He reflects angry comments by U.S. Secretary of Commerce Wilbur Ross, who’s peeved at complaining farmers and farm groups that are worried about loss of export markets due to the Trump administration’s anti-NAFTA policies.

Details of NY State Dairy Investments Hard to Find (p. 14):
Write Nate Wilson explains his months’ long struggle to find out exactly how much in subsidies the New York State Economic Development Corp. has shelled out to dairy plants. Even his State Senator, chair of the Senate Finance Committee, couldn’t get a straight answer from that state agency.

Quit worshiping exports and ‘free trade’ (p. 15):
Pete Hardin warns how undue allegiance to exports has caused three agricultural Depressions in the past century, and we may well be working on a fourth. He strongly urges that the U.S. dairy industry focus on selling more dairy products domestically … with more net money going to the producer.

Cheese-pricing’s “double-whammy” hurts almost everybody (p. 15):
Two current cheese pricing problems are hammering some cheese plants. That “double-whammy” involves barrel Cheddar prices topping block Cheddar prices in USDA’s Class III (cheese) milk pricing formula. Also, the spread between prices at the Chicago Mercantile Exchange and USDA/AMS’ weekly survey of manufacturers translates into a sell-low/pay high situation for cheese plants whose milk is priced by the federal milk order system.

Large Volumes of Out-of-State Milk Entering Wisconsin Cheese Plants (p. 16):
We’ve got a picture! Large volumes of out-of-state ,milk – particularly from Michigan – are entering Wisconsin cheese plans and disrupting local farmers’ milk markets and prices. One of our “Stories of The Month,” see link at top.

Jan. 1: Key Date for Milk Supply Contracts; Mid-East Suprlus Threatens Distant Markets (p. 16):
Another "Story of the Month," see link at top.

November 2017 Issue No. 460

Inside this month’s issue …

Our stories of the month:
"Globalism" – Boom or (Mostly) Bust for U.S. Dairy Farmers (Page 1)

and

U.S. Dairy Farmer Check-Off $$$ Helping to Bankroll High-Flying (Worthless) GENYOUth Promotion (Pages 8 & 9)

Click Above for Stories of the Month.

SUBSCRIBE TO THE MILKWEED TO READ ALL THESE CURRENT DAIRY STORIES!!

U.S. Butter Prices are Bottom-End as Global Prices Tumble (p. 2):
EU butter prices have collapsed by about $1.00/lb. in recent weeks. Of the three major dairy export regions, the U.S. butter prices are the lowest.

Northeast Milk Order OKs New DFA Milk Dumping Request (p. 2):
If they’re starting to think about Thanksgiving, it must be time for Dairy Farmers of America to request another round of pooling for “dumped” milk in the Northeast. That period will extend from Nov. 15 to Jan. 8.

Oct. Class III Price Up 33 Cents to $16.69, But II and IV Prices Fall (p. 2):
Cheese milk prices rose modestly for October, but Class II (cultured products) and Class IV (butter-powder) prices declined sharply.

Saputo to Buy Murray Goulbourn Co-op – Troubled Australian Firm (p. 3):
Canadian dairy giant Saputo, Inc. is acquiring Murray Goulborn – Australian dairy’s headache. Reported purchase price is $1.29 billion (Canadian $).

Dane County to Fund Manure Compost Study (p. 3):
In the county’s latest effort to combat nutrient run-off into Lake Mendota, Dane County, Wisconsin will be to fund a manure-composting project.

NYT Reports Butter Shortages in France (p. 3):
The home of buttery croissants is featuring empty butter sections in some retail outlets.

NAFTA Talks Likely Going Nowhere Soon (p. 4):
Writer Nate Wilson covers the latest non-developments in the on-gong NAFTA talks between the U.S., Canada and Mexico.

Vilsack: Canada’s Farm Milk Quotas Must Go (p. 4):
Tom Vilsack, now CEO of the U.S. Dairy Export Council, advises that Canada’s farm production for dairy, poultry and pork must be gotten rid of, in a more liberal trade environment. The U.S. dairy leadership is falsely blaming Canada for this nation’s inability to balance milk supplies with demand.

U.S. Farmers Alarmed by Trump’s Looming NAFTA Betrayal (p. 4):
Nate Wilson summarizes a very recent article from Politico, which details seriously growing concerns about the Trump administration’s disregard for NAFTA’s benefits for agricultural exports.

UW Expert: More Research on Dairy Genetics’ Link to Milk Coagulation (p. 5):
Jan Shepel interviews UW-Madison Dairy Science department head Dr. Kent Weigel about concerns that a variant of bovine milk proteins – Kappa Casein E – may not allow curd formation in cheese vats as efficiently as milk from dairy cows without the Kappa Casein E gene. Wiegel explains the issues, and strongly urges that more research into Kappa Casein E’s functionality be conducted in the U.S.

Kappa Casein E May Impair Curd Formation (p. 5):
Writer Ken Rabas offers his personal insights about curd formation issues involving milk from cows with the Kappa Casein E gene. Rabas observes that a large number of popular dairy sires in recent years have the Kappa Casein E trait.

Mom and Pop’ Dairy Processor Reviving Old NY Creamery (p. 6):
Paris Reidhead visits with Dan Finn, a dairy farmer who is reviving an old dairy plant, to make his specialty cheeses.

DOJ Proposal in WI Assembly Would End State Butter Grading (p. 7):
The Wisconsin Department of Justice has submitted a proposed law change that would terminate the state’s butter-grading rules. Those law are the targets of multiple lawsuits, and the state’s DOJ looks like it is scrambling for a fall-back position. Rep. Kathy Bernier (R) has submitted that bill, which is as yet unnumbered. At the earliest, that legislation will be considered in late January 2018.

U.S. Dairy Farmer Check-Off $$$ Helping to Bankroll High-Flying (Worthless) GENYOUth Program (pages 8-9):
The GENYOUth program is a private, non-profit that receives about $4 million annually from the dairy check-off. GENYOUth, in tandem with the National Dairy Council and the National Football League, ties into the “Fuel Up to Play 60” promotion. Trouble is: “Fuel Up to Play 60” only promotions low fat and fat-free dairy products. Sales of fat-reduced dairy products have been, and are, in the toilet. What a waste of money. On December 6, GENYOUth is hosting a gala fundraiser in New York City. Individual seats at that banquet cost from $2,500 to $15,000. Bill Clinton is the keynote speaker. Tuxedoes are optional.

Farmers, Consumers Are Victims of Massive Organic Import Fraud (p. 10):
John Bobbe, the director of OFARM (an organic grain marketing co-op), details the latest troubling developments involving imports of fraudulent “organic” grain. Bobbe concludes that USDA’s under-funded organic grain “police” are no match for organized crime elements in Eastern Europe and Russia that are flooding the U.S. with fraudulent organic grain.

EPA: Dicamba Damaged 3.6 million U.S. Soybean Acres in 2017 (p. 11):
On November 1, the U.S. Environmental Protection Agency confirmed that 3.6 million acres of U.S. soybeans – four percent of the nation’s entire crop – were damaged by “drift” from Dicamba-based heribicides.

Preliminary Report for 2017 NY & PA Corn Silage (p. 11):
Paris Reidhead summarizes early composite results from the Dairy One lab for corn silage samples from Pennsylvania and New York. The results are not pretty, when compared to 2016’s data.

Francis Thicke’s “Farewell Address” at National Organic Standards Board (p. 12):
Iowa organic dairy farmer/processor Francis Thicke retired from his post at the National Organic Standards Board on November 2 … and gave them an earful about failure to properly police the integrity of organic grain imports and U.S. dairy production. Bravo!

Wisconsin Business Lobby Proposes: No “America’s Dairyland” on License Plates (p. 12):
In the public’s eye, no state is more closely identified with a single food product that Wisconsin’s link to cheese. But the state’s top business lobby wants to ease “America’s Dairyland” from Wisconsin license plants … after more than 70 years.

Dairy’s Commodity Scene: Cheddar Prices Holding, Butter & NFDM Down (p. 13):
Pete Hardin wades through the dairy commodity situation. It’s a good thing that Cheddar prices are in the $1.70s. The fortunes for nonfat dry milk are dire.

Dairy Livestock Prices Lower; Russian Agents Want 33,000 U.S. Heifers (p. 14):
“It’s a buyer’s market and there aren’t many buyers.” That quote sums up the U.S. dairy livestock situation. Separately, we report that Russian interests want to buy 33,000 U.S. dairy heifers. They’re shopping for open heifers and want to half of that amount bred by ET and the rest to sexed semen.

Egad. Another farm law … (p. 15 - Editorial):
Pete Hardin offers his two cents on National Milk Producers Federation and its half-baked plan to improve the Margin Protection Program-Dairy – the worthless “safety net” program for dairy farmers that has more holes than a piece of good Swiss cheese. Hardin proposes regionalizing feed costs and net milk prices to make MPP-Dairy work properly … along with a lot of other overdue changes for federal diary policy.
Per Capita Dairy Consumption Graphs: 40+ Years of Changes (p. 16):
We reproduce four excellent graphs tracking dairy product consumption for the past 40 years. These graphs originally appeared in the October 2017 bulletin of the Federal Order #32 milk marketing administrator.

October 2017 Issue No. 459

Inside this month’s issue …

Our stories of the month:
CME Butter Prices Fall, Counte to Solid Supply/Demand Metrics; and
Elanco Hopes to Find Buyer for Posilac – Controversial Milk-Stimulating Biotech Hormone; and
Total 2017 Dumpage in FMMOs #1 and #33 Equaled a Line of Gallon Jugs 1,810 Miles Long

Click Above for Stories of the Month.

SUBSCRIBE TO THE MILKWEED TO READ ALL THESE CURRENT DAIRY STORIES!!

JBS’ Top Executives Arrested in Brazil, Their “Old Man” Takes the Helm (p. 2):
Scandal-ridden JBS, SA – the world’s largest meat slaughter operator – had its two top executives jailed in Brazil. This latest event follows months of scandals involving bribery of politicians, meat plant inspectors and bankers. JBS is a major operator of U.S.-based slaughter plants.

Kraft-Heinz Retracts 90-Day Milk Payments Demand (p. 2):
In nothern New York, Kraft-Heinz has pulled off the table its demand that milk suppliers agree to 90-day payment terms. Score one for The Milkweed.

Increased Reports of Embargoed, Imported “Organic” Grain (p. 2):
By latest count, there may be as many as four shiploads of imported, “organic” grain subjected to intense scrutiny at U.S. ports.

August 2017 Class III Price is $16.57 (+$1.12) (p. 2):
The cheese milk price for USDA’s federal milk order program rose $1.12/cwt. in August.

Sept. Manufacturing Class Prices All Decline (p. 2):
Lower dairy commodity prices pulled down all manufacturing milk class prices for September.

Grassland Dairy Products Cuts All Premiums, Hauling Subsidies to Producers (p. 3):
Grassland Dairy Products – Wisconsin’s biggest private milk procurer – recently informed its producers that all hauling subsidies and other premiums would be terminated. That move will cost many Grassland producers a few hundred dollars per cow per year.

Minimal August ’17 Milk Dumpage in FMMOs 1 & 33 (p. 3):
The final month of approved “milk dumping” in the Northeast and Mid-East milk markets ended with a wimper – very little milk actually dumped.

Embarrassed USDA Releases 3 Years of Dairy Promotion Audits (p. 3):
USDA hastily released three years of “Reports to Congress” on the dairy promotion programs. USDA coughed up those reports following embarrassment as the Organization for Competitive Markets and the National Dairy Producers Organization revealed the government’s failure to release that info in September.

USDA Dismisses Complaint Filed Against Aurora Organic Dairy (p. 4):
In late September, USDA’s National Organic Program dismissed a complaint filed by The Cornucopia Institute against Colorado-based Aurora Organic Dairy. USDA found Aurora in complete compliance with organic pasture standards.

Agri-Mark Will Hit Selected Members with “Stop Charge” Hikes to $50!!! (p. 4):
Some Agri-Mark members will pay higher “stop charge” fees to their co-op, starting in January 2018. The boost goes from $10 to $50. For the farmer being picked up every other day, that’s an extra $600/month in extra marketing costs paid to the co-op. Not all Agri-Mark members will pay these costs. The hike is based upon a recent internal milk hauling study.

FBI Pulled into Latest Agri-Mark Embezzlement Case (p. 4):
Somebody did it again! The FBI and Vermont State Police are investigating another embezzlement at Agri-Mark.

DFA Continues Bullying Small NY Co-ops (p. 5):
Now Dairy Farmers of America is pushing members of the Lowville Milk Producers and Jefferson Bulk milk co-ops to become full equity partners with DFA, or lose their access to markets through DFA’s subsidiary, Dairy Marketing Services.

American Dairy Coalition Aims for Guest Worker Legislation (p. 5):
Writer Jan Shepel details a presentation of a proposal for immigrant farm labor rules reform that was conducted at World Dairy Expo by the American Dairy Coalition. Rep. Bob Goodlatte (R-VA) has submitted legislation calling for labor reforms involving immigrant farm workers. This story raises questions, including, exactly what is the American Dairy Coalition and how does that two-year old group claim to represent three-quarters of U.S. dairy farmers. Most U.S. dairy farmers have probably never heard of that group.

Spectrum Seed: Founded to Produce non-GMO Seed Corn (p. 6):
Farmer/writer Jan Shepel profiles the Indiana-based seed corn company, Spectrum Seed, about its marketing of non-GMO corn varieties. Interesting!

Canadian Gov’t Funding $350 Mil. to Upgrade Canadian Dairy Farms & Processors (p. 6):
Writer Nate Wilson reports on very recent developments from Canada, where the national government is offering major, cost-sharing, financial incentives to upgrade dairy farms and processing plants.

Dicamba Dilemma Rages On: 2 Million U.S. Soybean Acres Impacted (p. 7):
Writer Paris Reidhead writes about how the drift of Dicamba has impaired two million acres of U.S. soybeans this year.

Dioecious Reproduction: Purdue University Agronomists Get Involved (p. 7):
Paris Reidhead provides more details than we want to know about the latest “superweed” -- giant pigweed.

MI Dairy Farm Couple Pleads Guilty to Undocumented Help Schemes (p. 8):
Michigan dairy farmers Denis and Madeline Burke have pled guilty to widespread abuses of federal labor laws. He was fined and penalized over $1.5 million and awaits sentencing on January 4, 2018.

Rye Cover Crop Can Reduce Corn Belt’s “Dead Zone” Impact (p. 8):
Writer Paris Reidhead details the near-miraculous benefits for reducing nitrogen run-off by planting ryegrass cover crops.

Dairy Commodities: Cheddar Bounces Back; Butter & NFDM Lower (p. 9):
The headline tells the story of dairy commodity price trends during the past month. Of great interest: Noises from the EU agricultural commissioner that it’s time to tighten up the “intervention” program in which EU nations buy surplus skim milk powder. The EU is currently sitting on about 830 million lbs. of aging SMP.

Most Dairy Livestock Prices Flat to Lower (p. 10):
Money is tight on many U.S. dairy farms. Farmers are selling livestock to generate cash. Beef prices are down. In some regions, crop volumes and quality are of concern. Result: Price for dairy livestock are generally down. Some buyers are looking for breeding age and short-bred heifers.

U.S. Livestock Truckers Worry About New Federal Electronic Log Book Rules (p. 10):
Nate Wilson reports that on December 18, new federal rules about truckers needing electronic log books will create headaches for livestock haulers. Drivers will be limited to 10 hours of driving time, with four hours of non-driving time behind the wheel. But after 14 hours, a single driver must shut down for 10 hours. We can hear those critters bellowing now!

Wrong for the wrong reasons??? (p. 11):
Pete Hardin admits missing the target on projections for 2017’s butter and beef prices. But a review of the butter industry’s metrics raises a lot of questions about current, low butter prices.

WI Twp. mega-dairy invokes the Almighty (p. 11):
In Green County, Wisconsin, owners of Pinnacle Dairy are on the fast track to complete their 5,800-cow dairy in Sylvester Township. At a recent state DNR meeting, owner Todd Tuls claimed to be gifted by God to be a dairy farmer. The Milkweed pokes scriptural fun at Tuls’ claims of being divinely anointed to milk thousands of cows making millions of gallons of waste.

PowerPoint Panels from World Dairy Expo Presentation (p. 12):
Two of UW-Madison dairy economist Mark Stephenson’s power point panels are reproduced and detailed.

Order 33 Milk Hauling Goofy: IL to MI to WI; MI to WI (p. 12):
We relate the gripes of two dairy farmers. One from Illinois, has Foremost Farms haul his milk to a Michigan Milk Producers Assn. plant at Constantine, Michigan, where the milk is condensed and then trucked to a Foremost cheese plant in Wisconsin. Meanwhile, a dairy farmer from south-central Michigan puzzles why Michigan Milk Producers Assn. milk from that area is being trucked three or four times per week to Reedsburg, Wisconsin.

September 2017 Issue No. 458

Inside this month’s issue …

Our stories of the month:
Butter: Demand Strong, But CME Prices Tumble Sharply and
CME vs. AMS: Contrasting Weekly Cheddar & Butter Averages
Click Above for Stories of the Month.

Butter: Demand Strong, But CME Prices Tumble Sharply (p. 1):
We discuss contra-seasonal, recent butter pricing events at the Chicago Mercantile Exchange. Story of the month, click above.

Early 2018: Likely Start for Walmart Fluid Plant in Fort Wayne (p. 1):
When Walmart starts processing fluid milk at its brand new facility early next year, dairy will never be the same. Fluid processors (primarily Dean Foods) will start chasing after other processors’ retail accounts. Dairy Farmers of America is offering cheap Class III milk to Wisconsin plants from the Mid-East order. Federal milk orders???

NMPF & USDEC Want “Free Flow” of Dairy Products from Mexico!!! (p. 2):
Talk about dumber than a box of rocks. At an August 2017 meeting with Mexico’s dairy organizations, representatives of the National Milk Producers Federation and the U.S. Dairy Export Council came up with a multi-part, joint resolution that calls for, among other foolishness, establishing free-flow of dairy products between the two nations. Mexican milk entering the U.S.? Say WHAT???

August 2017 Class III Price is $16.57 (+$1.12) (p. 2):
The cheese milk price for USDA’s federal milk order program rose $1.12/cwt. in August.

“Something Big” Brewing in the Northeast … Merger? Marketing Agency? (p. 3):
The seriously troubled Northeast looks like its getting ready for some sort of consolidation of dairy co-ops. Merger? Marketing agency in common? Agri-Mark and the St. Albans Co-op seem to be involved. And of course, nothing “Big” happens in the Northeast without Dairy Farmers of America. We’ll see …

2017 Forage/Corn Crops Are Problematic in NY, New England (p. 3):
A cold, wet spring followed by a cool, wet summer has meant big setbacks for crops in New York State and New England. In the coming months, dairy marketers in that area may honestly project a big drop in milk production, due to poor crops and limited financial resources on dairy farms.

DFA Knocking Off Small Co-ops in Northeast (p. 4):
Like ten pins, DFA is wiping out smaller milk marketing groups in the Northeast. Threats of no milk markets if groups and individuals don’t join DFA are common.

July Milk Dumpage in FMMOs 1 &33 Down Dramatically (p. 4):
What surplus? Milk dumpage for both the Mid-East and Northeast federal milk orders was way down for July 2017.

DFA’s Garden City, Kansas Milk Powder Plant to Open (p. 4):
The nation’s newest dairy processing plant – DFA’s milk powder plant in Garden City, Kansas, will open this fall. Just what the nation needs … a milk powder plant smack dab on top of the fast-declining Ogallala aquifer.

FDA: “Enforcement Discretion’ for U-F Milk in Cheese Vats (p. 4):
FDA will look the other way on use of ultra-filtered milk in the production of cheeses of a standard identity.

CME vs. AMS: Contrasting Weekly Cheddar & Butter Averages (p. 5):
In late August and early September, cash butter and cheese prices at the Chicago Mercantile Exchange headed south. But the weekly dairy commodity price survey of manufacturers by USDA’s Agricultural Marketing Service didn’t go down. Is this a short-term curio, or a sign of things to come??? Story of the month. Click on story at top of the Web page.

Big Decisions in Long-Running Milk Powder Price Mis-Reporting Case (p. 5):
In late August, the Courts came down hard on Defendants in dairy’s long-running milk powder mis-reporting case. The court let stand some aspects of RICO (anti-mafia) claims against Defendants DairyAmerica and California Dairies, Inc. Defendants and their lawyers were sanctioned for misconduct. The court did not grant requests to add California dairy producers to the Class.

“… we thought organic milk pricing would be different.” (p. 6):
Organic dairy farmer Jim Goodman reviews pricing and marketing events in a retrospective look at organic dairy’s downturn.

Organic Producers Taking a Whipping on Price, Markets (p. 7):
We cite numerous instances of organic dairy producers seeing their milk price drop, or else conventional producers in transition to organic having those transitions cancelled in mid-stream.

Finally … USDA “Discovers” Fraudulent Organic Grain Imports from Turkey (p. 7):
Organic grain industry sources report that USDA has announced fraudulent grain imports from Turkey have entered the U.S. This move comes after many months of concerned organic farmers pointing out the problems … and nearly three months after a blockbuster expose by the Washington Post.

Clover Sonoma: San Francisco Bay Area Processor Changing with the Times (p. 8-9):
We profile Clover Sonoma, a major dairy processor in the SF Bay Area. Clover Sonoma has recently undergone a name change, to identify better with the North Bay ambiance. And Clover Sonoma has rolled out a line of “Non-GMO” half-gallons.

Clover-Stornetta was First Dairy in California to Offer Consumers “rbGH/rbST-free” Milk (p. 8):
Once a pioneer, always a pioneer. In 1994, Clover Sonoma’s predecessor – Clover-Stornetta Farms – was the first dairy processor in California (indeed, west of the Mississippi) to disallow producers use of Posilac® -- Monsanto’s milk inducing, biotech hormone. We review some of that history.

New York Organic Grain Dealer Uses QuickScan® to Insure Organic Grin Integrity (p. 10):
Paris Reidhead reports on his discussions with NY organic grain farmer/dealer Sumner Watson on the importance of testing imported grain to assure quality.

Human “Help” Intensified Hurricane Harvey’s Clout (p. 10):
Human factors. Including lax urban planning, helped worsen the impact of Hurricane Harvey in the Houston, Texas area.

Dairy Farmers Can Now Opt Out of MPP (p. 11):
Recent moves by Congess and enacted by USDA will allow dairy farmers who entered five-year contracts for the Dairy Margin Protection Program to notify USDA they want out without penalty. Savings: $100/yr. for not having to continue in a worthless gov’t program.

2016: U.S. Fluid Milk Sales Tumbled Below 50 Billion lbs. (p. 11):
Down, down, down. For the first time in many decades, total U.S. fluid milk sales fell below 50 billion lbs. last year.

“… we thought organic milk pricing would be different.” (p. 6):
Organic dairy farmer Jim Goodman reviews pricing and marketing events in a retrospective look at organic dairy’s downturn.

Farmer Optimism Continues to Fade in Latest Ag Confidence Survey (p. 12):
Writer/dairy farmer Jan Shepel details a recently released Ag Confidence Survey that shows America’s farmers are losing confidence in prices in their various sectors.

Comment Period Open on WI DNR Manure Spreading Rules (p. 12):
The public has the opportunity to comment on revised manure spreading rules proposed by the Wisconsin’s Department of Natural Resources.

Dairy Commodity Price Gyrations Cause Confusion (p. 13):
Up and down price movements of dairy commodities in cash market trading at the Chicago Mercantile Exchange are starting to defy logic. Some point to market disruptions caused by adverse weather. But others suspect that CME’s shift to electronic trading n late June 2017 may be the culprit.

Dairy Livestock Prices Generally Soft, Except for Jerseys (p. 14):
In general, prices for dairy livestock are flat at best, except for Jersey animals.

Barron’s Columnist Doesn’t Get Dairy (p. 14):
We all make mistakes, but … In late July, Barron’s columnist Chelsea Dulaney really goofed. In writing about a pending surge in commodity Cheddar prices, she recommended that investors could hope on that uptick by buying stock in Dean Foods. Trouble is, Dean Foods doesn’t make or sell cheese. And when disappointing second quarter earnings came out in August, Dean Foods’ stock continued its nose-dive … having lost half its value from early January 2017 through late summer.

Letter writer is barking up the right tree … (p. 15):
Pete Hardin responds to a letter writer’s puzzlement about reasons for aberrations in trading since the start of electronic-only dairy commodity trading in late June 2017.

Dairy exporters must cope with Trump’s bluster against buyers (p. 15):
Just this year, Donald Trump has blustered against just about every major buyer of U.S. dairy commodities – China, Mexico, Canada and South Korea. At what point do export buyers start to view the U.S. as an unstable supplier … or do they ignore the blather coming from the White House?

The Tale of Two Milk Companies: a1 Milk Company and Dean Foods (p. 16):
Pete Hardin compares the contrasting stock fortunes of two dairy firms – The A2 Milk Company, LTD., and Dean Foods (this nation’s largest fluid milk processor). One firm has seen its stock value virtually double since mid-spring 2017. The other has seen its stock value drop by 50% during 2017. Why?

August 2017 Issue No. 457

Inside this month’s issue …

Our stories of the month:
Kraft-Heinz: 90-Day Payment Terms for Mik at Lowville, New York and
90-Day Milk Payments = Naked Greed, There Ought Be A Law!
Click Above for Story of the Month.

Butter Leading Tighter Dairy Marketing Picture (p. 1):
Strong demand for butter – both domestically and internationally – is helping tighten the U.S. dairy commodity picture, except for dairy protein powders. Milk production in some states is slowing (Californa, Wisconsin, New York and Pennsylvania). But milk production in Texas and the Lower Plains is galloping. Dairy marketing conditions in Wisconsin have eased, with less distressed milk coming into Wisconsin from Michigan.

Kraft-Heinz: 90-Day Payment Terms for Milk at Lowville, NY (p. 1):
One of two related “Stories of the Month.”

Senate Appropriations Committee Passes Dairy MPP “Improvements” (p. 2):
Writer Jan Shepel reviews recent proposed changes to the dairy “safety net” that were approved by the Senate Appropriations Committee. Don’t expect anything significant.

UST Releases NAFTA Re-Negotiating Goals (p. 2):
Goals for the United States negotiators in upcoming talks about the North Atlantic Free Trade Agreement have been released by the federal government.

In Mid-July, 2017 Dairy Culls Nose Past 2016’s Total (p. 2):
As of July 15, 2017, USDA reported that numbers of dairy culls headed to slaughter in 2017 have finally exceeded year-ago totals. It’s been a few years since that fact could be stated.

Butter Drives July Class IV Price ($16.60) Above Class III ($15.45) (p. 2):
Stronger butter prices, in contrast to weakening Cheddar prices, drove July’s Class IV (butter-powder) price above the Class III (cheese) price in USDA’s federal milk order program.

New York State Funding Incentives for Dairy Farmers and Processors (p. 3):
Writer Nate Wilson takes a tongue-in-cheek look at recent years disastrous efforts by New York Governor Andrew Cuomo to subsidize growth of the state’s yogurt processing businesses, as well as stimulating growth of farm milk production.

Northeast Milk Flow Rapidly Losing Steam (p. 3):
USDA milk production data shows the three biggest dairy states in the Northeast – New York, Pennsylvania and Vermont – all showing significant slow-downs in milk volume during 2017’s second quarter. At the current rate, either in July or August 2017, the Northeast will be making less milk than in the prior month, one year ago. That’s a change!

Big Cheese Plant Deal in Michigan May Be Wobbly (p. 4):
Forget the January 2017 press statement about three dairy co-ops in Michigan building a massive cheese plant in partnership with Glanbia (from Ireland). Our sources say that project is on “life supports” and likely won’t fly, since Glanbia’s demands regarding responsibility for indebtedness and a guaranteed profit margin on cheese are proving too much.

June 2017 Milk Dumpage Totals for FMMOs #1 & #33 (p. 4):
Volumes of “dumped” milk during June 2017 for the Northeast (Order #1) and Mid-East (Order #33) were significantly lower, both compared to May 2017 dumpage and June 2016 totals. That’s good.

DFA Squeezing Northeast Tighter and Tighter (p. 4):
DFA’s anti-competitive attacks against other milk co-ops continue. The latest: DFA’s demands that the South New Berlin milk co-op dissolve and push its members into DFA … or else DFA will terminate the milk marketing agreement between that small co-op and DFA’s subsidiary, Dairy Marketing Services. Dirty games are also ensuing in the North Country, where DFA is elbowing local dairy co-ops whose milk is marketed to Kraft-Heinz’ Lowville plant through DMS.

UW-Madison Center for Dairy Research Project Two-Plus Years Behind Schedule (p. 5):
Embarrassing. That’s the only way to describe Jan Shepel’s coverage of the University of Wisconsin-Madison’s failure to progress on the new, $34.5 million Center for Dairy Research project.

DBA Lawsuit Alleges WI DNR Overreaching its Authority (p. 5):
Writer Jan Shepel details how efforts by Wisconsin’s hapless Department of Natural Resources (DNR) to better manage rainwater run-off from livestock feeding facilities and barn roofs have been challenged by the Wisconsin Dairy Business Assn.

Unique Pacific Coast Ecology: Basis for Alexandre Family’s Grass-Based, Organic Milk and Egg Farms (pages 6-7):
Ah, one of the benefits of writing about the dairy industry is visiting farms such as those operated by Blake and Stephanie Alexandre and their family, near Crescent City, California. Their farms are located on the narrow coastal plain in the northwestern corner of California. They operate four grass-based organic dairies and an organic egg business. What a unique, beautiful vision for agriculture!

Weed from H--- (Palmer Amaranth) Meets Herbicide from Same Place (p. 8):
Use of Dicamba-type herbicides in Southern States is causing serious problems, as writer Paris Reidhead relates. Emergency of RoundupReady-tolerant giant pigweed (Palmer Amaranth) meant that seed developer Monsanto developed soybean and cotton seeds resistant to dicamba herbicides. Problem is: Dicamba appears to migrate from fields in which its been applied – particularly during hot, humid conditions. Damage to crops in adjoining fields is totaling in the thousands of acres.

Dairy Commodity Prices: Butter & Cheddar Strengthen (p. 9):
Butter prices continue moving mostly up, driven by solid domestic and export demand. Cheddar prices at the Chicago Mercantile Exchange are also increasing. Milk powder prices remain stuck in the mid-80s (i.e., $.85/lb. or so).

Wrong Time to Be Selling Dairy Livestock (p. 10):
Prices for dairy livestock – except good cull cows – are generally dropping, according to Pete Hardin’s analysis. Why? Dairy farmers are out of money, after two and three-quarter years of low milk prices, big marketing deductions, eroded livestock values, and trying to pay for spring planting expenses.

USDA Rejects Banning Conventional Whey from Organics (p. 10):
Curious. Will Fantle of the Cornucopia Institute explains how the USDA Secretary’s office recently overrode a 14-0 vote by the National Organic Standards Board to ban non-organic whey use in organic dairy and food products. Blame for this travesty goes to the Organic Trade Assn. – nothing more than a shill or big food producers.

90-day milk payments = naked greed. There ought to be a law! (p. 11):
One of our “Stories of the Month.” -- see link at the top of the page!

MPP-Dairy “improvements” are a farce (p. 11):
Pete Hardin scorns the recent changes for the Margin Protection Program-Dairy that were approved by the Senate Appropriations Committee as meaningless. These changes ignore the two big problems: Failure of the “All-Milk Price” to accurately measure dairy farmers’ monthly income, and inaccurate measures of costs for feed (corn, soy and forages).

Managing the rest of the corn-growing season (p. 11):
Paris Reidhead underscores the importance of his article in the July 2017 issue that detailed how corn at tassel time, when harvested as silage, packs 85% of the milk-making wallop as does corn silage at maturity. Important information in this weather-challenged year for dairy producers whose corn stands’ maturity is way, way behind.

“Traffic-Light System” for Buyers to Signal Farm Milk Needs to Producers (p. 12):
Pete Hardin proposes a “Traffic Light System” for handlers to signal producers about estimated future months’ raw milk needs. This system would base off prior-years milk output history for each farm and allow flexible, buyer-seller communications.

Drought Map Reflects Very Dry Conditions Over Much of Prairie States (p. 12):
Serious dry conditions are overtaking crops in much of the Cental United States, as reflected by the early August 2017 Drought Monitor map published by the National Drought Mitigation Center. In tandem with cold, wet conditions in eastern states, Mother Nature is dishing out a large number of headaches to challenge agricultural production in 2017.

PA Family Can’t Find Milk Market in SW Wisconsin (p. 12):
A Pennsylvania dairy farm family is all set to move to Wisconsin. They’ve built a new dairy barn and a new house near Wiota, Wisconsin. Only one problem: They can’t find a milk buyer!

July 2017 Issue No. 456

Inside this month’s issue …

Our stories of the month:
USDA Bans Brazilian Beef Import Ban, and
Q&A: R-CALF USA's Bill Bullard on USDA's Brazilian Beef Ban Interview

Click Above for Story of the Month.

Dairy Farmers’ Fortunes Improving for Rest of 2017 & Beyond (p. 1):
Several factors are coming together that should improve dairy farmers’ milk prices. Those factors include: Tough dairy crops in the northeastern quadrant of the U.S., strong butter markets, and the recent USDA ban on Braziliana beef imports.

Cheese Plants Squeezed by Butter Prices & Block/Barrel “Split” (p. 1):
Cheese plants whose milk is priced by the federal milk order system are in a cost/price squeeze. The squeeze is occurring primarily for two reasons. First, butter prices have soared, leaving cheese plants facing stagnating or declining cheese prices hard-pressed to recover costs from products sold using the Chicago Mercantile Exchange as a pricing basis. Second, the “block/barrel split” for Cheddar means barrel Cheddar plants are way behind, income-wise.

USDA Bans Brazilian Beef Imports – High Percent of Rejections (p. 2):
Finally! In late June, USDA banned imports of Brazilian beef. In recent months, about 11% of all Brazilian beef inspected by USDA had failed. This ban should boost prices paid for slaughter steers and cows, across the nation. Story of the Month, click at top for complete article.

Elanco Wins Preliminary Injunction vs. Arla (p. 2):
Elanco prevailed in its request for a preliminary injunction blocking Arla Foods’ $30 million advertising/social media program that negatively depicted dairy products processed from milk from Posilac-treated dairy cows.

June ’17 FMMO Manufacturing Milk Class Prices Jump (p. 2):
Except for dry whey, all dairy commodities surveyed by USDA saw their prices increase in June, compared to May ’17, Those increases hiked prices for all manufacturing classes of milk in June.

Posilac Ban Pulling Down WI’s Milk Output (3):
Continuing a months-long downtrend, Wisconsin milk output in May fell below May 2016 totals. What’s going on? Many cheese plants are instituting bans on use of Posilac – Elanco’s bovine growth hormone drug.

Head Scratcher: Where’s All that Northeast Surplus Milk? (p, 3):
Writer Nate Wilson explores the latest milk dumpage reports for May 2017 and tries to make sense of some claims about more surplus milk in the Northeast and Mid-East federal milk orders with government reports showing less milk being dumped. Despite warnings from DFA economist Elvin Hollon in a May 2017 letter, dumpage in the Northeast significantly declined that month!

Foreign Interests Pursing U.S. Dairy Processing Firms (p. 4):
Foreign firms have purchased their way into leading positions in the United States dairy processing picture. We review many of the major players.

Cream “Multiples” Rise Nationally During June & Early July (p. 4):
The surcharges on spot sales of cream – called “multiples” rose nicely during June, according to USDA’s Dairy Market News. These increased spot sales charges for cream reflect stronger buyer interest.

Troubling Q1 2017 Retail Dairy Sales: Fluid, Cheese & Yogurt All Down (p. 4):
Retail data provided by Dairy Management, Inc. shows that sales of fluid milk (-3.3%), cheese (-2.1%), and yogurt (-5.3%) all declined in 2017. In light of expanding inventories of cheese and nonfat dry milk, that retail performance is troubling.

WI Summit Includes Ideas to Improve the Dairy Industry (p. 5):
Writer Jan Shepel reports on the June 2017 University of Wisconsin forum that aimed to boost the fortunes of the state’s dairy industry. On the whole, not a whole lot of genuine, new ideas.

Corn Silage has Two Energy Peaks: At Tasssel and Maturity (p. 6-7):
Writer Paris Reidhead produces an important story, explaining how energy available from corn plants intended for silage has two peaks. For dairy farmers facing delayed maturity of corn stands, chopping those stands at tassel stage may be the best strategy for optimizing yields and milk production.

NAFTA Update Hearing Features Beef Interests’ Conflicting Testimony (p. 7):
Writer Jan Shepel summarizes conflicting testimony from different beef industry representatives during a NAFTA update hearing held by the U.S. Office of the Special Trade Representative. Many major beef groups oppose restoration of Country of Origin Labeling rules here in the U.S.

America’s Dairyland and Trump in the Rearview Mirror as Workers Return to Mexico (pages 8-9):
Writer Alexamdra Hall of Wisconsin Public Radio contributed this compelling story about long-term Mexican dairy farm workers conducting a reverse migration – leaving the U.S. to return to Mexico. Fears of their families being separated are compelling some Mexican workers on U.S. dairy farms to head home on their own. It is estimated that 60 to 70% of Hispanic immigrant farm workers are not in this country legally.

Glanbia Wants Guaranteed Margin from Michigan Cheese Plant Project (p. 9):
What’s the delay on progress for the massive cheese plant project in Michigan that was announced early this year? Word is that partner Glanbia wants a guaranteed margin on its cheese production. Nice if you can get it!

Out of Control: Latest DMI Executives Salary Data! (p. 10):
IRS Form 990 data for Dairy Management, Inc.’s 2015 executives’ salaries is finally in. Despite low farm milk prices, DMI executives generally pulled in more moo-la. These salaries are way out of line with IRS rules for non-profit organization’s salaries.

Out-of-Court Settlement for ABC News/BFK “Pink Slime” Libel Case (p. 11):
In mid-trial in a Nebraska court, plaintiff BFI and defendant ABC News settled a libel case about “Pink Slime” – i.e., “Lean, Finely-Textured Beef” (LFBT). Details of the settlement were not made public.

The TRUTH” about LFBT (aka “Pink Slime”) (p. 11):
Following up on a BFI lawyer’s comment about the “truth” concerning Lean, Finely-Textured Beef, The Milkweed provides factual bases for this questionable material.

Iowa State Study: LFBT (“Pink Slime”) = Low Quality Protein (p. 11):
This article is a reprint from the June 2012 issue of The Milkweed. The article details analysis of an Iowa State University study that contrasted the differences between meat quality between beef chuck and Lean, Finely-Textured Beef (LFBT). Beef chuck has a far higher percent of high-ionic strength proteins, compared to LFTB. Meanwhile, beef chuck contained 30.78%T insoluable proteins, compared to 77.25% in LFTB. This study was funded by BFI. Iowa State’s website no longer posts this study … for good reason!

Q&A: R-CALF USA’s Bill Bullard on USDA’s Brazilian Beef Ban (p. 12):
The plain-speaking CEO of R-CALF USA tells the inside poop on USDA’s recent ban on Brazilian beef imports. Important reading! Story of the Month, click at top for complete article.

Dairy Commodity Scene: Butter Strong, Cheddar & NFDM Weaker (p. 13):
Pete Hardin’s analysis of the dairy commodty picture finds that butter demand is pushing up prices. But Cheddar and nonfat dry milk prices are lower at the Chicago Mercantile Exchange. Domestic cheese inventories will likely take a jump when the June 30, 2017 data is released by USDA in mid-July, due to heavy cheese production in May.

OFARM Executive’s Perspective on Recent Washington, D.C. Visit (p. 14):
John Bobbe, director of OFARM (a consortium of organic grain marketers), returned recently from Washington, D.C. where he visited USDA and Congressional offices, being ears on the fraudulent imports of “organic” grain that are busting prices for U.S. producers. Bobbe lists a long number of “to dos” to restore integrity to grain markets.

Northeast Market Administrator: Improper Class I Underpayments (p. 14):
In mid-June, the Northeast federal milk market administrator announced that auditors had discovered below-Class charges for milk sales to processors. Since the market administrator dictates minimum prices only for farm milk sold to Class I (fluid) processors, Class 1 sales are the problem. One more mess in the undisciplined Northeast.

“Food Safety Charade” – Separate rules for domestic & foreign processors (p. 15):
Pete Hardin compares the failed USDA inspections of organic grain imports with the pending proposals for importers to be responsible for compliance with imported foods under the Food Safety Modernization Act. Dangerously, there are two sets of rules – one for U.S.-based manufacturers and suppliers, and the other for imports. What baloney!

Dairy’s sobering role in the nation’s opioid drug crisis (p. 15):
It’s little known, but heat-treated milk is a source for the base for manufacture of opioid drugs. Last year, over 50,000 opioid drug deaths occurred in the United States. What is dairy’s role in the opioid drug crisis. Ironically, A2 milk does not contain the Beta-casomorphin 87 (BCM-7) protein that yields the base for opioid drugs from heat-treated milk.

Deep-Pedigreed Ameri-Milk Jeseys Dispersed across the Midwest (p. 16):
Jan Shepel writes the final chapter for Don Mielke’s long career in dairy farming – dispersal of Mielke’s Ameri-Milk Jersey herd on June 10.

June 2017 Issue No. 455

Inside this month’s issue …

Our stories of the month:
Butter Prices Soaring: You “Ain’t Seen Nothin’ Yet!” (Page 1) and
April 2017 Data: No “Tidal Wave of Wisconsin Milk” (Pages 1 & 3)

Click Above for Story of the Month.

DMI & Other Groups Roll Out “Undeniably Dairy” Media Campaign (p. 2):
Dairy promotion groups are rolling out a public relations offensive to try to improve dairy’s “image.” We’re not sure what this has to do with selling more dairy products.

For Sale: Grassland Dairy Products: (p. 2):
Wisconsin’s largest dairy processor – controversial Grassland Dairy Products – is for sale.

Canadian Dairy Officials Don’t Respond to The Milkweed’s Questions about Class 7 (2):
We were basically shut out after asking questions to Canadian dairy officials. Huh.

May ’17 FMMO Manufacturing Classes All Higher (p. 2):
The May 201`7 Class III (cheese) milk price was $15.57/cwt. The Class IV price was $14.49. Class prices in the federal milk order system are moving up.

March/April Milk Dumpage in FMO’s 1 & 33 – HUGE Increase over 2016 (p. 3):
Our “Story of the Month.” See the above link in blue to read this complete story.

DFA/DMS threatens “Independents” in Mid-East, Hiking deducts in Northeast (p. 3):
A “Story of the Month.”

Elanco Sues Arla, Seeming Preliminary Injunction against “Posilac-Monster” Ads (p. 4):
Elanco – which produces and markets Posilac (biotech bovine growth hormone) – has sued Danish cheese giant Arla Foods. Arla has rolled out a $30 million dollar media campaign depicting Posilac as a monster and claiming that cheese made from milk from herds where cows are injected with Posilac contains “weird stuff.”

Elanco Executive Admits rbST-cheese Labeling Critical for Posilac’s Future (p. 4):
On the witness stand in Green Bay, Wisconsin, Elanco official Grady Bishop testified that if the “No rbGH/rbGH” dictates continue for the cheese industry, Elanco may have trouble continuing that product profitably. Based on the dictates of a major, unidentified cheese buyer, a wide array of cheese manufacturers are issuing “No Posilac” dictates to their dairy producers.

There’s Still a Place for Small Farms in Dairy Industry (p. 5):
Jan Shepel reports on a presentation by University of Kentucky dairy scientist Dr. Jeffrey Bewley.

WI Reject Dairy’s 2nd CAFO-Expansion Plan (p. 5):
A Dunn County dairy CAFO was rejected in its application to expand from 3,500 milking cows and 1,250 young stock by Wisconsin’s Department of Natural Resources. The dairy has listed many neighbors' properties as committed to take manure from the expanded operation, when, in fact, the neighbors had never committed to receive manure.

Jet Stream Omega Anomaly Undermines Start of Growing Season (P. 6):
Writer Paris Reidhead goes over our heads to describe the aberrant, upper atmosphere patterns this spring that left many areas of the central and eastern U.S. wet. Interesting!

Compost: The Future of Manure Handling for the Dairy Industry? (p. 7):
Jan Shepel picks the brain of a Wisconsin businessman who has manure spreading and manure composting services. For many reasons, he’s a big believer in composting to treat dairy manure.

Winterkilled Alfalfa: Big Concern in Wisconsin’s Northeast (p. 8):
Dairy-rich eastern Wisconsin has been nailed hard by winterkill of tens of thousands of acres of alfalfa. Some areas have lost 70-80% of their alfalfa stands. A cold, wet spring has hampered getting row crops planted in the Upper Midwest and Northeast.

Fortunes & Futures of 3 NYS Dairy Plants: A Mixed Bag (p. 8):
Nate Wilson reports on changing events involving diary processing plants in western New York. The Big News: HP Hood is positioning to buy the defunct Quaker-Mueller yogurt plant at Batavia.

Butter Prices Very Strong; But Block-Barrel Cheddar Split Huge (p. 9):
Butter prices are zooming upwards, propelled in part by international demand and somewhat lower U.S. production. The “split” between Cheddar blocks and barrels is wide. Barrel inventories are a glut on the market.

Dairy Livestock Prices Mostly Stable Over Past Month (p. 10):
We note slight increases in prices paid for #1 springing heifers.

JBS Bribery Scandals in Brazil Raise Serious Questions Here in U.S. (p. 10):
Owners of JBS SA – Brazil’s largest meat slaughter operator – have turned over tapes to investigators that show these officials bribed high-level government officials to get loans that allowed JBS to buy U.S.-based meat-packing businesses.

Turn-around Time for Dairy Farmers’ Fortunes??? (p. 11):
Pete Hardin looks ahead and sees better milk prices due to weather events, good cheese demand, and solid butter sales (domestic and abroad).

End in Sight for the “30 Years War” over Posilac??? (p. 11):
Pete Hardin chuckles at witness stand testimony from a high-level Elanco executive that if the U.S. cheese industry turns its back on Posilac (recombinant bovine growth hormone), Elanco’s ability to profitably produce and market that veterinary drug will be challenged. A major, unnamed cheese buyer has recently put out the “No Posilac” in milk used to make cheese that buyer takes. Where do we send the “Thank You” card?

Hot Air Re: Canadian Dairy Pricing Blows Over??? U.S. UF Sales Resume (p. 12):
Despite all those complaints about the terrible Canadians blocking U.S. shipments of ultra-filtered milk proteins, “spot” milk prices are so disastrously low that marketers can still make money selling that UF material to Canada.

May 2017 Issue No. 454

Inside this month’s issue …

Our story of the month:
“Secret” Canadian Class 7 Milk Price Formula Revealed!!! (p. 3):
Click Above for Story of the Month.

Adverse Weather Events Pounding Grain & Beef Producers (p. 1):
A variety of difficult weather events are making life difficult for the nation’s grain and beef producers – particularly in the heartlands. Severe flooding has much of the country’s mid-section. And import grain farming areas haven’t been flooded are facing cold, wet soils in mid-Spring. Meanwhile, a devastating, late April blizzard killed thousands of beef animals in eastern Colorado and western Kansas. That blizzard followed earlier wildfires that hurt cattle producers in Oklahoma and Kansas. Bottom line: weather events that are hammering grain and beef producers have the potential to push up grain and beef prices – factors that will benefit dairy.

Several Signals Indicate Stronger Butter Prices Ahead (p. 2):
U.S. butter prices are below world market levels. That fact boosts export opportunities and slows imports.

Focus on Kraft-Heinz Milk Supply Contract at Lowville, NY (p. 2):
On May 31, the farm milk supply contract between Dairy Marketing Services, LLC and Kraft-Heinz for the latter’s mammoth Lowville, NY plant expires. Questions are rampant in the Lowville area about the terms of a new contract. Farm milk supplies are overabundant in the Northeast.

April Class III Price Drops to $15.22/cwt. – Down $.59 (p. 2):
The April 2017 Class III (Cheese) milk price fell $.50 per cwt., reflecting lower butter and Cheddar prices in USDA’s weekly survey of manufacturers’ sales.

"Secret” Canadian Class 7 Milk Price Formula Revealed!!! (p. 3):
Our “Story of the Month.” See the above link in blue to read this complete story.

Geonomics: Tool for Improving Herds Improvement Requires a Plan (p. 4):
Writer/dairy farmer Jan Shepel reports on comments about genomics by three noted dairy breeders at a March 2017 meeting in Wisconsin.

MMPA Claims “Net Savings” Despite HUGE Deducts from Members’ Milk Checks (p. 5):
For its fiscal year ending September 30, 2015, Michigan Milk Producers Assn. claimed profits of just over $5 million. But those profits were conjured up follow deducts against members’ milk checks that totaled around $745 million in the form of lower PPDs. MMPA is awash in milk, and incurring big losses getting rid of the stuff.

Dairy Leaders Preparing Pro-GMO, Anti-Activist Onslaught (p. 5):
As if they didn’t have better things to do (llike sell more dairy products), leaders of top dairy organizations appear to be part of a big push, coming out soon, to promote biotech foods.

Food Safety Starts with an Ethic, But Requires Tools (p. 6):
We continue with part 2 of our profile of Nelson-Jameson, Inc., with a focus on specific tools available to dairy and food plants in the continuing push for food safety.

Waunakee, WI Dairy Farm Invests in Manure Composting (p. 7):
Writer/dairy farmer Jan Shepel describes the Endres brothers’ Beryride Farms’ manure composting barn. Very interesting story!!! The Endres compost dairy manure year-round. They find savings in reduced transporting manure to the fields, greater dry matter yields for alfalfa, and no problems with polluting nearby streams. Yes, composting seems to be working well for the Endres family.

PowerPoint Panels from the ADPI/ABI Meeting (p. 8-9):
We reprint selected, informative PowerPoint Panels provided by speakers are the recent, combined milk powder and butter industry meeting in Chicago. Plenty of wisdom at the podium at this event, which was attended by over 1,000 industry representatives

DFA’s 2016 Financial Report: More & More Questions (p. 10):
Pete Hardin conducts his annual proctology on the latest financial audit of Dairy Farmers of America. DFA’s 2016 financial report continues to be plagued with the same-old, same-old problems – questionable “assets” In particular, Hardin questions DFA’s $375 million worth of “Preferred Equity Securities.” In the past, Moody’s Investors Service has labeled such assets as “debt-line.” Currently, Moody’s puts a 50% value on those assets.

Bitter Butter Battles Buffeting Badgerland Barristers (p. 10):
A flurry of lawsuits and administrative actions has taken place in Wisconsin during the past two months. Wisconsin officials have blocked sales of KerryGold butter. KerryGold has sued a competitor. A “grassroots” group has sued Wisconsin state officials. And Minerva Dairy (Ohio) is claiming that Wisconsin’s butter grading laws inhibit commerce.

Organic Milk: Playground Bullies Still stealing Milk Money (p. 11):
Writer Paris Reidhead provides both historic and up-to-date perspectives on the issue of organic dairy integrity and the undue influence of mega-dairies. Unless the trend of USDA’s ignoring CAFO organic dairies’ violating pasture access rules, organics will go the way of conventional dairynig – with the “big boys” squeezing out the small and medium producers.

How Much Butter Does Wisconsin Make??? (p. 11):
Nobody knows. Why? Because federal and state agricultural reports cannot reveal totals because that would be a clue ass to how much volume the state’s biggest butter manufacturer (Grassland Dairy Products) has.

Meaningful Reform for Checkoff Programs Pushed (p. 12):
Jan Shepel covers companion legislation in both the U.S. Senate and House of Representatives that would reform agricultural commodity promotion check-off programs. About time!!!

Butter has Best Potential Upside in Unsettled Dairy Commodity Scene (p. 13):
In Pete Hardin’s commodity analysis, he sees butter as the top commodity with room for upwards price movement. U.S. butter prices are lower than those in Oceania or the European Union -- boosting exports and slowing down imports

Dairy Livestock Prices Flat at Best, But Beef Buyers May Help (p. 14):

In this spring of discontent, dairy livestock prices remain flat … at best. But beef buyers are not back in the game – buying dairy livestock for slaughter and placement in beef pens.

Organic Industry Watchdog Wins Major Antitrust Victory (p. 12):
Will Fantle, co-director of The Cornucopia Institute, reviews the many issues behind that organization’s successful effort in challenging the proposed acquisition of WhiteWave by Dannon. Dannon will be forced to unload its Stonyfield Yogurt subsidiary.

Among Dairy Commodities, Only Butter Maintaining Price Stability (p. 13):
The dairy commodity scene is not pretty. Butter, among the major three commodities, maintains its price integrity. Cheddar and nonfat dry milk prices are down-trending, compared to levels earlier in 2017.

Dairy Livestock: Springers, Fresh Cow Prices Down $200-$300 (p. 14):
Prices for springing heifers and milk cows are down in auctions. Farmers’ finances are limited and there is little incentive to buy more cows, when such prices and marketing condition exist in the U.S. dairy industry.

European Chemical Agency Decides Glyphosate is Not a Carcinogen (p. 14):
Jan Shepel reports on a recent decision by the European Chemical Agency that determines glyphosate – a widely-used herbicide – is not a carcinogen.

Wisconsin should focus on marketing, sales (p. 15):
Pete Hardin lays out a wide range of positive, pro-active solutions by which Wisconsin dairy interests can strive to tailor milk production to demand and to upgrade the image of cheeses produced in Wisconsin.

June 10: Ameri-Milk Jerseys to Find New Homes (p. 16):
Don Mielke’s Jersey herd and young stock will be sold by Jersey Marketing Services on June 10 at Mielke’s family farm near Menasha, Wisconsin. Mielke is an accomplished breeder in both Holstein and Jersey circles. Writer Jan Shepel interviews Don and profiles his herd of Jerseys.

Wave of “NO Posilac” Edicts Sweeps Across Cheese Industry (p. 16):
Suddenly, a large number of cheese manufacturers have put out the word: No milk from Posilac-injected herds, starting January 1, 2017. The expanded list of processors includes new arrivals Land O’Lakes, Associated Milk Producers, Inc; Agropur, Bongard’s Creameries, First District Association, and Saputo Cheese. This rapid infusion of dairy manufacturers jumping on the “No Posilac” trend is amazing. Next month, The Milkweed will try to find out what’s propelling this rush to the exits.

April 2017 Issue No. 453

Inside this month’s issue …

Our story of the month:
“New York-it is” (Dairy Producers Losing Markets) Comes to Wisconsin (p. 1), and
China’s Biggeset Dairy’s Stock Plunges by 90! (p. 1):
Click Above for Stories of the Month.

Pete Hardin’s March 30 dairy speech available to view on the Internet (click on this headline to view)

DFA/DMS Will Terminate Remaining “Independent” Producers (p. 2):
DFA’s subsidiary, Dairy Marketing Services, LLC, has notified the remaining Northeast “independent” producers in the Northeast that their markets will cease sometime in mid-fall 2017. That’s DFA’s “final solution” to the matter of marketing “independent” producers’ milk.

Sen. Gillibrand Aims for Milk Pricing Reform (p. 2):
U.S. Senator Kirsten Gillibrand (D-NY) asked USDA Secretary-Designate “Sonny” Purdue at his confirmation hearing if he would countenance public hearings in New York State regarding milk pricing reform. Purdue answered affirmatively.

March Class III Price Drops $1.07 to $15,81/Cwt. (p. 2):
USDA’s benchmark Class III (cheese) milk price for March dropped significantly, following down-trending Cheddar commodity prices.

Feb 2017 Class III Price Up to $16.88/cwt. (p. 2):
February’s Class III (cheese) milk price rose modestly, to $16.88/cwt. That price will be the peak for a while, as Cheddar prices at the CME have declined sharply.

JBS Caught in Massive Brazilian Beef Scandal (p. 4):
Writer Nate Wilson has produced a fact-filled, highly informative sujmary of the meat scandal that’s hit Brazil. JBS, which is a major U.S. beef and pork processor, was found bribing Brazilian inspectors to “look the other way” when untoward, illegal practices occurred. JBS is a major buyer of dairy cull cows and steers in the U.S. Brazilian beef imports have knocked down U.S. beef and dairy producers’ prices received for slaughter animals … as well as all other ages and stages of cattle.

Dairy Chorus Singing “blame Canada’ for Surplus Woes (p. 4):
Pete Hardin scorns the chorus of dairy leaders and politicians blaming Canada for New York and Wisconsin dairy farmers losing their markets. The real problem is undisciplined milk production in states such as Michigan, New York, and Wisconsin.

Did Vilsack’s Recent Trip to Mexico Violate Ethics in Government Act??? (p. 5):
The Ethics in Government Act clearly specifies restrictions on outgoing, former Cabinet officials (such as USDA secretary). Did Tom Vilsack – recently departed USDA Secretary – violate the Ethics in Government Act by meeting with Mexico’s agriculture minister during Vilsack’s early March trip to Mexico?

Stonyfield Organic Yogut Sell-Off: Antitrust Anomaly! (p. 5):
The U.S. Dep’t of Justice has okayed the proposed acquisition of WhiteWave by Dannon. Publication of the approval in the Federal Register, as well a public comment, will follow. DOJ is forcing Dannon to divest the Stonyfield Yogurt business. Stonyfield has a 65% market share of retail organic yogurt sales, according to reporting last summer in The Milkweed.

NFDM Price-Fixing Lawsuit Update (p. 5):
The Milkweed updates readers on the latest events in the long-running Class Action lawsuit against defendants DairyAmerica and California Dairies, Inc. Plaintiffs’ attorneys are seeking to include additional defendants (DFA, LOL), add California producers as members of the plaintiff’s class, and upgrade the lawsuit to RICO (anti-mafia) status (triple damages).

Nelson-Jameson: Delivering Value & Serving Dairy & Food Industries (p. 6-7):
Nelson-Jameson, based in Marshfield, Wisconsin, is the leading supplier of products to the U.S. cheese industry. The Milkweed visits Nelson-Jameson and profiles this company’s operations and goals.

U.S. Senators Propose 120-day Ban on Brazilian Beef Imports (p. 7):
Sparked by Montana’s Jon Testor (D) – a rancher – several U.S. Senators are proposing legislation to ban Brazilian beef from entering the U.S. for 120 days. This move comes in response to a huge scandal over meat quality in Brazil.

“Munchkin Grass Fed” Infant Formulas to Debut in U.S. (p. 7):
A line of infant formula products, made from grass-fed milk and produced in New Zealand, will soon start being marketed in the U.S. by Munchkin. Looks like the Kiwis are several steps ahead of U.S. marketers … again!

Foods Made with Special Whey Protein help PKU Sufferers (p. 8-9):
Writer Jan Shepel contributes a “soup-top-nuts” story outlining the history of a University of Wisconsin-Madison team of researchers that have isolated a whey protein and created a line of commercial food products for individuals suffering from PKU. Individuals suffering from PKU have sometimes severe health and emotional issues, due to their inability to digest many proteins. Dr. Denise Ney – a nutritional scientist at UW-Madison – headed up the team.

Whey Protein (GMP) May Helpwith Weight Loss, Osteoporosis (p. 8):
Writer Jan Shepel reports on an interesting side-result of whey research at the University of Wisconsin-Madison: Mice fed GMP whey proteins showed weight loss and increased bone mass density. Further research is exploring the possible human applications of these findings.

Growing First-Half Sales & Profits for The a@ Milk Company (p. 9):
Writer Ken Rabas summarizes the first-half results for The a2 Milk Company, based in New Zealand. Sales and profits are up, and the company is making plans to expand sales of a2-derived dairy products in the U.S. in 2018.

Midwestern Farm Credit Merger Gets Members’ Approval (p. 10):
Jan Shepel updates the votes by members approving merger of three Midwestern Farm Credit associations.

Exports Bridge Gap Between Unfettered Milk Production and Mature U.S. Market (p. 10):
Writer Jan Shepel reports on a recent presentation by UW-Madison dairy economist Dr. Mark Stephenson, where Stephenson took a wide-ranging overview of current U.S. dairy situation. Strong farm milk production gains and retracting export opportunities are currently squeezing both dairy commodity and farm milk prices.

Biogas Digesters: Non-Solutions to Dairy’s Methane Misadventures (p. 11):

Writer Paris Reidhead offers a technical perspective on the biochemistry and air quality issues surrounding use of manure digesters on dairy farms. Overall, Reidhead concludes, using digesters to process dairy wastes is an environmental travesty, and a good way to lose money for investors.

Dow-DuPont Merger Moves Forward After Conditional Approval by EU (p. 14):
Writer Jan Shepel covers EU approval of the proposed merger between two agri-chemical giants, Dow and DuPont. Consolidation is the name of the game for several sectors of U.S. and global agriculture.

Time for better ideas for the Farm Bill … (p. 16):
Pete Hardin offers a few improvements, starting with simplifying the federal milk order system into three milk orders and two classes of farm milk use.

Book Review: Hands Off My Food! Focuses on What’s on Our Plates (p. 16):
A newly-released book by Dr. Sina McCullough, Ph.D., takes a close look at what’s in our foods and what government policies have helped bring about our current food system. McCullough urges individuals to take responsibility for their foods, starting by asking questions and changing habits, when deemed wise. Her chapters on rbGH, Genetically Modified Organisms, and GRAS (FDA’s food safety qualifications) are must reading.

Immigrant Labor Worries Sobering Dairy Industry (p. 16):
A major Achilles Heel for the U.S. dairy industry is the large number of undocumented immigrants working on the nation’s farms. Estimates are that 60-70% of immigrant farm workers are in the country illegally. And now the Trump administration is starting to crack down on illegal immigrants.

March 2017 Issue No. 452

Inside this month’s issue …

Our story of the month:
Amended Milk Powder Lawsuit Alleges Fraudulent Criminal Activities by DairyAmerica
Click Here.

Cheddar ^ NFDM Cash Market Prices Turn Sharply Down (p. 1):
Prices for Cheddar cheese and nonfat dry milk have tumbled in the past several weeks. Farm milk supplies are overly-abundant, and buyers are waiting for signs that the price bottoms are near, before they start buying normal quantities. Mexico’s slower demand for dairy commodities is also a factor pressing on U.S. commodities.

DFA/DMS to De-pool “Independent” Producers in Northeast (p. 1):
Dairy Farmers of America and its marketing subsidiary, Dairy Marketing Services, will de-pool independent producers in their milk supply. That means the producers to not have access to class 1 (fluid) markets, nor will they have protections of the federal milk order. DFA is using the de-pooling threat to coerce independent producers into DFA membership.

“got milk?” Licensed to Promote Products … from INDIA??? (P. 2):
Writer Jan Shepel investigates a curious situation – the famous, “got milk?” logo (owned by the California Milk Processors Board) is affixed to a line of consumer snacks that includes food items made in India. Read on …

Land-Spreading Raw Milk: Feed Soil Biota, Use Surplus Beneficially (p. 3):
Paris Reidhead explains the benefits of spreading excess raw milk on soils to boost the health and activity of soil microbiota.

Coast-to-Coast, Organic Dairy Markets Struggling (p. 3):
From Atlantic to Pacific, organic farm milk supplies are overly abundant. Some marketers are installing quotas on how much milk their producers may ship, other marketers face a tough choice of terminating producers.

Scenic Central Has Payments Dispute with Amish Country Farms (p. 3):
Scenic Central Milk Producers – a Wisconsin-based dairy cooperative – is in dispute with Amish Country Farms, a New Jersey-based firm, over funds due from sale of organic milk. Amish Country Farms has terminated buying milk from Wisconsin dairy farms that were part of Scenic Central’s network.

Northeast FMMO Sanctions “Dumping” for March, April & May (p. 3):
Once more unto the manure pit! The Northeast federal milk market administrator has okayed a proposal by Dairy Farmers of America for dumping excess milk in the Northeast for March through May 2017. Milk supplies in that region will overwhelm dairy’s transportation and processing logistics this spring.

Fuel-Grade Ethanol Distillers Keep Poisoning Cows with Excess Sulfur (p. 4-5):
Writer Paris Reidhead details the heartbreak of a Tennessee dairy farm family – the Reeds – with a history of their herd health epidemic due to sulfur toxicity. The source of that excess sulfur in their cows’ diet: Dried Distillers’ Grains (DDGs) – a by-product of the corn-fuel-ethanol industry.

Amended Milk Powder Lawsuit Alleges Fraudulent Criminal Activities by DairyAmerica (p. 6):
One of our “Stories of the Month.”

Exhibit B Declaration by Dairy America’s Former Export Account Manager (p. 7):
We reprint the full Declaration of DairyAmerica’s former export account manager, who details, under oath, numerous illegalities. One of our “Stories of the Month.”

Early March: Bull Calf Prices Zeroing Out in Wisconsin (p. 9):
They’re shooting bull calves in eastern Wisconsin in early March. No willing buyers, as the fed Holstein steer market in the Midwest has collapsed.

To Northeast Dairy Producers Who Are Class Members in the DFA/DMS Antitrust Litigation (p. 10):
A Message from Jonathan and Claudia Haar. Two Class Representatives in the Northeast Dairy Antitrust case against DFA/DMS explain why they’re appealing the federal court’s approval of the Settlement. Jonathan and Claudia Haar are scheduled to appear in Federal Appeals Court in Manhattan on March 29 to state their legal case in opposition to the Settlement.

The Dilemma of Agricultural Production Restraint (p. 11):
Pete Hardin offers a wide-ranging review of issues involving restraint of agricultural production. Recent settlements in lawsuits have hammered agricultural cooperatives’ common efforts to rein in output. But in Canada, farm milk quotas have failed to meet that nation’s growing consumer demand for dairy.

Organic Conference Spotlights Organic Grain, Dairy Supply-Price Woes (p. 12):
The recent MOSES organic conference in La Crosse, Wisconsin gave plenty of opportunity for grain and dairy farmers to learn about supply pressures on their sectors. Imports of organic corn nearly doubled in 2016, compared to 2015. That slug of imported corn busted down domestic prices by about $5/bushel. And organic dairy producers are learning the old conventional truth: CHEAP CORN MAKES CHEAP MILK. Abundant volumes of cheap, low-priced corn are fueling expanding organic farm milk supplies – also busting prices and markets.

DFA to Terminate NFO Marketing Deal in Northeast (p. 12):
DFA has announced it will cease its marketing relationship with the National Farmers Organization in the Northeast, effective December 1, 2017.

February 2017 Issue No. 451

Inside this month’s issue …

Our story of the month:
DFA’s Conspiracey to Control Northeast Producers Dates Back 20 Years
Click Here.

Cheddar Block/Barrel “Split” is a Real Head Scratcher (p. 1):
Recent weeks’ cash Cheddar trading activity has demonstrated tremendous variability in the difference between 40-lb. Cheddar blocks and 500-lb. Cheddar barrels. On January 27, for example, blocks were 24 cents/lb. higher than blocks. But by February 9, barrels were 3 cents higher than blocks. The integrity of CME cash markets is questionable.

Milk Per Cow + Strong Economy = U.S. Dairy Growth (p. 1):
Writer Jan Shepel interviewed University of Wisconsin-Madison dairy economist Mark Stephenson about his perspective on 2017’s dairy events and prices.

U.S. Milk Powder Prices Slipping – Are Mexicans Shopping Elsewhere? (p. 2):
Industry sources tell of diminished interests by Mexican buyers in U.S. dairy proteins. Worries are that the Mexican buyers are put off by statements made about their country by President Trump. Meanwhile, the EU is sitting on a big pile of Skim Milk Powder. We should not take our historic dairy trading partners for granted!

Rabobank’s Tom Bailey Predicts 2017’s “All-Milk Price” at $16.80/cwt. (p. 2):
Rabobank’s top dairy economist wrote a recent article in Hoard’s Dairyman, in which he predicted an “All-Milk” price of $16.80 for 2017. That’s only a modest improvement over 2016’s milk prices.

Trump Pulls United Stats Out of TPP Pact (p. 2):
As promised, President Trump pulled the U.S. out of all negotiations involving the Trans-Pacific Partnership. The TPP is kaput.

Jan. 2017 Class III Price Drops to $16.77, Down $.63/Cwt. (p. 2):
For January, Class III (cheese) milk prices dropped by $.63/cwt. But both Class II (cultured products) and Class IV (butter-powder) milk climbed over $1.00/cwt. in USDA’s federal milk order program.

Sonny Perdue’s Daunting Challenges at USDA (p. 3):
USDA Secretary-designate Sonny Perdue was the final Trump Cabinet nominee. A former Georgia governor and veterinarian, Perdue faces a big task of addressing policies for agriculture and food. Perhaps the biggest headache will be what to do about anticipated corn surpluses and low prices for a handful of major agricultural sectors.

“Much Improved” Price Picture Predicted for Dairy in 2017 (p. 3):
Jan Shepel reports addition comments and insights by UW-Madison dairy economist Mark Stephenson.

DAIRY PRIDE” Bill Gathers Steam in U.S. Senate (p. 4):
A U.S. Senate bill that proposes banning use of the phrase “milk” for plant-baaed beverages is gaining support in the U.S. Senate.

Vilsack Gains Top Post at U.S. Dairy Export Council (p. 4):
Former USDA Secretary Tom Vilsack has taken the top job at the U.S. Dairy Export Council. He’ll be well-paid. But questions arise. Prohibitions against former high-level federal employees stipulate that Vilsack may have no contact with USDA, nor advise foreign agents, for a long period. What will he do to earn his salary???

Glanbia & Three Co-ops Announce Cheese Plant Project in Michigan (p. 4):
Plans for a big new cheese plant in Michigan have been announced. Ireland’s Glanbia will team up with Dairy Farmers of America, Michigan Mik Producers, and Foremost Farms in this project that is estimated to cost as much as $400-$500 million.

Transparency, Sustainability Key Buzzwords to Dairy & Food Products Marketing (p. 5):
Jan Shepel reports on a recent speech about future trends in dairy products by Ryan Sirolli, a dairy innovation leader for Cargill. He discussed a number of trends driving consumer food product innovation.

CDI and DFA Talking … (p. 5):
But what are they talking about???

Tafels Tie Together Pasture, Cows, and Consumers’ Wishes (p. 6-7):
Paris Reidhead visits a young New York State dairy farm family --- Adam, Margaret Tafel and their family. The Tafels have a 200-cow dairy herd that’s organic, and fed only grass. They specialize in cow comfort, and sell their milk to Maple Hill Creamery, earning over $40/cwt. with their Winter grass-fe premium.

Organic Milk Supplies Burdensome – Prices Tumbling (p. 7):
The story is the same in the Northeast, Midwest and California – organic farm milk supplies are a burden on marketers and prices are dropping. Numerous dairies are transitioning to organic status, but marketers already have more milk than they know what to do with, heading into the spring flush.
DFA’s Conspiracy to Control Northeast Producers Dats Back 20 Years (p. 8-9): Pete Hardin digs deep into the history of DFA’s take-over of Northeast dairy farmers – going back 20 years and naming names. At present, DFA is threatening to cut as many as 900 independent Northeast dairy producers out of their markets by April 1, 2017 … if the Northeast federal milk market administrator doesn’t relax pooling rules.

DFA & DMS Threaten to Terminate Northeast Independent Producers (p. 8):
This article summarizes recent months’ dirty tricks by DFA and DMS that are hog-tying the Northeast dairy industry.

Key Language in the January 19, 2017 DMS Letter to Independent producers (p. 9):
We analyze language of the January 19, 2017 letter sent to DMS’ independent Northeast milk producers. Ugly.

Depooling Bad or Good? DFA Economist Hollon Double-Speaks (p. 10):
The Milkweed catches Elvon Hollon, DFA economist, in self-contradictory statements. In California in 2015, Hollon claimed that strict pooling regulations were necessary for the integrity of a federal milk order. But in a January 12, 2017 letter to the Northeast milk market administrator, Hollon asks for completely unrestricted milk pooling rules.

USDA Taking Public Comments on Possible Organic Check-off (p. 10):
Will Fantle of The Cornucopia Institute writes skeptically about the proposal for an organic commodity check-off that’s now subject to comments by USDA.

McDonald’s Phony “Mozzarella Sticks” Lawsuit Settled Out-of-Court (p. 11):
Pete Hardin summarizes the now settled lawsuit and related events involving McDonald’s sale of adulterated “Mozzarella Sticks.” Hardin writes about details that had to be previously kept under wraps.

Judge in California Approves Cancer Warning Label for Monsanto’s Roundup Herbicide (p. 11):
The headline says it all. Monsanto’s angry lawyers will appeal, claiming a cancer warning label on Roundup herbicide will hurt sales.

Group Pushes for Return of COOL in Trump’s First 100 Days (p. 12):
The activist cattlemen's group – R-CALF USA -- is pushing the Trump administration to revive the “Country-of-Origin-Labeling” precepts for labeling meat products. “Free-trade” politics helped kill earlier attempts to institute COOL, so that U.S. consumers could know that their meat comes from U.S. raised and processed livestock.

Foot-and-Mouth Disease Outbreak Hits South Korea (p. 12):
Nate Wilson reports on a serious outbreak of FMD in South Korea. That nation is already suffering a serious outbreak of avian flu.

CME Cheddar Prices Gyrate, Butter & NFDM Down Slightly (p. 13):
Our dairy commodity review for the past month finds curious gyrations in the Cheddar cash markets. Butter is seasonally strong. Nonfat dry milk prices at CME are reversing some of the progress made during recent months.

Meat Giant JBS in Brazilian Financial Scandal Investigation (p. 14):
Brazil meat giant JBS, SA is caught up in a big scandal over financing for its purchases of meat packing businesses in the U.S. and Great Britain. Nice guys, eh??

NY Farmers Solar Panel Fiasco: Boodoggle Update (p. 14):
Paris Reidhead revisits the Sitts family of Franklin, New York. Last summer, Paris wrote about their troubled solar panel system for heating water in their milk house. The firm that installed the system seemed happy to take nearly $30,000 instate subsidies, but has not repaired or replaced the failed system in many months.

NYS Sinking $2.5 Million into DFA Dairy Project (p. 14):
A DFA investment with several large, western New York dairy farms recently gained a $2.5 million grant from New York State. That grant will average about $83,000 per employee.

CME price gyrations … what to believe??? (p. 15):
Pete Hardin dissects the present and historic antics of Cheddar pricing at the Chicago Mercantile Exchange and concludes that something other than honest market opinions reign there from time to time.

Where Does the Imported Grain Audit Trail Track Back To? (p. 16):
John Bobbe of OFARM – an organic agriculture activist – visits the murky world of imported organic grains and blisters USDA for its failure to inspect the organic integrity of these imports – many of which come from Turkey and Eastern Europe.

January 2017 Issue No. 450

Inside this month’s issue …

Our stories of the month:
U.S. Positioned as Only Global Source for Residual Butter & Cream
and …
Swiss Valley Farms' Horrid Finances Plague Prairie Farms Merger
Click Here.

U.S. Positioned as Only Global Source for Residual Butter & Cream (p. 1):
One of our two “Stories of the Month” for January. (Click on stories of the month, above.)

DFA/DMS Extending Dirty Tricks in Northeast (p. 1):
DFA/DMS Extending Dirty Tricks in Northeast (p. 1): Word from the Northeast is that Dairy Farmers of America and Dairy Marketing Services at at it once again, trying to drain Northeast dairy farmers’ milk checks. This time, DFA/DMS is offering a bonus to a Dean Foods in New England as part of a scheme to cut Class I handling allowances elsewhere in the Northeast down to zero. Lose. Lose.

2017 Kicks Off New Wrinkles for Dairy (p. 2):
The New Year brings in some new rules on the farm: no tail-docking, no rbGH/rbST rules from some marketers, restrictions on use of veterinary drugs, and “GMO-free” rules from Dannon.

Surprise! Butter Boosts December Class III & IV Price (p. 2):
Higher dairy commodity prices drove up the December 2016 Class III (cheese) and Class IV (butter-powder) prices to $17.40 and $14.97 per cwt., respectively.

Will Wisconsin’s Milk Flow Respond to Plants’ Posilac Ban? (p. 3):
Starting on January 1, numerous Wisconsin dairy plants laid down the law – no farmer use of Posilac (rbGH/rbST). Will Wisconsin dairy farmers comply? What’s driving this dictate? Export buyers don’t want dairy products processed from milk from herds injected with Posilac.

Wisconsin Gov’t Agencies Roll Out Methane Digesters Master Plan (p. 3):
Three state agencies in Wisconsin have recently announced a hurry-up plan to subsidize construction of methane digesters for mega-dairies in the state. To offset adverse publicity about water pollution, Wisconsin’s Republican leaders are betting on digesters. The way the rules for grant applicants are written, it looks like the table is tilted towards big dairies in polluted Kewaunee County will get most of the marbles in the $20 million pot.

2017 Trends and Predictions for Dairy & Food (p. 4):
Food analyst Ed Zimmerman offers his look ahead at 2017 and the major trends that will play out. Interesting!

No Plans for DFA’s Ex-Quaker-Muller Plant (Batavia, NY);
No Jobs Created, DFA Faces County Tax Levy at 100% (p. 5):
Writer Nate Wilson digs deep into the non-events surrounding DFA’s closed yogurt plant at Batavia, NY. County officials have retracted the tax breaks granted to DFA one year ago, because DFA has made no progress … heck, doesn’t even have a plan … or restoring dairy processing to the former Quaker-Muller yogurt plant.

Veterinary Feed Directive for Livestock & Poultry is Now in Effect (p. 5):
Jan Shepel explains the purpose and general details of the new rules restricting use of certain drugs for livestock and poultry operations. All livestock producers must pay attention to this one!

Congressional Letter Asks FDA for Stricter Enforcement of the Term "Milk" (p. 6):
Jan Shepel reports on a mid-December letter sent to FDA by more than 30 U.S. Senators and Congressional representatives. That letter seeks an FDA ban on the use of the word “milk” in describing beverages made from plant-based materials.

Vilsack to Head USDEC? Dairy Can’t Say “Good Riddance” (p. 6):
Some media are reporting that outgoing USDA Secretary Tom Vilsack will be named President/CEO of he U.S. Dairy Export Council. The Milkweed raises questions about whether, if Vilsack does gain that post, if he will be violating conflict-of-interest statutes. Vilsack has had multi-million dollar grants to USDEC every year he’s been atop USDA.

For the Past 30 Years (1995-2015): U.S. Commercial Disappearance Has Topped Farm Milk Output (p. 7):
An anonymous dairy farmer has researched how for the past twenty years, U.S. commercial demand has been higher than U.S. milk production? Where’s all the “surplus” been???

Major Structural Changes Directly Ahead for U.S. Dairy Cooperatives (p. 8):
This controversial analysis will upset a few folks. Pete Hardin explains how many U.S. dairy cooperatives have churned red ink and burned assets during the past two years of poor operating margins. Some of the troubled dairy co-ops and their problems are laid out. Hardin explains what’s called “Dairy’s San Andreas Fault” – the practice among lenders (such the Farm Credit System) to use as loan collateral the receivables for both dairy farms and their cooperatives. Trouble is: Much of what dairy co-ops call “receivables” are actually the farmers’ yet-unpaid money for milk that’s been taken by the co-op.

Farm Credit System: More Worries than Just Dairy Farmers & Co-ops (p. 8):
We visit some of the history behind the late 1980s bail-out of the Farm Credit System of Omaha by the federal government, following the brutal farm depression of the 1980s. With demised finances for many major agricultural commodities, the Farm Credit overseers have plenty to worry about in terms of assets’ values and payment abilities as we enter 2017.

Swiss Valley Farms’ Horrid Finances Plague Prairie Farms Merger (p. 9):
Shocking. One of our “Stories of the Month.” (Click on stories of the month, above.)

Does Increased High Fructose Corn Syrup Consumption Lead to More Diabetes? (pgs. 10-11):
Writer Paris Reidhead takes a long look at the science and numbers behind High Fructose Corn Syrup consumption and human diabetes. The causal relationship is not absolute, but a thinking person might want to reach for the water bottle instead of a soda.

F.A.R.M. Program Head Outlines Details to Dairy Audience (p. 12):
Jan Shepel covers a speech given a couple months ago by the head of the F.A.R.M. program. If things are so great, why all the controversy???

Butter Prices Strong; NFDM Pushing Over $1/lb.; Cheddar Varies (p. 13):
The signs look pretty good for butter, nonfat dry milk and cheese, in Pete Hardin’s monthly dairy commodity trend analysis.

Management Change at Scenic Central Milk Producers (p. 14):
Terry Hanson is in line to succeed Ron Statz as the manager of Wisconsin-based Scenic Central Milk Producers.

Lots of info in this issue (p. 15):
Pete Hardin discusses the major stories in this issue

Better to boost beverage milk’s quality, taste & image (Rathern than play “name-games” with plant-based “milks”) (p. 15):
Dairy leaders are again attacking soy- and almond-milk products, claiming that plant-based beverages should not be called milk. From Pete Hardin’s perspective, this looks like a symbolic effort and waste of time. There’s a problem: the same logic that dairy leaders use to claim plant-based beverages shouldn’t be called “milk” is the reverse of the logic they’re using to defend U.S. cheese industry’s use of terms such as “Cheddar,” “Muenster,” and “Parmesan” in name-game battles with Europe’s cheese interests.

Storms Bring Massive Moisture, Easing California’s Drought Worries (p. 16):
Huge storms coming off the Pacific Ocean have deluged much of California with rain and snow. The state’s reservoirs are filled well above seasonal norms and the mountain snow packs are far ahead of normal water content. At press time, more storms are on the way …

December 2016 Issue No. 449

Inside this month’s issue …

Our story of the month:
Reversing USDA’s Policies of Importing Beef From Nations Infected with Foot-and-Mouth Disease
Click Here.

Optimism about 2017’s Dairy Commodity & Farm Milk Prices (p. 1):
Several factors are in place to boost 2017’s farm milk prices above what the Class III futures are currently projecting, in our analysis. Those factors include: good domestic dairy demand, declining milk output in Oceania and Europe, China’s somewhat heavier dairy import needs, and some tough crop situations in part of the U.S.

Milk Supplies Shrinking “Down Under” (p. 1):
Australia and New Zealand are seeing big declines in farm milk output at the beginning of their pasture seasons. Butter is becoming impossibly tight in Australia.

DMS’ Extortion in Northeast Continues (p. 1):
Dairy Marketing Services, LLC is demanding that smaller cooperatives in New York that have marketing agreements with DMS allow DMS to deduct unlimited reblends per cwt.. If those smaller co-ops do not agree, DMS threatens to terminate their marketing agreements within 30 days.

Life After rbSTrbGH –One Veterinarian’s Perspective (p. 2):
Several Wisconsin dairy plants are disallowing use of Posilac (rbGH/rbST), effective January 1, 2017. Jan Shepel reports on a recent presentation by a veterinarian about how to manage milk cows that cannot be treated with the drug.

Nov. ’16: Class III Price Jumps $1.94/cwt., to $18.76 (p. 2):
In USDA’s federal milk order program, the Class III (cheese) milk price climbed $1.94/cwt. above the October 2016 level.

Grassland Dairy Products to Control Farm Milk Intake at Wal-Mart’s Plant (p. 3):
When Walmart’s mammoth fluid milk plant at Fort Wayne, Indiana is complete and operating, a Wisconsin-based dairy firm will manage the farm milk supply entering the plant. That move constricts competition for those Class I milk sales, as well as likely putting a big slug of cream in Grassland’s control. Grassland is the biggest butter manufacturer in the country.

Questions About Northeast Federal Order Milk Dumping (p. 3):
From Nov. 22 through January 9, the Northeast federal milk order will be allowing “dumping” of extra milk. We asked some questions and received answers from a USDA spokesperson.

Wisconsin Bull Calves Source of Salmonella Outbreak (p. 4):
Jan Shepel details a recent Salmonella outbreak that’s spread from bull calves to humans, and then from humans to other humans. It’s a virulent strain.

Gov’t Seizes 4 Mil. Lbs. of NFDM from MD/VA Co-op Plant (p. 4):
FDA inspectors found evidence of Salmonella contamination at the Strasburg, Virginia milk powder plant owned by Maryland & Virginia Cooperative Milk Producers. The product has been seized.

NFDM Prices Up 10% 3 days After FDA Recall (p. 4):
In the three days following the FDA seizure of 4 million lbs. of nonfat dry milk from a Virginia plant, spot prices for nonfat dry milk at the Chicago Mercantile Exchange climbed 10%.

The a2 Milk Company Report Spectacular Growth, Earnings (p. 5):
Writer Ken Rabas discusses the sales and earnings picture from the recent annual meeting of The a2 Milk Company. The firm is showing spectacular growth in Australia, ns well as big gains in its Chinese infant formula market.

Wisconsin Farmers Union Survey: 63% of State Dairy Farmers in Red Ink (p. 5):
Over 1,000 Wisconsin dairy farmers responded to a survey from the Wisconsin Farmers Union. A solid majority claimed that they were operating at a loss in 2016.

Dean Foods & Organic Valley Announce Joint Venture (p. 6):
Details are scarce, but the nation’s leading fluid milk processor (Dean Foods) and the nation’s biggest organic dairy producers co-op (Organic Valley) have announced a joint venture for fluid milk processing and distribution. Organic Valley needed a new partner, with the pending alighment of Danone and WhiteWave.

Marlin Grimes: Knock Back Cancers (p. 6):
     We report another story of a dairy industry gentleman who has extended his life, from the threat of cancers, using the “Beam Ray” light-emiting technology.
Analyst Projects Future Fluid Milk Growth, IF Dairy Re-Images Products and Re-Targets Consumers (pages 7-10): The packaged foods analysts at Wells Fargo Securities have shared with The Milkweed a detailed report on future fluid milk sales growth opportunities. The report parallels milk and coffee consumption patters in the U.S. Both beverages peaked right after WWII. Coffee pulled out of its nose-dive in the late 1990s, thanks to innovative products and marketing. Milk is still waiting for that magic to strike. But Wells Fargo Analysts argue that milk has a lot of good things going for it … with the proper pushes.   Pages 8 and 9 are devoted to color reproductions of the reports graphs.

New Producer Lawsuit Against DFA/DMS/Dean Foods in Northeast (p. 10):
In late October, a new lawsuit was filed in the Northeast, alleging violations of the Sherman Anti-trust Act against Dairy Farmers of America and Dairy Marketing Services, LLC. The full text of this complaint will be posted on this publication’s website by December 15.

Tradewinds Perform Intercontinental Fertilizer Application (p. 11):
Paris Reidhead describes the weather patterns that pick up phosphorus-laden dust from northern Africa and re-deposit those materials in the Amazon Basis.

Consolidation Making Organic Dairy Look Like Conventional (p. 12):
Will Fantle of the Cornucopia Institute writes about the trends in organic dairy that are benefiting industrial-size dairies to the detriment of small and medium-sized producers. USDA is failing to enforce laws governing organic agricultural production, the Cornucopia Institute charges.

Butter Prices Yo-Yo, Cheese Prices Fall Amid Good Demand (p. 13):
The past month has seen butter and Cheddar prices rise and back-slide at the Chicago Mercantile Exchange’s cash trading. At least butter looks very solid for the coming year.

First Amendment Issue in R-CALF USA Suit vs. Beef Check-Off (p. 14:)
Writer Jan Shepel explores the lawsuit filed against the USDA-mandated beerf check=off. Plaintiffs claim that the check-off violates First Amendment protections of the U.S. Constitution.

Stopping Beef Imports from FMD-Infected Nations (p. 15):
Pete Hardin details the reasons behind seeking a ban on beef imports from nations infected with Foot-and-Mouth Disease. (See the “Story of the Month.”)

2017: Playing Catch-Up with Milk Prices & Marketing Costs (p. 15):
During the past two years, marketing service charges have eroded for firms selling farm milk. Recapturing an equitable portion of marketing costs is a big challenge for the year(s) ahead.

Book Review: The Crops Look Good Ip. 15):
Pete Hardin reviews a recently published book that details the history of a Wisconsin dairy farm family form the 1920s into the 1960s. The book relies heavily upon letters written by family members. Makes a person appreciate all the hard work that our forebears went through. Reversing USDA’s Policies of Importing Beef from Nations Infected with Foot-and-Mouth Disease (p. 16): Our “Story of the Month.”

Reversing USDA’s Policies of Importing Beef from Nations Infected with Foot-and-Mouth Disease (p. 16):
Our “Story of the Month.”

November 2016 Issue No. 448

Inside this month’s issue …

Our story of the month:
Late October/Early November: CME Cheddar Cheeses Prices Spike
Click Here.

Trump Election Kills Odds fo TPP “Lame Duck” Passage (p. 2):
Newly-elected president Donald Trump has vowed to renegotiate various “Free-Trade” treaties in which the U.S. currently is enmeshed. The anti-“Free-Trade” spirit coming off the November 8 election will likely kill plans held by the Obama administration to try to sneak through a “lame duck” session passage of the Trans Pacific Partnership.

Oct. ’16: FMMO Class II and Class IV Prices Decline (p. 2):
Class III (cheese) milk declined by $1.57/cwt. during October, while Class IV (butter-powder) milk declined by $0.52/cwt.

Questions About the Dannon/White Wave “Marriage” (p. 3):
The nation’s leading yogurt maker is poised to acquire the nation’s leading marketing of organic fluid milk. Danone is seeking approval of federal regulators to acquire White Wave.

CDI Earns $137,849 Penalty: Ignored Order to Be Prepared for Settlement (p. 3):
Defendant California Dairies, Inc. was slapped with a $137,849 penalty for failing to be prepared for a Settlement Conference in the long-running milk powder price mis-reporting case.

USDA: Budget Cuts Eliminate Recent Beef Slaughter Data (p. 3):
Due to budget constraints, USDA stopped collecting weekly livestock slaughter data in mid-summer 2016.

DFA Focusing on Projects in Western New York and Southwest Kansas (p. 4):
Writer Nate Wilson puzzles over DFA’s priorities as the co-op builds a big, new dairy ingredients plant in milk-and water-starved western Kansas, while sitting on the ownership of the failed Muller-Quaker yogurt plant in western New York. The Northeast has been overwhelmed with surplus milk that led to widespread dumping each of the past two years.

No Improvement for (GMO) Yields, Growing Pesticides Use (p. 4):
The New York Times recently printed a detailed study of farm practices in the U.S. and western Europe. Conclusion: there are no yield advantages to genetically-modified crops, and GMOs use more pesticides than conventional crops.

F.A.R.M. Program Adds Insult to Injury for Dairy Producers (p. 5):
An anonymous Northeast dairy farmer blows his stack about animal welfare dictates from the F.A.R.M. program.

F.A.R.M. “Animal Welfare” Dictates Ignore Synthetic Hormones (p. 5):
If animal welfare is such a big deal, why doesn’t the F.A.R.M. program address synthetic hormones such as “Posilac.” The veterinary advisory label for Posilac lists about a dozen and a half potential adverse health issues associated with that milk-spurring drug.

Tough Move: Grassland’s rbST/rbGH-free Decision (p. 5):
Writer Jan Shepel summarizes a presentation by a representative of Grassland Dairy Products at the recent Food and Policy Summit in Madison, Wisconsin. The Grassland Dairy Products representative detailed the reasons why his firm has issued a moratorium on milk and cream from herds injected with Posilac. Consumers don’t want it!

Failed U.S. Farm Milk-Pricing System Benefits Foreign Firms that Control Many U.S. Dairy Processing Sectors (p. 6):
Pete Hardin lays out the foreign ownership interests that control various sectors of U.S. dairy processing. If Chinese investors make good on rumored attempts to buy Dean Foods (the nation’s largest fluid milk processor), then that will be just one more “biggie” whose profits move offshore. Hardin explains that the nation’s failed farm milk pricing system benefits these processors, not farmers and not consumers.

Q&A: R-CALF USA CEO on Brazilian Beef Imports & Impact on U.S. Cattle Prices (p. 7):
Bill Bullard, CEO of the trouble-making cattlemen’s organization – R-CALF USA – provides another fact-filled interview on beef industry trends. Bullard details how recent imports of beef from Brazil have further soured the pricing structure for cattle and dairy producers in the U.S.

Why is Organic Valley Selling Imported Cheese??? (p. 8):
The nation’s largest organic dairy farmers’ co-op, Organic Valley, is selling imported Cheddar from England. With plenty of organic milk around, one might hope that Organic Valley would not need to import organic cheeses.

Spiking Cheese Prices: Big News on Diary Commodity Scene (p. 9):
In reviewing the dairy commodity scene, the big jump in Cheddar cheese prices at CME is the primary feature. As milk supplies in Europe and Oceania struggle, the U.S. is seeing strong domestic dairy product demand boost commodity prices.

Choose Cheese Based on Taste … Not Absence of Milk Fat (p. 10):
Writer Paris Reidhead digs into recent scientific journal report that the fat content in cheese has no impact on bad cholesterol levels in humans. This finding is one more shattering of myths spread against dairy and animal fats over the past five to six decades.

Dairy Price Recovery, if U.S. economy holds … (p. 11):
Supply and demand signs look good for 2017, Pete Hardin concludes … if the U.S. economy holds up its strength. Dairy product demand is solid.

Where’s our beef? Butter from where? (p. 11):
Since dairy commodity prices generally fell in late 2014, two factors have propped up dairy farmers’ cash flows and asset values: beef prices and butter prices. But both those items have taken a beating, price-wise, over the past year or so. In both instances, high levels of imports have been responsible for knocking down U.S. prices.

MMPA Swipes Extra $1.90/cwt. from Sept. milk checks’ PPDs (p. 11):
Michigan Milk Producers’ Co-op continues its thievery against members’ milk checks. For September, the co-op deducted an extra $1.90/cwt. through the “minus Producer Price Differential.” MMPA president Ken Nobis spouts that dairy farmers should learn to make milk at “world market prices” …. But MMPA’s deducts may be putting that co-op’s members’ prices below world market levels!

Explaining Last Month’s P. 1 Article about U.S. Milk Short of Demand (p. 12):
We offer further clarification for last month’s article about a presentation at World Diary Expo by Rabobank’s Thomas Bailey. Bailey stated that U.S. milk production had not kept up with demand for the past 18 mohths – a surprise from this expert dairy analyst, since U.S. dairy commodity prices have generally been low since early 2015. We reproduce Bailey’s power-point panel from his part of his WDE presentation.

Earth Starts Moving at Walmart’s Fort Wayne Site (p. 12):
We’ve got a picture! The earthmovers have just started moving ground. Walmart will never make the original late 2017 deadline to get that plant on-line.

October 2016 Issue No. 447

Inside this month’s issue …

Our two stories of the month:
U.S. Milk Flow Trailed Demand for Last 18 Months (and) Wisconsin Gov’t Bankrolling Water Polluters’ Public Relations Efforts:
Click Here.

Grain Harvest Unsettled in Upper Midwest (p. 1):
Since mid-August, wet conditions have prevailed in the Upper Midwest. But starting around September 11-12, the deluges really started. Quality concerns about the region’s 2016 grain crop abound., due to moisture-induced molds. Timely harvesting of soybeans and corn is threatened by wet field conditions. The U.S. grain trade is stalled, waiting for better signals about the volume and quality of the Upper Midwest’s grain crop.

U.S. Milk Flow Trailed Demand for Last 18 Months (p. 1):
One of our “Stories of the Month.” See link above.

USDA Economist: Future U.S. Per Capita Dairy Consumption “Flat” (p. 2):
What a dipstick. At a World Dairy Expo seminar on October 6, Sharon Sydow (a top-tier USDA economist) stated that her agency views future domestic dairy consumption growth as “flat.”

European Union Dairy Producers Fully Contract Q4 Milk Production (p. 2):
For 2016’s fourth quarter, the European Union is paying contracting dairy producers to make less milk. Farmers will be paid on the basis of how much milk output they reduce (compared to 2015’s Q4).

Sept. ’16 Manufacturing Class Milk Prices All Decline (p. 2):
USDA reported that Class III milk for September was $16.39 (down $.52/cwt.) and Class IV milk was at $14.25/cwt. (down $.40) cwt.

10/1/16: Dean Foods Boosts Consumers’ Fluid Milk Prices (p. 3):
Talk about larceny! On October 1, Dean Foods – the nation’s biggest fluid milk processor – dramatically boosted prices for its branded beverage milk products. Gallon prices went up 16 cents. Half-gallons and quarts went up 13 cents. What’s the concern? In October, federal milk order prices went up about one-third of a cent per gallon!

Walmart Plant Site at Fort Wayne, IN Way Behind Schedule (p. 3):
Forget about Walmart’s Fort Wayne, Indiana milk plant coming on line in 2017’s fourth quarter. Basically, construction hasn’t started. Curiosity festers in the dairy about when that plant will be at full production.

Monsanto + Bayer: Latest Mega-Merger to Hit Ag Sector (p. 4):
Writer Jan Shepel fills in details of the Monsanto/Bayer corporate marriage, and covers the wider span of agribusiness mergers taking place in 2016.

Honest Mistake??? — DFA Short-Weights Some August Milk Checks in NY (p. 4):
Several neighbors in New York found that their settlement checks for August milk from Dairy Farmers of America were thousands of pounds of milk short, compared to their bulk tank weight tickets. Honest mistake? Or more of the same from the Milk Mafia?

Huge, Negative PPDs Anger Michigan Milk Co-op Members (p. 5):
To cover operating losses and inefficiencies, Michigan Milk Producers has been swiping huge amounts of milk income through so-called, “Producer Price Differentials.” The Milkweed calculates MMPA’s PPD deductions (relative to the prevailing Order 33 PPDs) for June-August 2016 averaged $2.30/cwt. Ouch.

WI Gov’t Bankrolling Water Polluters’ Public Relations Efforts (p. 6-7):
This story about dirty water politics in northeastern Wisconsin. This story is a “Story of the Month.” See link above.

How to Fix the Dairy Margin Protection Program (p. 7):
Jan Shepel visits the Vosbergs, who milk cows near South Wayne, Wisconsin. They’ve found the Normande breed works very well for their mostly grazing-based dairy operation.

Roelli Cheese Earns Top American Cheese Society Award (p. 9):
Master Cheese Maker Chris Roelli took home the blue ribbon from this past summer’s American Cheese Society convention. Roelli’s prize-winning cheese is a unique product, called “Little Mountain.” Writer Ken Rabas wrote this story.

“Big $ugar” Shamelessly Shifted Chronic Heart Disease Blame to Animal Fats (p. 10-11):
Writer Paris Reidhead digs deep into recent medical journal article that details how the nation’s sugar lobby “bought off” three Harvard researchers in the 1960s to issue medical studies shifting blame for heart disease away from sugar.

Interview with Leonard Vandenburg (Pacific Gold Milk Producers):
Writer Ed Zimmerman poses questions to Leonard Vandenburg, head of Pacific Gold Milk Producers. Pacific Gold is marketing “differentiated” farm milk at premiums – organic, GMO-free, grass-fed and A2. Very interesting!

Agri-Mark’s Dilemma: Paying Costs of Animal Welfare Lawsuit Settlement (p. 12):
Pete Hardin picks on Agri-Mark, the major New England dairy cooperative, for its potential costs as a defendant in the recently-settled animal welfare lawsuit. Agri-Mark, National Milk Producers, Dairy Farmers of America, Dairylea Co-op and Land O’Lakes were defendants that settled for $52 million.

U.S. Cheddar and Butter Prices Decline as World Markets Soar (p. 13):
While U.S. cash prices for Cheddar and butter nose-dive, world market prices are soaring. Global milk production is struggling and China is back buying significantly. But U.S. commodity prices are down.

Dairy Livestock: Milk & Cull Cows Take a Beating (p. 14):
A lot of dairy cows are going to market and buyers’ interest is light. Many dairy cows sold at auction these days are going for about $100 over “kill price” … and “kill prices” are going down hard.

Castelli America Ushsers Out Empire Specialty Cheese (p. 14):
Writer Nate Wilson closes out a long-running series about the misbegoton Empire Specialty Cheese, LLC. An Italian firm – Castelli – has acquired the Empire plant at BLockville, in New York State’s westernmost tip.

Kraft’s Lowville, NY Expansion Behind Schedule (p. 14):
The massive expansion of its Lowville, NY cheese plant is running about two months behind schedule in early October. That expansion will add three million additional pounds of milk processing capacity … per day!

No way to sustain this vital industry … (p. 15):
Pete Hardin details what’s wrong with this corrupt, crooked industry and what needs to be done to fix it.

Farmers Spanked for Posilac Use After Signing Affidavits with Cheese Plant (p. 16):
Two Wisconsin dairy farmers were found violating their signed agreements not to inject their cows with Posilac – the controversial cow growth hormone. Wisconsin’s agriculture department investigated. The farmers lost their milk market, but were able to continue shipping milk elsewhere.

September 2016 Issue No. 446

Inside this month’s issue …

Our story of the month:

NMPF & 4 Dairy Co-ops Agree to $52 Million Settlement With Animal Welfare Activists in CWT “Cow Killing” Case (p. 1):
Click Here.

CME Cheddar & Butter Prices Decline Sharply (p. 1):
Starting in late August and continuing into early September, prices for Grade AA butter and Cheddar cash-traded at the Chicago Mercantile Exchange declined sharply. These market signals seem to contradict current strong demand for U.S. butter and cheese.

USDA to Buy $20 Mil. Of “Surplus” Cheese (p. 2):
It’s an election year. USDA Secretary Tom Vilsack responded to requests from the National Milk Producers Federation by agreeing to an emergency purchase of a small amount ($20 million – about 10 million lbs. of cheese) for distribution through hunger and nutrition programs.

Bayer AG Moving to Buy Monsanto (p. 2):
Germany’s pharmaceutical giant, Bayer AG, is renewing its efforts to purchase Monsanto. This proposed take-over continues a number of recent consolidations in the agricultural chemical/seed businesses.

Aug. Class III price $16.91; Class IV Price Drops to $14.65 (p. 2):
The headline tells the story.

Senators: Investigate New Canadian Dairy Ingredients Trade (p. 3):
Two U.S. Senators – Tammy Baldwin (D-WI) and Charles Schumer (D-NY) have asked USDA and the U.S. Trade Representative for an investigation into Ontario Province (Canada)’s special pricing for milk processed into dairy proteins. Canada has dealt with a big influx of Milk Protein Concentrates that have widely displaced Canadian milk and ingredients.

Organic Dairy Farmers’ Market Opportunities Tighten, Despite Fluid Sales Growth (p. 3):
Markets for organic producers are tightening – despite the fact that organic fluid milk sales are growing so far in 2006 at the rate of 5%! Prices paid to organic dairy farmers are slipping backwards. Other organic producers are losing their markets, or unable to find buyers for their milk.

Full-Fat Dairy Products gain Sales, DMI Pushes Low/No-Fat Losers (p. 5):
Sales of whole milk and full fat cheese are growing nicely. But sales of low-fat cheeses and low-fat beverage milk products are slipping badly. So what products does the nation’s dairy promotion bozos push? Low-fat and no-fat dairy products?

Modern Sire Selection Process is Worlds Away from Grand-dad’s Methods (p. 6):
Writer/dairy farmer Jan Shepel details how data derived from bovine genome profiles has dramatically shifted the way that young sires are selected and analyzed

UW’s Center for Dairy Research Over Budget & Under a Cloud (p. 7):
Jan Shepel takes a look at the much-delayed project to build a new Center for Dairy Researach at the University of Wisconsin-Madison campus. The project was supposed to break ground in summer 2015. But delays have caused budget over-runs and dairy industry funders are squabbling with university and state officials over revised designs and costs.

New Life for an Old Cheese Plant (p. 8-10):
A small dairy co-op has purchased a closed cheese plant in Hancock, Maryland and is investing $25 million in a revival of that facility. Securing markets for members’ milk – and gaining potential profits from ownership of processing/marketing operations – are strong incentives behind this project by the Lanco-Pennland cooperative. For outsiders, it’s hard to imagine how difficult the milk marketing climate in the Northeast has been in the past two years for raw milk sellers.

Depletion of the Ogallala Aquifer is a Looming National Crisis (p. 10):
Writer Nate Wilson reviews recent articles in national magazines about the declining water tables for the Ogallala Aquifer – which stretches from North Texas up to the Dakotas. This vast, underground reservoir is depleting without recharge. Nate also puzzles why Dairy Farmers of America would build a new, $275 million cheese plant in southwestern Kansas – where agriculture is already water-stressed.

“NO rbGH/rbST” Directives Gaining Teeth, But No Test (p. 11):
Pete Hardin details the continuing rbGH/rbST controversy. In Wisconsin, two dairy farmers were caught cheating by using the cow growth hormone (“Posilac”) after signing affidavits for their cheese plant that they would not inject their cows with that controversial, but legal, drug. Those farmers were dropped from their milk markets.

The root of the whole Posilac controversy is that FDA failed its own rules by not requiring rbGH developers to create a residues assay, prior to commercialization.

Thinking about Producing GMO-Free Milk? (p. 12):
Writer Paris Reidhead reviews the farm practices behind producing “GMO-Free” milk. The market for GMO-Free milk is growing, as more consumers want GMO-free dairy products.

Empire Special Cheese Waving the White Flag (p. 14):
Nate Wilson reports how the much-troubled Empire Specialty Cheese plant in the western tip of New York State is admitting financial troubles. A local daily newspaper reported that the firm is threatening Chapter 7 bankruptcy, unless a new owner can be found.

Dirty Water” politics heating up in Wisconsin (p. 15):
Pete Hardin covers the big problem in Wisconsin: contamination of surface and ground water by some mega-dairies. Hardin argues that clean water is a finite resource and must be protected. The state government is failing its mandate to protect the state waters.

New York State dairy marketing situation continues unruly (p. 15):
The chaos in New York State’s milk industry just gets worse and worse. More producers have received “drop notices” from Elmhurst Dairies. DFA and DMS are cutting premiums paid to producers.

Organic Grain Imports Theaten Domestic Markets and Standards (p. 16):
We welcome writer and organic grain marketer John Bobbe’s contribution about the threats posed to U.S. organic grain producers by large imports of “organic” grain from the Black Sea region (Turkey, Ukraine). Bobbe offers devastating facts about organic grain imports that are ruining prices and demand for domestically-produced organic grain.

OFARM and Food & Water Watch Request USDA/OIG Audit of “Organic” Grain Imports (p. 16):
Two groups – OFARM and Food & Water Watch – have formally requested that USDA’s Office of the Inspector General investigate whether organic grain imports from the Black Sea regino are actually in compliance with U.S. standards. The integrity of the entire organic foods’ industry is at stake. Lower costs for imported ‘organic” grain are causing U.S.-produced supplies of organic grains to pile up in storage, as domestic prices decline and the 2016 crops are ready for harvest.

AUGUST 2016 Issue No. 445

Inside this month’s issue …

Our story of the month:

Weather Events/Posilac Bans: 2017 Looking Like a Better Year (p. 1):
Click Here.

USDA Finalizing Brazilian Beef Imports (p. 1):
Writer Jan Shepel details the controversy behind USDA’s recent announcement that the agency is now ready to import beef from Brazil. Virtually all U.S. livestock groups are outraged at the illogic behind Vilsack’s approval for importing beef from Foot-and-Mouth Disease infected Brazil.

Northeast Dumps 41 Mil. Lbs., Mid-East “Only” Dumps 6.6 Mil Lbs. (p. 2):
Writer Nate Wilson reports and analyses the hard-to-believe USDA data on dumped milk in the Northeast and Mid-East federal milk orders. The June total for the Northeast – 41 million lbs. – is shocking.

USDA’s May/June ’16 DMPP Margin Calculation Drops Below $6.00/cwt. (p. 2):
For the May-June 2016 period, USDA will actually pay out about $11 million to dairy farmers enrolled in the “safety net” program.

July Class III Price at $15.24/Cwt., Class IV at $14.84 (p. 2):
Class III (cheese) milk jumped $2.02/cwt. for July – a start for improving farm milk prices.

Brazil Beef Imports: What’s the BIG DEAL??? (p. 3):
We review the deep background dangers harbored by the U.S. livestock industries, regarding the potential outbreak of a Foot-and-Mouth Disease. If a FMD outbreak were to occur in the U.S., losses would total in the hundreds of billions of dollars.

NYC’s Elmhurst Dairy to Halt Fluid Milk Processing (p. 4):
The last fluid milk processing plant in New York City is closing on October 31, ending a long and contentious era. Elmhurst’s closing raises serious questions about where a sub-dealer, Bartlett, will source half-pints of milk to meet its school milk contracts in the metropolitan area.

Senators Introduce Ag Check-off Reform Act (p. 4):
Jan Shepel writes about the recently-introduced legislation that proposes to reform agricultural commodity check-off programs. Odds of passage for this measure in he current legislative session are almost zero. But the importance of such corrective legislation is vital. Maybe next year …

More Dairy Marketers in Wisconsin Declaring “rbGH-Free” (p. 5):
A growing array of major Wisconsin dairy processors are issuing “No Posilac” edicts. Effective January 1, 2017, Grassland Dairy, Grande Cheese, Mullins Cheese and Land O’Lakes are setting up those standards for dairy producers. Since most of the mega-dairies in Wisconsin are using Posilac (the biotech cow growth hormone that boosts milk production), it’s anticipated that Wisconsin milk gains could slow next year.

F.A.R.M. Program Enforcement Getting Ugly (p. 6):
F.A.R.M. stands for “Farmers Assuring Responsible Management” – a program funded by Dairy Management, Inc. (the milk promotion bozos). F.A.R.M. is really about control of dairy farmers. We’re hearing of dairy producers threatened with loss of their markets, because they won’t sign up for the program. Others are losing premiums from milk quality, due to low F.A.R.M. inspection scores. What a mess.

Wal-Mart’s Fort Wayne Fluid Milk Plant: 14-15 Months and & Ticking (p. 7):
Pete Hardin analyzes the industry impact of Wal-Mart’s planned, big fluid milk plant that will be located near Fort Wayne, Indiana. For a radius of about 300 miles, the industry will be disrupted in many ways – from farm milk supplies to competition among fluid processors for remaining business.

Swiss Valley Farms Won’t Revolve Old Equity (p. 7):
This July, Swiss Valley Farms’ board of directors had the grace to send out a letter to present and former members, explaining that the co-op won’t revolve any old equities. Dairy farmers’ equities in cooperatives are increasingly elusive.

NYS Solar Panel Water Heaters: Boon or Boondoggle? (p. 8):
Writer Paris Reidhead interviews NY dairy producer Garret Sitts about the solar panel installation on his milking barn roof. Those solar panels – costs of which ran somewhat under $30,000 was almost 100% subsidized by government grants – haven’t worked very well. The company that installed the solar panels was amazingly unresponsive to Garret’s complaints … until farm journalist Paris Reidhead started making phone calls.

GMO Labeling Bill Becomes Federal Law (p. 9):
Jan Shepel explores the recently created federal law that dictates labeling of foods containing genetically-modified organisms (GMOs). It’s estimated that two years will be required to create the administrative rules for the law. The devil will be in the details.

Survey: 59% of Shoppers Won’t Use Scanners to Look for GMO Food Ingredients (p. 9):
Jan Shepel reviews a recent study that shows a majority of consumes will not use scanners to find out whether foods contain genetically-modified organisms. That’s important, because the recently-passed GMO labeling law specifies QR scanner codes on food packages, rather than clear-cut labels, for GMO content.

Sales of Whole Milks & Organic Milk Climbing Nicely in 2016 (p. 10):
Consumers are buying more full-fat milk products so far this year. Sales of regular Whole Milk are up 5.9% for January-May 2016. And organic Whole Milk sales are up an amazing 16.4%!

Northeast Dairy Farmers BEWARE: Solar Panel Projects’ Contracts Imperil Mineral Rights!!! (p. 11):
When one dairy farmer studied the contract he’d been sent to set up a solar panel installation on nearly 200 of his acres, he noticed that the contract also included turning over mineral rights, etc. That’s a concern, given how so much natural gas lies under upstate New York farmland. When the farmer proposed that the company remove the contract language about mineral rights, the firm walked away. Are some solar panel projects merely a scam to gain unwitting farmers’ mineral and gas-drilling rights???

USDA Rates Corn Belt, Plains & Upper Midwest Crops in Great Shape (p. 11):
We detail information from the August 8, 2016 USDA Crop Progress Report. Corn and soybean crops are generally very good, particularly in the Upper Midwest.

Danone + WhiteWave Would Dominate Organic Yogurt Market (p. 12):
Will Fantle, co-director of The Cornucopia Institute, details wide-ranging concerns about the proposed Danone-WhiteWave corporate marriage. This firm would control about 72% of the domestic organic yogurt market.

CME Cheddar Price Increases Cause Some Confusion (p. 13):
With cash prices for 500-lb. Cheddar barrels at $1.88/lb. at the Chicago Mercantile Exchange, Pete Hardin tries to explain what market-based reasons there may be for this rapid price run-up. In recent months, the U.S. has been producing less Cheddar and demand is excellent.

Dairy Livestock Market Situation Hard to Predict (p. 14):
Our survey of dairy auctioneers finds prices somewhat stronger this month. But long-running, low-ball farm milk prices and dry conditions in some dairy regions of the country make it a hard market to project right now. Where crops are scarce, dairy livestock prices could suffer.

DFA to Reduce Northeast Producers’ Premiums (p. 14):
In early August, DFA members in the Northeast received a mailing from their co-op that informed of a drastic reduction in milk checks premiums, effective August 1. DFA cooks up more excuses for draining farmers’ milk checks of income. Unfortunately, DFA is also enforcing these premium reductions upon other dairy co-ops that belong to Dairy Marketing Services.

Analyst Applauds DFA’s Ability to Deduct from Milk Checks! (p. 14):
A financial analysis of Dairy Farmers of America by Moody’s Investors Service concludes that DFA is a good risk for lenders, because DFA’s by-laws allow the co-op’s board to deduct money from members’ milk checks.

More Processors Banning Posilac, Best Thing for U.S. Dairy Farmers! (p. 15):
Pete Hardin explains that restrictions against use of Posilac (rbGH) are good for dairy farmers. Why produce more milk using technology that the majority of domestic and export customers don’t trust?

Followup to July Story on Loren & Debbie Zehr (p. 15):
More details about last month’s feature story about a New York diary farm couple that had excessive marketing deductions swiped form their milk checks.

Holstein Bull Calf Prices Reflect Shattered Idol (p. 16):
About 15 months ago, some crazy souls were paying $500-$700 a head for nice Holstein bull calves. At that time, The Milkweed warned that those bull calves were over-worshipped idols. Now, in Wisconsin in early August, Holstein bull calves are selling in the $85-$160 per head range.

JULY 2016 Issue No. 444

Inside this month’s issue …

Our story of the month:

DFA/DMS Dictated Local Co-op to Deduct NY Farm Family $167,490 in “New Member” Marketing Fees Over Past Year (p. 6-7):
Click Here.

Improving Dairy Commodity Prices (p. 1):
The second half of 2016 is looking for higher dairy commodity prices and farm milk prices. Consumer demand is strong, weather worries abound re: crops for dairies in several regions, and slowing global dairy production are all in play.

Cornell: LED Lighting Degrades Milk Quality in Dairy Case (p. 1):
Nate Wilson reports on a recent research fiding fron Cornell University that correlates rapid declines in milk quality and taste resulting from exposure from LED lighting.

EU’s Farm Milk Gains Slowing Down (p. 2):
Big, monthly gains in early ’16 gains for EU milk output slowed to April’s modest, 1.2% increase. EU dairy farmers are feeling the financial pinch, also.

May ’16 Dumpage Huge in Northeast & Mid-East (p. 2):
Nate Wilson provides the May 2016 dumped milk numbers for the Northeast (+35 million lbs.) and Mid-East (+18 million lbs.) markets.

Northeast Antitrust Case Lawyers’ Moo-la Chopped (p. 2):
Judge Christina Reiss awarded plaintiffs’ lawyers only $7 million of a requested $16.6 million in the Northeast dairy antitrust settlement.

Bounce-Back Starts: June Class III +$.46/cwt., Class IV +$.68/cwt. (p. 2):
The headline tells it all.

China Restricting Infant Formula Brands Competition by 2017 (p. 3):
By 2017, China will sanction only aobut a dozen firms selling infant formula products. The official reason for that move is to improve quality of such products. But the real reason is that China wants to capture a bigger portion of profits from infant formula sales for domestic firms.

Demand Tightens Global Protein Complex, Boosting Prices (p. 3):
Global prices for crude proteins are rising – challenges to South America’s soybean crop and a light harvest of Peruvian anchovies are two factors. Concerns about a dry, how summer in North America are another driving force. China is a big importer of soybeans right now.

Some Dairy Producers Hiring Hispanics Face Ballot Dilemma (p. 3):
Rhetoric by Donald Trump is worrisome to big dairy operators who hire Hispanic workers. About 70% of all Hispanic workers in agriculture are illegals, it’s estimated.

Decades of False Charges vs. Animal Fats (Like Butter) Finally Disproved (p. 4-5):
Writer Paris Reidhead digs deep into a recent medical journal article that has dumped the anti-animal fat dietary rhetoric on its head. Modern analysis of medical diet studies from the 1960s and 1970s now show that a diet low in saturated (animal) fats actually is bad for overall health.

Cornell Extension Dean Told Agents to Pull Their Punches … (p. 4):
Paris Reidhead recalls an event in the 1970s when Cornell U. Extension Dean David Call told dairy agents (including Paris) to not respond to attacks on butter and other animal fats in the human diet.

Some Definitions Related to Animal Fats vs. Vegetable Oils (p. 5):
Paris Reidhead has crafted a set of definitions to give clarity for the long-running debate over various dietary fats.

DFA/DMS Dictated Local Co-op to Deduct NY Farm Family $167,490 in “New Member” Marketing Fees Over Past Year (p. 6-7):
Our story of the month. See link at the top of the page.

Stray Voltage Remedy Restores Grinde’s Herd’s Health & Milk Production (p. 8):
Writer Jan Shepel describes the victory by the Grinde dairy farm family against stray voltage. Every aspect of their diary herd’s performance – breeding, milk production, someat cell count – improved once the solution was found. Incidenetally, family health measures, including blood pressure and migraines, also eased. Great article!

Strong Barrel Cheddar Demand Boosts Block Prices, Buter Prices Also Up (p. 9):
Pete Hardin’s review of the dairy commodity scene shows a lot of positive signs.

GMO Foods’ Labeling Bill Headed for Senate Showdown (p. 10):
Jan Shepel reports the background issues as the U.S. Senate is poised for a vote on a bill to federally codify labeling of foods containing genetically-modified organisms.

The Northeast “Dumped Milk” rip-off (p. 11):
If you didn’t know what Pete Hardin thinks about milk “dumping” in the Northeast, you do now!

Dairy Livestock Jerseys, Short-breds & Breeding Age Heifers holding value (p. 11):
Except for the above-cited animals, dairy livestock values are softer. Cash-flow is tight and in some regions, farmers are worried about crop volumes due to dry weather.

Northeast & Michigan Facing Very Dry Conditions in Early Summer (p. 12):
Dry conditions are becoming very serious for producers in the Northeast and Michigan. Regrowth of forages, after the first cutting, is minimal in many areas. Keep an eye on this one. California and certain other western states continue in the grips of drought.

June 2016 Issue No. 443

Inside this month’s issue …

Dairy’s Most Overpaid ‘Supernumerary’ – DMI CEO Tom Gallagher (p. 5):
Click Here.

Historic Hardin Farm Listed “For Sale” (p 15):
Click Here.

Surplus Milk Chaos in Northeast, Mid-East and Upper Midwest (p. 1):
Big increases in farm milk production have milk hauling and manufacturing plants overwhelmed in these regions. Huge amounts of milk have been dumped in the Northeast and Mid-East.

What’s Behind Early June 2016 Cheddar Price Boosts at CME??? (P. 1):
Surprisingly to most, cash Cheddar prices at the Chicago Mercantile Exchange have climbed steadily, starting at the very end of May. What’s going on? Strong demand for current production of barrel Cheddar is driving demand. That’s despite the fact that ample inventories of Cheddar barrels – aged six to 12 months – in in storage. Problem is: Processors are limited to how much aged barrel Cheddar they may add when making processed cheese products.

Cheeseburger: Symbol of Dairy’s Farm-to-Consumer Price Inequities (p. 1):
Over the past four years, dairy produces have seen an up-and-down trends for both their milk and dairy culls/steers. The Milkweed takes a close look at farm to consumer prices for ground beef and Cheddar cheese during 2013-2015. Conclusion: Somebody’s making a L-O-T of money between the farmer and consumer.

CDFA Revises 4b (Cheese Milk) Pricing (p. 2):
California’s state milk pricing program has permanently revised its formula that values whey powder in the 4b (cheese milk) calculations. Too late …

May Class III Price Drops to $12.76/Class IV at $13.09(p. 2):
It’s all in the headline.

Northeast & Mideast April Dumpage: Huge Increases over 2015’s Totals (p. 3):
Dairy co-ops in the Northeast milk order dumped over 22 million lbs. of milk in April … after skimming off most of the cream. Markets in Michigan also dumped record amounts of farm milk.

Grassland Dairy Products Warns Suppliers: No rbGH/rbST Milk or Milk Products as of 1/1/17 (p. 3):
Wisconsin’s biggest dairy processor – Grassland Dairy Products –has advised all suppliers that no milk or dairy materials from herds treated with rbGH will be accepted, as of January 1, 2018. Besides purchasing large volumes of farm milk, Grassland is also a big buyer of cream and whey products.

Dairy & Food Plants: The Future is in T-E-S-T-I-N-G (p. 4):
At a recent day-long seminar hosted by Marshfield Food Safety Labs, the consistent message was that dairy and food processing plants must be ahead of the game when it comes to food safety testing. The imminent arrival of the federal Food Safety Modernization Act will entail watch-dogging of firm’s sanitary and testing records maintenance.

“Jack-in-the-Box” Hamburger Deaths & Illnesses: U.S. Originally Rejected Contaminated Australian Beef (p. 4):
An ugly history lesson: “Jack-in-the-Box’s” deadly E. coli outbreak in the early 1990s came from beef originally imported from Australia and rejected by U.S. Customs inspectors.

3 Farm Credit Assns. Talk Merger—Portfolio Value Near $17 Billion (p. 4):
Three Upper Midwest Farm Credit associations are huddling, talking merger. Those three are: Badgerland Financial (serving 33 southern Wisconsin counties), AgStar Financial Services (serving Minnesota and northwest Wisconsin), and 1st Farm Credit (serving northern Illinois). Writer Jan Shepel summarized available information on this news item.

Check-Off Groups Want Immunity from Federal Open Records Laws (p. 4):
Fourteen agricultural commodity promotion groups overseen by USDA succeeded in convincing the House Appropriations Committee, in its budget bill, to remove commodity promotion groups from rules governing the federal Freedom of Information Act. What do they have to hide???

Dairy’s Most Overpaid “Supernumerary” – DMI CEO Tom Gallagaher (p. 5):
Our story of the month. See link at the top of the page.

“Adopt-A-Dairy-Cow” Program – More Milk for the Hungry (p. 6):
Writer/dairy woman Jan Shepel details a start-up program involving a Wisconsin-based food program, through Second Harvest Food Bank, that has people able to “adopt” a dairy cow and pledge funds to provide milk at costs to the needy.

Mooney & Brown Before House Ag Subcommittee: Considerable Heat But Little Light … (p. 7):
Writer Nate Wilson describes recent testimony on dairy before the House Agriculture Subcommittee. DFA’s board chairman Randy Mooney pontificated about the Dairy Margin Protection Program and blamed Congress for its short-comings. Univ. of Missouri ag economist Scott Brown explained how turning around dairy’s surplus milk problems would be tough, because many larger operatations simply don’t know how to scale back output.

Russia’s Putin Wages a Non-Military War Against GMOs (p 7):
Writer Paris Reidhead details recent farm/food policies in Russia, where Vladimir Putin is charging forward against genetically-modified foods. Interesting …

Three Co-ops Studying Big Michigan Cheese Plant (p. 7):
Three dairy cooperatives are studying plans for a jointly-owned cheese plant in eastern Michigan. Those three are: Foremost Farms, Michigan Milk Producers, and Dairy Farmers of America. Cooperation among those three is a long shot.

Snowville Creamery Marketing Milk and Yogurt from “100% A2/A2 Tested” Cows (p. 8):
The nation’s most progressive dairy processing firm – Snowville Creamery (Pomeroy, OH) is now selling fluid milk products that are “stacked,” The attributes of Snowville’s milk include: no-GMOs in cows’ feeds, all “A2/A2 tested cows,” no artificial growth hormones (rbGH/rbST), grass-fed cows, and non-homogenized. That’s retro!

Analyzing the Northeast Dairy Antitrust Settlement (p. 9): Writer Joshua Haar (a second-year law student whose parents are Class Representaties in this giant legal skirmish), details his analysis of the Northeast dairy antitrust case. Haar details many complex aspects and concerns about the conduct of this case.

Explaining the Role of the Chapter 12 Bankruptcy Trustee (p. 9):
Writer Mary-Louise Zanoni details the role of the Chapter 12 bankruptcy trustee. Her article is an excellent lead-in to the next article referenced here.

Kirk Herse’s Battle with “The NY Dairy Farm Bankruptcy Octopus” – Part II (p. 11):
We continue our reporting on former New York State dairy farmer Kirk Herse against creditors seeking to grab his 176 acres of farmland near Lowville. The first installment of this series was in the May 2016 issue. This month’s investigation details how the Chapter 12 Bankruptcy Trustee has apparently sided with the creditors’ questionable actions in this battle. The bigger question: Chapter 12 Bankruptcy Trustees siphon off up to 10% of all annual payments by debtors. (13% in instances where annual payments by farmer-debtors exceed $450,000.) When the farmer/debtor is paying 15-20% of annual payments as combined interest to creditors and trustees’ rake-off, how in Sam Hill is the bankrupt farmer ever supposed to crawl out of the financial hole?

Veterinary Feed Directive Will Change Certain Feed Usage (p. 11):
Writer Jan Shepel discusses upcoming regulations and reporting requirements involving use of certain medicated feeds for livestock. These changes will take place on January 1, 2017. She reports that the biggest impacts will be on swine and poultry producers. All feed labels designated for “feed efficiency” and “growth promotion” will be discontinued. The aim is to dramatically reduce use of antibiotics in food creatures’ foods.

R-CALF Group Pushes Cattle Price Drop Inquiry, Opposes TPP (p. 12):
The “trouble-making” beef producers’ group – R-CALF USA – persists in bringing beef pricing issues to the attention of federal elected officials and regulators.

Judge OKs Motion for Final Approval of Northeast Antitrust Case (p. 12):
On June 7, federal judge Christina Reiss approved details of the most recent proposed settlement for the long-running Northeast dairy antitrust case. Defendants Dairy Farmers of America, Inc. and Dairy Marketing Services, LLC (a DFA subsidiary) will pay out $50 million to settle the case, without admitting any wrong-doings.

Cheese & Butter Prices Surge Despite Plenty of Milk & Inventories (p. 13):
Recent CME cash trading has vested some significant gains for prices of Cheddar. Butter is rising nicely, also. And even nonfat dry milk continues its climb out of the sub-basement. What’s behind Cheddar price increases, what with all the inventories in storage? Seems that processors can only use a modest amount of aged (over 6 months’) barrel Cheddar in the mix for processed cheese products. Strong current demand for barrel Cheddar means that prices for fresh product are being driven up … and block Cheddar is following.

Dairy Livestock Situation: Sellers Outnumbering Buyers (p. 14):
Sellers are long and buyers are short (and tight-fisted) at livestock sales barns lately. Prices are down. Absolute top-quality Holstein springers and milk cows are bringing no more than $1,600-$1,800 apiece, depending on the region of the country.

Amid Chaos, Australian Dairy Producers’ Prices Dramatically Reduced (p. 14):
Chaos, Aussie-style. The collapse of a major dairy marketer, Murray Golburn, has led to a collapse of farm milk prices in certain parts of Australia. Murray Golburn is seeking a “claw-back” (i.e., retroactive recapture of milk payments to producers). Meanwhile, New Zealand’s Fonterra is doing the same dirty trick to its 1,100 producers in Australia. All kinds of government and private bank bail-outs are coming forth for hard-bitten Aussie dairy producers.

Several Nations Taking Emergency Steps to Aid Dairy Farmers (p. 14):
In the midst of a global dairy price crisis, several nations are taking special steps to help their dairy farmers.

Historic Hardin Farm Listed “For Sale” (p. 15):
One of our two “Stories of the Month.”

Kraft Selling Waterlogged “Americano” Singles in Mexico (p. 16):
Has Kraft no morals. The so-called “Americano” sliced Singles sold in Mexico list “agua” (water) as their lead ingredient. What crap!

NY Farmer’s Roadside Barn Signs (p. 16): Dairyman Donald Dana is not bashful – he puts his opinions on big barn signs alongside busy U.S. Route 11, near Moira … way up in the North Country.

May 2016 Issue No. 442

Inside this month’s issue …

“The New York State Dairy Farm Bankruptcy Octopus” (p. 6-7):
     We finally print a years-long probe into a series of farm mortgage holders in New York State. The primary motive of these mortgage holders seems to have been to bankrupt dairy farmers and seize their land. Our Story of the Month!
    Click Here.

Dairy: Gushing Red Ink & Eroding Assets’ Values (p. 1):
    The nation is awash with too much milk – especially in the Great Lakes Region. Too much milk is depressing prices for a range of assets, from cheese to dairy cows. What a mess

Empire Specialty Cheese Pollutes Tributary of Chatauqua Lake (p. 2):
Writer Nate Wilson reports the latest mid-adventures of Empire Specialty Cheese, the firm that can’t get much of anything right. The start-up Italian cheese plant in westernmost New York State was nailed by the state for plant wastes entering a tributary of famed Chatauqua Lake.

WMMB’s James Robson Resigns (p. 2):
The long-term CEO of the Wisconsin Milk Marketing Board, James Robson, resigned abruptly in late April, following what amounted to a “no confidence” vote by WMMB’s board. The Milkweed views Robson as one of the most competent top executives ever in any dairy promotion group.

USDA Cancels July 2016 Cattle Report (p. 2):
Alleged budget reasons have caused USDA to cancel the valuable July Cattle Report – a semi-annual analysis of the nation’s beef and dairy herds.

April 2016 Class III Price $13.63 – Class IV at $12.68 (p. 2):
The headline tells it all.

15 Months of Organic, Grass-Based Progress (p. 3):
Paris Reidhead revisits Maple Hill Creamery. That dairy firm distributes an array of organic, grass-fed products – fluid milk, yogurt, kefir and cheese. Maple Hill Creamery’s pay producers to organic, grass-based producers range in the $45/cwt. range – depending upon quality and components.

Wisconsin Dairy Woman Aims for the House (of Representatives) (p. 4):
Writer Jan Shepel profiles Sarah Lloyd – a Wisconsin woman who has served on the Wisconsin Milk Marketing Board and the National Dairy Board. Sarah is seeking the Democratic nomination for the state’s 6th Congressional District race this fall.

R-CALF USA’s Bill Bullard: Questions & Answers (p. 5):
The CEO of R-CALF USA (a trouble-making bunch of mavericks representing U.S. cattle producers) gives a fact-filled set of answers to R-CALF USA’s recent success in convincing the U.S. Senate Judiciary Committee to call for an investigation of 2015’s slaughter cattle price collapse. What a well-informed source!

“The New York State Dairy Farm Bankruptcy Octopus” (p. 6-7):
We finally print a years-long probe into a series of farm mortgage holders in New York State. The primary motive of these mortgage holders seems to have been to bankrupt dairy farmers and seize their land. Our Story of the Month!

DFA’s 2015 Audit Features Debt, Nebulous Assets & (Big Negatives) (p. 8):
Editor Pete Hardin’s ability to knife holes in the annual financial audits of Dairy Farmers of America has never been sharper. One must wonder, are the auditors and DFA’s lenders out to lunch … or just part of the gravy train?

DairiConcepts: Bargain or White Elephant??? (p. 8):
On December 31, 2015, DFA acquired its partner’s half-interest in a dairy business named DairiConcepts. A close look at details of that purchase, as provided in DFA’s 2015 financial audit, raise serious questions about the wisdom of that purchase.

R-CALF USA Wants 205 Cattle Price Collapse Investigated (p. 6):
The upstart beef producers group – R-CALF USA – is seeking an investigation into last summer’s collapse of slaughter livestock prices. The beef producers group is claiming undue concentration among beef buyers is destroying competition.

Butter Prices Holding, Cheddar Tumbles & Milk Powder Up Slightly (p. 9):
Butter prices are holding, nonfat dry milk prices are creeping up from the sub-basement, and Cheddar prices are declining. Our dairy commodity picture is volatile.

Open Heifer & Baby Calf Prices Mostly Stable, But … (p. 10):
Prices for many dairy animals are showing the cash-flow stress on U.S. dairy farmers. Desire to sell animals is strong, inclination to buy is weak. Baby calves, open heifers and Jersey livestock are generally holding their value.

Zoo-like Evens Preceed Northeast Antitrust Case Fairness Hearing (p. 10):
May 13 will mark the Fairness Hearing in the long-running Northeast dairy antitrust case. Expect fireworks.

Too much “New York” stuff??? (p. 11):
Pete Hardin explains that overt emphasis on events in New York State this month may seek like overkill, but the fundamental issues – both bad and good – should be lessons for all dairy farmers, without regard to where they reside.

Let’s think about honest solutions (p. 11):
Pete Hardin suggests several ideas to readers for bettering dairy’s situation, and invites ideas from readers.

Hot, Dry Summer Likely for Central U.S. (p. 12):
At a recent dairy convention, a speaker detailed how rapidly cooling waters in the northern Pacific could translate into a hot dry summer for the central U.S.

April 2016 Issue No. 441

Inside this month’s issue …

Several Regions Face “Homeless Milk,” Let the Dumping Begin (p. 1):
     — The Northeast, Mid-East and Central States federal milk orders have okayed pooling of “dumped milk” from April 1 through July 15, 2016. And the Upper Midwest region will probably see farm milk overflow processing plant capacity. The U.S. dairy industry is on an insane track that’s busting prices and margins for farms, cooperatives, and cheese plants going to overflow   Get this: In February 2016, New York State dairy cows produced 7.3% more milk than they did in that same month one year ago, even after “adjusting” for the extra “Leap Year” day.
     Click Here.

Walmart to Build Big Fluid Plant in Indiana (p. 1):
    The nation’s largest food retailer has announced plans to construct a 250,000-square foot fluid milk plant in northeastern Indiana. Many ripple effects will hit the U.S. dairy industry, once this facility is on line in late 2017.

$230 Mil. Cheese Plant Studied for Fair Oaks Farms (p. 1):
In addition to many planned new constructions and expansions of cheese plants in the eastern quadrant of the U.S., the biggest has yet to be formally announced. Fair Oaks Farms in Indiana is studying building a $230 million cheese plant.

Green County, Wisconsin Hits a Triple! (p.1):
Within the span of a few short weeks, Wisconsin’s Green County has achieved the following: produced the World’s Champion Cheese, produced the World’s Champion yogurt, and produced the world’s greatest milk-producing cow.

NINE Years Later, FDA Answers rbGH Critics’ Citizen Petition (p. 2):
Way back in February 2007, a group of critics submitted a Citizen Petition to the federal Food and Drug Administration. The petitioners sought to halt sale and use of recombinant bovine growth hormone (rbGH, also called rbST). Nine years later, FDA finally answered that Citizen Petition. FDA’s reply cited a bushel basket of outdated studies that claimed rbGH use to spur dairy cows’ milk production was perfectly safe.

March 2016 Class III price $13.74 – Class IV $12.74 (p. 2):
February class prices for manufacturing milk dropped even lower.

USDA Okays Milk “Dumping” in Northeast, Mid-East and Central States (p. 3):
Facing too much farm milk, milk marketers in several regions of the country have gained USDA’s approval to pool “dumped” milk from April 1 through July 15. Trouble is: these rules discriminate against firms with independent producers. One more time, USDA is “kow-towing” to the nation’s big dairy cooperatives.

Wisconsin Artisan Cheese Tops World Championship Contest (p. 4):
For the first time in 28 years, a Wisconsin cheese plant won top honors in the World Championship Cheese contest. Emmi Roth USA’s cheese-making team at Monroe, Wisconsin won the top price with its “Grand Cru Surchoix.” Writer Jan Shepel covers this event.

New World Yogurt Champion: Sugar River Dairy (p. 4):
A small Wisconsin yogurt plant’s Whole Milk Plain product took top honors at the recent world championship contest. Owners Ron and Chris Paris have worked for 14 years to build up their quality product.

Four Big Dairy Processing Projects Announced (p. 5):
Writer Nate Wilson lists four major dairy plant projects that have been announced recently. Much new investment in dairy processing plants is taking place.

Natural Products Expo Offers Way Too Much (p. 5):
Writer Ed Zimmerman reports on food trends he witnessed at the recent “Expo West” event in California. Yogurt is an “IN” product, and many new high-protein foods are being offered that contain dairy proteins.

Better Butter Data from NASS Desperately Needed (p. 6):
Pete Hardin analyzes butter industry trends and scorns the lack of transparency in butter inventories from USDA’s “Cold Storage” report. The Cold Storage report includes both domestic and imported products as butter. Also, imported anhydrous milkfat and butter oil are counted as “butter” — even though the milk fat in those commodities will never grace the butter dish on American tables.

One Man Successfully Battled Against Cancer … (p. 7):
An old friend of The Milkweed, who must remain anonymous, relates his successful battle against cancer that had spread throughout his lymph node system and into six organs/glands. Nine years ago, team of cancer doctors gave “Sam” six months to live, at most. Nine years later, Sam is alive and kicking. He used the “Beam Ray” light technology to eliminate cancers from his body. An amazing story … The “Beam Ray” dates back about 80 years … and incurred the scorn of the FDA and the American Medical Assn. One person owning the “Beam Ray” actually went to federal prison for three years for refusing to stop using the light-emitting machine.

“Settling” the Northeast Dairy Antitrust Case: Try, Try … and Try Again (p. 8):
Pete Hardin analyzes the behind-the-scenes antics leading up to the latest attempt to gain a settlement in the long-running Northeast Dairy Antitrust case against defendants Dairy Farmers of America and Dairy Marketing Services, Inc.

Hanman’s Own Words Detailed Northeast Dairy Conspiracy (p. 8):
Way back on September 18, 2000, then DFA President/CEO Gary Hanman made a speech in Kansas City before a group of his co-op’s field personnel. Hanman bragged, among other things, about how DFA had a deal to force independent Northeast dairy producers into co-op membership. Because of scrutiny from the U.S. Justice Department at that time, Hanman said that he couldn’t force the issue right then. But, “[W]e will get that done, given time,” Hanman promised. In DFA’s top officials own words, the conspiracy to take over milk markets of thousands of Northeast dairy producers was laid out … way back in 2000. Sounds like “Prior Intent” to commit conspiracy.

What’s Wrong with the Latest Northeast Dairy Antitrust Settlement??? (p. 9):
Pete Hardin details a few of the perceived shortcomings in the proposed Settlement for the Northeast Dairy Antitrust case.

Donna Hall: Removed as Class Representative (p. 9):
The last thing that defendants’ DFA and DMS would have wanted was an intelligent, well-spoken Pennsylvania dairy farm grandmother taking the witness stand in front of a jury of Vermont citizens in the Northeast antitrust case. Worse yet, that “dairy grandma” – Donna Hall – had appeared on Lou Dobbs’ CNN national television news, back when DFA/DMS pirated her milk market from Farmland Dairies. And then … Donna and dozens of other Pennsylvania got short-changed in payments for their butterfat. Donna Hall WAS a Class Representative in the Northeast antitrust case. But mid-stream, the geographic boundaries for claimants were “Gerry-mandered” so Donna forfeited all claims in the case. Darn. Donna would have been a compelling witness!

Letter to Northeast Dairy Farmers … (p. 9):
A young man studying graduate-level law and accounting – Jonathan Haar – has written a letter to Northeast dairy producers outlining his analyses of problems with the proposed settlement of the regional dairy antitrust case. He’s urging Northeast dairy farmers with claims the case to write the presiding judge, objecting to the Settlement now scheduled for a Fairness Hearing on May 13 in Burlington, VT.

CPI Database Shows Prices Consumers Pay for Milk and Various Cheeses (p. 11):
Jan Shepel shows how consumers’ costs for cheese products – particularly natural cheese – have not come down much in the past year-plus, despite far lower commodity prices for cheese. It’s the same old story …

Economist: DMPP a ‘Junk” Program that Isn’t Working for Dairy Farmers (p. 11):
Writer Jan Shepel analyzes comments by Daniel Basse – president of AgResource Company – in which Basse wrote off as worthless the “Dairy Margin Protection Program” offered to dairy producers by USDA.

Drought-Targeting Crop Advice for Livestock Producers (p. 12):
Contributor Paris Reidhead details strategies for producing crops during periods of moisture scarcity. Small grains, such as sorghum and millet – thrive when water-needy corn doesn’t do well.

Butter Prices Strengthen, Milk Powder Weaker, Cheese Under Pressure (P. 13):
Pete Hardin takes a look at the dairy commodity scene. The only good news is that butter prices are solid, aming growing demand from U.S. consumers.

Dairy Livestock Prices Generally Down (p. 14):
Pete Hardin surveys the current dairy livestock picture, talking with auction house operators from several regions. Really nice animals are holding their value, demand for Jerseys and Jersey-crosses is solid, even perhaps pushing prices up, Buyers are showing interest in good open heifers. But in general, the red ink cash-flow situation on U.S. dairy farmers is pulling down dairy livestock prices.

Great Lakes Region: Dairy’s Emerging Epicenter (p. 14):
The large majority of new dairy plant construction and announced plans to construct are located in the extended Great Lakes Basin. Why? Follow the water!

Déjà vu (early 1980s) all over again? (p. 15):
Pete Hardin reflects on a mid-March driving trip back to the Northeast. He met with a lot of very concerned dairy farmers, and puzzles about how much farm machinery and new automobiles are found on dealerships’ lots across the Northeast and Midwest. To Hardin, he sees a possible replay of the early 1980s.

Dairy’s “industrialization” (p. 15):
Worry is that dairy is in a sudden rush towards industrialization that wiped out many small and ,medium-sized producers in the pork and poultry industries.

Another farm milk supply control “tool” (p. 15):
Pete Hardin suggests a “spring take-out/fall put-back” system of taking incentives away from spring flush milk output. Why not $1.25 or $1.50/cwt. deducted in the spring and paid back in the fall? Whether for individual cooperatives or for federal milk orders, that’s one way to swing seasonal supplies to better conform with manufacturing plant capacities and consumer demand.

“March Miracle” — Big Recharge for California’s Reservoirs & Snow Pack (p. 16):
Truly miraculous precipitation and snow melt helped refill three big reservoirs in northern California, including the state’s two biggest reservoirs – Shasta Reservoir and Lake Oroville. As of April 7, 2016, California’s reservoirs were up to 85% of normal capacity … with much better moisture contained in mountain snow packs to further refill some reservoirs. NO … California’s epic Drought is far from over. But the state’s water situation is looking much better than it did, even one month ago.

March 2016 Issue No. 440

Inside this month’s issue …

U.S. a “Dumping Ground” in Unsettled Dairy World (p. 1): Our “Story of the Month.”
Click Here.

USDA May Cancel Scheduled July 2016 Cattle Report (p. 1):
Budget woes are forcing senior USDA officials to consider canceling the July 2016 Cattle Report. That report is a key source of dairy and beef livestock trends. Don’t like loss of the July Cattle Report? Call Mike Reilly at 202-720-2707 and give him an earful.

“Wood” in Parmesan: Dairy’s Latste Food Integrity Scandal (p. 2):
(n mid-February, Bloomberg News reported test results showing that major brands of “Graded Parmesan” contained illegally high levels of “microcrystalline cellulose” – a wood derivative.

Huge Imports Challenge U.S. Producers’ Prices, Orgaic Grain Sector almost as Complex as Dairy! (p. 2):
70% of all organic soybeans processed or fed in the U.S. are imported. And 40% of all organic corn processed or fed in the U.S. is imported. The strong U.S. dollar threatens to bring in more organic imports.

Feb. 2016 Class III Price $13.80 – Class IV Price $13.49. (p. 2):
The headline tells the whole story.

Dairy Cull cow Prices Fell in 2015’s Second Half, But Consumer’s Ground Beef Prices Stayed High (p. 3):
Dairy farmer/writer Jan Shepel analyzes price trends for dairy cull cows and consumers’ costs for hamburger in the supermarket. In 2015’s second half, somebody made a lot of money keeping hamburger prices high, when slaughter cow prices nose-dived.

PPD Info & rbST-Free Premiums Vanish from Michigan Milk’s Check Stubs (p. 3):
Michigan Milk Producers Assn. is reducing information and premiums on members’ milk checks. For January 2016, MMPA “erased” references to monthly “Producer Price Differentials “PPDs”). (In December 2015, MMPA “disappeared” about $1.60/cwt. between he Mid-East federal order’s PPD and what MMPA paid out. Also gone without explanation from January 2016 milk check stubs:; the $0.13/cwt. premium for producing “rbST-Free” milk.

National Milk Producers’ Board Endorses TPP and Questions TTIP (p. 4):
Despite a lack of clear benefits for the U.S> dairy industry, the dairy co-op lobby – National Milk Producers Federation – has endorsed the controversial Trans Pacific Partnership “Free Trade” deal.

Early March ’16 Reservoir & Snow Pack Data: California Needs B-I-G Recharge (p. 4):
Good thing that as March progressed, California got a good shot of moisture, because the early March, the state’s reservoirs were way below normal water levels (53%) and the mountains snow pack was only 83% or normal.

Wisconsin Milk Marketing Board Boosts Social Media Presence (p. 5):
Jan Shepel reports on social media investments by the Wisconsin Milk Marketing Board are focused on expanding consumers’ knowledge and enjoyment of cheese. Sophisticated social media outreach is an evolving frontier in dairy outreach.

GMO Foods Controversy? Opportunity for EnviroLogix Inc.! (p. 6-7):
Paris Reidhead goes into depth describing the controversy over genetically modified foods, and how a Maine-based testing firm is providing the food and grain industries with quick tools to detect presence of genetically-modified corn ad soybeans in shipments and products.

GMOs: Still Running … But No Longer Able to Hide (p. 7):
Paris Reidhead updates readers on the latest info in the genetically modified foods controversy, and notes that greater availability of testing equipment will allow greater scrutiny of what’s in our food products.

Could South American Chilled & Frozen Beef Spread Zika Virus North? (p. 7):
Little is known about the dreaded Zika virus. Paris Reidhead explores questions about whether its possible to transmit that virus through the meat products of cattle from infected areas of South America.

Dairyman Disgusted by NMPF’s Animal Welfare Agenda (p. 8):
A dairy producer for over 40 years, Don Mielke (Menasha, Wisconsin) reports his disgust at the “education” presentation at a recent Wisconsin fieldmen’s conference. Don has no patience with overpaid dairy industry personnel preaching the animal rights agenda.

Finally! Empire Specialty Cheese Vacates Amish Cheese Plant (p. 8):
Writer Nate Wilson reports on cheesy events in the western tip of New York State. Empire Specialty Cheese has finally started making and selling cheese at its new plant, and that firm finally vacated the cheese plant it had leased from an Amish community in western New York.

Dairy Commodity Prices Relatively Flat, Plenty of Production (p. 9):
Pete Hardin surveys the dairy commodity scene. Production is high, and inventories are increasing.

Prices Down at Buttke Auction in North Carolina (p. 10):
The remaining dairy herd assembled by North Carolina’s Arlin Buttke was sold at auction in late February. Buttke’s premier herd of Holsteins brought about an estimated $500/head less than what would have been gained two or three months ago, a local expert estimated.

Meet the National Dairy Producers Organization (NDPO) (p. 10):
The leaders of the NDPO – a group of concerned dairy farmers – explain their organization and its goals.

Cedar Summit Farm’s Dairy Processing Equipment (p. 10):
The near-complete package of dairy processing equipment for Cedar Summit Farm is for sale. That organic, producer-handler ceased operations last summer. For more info, call Dave Minar at 952-212-9506.

I-N-T-E-G-R-I-T-Y of dairy is strained … (p. 11):
Dairy has a long way to come back in rebuilding the integrity of this industry, Pete Hardin explains.

Surplus? Drain the skim, eliminate volume premiums (p. 11):
Too much milk? There are some easier solutions, such as draining the skim milk off the bottom of the bulk tank, and getting rid of volume premiums paid big dairies. P.S. Quit using Posilac, also.

Is Kraft’s “Fat Free Mozzarella” Really Mozzarella??? (p. 12):
The Milkweed takes a close look at a Kraft-Heinz product,-- Kraft’s “Fat Free Mozzarella” in shreds. There is no FDA standard of identity for “Fat Free Mozzarella.” And the cheese portion contains yeast. Kraft’s ingredients label even notes that yeast is … “Ingredient Not In Regular Mozzarella Cheese.”

February 2016 Issue No. 439

Inside this month’s issue …

RICO! Milk Powder Lawsuit Turns Against DairyAmerica & CDI (p. 1):
On January 19, A stunning decision was issued by Judge Anthony W. Ishii in the long-running cash involving milk powder price misreporting that dates back to 2006 and 2007. Judge Ishii restored California Dairies, Inc. as a defendant. And Judge Ishii opened the doors wide for plaintiffs’ attorneys to elevate the case to a RICO matter. RICO is a body of federal law that allows victims of mafia-like extortions to recover triple damages and legal fees.
Click Here.

Recent Dairy Trade Mission to Cuba: Q&A with Bob Wolter (p. 1):
Questions and Answers interview with Bob Wolter, Creative Business Services, who took a recent nine day mission dairy trade trip to Cuba. Cuba's agriculture sector is very under developed.
Click Here .

McDonald’s Smacked with Lawsuit Alleging “Adulterated” Mozzarella Sticks (p. 1):
A class action lawsuit has been filed against McDonald’s Corp. in California, alleging that McDonald’s “Mozzarella Sticks” contain an illegal material -- starch. The case seeks national Class Action status. McDonald’s has vowed to vigorously fight the legal challenge, claiming that the products contain only 100% low-moisture, part-skim Mozzarella.

Dairy Producers in New Mexico and Texas Bounce Back from Winterstorm Goliath (p. 2):
Writer Nate Wilson follows up with reports from the blizzard-ravaged dairy region of west Texas and New Mexico.

Signatory Nations Formalize TPP Trade Deal (p. 2):
The Trans Pacific Partnership was recently signed. Now the question becomes: Will the U.S. Congress pass the “Free-Trade” bill?

Jan ’16 FMMO Class Prices Decline: Class III Price $13.72 – Class IV $13.31 (P. 2):
Ouch. The headline says it all.

Where’s the Mozzarella? Some McDonald’s “Mozzarella Sticks” are Hollow! (p. 3):
A flurry of social media posts include pictures and unhappy comments from customers about some McDonald’s “Mozzarella Sticks” being hollow, or partially filled with cheese.

McDonald’s Early, Angry Responses to Mozzarella Sticks Lawsuit & Publicity (p. 3):
McDonald’s Corp. officials have denied that their “Mozzarella Sticks” contain starch. They claim that the cheese portion of the product is 100% low-moisture part-skim Mozzarella.

With U.S. Growers Making All Kinds of Meat and Exports Down, Beef Prices Stay Low (p. 4):
Writer Jan Shepel reviews beef industry trends as presented by Dr. Brenda Boetel (UW-River Falls) at the recent UW agricultural outlook forum.

Grain Producers Facing Lower Prices, Also (p. 4):
Jan Shepel details corn and soybean data trends as presented at the recent UW agricultural outlook forum.

Behnke Family’s “Gigi” Breaks National Production Average With 365-day Record of 74.650 Pounds of Milk (p. 5-6):
The Behnke family dairy of Brooklyn, Wisconsin has a cow, “Gigi,” who just set the record for milk production for a 365-day milking. Jan Shepel profiles the family and their now-famous Holstein.

KoKoski Family Unites Land, Jersey Cows, On-Farm Bottling … and Community (p. 6-7):
Paris Reidhead visits the Kokoski family’s Mapleline Farm near Hadley, Massachusetts. The Kokoski herd is comprised of Jersey cattle. Milk from the herd is bottled on the farm and distributed locally.

Northeast FMMO Milk Dumping Spiked in December (p. 7):
Nate Wilson analyzes data from the Northeast federal milk order about milk dumped in December 2015. By our best estimates, about $1.35 million lbs. of cream were “skimmed” from 17 million lbs. of “dumped” milk in the Northeast during the period December 16 to December 31, 2015.

The ABCs of Butter Explained by Dr. Robert L. Bradley, Jr., UW-Madison Dairy Food Scientist Emeritus (p. 8-9):
Butter is our one “hot” dairy commodity. Dr. Robert J. Bradley explains many technical details about butter.

The Big Fat Surprise --Why Butter, Meat & Cheese Belong in a Healthy Diet (p. 9-10):
We review this important book by author Nina Teicholz. She traces the history of the faulty data that pushed the U.S. medical community to turn its back on butter, starting in the 1950s and 1960s. Teicholz’s book, which was issued in 2014, is a Herculean research project – important reading for folks in the dairy industry.
Fresh Buttery Taste Spread? No Thank You, Land O’Lakes (p. 10): We take a close look at this “spread” sold by Land O’Lakes, and puzzle how a dairy farmers cooperative founded on the goal f selling quality butter can market “stuff” like this product.

WI Township’s Report Details CAFO Environmental and Health Impacts (p. 11):
We report on a recent study commissioned by Sylvester Township, Wisconsin. That study focused on the environmental and human health concerns about land-spreading of large quantities of animal waste. We note the Website at which the full, 120-page report is available.

Is USDA at Cross-Purposes on Foot and Mouth Disease Issues? (p. 12):
Pete Hardin Writes skeptically about the Foot and Mouth Disease threat. On one hand, USDA is having state agriculture department officials conduct regional “practice drills” in the event of a FMD outbreak in the U.S. On the other hand, USDA is sanctioning imports of beef from FMD-infected countries in South America and Africa.

Butter Propping Up Dairy Commodity Price Complex (p. 13):
In our dairy commodity review, we see butter as the only commodity was price strength. The dairy protein powder complex is a fiasco.

Prices Holding fo Good Livestock, Cull Prices Up a Bit (p. 14):
We’re closely watching dairy livestock prices. Good animals are basically holding their own, and prices paid for good cull cows have risen in some markets. But few buyers ar attracted to dairy livestock with any perceived problems.

World markets, world market prices … & other B.S. (p. 15):
Pete Hardin goes a bit ballistic at dairy experts claiming that U.S. demand for dairy products is “flat” … as well as dairy leaders who claim that U.S. producers must be able financially survive at world market prices.

One dairywoman’s frustrations with current milk prices (p. 15):
Our contributor and friend Jan Shepel speaks her mind about the low milk prices now facing dairy producers. Like many others, she’s worried about the future of her dairy farm and isn’t afraid to admit it.

Q&A with Bob Wolter: Recent Dairy Trade Mission to Cuba (p. 126):
Green Bay businessman Bob Wolter recently helped lead a dairy trade mission to Cuba. Bob answers questions about the problems and opportunities he saw in that neighboring island nation.

Could Brazilian Beef Imports Pose Zika Virus Threat (16):
Questions, not answers, about whether Zika virus could be imported through beef brought into this country from Brazil. Pete Hardin raises questions, and we’ll rely on Paris Reidhead for some hoped-for answers in next month’s issue.

January 2016 Issue No. 438

Inside this month’s issue …

2016: Uncertainty for Dairy Producers (p. 1):
We start 2016 with low dairy commodity (except for butter) and farm mil price (except for butterfat.) Pete Hardin explains why it’s wrong to write off 2016 as another low milk price year. One major reason not to panic: Adverese weather events are challenging two major dairy regions of the country – California and the Southwest.
Click Here.

2016 Trends and Predictions (p. 1):
Analyst Ed Zimmerman offers his insights about trends to watch in 2014, including: continued strong butter demand, more demand for higher-fat beverage milk products, and California’s dairy production machine gearing up after finally receiving more during the past several weeks..

Analyst Ed Zimmerman offers his insights about trends to watch in 2014, including: continued strong butter demand, more demand for higher-fat beverage milk products, and California’s dairy production machine gearing up after finally receiving more during the past several weeks: Dairy farmer/writer Jan Shepel surveys opinions in the beef industry for reasons why we’ve seen such a decline in prices for slaughter cattle (dairy and beef) in the past five or six months.

December Class III Price $14.44/Class IV $15.52 (p. 2):
Federal milk ordser class prices for December headed down again. The headline tells it all.

TPP’s Impact on U.S. Diary: Darkness, Sounds of Silence (p. 3):
Anybody else notice how absolutely silent dairy leaders have been regarding any “benefits” form the Trans Pacific Partnership? Congress will vote in early 2016 on whether to accept that “Free-Trade” package negotiated by the Obama administration.

Accesss to U.S. Dairy Markets: Historic Goal of NZ, EU (p. 3):
Pete Hardin tells the history of the infamous “Flanigan Report” – the Nixon White House’s secret trade negotiating strategy that would have sold U.S. dairy farmers down the river. Hardin’s point: Access to U.S. consumer dairy product markets has been a goal of dairy exporting nations for more than 40 years.

CA’s Water Reserves Depleted After Four Straight Drought Years (P. 4):
Writer Jan Shepel reports on presentations about California’s water situation and its potential impacts on agriculture.

Clarification: What to Call McDonald’s Mozzarella Sticks? (p. 5):
Pete Hardin follows up last month’s cover story about McDonald’s suspicious Mozzarella Sticks. Hardin lists all the different names that McDonald’s calls that “stuff.” And after receiving a box of the product (as shipped to McDonald’s stores), Hardin reports on the list of ingredients as well as one dairy plant from which the Mozzarella Sticks have been sent to McDonald’s stores. That plant: Sargento Cheese’s facility at Kiel, Wisconsin.

PPDs: The Interesection of Confusion and Grand Larceny (p. 6):
Pete Hardin explores the “Producer Price Differentials” in federal milk orders and how they’re a great source of confusion as well as a way fo some dairy marketers to make part of the producers’ milk check disappear.

Swiss Valley Farms’ PPDs Drained Members’ Milk Checks in 2015 (p. 7):
For 2015’s first 10 months, the PPD’s paid by Swiss Valley Farms to its Order 32 producers came out $.99/cwt. lower than the monthly PPDs cited by the milk order. Low PPDs are just one way that Swiss Valley Farms seems to make members’ money disappear.

Michigan Milk Producers Threatens Members: Sign Up for F.A.R.M. or Lose Your Milk Markets (p. 7):
We reprint an item from the November 2015 Michigan Milk Producers’ member newsletter, which warns members they have to sign up for and comply with the dictates of National Milk Producers Federation dairy livestock care protocols.

Winterstorm “Goliath” Kills 30-35,000 Milk Cows in New Mexico & Texas (p. 8-9): What a mess!
This report, and related stories, are available on line as or “Story of the month.”

Solvita: Second New Kid on Agriculture’s Testing Block (p. 10-11):
Paris Reidhead details new testing for measuring the micro-organism content of soils. Populations of soil microbiota are increasingly recognized as important for fertility and crop yields.

Muller-Quaker Yogurt Plant Kaput: DFA Picks Up Pieces (p. 11):
As predicted in the November 2015 issue of The Milkweed, the struggling Muller-Quaker yogurt plant at Batavia, New York closed its doors and Dairy Farmers of America will purchase the relataively new facility. Muller-Quaker did about everything wrong as a late entrant to the overly competitive U.S. yogurt market.

Will 2016 Mark Death of Wisconsin’s Town Board Powers? (p. 12):
Tony Ends details legislative proposals in Wisconsin that would basically strip local township boards of any powers involving land use oversight and environmental requirements on businesses, including agriculture.

Butter’s Price Strength Preventing Complete Market Collapse (p. 13):
In Pete Hardin’s dairy commodity analysis, butter’s price strength is about the only good news around. With butter prices at CME holding above $2.00/lb., and strong consumer demand for butter, things are looking up for that commodity. At CME, Cheddar is bumbling along in the $1.50/cwt. range and nonfat dry milk cash prices are “retro” – back in the mid-1970s’ range.

Dairy Livestock Prices Generally Declining, with Some Exceptions (p. 14):
Except for top-end cows, springing heifers, Jerseys, and good open heifers, dairy livestock prices are generally declining, Pee Hardin reports.
The collapse of slaughter cow prices has dropped dairy cull prices and values for bull calves.

Retail Hamburger & Steak Prices Remain Top—Shelf (p. 14):
Jan Shepel covers prices for hamburger and steaks reported by the federal government’s Consumer Price Index. Guess what? U.S. shoppers paid almost as much for hamburger and steaks at supermarkets in November 2015 as they did one year ago! Somebody between the farmer and consumer is getting fat!

Tail-Docking? Get serious about dairy’s wellness issues (p. 15):
Pete Hardin blasts leaders of the U.S. dairy industry for worrying about animal rights’ activists’ clap-trap over issues such as tail-docking. Hardin also reports that dairy has failed to address animal health problems – such as Johne’s Disease, recombinant bovine growth hormone, and bovine leucosis. Those items entail human health concerns, which should be addressed.

Map of Global Sea Surface Temperatures Anomalies (p. 16):
The violent, aberrant weather events hitting the U.S. in recent weeks and months has a commonality – warmer ocean temperatures. The El Nino event – hot Pacific Ocean temperatures at the Equator – show up clearly in this recent map.

Highlights of Past Issues...

December 2015 Issue No. 437

Story of the Month: 2016 Milk & Commodity Prices? Pay Attention to California! (p. 1):
Let’s wait abit and watch California’s dairy tends, before believing these low ball milk prices projected for 2016.
Click Here.

McDonald’s Breaded Mozzarella Sticks: Adulterated & Misbranded (p. 1):
The Milkweed has conducted laboratory tests on the cheese core portion of McDonald’s “Breaded Mozzarella Sticks.” Those tests revealed the presence of 3.76% starch. Starch is not an allowable ingredient, under FDA’s standard of identity for Mozzarella. This story could blow sky-high.

Additional (p. 2):
The November value for Class III (cheese) milk in the federal milk order system declined modestly in November. Meanwhile, on the strength of butter prices, the Class IV (butter-powder) milk price jumped up $.46/cwt.

Dairy Promotion Check-Off … “created McDonald’s mozzarella sticks” (p. 3):
Hard to believe, but U.S. dairy farmers’ promotion check-off dollars funded creation of McDonald’s phony “Breaded Mozzarella Sticks.” No less an authority than Dairy Management, Inc.’s CEO Tom Gallagher recently crowed that group was responsible for McDonald’s adulterated, misbranded product.

FDA Standards of Identity Are Explicit: Only Approved Ingredients (p. 3):
We directly quote the following definitions from FDA rules: adulteration, mislabeling, and Mozzarella’s standards of identity.

Labor, Farm Organizations Report Deficiencies in FPP Trade Pact (p. 4):
Writer/dairy woman Jan Shepel analyzes criticisms of the recently concluded Trans Pacific Partnership. That “Free-Trade” pact will go to the U.S. Congress in early January 2016 for approval. Jan also analyzes concerns about the TPP from the perspective of the Canadian dairy industry.

Obama’s TPP Legacy Endangered by WTO Ruling Against U.S. “COOL” Law (p. 5):
Writer Nate Wilson analyzes the problem facing the Obama administration’s trade policies. On one hand, President Obama lashed out at critics of the Trans Pacific Partnership last spring, claiming that critics were wrong to argue that “Free-Trade” deals impaired this nation’s self-governance. But now that the World Trade Organization has ruled that the U.S. must deep-six our “Country Of Origin Labeling” laws for meat products, it’s clear that distant global tribunals may in fact dictate U.S. laws. Interesting …

Why Should Dairy Farmers Be Forced to Follow NMPF’s Lead? (p. 5):
Down how many bad paths is the National Milk Producers Federation leading U.S. dairy farmers??? Let’s count ‘em: the Dairy Margin Protection Program, the F.A.R.M. “animal welfare” inspections, abuse of the “REAL® Seal, and NMPF’s “latest” – asking Congress to kill the “COOL” meat-labeling laws.

Dick Smith – Old-School Milk Inspector – Hangs Up His Clipboard and Speaks His Mind (pages 6-7):
Paris Reidhead interviews Dick Smith, a dairy plant field man who has retired after 45 years on the job in central New York. Dick voices a lot of opinions and insights about a lot of subjects … from Posilac and the P.I. Count to “animal welfare” proponents.

Big Gov’t Subsidy for Kraft/Heinz in New York (p. 7):
Kraft/Heinz announced closings of three NYS dairy plants, with a loss of about 900 jobs. Kraft/Heinz had intended to expand its Lowville, NY. To save face, New York State pliticians like Gov. Andrew Cuomo and U.S. Senator Charles Schumer cooked up a scheme to match, dollar-for-dollar, all Kraft/Heinz costs to expand the Lowville plant and add 100 more jobs. Net job loss: 800.

Fear of FMD Warranted in Opposing Beef Imports from Namibia (p. 8):
Jan Shepel details criticisms of USDA Secretary Tom Vilsack’s dumbest move yet: Importing beef from the African country of Namibia. Namibia has already had a Foot-and-Mouth Disease outbreak in 2015! Jan quotes from numerous opposing comments on this latest brain-dead scheme from the “Free-Traitors” in Washington, D.C.

Butter Finally Starts Sliding, Cheddar & Nonfat Prices Also Down (p. 9):
Pete Hardin reviews the dairy commodity scene. Demand for butter and cream is strong. Cheese prices are slipping, due in part to pressures from almost no remaining warehouse capacity in the Northwest.

Dairy Livestock Prices Generally Holding, Except for Culls (p. 10):
We review the dairy livestock picture. Declining prices for dairy cull cows is the big problem, lately. That price decline leads to serious speculation about undue market share controlled by the nation’s largest buyer of slaughter cattle.

Dairy’s “Animal Welfare” Agenda Going Bonkers (p. 10):
How many more overpaid “experts” going farm-to-farm, telling dairy farmers how to run their businesses, do we need? No tail-docking? We learn some farmers with robotic milkers dock tails, because sometimes the robot’s electronic eye will attach one of the teat cups to the cow’s tail!

Adulteration + misbranding = F-R-A-U-D (p. 11):
Pete Hardin shares his rather pointed opinions about McDonald’s adulterated/misbranded Mozzarella and the stupidity of Dairy Management, Inc.’s using farmers promotion dollars to develop that illegal product.

Only 12 pages, but … (p. 11):
Pete Hardin shares some of his year-end musings.

Just One PowerPoint Panel Foretold So Much … (p. 12):
Late last April, at a dairy conference, a meteorologist showed a global map of ocean temperatures. Those higher temperatures accurately presaged aberrant weather events that have since occurred.

a2 Milk Company: Strong Sales Growth in Infant Formula Products (p. 12):
The a2 Milk Company’s recent annual meeting provided a fresh set of data for this fast-growing company based in New Zealand. Sales of the firm’s Platinum® infant formulas have grown by about 350% during the first four months of fiscal 2016, compared to the prior year.

November 2015 Issue No. 436

Inside this month’s issue …

Dairy Producers’ 2015 DMPP “Cost-Benefit Ratio” About 100:1 (p. 1):
Our “Story of the Month” demonstrates how USDA’s new dairy farmer margin protection program is a scam.
Click Here.

White House Politics Behind Brazil Beef Imports Decision (p. 2):
Our sources have explained how USDA’s decision to allow imports of beef from areas of Brazil and Argentina that are allegedly not infected with destructive Foot-and-Mouth Disease was a top-down White House dictate.

Oct. 2015 Class III Price at $1.46/Class IV Hits $16.43 (p. 2):
Cheese milk prices declined for USDA’s October FMMO program. But prices for Class IV (butter-powder) rose on the strength of better butter and nonfat dry milk prices.

Details of TPP Emerge as Agencies Sing Its Praises (p. 3):
Details of TPP Emerge as Agencies Sing Its Praises (p. 3): Writer Jan Shepel summarizes the early pronouncements from the administration regarding the impact of Trans Pacific Partnership (TPP) talks. Behind these glowing reviews is the political reality that legislators in Washington, D.C. must study the details and then vote to pass the TPP. Strong opposition exists.

Two Livestock Groups Say TPP Will ‘Devastate” U.S. Beef Producers (p. 3):
The National Farmers Union and R-CALF USA have registered early opposition as some details of the Trans Pacific Partnership emerge.

Fonterra’s Members Should Be Running Scared (p. 4):
What’s going on at Fonterra – New Zealand’s dairy behemoth? In one year, Fonterra’s debt has soared by 1888% to $7.5 billion. (That’s just over $700,000 per member for Fonterra’s 10,500 members.) Fonterra has put some of its non-dairy farmer suppliers on notice that they’ll be paid on a 90-day basis. New Zealand press reports that three-quarters of Fonterra’s dairy farmer members have taken out interest-free gov’t loans to help their cash flow. Dairy is New Zealand’s biggest single industry and Fonterra’s financial stability is critical to that nation’s economy.

Kraft/Heinz Closing 3 NYS Plants, But Boosting Capacity at Lowville, NY (p. 4):
Newly merged Kraft/Heinz is slashing operations and employees. Three NYS dairy plants – at Avon, Campbell and Walton – are set to be closed, while Lowville will expand. NYS politicians have intervened, gaining a Kraft/Heinz’ concession to keep plants open while searching for new owners.

Tail-Docking Ban is Big News at NMPF Meeting (p. 4):
The big news emanating from National Milk Producers’ recent annual meeting was a resolution banning tail-docking, starting in 2017. In these times, is that the biggest issue the dairy co-op lobby can confront?

Behind the Scenes: USDA’s Critical Dairy Data Reporting Systems (p. 5):
We visited Washington, D.C. and met with Mike Miller and Donnie Fike – the USDA staffers who oversee, respectively, the monthly Milk Production and Dairy Products reports. We detail how these reports come together, from data collection at the state/regional level to scrutiny of data in Washington, D.C. Dairy is blessed with data!

Teat Scrubber and Ozone Solutions Make Perfect Sense in Dairy Parlor (p. 6-7):
Write/dairy farmer Jan Shepel reports on technologies marketed at World Dairy Expo last month. An Italian company – Puli-sistems – has created a hand-held teat-scrubber. And a Canadian dairyman is marketing an “Ozone Generator” that works in tandem with the teat scrubber to prep cows’ teats for milking with a scrubbing of warm water and ozone. Ozone is a natural disinfectant/germicide that helps heal the skin. Interesting!

Q&A With Eric Deeble, VMD: U.S. FMD Preparedness (p. 7):
A veterinarian who is on staff with U.S. Senator Kirsten Gillibrand (D-NY) details the programs and funding sources that the federal government would kick in if a Foot-and-Mouth Disease outbreak hits the U.S. Basically, to pay for costs of killing all livestock within designated radii from FMD infection sites, the federal government would have to borrow a lot of money. Further, the only indemnification appears to be for loss of livestock. Any crippling of rural economies or dairy-related businesses would not be covered by existing programs.

Reviewing Teat Dip Germicides (p. 7):
Writer/dairy farmer Jan Shepel discusses issues concerning traditional bovine teat dips, such as iodine-based products.

Obreza Trucking Ties Together Farmers, Handlers … and Past to Present (p. 8-9):
Writer Paris Reidhead visited the Richard OBreza Trucking, Inc. business near Mohawk, New York. This well-run milk hauling firm picks up milk from 200 farmers in east-central New York State, serving a number of dairy marketing firms. President Matt Obreza answers many questions in profiling the firm’s operations and philosophy.

Empire Specialty Cheese: Test Runs Soon. Unpaid Property/School Taxes Loom (p. 9):
Writer Nate Wilson revisits Empire Specialty Cheese’s belated attempts to start making cheese at a new plant in the western tip of New York State. It appears that the firm is about to start “test runs” of product. The firm owns is approaching the two-year mark for unpaid property and school taxes, and is about $90,000 in arrears.

Northeast (Particularly New York State) in Milk Marketing Chaos (p. 10):
What a mess! Following a spring/summer of “dumped” milk and dairy farmers losing their markets, the Northeast federal milk order features some farmers receiving prices way below the Statistical Uniform Price and one handler invariably late in its payments to producers.

Better Foods Require Better Milk (p. 11):
Writer Ed Zimmerman offers his perspective on changing consumer food preferences that demand a new approach to food production and marketing … including dairy! Interesting survey of food industry trends from this long-term food marketer.

WI’s Liberty Milk Failure Leaves a Big Mess (p. 11):
In December 2014, the small Liberty Milk co-op in Wisconsin went into receivership and ceased business. Court officials are trying to sort out the mess, which is compounded by lack of records.

Leader of USDA Organic Program Subject of Ethics Investigation (p. 12):
Co-director of the Cornucopia Institute, Will Fantle, details allegations and formal complaints made against Miles McEvoy, head of USDA’s National Organics Board. Allegations include McEvoy’s bending rules on approving synthetic substances in organic foods and intimidations of board members.

Past Month’s Prices: Butter Rebounds, Cheddar Flat, NFDM Drops (p. 13):
Pete Hardin reviews the past month’s dairy commodity price and production/demand trends. Butter is where the strength is in dairy commodities, despite the likely price drop around Thanksgiving. Bet on butter in 2016. Meanwhile, fortunes for nonfat dry milk and the rest of the dairy protein powder complex look bleak.

NC Sale Averages $2,410/Head (Mostly Crossbreds) (p. 14):
The Nov. 3 herd dispersal of Dean Ross in North Carolina brought surprising results. Bidders drove up prices of these milk cows and bred heifers, paying top dollar (just over $2,400) per head. Many of the animals were Holstein/Jersey crosses – which yielded a 3.95% butterfat test. Dairy farmers are paying good money for good genetics that produce butterfat.

Animal Welfare: “Comply or Else” Dictates to Producers (p. 14):
Dictates by some dairy groups are going too far. In New York State, we’re hearing that DFA field staffers are telling producers they must join and follow the F.A.R.M. animal welfare protocols, or else those farmers could lose their milk markets. That’s coercion. In the Southeast, Dean Foods is telling producers they must keep record books listing drug treatments for individual cows.

CEO Gallagher Boasts DMI Created All McDonald’s Dairy Products (p. 14):
What a phony blowhard! Recent comments by Dairy Management, Inc.’s CEO Tom Gallagher claim that his organization is responsible for developing all dairy products sold at McDonald’s.

Brazilians tactics threaten U.S. food & beverage industries (p. 15):
Pete Hardin goes after the Brazilian owners of Anheuser-Busch, Kraft/Heinz, and JBS, SA for their brutal tactics. The Obama administration is allowing Brazilian interests to change the complexion of the U.S. food and beverage industries.

Proposal: 3 FMMOs, 2 classes of milk (p. 15):
Pete Hardin laid out a simplified, common-sense proposal for future federal milk orders. That proposal: 3 federal milk orders – one east and one west of the Continental Divide, plus Florida; 2 classes of farm milk (all but butter-powder in Class I, common butterfat value for both classes); no Class 1 pooling requirements; handlers pay half of documented hauling costs; no value for whey in formulas; component (protein, milk fat) pricing; component pricing; and mandatory payments schedules.

Move to Kansas? This Kansas Dairy Farm Family Wants O-U-T! (p. 16):
Meet Laurel and Tim Iwig. They milk cows and operate a small dairy processing plant near Topeka, Kansas, supplying three dairy stores with fluid milk, ice cream and butter. But since the Iwigs cannot market to the only farm milk buyer – DFA – extra milk, they’re forced to milk only about 35 cows. Their business plan – with son Samuel studying dairy science and desiring to pursuing a career milking cows – won’t work. So despite all the hoop-la about dairy farmers moving ot Kansas to help fill an intended new dairy plant at Garden City, the Iwigs want out. They hope to move to Wisconsin, where they’ll welcome more than a single, dictatorial buyer for their milk.

October 2015 Issue No. 435

Inside this month’s issue …

Butter Price Gyrations Beg Rational Explanations (p. 1):
During the past three weeks, Grade AA butter prices traded at the Chicago Mercantile Exchange have zoomed to an all-time peak ($3.1350/lb.) and then dropped by nearly $.80/lb. Pete Hardin takes a long look at butter price events and other market trends
Click Here.

June-July 2015: $4 Million Grand Larceny by Northeast “Cream Separators”(p. 1):
Remember all the “dumped” milk in the Northeast in June and July 2015? The Milkweed estimates that 1.2 million lbs. of butter “disappeared” in that dumping. Our story of the month.

Earlier Reports of TPP’s Death Appear Greatly Exaggerated (p. 2):
Nate Wilson writes an update of the surprising events that came together to create the 12-nation, Trans Pacific Partnership trade deal in early October.

Analyst Finds Few TPP Benefits for U.S. Dairy Farmers (p. 2):
Penn State dairy educator Matt Haan analyzes the recent TPP deal, looking for impact on U.S. dairy producers’ markets. Haan can’t find much in the way of positive results for our nation’s dairy producers.

Sept. 2015 Class III Price $15.82 – Class IV $15.08 (p. 2):
The headline tells the story for September 2015 manufacturing milk class prices in USDA’s federal order program.

August Milk Dumpings in Orders 1 & 33 Back to “Normal” (3):
Nate Wilson reports that, almost miraculously, there were no extra volumes of farm milk dumped in federal orders 1 (Northeast) and 33 (Mid-East). Farm milk supplies have turned tight in the Northeast, after months of “dumping.”

Empire Specialty Cheese – More of the Same (p.3):
Once again, the troubled Empire Specialty Cheese plant project in western New York State has missed a promised “start up” date. It’s mid-October and the NYS Dep’t of Agriculture & Markets cannot state that the Empire Specialty Cheese plant has passed needed inspections. One other problem: Empire is almost two years late for payment of school and property taxes – a looming obligation of more than $90 million.

Big, New Barrel Cheese Plant Starting Soon in Southwest Wisconsin (p. 4):
In 2015’s fourth quarter, owners expect that a 1.7 million lb./day capacity barrel cheese plant will start operations near Darlington, Wisconsin.

Wisconsin Milk Marketing Board Helping Push Cheese Curds’ Demand (p. 5):
The Wisconsin Milk Marketing Board (WMMB) is promoting cheese curd consumption on several fronts. Retail cheese curd sales are up 20% in the past year. That’s amazing. WMMB is also partnering with restaurant chains to boost curd sales.

TTNDFD is the Fiber Digestibility Lab Assay Method Most Preferred by Dairy Cows (p. 6):
Paris Reidhead profiles a new dairy nutrition analysis that better predicts dairy cows’ response to measures of fiber digestibility. The relatively new test, called “Total Track Neutral Detergent Fiber Digestibility (TTNDFD) opens a new chapter in measuring crops’ milk-producing capabilities.

California’s Newly-Emerging, Sustainable Organic Dairy Market (p. 7):
Writer Ed Zimmerman details the background and milk check-boosting results (about $8/cwt.) that were achieved when organic dairy producers in California marketed their milk commonly.

DFA Breaks Ground in Generous Garden City, KS (p. 7):
Chinese investors bailed out of the project. So only the last minute assumption of some $240 million in debt by the liberal taxpayers of Garden City, Kansas has allowed Dairy Farmers of America to break ground on a dairy plant project that’s grown in cost estimates to around $350 million. Nate Wilson how DFA is plunging forward on this project.

These Wisconsin Ag Bankers Speak Their Clients’ Language (p. 8-9):
Writer Jan Shepel profiles two agricultural bankers based in Brooklyn, Wisconsin. These bankers wear many hats, as moms, dairy farm family members, and ag lenders. Rene Johnson and Jill Uhe offer insights into the communications necessary between agricultural lenders and their clients.

NMPF: “MMP is function as it was intended.” (p. 9):
The Milkweed takes to task a string of recent comments by Jim Mulhern, CEO/President of the National Milk Producers Federation, about how USDA’s Dairy Margin Protection Program (DMPP) is working “as intended.” DMPP – cooked up by NMPF over almost four years – is widely scorned by dairy farmers as being completely worthless (like NMPF).

Sworn Testimony of Ralph Douglas White, June 18, 2015 (p. 10-11):
Plaintiffs’ lawyers in the long-running milk “powder mis-reporting case” recently submitted to the court a sworn statement by defendant DairyAmerica’s former sales manager. In that sworn statement, R. Douglas White detailed how for a long period, management of DairyAmerica submitted erroneous reports on weekly nonfat dry milk sales prices.

“Whistle-Blower” Tells All in Milk Powder Price-Misreporting Case (p. 11-12):
The Milkweed analyzes the sworn statement of R. Douglas White (see above) involving DairyAmerica’s management submitting erroneous weekly milk powder price reporting data to USDA.

DFA Closing Borden’s Cheese Plant at Plymouth, WI (p. 12):
DFA is closing the processed cheese plant at Plymouth, Wisconsin that has operated under the Borden’s label for many decades. DFA is a distant competitor in the processed cheese category – a category of cheese demand that’s shrinking.

Butter Up/Down, NFDM Price Rise, Cheddar Stagnant (p. 13):
It’s been a volatile past month for dairy commodities. Butter prices skyrocketed and then crashed. Milk powder prices are improving modestly.

Dairy Livestock Prices Generally Heading South (p. 14):
Prices for cull dairy cows, dairy bull calves, open heifers and Jerseys are all headed south for the time being. Declining prices paid in the beef industry, in tandem with lower farm milk prices, have taken the shine off most dairy livestock values.

Taking care of business at home … (p. 15):
The bloom is off the export rose,and the U.S. dairy had better starting finding novel ways to sell more dairy products to U.S. consumers. Pete Hardin offers several ideas, including: cheese curds, better butter marketing, direct-to-consumer cheese sales, A2 milk, and “Grass-fed” dairy products.

McDonald’s “Baked Mozzarella Sticks” Barely 50% Cheese (p. 16):
The Milkweed takes a close look at McDonald’s new “Baked Mozzarella Sticks.” We separated the cheese portion from the breading and found that the cheese totaled only 50.8% by weight of the total product. This product is a overpriced rip-off.

“Heifer-Plus® Boosts Percent of Female Calves (p. 16):
At World Dairy Expo, one of the exhibitors was “Heifer-Plus®. That firm sells small vials of a blue powder that slow down male sperm and boost the rate of female calves delivered to about 75% (or more). This product allows the farmer to use any semen he or she may desire for their cows.

September 2015 Issue No. 434

Inside this month’s issue …

Butter Better: McDonald’s to Quit Use of Margarine & Butter Oil (p. 1):
McDonald’s franchises will eliminate margarine and veggie oils, in a shift to higher-quality butter. Industry sources estimate that move will add at least 25 million lbs. of annual consumption for butter.
Click Here.

Butter Is, and Will Be, Dairy’s Price Driver (p. 1):
Strong demand for butter and high-milk fast products is driving up butter prices. And butter prices drive up farm milk prices … as well as retail dairy costs.

Sept. 30 Deadline for DMPP Sign-Ups (p. 2):
Dairy farmers have until September 30 to sign up for the 2016 Dairy Margin Protection Program (DMPP). Due to that program’s complete failed performance, Pete Hardin advises farmers to stay home and breed their “freemartins.”

“TPP Dead”; Canadians Seen as Prime Suspects (p. 2):
While the funeral has not been set, consensus is that efforts to create the Trans Pacific Partnership (TPP) – the world’s biggest “Free Trade” deal – are kaput. That’s good.

Butter Prices Strong, Cheddar Holding, Nonfat Powder in Septic Tank (p. 3):
The dairy commodity scene is mixed. Butter and cheese are fairly well positioned, but the dairy protein powder complex is a total mess.

China Looking More and More Like a Bubble (p. 3):
China’s economy is heading downhill. Several structural problems are present, including eroding stock market values, a real estate boom losing steam, and large quantities of non-performing debt held by banks.

Agri-Mark’s Bob Wellington Criticizes DMPP Feed-Cost Data (p. 3):
At last, a dairy co-op official has complained aloud that USDA’s Dairy Margin Protection Program is failing. Wellington cites mistaken feed cost data collected by USDA. Funny thing: Wellington’s stinging letter to USDA Secretary Tom Vilsack failed to mention the errors in calculating dairy producers’ milk prices by the “All-Milk Price.”

Judge Trashes Revised Proposed Settlement in Northeast Antitrust Case (p. 4):
Strike Two! Federal judge Christina Reiss threw out a second Proposed Settlement from lawyers in the sticky Northeast dairy antitrust case against DFA and Dairy Marketing Services. What’s next? To trial???

Drought & Wildfires: Just the Start of Eco-Disasters in California? (p. 5):
Pete Hardin projects that the current Drought and widespread wildfires in California are setting up the state for additional eco-disasters this coming wet season. Powdery dry soils and lack of vegetative cover raise the specter of severe erosion from burned-off acres. And that erosion could head into the reservoirs – reducing reservoir capacity.

Faraway Milk Displacing Local Milk at Dean’s Chemung, IL Plant (p. 5):
Milk trucks from Michigan, Indiana, and even Ohio are pulling into Dean Foods’ fluid milk plant at Chemung, Illinois. Local milk supplies are being bumped out of Chemung, resulting in higher hauling costs.

Organic Milk — It’s Not Just for Drinking Anymore (p. 6):
We welcome new contributor Ed Zimmerman’s first effort in The Milkweed. Ed, a veteran dairy and food marketer, details success and growth of food products (other than fluid milk) using organic dairy products.

“Mr. Holstein” Turns to Jerseys and Wishes He Had Done It Sooner (P. 7):
Writer Jan Shepel profiles dairyman Don Mielke of Menasha, Wisconsin. Mielke, who’s been dairy farming since he was 14, enjoyed many accomplishments in the Holstein breed, but has switched his 55-cow herd to mostly Jerseys.

Butter and Cream: Dairy’s Opportunity for Growth (p. 8):
One of our “Stories of the Month.”

Why is U.S. Importing Butter from Foot-and-Mouth Disease-Infected India? (P. 9):
One of our :Stories of the Month.

New Zealand Desperate to Unload (p. 9):
One of our “Stories of the Month.”

NEJM Spotlights Human Health Hazards Spawned by Herbicide-tolerance (p. 10):
Writer Paris Reidhead reviews recently published information in the New England Journal of Medicine about human health issues relating to use of Herbicides.

Monsanto’s Discredit Bureau (p. 10):
Paris Reidhead summarizes information revealed earlier this year about Monsanto’s activities to denigrate opponents of genetically-modified organisms.

Biotech Feeding Frenzy Follows NEJM Anti-GMO Paper (p. 11):
Following publication of a damning article by two scientists in the New England Journal of Medicine, writer Paris Reidhead tracks the “blow-back” from Monsanto and biotech interests against those authors.

Latest DFA Crapshoot: Big, New KS Plant Atop Declining Aquifer (p. 12):
Nate Wilson researches several questions about DFA’s new plant project in Garden City, Kansas. One key question: what about future water availability, as the underlying aquifer drops fast?

Empire Specialty Cheese Getting Closer … Maybe … just maybe! (p. 12):
Nate Wilson continues to bird-dog efforts to start a new cheese plant in the far western corner of New York State. More than one year after its original intended deadline to start cheese production, Empire Specialty Cheese may be close …

CME Butter Prices Far Stronger; NFDM Prices Up a Bit (p. 13):
Big gains in butter prices at the Chicago Mercantile Exchange in the past month are the buzz in dairy. Pete Hardin reviews commodity production and demand trends.

Dairy Livestock Prices Holding or Lower in Past Month (p. 13):
We survey recent dairy livestock price trends. Top-quality animals are holding their own, but values for just about everything else are down-trending.

Why is DFA Building an Ingredients Plant in Kansas? (P. 14):
Pete Hardin follow deeper into questions raised by Nate Wilson elsewhere in this month’s issue. Hardin explains that a lot of Chinese EB-5 money is probably involved. The U.S. State Department operates a program – EB-5 – that allows into this country foreign nationals who invest $500,000 (or more) in the U.S.

Dairy Farmers Should Not Feel Helpless (p. 15):
Yes, things are getting tough financially on many U.S. dairy farms. But Pete Hardin reviews some of these challenges and urges dairy farmers to not act helplessly, but rather fire up their organizations and elected officials to represent dairy farmers’ interests.

August 2015 Issue No. 433

Inside this month’s issue …

California's Heat, Drought & Low Milk Prices Slowing U.S. Milk Flow (p. 1):
Our "Story of the Month." Click Here.

Usual Experts’ Dire Milk Price Outlooks Not Fundamentally Based (p. 2):
Yes, farm milk prices are significantly below 2014’s record levels. But Pete Hardin doesn’t buy the bottom-end gloom and doom. The “experts” are missing the impact of California’s Drought on their forecasts.

July 2015 Class III Price $16.33/Cwt. – Class IV $13.15/Cwt. (p. 2):
July’s manufacturing class milk prices in the federal milk orders declined, tracking commodity prices.

USDA Announces Sept. 22 Hearing on Proposed CA Federal Milk Order (p. 3):
On September 22, USDA will convene what’s expected to be a multi-week hearing on proposals to create a federal milk marketing order for California. This move culminates years of frustration on the part of California dairy producers with their state-operated milk pricing system.

James Paul Eichstadt: 1953 – 2015 (p. 3):
We regret to print the obituary of colleague and friend Jim Eichstadt.

PA Ag Commissioner Warns of $8/Cwt. Milk Prices, Urges DMPP Sign-Ups (p. 4):
Scare tactics??? Pennsylvania agricultural commissioner Russell Redding warns that dairy farmers could face $8/cwt. milk prices, and that they’d better seek the protection of USDA’s Dairy Margin Protection Program (DMPP). We find Redding’s comments irresponsible non-solutions. If things are that bad, what else is Redding doing to protect his state’s dairy industry???

Hawaii TPP Trade Talks Come to Naught (p. 4):
The dozen nations working on the Trans Pacific Partnership concluded a late July meeting in Hawaii with no results. Nations’ sacred cows (so to speak) are probably blocking resolution of this matter for at least a couple years.

Genske’s August 4, 2015 Letter Scorches DFA Directors (p. 5):
California-based dairy farmer and Certified Public Accountant Gary Genske unloaded a multi-page letter on Dairy Farmers of America’s board of directors in early August. Genske scorned DFA’s financial audit that shows intangible assets and accumulated losses exceeding reported members’ equity.

Tough Times Down Under: Producers Unrest Targets Fonterra (p. 5):
With about 90% of the island nation’s milk under its control, Fonterra is the target of dairy producer frustrations and New Zealand milk price projections sink lower and lower.

Empire Specialty Cheese: Unpaid Property/School Taxes … (p. 5):
Writer Nate Wilson unveils the latest saga of Empire Specialty Cheese – the NJ-based Italian cheese firm that’s been delayed for one year in attempts to open its new cheese plant in western New York. Empire Specialty Cheese is a property and school tax delinquent.

High Components, Sturdiness & Longevity Among Traits Making Jersey Cattle a Hot Commodity (p. 6-7):
What’s driving the booming prices for Jersey dairy livestock? Jan Shepel interviews a wide range of livestock personnel to obtain a wide range of insights about why buyers want Jersey cows and heifers.

Jersey Gains Continue into Semen Sales (p. 7):
Sales of Jersey semen are far exceeding what would be needed to service female Jersey animals, both in the U.S. and abroad. That’s a clue as to just how popular Jersey genetics are for cross-breeding other dairy livestock.

New “Stacked” GMO Crop Protection Promises Greater Agri-Chemical Use (p. 8):
Paris Reidhead delves into what concerned scientists are saying about the potential for adverse results from increased use of herbicides and pesticides. New GMO crops are designed to resist multiple herbicides – which will result in far greater applications of agri-chemicals per acre.

Lawyers Delay August 7 Pre-Trial Hearing in Northeast Antitrust Case (p. 9):
Attorneys for both plaintiffs and defendants have submitted a new proposed settlement to the court in the long-running Northeast dairy antitrust case. This settlement is nearly identical to the one rejected earlier this year by presiding judge Christina Reiss. Expect more fireworks.

Beef Prices in Northeast Starting to Collapse … (p. 10):
In late July, prices for finished steers and culls started dropping about 20% in the Northeast. Consensus in the region’s industry was that the pending imports of beef from Brazil and Argentina are torpedoing those prices.

Foot-and-Mouth Disease Threats to U.S. Livestock Economy (p. 10):
Pete Hardin lists reason why USDA’s intention to allow imports of beef from Foot-and-Mouth Disease infected countries such as Brazil and Argentina constitute a very, very, very bad idea for this nation’s livestock producers, rural economies, and consumers.

Brazilian firms control majorU.S. food companies (p.11):
Expect some dirty dealing as Brazilian firms take control of major U.S. food companies. 3G Capital now controls Anheuser-Busch and Heinz-Kraft. At Heinz and Anheuser-Busch, 3G Capital has instituted 120-day payments schedules to suppliers. And JBS, SA – this nation’s largest processor of beef – is also Brazilian-owned. JBS will benefit from the imports of beef from South America to knock down U.S. cattle and dairy producers’ prices, Pete Hardin analyzes.

My book project … (p. 11):
Editor-publisher Pete Hardin is in the final stages of completing a book about the evils of recombinant bovine growth hormone. Batten the hatches …

Lost a best friend & right-hand man … (p. 11):
Pete Hardin remembers Jim Eichstadt’s unique talents. Jim, an important contributor to The Milkweed, passed away in early July.

Drought, Wildfires Devastating California (p. 12):
The many wildfires devastating California this summer are a logical extension of that state’s being deep into the fourth year of prolonged drought – the worst drought since some time in the 1500s. Agriculture must scrap to keep its limited access to water.

July 2015 Issue No. 432

Inside this month’s issue ...

Vilsack Drops Huge Bomb: Approving Beef Imports from FMD-Infeded Brazil & Argentina (p. 1):

Our story of the month by Jim Eichstadt. Read our story of the month here.

“All-Milk Price” DOESN’t Include Deducts! (p. 1):
The Milkweed finally wangled answers our of USDA regarding whether milk check deductis for things like marketing costs, milk hauling, promotion assessments, etc. are factored into the monthly “All-Milk Price.” To the best of our ability to interpret USDA’s anawer, the answer is No. Thus, the DMPP “safety net” program, which relies on the “All-Milk Price” as its income measure, is flawed.

Dairy Marketing Realities to Appreciate (p. 2):
Mozzarella demand is good and inventories are little, if any. Butter sales are good. Barrel Cheddar demand is good, and no foreign firms make barrel Cheddar. California’s future milk output is unknown, due to the Drought. Those factors are helping hold up U.S. farm milk prices.

Current Weak Area: Dairy Protein Powders (p. 2):
Except for high-end whey powders, the entire dairy protein powder market is glutted and is of concern due to the potential for lower prices.

Judge Sets August 7 Date for Pre-Trial Hearing (p. 2):
A pre-trial hearing has been scheduled for the Northeast dairy antitrust litigation by Judge Christina Reiss.

June ’15 Class III Price $16.72/Cwt. – Class IV $13.90/Cwt. (p. 2):
The headline tells the story for June’s manufacturing milk price classes in USDA’s federal milk order program.

Widespread Milk Dumping: Are Co-ops Pursuing “Last Man Standing” Strategy? (p. 3):
In the Northeast and Mid-East federal milk orders, large volumes of milk continue to be dumped, due to lack of plant capacity and lack of willingness by processors to take in more milk. What’s really going on??? Pete Hardin theorizes that big co-ops in those regions think that California milk production will tumble and they’ll be in an advantageous position to compensate for California’s shortfall of commodities. In the meantime, dummies running a certain co-op are paying big volume premiums, adding new members, dunning members for monthly marketing losses, and watching a director more than double his herd size. The big losers are small- and medium-sized dairy producers … who are viewed as expendable by some big co-op leaders.

Milk Dumping in Orders 1 & 33 Ramps-pp Dramatically (p. 3):
Writer Nate Wilson analyzes the volumes of farm milk dumped in the Northeast and Mid-East federal orders in May 2015.

David vs. Goliath: Saputo Tries to Block Lanco’s Cheese Plant Project (p. 4):
Last winter, Saputo Cheese sold its closed Hancock, Maryland cheese plant to resellers. Saputo’s lawyers failed to restrict the deed to that property to prohibit another firm making cheese there. Now Saputo is in court trying to stop a small cooperative that’s purchased the plant from making cheese to help its members find a market for their milk.

China & Russia Collaborating to Build 100,000pcow Dairy (p. 4):
Cow Comrades??? Plans to build a 100,000-cow dairy on the China-Russia border have been announced. Chinese will operate the dairy, Russians will provide forage and feed.

Genetically Engineered Crops Multiply Herbicide Use (p. 5):
Paris Reidhead delves into the data that shows reliance on genetically-modified crops has caused overall increased use of agricultural pesticides and herbicides.

USDA: History of Failed Foot-and-Mouth Disease “Regionalization” (p. 6):
Writer Jim Eichstadt details in five prior instances, USDA’s efforts to “regionalize” beef imports from nations that were infected with Foot-and-Mouth Disease have failed because of subsequent flare-ups of FMD in those supposed “safe” areas of the five countries. Beware!

Mid-June 2015 Crop Tour Reveals Mounting Corn Belt Weather Concerns (p. 7):
Writer Jim Eichstadt tracked crop conditions over a 2,000-milk trip through the heart of agricultural America in mid-June.

Dean Foods Among Investors Pursuing A2 Milk Corp. (p. 8):
A group of investors – from Australia, China, and U.S.’ Dean Foods – are chasing after a take-over of the A2 Milk Corp. of New Zealand. Interesting …

United Nations Codex Alimentarius Reviews rbGH at July Session (p. 8):
The United Nation’s food safety branch, the Codex Alimentarius, reviewed issues concerning residue levels of recombinant bovine growth hormone at its early July meeting in Geneva, Switzerland. The agency will deliberate maximum levels of residues.

Milk Powder Prices Weaker; Butter Holding, Cheddar Down & Up (p. 9):
The dairy commodity scene has uncertainty, but one thing’s for sure: prices for dairy protein powders are in the dumpster, since the world is glutted with product. All eyes are watching the impact of Drought upon California’s upcoming months’ milk production.

Grain Prices Shoot Up as Weather, USDA Crop Outlook Turn Sour (p. 10):
    Jim Eichstadt discusses the factors behind recent weeks’ upwards moves in grain prices.

Reuters Reports Monsanto’s Dicambia Intentions (p. 10):
    According to press reports, biotech giant Monsanto is planning to produce a Dicambia pesticide, since biotech controls for certain crop pests are less and less effective.

IARC Classifies 2,4-D Herbicide as Group 2B Carcinogen (p. 10):
    The cancer research baranch of the United Nation’s World Health Organization has classified the herbicide 2,4-D as a Group 2B carcinogen. That means scientific research considers 2,4-D a “likely” cancer-causing agent.

Responding Intelligently to Vilsack’s beef import insanity (p. 11):
    How to respond rationally to irrational behavior? Pet Hardin’s puzzling over that one.

Producers Beef Price Equity? Forget USDA! (p. 11):
    Pete Hardin suggests that beef producers say to heck with USDA and develop a private logo to signify U.S. born and raised beef products for consumers.

Mid-June 2015 Corn Belt Crop Tour Photos and Captions (p. 9):
    We feature crop photographs to accompany Jim Eichstadt’s mid-June survey of crops across the central U.S.

June 2015  Issue No. 431

Inside this month’s issue ...

Story of the month: USDA Approval of Brazilian Beef Imports Coming Soon?? (p. 1):

Contributor Jim Eichstadt sorts through media reports that the U.S. is about to allow imports of fresh beef from Brazil – a nation with Foot and Mouth Disease. Not pretty! Read our story of the month here.

May 2015 Class III Price $126.19/Cwt. – Class IV $13.91 (p. 2):
Both classes of manufacturing milk move up in May. Class III (cheese) milk will go higher in June, but Class IV (butter-powder) probably will not.

Despite Low Milk Prices, Dairy Livestock Prices Strengthening (p. 3):
Key livestock marketers report that prices for dairy livestock are stronger. Open heifers and good Jerseys of any age are particularly strong.

Is Today’s Holstein Bull Calf an Idol??? (p. 3):
Pete Hardin examines what’s behind the big premiums paid for dairy bull calves (vs. heifer calves) and concludes that such events are anti-husbandry. Bull calf prices are being driven by shortages of animals for beef feedlots. That short-term need is skewing values of young dairy animals. The pricey Holstein bull calf is posed as an idol, a symbol of dairy’s wider failed guidance.

January-April 2015 U.S. Butter Imports up 196% vs. 2014 (p. 4):
High U.S. commodity prices and a strong U.S. dollar are combining to attract larger volume of butter from abroad.

Avian Flu: Problems Creating Expanding Opportunities for Beef, Dairy (p. 5):
At two recent Wisconsin county dairy farm breakfasts, yogurt is being substituted for eggs on the menu. Why? Egg prices are through the roof and supplies are uncertain. No Response from USDA on Dairy Program Questions (p. 5): USDA personnel failed to respond, despite promises to do so, to a series of questions submitted by contributor Jim Eichstadt concerning the Dairy Margin Protection Program and impact of the 7.2% “sequestration” upon other farm payments programs. The DMPP is a fiasco.

More Free Trade Chickens Coming Home to Roost (p. 6):
Contributor Jim Eichstadt takes a wide-ranging look at various “Free Trade” deals and their impact upon U.S. agriculture.

What Meteorological Forces Caused Texas Flooding in May? (p. 7):
Paris Reidhead puts on his old U.S. Air Force weatherman’s hat and explains in detail exactly what forces of Nature were responsible for the incredible deluge of rainfall that hit Texas and the Southern Plains during May. Interesting …

Uebersetzig’s New Location, Shift to Organics Ensure Next Generation’s Farming Future (p. 8-9):
Writer/dairy woman Jan Shepel profiles a Wisconsin dairy farm family that’s made the transition to a new farm and to organic milk production. She explains how the higher, more stable tier of organic milk prices also helps a solid, planned transition to the Uebersetzig’s next generation of farmers.

40+ Year Perspective on the New York State Dairy Industry (p. 10-11):
Not a pretty story. Pete Hardin goes all the way back to his early 20s and details how repeated efforts by major dairy cooperatives to control producers in New York State have resulted in an irrational milk marketing situation. Hardin details the conspiracy hatched in the late 1990s between the predecessor organizations of Dairy Farmers of America and Dean Foods led to thousands of independent Northeast dairy producers having their milk markets taken over by DFA and Dairy Marketing Services.

Northeast Antitrust Case Squabbling Continues, Intervention Sought (p. 12):
Disagreements continue between several class representatives and their attorneys in the Northeast dairy antitrust case. In late May, the presiding federal judge received a submission from two former state agricultural commissioners (and ex-dairy farmers) to enter the case as class representatives, along with their lawyers becoming co-counsels.

Canadian Milk & Poultry Quotas a Political Football (p. 12):
Nate Wilson does a good job digging into Canada’s political battle involving that nation’s farm production quotas for dairy and poultry. On one hand, Canadians are told that they have to give up those quotas, to be embraced by the Trans Pacific Partnership. On the other hand, Canadians are tired of being dictated to by the United States on domestic matters.

Prices: Butte lips, Block Cheddar Stronger & Powder Still Stinks (p. 13):
The past month’s events at the Chicago Mercantile Exchange have seen cash butter prices decline, while Cheddar blocks and barrels are stronger. Nonfat dry milk is stuck in the basement.

DMPP: Farmers on the “givin’ list” … not on the “gittin’ list” (p. 15):
USDA’s new Dairy Margin Protection Program is a complete fiasco and waste. Pete Hardin apologizes for advising subscribers to sign up for the dairy “safety net’ that’s full of holes. Many dairy producers are concluding that the DMPP is taking money, not paying it out. USDA is unable to explain how the “All-Milk Price” is determined.

Four more years … (p. 15):
Pete Hardin announces his retirement plans. Goal: four more years. That’ll make 40 years of publishing The Milkweed. Much to write about in the next four years.

“Rex Block” Split Jet Stream: Global Weather Factor (p. 16):
Paris Reidhead explains the complicated weather events of the past month. Good stuff.

Big Difference in U.S. Drought Map: Six Wet Weeks (April 21 to June 2) (p. 16):
We contrast two spring 2015 U.S. Drought Monitor maps – “before” and “after” the May 2015 deluges hit Texas and the Southern Plains.

May 2015 Issue No. 430

Inside this month’s 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.

April 2015 Issue No. 429

Inside this month’s issue...

Dairy Industry Weighing Impact of Many Unknowns (p. 1):
The range of factors impacting futures dairy production and marketing trends right now is mind-numbing: from California’s Drought to Western Europe’s dairy farmers coming off milk quotas.

CA’s H20: SOL (p. 1):
California’s water situation has dramatically deteriorated during the past month. About two-thirds of the Sierra Madre mountain snowpack disappeared from early March to early April – much of that moisture evaporated rather than melted.

Hard to Gauge What’s Ahead with Dairy Commodities (p. 1):
The U.S. dairy commodity picture is unsettled right now. Cheddar and Grade AA butter prices have been relatively stable. Nonfat dry milk prices continue relatively weak. Watch California!

B-I-G Deal! Heinz & Kraft Foods = Kraft Heinz Company (p. 2):
H. J. Heinz and Kraft announced acquisition of Kraft Foods by the condiment manufacturer. The moo-la behind this deal: Brazil’s 3G Capital and investor Warren Buffett’s Berkshire Hathaway. Deal is contingent upon Kraft stockholders, who’ll get a big bonus out of the deal. The bigger picture? Desire of big global money to dive into U.S. food industries, before possible advent of major new “Free Trade” deals.

March 2015 Class III Price is $15.56/cwt.; Class IV is $13.80 (p. 2):
USDA’s Class prices for manufacturing milk basically flattened, after several months of declines.

New York State Milk Marketing Situation Faces Brutal Spring Flush (p. 3):
A lot of sick chickens are coming home to roost in New York State this spring. For the last year, the major marketer has been dumping milk. Heading into the spring flush, the state is awash in milk. Some handlers are terminating dairy farmers marketing arrangements. New York’s vaunted yogurt industry is producing less volume than anticipated. What a mess!

Kraft Suppliers: Beware of Dirty Cash Flow Games from New Owners (p. 3):
If financial practices at Anheuser-Busch are any clue, suppliers to Kraft Foods have reason to worry once the Kraft Heinz deal is completed. Brazil’s 3G Capital is behind the Kraft-Heinz marriage. 3G Capital took over Anheuser-Busch in 2008 and has put suppliers on a 120-day payments basis. Don’t worry: 3G Capital requires incoming financial obligations to be settled on a 30-day basis!

Judge Dismisses Proposed Settlement in Northeast Antitrust Case vs. DFA/DMS (p. 4):
On March 31, Judge Christina Reiss of the Federal District Court for the District of Vermont dismissed the proposed settlement in the Northeast dairy antitrust litigation. Reiss ruling stated that the Proposed Settlement was not in the best interests of the classes.

Animal Rights & Wrongs: PETA, HSUS, Mercy for Animals & FARM (p. 5):
The animal welfare agenda is front-burner for dairy. Animal rights groups are pushing more practices for dairy farmers to follow, and big dairy processors/marketers are caught in the middle. Meanwhile, National Milk Producers Federation is pushing hard for its FARM program – detailing animal treatment protocols backed up by inspections. But the animal rights’ agenda and NMPF’s demands are all the same: approaching suppliers with demands for on-farm practices.

Lowball “All-Milk Price” Undercuts Dairy Margin Protection Program (p. 6):
Read our “Story of the Month” here.

Canadian Milk Quota System to the in the Cross-hairs of World Trade Negotiations (p. 7):
Writer Nate Wilson details how Canada’s dairy farm milk quota and milk-pricing system are perhaps on life-supports. Canadian dairy producers have increased milk production only one percent in the past four or so decades, while the nation’s population has nearly doubled. MPC imports used in cheese and yogurt manufacture are killing demand for domestic farm milk.

Handlers Dump About 10 Large Dairies in NY (p. 7):
Private handlers have terminated about ten large dairy farms in New York State – a sign of that area’s disrupted milk marketing situation.

Kraft Foods’ Demised Retail Fortunes Track Back to Processed Cheese Swill (p. 8-9):
Pete Hardin offers a perspective on where Kraft Foods went wrong during the past 25+ years since Philip Morris Companies acquired the nation’s largest cheese marketer. From price manipulation at the old National Cheese Exchange to “dumbing down” processed cheese products with cheap dairy ingredients and fillers ... Kraft made all the wrong moves. Read what a former top-level Kraft cheese executive said!!!

Food Biotech Follies ... (p. 10):
Paris Reidhead details a recent fiasco for a Monsanto-inspired, pro-food biotech executive on a French television interview. The Monsanto guy first offered to drink Roundup (Monsanto’s herbicide), and then refused, telling the interviewer, “What do you think I am, an idiot?”

New York Times Writer: Why are We Guinea Pigs? (p. 10):
Paris Reidhead summarizes the recent column by Mark Bittman that appeared in the NYT. Following announcement that the World Health Organization’s cancer-research branch had declared glyphosate a likely carcinogen, Bittman asked why humans are subjected as guinea pigs for the array of chemicals and pesticides in our food and environment?

Milk Market Order Systems: Plain People on the Interstate of Commerce (p. 11):
Robert Wills, owner of Cedar Grove Cheese (Plain, Wisconsin), details his concern about the performance of federal milk marketing orders.

FMMO Reform: Fluid Milk Processors’ Perspective (p. 11):
Warren Taylor, co-president of Snowville Creamery (Pomeroy, Ohio) details the problems facing small-sized fluid processors due to inequities of the federal milk order pricing system.

OSHA Violations Cited as Clear Horizons Defies Dane County’s Default Notice (p. 12):
Contributor Jim Eichstadt reveals the latest events in the exploding, polluting dairy manure digester in northern Dane County, Wisconsin. County officials have issued a default of contract notice to the digester’s operator, Clear Horizons Dane LLC. But that firm’s lawyer basically denies any violations or problems in a recent letter to the County.

Chobani Yogurt Custody Hinges on Euphrates Cheese Ownership (p. 14):
Former spouses are at it again, battling in court in Manhattan over control of Chobani Yogurt. Recently, a hearing was held to determine ownership of Euphrates Cheese – a small feta cheese plant in eastern New York. The ex-wife of Chobani’s owner claims that he diverted money from Euphrates Cheese to start Chobani Yogurt.

The “Hardin Plan” ... Suggested FMMO Reforms (p. 15):
Pete Hardin let’s fly with his proposals for federal milk order reform, including: one class for farm milk, farm-point pricing, zero Class I shipping requirements and zero Class I pooling provisions, zero transportation credits, a “seasonal incentive program” with real teeth, only two federal orders – delineated by the Continental Divide, regular audit by USDA of the protein/fat content of fluid milk packages at retail, plus continued federal audits and rules for components and quality testing. Think about it.

U.S. Drought Beyond CA (p. 16):
The latest drought monitor map the federal government shows serious drought extending across major portions of the western two-thirds of the U.S. Serious stuff.

March 2015 Issue No. 428

Inside this month’s issue...

California’s Water Situation Worsens in Past Month (p. 1):
Read our story of the month here.

DFA Manufacturing/Distributing Imitation Cheese (p. 1):
The Borden’s division of Dairy Farmers of America is selling “Sandwich-Mate” – imitation cheese slices.

What’s Dean Foods Up To??? (p. 2):
The nation’s largest fluid milk processor isn’t hitting on all cylinders. Recent months’ revelations of internal Dean Foods’ documents show a desperate effort to boost margins and get a handle on accounts receivable (especially from Walmart).

Dean Foods: 2014 Loss, Little Cash on Hand (p. 2):
Preliminary reports from Dean Foods indicate a modest loss. But the company reported only $16 million cash on hand as of 2014’s end.

February 2014 Class III Price is $15.46; Class IV at $13.82 (p. 2):
Manufacturing class milk prices in USDA’s federal milk orders continue to fall, reflecting key commodities’ prices.

Collapse of Cooperative Marketing in Northeast, Mid-East and Southeast (p. 3):
Too much milk has caused milk-marketing chaos in many parts of the country east of the Mississippi.

USDA Requests Comments on FMMO Issues (p. 3):
USDA has requested a wide-ranging set of comments involving future operations and, indeed, continuation, of federal milk orders. Comments due April 13.

2014 Mozzarella Output was Dairy’s Shining Star (p. 4):
Last year, U.S. Mozzarella production hit an all-time record: 3.983 billion lbs. That’s an increase of 6.5% atop 2013’s total.

Good Question: What about “Reblends” and Monthly “All Milk Price” (p.4):
We try to answer a dairy farmers questions about the impact of dairy co-op marketing loss deductions (“reblends”) upon USDA’s calculation of the “All Milk Price” for the new “milk margin insurance” program.

Several Class Representatives Petition Judge to Replace Plaintiffs’ Lawyers in NE Dairy Antitrust Litigation (p. 5):
An unusual turn of events in the Northeast dairy antitrust litigation … Several lead plaintiffs have written the presiding judge, asking that their lawyers be replaced.

“The System” is Making Milk Irrelevant (p. 5):
Snowville Creamery owner Warren Taylor explains why dairy leadership’s conventional wisdom is taking the industry in the wrong direction.

Free Trade Update: China Using Foreign Investment Protections (p 6):
Contributor Jim Eichstadt takes a hard look at global trade negotiations. He offers many cautions about ongoing trade talks.

OIL, Corn & Milk: Three Commodities with Common Headaches (p. 7):
Pete Hardin explores the supply-demand & price headaches facing these three important industries. Emphasis on prodiction is killing prices.

Roundup Ready: Manure and Mother’s Milk … the Gyphosate Curse (p. 8):
Writer Paris Reidhead starts what will be at least a two-part series about the workings of glyphosate-type herbidices and their potential harm to human beings.

GMOs & Diseases” – A Transformational Presentation by Dr. Warren Porter (p. 9):
Pete Hardin widely summarizes information presented by Dr Warren Porter at the late February 2015 MOSES conference in LaCrosse, Wisconsin. Dr. Porter presented a wide range of human health issues relating to genetically-modified crops and their accompanying herbicides. He also reviewed other human health data involving agri-chemicals.

Clear Horizons Controversy Continues amid County’s Warning, Town’s Settlement (p. 10):
Jim Eichstadt continues with his series on the failing manure digester in the Town of Vienna (Dane County, Wisconsin). The latest: the operator has been given a letter from Dane County demanding a plan to improve operations within 30 days.

DMI’s Outlandish Executives’ Compensations Varied Dramatically Under IRS Reporting Rules (p. 12):
“Nontaxable benefits” one year, “deferred compensation” the next. Bonuses and “other compensation.” Pete Hardin tracks the ridiculously high salaries and compensation to top executives at Dairy Management, Inc. – the behemoth behind spending dairy farmers’ promotion check-off dollars.

Scenic Central Annual Meeting: Growth in 2014 (p. 12):
Pete Hardin reports on the annual meeting of Scenic Central Milk Producers – a 300-member Wisconsin dairy cooperative that operates with efficiency. Less than 1% of total revenue went to administrative costs last year.

Dairy Commodity Scene: Milk Powder Prices Weaken (p. 13):
Milk powder demand and prices are weak. But demand for cheese and butter seem seasonally okay.

Empire Specialty Cheese Misses Another Plant Start-Up Date (p. 14):
Writer Nate Wilson stays on the case of Empire Specialty Cheese’s continued failure to meet announced deadlines for start-up of its new (taxpayer subsidized) plant in western New York. Nest date? April 1, 2015. (April Food’s Day).

NJ Health Dep’t Slaps Empire Specialty Cheese (p. 14):
Writer Nate Wilson reveals what New Jersey health officials found during their inspection of Empire Specialty Cheese’s plant in Fairfield, NJ following a fire in October 2014.

Summary of comments to Scenic Central Milk Producers Annual meeting (p. 15):

February 2015 Issue No. 427

Inside this month’s issue...

Butter & Nonfat Dry Milk Prices Rebound Slightly (p. 1):
In late January, a surprising up-tick in prices for Grade AA butter and Grade A nonfat dry milk occurred at the Chicago Mercantile Exchange’s cash-trading. Butter inventors are seasonally light, and domestic demand good.. But milk powder inventories are bulging. Cheese prices at CME are relatively stable, and demand is good.

Early Feb. California’s Snowpack Water Content Extremely Low (p. 1):
We reproduce a chart that measures current and historic volumes of water content in California’s mountain snowpack. As of Feb. 4, current levels are tracking near all-time lows, as California enters its fourth consecutive of epic drought.

Unexpected, Late January Surge Propels CME Butter & Grade A Nonfat Prices (p.2):
Behind the scenes, what’s happening? Sources point to an giant, Asian conglomerate – Olam – as driving up recent butter and nonfat dry milk prices at the CME. Why? That remains to be determined.

January Class III Price: $16.18/cwt; Class IV at $13.23/cwt. (p. 2):
Manufacturing class milk prices in USDA’s federal milk order program continue following declines in key dairy commodities for January 2015.

Several Plaintiffs Disavow Proposed Northeast Antitrust Settlement at Jan. 29 Hearing (p. 3):
On January 29, at the Fairness Hearing for the Proposed Settlement of the Northeast dairy antitrust case, several main plaintiffs disavowed their attorneys’ proposed settlement and gave presiding judge Christina Reiss an earful of woes. One particular item that caught Reiss’ attention: failure to address defendants DFA and DMS continued testing of non-members’ milk samples. In turn, Reiss gave attorneys an earful.

2005 Events Showed DFA/DMS’ Dirty Milk-Testing Games (p. 3):
In summer 2005, when DFA/DMS took over marketing milk for 300+ independent producers shipping to Farmland Dairies, four angry ex-Farmland shippers appeared on Lou Dobbs’ nationally televised news broadcast, complaining about lack of competition. What did DFA/DMS do? For August 2005, those producers all received low, 3.43% butterfat tests. A subsequent investigation by the Pennsylvania Department of Agriculture determined that the computerized lab tests hand been manually overridden at the DairyOne lab. So much for free speech!

Three Dairy Cooperatives Petition for California Federal Milk Order (p. 3):
Californians have given up on their state milk pricing system. Three major dairy cooperatives operating in the Golden State have petitioned USDA to start the legal process to create a federal milk order for California.

DMI & MilkPEP Blowing Smoke on “Get Real” Initiative (p. 4):
Dairy’s two biggest milk promotion groups – Dairy Management, Inc. and MilkPEP – announced a counterattack to defend milk’s demised image. Can’t these clowns do better than ring little cow bells?

DMI CEO’s 2013 Compensation Jumped 37.7% (p. 4):
Just released salary information from IRS Form 990 shows that Dairy Management, Inc.’s CEO Tom Gallagher enjoyed total compensation of $1,263,507 for 2013. That figure represented a 37.7% jump from his 2012 compensation package.

Fonterra Misses Deadline for Renewing U.S. Cheese Import Licenses (p. 5):
Contributor Jim Eichstadt reports that NZ’s Fonterra geniuses failed to file paperwork to renew their 2015 U.S. dairy import licenses. The report details just one mistake in our long-running series of reports on mistakes by Fonterra.

Too Much Manure Is a Pollutant: Federal Judge Rules Against WA Dairy (p. 5):
A federal judge has ruled that a Washing State dairy’s storage and spreading of manure constituted a pollution of surface and groundwater supplies. Now it’s on to trial for the Cow Palace Dairy. Three neighboring dairies face similar charges in a citizens’ class action lawsuit.

Un-Clear Horizons: Manure Digester Mess Lingers as Officials Weigh Options (p. 6):
Contributor Jim Eichstadt follows up his story last month about the mismanaged, disaster-prone manure digester in northern Dane County, Wisconsin Problems and potential liabilities mount. Company officials told The Town of Vienna that they are bankrupt (without any such filing) and elsewhere express their possible interest in exiting the taxpayer-subsided project. But the Dane County Executive says not to worry.

Is Walmart Kicking Dean Foods’ Tires??? (p. 7):
Vendors doing business with 81 Dean Foods’ subsidiaries have been asked to submit detailed financial information about accounts … to BENTONVILLE, ARKANSAS. That city is the home of Walmart. What’s cooking???

Tim Joseph (Maple Hill Creamery CEO) Explains Company Mission (p. 8):
Paris Reidhead interviews the CEO of Maple Hill Creamery – an organic, all-grass dairy processor.

Almonds Symbolize California’s Demand on Scarce Water Resources (p. 8):
California has nearly 1 million acres of almond tree groves. Doing the math shows that each almond requires about one gallon of water. At the start of the state’s fourth year of epic drought, agriculture faces some tough decisions over water allocations.

Questions & Answers: Tim Joseph – Maple Hill Creamery (p. 9):
Questions/Answers with the CEO of Maple Hill Creamery.

Feature story – A2 Milk: Golden Opportunity for Dairy (p. 10):
Read our story of the month here.

U.S. Imported Butter in 2014 from 9 Nations with Foot-and-Mouth Disease Problems (p. 11):
Why would the United States government allow imports of butter from nine different nations that have festering Foot-and-Mouth Disease problems?

Wisconsin Farmers’ Union Rejects “Organic Check-off” (p. 12):
Will Fantle of the Cornucopia Institute details how the Wisconsin Farmers’ Union delegates voted down support of the proposed “Organic Check-off.”

Weekly Dairy Cow laughter Totals Edging above Last Year’s Pace (p. 13):
By a nose, weekly USDA data through the week of January 24, 2015 shows dairy culls are just 3,300 ahead of 2014’s first four weeks.

On the farm, don’t let low prices spook you (p. 15):
Pete Hardin urges patience ss several very important events play out in 2015’s first quarter. Weather in Oceania and California, plus beef prices, are among the key factors to be watching.

Why not address farm milk over-production??? (p. 15):
Instead of dumping tanks of milk and assessing farmers’ milk checks, why don’t dairy buyers start signaling how much milk is needed … and let producers act accordingly?

2/4/15: CA Reservoirs at 67% of Normal Seasonal Capacity, Water Content of Mountains’ Snowpack near All-Time, Historic Low (p. 16):
Goodness, California’s water metrics are horrid as the nation’s largest food-producing state enters its fourth straight year of epic drought.

China – Milk Powder Imports & U.S. vs. International Prices (both p. 16):
We reproduce and analyze two key dairy charts provided by University of Wisconsin-Madison dairy economist Dr. Mark Stephenson at the January 21, 2015 agricultural outlook conference.

January 2015 Issue No. 426

Inside this month’s issue...
Feature Story #1: Some Regions’ Dairy Marketing Descends into Chaos (p. 1):
One of our two “Stories of the Month.” Read it here.

Distinct Price/Demand Trends: Organic vs. Conventional (p. 1):
Look at the trend lines and the early 2015 prices paid. Organic milk sales are climbing significantly, while conventional fluid milk sales sag backwards. Pete Hardin estimates that by February-March 2015, high-end prices for conventional milk will be nearly three times as high as conventional dairy producers’ returns.

December 2014 Class III Price $17.82/cwt.; Class IV at $16.70/cwt. (p. 2):
Class III (cheese) milk prices in USDA’s federal milk order program tumbled by $4.12/cwt. Given present key commodities’ prices, there is another haircut coming.

DFA Sold Sulfamethazine-Contaminated Milk in August: Huge Recall (p. 3):
Two contaminated loads of farm milk from Beaver Creek Farm (Coopersville, MI) were marketed by DFA. A recall resulted. Firms’ with products in that recall include: Dannon, Dean Foods, Unilever, and Continental Dairy Facilities.

Northeast Antitrust Claims Filings by Producers Now Delayed Until May31, 2015 (p. 3):
Forget the Jan. 15, 2015 deadline for dairy producers to file claims in the Northeast Antitrust Settlement vs. DFA. That deadline is now May 31, 2015. The Jan. 15 date was impossible for the regional federal milk order’s personnel to meet requests for producers’ milk output histories.

Nose-Diving Milk Prices Will Reduce Dairy Livestock Values, BUT … (p. 3)
This article is a discussion of how falling milk prices will impact dairy livestock prices. Good news: the all-time peak cycle for beef should help undergird dairy livestock prices against collapse.

2014 Dairy Culls Lag 300,000 behind 2013’s Total (p. 4):
Do the math: some 300,000 milk cows are overdue for their passage through the Golden Arches.

Managing Your Dairy Operation in These Trying Times … (p. 4):
Here are some suggestions for coping with this rapidly arrived low milk price cycle. #1: Don’t panic.

Dairy Protein Powder Complex: Inventories Heavy, Prices & Demand Weak (p. 5):
Across the entire array, demand for U.S. dairy protein powders is light. And prices still have not apparently hit bottom.

CME Cheddar Prices Stabilize … for Now (p. 5):
Of late, cash Cheddar prices at the Chicago Mercantile Exchange have stabilized in the mid- to high $1.50s/lb. That’s good. But some in the industry are expecting further erosion, perhaps significant.

CME Butter Prices Fall, But 11/30/14 Inventories Are Light (p. 5):
Seasonally, USDA’s Cold Storage report shows relatively light butter inventories as of the end of November -- 100.9 lbs. That’s manageable. Domestic butter sales grew nicely during 2014, but exports dropped sharply in last year’s second half.

Co-ops Fighting Each Other: Mid-East Milk Market War Erupts (p. 6-7):
Amid a precarious supply balancing problem over the Christmas holidays, DFA was kicked out of Dannon’s Minster, Ohio yogurt plant. Michigan Milk Producers Assn. and Foremost Farms replaced DFA. DFA retaliated, involving access to Mid-East order fluid milk plant access. MMPC is hammering members’ milk checks with big holes in monthly PPDs.

Explaining FMMO PPDs & Dumped Milk (p. 7):
An anonymous industry dairy figure explains two emerging issues: Producer Price Differentials (PPDs) and dumped milk.

Feature # 2: Clear Horizons Manure Digester: Public Funds Wasted on Huge Fiasco (p. 8-9).
This amazing article of solid research and reporting by Jim Eichstadt is one of our two “Stories of the Month.” Read it here.

Grass-Based Organic Milk … Much More than Just a Niche (p. 9):
Paris Reidhead visits Paul and Phyllis van Amburgh, who produce organic, 100% grass-fed milk near Sharon Springs, New York. Paul also works in milk procurement for Maple Hill Creamery – a fast-growing small dairy processor in eastern New York. Brief Description of Maple Hill Creamery (p. 9): Paris Reidhead profiles the history of Maple Hill Creamery, which processes and markets 199% grass, organic milk.

All-Grass/Organic: Paul and Phyllis van Amburgh (p. 11):
The van Amburghs answer questions about their feeding and breeding programs in their all-grass/organic dairy farm.

New Zealand Facing Declining Moisture Situation (p. 12):
Writer Ken Rabas reviews current articles from “down under” about rapidly developing dry pasture conditions.

Founder Hamdi Ulukaya’s Position at Chobani Uncertain (p. 13):
Writer Nate Wilson summarizes what’s being reported about efforts to limit founder Hamdi Ulukaya’s responsibilities at Chobani Yogurt. Ulukaya’s style drove the firm nearly to insolvency earlier in 2014, major newspapers are reporting.

DFA Hitting a Lot of Serious Potholes Lately (p. 14):
If you believe what’s in The Milkweed, DFA has a whole bunch of serious problems; dumped milk, contaminated product recalls, and the money-losing, new milk powder plant at Fallon, Nevada. Word is that DFA CEO/President “Tricky Rick’ Smith is starting to shoot his generals.

Milk marketing chaos reigns (p. 15):
Pete Hardin discusses recent ugly events and poses some suggestions about wiser dairy marketing in the future. Example: Trash the notion that milk buyers are obligated to take all the milk in the bulk tank and find a home for it.

Dean Foods to Pocket 30-cent/Gallon Class I Price Drop in Midwest (p. 16):
We reproduce an internal Dean Foods communication detailing how the firm will not reduce milk prices in January 2015 to customers, despite a 30-cent drop per gallon in raw milk costs. Dean Foods failed to respond to questions posed about the authenticity of the memo and whether the practice was corporate-wide.

December 2014 Issue No. 425

Inside this month’s issue...

Transitioning from Dairy Producers’ Greatest Year … to Something Less (p. 1):
Farm milk prices are following the same downwards track as recent months’ dairy commodity trends. Looking beyond 2015’s first quarter, The Milkweed isn’t about to push the panic button for 2015. Weather events and strong beef prices are major factors that make predicting dairy price beyond 2015’s first quarter a guessing game.

Export-Heavy West Coast Dairy Cooperatives: Big Inventory Losses, Members’ Checks Assessed (p. 1):
In recent weeks, two major dairy cooperatives – California Dairies, Inc. and Northwest Dairy Assn. – have announced major deducts against members’ milk incomes. The deducts are to compensate for lost export sales and declining dairy inventory values.

October U.S. Dairy Exports Reflect Lower Values, Tough Competition (p. 2):
USDA data on dairy export activity for October 2014 shows big declines for both butterfat and dairy protein powders. But cheese mostly held is own, compared to Oct. 2013 numbers. Strong price-cutting by global competitors is seen in the dairy protein powder sector.

U.N. Forced to Cut Syrian Refugees’ Food Aid (p. 2):
Great demand for global food aid, coupled with scarce funds, has forced the United Nations to scale back December 2014 distribution of food vouchers for up to 1.7 million refugees from Syria’s Civil War who are in camps in neighboring countries.

November 2014 Class II Price $21.94 – Class IV at $18.21 (p. 2):
In USDA’s latest monthly manufacture price announcement, farm milk values are tracking dairy commodity prices … down.

Managing Year-End & New Year Dairy Farm Business Decisions (p. 3):
The Milkweed concludes its series on ideas for dairy farmers to legally minimize 2014 net income and push some expenses and income into the future.

U.S. Milk Powder & Cheese Exports to Mexico Often Price-Sensitive (p. 4):
The Milkweed analyzes several years’ data for dairy exports to Mexico. We report that milk powder sales are sensitive to prices. Meanwhile, cheese exports ot Mexico through 2014’s first ten months were 51.6% higher than 2010’s numbers. (Note: Severe drought in Mexico in 2011 and 2012 cut back that nation’s milk output.)

Dairy Protein Powders Analysis (p. 4):
We’re keeping a close watch on dairy protein powders. U.S. production of nonfat dry milk is up significantly, while Whole Milk Powder output is way down.

NMPF’s “FARM” Program Costs California Producers $1,000 Annually (p. 4):
Holy cow! The FARM program – into which NMPF is trying to force many dairy farmers – costs $1,000 per year in California.

U.S. Dairy Industry Faces Key Global Challenges in 2015 (p. 5):
Contributor Jim Eichstadt takes a close look at key areas of concern for dairy farmers in 2015. Many of those concerns focus on “free-trade” deals and USDA’s proposals to let in beef from Foot and Mouth Disease-infected nations such as Brazil and Argentina.

2014 Corn Harvest Lags in Wisconsin and Michigan (p. 6):
SDA’s latest data shows that the corn harvest in dairy states such as Wisconsin and Michigan is way behind historic levels. A slow-maturing crop and wet, cold fall weather are the culprits.

Cheddar Price Drops, Cheese & Butter Demand & Inventories Good (p. 6):
CME Cheddar prices have dropped in the past month. Butter prices are basically flat. Demand and inventories for both are in good shape for late 2014.

Judge OKs Northeast Antitrust “Fairness Hearing” for Jan. 29 (p. 7):
A proposed preliminary settlement in the Northeast dairy antitrust case will be subjected to a “Fairness Hearing” in federal court in Burlington, Vermont on January 29, 2015. At issue: settlement of charges against Dairy Farmers of America and Dairy Marketing Services that the two illegally conspired to reduce competition and underpaid regional farmers’ milk values. Empire Specialty Cheese Start-up Delayed Again (p. 7): Writer Nate Wilson is bird-dogging a sketchy New Jersey-based Italian cheese company’s efforts to complete a new cheese plant in westernmost New York State. Well over a million dollars of taxpayer funds are committed to the project … if and when it gets off the ground.

Details of Simplified Employee Pension IRA (SEP-IRA) (p. 7):
Tax accountant Ken Dundon (Corry, PA) briefly details one strategy to LEGALLY divert business income to a personal pension program. Pay attention to this one!

Immunocal® Contains Cell Health-Boosting Cysteine (a Whey Protein) (p. 8-9):
Read our “Story of the Month” here.

Major Brands Accused to Turning Health Food into Junk Food (p. 9):
The Cornucopia Institute has just published a long project that analyzes nutrition content, ingredients, and the healthfulness of over 100 yogurt products sold in the U.S. The full report is available at www.cornucopia.org)

El Nino and a North American Weather “Sandwich” (p. 10-11):
Paris Reidhead puts on his old Air Force meteorologist’s hat and details what was behind the late November blasts of cold that nailed many areas of the U.S. – particularly the Midwest, Plains, Southeast, and Northeast. Interesting stuff … now that some folks have finally stopped shoveling and shivering.

Remembering John Bunting (p. 14):
We reprint a memorial tribute to former colleague and friend John Bunting that was written by Paris Reidhead and appeared in November in Country Folks – a New York-based weekly farm paper.

Cysteine: junction of dairy, health & wellness (p. 15):
Pete Hardin digs into how cysteine (a whey protein) can boost cellular health and combat some forms of cancer. Hardin poses the dairy industry’s possible capability to recover more cysteine from milk (and whey) as an important opportunity to spotlight the value of milk and dairy products in human health and wellness.

Overproduction of milk must be directly addressed (p. 15):
As dairy commodity prices fall and inventories of dairy protein powders climb, Pete Hardin hit the nail on the head with comments that the signal needs to go out to dairy farmers that their marketers cannot wisely take all the milk that the farms want to produce. Hardin notes that beef prices offer a big tool to better align milk supplies with demand. Such decisions about saleable monthly milk volumes are best left determinations between producers and their milk buyers.

Fire Source at Empire Special Cheese HQ: “Illegal Hot Box (Smoker) (p. 16):
Another “Story of the Month” … this item – complete with Fire Department pictures – is hilarious, except for the fact that this New Jersey company was selling cheese “smoked” by burning waste paper and cardboard in 55-gallon steel drums inside their plant. Read it here.

November 2014 Issue No. 424

Inside this month’s issue...
Feature story: U.S. Dairy Exports Skid as Global Demand, Commodity Prices Cool (p. 1):
Read our story of the month here.

CME Cheddar Prices: Up/Down, Up/Down (p. 1):
The Cheddar price collapse on Nov. 11 was the second big down turn in the past month’s up/down, up/down cycle. The cheese industry is nervous about inventory values.

Alert: Dairy Farmers & Agribusinesses Must Urgently Contact Elected Officials Re: Section 179 Depreciation!!! (p. 2):
Unless Congress takes action by year’s end, U.S. businesses (including agriculture) will be knocked back to a $25,000 annual depreciation election for qualified purchases. In 2013, that amount was $500,000. Betting is that Congress will at least somewhat boost that depreciation election. If things don’t change, dairy farmers face the specter of getting a big tax bill for 2014 – their best year ever.

Downtrend Starts: Class III Price $23.82 – Class IV at $21.36 (p. 2):
The headline explains it all, regarding USDA’s Class III (cheese) milk and Class IV (butter-powder) milk for October 2014.

Whole Milk Powder Piling Up, NFDM Producers Unload at Cut-Rate Prices (p. 3):
U.S. inventories of Whole Milk Powder were nearly 25 million lbs. as of Sept. 30, 2014. Those inventories are bulging. Meanwhile, nonfat dry milk processors moved a lot of milk powder by offering steep discounts in September.

Strategize 2014’s Year-End Business to Minimize Tax Man’s Bite (p. 3):
Pete Hardin revisits the subject of advantageously reckoning 2014’s year-end financial strategies for dairy farmers.

NYS Yogurt Production in Big Decline, Counter to Politicians’ Boasts (p. 4):
Using data from New York State’s agriculture department, The Milkweed shows that state’s yogurt production for the first half of 2014 was 13.6% below 2014’s first half. Don’t worry: Governor Andrew Cuomo recently announced a plan to boost yogurt sales … feeding yogurt to inmates in state prisons and correctional facilities!

DMI Announces Strategy to Reverse Fluid Milk Declines (p. 5):
The nation’s dairy promotion “umbrella” group – Dairy Management, Inc. – recently announced a $500 million, multi-year strategy to boost fluid milk sales. Sounds impressive, but the strategic partners are actually few.

DMI’s Last Fluid Promo: Britney Spears Fiasco (p. 5):
The last big DMI fluid milk promotion – more than a dozen years ago – it flopped. Using Britney Spears posters in schools (just as schools were closing for the summer) was a fiasco.

Corn and Soybean Crop Updates Nov. 2014 (p. 6):
Contributor Jim Eichstadt reviews that latest data and trends in the grain markets.

U.S. Dairy Heifers Still Sailing to Russia (p. 6):
Shiploads of U.S. dairy heifers continue to sail to Russia, despite Putin’s ban on food imports. Building its dairy industry is a key part of Russia’s strategy to boost that country’s food production.

Too Much Milk! Marketers Worried About Plant Access, Discounted Prices (p. 7):
East of the Rockies, the current farm milk marketing picture is turning downright ugly, Pete Hardin reports. Already, excess loads are being priced at several dollars under prevailing monthly fmmo class levels. Uncertainty about dairy commodity prices leaves dairy plants leery about paying too much for farm milk supplies.

Let’s Turn Back the Clock with Barley and Corn (p. 8):
Writer Paris Reidhead traces a 150-history of grain acreage in the U.S., and shows how barley has atrophied. Paris details the many attributes of that wondrous grain.

Q&A: Warren Taylor Interview (p. 9):
More insights from Warren Taylor (Snowville Creamery, Pomeroy, OH) on strategies about feeding non-GMO crops to dairy animals.

Citizens Claim Wisconsin Failing Safe Water Drinking Act Oversight (p. 10):
In late October, several environmental groups filed a petition with the U.S. Environmental Protection Agency regarding allegations that Wisconsin’s Department of Natural Resources is failing to uphold precepts of the federal Safe Water Drinking Act. Kewanee County, Wisconsin is “ground zero” for this battle, as locals charge that more than 30% of local wells are polluted by nitrates or bacteria associated with livestock.

Wisconsin’s “Milk uber Alles” Policies Leaving a Dirty Trail (p. 10):
Pete Hardin reviews the dog-chasing-its-tail situation as Wisconsin state officials “grow” the milk supply because dairy plants don’t have enough milk. But the cheese plants’ capacity keeps growing. Water and air quality have been some of the victims in this scenario.

“Yo2Go” – New Concession Fare at NY State Fair (p. 11):
For the first time, New York State dairy groups offered a “yogurt bar” at the State Fair last August. A modest start for an excellent idea! Read the details …

Weird Weather in the Works? (p. 11):
Writer Paris Reidhead talks with experts about what many of us are discussing … the weather.

DFA Meeting in NYS: “FARM” Going Over Like a Pregnant Pole Vaulter (p. 12):
A recent DFA meeting in New York State had farmer-members angry about being forced to contract with the “FARM” program that specifies rules about animal treatment and premises design. DFA – the biggest member of National Milk Producers Federation – is running into a hornet’s nest of opposition. NMPF’s leaders declared at a recent meeting that 100% of all dairy farmers shipping to marketers participating in FARM must be in the program.

Oct. CME Butter Prices Drop over $1.00/lb., Before Modest Rebound (p. 13):
CME butter prices fell off their too-lofty perch in October. However, butter inventories remain reasonably good and domestic sales are solid.

DMPP Considerations Must Weigh Ever-Changing Price/Cost Realities (p. 14):
Dairy farmers considering whether to participate in the new Dairy Margin Price Protection Program run by USDA have many, many factors to review before the December 5, 2014 deadline for 2015 sign-ups. Pete Hardin wades through some of these considerations.

More criticisms of FARM (p. 15):
Pete Hardin gives both barrels (again) to NMPF’s FARM program. Why would dairy farmers sign a contract to allow a third party inspector to dictate animal treatment an premises design? Hardin wonders: when are dairy farmers going to tell do-gooders to “take a hike?”

John Bunting at Peace (p. 15):
Our long-time dear colleague and friend, John Bunting, passed away in early November. Pete Hardin writes: “John Bunting was one of the most amazing persons I have ever known.” Amen.

Republicans in D.C. must now govern … or else (p. 15):
Contributor Jim Eichstadt opines that Republican control of both elected bodies in Washington, D.C., the leadership mantle is on their shoulders and it’s time to lead after years of monkey-wrenching the cogs of government.

DFA’s Oakhurt Dairy Selling “100% Dairy Free” Almond Milk (p. 16):
Gottcha! Pete Hardin smacks Dairy Farmers of America for a fluid milk subsidiaries selling “100% Dairy Free” Almond milk in Maine. Basically, DFA is saying, “Nuts to you” to its dairy farmer owners.

California’s 12 Biggest Reservoirs Await Fall-Winter Precipitation (p. 16):
California is at the historic start of its “wet season.” After nearly three years of record drought, California’s snowpack and reservoir levels are very, very low.

October 2014 Issue No. 423

Inside this month’s issue...

Feature Story: Milk Prices About to Tumble from All-Time Peaks (p. 1):
Read our story of the month here.

Almost Everything Going Wrong for U.S. Corn Producers (p. 1):
The nation’s corn producers face tough times: a bumper harvest awaits, rail car shortages are holding up sales of old crop, and prices are falling.

Dairy Producers: Strategize Financial Transition from 2014 to 2015 (p. 2):
We recommend numerous strategies for dairy producers as they transition from the financial best year ever to 2015’s uncertainties.

Dairy Farmers face HUGE 2014 Income Tax Obligations Unless Congress Boosts Section 179 Elected Depreciation (p. 2):
As the law currently exists, elected depreciation allowances for 2014 revert back to $25,000. For the past few years, that allowable amount had been $500,000. Unless Congress restores the $500,000 allowance by year’s end … Uncle Sam may be the primary beneficiary of 2014’s dairy farming profits.

Sept 2014 Class III Price $24.60/Class IV Price $22.58 (p. 2):
The September 2014 was the highest-ever Class III (cheese) milk price in the history of USDA’s federal milk order program.

Analyzing August 2014 U.S. dairy Protein Powder Output/Inventories (p. 3):
Dairy protein powder output is up-and-down, depending on export orders for specific items. However, inventories are piling up dangerously.

Signing Up for Dairy Margin Protection Program Looks Wise (p. 3):
Dairy farmers should take a very close look at signing up for the dairy margin protection program for 2015. If producers have the option to pay all premiums in 2014, aim high.

Warming to Dairy Producers: “Cheap” DDGs Pose Sulfur Toxicity Health Problems to Cows (p. 4):
Collapsed export demand for U.S. dried distillers’ grains (DDGs) has dropped costs to domestic users. Dairy farmers should beware of putting undue quantities of DDGs in their herd’s rations – for fear of deadly sulfur toxicity.

Vilsack Morning to Impose New Tax for Second Beef Promotion Program (6):
Behind the scenes, USDA Secretary Tom Vilsack has been involved with beef industry efforts to increase the $1/head assessment promotion fee tacked on sale of beef and dairy cattle.

2014 Corn Harvest: Crop Significantly Behind on Normal Maturity (p. 6):
In late September, USDA estimated that the maturity of the 2014 corn crop was about ten percentage points behind normal. The biggest problem of slwo-maturing corn is in the Upper Midwest and Plains states.

Retail Sales Data Track Chobani Yogurt’s Rise & Fall (p. 7):
Retail sales data for the past several years tracks the spectacular growth of Chobani Yogurt. But in mid-spring 2014, Chobani’s “Year over Year” sales growth turned negative – following the company’s reduction of serving portions and a price hike.

Wilson Dairy’s “Generation 3” Barley Sprouting System (p. 8-9):
Writer Paris Reidhead pays a return visit to the dairy farm operated by Ken and John Wilson near Hammond, New York. The Wilsons now use their “third generation” of barley-barley sprouting to sustain their 130 Holstein milk cows.

Question & Answer Interview with Ken Wilson (p. 8):
Ken Wilson answers questions about the operation of his latest barley-sprouting system and details the benefits to his milking herd.

Past Century’s Agricultural Depressions Stoked by Export Fever (p. 10):
Pete Hardin details how short-term agricultural exports have fueled undue optimism (and excess capitalization) by U.S. farmers, at various times over the past century. The bottom line: our succession of agricultural depressions/recessions have followed. What’s ahead????

Bad Idea: Forcing Dairy Producers into “FARM” (p. 11):
In response to recent videos of dairy cow abuses, National Milk Producers Federation is pushing a scheme to require all dairy farmers to comply with its “FARM” program. Bad idea!!!

Organic Valley’s Lawyer Takes the Helm at the OTA (p. 12):
Melissa Hughes – the attorney for the Organic Valley co-op – is the newly elected chairperson for the Organic Trade Assn. OTA is promoting an industry-wise promotion check-off scheme.

Recent Study Suggests Artificial Sweeteners Alter Body’s Metabolism (p. 12):
Scientists are discovering that artificial sweeteners negatively impact the human gut flora. Not good.

Cheese & Butter Prices Ease Back, But Demand Still Solid (p. 13):
In the past couple weeks, CME prices for Grade AA butter and Cheddar cheese have slipped from all-time peaks. However, inventories remain relatively light and domestic demand is solid.

Northeast Chaos: Fluid Milk Sales and Yogurt Output Sharply Decline (p. 14):
Northeast dairy marketers – especially in New York State – are facing burdensome supplies of farm milk. What’s wrong??? Regionally, fluid milk sales are way, way down (below national declines). And the much-ballyhooed New York yogurt industry has actually produced less yogurt every month for the past year, starting in September 2014. Why is NYS Ag & Markets hiding dairy statistics from 2012 and 2013???

Southeast Milk Litigation: Where is Dean Payment #3? (p. 14):
Writer Julie Walker details the legal hassles behind issuance of the third payment to qualified persons in the Dean Foods portion of the Southeast Antitrust Litigation.

Is China “Gaming” U.S. Grain/Dairy Pricing Systems??? (p. 15):
Pete Hardin lays out a black scenario comparing China’s habits as a major purchaser of U.S. grain and dairy. China’s “hot and cold” status as a buyer is threatening the value of U.S. assets devoted to these commodities. Coincidence? Or part of a darker plan to buy U.S. farm and food assets for dimes on the dollar???

Who’ll feed the refugees? What? (p. 15):
As dairy commodities pile up in the U.S. and western Europe, Pete Hardin contrasts that “abundance” with the dire food needs of the hundreds of thousands of refugees being created by civil conflict and natural disasters. How to collect financial resources to acquire and properly distribute dairy products and food to those facing hunger?

“Tote” Label Tracks Milkfat/Salt Concoction from NZ’s Fonterra to Kraft Foods (p. 16):
We reproduce the label from a 2200-lb. “tote” shipped from NZ to Kraft Foods in the U.S. This amalgam of milkfat and salt is designed to end-run U.S. tariffs. Different circus, same clowns … Fonterra selling “stuff” to Kraft Foods.

“Understanding Dairy Markets” – An Online Gold Mine of Dairy Data (p. 16):
Contributor Jim Eichstadt details a Web site created by the University of Wisconsin-Madison dairy economist Dr. Brian Gould. That tool allows interested persons to generate their own insightful dairy data.

September 2014 Issue No. 422

Inside this month’s issue...

Cheese/Butter Remain Seasonally Strong, Milk Powder Sector Collapsing (p. 1):
Dairy commodity prices are going in two directions at once. Domestic shortages of cheese and butter are propelling those commodities to peak prices. But the bottom has collapsed out of the U.S. milk powder sector, as export demand has seriously eroded.

Beef Imports from FMD-Infected Nations??? Vilsack Endangers U.S. Livestock & Food Supply (p. 1):
In a page 1 editorial, Pete Hardin labels USDA Secretary Tom Vilsack a “dangerous ignoramus” and calls for his removal from office. What did Vilsack do? He’s back with two proposals to import beef from Foot-and-Mouth-Infected Argentina. Hardin concludes that Vilsack is a poor steward of the nation’s livestock and food supply, for repeated proposals to import beef from FMD-infected nations.

Beef from FMD-Infested Argentina After 10/28/14? (p. 2):
Contributor Jim Eichstadt has discovered that an August 28 announcement by USDA means that beef from the Patagonia Region of Argentina may start entering the U.S. in late October. Argentina has a Foot-and-Mouth Disease problem.

August 2014 Class III Price Announced at $22.25, Class IV at $23.89 (p. 2):
Class prices for USDA’s federal milk orders are up again for August.

Russian Embargo Disrupts Global Trade; U.S. Dairy to Feel Shrapnel (p. 3):
Russia’s embargo of dairy and food products from the EU nations, the U.S. and Australia has disrupted normal commerce in the global dairy industry. Since the U.S. has not set any dairy products to Russia since some time in spring 2010, the impact on this nation will be indirect. But high butter and cheese prices here will draw distressed global products.

New Russian Banking Sanctions Threaten Swiss Dairy Export Hopes (p. 3):
Banks in Switzerland handle about 80% of Russia’s oil industry banking. Swiss authorities have now announced sanctions against five Russian banks and their Swiss subsidiaries. Take that, Putin!

Chinese Dairy Imports Above 2013, But U.S. Market Share Declining Sharply (p. 3):
Trade data show China’s diary commodity imports for the first half of 2014 are significantly ahead of 2013’s first-half numbers. But the U.S. is finding it hard to maintain exports. Our prices have increased during 2014, while global market prices have generally declined. The U.S. milk powder sector sees prices declining sharply.

Nice Holstein Herd Brings Nice $$$ at Wisconsin On-Farm Auction (p. 4):
The Milkweed attended the August 25 herd dispersal of Richard and Paulette Keene near Barron, Wisconsin. Their well-tended herd averaged about $2,250 apiece for the 100+ milk cows.

DFA Dumping Milk, Reblending Losses from Northeast Members’ Checks (p. 5):
Hard to believe, but Dairy Farmers of America has been dumping large volumes of milk in the Northeast in June and July. DFA is blaming Chobani Yogurt for reducing milk intake at that company’s upstate NY yogurt plant. But the story goes far deeper than that. DFA smacked members’ milk checks with a 15-cent/cwt. marketing loss assessment for July deliveries. More to come, The Milkweed projects …

WMP & SMP Exports/Production Way Down (p. 6):
Due to decreased global demand, U.S. production of Skim Milk Powder and Whole Milk Powder has declined from early monthly totals. WMP is piling up in warehouses, according to USDA data.

Questions/Answers with AMPI Butter Guru Jim Walsh (p. 7):
With commodity butter prices at a few cents below $3.00/lb., one of the nation’s most respected butter marketing professionals answers some “buttery” questions from The Milkweed.

Empire Specialty Cheese: See You in September? (No Way) (p. 7):
Writer Nate Wilson takes another look at the lack of construction at a cheese plant in western New York State that, early last June, was promised to be completed this month. What with all the grants promised by various government agencies, there’s a big embarrassment brewing here.

Good Dairy, Better Dairy … GREAT Dairy! (p. 8):
Pete Hardin reviews the many changes in descriptors on dairy product packages. Consumers want more information about what’s in their dairy products and how they’re processed. Where is the industry headed???

Feature Story #1 – USDA Proposes Beef Imports from FMD-Infected Argentina as U.S. Cattle Numbers Plummet (p. 9):
Jim Eichstadt dishes out the dirty details of USDA’s latest proposals – as U.S. cattle numbers slide to the lowest level in 60+ years – to import beef from Foot-and-Mouth Disease-infected nations. Read all about it here.

Impending Drought? Let’s Fight Back! (p. 10-11):
Writer Paris Reidhead makes a wide-ranging review of science involving moisture and crop issues. Modern agronomy and seed practices make major U.S. crops more susceptible to drought damages.

Artisan WI Plant Quits Raw Milk Cheese Output, Due to FDA’s Confusion (p. 12):
Uplands Cheese Company – an award-winning business – has quit making raw milk cheeses. Owner Andy Hatch cites confusing rules coming from FDA about a variety of issues, including wooden aging boards, for his decision to quit producing a popular raw milk variety.

Feature Story #2 – R-CALF USA’s Bill Bullard Provides Insights on Critical Issues Facing Cattle Producers (p. 12-14):
Read our second story of the month here.

Strange: Butter Prices Soar, Cheese Strong, Powder Prices Nose-Dive (p. 13):
Pete Hardin analyzes the ups and downs of the current dairy commodity scene. Export demand has hammered the milk powder trade.

Dairy at the convergence of nutrition, wellness and health (p. 16):
Intelligent dairy farmers and marketers can be at or near the head of the parade that links nutrition, wellness and health. The linkage of good dairy nutrition gains increased scientific backing. But dairy must do much more than just repeat the same-old, same-old mantras about milk and health.

Time to cull a failed USDA Secretary (p. 15):
Pete Hardin beats up on poor Tom Vilsack again.

CA’s H2O Supplies Dire, Entering 3rd Year of “Worst Ever” Drought 11 Biggest Reservoirs 20.5% of Capacity, Restrictions on Well Drilling (p. 16):
Using recent reservoir capacity data from the California Department of Water Resources, Pete Hardin calculates that the state’s 11 biggest reservoirs are only at 20.5% of their full capacity. Meanwhile, state legislators have passed a bill implementing stricter oversight of drilling wells for water.

USDA Rolls Out Dairy Margin Protection Program Details (p. 16):
USDA has released information for dairy farmers who wish to study the new federal milk program. The program is based upon levels of margins over production costs.

August 2014 Issue No. 421

Inside this month’s issue...

Feature Story: Top Springers’ Prices Climb to $3,600 at CA, MN Auctions in Late July (p. 1):
Read our “Article of the Month” here. The headline says it all. The surge of dairy livestock prices has pegged top springers at $3,600 in two major dairy auctions (Escalon, CA and Zumbrota, MN) in late July. Dairy livestock values have climbed a50-175% (or more) in the past year.

“Milk Prices Might Crash, Lock in Your Margins” … and Other Baloney (p. 1):
The experts have totally missed the 2014 run-up in farm milk prices, but keep bad-mouthing future milk prices. We advise dairy farmers to “ride the market” and not sign fixed-price deals for upcoming months’ milk prices.

Butter Output & Inventories Down: Recent Prices Peak & Fall Off Peak (p. 2):
Butter cash market prices climbed above $2.60/lb, before retreating back to the $2.40/lb. range in early August. Production is down. Inventories are very tight. Looks like we’ll see imports entering the country, as recent months’ high U.S. prices preclude most exports.

July ’14 Class III Price Announced at $21.60 – Class IV at $23.78 (p. 2):
Prices for Class III (cheese) and Class IV (butter-powder) milk increased slightly in July, compared to June 2014 prices used in USDA’s federal milk order program. Strengthening butter prices get credit for those increases.

B-I-G Deal: Agropur (Biggest Canadian Dairy Co-op) Buys Davisco (p. 3):
Davisco Foods International now flies the Maple Leaf flag. Davisco – the leading U.S. firm developing whey and whey by-products – was transacted for an unannounced price on August 1. Interesting …

Watch Build-Up of U.S. Whole Milk Powder Supplies (p. 3):
Global dairy protein powder prices are sliding backwards. U.S. dairy manufacturers have geared up to produce more WMP in the past year. But their warehouses are filling with unsold product in the past two or three months. Watch this one!

NY Dairy Farmer “Got the Shaft” from Dairylea on PI Count (p. 4):
North country dairyman Don Dana put up a big sign on his barn alongside State Route 11, near Moira, New York. That sign reads: “Dairylea Cooperative got the gold mine. I got the shaft.” Dana is irked because Dairylea deducted $8,000 in quality penalties the last month in 2013 he shipped to that co-op. Those penalties were due to alleged high “PI” bacteria counts. Funny thing: Dana received a “Quality Milk Award” from Cornell University in 2013 for having ten months SCC counts below 200,000/ml.

Northeast Dairy Antitrust Case: Lead Plaintiffs Opposed, So Judge Denies Proposed Preliminary Settlement (p. 5):
The Northeast dairy antirust case has fallen into legal limbo. Class Representatives (lead plaintiffs) informed their attorneys and court clerk in early July that they opposed the proposed settlement reached by attorneys for both sides that was submitted to the judge on July 1. The judge’s denial of the proposed settlement was scathing.

Five Pieces of the Weather/Crop Puzzle (p. 6-7):
Writer Paris Reidhead explores the scientific community’s expertise on the related events involving weather patterns and agricultural crops (particularly corn).

Russia: Biggest Supplier of Potash (Critical Fertilizer) to U.S. (p. 7):
As the U.S. and its allies in western Europe ratchet up the economic pressure on Putin’s Russia … and Putin responds with his own embargoes … a key fact in this interdependent world is that Russia is the biggest source of potash used by U.S. agriculture.

2014 Corn Outlook Cloudy After Roaring Start (p. 8-9):
Contributer Jim Eichstadt takes a long look at many key events in the current U.S. corn market. Those matters include: current crop conditions, weather matters, global market conditions … all compounded by USDA’s struggles to release details of the new farm programs that were belatedly passed by Congress in early 2014.

Grain Producers Face Much 2014 Farm Program Uncertainty (p. 9):
While USDA finalizes new program details for grain producers, Jim Eichstadt discusses what we do know about the new federal grain program. Details of the federal program are all the more important, due to sharp declines in corn prices and a bin-busting 2014 harvest.

Organic Dairy Production with the End in Mind (p. 10-11):
Colorado veterinarian Arden J. Nelson delves deep into the changes in milk composition over the past 50+ years. He details how the ration of Omega-3 acid to Omega-6 acid has been dramataically changed, due to cows consuming less forage and more grain in their diets. Nelson then presents information about improved dairy cow breeding when cows are fed diets enhanced with Omega-3s. Further, he lists the top 10 causes of human mortality in the U.S. – while noting six of those top ten are linked to low Omega-3 levels.

Corporate Influence Eroding USDA’s Organic Standards (p. 12):
Will Fantle of the Cornucopia Institute details a study of voting patterns by members of USDA’s controversial National Organic Standards Board (NOSB). While real organic farmers voted consistently to uphold strong standards, appointees with corporate backgrounds voted in favor of less strict oversight of ingredients and practices.

Empire Specialty Cheese Late Milk Payments (p. 13):
Writer Nate Wilson revisits the bad boys at Empire Specialty Cheese in western New York. Seems that Empire was late paying for May 2014 milk deliveries to the Amish producers supplying that plant. The New York agriculture department is watching this situation, following a complaint about late payments.

Sept. Start for New NY Cheese Plant? No Construction Permits Issued Yet (p. 14):
The “other half” of Nate Wilson’s reporting assignments this month. Empire Specialty Cheese is supposedly constructing a new cheese plant at the site of an closed meat packing facility in western New York. The project lined up numerous government grants – county, state and federal. As late as June 2014, a principle at Empire claimed the plant would be running by September 2014. But Wilson’s digging found that NO CONSTRUCTION PERMITS have even been issued yet for that project! Combined with late milk checks to its producers for May milk, Empire Specialty Cheese looks like a bunch of cash-flow challenged New Jersey creeps.

Proposed Northeast antitrust settlement: a crock (p. 15):
Pete Hardin gives both barrels (.10-gauge slugs) to the unfortunately drafted proposed settlement of the Northeast dairy antitrust case. What’s particularly strange: secretive clauses (not disclosed in written materials provided to potential claimants that disallow farmers filing for damages claims to sue the defendants (DFA, DMS) or their agents, subsidiaries, etc. for anything that was done prior to 2014. Now, why the secretive prohibitions against future lawsuits? Hardin goes on to detail how a series of investor LLCs in western New York – operating over the past dozen-plus years – have bought up dairy farmers’ mortgages and driven virtually every such farmer into bankruptcy! These LLCs have Dairylea Co-op’s DNA all over them, Hardin asserts. Worse yet: land grabbed from bankrupted farmers has frequently ended up in the possession of big dairies with special relationships with Dairylea/DFA/DMS.

Methane Digester “Blows Its Top” in Dane County, Wisconsin (p. 16):
A trio of methane digesters northwest of Madison, Wisconsin continues to have operating problems. The latest: one digester exploded and “blew its top” in early August. This event is just one in a long series of mechanical failures and broken pipes. Maybe taxpayers in Dane County are subsidizing a real stinker. What’s worse: USDA Secretary Tom Vilsack is moving ahead with long-intended plans to build methane digesters on many U.S. dairy farms.

July 2014 Issue No. 420

Inside this month’s issue...

Feature Story: Whiplash? Chinese Back Off Dairy Imports; May Sell Grain (p. 1):
Read our story of the month here.

U.S. Butter Inventories Light, Prices Shrink Exports (p. 1):
U.S. butter inventories are about 130 million lbs. lower than last year’s figure (as of May 31). U.S. prices are right around $1/lb. higher than Fonterra’s recent electronic offerings. High U.S. butter prices preclude butter exports.

Butter Basking in “Good News” Amid Rising Prices and Scarce Inventories (p. 3):
We take a wider look at the current dynamics of the U.S. butter market – including a tidal wave of favorable publicity.

Tracking Butter Imports in 2014 (p. 3):
The Milkweed starts tracking monthly butter import data (vs. year-ago). We’re watching government data for confirmation of the big slug of butter imports heading this way.

Chobani Yogurt’s Cost Per Ounce Climbs 30% in 2014’s First Half (p. 4):
With smaller cup sizes and higher prices per cup, Chobani has bumped up the cost per ounce of its yogurt by 30% just in 2014. Where is the price pressure point for consumer purchases.

Bilateral Investment Treaty with China Should Raise Red Flags in U.S. (p. 4):
Contributor Jim Eichstadt details how, on July 9, 2014, U.S. negotiators sat down with their Chinese counterparts to discuss a bilateral investment treaty. Some critics view such treaties as dangerous to the democratic process, because foreign nations and their corporations are exempt from the U.S. legal system under such treaties.

DFA/DMS Settle Northeast Antitrust Case: $50 Million (p. 5)
The big trial scheduled for July 8 in Vermont was delayed by a proposed settlement forged by opposing attorneys. Defendants Dairy Farmers of America and Dairy Marketing Services will pay a total of $50 million to defendants, from which court-approved attorneys’ fees and expenses will be deducted before the remaining funds are divvied out to eligible dairy producers. We include key excerpts from the proposed settlement agreement.

Arkansas Co-op Goes Belly-Up (p. 5):
The small Arkansas Dairy Cooperative Assn. is no more, as of late June.

Molasses Motivates Microbes … the Soil-Friendly Kind (p. 6-7):
Writer Paris Reidhead explores the emerging practice of boosting soil microbiota by addition of molasses. Molasses “feeds the little creatures” also.

Midwest Crop Picture Might Brighter than Last Year’s – Except in Minnesota (p. 7-8):
Contributor Jim Eichstadt shares his observations from a long, 2,300-mile trip through America’s agricultural heartlands in mid-June. (Hint: Minnesota is again the “Land of 100,000 Lakes.)

DMI/NDB/UDIA Officials Meet with WMMB Board (p. 8):
On June 17, national dairy promotion officials met in Wisconsin with the Wisconsin Milk Marketing Board directors and staff. Pete Hardin contrasts the entities’ differing styles of marketing U.S. dairy products. Advantage: Wisconsin.

Dairy Commodity Scene: Strong Prices Still Holding (p. 9):
At press time, CME cash prices for butter were in the high “230s” and Cheddar prices were just below the $2.00/lb. benchmark. Domestic dairy demand is good, and inventories of cheese and butter are light.

Cheese board fiasco: wooden heads at FDA (p. 11):
Pete Hardin blasts away at recent ridiculous dictates from FDA as that federal agency implements the Food Safety Modernization Act (FSMA). Overall, Congress has created a set of rules that challenge the IQs of FDA personnel to implement in the real world. Hardin details how many food safety problems are the fault of poor inspections by federal employees.

Grundy Center, IA: Same Field Mid-June 2014 & 2013 (p. 12):
Jim Eichstadt photographically contrasts 2013’s and 2014’s fortune for the same cornfield in Iowa’s corn country.

July 5: Hardin’s 1st cutting finally done! (p. 12):
At long last, weather permitted the harvest of Pete Hardin’s grass hay crop on July 5. Making first-cutting dry hay in the Upper Midwest this year has been near impossible.

June 2014 Issue No. 419

Inside this month’s issue...

Overall Market Confidence Sustains Commodity Prices During “Spring Flush” (p. 1):
Increased milk production in the Southwest and big losses in fluid milk sales in the Northeast have strained dairy manufacturing plant capacities in recent weeks, but the worst of the “Spring Flush” seems over. Marketers of distress milk are taking a beating on prices. But overall dairy commodity prices are relatively stable so far.

Butter “On the Water, Heading This Way” (p. 1):
Butter buyers are backing off orders, anticipating possible lower butter prices as shipments of butter and high milk fat products sail towards the U.S.

May ‘14 Class III Price at $22.57 – Class IV $22.65 (p. 2):
The manufacturing milk class prices for USDA’s milk order system for May 2014 each went backwards, predictably. But rising butter prices buffered the impact of lower Cheddar and nonfat dry milk prices in USDA’s formulae.

Several Regional Dairy Superpools Falling Apart … (p. 3):
In the Southeast, Mid-East, and Upper Midwest, regional dairy cooperative superpools have fallen apart or else are buckling under the strain of less disciplined movement of milk.

Canadian Dairy Quota System Under Pressure (p. 3):
Canada’s provincial milk quotas are under serious pressure from several angles: “Free Trade” deals, Chinese investors buying farmland and setting up milk processing plants … and just the simple fact that Canada’s milk production hasn’t kept pace with that nation’s consumer demand.

Prairie Farms Reports Massive Losses (p. 3)
The first couple months of Prairie Farms’ fiscal year yielded several million dollars in red ink.

Beef Product Recalls Raise Doubts about Competence as USDA Pushes Brazilian Import Proposal (p. 4):
Recent beef recalls in California and Michigan raise serious questions about the overall competence of USDA to adequately police meat safety. Meanwhile, USDA is mulling its proposal to allow beef imports from 14 supposedly “Foot-and-Mouth Disease” free states in Brazil.

NCBA Demands Brazilian Inspection Reports (p. 4):
The National Cattlemen’s Beef Assn. is demanding USDA stop withholding important information regarding recent review of beef handling procedures in Brazil.

Why USDA’s Screw-Ups Matter (p. 4):
Contributor Jim Eichstadt puts the pieces of the puzzle together: USDA’s failed domestic meat safety oversight and the foolish proposal to allow Brazilian beef into the U.S. If USDA can’t enforce our domestic meat slaughter and processing rules, how can USDA pretend that foreign nation’s meat safety practices are adequate???

Greek Yogurt Hits the Fan as Chobani Custody Battle Heats Up (p. 5):
Writer Nate Wilson will have you rolling on the floor in laughter at the legal antics in the mushrooming Chobani Yogurt custody battle between owner Hamdi Ulukaya and his former wife, Dr. Ayse Giray. In mid-March, Ulukaya recharted Chobani as a Delaware-based LLC – deep-sixing the prior corporate structure (Chobani, Inc.) Ululaya’s lawyers didn’t admit the corporate switcheroo until almost six weeks after the fact. Her lawyers charge fraud.

Say “Whoa” Before Feds go Hog Wild Building Methane Digesters (p. 6-7):
Writer Paris Reidhead presents a detailed explanation of the science and dynamics behind dairy methane digesters. Paris advises that serious consideration must be given to questions whether methane digesters really help solve greenhouse gas problems.

Feature Story #1: Extended Great Lakes Region: Future Global “Food Basket” (p. 8-9):
Pete Hardin puts traction to a fast-emerging reality: incredible global investment interest in farmland and food processing resources the extended Great Lakes Region – both in Canada and the U.S. Why? The Great Lakes Region has a unique set of resources: soil, moisture, climate, modern agriculture and food processing … plus political and economic stability. Read the story here.

Feature Story #2: Some Canadian Farm Papers Report Chinese Ag/Food Investments (p. 9):
A review of reporting about Chinese investments in Canada from articles written by two Canadian writers. Strong stuff … Read the story here.

Northeast Antitrust Trial vs. DFA & DMS to Start July 7 (p. 10):
A huge dairy antitrust trial is scheduled for jury selection on July 7 in federal district court in Burlington, Vermont. Pete Hardin digs deep into the issues that find Dairy Farmers of America and its subsidiary, Dairy Marketing Services, defendants in a $600-$800 million dollar legal fracas. Plaintiffs charge that the cooperatives unduly restricted access to Northeast fluid milk plants and they also underpaid regional dairy farmers for their milk. If plaintiffs’ damages claims are sustained by jurors, damages will be triples u under federal antitrust laws.

OTA’s Robo-Calls Irk Organic Farmers During Spring Planting (p. 11):
Will Fantle of the Cornucopia Institute details the public relations thrust behing the Organic Trade Association’s efforts to build support for an organic promotion check-off program. OTA is funding robo-calls soliciting organic producers’ opinions on the check-off. OTA snuck in such a proposal in recently passed federal farm law.

New Study: Conventional “Wis-dumb” on Saturated Fat Deeply Flawed (p. 12):
Writer Nate Wilson details findings of a recent published book tiled, “The Big Fat Surprise: Why Butter, Meat and Cheese Belong in a Healthy Diet.” This book – written by Nina Teicholz – traces the evolution of policies that scorned saturated fats in the diet, instead promoting vegetable oils and grains. Good reading!

Update on GIPSA Investigation of NY’s Empire Livestock (p. 12):
Nate Wilson offers more details about cattle trading irregularities by characters in Pennsylvania, including the owner of the Morrison’s Cove Sales Barn in Claysburg, PA.

April Dairy Products: Mozzarella, Cheddar & NFDM Up; Butter Down (p. 13):
We summarize April 2014 and January-April 2014 dairy commodity production totals, with analysis.

Dairy Producers; Don’t Get Panicked into Signing Futures Contracts! (p. 14):
The milk price decline from too-high peaks earlier this year has the “usual experts” telling farmers to sign fixed-price milk contracts to lock in their profit margins. These guys can sing only one misguided song.

Nearly 40 years of journalism invested … (p. 15):
Pete Hardin reflects on nearly 40 years of detailing the incompetence of major Northeast dairy cooperative leaders, as a lead-in to the big dairy antitrust trial set for federal court in Burlington, Vermont in early July. Hardin puzzles how many thousands of hard-working Northeast dairy farm families have been pushed off their farms by ruinous prices generated by the region’s curdled milk marketing system.

January-April 2014: U.S. Dairy Exports’ Prices Underperformed CME (p. 16):
Interesting! For the first four months of 2014, the price relationships between Chicago Mercantile Exchange monthly averages and the average price (per lb.) of U.S. exports of cheese, nonfat dry milk and butter reversed fortunes, compared to 2012 and 2013 prices. This year, monthly prices of these dairy exports ranged below CME cash market. One factor: increased advance commitment of export sales that tightened domestically available supplies in following weeks and months. prices.

May 2014 Issue No. 418: Our 35^th Anniversary Issue!

Inside this month’s issue...
Feature Story: Butter Looks Like Dairy’s Prime Price Mover in 2014 (p. 1):
Read our “Story of the Month” here.

California’s Water Woes Worsen: Snowpack Shrinks, Little Recharge of Reservoirs (p. 1):
From early April to early May, California’s water metrics worsened. Much of the snowpack disappeared, within little boost to reservoirs’ water levels.

Dairy Commodity Review: Butter Prices Strengthen, Cheddar & NFDM Slip (p. 2):
The dairy commodity scene features rising butter prices, offset by declines in cash values for nonfat dry milk and Cheddar.

China: Stiffer Rules for Milk Powder/Infant Formula Imports (p. 2):
China just announced stricter rules for imports of dairy protein powders and infant formulas. This move is probably part of a wider move to consolidate the infant formula industry in China.

April 2014 Class III Price Sets Record: $24.31 (p. 2):
The April 2014 cheese milk price for USDA’s federal milk order system peaked again … at $24.31/cwt.

Great Lakes States’ Corn Planting Off to Slow Start (p. 3):
Cold, wet spring weather conditions have significantly slowed down corn planting in the states around the Great Lakes.

Public Comments Blast USDA’s Brazilian Beef Import Proposal (p. 4):
We review the comments submitted to USDA on the proposal to open up 14 states in Brail for imports of chilled and frozen beef to the U.S.

FDA Web Site Reveals Many Contaminated Food Imports (p. 5):
Contributor Jim Eichstadt walks us through the maze of contaminated food imports seized by the FDA.

Robotics: Efficiency’s Cutting Edge for Cheese & Food Plants (6-7):
We visit Quest Industrial (Monroe, Wisconsin) – the nation’s leading integrator of robotic technologies for dairy plants. Owner Don Wickstrum details the many efficiencies that robots can bring to a cheese plant.

Select PowerPoint Panels from ADPI/ABI Conference (p. 8):
We reprint selected PowerPoint Panels from speakers’ presentations at the recent, combined annual conventions of the American Dairy Products Institute and the American Butter Institute.

New York’s Engelbert Family: Cornerstones of American Organic Dairying (p. 9-10):
Paris Reidhead profiles the Engelbert family of Nichols, New York – the nation’s first organically certified dairy farmer. They farm 30 miles west of Binghamton, New York.

Dairy Livestock Prices Moving Up (p. 10):
In most markets, prices for dairy livestock are moving up vigorously.

Snowville Creamery Starts GMO-Free Feed Testing for Producers (p. 11):
Ohio’s progressive Snowville Creamery has started a testing service for producers shipping to that dairy: testing feed samples for genetically modified organisms (GMOs).

Mixed Bag: Upstate Niagara Released 2013 Financial Report (p. 12):
Nate Wilson reviews background issues of Upstate Niagara’s financial report. Bottom line: a good year, price-wise, for dairy farmer members translates into reduced profits for a cooperative’s operations.

Organic Milk supplies Impossibly Tight in Midwest (p. 12):
The headline says it all.

Complicated Legal Settlement of DFA’s Long-Ago Cheddar Manipulations (p. 14):
A $46 million settlement has been achieved between attorneys for Dairy Farmers of America and plaintiffs in a wide-ranging class action lawsuit involving DFA’s manipulations of CME Cheddar prices in 2004.

Dairy faces Biotech Foods Battle Gain (p. 15):
Pete Hardin reviews dairy organizations’ prior lining up behind Monsanto in the biotech foods battle and suspects that they’ll repeat in the brewing battle over consumers’ demands to GMO content of their foods.

USDA’s “Cold Storage” Data Overstated? (p. 15):
Pete Hardin explains that recent industry events – including longer-term sales contracts and longer holding periods for finished packaged products (for safety-testing) mean that dairy manufacturers are holding increased volumes of inventories. Hardin details that slower turn-out of finished products puffs up USDA’s monthly data on the Cold Storage Report.

LOL Spread at ABI/ADPI Breakfast (p. 15):
Land O’Lakes hosted the complimentary continental breakfast on Monday, April 28 at the combined annual conventions of the American Butter Institute and the American Dairy Products Institute. At that breakfast, “Fresh Buttery Taste Spread” (less than 2% butter) was served. We knew butter supplies are tight, but that situation is ridiculous!

Severe Western Drought Projected Through Mid-Summer (p. 16):
Current projections call for no improvement in the Drought conditions hammering California and the Southwest.

April 2014 Issue No. 417

Inside this month’s issue...

Dairy Commodities Tumble from Earlier, Too-High Peaks (p. 1):
Cash markets for Cheddar, butter and milk powder have fallen from their price peaks in March. But that’s not bad. Too much, too soon isn’t healthy for the overall dairy markets. Cheese demand is strong, both domestically and for export. Butter and cream will be scarce in the second half of 2014.

Jan-Feb. ’14 U.S. MPC Exports Top Imports (p. 1):
Hard to believe. Global dairy proteins are so scarce in early 2014 that the U.S. has become a source, not the usual “dumping ground” for Milk Protein Concentrates.

Resolution of March 2014 Class III “Futures” – Big Pain or Big Gain??? (p. 2):
Participants in March 2014 Class III Futures positions either suffered big pain or enjoyed big gain. The acceleration of commodity Cheddar prices and the ensuing ripple effect on the Class III (cheese) milk futures levels in USDA’s farm milk pricing program left some very poor … and some very rich … bettors.

March 2014 Class III at $23.33/Cwt., While Class IV at $23.66/Cwt. (p. 2):
In USDA’s classified price calculations for March 2014, Class III (cheese) milk was down by two cents per hundredweight. Meanwhile, Class IV (butter-powder) milk climbed by twenty cents to $23.66 per hundredweight.

Huge Jump for Jan.-Feb. 2014 U.S. Dairy Exports (p. 3):
For the first two months of 2014, U.S. exports of cheese climbed 45% and butter exports rose 92% -- compared to 2013.

Beat THAT! $1.33/lb. Live Weight Paid at Auction for Cull Dairy Cow (p. 3):
A big Holstein cow that wouldn’t get rebred brought $1.33/lb. live weight at an auction for a southern Indiana dairy producer. Beat that. U.S. cattle supplies are tight.

Ex-Wife’s Court documents Tarring Chobani Yogurt Founder’s Image (p. 4):
Documents filed in their “she say/he say” lawsuit over controlling interest of Chobani Yogurt by found Hamdi Ulukaya’s former wife allege a bevy of financial misdeeds, as well charges he paid a competitor’s former employee for that competitor’s secret Greek yogurt recipe. One way or another, Chobani Yogurt is in play.

Astronomical 2012 Salaries for Dairy Mgmt. Inc.’s Top Executives (p. 4):
The Milkweed depicts the 2012 salary and compensation packages for Dairy Management, Inc.’s top executives in a new way: the number of dairy cows (of average milk production) needed to bankroll these dairy promotion bozos. On average, the U.S. dairy cow produces 22,000 lbs. of milk each year – or $330 total from the mandatory, $.15 promotion check-off. Example: Tom Gallagher (DMI CEO) needed 2,760 dairy cows to support his $910,786 salary/compensation package for 2012.

USDA: Interferon’s Key to Immediate Immune Defense Against FMD (p. 5):
Writer Nate Wilson explores the science behind USDA’s recent claims of having successfully fashioned a vaccine for Foot-and-Mouth Disease. Problem is: the swine product “works” but requires such great quantities of materials so as to be mostly impractical. And USDA has nothing new in the way of cattle vaccines against FMD.

Fight Winter Energy Shortage with Early Energy Peak (p. 5):
Paris Reidhead writes about high-energy yields from harvesting 60-day BMR corn.

What Caused Weird Winter Weather? What to Do Crop-wise? (p. 6):
Paris Reidhead takes a long look at the scientific explanations for the past winter’s long-lasting, bitter cold. Unfortunately, it looks like spring will be slow and cold in northern states. He then explores crop strategies to cope with Mother Nature’s anticipated “cold shoulder” at the start of this year’s planting season.

Russian Dairy Plant Workers’ Video Catches Bathing in Cheese Vat (p. 7):
“Comrade, pass the soap.” A drunken bunch of Siberian cheese plant workers celebrated New Year’s Eve with a bath in the cheese vat. Trouble was: somebody took a video of that party and the video went viral.

Feature Story #1: U.S. Dairy Industry Fighting Self-Inflected Injury as GI Battle Heats Up (p. 8 & 10):
Read the first of this month’s “Stories of the Month” here.

Feature Story #2: European Cheese Name Fight Rooted in U.S. Dairy Import Assessment (p. 9):
Read our second “Story of the Month” here.

Cheese Name Q&A with Bel Gioioso’s Errico Auricchio (p. 9):
The president of Bel Gioioso Cheese – Errico Auricchio – is chairman of the Consortium for Common Food Names. In a question-and-answer format, Mr. Auricchio details the industry’s concerns about European Union proposals to disallow use of “Geographic Indicators” for dairy products and foods. Long story short: the Europeans don’t want U.S. firms to produce and market products such as “Parmesan.”

NMPF’s “REAL® Seal” User Fees Sparking Complaints (p. 10):
The project by National Milk Producers Federation to revise and revive dairy’s “REAL® Seal” is butting against unhappy dairy product marketers. NMPF wants to impose a stiff, annual fee for use of the “REAL® Seal” – which has been available without cost for more than three decades.

Obama’s Dairy Greenhouse Gas Plan: Methane Digesters “Uber Alles” (p. 11):
As part of the administration’s effort to reduce greenhouse gasses (GHGs), massive construction of methane digesters on large dairy farmer has been proposed by USDA Secretary Tom Vilsack. This proposal merits a lot of study.

DFA “Cleans Up” 2013 Audit … But Still “Lipstick on a Pig” (p. 12):
Pete Hardin obtained a copy of DFA’s 2013 financial statement earlier than normal this year. Hardin digs into DFA’s 2013 financials and finds some improvement, but basically the same old bundle of bogus assets and debt. Watch DFA ongoing courtroom battles for potential liabilities!

Jan.-Feb. 2014 Dairy Export Data Reflects Major Destinations Shifts (p. 13):
Export to China up. Exports to Mexico down in the first two months of 2014. Interesting shifts of export destinations for U.S. dairy products.

For 2013, AMPI Recorded $1.8 Bil. In Sales, $7.5 Mil. Earnings (p. 14):
Associated Milk Producers, Inc. reported 2013 performance at its annual meeting in Bloomington, Minnesota on March 24-25. The co-op has a good story to tell and timed shift of its equity fund generation well, coinciding with current dairy trends.

Kill Transatlantic “Free Trade” talks & deprive Europeans’ “Geographical Indicators” forum (p. 15):
ete Hardin rants about the notion of depriving U.S. cheese and food marketers of common, traditional names for products. European Union representatives are making noises about putting the “Geographical Indicators” issue on the table at the upcoming Transatlantic Trade and Investment Partnership (T-TIP). Hardin’s solution: junk such future “Free Trade” negotiations. “Free Trade” treaties can supersede U.S. Constitutional guarantees!

Pete Hardin’s comments to USDA Re: regionalization of Brazilian beef imports (p. 15):
Pete Hardin cites five different instances in which USDA had “regionalized” (okayed) portions of Foot-and-Mouth Disease-infected nations in which new FMD outbreaks generally occurred within a few months. Hardin draws upon the classic definition of “insanity” to conclude in comments to USDA that “doing the same thing repeatedly and expecting different results is insanity.” Readers are urged to make their own comments on “regionalizing” Brazil’s beef industry for imports into the U.S.

Low Reservoirs & Puny Snow Moisture “Lock-In” 2014 California Drought (p. 16):
The early April 2014 data are in from California for reservoir levels and the moisture content of the snow pack in the mountains. Reservoirs are 15% below normal capacity. Snow moisture content is 29% of normal.

March 2014 Issue No. 416

Inside this month’s issue...

USDA Analysis: FMD Outbreak Costs Would Be “Extremely High” (p. 1):
Jim Eichstadt details the “risk benefit” analysis accompanying USDA’s proposal to open up beef imports from Brazilian states that are considered free of dreaded Foot-and-Mouth Disease. If the U.S. were to import FMD from Brazilian beef, USDA estimates costs of $37 to $45 billion. That figure is less than half of what Homeland Security personnel estimated a FMD outbreak in the U.S. would costs … eight years ago!

All-Time Record Milk Prices for February 2014 (p. 1):
The Class III (cheese) milk and Class IV (butter-powder) milk prices for Feb. 2014 in USDA’s milk order program reached their highest-ever peaks.

Feature Story: Dairy Livestock Prices Zooming from Outhouse to Penthouse (p. 1):
Read one of our “Stories of the Month” here.

Dairy Commodity Scene: Strong Export Demand Pushing Prices Higher (p. 2):
Incredibly strong recent months’ export demand for U.S. dairy commodities and products has seriously tightened our supply-demand scene. We continue to watch: California’s Drought, China’s imports, and Midwest milk production.

Russian Imports – Including Illegal Yogurt – Entering U.S. (p. 2):
Dairy imports from the Soviet Union have entered the U.S. for the past decade … at least. The U.S. can’t s ship yogurt to Russia … as Chobani found out during the Olympics. However, Russian yogurt is entering the U.S. That’s illegal, because all yogurt sold in the U.S. requires Grade A certification of farms, trucks and plants by qualified inspectors.

Feb. 2014 Posts All-Time Class III ($23.35) and Class IV Prices ($23.46). (p. 2):
The headline says it all.

DairyAmerica/Fonterra to Cut Marketing Relationship (p. 3):
After nearly a dozen years, the U.S. milk powder cartel 00 DairyAmerica – believes it can bike on its own in the world without the “training wheels” provided by New Zealand’s Fonterra. About time.

“Milk Mustache” Ads Finally Killed by Fluid Processors’ Promotion (p.3):
Why is fluid milk consumption in trouble? In part, because the nation’s dairy processors can’t do anything better with their generic promotion than to run the same ineffective advertising campaign for 20 years. The “Milk Mustache” ads have been killed.

Is China’s Dairy Demand a “Bubble”???? (p. 4):
Pete Hardin takes a long look at the variety of factors weighing on China’s extraordinary demand for dairy imports. Jan. 2014 saw the greatest volume of dairy imports ever entering China. Conclusion: China’s demand for imports is probably solid, at least through the medium term, unless a global financial collapse hits.

FDA: Boost Milkhouse/BulkTank Security (p. 4):
Here the government goes again … FDA wants to hear comments on proposals ot secure farm milkhouses from food terrorists that might put toxic materials in farm bulk tanks. Writer Nate Wilson reports.

Harvesting “Early Energy Peak” Corn Silage Can Support 2X or 3X Cropping on Same Acres (p. 6-7):
Paris Reidhead writes about a possible future approach to producing home-grown feed/forages for dairy livestock. He details what cutting corn for silage at tassel can yield to second and third crops in the same year.

Snowville Creamery’s New Community Capitalism (8-9):
Owner Warren Taylor details his business model at Snowville Creamery (Pomeroy, Ohio). This small dairy processing plant produces beverage milk products, yogurt, and a high-fat sour cream. He uses grass-based milk from local farmers and follows minimal processing procedures.

“Uproar”: USDA’s Brazilian Beef Import Scheme Draws Strong Public Protests (p. 9):
Contributor Jim Eichstadt profiles the wide-ranging uproar that’s brewing in cattle country over USDA’s proposal to import beef from Brazilian states that are considered “Free” of Foot-and-Mouth Disease. This issue is coming to a serious boil. Almost all of 500+ public comments have been negative.

Success Strategies in the “New World” of Dairy Farming Profits (p. 10):
Pete Hardin covers a variety of management considerations for dairy farmers as we’ve suddenly turned the corner and enter much higher livestock prices as well as higher farm milk prices. What to do???

Feature Story: R-CALF’s Bill Bullard Responds to Questions on FMD, Related Matters (p. 11-12):
Jam-packed with facts and truth ... read our second “story of the month” here.

New U.S. Farm Law Creates Organic Promotion Check-Off, Skeptics Abound (p. 14):
Some politician(s) snuck into the recent federal farm law a proposal for an organic promotion check-off. Haven’t farmers and the public suffered enough such waste. In fact, the soybean and pork promotions have done a good job, we’d admit.

MPC & FMD ... different circus, same dangerous clown act (p. 15):
Pete Hardin let’s fly with a blast at the parallels between the long-running Milk Protein Concentrate furor and USDA’s very recent proposal to “regionalize” supposedly FMD-free states in Brazil for importing chilled and frozen beef. In each instance, major food processors use imports of sub-standard proteins to knock down prices paid to U.S. producers. And Uncle Sam is fully complacent in both instances.

Feb. 4 to March 6, 2014: Calif. Reservoirs Regained Only 1.2% of Normal Capacity (p. 16):
The Milkweed analyzes early Feb. and early March water levels at California’s major reservoirs and calculates that only a 1.2% relative increase occurred during that month. Meanwhile, the moisture content of the snowpack doubled in that month – all the way up to 219% of normal! California farmers have been told by both state and federal water projects not to expect any irrigation water this year.

February 2014 Issue No. 415

Inside this month’s issue...

Four Mega-Events Disrupting Dairy Supply-Demand (p. 1):
Four major events are unsettling dairy supply-demand. Those events are: California’s “worst-ever” drought, China’s serious declines in milk production, strong demand for dairy animals for beef, and poor-quality stored feeds and forages in the Upper Midwest.

Finally! Politicians Achieve 2014 U.S. Farm Law (p. 1):
Writer Nate Wilson provides basic details of the dairy portion of the just-passed federal farm and food legislation. The devil will be in the details, Wilson concludes.

Whopping $2.20/Cwt. Jump for January Class III Price (p. 2):
USDA’s January 2014 Class III (cheese milk) price survey gained most of the month’s early cash market gains. The Jan. Class III price rose to $21.15/cwt. The Class IV (butter-powder) price was announced at $22.29/cwt.

UW Dairy Economists Sharing “Cracked Crystal Ball” for Milk-Price Forecasts (p. 3):
UW-Madison dairy economists Bob Cropp and Mark Stephenson started off 2014 predicting significant drops in this year’s farm milk prices vs. 2013 price levels. Time will tell …

Major Yogurt Makers Using “Kosher Gelatin” (from Beef Hides) as an Ingredient (p. 4):
What is “Kosher Gelatin”? The Milkweed dug into that question following a tip from a supermarket customer. Some big yogurt makers use “Kosher Gelatin” as an ingredient. “Kosher Gelatin” is made from extracts from beef hides. Muller-Quaker fruit-laden yogurts use a different “Kosher Gelatin” – derived from tilapia (a fish). Do yogurt consumers really want beef hide extracts and “fishy” materials in their food?

UpState-Niagara Co-op Limiting Members’ Milk Production … (p. 5):
The major dairy co-op in western New York has imposed limits on members’ milk production gains for 2014. That seems strange, due to all the growth in dairy processing plant capacity in New York State in 2013 and more big plants coming on line in 2014.

John Kinsman, 87: Kinsman to Many (p. 5):
Energetic farm/food activist John Kinsman of LaValle, WI passed away in January. Kinsman – an organic dairy farmer for six decades – was the father of the “anti-rbGH” movement and a visionary.

Agronomist Learns from 2013 Growing Season (p. 6-7):
Writer Paris Reidhead put a series of questions to agronomist Tom Kilcer about what Kilcer observed, crop-wise, in the Northeast in 2013. Very interesting!

Feature Story: U.S. Allows Dairy Product Imports from Many Countries with Foot-and-Mouth Disease (p. 8-10):
Read our story of the month here.

Quick Looks at Key 2013 U.S. Commodity Production Data (p. 11):
We analyze 2013’s important trends in dairy commodities – Mozzarella, nonfat dry milk, Skim Milk Powder, and yogurt. Annualized monthly data from USDA shows a dynamic industry.

DMI Data Show Key Dairy Sales Numbers (p. 11):
DMI’s year-end dairy marketing summaries reveal some interesting trends, such as: California’s fluid milk sales collapsed by 4.2% in 2013, and Greek yogurt sales showed a 45.9% increase last year.

Scenic Central Co-op Annual Meeting Highlights (p. 11):
We attended the annual meeting of Scenic Central Dairy Co-op – a 285-member raw milk marketing co-op in Wisconsin that features ZERO debt and a member annuity savings program.

Horizon “Organic” Factory Farm Accused of Improprieties, Again (p. 12):
Will Fantle of the Cornucopia Institute details alleged problems with WhiteWave’s industrial-sized organic dairy in Idaho.

Dairy Commodity Prices Easing After January Spikes (p. 13):
Cheddar prices have retreated about 20 cents per pound from their all-time price peaks achieves in January. The post-Super Bowl surge for cheese has subsided. Ahead, The Milkweed projects strong export demand in 2014, but domestic demand will be challenged by high retail prices.

Chobani Yogurt Hits Brick Walls in Europe: (p. 14):
In separate matters, Chobani Yogurt was kicked around in Europe. The Russians have denied Chobani ability to ship U.S. yogurt to this nation’s Olympic athletes. And a British court ruled that Chobani could not sell U.S.-made “Greek yogurt’ in that country. Dairylea Co-op Members OK DFA Merger (p. 14): On Feb. 4, Dairylea members approved merger of their co-op with Dairy Farmers of America – proving once again hast P. T. Barnum was right.

Weak U.S. dollar + classified pricing = “cheap” U.S. dairy exports (p. 15):
Pete Hardin shares his opinion that a single class milk pricing system is needed. Returns for various domestic producers vary dramatically – with fluid milk processor margins rock-bottom. Meanwhile, prices and returns for specialized dairy proteins and ingredients for export (particularly as infant formula in Asia) are highly lucrative. Our four-class milk pricing systems are antiquated.

U.S. Farm Law Immoral (p. 15):
Pete Hardin takes exception to the fundamental of the newly signed federal farm and food law. That law guarantees the crop insurance industry a 14% return on gross sales volume, removed payments limits of $750,000 to individual farmers, and cuts funding for supplemental nutrition programs (food stamps).

After Worst-Ever Drought in 2013, California’s Moisture Scarce in Early 2014 (p. 16):
As of Feb. 4, 2014, California’s reservoirs were at only 33% of normal capacity. And the snow pack contained only 12% of normal moisture. Last year was California’s worst-ever drought. Even some nice precipitation around Feb. 8-9 won’t make much of a difference ot reservoirs. Very serious situation …

January 2014 Issue No. 414

Inside this month’s issue...
U.S. Dairy Prices Zooming Up; Cheese & Milk Powder Scarce (p. 1):
Between when the December 2013 issue went to press and the January 2014 issue’s printing, cash prices for block and barrel Cheddar at the Chicago Mercantile Exchange rose 31 cents and 38 cents, respectively. A wave of exports has drained U.S. dairy commodity inventories – sparking higher prices. In the analysis of The Milkweed, 2014 will be a year of sky-high farm milk prices and extremely tight dairy commodities in the U.S.

2013 Forages & Corn Silage Will Challenge WI’s 2014 Milk Output (p. 1):
Except for the southern two tiers of counties, Wisconsin dairy farmers generally face tough stored forage and silage conditions, due to incredibly adverse weather last year (and 2012). 2014’s milk production will be significantly pulled down by such widespread problems with both volume and quality of crops from 2013.

2014 Farm Bill: Same Ship Piles Up on Same Rocks (p. 2):
Nate Wilson reports that arguing over dairy provisions of what’s now the 2014 federal farm legislation is now the main stumbling block to passage.

U.S. Milk Powder Inventories Z-E-R-O (p. 2):
The headline tells it all. Buyers are waiting for lab test clearance to gobble up truckloads of scarce U.S. nonfat dry milk.

“Polar Vortex” Creates Widespread Dairy Logistics Problems (p. 2):
Closed Interstate highways, closed dairy processing plants, transportation fleets crippled by “gelled” diesel fuel ... take your pick. What a mess in early January, due to that blast of Arctic air.

December 2013 Class III Price $18.95 / Class IV $21.54 (p. 2):
Strong prices for nonfat dry milk pushed a $1.02/cwt. gain in the Class IV price in USDA’s federal milk orders. Fast-rising cash Cheddar prices will help the Class III play “catch-up” in January 2014’s numbers.

China’s Milk Output Down Double-Digits, Import Needs Will Be Heavy (p. 3):
Even though accurate dairy data is tough to come by in China, consensus is that China’s recent milk production is down “double-digits” compared to late 2012’s totals. And “2” may be the first number of that decline. Elimination of small- and medium-sized dairy herds and an outbreak of Foot and Mouth Disease are pulling down China’s farm milk supplies. That nation’s dairy export needs are exploding.

Food Retailer Class Action Lawsuit Reinstated in Southeast (p. 3):
A federal appeals court has restored plaintiffs’ antitrust lawsuit in the Southeast against the usual suspects: Dean Foods, Dairy Farmers of America, National Dairy Holdings, the Southern Marketing Agency, and Dairy Marketing Services. Plaintiffs are food retailers that claim the defendants conspired to unduly raise supermarkets’ costs of packaged milk.

Southeast Milk Litigation: DFA Settlement Checks Mailed (p. 3):
Merry Christmas in the Southeast ... after more than a decade of lumps of coal. 6000+ eligible present and former Southeast dairy producers received settlement checks from Dairy Farmers of America that averaged a bit over $14,000 each.

Cheaper Raw Milk Helps Shift Chobani Production from NY to ID (p. 4):
Chobani yogurt’s Twin Falls, Idaho plant is now operating at full tilt, according to the company. Meanwhile, starting in December, production at the firm’s New York State plant scaled back significantly. Why? In part, The Milkweed estimates that Chobani’s raw milk costs – using November 2013 as an example – were $3.00 to $3.30 per hundredweight cheaper in Idaho. The same firm – DFA – supplies both Chobani locations with farm milk. DFA is price-undercutting itself!

Chobani: Employee Lay-Offs, Reduced Shifts and Days of Operation in NY (p. 4):
In December 2013, Chobani started scaling back production in New York State. About 300 temporary workers were laid off, and less farm milk is coming into the plant. NYS milk is a lot more expensive than Idaho milk.

Whole Foods Chain Won’t Sell Chobani Yogurt (p. 5):
Because Chobani can’t guarantee its milk is not made from herds eating Genetically-Modified feeds, the upscale food retailer Whole Foods is taken Chobani yogurt off its shelves. Whole Foods is asking the virtually impossible of Chobani. The Milkweed suspects Whole Foods wants shelf space for possible marketing of its own house-brand “365” Greek-style yogurt.

DFA’s List of Serious Financial Challenges Grows Longer (p. 5):
The nation’s largest dairy farmers cooperative falls further and further into financial doo-doo. First, DFA and two subsidiaries (National Dairy Holdings and Dairy Marketing Services) are defendants in a Southeast class action lawsuit by food retailers that was recently restored by a federal appeals court. Retails claim that the plaintiffs – which also include Dean Foods – illegally conspired to raise packaged milk costs. Also, The Milkweed cites a 2005 Moody’s Investors Service report that noted a $150 million “asset” claimed by DFA –”Preferred Equity Securities” was not asset. Take $150 million off the “asset” ledger and make it a liability – that wipes out about $300 million DFA’s so-called net worth.

Picture Worth 1,000 Words: Why MPC Drew Such Scorn (p. 5):
We revisit those thrilling days of yesteryear ... the early days of the Milk Protein Concentrate brouhaha. We reprint a bag of “Milk Protein Concentrate” that had an adhesive, secondary label of product identity by the seller – the crooked Wilfran Agricultural Industries. The new label identified the product as “Low Heat Nonfat Dry Milk.”

Where’s the Milk? Wisconsin’s 2013 Forages & Corn Silage (p. 6):
Writer Paris Reidhead details 2013 haylage and corn silage samples from the state of Wisconsin that were analyzed by Dairyland Labs (Arcadia, WI). 2013’s crops were generally poor, from a nutritional standpoint. Starch levels in corn silage and sugar content in haylage are particularly low.

Feature Story: Beef Imports from China Pose Serious FMD Threat to U.S. Livestock Industry (p. 8-9):
Contributor Jim Eichstadt has unloaded a 10,000 bomb – uncovering USDA data showing that beef imports entered the U.S. from China during 2012 and 2013, even after China was listed as a “Foot-and-Mouth Disease” nation. Read our story of the month ... here.

NMPF Blunders Drive Dairy’s Cherished “Real Seal” into the Ditch (p. 10):
Jim Eichstadt tracks the history of dairy’s “REAL Seal” and the legislation that governs the dairy promotion check-off. In 2011, USDA changed the rules to disallow programs funded by the National Dairy Board form identifying “Made in the U.S.” dairy products. That change was lobbyed through Congress by National Milk Producers Federation – the dairy co-op lobby. But now, NMPF is in charge of the revived “REAL Seal” and is promoting the icon for “Made in the U.S.” dairy products only.

Q & A: Virginia Dairyman Tom Watson (Southeast Antitrust Plaintiff): (p. 11):
Long bound to silence, dairy farmer Tom Watson of Bedford, Virginia answers questions about some details of the long-running Southeast dairy antitrust case. Millions and millions disappeared through the corrupt dairy cooperative marketing efforts.

WhiteWave Foods Mooooving Aggressively (p. 12):
Will Fantle of the Cornucopia Institute tracks changes at WhiteWave Foods.

Cheddar and Nonfat Prices Climb: Butter Starts to Move Up (p. 13):
Pete Hardin’s dairy commodity analysis shows that 2014 is looking like “The Year of Scarcity and High Prices” for dairy. Big gains in cash Cheddar prices at the CME have brought forth few sellers. Nonfat dry milk buyers are hand-to-mouth. Butter inventories have now dropped 180 million lbs. between July 31 and November 30, 2013.

The “F-Acronym” (FMD) – China’s Dairy Dilemma (p. 15):
Following up Jim Eichstadt’s revelation about beef imports coming in from FMD-infected China, Pete Hardin’s opinion comments take out after USDA’s failed oversight to protect this nation’s livestock producers from that dreaded disease. Hardin goes so far as to suggest that dairy personnel stop travelling between the U.S. and China. He puzzles why UW-Extension crops experts need to spend so much time in China, when Wisconsin was hit with the worst forage crisis in its history in 2012-13. Let Chinese visitors attend World Dairy Expo “virtually” (i.e., at home, over the internet) Hardin suggests.

DFA/Dairylea Merger: Told You So (p. 15):
Most likely, the DFA/Dairylea co-op merger will be approved by Dairylea members in early February. But Hardin’s getting in line fast with an “I told you so” warning about all of Dairy Farmers of America’s bogus assets and serious pending lawsuit liabilities. Another big lawsuit – the Southeast food retailers’ class action – was just put back on the docket.

U.S. Dairy Import/Export Data Shows Widening Gap (p. 16):
We comment on six years’ dairy import/export data assembled by the U.S. Dairy Export Council. China’s growing dairy demand should boost global opportunities.

Olympic Smoke Screen: Chobani Cuts Portion Size by 11.67% (p. 16):
What cheapskates! Chobani yogurt has reduced the portion size of its best-selling containers from 6.0 to 5.3 ounces – a reduction of 11.67%. But retail prices will remain the same!

December 2013 Issue No. 413

Inside this month’s issue...
2014: Great Year Ahead for Dairy Producers with Good Stored Crops (p. 1):
View our “Our Story of the Month” here.

U.S. Buyers “Shorted,” NFDM Down, SMP & WMP Soar (p. 2):
U.S. dairy protein powder manufacturers have shifted production to increased amounts of Skim Milk Powder and Whole Milk Powder. Meanwhile, domestic buyers of nonfat dry milk are facing late deliveries and extremely tight milk supplies. A bad situation developing here …

Embattled Farm Bill Staggers into Another New Year (p. 2):
Legislators in the nation’s capital have given up trying to pass federal farm legislation … again. Maybe something will come together in early 2014. Commodity programs may be under further scrutiny.

November 2013 Class III Price $18.83 – Class IV Price $20.52 (p. 2):
USDA’s manufacturing milk prices for the federal order program climbed modestly in November, compared to October’s prices. Rising prices for nonfat dry milk promise more propulsion lies behind the Class IV (butter-powder) price.

Dairy Commodity Scene: Milk Powder & Cream Very Tight (p. 3):
Dairy commodity markets are tightening visibly. Milk powder supplies are scarce and prices rising steadily. Cream is extremely tight, due to strong demand for holiday treats manufacture.

U.S. NFDM/SMP Exports to Mexico Drop 31.5 Million Lbs. (p. 3):
For August-October 2013, U.S. exports of nonfat dry milk and Skim Milk Powder fell 31.5 million lbs. below sales of those commodities to Mexico during the corresponding months in 2012. Mexican buyers backed of purchases as prices rose in mid-summer – wrongly better that prices would decline.

U.S. Butter Inventories Decline Dramatically in October (p. 4):
According to USDA’s “Cold Storage Report,” U.S. butter inventories declined by 60 million lbs. during October 2013. That decline – coupled with 30 million lbs. drops in both August and September – has dropped U.S. butter inventories down to around 180 million lbs. – a big decline from worrisome the early summer peak.

NASS 12/3/13 Data for NFDM Don’t Add Up (p. 4):
Sometimes the numbers don’t always add up. That appears to be the case, unfortunately, for the Nonfat Dry Milk portion of USDA’s latest “Dairy Producers Report” that was issued on December 3, 2012.

Reviewing Yogurt Sales Data … Some Eye-Popping Trends (p. 5):
Data from retail check-out scanner networks shows very vigorous changes in yogurt sales in the U.S. Chobani is the big winner, while General Mills and Dannon have taken a pretty serious drubbing in yogurt sales during much 0f 2013.

Can Modern Nutrition (A2 Milk) Revive the Guernsey Breed (p. 6-7):
Very interesting! Write Paris Reidhead explores both the historyof the Guernsey breed in the U.S., as well as the science and marketing details behind the “A2 Milk” phenomenon. A2 milk is believed by some to be superior both nutritionally and health-wise in comparison to conventional cows’s milk. About 90% of Guernsey cattle carry the A2 gene – likely a legacy to their being isolated on small island for thousands of years.

A2 Milk Sales in Australia up 51%, NZ’s A2 Corp Expands (p. 7):
Recent news from “Down Under” … the A2 Corporation (which holds the patents and testing labs for the A2 dairy cow gene … reports sales of A2 Milk in Australia climbed 51% -- to $91 million – for its recently completed fiscal year. That’s significant.

Karen Kelley’s Dreams Come True … in 265 Flavors! (p. 8-10):
Karen Kelley is a dairy farm woman from Fond du Lac, Wisconsin. Karen dreamed of farmstead processing the Kelley family’s milk. In 2010 – after much study – Kelley Country Creamery (an ice cream plant and retail shop) opened near their 65-cow dairy farm. This year, the Kelleys made 265 different flavors … and were featured on the “Good Morning America” -- the ABC network television show.

DFA Settlement Finalized to Release Funds to SE Farmers; Judge’s OK Awaited (p. 10):
Southeast dairy farmers await a $86 million pay-out from the DFA settlement of the private antitrust lawsuit. Checks should be mailed soon, unless a legal challenge comes forth.

WTO Doha Round Negotiators Reach Last-Minute Trade Deal at Bali (p. 11):
The long-stalled WTO (world trade) negotiations were breathed back to life, after years of stalled negotiations. Jim Eichstadt updates details for our readers.

Rep. Ron Kind Cheerleads for Transpacific Trade Deal with NZ, “Fast Track” Renewal (p. 11):
Western Wisconsin’s Ron Kind is perhaps the most vocal supporter of “Free Trade” in the U.S. Congress. Ironically, Kind’s Second District -- which stretches far up and down the Mississippi River – has more the most dairy farmers of any Congressional District in the United States … more cows than people. And dairy is one of the major industries most threatened by “Free Trade” deals espoused by Kind.

Trans Pacific Partnership Free Trade Agreement Expected Soon (p. 12):
Negotiators at the Transpacific Trade Partnership talks have apparently made a lot of progress and may conclude their work early next year. Virtually all details have be kept from t he American public by the Obama administration. Dangerous.

Oct 2013 Whole Milk Powder Exports Equal to (2.5% of U.S. Monthly Output (p. 13):
An amount equal to over 90% of all Whole Milk Powder produced in the U.S. during October 2013 was exported – another example of increased dairy protein powder production heading abroad.

U.S. Corn Prices Nosedive Heading into Big 2013 Harvest (p. 14):
Contributor Jim Eichstadt studying recent months’ corn price trends and what data is available from the 2013 grain harvest.

A2 Milk: Symbol of Dairy leaders’ attitudes (p. 15):
Pete Hardin why certain dairy products with perceived nutrition/health advantages and double-digit sales growth – such as A2 milk and organic milk – are not given wider respect by dairy’s “big boys.” Hardin concludes that dairy’s “Big Vested Interests” thrive on the status quo – pushing dictates about what “Can’t” be done: “rBGH-Free” labeling, raw milk sales, and no visible support for A2 milk in the U.S.

Let the better times roll … and maintain them (p. 15):
Pete Hardin lays out a long list of suggestions to improve dairy’s antiquated pricing and marketing practices. A few examples: one class of milk in federal milk orders, have raw milk processors pay at least half of documented milk hauling costs, and shift to a protein-energy (milk fat)-based pricing system.

DFA Document Tries to Explain “Financial Strength” (p. 16):
The Milkweed reproduces a DFA “Talking Points” document released by the co-op on November 27, 2013 that instructs field staff how to answer the acknowledged barrage of questions about DFA’s financial condition. Pete Hardin then rebuts DFA’s claims of financial strength. Example: “‘Solid financial performance’??? DFA reported operating losses of $133 million in 2012, following losses of $36.7 million in 2011. During fiscal 2011, DFA wrote down $252 million in equity – dropping the co-ops’ ‘Assets/Equity’ ratio from 32.1% (at the end of 2010) to 15.5% as of 12/31/12.” Get the picture?

Dairylea/DFA Merger: Family History and the New York Milkshed (p. 16):
Why does editor-publisher Pete Hardin find the proposed Dairylea/DFA merger objectionable. Hardin’s family’s history goes all the way back with Dairylea. His great-grandfather was a Dairymen’s League founder in 1907 and served as a director and office of the cooperative for 50 years. Very interesting reading about the history of Dairylea and its recent years’ entanglements with DFA.

November 2013 Issue No. 412

Inside this month’s issue...
Major Factors Point to Tight Milk Supplies Relative to Strong Demand (p. 1):
Our “Story of the Month” here.

DFA’s Debts & Liabilities Cloud Dairylea Merger (p. 1):
In early October, the proposed merger of two major dairy cooperatives was announced: Dairy Farmers of America and Dairylea Co-op. DFA’s massive indebtedness (at least $100,000 per member) and possible liabilities in two big lawsuits make DFA a scary merger partner. Dairylea’s debt per member equals just under $5000.

Late April 2014 Date for B-I-G Northeast Antitrust Trial vs. DFA & DMS (p. 2):
In the Northeast antitrust litigation, plaintiffs’ lawyers are seeking $600-$700 million dollars in damages. If damages are awarded by the jury, the damages will be tripled, under antitrust rules. The trial is set for late April 2014. Defendants are Dairy Farmers of America and Dairy Marketing Services.

Farm Bill: House and Senate are Finally Talking (p. 2):
More than one year after they failed to achieve a 2012 federal farm bill, House and Senate conferees have sat down to talk. Big deal.

CDFA Keeps Temporary Milk Price Hike: No change for Whey Formula (p. 2):
Following a mid-September 2013 hearing, California’s Department of Food and Agriculture has rejected any proposed changes in the formula for calculating whey factors in the state’s 4b (cheese) milk formulae. CDFA will continue the temporary price hike on all classes of milk 12.5-cent per hundredweight on all classes of milk.

Yogurt Wars … From Supermarket Dairy Case Courtroom (p. 3):
How can a product as nutritious as yogurt be such a battleground? We look at retail sales trends of Chobani Yogurt (up 30X in 40 months ending mid-May 2013)! Chobani’s gains come at the expense of yogurt sellers like Stonyfield Organic. In the courtroom, a trial is set for mid-December 2013 pitting Chobani founder Hamdi Ulukaya against claims by his ex0wife that she’s due 53% of the entire firm’s assets plus $530 million in damages.

Global Dairy Prices Fall at Second Consecutive Fonterra Online Auction (p. 3):
On Nov. 5, average prices for dairy commodities offered at Fonterra’s every-other-week on-line auction declined.

Oct 2013 Class III Price $18.22 – Class IV Price $20.17 (p. 3):
The numbers tell it all.

Infant Formula Firms’ Combined Damages Nearly $600 Mil. from Fonterra’s WPC 80 Recall Goof-Up in Aug 2013 (p. 4):
Following the August 2013 recall of WPC 80 by New Zealand’s Fonterra, two global firms – Danone and Abbott Labs – have announced costs associated with the recall totaling nearly $600,000,000. That amount will challenge Fonterra’s finances and credibility.

Outside Evaluation of Fonterra’s WPC 80 Debacle (p. 4):
An internal report on Fonterra’s August 2013 WPC 80 recall details many, many problems in the firm’s system.

Kraft Foods’ Patent Restores “Dairy Flavor” to UF Milk (p. 4):
Amazing! Kraft Foods has a patent application pending that uses dairy elements added back to ultra-filtrated (UF) milk to restore lost flavor. Milk Protein Concentrates are UF milk. Wonder why the critics blasted Kraft for years concerning poor flavors and quality of dozens of the firm’s MPC-laden food products.

Milk Powder & Butter Prices Stronger as CME; Cheddar Mostly Flat (p. 5):
Pete Hardin takes a long look at the market factors behind tighter butter and nonfat dry milk prices – reduced inventories and stronger global demand for U.S. production. Some very interesting data trends are developing.

USDA: Record Corn, Big Soybean Crops (P. 4):
In early November, USDA announced its crop production estimates for 2013. The U.S. corn crop is projected at 13.99 billion bushels. Soybean volume is estimated at 3.26 billion bushels.

Empire Specialty Cheese, LLC at the Trough … Again (p. 6):
Writer Nate Wilson details how a New Jersey-based Italian cheese company – Empire Specialty Cheese, LLC – has gained over $1.25 million in various taxpayer subsidies to refurbish an old slaughterhouse in western New York to cheese production. This is the same firm refused to pay local Amish Grade B milk producers for $1.2 million in 2011. New York politicians chirped a merry tune over all the jobs that will be created. Empire Specialty Cheese: Company & Owners’ Sketchy History (p. 6): Pete Hardin digs into the sketchy history of Empire Specialty Cheese, including: the cheese plant manager’s failure to pay $1.25 million to local Amish producers in 2011, the main owner’s history with the Concord Marketing (NJ Italian cheese firm) in the late 1990s, and the main owner’s son-in-law status with the infamous, cheesy bankrupt, Ben Scheps. “It’s a family tradition …”

2014: New York Dairy Plants’ Capacity Will Dramatically Exceed Milk Supplies … (p. 7):
Next year will see a wave of new dairy processing plants come on line in New York State. On top of recent dairy plant constructions and expansions, New York State will end up with more dairy plant processing capacity than available milk.

“Inequitable” Merger: Dairylea’s Assets & DFA’s Debts/Liabilities (p. 8-9):
Pete Hardin analyzes the merits of the proposed DFA/Dairylea merger. Issues such as debt per member and potential legal liabilities raise questions about the wisdom of this merger, for Dairylea members. Questions provided.

Is “Tricky Rick” Throwing Old Buddies’ Assets Under the DFA Garbage Truck? (p. 8):
DFA CEO/President Rick Smith was formerly Ceo of Dairylea Co-op. Now Smith’s overseeing a merger of the two. But are Dairylea’s members’ assets being sacrificed to DFA’s mountain of debt and pending lawsuit liabilities?

Fuel Ethanol By-Product Grains Still Causing Sulfur Toxicity (p. 9):
Writer Paris Reidhead revisits a subject he covered 18 months ago. Heavy use of distillers’ grains (from corn ethanol production) poses a potential problem: too much sulfur.

Holsteins Evolving as Dual Purpose Breed: Dairy/Beef (p. 10):
Increasing numbers of Holstein heifers are headed to beef feedlots – as the U.S. beef industry faces its lowest commercial cattle numbers in 60 years. Dairy cull cows bring a pretty good return, these days, also. What’s happening: prices for dairy livestock are being bid up by the beef trade.

Brush, Colorado Top Springers Up $200-$300 in Past Month (p. 10):
The price-trend leading dairy auction market in the West – Brush Livestock in Colorado – saw top-end Holstein springers top the $2000 market in early November. That’s a price jump of $200-$300 per head on the top end. Pete Hardin theorizes that after a couple years of relatively low prices for dairy livestock, both dairy and beef interests are bidding up the value for heifers.

Southeast Dairy Industry in Turmoil: No Strength (p. 11):
The Southeast dairy industry is in a mess. Producers have been devastated by years of high marketing costs (deductions) from a succession of dairy co-ops. Fluid milk processors are hurting. No basis of strength in the region.

Five Problems Defining Southeast Dairy Industry (p.11):
Pete Hardin details five major flaws in the Southeast dairy industry’s history, culture and structure that limit the region’s dairy producers from taking advantage of what should be an excellent regional supply-demand opportunity.

Dairy Cattle Replacement Prices … (p. 14):
We track dairy livestock prices from around the country. Springer prices are rising. Open heifers’ prices are flat, at best.

Future Milk Pricing? Follow the Cement Trucks … (p. 15):
Classified pricing has no future in the dairy industry. All milk should be priced the same, Pete Hardin opinionates. Just look at all the “ingredients” plants recently on line, under construction, or in the planning stages. Valuing “ingredients” plants’ milk at the Class IV (butter-powder) price would fail to return honest value to dairy producers. High-balling fluid milk prices of Class I processors is a bad idea, also.

Like “NO-Bamacare”? You’ll Love TP and FSMA (p. 15):
The bureaucratic incompetence surrounding implementation of the Affordable Care Act is just the beginning. Watch out for the Trans Pacific Partnership “Free Trade” deal. U.S. officials have been hiding details from the American public. And FDA is rolling out implementation of the Food Safety Modernization Act – with dangerous implications for both small and medium farmers and food processors.

DFA/Select Milk Producers to Fuel Southwest Milk (p. 15):
A region-wide transportation system using trucks powered by Compressed Natural Gas (CNG) is almost ready to roll in the Southwest. Start-up time is scheduled for January 2014. Fuel savings of up to $1.50 to $2.00 per gallon-equivalent are possible.

South Dakota Ranchers Devastated by Freak Blizzard in Early October (p. 16):
Contributor Jim Eichstadt – who grew up on a South Dakota livestock/grain farm – details the tragic blizzard that hit western South Dakota’s cattle ranchers in early October. Losses are still being counted, and are believed to range from 30,000 to perhaps three times that amount. U.S. cattle inventories are the lowest since 1952.

October 2013 Issue No. 411

Inside this month’s issue...
Early ’14 U.S. Cheese Class III & IV Futures HALF of NZ’s Farm Milk Prices (p. 1):
Our story of the month can be viewed here.

Fast-Moving Global Dairy Supply-Demand Events (p. 1):
Most of the action involves China, as global dairy prices are rising and available of product is constricting.

Shutdown: USDA $$$ and Dairy/Ag Data Stop Flowing (p. 2):
The federal government’s shutdown halted many vital USDA services to the nation, from issuing funds to providing important data.

Farm Bill: GOP’s Cantor in the Catbird Seat (p. 3):
The nation continues without a farm/food policy, since Congress didn’t deal with the old farm law that expired on September 30, 2013. Eric Cantor, the Virginia Republican, may be succeeding in his effort to divide farm and nutrition policies from the same legislative package.

September 2013 Class III Price $18.14 – Class IV Price $19.43 (p. 2):
Those are the manufacturing class prices for farm milk processed into cheese (Class III) and butter-powder (Class IV) in the federal milk order program for last month.

China’s Emerging Dairy Import Dynamics: Whole New Dairy Demand Paradigm (p. 3):
Pete Hardin details how internal and global supply-demand realities in China are shaking the entire dairy world.

Organic Valley Cancels Farm Milk “Base” Program (p. 4):
Less than onedefinmonth after announcing a “base” program to restrict production, Organic Valley has dumped that notion.

Danone Wants Compensation from Fonterra for ALL Losses Due to WPC Product Recall (p. 4):
Media reports from New Zealand tell that global giant Danone is seeking full damages associated with this summer’s WPC 80 recall by Fonterra – the seller. Fonterra is balking.

Mueller Quaker German-made Yogurt Still Sold in U.S. Dairycases (5):
Despite start-up of U.S. production last spring, Mueller Quaker is still selling some yogurt products made in Germany to U.S. consumers. Mueller Quaker’s new yogurt plant in Batavia, New York was supposed to provide great new demand opportunities for U.S. dairy farmers.

Backsplashes from Chobani Yogurt’s Idaho Product Recall (p. 5):
The late summer recall of Chobani Yogurt products from the firm’s Twin Falls, Idaho plant has created many headaches. Additional demand for farm milk in the Northeast in early September – to replace production in Idaho – drove up spot milk premiums as high as $8.00 cwt. (over the prevailing federal milk order class price). And some stores don’t want Chobani yogurt products made in Idaho.

DairiConcepts “For Sale” – DFA/Fonterra Joint Venture (p, 5):
The DairiConcepts firm – a DFA/Fonterra joint venture – is for sale. Fonterra – which has a small portion of the stock but takes 50% of the profits – is walking. The business model – predicated on cheap imported cheeses – is no longer viable.

Dead Zones: Green Bay Repeating the Gulf of Mexico’s Tragedy (p. 6-7):
Writer Paris Reidhead explores the toxic run-off that’s caused “dead zone” in the Great Lakes’ biggest estuary – Green Bay. Almost half of the run-off entering Green Bay is from agriculture. Reidhead warns that 20 civilizations have disappeared, due to soil loss.

Does China’s Growing Hunger for Dairy Imports Raise FMD Threat to U.S.? (p. 8-9):
The fact that China harbors a serious, long-running (8 years) Foot-and-Mouth Disease problems is little known. But as China buys more dairy products from abroad … and more dairy industry personnel travel to China for various reasons … the potential to spread FMD to “clean” nations increases.

DFA: Failure to Send Members Timely Audits Breaks NYS Law (p. 9):
Writer Nate Wilson submitted a set of questions to the New York State Department of Agriculture & Markets, focusing on obligations for dairy cooperatives to send out annual financial statements to NYS members, prior to the annual meeting. Guess what big dairy co-op has repeatedly failed to comply with that law? DFA Announces Two New Projects: Plants in MI & NY (P. 9): DFA has announced construction of two new projects: an ingredients plant in Michigan’s “Thumb” and a “cold separation” plant in western New York.

Agricultural Cooperatives’ Equity: Vital Asset … But Too Often “No Return” (p. 10-11):
Pete Hardin takes a long, tough look at the subject of agricultural cooperatives’ equity and retained earnings. Too frequently, those earnings and equities never make it back to the farmer … unless the farmer passes away. Hardin sifts through the debris of the equity game …

FDA Food Safety Proposals Threaten Ruin of Local and Organic Family Farmers (p. 12):
Will Fantle, co-director of the Cornucopia Institute, details how the federal Food and Drug Administration is implementing food safety rules that that threaten many small and medium farmers and food processors. FDA is charged with implementing the Food Modernization and Safety Act. Look out!

“Lights Out” for USDA Dairy Data, As Global Supply-Demand Volatility Rises (p. 13):
Wouldn’t you know, on the same day that the federal government’s partial shutdown hit, the Global Dairy Trade’s electronic auction sent stronger price news to he world’s dairy industry. What’s up? China is buying heavily to stockpile needed dairy commodities.

Dairy Cattle Replacement Prices … (p. 14):
Prices for #1 springing Holstein heifers are up about $100 per head in numerous auction markets across the U.S. in early October.

Better ways to price farm milk (p. 15):
Pete Hardin rummages through several thoughts about how to honestly price farm milk in the U.S., in the absence of an effective pricing tool. Paying only one price for milk solids (like NZ)? Having an electronic sales desk (auction) for U.S. commodities? Producing products that the world wants – like unsalted butter and real Gouda? Getting rid of Posilac?

“Something Big is Coming, But …” (p. 16):
Pete Hardin reports on a World Dairy Expo “mini-seminar” conducted by the Stewart-Peterson market advisory firm. The projection was that something big was coming, but the firm’s analysts left the door open as to whether that “big something” was up or down for dairy commodity and farm milk prices. The firm reviewed much relevant data.

September 2013 Issue No. 410

Inside this month’s issue...

Feature Story #1: Major U.S. Dairy Areas Facing Severe Forage Crisis (p. 1):
Our story of the month here.

Finally! Fluid Milk Processors’ Check-Off to Promote P-R-O-T-E-I-N (p. 2):
About a decade into America’s “protein wave,” the nation’s fluid milk processors’ board will fund commercials and videos that tout beverage milk’s protein value! Long time coming …

NZ Government-Sponsored Tests Don’t Detract Clostridium Botulinum in Fonterra’s WPC 80 (p. 2):
Extensive tests conducted by New Zeraland’s government have found that Fonterra’s Whey Protein Concentrate 80 was not contaminated with the botulism strain of the Clostridium bacteria. Was the global recall of many dairy products in August 2013 all for nothing. Meanwhile, an internal review found that Fonterra employees had “reprocessed” an off-grade batch of whey powder.

August 2013 Class III Price $17.91 – Class IV Price $19.07 (p. 2):
The numbers tell the story for the August 2013 values for that month’s values of farm milk processed into cheese and butter-powder, respectively. For USDA’s federal milk order program.

2013 Farm Bill Follies: Bet on 2008 Farm Law Extension (p.3):
Writer Nate Wilson again digs into the federal farm bill confusion and comes to the usual conclusion – the best bet is for another extension of the 2008 federal farm low … sometime after September 30, 2013.

U.S. Butter Prices FAR BELOW World Market Prices (p. 3):
Jim Eichstadt reviews three butter price quotes: the Chicago Mercantile Exchange cash markets, Fonterra’s Global Dairy Trade from early September, and USDA’s Dairy Market News cited range of butter prices in western Europe. Big differences! The GDT quote was $.26 higher than CME, while the Western Europe price was a full $1.19 per pound higher than CME.

MILC “Safety Net” Expires After August 2013 (p. 3):
USDA’s dairy farm milk price “safety net” expired with the end of August. There will be no further MILC payments unless that program is restored by Congress.

New Lawsuit Targets CWT, NMPF & Several Member Cooperatives (p. 3):
A Milwaukee, Wisconsin food business – Hampton Foods – is the plaintiff in what’s proposed as a class action lawsuit against a pack of dairy cooperatives. At issue: the alleged illegal structure of the “Cooperatives Working Together” program – a scheme by which dairy farmers funded a program to reduce milk production (and raise farmers’ milk prices) by buying and killing entire herds of milk cows. Plaintiff’s attorneys charge that the CWT program was illegally doing business with farmers who weren’t members of the cooperative.

Organic Valley Instituting Farm Milk Production Bases Effective 10/1/13 (p. 4):
Awash in organic milk, the Organic Valley cooperative has informed members that the co-op will institute a base program for milk marketing on October 1. Over-base milk will be paid a price of $12 per hundredweight.

Volcanoes Cloud End Growing Season in Northern U.S. (p. 6):
The Pacific Rim has witnessed new volcanic activity in summer 2013 – resulting in cooler, drier weather for parts of North America. Writer Paris Reidhead takes a long look at the history of and impacts of volcanoes upon human culture.

Volcanic Explosivity Index (VEI) Rates Volcanoes’ Impact (p. 7):
Paris Reidhead describes how scientists measure the relative impact of volcanoes. The model is much like the Richter Scale used to measure earthquakes.

Fonterra’s Failed History of Dairy Product Quality (p. 8-10):
Jim Eichstadt and Pete Hardin take a long, hard look at Fonterra’s history of dumping substandard dairy products on global buyers. A common theme: the Kiwi’s can’t seem to throw away undergrade products that should be fed to fish. This set of articles covers Powdergate (glue sold for human food use), aluminum shavings-laden cheese sold to U.S. buyers for human food use, and the August 2013 botulism recall matter. Very thoroughly researched!

Mastitis “Solutions” Usually Ignore Problem: Milking Equipment Design (p. 11):
Bill Gehm, a partner at L.R. Gehm, LLC, details his company’s perspective on the futility of treating costly mastitis, when the real problem is the design of much milking equipment used by dairy farmers.

Dean Foods Payment #2 Ok’d in Southeast, DFA Payment in Late ’13? (p. 12):
The presiding federal judge has signed off on payments to Southeast dairy producers for round #2 of the Dean Foods’ settlement. Meanwhile, many dairy farmers in the region want to know when they’ll see the one-time settlement payments coming from Dairy Farmers of America. Answer: don’t bet on their arrival before the Thanksgiving turkey.

Udderly Kentucky: State-ID Retail Milk Label Start-Up (p. 12):
Writer Julie Walker details a new program in Kentucky that’s using state-produced and state-processed farm milk as a marketing tool.

Dairy Commodity Picture Waiting for Stronger Market Signals (p. 13):
All dairy commodities have modestly strengthened in the past month. The industry waits for better signals on U.S. milk production trends, as well as domestic and global demand.

Dairy Cattle Replacement Prices at Auction Markets Across the USA (p. 14):
Price signals are mixed, both regionally and by age, for dairy animals across the nation in recent weeks.

Southeast Marketplace Transitioning: Local, Quality, and Competition (p. 14):
Writer Julie Walker writes about changing marketing dynamics in the Southeast – local identity fluid milk products, higher quality standards, and increased competition for farm milk.

Thoughts for Food (p. 15):
Pete Hardin notes the abundance of apples on trees in southern Wisconsin this summer – their response to try to preserve the species, following 2012’s brutal drought. He contrasts the apple trees with U.S. politicians, who cannot forge new federal farm/food policies.

Bad Idea: Dumping Dairy’s Standards of Identity (p. 15):
Pete Hardin gives a lashing to dairy leaders who want to dump federal standards of identity for mainstream dairy products. Those leaders – such as WhiteWave’s Gregg Engles and Dairy Management, Inc.’s Tom Gallagher – claim standards of identity “stifle” innovation. Hardin argues that such standards keep scurrilous food processors from filling dairy products with all kinds of crapola, in their drive to cut costs and dumb down products.

USDA’s Latest Drought Overlay Maps for Soybeans & Corn (p. 16):
One of our stories of the month. Read it here.

August 2013 Issue No. 409

Inside this month’s issue...

Feature Story – 2013: Just How BAD a “Weather Year” Still Being Determined (p. 1):
U.S. agriculture entered spring 2013 with minimal reserves of forage and grain, prior to 2013’s crop harvests. So far this year, many areas of this nation have been hammered with adverse weather. Ahead? Questions about whether there will be adequate heat during the rest of this summer to bring the corn crop to maturity. Read our August feature story here.

Mid-August to Mid-October: Worsening Drought for NZ (p. 1):
The Global Drought Monitor projects “severe” and “extreme” drought blanketing almost all of New Zealand in the coming two months. That period is the start of New Zealand’s pasture-based milk production cycle.

Botulism-Contaminated Whey Powder Stains Fonterra’s Exports & Reputation (p. 2):
New Zealand dairy export behemoth Fonterra recently announced a recall of whey powder products and finished goods containing whey powders. Reason: botulism bacteria in the powders.

July 2013 Class III Price $17.38 – Class IV Price $18.90 (p. 2):
Those numbers tell it all. The FMMO class prices should be heading up for August, based upon most commodity price trends (except butter).

The Great Forage Shortage of 2013-2014 (p. 3):
The Milkweed has put the name on it. U.S. livestock owners face terrible shortages of forage until at least mid-spring 2014. In many parts of the country, forage will be impossibly tight and expensive.

Survival Strategies for Tight Forage & Feed Supplies/Costs (p. 3):
We offer general and specific suggestions about how dairy farmers may strategies if they’re facing tight feed supplies. For example: Lock in grain prices RIGHT NOW, while corn and soybean prices are low.

What is the Food Safety Modernization Act of 2011??? (p. 4):
FDA is struggling to put into place a wide array of food safety rules, in response to a mandate to a federal law passed in 2011. Dairy plants will be an early focus on a set of tougher inspections. Take this one seriously!

ACS Panelists Discuss FDA Dairy Plant Inspections (p. 4):
At the recent American Cheese Society convention in Madison (early August), two cheese plant operators and a food safety expert discussed what to do when the federal inspectors come knocking on your plant door. Start being prepared in advance!

Forage Shortfall & Higher Costs Pulling down Bull Calf Markets (p. 5):
Prices for day-old bull calves have fallen by more than 500% in the past couple months in both California and Wisconsin. (We didn’t have time to survey other areas for this relatively obscure matter.) Scarce supplies and high costs of forage are inspiring many producers not to add any more forage-munching critters.

“The inspectors are coming. The inspectors are coming.” (p. 5):
Federal food safety inspectors won’t be the only ones knocking on your door. Private food processors and retailers are setting up their own inspections to try to protect from potential liabilities in the event of food-borne illnesses.

Tom Kilcer’s Insights: Climate Change … or Climate Cycles? (p. 6-7):
Paris Reidhead interviews Tom Kilcer – who runs the Cornell Research Farm at Valatie, New York – about the need to relook cropping choices and strategies in light of cyclical climate events. Kilcer offers a lot of insights regarding evolving weather issues and more appropriate crops to meet those challenges.

Two Nutrition Peaks – Silk and Dent – For Corn Harvested as Silage (p. 7):
Interesting! Cornell University’s Tom Kilcer explains how corn plants intended for harvest as silage have two nutrition peaks: the first at the silking stage and the second at maturity. Dairy farmers with late-planted corn this year should consider early chopping if the corn is questionable about making maturity.

New Zealand Dairy Menace Extends Far beyond Recent Botulism Outbreak (p. 8-9):
Writer Jim Eichstadt starts the first of an intended, two-part series detailing the long and sordid history of Fonterra and its predecessor, the New Zealand Dairy Board. Time and time again, Fonterra has taken advantage of naïve U.S. dairy groups and politicians while pushing a “Free Trade” agenda that torpedoes U.S. dairy interests.

“Wild Bill” Johnson’s Farm Radio Show Back on the Air (p. 11):
Retired dairy farmer “Wild Bill” Johnson – 88 years young – has revived house weekly, hour-long farm radio show on radio station WTBQ. Johnson lives in Orange County, New York … birthplace of the nation’s fluid milk industry.

Tight Forage & Milk Supplies Ahead (p. 11):
The Milkweed offers its future perspective, which includes: less farm milk output, reduced number of milk cows, higher dairy commodity and farm milk prices. A great factor driving these changes will be scarcity of forage.

GAO Audit of USDA Organic Dairy Practices Oversight Misses Mark (p. 12):
In July 2013, USDA’s Office of the Inspector General completed a two-year audit of alleged illegal practices by large-volume organic dairy farms. Ironically, visits by OIG inspectors missed key states and premises cited by those whose original complaints sparked the probe. Will Fantle analyzes the shortcomings of USDA’s probe.

August Doldrums Provide False Calm over Dairy Commodity Markets (p. 12):
Things are too quiet in the dairy commodity sector, Pete Hardin analyzes. Events involving weather and crops – in the U.S. and abroad – bear close scrutiny from dairy analysts.

Plenty stirring in the Dust in California … (p. 14):
From the collapsing bull calf market to rising forage costs, California dairy producers are watching a lot of big changes.

All in the dairy reporting game … (p. 15):
Pete Hardin tries to make sense of many different stories contained in this month’s issue, from alfalfa shortages to food safety issues.

Fonterra’s WPC recall doesn’t make sense (p. 15):
Pete Hardin puzzles about details of Fonterra’s recent WPC 80 product recall. Why did it take Fonterra 15 months to announce the botulism contamination? What good is a recall 15 months after production? Hardin concludes that Fonterra’s management is looking pretty incompetent.

Persistent Drought & Heat across Western Half of U.S. Kindle Concern (p. 16):
Weather patterns in the western U.S. are very hot and dry. We reproduce three-month outlooks for those factors for the entire nation. Also, we reproduce the August 4, 2013 “Corn Condition” table from USDA’s weekly Crop Progress Report. Key corn states show a high percent of their corn stands classified as less than “Good” or “Excellent”. And in some states, the corn crops look outstanding … if they get enough heat from here on out.

Swiss Valley: Meager Pay-Out for Long-Ago Retained Earnings (p. 16):
Those rascals running Swiss Valley Farms – a Davenport, Iowa-based dairy producers cooperative – again dramatically shorted pay-out of long-ago retained earnings. Producers who shipped to Swiss Valley Farms about 12-13 years ago received a paltry pay-back of retained earnings from that period. More importantly: members are closely watching impact of a new milk pay price system instituted by Swiss Valley for July 2013 milk sold to the co-op. The new pay price system features producers paying ALL the milk hauling costs. More next month.

July 2013 Issue No. 408

Inside this month’s issue...

Serious New Zealand Drought Projected for 2013’s Second Half (p. 1):
The London-based Global Drought Monitor projects serious drought for New Zealand during the second half of 2013. The drought worsens between July and September, and then somewhat eases in NZ’s South Island by December. If the Global Drought Monitor’s future outlook is accurate, then “Katy Bar the Door” as far as global dairy commodity supplies and prices. Much current logic in dairy is that milk production in New Zealand will be close to “normal” as the pasture season starts in August.

Feature Story: All Wet? USDA’s Latest Crop Report Ignores Grim Corn Belt Weather Realities
During a 2,300 mile tour of the central and western Corn Belt in mid-June, contributor Jim Eichstadt compares his own direct personal observations of corn and soybean conditions -- and reaches reach far different conclusions than USDA’s latest Crop Progress report. Read about it here.

June 2013 Class III Price $18.02 – Class IV Price $18.88 (p. 2):
The numbers tell it all for June manufacturing class prices in the federal milk order system. Look for July prices to decline.

Two Dozen Wisconsin Counties Declared Ag Disaster Areas (p. 3):
Adverse weather that has caused about a 50% alfalfa winterkill in Wisconsin and delayed the planting of corn in key dairy counties has gained 24 Wisconsin counties federal disaster status. Eight of Wisconsin’s nine biggest milk-producing counties are considered disaster areas.

Squeezed by Wal-Mart, PA Milk Marketing Board Drops Class I Premiums (p. 3):
Packaged milk supplied to about 80 Wal-Mart and Sam’s Club stores in eastern Pennsylvania are doing the “cross-border shuffle”. Pennsylvania farm milk is being trucked to dairy plants in New Jersey and Maryland, where that product is processed and package. Then, the fluid milk containers are trucked to Wal-Mart outlets in Pennsylvania. This practice end-runs Pennsylvania’s state milk order premiums.

Chinese Infant Formula Items Stay in the News … (p. 4):
CBS interviewed a Chinese mother who brought back 19 suitcases filled with infant formula from a business trip to the U.S. And China is investigating foreign infant formula makers for alleged “price-fixing”. By 2017, infant formula sales in China will be a $25 BILLION industry.

DFA CEO/President Rick Smith at Southeast Meeting (p. 5):
Writer Julie Walker attended a July 11 meeting in Statesville, North Carolina at which DFA Rick Smith met with some plaintiffs from the Southeast dairy antitrust case. Rare that Smith is out in public. Southeast producers hope to see their dairy cooperatives work better in the marketplace and recover marketing costs. Can DFA change its stripes?

Global Milk Prices Rebound for Milk Powders, Butter (p. 5):
On June 18 and July 2, prices for milk protein powders and butter increased at the Global Dairy Trade auction conducted by New Zealand’s Fonterra.

Dairy (and Agriculture) in Times of Aberrant Climate (p. 6):
Pete Hardin thinks futuristically about key elements needed for a sustainable, food system. “Business as usual” isn’t working. Our water and our soils are being unduly depleted. One controversial notion detailed: metering and volume-based taxation of groundwater draw. That’s just the start …

After Show Trial: Raw Milk Issues Still Front-Burner in Wisconsin (p. 6):
Following the State of Wisconsin’s failed effort to throw Amish dairy farmer Vernon Hershberger (father of 10 children) in the hoosegow for a variety of violations pertaining to raw milk sales, jurors in that trial spoke publicly about their impressions. And some state elected officials are preparing legislation to make raw milk sales legal – a move the governor opposes.

House OKs Farm Bill, Splits Farm/Nutrition Policies: Impasse Ahead (p. 7):
On July 11, the U.S. House of Representatives narrowly passed its version of the Farm Bill. But the Republican-led body stripped out any nutrition and supplemental feeding programs. This bill is Dead on Arrival if it ever gets to a conference committee with the U.S. Senate. Nate Wilson does a good job analyzing this very recent event.

Normande-Cross Cows Help Millams Rebound from Barn Fire (p. 8-9):
We profile a Minnesota dairy farming couple – Craig and Miriam Millam. After a barn fire in April 2012, they designed and built a milking parlor and bulk tank room in six month, bringing their beloved Normande-cross dairy cattle home. It’s a love affair involving the Millams and their dairy animals.

Normande Enthusiast Explains Appeal of the Breed (p. 9):
Ken Rabas, who lives in Southeast Iowa, explains his 15 years’ experience with the Normande dairy cattle breed and why those animals are special.

Some Science Behind Dairy Heterosis (Cross-Breeding) Bonus (p. 10-11):
Writer Paris Reidhead uses his talents to research and report the general phenomenon of cross-breeding. Paris notes that dairy is the only major U.S. livestock sector that has not widely incorporated cross-breeding of dairy cattle. Interesting!!!

New Dairy Plants & Tough Forage Conditions: Tighter Northeast Supply/Demand (p. 12):
In New York and the Northeast, dairy plants are being dramatically built new and others are expanding. With generally terrible conditions for crops this spring and early summer in NY and New England, where’s the milk going to come from to fill these plants?

Lower CA Output & Export Deal Tighten NFDM; Cheese &Y Butter Abundant (p. 13):
Pete Hardin’s dairy commodity review finds milk powder supplies due to lower production in California and a big export deal that’s being filled. Meanwhile, heat in the West and poor crops in the Midwest are reducing milk volume and/or milk-solids content of farm milk. Plenty of butter and cheese in inventory at present.

Incredibly Wet Spring Delays Field Work in NY and New England (p. 14):
We’re privileged to print a summary and analysis of Northeast weather trends written by Steve Taylor. Steve paints a picture (in watercolors) of record rainfall across New York and New England, and the impact on local crops.

Ramblings on current events … (p. 15):
Editor Pete Hardin tries to make more sense out of a number of current events, from weather the politics.

What’s Up at Swiss Valley Farms Co-op??? (p. 15):
Letters have gone out to members of Swiss Valley Farms, the Davenport, Iowa-based milk cooperative. Members will no pay all trucking costs to the nearest milk outlet served by Swiss Valley. Is Swiss Valley preparing to sell off its assets and “do an Alto”? (Note: Several years ago, Alto Co-op of Waupun, Wisconsin sold its assets to Canada’s Saputo Cheese and relinquished the producers from heir contracts.)

June 2013 Issue No. 407

Inside this month’s issue...

Cold, Wet Weather Dampens 2013 U.S. Crop Picture, Global Outlook Worsens (p. 1):
Cold, wet weather has slowed spring planting and emergency of annual crops like corn and soybeans. Jim Eichstadt details how U.S. crops are lagging behind normal progress, but that U.S. and United Nations food analysts are still talking about near record harvests. This article takes a “global” look at crop inventories and progress … and finds sobering conclusions.

Dairy Waits for Clear Signals from Crops, Supply & Demand (p. 1):
The U.S. dairy industry is waiting for clearer signals involving weather, crops and dairy demand. Dairy inventories of cheese and butter are ample. But the U.S. is the only source of residual dairy products in the world! We n note that recent Global Dairy Trade prices for Cheddar cheese were 48 cents per pound higher than corresponding block Cheddar prices at the Chicago Mercantile Exchange.

Wisconsin Dairy Industry Faces SEVERE Forage Crisis (p. 2):
Entering this spring, Wisconsin farmers had virtually zero carry-over inventories of forage. And this spring has turned sour for forage producing. Alfalfa has suffered untold tens of thousands of acres of winterkill. And continued wet weather means normal first cuttings of forage are behind schedule.

Screwy House Ag Politics: Lucas Stalls, Boehner Caves In (p. 2):
The circus known as the U.S. House of Representatives now has the “Farm Bill ball” and Congress is fumbling. House Ag Committee Chair Frank Lucas (R-OK) recently claimed he’s not sure there will be a farm bill debate in mid-June. And House Speaker John Boehner (R-OH) did a 180-degree turn and now says he’ll vote for any farm bill package.

May 2013 Class III Price $18.52 – Class IV Price $18.89 (p. 2):
May manufacturing class milk prices in USDA’s federal milk order system increased nicely. But June prices should slide backwards, due to recent commodity price declines.

U.S. Senate Passes Farm Bill, But Obstacles Ahead (p. 3):
Writer Nate Wilson tracks recent events in the 2013 farm bill progress. The U.S. Senate has passed its farm bill package. That package includes the “Dairy Security Act”. Now the battle moves to the House of Representatives, where proposed funding for food assistance programs is a prime contention.

Lifeway Buys Former Golden Guernsey Plant (p. 3):
A federal bankruptcy judge has awarded ownership of the former Golden Guernsey dairy plant in Waukesha, Wisconsin to Lifeway Foods – the nation’s predominant manufacturer of kefir. Winning bid: $7.5 million.

DFA/Dairylea Boost Quality Penalties, Northeast Demand Goes Backwards (p. 4):
Two major Northeast dairy cooperatives have informed members that stiffer penalties against farm milk testing above 500,000 Somatic Cell Count are in place, effective June 2013. Unstated revisions in volume premiums are also in place. A letter from the co-ops complained that more producers are collecting volume and quality premiums. Meanwhile, a cool spring has combined with slow fluid milk demand and less need for milk into yogurt manufacture.

Ohio Holstein Assn. Bounces Checks from spring Consignment Auction (p. 5):
What a mess! Consigners to the spring sale held by the Ohio Holstein Assn. ended up with $169,000 worth of rubber checks. The money was seized, per court order, for losses involved in a 2011 heifer export deal gone wrong. Don Alexander, manager of the Ohio Holstein Assn., allegedly “free-lanced” the deal and somehow involved the association without knowledge of or approval from the board of directors.

Chobani Yogurt in NYS: Dark Sides to “Success” (p. 6-7):
Did you know that Chobani Yogurt’s plant in South Edmeston, New York takes in 70 big trailers of milk per day? But that Chobani’s wells are drawing two to three times that much water each day from the underlying aquifer? Neighbors’ wells are drying up. Paris Reidhead visits neighbors of Chobani’s plant and finds a lot of frustration, involving new power transmission lines, property tax breaks, etc.

Wisconsin’s Raw Milk “Show Trial” Yields Slap on Wrist to Producer (p. 7):
The State of Wisconsin’s prosecution of Loganville dairy farmer Vernon Hershberger for alleged illegal sale of raw milk ended in with the Sauk County jury convicting Hershberger on only one charge. State prosecutors sought to jail the father of ten children for one year. Even after his victory, state lawyers proposed jailing Hershberger for alleged violation of his bail agreement.

Feature Story: DFA’s 2013 Financial Audit Horrid, Even by DFA’s Low Standards (p. 8-9):
Our story of the month … and it’s not pretty. Read all about it here.

Farm Bill Clause Gives Huge Advantage to Multiple-Herd Operators (p. 10):
Writer Julie Walker analyzes a key section of the dairy portion of the proposed 2013 federal farm legislation. That provision specifies that producers with more than one milking operation may participate in the dairy gross margin insurance program selectively. In other words, they could sign up one dairy for gross margin payments, and make all they milk they want at other sites.

Chinese Buying Largest U.S. Pork Producer/Processor (p. 10):
China’s largest meat processing firm – Shuanghui International Holdings, Ltd. – is proposing to buy the United States’ biggest pork producer and processor: Smithfield Foods. This deal has many ramifications … starring with China’s dire need to boost available food for its citizens in the face of disease problems with both poultry and pork.

Erroneous Acid Whey Article Prompts Industry Response (p. 11):
Nate Wilson explores alleged controversy about Greek yogurt plants’ acid whey disposal issues. A recent start-up farm magazine article depicted that acid whey as an environmental evil. Nate does a reality check.

Water. Water. Water. Critical Issus of Supply & Quality (p. 12):
Pete Hardin takes a long look at a variety of recent water issues in the news. Conclusion: the availability of adequate supplies of quality water looms as THE issue of the future in the United States.

Dairy Prices in Limbo, Awaiting Weather, Crop & International Signals (p. 13):
In the past month, U.S. dairy commodity prices have mostly slid backwards a bit. Inventories are relatively high, here in the U.S. But the world has virtually no dairy commodity reserves. Milk flow is strong, in part due to cool spring weather in the Northeast and Midwest. Buyers are waiting for signals that the dairy commodity prices have bottomed out before they start buying in normal quantities.

Dairy Cattle Replacement Prices at Auction Markets across the USA (p. 14):
We offer this month’s summary of the dairy livestock trade.

Harvesting Complete Proteins from Wastewater-Fed Yeast (p. 14):
Pete Hardin writes about the “most amazing wonder I have witnessed” in 49 years as an agricultural journalist. Pete takes readers back to snowy northern Maine in January 1978 – where he saw wastewater from a potato processing plant used to grow yeast. When adult (6 hrs.) the yeast were “harvested” (by centrifuging the water and drying the slurry), the yield was a 44% complete protein powder. Hardin puzzles how such technologies could revolutionize the protein sector in a protein-scarce world.

A2 Milk vs. Aspartame: health vs. neurotoxins (p. 15):
Pete Hardin looks at the marketing success and health claims associated with “A2 Milk” – the genetic variant detailed by Paris Reidhead in the May 2013 issue of The Milkweed. Hardin contrasts the health-based marketing aspects of A2 milk, with the idiocy here in the U.S. that finds dairy’s two major trade associations promoting policies to put “non-nutritive sweeteners” (like Aspartame/NutraSweet) into more than a dozen dairy products with no front-panel notice. We project that A2 milk – which is not commercially marketed at this time in the U.S. – could be a great opportunity for small and medium size dairy processors and producer-handlers.

U.S. Dairy Prices Continue to Lag Strong Global Markets (p. 16):
As of early June 2013, cash market prices for block Cheddar at the Chicago Mercantile Exchange lagged about 48 cents per pound behind Cheddar prices in international trading. Ouch.

Fluid Milk Promotions Stink (p. 16):
Fluid milk sales are in the dumpster. Hard to believe, but a total of 35 cents per hundredweight (just over three cents per gallon) is collected by government programs on milk processed into Class 1 for promotion. Talk about a waste of money!

May 2013 Issue No. 406

Inside this month’s issue...

U.S. & global Dairy Walking Tightrope with No Safety Net (p. 1):
Both the U.S. and New Zealand are coming off severe droughts. We analyze how severe droughts often carry a “long tail” that stretches into the next year’s milk output. Parts of the U.S. face serious alfalfa winterkill problems.

Wet, Cold Spring Clouds 2013 Crop Outlook (p. 1):
Writer Jim Eichstadt takes a long look at the package of factors weighing on U.S. farmers here in spring 2013. Increasing delays on spring planting are perceived to be reducing grain yields … question is, by how much?

USDA to Start Issuing MILC Funds; Tight Money Stalls Fieldwork (p. 2):
Writer Nate Wilson details how in his corner of western New York State, normal spring field work on local dairy farms is slow this spring, due to scarcity of money. Wilson reports that USDA has finally announced it will be issuing much-needed checks for the MILC safety net program.

April 2013 Class III Price $17.59 – Class IV Price $18.10 (p. 2):
Slight gains for the cheese and butter-powder milk prices in USDA’s federal milk orders … after five months of declines.

DFA Hammered by Record $133,000,000 Loss in 2012 (p. 3):
Small wonder that DFA was light on financial details at its annual meeting. The nation’s biggest dairy cooperative suffered its worst-ever bottom line in 2012: -$133 million. $212 million worth of litigation costs pulled down the year’s bottom line. Funny thing: at the 2012 annual meeting one year ago, CEO “Tricky Rick” Smith claimed that lawsuits against DFA were “ridiculous”. Well, DFA paid down $212 million worth of “ridiculous” last year … with plenty more cases facing DFA in court.

Reflecting Critical Global Dairy Situation (p. 3):
The recent American Dairy Products Institute’s annual conference drew a record 850 attendees. Key questions focused on what’s going on in the world’s dairy industry, from supply-demand standpoints.

NCIMS Again Rules Against 400,000/ml SCC for Grade A Milk (p. 4):
Once again, the National Conference of Interstate Milk Shippers voted against a proposal to reduce the legal limit for Somatic Cell Counts in Grade A milk at that group’s every-other-year conference in April.

Q1 2013 Cheese Exports & Revenues +8%: But NO Price Increases Per Unit (p. 4):
All the hoopla about U.S. dairy exports focuses on volume, but ignores prices per unit. In 2013’s first quarter, U.S. cheese exports and revenues rose 8%. But CME block Cheddar prices were up 14 cents per pound for the relevant time frame (Dec. 12 – Feb. 2013). U.S. butter exports for 2013’s first quarter were up 19%, but sales volume rose only 14%.

China’s Protein Supply (Dairy, Meat) Facing Serious Challenges (p. 5):
A serious of poultry and pork health problems have hit China, just at the same time China’s biggest dairy import supplier – New Zealand – has seen milk flow dry up. Bottom line: China’s supply of human-quality protein is becoming scarcer.

China’s Infant Formula Demand Spike Explained: More Babies! (p. 5):
One reason why the Chinese are scouring the world for quality infant formula products is because of a baby boom last year. The “Year of the Dragon” – which ended in early 2013 – is considered the best year for having a child in China. So many families planned accordingly …

MPC “GRAS” Safety Petitions Withdrawn Due to Infant Formula Questions (p. 6):
Two dairy groups – the American Dairy Products Institute and the U.S. Dairy Export Council – have temporarily withdrawn a petition seeking FDA’s consent for GRAS (safety) approval of Milk Protein Concentrate (MPC) as a food ingredient. The hold up: stricter rule concerning MPC use in infant formula products.

Would FDA GRAS Approval for Infant Formula Open Door for Substandard, Imported MPCs? (p. 6):
THE Question. The recently withdrawn petition seeking GRAS safety okay for MPCs was held up by questions regarding infant formula use – for good reason. Danger is: okaying MPCs would leave infant formula makers able to use imported dairy proteins … without the benefit from modern dairy production and sanitation. Contaminated dairy protein products in infant formulas have been linked to infant deaths in the past.

Feature Story: Analyzing Key ADPI Speakers’ PowerPoint Panels (p. 8-9):
The recent American Dairy Products Institute (ADPI) annual conference in Chicago (April 28-30) was loaded with speakers and valuable information. Our May feature story looks at some of the highlights here.

A2 Milk – New Chapter of Dairy Health from an “Old Gene” (p. 10-11):
Writer Paris Reidhead; takes us on a long, scientific trip through the genetics and potential health benefi8ts of “A2 milk.” A minority of U.S. dairy animals express proteins that seem to address some persons’ discomfort following milk drinking. Interesting!

SMA Bleeding Southeast Members’ Milk Checks (p. 12):
Writer Julie Walker profiles a scary current mess in the Southeast. The regional milk transportation superpool – the Southern Marketing Agency – has lost DFA as a member. Suddenly, hauling costs during the “spring flush” have climbed to the moon. What’s going on???

Commodity Prices Up/Down: Industry Gauging “Spring Flush” & Global Events (p. 13):
Dairy commodity cash prices at the Chicago Mercantile Exchange are up/down, given uncertainty about global weather events and their impacts upon milk out in major dairy nations/regions.

Chinese “Organic” Imports: Not Good Enough for Pet Food (p. 14):
At a Congressional hearing in early May, a stinging review of poor-quality food imports (including organics) from China was aired. Will Fantle from the Cornucopia Institute reports on this hearing.

California’s Feb.-Mar. 2013 Milk Flow: -4% (p. 14):
Milk production for the nation’s largest milk-producing state fell an average of four percent in February-March, according to USDA data (adjusting for 2012’s Leap Year). Dry soils don’t portend well for California’s production of crops in 2013.

Dairy just part of Farm Bill foolishness … (p. 15):
Pete Hardin scorns the current farm bill process as a subsidy for insurance company profits. Better than taxpayer-subsidized “Gross margin insurance” for dairy, the dairy industry should attain a fair price for producers from the market place. Trouble is: politicians would rather pass indirect taxpayer subsidies than see consumers pay full price at the supermarket!

Obama White House politics thick, troubling in D.C. (p. 15):
The latest scandal of siccing the IRS on “tea party” groups is just the latest in a recent series of wrong-headed White House endeavors.

Global Dairy Prices Continue to Beat U.S. CME Prices by Wide Margin (p. 16):
The most recent Global Dairy Trade auction conducted by Fonterra saw prices generally slip. However, these global dairy prices remain well above U.S. cash market prices.

Drought in NZ, Central U.S. Estimated to Persist Through 2013 (p. 16):
We cite forward projections by the Global Drought Monitor to show that coming months will show little relief for New Zealand’s drought. Meanwhile, the Central U.S. continues generally dry.

April 2013 Issue No. 405

Inside this month’s issue...
World Dairy markets Surge as Drought Stunts Milk Production in South Pacific (p.1):
Read our story of the month here.

MILC Payments “Sequestered” But USDA Offers No Details (p. 2):
USDA personnel cannot explain what’s going on with the “sequestered” MILC program payments to dairy farmers. That’s probably because USDA’s top officials don’t know.

Record Corn Price Tumble Defies Short-Term Fundamentals (p. 2):
Late March gov’t report shook about $1 per bushel out of cash corn markets in the following week, probably for no good reason. The grain trade seems all to willing to be spooked down by USDA reports, while the weather situation is not good for early spring.

March 2013 Class III Price $16.93 – Class IV Price $17.75 (p. 2):
The headline says it all. These prices should be the bottoms for some time.

Mid-East Co-op Superpools Collapsing: Ripple Effect to Hit Chicago (p. 3):
The Continental Co-op has assumed a full raw milk supply deal with the Meijer’s stores fluid milk plant in western Michigan. That move boots out other local raw milk suppliers. The Michigan superpool is collapsing. The Mid-East (Order 33) superpool will likely die by May 1. Look for this chaos to spread to Order 30 (Upper Midwest).

Serious Global Shortage of Human-Quality Protein Ahead (p. 4):
Adequate, complete protein is a daily requirement for proper human brain and muscle function. Global supplies of human-quality proteins are constricting.

England Limits Shoppers’ Purchases of Infant Formula as Chinese Visitors Empty Retail Store Shelves (p. 4):
Halfway around the world, the government is taking action to protect the nation’s customers from Chinese travelers vacuuming up infant formula to take back to China. Producers’ Class Action Lawsuit vs. DairyAmerica and CDI (p. 5): We explore details of the major class action lawsuit by dairy producers against two dairy cooperatives – DairyAmerica and California Dairies. At issue: admitted misreporting of weekly milk powder prices to USDA’s NASS. Those unduly low weekly sales reports depressed farmers’ milk prices under USDA’s federal milk order program.

SE Milk Litigation: The Fairness Hearing Signals End is Near (p. 6):
Writer Julie Walker has attended all but one courtroom session of the Southeast Dairy Antitrust Litigation … and she’s happy to report the end game: an April 3, 2013 “Fairness Hearing” at which regional dairy farmers commented on the $140 million settlement with Dairy Farmers of America. A lot of eloquent Southeast dairy famers are quoted.

Southeast Dairy Litigation Payments Appear Taxable by IRS as “Gross Income” (p. 6):
DFA taketh away. The courts restoreth. IRS taketh away some of what the court restoreth.

“Retired” Dairyman Sam Simon’s Rx: Quality Milk Niche Markets (p. 8-9):
Paris Reidhead describes the “Hudson Valley Fresh” dairy co-op – a nine-member group in New York’s lower Hudson Valley that markets its own brand of top-quality dairy products processed from their top-quality milk. Sam Simon (a retired osteopathic surgeon) grew up on a local dairy farm and has dairy in his blood – and a top-notch marketing concept for the co-op.

Boice Brothers Dairy, Inc. … 99 Years Young and Growing (p. 9):
New York State’s oldest, family-owned dairy processing business turns 100 next year. The Boice family is now in its fourth generation of family members working at the plant. Boice Brothers custom processes dairy products for Hudson Valley Fresh co-op, which is described in this issue.

Wisconsin’s “Milk uber Alles” Policies Draw Citizen Ire, USEPA Scrutiny (p. 10):
Wisconsin’s state government is pushing dramatic growth for its farm milk supply to meet perceived milk shortages relative to state dairy plants’ needs. But along the way, key water quality oversight is failing, critics charge.

Sen. Gillibrand Proposes Federal Dairy Policy Reform Alternatives (p. 11):
U.S. Senator Kirsten Gillibrand (D-NY) has unveiled a set of dairy policy proposals that seek to boost dairy farmers’ safety net and provide transparency to the milk pricing process.

Detailing Milk Needs of Major Northeast Plants (P. 11):
Nate Wilson starts on a project to estimate the raw milk needs for the many new dairy palnts coming on line in the Northeast. Looks like too many dairy plants will be chasing too few cows.

Aspartame/NutraSweet: Dairy Doesn’t Need Another Food Safety Battle (p. 12):
We review articles written four years ago by Paris Reidhead about the evils of Aspartame/NutraSweet and certain other artificial sweeteners. FDA is taking citizens’ comments on proposals to allow “non-nutritive sweeteners” in a wide array of dairy products.

Fueled by Global Shortages, All Dairy Commodities Show Big Gains (p. 13):
Holy cow! In the past few weeks, dairy commodity prices at the Chicago Mercantile Exchange’s cash trading have shot up dramatically. Why? Severe adverse weather in New Zealand and Australia has dried up the global dairy trade.

Obama Pushing Trans-Pacific and New European “Free Trade” Pacts (p. 14):
Major trade deals are being pushed hard for both the Pacific and Atlantic trading partners by the Obama administration. Dairy interests should beware: access to U.S. dairy markets has been the goal of foreign interests for more than 40 years.

Rx for milk pricing: One class of milk, free hauling (p. 15):
Milk is tight globally, and it’s getting tight in the U.S. Pete Hardin tries to cut through all the bull in milk pricing/policy and explains why a single class of milk, nation-wide would be best. And free-hauling (for producers) for dessert!

Early April 2013 U.S. Drought Conditions Worse than Year-Ago (p. 16):
Adjoining U.S. Drought Monitor maps, one for early April 2013 and the other for early April 2012, show that drought conditions are dramatically worse west of the Mississippi River this year than last year. Sobering. The Missouri River watershed is really in trouble!

Chobani’s “Blood Orange” Yogurt: Adult Dairy Product Perfection??? (16):
Editor Pete Hardin has fallen in love … with Chobani’s “Blood Orange” yogurt. The combination of lactic acid and citric acid on the taste buds is addictive.

March 2013 Issue No. 404

Inside this month’s issue...

Feature Story: Oceania’s Milk Output Falls, Global Dairy Prices Soar (p. 1):
Read our “Story of the Month” here.

Volatile U.S. Dairy Climate Looms … (p. 2):
Global and national weather events, grain supplies, tightening global dairy supplies and the financial uncertainty surrounding Dairy Farmers of America and Dean Foods all present a volatile outlook the U.S. dairy industry in for 2013.

February 2013 Class III Price $17.25 – Class IV Price $17.75 (p. 2):
Cheese milk prices are down, while butter-powder milk prices climbed a hair for February 2013.

Dean Foods Losing Hundreds of Walmart/Sam’s Club Accounts (p. 3):
Starting in mid-March, Walmart/Sam’s Club stores will shift packaged milk suppliers in several parts of the country. Dean Foods is set to lose significant business volume, as Walmart has rebid milk suppliers.

DFA Members Deserve Straight Answers at March 18-19 Annual Meeting (p. 3):
What about that additional $1.2 billion of debt that Rick Smith talked about in late January in Atlanta? How much is Smith’s total compensation from DFA and subsidiaries/joint ventures? If ever DFA members deserved straight answers about their cooperative’s financial condition, that time is n-o-w.

Greek Yogurt Casts Shadows on Competitors (p. 4):
Retail data from 2012 suggests that most of the growth in Greek yogurt sales has come at the expense of non-Greek competing products? Greek yogurt grew by 71% in retail sales last year.

Whole Foods Will Label Food’s GMO Content (p. 4):
Starting in 2018, the Whole Foods chain will start labeling genetically-modified organisms’ content in its food products. Bravo!

ZERO Grass-roots Support for National Milk’s Dairy Plan at FarmFirst Convention (p. 4):
How many of the 300 or so delegates/members attending the FarmFirst dairy co-op annual meeting in Wisconsin in early February raised their hands, when polled whether they understood and would sign up for the Gross Margin Insurance program contained in the Dairy Security Act? Z-E-R-O!

Superior Dairy (Ohio) Bidding for Golden Guernsey Plant (p. 4):
The parent firm of Superior Dairy (Canton, OH) has submitted a $5.5 million bid to acquire the property of Golden Guernsey dairy in Waukesha, Wisconsin. Superior Dairy has a unique distribution model – shrink-wrapping flat-topped- plastic gallon containers of milk for its Costco account. No lost plastic dairy crates.

Strategizing Your Dairy through these Volatile Times (p. 5):
Ideas to study for dairy farmers facing tough cash flow times.

“Non-Nutritive Sweeteners” in Dairy Products? (p. 5):
Talk about a bad idea. Dairy’s two largest lobby groups have petitioned the federal Food and Drug Administration to include “non-nutritive sweeteners” (like aspartame and saccharin) in a wide array of dairy products. Another battle dairy does not need!

GIPSA FOIA Follies: A “Rookie” Dairy Journalist’s Initiation (p. 6):
Retired dairy farmer Nate Wilson tells a semi-humorous tale about his long-running battle with USDA bureaucrats to obtain information from a finalized investigation involving fraudulent sale of livestock by personnel at Empire Livestock in New York State. We reprint one of the few documents that USDA’s Grain Inspection Packers & Stockyards Administration provided: a page with four dozen redacted (blanked out) portions.

PepsiCo/Muller “FrütUp” Yogurt Contains Fishy Gelatin (p. 7):
The Milkweed gives “two thumbs down” to the “FrütUp” yogurt products now being sold by the PepsiCo/Muller joint venture. These yogurts – produced in Germany as a U.S. plant is being built – are disappointing in many ways. Perhaps worst of all: the “fruit mousse” contains a gelatin made from tilapia (a fish). No allergen warning for persons allergic to fish!

Fair Oaks Dairy Harvests Low-Cost Bio-Gas and Ammonia Fertilizer from Manure (p. 8-9):
High-tech processing of manure can now yield both bio-gas fuel for trucks, as well as a high-nitrogen fertilizer. That’s the research bearing fruit at Fair Oaks Dairy in northwest Indiana. Project manager Mark Stoermann leads us through this cutting-edge manure management. He also explains possible revolutionary aspects to dairy transportation available through RNG (Renewable Natural Gas, from methane) and Compressed Natural Gas.

Ex-NY Dairyman Terry Dye Went West … (p. 10-11):
Paris Reidhead visits Dyecrest Dairy at Fort Collins, Colorado. Dyecrest sports a 30,000+ pounds of milk herd average on 1500 milk cows. The Dye family pays a lot of attention to detail and retaining quality employees.

Colorado Wildfires Will Cut Ag Water as Big Dairy Expansion Underway (p. 10):
As Colorado’s dairy industry is poised to expand milk production, water realities pose a serious threat to future growth. Water coursing off slopes of burned-off mountains is bringing with it ash and other pollutants that are seriously harming water quality.

WI Ag Dep’t Slaps Cheese Labeling Scofflaw on Wrist … Again! (p. 12):
When does this horse manure stop??? Once again – for the third time -- The Milkweed exposed the same Sun Prairie, Wisconsin business for illegally labeling imported processed cheese as Gouda. Once again, Wisconsin’s agriculture department investigated and found violations. And once again, the state wrote a “nasty letter” to the violator.

Southeast Milk Litigation: Money in Escrow; Next Chapters (p. 12):
Julie Walker details the continuing legal process that follows settlement of the DFA antitrust lawsuit in the Southeast. Dairy farmers who sign up to receive damages payments will receive one lump sum from the settlement.

Blessing or Curse?: Ominous Build-Up of NFDM Inventories (p. 13):
Pete Hardin’s dairy commodities report analyzes the astronomical accumulation of nonfat dry milk inventories in the U.S. But a the same time, global dairy commodity prices are sky rocketing, due to adverse weather that’s seriously pulling down farm milk output in New Zealand and Australia.

Crop Watch: Pay Close Attention to Soybeans, Forages (p. 14):
As we exit winter, critical feed resources are getting scarce – such as soybeans and dairy-quality forages.

Milking another man’s “bad-luck cow” … (p. 15):
Pete Hardin discusses long ago wisdom about how the only time some in agriculture may profit is when other farmers suffer bad luck or bad weather. He poses the current question: do U.S. dairy marketers (particularly cooperatives) have the gumption to produce and market U.S. dairy products to catch the fast-climbing world market prices? Historically, U.S. dairy cooperative marketers have given it away.

Protein. Protein. Protein. (p. 15):
Protein is the “hot item” in food marketing. Sources of human-quality protein are becoming increasingly scarce and expensive. The U.S. dairy industry offers the lowest-cost, high-quality proteins available – in a glass of milk. Why don’t the over-paid geniuses working for dairy promotion organizations promote fluid milk’s cost-efficient protein content???

California Water Reservoirs & Mountain Snowpacks near Normal Levels (p. 16):
We survey the latest maps and graphics from the California Department of Water Resources. Despite relatively dry conditions in early 2013, state-wide reservoirs and snowpacks are very close to normal levels. That’s good.

Did DMI Pay Julian Toney $859,197 for 8 Months’ Work in 2011??? (p. 16):
In his final partial year of employment with dairy promotion organizations, “poor” Julian Toney appears to have netted $859,197 from Dairy Management, Inc. for a whopping eight months’ work in 2011. It takes a good tax lawyer to try to figure out Toney’s final take-home. Toney cashed out about $1.4 million in deferred income in 2011. The Milkweed has long contended that DMI executives are ridiculously over-paid.

February 2013 Issue No. 403

Inside this month’s issue...
Feature #1: Late 2012 “NSPF Cheese” Import Surge Helps Sink Cheese, Milk Prices (p. 1):
This report is one of our “Stories of the Month.” Read it here.

Producers Must Sign Up by Feb. 29 For 2013 MILC Program Eligibility (p. 2):
USDA has unveiled new rules and regulations for the new MILC program. But dairy farmers must sign up by the end of February to qualify for these payments.

December ’12 Nonfat Powder Production/Inventories Soared Dangerously (p. 2):
December 2012 saw an astronomical increase in both production and inventories of nonfat dry milk in the U.S.

January 2013 Class III Price $18.14 – Class IV Price $17.83 (p. 2):
The numbers say it all!

Dean to Lose Big Chunks of Wal-Mart Business in Early 2013 (p. 3):
Wal-Mart bid out fluid milk supply contracts over many parts of the U.S. last fall. Results are coming in. From mid-March through late April 2013, Wal-Mart will be replacing some of its milk suppliers with competitors. Sources say that Dean Foods will take some serious hits as these changes roll out.

Founder’s Ex-Wife Sues for 53% of Chobani Yogurt Empire (p. 4):
The former wife of Chobani yogurt king Hamdi Ulukaya sued him last August, seeking 53% control of the nation’s largest yogurt firm … plus $530 million in damages. Ulukaya disputes per claims. She claims to have a letter written by Ulukaya detailing her ownership share. Post-divorce, she loaned him money to start into dairy processing.

Aftermath: Costs of DFA’s “Bad Form” Business – A Billion Dollar Moving Target (p. 5):
Another story available in full as a “Story of the Month.”

Southeast Litigation: Settlement, Smith, Speaking Out and Stepping Up (p. 6):
Julie Walker details the post-mortem details of the settlement of the Southeast dairy antitrust litigation.

DFA’s “Tricky Rick” Obfuscates Again (p. 7):
Pete Hardin details the long history of DFA CEO “Tricky Rick” Smith’s inability to be truthful about the history of his cooperative’s financial condition.

Twice Scorched by Drought, Now Well-Stocked with Forage (p. 8):
The father-and-son team of Pat and Andy Leonard operate a picture-perfect dairy farm in Lafayette County, Wisconsin. They “hedge” the feed and forage needs for their 48 registered Holsteins by storing nearly a year’s worth of forage and other feeds.

Feature #2: December ’12 Ugly: More Milk & Cheese Imports, Minus Lost Fluid Sales (p. 9):
This story is available here as a “Story of the Month.”

Farmers’ Response to 2012 Drought: Adopt or … Shrivel (p. 10-11):
Paris Reidhead takes a lengthy look at crop and soil moisture management strategies that dairy farmers may use to lessen the impact of moisture shortages.

Castor Bean Oil Seed: Valatie, NY Research Update: (p. 12):
Last fall, Paris Reidhead detailed exciting bio-fuel research at a Cornell University research farm in the Upper Hudson Valley. Bottom line: bio-fuel extracted from castor oil beans equaled 170 gallons per acre! And the castor oil bio-fuel has a “gelling point” of -78 degrees F.!

Organic Promotion Check-off Proposal Pushed Hard by Industry Lobby Group (p. 12):
Will Fantle of the Cornucopia Institute writes about a proposal circulating in organic farming circles that would set up a mandatory USDA promotion check-off. More questions than good answers here.

Cheese Imports & Nonfat Dry Milk Glut Pulling Down Commodity Prices (p. 13):
Recent big gains in production of nonfat dry milk and cheese have put those commodities’ price structures in uncertain positions. Meanwhile, a big slug of “Other NSPF Cheese” entered the U.S. in late 2012 – displacing U.S.-produced barrel Cheddar.

NYS Needs 180,000 More Cows; Environmentalists Wary (p. 14):
Writer Nate Wilson will be covering the emerging debate in New York State about how to fill all those yogurt plants that are now under construction or expanding.

NZ’s Fonterra is part of the problem … (p. 15):
Pete Hardin lists a long list of antics by New Zealanders that have “skunked up” the U.S. dairy market place. Aluminum shavings in your cheese, anybody???

“Muscle Milk” Claims “No Milk” Despite Dairy-Derived Ingredients (p. 16):
Talk about a bunch of baloney! We list the ingredients for “Muscle Milk” – a product that claims “Contains No Milk.” But several of the dairy ingredients are dairy ingredients …and the allergen statement warns of ingredients derived from milk.

Post-Collapse, Many Details Remain in “Settling” Golden Guernsey (p. 16):
Many legal issues remain to be sorted out, following the early January 2013 shuttering and Chapter 7 bankruptcy filing of the Waukesha, Wisconsin-based fluid milk processor, Golden Guernsey.

January 2013 Issue No. 402

Inside this month’s issue...

When Will Factors Pull Down U.S. Milk Production??? (p. 1):
Despite many tough factors, U.S. dairy farmers continue cranking out more milk. Many industry sources believe the flow of farm milk will start going backwards in very few months.

USDA’s FSA Devastating New MILC Program Details (p. 2):
Details to follow … Farm Service Agency staffers are drawing up details the the Milk Income Loss Contract (MILC) program authorized by legislators in the rolled-over federal farm legislation.

USDA’s Final Grain 2012 Analysis Close to Recent Estimates (p. 2):
The January 11, 2013 WASDE grain analysis by USDA comes close to prior months’ data. Single statistic to watch: “carry-over” stocks. As of 8/31/13, USDA expects that both corn and soybean stocks will be down to about two weeks supply!

December 2012 Class III Price $18.56 – Class IV $17.83 (p., 2):
The headline says it all. Manufacturing milk class prices are being pulled down by lower dairy commodity prices.

The 2012 Farm Bill Goes the Way of the Dodo (p. 3):
Writer Nate Wilson digs into the politics and personalities behind the early January roll-over of federal farm legislation to what expired last September 31. Dairy did get an adjustment on the MILC program.

Farm Law Extension Stops “$8 Gallon Milk Price” Hoopla (p. 3):
Thank goodness! In an effort to scare federal legislators, dairy politicians crafted a big lie: that consumer milk prices would rise to $6-8/gallon if the new farm bill expired without replacement.

Southeast Dairy Antitrust Trial Now Set for January 22 (p. 4):
Barring an out-of-court settlement, the epic Southeast dairy antitrust trial starts on January 22. Remaining defendants include Dairy Farmers of America, present and former DFA subsidiaries, and ex-DFA president/CEO Gary Hanman.

Farm Bill Setback Hurt Kozak’s and Peterson’s Egos (p. 4):
Two of dairy’s biggest phonies – Jerry Kozak and Collin Peterson – took it very personally when the 2012 farm bill efforts failed. It was all about them, to hear their post-game hissy-fits.

Kaput: Golden Guernsey (WI) Fluid Plant Shuts Doors Without Notice (p. 5):
In early January, one of Wisconsin’s dairy processing icons – Golden Guernsey – shut the doors on its Waukesha, Wisconsin fluid milk plant with no notice to employees, suppliers or customers. A Chapter 7 bankruptcy filing followed.

NYC’s Beyer Farms Shuts Doors Abruptly (p. 5):
New York’s largest milk distributor – Beyer Farms – was pulled down by unpaid millions owed to Dean Foods.

Chobani Commences Yogurt Production in Idaho (p. 5):
The mammoth, new Chobani yogurt plant has started production in Idaho. Idaho is now a “milk deficit state.”

Dean Foods/SMA Settlement Payments to Southeast Producers Authorized (p. 6):
Southeast dairy farmers’ long wait for initial pay-out of funds from the private settlement of antitrust charges by Dean Foods and Southeast Marketing Agency should be in their mail boxes soon.

DFA Up to Same Old Tricks in Missouri (p. 6):
On December 31, 2012, Dairy Marketing Services (DMS – a DFA subsidiary) stopped marketing milk for independent producers in Missouri (among other states).. Word from Missouri is that DFA was threatening competing raw milk procurers with a variety of items if they added any of those 100+ producers to their milk routes. Same old stuff …

Forbes Magazine Latest to Scorch Failing Fluid Milk Sales (p. 7):
The latest business publication to rake the dairy industry’s failed efforts to market fluid milk and gain added value from advanced marketing is Forbes magazine in its January 4, 2013 issue. Author Hank Cardello gives dairy marketers an earful.

More GIPSA Enforcement Actions Against Livestock Auctions & Personnel (p. 7)
USDA’s branch that oversees livestock trading has come out with a new round of penalties against livestock auctions and individuals. Sounds like more penalties are coming.

Feature Story: Time to Break DFA/DMS Stranglehold Supplying Milk to Chobani Yogurt in NY (p. 8-9):
Read our “story of the month” here.

Desertification Can Be Prevented … and Reversed (p. 10-11):
Writer Paris Reidhead takes a long, in-depth look at the spread of deserts and how grazing animals are key elements in the maintenance of grasslands and the restoration of lands being lost to desertification. Ever heard of the Dust Bowl?

Barley: Ancient & Modern Grain (p. 11):
Paris Reidhead takes us from Biblical times to the present day … with the miracles of barley discussed.

Watch Barley for Round-Up Reside Contamination (p. 12):
We report on a recent presentation by Dr. Donald Huber, emeritus professor from Purdue University. Huber details how “burn down” of barley crops – i.e., application of RoundUp herbicide – is used as a pre-harvest management practice. Trouble is: major barley users – brewers – are increasingly rejecting barley grain due to RoundUp residues contaminating the grain. Next stop: animal feed!

Early 2013: Milk Abundant, Dairy Commodity Prices Flat, But … (p. 13):
Dairy commodities have lost a lot of value in cash-market trading during the past two months. We analyze that Cheddar, whey and nonfat dry milk may not yet have found their bottom rung, price-wise.

Teamsters Union Pension Obligations: Headache for Many Processors (p.14):
On top of other headaches facing dairy processors, the pensions portion of some Teamsters Union contracts with dairy plants present some pretty inequitable situations. You’ve never read this info in any other dairy publication!

Milk pricing/marketing system is toxic (p. 15):
If toxicity is killing, then what’s happening to our nation’s dairy farmers, “thanks to” our current milk pricing and dairy marketing systems?

U.S. Dairy Farmers Better Off Without DFA (p. 15):
The Nation’s largest dairy cooperative has failed the equities and interests of its members. DFA faces some very tough times ahead – all the harder to do when management and directors are in denial.

Drier Weather Conditions Projected in U.S. & “Down Under” (p. 16):
We take a close look at key climate maps: U.S. current drought conditions, the 90-day forecast for drought in the U.S., and a six-months out look at growing drought in Australia and New Zealand. Serious stuff. Stay tuned.

December 2012 Issue No. 401

Inside this month’s issue...

CME Cheddar & Butter Prices Fall: Farm Milk Prices to Follow (p. 1):
Starting right after Election Day, commodity Cheddar prices at the Chicago Mercantile Exchange have taken a tremendous plunge. Meanwhile, CME butter started their seasonal swoon in mid-November. Those two commodity price declines will add up to a farm milk price decline by about $4.50 per hundredweight by January or February, compared to peak prices dairy producers received this fall.

Reduced Missouri River Flow Impairs Mississippi River Commerce (p. 1):
On top of lower water levels due to drought, the Army Corps of Engineers has started diverting over half of the flow of the Missouri River to store water for next year’s irrigation needs. That means the Mississippi will be barely navigable for barge traffic, over the 180-mile stretch from St. Louis to Cairo, Illinois. Many elected officials are seeking President Obama to override the Army’s actions.

CDFA Sets Dec. 21 State Order Hearing: Short-Term Hikes to All Classes of Milk? (p. 2):
California agriculture department secretary Karen Ross has called a December 21 hearing to explore short-term increases for all Classes of milk under that state’s milk pricing program. Too little? Too late?

Barring Out-of-Court Settlement, DFA’s Southeast Antitrust Trial Set for Jan. 15, 2013 (p. 2):
Unless attorneys for the two warring sides settle the case pre-trial, the epic Southeast dairy antitrust litigation goes to trial on Jan. 15.

November 2012 Class III Price $20.83 – Class IV $18.86 (p. 3):
Take a good look. Farm milk prices will follow recent steep declines in dairy commodity prices.

Dire Seed Corn Shortages Look: Lock in Supplies Yesterday! (p. 3):
The Milkweed projects a 20-24 million acre shortfall of seed corn supplies currently on hand to meet next spring’s corn planting intentions. Weather in many Southern Hemisphere areas is not cooperating with emergency plantings of seed corn acreage intended for quick turn-around after harvest in several months for planting here next spring.

2012 Farm Bill Likely Headed to Impasse in Gridlocked Congress (p. 4):
The lame duck session of Congress has many responsibilities to address, including new farm legislation – and probably won’t by the end of the year. Most likely: a one-year extension of the recently expired farm law early in 2013.

Northeast Dairy Producer Lawsuit Back on Track (p. 4):
The presiding federal judge has certified the classes for plaintiffs in the Northeast dairy antitrust lawsuit against Dairy Farmers of America and its subsidiary, Dairy Marketing Services.

U.S. Grain Outlook Remains Uncertain Going into 2013 (5):
USDA’s latest analysis shows little change in estimates for supply and demand of corn and soybeans for the current crop, now that the harvest is virtually finished. Lots of uncertainty about next year’s crops and demand – starting with the weather.

Brazil Hid Confirmed “Mad Cow Disease” Case for Two Years (p. 5):
We reprint in full a press release from R-CALF USA – a U.S. cattlemen’s group – detailing how Brazil “buried” a suspected (and later confirmed) case of “Mad Cow Disease” for two years. R-CALF USA is demanding that the federal government suspend imports of Brazilian beef into the U.S.

Dwarf Sorghum Silage Far Outperforms Corn on Shale Soil in PA (p. 6-7):
Writer Paris Reidhead digs deep into the 2012 cropping program and nutritional results harvested by Pennsylvania dairy farmer Rick Beatty. Beatty took two cuttings of “winter forage” before planting dwarf sorghum around July 4. His total yields: about 31 tons per acre of silage from the two crops. The article also discusses inputs and nutrition profile of the crops harvested.

Dairylea’s 3/31/12 Audit Masks Failed Milk-Pricing Mission (p. 8):
We analyze Dairylea Cooperative’s March 31, 2012 financial audit. The co-op’s looks better than a few years ago, but the far-flung system of dairy farmer services conducted by subsidiaries won’t last long if the milk prices don’t sustain Northeast dairy producers.

Fundamentals Don’t Explain Cheddar Cash Market Collapse (p. 9):
In summary, Pete Hardin tries to find fundamentals supporting the Cheddar price collapse at the Chicago Mercantile Exchange and comes up short.

Milk Pricing: Purposefully Indirect Path from Farm to Consumers (p. 9):
Jim Goodman, a Wisconsin producer of organic milk and beef, offers his impressions of the nation’s milk pricing system, following a meeting with officials of the Chicago Mercantile Exchange.

Dairy Market News Cheese Analyses – October, November & Early December 2012 (p. 10-11):
The Milkweed goes back and reprinted selected excerpts of weekly analyses about cheese marketing conditions from USDA’s Dairy Market News. These weeks cover the fall months leading up to the Cheddar price collapse that started on November 7, 2012 ... and beyond. Inventories were light and demand seemed solid ... right up to the crash.

Page 12 – Our “Stories of the Month.”
Read our December feature stories here.

Devil in the Details? Questions Re: By-Laws in WI Co-op’s Merger (p. 13):
Members of three Wisconsin-based dairy cooperatives are voting on merger, which will take place on Jan. 1, 2013, if approved. The Milkweed takes a hard look at the proposed by-laws for the proposed entity – FarmFirst Dairy Cooperative – and is shocked. Example: By-laws give directors powers to “borrow money, without limitation as to amount of indebtedness or liability.”

Two Key Milestones Ahead for Southeast Dairy Antitrust Case (p. 13):
Julie Walker details two big pending events in the Southeast dairy antitrust case: #1 – either settlement, or trial starting Jan. 15; and #2 – likely mailing of the first round of settlement checks to Southeast dairy producers in coming weeks. This payment will be the first of several installments from the $140 million settlement by Dean Foods.

“Too Good to be True” – Likely When Crop Insurance Concerned (p.14):
Julie Walker details many unansered questions and pitfalls about the proposed 2012 farm legislation that basically turns over U.S. farm policy to crop insurance firms. Beware!

USDA December Crop Report Sees Slightly Lower Grain Prices (p. 14):
We discuss the recently-released USDA analysis of domestic and global grain production, stocks and demand.

Many Modern Corn Hybrids Sacrifice Quality for Quantity (p. 15):
Writer Paris Reidhead takes a tough look at modern corn hybrids and finds some desired traits wanting.

A.J. Bos Agrees to Abandon Traditions Mega-Dairy Project Near Nora, IL (p. 16):
After a five-year battle against local opponents, California dairyman A.J. Bos announced he won’t build a mega-dairy on the thin soils of Jo Daviess County, Illinois. Bos’ quitting the project came as part of an agreement with the Illinois Attorney General’s office.

Cheddar, Butter Cash Prices Way Down, Despite Modest Inventories (p. 17):
Our analysis of the current dairy commodity scene.

Dairy Cattle Replacement Prices at Auction Markets Across the USA (p. 18):
Prices for dairy livestock are good, so far, for quality springers and good milk cows. Otherwise, not much buyer interest.

Nov. 2012 CME Events akin to Oct. 2001 Shenanigans (p. 19):
Pete Hardin explores parallels between the November 2012 Cheddar price collapse at CME and the October 2001 Cheddar price debacle. Note: October 2001 saw CME block Cheddar prices decline by 49 cents per pound – the biggest single-month price collapse in Cheddar cash trading at CME. Funny thing: USDA’s “Cold Storage” report for October 31, 2001 showed American-style cheeses had their greatest single month’s decline in the history of that report. Hardin notes ironically the “perfect correlation” – 1:-1. So much for supply/demand.

What to Do About Cheddar Pricing Complaints (p. 19):
Pete Hardin lays out his strategy: a formal complaint to the federal Commodities Future Trading Commission regarding recent weeks’ Cheddar price collapse.

Nonfat Milk Powder Prices Low, Relative to Supply/Demand (p. 20):
We continue our “Spotlight on Nonfat Dry Milk” series with an analysis of recent year’s trends for milk powder production, inventories, and prices. No reason – from a supply-demand basis – why U.S. nonfat dry milk prices collapsed by ten cents per pound in October – when supplies in the industry were incredibly tight.

November 2012 Issue No. 400

Inside this month’s issue...

Feature Story: Nonfat Dry Milk Analysis: Output, Stocks & Shipments Declining Sharply (p. 1)
Our “Story of the Month” here.

Nov. Crop Report: Higher Corn & Soybean Yields, Lower Grain Prices (p. 2):
USDA’s Nov. 9, 2012 report on global grain stocks found slight increases in U.S. corn and soybean yields. Supplies remain tight.

Time for Hard Work on Budget, Farm Law in D.C. (p. 2):
Lawmakers return to Washington, D.C. in lame duck session to address federal budget matters and the uncompleted new farm law.

October 2012 Class III Price $21.02 – Class IV $18.54 (p. 2):
USDA’s monthly manufacturing milk class prices rose sharply in October, compared to September 2012 figures. Take a good look. Recent cheese price declines are going to pull down Class III prices at least for a couple months.

Too Much Expansion, New Construction of Dairy Plants!!! (p. 3):
Dairy processors have gone hog-wild in their expansions and new construction of dairy plants across much of the U.S. This over-building promises several years’ headaches, because the U.S. farm milk supply cannot rise to meet expanded plant capacity.

Latest LGM-Dairy Foolishness: Now You See It, Now You Don’t (p. 3):
In late October, with a couple days’ notice, USDA opened up bidding for some $14.9 million of LGM-Dairy insurance. Must have been a pre-election ploy.

608(c) 18 Progress Looks Like “The Stall” (p. 3):
If you’ve ever watched a high school basketball game, you’re familiar with “The Stall.” That’s how USDA seems to be responding for inputs from persons pushing the608(c) 18 petition process to try to raise farm milk prices during this emergency.

Chobani to Start Yogurt Production in Idaho in Coming Months (p. 4):
The vaunted Chobani yogurt firm will start production in its brand new Idaho facility in a short while. Questions arise: How much milk will Chobani need? What firm(s) will supply the milk? At what cost to Chobani? Initial impressions: DFA may be pulling an anti-competitive stunt in Idaho, just like it’s done with exclusive control of milk supplies to Chobani’s plant in New York State.

Three Wisconsin Dairy Co-ops Announce Merger Intentions (p. 4):
Come January 1, three Wisconsin dairy cooperatives intend to merge into a single co-op. They are: Family Dairies USA, Manitowoc Milk Producers and Milwaukee Milk Producers Assn.

Consumers Soaked for 1.9-Cent per Gallon “Milk Mustache Tax” (p. 5):
USDA adds a 20-cent per hundredweight fee to fluid milk processors’ raw milk costs to pay for the “Milk Mustache” program. That cost is passed along to consumers, who foot the tab for such foolishness. Meanwhile, the big dairy processors’ lobby is “milking the cow” for all it’s worth.

Tritent Targets Top-Shelf Chinese Infant Formula Market (p. 6):
Tritent International is completing one dairy plant in northeastern Iowa … and has just bought another dairy plant in Platteville, Wisconsin … to produce and market infant formula for the high-end Chinese market. Despite warnings about unauthorized circulation, this firm has posted its 53-page business plan on its Web site. Interesting reading …

NYT Article Jolts DFA Members Awake: Legal Claims Total Hundreds of Millions??? (p. 7):
A recent, long article in The New York Times about crooked dealings in he dairy industry has jolted many DFA members regarding their cooperative’s potential liabilities in the upcoming Southeast dairy antitrust trial.

Fact or Fiction: GIPSA Protects Livestock Producers???
We review the general responsibilities of USDA’s GIPSA – the Grain Inspection, Packers and Stockyards Administration. This review is important, due to a fast-growing number of incidents of fraudulent livestock transactions.

The New York Times Details Engles’ & Hanman’s Milk Moo-la Schemes (p. 8-9):
A series of sweetheart deals between the top employees of the nation’s largest fluid milk processor and the nation’s largest dairy farmers cooperative is just about to go to trial in Tennessee – one of the biggest legal dairy cases in history. On October 28, The New York Times took a long look at dairy’s dirty dealings that enriched a few insiders, while robbing money from dairy farmers in the Southeast.

Selected Excerpt from Oct. 28, 2012 New York Times Article (p. 9):
Read some of the juicy portions for yourself …

Does Drought Stress Reduce Corn Starch? (p. 10-11):
Writer Paris Reidhead discusses why drought-stressed corn can test low in starch content. He supplements his writing with test results from labs in New York State and Wisconsin.

“Irregularities” Surface at Empire Livestock, LLC (p. 11):
Writer Nate Wilson tries to track the facts behind a June 2012 “settlement” between USDA’s Packers & Stockyards Administration and Empire Livestock (in New York State). Funny thing: the folks involved don’t want to release many details.

Dean Foods’ Horizon Unit Continues Ruthless Management Practices, Sued by Former Farm Manager of Vertically-Integrated Feed Operation (p. 12):
Will Fantle of the Cornucopia Institute writes about how a former dairy farm manager for industry giant Horizon Organic has sued his former employer, alleging a lot of wrong-doing.

Drugs Found in Fonterra Dairy Powder Shipment to Algeria (p. 12):
Authorities in Algeria have found 165 kilograms of a hard drug – either heroin or cocaine – in a shipment of milk powder from New Zealand’s Fonterra.

Cheddar Prices Weaken Significantly in Early November (p. 13):
In two trading days right after the Nov. 6 elections, CME cash trading saw the all-important block Cheddar market collapse by 23 cents per pound. Industry sources tell The Milkweed that overall Cheddar demand is strong.

Emergency Hearing Proposed for California Whey Pricing (p. 14):
Terrible red ink losses by California dairy producers have sparked long looks at the state’s milk pricing system. Refusal by CDFA officials, earlier this year, to approve a whey price formula change that would have boosted producers’ incomes has become a nasty contention. Most recently, three cooperatives submitted a proposal for a new whey price hearing.

U.S. Food Policies: Disaster Ahead (p. 15):
Pete Hardin reviews this nation’s current food situation – with particular emphasis on supplies of human-quality proteins. Then, he discusses some basic elements that a rational, future federal farm/food policy ought to contain.

Dairy Data: USDA’s Valuable Contribution (p. 15):
Pete Hardin says something good about USDA – the professionals at Dairy Market News, NASS, and the federal milk order program to collect and disseminate so much helpful information. Dairy has more publicly-available, near-current information than any other industry in the country.

Strike Three! “Usual Suspect” Caught Mislabeling Cheese Again (p. 16):
Here they go again. One more time, we’ve caught those scofflaws – Weyauwega Cheese – selling adulterated and mislabeled products as Gouda (a cheese with a federal standard of identity). We’ve made another complaint to the Wisconsin Department of Agriculture, Trade and Consumer Protection. Maybe this time …

October 2012 Issue No. 399

Inside this month’s issue...
Feature Story #1: What’s Ahead? Watch Calif. Milk & NFDM Output/Inventories (p. 1):
This report is one of our “Stories of the Month.” Read it here.

Oct. 11 USDA Grain Report: Corn Supplies Down, Soybeans Up (p. 1):
USDA’s Oct. 11 agricultural supply/demand report concludes only a tiny decline in estimated corn acres per bushel (122.0 vs. 122.8), compared to the prior report in September. Meanwhile, USDA estimates that the soybean harvest will be about 8.6% greater than estimated in September. That bigger harvest estimate bumps up beginnings stocks, total supply, year-end stocks and also lowers price estimates. Hard to believe some of these conclusions.

Rabobank Projects 15% Global Food Inflation through Mid-2013 (p. 2):
The world’s largest agricultural lender projects a new dose of “ag-flation” for the world. Rabobank estimates global food costs will rise 15% for the year ending June 30, 2013. Rabobank foresees likely “food hoarding” and export embargoes by some nations.

CDI Offers Members Financial & Psychological Counseling (p. 2):
California’s largest in-state dairy cooperative–California Dairies, Inc. – is offering distressed producer-members free psychological and financial counseling services. In truth, the best “tonic” to cure what ails California dairy producers would be an honest price on nonfat dry milk. CDI is the nation’s biggest producer of nonfat dry milk.

Vilsack: Feed Costs Reasonable Element in Milk Pricing (p. 2):
At a World Dairy Expo conference on food policy, USDA Secretary stated that a milk pricing formula that factored in feed costs would be a reasonable element in farm milk pricing calculations.

September Class III Price $19.00 – Class IV $17.41 (p. 2):
For September 2012, USDA’s price benchmarks for cheese milk (Class III) and butter-powder milk (Class IV) rose $1.27 and $1.65 per hundredweight, respectively. More price increases are on the way …

2012 Seed Corn Harvest Looks Like a 50-50 Proposition: 50% More Acres Planted, 50% Loss on Hoped-For Yields (p. 3):
Once again, The Milkweed is at the cutting edge of seed corn industry analysis. For 2012, following extensive talks with persons in the field, we estimate that U.S. seed corn firms planted 50% more acreage in 2012 (vs. 2011’s disaster), but that intense heat/Drought reduced the total 2012 seed corn harvest to only half of intended yields. With ZERO carry-over of seed corn entering 2013, that means U.S. corn producers face an even tougher situation for seed corn in 2013 than they did in 2012. We estimate that domestically-produced seed corn supplies will be about 20 million acres short of U.S. 96+ million acres planted in 2012. A big push to grow more seed corn over winter in the Southern Hemisphere is ongoing.

UDIA Trolling for More Moo-la (p. 3):
The United Dairy Industry Assn. is trying to squeeze more annual dues out of state/regional dairy promotion groups. Exactly why UDIA continues to exist is a good question.

Farmers Seek $419 Mil. In Damages as DFA Loses Appeal in SE Lawsuit (p. 4):
Barring an out-of-court settlement, Southeast dairy farmer plaintiffs will go to trail against Dairy Farmers of America in mid-January 2013. This long-delayed trial seeks damages from the nation’s largest milk cooperative, alleging that DFA constricted access to regional fluid milk plants and underpaid producers.

Management Strategies in an Ever-Changing Dairy Farming World (p. 5):
Pete Hardin details a set of eight management strategies to help guide dairy farmers through these precarious times. Sample: Lock in needed grain and forage supplies now, but “ride the market” on milk prices.

Why Did DairyAmerica Import Foreign Milk Powder? (p. 5):
Ohio dairy farmer John Rahm has researched U.S. Customers Service records and finds several instances where DairyAmerica – the “cartel “ of U.S. milk powder-producing cooperatives – imported milk powder in 2008. DairyAmerica even imported milk powder after the price collapse in October 2008 – at the same time that milk powder was being sold as surplus to USDA’s Commodity Credit Corporation.

DFA Financial Situation: Bad News Travels in Threes (p. 6):
No mercy for these clowns. In recent weeks, DFA has: 1) seen Standard & Poors announce a likely downgrade of its debt ratings for DFA, 2) has pushed back payback of retirees’ equities from 10 years to 12 years, and 3) the co-op’s lawyers admitted in federal court in eastern Tennessee that when tripled, damages claims could total $1.2 BILLION dollars in the Southeast antitrust litigation. Small wonder that in September 2012, DFA restructured its finances and added more debt!

Dairy Cow Slaughter Remains Above 2011’s Data (p. 6):
For each of the past six weeks (ending 9/29/12), USDA reports more dairy cows have been slaughtered in the current year than last year. Through 2012’s first three quarters, dairy cow slaughter is running ahead of last year by 136,900 animals.

Absent Farm Law, “$38/Cwt. Milk Price” Chatter Irresponsible (p. 7):
Dairy products are being used as a political football, in scare tactics by proponents of the 2012 farm law (as passed by the U.S. Senate and the House agriculture committee). Claims that dairy product prices could double at the supermarket are being thrown around by the likes of USDA Secretary Tom Vilsack, NY Senator Charles Schumer, and greasy Jerry Kozak (CEO of National Milk Producers Federation). NO – consumers don’t face a doubling of retail dairy prices due to failed attempts to pass the federal farm bill.

NMPF’s Kozak Hoots about Helping Kill MILC Extension (p. 7):
Jerry Kozak – the NMPF CEO who keeps ten percent of the nation’s oil reserves in his hair – has recently been yukking it up about helping kill an extension of the Milk Income Loss Contract program. MILC was “sort of” a USDA milk price safety net program that had helped farmers offset low incomes (particularly relative to feed costs). Kozak’s ego is topping dairy farmers’ income needs.

Grape View Dairy (Western NY) Dairy Converts to Robotic Milking System (pages 8-9):
In western New York, dairy farmers Chad and Jill Fredd installed four Lely A4 milking robots late last January. Since then, they’re holding milk output steady, while milking 200 cows (instead of 252 head). Feed costs are down and three fewer employees are needed. Writer Nate Wilson details the transitions at Grape View Dairy.

Drought Increases Aflatoxins in Corn (p. 10):
Suddenly, dairy farmers face a critical issue: aflatoxin contamination in corn silage and feeds … plus transfer of aflatoxins to their bulk tank. Paris Reidhead digs deep into the whats, whys and wherefores of this growing headache.

Take Aflatoxin Testing in Farm Milk Very Seriously! (p. 11):
Many milk marketers are testing for aflatoxin contamination in trailer loads of farm milk. Dairy farmers can obtain reasonably-priced aflatoxin testing kits for their milk and corn.

B-I-G Deal: Dean Foods’ Morningstar Unit “For Sale”: (p. 11):
Dean Foods is offering for sale its Morningstar Foods unit. Morningstar processes UHT dairy products, aerosols, dried soup mixes, ice cream … and more. This move is designed to try to work down indebtedness. Question: once Morningstar is gone, will Dean Foods’ remaining operations – primarily fluid milk processing – be financially viable as a stand-alone business?

Aurora Organic Dairy Scandal Ends: $7.5 Mil. Settlement (p. 11):
A private class action lawsuit against Colorado-based Aurora Organic Dairy has ended with a $7.5 million settlement for plaintiffs. At issue: widespread, long-running violations of USDA’s organic dairy standards by Aurora. Aurora packages organic milk for a wide range of supermarket chains, including Wal-Mart.

True Measures of Drought-Stressed 2012 Grain: Quality & Nutritional Function (Not Bushels/Acre) (p. 12):
Reports from early harvest of corn and soybeans indicate some serious nutritional and quality problems are being found. In particular, corn is suffering both from aflatoxin contamination and low levels of starch. We’re hearing of some corn tests coming back with only about one-third of normal starch content. The 2012 Drought has a long tail … perhaps one segment of which should be to price grain purchased by livestock producers on a nutrition/quality basis, not just merely by the bushel.

Cheddar & Milk Powder Supplies Tight …and will Get Tighter (p. 13):
Pete Hardin’s dairy commodity marketing picture shows primary concern for U.S. milk powder production and inventories. Any further declines in California milk production will come out of farm milk volumes available to milk powder plants. Sources report that milk powder supplies are already hand-to-mouth in many instances.

USDA Crop Insurance – Distorted Figures Create “Drought of Doubt” (p. 14):
Writer Julie Walker has hit a grand-slam with this one. She traces what appears to be the intentional “down-sizing” of estimate annual profits enjoyed by the crop insurance industry. Some time after a 2010 report that noted a 17% annual profit margin for crop insurers (from 1991 through 2009), suddenly various official analyses down-graded the 17% figure to 14%. When one realizes the taxpayer subsidies paid to crop insurers … and the current farm law proposals to rely even more on crop insurance programs … what’s going on? Wells Fargo – the nation’s largest farm lender and the nation’s largest crop insurer – is obviously the biggest beneficiary.

Taxpayers should not bail out milk-pricing inefficiencies (p. 15):
Pete Hardin blows his top on the foolish notion of taxpayer-subsidized “dairy margin insurance” proposed in the farm bill. He argues that dairy farmers’ milk incomes are unduly low, because the nation’s gutless dairy cooperatives are giving away farm milk to big buyers without any effort to recover costs of marketing and transportation. Examples: Billionaires like James Leprino (owner of Leprino Foods, worth $2.6 BILLION) and Hamdi Ulukaya (owner of Chobani Yogurt, worth $1.1 BILLION) receive huge volumes of farm milk from cooperatives like Dairy Farmers of America and Dairy Marketing Services at prices far below actual costs of marketing and transportation. Hardin scores the idea of subsidizing dairy farmers’ milk price losses by taxpayers, when the big dairy cooperatives are incapable of extracting costs from the market place in what amount to a set of exclusive raw milk supply contracts.

John Bunting Reports to His Friends (p. 15):
Paris Reidhead recently visited John Bunting at the rehabilitation facility in Stamford, New York. Paris passes along John’s message to friends.

Feature Story #2: The U.S. Dairy Farm Crisis: October 2012 – Honest Solutions (p. 16):
This is one of the “stories of the month.” View it here.

DFA Borden “Singles” Strike Out: Contain MPC (p. 16):
Here they go again: Dairy Farmers of America is selling “Borden Singles” full of Milk Protein Concentrate. Where’s “Mr. Yuk” when you need him??

September 2012 Issue No. 398

Inside this month’s issue...

Latest Crop Estimates: USDA “Stays on Script” (p. 1):
On Sept. 12, USDA released its agricultural supply/demand estimates. The 2012 corn crop output remains the same, with a tiny reduction in yields per acre and zero reductions in acreage. We’ll see …

Dairy Prices Climbing: Tighter Supplies Ahead (p. 1):
It’s generally perceived that scarcity is setting in to the extended U.S. dairy picture. Grain, nonfat milk powder, and money are all tight.

NFDM Supplies Tight, But Key Survey Prices Moving Up Shortly (p. 2):
Despite higher output this year, supplies of U.S. nonfat dry milk are very tight. Spot prices are up to $1.90 pound., despite the fact that California and USDA weekly survey data prices are in the high “1.20s” and mid “$1.30s” per pound.

Will the 2012 Farm Bill Be Completed by Sept. 30??? (p. 2):
No.

August Class III Price $17.73 – Class IV $15.76 (p. 2):
Dairy commodity prices are rising. Butter and nonfat dry milk survey prices used for setting the August Class III/IV prices have a long way to go to catch up to current cash spot market prices.

Feature Story #1 – Milk Price Petition: 608(c) 18 Update & Strategies (p. 3):
This is one of our “stories of the month.” Summary: Pete Hardin suggests upgrading milk used to process yogurt to Class I status. Also: shift to “farm-point pricing” – a system where independent producers (and members of efficient cooperatives) do not pay hauling. The transfer of milk takes place at the bulk tank, PERIOD. Read the full story here.

NYS Governor Holds 1st “Yogurt Summit” – Where’s the “Moo-la”??? (p. 4):
NY Governor Andrew Cuomo wants to boost milk production to fill all those yogurt plants being built/expanded in his state. He had a big meeting. Little discussion focused on paying dairy farmers more money for their milk.

Southeast Dairy Antitrust Trial Postponed AGAIN (p. 4):
The tentative new trial date is January 15, 2013. This trial has been delayed just short of two years. Many documents have not been made public.

Bonus Feature Story – California’s Dairy Industry Sitting Atop Many Structural Faults (p. 5):
Pete Hardin details several critical problems facing California dairy producers – focusing on the man-made matters. Class 1 “Quota,” too-liberal make-allowances for manufacturing plants, nonfat dry milk pricing thievery, etc., etc. Read our bonus story here.

Milk Hauling: Next “Cost Squeeze” Facing Dairy Industry (p. 6):
One industry problem has to get solved, before it worsens: dairy farmers’ paying milk hauling charges off the farm. Bad as this inequity currently is, unless things change, pending War in the Middle East promises to drive diesel fuel prices far higher! If so, the “usual suspects” will ask the dairy farmer to … you guessed it … pay more hauling costs.

Bonus Feature Story – California Dairy Situation in Turmoil (p. 6):
What a mess as the Golden State dairy industry melts down. Finge-pointing ensues. State agriculture commissioner Karen Ross is appointing a committee to solve all these problems in three months!!! Read our bonus feature story here.

Cotton Market in Tatters: Risky Forward Contracting in Volatile Times (p. 7):
The ups and downs of the cotton industry in the past few years have lead to a large number of failed deliveries and broken futures contracts – by both buyers and sellers. Experiences in the cotton trade are key to lessons possibly ahead for dairy.

Domestic Food Security & the 2012 Farm Bill (p. 7):
Julie Walker keeps digging into the Risk Management system of crop insurance … and is hitting a brick wall when it comes to putting her hands on a key USDA report from 2010 that criticized crop insurers’ profit margins. Keep at ‘em, Julie!

Feature Story #2 – Double-Foraging: WI Dairyman Ensiled 3+ Tons/Acre of Green Chop Before Planting Corn in Mid-May (p. 8-9):
Read our second “Story of the Month” here.

Retired Extension Agent Conducts Alternative Crop Research (p. 10-11):
Paris Reidhead visits retired Cornell extension specialist Tom Kilcer, who’s now running a Cornell research farm at Valatie, New York (Columbia County). Kilcer details the types of research being conducted at the farm, including castor bean stands.

Castor Bean: Bio-Diesel Miracle Crop (p. 11):
Imagine … a crop that yields 200 gallons of high-quality bio-diesel per acre! Imagine … a bio-diesel oil with a gelling point of -78 degrees Fahrenheit.

SCC & Udder Health: Look at Equipment Issues (p. 12):
William Gehm writes about equipment issues (specifically, milking equipment issue) as a factor in the long-running failure to get on top of mastitis problems.

Dairy Commodity Demand Strong: More Price Increases Expected (p. 13):
Cheese sales seem stronger. Buyers can’t find enough nonfat dry milk. Dairy commodity users are stocking in extra inventories, when they can find them, in anticipation of even higher prices.

Dairy Livestock Replacement Prices (p. 14):
Flat to weak. Money is tight in dairy country. Good thing cull prices are strong.

Two Recent Shocking Dairy Statistics (p. 14):
As of July 31, 2012 USDA’s “Dairy Products” report found that manufacturers stock of nonfat dry milk had declined 32.3% from year-ago totals. What happened??? That big, 30,000 metric ton sale to Algeria in June-July 2012, which “cleared the decks” of any extra U.S. milk powder.

608(c) 18 discussion (p. 15):
Pete Hardin details what’s ahead on the 608(c) 18 petition to USDA to raise farm milk prices. About 100 such petitions have been received. USDA’s come-back will likely be to ask for general or specific suggestions. Early suggestions from Hardin include: moving milk processed into yogurt to Class I status (with compensatory payments assessed for use of Grade A nonfat dry milk); and “farm-point pricing.” (Let the buyer pay all the freight off the farm. Failure of USDA to move quickly on these proposals (and likely others) should result in: effigy of Tom Vilsack, prior to November 6 elections; and formation of a dairy producers “guild.”

Dairy Faces Uncertainty Over Soybean Supplies, Prices (p. 16):
U.S. soybeans may be in more trouble than the 2012 corn crop. This year’s soybean crop is coming in way below hopes. Soybean carry-over is limited. And export commitments are long. At least one analyst is projecting that without export controls, the U.S. will run out of soybeans some time next spring.

August 2012 Issue No. 397

Inside this month’s issue...

USDA Optimistically Drops 2012 Corn Yield to 123.4 Bu./Acre (p. 1):
On August 10, USDA revealed its latest 2012 crop supply/demand estimates. Corn yields dropped 22.6 bushels/acre from the early July forecast. The Milkweed contends vigorously that USDA’s latest estimate is way too optimistic. Corn supplies will be way down, and prices far more expensive.

Feature Story: U.S. “All Milk Price” vs. Production Costs (Losses per Cwt. Jan.-June 2012) (p. 1, p. 3):
See our “Story of the Month” here and the related Petition to USDA to Raise Milk Prices.

2012 Seed Corn Losses at Least as Bad as 2011’s; More Acres Planted (p. 2):
We project a 40-50% loss of the anticipated U.S. seed corn harvest for 2012. That loss will be somewhat tempered by increased acreage plantings. USDA maintains no data base on seed corn acreage. More next month.

Slow Food Movement: No Farm Bill, Congress Heads Home (p. 2):
Given what’s in front of them, it’s best that Congress took a summer vacation without the full House voting on the 2012 food and farm legislation. Great pressures will come forward in September to marry-up the farm bill proposals that have passed the U.S. Senate and House ag committees to Drought relief measures.

July 2012 USDA Milk Order Manufacturing Class Prices: Class III $16.88 (+$1.05) – Class IV $14.45 (+$1.21) (p. 2):
At long last, the manufacturing milk prices for USDA’s federal milk order system are moving up. We see tremendous upside for milk price in the coming months – same for grain and forage costs.

150+ House Members Ask EPA to Waive Ethanol Mandate (p. 3):
Dramatically reduced corn supplies – present and future – have inspired 156 House of Representatives members to write Environmental Protection Agency administrator Lisa Jackson to reduce or eliminate the fuel ethanol mandate while corn supplies are tight.

NMPF’s “Safety Net” Full of Holes (p. 3):
The “Margin Insurance” program for dairy – as proposed in the current legislation in Washington, D.C. – is full of holes. Example: If dairy producers’ “margins” (milk prices vs. feed costs) turn down, the “every two month” windows (Jan.-Feb., March-April, for example) would mean long delays before producers ever saw any “insurance-type” payments for their losses.

Tough Decisions Facing Many U.S. Dairy Farmers (p. 4):
Many U.S. dairy farmers face tough choices, as they’re caught in a swirl of low milk prices, high feed/forage costs, and Drought-reduced crops. What to do? In this long article, The Milkweed details how primarily emphasis should be placed upon getting the young stock through until next spring. A tremendous decline in dairy cattle numbers lies ahead. We emphasize the importance of maximizing asset value in the face of tough times and tough decisions. Come spring, the surviving diary animals will be worth a heck of a lot more than they are in late summer and fall 2012.

Swiss Valley Farms Equity Pay-Out Falls Way Short (p. 4):
Swiss Valley Farms – a dairy co-op based in Davenport, Iowa – paid out only 10% of the anticipated, decade-old equities/retained earnings. No explanation to recipients was given for the low and slow pay-backs.

DFA Members Suffering Low Milk Payments in Many Regions (p. 5):
In many parts of the country, DFA members’ milk checks are taking a terrible red ink bath. The co-op continues deducting marketing losses and stripping away premiums. “Biggest Losers?” DFA members in Utah, who were paid $3.38/cwt. BELOW the federal order Class III (cheese).

Plaintiffs’ Prove DFA’s Conduct Violated Sherman Act; Trial Set for November 6 (p. 5):
The presiding federal judge in the Southeast dairy antitrust litigation declared that plaintiffs’ attorneys had proven that DFA’s alleged violations of antitrust laws adequately enough to proceed to trial.

SMA Failed Because DFA Gutted Integrity (p. 6):
No dairy region of the U.S. has greater opportunity … nor have the producers’ milk checks in any region been more abused, than in the Southeast. In this article, The Milkweed details how the Southeast producers got into their current mess, and offers suggestions as to how to get out. In summary: the regional over-order pricing agencies have not served producers’ interests.

July’s Weekly Dairy Cow Slaughter Totals Rising (p. 6):
We’re tracking USDA’s weekly dairy cow slaughter numbers – and volume is starting to rise fast above last year’s figures. No surprise.

Drought Lesson: Diversified Needed in Farm Bill – More “Safety Net” than Crop Insurance! (p. 7):
Writer Julie Walker lays out a lot of details about the “big beneficiaries” of USDA crop insurance schemes: Wells Fargo Bank and several foreign-owned insurance firms. Lots of facts. Julie’s contention is that basing federal farm relief programs on “crop insurance”-type mandates is wrong-headed policy.

Last Dairy in Michigan’s Kalkaska County: Surviving & Thriving (p. 8-9):
Megan Filhart – a Michigan college student – graces our pages with her first contribution. The Shetler family of western Michigan operates a 40-cow dairy, and processes their milk into fluid products, smoothies and custard-style ice cream. Sons Pete and Kaleb join their parents – George and Sally – and bring a lot of enthusiasm to this family enterprise. Milk from Shetler’s Family Dairy features low-temperature pasteurization, is packaged in glass bottles, and delivered to enthusiastic customers within a 60-mile radius.

Appeals Court Reverses Farmers’ Milk Powder Misreporting Lawsuit (p. 9):
Very important! In 2009, four dairy farmer plaintiffs charged that milk powder price mis-reporting occurred in 2006-2007 by two major cooperatives – DairyAmerica and California Dairies, Inc. Those illegal actions deprived dairy farmers, whose milk is priced through USDA’s milk order system, of untold millions of dollars of income. In 2012, a lower federal court tossed that lawsuit. But on August 7, a federal appeals court in California reversed the lower court and concurred that the plaintiffs had legitimate claims to damages. (NOTE: The Milkweed broke this story in March 2007.)

Managing Drought-Stressed Corn for Dairy Cows (p. 10-11):
Paris Reidhead reviews a lot of considerations facing dairy farmers, as they seek “salvage value” for their weather-stressed corn. Chopping up stands of corn with low grain yields as silage for dairy and beef cows requires a lot of careful considerations.

Could Drought & Heat Dethrone “King Corn”? (p. 11):
Paris Reidhead visits a very important question: are weather issues threatening the reign of corn as the nation’s premiere agricultural crop? Hot weather and drought are ruining the U.S. corn harvest for the second year in a row. The future???

Attention Secretary Vilsack: Quite Praying and DO SOMETHING (P. 12):
Pete Hardin challenges USDA Secretary Tom Vilsack to get off his butt and take needed actions. Examples: invoking 608(c) 18’s emergency milk pricing powers, emergency purchases of hamburger for school meal and nutrition programs, and allow Drought-stressed farmers to go “interest only” for USDA loans and guaranteed loans.

Dean Foods to IPO 20% of WhiteWave (p. 12):
Mark Kastel of the Cornucopia Institute reviews and analyzes the curious doings at Dean Foods and its subsidiary, WhiteWave – following the firm’s recent conference call with investment analysts and recently completed second quarter finances. Dean Foods is spinning off 20% of WhiteWave investors, Gregg Engles will step down as Dean Foods’ CEO, but continue as board chairman. He’ll assume both CEO and board chair posts at WhiteWave. More next month!

Milk Powder Very Tight; Future Supply Worries Boost Cheddar Prices (p. 13):
Pete Hardin reviews domestic and global dairy supply/demand factors. Milk powder is almost to obtain on a spot basis in the U.S. right now. U.S. Drought worries are boosting global dairy commodity prices. But watch out for the immense drought that’s hitting much of India’s agricultural regions! India is the world’s largest dairy producing nation.

Short Term: Cattle Stampede Towards the Golden Arches; Medium Term: Scarcity Will Skyrocket Livestock Values (p. 14):
Short-term, a tremendous slug of dairy and beef cattle will head to slaughter, due to scarce forage and feed. Short-term, we see declined values for almost all ages of dairy livestock. This year could be the worst Drought since the 1930s – and comes at a time with little carry-over of grain or forage.

What’s ahead????? (p. 15):
Pete Hardin projects the future – taking a tough look at this nation’s arrival at resource scarcity, when it comes to food. Thought provoking …

Corn Use for Ethanol Slows In Recent Weeks, But … (p. 16):
The U.S. Energy Information & Renewable Fuels Assn. provides weekly data on corn use for ethanol production. Recent weeks’ use has dropped significantly – about one million bushels lower than year-ago levels.

July 2012 Issue No. 396

Inside this month’s issue...

July 2012: Critical Month for U.S. Food Supplies (p. 1):
July 2012 is the most critical month in many decades, in terms of our nation’s food stability. Extreme drought extends across many key food-producing regions of the country. Corn reserves are very low. Seed corn supplies are zero.

USDA & White House Face Tough Dilemma on Corn Shortfall (p. 2):
The federal government’s leaders face a tough choice: how to best cope with serious shortfall in the 2012 corn harvest. Private estimates are that the nation has already lost 20% of the corn crop (likely more). USDA’s July 10 report admits a 12% crop loss in the past month – to 148 bushels per acre. Will Washington reduce corn use in ethanol? Curtail exports? Doing nothing to curtail domestic, non-food use of scarce corn is a prescription for food security disaster.

June 2012 USDA Milk Order Manufacturing Class Prices; Class III $15.63 (+$.40) – Class IV ($13.24 (-$.31) (p. 2):
Cheese milk prices have started back up. Butter-Powder milk prices have bottomed out in June, as those commodities’ prices start moving up.

U.S. Firms Underbid EU Nations to Gain Big Algerian Milk Powder Contract (p. 3):
U.S. firms secured 100% of a 30,000 metric ton bid put out by Algeria for delivery in June-July 2012. We undercut EU firms. The sale should substantively clear out U.S. powder inventories … and prices have already started up. The global market for diary protein powders is weak, due to China’s reduced purchases.

Dairy/Ag Trade Mission to Russia Stalled (p. 3):
Nothing has happened yet regarding a trade mission to Russia to try to iron out problems that have caused Russia to ban U.S. dairy imports for almost two years.

Kraft Foods’ Cheezy Patents: Lots of MPCs & Water (p. 4):
For more than a decade, Kraft Foods has conspired to fill processed cheese products with low-quality Milk Protein Concentrates that absorb plenty of water!

DFA Lost $300 Million in Sale of NDH (p. 4):
In courtroom testimony, a plaintiffs’ lawyer detailed that Dairy Farmers of America lost $300 million in the sale of National Dairy Holdings in 2009. That’s news!

Rising Grain Prices Would Blow Taxpayer Costs Sky-High Under NMPF’s Foolish “Gross Margin Insurance” Scheme (p. 4):
Proposals for taxpayer-funded “Dairy gross margin insurance” in the current farm bill scheme would cost an arm and a leg, as weather drives up grain and forage costs. Taxpayers beware on this one!

Farm Bill Needs Recheck on Risk Management Transparency, and Money Flow (p. 5):
Writer Julie Walker hits a big one here. She analyzes a Wall Street Journal article detailing how many of the big insurance companies handling USDA’s “Crop Insurance” are foreign-owned. She puzzles: “what could the 2012 drought cost the public?”

January-March 2012 Beef Imports Rose 26.7% (p. 5):
As U.S. beef slaughter prices rose, beef processors turned to their oldest trick: imports. Canada, Australia, Mexico and little Uruguay showed significant gains in beef imports to the U.S. in 2012’s first quarter.

Southeast Class Action Trial, Postponed Again (p. 6):
Defendant Dairy Farmers of America succeeded in kicking the can down the road again – the Southeast dairy antitrust case has been rescheduled to start on November 6, 2012. DFA has used tactics to delay that trial for nearly one and a half years. What’s DFA hiding?

Survival Strategies for Dairy Farmers in These Times (p. 7):
Dairy farmers facing impaired crop situations should calculate promptly what estimated feed sources will be and how many animals they can carry over winter. We’re on the verge of serious shortages of grain and forage in the U.S.

“The Future is in Barley” (p. 7):
Pete Hardin expands upon the miracles of feeding barley sprouts to livestock and poultry – but particularly dairy livestock. Weather shortages and moisture limitations mean some dairy producers must find alternatives to traditional feeds and forages.

2012 U.S. Corn Crop Imperiled by Drought, Record Heat (p. 8-9):
See this issue’s “Story of the Month” here.

Can Organic Crops Defend Themselves Against Pests? (p. 10-11):
Paris Reidhead focuses his talents on organic crops and their natural defenses against pests … along with many other considerations in the health soils to healthy plants theme he’s been detailing.

Is 2012 the “Year of the Bugs”? (p. 10):
Paris Reidhead reviews several reasons why U.S. farmers are being plagued by insects and creepy-crawlies this year.

Armyworms Chew Through Crops in Western NY & PA (p. 11):
Nate Wilson writes about farmers’ crop devastated crops in western New York, due to an invasion of armyworms.

Organic Watergate Unfolding at USDA as Rules Bent (p. 12):
Will Fantle of the Cornucopia Institute writes about that organization’s cutting-edge efforts to shine light on widespread abuses of rules by USDA. These abuses include improper appoints to the National Organic Standards Board and that board’s approval of seemingly illegal materials for use in organic food processing. Cornucopia’s efforts were recently spotlighted in a big article in the July 8, 2012 issue of The New York Times.

Heat, Drought & Big “Powder Dump” Tighten Dairy Commodities (p. 13):
Mother Nature is hammering present and future U.S. milk production, through intense heat and drought in many key areas of the U.S. Also, U.S. milk powder co-ops cut-prices to unload 30,000 metric tons of nonfat dry milk to Algeria during June-July. That “big dump” will dramatically constrict available milk powder supplies in coming months.

Drought Forcing Exodus to Slaughter – Lowering Most Dairy Livestock Values (p. 14):
Crop conditions and milk prices started moving additional numbers of dairy cows to slaughter – lowering prices by at least ten cents per pound. That’s supply-demand at work. Exports of short-bred and open heifers to Russia are providing some price for those animals.

Saving dairy’s critical mass … (p. 15):
Pete Hardin takes a long look at multiple failures by federal regulators that all seemed to start around 2000. These failures include: antitrust, food ingredients (MPCs), dairy commodity price manipulations at the Chicago Mercantile Exchange, and federal milk order shenanigans. Systemic failure for roughly the past twelve years leaves U.S. dairy farmers ill-prepared for what’s coming.

Core Power: Dairy Beverage Links Fair Oaks Farms Brands & Coca-Cola (p. 16):
A new milkshake-type dairy beverage – aimed at persons who want restorative nutrition – has being jointly marketed by Fair Oaks Farms Brands and Coca-Cola. The immediate target: “Muscle Milk” – a degenerate product that contains virtually no dairy products. Dairy needs some innovative product development and marketing.

Exodus to Slaughter Starts: Second Quarter Dairy Cull Totals Accelerate (p. 16):
Through June 16, weekly totals of dairy cull cows going to slaughter have climbed significantly above same-week totals for 2011. We’ll track this data, since culling should further quicken, due to weather and crop realities.

June 2012 Issue No. 395

Inside this month’s issue...

2012 is a “Weather Year … Long Way to Go (p. 1):
Weather events in the next month-plus are critical for maintaining the nation’s delicate food reserves. The U.S. entered the 2012 planting/growing season with virtually zero projected carry-over of corn stocks and zero remaining seed corn. July Corn Belt temperatures (at pollination time) are particularly critical.

NZ MPC Imports Torpedoed U.S. Milk Prices (p. 1):
We follow up last month’s findings of big Jan.-Feb. MPC imports every three years – that coincide with low milk price years for U.S. dairy farmers. Guess what? New Zealand is the source of virtually all those imports. And every third year, New Zealand dumps a load on us. We demonstrate how Kraft Foods’ research patents developed MPC-laden products and processes in the late 1990s and early 2000s. Heavy use of imported MPCs has held down farm milk prices.

Research: Calcium Supplements Dramatically Boost Heart Attacks (p. 2):
Skip the Tums. Research reported recently in the British Medical Journal suggests that calcium supplements are responsible for distinctly higher levels of heart attacks among persons taking them. Sounds like dairy calcium is best!

May 2012 USDA Milk Order Manufacturing Milk Classes: Class III ($15.23 (-$.49) – Class IV Price $13.55 (-$1.25): (p. 2):
The numbers tell the whole story. Declining dairy commodity prices in recent weeks continue to pull down farm milk prices. However, we may have hit bottom and are bouncing back.

Update on John Bunting’s Health; Contributions to his Family Welcome (p. 3):
John has been moved to a rehab facility near Kingston, New York. His speech and movement are somewhat impaired. Persons wishing to send a get well card and/or a check to help out should write to John’s daughter: Abby Bunting Walley, 4000 East Brook Rd., Walton, NY 13856.

Class Action Complaints Filed vs. General Mills & Safeway Re: Use of Milk Protein Concentrate in Greek-Style Yogurt (p. 3):
Finally … Class action lawsuits have been filed against General Mills (Yoplait) and Safeway (Lucerne brand) for illegal use of ingredients in yogurt. Much more to come on this issue, we predict.

U.S. Senators Question FDA Re: Unapproved Ingredients in Yogurt (P. 3):
In 2012, four U.S. Senators have written the head of the Food and Drug Administration, demanding answers as to why that agency continues to fail to prosecute use of illegal ingredients in yogurt products. Most recently, Senators Gillibrand (NY), Lugar (IN) and Coates (IN) have all written FDA. In late January, Vermont Senator Bernie Sanders write a letter asking similar questions. Four-plus months later, Sanders has yet to suffer the grace of a reply.

OIG Report Faults USDA’s Meat Plant Inspections (p. 3):
Federal meat plant inspectors are failing their jobs. A recent study by USDA’s Inspector General finds many inspectors – for many reasons – fail to inspect meat slaughter and processing plants on a daily basis, as mandated by law.

DFA’s 2011 Financial Audit Defies Accepted U.S. Accounting Principles (p. 4):
Contriving to claim a profit for 2011 – when in fact DFA netted a $40 million LOSS – has the nation’s largest dairy cooperative side ways with its accounting firm. The Milkweed analyzes DFA’s 2011 financial statement and concludes that are pretty ugly at this point.

DFA CEO “Tricky Rick” Smith’s Long History of Audit Prevarications (p. 5):
DFA CEO/President Rick Smith has a problem: leveling “bad news” in the audit of the cooperative he’s heading. We discuss Smith’s long history of this problem, dating back to is days with Dairylea Co-op.

Dairy Farmers’ Comments at Southeast Milk Litigation Hearing (p. 5):
Julie Walker reports on the May 15, 2012 hearing in the Southeast dairy antitrust litigation. That day, plaintiffs had their chance to tell their stories to the federal judge presiding over this trial.

Some Recent Months’ Cheese Contains Serious Quality Defects (p. 6):
Too much long-distance, distress milk … too many “hot” starters used means quality problems for some cheeses in the U.S. in recent months. The U.S. is sitting on record quantities of sub-quality cheese.

USDA Rules Seem to Disallow Legal “Pink Slime” Use In “Chopped Beef,” Ground Beef” and “Hamburger” (p. 7):
Oops. It’s the law. It’s illegal to sell ground beef or hamburger containing “Pink Slime” in the U.S., according to USDA definitions of chopped beef, ground beef and hamburger. Clearly, ground meat products that have contained imported beef were improperly sold to consumers.

Iowa State Study: LFTB (“Pink Slime”) = Low Quality Protein (p. 7):
Research conducted at Iowa State University reported that “Pink Slime” contains a bit more than 10% quality proteins, compared to beef chuck. LFTB also contains more blood proteins and connective tissue than ground beef chuck.

Feature Story: Lean Beef Trim Imports (Used for “Pink Slime”) = 40%-50% of All U.S. Dairy Cull Cow Meat in 2011 (p. 8-9):
Read here how cheap beef imports from inadequately inspected foreign meatpacking plants are putting a lid on dairy cull cow prices in the U.S.

Biotechnology Causes “Devil’s Domino Effect” In Food Chain (p. 10-11):
Well, writer Paris Reidhead really did it this time! He has composed an encyclopedia tracking unhealthy soils (due to chemicals) all the way through to unhealthy humans. This article represents a “life statement” by this great writer.

DMI Budgets Paltry $2.1 Mil. for 2012 Dairy Import Promotion Fee (p. 12):
When the U.S. dairy promotion fee was expanded to cover imports, NMPF CEO Jerry Kozak claimed import promotion fees would bring in $6-$7 million annually. For that deal, Kozak got Congress to change U.S. laws, disallowing use of U.S. dairy farmers’ promotion dollars to promote U.S.-produced dairy products. Now, it looks like import fee revenue will only generate $2.1 million – only a few hundred thousand dollars more than Jerry Kozak’s salary.

“Winter/Spring Flush” Ends; Milk Tighter, Blocks & Butter Prices Rise (p. 13):
Pete Hardin takes a look at the current dairy marketing and supply/demand picture, determining that the worst is over. Some dairy commodity prices are starting back up, after a late winter and spring that strained many sectors of the dairy industry.

Dairy beef: problem & opportunity (p. 15):
After detailing the negative impact on Lean Beef Trim imports (used in “Pink Slime”), Pete Hardin details strategies for dairy farmers – individually and in groups – to gain more value from direct sales of live cattle and frozen processed meat.

Cheap Proteins, Junk Food, Health & “Free Markets” (p. 15):
Pete Hardin details how government agencies’ failed oversight of food safety Issues and nutrition leads to health problems. In the current atmosphere of “less government,” failure to assure food safety and integrity leads directly to U.S. human health and medical issues.

In “Bad Years,” NZ Jan.-Feb. MPC Imports Jumped 107.2% (p. 16):
We demonstrate, using a multi-colored graph, how New Zealand MPC imports – every three years – skyrocket in January-February. Those years are “bad milk price years” for U.S. dairy farmers.

May 2012 Issue No. 394

Inside this month’s issue...
MPC/Casein Imports Peak Early in Low Milk-Price Years (p. 1):
Read the first of our two “Stories of the Month” here.

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!

April 2012 Issue No. 393

Inside this month’s issue...

Supply/Demand Stressing Plant Capacities, Marketers & Prices (p. 1):
In several regions of the country, farm milk is close to overwhelming manufacturing plant capacity. Milk output is rising. Retail demand for milk and cheese is down – same for global demand. What’s ahead? Keep your eye on the weather.

Lower Corn Inventories, More Acreage Planted (p. 1):
We summarize recent USDA reports that show less carry-over corn inventory, more acreage to be planted, and reduced yields per acre. Corn seed inventories are down to zero, at best.

February 2012 MILC Payout: $.39/Cwt. (p. 2):
USDA’s FSA will pay out $.38 per hundredweight to dairy producers contracted in the Milk Income Loss Contract program for February 2012.

2011: DFA Lost $36.7 Mil. (p. 1):
The headline says it all. No DFA audit here yet.

March Class III Price $15.72 – Class IV $15.35 (p. 2):
The manufacturing class prices for USDA’s federal milk order system continued to decline in March – pulled down by lower commodity prices.

DMI Dumps REAL Seal® into NMPF’s Grubby Mitts (p. 3):
The organization that controls dairy farmers’ milk promotion dollars has turned over management of the REAL Seal® to National Milk Producers Federation. This move is a sham – NMPF changed rules in the 2002 federal Farm Law to disallow use of dairy promotion dollars to promote U.S.-sourced milk and milk products.

Rumor: Nestle Studying Buying Dean Foods Purchase (p. 3):
Global food giant Nestle is looking at purchasing Dean Foods – this nation’s largest fluid milk processor. Meijer’s Chain Buys Bareman’s Plant (Holland, MI) (p. 3): Meijer’s – the Grand Rapids-based retail super power – now has an in-house dairy plant for fluid milk and ice cream. Meijer’s bought the Holland, MI dairy plant of Bareman’s Dairy. Prairie Farms acquired Bareman’s trademarks and routes. This move hurts Dean Foods, which has been Meijer’s exclusive fluid milk supplier.

WI Governor Targets 30 Billion Lbs. of Milk as 2020 Goal (p. 4):
Wisconsin governor Scott Walker announced a new set of grants to help state dairies grow milk production to 30 billion pounds in 2020. Problem is: current trend lines point to that goal in 2020, prior to any extra help.

Are Dairy Processors Overbuilding, Relative to Milk Supplies & Demand?? (p. 4):
A survey of major dairy processing plant expansions and new constructs raises very serious questions: 1) Where will the farm milk come from to fill these plants?, and 2) Will adequate consumer demand exist to handle the additional processing? This situation is serious.

The Cheese Plant that Feta is Expanding … (p. 5):
The third and fourth generations of the hard-working, inventive Buholzer family operate Klondike Cheese (Monroe, WI). They’ve recently expanded their plant to accommodate fast-growing sales of Feta cheese. It takes a tough Schweitzer to make Greek cheese.

NZ’s Fonterra Picks U.S. Dairy Pockets as Big Co-ops Slumber (p. 6):
We take a good, running kick in the --- at the many antics of Fonterra – New Zealand’s dairy export behemoth. Fonterra takes advantage of the U.S. dairy industry, coming and going.

Public Disgusted by USDA Allowing “Pink Slime” in Hamburgers (p. 7):
A big food fight blew sky-high in March, when a Texas mother filed an electronic petition to USDA Secretary Tom Vilsack, seeking to stop putting 15% “lean finely textured beef” in School Lunch ground beef. After the initial public and media uproar, the “cowboys” of the beef industry went on the counter-attack, pulling in many allied politicians and university experts.

April 30 Deadline for SE Producers’ Antitrust Claims (p. 7):
Dairy farmers in the Southeast – anyone making milk from 2001 to 2010 in federal milk orders #5 and #7 – must register by April 30 with the appropriate firm in order to qualify for settlement payments from Dean Foods. Videos Detail Southeast Dairy Antitrust Case Allegations (p. 8-9): Our story of the month.

Feature Story – Videos Detail Southeast Dairy Antitrust Case Allegations (pp. 8-9):
This month we feature transcripted highlights of videotaped depositions presented January 20, 2011 at the Southeast dairy antitrust litigation cases in U.S. District Court for the Eastern District of Tennessee (Greeneville Division). Read all about it here.

High Sulfur Content in Corn Distillery By-Products Harming Cows’ Health (p. 10-11):
Writer Paris Reidhead digs deep into how use of sulphuric acid in corn for ethanol processing has created higher levels of toxic sulfur in corn ethanol by-products fed to dairy cows. This story is one of Paris’ finest research efforts ….

IDFA 2010 Execs’ Salary Data: Connie Tipton Grossed $1.336 Million (p. 11):
Data gleaned from the 2010 IRS Form 990 shows International Dairy Foods Assn.’s top executive – Connie Tipton – grossed $1.336 million in total compensation in 2010. A whopping $758,000 of that amount was for “retirement and other deferred compensation.”

NY Myth: Increased Yogurt Plants Boost Producers’ Net Income (p. 12):
Writer John Bunting takes a deep look at federal milk order data to s how big increases in farm milk processed into yogurt in the Northeast have not boosted dairy farmers’ net share of milk revenues. Hauling costs for milk sent to yogurt plants are eating up any income gains.

Gavilon’s Milk Powder Strategies Confusing (p. 12):
Gavilon – a major commodities trader – is confounding dairy commodity players with big purchases of nonfat dry milk, while selling at prices seemingly lower than what the firm is paying for products. Gavilon is owned by investors including zillionaire George Soros.

Dairy Livestock Price Summary (p. 13):
Dairy livestock prices are steady, at best. Big decline in springer prices in some western markets. Cull cow prices continue to strengthen.

Aquentium’s Ozone Technology Enhances Results for Fodder Food Growers (p. 13):
Aquentium is shifting its patented ozone-based sanitation systems to applications that include forage fodder production. Interesting.

Farm Milk Supply Overwhelming Plants, Dropping Cash Markets (p. 14):
Pete Hardin’s dairy commodity review this month finds little good news, except that American cheese inventories were lower in February 2012 than in January 2012. Milk supplies are pushing manufacturing plants’ daily capacities to the max in several regions of the country. Milk powder supplies are burdensome.

DFA’s press release on 2011: profit or loss? (p. 15):
A first read of DFA’s March 21 press release announcing the co-op’s 2011 financial results includes the phrase, “ … net income of $40.2 million for 2011 …” If one reads on, nebulous words talk say, “adjusted to include a “76.9 million non-cash loss …” First impression is that DFA made $40.2 million last year. In fact, DFA lost $36.9 million. Why is CEO/President “Tricky Rick” Smith up to his prevaricating ways? Is DFA in financial trouble – particularly as massive potential lawsuit liabilities loom?

Ground beef furor needs more facts (p. 15):
Pete Hardin lists details that are needed before a reasoned opinion may be reached regarding the “pink slime” furor that’s infected the ground beef sector.

March 2012 Issue No. 392

Inside this month’s issue...
Easy Winter (More Milk) + Reduced Sales = Lower Milk Prices (p. 1):
Early in 2012, both supply and demand are going in the wrong directions. An easy winter means more milk per cow. And Pete Hardin reviews several measures of fluid milk sales data to conclude that those numbers are troublingly down.

Interpreting New 400,000 SCC Rule: LOWEST Monthly Test Will Be OK (p. 2):
The way the rules are being interpreted, USDA’s new dictates about maximum monthly 400,000 SCC counts may be just a bunch of hokum. Raw milk buyers may take repeated samples and choose the lowest sample as the official test.

Whey Prices Shaky: Chinese Purchases Declining? (p. 2):
More milk processed into cheese … and slowing global demand … mean the whey complex price structure is shaky.

February Class III Price $16.06 – Class IV $15.92 (p. 2):
Lower dairy commodity prices mean reduced values for farm milk processed into cheese and butter-powder.

Dairy Producers: Gear Up for MILC Payments Soon (p. 3):
USDA’s “safety-net” payments to contracting dairy farmers for the Milk Income Loss Contract (MILC) program will probably start in March or April. Producers need to be sure that they are signed up and that all information is current as their local FSA office.

CDC Report Grossly Distorts Raw Milk Health Issues (p. 3):
The federa1 Centers for Disease Control (CDC) recently issued an incredibly biased analysis of raw milk-caused human diseases. Among other errors, CDC blamed raw milk cheese health problem on raw milk. And CDC even counted disease outbreaks in foreign countries!

Casein Imports Rose 30% in 2011 (p. 3):
Casein – a dairy protein import – climbed 30% in 2011. Casein binds up a lot of water for food processors.

Continued, Blatant, Illegal Cheese Labeling by JS Brands (p. 4):
Despite another complaint by The Milkweed … and another warning letter from Wisconsin’s agriculture department, JS Brands of Wisconsin and Weyauwega Stary Dairy continue to put illegally-labeled cheese products on supermarket shelves in Wisconsin.

Kraft Foods Cheese Div. Profits Up in 2011’s 4th Quarter (p. 4):
Despite the fact that frm saw a nice boost in profits in 2011’s fourth quarter, Kraft Foods’ management continues to complain about ingredient costs in dairy.

DFA Buys Guida’s – Connecticut Fluid Milk Processor (p. 5):
Dairy Farmers of America (DFA) has purchased Guida’s Milk and Ice Cream Company – based in Connecticut.

What Does DFA’s Guida’s Purchase Mean to Relationship with HP Hood? (p. 5):
DFA is HP Hood’s raw milk supplier. DFA now owns a competing fluid milk processor – Guida’s. What does that mean?

NJ Italian Cheese Firm Squeezes NY “Plain Faith” Producers (p. 6):
Retired dairyman Nate Wilson has aggressively researched events surrounding non-payment for 96 days’ worth of milk in mid-2011 by a New Jersey-based Italian cheese company to dozens of “Plain Faith” dairy farmers in western New York.

2008-2010: Top 7 DMI Execs’ Total Compensation Rose About $278,000 Each (page 7):
Our “Story of the Month” here.

Old-Fashioned Dairy Goodness in a Glass Bottle (pp. 8-9):
We visit the Schrock family near Russellville, Kentucky. Willis and Edna Schrock (and their kids) operate JD Country Milk – processing “old-fashioned” milk in glass bottles. Demand for their milk and drinkable yogurt products is skyrocketing!

Consumer Price Index: Shoppers Pay More and More (p. 9):
Writer John Bunting shows the historic and recent relationships among dairy farmers’, processors’ and retailers’ fluid milk returns. Guess who’s making out like a bandit.

Seed Corn Shortage: Mother Nature Not Entirely to Blame (pp. 10-11):
Writer Paris Reidhead has done a lot of digging on U.S. seed corn issues, concluding in part that bigger seed corn companies are more at risk to Mother Nature’s vagaries than are small, locally-focused firms.

2012-Raised Corn Seed from Southern Hemisphere (p. 11):
Pete Hardin details the logistical and natural problems associated with bringing seed corn raised in the Southern Hemisphere during the 2011-12 growing season for planting in the U.S. this spring. Headaches: USDA delays testing seed corn for mold and weed seeds; and poor germination from recently-harvested seeds.

Not Enough Seed Corn? Don’t Replant GM Corn Stocks. Monsanto Uses Spy Satellites to ID Illegal Plantings (p. 11):
Farmers facing shortages of seed corn should NOT replant carry-over Genetically-Modified, patented seeds they harvested last fall. Monsanto altered the appearance of GM plants (when they are photographed from spy satellites). That’s how Monsanto catches “cheaters.”

Southeast Milk Litigation Nears Resolution with Dean Foods and SMA (p. 12):
Julie Walker updates fast-moving events in the Southeast dairy antitrust case. Producers must file their claims for payments from the $145 settlement involving Dean Foods, Southern Marketing Agency and James Baird by May 1. ALSO … the New York Times has won legal access to video clips playing in a court hearing back on January 20, 2011. These clips were from depositions of defendants. ALSO … The Milkweed warns Southeast dairy producers to watch out for “Carpet-Bagging Manure Spreader Chasers” trying to sign up dairy producers for a big percentage of their antitrust pay-out.

Brave New World Challenging Conventional Wisdom: Alltech’s Global 500 (p. 13):
Julie Walker reports from the December 2011 Alltech symposium in Lexington, KY. Interesting!

Commodity Prices Flat: Lots of Milk, Slower Domestic & Export Sales (p. 14):
Pete Hardin takes a tough look at the U.S. dairy commodity marketing scene. An easy winter and declining fluid milk sales put stress on manufactured dairy product commodity prices.

The “Common Sense” Federal Dairy Plan (p. 15):
Pete Hardin lays out his vision for appropriate future federal dairy policy – starting with encouraging as much milk production as feasible in regions where the population is located and where the water comes down free. Other proposals include: lumping fluid milk, cheese and yogurt milk into Class I in the federal milk orders; vigorous enforcement of federal food standards; committing USDA to a base level of purchases of dairy products and hamburger for hunger/nutrition programs; a producer/milk hauler security program (a 1% loan in the event of a handler default); and allowing dairy farmers to democratically vote whether they want to continue the national dairy promotion check-off.

Pay Close Attention to California’s Water Reserves (p. 16):
We reprint to very recent maps detailing California’s reservoir levels (vs. normal) and the moisture content of the snow mass (vs. normal). Keep an eye on these items.

Jerry Kozak’s 2010 Salary/Compensation: $1,132 Million – Up $410,000 (p. 16):
“His Arrogance” garnered total compensation from National Milk Producers Federation of $1.132 million for 2010 – an increase of over $400,000. We list the whole array of NMPF’s senior staffers’ compensation for 2010.

NMPF & USDEC Flip-Flop on “Free Trade” with NZ (p. 16):
After many years, two of dairy’s most systemic organizations are finally making noises about the dangers of New Zealand’s Fonterra global dairy trading giant. For years, those two groups have snuggled up to Fonterra. Better late than never … maybe.

February 2012 Issue No. 391

Inside this month’s issue...

Dairy Commodity Price Drops Mean Tough Months Ahead (p. 1):
All three major dairy commodities (Cheddar, butter, and nonfat dry milk) have gone below $1.50 per pound. And whey prices are softening. These lower commodity prices translate into several dollars’ decline in farm milk prices, within a month or two. A major problem: expanding milk supplies and shrinking fluid milk demand. Those factors – in tandem – are helping drive down cheese prices.

Too Much Milk? NW Dairy Assn. Creates April-Sept. Bases & Over-Base Penalties (p. 1):
The predominant farm milk buyer in the Pacific Northwest -- Northwest Dairy Assn. – has announced establishment of April-September production bases for members. Worries are that farm milk will overwhelm dairy processing plants’ capacities, if the co-op doesn’t put a cap on member output. Two levels of penalties will hit “over-base” milk.

No Profits. No Loans. Bankruptcy Reorganization Won’t Work (p. 2):
Writer John Bunting details the brutal situation facing many California dairy producers right now, as milk prices tumble and expenses stay strong. Attempting a bankruptcy filing is not an option, experts tell Bunting, because no honest plan can be devised that projects favorable returns from estimated milk prices and grain/forage costs.

2012 Farm Bill: “All About Insurance.” (p. 2):
With the American Farm Bureau Federation now supporting a “risk management” insurance-based federal farm policies for the 2012 farm bill, concerns are that the interests of insurance companies (like AFBF) will drive federal agriculture policies.

December Class III Price $17.05 – Class IV $16.56 (p. 2):
The headline says it all. Manufacturing class prices in federal milk orders are headed down.

Southwest Super Pool (GSA) Collapsed on January 1, 2012 (p. 3):
Lone Star Milk Producers quit membership in the Southwest co-op super pool on January 1, 2012. This article cites five reasons Lone Star detailed for this move in a recent letter to members.

Something Bigger Brewing? Southwest Super Pool Chaos May Hit Southeast (p. 4):
This long article explains how the January collapse of the co-op super pool (over-order pricing agency) in the Southwest could spread to hit the Southeast. Many of the players are the same in both regions. The Milkweed’s analysis: a net set of dairy marketing relationships is being born, with the long-term bully (DFA) pretty much sitting on the sidelines.

400,00 SCC Limit Details Look Stranger & Stranger (p. 5):
In January, new rules kicked in stipulating that dairy producers whose milk ends up in products shipped to the European Union must meet three-month, rolling average Somatic Cell Counts under 400,000 parts per milliliter. USDA has set up a series of “indulgences” (actually $136/hour x 2 hours) payments to USDA if a farmer goes over the SCC limit but is trying hard to do better.

Schools’ Ban on Flavored Milk Products Hammers Class I Use in California (p. 5):
Starting last fall, several school districts in California (including Los Angeles) banned sales of flavored milk beverages – due to concerns about childhood obesity. We analyze October 2011 sales trends for flavored milks in California – finding a significant decline that accounted, in net, for two-thirds of all fluid milk declines in California that month.

Early DOJ Agriculture Antitrust Rhetoric Stalls (p. 5):
Despite some strong language early on in the Obama administration … and a few successes … the Antitrust Division of U.S. Department of Justice is pretty much on low cruise control regarding agricultural antitrust issues right now.

Losses Force $158/cwt. DFA December “Reblend” in Mountain Area (p. 6):
Without clarification, DFA members in Utah, Idaho and Colorado opened their final payments for December 2011 milk – only to find deductions totaling $1.58/cwt. (excluding normal DFA deducts of up to 36 cents per cwt. DFA has deducting tremendous amounts of marketing losses since Leprino Foods opened its new cheese plant at Fort Morgan in late October.

Whey 101: From Hog Slop to a Gold Mine (p. 7):
Here’s a general evolution of whey pricing/marketing events … dating back to the early 1980s and FDA’s approval of use of whey products in human foods.

Declining Whey Prices Mean Lower FMMO Milk Prices (p. 7):
After building strength for more than two years, whey prices are softening. Declining whey values mean lower Class III (cheese) and perhaps lower Class I (fluid) milk prices in the federal milk order system.

Feature # 1: Repeated Illegal Marketing of Imports as “Wisconsin Cheese” (p. 8):
One of our “articles of the month” here.

Northeast Yogurt Plant Expansions are Mind-Boggling (p. 9):
Writer John Bunting traces the growth of Greek-style yogurt and the impact that production of that specialty yogurt has driving the Northeast yogurt industry.

Tordon: Toxic Vietnam-era Herbicide Still Sold to U.S. Farmers (p. 10):
Writer Paris Reidhead has meticulously researched the history of “Agent White” –a powerful Vietnam era herbicide that was widely used in Southeast Asia. Tordon is still sold to U.S. farmers

Feature #2: Comparison of Selected 2011 Milk Prices in Upper Midwest For 15 Farm Milk Buyers – Base and Mailbox Prices.
See our second “Story of the Month” here.

Organic Dairy Producers in Price Squeeze (p. 12):
Mark Kastell of the Cornucopia writes about tough cash-flow conditions facing organic dairy producers. Recently, two major buyers raised organic milk prices by about $2.00 per cwt.

Dairy Cattle Replacements (p. 13):
In some markets, prices for springers and heifer calves are up.

Dairy Commodity Values Decline Across the Board (p. 14):
Editor Pete Hardin takes a look at the “not so pretty” dairy commodity price structure. Lots more farm milk + reduced Class I demand have translated into a lot more cheese. All major commodity prices are below $1.50 per pound.

“Straight Talk” (p. 15):
Pete Hardin’s “opinion page” summarizes the following: “Dairy pricing/marketing system is broken,” “War drums beating …and “Concerns about “Insurance-based U.S. farm policies.”

October 2011: California’s Organic Fluid Milk Sales Climbed 15.4% (p. 16):
Now there’s some good news! Organic demand is strong, and marketers are having tough times finding increased, needed supplies.

“Jay Robb Whey Protein” Retails for $36.56 Per Pound! (p. 16)
A fancy-pants whey protein powder (approx. 83% whey protein) sells for $2.49 for 30 gram packages. Valuable stuff.

January 2012 Issue No. 390

Inside this month’s issue...

The Really Big Issues Facing Dairy in 2012 (p. 1):
Pete Hardin lists his perceived eleven biggest issues facing dairy in 2012. #1? What else … the weather.

Lactose Emerges as Important Residual Value in Milk (p. 2):
John Bunting details how lactose – milk sugar – has gained value and export use in recent years. Interesting …

Global Dairy Trade Auctions: Up and Down (p. 2):
Several dairy commodities’ prices were up in recent Fonterra-sponsored electronic auctions – buttermilk powder, Cheddar, and milk protein concentrate. Meanwhile, Skim Milk Powder prices declined.

December Class III Price $18.77 – Class IV $16.87 (p. 2):
Declines in dairy commodity prices in recent months are pulling down manufacturing class milk prices in USDA’s federal milk order system.

DFA’s 11 Dairy Import Licenses Revealed (p. 3):
Who else, but our friends at Dairy Farmers of America? The nation’s biggest dairy farmers’ cooperative holds 11 dairy import licenses … despite receiving subsidies to export U.S. dairy products.

1/6/12 Wall Street Journal Finally Reports Seed Corn Shortage (!) (p. 3):
At long last, four months after The Milkweed first reported the story in depth, the Wall Street Journal finally smelled the coffee and reported the U.S. 2011 seed corn crop failure – estimating a 25-50% loss.

Farm Bill in 2012? AFBF Wants Insurance-Based Programs (p. 3):
The American Farm Bureau Federation – an insurance consortium disguised as a farmers’ organization – announced it is now looking hard at a “risk-management insurance” package of programs to undergird farm programs in the upcoming farm legislation debate. What would one expect an insurance company to do???

Feature Story: “Stuff” (Sometimes Illegal) In Cheese Boosts Volume by About 30% (P. 4):
This month’s feature story looks at how U.S. cheese yields in recent years appear about 30% greater than one would expect from the volume of farm milk dedicated to cheese vats. Read the full story here.

Fraudulent: Electronic Deed Registry Threatens U.S. Housing Market (p. 5):
In one sentence: The Mortgage Electronic Registration Systems (MERS–a firm created to “bundle” packages of residential mortgages for resale and holding more than 50% of all residential mortgages in the United States – has failed for many years to properly register and pay fees to counties for title registration changes.

USDA’s Final Report on 2011 Crop Production: Corn/Soy/Wheat/Hay/Cotton Harvests All Down (p. 5):
USDA’s final report for 2011 crops found declines in virtually every major and minor crop in this nation.

Raw Milk: A Surprisingly Potent and Cheap Fertilizer (p. 6):
Paris Reidhead writes about experiments by farmers in Missouri and Nebraska that have demonstrated raw milk’s value as a fertilizer. Only three to five gallons of milk per acre are needed. When combined with fish emulsion, the impact on soil fertility is amazing.

Federal Judge Refuses to Certify Class in Northeast Antitrust Case (p. 7):
Ouch. Federal Judge Christina Reiss declined to certify the class sought by plaintiffs in the Northeast antitrust trial that’s based in Burlington, Vermont. Reiss seemed to leave the door open for plaintiff’s attorneys to try again.

Foul-Up in Antitrust Payouts to Northeast Producers (p. 7):
The firm in charge of mailing out payments to Northeast dairy farmers who qualified for compensation under the $30 million settlement from Dean Foods has goofed. Some checks sent out near Christmas were too high, others were too low. A second round of checks will be issued, pending the court’s approval.

Thirsting for Justice in America’s Dairyland (p. 8-12):
In a blockbuster story, organic farmer Tony Ends writes about the battle by a local township to try to enforce water quality monitoring for a big dairy that’s a proven stream water polluter. This case is now awaiting a decision from the Wisconsin Supreme Court. Read the entire story here.

Organic Milk Shortages Reflect Producer Pricing Inequities, Opportunities (p. 12):
Particularly in the Northeast, organic dairy producers are bleeding red ink, due to high grain costs. This article lays out the players, the inequities and the opportunities.

Organic Grain Guru: Milk Producers Need $5 More (p. 12):
Mary-Howell Martens, who co-owns Lakeview Organic Grain (Penn Yan, New York), expresses her insight that organic dairy producers in the Northeast need another $5 per cwt. in milk payments, to cover their feed costs.

Dairy Commodity Scene Ugly: No Place to go but Up? (p. 14):
Pete Hardin covers the dairy commodity price and marketing scene. Prices are down, seriously down.

Let me share a few serious thoughts … (p. 15):
Editor Pete Hardin professes why he’s lost his patience with dairy’s fools, incompetents, and grand larcenists. The lack of integrity of certain ingredients in products such as cheese and yogurt leave little tolerance for claims that “surplus” cheese is causing low farm milk prices.

Winter Brewing Global Corn Supply Worries for 2012 & Beyond (p. 16):
Unduly hot, dry weather in corn-growing regions of South America is causing additional nervousness about global grain stocks.

Federal Ethanol Subsidy Mercifully Kaput (p. 16):
On December 31, 2011, the 45-cent per gallon federal ethanol blending subsidy died. That event will safe U.S. taxpayers about $5-$6 billion dollars annually.

December 2011 Issue No. 389

Inside this month’s issue...

Maelstrom of Current Events Creates Tremendous Uncertainty (p. 1):
A huge number of critical global and national events have created tremendous uncertainty in the financial and food worlds. No conclusions.

35-Year History of Dynamic Dairy Consumption Trends (p. 1):
The Order 32 federal milk order’s staff published, in October, a wide range of charts depicting trends in per capita dairy product consumption, from 1975 to 2010. We reproduce those charts and analyze the spectacular dairy consumption changes in that 35-year period, from the demise of fluid milk sales to skyrocketing demand for cheese and yogurt.

FMD in China, East Asia: Big Threat to U.S. Livestock Producers (p. 2):
Major outbreaks of dreaded Foot and Mouth Disease are being reported in several Asian nations. Yet the U.S. government incautiously is pushing for more “Free Trade” deals with that region. FMD has been labeled this nation’s biggest bioterrorism threat.

Federal Budget “Supercommittee” Fails Task; Secretive Farm Package Derailed (p. 2):
The committee of six Republican and six Democratic elected officials – charged with cutting federal deficits – failed to come to any agreement by the November 23 deadline. Good news: the secretive federal farm policy package fast-fried for approval by that committee has died.

November Class III Price $19.07 – Class IV $17.87 (p. 2):
Take a good luck, these prices will decline next month.

Incredible Market Instability for U.S. Food Producers (p. 3):
Bundle the European debt woes and instability of the EU’s big banks, along with the failure of MF Global (an investment and brokerage firm) … and you’ve got a mess that has destabilized financial and commodity markets world-wide.

IDFA’s Rep. Submits Bill to Kill Federal Milk Orders (p. 3):
Illinois Congressman Joe Walsh – a family-values Republican who owes his ex-wife over $100,000 in unpaid child support payments – has submitted H.R. 3372 into the House legislative hopper. This bill would kill off federal milk orders. He also wants to get rid of the U.S Postal System – a move that would harm his rural constituency.

Milk Processed into Products Headed to Europe Can’t Exceed 400,000 SCC by Early 2012 (p. 4):
USDA’s Agricultural Marketing Service has dictated to the dairy industry that, effective in early 2012, dairy farms’ milk processed into products sold to the European Union nations, must meet strict EU somatic cell count (SCC) rules. That means a rolling average of less than 400,000 SCC. This mandate is the third time that the government has tried to force this change. Only good news: the EU milk quality rules will not apply to all dairy producers – only those whose milk ends up in products headed to EU.

Computerized SCC Testing Far from Perfect (p. 4):
Computer milk quality testing equipment has a 10% margin of error for somatic cell count. That’s a wide margin of error, when dairy farmers’ ability to ship milk is calculated atop new rules from USDA.

Natural Gas Fracking “Wealth” – At a Terrible Cost? (p. 5):
Environmental, health and legal problems are festering in areas of New York, Pennsylvania, and Ohio where deep-well drilling for natural gas – using an array of secret chemicals – is taking place.

Prairie Farms Anticipates Lower Earnings, Split Pay-Out of 2004 Patronage Dividends (p. 5):
Prairie Farms’ management estimates earnings for its recently concluded fiscal year would be about 85 cents per hundredweight on members’ milk. Prairie Farms will pay out its 2004 revolved earnings in two installments – citing tighter current earnings.

Hilmar Cheese Refusing to Provide Price Data to CDFA (p. 5):
The cheese firm producing 70% of California’s Cheddar has told the state ag department to “take a hike” regarding data used to set monthly producer payments for 4b (cheese) milk.

High Grain Costs (Around $700.Ton) Threaten Northeast Organic Milk Supply (p. 6):
Organic dairy producers in the Northeast are facing terribly high costs for purchased grain – a factor that threatens both profits and continuation of their farms. Will there be a confrontation between Northeast organic dairy producers and the buyers of their milk???

Berry College Dairy: Branding a Small Jersey Herd, Building Business Entrepreneurs (p. 7):
Writer Julie Walker visits Berry College (Rome, Georgia) and describes that small school’s wide-ranging dairy program. The college instructs students in the areas of dairy herd operations, marketing of cheeses, and, now agri-tourism. Interesting!

Feature Story: Milk Prices Have No Correlation to Cheese Inventories (p. 8-9):
John Bunting explains how farm milk prices have demonstrated zero statistical correlation with USDA’s reported cheese inventories – ever since Milk Protein Concentrates started invading the U.S. in the late 1990s. Brilliant explanation of dairy’s manipulated price system. See our “Story of the Month” here.

Federal Reserve Secretly Loaned $7.7 Trillion to U.S. & Foreign Banks (p. 9):
Bloomberg News fought the Obama administration all the way to the U.S. Supreme Court to gain release of documents showing how Federal Reserve secretly loaned $7.7 trillion to troubled banks. Not even Congress was told about this.

Filtered Waste Vegetable Oil Beats Down Farm Energy Costs (p. 10):
Paris Reidhead describes the simple, low-tech waste vegetable oil processing system operated by NY dairy farmer Jon Close. In 2011, Close kept his diesel fuel costs to $2 per gallon, by producing 1700 gallons of fuel from local restaurants’ supplies of used frying oil.

Big Corporations Adding Wood Fiber to Many Food Products (p. 11):
News media reports have unveiled use of wood fiber products in many consumer foods. Why? The tiny wood fibers soak up water and “fill” processed foods with cheap volume!

GAO-12-46 Economic Adulteration (p. 11):
The Government Accountability Office has criticized FDA for failed oversight in what’s labeled “Economic Adulteration” of food products. In other words, FDA has allowed use of cheap fillers and substitutes in manufacture of many food products.

Shamrock Farms Organic CAFO Dairy Suspended by USDA for Violations (p. 11):
Shamrock Farms – a dairy processor located near Phoenix, Arizona – has suffered suspension of its organic dairy farm, where thousands of cows are milked – due to violations of USDA’s organic standards.

2011 U.S. Seed Corn Harvest Probably 25-30% Short (p. 12):
Months of bird-dogging this issue lead us to this year-end conclusion.

Pepsi to Build “Biggest Yogurt Plant in North America” (p. 12):
Batavia, New York is the announced site for plans by PepsiCo to build the biggest yogurt plant in North America. Where will the milk come from???

Dairy Livestock Prices Mostly Down, Except for Culls, Top Springers and Cows. (p. 13):
Money and forage supplies are tight. Grain prices are high. These events are pulling down values for most dairy livestock. Prices for open heifers and short breds are down.

Cheddar “Takes a Header” at CME, Other Commodities Price-Stable (p. 14):
In about three weeks, block Cheddar cash prices at CME fell back 32.5 cents per pound. Cheddar barrels fared even worse. Only good news is that global demand for butterfat is pushing up prices on Fonterra’s twice-monthly auction.

“… when money failed in the land of Egypt … (p. 15):
Pete Hardin cites Genesis 47: 13-27 as a reference for the ancient wisdom that the farmer must receive a “Fair Share,” and then briefly extrapolates a certain modern nation’s failure to comprehend that necessity.

Canada: Cheese Standards (p. 15):
The Canadian Supreme Court has upheld changes in cheese standards that disallow certain major food processors’ cheap ingredients. Lawyers for Kraft Foods and Saputo Cheese took this issue all the way to the top of Canada’s legal system.

November 2011 Issue No. 388

Inside this month’s issue...

Feature Story #1: Forage Supplies/Price & Cull Prices Will Constrict 2012 Milk Flow (p. 1):
Editor Pete Hardin looks at how the expected scramble for available forage supplies and sky-high cull cow prices in 2012’s first quarter will seriously depress 2012 U.S. milk flow. Read all about it here.

Brutal Dairy Policy Battle in Washington, D.C. (p. 1):
Conflicting dairy policy interests are battling each other over future federal dairy policy in the nation’s capital. The big conflict: efforts to rush the Dairy Market Stabilization Program” through the budget-cutting “Super Committee.” National Milk Producers Federation – the dairy co-op lobby – is behind this scheme.

October Class III Price $18.03 - Class IV $18.41 (p. 2):
The manufacturing class prices in the federal milk order program each fell about $1.00 per cwt. from the September levels.

Tiny Budget, More Computer Screw-Ups For USDA’s Dairy Gross Margin Insurance (p. 3):
Retired dairy farmer Nate Wilson makes his reporting debut for The Milkweed with a well-researched article about the mess behind USDA’s October 28-29, 2011 “bidding” for dairy farmers hoping to participate in the pilot Livestock Gross Margin for Dairy program. What went wrong? First, some bidders got a 40-minute head start on others. Next, the computer system failed. All this for a paltry annual budget allocation of $7 million nationwide!

Study Reveals: NMPF Dairy Scheme Would Lower Farm Income (p. 4):
We report on a very recent study by university dairy economists Chuck Nicholson and Mark Stephenson that analyzed the financial impact upon dairy farmers’ milk incomes of the current dairy policy proposals being pushed before the federal budget “Super Committee.” The economists conclude that dairy farmers would lose as much as $.92 per cwt. over the 2012-2018 timeframe.

Can Down-trending Fluid Milk Sales Be Reversed? (p. 5):
Pete Hardin takes a tough look at U.S. fluid milk sales trends and concludes that dairy needs to offer a better product to consumers. Ways to improve fluid milk sales would include: re-image milk as affordable, complete protein; eliminate items such as rbGH, Ultra-High Temperature processing, High Fructose Corn Syrup, use of bovine reproductive hormones in milk cows, and give consumers more choices for non-homogenized milk. Why are organic milk sales booming (+10%) and fluid milk sales declining?

Members’ Purchasing Efficiencies Propel All Star Dairy Assn.’s Growth (p. 6-7):
“In the analysis of The Milkweed, it’s hard to find a dairy trade association that demonstrably benefits members’ bottom line financials better than All Star.” Unquote. Based in Lexington, Kentucky, All Star offers a wide variety of services to members, particularly with group volume purchasing efficiencies. Members include dairy processors, food processors, suppliers, and milk transportation firms.

Studying Dairy Products at Kroger Stores (p. 7):
Editor Pete Hardin’s practiced eye takes readers through the dairy product sales sections of Kroger supermarkets in Kentucky. Kroger offers an amazing array of cheeses at its “Market Place” stores. And Kroger pounds branded marketers of fluid milk, cheese and yogurt with its store-brand items.

Home-Grown Sprouted Barley “Fodder” Boosts Milk Efficiency, Components, Food Health & Longevity (p. 8-9):
Ken and John Wilson – a son-father team of New York dairy farmers – have designed a system that produces sprouted barley fodder in six days. Feeding that fodder to their 130 Holstein milk cows has yielded many benefits to the farmers and their dairy animals. The Wilsons plan to market their system. This piece is the most amazing story ever published in the 32+ year history of The Milkweed.

Declining Fluid Sales: Tied to Social Complexities (p. 11-12):
Writer John Bunting takes a close look at societal and economic trends that are partially responsible for declining fluid milk use. Examples: less consumption of cereal for breakfast, more moms working and not having time to prepare traditional meals, and the explosion of processors’ and retailers margins since the Reagan administration decoupled farm milk prices from parity while at the same time cutting out most of the federal antitrust budget.

Reminder: Send in NAIS Comments to USDA by December 9 (p. 12):
Mary Zanoni reminds readers who are opposed to mandatory federal animal identification schemes to formally share their opinions with USDA during the present comment period ending December 9, 2011.

Stammer Succeeds Johnston at Agri-Mark (p. 12):
Now CEO-ing for Agri-Mark, Dr. Richard Stammer, who replaces CEO for life Paul Johnston.

Dairy Cattle Replacement Prices at Auction Markets Across the USA (p. 13):
Demand for top-end springers and milk cows is keeping prices solid, but virtually all other categories of dairy livestock are seeing prices slip backwards, for the most part. Money is scarce, uncertainty is ample.

Feature Story #2: What Our Politicians Would Do With Two Milk Cows (p. 13):
Old humor recirculates about what different forms of government would do to a farmer with two milk cows. Editor Peter Hardin updates that humorous with speculation on how various politicians would manage two cows. Read it here.

Cheddar Prices Rebound, Butter Declines (p. 14):
The past month has seen a 20-cent rebound for Cheddar prices at CME. But butter prices are falling, and the market for nonfat dry milk is soft.

No current dairy policy proposals will sustain producers (p. 15):
“None of the above” gets Pete Hardin’s vote among the choices bantied about in Washington, D.C. Why analyze policies that are going to create milk prices averaging $15-$16 (or so) for the next seven years, Hardin asks. At that rate, “We might as well debate what color pansies Uncle Sam should put on the gravestones of the majority of U.S. dairy farmers.” Rather, we need a whole new farm milk pricing system, one that includes factors such as milk production costs, investment in dairy farm overhead, commodity prices, and retail prices paid by consumers.

Not So Fast Creating U.S. Food/Farm Policies (p. 15):
Whoa! Why the race to lock in federal food/farm policy for the next five years. The current process completely ignores the public and is basically marked by a behind-closed-doors, “Hurry up and shut up” attitude.

Barley sprouts: most amazing story in 32+ years (p. 15):
We refer to the barley sprout story in this issue (p. 8-9). Imagine a dairy cow feed that raises components, improves longevity, improves foot and leg conditions, reduces manure output, and reduces producers’ reliance on purchased feeds/forages. Ken and John Wilson – New York dairy farmers – have designed a 16’ x 20” unit that can produce 130 tons of six-day old barley sprouts per year.

Frozen Dairy Desserts “Dumbing Down” Ice Cream Category (p. 16):
Look closely, that yummy-looking product in the ice cream section of your supermarket may not be ice cream, but “Frozen Dairy Dessert” – a cheap, knock-off product.

October 2011 Issue No. 387

Inside this month’s issue...

Ugly: Farm Milk Price Decline Ahead (p. 1):
During the past two months, declines in dairy commodity prices set the stage for a drop of $4.00/cwt. (or more) by November – compared to average prices received during July-September -- for U.S. dairy farmers milk prices.

The Milkweed Estimates U.S. Seed Corn Harvest About 30-35% Below Expected 2011 Supply (p. 1):
One month ago, this publication estimated a 20-30% shortfall in the 2011 U.S. seed corn harvest. Based on subsequent news and weather events, we up the ante to a 30-35% estimated decline (below expectations) for the vital seed corn crop. That estimate may be conservative.

U.S. Rushing to Resume Japanese Beef Imports Despite FMD Threat (p. 2):
Despite the fact that Japan is on the back end of a Foot & Mouth Disease battle, USDA wants to expedite approval of Japanese beef imports into this nation. In 2007, the Homeland Security agency warned that FMD was the leading bioterrorism threat. Who needs Al-Qaeda when we’ve got USDA’s Animal Plant Health Inspection Service???

Correction: NASS’ Texas & New Mexico July Milk Totals DID Correlate with Federal Order Figures (p. 2):
The Milkweed made a Texas-sized error last month, when we incorrectly asserted that July 2011 milk production between NASS and USDA’s federal milk order did not square. Correctly stated, the data was the same. Even so, folks in the Texas dairy industry can’t believe July 2011 milk output was up 8%. And nor can they believe that August 2011 milk volume increased by 11%.

September Class III Price $19.07 – Class IV $19.53 (p. 2):
Take a good look, following months’ prices will decline.

“Devil in the Details” as Peterson/NMPF Morph FFTF into H.R. 3062 (p. 3):
National Milk Producers Federation (the dairy co-op lobby) and its beholden Congressman (Colin Peterson, D-MN) have packaged NMPF’s “Foundation for the Future” program into H. R. 3062. The program has been changed extensively since early summer. Little understanding or support for H.R. 3062 may be found in farm country.

IDFA Media Campaign Blasts Federal Milk Orders (p. 4):
The nation’s dairy processors’ lobby – the International Dairy Foods Assn. (IDFA) – has opened a public barrage aimed at eliminating the federal milk order program. IDFA’s blitz of advertisements claims that consumers have suffered unduly high milk costs due to the antiquated federal milk order program and its bureaucrats.

U.S. Consumers Pay 1.7 Cents Per Gallon “Milk Tax” (p. 4):
The International Dairy Foods Assn. controls a $110 million/year fund generated by a “Milk Tax” (1.7 cents per gallon). USDA added $.20 per cwt. to fluid milk processors’ raw milk costs, and diverts those receipts to management of IDFA. The MilkPEP program is (in)famous for the insipid “Milk Moustache” ads. IDFA – the same group complaining about federal milk orders (see immediately above) – rents office space and manages MilkPEP. Wonder if IDFA’s “in-house” travel agency books flights for MilkPEP personnel???

Top Producer Premiums $2.50/cwt. in Eastern Ohio Market (p. 5):
Stiff competition for farm milk in eastern Ohio is erupting, due to fluid milk and cheese plants’ expanding volumes to supply customers. The top-shelf premium to producers is $2.50 per cwt. Wow.

Animal Rights Group Sues NMPF/CWT, Illegal Milk Price Enhancement Alleged (p. 5):
An animal rights group (Concerned Over Killing, or COK) has filed suit against National Milk Producers Federation for the cow-killing program known as “CWT.” NMPF paid dairy farmers to kill their milk herds, to reduce milk production and boost farmers’ prices. The basis of the legal complaint: CWT was not properly structured as a “Marketing Agency in Common,” because it included independent producers (i.e., not members of a cooperative).

Seed Corn T-I-G-H-T; Contract 2012 Supplies Yesterday (p. 6):
The headline says it all, in tandem with the article on page 1.

“Triple Stax” GMO Corn Suffering Premature Ear Loss (p. 6):
Here’s one Monsanto et al. don’t want farmers to realize: the super-dooper “Triple-Stax” GMO corn (infused with three biotech traits) has a problem. Significant numbers of ears are falling off this fall, before they can be harvested.

Feature story: New Dairy Pricing Concept: “Protein & Energy” from Feed Bunk to Supermarket Dairy Case (p. 7):
Pete Hardin expands his thesis that dairy farmers are NOT in the “milk business.” Rather, dairy farmers are in the “protein and energy business.” Read all about it here.

Digging Deeper into CME’s Influence on Dairy Pricing (p. 8-9):
Writer John Bunting continues his search for nuggets of truth in milk pricing, with further investigation into antics at the Chicago Mercantile Exchange.

USDA’s Food Programs Make “Cheap Dairy” Bargain (p. 9):
The single largest purchaser of dairy products in the United States is Uncle Sam. Thus, to keep within budgets, Uncle Sam may have less than full interest in investigating complaints that certain events unduly lower farm milk prices.

Grain Costs Impair Peak Milk Production Profits (pp. 10-11):
Writer Paris Reidhead takes a long look at how higher grain (energy) costs mean feeding for peak production in dairy cows is probably a money-losing endeavor. High-end milk output requires a lot more grain per pound of output.

Bad Gas? Ethanol May Harm Gas Engines (p. 11):
You won’t like the idea of putting ethanol-blended gasoline in your car (or chain saw) after reading Paris Reidhead’s explanation of why corn ethanol goofs up engines.

New USDA NAIS Requirements for Cows & Horses Compared (p. 12):
Writer Mary Zanoni takes on USDA’s new proposed rules for animal identification, which focus mainly on creatures crossing state borders. Required reading for skeptics of mandatory government animal ID requirements.

Dairy Livestock Prices Downtrending, Except for #1 Springers (p. 13):
The headline says it all. High feed/forage costs and declining milk prices mean there’s a lot less buyer interest in dairy livestock, except for top quality animals.

Dairy Commodity Prices Sink, Pulling Down Inventory Values (p. 14):
The dairy commodity price collapse that has hit Cheddar, butter and nonfat dry milk means firms holding inventories are generally upside-down.

$30/Cwt. in Canada, NZ and Even China, But Here??? (p. 15):
Pete Hardin takes a long look at milk prices and pricing events and wonders why, when other nations (developed and otherwise) see dairy producers getting $30 per cwt., where’s the share for U.S. producers.

If you’re staying in the game … (p. 15):
Pete Hardin discusses strategies and realities for dairy farmers who want to be survivors.

Southeast Milk Antitrust Litigation Trial Delayed Until Spring 2012 (p. 16):
Writer Julie Walker, who’s followed the case very closely, gives an update on events in the big dairy antitrust trial in Tennessee. She explains that the trial – once scheduled for March 2011 – will not be started until at least Spring 2012.

Free Weekly U.S. Hay Price List E-Mail (p. 16):
Interested persons may sign up to receive a free, weekly analysis of forage supply/demand and prices. Rick Mooney is the editor of eHay Weekly. To learn more, go to: www.hayandforage.com

September 2011 Issue No. 386

Inside this month’s issue...

U.S. 2011 Seed Corn Harvest Way Down: -20% to -30%? (p. 1):
Extreme hot weather in July impaired corn pollination. As this year’s seed corn crop – vital to next year’s corn plant – is harvested, firms are adding up the damages.

Cheese Leads Dairy Commodity Decline at CME (p. 1):
Since late July, Cheddar dropped about 40 cents per pound at Chicago Mercantile Exchange cash trading. There are numerous signals and data in the dairy industry to indicate that the Cheddar price drop was not justified.

Several Milk Shortages Ahead: Southwest, Southeast, Northeast and ??? (p. 2):
Adverse weather has pounded several key milk-producing regions of the country. And California dairy producers are in for a shock as they are now negotiating annual grain supply contracts. Current (and rising) grain prices mean $20/cwt. production costs for most Golden State dairies.

Early Corn Harvest: Lower Yields, Light Test Weights (p. 3):
Early reports from the U.S. corn harvest are varied, but in general, yields are lower than anticipated and “test weights” are light. Light test weights mean reduced nutritional value per bushel.

June 2011 Record Class III Price $21.67 - Class IV $20.14 (p. 3):
Take a good look. With dairy commodity prices declining in the past month-plus, it will be at least several months before these price peaks are attained again, despite clear future challenges to producing farm milk.

Southeast Antitrust Trial vs. DFA Postponed Indefinitely (p. 4):
The intended September 13 starting date for the Southeast antitrust trial pitting farmer plaintiffs against Dairy Farmers of America has been postponed indefinitely. Judge Ronnie Greer has issued confusing rulings about the status of the subclass of DFA member (and ex-member) plaintiffs. So it’s best to sort out that confusion before the trial starts.

WARNING! Southeast Producers Should Ignore Lawyers Offers to Settle SE Antitrust Case (p. 4):
Dairy farmers in the Southeast are receiving offers from companies seeking to represent dairy farmers in the filing of settlement claims stemming from the big antitrust hearing. The Milkweed advises producers to ignore solicitations from such characters and allow their interests to be represented by counsel for plaintiffs and other possible court-appointed legal representatives. Dairy farmers’ claims date back to January 2001 – so giving up one-third of their claims to a bunch of hucksters from places like New Jersey and New York would be a mistake.

Peterson Flip-Flops FFTF Numbers; NMPF Scorns “Milk Tax” Critics (p. 5):
U.S. Representative Collin Peterson (D-Minn.) changed some of the reference points in the version of the working draft of proposed dairy legislation circulating in Washington, D.C. Peterson, fronting for National Milk Producers Federation and the “Foundation for the Future” policy package, has changed numbers to make it somewhat less likely that assessments would kick in against dairy farmers’ milk checks.

FFTF’s Structural Defect: Rising Grain Costs Likely to Outpace Future Farm Milk Price Gains (p. 5):
The Milkweed’s analysis is that, relatively speaking, there is much more upside to grain costs than farm milk prices in the future – in part due to global grain scarcity as well as a weak U.S. dollar. Therefore, the formula based up farm milk prices and grain/forage costs that’s proposed for the Foundation for the Future could result in assessments against dairy farmers’ milk checks, even if there were no U.S. milk surplus.

September 7: WI Supreme Court Hears Mega-Dairy Siting Arguments (p. 5):
On September 7, the Wisconsin Supreme Court heard arguments in a case pitting the rural Town of Magnolia against Larsen Acres, a 2900-cow mega-dairy. Testing of a local stream reveals high levels of nitrate contamination. But the mega-dairy has contested the local town’s right to set water quality standards on the dairy.

Mega-Dairies: Broken Model for U.S. Milk Production (p. 6):
Writer John Bunting digs deep into the structural model of factory-scale dairies and concludes that for many, the future is bleak. High grain prices have broken the cost structure on which many factory-scale dairies were founded.

Bovine TB Used to Push Animal ID; Mexico’s TB Role Ignored (p. 6):
USDA is back with a scheme to require animal identification technologies on all animals moving between states. USDA is ignoring the fact that most of the bovine tuberculosis problems have stemmed from both cows and humans crossing the border from TB-racked Mexico.

Attn. Dairy Producers: You’re N-O-T in the Milk Business, You’re in the P-R-O-T-E-I-N and E-N-E-R-G-Y Business (p. 7):
Pete Hardin explains from the decisions on which seeds to plant and when/how crops are harvested/stored/fed, dairy farmers are merely producing/purchasing crude proteins and energy … and then managing dairy herds to convert those crude forms of energy and protein into the liquid carrier for these refined forms of protein and energy (butterfat) that are biologically available to humans in the array of dairy products. Think about it!

Feature Story: Kraft Foods Up to Its Old Tricks … As Cheddar Prices Nose-Dive at Chicago Mercantile Exchange (pp. 8-9):
Read our feature story of the month here.

Kernel Processor Boosts Corn Silage Feeding Efficiency (p. 10):
“Corny” Reidhead (our writer, Paris) explores the improved feed efficiency gained by adding a kernel processor to silage choppers. Kernel processors further break down corn kernels in chopped silage – making the nutrients in each kernel more biologically available to the dairy cow. This story includes farmer testimonials and insights.

Dairy Taking Chocolate Milk Critics Seriously (p. 11):
Critics of chocolate milk in schools have scored some successes in getting flavored milk removed from some schools in the U.S. Criticisms include the caloric content of chocolate milk, which is tied into the overall obesity problem in a large percentage of American children. Chocolate milk sales in school equal about 4.9% of total U.S. fluid milk sales. Dean Foods has rolled out a lower-calorie chocolate milk: “TruMoo.”

NAIS Rises from the Grave: USDA Wants Mandatory Animal ID (p. 12):
Writer Mary Zanoni reports on USDA’s latest scheme to revive the mandatory animal ID program. USDA wants all livestock moving between states to be enrolled in an animal ID program.

Drought-Forced Exodus of Southwest Livestock to Slaughter Pulling Down Dairy Cull Cow Prices in Several Regions (p. 12):
Large numbers of cattle – beef and dairy – are moving to slaughter from the Southwest. Beef slaughter facilities in the Upper Midwest, Southeast, and even the Northeast, are receiving trailer loads of cattle from the Southwest. Short-term, these large numbers of animals and knocking down cull cow prices in those regions. But The Milkweed projects all-time high dairy cull prices by the first quarter of 2012, once the emergency exodus to slaughter of Southwest cattle is over.

NASS Shifting to Regional Offices, Reducing Presence in States (p. 13):
USDA’s National Agricultural Statistics Service (NASS) is consolidating its 50 state offices into nine regional offices, in a move to save money. Employees will be disrupted. Farmers will see further decline in the accuracy of NASS’ reports.

Dairy Commodity Prices Take Big Tumble (p. 14):
The headline says it all.

Dairy & Uncle Sam (p. 15):
Pete Hardin offers his basic notions about what appropriate federal dairy policies should be, starting with a commitment by USDA to purchase a variety of foods for domestic hunger and disaster relief efforts. Such foods would include components from several agricultural commodities: example—frozen pizza.

Never Have Seen Such Uncertainty (p. 15):
Weather … the economy … pending food shortages. Pete Hardin puzzles over what a seemingly intractable mess this nation faces.

New Book Details Wisconsin Dairying – Origins to Present (p. 16):
A newly published book, “Creating Dairyland,” captures the history of Wisconsin’s dairy industry, from the vision that drove it to modern day participants’ roles on the farm and in the industry. In The Milkweed’s analysis, the development of Wisconsin’s dairy industry was the greatest economic development project in the history of the nation – a success story now including the sixth, seventh, and eighth generations. Author Ed Janus has crafted a gem of a book that ought to be under a lot of Christmas trees in “America’s Dairyland” … and a lot of other states, too!

USDA’s Sept. 12 Crop Reports Show Big Problems (p. 16):
USDA has chopped off nearly five bushels per acre on estimated corn yields in the past month, according to a big report issued on September 12. Soybean yields fell also. A total of 20% of U.S. corn acreage is categorized as “Poor” or “Very Poor” – last year, that combined total was 12%.

August 2011 Issue No. 385

Inside this month’s issue...

Summer Heat/Humidity Devastate Milk Flow & Components (p. 1):
July’s heat seriously depressed milk flow and butterfat in several regions of the country. Serious questions remain about how dairy cows will bounce back from the weather stresses.

USDA Maintains Corn Acreage Optimism (p. 10):
The August 11, 2011 Crop Production report from USDA continued estimates from late June that U.S. corn acreage was 92.3 million. USDA’s latest report apparently ignores flooding along the Missouri River and its tributaries.

NMPF: Half of FFTF “Milk Tax” Would Go to Uncle Sam (p. 10):
Uncle Sam wants his mitts on 50% of any “Milk Tax” that would be assessed against dairy farmers under the proposed “Foundation for the Future” program. Why? Because assessments would reduce dairy farmers’ income tax liabilities and Uncle Sam would lose money. Go figure.

CFTC Fines Belgium-based Ecoval for NFDM Price Manipulation at CME (p. 2):
Ecoval, a major international dairy trading firm, was recently fined $1.3 million dollars for attempts to manipulate NFDM futures. The fine covers activities in the second half of 2007.

Antitrust Write-Downs Curdle Dean Foods 2nd Quarter Earnings (p. 2):
The nation’s biggest fluid milk processor wrote down $131 million in legal settlements against its 2011 second-quarter earnings, resulting in a loss per share of $.28.

June 2011 Record Class III Price $21.39 – Class VI $20.33 (p. 2):
Strong increases in Cheddar and whey prices propelled the Class III (cheese) milk to an all-time peak in USDA’s federal milk order program: $21.39/cwt.

Feature Story: FFTF’s Proposed “Milk Tax”: History Repeating 1983 Events? (p. 3):
Dairy farmers should prepare their milk income for a “Collin-oscopy” … if Congressman Collin Peterson’s “discussion draft” of NMPF’s proposed Foundation for the Future dairy legislation becomes law. Read all about this “brain dead” legislative scheme here.

Many Dairy Co-ops Searching for CEO Replacements (p. 4):
We count five U.S. dairy co-ops in the CEO search mode, although at press time one of those spots was filled. Surprise: Foremost Farms board is looking to replace Dave Fuhrmann.

IF SE Antitrust Case vs. DFA Goes to Trial, The Milkweed Will Offer Daily Web Site Coverage (p. 5):
The long-awaited Southeast dairy antitrust trial is set for August 16. We’ll try to offer daily coverage and documents’ posting on our Web site: www.themilkweed.com.

Questions/Answers – What’s the Southwest Feed Situation for Dairy Producers? (p. 5):
Veteran dairy nutritionist Dan Loper shares his insights about crop availabilities and costs facing producers in the Southwest.

About Time! FDA Slams “Muscle Milk” Products as Misbranded, Etc. (p. 6):
The federal Food and Drug Administration has sent a warning letter to CytoSport, Inc., manufacturer of “Muscle Milk” nutrition beverages and bars, warning that those products do not conform to definitions of milk and are otherwise misbranded.

Lawsuit: “Muscle Milk” Unfair, Unlawful, Deceptive & Misleading (p. 6):
A California law firm has filed a class action complaint against CytoSport, manufacturer of “Muscle Milk” products, claiming a variety of violations of California consumer protection laws. Setting the Stage for Trial: Timeline of the Southeast Milk Antitrust Litigation (p. 7): Julie Walker, who will cover the antitrust trial for us, gives an in-depth history of Southeast dairy antitrust events.

Tight Global Butter Supplies Driving High Milkfat Prices (p. 8):
Writer John Bunting explores events in the butter industry that have lead to the current strong commodity prices.

Dairy Livestock Slaughter Numbers Trending Up (p. 9):
John Bunting analyzes the trend towards more U.S. dairy cows being sent to slaughter.

Northeast Dairy Antitrust Plaintiffs Want Structural Change (p. 9):
At a hearing before Judge Christina Reiss in federal court on July 18, plaintiffs’ attorney Kit Pierson emphasized that his clients wanted structural change in the Northeast dairy industry as part of any settlement with the remaining defendants, Dairy Farmers of America and Dairy Marketing Service.

Biodiesel Keeps Up With New Engine Design (p. 10-11):
Writer Paris Reidhead explores his passion – biofuels and their beneficial aspects on performance of diesel engines.

Standard & Poor’s Downgrades U.S. Government’s Credit Rating (11):
What’s behind the recent downgrade of U.S. government securities?

Major Canadian Organic Grain Exporter’s Certificate Suspended (p. 12):
Writer Will Fantle of the Cornucopia Institute details how a major Canadian-based source of organic soybeans sold in the U.S. has been caught cheating and has lost its organic certification.

Promiseland Forfeits USDA Organic Status (p. 12):
Will Fantle reveals that a major supplier of “organic” dairy and beef animals has been exposed as a cheat.

Dairy Livestock Auction Prices (p. 13):
Market prices vary around the country, in great part determined by local crop and weather conditions.

Why Are Dairy Promotion Personnel Involved in Policy Issues? (p. 13):
Despite clear-cut prohibitions, dairy promotion personnel are engaged in trying to influence federal dairy policy. Example: Tom Gallagher, CEO of Dairy Promotion, Inc., is listed on the committee that’s been developing “Foundation for the Future.” That effort is pure politics.

Industry Weighs Impact of Heat on Dairy Commodities’ Output (p. 14):
When cheese prices are above $2.00 per pound, some folks get nervous. But other folks are nervous, wondering where the dairy products will come from after this summer’s heat/humidity and crop damage.

“NO NEW TAXES: -- Doesn’t NMPF Understand? (p. 15):
Pete Hardin skewers National Milk Producers Federation for its dairy policy proposals that include a “Milk Tax” on farmers’ milk income. Very simply: NMPF doesn’t seem to get the current drift in Washington, D.C.

Please Help Expenses Reporting DFA Antitrust Trial (p. 15):
Pete Hardin asks subscribers to contribute to the daily coverage we’ll offer on our Web site by sending modest donations to Julie Walker – the reporter on the scene. The trial is anticipated to last eight weeks, if it doesn’t settle privately. The Milkweed will offer daily analysis and post key documents on our Web site – www.themilkweed.com.

Corn Infused with “Timex* Gene” Rebound from Wind Damage (p. 16):
The pictures tell the whole story. Severe damage from 70-mile per hour winds on July 11 left much corn in southern Wisconsin horizontal. But five days later, most stands were upright and headed to tassel. Jokingly, Pete Hardin suggests that the corn plants have been infused with a “Timex Gene” – playing off the old Timex watch television commercials that claimed Timex watches “would take a licking and keep on ticking.”

July 2011 Issue No. 384

Inside this month’s issue...

Feature Story – 6/30: USDA Reports More Corn Acres, But Ignores Flooding (p. 1): Read our “Story of the Month here. Dean Foods/Farmer Plaintiffs Reach Settlement in SE Antitrust Case: $140 Mil. (p. 2): A pre-trial settlement removes the nation’s largest fluid milk processor from a big antitrust trial scheduled to start in mid-August. Dean Foods will pay out $140 million over five years. Now the spotlight turns to Dairy Farmers of America as the sole major defendant. 2011: Year-to-Date Cheese Imports Up Almost 25% (p. 2): John Bunting analyzes dairy import/export volumes for 2011 and finds … surprise … imports are way up! June 2011 Class III Price $19.11 – Class IV $21.05 (p. 3): Strong dairy commodity prices show up in farm milk prices for June 2011. Wisconsin Cheese Squeeze: Less Milk, More Plant Capacity (p. 3): Wisconsin cheese plants – with expanded capacity – are now chasing less milk, as farms produced less milk in May. USDA: Big Boss Customer at Cheese Counter (p. 3): Guess what entity is the biggest, or second biggest cheese buyer in the nation? USDA. Maybe that’s why USDA looks the other way at cheese pricing irregularities. Where Will Southeast Find Extra Fall/Winter Milk Supplies? (p. 4): As Drought, high grain prices and financial frustration pull down Southeast milk production, the question becomes: where will supplemental milk output come from to supply the Southeast’s needs later this year? All major supplying regions are tight on milk. Southeast Milk Litigation: Context and Complexities – Setting the Stage for Trial (p. 5): Writer Julie Walker – who has attended most of the hearings in this case – reports the background and issues for the upcoming Southeast dairy antitrust case scheduled for trial on August 16. Fluid Milk from Mexico Now Selling in Several U.S. Markets (p. 6): A Mexican dairy company is now importing and selling UHT fluid milk in several regions of the U.S. FDA’s Third-Party Certifications: Okaying Foreign Grade A Dairy Plants (p. 6): The U.S. Food and Drug Administration now has a program to let private firms inspect and okay foreign dairy plants to meet U.S. Grade A dairy sanitation rules … so they can send imports to the U.S. A. J. Bos Retreating from Nora, Illinois Mega-Dairy Project? (p. 7): Retreat? Neighbors around the proposed mega-dairy site near Nora, Illinois are chuckling as they watch de-construction crews take apart roofing panels and trusses from huge buildings once intended to house thousands of cows at a project owned by Californian A. J. Bos. Waste Vegetable Oil Powers Sullens Transport’s 50 Milk Trucks (p. 8-9): Sullens Transport LLC has 50 milk truck on the road, operating within a 500-mile radius of McMinnville, Tennessee. The fleet is fueled by biodiesel processed from waste vegetable oil. Here’s how these inventive folks do it! Grain Supply Crunch: Options for Dairy Producers (p. 10): With anticipated high grain prices for years ahead, Paris Reidhead offers some strategies for dairy farmers to consider as alternative, cheaper feeding strategies for their animals. Brush Livestock: an Exclusive Interview by The Milkweed (p. 11): Brush Livestock is one of the most vigorous livestock auctions in the country. Read what the operators have to say about their business and locale. Organic Feed Sources in Danger: Crop Producers Switching Back to Conventional (p. 12): Writer Heidi Griminger Blanke details the pressures on organic grain producers that are forcing a cutback of organic crops in the U.S. This situation makes it hard to visualize growth in organic dairy, down the road. Very interesting article. Dairy Cattle Auction Markets (p. 13): Prices for springers are either flat or down about $100 across the U.S. Meanwhile, there’s strength in prices for breeding-age heifers and baby calves. Livestock Notes (p. 13): Pete Hardin details how fewer dairy animals are moving through livestock auctions, plus how Drought in the Southwest is busting regional livestock prices as producers must send animals to market due to lack of feed. Domestic Dairy Demand Softens; Milk Output to Tighten (p. 14): Pete Hardin covers the wide-ranging dairy supply/demand picture. Marketers are nervous about Cheddar prices. But high grain price and adverse weather should pull down U.S. milk output in coming months. “Foundation for the Future” is Brain-Dead (p. 15): Pete Hardin unloads on the insipid proposal for dairy policy changes by National Milk Producers Federation. Hardin scorns the proposal for: eliminating more than 80% of all butterfat pricing in federal orders, as well as 100% of all protein pricing; proposing “milk taxes,” on farmers’ milk checks, going to a two-class milk price system, having taxpayers fund “insurance” for dairy farmers’ profits, etc., etc. Bad idea, period.

June 2011 Issue No. 383

Inside this month’s issue...
For REAL: CME Cheddar Market Tops $2 Per Pound (p. 1):
In the past month, block Cheddar cash market prices at the Chicago Mercantile Exchange have gained nearly 50 cents per pound. Many factors – from stronger global demand to product contamination problems – have shorted U.S. cheese supplies and drive up prices.

U.S. Likely to Exhaust Corn Reserves before 2011 Harvest (p. 2):
You won’t get Tom Vilsack to admit it, but the U.S. will run out of corn before the current crop is harvested. Mother Nature is throwing many challenges at U.S. farmers this year. Implications for this nation running out of corn are unprecedented.

Product Contamination: TX Plant Loses 2+ Weeks of Cheese (p. 2):
Plastic residues shredding from a conveyor belt forced the Hilmar Cheese plant at Dalhart, TX to withdraw more than two weeks of cheese production from commercial channels – about 12-15 million pounds of finished product.

May 2011 Class III Price $16.62 – Class IV $20.29 (p. 3):
Wait ‘til next month!

CME Goofs, Then Quits Weekly Butter Inventory Report (p. 3):
In May, the Chicago Mercantile Exchange discovered a huge error in its weekly survey of butter warehouse inventories. Previously, about HALF of CME’s surveyed warehouse butter inventories were apparently unreported. Following this fiasco, CME has ceased weekly butter inventory reports. CME had instituted weekly butter inventory to provide information for parties trading in butter-related futures/options contracts.

Comparing Milk Powders’ Protein Costs (p. 3):
Writer John Bunting analyzes various costs of dairy protein, per pound, from different measures of nonfat dry milk and skim milk powder values.

Speculators Drive Petroleum Markets … Just Like Dairy (p. 4):
Why do certain energy-related sectors and dairy have in common? Narrowly-traded futures/options and a few powerful players.

Closer Look at Dean Foods’ Q1 Earnings: Tax Refund & Yogurt Sale Created “Profit” (p. 4):
The modest $25 million profit registered by struggling Dean Foods in 2011’s first quarter was due to a tax refund and sale of the Mountain High yogurt business that combined for $240 million in special revenue.

Dairy Downgraded to Lowfat Side Order; USDA Replaces Food Pyramid with “Plate” (p. 4):
Say good-bye to the confusing, antiquated “Food Pyramid.” USDA has replaced it dietary recommendations icon with a plate. Trouble is: dairy is literally “off the plate” as a low-fat side entry.

Chinese Dairy Industry Seeking U.S. Investors: BEWARE!!! (p. 5):
We poke fun at the hyperbole surrounding investment potential in a Chinese dairy farm development firm. For a good laugh …

Excellent Wisconsin Cheeses at Real Good Prices (p. 6):
Want good Wisconsin cheeses at really good prices? Then visit the Wisconsin Dairy State Cheese Company factory store at Rudolph, Wisconsin. We profile owner Mike Moran and the 100+ varieties/flavors of Wisconsin cheeses the store offers customers. To Mike, an “import” is a cheese from Iowa!

NYS Producers’ Mailbox Milk Prices Unduly Low (p. 7):
John Bunting compares USDA’s “mailbox” milk prices in New York to other states. Why are NYS producers’ prices so low? Because marketing co-ops (like DFA and DMS) are bleeding farmers’ milk checks for unrecovered marketing costs.

DFA’s 2010 Financial Audit Dismisses/Ignores Legal Liabilities (p. 8):
This is one of our June “stories of the month” features. Read it here.

Another Southeast Antitrust Complaint (p. 8):
Lawyers in Mississippi have filed ANOTHER class action lawsuit on behalf of dairy producers seeking damages from the “usual suspects” (DFA, Dean Foods, etc.) in the Southeast.

DFA’s Bogus “Assets” Equal 86% of Members’ Equity (p. 9):
See this “Story of the Month” whopper here.

“Intangibles” and “Goodwill” Grew Faster than the DFA’s Net Income (p. 9):
Another “Story of the Month” selection available here.

Siggi Yogurt: Icelandic Style, but All-American (p. 10-11):
Paris Reidhead reports the history of Siggi’s Yogurt, processed by a farmstead yogurt factory in Central New York. The operation is distributing nearly 12,000 cases of product per week at the current time.

Southeast Antitrust Trial Set for Aug. 15, Barring Settlement (p. 11):
We explore the behind-the-scenes events involving the combined Southeast dairy antitrust cases.

FDA: Yogurt Ingredients Rule Not Being Enforced (p. 12):
Following a complaint about yogurt ingredients to Wisconsin’s agriculture department, the federal Food and Drug Administration has explained that it’s not enforcing ingredients standards for yogurt! Goodness knows, if an ingredient came out of a cow’s teat anywhere in the world, that’s good enough for FDA to put in our yogurt!

Dairy Cattle Replacement Prices at Auction Markets Across the USA (p. 13):
We not top springing Holsteins topped the $2100 mark at Brush, Colorado. It’s spotty – depending on local crop conditions – but dairy livestock prices are either flat or stronger. Breeding age heifers and baby calves are bringing more money. Top end cull prices are in the $.75 to $.83 per pound, live weight.

Rep. Peterson Ready to Introduce NMPF’s FFTF in June (p. 13):
Look for Minnesota Congressman Collin Peterson to introduce a legislative package that includes proposals to shift future federal dairy policy to National Milk Producers’ Federations’ proposed foolishness called “Foundations for the Future.”

AJCA Analyzes FFTF Unfavorably (p. 13):
National All-Jersey, the milk pricing policy arm of the Jersey dairy breed association, has analyzed NMPF’s “Foundation for the Future” program and concluded that such a program, if made national policy, would erode dairy producers’ incomes.

Several Factors Propel Block Cheddar above $2/lb. at CME (p. 14):
Our discussion of dairy commodity price and marketing trends provides a host of reasons why Cheddar cash markets have rocketed above the $2 per pound level in the past several weeks.

FDA Debases Yogurt: What’s Ahead? (p. 15):
Pete Hardin puzzles what’s become to dairy product integrity, when the FDA is not enforcing a wide range of rules regarding sanitation, ingredient safety and standards of identity.

Don’t Change U.S. Dairy Policies in 2011 (p. 15):
Pete Hardin wants to avoid the rush to dairy policy changes, arguing that food scarcity in 2011 will mean it’s wiser to wait a year and reform federal dairy policies as part of a larger package of national food policies.

NOAA Soil Moisture Map Reflects U.S. Weather Extremes (p. 16):
We reproduce a May 2011 soil moisture map from the National Oceanic and Atmospheric Administration (NOAA) that shows soil moisture levels in each state. The U.S. simultaneously suffers from both major wet weather and major drought.

May 2011 Issue No. 382

Inside this month’s issue...

Word Turning to U.S. for Dairy & Food Reserves (p. 1):
The U.S. is viewed as a last reservoir for dairy and corn reserves. Good luck, all.

Court Transcript Reveals Hanman’s Conspiracies, Salary Bonuses & Payola (p. 1):
Former DFA CEO Gary Hanman’s salary details, along with his role in strong-arming many independent into DFA-controlled markets, AND HANMAN’S “BONUS COMPENSATION” FROM DEAN FOODS FOR KEEPING DEAN FOODS’ RAW MILK COSTS LOW. See our “Story of the Month” in this issue.

Dean Foods 1st Quarter Earnings Favorable (p. 1):
The nation’s biggest fluid milk processors’ first-quarter earnings confounded rumors circulating about first-quarter performance. Dean’s bottom line was boosted by sale of Mountain High yogurt and a tax refund.

Mark Davis (Davisco Foods) Offers Asian Dairy Demand Insights (p. 2):
Following separate trips to Japan and China in April, Mark Davis, head of Davisco Foods (LeSueur, MN) offers his insights regarding Asian needs for U.S. dairy products. Basically, China will take whatever we’ve got, regardless of price.

May 8 Crop Progress Report: U.S. Corn Plantings Way Behind (p. 2):
USDA’s May 8, 2011 weekly Crop Progress report shows that national data on corn planting is about two-thirds completed, relative to a recent, five-year historic base.

April 2011 Class III Price $16.87 – Class IV $19.78 (p. 2):
USDA’s manufacturing class prices for April 2011 showed cheese milk (III) taking a hit, but butter-powder milk (IV) mostly holding its own. The Class IV price will be the foundation for Class I (fluid) milks in the next couple months.

Pending Multi-Region Problem: Too Much Dairy Plant Capacity (p. 3):
In several regions of the U.S., dairy plants have been, or are being, overbuilt relative to available milk supplies. Right now, the situation is worst in the Northeast, where yogurt plants are popping up like dandelions in springtime. But Wisconsin is on a vigorous dairy plant expansion binge, and California dairy plants will likely suffer due to the impact of grain/forage prices on dairy farmers’ ability to continue.

Trade Mission Learns: $30-35/cwt. Milk in China! (p. 3):
Chinese dairy farmers are paid about $30-35 per hundredweight for their milk, a recent group of U.S. dairy visitors to that nation recently found out.

Snapshots of Tornadoes’ Devastation in Southeastern States (p. 4):
Julie Walker – a new contributor to The Milkweed – reviews what’s known about how the horrid, late April tornadoes in the Southeast impacted some dairy farm families. Thank you, Julie!

Cash Flow Chaos When Dairy’s “Money Chain” Breaks (p. 5):
This article explains how a single dollar of milk revenue is used as collateral for debts at three levels of the dairy industry: processor, dairy co-op supplying the processor, and the farmer. We use real names to better raise the question: what happens when the cash flow chain is broken?

“Floating” Cows’ Teeth Can Boost Butterfat, Health & Longevity (p. 6):
A truly amazing story by writer Paris Reidhead! A New York dairy farmer had a first calf Jersey heifer with what he thought was a tooth abscess. The farmer had a veterinary clinic treat the abscess, but the vet determined the real problem was that the animal’s upper molars were too sharp. The vet filed down the sharp points on the Jersey’s upper molars. When she returned home, feed intake, milk volume, and butterfat all took off. Then the farmer treated all 40 of his Jerseys in the same fashion, and has seen big gains in butterfat ever since!

U.S. Would Need More Milk, if Cheese Contained Less “Stuff” (p. 7):
John Bunting really hits the nail on the head this time out! He shows how the so-called U.S. “dairy deficit” really results from a lot of “stuff” (for lack of a four-letter word) put in cheese as extenders. If Americans were getting honest, solid cheese, Bunting theorizes that U.S. cheese plants would need 30% more milk. We also print, citing a 2010 U.S. Patent, all of the “stuff” (for lack of a four-letter word) that Leprino Foods (supplier for Pizza Hut) puts in “cheese.”

Feature Story: Court Transcript Details Southeast Dairy Antitrust Conspiracy (pages 9-10):
An alleged, long-running conspiracy that blocked access to regional fluid milk plants for many Southeast dairy farmers was eloquently detailed in courtroom testimony on January 20, 2011 by attorney Robert Abrams of the Howrey law firm. Abrams is plaintiff’s lead counsel in the Southeast dairy antitrust case that fingers Dean Foods and Dairy Farmers of America (DFA) as blatant antitrust conspirators and violators. Read key excerpts from the transcript here.

Global “Free Traders” Seek to Ban Food Export Restrictions (p. 10):
Hard to believe, but nations that participate in the World Trade Organization are not allowed to embargo food products, with few exceptions. Even if a nation’s people were starving, WTO rules imply that food export embargoes are not allowed. The masters of “Free Trade” are working to tighten up rules and sanctions.

Jan.-Feb. 2011 U.S. Dairy Export Volumes Way, Way Up (p. 10):
The first two months of the year saw big gains in U.S. dairy exports, compared to 2010. Examples: Cheese +98.8%, Butter +87.3%, and Milk Powders +162%.

Organic Milk Market … Looking More Like Conventional (p. 11):
Mark Kastel from the Cornucopia Institute (an organic food industry watch-dog) details the funny business going on in the production and marketing of organic milk in the U.S. He draws a parallel to the “controlled by a few parties” situation that prevails in conventional milk sales.

Foremost Farms’ CEO Straddling Political Barbed Wire Fence (p. 12):
Ouch! A recent article in the Watertown, New York Daily Times revealed that Dave Fuhrmann, CEO of Foremost Farms co-op (Baraboo, WI) donated $500 to the political action committee of the International Dairy Foods Assn. – the dairy processor lobby that’s vigorously fighting the “Foundations for the Future” dairy policy proposals being championed by National Milk Producers Federation. Funny thing: Fuhrmann is in hot water with fellow co-op leaders in the Midwest for supporting FFTF.

Dennis Wolff: Two Classes “Would Not Increase Milk Prices” (p. 12):
Dairy lobbyist Dennis Wolff has been taking money from both dairy farmers and dairy processors to represent their seemingly contrary interests in the 2012 farm bill. In March 2011, The Milkweed revealed that fact. Now comes information from a meeting of the USDA Dairy Industry Advisory Committee, at which Wolff testified, in which he claimed a “two-class” pricing system (supported by dairy processors) would not raise farm milk prices! Will Wolff’s farmer-sponsors pay for that foolishness, when he’s further exposed?

If NMPF Dairy Plan Were in Effect for March 2011: “Milk Tax” Would Have Swiped 4% of Producers’ Income (p. 13):
We pick up information provided by Sherry Bunting in the April 15, 2011 issue of Farmshine (a dairy weekly published in Lancaster County, PA). Ms. Bunting shows how, if NMPF’s “Foundations for the Future” dairy policy foolishness were the law, dairy farmers who produced no more milk in March 2011 than their Dec. 10-Feb. 11 “base” would have USDA deduct four percent of their milk income. Farmers don’t want more “Milk Taxes,” we believe.

Butter, Milk Powder Supplies Very Tight, Cheddar? (p. 14):
Pete Hardin reviews the dairy commodity production/inventory/price scene. He contends that butter and nonfat dry milk are very tight – exports are moving more product out of the country than for 2010’s first quarter. Cheese is a tough call right now.

1-page, Understandable U.S. Dairy Policy (p. 15):
Editor Pete Hardin cites exasperation with the variety of dairy policy proposals put out for the 2012 farm bill process and explains what dairy farmers deserve is understandable package of dairy policies that would all fit on one page. He cites his own suggestions and offers subscribers to share their wisdom.

Analyst Reviews Grain Situation at ADPI Convention (p. 16):
Steven Nicholson of International Food Products (St. Louis, MO) offered a wide-ranging vantage point on the global and national grain situations at the recent American Dairy Products Institute meeting. Nicholson concluded that optimum corn harvest in North America is vital to even maintain current low corn carryover inventories for the 2011/2011 grain marketing season. Subsequent weather events make Nicholson’s hopes for optimum corn harvest a very low-odds shot.

April 2011 Issue No. 381

Inside this month’s issue...

Cheddar Cash Markets Crash at CME … WHY??? (p. 1):
Since the second week of March, we’ve seen block Cheddar prices crash by more than $.40 per pound at the Chicago Mercantile Exchange. Dairy’s yo-yo cash Cheddar and farm milk prices swings continue. We are not watching a “natural market” at work.

Latest USDA Grain Stocks Report: Serious Corn Shortage Looming (p. 2):
A late March USDA grain use report found that the first quarter of 2011 was the biggest first quarter ever for U.S. corn use (domestic and abroad). Earlier in 2011, USDA projected only a three-week global carry-over, at the end of the grain marketing year (August 31, 2011). Looks like that wee bit of carry-over will be even smaller.

March 2011 Class III Price $19.40 – March Class IV $19.41 (p. 2):
USDA’s announced Class III (cheese) milk and Class IV (butter-powder) milk prices for March 2011 were the highest in a long, long time …but will not hold, as dairy commodities have plunged.

NMPF’s “Foundation for the Future” Is Incomprehensible (p. 3):
The lack of details makes the proposed federal dairy policy changes being promoted by National Milk Producers Federation very difficult to analyze. NMPF wants to avoid discussion of specific prices per cwt. Rather, NMPF is promoting a “grain-price vs. milk-price” margin insurance. Class III & Class IV milk would be deregulated. Multiple component pricing would be lost. Regional fluid milk premiums are believed to be lost. And on and on and on.

U.S. Dairy Products Sales to Japan Disrupted (p. 3):
Japan’s tragedies leave a big question: how will the Japanese people be fed. Japan has been a major importer of U.S. dairy products: 32.8 million pounds of cheese and 96 million pounds of whey in 2010. Some ocean-carriers are leery of going to Japan, for fear of crews’ safety. Purchase of draft horses in the U.S. by Japanese buyers has increased dramatically, as the Japanese may replace sushi with U.S. “horsey.”

Farmers in Canada & New Zealand Enjoying $30+/cwt. Milk Prices (p. 4):
While U.S. dairy farmers are led to think that $15-16 per hundredweight for their milk ought to be viewed as a good price, writer John Bunting details how Canadian dairy farmers are receiving $30+ per cwt. for their milk. Same price, basically, down in New Zealand. Where’s ours????

Dean Foods/DOJ Forge “Consent Decree” in Wisconsin Fluid Milk Case (p. 5):
Dean Foods and the U.S. Department of Justice are proposing a “Consent Decree” to settle the legal matter involving DOJ’s opposition to Dean Foods’ acquisition of the Foremost Farms’ fluid milk plants in eastern Wisconsin in 2009. The agreement proposes that Dean Foods sell the Waukesha, WI fluid milk business. Problem is, as we see it, what sane entity would buy a business from a seller that would remain in place as THE major competitor?

D-U-M-B: USDA Finalizes Import Promotion Fee (p. 5):
USDA announced final details of the dairy import promotion assessment. Imports will be hit with the (refundable) assessment of 7.5 cents per cwt., starting on August 1, 2011.

Management Tips to Help Control Dairy Producers’ Grain Costs (p. 6):
Writer Paris Reidhead discusses some money-saving tips to help control dairy producers’ grain costs. Example: Feed ear corn, instead of shell corn. By weight, the cob has a dry-matter equivalent of 20% of the kernels. Paris concludes that at current grain prices, farmers harvesting shell corn to feed to their dairy animals are leaving $237 PER ACRE in ruminant nutrition value when the cobs are left to rot in the field.

Success Formula for Perrys: Moldboard Plowing, Feeding Ear Corn, No GMOs (p. 6):
Paris Reidhead focuses on western New York dairy farmers Leon and Jim Perry and their set of corn management strategies that work for them. Old-fashion moldboard plowing and avoidance of generically-modified seed corn leaves the Perry brothers with virtually zero mycotoxins. And feeding ear corn is a big energy-booster in the rations.

Ho-Hum. USDA Dairy Advisory Committee Issues Final Report (p. 7):
After about a year of deliberations, USDA’s Dairy Industry Advisory Committee (DIAC) came out with 23 recommendations for public policy and/or study. Cornell professor Andy Novakovic carefully guided the committee to reach the intended goal of systemic mediocrity.

Feature Story: Adulterated & Misbranded: Numerous “Yogurt” Product ts Sold in U.S. Contain Illegal Ingredients
Shockingly, numerous yogurt products facing this nation’s consumers in the dairy case contain illegal ingredients, according to federal Food and Drug Administration (FDA) standards of identity for yogurt. And some of the world’s biggest yogurt firms – global giants Dannon and Yoplait – are manufacturing and marketing what appears to be adulterated and misbranded yogurt products. Read all about it here in this month’s feature story.

Can Northeast Milk Supplies Meet Expanded Plants’ Needs? (p. 11):
Manufacturing plant expansions, in tandem with sky-high grain prices, leave many in the Northeast wondering where the milk will come from to fill dairy plants’ needs.

Organic Dean Dairy Product: Illegal Ingredient (p. 11):
Will Fantle of the Cornucopia Institute details Dean Foods’ use of DHA oil in certain Horizon organic dairy products is illegal, based upon a finding by USDA’s National Organic Standards Board in 2010.

Formal Complaint Filed with USDA Inspector General (p. 12):
The Milkweed prints in full its formal complaint filed with USDA’s Office of the Inspector General regarding excess salaries at Dairy Management, Inc. (DMI – the milk promotion mafia). This complaint was based upon a story that appeared in the March 2011 issue of this publication, which, among other things, noted that the top seven “carry-over executives” at DMI (i.e., senior executives who were listed by DMI on IRS Form 990 for both 2008 and 2009) compensation climbed more than $150,000 in 2009 (vs. 2008). One top-level DMI executive, Julian Toney, received over half a million dollars in deferred compensation in 2009!

Are Dairy Promotion Salaries Excessive? (p. 12):
Ohio dairy farmer John Rahm contrasts DMI senior managers’ salaries and compensation with other promotion groups for beef and pork producers.

Dairy Cattle Replacement Prices (p. 13):
Higher milk checks in March brought out the buyers. Springer prices were up $200-300 per head. Short-bred heifers and breeding age heifers were also stronger. Cull prices continued to strengthen.

Letter to USDA’s Vilsack Revealed Roundup Ready® Dangers (p. 13):
In early January, retired Purdue University professor Don Huber detailed numerous scientific concerns about use of Roundup Ready® crops. (Crops that have been genetically-engineered.) Huber warned of novel life forms created in the soil, and already transferred to the food creatures’ guts.

Roundup Ready® Alfalfa: LOL Responds … Sort of (p. 14):
Paris Reidhead posed some questions about Roundup Ready® alfalfa to Land O’Lakes – co-owner and marketer of genetically-modified alfalfa. His questions focused on safety for horses, cows and humans. No safety tests have been conducted on horses (major consumers of alfalfa). FDA has approved Roundup Ready® alfalfa as a human food, although it is doubted genetically modified seeds would be used for “sprouts” for humans.

Dairy Product I-N-T-E-G-R-I-T-Y (p. 15):
Pete Hardin details how the integrity of dairy products – particularly their legal ingredients – is a slippery slope down which some in dairy are sliding. Rising food prices and costs for human-quality proteins may well create a future where more “glop” disguised as dairy products will be put in front of consumers who don’t know any better.

Additional Cheddar Testing “Catches No Fish” (p. 15):
Our second round of mild Cheddar sample testing (five samples, six brands) came up with no significant average differences for any brands. Doing investigative research is like going fishing: sometimes you come up empty. We will test aged Cheddar samples later this year.

The Problem with Roundup Ready® Food (p. 16):
A blast from the present! Joel McNair (editor/publisher of Graze) authors a wide-ranging viewpoint about the dangers posed by genetically-modified foods to soil, food animal, and human health/safety. This article originally appeared in the March 2011 issue of Graze – an excellent publication. (Editor’s note: Joel McNair is my brother-in-law, but he was ornery before I ever met him.)

March 2011 Issue No. 380

Inside this month’s issue...

Dairy Caught in Swirling Industry & Global Events (p. 1):
The global food shortage is drawing down U.S. dairy product reserves. Butter and nonfat dry milk powder inventories are very low. Behind the scenes: major export buyers are lining up both current inventories and future product output. China?

Current Dairy Commodity Prices Pinpoint $20 Milk, BUT … (p. 1):
With block Cheddar and Grade AA butter cash prices now above $2.00 per pound, and nonfat dry milk in the $1.80 per pound neighborhood, those commodity prices point easily to $20 per cwt. milk. But the question is WHEN will farmers see $20 milk checks, given the way milk powder prices lag used to set USDA and California milk prices lag far behind cash markets. Then there’s depooling, when threatens to rip-off dairy farmers in several federal milk orders.

U.S. Butter Inventories Scarce; Quarterly Growth Lagging (p. 2):
In early March, the Chicago Mercantile Exchange counted 22 million pounds of butter in 74 surveyed warehouses -- a tiny amount. Inventory growth is slow during a period when marketers are usually storing large amounts of butter.

Alfalfa in Northern Central Valley Edging Close to $300/Ton (p. 2):
Dairy producers in the northern Central Valley of California have watched top-quality alfalfa prices close in on the $300 per ton mark. Quality forage is tight, as the new harvest season commences.

Feb 2011 Class III Price ($17.00 – Class IV $18.40 (p. 2):
The Feb. 2011 cheese milk price in federal milk orders jumped $3.52 per cwt.. And Class IV milk (butter-powder) rose by $1.98. More increases ahead.

“Details” Finally Available for NMPF’s Federal Milk Order Plans (p. 3):
Just how National Milk Producers Federation would alter federal milk orders has been a closely held secret. But following the March 7-8 approval of NMPF’s legislative package of dairy policy changes, the “details” are out. Confusing, dangerous, etc.

Dean Foods’ CEO Greg Engle$ Adds COO Responsibilities (p. 3):
Losses in the fourth quarter of last year have caused a management change at Dean Foods. Is Gregg Engle$ up to the task?

Cheddar Test Results Done: Another Trip to Laboratory Needed (p. 4):
Test results on 20 samples of Cheddar have been analyzed by The Milkweed. Five “suspicious” samples are prompting another round of tests, using five samples from each of the suspicious Cheddar brands. We’re testing for impaired chloride:sodium ratios – a sign that something untoward is going on in the cheese vat.

OMB Signs Off on Dairy Import Assessment Language (p. 6):
Look for USDA to announce implementation of the controversial dairy import assessment soon. The Office of Management and Budget okayed the final language. Dairy imports will be assessed at the rate of 7.5 cents per 100 lbs. of milk (equivalent). But importers may ask for a refund at the end of the year.

Expect Big Battle Over USDA Approval for Genetically-Engineered Alfalfa (p. 5):
Watch the fur start to fly over USDA’s approval of genetically-engineered alfalfa. No equine safety studies have been conducted. It’s likely no human safety studies have been conducted. Why human safety studies for a forage seed? You’ve heard of alfalfa sprouts, eh?

Canadian Cheese Standards Upheld (p. 5):
A Canadian appeals court has ruled against appeals by Kraft Canada and Saputo Cheese to dumb down standards for ingredients in natural cheeses. Bravo!

Feature story #1: DMI “Fat Cats” Compensation Jumped $131,308 in 2009 (p. 6):
This is one of our “Stories of the Month” – available in its entirety here.

Feature story #2: NMPF CEO Kozak Enjoyed $722,593 Salary in 2009 (7):
This story is also available as a “story of the month.” Read all about it here.

Why Are USDA & California Nonfat Dry Milk Powder Prices Lagging 45-50 Cents Behind CME? (p. 8-9):
Writer John Bunting takes a long look at how nonfat dry milk is valued. His conclusion: it’s a scam that robs dairy farmers of honest value that should be in their milk checks.

Lower SCC Milk Levels? Look at the B-I-G Mastitis Picture (p. 10):
Bill Gehm, of the CoPulsation™ firm details how a major portion of mastitis problems may relate to poor performing equipment. With proposals ot tighten SCC regulations, lowering incidents of mastitis is economically very important.

Global Protein Shortages? Animal Products to the Rescue. (11):
Writer Paris Reidhead informs us about the importance of protein in the human diet and shows how the world wants more quality dairy proteins.

February “Big Freeze” Disrupts New Mexico Dairy Plants (p. 11):
More than 100 trailers of farm mill k had to be dumped in New Mexico recently. Why? Because a mid-February blast of frigid, Arctic air froze pipes in big cheese plants’ raw milk intakes.

Milk in, Milk Out: Southeast Producers Pay Coming & Going (p. 12):
Dairy farmers in the Southeast are focusing on THE question: Why can’t their regional dairy cooperatives pay an honest blend price?

DFA Members Griping About Quality and Volume Premiums (p. 12):
DFA continues to find new and unique ways to take money from members’ milk checks. Hauling and milk quality are but two of those ways.

Dairy Livestock Strategies in these Volatile Times (p.13):
Dairy and beef are changing fast, due to high grain costs, high cull prices, and high milk and beef prices. We offer some strategies.

Diesel Fuel Headed to $5/Gal., Who’ll Pay Higher Hauling Costs? (p. 14):
We pinpoint rising energy costs and hauling costs as a future source of friction between dairy co-ops and their members. Why can’t the costs come out of the buyer?

Why Not? (p. 15):
Editor Pete Hardin explains two of the projects that need doing the most for dairy integrity: a)selling boxes of Wisconsin cheese (approx 10 pounds apiece) for $55 - $60 per pound. This endeavor would boost incomes for dairy producers, cheese plants, and working folks.

Guest Opinion: Why I Support NMPF’s Foundations for the Future (p. 16):
California dairy producer Geoffrey Vanden Heuvel details his reasons for supporting The “Foundation for the Future” proposal from NMPF. The space was granted out of respect for Mr. Vanden Heuvel, not National Milk.

February 2011 Issue No. 379

Inside this month’s issue...

Feature Story: Dairy “Surplus” Myth Evaporates: Few Commodities Available (p. 1):
Read our “Story of the Month” here.

U.S. Tangled in Global Food Crisis (p. 1):
Tight global grain supplies are causing a rush for U.S. dairy commodities.

Recent Events Blow Dairy Commodity Prices to the Moon (p. 2):
Spectacular price increases have occurred in the past month for all three major U.S. dairy commodities: Cheddar, butter and nonfat dry milk. Export requests cannot be met. Raw milk production on both coasts is declining.

Dean Foods Reportedly Headed for Disassembly (p. 3):
Sell-offs of Dean Foods’ yogurt businesses are just the beginning. The outlook for Dean Foods is to be sold off in parts. But what firm would want the fluid milk “part” of the business?

Checkbook Volume-Building “Payola” in SE: Dean Foods Buys Food Lion Private Label Fluid Milk Business (p. 3):
One more time, Dean Foods has pulled out the checkbook and written a check for untold millions of dollars to a supermarket chain. That payment that sets up Dean Foods as a virtual exclusive supplier of private label packaged milk. Funny thing: Food Lion is in court, suing Dean Foods (and DFA) on antitrust charges.

Sodium Gluconate Seller Objects to The Milkweed’s Reporting (p. 3):
A top employee of a company selling Sodium Gluconate has written an e-mail, threatening that if The Milkweed does not stop reporting that the company recommends use of Sodium Gluconate at levels up to 10% of weight of curd in the cheese vat, he’ll take legal action! We quote from that firm’s patent for Sodium Gluconate use cheese-making: “The amount of sodium gluconate is within the range of greater than zero to 10% of the weight of the curd, to result in a cheese having 0.26 to 2.8% gluconate in the cheese.

“REAL” California Milk Volume in Significant Decline (p. 4):
Weather, mud, high grain prices, hay prices, high beef prices and financial failures are all pulling down California’s milk flow in early 2011. Plant intakes are down five percent … or more.

Wal-Mart “Withdraws” Millions of Lbs. of Butter (p. 4):
A problem with the ink from the paper wrappers bleeding into the quarter-pound sticks of butter meant that Wal-Mart recently conducted a massive “withdrawal” of butter from its operations.

Fat Dairy Cull Prices in Mid-High “70s” (¢/lb.) Live Weight: (p. 5):
Prices for top-quality dairy cull cows have moved quickly into the “70s” – cents per pound that is. The high end seems to be peaking about $.78 per pound, at press time. More gains in cull prices to come.

What Happened to Organic Dairyman John Boere’s Cull Cows??? (p. 6):
Why were Modesto, California dairy producer John Boere’s ten organic cull cows and a bull, destined for slaughter, alive several days after their scheduled demise? Why were they kept at an off-site feed lot near Modesto and fed moldy, soaked hay? If this is how the organic beef processor that bought Boere’s animals operates, then may some enforcement action is due.

DFA Objects to Dean Foods’ Proposed Northeast Settlement (p. 7):
Co-defendant Dairy Farmers of America has deluged the federal court in Vermont with more than two dozen objections to the proposed $30 million settlement involving plaintiffs’ attorneys and Dean Foods. From a strategic standpoint, DFA appears to want to throw confusion into the class of potential plaintiffs.

Big Northeast Co-op’s Charge Low Class I Premiums: Fluid Processors’ Profits Raised (p. 8-9):
Writer John Bunting digs deep into available data to show how since 2006, the Northeast dairy cooperatives’ superpool (GNEMMA) has first lowered, and then flat-lined the published Class I premium assessed to fluid milk processors in the region. In other regions of the country, the Class I surcharges have virtually doubled since 2005. What's up? Once NJ’s Farmland Dairies was out of the picture, DFA dropped Class I premiums to keep any competing milk sellers away from the region’s big fluid milk processors’ doors.

Moisture Extremes Dampen Global Wheat Prospects (p. 10-11):
Writer Paris Reidhead takes a long, far-ranging look at global grain supplies and needs. Conclusion: the world will be severely challenged to meet its grain needs, unless near-perfect weather is at hand for major grain-growing regions of the country. China’s grain needs are particularly desperate, as major Drought spreads across that highly-populous nation.

FDA Enforcement on the Rise: Crackdown on Drug Residues in Milk; New Food Safety Act Provisions on Dairy (p. 12):
Mary Zanoni reviews the matter of FDA cracking down on dairy-beef drug residue violations back to the milk tank. For any dairy farmer with multiple drug residue problems in cull cows, FDA will do milk tank testing. Marketers are recommending that no milk be marketed from farms that are subject to such testing.

Giant Howrey Antitrust Law Firm Headed to Splittsville (p. 12):
Howrey LLP – once the nation’s largest antitrust law firm – is breaking up due to financial woes. Howrey is the lead law firm for plaintiffs in the Southeast dairy antitrust cases now headed for trial in late June 2011.

Dairy Cattle Replacement Prices … (p. 12):
Pulled up by cull prices and prospects for improved milk prices, prices for springing heifers have started up – up about $100-150 during the past month. Prices for open (unbred) dairy animals are declining.

Dairy Beef Slaughter Numbers Higher; Replacement Heifers Also Higher (p. 13):
USDA data shows an increase in dairy cow slaughter numbers (above same-week, prior-year) that started about early October 2010 and continues to the present. USDA also reports that replacement heifers numbers are also up.

Strategies for the Unprecedented Times Ahead (p. 14):
Pete Hardin details a few strategies for dairy farmers in these times of fast-rising prices and costs. Example: DO NOT sign any fixed-price milk contracts.

“Free-Trade” & Biotech No Solutions to Hunger (p. 15):
Pete Hardin blows steam on the emerging solutions for global hunger from the Obama administration: “Free-Trade” and biotechnology. Neither practice is valid, Hardin argues.

Organic Farmers Howl Following USDA Approval of GE Alfalfa (p. 16):
Writing for The Cornucopia Institute, Will Fantle details the background political pressures and shattered trusts in the organic foods community, in the aftermath of USDA Secretary Tom Vilsack’s approval of planting genetically-engineered alfalfa this spring. GE alfalfa, unlike any prior genetically-engineered corps, is a perennial, not an annual. Spread of GE alfalfa pollen, by wind, birds or bees, threatens to contaminate the entire nation’s alfalfa crop, in time, and wipe out the integrity of alfalfa raised and fed by organic livestock producers. Mr. Fantle’s article is required reading for anyone who supports organic agriculture and is skeptical of government’s ability to protect citizens from contamination by genetically engineered crops.

January 2011 Issue No. 378

Inside this month’s issue...
Feature Story: Butter $ky-High; Powder Prices Rise; Cheddar Starts to Rise (p. 1):
Read our “story of the month” here.

Dec. 2010 Class III Price (p.1)

Dairy Cull Prices Rising, Some Cows Worth More Dead than Alive (p. 2):
The combined factors of little discretionary cash flow, high cull prices and high grain prices, leave many U.S. dairy cows worth more as hamburger than what they’d bring as milk cows right now.

“Killer Whale” vs. DFA Legal Battle Settled Pre-Trial (p. 2):
Shucks. The legal fireworks scheduled for Jan. 3 in Minneapolis were postponed, due to settlement. This trial featured a dairy commodity trader seeking about $20 million in damages from DFA’s admitted manipulations of Cheddar markets at the CME in 2004.

Dean Foods’ Proposed Northeast Antitrust Settlement A “Mixed-Bag” – 50% Peanuts and 50% B-------t (p. 3):
We scorn the completely inadequate $30 million proposed settlement that’s proposed to settle Dean Foods’ obligations in the Northeast private antitrust case. The Milkweed estimates that $30 million, by the time lawyers’ fees are deducted, will work out to less than 50 cents per dairy farmer per day in the region.

Schreiber to Buy Dean Foods’ WI Yogurt Plant (p. 4):
Recent announcement of plans by Dean Foods to sell three yogurt plants to Schreiber Foods creates some serious questions about market concentration in the Midwest yogurt business.

Dairy’s REAL Seal™ Adorns This Imported Cheese (p. 4):
It’s perfectly fine for imported cheeses to bear dairy’s “REAL Seal™” – once the sign of dairy products made in the “good old U.S. of A.” Changes in rules governing the U.S. dairy farmers’ promotion check-off have made it illegal for farmers to advertise U.S. dairy products!

“Usual Suspects” Low-Ball Year-End Nonfat Milk Price (p. 5):
At the end of 2010, California marketers dumped almost 30 million pounds of nonfat dry milk onto the market at prices far below prior weeks’ levels. We puzzle whether these apparent “old” inventories were legally reported to USDA/NASS weekly dairy data system.

NMPF: Spring 2011 Target for Passing Dangerous Dairy Proposals (p. 5):
NMPF ceo Jerry Kozak (the $647,000 man … at least according to salary data for 2008 filed with the IRS) warns that the dairy co-op wants to push through Congress its package of massive dairy policy changes by early or mid-Spring – ahead of the 2012 farm bill deliberations. NMPF’s policy changes would be very bad for dairy, The Milkweed warns.

U.S. Cheese/Butter Exports Grow When CME Prices Low (p. 6):
Writer John Bunting researches and analyzes the correlation between low Cheddar and butter commodity prices at the Chicago Mercantile Exchange with peaks in U.S. exports of those items.

June-October 2010 Fluid Milk Sales in the Tank (-2.54%) (p. 7):
Something is seriously wrong with fluid milk sales. Nationally, fluid milk sales declined by 2.54% during June-October 2010, compared to 2009’s figures.

January 3-7: Butter Prices Start New Year with a BANG (p. 7):
At the CME, during the first week of January 2011, Grade AA butter prices zoomed up by 43 cents per pound. Nationally and globally, butter supplies are very tight.

BAD Idea: Gov’t Mandate for Higher U.S. Fluid Milk Solids (p. 8-9):
Bad ideas may resurface. That’s the case with the proposal to adopt California-style milk solids standards for the U.S. Who would pay for that luxury? Consumers? Processors? Dairy Farmers?

Corn-based Ethanol in Gasoline: Still Poor Public Policy (p. 10-11):
Writer Paris Reidhead revisits the issue of corn-derived ethanol in our gasolines … and again determines, for many reasons, this product is a detriment to taxpayers and topsoils.

Deconstructing Dean Foods: Spinning-off Organic/Namebrand Division (p. 12):
Mark Kastel of the Cornucopia Institute analyzes how the Horizon/WhiteWave segment of Dean Foods could be a better purchase by another firm: eschew supplies of organic milk from factory farms, starting with those owned by the company itself!

The U.S. Dollar & World Cheddar Prices: Unusually Close (p. 13):
John Bunting researches the parallel fortunes of the U.S. dollar and world Cheddar prices … curious!

New Zealand Milk Flow Falling Way Off (p. 14):
Serious drought is curtailing milk flow in New Zealand. How will NZ marketers compensate for earlier optimism that projected double-digit milk gains just a few months ago?

Who will provide this nation’s food/protein??? (p. 15):
Pete Hardin puzzles about how a nation can pay so little heed to the fortunes of its food producers, when, in fact, laws on the books direct USDA officials powers to raise dairy farmers’ milk prices under such circumstances.

Legal or Not? The Milkweed to Test Retail Cheese Samples (p. 15):
We’re assembling a couple dozen samples of retail cheese for submission to a testing laboratory. We’re looking for samples of products with contents indicating that they were made using improper procedures. At issue: Sodium Gluconate – a chemical not approved for use in manufacture of cheeses with standard identities (Cheddar, Mozzarella, etc.).

What Costs for Gross Dairy Margin Insurance? Who’ll Pay? (p. 16):
NMPF’s notion of shifting federal dairy programs to an insurance-based, “Gross Dairy Margin Insurance” (over grain costs) is not appropriate. Why should taxpayers for such a mess?

Excellent Choices for Ag Chiefs in NY, WI & MN (p. 16):
Three sterling citizens have been newly designated as state agriculture commissioners: Darrel Aubertine in New York, Ben Brancel in Wisconsin, and David Frederickson in Minnesota.

December 2010 Issue No. 377

Inside this month’s issue...

Cheddar Price Declines to Squeeze Milk Prices (p. 1):
Dairy farmers are looking at $3.50 to $4.00 less for their milk, come January 2011, compared to their peak price received this past fall. Another milk price downturn comes at a tough time for U.S. dairy farmers … who only recently climbed out of the red ink.

Nov. 2010 Class III Price $15.44 – Nov. Class IV $16.68 (p. 1):
Manufacturing milk prices in USDA’s federal milk orders are heading down.

DFA vs. “Killer Whale” Trial Starts January 3, 2011 (p. 2):
The first private lawsuit against Dairy Farmers of America’s spring/summer 2004 Cheddar price manipulations at the Chicago Mercantile Exchange is set to start in Minneapolis on January 3, 2011. Commodities speculator Mark Anderson seeks $20 million to cover his losses, legal fees and interest costs.

Foundation for the Future: Bad Vision (p. 2):
John Bunting explains the dairy policy alternative being pushed by National Milk Producers Federation.

Dean Foods’ Stock Price Edges Close to $7/Share (p. 3):
Wall Street is turning decidedly negative on Dean Foods. The firm’s stock closed as low as $7.13/share in early December, before bouncing back about $1.50 shares on the “strength” of the company’s issuing $400 million in new “senior notes” at a 9.75% interest rate!!! In other short articles about Dean Foods on this page, we report that Dean Foods was named the “Worst Performer” on the Standard & Poor’s Index by Bloomberg News. Also, Dean Foods has offered to settle for $30 million its portion of the Northeast class action lawsuit.

Serious Drought Lowering NZ Milk Output Forecast (p. 3):
Another serious drought is hitting major parts of New Zealand’s dairy regions. Earlier optimism about double-digit milk production gains for the 2010-11 pasture season over the past season was overstated. New Zealand’s milk output will be very close to last years. Watch this one! Global dairy prices will soar if New Zealand comes up short.

Small Scale Dairy Processing: Opportunities & Risks (p. 4):
Pete Hardin offers general insights about a growing factor in dairy marketing: small-scale dairy processing (often farmstead plants). Hardin points to yogurt and cheese curds as two fast-growing, popular products for entrepreneurs to consider.

Birth Imminent for Dairy Import Assessment (“Kozak’s Baby”) Imports Pay Half (vs. U.S. Farmer); Import Fee 100% Refundable (p. 5):
Very soon, USDA will start collections of a dairy promotion tax on imported dairy products entering this country. This fee paid by importers is only half the amount charged to U.S. dairy farmers. Worse yet: importers may recover their deducts at the end of the year. For this “deal,” National Milk Producers Federation’s CEO Jerry Kozak helped make it illegal for the National Dairy Board to promote “U.S.-produced” dairy products.

USDA Import Rule Suspension is Big Victory for U.S. Dairy Farmers (p. 5):
In December, USDA announced new rules for administering Section 6.25(b) – a statute that requires smaller importers that do not utilize annual dairy import quotas, not to have to forfeit those unused portions to bigger companies.

Scrutinizing the November 2010 CME Cheddar Price Crash (p. 7):
Writer John Bunting takes a close look at recent weeks’ events in cash markets for both Cheddar and Grade A butter.

WI Ag Dep’t Sends Warning Letter Re: Illegal “Gouda” (p. 7):
Following up last month’s revelation in The Milkweed, Wisconsin’s Department of Agriculture, Trade and Consumer Protection investigated the matter of illegally labeled “Gouda” cheese and sent warning letter to “Steve’s Wholesale, LLC” – a Sun Prairie firm responsible for the illegally labeled “Gouda.”

Feature Story #1: How Much of That “Stuff” is Really Cheddar? Dairy’s Biggest Scandal: Consumer Product Integrity
The single most important issue facing U.S. dairy farmers is the diminished integrity of numerous dairy products sold to consumers our nation. Most of our dairy products are honest, quality foods. BUT … The practices of certain dairy manufacturers and food processors focus on a “cheap, cheaper, cheapest” approach to end products. The public – dairy farmers, consumers and honest processors – are being defrauded. Read all about it here.

Kraft Foods Denigrated Processed Cheese Quality (p. 10):
A bit of history … how pressures from their corporate parents – Philip Morris’ “tobacco boys” for undue profits from Kraft Foods’ cheese division pushed Kraft Cheese towards cheaper ingredients.

Anaerobic Digesters: California Nixes Noxious Noxes (p. 12):
Environmental regulators in California are decommissioning some methane digesters on dairy farmers. Why? Because combustion of methane in those digesters creates increased amounts of nitrogen/oxygen gases – some of which environmental problems.

Beware of “Gross Margin Insurance” as Dairy Policy (p. 13):
Pete Hardin warns that taxpayers won’t be happy about picking up the tab for mandatory “Gross Margin Insurance.” And dairy farmers won’t be happy about being forced into the program. Nor will dairy farmers like the premiums they’ll have to pay for additional insurance.

Will NMPF’s Mandatory Milk Margin Insurance Plan Violate “Plain Faith” Farmers’ 1st Amendment Rights (p. 12):
Compelling all U.S. dairy farmers to participate in USDA’s mandatory “gross margin insurance” program is not going to sit well, we believe, with some members of so-called “Plain” faiths. The 1st Amendment to the U.S. Constitution specifies that Congress shall make no law that establishes a religion, nor may Congress prohibit citizens’ free exercise of their religion.

Reasons Why U.S. Dairy Export’ Prices Lag Behind World Prices (p. 13):
To answer the question posed in the November 2010 issue, Pete Hardin details numerous reasons why U.S. dairy commodity exports’ prices don’t hold up to global price levels. Why? Our nation’s dairy farmers use recombinant bovine growth hormone; our 80% milkfat, unsalted butter are not globally desirable; the global benchmark for dairy protein powders is Whole Milk Powder – of which we produce relatively little; oftentimes, our packaging is substandard, and too many U.S. exporters lack their own sales forces.

CME Cheddar Prices Up/Down; Butter Way Down (p. 14):
Block Cheddar at CME has dropped nearly 40 cents per pound since the mid-October peak price, and Grade AA butter is down about 60 cents per pound from its price peak. Cheddar inventories are ample. Butter inventories are scarce. Business as usual at CME.

Economic famine for dairy producers unless … (p. 15):
Pete Hardin details the most critical changes needed to stabilize and improve U.S. dairy farmers’ incomes.

A. J. Bos’ Lawyers Deny U.S. EPA Requests (p. 15):
Lawyers for California dairy investor A. J. Bos have denied a request by the U.S. EPA to conduct a large number of new tests for surface and ground water at the site of Bos’ proposed mega-dairy near Nora, Illinois. We report State EPA test results from water samples polluted by the discharge that occurred from Bos property in early October.

Feature Story #2 - New Producer Group Now Claims Half of Dues Won’t Fund Magazine (p. 16):
Some parties became very angry about a report in last month’s issue of The Milkweed that concerned how half of the $80 dues sought by a start-up dairy farmers’ group were supposed to be spent for a subscription to AgribusinessDairyman edited by Tom Van Nordwick, one of the organizers of the fledgling National Dairy Producers Organization. The Milkweed’s “clarification” of the matter quotes two NDPO directors (Rozwadowski and Tewksbury) who stated in mid-October that half the dues would go to the magazine subscription. Read the story here.

Want Faster Delivery of The Milkweed? Upgrade to First Class “Fast Pak” (p. 16):
Delays in receiving this publication – particularly on the East and West Coasts – means we’re pushing current subscribers to upgrade their second class subscriptions to speedier First Class mailings. We use a handy chart to help interested persons calculate the additional costs ($4/month) of this upgrade to speedier service.

November 2010 Issue No. 376

Inside this month’s issue...

Grain Prices Spike; CME Cheddar Prices Collapse (p. 1):
Two commodity price trends are going in opposite directions: grain prices and Cheddar. At the Chicago Mercantile Exchange, block Cheddar prices have lost about $.37/lb. in the month. Dairy farmers are once again headed for cash flow Hades unless Cheddar prices bounce back.

Why Are U.S. Dairy Commodity Prices So Low? (p. 1):
As of late October/early November, U.S. dairy commodity prices were far below global prices. Cheddar was $.46/lb. below Oceania prices, nonfat dry milk/skim milk powder was $.1875 per pound below Oceania prices, and U.S. butter was $.32/lb. below Western Europe’s butter prices. We’ll explore this issue in greater detail next month.

October 2010 Class III Price $6.94 – Oct. Class IV $17.15 (p. 1):
Take a good look.

USDA Secretary Has Authority to Raise Milk Prices Due to High Feed Prices, to Assure Adequate Milk Supply (p. 2):
It’s the law. USDA Secretary Vilsack has the power to review milk prices and raise them, on a regional basis, when milk prices are inadequate (relative to grain prices) to sustain an adequate milk supply. Section 608 (c) 18 of USDA’s rules grants that power.

Poor Q3 Results Pull Down Dean Foods’ Stock (p. 2):
Net earnings of only $23 million by Dean Foods soured investors even further. Following the November 9 announcement of Dean Foods’ third-quarter earnings, Wall Street shaved off more than a quarter of Dean Foods’ stock value, which currently rests somewhere in the “7s” ($/share).

New Zealand Production Slightly Above Last Year (p. 2):
October saw New Zealand milk volumes about three percent above last year, BUT that figure is far from the double-digit gains that New Zealand dairy leaders were projecting for the 2010-11 pasture season.

Hillary Clinton Yaks Up Pacific Free Trade Deal in NZ (p. 3):
U.S. Secretary of State Hillary Clinton was gabbing up “Free Trade” on a recent stop in New Zealand. Dairy farmers should fear any Pacific nations’ “Free Trade” deal, because that would give New Zealand dairy products a free ride into the U.S.

Pizza Hut Lawsuit vs. DFA: Revealing Leprino Cheese Sales Data (p. 3):
The recent lawsuit by the parent firm of Pizza Hut, in tandem with franchise owners that control more than 3000 Pizza Hut restaurants in the U.S., details some information on cheese purchases by Pizza Huts. Interesting reading.

IRI Retail Sales Data: Cheese (-1.0%) & Fluid (-3.3%) (p. 3):
The latest retail dairy sales data is out, and ugly. For the three month period ending September 26, U.S. fluid milk sales data fell 3.3% below year-ago levels. Meanwhile, total cheese sales dropped one percent for that same time-frame.

Democrats’ Election Fiasco Upends DOJ’s Antitrust Strategy (p. 4):
Loss of control in the U.S. House of Representatives by the Democrats probably means that there will be no legislative attempts to rein in agricultural antitrust in the next two years. The whole intent of the series of five agricultural antitrust hearings around the country by U.S. Departments of Justice and Agriculture was to gain as basis for legislative proposals to take to Congress. Good luck on that in the 2011-12 legislative cycle.

Election Reshuffles Senate & House Ag Committees (p. 4):
The current chair persons of both the Senate and House agriculture committees are out. Senator Blanche Lincoln (D-Arkansas) lost her re-election bid. And Colin Peterson (D-Minnesota) is now in the minority party, so he’s out as chair for 2011-2012. Big question: will John Boehner’s regaining the House Speaker role mean that federal agricultural programs’ costs will REALLY be addressed?

Foremost Farms Offers to Redeem “Old” Equities at $.60 on the $1(p. 5):
Foremost Farms will redeem “pre-1995” equities held by present and former members at the rate of 60 cents on the dollar. Parties may apply for the pay-back by December 1. All equity pay-outs are at the discretion of the board of directors at the co-op.

FDA Food Import Detention List Unavailable (p. 5):
After several months, the apparent excuse that technology problems are causing the federal Food and Drug Administration to not post its monthly lists of detained food imports starts to look suspicious. What’s going on??? What is Sodium Gluconate? (p. 5): Writer John Bunting takes a close look at sodium gluconate – the chemical being illegally used in cheese vats as part of a 1-2 process to dramatically boost cheese yields.

Feature Story: “Product of Germany” – “Wisconsin Cheese” It’s NOT (p. 6):
No other product so defines a single state in the minds of American consumers as “cheese” conjures up Wisconsin. But … JS Brands’ German Smoked Gouda, English Stilton, French Port du Salud being marketed as real “Wisconsin Cheese” is anything but! Read our feature story here.

Why did Dairylea/DMS Keep Marketing Elmer Johnson’s Milk??? (p. 7):
The Elmer Johnson farm at 2722 State Route 205 near Mount Vision, New York was littered with dead milk cows, the milk quality was terrible, and the premises were a mess. Why did Dairylea Co-op keep marketing the milk from that farm? Because that’s where Dairylea president Clyde Rutherford’s cows were kept … all part of a scheme so that bewigged old phony (Rutherford) could call himself a “dairy farmer” and keep co-op presidency that was rewarding him to the tune of about $500,000 annually.

50% of New Dairy Producers Group’s Dues Go for Magazine Subscription (p. 7):
The fledgling “National Dairy Producers Organization” is putting half of its $80/year membership dues into a full-rate subscription for a dairy magazine: AgribusinessDairyman. That magazine is normally distributed free to dairy producers in several western states. Is this how the new dairy organization plans to throw away dairy producers’ dues??? UPDATE: Read our December 2010 update on this issue here.

Exports, Ethanol Subsidies & Weak U.S. Dollar: All Add Up to California Feed-Price Crunch (p. 8-9):
John Bunting takes a long, close look at the factors boosting U.S. corn prices, as well as California milk production. Conclusion: the recent spike of grain prices, in tandem with falling Cheddar prices, means that California dairy producers’ toughest times lie directly ahead.

Too Much Fat? New York Times Smacks USDA/DMI Cheese Promotions (p. 9):
On November 9, the New York Times carried a long review of Dairy Management Inc.’s cheese promotion activities, concluding (wrongly, we think) that growing cheese consumption is the prime cause of this nation’s obesity trends. If anything, the paper gave more credit to DMI’s cheese promotion activities than perhaps are merited. The article contrasted cheese promotion efforts, compared to USDA’s dietary messages aiming to reduce fat content.

Food Chains: Phosphorus May Be the Weakest Link (p. 10-11):
Paris Reidhead explores the complex worlds of plant and animal energy metabolism – and the roles of the element phosphorus therein. Summary: phosphorus (in its various forms) is critical to plant growth and animal well-being. Reidhead details how very few countries control the global phosphate supplies. The supplies are to a degree “cartelized.” And global sources are increasingly scarce.

10/27/10: EPA Final Compliance Demand to A. J. Bos (p. 11):
The federal Environmental Protection Agency has sent a letter to the lawyer for A. J. Bos, demanding compliance with a long list of requests for information detailed earlier this year (which Bos has refused to provide). EPA’s letter demands compliance, or the implicit threat of enforcement action will be taken. The pollution running off Bos’ farm near Nora, Illinois into a stream has brought down the wrath of federal and state agencies upon Bos’ unfinished mega-dairy.

Replacement Heifers: Big Challenge for “Organic” CAFO Dairies (p. 12):
Mark Kastel, co-director of The Cornucopia Institute, details how the purchase of heifers that have not been raised organically provides a big cost advantage to “organic” mega-dairies (compared to smaller, conventional organic dairies that raise all their heifers).

RBGH-Free Dairy Product Trends Continue (p. 13):
Rick North writes about the continued expansion of the number of dairy processors/marketers offering products they certify are free from milk of farmers where cows are injected with synthetic growth hormones.

Upstate-Niagara: rbGH/rbST “Free” on 4/1/11 (p. 13):
The biggest dairy cooperative in western New York State will not accept milk from herds where cows are injected with Posilac – the synthetic bovine growth hormone that stimulates milk production.

CME Cheddar Prices Crash; Grade AA Butter at $2.00/lb. (p. 14):
The pain will spread. As of press time, CME Cheddar block prices had crashed by $.37 per pound. That move pulls down inventory values, and farm milk prices will follow. Butter supplies remain tight.

“High” grain prices: new realities (p. 15):
Editor/publisher Pete Hardin details how dairy farmers’ well-being would be best served, quickly, by enforcing existing federal/state rules. Areas for heightened use of existing laws/regulations include: raising milk prices due to higher grain costs (USDA -- Section (c) 18], enforcement of cheese standards, and antitrust enforcement.

MI Group Details Vreba-Hoff Bankruptcies, Environmental Violations (p. 16):
A citizens’ group in Michigan that opposes environmental pollution by mega-dairies has issued a list of bankruptcies of the “Vreba-Hoff” dairies in Michigan, Ohio, and Indiana – a total of 24! Further, the group (Environmentally Concerned Citizens of South Central Michigan) lists more than 1000 instances of environmental violations in the Hudson, Michigan area alone. The “Vreba-Hoff” model generally involved transplanting dairy producers from The Netherlands and setting up mega-dairies (upwards of 700 cows on very few acres).

Michigan Milk Pays $1.13/Cwt. Bonus on September 2010 Milk (p. 16):
Michigan Milk Producers Assn. paid out $1.13 per cwt. on members’ September 2010 milk volume as a “bonus” for accumulating annual net revenues. The money was welcome. MMPA is well-structured, financially.

October 2010 Issue No. 375

Inside this month’s issue...

Grain Price Spike to Stress Nation’s Future Milk Supplies (p. 1):
Fast-rising prices for corn and soybeans mean big increases in costs for dairy farmers who buy large quantities of grain to feed their herds.

Pizza Hut & Big Franchisees Sue DFA: Cheese Costs Damages Alleged (p. 1):
Dairy Farmers of America has been sued by the owner of Pizza Hut and three giant franchisees for alleged damages caused by DFA’s manipulations of Cheddar at the Chicago Mercantile Exchange. Unfortunately (for DFA), the co-op has already settled with the government on the matter, paying a $12 million fine.

Sept. 2010 Class III Price $16.25 – Sept. Class IV $16.76 (p. 1):
Prices for manufacturing milk continue climbing, based on recent strength in prices for cheese and butter.

Chobani Yogurt’s Sales Growth Spurs Big Expansion (p. 2):
A New York-based yogurt company, Agro Farma, is making a $100 million expansion in its facilities to help handle big sales gains for the firm’s popular, Greek-style Chobani yogurt.

NZ Milk Output Far Below Expectations (p. 2):
After presuming double-digit gains in milk output for New Zealand during the 2010-2011 pasture season, bad weather in recent weeks is putting a severe damper on the Kiwi’s flow of farm milk. NZ dairy cows came off last pasture season in reduced condition, due to widespread drought. Early into the current production season, a foot of snow fell on much of NZ’s South Island, denying cows access to vital grass for several days. Bottom line: Fonterra will be stressed finding enough dairy products to sell to Asian buyers, and may have to turn to the U.S.

Russia Bans U.S. Dairy Imports in Late September (p. 3):
Claiming that the U.S. had repeatedly failed to Russian concerns about veterinary health certifications, Russia banned further import of dairy products from the U.S. at the end of September. This moves comes following heavy Russian purchases of U.S. dairy products so far in 2010.

Rabobank Sues Vreba-Hoff Units; Over $55 million sought (p. 3):
Rabobank, the Netherlands-based agricultural lender, has filed legal actions against the Vreba-Hoff dairy empire in the U.S. At issue: some $55 million in unpaid loans and other liabilities.

Early Harvest Corn Prices Surprise Dairy & Grain Industries (p. 4):
U.S. corn prices have basically kept climbing since mid or late August 2010, as the harvest has commenced. The Milkweed discusses the multiple factors driving up corn prices.

Corn Prices: Other Shoe –Poor Quality Carryover – Yet to Fall (p. 4):
In the analysis of The Milkweed, the remaining poor quality of the carryover 2009 corn crop means that a certain percentage of that corn is really unfit for human or livestock/poultry use.

Antitrust & Cheese Price-Fixing Lawsuits Threaten DFA’s Future (p. 5):
Dairy Farmers of America faces more than a half-dozen serious private lawsuits charging various antitrust or commodity cheese manipulations. The potential impact on DFA’s operations cannot be understated.

Killer Whale Wins Key Points vs. DFA (p. 5):
The lawsuits by Mark Anderson and his commodity business, Killer Whale Holdings, LLC, vs. Dairy Farmers of America gained great traction when a federal judge in Minnesota ruled that the statute of limitations for the plaintiffs’ commodity manipulation started on December 15, 2008 – when DFA’s settlement for Cheddar price rigging at the Chicago Mercantile Exchange was publicly known.

NZ Dairy Leader Caught Up in “Induced Calving” Scandal (p. 6):
Fonterra board chairman Sir Henry van der Heyden is caught using an unethical, banned animal husbandry practice to squeeze every last drop of milk from his dairy herds.

Feature Story #1: Clyde Rutherford’s $750,000 Luxury Mansion in New JERSEY (p. 6):
How can a Dairylea director, who alleges to represent that co-op’s District 1 (east-central New York), live large in a New Jersey a fancy mansion in central New Jersey? Read the story here.

Scenic Central Co-op Members Benefit from Cash Retirement Plan (p. 7):
A small dairy cooperative in Wisconsin – Scenic Central – has a member program that shifts five cents per cwt. into a dedicated retirement program for participating members. Members may match or exceed the co-op’s contributions.

Why NMPF’s “Foundation for the Future” is B-A-D (p. 7):
In The Milkweed’s analysis, the farm policy proposals from the dairy co-op lobby are fatally flawed. National Milk Producers wants to de-regulate Class III (cheese) milk from USDA’s federal milk orders, and then use a competitive survey price of what prices cheese plants pay for their milk as a basis for Class I (fluid) prices. Our problem with this fallacy: there are major buyers of cheese milk that do not pay competitive prices, such as Leprino Foods (which is supplied almost exclusively with a long-term contract by DFA).

Feature Story #2: Low-Ball Nonfat Dry Milk Pricing is Continued Drain on Financial Drain on Dairy Farmers Milk Checks (pp. 8-9):
If one believes the CEO of the nation’s milk powder pricing cartel, his explanation for the drop in U.S. nonfat dry milk prices since early June 2010 is simple: old-fashioned supply and demand. Trouble is: the facts disprove Mr. Lewis’ continued prevarications. Read the story here.

DO NOT Sign Fixed-Price Contracts (p. 9):
Many marketers are putting pressure on dairy farmers to sign long-term, fixed-price milk contracts. We advise against that practice.

Powder Imports Depressing Chinese Farmers’ Milk Prices (p. 9):
What do Chinese and U.S. dairy farmers have in common? Their milk prices are being reduced because of imports of dairy protein powders.

Chinese Data Shows $.30/lb. Higher Milk Powder Import Prices (p. 9):
Data between the Chinese and U.S. governments show a serious divergence in prices for U.S. milk powder sent to China. The U.S. data shows the product going out of the country for approximately $1.14 per pound in recent months, while Chinese data shows the price of nonfat dry milk imported from the U.S. at $1.44 per pound.

“Fly Farm” Produces Protein, Reduces Greenhouse Gases (p. 10-11):
The world of protein is changing. Writer Paris Reidhead explores an experimental process operated by Eco-Proteins, Inc., that uses common houseflies to digest the wastes in manure, helping reduce air pollution. Then, the adult flies are captured, dried, and used to create a high protein meal for poultry, swine and fish-farming.

Federal Appeals Court Overrules Ohio’s “rbGH/rbST” Milk Label Rules (p. 11):
Mary Zanoni writes about the recent federal appeals court decision that overturned Ohio’s restrictions on claims of “rbGH” or “rbST” “Free” consumer dairy products.

Feature Story #3: IDFA Form 990: Connie Tipton’s 2009 Compensation was $1 Million+ (p. 12):
   While the nation’s dairy farmers financially starved last year, the head of the nation's sole processors lobby group was made “a million dollar woman” in 2009. Read all about it here.

Dairy Livestock Price Picture: Lots of Uncertainty (p. 13):
Pete Hardin details present and future considerations for dairy livestock prices. Must reading.

Wisconsin Animal Health Officials Dealing with Bovine TB Herds (p. 13):
A handful of dairy herds in Wisconsin are under “trace-back surveillance” for Bovine Tuberculosis. A couple hundred animals exposed to imports from problem herds in Texas and Ohio have already been slaughtered, with perhaps another couple hundred animals headed for the abbatoir.

Cash Cheddar Prices Gain, Grade AA Butter Slides Back a Bit (p. 14):
In the past month, commodity prices for Cheddar cheese and butter are up, but butter has slid back about a nickel. Great uncertainty makes the dairy industry nervous. What’s ahead???

2012 Farm Bill Plans? NONE of the above. Just enforce existing laws. (p. 15):
Pete Hardin explains how the U.S. dairy industry doesn’t need a whole bunch of new laws and programs. What’s needed: enforce a perfectly fine set of existing laws and rules, which, for some reason, federal bureaucrats are ignoring – from antitrust to FDA food standards.

IL Atty. General Investigating A. J. Bos’ “Deep Purple” Stream Pollution (p. 16):
The Illinois Environmental Protection Agency has requested the state’s Attorney General to investigate illegal discharge into a stream by the unfinished Traditions South Dairy, near Nora, IL. On October 1, a neighbor found the stream running off Traditions South property bright purple. Subsequent private testing of water samples showed Biological Oxygen Demand at 410 – more than TWICE the pollution factor contained by raw sewage!!! We carry color pictures of the stream and site.

September 2010 Issue No. 374

Inside this month’s issue...

Feature Story #1 -- Butter, Cheddar Prices Strengthen; Far Higher Milk Prices Ahead (p. 1):
See our first “story of the month” for September 2010 here.

Aberrant Weather Disrupting Global Food Output & Reserves (p. 1):
The global wheat shortage – which must be viewed as more than just a one-year phenomenon – is the tip of the iceberg in terms of far wider issues of global food reserves. Serious concerns are growing about the world’s ability to feed itself in coming years.

August 2010 Class III Price $15.18 – August Class IV $15.61 (p. 1):
Prices for manufacturing milk in USDA’s federal milk order program keep climbing, based on rising dairy commodity values. And there’s more in the pipeline.

Wall Street Boosts Dean Foods’ Stock on Dannon Purchase Rumor (p. 2):
Late August/early September saw Dean Foods’ stock price perk up a bit, based on rumors of a possible acquisition by the French-based yogurt/bottled water giant Dannon. Folks watching Dean Foods’ demised stock and operating conditions puzzle why Dannon would want the whole shebang, since fluid milk processing is so low-margin.

Global/Dairy Trade Early September Auction Prices Up 15% (p. 3):
The early September auction of dairy commodities conducted by New Zealand dairy trade giant Fonterra saw prices increase about 15% compared to the August auction.

No “Progress” on China’s Ban or EU’s 400,000 SCC Rule (p. 3):
Still no word on China’s delayed ban of U.S. dairy products and ingredients. And gov’t reps on both sides of the Atlantic are still blathering about the European Union’s proposed ban on milk from U.S. milk trailers exceeding 400,000 parts per milliliter.

May-July Cheese & Fluid Retail Sales Declined (p. 3):
For the latest three month period, fluid milk and cheese sales at retail declined. The fluid sales decline of 3.1% (vs. same period in 2009) is a serious problem.

Weather Events Threaten Global Wheat Reserves (p. 4):
Critical issue! Global wheat production has been impaired in many key wheat-producing nations in 2010. Likelihood is, particularly in drought-scorched Russia and flooded-out Pakistan, that normal planting of the 2011 winter wheat crop has already been lost.

Hamburger Supply/Demand to Lift Cull Prices (p. 4):
Tight commercial beef numbers and strong hamburger demand will dramatically increase demand for dairy cull cows to end up between a sliced hamburger bun. Watch for big boosts in prices paid for quality dairy cull cows.

Politics Offers Dairy Farmers No Short-Term (p. 5):
Don’t waste your time on politics. Nothing dairy-wise will happen before the 2012 Farm Bill (which will take effect later in 2013). The dairy supply-demand situation is changing fast. The political landscape could change dramatically in November, with Democrats losing control of the House and/or Senate.

Farmers Face Double Whammy: Free Trade, Import Assessment Collide (p. 5):
Here’s an evolving mess. On one hand, dairy importers want to optimize their advantages under a proposed rules change that would assess imported dairy products a “promotion fee. On the other hand, the European Union is seeking, through global trade rules, to disallow U.S. cheese marketers to use traditional names for cheeses made in America. Names in conflict could include: Cheddar, Parmesan, Muenster, etc., etc.

Feature Story #2 -- More $$$ Coming in the Milk Check (p. 6):
Read our second “story of the month” here.

Four Ex-Employees of Montana Dairy Co-op Indicted (p. 6):
The federal Justice Department has indicted four former employees of Country Classics Dairy (Bozeman, MT) for theft of hundreds of thousands of dollars. Ex-CEO Mike Monforton and the McCown “gang” engaged in a scheme that saw personal credit card expenses charged off against the cooperative, as the bookkeeper Jeanette McCown oversaw the scam.

Foot and Mouth Disease – A Potential Imported Disaster for Dairy Producers (p. 7):
The president of R-CALF USA, Max Thornsberry, DVM, lays out the scary scenario of how relaxed “Free Trade” rules and oversight on meat imports entering the U.S. could lead to a devastating Food and Mouth Disease epidemic here. Thornsberry explains how hundreds of farms in England were depopulated of creatures and all buildings were leveled and destroyed in England about a decade ago. Some 80 British farmers whose farms were wiped out committed suicide!

Global Financial Woes Pulled Down U.S. Milk Prices (p. 8):
Writer John Bunting takes a long look at two subjects: 1) how the global financial crisis in mid-2008 pulled down U.S. milk powder exporters’ ability to move out product, despite continuing global demand, and; 2) how the resulting credit crisis has financially devastated U.S. dairy farmers, despite continued strong demand for their dairy products. Thought provoking!

Sodium Gluconate Controversy Grows (p. 9):
Writer John Bunting again digs into the illegal additive being used in cheese vats to boost cheese yields: Sodium Gluconate. National Milk Producers Federation – the dairy co-op lobby – has issued an early, limp excuse for the practice. Guess where most of the Sodium Gluconate used in the U.S. comes from … China!

Egg Recalls: Disaster Long in the Making (p. 10):
Writer Paris Reidhead delves into the recent scandal involving Salmonella contamination of eggs by huge egg factory farms in Iowa. Lots of insightful facts here … make a person want to buy home-produced eggs.

Lew Gardner, DFA Corporate Director, Files Bankruptcy Again (p. 11):
Lew Gardner, who sits on the corporate and regional boards of Dairy Farmers of America, has filed bankruptcy AGAIN. The Milkweed digs through Gardner’s embarrassing bankruptcy filing of May 6, 2010 to show how “Lew the Screw” basically repeated his filing of 2006. Gardner’s bankruptcy papers show he received $17.00/cwt. for his milk in March 2010 (a couple dollars higher than his neighbors), and earned over $17,000 as a corporate director in 2010, prior to his bankruptcy filing. Gardner still owes Agri-Financial Services (a DFA/Dairylea lending subsidiary) about $700,000 for the unpaid balance on a $1.5 million THIRD MORTGAGE on Gardner’s 100-acre farm and herd of scrub Holsteins. HOT STUFF!

Northeast Dairy Producers Antitrust Claims Proceeds to Discovery (p. 12):
The Northeast class action lawsuit against several dairy cooperatives and fluid milk processors has been given the “green light” to proceed to discover by the presiding federal Judge in Vermont. Interestingly, the judge ruled that the regional over-order pricing agency (GNEMMA) does not have Capper-Volstead protection in the lawsuit.

Foremost Farms: State Ward (p. 12):
The Milkweed gives Foremost Farms a good kick in the kiester. After glomming a secretive $3.4 million grant from the state of Wisconsin earlier this year, Foremost has now received $45 million in tax credits for cheese plant expansion. And don’t forget that this co-op is holding on to 20 years’ worth of “retained earnings” from members.

Rising Milk Prices Will Pull up Dairy Livestock Values (p.13):
Pete Hardin details how fast-rising farm milk prices will drag up values of all dairy livestock. BUT these anticipated livestock price boosts may wait a little while, until dairy farmers pay down some bills and loans.

Southeast Antitrust Case Gains Class Certification (p. 13):
At long last, the presiding judge in the Southeast dairy producers’ class action antitrust cases levied against Dairy Farmers of America, Dean Foods, et al., has gained certification of class – an important step to move forward to trial.

CME Butter at $2.2250/lb., Cheddar Rising; Powder Waking Up (Finally) (p. 14):
Editor Pete Hardin surveys the dairy commodity price and marketing scene, revealing how tight cream and butter are. Scarcity of (and high prices for) milk are slowing down cheese output at some cheese plants.

Strategies to Survive and Prosper in Better Times (p. 15):
Pete Hardin starts what should be a longer-running discussion on how dairy farmers can survive and prosper as they come out of tough financial times and enter a period of higher milk prices. Rule #1: DO NOT, REPEAT, DO NOT lock in fixed-price milk contracts for anything that does not have a “2” in front of it.

A.J. Bos’ Lawyers Tell U.S. EPA to “Bug Out” (p. 16):
In the continuing battle at Nora, Illinois, lawyers for Californian dairy impresario A.J. Bos have told the U.S. Environmental Protection Agency that they will not respond to the July 1, 2010 demands by EPA for further, extensive testing of surface and groundwater flow at the site of Bos’ half-built, mega-dairy in northwestern Illinois. Bos’ attorneys claim that EPA has such jurisdiction. The Milkweed also reveals correspondence from the Illinois Department of Environmental Protection that shows A. J. Bos never submitted the proper form, nor did he pay the related fee, for the required IEPA “Section 401 Water Quality Certification Fee Worksheet.” Without that document, A. J. Bos could not legally operate his mega-dairy. Yet Bos (and his gang) have widely blamed local activists for delaying completion of his “Monument to Stupidity.”

Ernie Yates “Back to Work” on January 1, 2011 (p. 16):
Ernie Yates, whose intended employment shift to a competitor was blocked by Dean Foods lawyers, will start back to work in milk procurement in early January, 2011.

August 2010 Issue No. 373

Inside this month’s issue...

Future Milk Prices? Up? Sideways? Down? (p. 1):
Pete Hardin explores the major factors that could influence coming months' farm milk prices -- for better or not. Those factors include: weather events that are depresssing farm milk volumes and components content; continued strong milk and cheese production (at least through June), declining retail demand for cheese and fluid milk, unduly low butter production and inventories, strong demand for hamburger, and desperate financial conditions on many U.S. dairy farms. We project both reduced U.S. farm milk output and reduced demand.

July 2010 Class III Price $13.74 -- July Class IV $15.75 (p. 1):
USDA's measures for cheese and butter-powder milk continue rising. Strong butter prices provide much of the monthly gains. More gains ahead.

Butter, Cheese Commodity Strength Building Stronger Milk Prices (p. 2):
At press time, with CME prices for Grade AA butter pushing $1.90 per pound and block Cheddar just over $1.60 per pound, momentum for the best farm milk prices in two years is in place.

Bovine TB Trace Backs Blanket 75 Dairies in 20+ States (p. 2):
Under the radar screen, the U.S. dairy industry is building an unfortunate track record of Bovine Tuberculosis trace backs. A "trace back" occurs when animals from a TB-infected source are shipped to other premises. Problem herds in Texas and Ohio are the major sources of these trace backs.

global/Dairy Trade: August 6 Auction prices down (p. 2):
Once again, Fonterra's monthly auction of dairy protein powders and anhydrous milk fat declined -- pointing to looser supply-demand conditions in the global dairy market place.

Wheat Prices Surge: Weather Events & Export Ban Tighten Global Supplies (p. 3):
The big news in grain is W-H-E-A-T. Weather problems in Russia, India and Canada have caused deep concerns about global wheat supplies. Prices are rising. Russia invoked a wheat export ban in early August -- jolting the global grain trade.

Feature Story: Cheese Importers Want to Use Dairy's REAL Seal!! (p. 4):
Remember dairy's REAL Seal? Due to changes in federal laws, U.S. dairy promotion efforts may not emphasize U.S.-produced dairy products any more! So, cheese importers are requesting details how they can use dairy's icon on their imported products. Read all about it here.

April-June 2010 Retail Sales Eroded for Cheese/Fluid Milk (p. 5):
For the 90-day period ending June 27, 2010, retail sales for both cheese and fluid milk declined significantly. This problem is serious.

Loss or REAL Seal: Only One of Many Import Assessment Dangers (p. 5):
We explain how the "dumbing down" of dairy's REAL Seal is just one of many brain-dead elements in dairy promotion leadership's inept pursue of a promotion check-off on dairy imports.

Posilac, IGF-1, and Cancer: the Medical Train Wreck Continues (p. 6-7):
Writer Paris Reidhead details a long medical research history linking development of certain cancers (including breast and prostate) to elevated levels of IGF-1 in blood. IGF-1 content in milk is dramatically elevated by injecting lactating dairy cows with recombinant bovine growth hormone (rbGH -- marketed as "Posilac" by Elanco). Despite FDA's claims to the contrary, it is commonly believed that casein (a milk protein) ushers milk-borne IGF-1 through the human stomach and into the bloodstream. Reidhead also presents a chart depicting annual milk duct cancers in post-menopausal women -- data showing a tremendous spike following commercial introduction of rbGH in 1994.

Feature Story #2: Big Cheese Yield Gains, But Sodium Gluconate is Weak Link in High-Tech Cheese Vat Shenanigans (p. 8-9).
See our "Story of the Month" written by John Bunting here.

Recession and Farm Milk Prices (p. 10):
John Bunting details how farm milk prices dropped during the most recent recession (Fall 2007 through Fall 2009), but that consumer prices for dairy products dropped minimally in that period. Somebody made a lot of money off the farmer's milk price drop.

Dean Foods -- Playing the Organic Shell Game (p. 11):
Mark Kastel of the Cornucopia Institute details how Dean Foods is shifting to non-organic inputs in various food items that were once marketed as organic, or using organic ingredients.

USDA Bans Organic Certifier from Working in China (p. 11):
USDA has banned the Organic Crop Improvement Assn. (OCIA) -- one of the nation's biggest and (supposedly) respected certifiers of organic crops and foods -- from further activities in China. OCIA used organic certifiers with ties to China's government. Will Fantle of the Cornucopia Institute wrote this story. His organization has long been critical of "organic" foods coming from China and alleged failures in oversight by certifiers.

June 2010 Powder Exports Up, But Prices Lag (p. 11):
John Bunting shows how milk powder exports in 2010 are up, volume-wise, but prices (per unit) are down. John points out some late-June 2010 funny business involving powder prices and exports.

Federal Legislators Likely to De-Fund NAIS, But ... (p. 12):
Writer Mary Zanoni details how both current agricultural funding bills in Congress for the October 2010 federal fiscal year have removed funding for the National Animal Identification System (NAIS). Will the brazen, "Big-Ag" interests that have promoted this program all along continue???

Dairy Cattle Replacement Prices (p. 13):
Prices for most dairy livestock are flat, at best, except for demand for dairy cull cows to feed America's strong hamburger demand.

Food Lion Dairy Antitrust Lawsuit Gains Judge's Okay (p. 13):
In the Southeast, complaints by Food Lion (and other supermarket chains) against Dean Foods, Dairy Farmers of America (and others) for unduly elevating raw milk prices for Class I (fluid) use have gained approval of the presiding federal judge to move ahead. However, the judge granted only one of the original complaints filed by the plaintiffs.

Former USDA Official Gaming Dairy Import Licenses (p. 13):
An unnamed, former USDA official is gaming the dairy import license game, using shell corporations and strange addresses to pile up dairy import licenses.

Dairy Commodity Scene: Butter Tight, Cheddar & Powder Plentiful (p. 14):
Pete Hardin analyzes the current dairy commodity scene. Butter is tight, but Cheddar is long and milk powder prices have recently declined. Watch the July-August 2010 milk production reports (and related levels of butter fat and protein) for real signals about where this industry is headed.

"Misbranded" Cheese is Killing U.S. Dairy Farmers (p. 15):
Using John Bunting's "Story of the Month" from this issue -- which details how use of an unapproved ingredient sprinkled atop curds in the cheese vats -- is helping some cheese plants gain product yields as high as three pounds of cheese per cwt. of farm milk. That ingredient is Sodium Gluconate. These extra three pounds of cheese are causing the buildup of surplus cheese in the U.S., despite strong demand for cheese during 2009 and early 2010. Hardin calls for an action plan by concerned persons to attack use of sodium gluconate in cheese production, when cheeses of standard identity (Cheddar, Mozzarella) are being manufactured. "Help us beat the tar out of illegal use of sodium gluconate," Hardin urges. By August 25, The Milkweed will have posted on its Web site a list of specific actions that concerned person may take.

REAL Seal Needs New Management (p. 15):
Pete Hardin proposed that the bozos who control U.S. dairy promotion give back the REAL Seal to the California Milk Advisory Board and, in turn, that body could turn over dairy's REAL Seal to a private group to run the program as intended -- promoting only U.S.-produced milk and dairy products.

EPA & Weather Pound A. J. Bos' Illinois Mega-Dairy Dreams (p. 16):
The long-running battle by California dairy empresario A. J. Bos to complete construction of a mega-dairy site in the northwestern corner of Illinois has run into recent roadblocks that could likely be fatal to Bos' dreams. First, the U.S. Environmental Protection Agency (EPA) issued, on July 1, 2010, a demand that Bos submit plans for extensive, complex testing of surface and ground water flow patterns. Bos is also under demand to prove an earlier statement to EPA that no Karst bedrock (fractured sandstone/limestone) is underneath the site and under areas where Bos proposes to spread manure.
Mother Nature also messed with Bos' plans. On July 22-24, rain storms dropped as much as 10-12 inches of water on that area. A berm in one of Bos' 14-acre animal waste storage ponds burst -- even though the pond was empty! (No cows are present at Bos' half-completed site, into which he has dropped about $30 million (estimated) to date. Pardon our enthusiasm, but The Milkweed declares this battle over and the winners will be the tight-knit group of citizens who have fought against imposition of Bos' dairy (manure) dreams in their environmentally-sensitive, beautiful corner of Illinois.

July 2010 Issue No. 372

Inside this month’s issue...

Farm Milk Price Improvement Finally at Hand (p. 1):
See our July “Story of the Month” #1.

Cream Scarce, “Multiple” High (p. 1):
Cream supplies in the U.S. are impossibly tight in early summer, driving up costs to processors.

June 2010 Class III Price $13.82 – June Class IV $15.45 (p. 1):
Manufacturing milk prices in USDA’s federal milk orders are inching up.

DOJ/USDA Dairy Antitrust Workshop: Listening & Posturing (p. 2):
The Madison, Wisconsin dairy antitrust workshop on June 25 drew 600+ attendees. Pete Hardin details the high points and the low points. The good news: dairy antitrust issues are hot, and DFA is running scared.

No Further Details on Threatened China’s Ban of U.S. Dairy Imports (p. 2):
In negotiations … the headline tells it all.

Upscale Emmi Yogurt: Retail Price +$400/cwt. (Contains MPC!) (p. 3):
At $1.59 per six-ounce cup, one might hope that Emmi yogurt firm could market their upscale yogurt without using Milk Protein Concentrate (MPC) as the second leading item in their “plain” variety. The package claims that the product is based on an “Original Swiss Recipe” – raising the question: Is MPC a legal food ingredient in the European Union and Switzerland?

NMPF’s “Foundation for the Future” – Roadmap to Hades (p. 4):
The dairy co-op lobby has done it again – proposing a dramatic change in federal dairy policies that contains some very bad, and ill thought-out ideas. NMPF proposes junking USDA’s safety net programs for dairy producer income (MILC & the support price program) in favor of a mandatory milk margin insurance program that nets out to a $4.00/cwt. loss.

Marvin Hoekema Analyzes NMPF’s Foundation for the Future” (p. 4):
We quote liberally from a seven-page analysis of NMPF’s proposed dairy policy changes by Visalia, California dairy consultant Marvin Hoekema. Marvin really puts the wood to NMPF.

Did ’09 Failure to Export Surplus Powder Cause Current Cheese Glut? (p. 5):
We offer this analysis as July’s second “Story of the Month.”

Latest CWT Export Scam (p. 5):
John Bunting writes about a recent subsidy of $1.40 per pound paid by Cooperatives Working Together (CWT) to several big co-ops to export cheese to the Middle East. With conventional cheese prices in the $1.39 range – the co-ops received roughly $2.79 per pound for their product! What a scam!

Take a Long, Long Look at Butter & Cream (p. 6-7):
John Bunting analyses historic and present supplies of butter and cream, and their increasing demand factors. He also explains the “Cream Multiple” – which at present is near an all-time peak.

“Gulf-Hopping” Spotlights Ag Solutions to Energy Dilemma (p. 8-9):
Paris Reidhead investigates many facts and details about the globe’s oil supply, with a special focus on facts concerning the Gulf of Mexico oil reserves. Conclusion: the U.S. must look to farmland as an increased source of its energy to provide fuel for transportation in the future.

Dairy Cattle Replacement Prices at Auction Markets Across the USA (p. 9):
On a market to market basis, dairy livestock prices are steady to declining. Prices for springing heifers are generally down about $100 per head in the past month. Livestock prices are collapsing in Texas.

1930s U.S. Supreme Court Dairy Decisions Relevant (p. 9):
Ah, the good old days, when the U.S. Supreme Court recognized the law of the land to be that dairy is an industry whose good fortunes are in the public interest and that USDA’s role is to sustain farmers’ purchasing power as a matter of national economic interest. The laws are basically the same, only the enforcement is lax.

Butter & Milk Powder Tight; Plenty of Cheddar (p. 10):
Pete Hardin reviews current dairy commodity events. Butter and cream supplies are very tight.

Divergent Chorus: “Blame the Supermarkets” (p. 11):
At the June 25 dairy antitrust workshop in Madison, Wisconsin, Pete Hardin found it humorous that directors and senior staff members of Dairy Farmers of America chose to blame the supermarkets for dairy’s pricing inequities. That same theme was reached by UCONN economist Dr. Ronald Cotterill. The “blame the supermarket” chorus is picking up members, some of whom probably want to divert attention from their own misdeeds.

Good Idea: USDA/Dairy Industry Advisory Panel (p. 15):
At a recent dairy industry convention, Hilmar Cheese’s Rick Kaepernick suggested a formal dairy industry advisory to USDA, to try to keep gov’t bureaucrats from issuing such stupid edicts. Good idea, but a group of three to five persons would probably be better.

Organic Raw Milk Souring Political Battles Shift to Wisconsin and Massachusetts (p. 12):
Will Fantle of the Cornucopia Institute updates the latest events in the expanding, raw milk battle front.

RR Alfalfa: Monsanto Misfires on Reporting High Court Ruling (p. 12):
Paris Reidhead details the recent U.S. Supreme Court decision regarding USDA’s environmental impact oversight of Monsanto’s genetically-modified alfalfa. Monsanto promoted the decision as a “win” … but that’s not completely accurate.

June 2010 Issue No. 371

Inside this month’s issue...

Feature Story of the Month: Special Dairy Antitrust Issue (p. 1-6, 15-20):
Read all about the major antitrust issues facing the U.S. dairy industry in this month’s special issue.

Cheese Inventory Growth Holding Down Milk Prices (p. 7):
Getting harder to figure … despite strong cheese sales, cheese inventories (measured by USDA) keep growing. This is one of the quirks in the dairy commodity scene.

EU Demands for 400,000/ml SCC on U.S. Farm Milk Stalled in Negotiations (p. 7):
Dictates by the EU that U.S. farm milk be no more than 400,000 Somatic Cell Count are in negotiations. But some U.S. milk procurers are already instituting the 400,000/ml SCC requirement as a demand on U.S. farmers.

May 2010 Class III Price $13.38 – Class IV $15.29 (p. 7):
That was May. June prices for Class III (cheese milk) look like they’ll come in below May 2010 levels.

Northeast Dairy Antitrust Case Moves to Discovery (p. 8):
The private antitrust complaint against numerous co-ops and fluid milk buyers has received the okay from the presiding federal judge to move to discovery.

China’s Ban on U.S. Dairy Food Imports “In Negotiations” (p. 8):
Chinese and U.S. negotiators continue trying to work out a settlement to the imminent ban by China of U.S. dairy products/ingredients used for human food. Veterinary health issues are at the core of the problem, it appears.

EU Won’t Honor Low Bids for Skim Milk Powder Auction (p. 8):
The EU had put out invitations for bids to buy surplus butter and skim milk powder. But EU leaders didn’t like the prices, so they failed to fulfill the bids. ????

Grazing Ruminants Lower Greenhouse Gas Emissions (p. 9):
Paris Reidhead describes recent studies showing that grazing ruminants reduces production of greenhouse gasses, particularly nitrous oxide. Good news if dairy can properly handle manure.

Chicago Mercantile Exchange (CME) is Everything in U.S. Cheese & Cheese Milk Pricing (p. 10-11).
John Bunting explores the long, long history of cheese price manipulations. And he further details how top level federal officials are literally refusing to acknowledge that dairy’s pricing inequities start at the CME.

Straight talk (p. 13):
Pete Hardin reveals the “radical” Willie Sutton/Pete Hardin milk-pricing plan: a surtax on supermarket dairy profits. Why? Because, as the famous bank robber Mr. Sutton explained, “That’s where the money is.” Hardin reports seeing a 6-oz. cup of MPC-laden yogurt in a Washington, D.C. food store priced at $1.59 per cup – that’s almost $400 per cwt., farm milk price equivalent.

Total Cheese Excuse: Numbers Don’t add up (p. 14):
John Bunting details how recent months’ cheese data doesn’t square. Example: Wisconsin milk supply is up 5-6%, but that state’s cheese production is slightly off, according to USDA data. Meanwhile, New Mexico’s milk production is mostly flat, but cheese production is way up! What’s going on???

May 2010 Issue No. 370

Inside this month’s issue...

Uncertainty Abounds in Dairy (p.1):
Short & sweet: there is so much volatility in our industry and our nation’s economy that it’s very difficult for predict too far in advance.

Dean Foods Q1 Profits Down, Stock Collapses (p. 1):
On Monday, May 10, Dean Foods announced the first quarter results. As predicted in the March 2010 issue of The Milkweed, Dean Foods’ first quarter results were way, way down. Wall Street panicked, dumping Dean Foods’ stock by more than 35% in two days.

April 2010 Class III Price $12.92 – April Class IV Price $13.73 (p. 1):
Good thing for high butter prices – that helped cushion some of the shock from lower cheese prices in USDA’s survey that collects commodity price data used to figure monthly milk prices. Good thing for high butter prices – that helped cushion some of the shock from lower cheese prices in USDA’s survey that collects commodity price data used to figure monthly milk prices. Some strength is building under commodity prices, mercifully.

Sounds Crazy: Beef Prices May Be Dairy’s Salvation (Short-term) (p. 2):
Every sign indicates that strong consumer demand for hamburger and a scarcity of commercial beef animals heading slaughter means packers will continue to raise the ante paid for cull dairy cows. Higher cull cow prices will somewhat lower milk output, and strengthen values of all dairy livestock.

ADPI/WCMA Meetings Provide Good Dose of Market Intelligence … (p. 2):
Two of the big dairy processing trade meetings of the year happened in April – the Wisconsin Cheese Makers Assn. and the American Dairy Products Institute. These meetings yielded a lot of hints about market conditions, including: butter will be very tight and very expensive this fall.

Goliath (Dean Foods) Kicking David (Prairie Farms) in the Butt … HARD (p. 3):
Fluid milk giant Dean Foods has responded to irksome competitive behavior by Prairie Farms the new-fashioned way: giving Prairie Farms the boot from many dozens of Wal-Mart stores spread between Nebraska and the Ohio-Indiana boarder. Dairy industry watchers are stunned.

LOL to Close Tulare (CA) Cheese Plant (p. 3):
The combined factors of perceived future scarcity of farm milk in the second half of 2010, plus reduced demand for cheese by the major buyer (Kraft Foods), has forced Land O’Lakes to announce closure of its cheese plant at Tulare, California. Butter-powder operations at the multi-plex site will continue … for now.

Bombshell! China Threatens to Embargo U.S. Dairy Products/Ingredients (p. 4):
In late April, the U.S. dairy learned of a threatened boycott of U.S. dairy imports by China, effective May 1. A month’s grace period was worked out, but the threat of loss of Chinese markets for U.S. dairy products has stunned the industry. Details have been too scarce, and we wonder if USDA didn’t fall down on the job regarding health certificates demanded by the Chinese.

Canada Out of China’s Dairy Market Since March 1 (p. 4):
Canadian dairy officials failed to heed China’s demands for updated animal disease health certificates on a timely basis and China banned Canadian dairy imports, effective March 1, 2010. Canada is still out of the Chinese market.

Chinese Dairy Import Ban: Another USDA Screw Up??? (p. 5):
USDA is making a habit of last-minute notices to the U.S. dairy industry regarding foreign food safety and health demands. The Chinese dairy product ban is not the first such instance. In January 2010, USDA announced new somatic cell count rules for exports of cheese and other dairy products to Europe – with no advance notice!

Feature story: Huge New Cheddar Price Manipulation Antitrust Suit Filed vs. DFA (p. 6)
For many years, the anti-competitive actions by Dairy Farmers of America have been characterized as “mafia-like.” But now those allegations are official: DFA has been recently named as defendant in a privately-filed “RICO” lawsuit. Read this big story here.

IDFA Uses Select Data on Farm-to-Retail Milk Price Spread (p. 7):
To try to defuse public uproar over high mark-ups of fluid milk products by processors and retailers, the economist for the International Dairy Foods Assn. has recently compiled data on that matter, claiming off-farm margins for fluid milk are within historic ranges. Trouble is: that economist – Bob Yonkers – skipped 2009 data – the year that farm milk prices and consumer milks dramatically diverged.

Farm Costs Up Steadily, But Milk Prices Fluctuate (p. 8):
What’s new? Farm costs keep rising, milk prices are down and up and down again for too long.

Bankers/Suppliers Can’t Ignore California’s Dairy Crisis Much Longer (p. 8):
Writer John Bunting takes a long, detailed look at the history that build California’s modern milk producing industry … and explains why equity burn-down for producers during the last two years has created an explosive mixture of high debts and low asset values. Incisive reporting ….

Why So Much More Milk in Wisconsin??? (p. 9):
Pete Hardin takes a tough look at the factors building Wisconsin’s fast-growing milk production momentum. In addition to a general shift of dairy resources to the Great Lakes States, Wisconsin put in place several years ago a two-pronged milk stimulus package: a state board to approve mega-dairies (that takes away prior rights by counties and townships to approve siting big farming operations) and a package of tax breaks to encourage large dairies in the state.

Next Scam: “Milk Over Feed Costs” Insurance (p.10):
Setting a “fair” milk price is seemingly impossible, what with all the politics and crooks in the dairy business. So USDA’s latest banana for dairy is to push an insurance program that locks in (for a producer-paid premium) a “margin” of milk prices over feed costs. Why can’t USDA simply come up with an honest milk pricing system? Why more programs that boost the number of parasites between the farmer and his milk check?

WI Raw Milk Bill Awaits Governor’s Signature (p. 10):
No sign in “America’s Dairyland” whether outgoing governor Jim Doyle will sign the recently-passed legislation legalizing raw milk sales by farmers to consumers. This bill grew from grassroots support and passage through the state legislative bodies – against the wishes of the state’s dairy powers.

Does Volcanic Activity Heighten Climate Change … or Visa Versa? (p. 11):
Writer Paris Reidhead takes a long look at the relationship between volcanic activity and climate change … and visa versa. Credit Paris with the ability to dig into agricultural and scientific subjects and leave his readers much better informed for the experience!

USDA Organic Board to Disallow Wrongly-Approved “Accessory Ingredients” (p. 12):
Writer Will Fantle, on behalf of the Cornucopia Institute, reports on a recent decision by USDA’s National Organic Standards Board to overturn prior rules and disallow use of so-called “accessory ingredients” in organic products. At issue, in great part: use of synthetic Omega-3 and Omega-6 oils in “organic” infant formula products. These synthetic products should not have been previously approved, but were. Some babies drinking these organic formula products suffered serious health problems.

Dairy Producers Face New Competition – from “Milk Drink” (p. 12):
A product dubbed “Organic Milk Drink” is being sold in a low-priced West Coast convenience story. The product has very few ingredients that ever came out of a cow, and is another example of abuse of organic standards, according to the Cornucopia Institute’s Mark Kastel.

Dairy Cattle Replacement Auction Prices (p. 13):
Dairy livestock prices are generally flat, compared to last month. Cull cow prices and bull calf prices are stronger. Less demand for open heifers translates into slightly lower prices.

Nitrate Fertilizers Add to Greenhouse Gasses (p. 13):
Paris Reidhead clarifies how nitrous oxide (N2O) is a dangerous greenhouse gas about which agriculture interests should be aware as an upcoming environmental issue.

Butter Supplies Will Get Tighter, Powder Tight, Cheddar Abundant (p. 14):
In our dairy commodity review, Pete Hardin covers the gamut of dairy commodity production and price trends. Look for butter to become very, very tight and pricey in coming months. Milk powder is tight. And folks are wondering how so much cheese can keep piling up, when comparing production vs. demand.

Big Risks, Little Return for Dairy Farmers (p. 15):
Pete Hardin dissects the lack of logic behind calls for the U.S. to jump heavily into the international dairy markets. The latest: China’s pending ban of U.S. dairy imports, is proof of just how fickle that global markets can be. Between currency values and oil prices, global dairy exports are a slippery slope for U.S. dairy commodities.

DOJ/USDA Dairy Antitrust Workshop: June 25 in Madison, WI (p. 15):
Details are virtually final: the joint dairy competition workshop held by the U.S. Departments of Justice and Agriculture will be June 25, 2010 in Madison, Wisconsin.

Global Roadmap to Disaster: “Bain Report” (p. 16):
In recent months, a fancy, expensive consultant’s report originally concluded in October 2009 has come to light, the “Bain Report.” This study recommends that the U.S. dairy industry pursue an aggressive path towards world markets. The Bain Report is designed as political cover for a big push for reliance on exports for policies in the 2012 farm legislation.

Latest Retail Sales Data: Cheese +1.9%, Fluid Milk (-2.3%) (p. 16):
The latest three month retail sales data for cheese and fluid milk shows the categories diverging: retail cheese sales continue strong, but fluid milk sales are declining seriously.

April 2010 Issue No. 369

Inside this month’s issue...

Milk Powder Will Drive Up Other Dairy Commodities’ Prices (p. 1):
We believe that milk powder price/demand trends are predicting far higher dairy commodity and farm milk prices ahead. U.S. milk powder output is down, demand is stable. Globally, NZ milk output is down and demand is rising as China faces a food emergency due to drought and spread of deserts.

Fonterra’s Latest Auction (p. 1):
The early April 2010 auction of dairy protein powders New Zealand’s Fonterra saw big increases in price paid by bidders, compared to the prior auction. Example: Skim Milk Powder prices rose by 25.5%, up to $1.67 per pound!

March 2010 Class III Price $12.78 – March Class IV $12.92 (p. 1):
Hopefully, these Class prices will be the lowest cheese milk and butter-powder milk prices we ever see again in USDA’s federal milk order system. Commodity price gains that started in late March should push up these critical pricing bases.

Feature Story #1: “Hamburger Helper” – Dairy Livestock & Milk Prices to ZOOM UP! (p. 2):
This important story is one of our “Stories of the Month.” Read it here.

30 U.S. Senators Warn of Dangers to Dairy Farmers from Proposed Trans-Pacific Partnership Free-Trade Deal (p. 2):
Two and a half dozen U.S. Senators have written U.S. Trade Representative Ron Kirk, stating major concerns about harm to U.S. dairy farmers’ prices if dairy products from Oceania are included in the Obama administation’s proposed “Free-Trade deal” that would cover the Pacific Ocean countries.

2008 DFA Audit: Same Old Worthless Assets (p. 3):
It’s time for Pete Hardin’s annual dissection of the latest financial audit from Dairy Farmers of America. Pete starts with DFA’s alleged $688 million in “equities” and then rummages through “worthless assets” to show how DFA’s actual worth ought to be close to zero. Examples: DFA’s “goodwill” is $118 million; DFA’s “Intangible assets” are $236 million; DFA’s “Preferred Equity Securities” of $150 million are a collateralized liability, not an asset; and DFA includes an “unrecognized actuarial losses of $151.4 million” in its employee pension program. Do the math …

Gov’t Data Shows – Strong Consumer Dairy Demand (p. 3):
John Bunting sorts through a heapin’ pile of federal government data about personal expenditures for dairy products for January 2008 through February 2010 and concludes that Americans are buying more dairy products, and paying higher prices for them … despite baloney about “dairy surplus” and obvious low farm prices.

USDA Releasing Aged Milk Powder for Non-Human Use (p. 4):
In a controversial move, USDA started auctioning off 79 million pounds of “surplus” nonfat dry milk. This move zeroes out USDA’s reserves of nonfat dry milk. What’s wrong? USDA used a private brokerage, not sell-backs of inventory at prices 110% above the purchase price. USDA did not denature (color) or even mark on the bags that the powder was not for human use. Word is that product leaving the country lacked paperwork specifying that the product was not for human use.

Dean Foods Holding Most Southeast Farmers to Agreements (p. 5):
Dean Foods will hold the 150 (or so) independent producers who gave notice seeking to leave their markets with Dean Foods to the contractual, 90-day periods between when they turned in notice and when they’ll actually be allowed to leave.

Dean Foods’ Motion Denied by Federal Judge in Antitrust Complaint vs. Foremost Buy (p. 5):
A federal judge has denied Dean Foods motion to reduce the number of antitrust complaints filed by federal/state justice departments in January 2010, relative to Dean Foods’ April 1, 2009 purchase of the consumer products division of Foremost Farms. The Foremost deal married up the two largest distributors of fluid milk in Wisconsin.

“Killer Whale” vs. DFA: Cheddar Price Manipulation Lawsuit Moves Ahead (p. 6):
A private commodity trader’s lawsuit against DFA will proceed towards trial. Mark Anderson and his “Killer Whale Holdings” firm sued DFA, claiming $12 million in losses, due to DFA’s manipulations of Cheddar prices at the Chicago Mercantile Exchange in spring/summer 2004. See a copy of the court ruling here.

Feature Story #2: Fonterra Selling “Aluminum-Enhanced” (Contaminated” Cheese in U.S. (p. 7):
This story is reproduced in full, with accompanying documents, as one of the “stories of the month.” Read all about it here.

China’s Food Challenges: Desertification & Drought (p. 8-9):
John Bunting takes a sobering look at weather challenges facing China’s ability to feed its 1.3 billion citizens. Deserts are spreading in northern China at the rate of over 1300 square miles per year. Worse, on a short-term basis: since last August, severe drought in southwestern China has basically cut of moisture to an area greater than 500,000 square miles. China has six percent of the world’s arable land, and 20% of the world’s population.

CBS News Tackles the MRSA Livestock Antibiotic Use Issue (p. 9):
Writer Paris Reidhead details the coverage of CBS’ Evening News broadcast of February 10, 2010, which provided a detailed analysis of the correlations of widespread, non-therapeutic use of antibiotics in livestock and poultry … with spread of the deadly MRSA contagion.

“Cruel & Unusual Punishment?” Illinois’ Prisoners’ Food Overloaded with Soy (p. 10)
Oh, no. Paris Reidhead brings together two items into a scary story. #1) A food advocacy group – the Weston A. Price Foundation – has sued the State of Illinois prison system because prisoners are fed so much soy proteins and soy materials in their diets that serious physical problems are occurring. #2) Paris also reviews the documented human health dangers associated with persons engaging in soy-heavy diets.

NAIS Supporters Object to New, “State-Based” Framework (p. 12):
Writer Mary Zanoni details how the vested money interests in the animal identification industry are objecting to USDA Secretary Tom Vilsack’s recent announcement that the program would be instituted on a state-by-state basis.

Amish Farmer Wins WI Premises ID Fight (p. 12):
A Wisconsin county judge ruled that a lawsuit against an Amish farmer in Clark County was invalid. This farmer was one of the first in a “show-trial” directed at farmers refusing to comply with the state’s mandate to register farm premises. That registration is the first step towards animal identification – a policy scorned by the Amish (and others) based upon warnings in the Bible’s Chapter of Revelations.

Organic Valley Buying Non-Member Milk in WI, Then Moving Trailer Loads to Supply-Tight NE (p. 12):
Organic Valley, the organic co-op based in LaFarge, Wisconsin, is buying non-member milk in Wisconsin and trucking that milk to the Northeast, where organic milk supplies are tight, relative to demand. Why is Organic Valley buying non-member milk, when, at the same time, the co-op is restricting members and “new arrivals” (former HP Hood shippers) to quotas? Somebody’s blowing smoke …

Dairy Replacement Prices At Auction Markets Across the USDA (p. 13):
Dairy livestock prices are mostly flat. Stronger interest in breeding-age heifers. Cull cow prices are strengthening.

Frozen Pizza Sales Strong Past Two Years (p. 13):
Nearly 10 percent of all cheese manufactured in the U.S. finds its home atop frozen pizzas. This category has grown dramatically in the past two years, a time when pizza parlor sales have declined.

Dairy Antitrust Workshop Rescheduled for 6/25/10:
DOJ and USDA have again rescheduled the antitrust workshop to be held in Madison, Wisconsin. The new date is Friday, June 25, 2010. See you there!

Dairy Commodity Scene (p. 14):
Milk powder prices are rising, Cheddar prices were down and up in the past month. Butter remains stable.

Restrict Capper-Volstead Protections Only To Raw Products’ Procurement/Sale (p. 15):
Pete Hardin’s opinion of the growing flap over charges that the Antitrust Division of the U.S. Department of Justice wants to get rid of agricultural co-ops’ legal protections for Antitrust? The Capper-Volstead Act should be amended to include only the original procurement and sale of agricultural products. Anything else: the co-ops should operate on the same accounting and financial bases as any other businesses. Hardin concludes: “U.S. agriculture and consumers will be better when the antics of major agricultural cooperatives are partially declawed, defanged, deloused, dehorned, “denutted” and delivered into a modern era of competition and financial transparency.

Get Ready for the Coming Milk/Dairy Livestock Price Upsurge (p. 15):
Pete Hardin offers strategies to dairy producers to protect their financial interests as we start what should be a strong up-tick of dairy commodity, milk price, and dairy livestock values.

Recent Study Estimates Posilac^® Use at 12-14% of U.S. Dairies (p. 16):
Rick North details how a recent study conducted by University of California-Davis researchers estimates that 12-14% of U.S. dairy farmers continue to use the synthetic growth hormone, Posilac^® on at least some of their cows. What’s the #1 reason why dairy farmers have cut back Posilac® use? Public opinion against the synthetic hormone!

Story Exposing Dairy Execs’ Big $alarie$ Causes Big Stir (p. 16):
Last month’s story about salaries paid to some top dairy executives really caused an explosion throughout the industry. We will dig deeper into these matters in a future issue. What a scam!

March 2010 Issue No. 368

Inside this month’s issue...
Entering Spring, U.S. Dairy Farm Economy in Dire Straits (p. 1):
Recent weeks’ declines in cheese prices promise another round of lowball farm milk prices – which will prove ruinous to many U.S. dairy producers who are reeling from last year’s disastrous milk prices.

U.S. “Milk-Deficit” Nation in 2009, Again (p. 1):
Once again, 2009 found U.S. milk production BELOW consumer demand. That’s been the case every year since 1996.

February 2010 Class III Price $14.28 – February Class IV $12.90 (p. 1):
These are the federal milk order prices for February 2010. Enjoy.

2009: U.S. Dairy Farmers’ Combined Losses & Equity Erosion Equaled 1/1/09 Entire Value of Nation’s 9 Million Milking Herd (p. 2):
By our analysis, the combined operating loss losses and erosion of milk cow values during 2009 equaled the entire value of the U.S. dairy herd as of 1/1/09.

Kraft Foods’ Year-End Numbers Show Firm’s Clout (p. 2):
Kraft Foods attributed 17% of its 2009 consolidated earnings to cheese. Kraft’s cheezy profits were in great part attributed to lower product costs.

U.S. Dairy Advisory Committee to Finally Meet in D.C. Week of April 12 (p. 2):
At long last, USDA Secretary Tom Vilsack’s office informed members of his dairy advisory committee that they will meet in Washington, D.C. during the week of April 12. ‘bout time!

Rumor: Fair Oaks/Kroger Talking Milk Deal (p. 3):
The Mid-East and Southeast dairy markets should take notice: “on-again, off-again” talks between Fair Oaks Dairy/Continental Milk Producers and The Kroger Company over a full milk-supply agreement are in the works. Kroger operates five milk processing plants in those regions.

Dean Foods Losing Producers, Field Staff in Southeast (p. 3):
Intense anger over milk quality and butter fat testing has compelled about 140 dairy producers in Kentucky and Tennessee to turn in “quit notices” to Dean Foods – only a couple months after they’d started shipping milk to the company. Sources say Dean Foods will hold those producers to a 90-day period between announcing termination and actually leaving. Dean Foods’ efforts to establish its own milk supply in the Southeast are not going well, mainly because the company’s personnel and logistics are inadequate.

Dannon Gains Wal-Mart’s Private Label Yogurt from Struggling Dean Foods: French “Full Nelson?” (p. 3):
Early in 2010, French yogurt giant Dannon took away the huge, Wal-Mart private label yogurt business from Dean Foods. This move comes as Dannon is rumored to be studying Dean Foods for possible acquisition.

Kraft Starts Selling at CME, Cheddar Prices Drop Sharply (p. 3):
Here they go again … After years of using surrogates in CME Cheddar trading, Kraft Foods has emergedin recent weeks as an active seller at CME – and prices have dropped sharply.

Feature Story: Fonterra’s Long Tentacles Linked to U.S. Dairy Woes (p. 4-5):
In June 2008, a New Zealand dairy newspaper carried an article in which the head of Fonterra (NZ’s dairy export monopoly) bragged that his firm had netted $1.3 BILLION on $2.5 BILLION of gross sales in the U.S. in Fonterra’s prior fiscal year. The Milkweed provides more detailed history of Fonterra’s activities and political connections in the U.S. – all working towards President Obama’s proposed “Trans Pacific Partnership” trade agreement that would devastate U.S. dairy farmers with even more, cheap dairy imports. Beware! Read the full story here.

Vreba-Hoff Dairy Empire in Many Legal, Financial Troubles (p. 5):
The Ohio-based Vreba-Hoff dairy development empire – which for years helped Dutch farmers sell their holdings in Europe and then invest in big, new U.S. dairies – is entangled in a mountain of lawsuits. Vreba-Hoff main man Willie van Bakel looks like Bernie Madoff with gouda cheese on his breath!

Feature Story: IRS Form 990 Reveals Many Dairy Executives’ Salaries (p. 6-7):
This article is our “story of the month.” Want to get mad? Read about dairy promotion executives’ salaries at Dairy Management, Inc. and how the top eight executives averaged $450,000 per year with nearly $100,000 in non-taxable benefits! These guys have been living high on the hog while dairy farmers starve! Read all about it here.

Credit Scarce in 2010 for Dairy Producers (p. 7):
After last year’s financial fiasco that wiped out equity and reduced livestock values, there’s little room for bankers to extend any more loans to dairy farmers … just as spring planting season arrives.

Wisconsin Raw Milk Issue Burning Hot (p. 7):
Wisconsin is in a frenzy over the raw milk issue, as state regulators try to wipe out the practice and raw-milk activists fight back.

Producers Down-and-Up Ride: Share of Fluid Milk Dollar (p. 8):
Writer John Bunting details how dairy farmers’ share of the consumer’s dollar spent for fluid milk has declined over time. Milk producers have little market power, and thus suffer price erosion.

Rumor: Dannon Kicking Dean Foods’ Tires for Possible Buy (p. 9):
French giant Danone (“Dannon” in the U.S.) is studying Dean Foods as a possible acquisition. Dean Foods’ financial and operating situation is becoming desperate and the “Yuppie Textbook” dictates its time to find a sucker.

Terrible First Quarter Shaping Up for Dean Foods (p. 9):
Leaks coming from Dean Foods indicate that the company is lagging behind 2010 first quarter operating profit projections by several tens of millions of dollars. That fact, when it comes out to financial analysts in late April/early May, will not inspire stock prices upwards.

Antibiotic Resistant Microbes: Tiny Critters Cause Big Trouble (p. 10-11):
Writer Paris Reidhead starts a long, science-based, discussion of the roles that widespread, non-therapeutic use of antibiotics in livestock and poultry raising, leads to emergence of drug-resistant bugs that can harm human health.

Haitian Relief: Letter to the Editor … (p. 11):
Wisconsin farmer John Malcheski, who has visited Haiti a dozen times while working with a local charity that helps plant trees, slow down soil erosion, and help stimulate local food production, discusses what kind of assistance Haiti really needs to stand on its feet as a nation.

Family Farmers Call New USDA Organic Pasture and Livestock Rule a Victory for Fair Play (p. 12):
Will Fantle, co-director of the Wisconsin-based Cornucopia Institute, details how USDA’s new organic pasture rules for dairy and beef animals, will result in a much more fair environment for family-size, organic farms.

US Dairy Cattle Replacement Prices (p. 13):
Except perhaps for short-bred heifers, demand and prices for U.S. dairy livestock are down.

USDA Mandating “European Somatic Cell Limits” For U.S. Farm Milk Made into Exported Cheeses (p. 13):
The incompetents at USDA strike again! In late January 2010, with virtually zero advance notice, USDA’s Agricultural Marketing Service informed low-level personel at cheese plants that farm milk supplies had to be monitored for European-style SCC counts in order to legally export cheese to EU nations. USDA/AMS wanted those rules implemented on January 26, 2010! An industry-wide furor has delayed implementation at least until October.

GAO Report: MPC Not Legal Food Ingredient (p. 13):
Recently, the government accountability Office issued a report on the failure of the Food and Drug Administration, during the Bush administration, to honor “Citizen’s Petitions” submitted to FDA. As part of that report, GAO noted that Milk Protein Concentrate is NOT a legal food ingredient, because that dry dairy protein has never been subjected to mandatory safety protocols.

Cheddar, NFDM Prices Nose-Dive; Will Cause Big Drop in Farm Milk Prices (p. 14):
Pete Hardin analyzes the dairy commodity scene. It’s ugly.

Emergency Actions Needed ASAP (p. 15):
Pete Hardin details emergency actions that are needed by USDA to avoid complete financial chaos in dairy country this spring. Those recommendations include: emergency purchases of hamburger by USDA to sustain cull cow markets; emergency loans for spring planting and fieldwork; and a $18.00 Class 1 floor price to boost producer income; with all revenues derived from higher fluid milk prices shared equally by all farmers in the federal milk order program.

Nov.-Dec. Retail Cheese Sales Gains Lower, Retail Fluid Milk Sales Turn Negative (p. 15):
Retail cheese sales during the past three months showed gains, but reduced gains. Meanwhile, fluid milk sales turned negative during the November 2009 - January 2010 period (compared to year-ago data).

Opposition’s Analysis: Continuing rBGH War (p. 16):
Rick North, project director for the Oregon Chapter of the Physicians for Social Responsibility, provides an update on the ongoing battle between consumer groups and (now) Elanco, over use by dairy farmers of Posilac – the synthetic hormone veterinary drug that boosts injected cows’ milk volumes. North details the continuing stream of factual misrepresentations emanating from Elanco and that company’s surrogate hirelings.

February 2010 Issue No. 367

Inside this month’s issue...
Don’t Believe Projections of Normal 2010 Milk Flow (p. 1):
USDA tells us that 2010 farm milk output will be virtually the same as 2009’s. Class III futures for 2010 are dropping at the CME, on word of “more heifers.” Pete Hardin contends that this nation is on the verge of a severe milk supply crisis, as many factors from 2009 – poor quality grain and forages, poor herd maintenance, and poor milk prices – all hit home in 2010.

January 2010 Class III Price $14.50 – January Class IV $13.85 (p. 1):
The numbers tell it all. February 2010 Class prices in USDA’s federal milk order program will decline based on lower nonfat dry milk and whey values.

OUCH! NFDM Export Deal Collapses; Prices Follow (p. 2):
In early January 2010, a big export deal for nonfat dry milk collapsed. The marketer – California Dairies, Inc. – dumped the product on the market, and nfdm prices collapsed by $.25 per pound in two weeks.

USDA Dairy Advisory Committee: No Meeting Scheduled Yet (p. 2):
Yoo-hoo, Tom? Anybody home??? USDA’s Secretary Vilsack has not yet informed members of his Dairy Advisory Committee when and where they’ll first meet.

CME Plans Cheese Futures Trading by Mid-2010 (p. 2):
Why? The Chicago Mercantile Exchange will start monthly trading in non-deliverable cheese futures, sometime in mid-year. More gambling toys for dairy.

Texas Dairymen Tell Bank – Take the Cows, But Bank Waits Three Days: Many Cows Die (p. 2):
This mess makes a little tail-docking video seem downright pretty. Hundreds of cows at two dairy farmers in Texas died, after two “flying Dutchmen” called their bank from the airport, telling the bank to take the cows. The bank didn’t move for three days. Many of the untended animals died, the rest were fit only for immediate slaughter.

Feature Story #1 – Dairy Breeding Impaired by Energy-Short Diets, Farm Finances (p. 3):
Word on the farm and in the artificial insemination industry is that a dairy livestock breeding crisis is unfolding in the U.S. – particularly in the eastern third of the nation – from Texas to Wisconsin and east. Read our first story of the month here.

When Severe Adverse Weather Hammers Dairy, Impact Felt Most Dramatically in Following Year (p. 3):
When weather crises impacts crops, the impact on milk production is usually felt the NEXT year. That was the lessons from the 1988 Drought in Wisconsin.

What’s Up? No New Nominees for National Dairy Board (p. 3):
USDA Secretary Tom Vilsack is four months late appointing the next round of 12 directors to the National Dairy Promotion board. Word is the White House wants better representation for minority groups.

NZ Trans Pacific Trade Deal: Doom for U.S. Dairy Farmers? (p. 4):
President Obama’s proposed Trans Pacific Free Trade Deal would let in dairy imports from New Zealand (and other countries whose dairy products NZ markets) into the U.S. without barriers. Such a trade deal, if completed, would hammer already-suffering U.S. dairy producers.

Feature Story #2 – California’s “Cheddar” Yields (13.7 lb./cwt): Huge Scandal (p/5):
John Bunting reports on how suspiciously high Cheddar cheese yields in California raise serious questions about the use of Milk Protein Concentrates to fortify cheese vats. Read our second story of the month here.

2009 Cheese Records Include Huge “Spreads” Beyond Farmgate (p. 5):
Writer John Bunting details farm-to-processor and farm-to-retailer “spreads” for 2001-2009, showing how those spreads reached their ever-biggest margins in 2009. Somebody made a lot of money in 2009 on dairy products … and it wasn’t the dairy farmer!

Chipotle Tracking Cheese Supply-Chain Back to Farm (p. 6):
A unique, three-way effort involving the Chipotle Mexican Grill Restaurants, Meister Cheese (Muscoda, WI) and Scenic Central Milk Producers Co-op has worked out a dairy livestock treatment protocol sought by the restaurant chain.

Supreme Court Will Hear Monsanto’s GM Alfalfa Appeal (p. 7):
A federal judge’s injunction against sales of Monsanto’s genetically-modified (GM) alfalfa will go all the way to the U.S. Supreme Court. What’s unique about the GM alfalfa, it’s the first perennial crop that was approved by USDA.

More GHG Insight: “Moo-thane” not the Worst Problem (p. 7):
Writer Paris Reidhead details other methane sources (bubbles on the ocean bottom of the Caribbean) and dairy manure handling issues to reduce Green House Gas production.

Feds & States Sue Dean Foods: Take Apart Foremost Farms Acquisition (p. 8):
Pete Hardin analyzes the January 22, 2010 legal complaint filed against Dean Foods by the U.S. Department of Justice’s Antitrust Division and three states’ attorneys general offices. The complaint seeks to disallow the April 1, 2009 acquisition by Dean Foods of the Consumer Products Division of Foremost Farms.

How DOJ Antitrust Lawsuit vs. Dean Foods Came About … (p. 9):
Here’s the array of behind-the-scenes events that came together to spur the antitrust lawsuit against Dean Foods by federal and state officials. Pete Hardin credits Wisconsin’s U.S. Senators Russell Feingold and Herb Kohl, Feingold’s staff, Vermont Senator Bernie Sanders, federal Antitrust Division chief Christine A. Varney and her newly created food/agricultural unit … and The Milkweed.

Grade AA Butter Cash Markets: Up & Down (p. 10):
Writer John Bunting takes a close look at the CME Grade AA butter markets for during the first five weeks of 2010. More funny business …

Animal Abuse Video at NY’s Willet Dairy Shocks Nation (p. 11):
John Bunting writes about some of the other sordid events that have taken place at the mega-dairy in Central New York where the “Mercy for Animals” video showing tail-docking was filmed. Call the place a cesspool with cows.

Retail Cheese Strong, Fluid Milk Sales Drop (p. 11):
The last quarter of 2009 featured continued strong retail sales of cheese (+5.3%) above year-ago figures. But fluid milk sales declined 0.1% below the last quarter data for 2008.

NAIS Not “Abandoned,” NAIS is Mandatory (p. 12):
Mary Zanoni details the facts behind USDA’s recent smokescreen that claimed the department was backing off demands that the National Animal Identification System continue. In fact, as Mary demonstrates, USDA continues to require mandatory animal ID for all farms participating in USDA animal health programs, such as Brucellosis, bovine TB, scrapie, Coggins Disease, etc.

Dairy Cattle Replacement Prices … (p. 13):
Ouch. Springing heifer prices are down about $150 per head in the U.S. during the past month. The decline is progressively worse, going from east-to-west.

Federal Judge Dismisses Nonfat Dry Milk Misreporting Lawsuit (p. 13):
On February 8, 2010, federal judge Anthony W. Ishii dismissed a complaint filed in March 2009 against DairyAmerica and California Dairies, Inc. The lawsuit alleged that dairy farmers whose milk was priced by federal milk orders during 2006 and 2007 lost large volumes of revenue due to acknowledged misreporting by the defendants. OUCH.

Milk Powder Prices Collapse; Butter Up & Down; Cheddar Stable (p. 14):
As always, the dairy commodity scene continues to be a puzzle in progress. In January 2010, milk powder prices collapsed. Butter suffered an up-and-down cycle, and Cheddar held reasonably firm in cash market trading at the Chicago Mercantile Exchange.

“Wait ‘til the year after the year after next year …” (p. 15):
Pete Hardin rips into the “free-trade” mentality in dairy, as reflected in a recent report advising dairy farmers to “hang in there” until 2013, when a big boom in export demand is anticipated. Baloney. Hardin tracks how virtually every U.S. agricultural recession/Depression of the past century is linked to a run-up in prices due to big export demand – only to have those markets collapse and farmers lose their shirts.

“Trade Act” to Reform Flawed “Free Trade" Agreements, And Help Guide Future Trade Negotiations (p. 15):
A wide-ranging coalition of labor, farm, policy and religious groups has coalesced around companion bills in both the U.S. Senate and House of Representatives. Those bills would require comprehensive reviews of potential impacts – including food safety – before any further approval of new “free trade” deals involving the U.S. S0-called “Fast Track” presidential authority would be stripped away, allowing for a more democratic review of merits.

Controversy Over Pending Organic Livestock/Pasture Rules is HOT (p. 16):
Will Fantle of the Cornucopia Institute details how the long-running controversy involving pasture access for milking animals on organic dairy farms is coming to a boil. Rules are anticipated out soon from USDA, tightening up requirements for organic dairy animals to get specific volumes of grass from fresh pasture a minimum of 120 days per year.

January 2010 Issue No. 366

Inside this month’s issue...

Feature Story #1: What’s Ahead for Dairy in 2010??? (p. 1):
One of our stories of the month. Read it here.

2010: Milk Supply Will Sharply Decline, Raising Prices (p. 1):
Several factors—grain and forage quality, dairy farmers ceasing production, and tight finances/credit – will all conspire to drive down 2010’s U.S. milk production.

December 2009 Class III Price $14.98 – November Class IV $15.01 (p. 1):
Take a good look. Prices are heading down in January.

USDA/DMI Contract to Reduce Dairy’s Greenhouse Gas Output (p. 2):
USDA has contracted Dairy Management, Inc. to oversee a 25% reduction in U.S. greenhouse gas emissions by the U.S. dairy industry by 2020. The major emphasis will be to build methane digesters at all U.S. dairy farmers with 1000 or more milk cows. The Milkweed contends that such an effort is a waste of taxpayer funds and an environmental travesty.

USDA Announces 17-Member Dairy Advisory Committee (p. 2):
USDA Secretary Tom Vilsack has announced the seventeen dairy industry persons who will help USDA try to forge a long-range strategy for federal dairy policy.

Finally: USDA Issues Dairy Farmer Assistance Payments (p. 2):
At long last, dairy farmers finally received the DELAP emergency payments around Christmas.

Feature Story #2: Costs for USDA-Recommended Animal ID Package: $9,995 (p. 3):
With start-ups cost like this, what will government bureaucrats and their anointed corporate beneficiaries conjure up next? Read all about it here.

Kraft Sells Off Frozen Pizza Unit, to Raise Cash for Cadbury Takeover (p. 3):
Kraft Foods sold its frozen pizza unit to Nestle, in order to assemble cash for a hostile takeover of the British candy company, Cadbury. Logic behind Kraft’s move seems fuzzy.

“Milking the Street” at CME (p. 4):
Writer John Bunting has researched the Cheddar trading patterns at the Chicago Mercantile Exchange for 2009, with particular emphasis on the run-up and decline of block Cheddar prices in the fall and early winter.

Global Dairy Commodity Prices Remain High (p. 4):
In early January, according to USDA’s Dairy Market News’ global analysis, Cheddar at the dock in New Zealand is priced at $1.81 to $2.04 per pound. That range is $.40 to $.60 per pound higher than CME prices.

Wisconsin Gifts Foremost Farms $3.4 Million (p. 5):
In last-minute state budget negotiations last fall, Wisconsin State Rep. Jennifer Shilling (D-La Crosse area) snuck in a “lulu” that ended up with Foremost Farms being the only applicant for a $3.4 million dollar grant to expand cheese plant capacity. The line item was written specifically so only Foremost Farms could qualify for it.

Dairy Labor Costs Track Perfectly with Petroleum Costs (p. 6):
Writer John Bunting has researched the seemingly perfect correlation between farm costs for petroleum and labor all the way back to 1940. Labor costs are going up!

“Muscle Milk” … Not Cow’s Milk & Not Much Human Kindness (p. 7):
We see “Muscle Milk” in stores. Sounds great, until you look at the ingredients. Muscle Milk is not what the dairy industry thinks of as “milk.” But that hasn’t stopped the products owner from suing a wide range of companies that incorporate the world “milk” in their name.

Dairy’s Beef: No Respect at the Slaughterhouse (p. 7):
Max Thornsberry, D.V.M. (president of the board of R-CALF-USA, a ruckus-raising livestock producers’ organization), details why dairy beef is undervalued by slaughterhouses.

Dairy Manure Management & Methane Digesters … Green or Dirty Brown? (p. 8-10):
Writer Paris Reidhead explores the science behind producing methane from livestock manure and then burning the resulting gas to produce electricity. Each pound of methane burned produces 2.75 pounds of Carbon Dioxide – another bad greenhouse gas. Access this must-read report here.

Strong (+7%) Retail Cheese Trends Persist; Fluid Sales Slowing (p. 11):
The September-November 2009 period showed continued solid strength in retail cheese sales. For that period, retail cheese sales rose 7.0%. Fluid milk sales gains are slowing. That same period saw fluid milk sales rise only 0.3%.

Health Reform Legislation: Who May Be Exempt from Penalties for Failure to Obtain Insurance? (p. 12):
Writer Mary Zanoni reviews the complex matter of which persons, due to their long-term religious beliefs, may be exempt from penalties for failing to participate in the brewing national health care program.

Control Freak: Vilsack Increasingly Despised within USDA (p. 12):
USDA chief Tom Vilsack really has the troops scratching their heads, wondering at his control fetishes. Example: employees at USDA’s federal milk order program cannot talk to reporters. Apparently, agency-wide, Vilsack doesn’t want anyone except “talking heads” to talk to the media … and make sure Vilsack gets credit for all good deeds.

Dean Foods/DFA “Smoke Peace Pipe” Over Milk Supply Squabble (p. 13):
Dean Foods and DFA have settled their squabble over milk supplies. DFA milk going to a dozen-plus Dean Foods plants is now being invoiced by Lone Star Milk Producers, effective January 1, 2010. Three months ago, Dean Foods had told DFA, “You’re outta here!”

Cheddar Block Prices Collapse Just Prior to Christmas (p. 14):
Our commodity watch focuses on the price collapse of block Cheddar just prior to Christmas. Block Cheddar prices collapsed about $.30 per pound.

We Can’t Afford to Repeat 2009 (p. 15):
Pete Hardin details what went wrong in 2009 and what concerned dairy persons need to do to make 2010 a much better year.

Methane Digesters: Dirty Brown Scam (p. 15):
Pete Hardin rips into the foolish waste of money and pending environmental disaster at hand, if USDA proceeds with plans to build methane digesters on every dairy farm with 1,000 or more milk cows.

A. J. Bos Wins Courtroom Battle to Build IL Mega-Dairy (p. 16):
California dairy impresario A. J. Bos won the legal battle against neighbors trying to block construction of a mega-dairy in Jo Daviess County, Illinois. Bos is proceeding with construction. Plaintiffs are plotting their appeal of the case.

December 2009 Issue No. 365

Inside this month’s issue...

Obama Proposes Trans-Pacific Partnership ‘Free Trade’ Deal (p. 1):
Just what U.S. dairy farmers don’t need! On his mid-November Asian trip, President Obama announced an effort to create a Trans Pacific “Free Trade” deal. Bad news. We don’t need New Zealand getting a free shot at our dairy product markets.

Bureaucrats Delay Emergency Payments to Producers (p. 1)
Where’s the money? USDA’s bureaucrats in Washington, D.C. are to blame for severe delays in getting emergency federal payments to dairy farmers. One farmer was told by personnel at his county Farm Services Agency that the “Dairy Economic Loss Assistance Program” was the worst mess ever seen at USDA.

November 2009 Class III Price $14.08 – November Class IV $13.25 (p. 1):
Manufacturing class milk prices in the federal milk order keep moving up, but not high enough.

Astronomical Cheddar Pricing Gap at CME: Block-Barrel “Split” (p. 2):
At press time, there was a 24-cent difference between the cash market prices for Cheddar blocks and Cheddar barrels at the Chicago Mercantile Exchange. What’s going on? Production of 500-lb. Cheddar barrels is exceeding consumer demand for processed cheese. One industry guru claims many Kraft Foods’ processed food products do not contain cheese.

Why No Cheese in Kraft “Singles”??? (p. 2):
The Milkweed went shopping at the supermarket and bought two American cheese processed products marketed by Kraft: “Deli Deluxe” and “Singles.” Deli Deluxe is Kraft’s top-shelf sliced product, and lists “American cheese” as the first ingredient. But Kraft’s “common fare” – “Singles”—does not list cheese as an ingredient.

Another Big Inventory Error: USDA Drops American Cheese Stocks (p. 3):
John Bunting details how, once again, USDA personnel have screwed up, big-time, on a critical survey of dairy industry data. In November, USDA announced that had wrongly “presumed” inventories of American cheese at four warehouses. Those errors averaged 18 million pounds of American cheese (including Cheddar) each of the first eight months of 2009. That’s roughly 140 million pounds, cumulatively. In other words, USDA had guessed wrong in what amounts to ONE-QUARTER OF THE NATION’S AMERICAN CHEESE RESERVES.

January 2010: DairyAmerica to Revise Nonfat Dry Milk Pricing (p. 4):
Starting in January, DairyAmerica – the nation’s milk powder cartel – will revise its pricing system so buyers may chose to lock-in prices. Some see the as benefiting the industry. Others are skeptical. Accompanying articles not that DairyAmerica is losing membership and that DairyAmerica did not bid on a recent offer to purchase milk powder from Algeria.

“Farm to Processor Spread” for Cheese Grows Ever Wider (p. 4):
John Bunting details how, since January 2008, the “spread” (difference between farm value and retail value) of cheese has grown by 100X!!! Somebody’s making money on cheese.

Dairy Credit Crisis: Part One (p. 5):
John Bunting takes a long look at the nation’s credit crisis.

Dairy Credit Crisis: Part Two (p. 5):
John Bunting starts poking around some of the financial fiascos that have dairy farmers’ shorts in a knot. The Farm Credit system is taking a beating on dairy.

Huge Idaho Dairies Sue Co-op, Claiming Fraud on 2007-2008 $13.35/Cwt. Fixed-Price Contracts (p. 6):
Talk about a bad deal! In late 2006, two of Idaho’s largest dairies (Aardemas and Bettencourts) individually signed two-year, fixed-price contracts with their cooperative, Northwest Dairy Assn. (now Darigold). That price was the best the co-op could do, the producers were told. Those farmers lost all of the “good times” of milk prices in 2007-2008. They’re suing the co-op.

Dean Foods’ Butter Plant On-Line soon at Nashville, TN (p. 6):
Dean Foods will soon start up a critical, “missing link” in dairy processing system: a butter-plant at Nashville, Tennessee. This plant will go a long way towards helping Dean Foods balance its milk supply, as the firm moves to build its own raw milk supply.

Sen. Specter Wants Dairy Promotion Accountability (p. 6):
Pennsylvania’s U.S. Senator Arlen Specter has written a long letter to USDA, demand key information about dairy promotion programs.

2009 Grain Harvest Headaches Threaten World Food Security (p. 7):
A failure of the U.S. grain harvest – particularly corn – threatens global food security, in Pete Hardin’s analysis. The U.S. was supposed to have its second-largest corn harvest in history. But a significant small percentage was still standing in the fields, with the first blizzards hit the Midwest and Plains. Many quality issues (molds/toxins) are being found in the corn that was picked. Lack of plant maturity, due to an unduly cold growing season, raises questions about the nutritional value of much of the 2009 U.S. corn crop that’s been picked and stored.

Feed Quality and Livestock Health Issues: You Can Run But Not Hide (p. 8):
Writer Paris Reidhead discussed specific quality issues facing livestock owners feeding 2009 corn to their animals.

GMO Corn: Greater Mold/Toxin Problems (p. 9):
Writer Paris Reidhead enters the early stages of considerations that genetically-modified corn is far more susceptible to mold and toxin contaminations. The core of this question is HUGE.

Dean Foods Coming up Short on Self-Procurement (p. 10):
Dean Foods is failing to attract the volume of independent dairy farmers the firm needs to supply a dozen-plus fluid milk plants in the Southeast and Mid-East. Problems about at Dean Foods, starting with a newly-arrived “Pepsi Generation” of management that doesn’t know a teat canal from the Erie Canal. Dean Foods’ pay offers to producers are too cheap and one-sided.

Strong Growth Continues for Retail Sales of Cheese & Fluid Milk (p. 10):
The latest, 13-week survey of retail computer check-out scanner data shows continued strong sales for both cheese (+7.4%) and fluid milk (+1.9%), compared to year-ago data. Dairy’s spectacular sales gains in supermarket purchases tell a tremendous story: changing U.S. families’ food habits as they shift towards far more home-preparation of meals.

Organic Integrity Issues Coming to Center Stage (p. 11):
Will Fantle of the Cornucopia Institute – the organic watchdog organization – explains two big items: #1 – USDA has de-certified Promiseland Livestock – the major supplier of organic dairy heifers to factory-style dairies. Promiseland failed to comply with USDA dictates to turn over records; #2 – A recent “friend of the court” brief submitted by the Organic Trade Assn. (OTA—a front for “organic” big-boys) was paid for by Organic Valley, a farmer-owned cooperative based in Wisconsin. One more time, Organic Valley has been caught playing footsie under the table with the big boys!

Mexican – NZ Connection: MPC Tariff Loophole Tied to Senator Larry Craig (p. 11):
Last month, in The Milkweed’s analysis of the “Mexican Loophole” in NY Senator Charles Schumer’s bill to slap tariffs on imported Milk Protein Concentrates, we found that such a measure originated six years earlier in legislation proposed by Idaho’s toe-tapping U.S. Senator, Larry Craig. Where does Craig get his motivation? Perhaps $48,000 in political contributions paid to Craig between 2000 and 2006 by Altria – the parent firm of Kraft Foods—helped Senator Craig defang this legislation.

36 Year Ago, “Flanigan Report” Proposed Selling Out U.S. Dairy Farmers with Imports (p. 12):
We review the ancient history of how, on April 12, 1973, Minnesota senator Hubert Humphrey laid bare, on the Senate floor, the Nixon administration’s secret “Free Trade” plan that would have traded off large volumes of U.S. cheese and butter demand for other trade concessions. The parallel with Obama’s proposed “Trans Pacific” proposal is positively exiting.

Dairy Cattle Replacement Prices at Auction Markets across the USA (p. 13):
Prices for #1 Holstein springers are up about $100-150 per head during the past month or two. But money is tight for many dairy producers who would like to add animals.

DOJ/USDA Announce 2010 “Competition Workshops” Details (p. 13):
In 2010, the U.S. Departments of Agriculture and Justice will hold joint hearings on competition issues in U.S. agriculture. For dairy, the workshop will be held on June 7, 2010 in Madison, Wisconsin. See you there!

Block Cheddar & Nonfat Powder Tight; Barrel Cheddar Supply Excessive (p. 14):
Too little block Cheddar, too much barrel Cheddar. Supplies of nonfat dry milk are very, very tight, currently.

Let’s chat … (p. 15):
This story is our “Article of the Month.” Click here to read.

New Zealand Milk Flow Falls Way Below 2008-2009 Levels (p. 16):
USDA’s Dairy Market News reports, in its December 10, 2009 analysis, that New Zealand’s farm milk production is off to a slow, disappointing start: down about 3.9% for the first few months of the current pasture season (which begins in our mid-late summer). New Zealand marketers had naively imagined that their island nation would rebound (from last year) with an eight percent milk production gain. Needless to say: global dairy commodity markets are tight and virtually all of New Zealand’s manufactured dairy products are committed to buyers. We also include Dairy Market News’ “global dairy commodity price ranges” but define them in terms of U.S. dollars per pound (low and high end of the reported price ranges).

November 2009 Issue No. 364

Inside this month’s issue...

Feature story: “Upper Teens” (Cwt.) U.S. Farm Milk Prices Ahead, IF … (p. 1):
See our story of the month here.

October 2009 Class III Price $12.82 – October Class IV $11.86 (p.1):
Slowly the federal milk order manufacturing prices creep up.

Employee Share of Darigold’s “Risk Management” Profits: $18 Million Bonuses (p. 2):
Somebody’s making money! Earlier in 2009, the directors of Darigold – the predominant dairy co-op in the Pacific Northwest – fired the co-op’s Chief Financial Officer after he shared in a formula-based, $18 million bonus – his share of the co-op’s “risk management” earnings. Did Darigold’s position as a big seller of block Cheddar earlier in 2009 help Darigold gain profits from settling its dairy futures/options positions at CME?

USDA Trying to Pay $290 Million to Dairy Farmers by Year’s End (p. 2):
The check is … somewhere around here! USDA hopes to get the $290 million in payments out to dairy farmers by year’s end. Maybe farmers can pick up the checks on the same trip to town as when they get their H1N1 Swine Flu shots!

Dean Foods Starts “Growing” Own Milk Supply (p. 3):
Dean Foods’ representatives are scouring the country in the Mid-East and Southeast, soliciting dairy farmers to ship direct to the firm. But Dean Foods’ pay price offers are somewhere south of “cheapo.” Watch for a big scramble for milk and some sharp elbows where Dean Foods is chasing farmers.

Southeast Dairy Co-op Marketing Agencies Pondering Response to Dean Foods’ Moves (p. 3):
What are the Southeast dairy “superpools” going to do to respond to Dean Foods’ moves? One possibility: cut premiums in the region to zero.

Southeast Marketing Chaos Could Spread: Possible Danger to Other Regions’ Superpools, FMMOs (p. 3):
The “Southeast disease” could spread to other regions of the country. If Southeast dairy superpools (or Dean Foods) kick out the struts, the industry could see collapse of regional common marketing agencies in other regions, and perhaps demise of some federal milk orders. Chaos ahead, likely.

Land O’Lakes CEO’s Pay Totaled $6.7 Million in 2008: Up 237% in Two Years (p. 4):
Omigosh! Land O’Lakes CEO Chris Policinski saw his total compensation for 2008 climb to $6.727 million dollars. That’s an increase of 237% in just two years. LOL’s top five executives all enjoyed 100%+ compensation gains in that same time.

LOL Screws Up: Shortage of Retail 1/lb. Butter in Quarters (p. 4):
With LOL executives enjoying 100% compensation increases in the past two years, you’d think those bozos could do something right! Currently, a shortage of one-pound retail packages of butter cut into quarters afflicts the nation. Why? Because LOL didn’t keep enough equipment on line to keep the supply pipeline full! The pre-Thanksgiving to Christmas season is the busiest retail butter sales period of the year.

Developments in the Dairy Antitrust Scene … (p. 5):
The Milkweed offers an in-depth analysis of current events in the dairy antitrust scene. Only in The Milkweed …

CME Cheddar Pricing: Too-Powerful a Dairy Price Signal (p. 5):
John Bunting details how CME Cheddar cash market pricing is too powerful a signal for dairy.

NFDM Again (p. 6):
Here we go again! Writer John Bunting details how weekly NASS prices for nonfat dry milk submitted to USDA are $.30+ cents per pound below spot markets. Is there another nonfat dry milk pricing scandal brewing?

Idaho Irony: Less Milk, More CME Cheese Sales (p. 7):
A large volume of Cheddar sold at the Chicago Mercantile Exchange have come from Idaho is 2009. Why does Idaho have extra cheese? Milk production is down in the state. Cheddar sales are strong, nationwide. Why all the sale of Idaho-based Cheddar?

Low-Flying Dairy Farmer’s “Good Neighbor Policy” (p. 8):
Read the remarkable story of Steve Holesinger. He has only been milking cows for one and a half years, he’s selling raw milk to consumers in northwestern Illinois … and obtaining $63 per cwt. for his milk. But Steve’s former career in avionics leaves him uniquely prepared as the “aerial surveillance officer” for a neighborhood group fighting a proposed siting of a 5,000-6,000 cow dairy across the road from Steve’s farm. Illinois’s smallest farmer fights against the dreams of California dairy empresario A. J. Bos to become Illinois’ biggest dairy farmer!

H.O.M.E.S. vs. A. J. Bos – Trial Starts November 23 (p. 9-10):
Early Thanksgiving week, a trial starts in Galena, Illinois that pits neighbors fighting plans for Californian A. J. Bos to impose mega-dairy farm in their community. Objections: what kind bedrock lies underneath Bos’ half-built site? And what about the streambed that appears to have been built upon by Bos’ contractors? We show a lot of the background.

CROPP Will Take Over HP Hood Organic Producers’ Marketing (p. 11):
On January 1, 2010, CROPP (Organic Valley) will take over milk marketing for independent dairy producers who have been selling their milk to HP Hood. Lots of questions raised here …

New E-book Details FMMO “Gaming” …(p. 11).
A former USDA milk order employee has spilled the beans on dirty dealings in milk regulation in a new electronic book titled, “Corruption in the USDA.” Interested? Go to the following Web site: http://www.lulu.com/product/download/corruption-inside-the-usda/5636387

USDA: Eliminate Pesky Citizen TB Program Input; Cram Down NAIS (p. 12).
Writer Mary Zanoni details USDA’s latest effort to shut off citizen input on issues related to the National Animal Identification System. USDA is proposing new livestock tuberculosis rules that end-run the federal Administrative Procedures Act. Why? To remove citizen participation from rule-making that brutally enforces mandatory national animal identification programs.

2009 Crop Quality: A Mixed Bag (p. 13):
Writer Paris Reidhead details the many considerations about crop quality, following a tough weather year in many parts of rural America.

Nonfat Dry Milk & Butter Supplies Tight; But Mucho Barrel Cheddar (p. 14):
Pete Hardin offers a wide-ranging perspective on the dairy marketing climate right now. Nonfat dry milk and butter are very tight. But the industry is awash in barrel Cheddar. Looks like a lot of foreign MPCs are being used to make “Cheddar” in the U.S. Numbers for U.S. milk volume and amounts of dairy products being made from that milk simply do not add up.

Without Much of a Push, Consumers’ Retail Dairy Purchases Skyrocket (p. 15):
The U.S. dairy industry is seeing the greatest-ever shift in consumer purchasing and use habits. Retail sales of cheese are up over five percent for 2009. In recent months, fluid milk sales are up 2.5%. What’s happening? People are engaged in more home-prepared meals. They’re buying cheese and fluid milk and yogurt for home use. Trouble is: except for the Wisconsin Milk Marketing Board’s cheese promotion efforts, little effective dairy promotions are being conducted to effectively push these fast-developing consumer trends. Hardin urges some old fashioned solutions – dairy-heavy recipes (for a new generation of consumers), coupons, emphasis on taste and nutrition!

Fatally Flawed: Schumer MPC Tariff Bill Exempts Mexican Imports (p. 16):
Earlier, we’d hoped that S.1452 (the “Milk Tariff Equity Act”) sponsored by U.S. Senator Charles Schumer (D-NY) would help put a stop to the imports of cheap, foreign dairy proteins (milk protein concentrates). But review of that bill shows a loophole that exempts Mexico. What with free-trade deals between New Zealand/Mexico, and “transshipment” trickery, Schumer’s bill is worthless. That loophole dates back to a 2003 bill sponsored by infamous Idaho Senator Larry Craig (“tap your foot three times if you want me”). Following Craig’s footsteps on MPC issues is a big, big mistake.

October 2009 Issue No. 363

Inside this month’s issue...

U.S. Milk Prices: No Place to Go But UP (p. 1): See our “story of the month #1.”

Dean Foods, DFA Warring Over Milk Supplies (p. 1): See “story of the month #2.”

September 2009 Class III Price $12.11 – September Class IV $11.15 (p. 1):
Milk prices in USDA’s federal order program are FINALLY starting up. The Milkweed projects that current dairy commodity prices “lock in” about $1.75/cwt. more increase in the Class III price for the coming two months.

USDA to Allocate Sander’s $350 Million for Dairy: $290 Million to Producers, $60 Million Gov’t Cheese Buys (p. 2):
A political log-jam that dammed up allocation of a $350 million budget item destined for dairy farmer price relief has been cleared. Based upon a budget measure driven through the U.S. Senate by Vermont’s Bernie Sanders, USDA will allocate $290 million in direct payments to dairy producers. Another $60 million will purchase cheese.

Gamblers Making Big Money in Dairy Futures/Options Betting (p. 2):
One company reports spectacular returns on investment ($546.5% in 2007) by betting on dairy futures/options. They’re soliciting investors, at $50,000 a pop. So far in 2009, the return on investment is only 25.38%. Creepy.

Grupo LALA Buys NJ’s Farmland Dairies (p. 2):
Mexico’s largest fluid milk processor – Grupo LALA – continues to grow in the U.S. Latest purchase: Farmland Dairies (Wallington, NJ).

Massive Northeast Antitrust Lawsuit Hits DFA, DMS, Dean Foods & HP Hood (p. 3):
A private antitrust lawsuit has been filed against Dairy Farmers of America, Dairy Marketing Services, Dean Foods and HP Hood alleging that those firms unduly reduced competition (and prices) for farm milk in the Northeast. Big stuff!

Cheese (+5.7%) & Fluid Milk (+2.3%) Continue Spectacular Retail Growth (p. 3):
The headline says it all: for the 90 days ending September 2, retail sales of cheese and fluid milk continued their spectacular growth spurt.

MPC Imports Vary According to Currency Values (p. 4):
Writer John Bunting reports on his research showing that during the past year, months in which high levels of MPC imports were reported also coincided with high values for the U.S. dollar vs. the New Zealand dollar. Conclusion: MPC imports are not about “dairy processing efficiency,” they’re about money.

CWT’s Latest Scheme: $.25/Cwt. Mandatory Assessment on All Milk (p. 5):
In September, details leaked out regarding National Milk Producers Federation’s latest scheme: try to make CWT a mandatory federal program with a twenty-five cent per hundredweight deduct from all dairy farmers. Who’d get the money? NMPF, of course!

Hard Times on the Farm: Lessons from the Loss of Section 22 (p. 5):
Today’s crisis of dairy protein powder imports traces back to the Uruguay Round of the World Trade Organization in the mid-1990s, when the U.S. gave up “Section 22” – tariff protection against imports harming domestic agricultural support programs. MPC – which was not recognized in the mid-1990s – started hitting our shores shortly after the U.S. dropped its protection.

Vermont’s U.S. Senators, DOJ Antitrust Chief, Discuss Dairy Competition (p. 6):
On September 19, the U.S. Senate Judiciary Committee held a field hearing in St. Albans, Vermont. Subject: Competition in the Northeast Dairy Industry. The state’s two U.S. Senators – Patrick Leahy and Bernie Sanders – vented their concerns. Leahy imported Christine A. Varney – head of the Antitrust Division of the U.S. Department of Justice. On pages 6-7, The Milkweed quotes extensively from this high-powered trio’s remarks.

USDA “Commercial Disappearance” Data Miss Class II Milk, Chocolate (p. 7):
“Supply and demand” supposedly rules the U.S. dairy industry. But writer John Bunting’s research shows that USDA’s “Commercial Disappearance” data DOES NOT INCLUDE CLASS II MILK (YOGURT, ICE CREAM, SOUR CREAM AND COTTAGE CHEESE. How can USDA estimate the nation’s dairy “supply/demand” when failing to account for an array of products that total about 12% of all farm milk use in the federal milk order system?

Dean Foods Dumps DFA as Milk Supplier from Dozen+ Plants (p. 8):
Dean Foods has notified that DFA will not be the raw milk supplier in about 14 milk plants, starting in January 2010. Dean Foods is seeking its own farm milk supply for selected plants in the Southeast, Mid-East and Northeast regions.

Spat Won’t Impact Antitrust Cases’ Progress (p. 8):
Milk supply wrangling between Dean Foods and DFA will have no impact on the combined antitrust cases in the Southeast, in which Dean Foods and DFA are major defendants. If anything, plaintiffs’ lawyers like to see the two tussling.

Wide-Ranging “Ripple Effects” from Dean Foods’ Moves (p. 9):
The Milkweed examines some of the fallout from the Dean Foods/DFA milk supply spat, including: possible demise of DFA, collapse of multi-regions’ fluid milk superpools, and possible demise of federal milk orders.

DFA’s Borden Cheese Using MPC! (p. 9):
Borden Cheese, a wholly-owned subsidiary of Dairy Farmers of America, uses Milk Protein Concentrate as an ingredient in Borden’s “Grilled Cheese Melts.”

R-CALF USA’s President Details Many Dangers of NAIS (p. 10):
Max Thornsberry, DVM, writes about the three elements in USDA’s plants to register movement of all livestock from birth farms to … wherever. This guy knows his stuff!

Horizon Organic: No Help Wanted (p. 11):
We take a look at some of the foolishness that goes on in organics.

Maryland Shoppers Warned of Organic Milk “Shortages” (p. 11):
On October 1, shoppers at a Safeway supermarket in Annapolis, Maryland were warned of supply shortages for organic milk. WHAT???

New Organic Factory Farm Dairy Complaints Being Investigated: Change in the Wind at the USDA’s National Organic Program (p. 12):
The “new” USDA is showing much more curiosity about complaints regarding violations of organic dairy standards by “factory-style” organic milk producers. Further, the appointment of Miles McEvoy to head USDA’s National Organic Program is viewed as a positive change. McEvoy’s predecessor had too-cozy a relationship with lobbyists and big food processors.

Elanco Touts Posilac® “Safety” (p. 12):
The new owner of Posilac®, Elanco, has issued a new report detailing claims of “safety.” This report is refried, Monsanto-style baloney.

What’s Wrong with Mandating Higher Fluid Milk Solids Standards (p. 13):
Pete Hardin explains some comments from the September 2009 issue in which he opposed mandatory imposition of higher non-fat milk solids standards for beverage milk.

Nonfat Milk Powder Tight: Plenty of “Cheddar”* (p. 14):
Our dairy commodity analysis shows milk powder supplies tightening dramatically. Whey prices and butter prices are rising globally – to levels not expressed in commodity prices in the U.S. … yet. Plenty of cheese in warehouses, but one must wonder how much of that product is actually cheese that complies with FDA’s standards of identity.

More than a one-horse hit needed to pull us out of this mess (p. 15):
We discuss the range of major dairy issues confronting dairy, and note that mere farm milk quotas and “cow-killing” programs won’t let us get a handle on dairy imports. Farm milk supply management is just one “horse” in a four-horse hitch that must also include import controls, Antitrust enforcement, and modern milk pricing.

“Specter-Casey” Dairy Bill Now S. 1645 (minus Casey) (p. 16):
The so-called “Specter-Casey” dairy bill in the U.S. Senate has again been renumbered – to S. 1645. Senator Casey is no longer a co-sponsor. Specter has said he will not push the legislation.

Cargill Develops Non-Dairy Cheese Substitute (p. 16):
Cargill has developed a non-dairy, soy-based pizza cheese substitute that it will soon sell in Europe. No thank you, Cargill.

September 2009 Issue No. 362

Inside this month’s issue...

Milk Tight Everywhere But in Upper Midwest (p. 1):
Headline says it all. In all regions of the U.S. except the Upper Midwest, milk supplies are very, very tight. Cool summer weather has helped prop up summer milk volume in Wisconsin and Minnesota.

August 2009 Class III Price $11.20 – Class IV $10.38 (p. 1):
Class prices for manufacturing milk are creeping up in USDA’s milk pricing scheme. But those prices have a long way to go before dairy producers can turn black ink.

Credit Availability: Next BIG Dairy Farm Crisis (p. 2):
The next crisis facing dairy farmers is obtaining and/or maintaining credit. Banks lending to dairy farmers are in a panic, as red-ink operations and equity deterioration have slammed dairy farmer borrowers. Watch out for many more foreclosures on dairy farms in coming months.

Vilsack Seeking Nominations for Dairy Advisory Board (p. 2):
USDA is seeking nominations for a 15-member “advisory board” to help the Secretary forge better dairy policy options. Who’ll be on the board?

“Reverse Flow”: Kansas/Oklahoma Milk Shipped to Needy California Plants (p. 2):
Hard to believe … but big dairies in western Kansas and Oklahoma are sending their milk to California, where manufacturing plants are desperate for milk.

May-July Retail Sales Solid: Cheese +5.8%, Fluid Milk +1.9% (p. 3):
Retail sales data for the 13 weeks ending August 2, 2009 show continued solid growth in both cheese and fluid milk sales.

European Commission Dairy Price Investigation (p. 3):
Why have consumer fluid milk prices at supermarkets in England remained so high? The European Commission wants to find out. After they’re done over there, they could continue their digging in the U.S.

MPC – A Story of Control (p. 4-5):
Writer John Bunting takes a long look at the arguments opposing the notion that Milk Protein Concentrates are not the cause of low farm milk prices.

Fonterra WMP Auction Up Dramatically Again (p. 5):
Fonterra’s early September auction of whole milk powder showed another increase – up 24.2%! That gain follows a 25% increase in the early August WMP auction. Global dairy commodity prices are rising.

Milk Check Scheme: Dairylea Employee Stole $595,000 (p. 6):
Cheryl Nelli, an employee of Dairylea Co-op, diverted nearly $600,000 of co-op funds to her personal financial accounts during the period 2002-2009.

UW-Madison Caves in to Systemic Ag Carnivores: Stifling Michael Pollan’s Book, “Omnivore’s Dilemma (p. 6):
The book selected from a search among 100 titles for a campus-wide reading/discussion – Michael Pollan’s “Omnivore’s Dilemma,” was dumped by the UW-Madison chancellor’s office following complaints from agriculture groups and the UW ag school dean.

Senate Dairy Bills Would Halt Flood of Cheap Milk Protein Imports (p. 7):
Two bills currently introduced to the U.S. Senate would help dairy address the milk protein imports problem. Those bills are “The Quality Cheese Act of 2009” (S. 666 – introduced by Wisconsin’s Russell Feingold) and “The Milk Import Tariff Equity Act” (S. 1542 -- introduced by New York Senator Charles Schumer.)

Transcript of August 20 NPR Dairy Antitrust Broadcast (p. 8-9):
The Milkweed, reprints in its entirety, a transcript of the long broadcast about dairy antitrust that was carried on August 20, 2009 by the National Public Radio news program, “All Things Considered.”

Sept. 10: Big Court Date for Southeast Dairy Antitrust Cases (p. 9):
Two key issues were aired on September 10, 2009 in the combined antitrust cases in the Southeast. Issues at hand: objections to the judge’s order to publicly open all documents, plus certification of classes.

NMPF’s Kozak Should Resign (p. 10):
The accumulation of years of actions against dairy farmers’ interests by National Milk Producers Federation (the dairy co-op lobby) should propel CEO Jerry Kozak on to his next employment. The skids under Kozak are being greased.

Quality Hay Scarce in Northeast, Upper Midwest (p. 10):
Unusually wet weather during the late spring and much of the summer leaves quality, dry hay in scarce supply over two key dairy regions of the country – the Northeast and the Upper Midwest. Come winter, quality hay will be expensive.

Excerpts from Southeast Dairy Antitrust Case Documents (p. 11):
We reprint key documents from a recent document filed in the combined Southeast Dairy Antitrust cases that lays out reasons why plaintiffs’ lawyers believe that all documents should be made public. Powerful stuff!!!

Ruminants + Grazing Can Help Reverse Desertification (p. 12-13):
Paris Reidhead digs into the research explaining how loss of ruminants grazing has contributed to deterioration of drylands into deserts. As usual, Paris presents readers with solid food for thought – and makes a good case for ruminant agriculture.

Dairy Cattle Replacement Prices at Auction Markets Across the U.S. (p. 13):
Not much change in dairy livestock prices around the country. In the Southeast, most springing heifers are being transacted in “barter” transactions.

Cheddar Prices Rise, Fall: Support Price or Demand??? (p. 14):
Cheddar and nonfat dry milk prices have increased over the past few weeks at the Chicago Mercantile Exchange. But are factors driving those increases related to supply-demand or USDA’s dairy support price increase?

Feature Story: Good Ideas/Bad Ideas (p. 15):
Click here for our “Story of the month.”

ISGA Releases Final Report on Karst Under Mega-dairy (p. 16):
We seldom reprint press releases. But this story from HOMES – a group of neighbors fighting against a California dairy operator’s plans to dump a mega-dairy in their back yards – is compelling. Sophisticated testing of bedrock formations at the site of A. J. Bos’ proposed mega-dairy just west of Nora, Illinois shows karst bedrock all over the site, including under the locations of manure storage ponds.

August 2009 Issue No. 361

Inside this month’s issue...

Dairy Farmers’ Price/Equity Crisis Continues (p. 1):
The table is being set for improved farm milk prices: milk supplies are tightening in the west, consumers’ retail purchases of cheese and fluid milk are spectacular, and USDA’s temporary dairy product price support increase is also helping raise commodity prices at the Chicago Mercantile Exchange. But so far producers have seen no improvements in their milk checks. In a wide-ranging survey of current dairy events, Pete Hardin analyzes that U.S. dairy farmers have lost about $7 billion in milk income for the first six months of 2009 and have lost about $12 billion in livestock equity values since October 1, 2008.

July 2009 Class III Price $9.97 – Class IV $10.15 (p. 1):
Enough said.

USDA Announces Three-Month Dairy Product Support Price Increase (p. 2):
At the end of July, USDA announced a three-month increase in prices paid for surplus dairy commodities. This move is a short-term band-aid, but dairy producers will take any extra money they can get right now.

USDA/DOJ to Hold “Agricultural Competition” Workshops in 2010 (p. 2):
These two federal departments will hold joint, public workshops on agricultural competition issues in 2010. This announcement is another sign that the Obama administration wants to take a stronger view of antitrust issues in food and agriculture.

Gillibrand Wants MILC Boost (p. 2):
NY Senator Kirsten Gillibrand has offered two bills into the U.S. Senate that would revise USDA’s farm milk price “safety net” (the Milk Income Loss Contracts, or MILC). She proposes doubling the amount of payments to producers (to 90%), making those 90% payments retroactive to March 2009, and adjusting the MILC price calculator for inflation.

California Block Cheddar Yields Defy Legal Explanation (p. 3):
In 2007, California’s cheese plants producing 40-lb. block Cheddar saw their cheese yields grow by 1.2 pounds – up to 13.7 pounds per hundredweight of milk in the cheese vat. However, farm milk protein content in 2007 in California actually decreased a tiny fraction (compared to 2006). And less nonfat dry milk was used in cheese manufacture that year. These facts beg the questions: what proteins are in those cheese vats to boost yields? And how can much of that “Cheddar” be legal?

Biggest MPC Danger May Lie Ahead! (p. 3):
Now that dairy commodity prices are heading up, the greatest danger to milk price improvement may be continued, illegal use of Milk Protein Concentrates in cheese making.

Crunch Times: “Golden State” Milk Output Declining Rapidly (p. 3):
Look for USDA’s July 2009 milk production data for California to show a big decline.

“Articles of the month” #1: Click here to view all four stories in this first set of “articles of the month.”
* Vermont Senator Bernie Sanders Targets Dean Foods, Dairy Antitrust (p. 4)
* Senators Seek Antitrust Scrutiny of Dean Foods (p. 4)
* Letter to DOJ Requesting Antitrust Investigation of Dean Foods (p. 5)
* Dean Foods Announces Big Profits for April-June 2009 Quarter: $64.1 Million (p. 5):

Credit Shortage Sparked Sales of Surplus NFDM to CCC (p. 6):
John Bunting details how shortage of credit to major dairy co-ops, not “surplus,” sparked sales of nonfat dry milk to the Commodity Credit Corporation last fall and winter.

Competition Has Put $$$ In Wisconsin Farmers’ Milk Checks (p. 7):
John Bunting contrasts “mailbox prices” in Wisconsin and New York State, and demonstrates how Wisconsin dairy farmers fared better, price-wise, even though that state has far less Class I (fluid) use. The difference? Competition for raw milk.

Fast Cheddar Price Increase? Beware of “Depooling” in FMMOs (p. 6):
If Cheddar prices spark big gains in federal milk order prices, the danger of “depooling” lurks. “Depooling” is removal of Class III (cheese) milk from a month’s federal order revenue pool, when a price inversion occurs. In other words, when cheese milk prices are higher than fluid milk prices.

“Article of the month” # 2: Imports. Imports. Imports. U.S. Dairy “Surplus” – A Complete Lie (p. 8-9):
View this big story here.

Senator Charles Schumer Bill to Fix Tariffs on MPCs, Casein (p. 9):
New York’s U.S. Senator Charles Schumer has proposed import tariffs on Milk Protein Concentrates and Caseins.

Chinese Demand + South American Problems = Tight Global Soy Supply (p. 10-11):
Writer Paris Reidhead analyzes the global soy situation, detailing how increased Chinese demand and crop problems in Argentina have combined to make the global soy supply tight.

Spectacular April-May Retail Sales: (Cheese +7.1%) & Fluid Milk (+1.%) (p. 11):
Retail sales of cheese and fluid milk continue spectacular sales performance during the April-June 2009 period.

National Mil Producers, Big Ag Groups Stand to Profit from Proposed “Animal Welfare” Fix in Michigan (p. 12):
Michigan’s legislature is on the verge of passing a law dictating that dairy farmers must follow animal welfare guidelines developed by the National Milk Producers Federation – a Washington, D.C. dairy co-op lobby. Trouble is: NMPF hasn’t yet even finalized those guidelines!

Dairy Cattle Replacement Prices (p. 13):
Slightly better interest in springing heifers has increased prices in some markets by $100-200 per head. Prices for baby calves are down – reflecting future perceptions of heifer prices.

Dean Foods Paid $35 Million for Foremost Farms’ Consumer Products Division (p. 13):
According to Dean Foods 10-Q statement filed on August 6, the company states it paid $35 million for an unidentified acquisition for its fluid milk division on April 1, 2009. That’s the same day that Dean Foods announced purchase of the consumer products division of Foremost Farms, a Wisconsin-based dairy co-op.

Dairy Commodity Prices Increase, USDA June 2009 Data Suspect (p. 14):
Pete Hardin analyzes trends behind recent dairy commodity price increases. He notes a huge disconnect between June 2009 milk output data from USDA (showing a –0.1% decline) with significant increases in all forms of dairy usage: fluid milk, cheese production, butter production, and nonfat dry milk production. Goofy data.

New Voices/Ideas vs. Same Old “Stuff” (p. 15):
Pete Hardin discusses some of the “new” voices involved in trying to improve dairy, and contrasts their ideas with the “same old stuff” proposed by the big dairy co-ops and other “mega-interests.”

Russ Feingold and the “Quality Cheese Acts”: A Brief History (p. 15):
A few Wisconsin legislators, like U.S. Senator Russell Feingold, have been trying for nearly a decade(!) to clean up the integrity of cheese through federal legislation, by banning use of MPCs in “cheese.”

Vilsack: Changes in Works at National Organic Program (p. 16):
Will Fantle, with The Cornucopia Institute, details comments by USDA Secretary Vilsack at an organic milk price “rally” near La Crosse, Wisconsin in late July. Vilsack promised to enforce the law in organic dairy production. That’d be a change from USDA’s historic failure to enforce “pasture access” rules for organic mega-dairies.

CWT Paid $4.9 Mil. in Interest + $3 Mil. Overhead (p. 16):
CWT’s financial records, available on the internet, show how last year the organization paid $4.9 million in interest and amassed overhead totaling $3 million. Why is CWT, with income of about $10 million per month, borrowing in the range of $100 million?

July 2009 Issue No. 360

Inside this month’s issue...

Needed: New Practices and Policies, Not Bigger Band-Aids (p. 1):
Click here for our first “story of the month.”

June 2009 Class III Price $9.97 – Class IV $10.22 (p. 1):
As bad as those prices are, they’ll probably be a bit worse in July.

Money & Cash Flow Woes Abound in Dairy Country (p. 2):
Six months+ of milk prices several dollars below costs of production leave no money and few positive emotions on America’s dairy farms. Many dairy farmers’ finances and emotions are right at the brink of collapse. Dairy livestock prices and farmland values are pulled down by the farm cash flow crunch.

Late Summer/Early Fall Corn Silage Purchases Will Make or Break Many Big Dairies (p. 2):
Want to pick one event that will signal whether dairy farms (especially larger ones that rely on purchased feed inputs) will live or die? In late summer and early fall, ability to purchase corn silage from contractors will determine such farms’ fates. Contractors must be able to see payments, before they chop corn stands for silage for dairy farmer neighbors. Otherwise, they’ll let the stands mature for ear corn. Without recharged adequate stocks of corn silage for over-winter feeding, dairies cannot continue very long.

Critics Charge New USDA Rules Will Kill U.S./State Dairy Promotions (p. 3):
Click here for our second “story of the month.”

Organic Dairy Producers Told to Cut Back Production (p. 4):
Organic dairy markets are in chaos. Several big buyers have instructed producers to restrict raw milk marketings, because demand has declined from historic 15-20% annualized gains down to a modest decline. Contracts are being torn up, producers are being dumped out of markets.

March-May 2009: Spectacular Gains for Retail Cheese & Fluid Milk Sales (p. 4):
For the 90-day period ending May 31, 2009, retail sales of cheese and fluid milk showed spectacular gains (compared to year-ago data). Cheese sales arose 5.1% and fluid milk sales climbed 1.2%. What “dairy surplus?”

“I’d love to pet a cow!” (p. 5):
Warwick, New York dairy farmer Tunis Sweetman, Jr. details how he hosted 50 employees of the food purchasing section of New York City school system for a tour of his farm. The city folks loved their tour … and the questions flew both ways.

California’s 2007 Block Cheddar Yields 13.7 Pounds/Cwt. (p. 6):
John Bunting uses data from California’s Department of Food and Agriculture to reveal that California plants producing 40-lb. block Cheddar in 2007 averaged astronomical yields of 13.7 pounds per 100 lbs. of farm milk. Under normal, legal practices, such yields are impossible. What’s going on? Funny business in the California cheese vats that’s yielding undue quantities of Cheddar cheese!

Farm to Supermarket: Price Transmission Failure (p. 7):
John Bunting details how the “spread” between farm milk prices and consumers’ fluid milk costs virtually doubled from January 2008 to May 2009. Somebody’s making a lot of money by not passing through to consumers the lower milk prices that farmers are being paid.

NMPF’s Jim Tillison Prevaricates: Says Imported MPCs No Problem (p. 7):
The head of the CWT program – Jim Tillison – recently claimed on a radio interview that imported MPCs are not a factor in low milk prices being received by U.S. dairy farmers. There is no U.S. milk surplus.

June 2009 “All Milk Price” at 25% of Parity (p. 7):
Writer John Bunting details how dairy farmers’ milk prices in June 2009 equaled 25% of “parity” – a long-running measure of relative purchasing power.

Sexed Semen Technology Could Turn Dairy Upside Down (p. 8):
Writer Paris Reidhead presents an overview of “sexed semen” technologies. Additional heifers gained from farmers using “sexed semen” presents what looks like a tidal wave of heifers waiting to come into the milking string in the coming year.

Dairy Cattle Replacement Prices at Auction Markets across the USA (p. 9):
In one word: bad. #1 springing heifers are down to $900-$1100 per head, with extreme tops at $1300. In the Southeast, virtually no market exists for dairy animals.

Dairy Commodity Picture Basically Unchanged (p. 10):
‘Nuf said.

U.S. a “deficit milk producing nation” since 1996 (p. 11):
Pete Hardin lays out USDA’s “commercial disappearance” numbers since 1990. The data shows that starting in 1996, U.S. consumers have used more dairy products than U.S. dairy farmers have produced. Dairy “surplus” is a myth. Low milk prices are victim of dairy imports – used specifically to keep down big dairy processors’ costs.

Courts Consolidate CME Manipulation Lawsuits vs. DFA (p. 12):
Five separate lawsuits filed against Dairy Farmers of America, following DFA’s $12 million penalty assessed by the Commodities Future Trading Commission in December 2008, have been consolidated into a single case in the federal district court in Chicago. Good news: the courts deem these complaints valid enough to go to trial.

Camerlo Angrily Defends DFA’s CME Price-Fixing, Imports (p. 12):
If DFA board chairman Tom Camerlo were a real dairy farmer, his comments would be laughable. Camerlo, the “playboy of the western dairy industry,” recently wrote a nasty letter to a small farm organization (the National Family Farm Coalition), complaining that DFA was being unfairly criticized for its price-manipulations at the Chicago Mercantile Exchange and importing dairy products. Camerlo said that DFA “only” imported a million pounds of dairy products last year. The Milkweed kicks Camerlo in the keister, puzzling how a man who, over the years, has owned a ski resort, a liquor distribution business, a car dealership and part-ownership in a bank, can claim to represent dairy farmers!

June 2009 Issue No. 359

Inside this month’s issue...

Dairy Farmers Facing No Good Way Out (p. 1):
After six months of ruinous milk prices, U.S. dairy farmers face some very difficult decisions about their future. But deteriorated dairy livestock values are now in decline, making the option of selling the herd a financially painful one. One auctioneer in the Southeast is advising: don’t schedule a herd sale until at least September.

Vilsack: U.S. Agriculture “Incredibly Prosperous” (p. 1):
In late April, USDA Secretary Tom Vilsack wrote a letter announcing nine NAIS “listening sessions” around the country. Vilsack’s first sentence in that letter stated, “The United States has an incredibly prosperous agricultural industry.” Does Vilsack know anything about current farm economics?

May 2009 Class III Price $9.84 – Class IV $10.14 (p. 1):
Self-explanatory.

USDA Posts New DEIP Export Subsidies, Stirring Global Complaints (p.2):
USDA has announced a new round of dairy export subsidies, through the Dairy Export Incentive Program. Foreign dairy nations are crying “foul.”

USDA Ignored Inquiries to Buy 200 Mil. Lbs. of Surplus Milk Powder (p. 2):
Earlier this year, a Tennessee-based businessman had lined up export buyers for all of USDA’s surplus milk powder. USDA paid no attention to this request to move all that product out of the country and into international feeding/nutrition programs.

Private U.S. Marketers “Locked Out” of DEIP Powder Sales? DairyAmerica & Fonterra Look Like Prime Beneficiaries (p. 2):
The latest USDA dairy export incentives will basically “lock out” many private exporters from nonfat dry milk exports. That’s because the U.S. milk powder “cartel” – DairyAmerica – will sell no milk powder for export except to its partner in crime, New Zealand-based Fonterra.

Angry Western Dairy Farmers Pull Back from Milk Dumping Plan (p. 3):
A group of western dairy farmers – including some of the nation’s largest producers – backed off from a planned, two-day, milk-dumping to protest low milk prices. The group has strongly urged California’s major dairy co-ops to develop strong restrictions on how much milk farms may market.

Grupo LALA Paid $435 Million to DFA for NDH (p. 3):
Mexico’s largest fluid milk processor – Grupo LALA – paid $435 million to Dairy Farmers of America in the May 2009 purchase of National Dairy Holdings. The Milkweed urges DFA members to find out if DFA sold future raw milk supplies to Grupo LALA on an el cheapo basis.

USDA Releases Details for “Dairy Import Assessment Fee” – Dairy Farmers Will Be Mad (p. 4):
USDA’s newly released proposed rules for the “Dairy Importers Assessment Fee” are out … and they’re goofy. What’s wrong? Our National Dairy Board may no longer promote “U.S.-produced” dairy products! Dairy importers may set up their own promotion program! Importers pay only half the amount assessed U.S. dairy farmers! And importers may get a full refund of promotion assessments!

Dairy Importers Plotting to Create Own “Qualified Program” (p. 4):
Money attracts. The Cheese Importers Association of America (CIAA) is already plotting to set up its own dairy promotion “qualified” program, under rules for assessing dairy imports recently released by USDA.

Fonterra’s Financial Position Has Eroded Dramatically (p. 5):
The dairy export giant – Fonterra – is New Zealand’s biggest corporation. Down under, analysts are watching a serious erosion of Fonterra’s financial wellness. Fonterra’s equities have eroded from $4.5 billion to $3.8 billion over the past seven years.

Fonterra Netted 52% on U.S. Sales! (p. 5):
The New Zealand press has reported (in June 2008) that Fonterra netted $1.3 billion on $2.5 billion in U.S. sales in a recent fiscal year. Is Fonterra pulling an offshore tax scam? Nobody makes that much money … unless something untoward is going on.

Strong NZ Dollar Hurts NZ Farmers’ Incomes (p. 5):
The strong value of the New Zealand dollar is hurting efforts by Fonterra to export dairy products and return a good pay price to New Zealand dairy producers.

DOJ “Relooking Foremost/Dean Foods Deal (p. 6):
A key test of antitrust oversight is shaping up early in the Obama administration: the April 2009 sale of Foremost Farms’ consumer products businesses to Dean Foods. That deal – approved by DOJ – leaves virtually zero competition for school milk contracts in eastern Wisconsin. Sources indicate that DOJ is relooking its earlier approval of the deal, which occurred before the new head of the Antitrust Division was appointed.

Did Dean Foods Pay $35 Million or $90 Million for Foremost Farms’ Consumer Products Division? (p. 6):
Dean Foods’ 10-Q statement filed with the Securities and Exchange Commission on May 1, 2009 lists two subsequent purchases of dairy processing businesses that occurred early in the second quarter. Those unidentified purchases are listed at $35 million and $90 million. Which purchase was for Foremost Farms’ fluid milk business???

Feature Stories: DFA Joint Venture Sells “Cheese Replacers and Extenders” & Jan.-April ’09: Massive Increases in Milkfat-type Imports (p.7)
Read our two June feature stories here.

El Paso Kids Paid Dearly for School Milk in 2007-2008 (p. 8):
When the local competition ceased bidding for school milk, Dean Foods’ subsidiary in El Paso, Texas (Price’s Creameries) jacked up the base price for school milk half-pints by almost 12 cents.

Breakdown of El Paso School Milk Costs: Dean Foods Didn’t Pass Through All Milk Cost Reductions (p. 8):
We offer a breakdown of El Paso Independent School District’s month-by-month school milk costs for the 2007-2008 academic year. Despite contractual language, Dean Foods’ local subsidiary did not pass through contractual reductions that occurred during the 2007-2008 school year.

Texas Dairies Use Aquifer Water for Irrigating Alfalfa (p. 9):
Sustainable? Green? The big new cheese plant at Dalhart, Texas has spurred development of local dairies that require a massive draw from aquifer ground water to grow alfalfa. Texas is making lots of milk. But is the draw down of aquifer water a reasonable use of that depleting resource?

Synthetic Sweeteners: Ticking Medical Time Bombs (pages 10-11):
Writer Paris Reidhead finishes his two-part series on the human health concerns related to artificial sweeteners. He cites scientists’ reports and human health anecdotes. Reidhead’s focus on this issue is because two big dairy lobbying organizations want to allow “non-nutritive sweeteners” in the standards of identity for 17 different dairy products.

Scandal Fuels Meltdown in Organic Dairy Industry; Farmers Seek Justice form Obama, USDA; Consumers Headed Back to Court (p. 12):
The Cornucopia Institute’s Will Fantle updates the ugly picture facing many organic dairy farmers. A judge has dismissed the lawsuit filed by Cornucopia, among others, against Aurora Organic Dairy. That lawsuit had claimed that Aurora’s numerous, documented violations of USDA’s organic standards meant that Aurora’s fluid milk was not “organic.” The judge disagreed.

Connecting the Dots: No U.S. Surplus (p. 12):
John Bunting takes a look at USDA’s “commercial disappearance” data for 1990 to the present, and concludes that since 1996, the U.S. has consumed more dairy products than it has produced. We’re a “milk-deficit” nation.

Commodity Prices at CME Show No Spark (p. 13):
Few favorable trends at the Chicago Mercantile Exchange’s cash dairy commodity markets.

Dairy Cattle Replacement Prices (p. 14):
Except for baby calves, U.S. dairy livestock prices are dropping. Top-end Holstein springers are bringing not much more than $1500 at auctions and private-treaty sales.

Weather and Crops – Look Out for Soybeans Shortages (p. 14):
John Bunting takes a look at weather forecasts, USDA’s crop progress reports, and marketers’ analyses to conclude that soybeans could be very short later this year.

Time for overdue changes (p. 15):
Pete Hardin lets fly with his ideas about what dairy (and government) must do to restore a profitable, sound dairy industry. Hardin sees the need for using consumer prices paid for cheese and fluid milk as one basis in a completely revised federal dairy program.

NAIS: a losing proposition (p. 15):
Hardin’s opinion: USDA’s National Animal Identification System is a completely foolish endeavor, best killed. Many of our worst food-safety fiascos have come from imported foods – even the “Jack in the Box” hamburger contamination back in the early 1990s.

Farmers to USDA Secretary: Ditch NAIS (Is Vilsack Listening?)(p. 16):
Writer Mary Zanoni summaries results from seven of the nine USDA “listening sessions” conducted in May 2009. Roughly 90% of persons commenting at these meetings spoke against NAIS. The notion of “computer-chipping” food producing animals (and horses) is apparently a directive from the United Nations and USDA is promoting this bone-headed scheme for compliance with global “Free Trade” rules.

May 2009 Issue No. 358

Inside this month’s issue...

Stories of the Month: Dean Foods Pocketed Big First Quarter Raw Milk Price Drop (p. 9) and What to do ... (p. 15)

Many U.S. Dairy Farms on Verge of Financial Collapse (p. 1):
Losing several dollars per cwt. for several consecutive months is a prescription for financial disaster. Despite many positive events in the dairy market place, the warehouses are full of cheese in the Midwest and Cheddar cash prices at the Chicago Mercantile Exchange lie near support prices. The nation’s ability to produce adequate milk supplies to feed its citizens is imperiled.

Fonterra: Huge Milk Protein Sales to China (p. 1):
Fonterra – New Zealand’s dairy export monopoly – has announced a huge sale (160,000 metric tons) of dairy protein powders, which should basically empty Fonterra’s warehouses by July. China is back in the world market.

April 2009 Class III Price $10.78 – Class IV $9.82 (p. 1):
Farm milk prices stay ugly.

1st Quarter Supermarket Sales Strong: Fluid Milk +0.9%, Cheese +1.7% (p. 2):
First quarter (Jan.-March) 2009 data shows strong gains for both fluid milk sales and cheese sales at supermarkets (excluding Wal-Mart). Consumers are coming back to dairy.

“Cheez Whiz” from Philippines Detained Again (p. 2):
The FDA detained imports of Kraft Foods’ “Cheez Whiz” at the Port of Los Angeles. The “Cheez Whiz” was made in the Philippines and was not properly labeled. Thank you, Kraft Foods!

MPC Imports Go Sky-High in Early 2009 (p. 3):
Milk Protein Concentrate imports entering the U.S. in January-February 2009 totaled 29.166 million pounds – an increase of 71% over the first two months of 2008. MPC imports are bumping demand for U.S.-produced nonfat dry milk adding to “cheese” production beyond U.S. farm milk production gains. Small wonder warehouses in the Midwest are brimming full of cheese. MPC has never been approved for use in human foods by FDA’s mandatory food safety tests.

NFDM Price Collapse = Big Processors’ Windfall Profits (p. 3):
Some firms made a lot of money off the farm milk price collapse that allegedly was caused by loss of some U.S. milk powder exports. John Bunting estimates that net losses in farm income (due to lost milk powder sales, after subtracting out payments by the CCC for surplus powder purchases) totaled $250.9 million (“Export loss”). But U.S. dairy farmers lost $2.267 BILLION in milk income for January-February 2009. Bunting’s conclusion: big companies used the lost milk powder exports as a smokescreen to help drop prices and boost their profits.

“For Sale” Sign at Farmland Dairies (NJ) (p. 4):
One of the Northeast’s old-line fluid milk processors – Farmland Dairies (Wallington, NJ) – is for sale. It’ll be interesting to see who the new owner is.

DFA to Sell National Dairy Holdings to Mexican Firm (p. 4):
Dairy Farmers of America announced sale of its “white elephant” fluid milk subsidiary – National Dairy Holdings – to Grupo LALA (Mexico’s biggest fluid processor).

Cedar Grove Cheese Selling Well at “The Shoe Box” (p. 5):
A Wisconsin cheese plant has installed a cheese case inside a highly-trafficked shoe store. Results: lots of good Cedar Grove cheeses are being sold in this non-traditional outlet.

U.S. NFDM “Surplus” is Really MPC Import Tsunami (p. 5):
Writer John Bunting details dairy protein markets.

Aspartame: One Man’s Poison … Another Man’s Profit (p. 6):
Writer Paris Reidhead has prepared the first part in a series about the human health concerns and dangers regarding Aspartame (sold as “NutraSweet” and “Equal”). Why? Two big dairy groups want to include “non-nutritive sweeteners” (like Aspartame) as part of the standards of identity for 17 dairy products.

California Water Woes Will Impair Agriculture (p. 7):
John Bunting updates readers on California’s water woes, which will reduce agricultural productivity in the “Golden State.”

Big Lawsuit Filed against Dean Foods’ Directors, DFA, etc. (p. 8):
A huge, new legal complaint has been filed against Dean Foods’ directors, DFA, and other dairy entities. Allegations are that farmers’ milk prices have been unduly depressed and that consumers’ retail prices have been unduly high – all through concerted actions of the parties named in the lawsuit. Interesting!

Consumer Demand for Raw Milk Grows Steadily (p. 10):
A free-lance writer, Rosanne Lindsay, takes readers deep into the health benefits and health concerns that are spurring what may dairy’s fastest sector of growth – raw milk.

Holstein Assn. Takes Lead on Farm Milk Production Restraint Program (p. 11):
Dairy’s predominant cattle breed association – Holstein Assn. USA – is trying to build a groundswell of dairy producer support for a national change in milk marketing practices. Holstein Assn. USA leaders are preparing a legislative package that would mandate on-farm milk production restraint for U.S. dairy farmers.

Vilsack’s NAIS “Listening Sessions” Avoid Hotbed States (WI, MO, MI) (p. 12):
Activist/writer Mary Zanoni bares the avoidance mechanisms being used by USDA Secretary Tom Vilsack to try to paint a “happy face” on efforts to create mandatory “animal ID” rules. Vilsack has scheduled seven listening sessions across the U.S. – none near “hotbed” states where protests are strong.

Cheddar at Support Price; Sales Excellent, But Midwest Warehouses Full (p. 13):
Cheddar prices at CME hover near USDA’s dairy product support prices (per pound). Warehouses are full of cheese in the Upper Midwest. Dairy protein markets may strengthen, due to the big deal between China and NZ, and severe drought in the western U.S.

LOL to Close Huge Madison, WI Butter Plant (p. 14):
Land O’Lakes is closing its big butter plant at Madison, Wisconsin. Loss of this plant capacity will make it tougher for marketers of cream in the region.

Dairy Cattle Prices (p. 14):
Strongest demand in dairy markets is for open heifers. That’s good, because a lot of farmers are selling heifers to raise money. Springer prices “mostly” steady over past month, with variation in individual markets.

The Milkweed: 30 years and kicking … (p. 15):
Pete Hardin reflects briefly upon completing this publication’s 30th year. (I could write a book!)

China’s Dairy Processors Learning from Melamine Fiasco (p. 16):
British dairy analyst Richard Field – an expert on China’s dairy industry – recently spoke at the annual convention of the American Dairy Products Institute in Chicago. Field detailed how China is back in the global dairy markets, and that last year’s melamine scandal will actually help modernize attitudes and practices about food quality/safety for Chinese processors, consumers and regulators. Interesting!!!

S. 889: Cost of Production for Some (p. 16):
Writer John Bunting pans the recently created Senate Bill 889, which proposes a national cost-of-production calculation for dairy farmers. The bill was introduced by Pennsylvania Senator Arlen Specter ands has one co-sponsor (PA’s Bob Casey). Bunting’s major criticism: big variations in regional dairy farm costs of production would weight profitability towards some regions and not meet high-cost regions’ needs.

April 2009 Issue No. 357

Inside this month’s issue...

Many Indicators Point to Tighter Dairy Supply-Demand (p. 1):
Click here for our story of the month.

March 2009 Class III Price $10.44 – Class IV $9.64 (p. 1):
About the only good thing one can say is that the March cheese milk price in federal orders gained $1.13 over February’s low ebb.

Feb. 2009: Big Gains for Retail Fluid Milk & Cheese Sales (p. 2):
Data from IRI (a firm that monitors supermarket checkout scanner data) shows big gains in February 2009 for fluid milk and cheese sales. Fluid milk sales rose approximately 2.8% and supermarket cheese sales climbed 3.8%.

Repeated Software Failures Delay Most USDA MILC Payments (p. 2):
Desperate dairy farmers are still waiting for USDA to get its computer software working so county Farm Services Agency offices can issue “relief checks” through the Milk Income Loss Contract program. Two rounds of software have failed to work properly.

February ’09 MILC Payment $1.51/cwt. (p. 2)
‘Nuf said.

California Water Emergency to Curtail Ag Productivity (p. 3):
In early April, California basically concluded its moisture season with the snowpack moisture at 81% or normal and reservoirs at about three-quarters of capacity. A state-wide water emergency means dramatic curtailments of water for agriculture.

DFA Turns in “Quit Notice” to DairyAmerica (p. 3):
Dairy Farmers of America has submitted notice to quit membership in DairyAmerica (the milk powder cartel). The first big rat has donned its life preserver and is preparing to jump ship.

Dean Foods Buys Foremost Farms’ Consumer Products Division (p. 4):
School milk competition in Wisconsin will never be the same! Dean Foods – the nation’s largest fluid milk processor – has purchased the consumer products division of Foremost Farms (Baraboo, WI). The two firms WERE the two largest fluid milk distributors in Wisconsin.

School Milk Contracts: Key Measure of Competition (p. 4):
Pete Hardin explains how the sordid history of school milk contract bid-rigging once compelled the Antitrust Division of the U.S. Department of Justice to study school milk contracts as the critical portion of dairy merger/acquisition reviews.

Dean Foods’ Purchase of Foremost’s Fluid Division: One Anti-Competitive Acquisition Too Many??? (p. 4):
Did Dean Foods buy Foremost Farms’ fluid milk business at the wrong time? A new administration in Washington, and a soon-to-be confirmed head of the DOJ’s Antitrust Division, may bring far sharper focus to dairy merger reviews. With Wisconsin U.S. Senator Russell Feingold already chomping at the (dairy antitrust) bit, maybe the Dean/Foremost deal will get another, sharper look.

2008 DFA Audit: Same-Old, Same-Old “Stuff” (p. 5):
The financial audit released at DFA’s late-March annual meeting shows that “intangible assets” and other nebulous assets total $460 million. Throw in other major obligations (pension program deficit -- $107 million, retained earnings deficit -- $59 million, and “preferred equity securities -- $150 million) and you’ve got the nation’s biggest dairy co-op likely worth less than nothing.

Over Half of 100 Largest Dairy Processors “rbGH-Free” (p. 5):
Hallelujah! According to the Oregon chapter of the Physicians for Social Responsibility, over half of the top U.S. dairy processors (by $ volume) are now either partially or completely “rbGH-Free.”

Transfer Pricing: Global Giants “Stick It” to U.S. Dairy Farmers, Taxpayers with Help from USDA Import Rules (p. 6):
Huge quantities of dairy product imports entering the U.S. mask an equally serious problem to the U.S. Treasury – outflow of potential taxable income. This article explains how “Section 6.25” abets major foreign dairy traders’ ability to move U.S.-earned profits outside the country. Dairy is pinpointed as one of the biggest sectors of this tax shell game.

All USD Surplus Directed to Nutrition/Feeding Programs (p. 7):
In late March, USDA Secretary Tom Vilsack ordered that all 200 million pounds of U.S. nonfat dry milk that had been purchased as “surplus” by the Commodity Credit Corporation be committed to domestic nutrition and feeding programs. That move basically erases any “surplus” nonfat dry milk.

DairyAmerica’s Future? Uncertain … at Best! (p. 7):
Following a massive lawsuit directed at DairyAmerica’s failure to properly report commodity prices to USDA, Dairy Farmers of America’s notice to quit membership later this year means the first rat is jumping ship. The dairy industry is preparing for DairyAmerica’s long overdue funeral.

Global Milk Powder Prices Rising, Oceania’s Output Down (p. 7):
Fonterra’s monthly whole milk powder price auction saw increased prices – a good sign for global demand. Meanwhile, New Zealand’s milk production is running about four percentage points below projections for the concluding milk production season.

Retail Cheddar ($5/lb.) vs. Low Farm Milk Prices (p. 8):
Writer John Bunting details the continued divergence of prices paid by consumers for Cheddar cheese at supermarkets, with what dairy farmers are paid for Class III (cheese) milk. February 2009 was the worst month in history, Consumers paid nearly $5/lb. for Cheddar at supermarkets (according to the Consumer Price Index) while dairy farmers received roughly $.90 per pound for the protein and milk fat components going into that pound of cheese.

Dairy Cow Slaughter 129,000 Head Above Five-Year Average (p. 9):
Through mid-March, USDA calculated that nearly 130,000 more dairy cows had been sent to slaughter than for prior five-year average (2004-2008).

Massive Casein Imports – Stealth Milk (p. 9):
Writer John Bunting details how casein imports – just in January 2009 – equaled 700 million pounds of skim milk. USDA does not include casein when calculating its supply/demand estimates.

Details for CWT’s Next “Big Kill” (p. 9):
The schmucks who run National Milk Producers Federation have announced details to kill another 300,000 airy cows through their “CWT” program. Why is NMPF’s biggest member – DFA – importing foreign dairy products, if there’s a dairy surplus?

USDA: May 4 Producer-Handler Hearing in Cincinnati (p. 9):
What a farce! USDA will hold a national milk order hearing on May 4, 2009 in Cincinnati, Ohio on proposals to require producer-handlers (milking over about 270 cows) to pool all Class I sales on the federal milk order program. Such a hearing is a waste of time and resources, given all the problems facing the milk-pricing system.

CoPulsation Milking System Reduces Cow-to-Cow Transfer of Staph. aureus Infections (p. 10-11):
Writer Paris Reidhead writes about a controversial, small company that makes a unique milking system: CoPulsation Milking Systems. Cornell U. research documents that the company’s milking system almost eliminates cow-to-cow transfer of the dangerous Staph. aureus bacteria. Staph. aureus is the toughest mastitis bug facing dairy farmers. INTERESTING!!!

Family Farmers Fear Being Run Over by Food Safety Juggernaut. Organic, Local and Direct Marketers Seek Protections in Washington (p. 12):
Controversy surrounds various legislative proposals in Congress that aim to tighten up our nation’s food-safety oversight. Will Fantle, who’s with the Cornucopia Institute, details the background and controversies as Congress fumbles around on the issue.

Cheddar, Milk Powder Supplies Tighten, But Prices Stagnate (p. 13):
tronger retail demand for fluid milk and cheese has tightened manufacturing milk supplies. But dairy commodity prices have not really moved up very much … yet. Dairy Cattle Replacement Prices (p. 14): In recent weeks, prices for springing heifers have shot up nicely. In some markets, prices are up $300-400 per head in the past month.

USDA Crop Intentions Report Doesn’t Reflect Uncertainty (p. 14):
In late March, USDA issued its planting intentions report. Trouble is: government bureaucrats don’t pay much heed to tremendous financial problems and uncertainty (over prices and costs) for grain farmers as they prepare to plant this spring.

$9.90/cwt. Dairy Product Price Support: Public Policy of Failure (p. 14):
John Bunting raises the key question: is the $9.90/cwt. support price for dairy products a proper mechanism for supporting dairy farmers’ milk production costs? Answer: Absolutely NOT!

Cheese Milk Pricing: We’re using the wrong measuring tool (p. 15):
Pete Hardin lays out the numbers – showing that CME cash market-based dairy commodity pricing (that USDA uses for setting Class milk prices in the federal orders) is the wrong measuring instrument. With retail Cheddar prices at $5/lb., dairy farmers deserve better than the pittance they’re receiving through USDA’s manipulated milk pricing system.

NFDM/IDFA Want Aspartame in Milk Products (p. 15):
Dairy’s two biggest lobby groups – the National Milk Producers Federation and the International Dairy Foods Assn. – have requested FDA allow use of Aspartame (“NutraSweet”) in 17 different dairy products without notifying the public. THIS IS THE WORST FOOLISHNESS SINCE MONSANTO ROLLED OUT BOVINE GROWTH HORMONE! Aspartame is a neurological toxin!

Researchers Solve Flatulence Problems with U.S. Milk Powder Exports (p. 16):
Pete Hardin details how UW-Madison scientists have discovered that by adding a three percent solution of “Beano” to nonfat dry milk produced in the U.S., flatulence problems experienced by Asian and African persons using our milk powder may be relieved. The new product will be marketed as “Non-Fart Dry Milk.”

NYS Milk Price-Gouging Law Not Enforced (p. 16):
New York State law limits prices to how much supermarkets may charge for consumer fluid milk products, based upon the Class I (fluid) milk price in USDA’s milk order program, the size of the package, location of retailers, etc. Since late last year, NYS’ Agriculture & Markets overseers have quit taking retail studies. The agency claims it has no funds.

March 2009 Issue No. 356

Inside this month’s issue...

Dairy Marketing Situation: Imports Torpedo Good Demand (p. 1):
U.S. consumers’ food consumption habits are changing dramatically with the tough economic times: more meals eaten at home. That’s driving a shift towards increases in at-home cheese use and a visible, monthly slowing of the decline (on a percentage basis) of monthly fluid milk sales (compared to same month, year ago figures). BUT in the fourth quarter of 2008 (and since), dairy imports are flooding into the U.S. And those imports are helping create the appearance of more “surplus” milk powder than is really the case. Export sales of U.S. dairy products are also slowing.

February 2009 Class III Price $9.31 – Class IV Price $9.45 (p. 1):
We never imagined we would once again report such low, monthly class prices for USDA’s milk order program.

Incredible Surge of Dairy Cattle to Slaughter (p. 2):
During the first eight weeks of 2009, 112,700 more dairy cows went to slaughter than for the average of the previous four years. Massive dairy cow kill is ratcheting down milk output, in tandem with other factors.

Two Western Dairy Co-ops Facing Financial Irregularities (p. 2):
Two small dairy cooperatives in western states have seen managers depart amid concerns about the books. In northern California, the Humboldt dairy co-op held back $2 million from its 50 member-patrons in February, as protection against cash flow problems. (Do the math: That’s $50Gs per member!) And in Montana, around the beginning of the year, the manager of Darigold of Montana departed as press reports of possible irregularities with the books were being examined.

Dairy Producers Sue California Dairies, Inc. and DairyAmerica: Claim NFDM Price Misreporting Resulted in Milk Income Loses (p. 3):
See our “story of the month.”

Ron Kirk (U.S. Trade Representative-Designate) Earned $250,000/yr. as Dean Foods Director (p. 4):
“Free-Trade” kook Ron Kirk will hate to give up his board post at Dean Foods to take the post as U.S. Special Trade Representative. He’s been making nearly $250,000 year in that position.

Coalition Forming to Oppose FMMO Producer-Handler Changes (p. 4):
Phoenix, AZ-based lawyer Al Ricciardi is putting together a coalition of concerned dairy processors (and others) to fight against proposals before USDA to eliminate the producer-handler exemption for many dairy businesses that both milk cows and processing fluid milk. Ricciardi may be contacted at 602-248-8203.

By-Laws a Legal Trap: DON’T Sign CWT Contract (p. 5):
No wise person signs a contract without looking at the fine print. And the by-laws for the “Cooperatives Working Together” (CWT) program are strictly one-sided. Beware.

CWT Can’t Seem to Get Started (p. 5):
Since publication of this article, CWT officials have announced that they have reached their goal of 67% of the U.S. milk supply to obtain a $200 million loan to kill more cows. Not to be trusted.

Amid NY Milk Price Crisis, Dairylea President Clyde Rutherford Hiding in NJ (p. 6):
The herd at the dairy farm near Mt. Vision, New York – where Dairylea Co-op president Clyde Rutherford kept some cows so he could keep his name on a milk check – was removed. Dead animals littered the free-stall barn, atop several feed of accumulated manure. How much longer will Rutherford – a bewigged phony & the northeast dairy co-ops’ longest reigning leader – continue to claim he’s a “dairy farmer?”

Section 6.25 Dairy Imports Rule Would Favor Big Foreign Firms (p. 7):
Watch out for proposed changes in import rules that would force even more imports into the U.S.

DFA’s 2008 Dairy Import Licenses Revealed (p.7):
Dairy Farmers of America – the nation’s largest milk producers’ cooperative – held 12 dairy import licenses last year. How does that benefit DFA’s members? For what reason did DFA need to import “Butter Substitutes?”

Farm Milk Prices: A History of Manipulation (pages 8-10):
NY dairy farmer/writer John Bunting takes a detailed, historic perspective on farm milk pricing. He traces relative equity in dairy (among producers, processors and retailers) back to 1981 – at which time the Reagan administration decoupled farm milk prices from parity. Since then, it’s been all downhill for dairy farmers, in terms of their relative earning power.

Farm Milk Up, Fluid Milk Sales Down: Massive Shipments of Milk from Florida (p. 10):
Decreased fluid milk sales and increased milk volume during the past six to eight months has put Florida dairy marketings in a bind. Massive movement of burdensome milk supplies is moving out of state – in recent weeks, as much as 140 to nearly 200 loads per week.

Orbeseal (Dry Cow Treatment) Causes Defects in Aged Cheddar (p. 11):
Writer Paris Reidhead details how a veterinary treatment for "dry cows” (animals that have finished their lactation) causes serious quality defects in aged Cheddar cheese.

Microchips, Cancer, and Animal Identification (p. 12):
Mary Zanoni details the background on how Radio Frequency Identification Devices (RFID), when implanted in laboratory animals, caused numerous cases of cancers. She details how application of these devices to humans was short-circuited by cancer-causing concerns, so the industry turned to livestock!

NY Sen. Aubertine’s Bill: MPC & Casein “Not Dairy” (p. 12):
New York State Senator Darrell Aubertine has introduced legislation calling for removal of dairy identifiers from consumer food products which contain Milk Protein Concentrates and Casein.

Dairy Commodities Remain Flat (p. 13):
About the only good thing a person can say about CME dairy commodity prices is that they haven’t gone down in the past month!

Dairy Cattle Replacement Prices (p. 14):
Our monthly survey of dairy livestock prices shows some gains in prices paid for springing heifers in some markets, but that’s about all the good news.

Tough Questions for DFA’s Management at Annual Meeting (p. 14):
In an attempt to help DFA delegates focus on the real problems of their organization, we offer some questions to ask at the upcoming annual meeting in late March. “Business as usual” will mean that management tried to lacquer over b.s. and members sleep through the proceedings.

Ontario Milk Quota/Pricing Article Sparks Much Thought, Discussion (p. 15):
Pete Hardin ruminates on follow-up to the article about the large volume of responses to John Bunting’s article about Canadian milk pricing and farm milk quotas in the February 2009 issue. If the “American way” of milk pricing is these periodic, ruinous crashes, is there a better way?

Milk Production & Parity (p. 15):
John Bunting looks at U.S. milk production and dairy parity. He wants to dispel what John views as a myth that too-high farm milk prices (generated by late 1970s 80% of parity) generated burdensome milk supplies.

(More) Dairy Solutions (p. 16):
We continue to throw out ideas, including: *Dairy farmers should form guilds to regional guilds, to truly represent their interests in policy debates and industry matters. A guild could provide accurate information and leadership – two factors that currently are sorely lacking among organizations. *Let’s cut the CCC “make-allowance” for nonfat dry milk by $1.00/cwt. It’s currently $1.73 per cwt. That “make-allowance” (paid for by taxpayers) constitutes “double-dipping,” since processors of butter-powder already receive a similar “make-allowance” from federal/state milk orders. *Change Wisconsin’s producer-security program. Currently, Wisconsin’s agriculture department promises to secure producers’ income from handler default in a variety of sectors – dairy, livestock, grain, etc. Given all the financial pressures (including a possible financial collapse of a huge grain dealership), The Milkweed argues that the state should shift from guaranteeing payment of lost farm income (in the event of a default) to merely offering a low interest (1%?) loan for three years to tide over producers’ cash flow. That system would be cheaper and simpler.

February 2009 Issue No. 355

Inside this month’s issue...

How Long Will These Rock-Bottom Milk Prices Last? (p. 1):
No easy answers to this question. Negative factors: declined export markets, increased imports and bad national economy. Positive factors: heavy culling of milk cows in west, scary outlook for water in California. Nobody knows.

January 2009 Class II Price $10.78 – Class IV $9.59 (p. 1):
Milk prices are headed backs to where they were during Jimmy Carter’s presidency.

USDA Forecasts Lowest “All Milk Price” Since ’76 (p. 1):
USDA dairy economists project low milk prices all year long – the lowest “all milk price” since 1978. If true, that won’t leave much for the buzzards to pick over.

Surplus Milk Powder Sales to CCC Are Mind-Numbing (p. 2):
Strange trends behind sales of surplus milk powder to CCC, including big increase in imported dairy proteins in late 2008.

Big Surge of Milk Cows to Slaughter in West (p. 2):
The march to slaughter is a massive parade for dairy cows in western states. Many late lactation and dry animals are being slaughtered.

Fonterra Gave Melamine Info to Chinese Partner (p. 2):
Aha! It has now come out that Fonterra – New Zealand’s shady dairy export monster – gave officials of its Chinese dairy processing partner information about use of melamine in dairy products! No wonder the Chinese are mad at Fonterra!

Estimated Dairy Livestock Equity Washout: $10+ Billion (p. 2):
The Milkweed estimates that U.S. dairy farmers have seen a $10 Billion erosion of their equity in dairy livestock values since October 1, 2008.

CWT Set to Launch “BIG KILL” Program (p. 2):
National Milk Producers is putting together a massive dairy cow kill subsidy program. Financial details are now available.

Dire California Water Prospects: Reservoirs & Snowpack Way Down (p. 3):
The biggest story in the country could be California’s seriously depleted water reserves. Reservoirs are way below normal, the mountain snowpack is below normal depth, and the moisture content of that snowpack is 39% below normal.

Saputo Cheese USDA Zeroes Out Hauling Subsidies & Volume Premiums (p. 4):
Saputo Cheese, effective February 1, 2009, slashed to zero its subsidies for farm milk hauling in Wisconsin. Volume premiums were eliminated, also.

Agri-Mark: Stiff Penalties for rbGH Milk (p. 4):
Long time coming … Agri-Mark (the big co-op in New England) has finally announced severe penalties for members injecting their dairy cows with Posilac, as of August 1, 2009.

Big Dairy Groups: Terminate Producer-Handler Status (p. 4):
USDA has announced that two major trade groups – National Milk Producers and the International Dairy Foods Assn. – have requested elimination of producer-handler status from federal milk orders. “Small” producer-handlers would be allowed current exemptions.

Chipotle Mexican Grills Feature Sour Cream from Grass-fed Herds (p. 4):
Interesting! The upscale Mexican restaurant chain, Chipotle, is now serving sour cream made strictly from farms whose milk cows are grazed.

Boomerang Effect: Cheese Exports Return to U.S. (p. 4):
Cheese that was exported from the U.S. in mid-2008 is now returning, unopened. Shifts in international currency values dictated that some companies (including Kraft Foods) bring back the product.

Yogurt Lobby: Kill “Grade A” Rules (p. 5):
The Food and Drug Administration is taking public comments on a proposal by the National Yogurt Assn. that would seriously “dumb down” yogurt quality. NYA’s proposal calls for eliminating the “Grade A” sanitary ingredients for all dairy ingredients contained in yogurt sold in the U.S. That move would open up our yogurt containers to scurrilous, foreign imports. BAD IDEA!

Soy “Milk"-- Low Ingredient Costs = High Profits (p. 6):
Writer Paris Reidhead tells us more than we want to know about soy “milk” – a growing competitor to dairy. Did you know that Dean Foods is the nation’s biggest seller of soy milk? Did you know that monks in China drink unfermented soy foods to suppress their libido?

Canadian Farm Milk Quota System Yields Rewards to Producers, Rural Dairy Communities (p. 8-9):
Click here for our “Story of the Month.”

USDA vs. Darwin Rice: Strange Case Becomes Even Stranger (p. 10):
Our November 2008 issue profiled the long battle between USDA and Iowa farmer Darwin Rice. Now things have turned even stranger. On 12/4/08, the Rices home and farm properties were sold by the county sheriff. USDA bought the Rice properties for $510,980. BUT just three days prior, USDA’s Farm Services Agency issued a secret, $510,980 loan to Darwin Rice. Darwin never asked for it, never signed papers, and certainly never got the money! Now, having taken his farm, USDA is issuing a dunning notice, demanding that Rice pay in full (with interest & penalties) the $510,980 loan! Even stranger: in early January, their home and adjoining 40 acres were transferred back to the Rices … without their knowledge. What’s next … an angry letter from the IRS demanding payment of a “gift tax” from the farm?

To Save Organic Dairy, Obama Must Change USDA Mindset (p. 12):
Organic activist Mark Kastel details how organic dairy is at a critical moment, and USDA’s enforcement of pasture rules by factory “organic” dairies is causing smaller-sized, honest dairy farms to lose their milk markets.

Cheddar Bumps Up a Bit, But Dairy Commodity Prices Remain Low (p. 13):
Pete Hardin analyzes dairy commodity markets, noting that global dairy protein marketers are now in a game of “chicken” – seeing which can cut prices more.

Dairy Cattle Replacement Prices (p. 14):
It’s ugly.

U.S. NFDM Stocks Accumulating Rapidly (p. 14):
Surplus volumes of nonfat dry milk are piling up rapidly at warehouses leased by USDA’s Commodity Credit Corporation. But users are being “shorted” on buttermilk powder supplies. What’s wrong???

U.S. Milk Supply Management? Or Honest Commodity Values (p. 15):
Pete Hardin talks about how it may be time to rethink the “American way” of dairying (boom and bust cycles) and look hard at milk supply management. Or else, perhaps easier, restore honesty to dairy commodity prices and farm milk pricing/marketing.

(More) Towards a Better Dairy Industry (p. 16):
    Here are some more ideas to improve our dairy industry, including: *Change cheese pricing formulas to account, in part, the retail price of cheese paid by consumers. THAT’s the market … not the price-manipulators at the Chicago Mercantile Exchange.
    *Sell Surplus Milk Direct China. We have the surplus, the Chinese have tens of millions of hungry citizens being sent back to the countryside to forage for non-existent jobs. The main U.S. conduit for milk powder sales – Fonterra – is now a dirty word in China, following the melamine scandal.
    *USDA should buy hamburger. Instead of funding a dairy cow kill, USDA should simply commit itself to buying additional hamburger for nutrition and hunger programs. That way, the beef cattle interests should not get their shorts in a knot.

January 2009 Issue No. 354

Inside this month’s issue...

Chaos Ahead: CME Cheddar & Butter Prices Plunge to Support Levels (p. 1):
Early in January 2009, cash prices for all three major dairy commodities plunged in trading at the Chicago Mercantile Exchange to levels at or below USDA’s Dairy Product Support Price program. That means U.S. dairy farmers are looking at milk prices in the sub-$10 to $12 per cwt. price level early at hand. Farm milk prices have gone from reasonable to ruinous in three months.

CFTC Fines DFA $12 Million for CME Price Manipulations (p. 1):
On December 16, the Commodities Futures Trading Commission announced a $12 fine against Dairy Farmers of America and two former executives. The fine concluded a long-running investigation involving DFA’s manipulation of cash Cheddar prices at the Chicago Mercantile Exchange and limits violations of futures contracts by DFA. CFTC let DFA get away easy.

Dec. 2008 Class III Price $15.28 – Dec. Class IV $10.35 (p. 1):
Prices for cheese milk (Class III) and butter-powder milk (Class IV) fell in December, according to USDA’s federal milk order program. Big declines to follow in January.

Sept.-Nov. Retail Cheese Sales Down, Prices Up (p. 2):
How do U.S. supermarkets cope with declining cheese prices? They raise prices! Data for three months (Sept.-Nov. 2008) shows total cheese sales in supermarkets declined by 1.6%, but total dollar sales of cheese rose by 9.0%.

Obama Picks Iowa’s Vilsack as USDA Chief (p. 2):
Tom Vilsack has been nominated as the next USDA secretary by President-elect Obama.

FSA Registering Dairy Producers for New MILC Program (p. 3):
USDA’s farm milk price “safety net” – the Milk Income Loss Program – will start making payments in early 2009. Producers may register at their local Farm Services Agency office.

5 Co-ops Quit CWT; Big Loan Sought to Kill 400,000 Cows (p. 3):
National Milk Producers’ “Cooperatives Working Together” (CWT) program is unraveling. In early January, five dairy co-ops quit the program, in disputes over too many export subsidies paid to DFA and Land O’Lakes. NMPF is now trying to secure a big loan ($200 to $300 million) to fund a big dairy cow kill program. Trouble is: if CWT tries to kill several hundred thousand cows, that would plug up the slaughter facilities and drop beef prices.

Dairy Producers Can Select Rapidly for the A2 Trait (p. 4):
Paris Reidhead details the genetics behind selecting for the A2 milk in dairy cows.

Cheddar Price Volatility Increased after Trading to CME (p. 5):
John Bunting examines historic ups and downs of cash Cheddar prices at CME. Since Cheddar trading moved to CME, the ups and downs of cheese price movements have become more pronounced!

Powder Export & NASS Price Data: July-October 2007 & 2008 (p. 5):
For July-October 2008, milk powder exports were far higher than the same period in 2007. Why are dairy co-ops saying that powder exports are down?

Amish Farmer Faces Trial, Possible $5,000 Fine: Failed to Register Livestock Premises in Wis. (p. 6):
A Wisconsin farmer faces trial in March, on charges he failed to register his farm with the state’s mandatory premises law. Wisconsin is the nation’s “test plot” for a national effort USDA wants to impose: mandatory registration of all farms with food-production creatures.

Fluid Milk Indexes Show Big Gains for Processors & Supermarkets (p. 7):
Data collected by the Bureau of Labor Statistics shows monthly margins for fluid milk. The supermarkets and dairy processors are making out like bandits.

13-Week Fluid Milk Sales Ending 11-30-08 vs. Same Period for 2007:
Fluid milk sales in the U.S. declined 2.0% in September-November 2008, compared to the same period one year ago. Prices declined 6.0%. A shift to gallon containers, from half-gallons, is evidenced.

Feature Stories of the Month (pp. 8-9):
#1 All Vital Signs Bad for Dairy Farmers of America, #2: Will DFA’s Pending Financial Fiasco Hit Dairy Marketing Services?

2008: DFA’s Worst Year (So Far) (p. 8-9):
From announcing $109 million in losses for 2007 to the $12 million CFTC fine in December (and all the lawsuits that followed) … 2008 will go down in DFA’s history as the worst to date.

Is NMPF at War with DFA over Dairy Programs (p. 9):
Looks like NMPF – the dairy co-op lobby – is at war with USDA on a variety of fronts. Not a good sign.

Summary of Lawsuits vs. DFA (p. 10):
John Bunting wades through some details of the numerous lawsuits filed against Dairy Farmers of America which involve alleged Cheddar price manipulation at the Chicago Mercantile Exchange.

$9.90/Cwt. Dairy Product Support Price Won’t Sustain Milk Producers (p. 11):
Review the details behind the “Dairy Product Price Support Program” – may not be what we think.

Are Firms Selling Dairy Surplus to CCC “Double-Dipping on “Make-Allowances”? (p. 11):
Dairy processors manufacturing cheese, butter and nonfat dry milk receive a “make-allowance” from various state/federal milk order programs. “Make-allowances” are credits meant to subsidize plants’ costs, profits and return on investment. But when dairy surplus is sold to the Commodity Credit Corporation at USDA, another make allowance is paid. Double-dipping?

USDA Memos: NAIS Premises ID Now Automatically Assigned in Many Programs (p. 12):
Mary Zanoni details what she’s uncovered in her Freedom of Information lawsuit against USDA involving mandatory registration of farm premises for compliance with a variety of USDA livestock programs. USDA cancelled one memo, wrote another one the next day … and refuses to publicly release either memo!

U.S. Economic Picture Won’t Improve Soon (p. 12):
John Bunting takes a hard look at the economy … which is not pretty.

Industry Panics: Cheddar Falls Below Support Price (p. 13):
The dairy industry is taking a terrible beating, as dairy commodities have tumbled below the dairy support price levels in cash trading at the Chicago Mercantile Exchange.

Trial Set: Niagara Co-op Sues Dissident Ex-Members (p. 14):
Absurd. A handful of former dairy farmer members are being sued by Niagara Co-op (NYS) for failing to accept terms of a one-sided merger of their co-op. The merger occurred in 2006. Trial starts in Buffalo on February 23 … Could be fireworks.

Choose Life (p. 15):
Pete Hardin ruminates about dairy farming as an industry full of Life, whose dreams and history are being killed by inequitable milk pricing.

DOJ Should Take Over DFA as a “Criminal Organization” (p. 15):
Just like the DOJ took over Jimmy Hoffa’s Teamster’s Union, the U.S. Department of Justice should take over Dairy Farmers of America as a “criminal organization” and clean up the mess. If DFA goes bust, Hardin details why a three-year, 1% loan program to help on cash flow of farmers, milk haulers, and others is seriously needed. DFA markets one-third of all the milk in the country.

Towards a Better Dairy Industry … (p. 16):
We’re trying to spark a debate about a better, future dairy industry. Here are some of Pete Hardin’s suggestions ….

December 2008 Issue No. 353

Inside this month’s issue...
Despite Solid Consumer Sales, Cheddar Cheese & Butter Prices Tumble (p. 1):
Fourth-quarter 2008 sales trends for cheese and butter remain strong. But after Thanksgiving, cash prices for both Cheddar cheese and Grade AA butter nose-dived at the Chicago Mercantile Exchange. Milk powder prices – which lead the way down – do not reflect high levels of export sales/prices that continued in October.

MILC “Safety Net” Ready: Perhaps for January 2009 (p. 1):
Plunging dairy commodity prices mean far lower farm milk prices. The revised MILC program – dairy farmers’ “safety net” – will probably kick in for January 2009 milk prices.

October Milk Powder Export Numbers Outrageous (p. 1):
Just-released data on October 2008 exports details that out-of-country shipments of dairy protein powders continued high and prices received averaged about 50 cents per pound HIGHER than the monthly NASS price reported by USDA.

November 2008 Class III Price $15.51 – November Class IV $12.25 (p. 1):
“Down, down, down into that burning ring of fire” for federal milk order manufacturing class prices.

Dean Foods’ Stock Nose-Dives; Gregg Engle$ Dumps Shares (p. 2):
In late November, Dean Foods’ stock plunged to below $12/share. CEO Gregg Engle$ had to sell off 950,000 shares of company stock to cover other failing investments’ margin requirements.

CA’s Central Valley Project Estimates: Zero Water for Farmers in ’09 (p. 2):
Egad. On November 20, officials of California’s massive Central Valley Project estimated that irrigation water deliveries to agriculture in 2009 will be Z-E-R-O. Thirty percent of the nation’s food is produced in the Central Valley.

Warmer Climate Reduces California’s Mountain Snowpack by Evaporation (p. 2):
Warmer temperatures result in more evaporation of snow pack in California. Evaporating that stored snow means less water available for irrigation of crops.

Drought in Oceania Reducing Milk Flow (p. 2):
Dry “Down Under” again this year. Milk output in New Zealand is constricting.

Christmas Holiday Balancing: “No Room at the Inn” for Some (p. 3):
The Christmas holidays will likely see raw milk dumped in several regions of the country. Not enough manufacturing plant capacity to handle raw milk volumes while schools are out.

Abundance of Milk: WI Premiums in Danger (p. 3):
Farm milk premiums paid to Wisconsin producers by dairy plants are in danger, due to bigger amounts of milk.

Feature Story: Confusion Reigns Over World of Milk Powders (p.4)

NMPF Lawsuit Halts USDA’s Private Sales of Surplus Powder (p. 5):
Quick legal action by National Milk Producers Federation gained a Temporary Restraining Order issued against a USDA scheme to allow a private firm to auction off surplus nonfat milk powder.

FDA “Downer Cow” Rule Would Require: On-Farm Removal of Brains, Spinal Column (p. 5):
Here’s a “no-brainer” – to protect the safety of the nation’s pet food supply, the Food and Drug Administration is dictating that, starting in April 2009, no “downer cows” may be removed from farms unless the brains and spinal cords have been removed.

“Cow Poop Tax” – Farm Bureau Fans Clean Air Flames (p. 6):
Do not worry about hyped-up reports that the EPA will tax livestock exorbitant amounts due to greenhouse gas. This furor is a mis-reading of federal reports by the American Farm Bureau Federation.

NY Dairyman Nets. $.25 for 74-lb. Holstein Bull Calf (p. 6):
Demand for bull calves is down across the country. We reprint a check issued to a NY dairy farmer for $.25 for his sale of a bull calf, and explain why prices are so low.

Greenhouse Gas Worries: Methane is THE Bad Guy (p. 7):
Paris Reidhead explains some of chemistry behind why methane is THE greenhouse gas for dairy to worry about. Putting manure in anaerobic conditions is a mistaken practice.

Greenhouse Gas “Facts”: Dairy Needs Reasoned Study (p. 7):
Pete Hardin opines that it’s how humans handle cow manure that creates the biggest environmental problems. Don’t rush out and buy a manure digester or methane flaring system!

A2 Milk: Intriguing Niche Market Will Challenge Dairy (p. 8-9):
Writer Paris Reidhead explores the concerns behind “A2 milk” – a niche market down in Australia and New Zealand that’s just being introduced here in the U.S. A2 is the original genetic version of milk. Far more common “A1” milk is a variant. A1 milk is believed by some to be linked to a wide variety of human ailments.

Big Opposition to A2 Milk in New Zealand: Fonterra (p. 9):
The biggest opponent of A2 milk “down under” is Fonterra, New Zealand’s quasi-monopoly for dairy exports. That’s usually the way things work.

History of the Dustin Sherwood Case (p. 10):
John Bunting details the woes of Dustin Sherwood and family. This Missouri grain farmer is wasting away in prison, the result of John Deere Credit’s seizing Sherwood’s financial assets. Dustin has lost all his financial resources – and the bankruptcy trustee is even chasing after his wife’s wedding ring. THIS ARTICLE IS ON OUR WEB SITE.

Dustin Sherwood Legal Update: More Indictments (p. 11):
On December 3, the U.S. Attorney in Kansas City hauled incarcerated Missouri grain farmer before another grand jury and came up with eight new federal indictments! This action occurred the same day that Ohio Congressman Dennis Kucinich wrote the U.S. Department of Justice, asking DOJ to hold off any further actions in the Sherwood case, until a wider review could occur. Sherwood pleaded “not guilty” and trial is set for January 7, 2009.

Invisible “For Sale” Signs Sprouting in Dairy (p. 11):
Poor-performing and poorly-equitized firms are facing some tough edicts from their lenders. Read The Milkweed’s list of what’s quietly “for sale” in dairy.

Last Minute Rulemaking by Bush USDA Threatens Organic Family Farms (p. 12):
Will Fantle of the Cornucopia Institute details that organization’s deep concerns about proposed, recent revisions by USDA on how dairy animals must be fed and housed.

Cheddar & Grade AA Butter Nose-Dive at CME (p. 13):
Cheese and butter prices have sharply declined at the Chicago Mercantile Exchange, despite strong consumer sales up to this point. What’s going on???

Survival Strategies (p. 14):
Here are a few basic guidelines for dairy farmers who are trying to intelligently navigate the squeeze between lower milk prices and production costs.

It’s the Money-Changers, not the Cows! (p. 15):
Pete Hardin details how the band of “money-changers” positioned between what the consumer pays for dairy products at retail, and what farmers are paid for their milk, is a major source of dairy farmers’ financial woes. No-holds barred here!

Corn & Crude Oil: Volatile Prices Track Closely (p. 16):
John Bunting presents nearly 20 years’ prices between corn prices and crude oil prices. Over time the correlation is amazing. Even in volatile 2008 … corn and crude oil prices tracked very, very closely.

J. Bos Giving Farmers a Bad Name (p. 16):
Steve Holesinger, who lives near Stockton, Illinois, details some of the nasty tactics that Californian A. J. Bos is using against neighbors opposing the proposed mega-dairy. Bos has sent registered letters to opposing plaintiffs, detailing their personal assets and threatening to clean then out financially if Bos wins the legal matters. Bos has event threatened to take a 90-year old, wheelchair-bound woman’s 1986 Toyota Corolla! Bos = S.O.B. Spelled Backwards!

November 2008 Issue No. 352

Inside this month’s issue...

Dairy Prepares for Tough Times, from Farm to Consumer (p. 1):
Constricted demand for dairy products – both at home and abroad – is creating some deep worries for dairy marketers. Lenders to firms holding dairy inventories are nervous, because of volatility in dairy commodity values.

Wal-Mart Dairy Case “rbGH-Free” in Early ’09 (p. 1):
The nation’s largest food retailer – Wal-Mart – has informed dairy product suppliers that during the first quarter of 2009, Wal-Mart wants only “rbGH-Free” dairy products on its shelves. Wal-Mart is a trend-setter for food retailers. Wal-Mart’s move promises even tougher times for fortunes of “Posilac” (the trademark name of the drug).

October 2008 Class III Price $17.06 – October Class IV Price $13.62 (p. 1):
Lower dairy commodity prices are translating into lower Class prices for raw milk through USDA’s federal order pricing system.

What’s Up for Dairy/Agriculture As Obama Heads to White House? (p. 2):
Former Iowa governor Tom Vilsack looks like the front-runner in the race for USDA Secretary in the new Obama administration. Farm, food and nutrition issues will require the wisdom of Solomon.

Dean Foods Earnings Increase, But Stock Drops (p. 2):
The nation’s largest fluid milk processor reported improved third-quarter earnings, but stock analysts don’t like what’s ahead. Dean’s stock has tumbled into the $15-16/share range.

FDA Issues Melamine-in-Food Warning – Somewhat Late (p. 3):
The federal Food and Drug Administration has issued a warning for foods manufactured in China or using foreign-sourced dairy ingredients – all due to the Chinese melamine scandal. ‘bout time!

FDA Food “Safety”: 8 Inspectors to China (p. 3):
Who’s kidding whom? FDA will send eight food safety inspectors to cover many thousands of food and food-ingredient processing plants in China. Inadequate.

Financial Crisis Forces DFA to Add More Debt (p. 3):
A letter to DFA members dated October 14, 2008 details, among other things, how the co-op has been forced to add to debts, due to overnight money-markets no longer being available. The Milkweed estimates DFA’s overall debt now totals around $1.3 to $1.5 billion.

DFA Throws Buckey Jones from the Gravy Train (p. 3):
Another DFA director has been found taking illegal payments. This time it’s Mississippi’s Buckey Jones, who is described as “management’s trained peckerwood” with an “IQ ten points south of Gomer Pyle’s.”

Double-Whammy (Demand & Credit) Hits Global Dairy Powder Industry (p. 4):
Declining demand, in tandem with constricted global credit, is causing dairy protein powders to pile up in the U.S. Prices are falling, millions of tons of surplus nonfat dry milk are being sold to the government.

Opponents Win Preliminary Injunction Against Bos’ Illinois Mega-Dairy (p. 5):
A judge in Jo Daviess County Court has ruled favorably on behalf of a local citizens’ group that sought a “Preliminary Injunction” to halt construction of Californian A. J. Bos’ mega-dairy project near Nora, Illinois. Judge Kevin J. Ward found that the mega-dairy constituted a present and future potential harm to the community.”

CWT Impact: Figures Don’t Lie, But Liars Figure (p. 5):
Writer John Bunting details large chunks of baloney behind the “Cooperatives Working Together” program run by National Milk Producers Federation.

DMS Illegally Duns Amish Farmers for Trailer Loads of “Spoiled” Organic Milk (p. 6):
Independent dairy producers, with contracts to sell organic farm milk to H. P. Hood, are being illegally dunned for financial penalties by the firm that actually handles milk hauling and payments – Dairy Marketing Services (DMS – a DFA subsidiary). Rules of the Northeast federal milk order specify that the only financial penalties against producers may be assessed for antibiotic contamination.

Southwest FMMO “Mailbox Prices” Way Below Uniform Prices (p. 7) & DFA Members in TX/NM Receive Pay-Back Checks for Money “Lent” to Help Build Southwest Cheese (p. 7):
SEE STORY OF THE MONTH!

Vindictive Prosecution? Feds Hound Darwin Rice, Iowa Farmer (p. 8-10):
Foreclosure looms on December 4 for Iowa farmer Darwin Rice. The Milkweed exposes a long list of illegal actions by USDA – and Rice’s prosecution/conviction by the U.S. Department of Justice – as part of a conspiracy to hound this farmer, who, years ago, unearthed one of the biggest financial scandals at USDA. See the full story here.

Black Farmers Association Charged Phillip Fraas with “Attorney Misconduct and Legal Malpractice” in Pigford Case (p. 11):
As association of black farmers, who won an important class action lawsuit against USDA, claims to have been then ripped off by lawyers who botched (and pocketed) the settlement. Phillip Fraas, a Washington, D.C. attorney/lobbyist, was specifically singled out in testimony before a Congressional Committee in 2004. Fraas is seeking an appointment for a high-level USDA legal post in the incoming Obama administration.

Cheese Importer Lobbyist Wants USDA/OGC Job (p. 11):
Phillip Fraas, a Washington, D.C. attorney/lobbyist with strong ties to both dairy importers (CIAA, Fonterra) and big dairy companies (Dean Foods, Kraft) wants a top legal job at USDA.

Dairy Groups Promoting Unnecessary RFID Chips for Cattle (p. 12):
Writer Mary Zanoni details how National Milk Producers Federation and a host of other dairy groups (Idairy) are promoting a totally unnecessary set of electronic computer chips for dairy animals, in order to supposedly comply with dairy “Country of Origin Labeling: (COOL) proposals.

First Prosecution in Wisconsin: “Amish” Farmer Won’t Register Premises (p. 12):
A farmer in Clark County, Wisconsin is the first to be charged with a crime for failing to comply with Wisconsin’s mandatory premises registration law. This program – the first step towards mandatory computer chipping of all creatures – is becoming dangerously absurd.

Cheddar, Grade AA Butter and Milk Powder Prices All Decline (p. 13):
Values for all major dairy commodities have declined in trading at the Chicago Mercantile Exchange in the past month. Milk Powders are in the sub-basement.

500 U.S. Dairy Heifers Assembled in Northeast for Shipment to Russia (p. 14):
A loads of 500 U.S. dairy heifers are now at an export quarantine facility near Watertown, New York – awaiting final testing before they move to Canada to go on a ship headed for Russia. For a year, The Milkweed has been reporting developments in this potential market for U.S. dairy animals.

Discipline Supply to Demand (p. 15):
Pete Hardin argues that only with a modern, effective effort to match U.S. farm milk supplies to demand (both domestic and global) will the destructive up-and-down price cycles be buffered. The “same-old, same-old” mistaken approaches to running our industry will not work.

USDA Still Sees Second Largest Corn Crop Ever (p. 16):
John Bunting analyzes the November 10 Crop Production report issued by USDA. Despite lower acreage estimates for both corn and soybeans, USDA foresees a 12-billion corn crop: this nation’s second largest. Weather continues to bother harvest of slow-drying corn in numerous areas of the country.

October 2008 Issue No. 351

Inside this month’s issue...

Dairy Supply (?), Dairy Demand (??) & Dairy Prices (???) (p. 1):
Uncertainty in the national and global financial pictures means its almost impossible to forecast what’s ahead for the U.S. dairy industry. Lower grain prices & slowing global demand for milk protein powders bode problems ahead.

DFA: $300 Million More Debt in 2008 (p. 1):
So far in 2008, Dairy Farmers of America has added another $300 million in debt. That comes to roughly $30,000 per DFA member. Moody’s Investors’ Service upgraded DFA’s financial credit rating by one notch, advising lenders: Don’t worry, if needed, DFA can always take money out of dairy farmers’ milk checks.

Sept 2008 Class III Price $16.28 – September Class IV $15.45. (p. 1):
Farm milk prices are heading down, following commodity trends.

Injunction vs. USDA’s Revised “Make-Allowances” Denied (p. 2):
Legal efforts have failed, in an attempt by a group of smaller dairy co-ops trying to block imposition of USDA’s higher “make-allowances” for butter plants and cheese plants. Effective October 1, 2008, higher credits for those plants will drain about $.30/cwt. from all dairy farmer income, through the federal milk order pricing system.

2008: Farm Milk Price Down: Consumer Dairy Costs Up (p. 2):
So far in 2008, dairy farmers’ milk prices have dropped about $2.20/cwt. (Jan.-July). But at the same time, “commercial disappearance” has climbed 3.24% (Jan.-July) in 2008, and U.S. consumers are paying 4.04% more for dairy products (January-August data). Go figure!

China’s Diary Industry Slammed by Melamine Contamination (p. 3):
Some 90,000 Chinese infants have been made sick by continued contamination of dairy products by melamine. China is in an uproar. Demand for (even honest) dairy products is way down.

FDA Bails Out China: High Melamine Levels for Foods (p. 3):
At a time when the U.S. is on its hands and knees begging China for further investment capital … our Food and Drug Administration sets (on October 3) an unduly high level of melamine contamination for foods: 2.5 parts per million.

Illegal Chinese Yogurt in U.S. (p. 3):
Since 2002, China has shipped nearly 100 metric tons of yogurt into the U.S. All of that is illegal, because yogurt sold in the U.S. requires that farms supplying the milk, milk trucks that haul it, and dairy plants all be in full compliance with U.S. Grade A dairy sanitation codes. No such facilities in China are Grade A. Once again, our FDA is asleep at the switch.

Fonterra’s Chinese Partner: Worst Melamine Cheater (p. 3):
San Lu, a Chinese dairy processing firm that’s 43% owned by New Zealand’s dairy giant, Fonterra, is China’s worst offender in the evolving melamine contamination story.

Dean Foods Replacing DFA Milk in Certain Markets (p. 4):
Dean Foods is aggressively moving to replace milk supplied by Dairy Farmers of America in several plants within the Dean Foods system. Dean Foods is drawing away from DFA, which will hurt DFA in many ways.

More Questions Raised about Bovine TB Issues (p. 5):
The bovine tuberculosis problem raises more questions. Why did California state ag officials need more than five months from the time they first detected a potential TB dairy animal in a slaughterhouse last December, before issuing quarantines? Another question: how can Wisconsin state veterinarians test nearly 260 dairy animals without even a single “positive reactor?” Normal veterinary procedures yield from two to five percent “reactors” in the initial screening test for TB.

WI Bovine TB Surveillance Sites (p. 5):
In early July, Wisconsin animal health officials put three premises in the state under TB surveillance, since those sites had received animals from a TB-contaminated farm in California. Those three sites are: American Breeders Service (DeForest, WI); Alta Genetics (Watertown, WI); and Milk Source, LLC (Kaukauna, WI).

Milk Powder Prices Crash to $1/lb. at CME; Surplus Sold to CCC (p. 5):
The market for nonfat milk powder has crashed hard in recent weeks. California Dairies, Inc. – the nation’s largest processor of nonfat dry milk – has started selling “surplus” to USDA at roughly $.80/lb. Ouch.

Price-Cost Squeeze Threatens to Kill California’s Dairy Dream (p. 6):
The wide spread between milk production costs and milk prices is putting a big negative financial squeeze on California’s dairy farms, which could prove fatal.

Neighbors’ Lawyer Skewers A. J. Bos’ Engineer in Trial (p. 6):
California dairy impresario A. J. Bos’ hopes to build a mega-dairy in northwestern Illinois took a step backwards. In trial, Bos’ engineer admitted that he’d built Bos’ dairy atop a streambed! Illinois law prohibits construction of new livestock premises atop streambeds! Neighbors opposing Bos’ mega-dairy hope this illegality, and other factors, deny the project’s completion.

McCain Ag Advisor Has Deep Ties to New Zealand’s Fonterra, Dean Foods (p. 7):
Bert Pena – a Washington, D.C. lawyer with a long history of representing New Zealand’s dairy interests – is a top agricultural advisor for John McCain’s presidential campaign. Fonterra has been dumping hundreds of thousands of dollars into lobbying efforts in the U.S. With a dangerous “Free Trade” deal proposed involving New Zealand, what’s ahead?

CWT Has $100+ Million in Bank; Where’d the $12,560,000 Disappear To? (p. 7):
The CWT program operated by National Milk Producers Federation is a joke. The latest? CWT has over $100 million in the bank. CWT officials managed to lose $12,560,000 in carry-over funds between December 31, 2007 and January 1, 2008. Where’d the millions go???

Massive Chinese Dairy Exports Entering the U.S. (p. 8):
Huge quantities of dairy products, plus processed food products and ingredients containing dairy proteins, are entering the U.S. from China each month. Can the safety of these products and ingredients be trusted, in light of the continuing melamine scandal???

Feature Story: Relooking Gregg Engle$’ 2007 Salary/Compensation (p. 9)

Farmer Mac Bailout: CEO Fired, Agricultural Credit May Be Impaired (p. 9):
Farmer Mac is an agricultural lender and guarantor of farm loans written by other banks. Farmer Mac needed a bailout, because so many of its financial resources have gone into failed investments. Farmer Mac’s CEO, Henry Edelman, was fired.

Farm Energy Needs Will Rewrite Crop Practices (p. 10):
Our “bio-energy guy” Paris Reidhead lists answers to commonly asked questions about biodiesel.

Milk Producers Council Questions the Integrity of NASS Price Reports (p. 11):
The Milk Producers Council – a dairy farmers’ trades association in California – has asked USDA to review price surveys for nonfat dry milk, because of tremendous differences in export prices (per pound), compared to prices on which dairy farmers’ prices are calculated. Where’s the money going to???

The Cornucopia Institute Report (p. 12):
Will Fantle details a set of new complaints by his organization against large, CAFO-style “organic” dairy farms in western states. Again and again, large factory-style dairies produce organic milk without apparently completely following organic farming practices.

Milk Powder Prices Fall Way Down; Cheese, Butter Sectors Nervous (p. 13):
The huge decline in milk powder prices will hit hard, and the cheese and butter sectors are worried about their own commodity price declines.

Elanco Finalizes Posilac Purchase From Monsanto Oct. 1 (p. 14):
Monsanto shed Posilac – recombinant bovine growth hormone – into the naïve hands of Elanco (the animal products subsidiary of Eli Lilly & Co.).

Financial Crisis: Will Need Years to Unravel (p. 15):
Editor Pete Hardin details his insights into the nation’s financial crisis, including “what the big boys don’t want you to know.” Our financial mess is more complex, and will last far longer, than anyone hopes to admit.

September 2008 Issue No. 350

Inside this month’s issue...

Farm Milk Supplies Tighten Sudden East of the Rockies (p. 1):
Now that school is in session, demand for farm milk has tightened nicely.

U.S. Economy Deeply Troubled (p. 1):
The news is just going to get worse. More than half of all the adjustable rate home mortgages written in the past three-four years come due for renegotiation this fall.

August 2008 Class III Price $17.32 – August Class IV $16.34 (p. 1):
USDA’s class prices for the federal milk order program declined in August.

Monsanto Finds a Sucker (Elanco) to Buy Posilac (p. 2):
A miracle! In mid-August, Monsanto and Elanco announced the latter would pay $300 million for Posilac—Monsanto’s controversial biotech cow hormone drug. Sale is to take place in 2008’s fourth quarter.

Feature Story #1: Dean Foods’ CEO Gregg Engle$: $66,080,000 Compensation in 2007 (p. 2):
For years, The Milkweed has painted Dean Foods CEO Gregg Engle$ as an Ivy-league, yuppie MBA obsessed with draining corporate coffers to line his pockets. Now comes the proof! Read all about it here.

AFACT (Posi-Lackies) Begging for $$$ (p. 2):
A “grass-roots” dairy farmers group that appeared in 2007 to fight for “technology” (i.e., Posilac) seems to have come upon tough times, now that Monsanto is retrenching “investments” in championing the drug.

Lawsuit Delays Sept. 1 Imposition of Higher FMMO “Make Allowances” (p. 2):
Some dairy producer groups have brought legal action against USDA’s scheduled imposition of higher “make allowances” in the federal milk order system. Those higher fees to cheese and butter-powder plants were scheduled to go into effect on Sept. 1.

NZ Milk Current Output is Big Question, as Global Dairy Prices Weaken (p. 3):
How will New Zealand milk production bounce back from last year’s big, drought-induced decline? Global dairy commodity prices are weakening, in anticipation of more milk from New Zealand.

Dean Foods Moving Back to Direct Procurement of Farm Milk (p. 3):
In multiple markets around the country, Dean Foods – the nation’s largest fluid milk processor – is going back into the country to procure its own milk supplies. In 2003, Dean Foods dumped its 2500+ producers into the clutches of DFA.

Foot-and-Mouth Disease “Regionalization” Threatens U.S. Economy (p. 4):
USDA wants to “regionalize” Argentina – dividing that nation into north and south regions, based on areas infested by, and free from, Foot-and-Mouth Disease. In a dangerous precedent, USDA is “regionalizing” some U.S. states into “Free” and “infected” areas, relative to bovine Tuberculosis. Whether it's other nations, or U.S. states, the notion that government bureaucrats can draw arbitrary lines dividing to establish public safety from these dangerous livestock diseases is questionable. Beware!

Dairy States Fear Spread of California’s Bovine TB Outbreak (p. 5):
The outbreak of bovine Tuberculosis in California was first detected in lesions of slaughtered dairy animals in December 2007. It took CDFA officials nearly six months to announce the problem – during which hundreds of animals moved from TB-infected premises to sites in California and other states.

Three WI Herds Under TB Surveillance: No Reactors Found (p. 5):
State agriculture officials in Wisconsin have three dairy herds under TB surveillance, due to those sites receiving animals from TB-infected California herds. Those “imports’ have been slaughtered. Testing on most animals at the Wisconsin sites has yielded no positive reactors.

Rumor: China to Enter U.S. Corn Market Big-Time (p. 6):
Watch out for China to jump into the U.S. corn market, this fall or winter, and cash-in a lot of its U.S. dollar holdings for grain. That’s the rumor we’re reporting … if China does start buying corn big-time, look for skyrocketing prices for this critical commodity.

Cornell Extension’s Nutrition Advice “Bass-ackwards” (p. 7):
Writer John Bunting just couldn’t take it anymore: seeing that dumb highway billboard near Delhi, New York, telling kids to “Drink 1% OR Non-Fat Milk.” John points out how per capita calories from dairy have declined since 1970, and calories from corn-based sweeteners have increased 472%. Where’s the problem??? Not Milk!!!

Feeding the Iron Horse (Growing Our Own Biodiesel) (p. 8-10):
Writer Paris Reidhead details a wide range of technical details about growing canola for dual use as both a diesel fuel substitute and also a high-protein meal for livestock and poultry. This article is a landmark piece of agricultural journalism.

Update on Dustin Sherwood Bankruptcy Case (p. 11):
Last month, The Milkweed reported on Missouri farmer Dustin Sherwood, who’d had his farm stolen (legally, of course) by John Deere Credit and a wolfpack of Kansas City lawyers. Things have only gotten worse for Dustin – the 36-year old farmer (who started this mess with $10 million in assets and $3 million in debts) – has been transferred to the federal penitentiary at Leavenworth, Kansas – due to medical problems. The bankruptcy trustee, who’s garnering 11% of all Sherwood’s assets for her “services,” has appointed her husband as the second-leading attorney in the bankruptcy proceeding!

Bos’ Lawyer Threatens Illinois Opponents of Mega-Dairy (p 11):
Lawyers for A. J. Bos – the California dairy empresario who wants to build what could become a pair of dairies totaling 20,000+ cows – have threatened members of a local citizens’ group fighting against Bos’ plans to “Californicate” their community’s air and water quality.

USDA (Reluctantly) Releases New Info about National Animal ID System (p. 12):
Activist Mary Zanoni reports the latest information surrounding USDA attempts to impose national program for installing computer chips in virtually all food animals. Strong stuff!

Cheddar Prices Rising; Butter Flat; NFDM Prices Declining (p. 13):
That’s our analysis of the U.S. dairy commodity scene right now. Plenty of speculation and uncertainty in the dairy commodity picture.

Foster Farms (CA) To Drop about 18 Producers on Nov. 1 (p. 14):
A private California dairy processor, Foster Farms, has notified its dozen and a half producers that the company will drop those raw milk suppliers on November 1.

Bush Antitrust Legacy: 1 Case Filed in Eight Years (p. 15):
Pete Hardin lays bare the competitive realities for the dairy industry – from the farm to the consumer – for years of antitrust neglect by the Bush administration. Example: Dean Foods now has 90% of all fluid milk distributed in the state of Michigan. (That’s how Gregg Engle$ -- Dean Foods’ CEO – was able to garner $66 million in salary and compensation last year!)

Feature Story #2: USDA Sept. Crop Report Unduly Optimistic for Corn (p. 16):
Despite severe weather difficulties during the planting and growing seasons for many farmers in grain country, the “Crop Production” report issued by USDA on September 12 maintained overt, indeed, undue optimism about 2008’s corn crop. Read Pete Hardin’s report here.

August 2008 Issue No. 349

Inside this month’s issue...
Plenty of Cheese: CME Cheddar Prices Nose-Dive (p. 1):
Since the very end of July, a dramatic decline in Cheddar prices at the Chicago Mercantile Exchange has occurred. Current prices for block Cheddar reflect uncertain times: plenty of inventory, nervousness about consumer demand, and bankers not happy about loans to firms with inventory values fluctuating so severely.

Monsanto Will Try to Sell “Posilac” – Buyer Unknown (p. 1):
In early August, Monsanto announced plans to sell off its controversial biotech cow growth hormone – Posilac. No buyer named. The company has too many successful operations to continue carrying this sick dog.

Bravo! Ag Issues Sack Global Trade Negotiations (p.2):
World Trade Organization talks collapsed, as India and China refused to open up their doors to agricultural imports. U.S. dairy farmers have nothing to gain from this anti-democratic foolishness.

July 2008 Class III Price $18.24 – July Class IV $16.60 (p. 2):
Milk prices are headed down, following trends for dairy commodity trading at CME.

Even More NFDM Reporting Questions Surface (p. 3):
Writer John Bunting analyzes how USDA is failing to enforce the rules for reporting nonfat dry milk prices … and that’s fine with the milk powder co-ops, whose managers have refused to comply with requests for revised pricing data.

RbGH “Greenwashing” Study Claims Posilac’s Environmental Benefits? (p. 4):
Cornell University has recently issued a study promoting the environmental benefits of Monsanto’s biotech cow hormone, Posilac. This study brings the issue full circle, as Prof. Dale Baumann – Cornell dairy scientist – was this study’s lead author. Bauman, who’s become a rich man thanks to Monsanto money, wrote the first research involving dairy cows and the biotech hormone, way back in the early 1980s.

23 or 24 years Fighting Posilac (p. 4):
Editor/publisher Pete Hardin ruminates on the key issues of activists’ battling recombinant bovine growth hormone (rbGH, sold by Monsanto as Posilac). Monsanto’s announcement of intentions to sell the biotech cow hormone drug is viewed as the beginning of the end.

Farmers Lose Income with Depooling and Negative PPDs (p. 5):
Why is that big hole in farmers’ milk checks called “Negative PPDs?” John Bunting shows how fast-rising Cheddar prices lead to theft of farmers’ milk money.

Class III & IV Make-Allowance Increase Reduces ALL FMMO Milk Costs to Processors (P. 5):
USDA’s recent decision to take more money out of farmers’ values for cheese milk (Class III) and butter-powder milk (Class IV) leads to reduced value for ALL class of milk, including Class I (fluid) and Class II (cultured products and ice cream). Why should fluid milk processors’ costs be reduced because cheese plant operating costs need further subsidy?

Maryland/Virginia Co-op Financial Signs Become More Sour (p. 6):
Members of the Maryland/Virginia Milk Co-op should be worried. Incompetent management and directors have created a financial mess, and now the co-op has to tighten up its finances. Steps include boosting equity requirements, delaying pay-out of equities (including estates!), and creating an $.80/cwt. premium for large-volume producers in the Southeast to keep from losing more producers.

Maryland/Virginia Co-op Staggering Under Long-Term Debt (p. 6):
In the past nine years, Maryland/Virginia’s long-term debt has ballooned from $8.5 million to $43 million! The co-op has basically done a lot of growth on borrowed money, and time’s due to pay the piper.

Organic Valley Finally Quits Buying Milk from Texas Factory Farm (p. 6):
Under intense pressure, top management of Organic Valley Co-op has at long last quit buying raw milk from the mega-dairy in Texas, Natural Pastures. Why did Organic Valley ever get into this mess in the first place?

Grass Roots Bio-Diesel Production Works (p. 7):
Paris Reidhead gives an insider’s look at how a small, start-up bio-diesel co-op in upstate New York is put together to make fuel-substitute for diesel-powered tractors and trucks.

The Milkweed Tests Organic Milk for CLAs & Omega-3s (p. 8):
This publication collected ten samples of organic whole milk sold at retail and tested them for content of Conjugated Linoleic Acids (CLAs) and Omega-3s. These substances are highly regarded for their health benefits, and correlate highest in milk from cows fed grass diets. The “winner” was Cedar Summit Farm (New Prague, MN) and the “loser” was Aurora Organic Dairy from Colorado (a mega-dairy). Interesting!

CLAs & Omega-3s: Pasture Health Benefits Transferred to People (p. 9):
Paris Reidhead details how diets of fresh grass benefit food animals (beef and dairy, poultry) with beneficial compounds in those creatures’ foods available for human consumption.

The Dustin Sherwood Case: Bankruptcy Abuse of Process (p. 10):
How can a Missouri grain farmer with $10 million in assets (vs. $3 million debts) end up broke and in prison as a “menace to society”? That’s what’s happened to Dustin Sherwood. Financial advisor Sidney Perceful details this incredible, shocking story.

Protein Scarcity: Serious Future Meat Shortages Ahead! (p. 11):
Across the board – beef, pork, poultry and farmed fish – growers are cutting back their starts of young meat “critters.” Grain prices are a major problem. The U.S. is heading for severe shortages of meat and poultry.

USDA Moves on Enforcement Action Against Rogue Organic Cattle Supplier (p. 12):
Cornucopia Institute fellow Will Fantle details USDA’s actions against Promiseland Livestock – a heifer-raising operation in two states that’s run afoul of rules for organics. Promiseland is a major supplier of “organic” dairy heifers to mega-dairies like those owned by Horizon Organics and Aurora Organic Dairy.

Monsanto Uses “Spy Satellites” to Find GM Seed “Cheaters” (p. 14):
Pete Hardin details how Monsanto uses “spy satellites” to take pictures of farmers’ crops. Monsanto has altered biotech plants so that they look “different” (than conventional crops) to overhead spy satellites. Welcome to Monsanto, Modern Food’s “Big Brother/”

Feature Story: New Farm Law Needs Big Overhaul (p. 15):
Pete Hardin reveals major flaws in the 2008 Farm Bill recently signed into law in Washington, D.C., and then discusses what types of food/energy policies and practices this nation should be encouraging. Our food system is failing!!! Read Pete’s commentary here.

Predicted Cool Weather Could Harm Slow-Maturing 2008 Corn Crop (p. 16):
Our analysis: the delayed conditions of the 2008 corn crop will lead to far less corn output than USDA’s August 12 “Crop Production” report estimated. The U.S. corn crop, in many areas, is two to three weeks behind normal schedule, with cool weather predicted for the rest of the summer and early fall.

July 2008 Issue No. 348

Inside this month’s issue...
U.S. Facing Serious 2008 Crop Failures for Grain, Forage (p. 1):
USDA’s June 30 acreage report dramatically, and knowingly, understated the damage to U.S. crops by intense rainfall and flooding in the Upper Midwest. How so? The acreage report did not include damage to Midwest fields, because the data was assembled in early June! All part of USDA’s plan to understate the potential of a crop failure in a critical year.

U.S. Dep’t of Justice Launches Antitrust Probe of Northeast Dairy Industry (p. 2):
Why? The U.S. Department of Justice has started an antitrust investigation of the Northeast dairy industry. It is believed that DOJ is investigating elimination of competition in the procurement and sale of raw milk. One entity – Dairy Marketing Services – controls sales of over 80% of all farm milk produced in the region.

June 2008 Class III Price $20.25 – June Class IV $15.92 (p. 2):
Cheese milk prices jumped $2.07 per cwt. for June, compared to May, in USDA’s federal milk order system.

No NASS Milk Powder Revisions: Co-ops Ignore Request (p. 3):
USDA’s National Agricultural Statistics Service (NASS) is unable to conduct a mandated revision of weekly milk powder prices dating back several years. Why? Because the dairy co-ops that report weekly nonfat dry milk sales to NASS refused to provide revised data!

Deteriorated Milk-Feed Price Rations: USDA Ignores the Law (p. 4):
Section 608 (c) of the federal law establishing USDA’s milk order program specifies that the gov’t must adjust farm milk prices based upon regional dairy costs of production – including grain prices. But in this time of fast-rising grain costs for dairy farmers, USDA continues to fail to do its job.

The Coming Corn War: Who’s Going to Pay the Price? (p. 4):
Writer Karen Kinstetter lays out what she calls the coming “Corn War” that will pit buyers competing for scarce supplies come harvest time this fall.

Make Allowance Decision (p. 5):
USDA has issued a vaguely-titled, “Tentative partial final decision” on the long-running “make-allowance” hearing. This matter credits dairy manufacturing plants more money out of funds that would otherwise go to dairy farmers. Costs? On Class III (cheese) milk, the cost is $.34 - .35 per cwt.

Senate Judiciary Committee Asked to Probe DFA (p. 5):
More than two dozen farm, consumer and public interest groups have formally written the Senate Judiciary Committee to investigate Dairy Farmers of America (DFA) – the nation’s largest milk producers’ cooperative. The co-op has repeatedly violated competition in dairy. Unique status for agricultural co-ops under the “Capper-Volstead Act” has created a “no-man’s land” of seeming invulnerability to the law – especially when politics are infused.

Feature Story -- Fonterra: Dominate U.S. Dairy Industry with NZ “Free-Trade” Deal (p. 6):
Dairy farmers watch out! The political wheels are being greased to cook up a “Free Trade” deal between the U.S. and New Zealand. Read this “story of the month” on-line here.

Cedar Summit Farm: Unique … from Calves to Cream (p. 7-9):
We profile one of the most unique dairy operations it the country: Cedar Summit Farm of New Prague, Minnesota. This family business is an organic dairy farm where the cows’ diet is 100% forages. Their milk is processed at a small creamery at the farm and then distributed throughout the Twin Cities.

“Doing What Comes Naturally” Dramatically Cuts Calf Losses (p. 10):
At Cedar Summit Farm, the calves stay with their mothers for the first six to eight weeks after being born. Letting calves nurse their mothers has dramatically reduced calf mortality and boosted overall health.

Dean Foods’ Stock Drops to All-Time Low (p. 11):
The nation’s largest fluid milk processor is struggling financially. In early July, Dean Foods’ common stock had fallen to just below $18 per share. Lower fluid milk sales, higher costs for energy and plastic resin are commonly cited examples for Dean Foods’ poor financial performance. But payments of interest and principle on the company’s debt are crippling.

Flooding in Midwest Disrupts Grain Transportation (p. 12):
Karen Kinstetter details how the June 2008 flooding in the Midwest damaged the transportation infrastructure (barge traffic on the Mississippi, railroads, and highways) is adding delays to movement of grain to markets.

NASS Milk Powder Price Lowest in the World (p. 12):
Writer John Bunting details how the NASS prices for nonfat dry milk are the lowest in the world. Why???

House Ag Appropriations Chair DeLauro: Mandatory NAIS for School Lunch Program Meat (p. 13):
Mary Louis Zanoni details how the chair of a key house committee wants to mandate NAIS (premises identity and individual animal ID chips) for any sources of meat (beef, pork and poultry) consumed in the School Lunch Program.

Organic Valley’s Integrity at Stake: Caught Buying Milk from TX Mega-Dairy (p. 14):
Organic Valley – the founding firm of the organic dairy movement – has been caught buying milk from a non-member Texas mega-dairy. Big controversy. Meanwhile, Organic Valley is jerking around producers in Louisiana – trying to drop their milk prices by $7.50/cwt. to $28 per cwt.

NZ “Free-Trade” Deal Would Let Fox Inside Henhouse (p. 15):
Pete Hardin rails against the dangers of a “Free-Trade” deal between the U.S. and New Zealand. The political wheels are being greased for this one.

Modern Agricultural Wisdom: Don’t Sign Nuthin’ (p. 15):
Beware of contracts, in these times. Pete Hardin details how contracts for Class III “futures,” grain contracts, and natural gas leases can all blow up in the signees’ faces.

Big Story in Dairy Commodities: What’s After Labor Day (p. 16):
The dairy commodity picture will start its “second half” some time after Labor Day – when marketers realize that high grain prices and rough forage conditions mean far less milk production this fall … and beyond! Don’t take milk and dairy commodities for granted!

June 2008 Issue No. 347

Inside this month’s issue...

Spring Weather Threatens Severe Grain Shortages Later in ’08 (p. 1):
Millions of acres of U.S. farmland in the Midwest have been drowned by torrents of rainfall in 2008. Easily, we’ll see $8 per bushel corn prices. The U.S. food production system has evolved to rely on ample, cheap corn.

DFA Faces Federal Indictment for Cheddar Price Manipulations (p. 2):
On May 19, The Wall Street Journal reported that the U.S. Department of Justice was investigation Dairy Farmers of America for alleged Cheddar price manipulation at the Chicago Mercantile Exchange. That paper implied that DFA will soon be indicted on such charges. We analyze …

May 2008 Class III Price $18.18 – May Class IV $15.26 (p. 2):
We report the May 2008 USDA class prices for cheese milk and butter-powder milk.

Key Dairy Provisions of the 2008 Farm Bill (p. 3):
Finally, legislators in Washington, D.C. have created a 2007 farm law! It’s mostly the “same-old, same-old.” Details are discussed. Most interesting is a “Modified MILC Program” which will be further clarified next month.

NMPF Announces Another Round of Cow Killings (p. 3):
Here they go again! The National Milk Producers Federation has announced details of yet-another round of killing U.S. dairy cows. This time NMPF’s rationale is to relieve dairy farmers of high costs. NMPF will kill bred heifers too – offering $1050 per head. That’s about half of prevailing market prices.

Fonterra Claims $1.2 Billion Profits in U.S. Trading (p. 3):
At the expense of U.S. dairy farmers, Fonterra (New Zealand’s quasi-dairy trading monopoly) has announced profits from U.S. trading ventures of $1.2 billion last year. Told you U.S. co-ops were giving away milk powder to Fonterra!

Feature Stories -- DFA’s Mounting Losses, $1 Million Payout & Antitrust Investigation
Read this month’s reports of the latest news on how the nation’s largest dairy co-op continues to screw up in every way possible.

No Honest Market: One Trade at CME in 10 Years (p. 5):
Writer John Bunting shows how there’s was only ONE trade of nonfat dry milk for 10 years at the Chicago Mercantile Exchange. That’s no “market,” but rather a price-setting mechanism for the milk powder price-fixers.

Farm Milk Prices: European Union & Oceania (p. 5):
We discuss prices received by dairy farmers in western Europe and Oceania. U.S. milk prices, right now, are among the lowest among major, modern dairy-producing nations.

Shocker: Illinois Ag Department Oks Bos’ Mega-Dairy (p. 6):
On May 30, the Illinois Department of Agriculture approved plans for the first “mega-dairy” proposed by Californian A. J. Bos at a site near the tiny community of Nora in Jo Daviess County. Locals are fighting back with lawsuits against the proposal.

Bos’ California-to-Nevada Raw Milk Sales Irksome (p. 6):
Californian A. J. Bos has ticked off dairy producers on both sides of the California/Nevada border with a scheme moving farm milk to fluid processors in Nevada. Nevada dairy producers whose milk has been displaced from local plants are forced to send their milk to California for processing into lower-priced butter and milk powder.

2007: CME Class III Futures Averaged $4.00/cwt. Below Settlement Price (p. 7):
Any dairy farmers want to lost $4.00/cwt. (plus commissions)? Just sign up for CME Class III futures contracts. In 2007, the average difference between CME Class III (cheese milk) futures contracts and actual monthly settlement prices was $4.00 per cwt. What a farce!

Clyde Rutherford’s “Dairy of ‘Di-STINK-tion’” (p. 8):
The cows are gone from “Old Clyde” Rutherford’s home farm. So this “president for life” of Dairylea Co-op (and DFA director) has some cows at a dairy farm where the manure handling problems create a big stink. Read about the Northeast’s most prestigious dairy leader’s slop-hole farm.

2004 CME Cheddar Price Manipulations Detailed (p. 9):
Here’s where the bear went through the buckwheat! 2004 was a wild, roller-coaster ride for Cheddar pricing at the Chicago Mercantile Exchange. That’s the year, according to The Wall Street Journal, that DFA faces indictments for alleged price manipulations of Cheddar at CME. Writers John Bunting and Pete Hardin detail that year’s cash block Cheddar’s up-and-down cycles … with behind-the-scenes motives included.

Farm Bill Fiasco: Import Assessment “Fix” Satisfies No One (p. 10):
    After many years, National Milk Producers Federation successfully lobbied for a jiggering the rules of the rules on the mandatory, 15-cent per cwt. assessment levied against dairy farmers’ milk incomes. But the “fix” stinks. That “fix” entails:
    * Extending the U.S. dairy promotion assessment to producers in Hawaii, Alaska and Puerto Rico (all deficit milk production areas). The promotion assessment is also charged to importers … but at the rate of 7.5-cents per cwt. Importers may also collect a refund on their assessments! WHAT A DEAL:
    * Half the assessment, refundable. Many U.S. dairy farmers would gladly accept that deal.

Tight Times Revive Good Management Tips for Dairymen (p. 11):
Writer Paris Reidhead reviews some basic good management for dairy farmers who are looking to tighten up their farming operations, in light of higher costs for grain and forage.

Organic Dairy Update (p. 12):
Writer Will Fantle of the Cornucopia Institute updates readers on legal matters involving challenges to the organic status of Aurora Organic Dairy of Colorado.

Details of the Wiese’s Lawsuit (p. 12):
Former dairy farmers Walter and Carla Wiese of Athens, Wisconsin have struck back, legally, against the Community Bank of Central Wisconsin – the bank that foreclosed on their farm. The Wieses filed a detailed federal lawsuit naming the Bank, numerous employees, the Bank’s board of directors, and USDA’s Farm Services Agency.

Weather Poses Big Headaches for Many Agriculturists (p. 13):
Organic farmer Karen Kinstetter writes about how tough weather is hammering many kinds of farmers across the Midwest and Plains. Karen’s report is full of key data about the U.S. and global food situations.

Dairy Cattle Replacement Prices at Auction Across the USA (p. 14):
Dairy livestock prices are up in many parts of the country. HOWEVER:
Widespread bad weather in the Midwest may force distress sale of livestock, due to shortages of grain and forage, in areas that have been smashed.

Vicious Spiral: Oil Imports + Federal Deficit = Weaker U.S. Dollar (p. 14):
Pete Hardin details the cycle of a weak U.S. dollar (due to federal deficits) and higher energy prices – especially oil. Until the U.S. currency is strengthened by long-term commitments, our costs of energy will keep climbing as OPEC nations raise oil prices to keep their net, dollar-based incomes stable.

DOJ Should Take Over DFA as a “Corrupt Organization” (p. 15):
In Pete Hardin’s opinion piece, he lays out why compelling national interests would be best served by the U.S. Department of Justice’s taking over Dairy Farmers of America as a “corrupt organization.” That move would be parallel to DOJ’s seizure of the Teamsters Union in the 1960s. No interests are served by “business as usual” at DFA that would lead to a financial collapse.

Cheddar peaks, Then Tumbles at CME: Uncertainty Ahead (p. 16):
Cheddar blocks continued their up-and-down price cycles at the Chicago Mercantile Exchange. But massive damage to this nation’s grains and forages mean that future dairy prices are unpredictable, but likely much higher.

May 2008 Issue No. 346

Inside this month’s issue...

Turning Over Some Pieces of the Dairy Puzzle (p. 1):
The past month has allowed editor Pete Hardin to see more clearly what’s ahead for dairy, including: constricting U.S. milk supplies, higher grain prices and energy prices, global scarcity and higher prices for dairy products, and reduced U.S. consumer demand.

USDA Secretary Claims Powers to Suspend Ethanol Mandates (p. 1):
In seemingly unnoticed comments buried deep in an article in the Chicago Tribune on April 18, USDA Secretary Ed Schafer claimed that he has authority to reduce mandates for converting corn to ethanol, if U.S. corn production is limited.

April 2008 Class III Price $16.76 – April Class IV $14.65 (p. 1):
Federal milk order class prices for cheese and butter-powder milk drop lower.

Worst Drought of Century Drops NZ Milk output by ?.?% (p. 2):
As the NZ milk production season concludes, debate ensues as to just how much less milk that island nation really made. Some reports say NZ is finishing at –6.5%, others say NZ lost only a couple percentage points. Regardless, NZ’s dairy export near-monopoly, Fonterra, is scrambling to secure global dairy product inventories. That’s because it’ll be tough for NZ dairy cows to bounce back from the rigors of this year’s drought.

Global Dairy Trade: Fonterra Milk Powder Auction (p. 2):
Starting later this year, Fonterra (NZ’s dairy export giant) will conduct a multi-tiered auction for poor nations to buy limited amounts of available dairy proteins.

Extremely Wet Spring Weather Stalls Upper Midwest Fieldwork; USDA: May 10 Corn Planting 26 Percentage Points Behind Normal (p. 3):
Spring field work is way behind in the U.S. – particularly in states like Indiana, Iowa, and Illinois. Corn planting is 26 percentage points behind the five-year average. The 2008 U.S. corn crop is in trouble already.

USDA Playing Games with ’08 Corn Crop Estimates (p. 3):
USDA recently announced that this year’s corn crop could be off 7%, compared to last year, due to bad weather at planting time. USDA is trying to buffer the bad new of coming crop problems and higher food costs: farmers’ planting intentions for corn were down 8% before they ever hooked up the corn planters. Bad weather will cause a double-digit decline in U.S. corn output for 2008.

Why Can’t U.S. Dairy Farmers Get World Market Prices? (p. 4):
John Bunting estimates that from July 2007 through March 2008, U.S. dairy farmers whose milk prices are set by the federal milk order program lost an average of $3.51 per cwt. of milk because our dairy commodity prices lag far behind global prices for butter, Cheddar cheese and nonfat dry milk.

Feature Story: DFA Scandal: Hanman Secretly Paid Ex-Board Chairman $1 Million (p. 5)
Read all about the latest mega-scandal to rock Dairy Farmers of America here.

Monsanto’s Tentacles Threaten Derry Brownfield’s Radio Career (p.6):
One of the nation’s leading farm broadcasters and agriculture commentators – Derry Brownfield – got his you-know-what in the wringer with an April 18 broadcast blasting Monsanto. Next day, the Learfield Network (which Derry co-founded) announced his broadcasts would be terminated. Read about this situation and other background on Monsanto’s long-term intimidation of media critics.

One Cup at a Time: Sugar River Dairy’s Excellent Yogurt (p. 7):
Ron and Chris Paris have been making yogurt in their small dairy plant in Green County, Wisconsin for six years. The Milkweed profiles their yogurt production and marketing. Interest in small-scale dairy processing is growing rapidly.

Bio-Fools Rule: Raising Corn for Ethanol Fuel is a Very Dumb Idea (p. 8-9):
The headline clearly describes writer Paris Reidhead’s thoughts on the corn-for-ethanol issue. Paris reaches back into his encyclopedia of information to explain why, for many reasons, corn ethanol is a lose-lose deal for society. He also has a well-based question-and-answer section.

USDA to Promote NAIS with Promotion Check-off Funds (p. 10):
Writer Mary Zanoni details how the business plan of USDA’s Agricultural Marketing Service plans to use agricultural commodity promotion funds (beef, dairy and pork) to promote the mandatory National Animal Identification System.

CME Changes Will Reduce Trading Information (p. 10):
In mid-May, the Chicago Mercantile will remove key information from daily trading activities – including the number of trades! Another step backwards for transparency in dairy pricing!

Global Pork Industry Collapsing??? (p. 12):
Karen Kinstetter takes a close look at trends in the global pork industry. High grain prices and a weak U.S. dollar mean that foreign producers are getting slammed by both high costs and undercutting of their prices by U.S. product. But U.S. hog producers are going backwards financially, too.

FMMO Class I Sales Down 2.54 Percent in 2008’s First Quarter (p. 13):
January-March 2008 saw overall fluid milk sales decline by 2.54% in the federal milk order, when adjusted on a daily-average basis. That adjustment is needed because February contained an extra day.

Milk Haulers’ Cost Dilemma: Outside Tank-Washing Fees (p. 13):
Instigated by Dean Foods, more and more milk processing plants are refusing to allow milk haulers to wash and sanitize their tanks at the plant. Outside costs for washing and sanitizing a milk trailer can run around $300 – that’s a bit more than $.50 per cwt. in costs.

The Russians ARE Coming (To Buy U.S. Dairy Heifers) (p. 14):
Arrangements have been sealed between the respective nation’s governments. Russia will now commence serious purchases of U.S. dairy heifers.

Junction of Agriculture & Antitrust: Leahy (p. 15):
Pete Hardin picks on Vermont’s U.S. Senator Patrick Leahy (whom he likens to a woodchuck) as a critical player in the federal government’s inability to do ANYTHING constructive for dairy farmers and consumers. Without adequate antitrust enforcement, agriculture programs mean nothing.

Export Deals & Grain Costs to Tighten U.S. Dairy Scene (p. 16):
Pending export deals for both dairy protein powders and butter will tighten up U.S. dairy supplies. Meanwhile, high grain costs are starting to depress U.S. milk production.

April 2008 Issue No. 345

Inside this month’s issue...

Feature Story #1: DFA (Enron of the Dairy Industry): “10 Years and Crumbling” (p. 1)
This story is one of our articles of the month. Read all about it here.

March 2008 Class III Price $18.00 – March Class IV $14.17 (p. 1):
Class prices in USDA’s federal milk order program are under downwards pressure due to plenty of milk in late winter/early spring. Class IV (butter-powder) is way down.

Skyrocketing Commodities’ Prices Foretell Inflation & Economic Chaos (p. 2):
Just in the first 10 weeks of 2008, spectacular inflation of core commodities took place. Corn up 25.5% … hard winter wheat +42.3% … natural gas +31.6% … and on and on. But Cheddar cheese (in CME trading) was the only core commodity to register a double-digit decline in this year’s first 10 weeks.

Farm Policy Impasse Persists in D.C. (p. 2):
Looks like Representatives and Senators will fail to meet their mid-April deadline for passing new federal farm legislation. Don’t hold your breath on this one!

Butter Fraud Indictments Issued (p. 2):
Two individuals and a warehousing firm have been indicted for fraud involving illegal repackaging of inedible butter and sale of some of that "stuff” for human consumption.

Despite Shortages, U.S. Wheat Exports Up 69% for Marketing Year (p. 3):
Despite the fact that many fear the U.S. could run out of wheat before our new crop is available in early summer, massive quantities of wheat are being shipped out of the country. The Bush administration is asleep at the switch on this one.

New Zealand Dairy Industry Faces Worst Drought in 100 Years (p. 3):
New Zealand’s dairy marketers had expected a 3% gain in milk output for that key island nation’s 2007-2008 dairy production year. But severe drought is causing what looks like a –3% net for the year, which is now finishing up. Global dairy markets are tight!

March ’08 Milk-Feed Ration Worst in Decades (p. 3):
Fast-increasing grain prices translate into USDA’s calculation that the relationship of farm milk prices to dairy producers’ costs for purchased grains is the worst in decades. And grain prices keep rising.

DFA Not Worth a Darn: $500 Million of Worthless Assets (p. 4):
DFA counts a total of $500 million combined “Goodwill” and “Other Intangible Assets on its balance sheet – as part of the co-op’s claimed $682 million equities. Further, when one subtracts out as yet unposted losses and unpaid pension program obligations … DFA’s real net worth looks very close to zero.

“Worst of the Worst” in DFA’s 2007 Audit (p. 4):
In 2007, DFA’s equities declined by $190 million; “Goodwill” and intangible assets ballooned to $500 million of “assets;” NDH lost $63.5 during October-December, after that subsidiary’s losses were posted on DFA’s books; and pension liabilities (at least one listing) total $57 million.

DFA’s Subsidiaries and “Non-Member Businesses” Drain Members’ Equity (p. 4):
DFA is structured so that profits from so-called “non-member businesses” are not shared with DFA’s member-producers. But profits in 2007 were very negative, resulting in huge losses at DFA’s subsidiaries have caused write-downs of members’ equities.

Feature Story #2: DFA’s White Elephant—NDH—Lost $134,200,000 Last Year (p. 5):
The 2007 audit of DFA reveals absolutely HORRID financial performance for its biggest subsidiary—National Dairy Holdings. Find out just how bad it was here.

“Old-fashioned Tillage & Seeds Reduce Mycotoxins in Ear Corn (p. 6):
Writer Paris Reidhead visited the Perry family’s dairy farms in western New York, where moldboard plowing and use of non-genetically modified seeds results in virtually zero contamination of their ear corn by mycotoxins.

Valid Reasons for Perry’s Round-Up Ready Seed Worries (p. 6):
Paris Reidhead explores the scientific bases for concerns about harm to animals and soils from using of “Round-Up ready seeds.

USDA OIG Credits The Milkweed for Revealing Milk Powder Scandal (p. 7):
In March, USDA’s Office of the Inspector General unveiled a long-running investigation of nonfat dry milk price reporting. OIG found that USDA’s National Agricultural Statistics Service had repeatedly failed to heed warnings about misreporting of weekly milk powder prices. Those prices are used in USDA’s formulae to calculate monthly producer prices through the federal milk order program. OIG credited The Milkweed with breaking apart this scandal.

U.S. NFDM Exports’ Volume Highest When Prices Low (p. 8):
Writer John Bunting explores historic data to show that U.S. exports of dairy protein powders coincide with periods of low domestic prices. U.S. dairy farmers are failing to reap returns commensurate with global dairy protein powder prices.

U.S. Milk Powder Exports: Quality Concerns (p. 9):
John Bunting details long-term problems with quality that cause U.S. dairy protein powders to be devalued on global markets. Too many scorched particles and too much moisture content are specific problems. What ever happened to quality control???

How Much Longer Can DairyAmerica/Fonterra Export Deal Last? (p. 10):
For the past seven or eight years, New Zealand’s Fonterra has held exclusive export control over all dairy protein powders produced by DairyAmerica’s cooperatives. How much longer can this inequitable relationship last? We explore related issues.

U.S. Butter Exports Face Stiff Tariff Barriers (p. 10):
Other nations’ import tariffs on butter are one major reason hampering U.S. exports of butter.

CME Keeps Growing: Adds NYMEX (p. 10):
The CME Group keeps growing. Following addition of the Chicago Board of Trade within the past several months, the CME group has now added the New York Mercantile Exchange to its holdings.

Dangerous Animal Feed Contaminant: What are Mycotoxins? (p. 11):
Paris Reidhead explains this feed contaminant.

More about Mycotoxins and Related Feed Contaminants (p. 11):
Feed industry professions are very worried about mycotoxins and related feed contaminates.

AMPI’s Mark Furth to Retire (p. 11):
Long-time manager of Associated Milk Producers, Inc., Mark Furth, will retire at the end of 2008.

Famine in America? Food Banks Severely Pinched (p. 12):
Writer/farmer Karen Kinstetter details how U.S. food banks are running out of both food donations and money … just as needs for food aid are skyrocketing.

Poultry Producer Scales Back: High Grain Costs (p. 12):
Pilgrim’s Pride, the world’s largest producer of poultry, is scaling back U.S. production and processing operations, due to high costs for feeding chickens.

Grain Costs Slaughtering U.S. Pork Producers (p. 12):
The squeeze between low pork prices and high grain costs is driving many pork producers out of business as fast as they can go.

DFA & DMS Abusing Competing Marketers & Producers in Northeast (p. 13):
With increased frequency, Dairy Farmers and its subsidiary – Dairy Marketing Services – are shafting small marketing cooperatives and producers.

More on Nora, Illinois “Mega-Dairy” Battle (p. 13):
Illinois ag dep’t officials send a long letter in early April to A. J. Bos, demanding to know many more details about the proposed “mega-dairy” for Nora, Illinois. Special focus is on the bedrock geology underling the site of the proposed dairy, which could house as many as 20,000 milk cows and heifers.

Audits Needed: UpState-Niagara, DMS, MD/VA, Agri-Mark & CWT (p. 13):
The Milkweed is putting out an alert to subscribers to help us get possession of audits from several dairy cooperatives.

Dairy Cattle Replacement Prices at Auction Markets across the USA (p. 14):
The glut of milk in California, coupled with high feed costs, is causing demand for springing heifers and milk cows to back off in most parts of the country. Meanwhile, prices for breeding age heifers and younger, open heifers remain steady.

Monsanto Tries to Push NY & VT Ag Chiefs on rbGH Labeling (p. 14):
Monsanto-friendlies are now leaning on the agriculture commissioners of New York State and Vermont to clamp down on dairy products’ “rbGH-Free” labeling claims.

DFA: Worthless Assets, Lying Leaders (p. 15):
Pete Hardin analyzes DFA’s financial and leadership problems.

Tough Times Ahead for All Sectors of Dairy (p. 15):
Higher costs of all kinds, coupled with declining ability to pay by consumers, presents the U.S. dairy industry with many challenges to sustain both volumes and profits.

Disconnect: U.S. Milk Glut/Global Scarcity: Go Figure (p. 16):
There’s a certain irony to watching California dairies dump milk and their marketers shipping milk/cream long distances out of state … while New Zealand’s milk production is atrophying under the worst drought in 100 years. Will U.S. dairy commodity prices ever catch up to world prices? Stay tuned!

March 2008 Issue No. 344

Inside this month’s issue...

The Big Picture: U.S. Economy Very, Very Precarious (p. 1):
We try to summarize the mega-events that are weighing against the U.S. economy … from energy costs to home foreclosures. The headline tells it all.

February 2008 Class III Price $17.03 –February Class IV $14.67 (p. 1):
Class III (cheese) and Class IV (butter-powder) are declining – reflecting lower dairy commodity prices.

Dean Foods: Profits Down, Stock Values Nosedives (p. 2):
Fortunes at the nation’s largest fluid milk processor are down. Profits for 2008 were down. Stock values have plunged into the very low “$20s.”

Canada’s New Cheese Standards (p. 2):
Canada has new regulations defining cheese standards, which has U.S. processors howlin’ mad. Why? Canadian standards don’t allow elevated ratios of “whey proteins to casein” in finished products. That’s one way to limit how much Milk Protein Concentrate (MPC) can be used in cheese products.

Jan. Cheddar Price Zaps Mar. FMMO Class I Price $2.98/cwt. (p. 2):
The price dip for Cheddar prices at CME in mid- and late-January 2008 set off a big price decline for Class I (fluid) milk The March 2008 Class I base price in federal milk orders will declines $2.98/cwt. Ouch.

Fertilizer Costs Keep Climbing Higher & Higher (p. 3):
High grain commodity prices are spurring increased global production. The weak U.S. dollar and strong demand for grain production in 2008 are driving up fertilizer costs. U.S. reliance on a large amount of imported fertilizer makes costs all the more expensive.

Alto Co-op Members Overwhelmingly OK Sale to Saputo (p. 3):
In late February, members of Alto Co-op (Waupun, WI) voted almost unanimously to accept the purchase offer for their cooperative from Saputo Cheese of Canada. Members got a $10,000 bonus and full pay-back of their equities.

Saputo Denies Mob Link Stories (p. 3):
A flurry of recent news stories in Italy and Canada have discussed alleged ties between Saputo Cheese and organized crime. Saputo personnel vigorously deny the stories have any basis.

Octogenarian Michigander’s Cow-Colostrum Cancer Cure Survives Trial (p. 4):
A jury in Marquette, Michigan found a local man “not guilty” of all but one charge in a federal trial in late February. The man was treating cancer patients with an unapproved practice: injecting a cancer patient’s blood into the pregnant cow and then having the patient drink large volumes of colostrum that contained anti-bodies.

Worst Drought in Century Cuts NZ Milk Flow (p. 4):
The worst drought in 100 years is seriously constricting New Zealand’s milk flow late in the Kiwis’ milk production season. Fonterra—New Zealand’s global dairy marketing agent—has oversold and is scouring the globe to find additional dairy supplies.

Beef Processor’s New Math #3 + #4 + #5 = #1 (p. 4):
In a flash, the Brazilian meat powerhouse JBS SA acquired two U.S. fluid processors – consolidating the third, fourth, and fifth biggest beef packing businesses in the U.S. into a single entity, which is now the largest U.S. beef processor. Will federal Antitrust enforcers take notice? Don’t bet on it!

Biggest-Ever Beef Recall from Unscrupulous CA Meat Plant (p. 4):
You’ve seen or heard about the pictures of abuse of downer cows in the Chino, CA meat packing plant. Ugly.

Global Wheat Shortage Causes Price Spikes: Famine Looms (p. 5):
Writer Karen Kinstetter has meticulously studied grain markets and details many of the factors driving up wheat prices around the world. Excellent article.

Bakers Up in Arms over High Grain Prices (p. 5):
U.S. baking interests took their protest to Washington, D.C. They’re crying the blues, as wheat prices skyrocket.

Feeding Corn-Ethanol Distillers Grains Spikes E. Coli 0157:H7 in Cattle (p. 6):
Writer Paris Reidhead details research showing big increases in the presence of the powerful, dangerous E. Coli variant – 0157:H7 – in the intestines of dairy and beef cattle fed distillers grains from processing corn into ethanol.

Florida “Milk Wars” Subsiding??? (p. 6):
Looks like things have settled down in Florida’s fluid milk supply war. Too much bleeding of finances occurred when an alternate raw milk supplier took over supplying most of the milk to Dean Foods’ plants in Florida from the local co-op.

Feature Story: Charts Detail Who’s Got Milk Pricing Power (p. 7):
View the March feature story here.

Clayton Yeutter: Sire & Architect for Decades of Failed U.S. Farm and Trade Policies – from “Free Trade” to Biotechnology (pages 8-10):
Want to put an ugly face on decades of misbegotten U.S. farm and trade policies? Then Clayton Yeutter’s your man. This guy has served in posts such as USDA Secretary, U.S. “Special Trade Ambassador” and even head of the Republican National Committee. In later years in the private sector, Yeutter has championed the interests of New Zealand dairy farmers and food biotechnology.

Nora, IL Update: State Attorney General’s Office Requests Delay (p. 10):
No final word from northwestern Illinois in the battle over siting a California investor’s mega-dairy. Illinois’ Attorney General’s Office has weighed in, directing the state agriculture department to be very cautious in reviewing the application.

Harkin Supports National Animal Identification System, Plans Hearings (p. 11):
U.S. Senator Tom Harkin (D-IA), chair of the Senate Agriculture Committee, has stated he wants to push mandatory livestock identification. Chair of the House Agriculture Committee – Collin Peterson (D-MN) – is making similar noises. Article submitted by Mary Zanoni, executive director of “Farm for Live” – an organization based in Canton, New York that opposes mandatory registration of livestock/poultry premises and creatures.

Canadian Court Rules Against Raw Milk Exports to U.S. (p. 11):
Finally, the Canadian court has ruled in a case involving illegal shipments of farm milk from Ontario Province into New York State. This issue ought to be a complete embarrassment to the New York State Dep’t of Agriculture & Markets.

Purchased Feed Costs Punishing Organic Milk Producers (p. 12):
Away for the Upper Midwest, costs for purchased organic dairy feed rations (16% protein) have topped the $600/ton mark. Major buyers remain relatively insensitive to pleas for price help from organic dairy farmers. The organic dairy dream is turning into a nightmare for many family-based producers. Ironically, big “organic” mega-dairies owned by major processors are both responsible for gobbling up grain supplies and holding down prices.

Milk Haulers to Review Tank Washing at April 21-22 Meeting in Arizona (p. 12):
The International Milk Haulers Assn. meets in Mesa, AZ in late April. The contentious issue of tank washing is on the agenda. Interested persons may find out more details at the organization’s web site at: www.milkhauler.org/events.htm

Weekly Data on Cow Imports From Canada (p. 2):
We analyze weekly numbers for dairy cows entering the U.S. from Canada. Most are going to farms in Michigan, Wisconsin, Ohio and Indiana.

Still No Answers About Cow/Horse Safety Tests for GM Alfalfa (p. 13):
Writer Paris Reidhead explores issues relating to GM alfalfa – including the fact that he still can’t get a return phone call from the developers of “Roundup Ready Alfalfa” about what, if any, safety tests were ever conducted on cows and horses.

Dairy Cattle Replacement Prices at Auction Markets Across the USA (p. 13):
Our monthly review of dairy animal prices shows stronger prices in some markets. Interest in open heifers is picking up.

Questions for Maryland & Virginia Co-op Members to Ask (p. 13):
The upcoming annual meeting of Maryland & Virginia Cooperative Milk Producers provides good time for concerned members to ask questions about their co-ops management and finances.

Tighten Up (p. 11):
Editor Pete Hardin scorns wasteful practices and strategies in dairy marketing/pricing. Hardin notes that it’s time to get back to basics, and promote fluid milk for its nutritional value, emphasize in-home use of dairy products, etc., etc. These times do not allow for such waste as goes on in dairy promotion, pricing and marketing.

Cheese, Milk Powder & Whey Prices Decline: Butter Gains (p. 16):
Dairy commodity prices are falling, except for butter. Business as usual in dairy markets. Global dairy prices are being propelled by serious drought in New Zealand.

February 2008 Issue No. 343

Inside this month’s issue...

Up/Down, Up/Down: CME Cheddar Price Gyrations Mystify Industry (p. 1):
The up-and-down price cycles of Cheddar prices at the Chicago Mercantile Exchange cash markets defies a market-based explanation.

January 2008 Class III Price $19.32 – January Class IV $16.29 (p. 1):
Class prices for the federal milk orders are down from the previous month—reflecting lower dairy commodity prices surveyed by USDA’s NASS.

Pennsylvania Issues New Milk Labeling Regulations (p. 2):
After much controversy, Pennsylvania has issued “new” milk labeling laws regarding “absence labeling” (i.e., “no this” or “no that”) for dairy processors and marketers. The announcement cools down the blaze set when state agriculture department secretary Dennis Wolff tried to bolster Monsanto’s sagging fortunes in the “No rbGH/rbST” wars.”

Rumor Mill: Pending DFA “Reblend” in Northeast (p. 2):
Due to operating losses in the region, DFA will institute a $.20 per cwt. charge against members’ milk checks to make up for losses. Inefficient.

St. Albans Co-op Sets 20-Cent Reblend (p. 2):
Monkey see, monkey do. St. Albans Co-op—Vermont’s largest dairy co-op—is instituting a $.20/cwt. charge to make up for losses. The more St. Albans has “run with the big dogs,” the worse its financial performance has become.

Alto to Become Alpo? Saputo Offers $160 Million Buyout Deal (p. 3):
The big news in Wisconsin is the $160 million buyout offer to Alto Co-op (Waupun, WI). The struggling dairy co-op members will vote in late February as to whether to accept the deal. Details: Alto members will get paid $10,000 bonus if the deal is passed, plus get paid off on 100% of their equity! Alto producers who stay with Saputo can sign up for a two-year, $.35/cwt. loyal premium. Sounds like a deal too good to be true.

Feature Stories of the Month: click here to view our two feature stories for February.
Nonfat Dry Milk Déjà vu: DairyAmerica to Underperform Again?
AFACT–”Grassroots” Group Bankrolled by Monsanto

Hispanic Dairy Products 101 (p. 5):
Hispanic consumers make up about 15% of the U.S. population currently—headed for 20% by 2020. The Milkweed profiles the demographics of Hispanics and their dairy product consumption patterns. Hispanic foods and cuisine extend far beyond their population numbers.

Lender Liability: Complex, Important Legal Issue for Agriculture (p. 6):
Attorney Susan LaCava (Madison, Wisconsin) writes about the complex area of “lender liability” … with a special focus on questionable farm lending practices. Interesting reading!

Nora, IL (pop. 200): “Ground Zero” for California Zillionaire’s (?)?,???-Cow Mega-Dairy Plans (pages 7-10):
In this special four-page report, Editor Pete Hardin lays out the battle at Nora, Illinois, where California dairy figure A. J. Bos is proposing to drop what he wants to become a pair of mega-dairies totaling more than 20,000 dairy animals. Neighbors opposing Bos’ plans are fighting back, and have succeeded in gaining votes against the project from a key committee and, very recently, the full Jo Daviess County board of supervisors. Final say in siting of mega-farms in Illinois rests with the state department of agriculture. Critics see severe “faults” in Bos’ mega-dairy plans, due to karst bedrock (fractured dolomite limestone). In the grander scheme of things, what’s happening: A. J. Bos’ move to Illinois represents an early wave of an exodus from California dairying.

Fly Problems at Aurora Organic Dairy’s Gill, CO Dairy Irk Neighbors (p. 11):
Aurora Organic Dairy’s farm at Gill, Colorado had the neighbors hopping up and down made due to fly problems in 2007. Fly control measures at the organic dairy failed … completely. Neighbors want to close down the farm.

Aurora Organic Dairy: Vertically-Integrated Scam (p. 11):
Fly control is just one of the many questions surrounding Aurora Organic Dairy. How can dairies with thousands of dairy animals get the mandatory, 120-day access fresh pasture???

Aurora Organic Dairy Owner Buys Most Expensive Home in Boulder, CO (p. 11):
Yuppies and their castles! Owner of Aurora Organic Dairy—Marc Peperzak—has recently acquired the most expensive residence in Boulder, Colorado. Peperzak paid about $1150 per square foot for his new condo.

Most of what You Want to Know About Bovine Manure (p. 12):
Paris Reidhead details a most important subject: bovine manure.

Dairy Animal Prices Poised for More Gains (p. 13):
Lots of questions about what good dairy animals are worth … and what they’ll be worth in the future. Pete Hardin surveys dairy animal prices with some key considerations for owners who wish to maximize their net worth over time.

CWT Announced Program to Kill Bred Dairy Heifers (p. 14):
The ignorance of National Milk Producers is truly reflected in the most recent announcement from the “Cooperatives Working Together” program: to subsidize KILLING bred dairy heifers. Pete Hardin scorns the motives and mentality behind this idea.

Shut Up and Eat Your Wheatie (p. 15):
$15/bushel wheat? Pete Hardin details data on the shortage of wheat-—both globally and in the U.S. If anything, the U.S. government is being naïve in its handling of the wheat crisis. Hardin analyzes how bad weather has badly damaged the winter wheat crop in the southern and central Plains. The world is scrambling for wheat supplies, with U.S. exports rising. It’s likely that the U.S. will run out of wheat before the new crop is in—unprecedented!

CME Cheddar Prices Vary; Butter and Powder Prices Decline (p. 16):
Our monthly review of U.S. dairy marketing trends … with big question marks hanging over the irrational ups and downs of cash Cheddar markets at the Chicago Mercantile Exchange.

January 2008 Issue No. 342

Inside this month’s issue...

Dairy’s “New Era:” Higher Prices, Costs; Greater Risks and Opportunities (p. 1):
The world of dairy we knew has changed dramatically. Higher grain and energy costs are causing a recalculation of just about every imagined “efficiency” in the modern U.S. dairy farm community. Pete Hardin discusses these topics in a wide-ranging thought-piece on dairy’s new realities.

December 2007 Class III Price $20.60—December Class IV $19.18 (p. 1):
Take a good look. It’ll be at least a few months before we see “$20-something” FMMOs class prices for manufactured dairy products.

USDA January 11 Grain Reports Jolt Agriculture (p. 2):
A set of grain reports and projections were issued by USDA on January 11—and the near-immediate response was to propel most 2008 corn future above $5 per bushel, while soybeans nearly hit $13 per bushel. Global grain shortages, and a weak U.S. dollar, are driving grain prices sky-high.

NYS “Canada Milk Imports” File: 300 Pages Missing (p. 2):
NYS Department of Agriculture & Markets officials decided to withhold more than 300 pages of documents about the Canadian milk import scandal from an open records request by writer John Bunting. What’s so secret that a reporter can’t see it??? Does Gov. Eliot Spitzer have another scandal brewing? We’ll dig further.

Feature Story #1: Wheat Shortages Loom for U.S. and World (p. 2)

Feature Story #2: Russian Buyers Likely in U.S. Dairy Heifer Market by Mid-2008 (p. 3)

Rumor mill: Dean Foods Puts on Lipstick for Pepsi (p. 3):
A number of new executives hired at Dean Foods seem to have a common tie: backgrounds with PepsiCo. Is the financially-troubled Dean Foods trying to sell the cow before it dies?

Closer Look at Cheddar Prices & Markets (p. 4):
John Bunting takes a hard look at a lot of data on U.S. Cheddar production, pricing and market trends. Conclusion: Something’s terribly wrong with Cheddar pricing—and that impacts virtually all dairy pricing.

U.S. Milk Powder Problems: Exports Down, Production Up (p. 5):
Milk powder prices are falling in the U.S. and western Europe. Pete Hardin explores the complex relationship between Fonterra (NZ) and DairyAmerica (the U.S. milk powder pricing cartel). Conclusion: Fonterra has repeatedly failed to foresee coming waves on behalf of its efforts to sell DairyAmerica’s milk powder exports.

Milk-Feed Price Ratio: History No Clue to Future (p. 6):
The sudden upsurge of grain costs, and short-term declines in milk prices, promise to squeeze dairy producers buying grain and hay. Tough times ahead staying ahead of grain costs. Writer John Bunting projects that, using March 2008 CBOT grain futures for corn and soybeans (as of January 11, 2008), dairy farmers would need a milk price of $34.55/cwt. to maintain a 3:1 milk price feed ratio.

History of “rbGH-Free” Dairy Product Labeling Battles (p. 7):
Editor Pete Hardin has been beating up Monsanto and Posilac (rbGH) in print for more than 20 years. Hardin reflects on the long history of legal battles involving Monsanto’s direct and indirect attempts to deny concerned consumers’ right to know whether their milk and dairy products come from cows injected with Monsanto’s controversial biotech hormone.

“Dumb Luck” Drywall Recycling: Many Advantages for Dairy Farmers (p. 8-11):
Jim Kramer of Brooklyn, Wisconsin has a unique business—recycling scraps of drywall into a lime-like powder that has many benefits to agriculture. The gypsum powder chemically reacts with ammonia produced from livestock wastes to: reduce odors, improve health of baby animals (like calves and swine), reduce fly populations, and other benefits. AMAZING STORY!

What’s Driving Budget-Budget Organic Grain Prices (p. 11):
Writer Paris Reidhead has spent a lot of time interviewing sources in the organic grain trade to find out why prices are so high. Organic dairy farmers who are buying grain are finding it very difficult to cash-flow positively.

Analysis: Inside Organic Grain Trends (p. 11):
We welcome Kewaunee, Wisconsin dairy farmer and organic certifier Karen Kinstetter as a contributor! From her inside perspective, Karen details the almost impossible shortage of organic feed in the U.S.

U.N. World Food Outlook Troubling (p. 12):
The United Nations’ Food and Agriculture Organization takes a critical look at global grain supplies. Wheat and corn supplies are very scarce.

Mostly Quiet on rbGH Front (p. 12):
Mercifully, the past month has seen few changes in the status of Monsanto-inspired efforts to get individual states to block “rbGH-Free” labeling claims by dairy processors and retailers.

USDA Wants Mandatory Animal ID System for Nearly All Dairy Farms (p. 13):
We welcome another new contributor—Mary Zanoni of Canton, New York. Mary heads a group, “Farm for Life,” which opposes federal and state efforts impose mandatory premises and animal identification systems. Get this: Mary reports in this issue that at least U.S.-based dairy breed associations and many DHIA (herd testing) organizations plan to impose mandatory premises ID registration requirements on their members in 2008!

Beware of Class I Impact When Cutting Whey Values (p. 14):
Pete Hardin warns changing whey formulae in state and federal milk pricing systems will cut Class I (fluid) milk prices—which is a bad idea.

Dairy Cattle Replacement Prices at Auction Markets Across the USA (p. 14):
Our latest survey of dairy cattle prices from more than a dozen markets around the country. Some sales are strong, but buyers are getting nervous about trends in both milk and purchased feed prices.

“Can’t Do” Acting USDA Chief “Feels Sorry For” Livestock Producers (p. 15):
Pete Hardin blasts acting USDA Secretary Chuck Conner for comments that official made on an early Saturday morning farm radio program, in which Conner said he “felt sorry for” livestock producers (due to the upwards explosion of grain prices). Hardin notes that Conner has the legal directive to raise farm milk prices, if milk supplies are threatened by high grain costs paid by dairy farmers. NEVER has USDA imposed such powers. Section 608c (18) of USDA’s laws give the Secretary that power. Hardin reprints that law on his page.

CME Cheddar Price Antics Not Rational (p. 16):
The ups and downs of Cheddar prices at the CME are not based on honest market trends. Here in early 2008, prices for both Cheddar and nonfat dry milk are declining, as domestic milk volume is up and demand is worrisome, due to the nation’s economic problems.

December 2007 Issue No. 341

Inside this month’s issue...

Cheese Market Remains Tight, Despite CME Price Ups & Downs (p. 1):
Block Cheddar prices at the Chicago Mercantile Exchange remain near all-time peak prices, despite a one-day decline (Nov. 29) of 19.25 cents/lb. U.S. Cheddar output off significantly since April. Domestic and export demand strong.

November 2007 Class III Price $19.22 – November Class IV Price $20.40 (p. 1):
Prices for dairy commodities (except butter) are driving strong producer prices in USDA’s federal milk order system.

Dean Foods Again Procuring Own Independent Producers (p. 2):
In parts of the Southeast and Northeast, Dean Foods is back in the country directly procuring milk from independent producers. What’s up with DFA’s “exclusive” raw milk sales deal to Dean Foods?

Whey Less: CDFA Cuts Producers’ Cheese Milk Price (p. 2):
OUCH! The California Department of Food and Agriculture has announced a new pricing system that will reduce prices paid producers for Class 4b (cheese) milk by between $1.50 and $2.00/cwt. Processors have whined loudly about whey prices being too high.

PA Governor Says “WHOA!” to Milk Labeling Restrictions (p. 3):
Deluged by angry calls, e-mails, letters and faxes from consumers, Pennsylvania governor Ed Rendell has at least temporarily halted the state’s agriculture department from implementing a ban on “absence labeling” of dairy products. Is Pennsylvania “Posilac’s Last Stand?”

Kraft Will market Some “rbGH-Free” Cheese Products (p. 3):
Kraft Foods will start selling 2% natural and “Singles” made from “rbGH-Free” milk soon. As goes Kraft …

WI Ag Dep’t Sneaking Through Raw Milk Farm-Share Ban? (p. 4):
Opinion diverge, but many fear that Wisconsin’s agriculture department is using a massive revision of state dairy sanitary codes to effectively halt raw milk sales in the state.

CA Using Coliform Test to Kill Raw Milk Sales (p. 4):
Without notice to the raw milk community (producers and consumers), California’s legislature approved bills that now mandate coliform tests which will make it impossible to sell raw milk in the state.

California Water Supplies & Politics Critical for Ag (p. 5):
Water issues are very critical in California, and other western states. Good question: how long can low-end use of water to grow alfalfa for dairy cows compete with higher-end industrial and human needs?

Don’t Expect 2007 U.S. Farm Law in 2007 (p. 5):
The headline says it all.

$6.50/Vial: HeiferPlus Dramatically Boosts Heifer Calf Numbers (p. 6):
Writer Paris Reidhead details how an inexpensive, new product—HeiferPlus—helps change the normal yields of heifer calves up to nearly 80%. This product could revolutionize the U.S. dairy industry!

NYS Ag Commissioner Goes Bonkers over Canadian Imports (p. 7):
NYS Agriculture Commissioner Patrick Hooker has weirded out over the story last month in The Milkweed. Hooker claims to be fighting against illegal Canadian raw milk imports, when in fact his department let them in!

NYS Ag Dep’t Broke Own Rules (p. 7):
Last May 23, 2007, the NYS agriculture department allowed Canadian milk to keep flowing into the U.S., despite a final ruling by the Canadian Supreme Court that cross-border milk flow was illegal. The Milkweed explains how at least for one week, NYS’ ag department violated its own rules by allowing milk imports before state inspectors could complete necessary inspections.

Bad Idea: U.S./India “Free-Trade” Deal Proposed (p. 8):
At a speech in India, California Congressman David Dreier stated he’ll introduce a bill calling for “Free-Trade” negotiations between the U.S. and India to be started. From a livestock disease standpoint, The Milkweed explains how such an idea would be very bad. India is a hotbed of “Foot and Mouth Disease” outbreaks. FMD disease may survive several weeks in processed food products—plenty of time to travel by ship from India to the U.S.

176 In Congress Belong to Caucus on India (p. 8):
A not-so-grand total of 176 members of the U.S. House of Representatives belong to the “Caucus on India and Indian Americans”—a likely incubator for a U.S./India “Free-Trade” deal. The Milkweed lists some of the Congress persons who should know better!

USDA FINALLY Answers Senators’ Letters Re: Milk Powder Pricing (p. 9):
At long last, USDA has finally replied to two letters, written months ago, by groups of U.S. Senators demanding answers about nonfat dry milk powder reporting and pricing problems. No, the letter didn’t really answer many hard questions.

Monsanto P.R. Firm Hosts “Rural Americans for Hillary” Event (p. 9):
This past fall, a Monsanto-linked public relations firm—Troutman Sanders Public Affairs Group—hosted a fund-raiser in Washington, D.C. for the “grassroots-sounding” political group: “Rural Americans for Hillary.” It’s the silly season.

U.S. Dairy Livestock Price Report (p. 10):
Prices steady for springers and open heifers in many parts of the U.S. Watch hay and feed supplies carefully. Hay is tight and limits buyers’ interest in young dairy animals.

November 2007 Issue No. 340

Inside this month’s issue...

What’s Going to Happen with Milk Prices??? (p. 1):
Pete Hardin offers his projections on farm milk prices through the first half of 2008, along with the factors that will drive them. In quick summary, he projects 4th quarter 2007 prices will be $1.00-1.50 lower than 2007’s third quarter. For January-March 2008, Hardin estimates farm milk prices will drop another $1.25-1.75/cwt. below 2007’s fourth quarter. And for 2008’s second quarter, Hardin bets that milk prices will rise to at least something close to the 4th quarter of 2007.

Big Algerian Milk Powder Deal Fizzles/U.S. Prices Decline (p. 1):
Around November 1, it became clear that U.S. nonfat dry milk would not supply a big (25,000 metric ton) purchase offer from Algeria. Instead, U.S. powder will comprise only about 10-15% of that deal. Sources say that Fonterra (the New Zealand group that has exclusive contract to export U.S. milk powder) misgauged world markets and missed the sale. As a consequence of failure to seal the Algerian deal, milk powder prices at CME and DairyAmerica’s spot price immediately dropped.

October 2007 Class III Price $18.70 – October Class IV $21.31 (p. 1):
USDA’s announced Class III (cheese) and Class IV (butter-powder) milk prices for October 2007. Class III represents a decline of $1.37 from the September 2007 price. Class III remains strong for this month.

Some California Milk Buyers to Limit Producers’ Daily Volumes (p. 2):
California is brimming over with farm milk. Finally, some buyers are taking steps to limit how much milk producers can expect the marketers to handle at market prices.

Australian Drought Continues, Oceania Dairy Supplies Tighten (p. 2):
Milk production in Australia is hammered by prolonged, severe drought. Meanwhile, New Zealand’s farm milk output is not able to allow marketers to fulfill contracted sales of manufactured dairy products.

Protein Shortage: Massive Soy Imports Entering the U.S. (p. 2):
Gov’t data bear out this nation’s protein shortage: exports of soy products for the first eight months of 2007 equal less than one-tenth of soybean imports entering the U.S. Most soybean imports have come from Canada—where the currency appreciation (vs. the U.S. dollar) means further imports from that source will be costly.

Dairy Promotion Questions Unanswered in Farm Bill Fracas (p. 3):
As the politicians fight over the 2007 farm bill, questions about dairy promotion programs have become verboten subjects for many of the big wigs. Despite reauthorization of the National Dairy Board for another five years, House and Senate ag leaders don’t want to hear questions about accountability and effectiveness.

The Russians Are Coming … and They Want Heifers (p. 3):
Russia, which is brimming over with surplus funds from energy sales, wants to modernize and grow its food system—with a big emphasis on dairy. Russians are looking for up to half a million dairy heifers—they’re buying heavily in Europe and Canada. Will Russian demand boost prices for U.S. heifers, either directly … or through cross-border deals with Canadians?

Agriculture to Shift from Arid West; Midwest Farmland Values to Soar? (p. 4):
Severe drought, which threatens to become prolonged, will force a dramatic shift of food production from arid western deserts back to the Upper Midwest—where the moisture usually is available free. Energy and drought threaten to change the face of American agriculture faster than anyone can imagine.

Details of Cornell University’s rbGH Test Scarce to Come By (p. 5):
In the early 1990s, USDA hired Cornell University to develop a test for rbGH residues in cow’s milk. In 1997, the U.S. Patent Office granted a patent for the test. But details are hard to track down, as writer Paris Reidhead determines. Reidhead also reports that a test to determine of milk has been produced from cows receiving injections of Posilac (Monsanto’s diabolical cow growth hormone) will be announced in Spring 2008.

Ohio Holds Hurry-Up rbGH-Labeling Meeting (p. 5):
Following Pennsylvania’s lead, the Ohio Department of Agriculture held a public meeting about issues concerning labeling of consumer dairy products made from milk from herds that do not inject their cows with Posilac. It’s doubtful that Ohio will mimic PA’s ban.

“Quickie” NY Inspections Save Canadian Farms’ U.S. Milk Markets (p. 6):
This shocking expose by John Bunting is our “Story of the Month.” Read all about it here.

PA Bans “rbGH-Free” Dairy Product Labeling, Effective 1/08 (p. 7):
In late October, under flimsy reasons, Pennsylvania’s Secretary of Agriculture, Dennis Wolff, banned dairy processors from labeling their consumer products in any fashion that states the contents came from dairy herds where the cows have not been injected with Monsanto’s Posilac. Dairy processor and consumer groups are plotting legal challenges.

Organic Foods are Found to be More Nutritious (p. 8):
A study from England found that organic foods are far more nutritious than their non-organic counterparts.

Dairy Today/Monsanto Cancel All “Forums” for Nov. 5-9 (p. 8):
Strange. With only a couple days’ notice, Dairy Today (a dairy farmers’ publication) and Monsanto cancelled about ten meetings for dairy producers for the week of November 5-9. The meetings were to have been held in an area stretching from western New York and Pennsylvania to Indiana.

Russian Buyers Reject U.S. Butter Due to Lactic Acid (p. 8):
Several hundred metric tons of U.S. butter in Russian warehouses are being refused because they were manufactured using lactic acid (a preservative). It’s been a long time since the Russkies could afford to turn up their noses as perfectly good food!

Cornucopia to USDA: Make Aurora Pay $.15/cwt. Promotion Fee (p. 9):
The organic industry’s watchdog—the Cornucopia Institute—has complained to USDA’s Agricultural Marketing Service that Aurora Organic Dairy of Platteville, Colorado should be retroactively forced to pay the $.15/cwt. fee assessed for dairy promotion. In 2005, USDA exempted organic dairies from paying the promotion assessment. But Aurora’s recent problems with complying with organic rules raise questions about whether the company could validly have been exempted from these payments.

Organic Foods Groups and Consumers File Suits Alleging Aurora Organic Dairy Committed Fraud (p. 9):
Food groups and consumers have filed lawsuits against Aurora Organic Dairy, alleging that firm fraudulent labeled dairy products as “Organic” when, in fact, USDA recently determined that more than a dozen, long-term, “willful” violations of organic rules had been committed by Aurora.

Dairy Cattle Replacement Prices (p. 10):
Our monthly profile of national dairy livestock prices shows prices steady. Top end springers are hot. In the Southeast, producers are selling off young heifers to get money to buy hay for milk cows.

Canadian Border to Open November 19 – Don’t Worry (p. 10):
On November 19, the Canadian border will reopen for transfer of dairy animals from Canada to the U.S. Some in dairy have posited this event as the worst thing since Bruce L. Osis, but The Milkweed puts an opposite spin on this event. For starters, the value of the Canadian dollar will make importing dairy heifers very expensive.

Milk from rbGH-Injected Cows IS Different (p. 11):
Pete Hardin explains, citing various studies, four ways in which milk from rbGH-treated cows is different from “normal” cows’ milk. So much for the “no difference” and “the same” claims by Monsanto and its allies.

Cheddar Prices Post Gains at CME, But Milk Powder Prices Decline (p. 12):
Cheddar prices at the Chicago Mercantile Exchange have risen about 15 cents per pound in the past few weeks—up to the $2 per pound level. Butter prices are showing some life recently—up to $1.39 per pound range. And milk powder prices are falling—due to a failure to gain more volume from a big Algerian sales contract.

October 2007 Issue No. 339

Inside this month’s issue...

Could Senate Meltdown Leave House Plan as Only Farm Bill Option? (p. 1):
The Senate agriculture committee is paralyzed by staff in-fighting. Majority leader Harry Reid (D-NV) has warned ag committee chairman Tom Harkin (D-IA) that unless Harkin gets the job done by the end of October, Reid will take the horrid House bill to final mark-up. The Milkweed reviews the key dairy portions of the House ag bill and finds them lacking.

Senate Ag Committee Staff Chaos Imperils Farm Bill Process (p. 1):
Failure to move ahead on farm bill considerations is placed squarely on the shoulders of Senate ag committee chief of staff Mark Halverson … and his political patron, Iowa Senator Tom Harkin. “Total chaos” is how Capitol Hill insiders describe events within the Senate ag committee.

September 2007 Class III $20.07 – September Class IV $21.61 (p. 1):
Class III and Class IV prices stay above the $20/cwt. mark for September, although it looks like Class III (cheese) milk prices will fall below the $20 level in October.

Crops: Plenty of Corn, But Soybeans & Forages Look Very Tight (p. 2):
A big U.S. corn crop, in tandem with a sharp decline in the fortunes of the ethanol sector, mean that in corn country, there will perhaps be more corn by late fall than anyone knows what to do with. USDA estimates a 13.3 billion bushel crop. But soybeans are a completely different story. Soybeans are estimated at only 2.6 billion bushels—down 19% from 2006’s crop. And The Milkweed’s analysis on soybeans is that USDA’s October 12 crop estimate was overtly optimistic on yields. Coupled with tight forage supplies, dairy farmers’ costs of purchased proteins in the upcoming year will be very, very expensive.

On the Organic Dairy Front … (p. 2):
We review three key areas of interest to organic dairy farmers—1) sky-high grain costs, 2) buyers pounding organic milk prices, and 3) Aurora Organic Dairies’ threats against activist groups that continue to hound that Colorado mega-dairy over massive violations of the USDA’s organic rules.

CWT – Here They Go Again with Phony Numbers (p. 3):
Writer John Bunting takes apart recent claims by the “Cooperatives Working Together” program that CWT has added $.75/cwt. to U.S. producers’ milk prices so far in 2007. The various numbers for dairy exports claimed by CWT don’t add up—either by CWT’s prior claims or by its academic hireling Scott Brown. CWT is a cash-flow scam.

More Raw Milk Marketers Going “rbGH-free” (p. 3):
Prairie Farms … the Central Milk Producers Cooperative … some DFA regions … (and soon) Smith’s Dairy—all are new entrants, or are planning to join soon, the “rbGH-free” milk bandwagon. Couple other items: Cheese and yogurt marketers are now under growing “rbGH-free” pressure. And we must wonder, how much longer can Monsanto profitably keep marketing Posilac?

Dean Foods Drops Earnings Forecasts, Blames High Milk Costs (p. 4):
Blaming high milk costs as a convenient excuse, Dean Foods has dramatically scaled back its earnings estimates for the second half of 2007. The real problem: too much debt. Debt repayment and interest costs dramatically exceed Dean Foods’ historic (2004-2006) quarterly profits. Wall Street is not being kind to Dean Foods’ stock value.

Next Dairy Pricing Scandal: Butter (p. 4):
Right now, cash prices for Grade AA butter at the Chicago Mercantile Exchange are $1.28 per pound. That’s less than half of the price for Western Europe reported by USDA’s Dairy Market News. As best we can, The Milkweed is putting together all the pieces in butter, including: U.S. prices half of global prices, reports that foreign interests own much butter and anhydrous listed as “inventories” by USDA’s monthly “Cold Storage” data, butter and anhydrous milkfat exports listed by the CWT scam (that don’t show up on U.S. gov’t export data), and insiders telling us that foreign interests are waiting until January 2008 export subsidy declines to move huge quantities out of this country. Once again, the U.S. dairy farmers see low commodity prices while global markets are sky-high. This situation is shaping up just like the “milk powder pricing scandal” of the past year!

Look Out! DFA Launches “Cost-Cutting” Efforts (p. 5):
Dairy Farmers of America is under financial pressure to dramatically cut costs. Nothing like a big co-op meeting in Kansas City for Rick (alias, “Tricky Rick”) Smith to tell the co-op’s big-wigs that news. What’s wrong??? The new era of caution by financial lenders raises some serious questions about DFA’s assets, debts, and certain red-ink operations. Of course, the easiest way for DFA to “cut costs” is simply to pay producers less for their milk.

DFA Lawyers Goof Up Internal Property Transfer in Louisiana (p. 5):
How many errors can DFA’s in-house counsel David Geisler make on a seemingly simple, in-house transfer of real estate properties in Washington Parish, Louisiana? Let’s see: 1) No complete statement of remuneration, 2) No witnesses names on the title transfer documents, and 3) DFA isn’t even listed as the owner of some of the property transferred!

Dairy Farmers Should See Red: U.S Commodity Prices Way Below World Levels (p. 6-7):
This story is our “Story of the Month.”

U.S. Powers that “Bee” Continue Ignoring EU GM Research (p. 8):
Paris Reidhead revisits the subject of bee “Colony Collapse Disorder,” reviewing what U.S. scientists believe may be responsible for the scary disappearance of many bee colonies. But virtually ZERO scientists in the U.S. are looking at the possibility that bee deaths may be linked to genetically-modified (GM) crops. In Europe, governments have destroyed tens of thousands of acres of GM canola, due to research linking bee deaths to GM pollen. See no evil.

Dairy Cattle Replacement Prices at Auction Markets Across the USA (p. 10):
Our markets survey finds that prices for Holstein springers are increasing in some markets, and declining in others. Breeding-age, open heifer prices remain strong.

No Word from USDA to Senators on Milk Powder Pricing Scandal (p. 10):
USDA has still given no formal answer to two letters (written in May and August 2007) by a group of U.S. Senators who asked tough questions about the milk powder pricing scandal of the past year. A cover-up???

Judge OKs Antitrust Lawsuits to Proceed vs. DFA & Dean Foods (p. 10):
The private antitrust lawsuit against Dairy Farmers of America and Dean Foods has progressed to the “discovery” phase. Lawyers for plaintiffs, who allege that DFA, Dean Foods (and other cooperatives and individuals), conspired to deny access to fluid milk markets in the Southeast. This one is a GO!!!

Better Ideas for the 2007 Farm Law (p. 11):
Pete Hardin details some items that ought to be in the 2007 federal Farm Law, to help create a more equitable and modern dairy industry. Not all of these suggestions will be welcomed by the “big boys.”

U.S. Dairy Commodity Prices All Below World Market Levels (p. 12):
Pete Hardin discusses a variety of factors in the dairy market place and projects that, after a downturn in farm milk prices in 2007’s fourth quarter (compared to quarter three), a combination of tight purchased protein supplies and (sometime in 2008) demise of Monsanto’s Posilac will create tighter U.S. milk supplies and even higher prices for U.S. dairy farmers. Beware when U.S. prices approach global levels!

September 2007 Issue No. 338

Inside this month’s issue...

Feature Story: rbGH & Human Safety Special Section

Complex, Unknown Factors Delay Honest Dairy Forecasts (p. 1):
Intense interest in dairy focuses on questions concerning “what’s ahead” for U.S. production and prices. The Milkweed takes the position that there are too many uncertainties right now to make an intellectually honest call. Shortages of hay and uncertainty about the quality/volume of 2007 crops (especially soybeans) have us waiting until the grain combines mostly park for the winter, before we’ll have a good grip on dairy forecasts.

August 2007 Class III Price $19.83 – August Class IV $21.87 (p. 1):
Lower whey prices helped drive down Class III (cheese) milk prices for August 2007.

FDA: Top Priority for Changing Yogurt Standards (p. 2):
The Food and Drug Administration has listed as a top priority completing the petition submitted by the National Yogurt Association (NYA) for changes in standards for dairy products allowed in the manufacture of yogurt. NYA wants to use any “milk derived ingredients” in the manufacture of yogurt. Yuk!

New York Times Reports: “World Shortage of Milk” (p. 2):
Must be true, when the daily press reports that global milk supplies are very, very tight!

Wall Street Analyists Hammer Dean Foods’ Stock Ratings (p. 2):
The tide is going out on Dean Foods’ stock values. Stock prices are dropping seriously. Wall Street watchers are turning negative in their ratings for Dean Foods’ future prospects.

Fraud: 99% of CWT’s 2007 Anhydrous Exports Fictitious (p. 3):
A highly-placed source in the CWT program has revealed that only a tiny fraction of the anhydrous milk fat exports claimed to have been subsidized by the “Cooperatives Working Together” program in 2007 have actually occurred.

CWT’s 2006 Anhydrous Exports Not Substantiated (p. 3):
Same story for 2006—exports of anhydrous milk fat claimed by CWT are far lower than total export data for that category reported by the U.S. International Trade Commission.

SMI to Retain $.50/cwt. from Milk Checks, Will Restructure Fluid Plants (p. 4):
Southeast Milk, Inc. (SMI) has announced it will retain 50-cents per hundred from members’ milk checks for July 2007 through June 2008, in order to bolster the co-op’s financial reserves. SMI—Florida’s major co-op—has been pounded by loss of in-state outlets for its raw milk by a competing milk co-op that’s bringing in farm milk from as far away as New Mexico.

If “Posilac” Goes Adios, 5-6% Decline in U.S. Milk Volume Projected (p. 4):
The Milkweed details how the disappearance of Monsanto’s synthetic, milk-stimulating cow hormone (trademarked and sold as “Posilac) would cause a five to six percent decline in the nation’s milk supply, on a short-term basis.

USDA Slaps Aurora Organic Dairy for Multiple Violations (p. 5):
A settlement between USDA and Aurora Organic Dairy (Platteville, CO) has resulted in penalties and cutbacks of production, resulting from more than a dozen documented violations by Aurora of USDA’s organic rules. But gutlessly, USDA didn’t put Aurora out of business!

USDA Creates GMO Alfalfa Stand Hot-line (p. 5):
In compliance with a judge’s ruling earlier in 2007, USDA has created a phone “hot-line” and Web site for concerned persons to check on whether there are stands of Monsanto’s “Roundup Ready” alfalfa planted near them.

Monsanto’s Latest Dairy Technology: Sexed Semen—Dollars, If Not Sense (p. 6-7):
To try to reverse shortages of U.S. dairy heifers, USDA helped develop, and Monsanto is marketing, so-called “sexed semen”—which promise about 85% heifers. Atop concerns about further narrowing of dairy cattle’s genetic base, lower rates of conception and higher costs for “sexed semen” don’t always add up, compared to normal AI.

RFID Chips Caused Malignant Tumors in Lab Rodents (p. 7):
OMIGOSH!!! Tests conducted as far back as ten years ago showed that laboratory animals implanted with “radio frequency identification” (RFID) chips caused cancer tumors. Government agencies ignored these warnings, and are pushing ahead with programs to mandating RFID chips be placed in U.S. food animals.

U.S. Whey Prices Dropping Significantly Below Global Prices (p. 8):
Whey prices are sliding in the U.S., down into the “50s” (cents per pound), even though global whey prices are in the “high 60s). Looks like certain parties are trying to knock down their cheese milk costs by attacking the whey complex price structure.

“Grassroots” Dairy Group Promoting BAD Idea: Mandatory “Son of CWT” (p. 8):
A so-called “grassroots” dairy group based in Vermont—Dairy Farmers Working Together”—is running around the country babbling about a dairy policy idea that would create a $.15/cwt. deduction from dairy farmers’ milk checks to subsidize dairy exports and kill cows—a clone of National Milk’s (worthless as tits on a boar) “Cooperatives Working Together” program. BAD IDEA.

F&A Dairy of California, Inc. Bounces Checks to Milk Suppliers (p. 9):
In late August, about half the checks issued to raw milk suppliers by F&a Dairy of California, Inc. started bouncing. Will producers be fully repaid? Will F & A be forced into bankruptcy? The plant takes in 40 trailers of milk per day—critical volume in California’s stretched-to-the-seams milk plant picture.

California Whey Hearing Set for October 10 (p. 9):
On October 10, the California Department of Food and Agriculture will hold a hearing on a proposal by F&A Dairy of California (see above) to eliminate the whey price factor from Class 4-b (cheese) milk pricing. Worry is, that if CDFA gives the cheese plants this request, that the USDA federal milk order program will follow. Whey pricing IS a problem for cheese plants.

National Dairy Livestock Price Report (p. 10):
We find overall price stability for dairy livestock around the country. Some markets up, some markets down. Some holding. Where markets are stronger, local crops are better.

R-CALF Member Reports “Cattle ID” Woes in Australia (p. 10):
Proponents of mandatory animal ID in the U.S. point to Australia’s similar program, that’s been in effect for three years. But “success” is not what a visited from the upstart cattle producers group—R-CALF USA—reports from a recent visit.

“No Test” Impairs “rbGH-Free” Integrity (p. 11):
Yes, the skunks (Monsanto and friends) are on the run, but the lack of an actual residue assay test to detect whether milk has been produced from herds where rbGH is injected into cows looms as a critical problem. Inability to PROVE that milk is truly “rbGH-Free” could haunt dairy’s image with concerned consumers.

Cheese Prices Strengthen, Then Fall; NFDM Flat; Butter and Whey Drop (p. 12):
Our dairy commodity market review finds Cheddar prices at CME dropping a total of 16 cents per pound in the last two days before we went to press. CME prices for Cheddar, Grade AA butter and nonfat dry milk are all significantly below world-market prices.

August 2007 Issue No. 337

Inside this month’s issue...

Feature Story: Sky-High Global Prices = Future U.S. Prices, IF … (p. 1)

U.S. Hay/Forage Supplies Dangerously Tight, Prices Climbing (p. 2):
In many parts of this country, 2007’s harvests of hay and forage have been very disappointing. We’re setting up to see availability of forage as a critical limiting factor for milk production in the coming year.

Has DFA Engaged in “Phantom” Exports of Anhydrous Milkfat? (p. 3):
For the first five months of 2007, National Milk Producers Federation’s “Cooperatives Working Together” program claims to have subsidized exports of 1995 metric tons of “anhydrous milkfat” (99% pure butter oil) through Dairy Farmers of America. But data from the U.S. International Trade Commission for January-May 2007 shows exports of that category (under World Trade Organization classifications) of only 145 metric tons—less than 10% of NMPF’s alleged exports. A USITC official told The Milkweed that it would be “virtually impossible” for so great an amount of exports to leave the country without showing up on his agency’s records. Where’s the moo-la???

July 2007 Sets New Records: Class III – $21.38, Class IV - $21.64 (p. 3):
The numbers tell it all.

NASS Finally Issues Mandatory Dairy Commodity Auditing Rules (p. 4):
Only seven years after originally by Congress to do so, USDA’s National Agricultural Statistics Service has proposed interim rules for oversight on weekly dairy commodity prices reported to the government.

Details Scarce: NMPF Gets USDA Contract to Promote NAIS (p. 4):
USDA has handed out a contract National Milk Producers Federation to “facilitate the registration of dairy farm, dairy calf and heifer grower premises as part of the National Animal Identification System.” It’s all about money!

Barley: New Look at an Old Grain (p. 5):
Writer Paris Reidhead takes a long look at one of mankind’s oldest grains—barley—in a new light.

Former Auditor’s Lawsuits Beg Integrity of USDA’s Milk Order Program (p. 6):
A former auditor for USDA’s Appalachian milk order (Order #5) has filed suits in federal court, claiming, among other things, that high-level USDA personnel have both rules of the federal milk order, as well as failed to enforce Grade A sanitary standards on dairy plants in their federal order. The lawsuit charges that USDA personnel overlooked maggots (fly larvae) in Grade A milk processed at the Valley Milk, LLC plant in Strasburg, VA.

Milk Powder Price Scandal: U.S. Senators Demand Answers (p. 7):
On August 1, nine U.S. senators wrote a strong letter to USDA’s secretary, Mike Johanns, and USDA Inspector General Phyllis Fong. These senators wanted better answers from USDA about the conclusions regarding the “milk powder pricing scandal” that USDA investigated earlier this year. The senators’ letter noted USDA’s failure to even answer an earlier letter, dated May 9, 2007.

Wall Street Pounds Dean Foods’ Stock Value (p. 7):
Wall Street is taking a dim view of Dean Foods’ stock values, these days. Company CEO Gregg Engles is crying about a “perfect storm” of events hurting the company’s profitability. This is the same character who, last spring, put $39 million of company stock bonuses in his own pockets. That bonus—paid out at the rate of $15/share—was done on $1.94 billion of borrowed money!

CDFA Sets August 28 Hearing on Controversial Milk Powder Pricing (p. 8):
The red-hot issue of how the California Department of Food and Agriculture sets prices for Class 4a milk (butter-powder) will be aired out on August 28. California’s dairy producers have lost hundreds of millions of dollars of needed income so far in 2007, because the data CDFA used to calculate producers’ prices relied on what appear to have been unduly low milk powder prices provided by major cooperatives.

Consumer Milk Costs Increases Modest Over Century (p. 9):
Writer John Bunting goes back a century and explores, in 25-year increments, costs of “basics” for consumers, including a gallon of milk, a gallon of gasoline, a new car, and a house. He also notes average income. Milk prices have climbed far less than any other items surveyed.

GAO Questions CME Cheese Market at Pittsburgh FMMO Hearing (p. 9):
An employee of the Government Accountability Office (GAO) entered his agency’s recent report on dairy commodity pricing at the ongoing USDA federal milk order hearing in Pittsburgh, PA.

National Dairy Livestock Price Report (p. 10):
Some markets are holding, some markets are falling backwards. Looks like availability of forage may be tempering buyers’ interest in dairy livestock. We’re watching this one closely.

Collin Peterson Short-Circuits Dairy “Cost of Production” Study (p. 10):
Collin Peterson, chairman of the house agriculture committee, recently mothballed an attempt by several congressional representatives to study dairy farm “cost of production.” Peterson operates at the behest of the big cooperatives.

July Meeting May Unveil USDA/FSA Loan Scandals (p. 11):
Pete Hardin explains how a series of meetings in Washington, D.C. during July 16-17 may start to unravel one of USDA’s biggest scandals—unfair persecution off farmers who’ve borrowed from USDA’s Farm Services Agency. Would you believe that FSA loan officers get a commission on recovered assets from defaulted FSA borrowers???

Roots of Milk Powder Scandal: Lack of Competition (p. 11):
Dairy’s shortcomings all boil down to a lack of competition. USDA must end its love-fest with dairy co-ops and enforce the laws of the land, before things will get better for dairy farmers and consumers.

Butter Prices Poised to Rise, Whey Decline Likely (p. 12):
Butter is the next dairy commodity to “take off” price-wise. Right now, the price of commodity butter in western Europe is roughly $1/lb. higher than the Grade AA butter price at the Chicago Mercantile Exchange. Whey prices are weakening.

July 2007 Issue No. 336

Inside this month’s issue...

Drought Covers Most of U.S., Future Food Supplies Uncertain (p. 1):
Global supplies of wheat and corn were scarce, heading into the growing-harvest season in the Northern Hemisphere. This was the year that the world needed cooperation from Mother Nature for a good grain harvest—to boost reserves. Unduly dry weather encompasses most of the U.S. (except for parts of Texas, Kansas and Oklahoma). This nation’s food stability is threatened. We need to wait and watch crop/weather events for the next six to eight weeks to have a better handle on futures supplies and costs for a wide variety of food.

Huge Antitrust Lawsuits Filed Against DFA, Dean Foods and Others (p. 2):
Two class action lawsuits were filed on July 5, 2007, alleging violations of the Sherman Act. Plaintiffs are groups of present and former dairy farmers in the Southeast. Defendants are Dairy Farmers of America, Dean Foods, National Dairy Holdings, two “marketing agencies”—Southern Marketing Agency and Dairy Marketing Services, as well as a variety of individuals named directly and cited as co-conspirators. The complaints are available on The Milkweed’s Web site: www.themilkweed.com. Click the “Antitrust Lawsuits” bar on the home page.

June 2006 Cheese and Butter-Powder Milk Prices Top $20/cwt. (p. 2):
June 2007 saw both the Class III (cheese) and Class IV (butter-powder) prices in the federal milk order system to above $20/cwt.

How Can Dean Foods’ Repay Loans, Interest from Profits? (p. 3):
Paying off all that debt (and interest) is going to challenge Dean Foods. For the period April 2007 through March 2008, Dean Foods is obliged to pay down roughly $90 million per month in principal … plus interest. The big, $4.8 billion chunk of debt that Dean Foods bit off earlier in 2007, that included $1.94 BILLION in payouts as a $15/share stockholder bonus, will be hard to pay off from operations.

GAO Study on CME Admits Potential for Price Manipulation (p. 3):
The General Accountability Office has recently completed a study on dairy commodity cash trading at the Chicago Mercantile Exchange. Conclusion: current practices leave the door open for price manipulation.

Imports from China Threaten Health and Lives in the U.S. (p. 4):
Toothpaste, tires, foods and food ingredients … what can you say? Many dangerous foods and consumer products are entering the U.S. from China. John Bunting puts his unique twist on these current events.

What is Protein? (p. 5):
We face a global shortage of human-quality, dietary proteins. Writer Paris Reidhead goes back to square one and discusses the fundamental question: “What is Protein?” Paris covers a lot of basic nutrition and details how the proteins from the dairy cow are wonderfully complete and nutritious.

Feature Story - “Whitewash”: USDA Milk Powder Price Review (pages 6-8):
The Milkweed performs a proctology on the recent pair of reports by USDA that reviewed the milk powder pricing scandal. Bottom line—USDA cannot be trusted to police itself or the dairy cooperative sector. Read the story.

U.N. OECD Report Projects High Ag Prices for Next Decade (p. 9):
A United Nations food agency branch has just surveyed global food economic trends and projects that “high” food commodity prices could last at least for the next decade.

Dairy Cattle Replacement Prices at Auction Markets Across the USA (p. 10):
Most prices for healthy animals are up, up and up. Strong demand for sound dairy animals of all ages is witnessed across the country.

Dairy Producers—Holler Long & Loud About USDA’s Milk Powder “Whitewash” (p. 11):
Pete Hardin explains how dairy farmers must make loud noise to their U.S. Senators and Representatives, in order to get a legislative investigation of the “Milk Powder Price” scandal. Hardin details what was wrong with the recent USDA “whitewashes” of milk powder pricing errors. USDA cannot be trusted to investigate itself.

Long-Term Strength, Growth for Dairy Commodity Prices (p. 12):
The U.S. dairy commodity outlook foresees tightening supplies of fluid milk (especially in the Southeast) and severe scarcity of nonfat dry milk supplies in the second half of 2007. Get used to scarcity and high prices.

June 2007 Issue No. 335

Inside this month’s issue...

CME Cheddar Prices Soar Close to $2/lb. Mark (p. 1):
CME Cheddar prices have climbed to within spittin’ distance of the $2.00/lb. price level, at press time. Cheddar is probably overpriced somewhat now … but prices will probably be higher in the fall.

6/1/07 Commodity Prices Lock $20 Class III/IV Prices (p. 1):
The array of dairy commodity prices—taken after CME trading on June 1—will yield both $20/cwt. milk for Class III (cheese) and Class IV (butter-powder) milk in USDA’s pricing formulae for the federal milk orders.

Three European Nations Tearing Up GM Canola Fields (p. 2):
Because of findings by German research scientists linking honey bee mortality problems to pollen from genetically-modified canola, three European nations are tearing up “mistakenly” planted stands of GM-canola. Those nations are England, France, and Sweden.

Florida Milk “War” at Standoff for Now (p. 2):
Florida’s predominant dairy co-op (Southeast Milk, Inc.) lost the majority of the raw milk volume it was selling to Dean Foods’ fluid plant at Orlando. SMI has been replaced by the Southern Marketing Agency (a co-op group spearheaded by Lone Star and Maryland & Virginia). The real challenge will be for the new suppliers to meet its supply responsibilities, once milk turns tight in early July.

Scarce Water Supplies to Impact California Farm Productivity (p. 3):
Virtually any measure of California’s water inventories—except reservoir capacity—are way below normal. “Whatcha ya gonna do when the well runs dry?”

May 2007 Class III Price $17.60—May Class IV Price $18.48 (p. 3):
And there’s more, perhaps much more, to come.

Center for Food Safety Follows up on Roundup Ready Alfalfa Injunction (p. 4):
Restrictive orders have been placed on the marketers of Roundup Ready (genetically-modified) alfalfa. This crop is one too many in the food biotech compost pile.

DFA Still Producing & Marketing Imitation Cheese Food Garbage!!! (p. 5):
We’re rediscovered “Sandwich-Mate ‘Singles’”—an imitation pasteurized process cheese food marketed by Borden (a wholly-owned subsidiary of Dairy Farmers of America).

Dean Foods: High Milk & Energy Costs Threaten Profits (p. 5):
Is the nation’s largest fluid milk processor about to hit tough times??? Dean Foods’ projected milk costs in the “mid-teens” for 2007. The second half will probably see fluid milk costs around $25/cwt. for Dean Foods. That’ll raise costs and lower demand. Dean Foods’ recent debt package has the company due to pay back over $1 BILLION in the next year—that’s about $85 million per month—higher than Dean Foods’ historic profits. The yuppies are about to learn about the milk business.

Feature Story #1 - Producer Losses Nearly $1 Billion, Head(s) to Roll at USDA (p. 6)
The USDA milk powder price scandal is growing bigger. Unofficial sources indicate that the total losses to dairy farmers whose milk is priced by USDA’s federal milk marketing order (FMMO) program will total close to one billion dollars. Read all about it here.

USDA: No Public Details on Milk Powder Pricing Scandal (p. 6):
Officially, USDA officials are saying virtually nothing about the milk powder pricing scandal—as they assess damages.

Feature Story #2 - Milk Powder Price Scandal: Show Dairy Farmers the Money (p. 7):
Step #1 in getting to the bottom of the massive milk powder price scandal is to determine the approximate size of the damages to U.S. dairy producers’ milk incomes. USDA is at work on that portion of the clean-up. Read all about it here.

CA Powder Price Trails DairyAmerica “Spot” by $1.00/lb. (p. 7):
With high grain and energy costs, things aren’t going to get much better financially for California dairy producers until their state department of agriculture gets modern and includes an honest value for the price of milk processed into butter-powder. Right now, the milk powder price CDFA uses for setting producers’ milk prices is almost exactly $1/lb. LOWER than the DairyAmerica “spot” price for milk powder.

“Peak Oil” Threatens Foundation of U.S. Farm/Food System (p. 8):
At some point, global oil supplies will peak … as demand continues climbing. The implications of “Peak Oil” (and beyond) to the U.S. food system—production, processing, transportation—are staggering.

House Ag Proposal Would Deny State/Local Control of GMOs (p. 9):
A provision snuck into proposed farm bill language by the House Subcommittee on Livestock, Dairy and Poultry specifies that no state, county or municipal governments could regulate agricultural products inspected and passed by the U.S. Secretary of Agriculture, or specified by the Secretary to have “non-regulated status.” Worries are that such stealth language will be used to block local efforts to oversee genetically-modified foods.

House Farm Bill’s Dairy Proposals: Same Old “Stuff” (p. 10):
Rep. Collin Peterson (D-MN) has crafted dairy provisions for the 2007 farm bill that basically refry the same old “stuff” as future dairy policy.

Protein Integrity: Little Compromise (p. 11):
Pete Hardin discusses the Chinese-sourced, “phony protein” found in dog and cat foods … and takes the logic of “cheaper ingredients” straight to your kitchen table! Big-city newspaper reporters don’t have to travel to China to find dangerous, illegal sources of protein in the HUMAN diet. Hardin also wonders if the intense, heat-treatment of long-life beverage milk renders the proteins in that product less biologically available.

“Too High” Cheese Prices May Stick; Powder Sky-High (p. 12):
In our review of current dairy commodity prices and trends, Cheddar cheese (around $2/lb/.) looks a bit high. But U.S. milk powder prices are at world market prices—and keep rising.

May 2007 Issue No. 334

Inside this month’s issue...

Too Dry … Too Wet: Weather Challenges U.S. Agriculture (p. 1)
A lot of U.S. farm country is either too wet or too dry. Weather challenges to the 2007 grain harvest threaten global food stability.

Feature Story: “$20-Something/Cwt.” Milk Prices Ahead! (p. 1)
Get ready for the highest farm milk prices anybody has ever seen. Read Pete Hardin’s story here projecting that Class III and Class IV prices in USDA’s federal milk marketing order pricing system will rise into the $20- 22/cwt. range by mid-summer or early fall.

Milk Marketing Armageddon in the Sunshine State? SMI Out as Dean’s Milk Supplier at Orlando, June 1 (p. 2):
Dean Foods has notified Southeast Milk, Inc. that, as of June 1, 2007, the Florida-based co-op will not supply raw milk to the massive Dean Foods plant in Orlando. SMA—a group of Southeast co-ops—proposes to take over supplying the Orlando plant. SMA will have to bring in milk from as far away as New Mexico (1500 miles). Dean Foods’ is acting in tandem with Dairy Farmers of America—like a pair of Mafia thugs.

Foremost Farms Lost $12.5 million in 2006; Indicators (p. 3):
Here are some of the 2006 financial indicators from Foremost Farms’ belatedly released 2006 audit (compared to 2005 data): interest costs (+47%), borrowings (+$16.4 million), packaged fluid milk sales (-11%), plants/equipment 67% depreciated, repeated violations of minimum debt ratios with lender, IRS auditing 2002-2005 financial reports, etc. Ed Brooks, Foremost’s board chairman (and an ex-banker) says, “I don’t think that members have to be seriously worried.”

April 2007 Class III Price $16.09 (p. 3):
Rising cheese, whey and butter prices moved the Class III price for April 2007--up to $16.09/cwt. in USDA’s milk order system. Much more price improvement is built into the pricing system, because of rising dairy commodity prices.

State of Wisconsin Backs Off May 1 Deadline for Dairy Farm ID (p. 4):
With 500-700 dairy producers having not registered their farm’s under mandatory Premises ID, Wisconsin’s agriculture department failed to go through with its threat to disallow sales of milk from those farms on May 1. More than 100 protesters jammed the board room of at the state agriculture building on April 25, at a hearing on this issue. Dairy farmer Mark Brothen, of Viroqua, Wisconsin, gave compelling testimony in which he cited the November 8, 2004 Federal Register, which had published rules for the federal National Animal Identification System (NAIS—which starts with Premises ID). Brothen showed how federal rules list the program as “voluntary” and those rules supercede any related state rules.

New Global Realities Propelling Dairy Prices (p. 5):
Many global factors have combined to push up demand and prices for dairy proteins. Those factors include: global shortages of dairy proteins, China’s growing demand, a weaker U.S. dollar, global grain shortages. Meanwhile, U.S. dairy marketers have “missed the boat” in perceiving that global dairy exports shifted to a “demand economy” in late 2005.

USDA Admits Serious Milk Powder Pricing Scandal! (p. 6-7):
The USDA milk powder pricing scandal—first detailed by The Milkweed—has blown sky-high. In mid-April, USDA admitted that erroneous data for nonfat dry milk sales had been reported to the gov’t by “one plant” (hint: DairyAmerica—the co-op powder cartel). USDA has embarked on a review of the past year’s weekly milk powder sales/price data reported to it. Meanwhile, 11 U.S. senators have written USDA Secretary Mike Johanns, demanding many answers to “what did USDA know and when did they know it”. And both the National Farmers Union and National Milk Producers Federation have written USDA, demanding financial compensation for USDA under “Section 32” authority. This article details the day-by-day key events of the past month.

U.S. Senators Demand Answers from USDA About Milk Powder Price Scandal (p. 7):
On May 9, eleven U.S. senators sent a letter to USDA, demanding detailed information about events surrounding misreporting of milk powder prices during much of the past year. Powerful letter—reprinted in this issue.

Beware of NMPF in Milk Powder Scandal (p. 7):
NMPF—the dairy co-op lobby—has joined on, asking USDA for compensation to dairy producers for errors in calculating farm milk prices by USDA’s milk order program. But at a DFA meeting in California in early May, word from DFA was that NMPF will seek to “make the crime legal” by proposing changes in USDA’s weekly commodity price reporting rules to make long-term export prices legal.

Organic Producers Facing Downwards Pressure from Buyers (p. 8):
Pressures are on organic dairy producers in the Midwest and Northeast to sign annual contracts for lower milk prices in the year ahead. More organic milk—primarily from the Southwest and West—is coming on line, boosting supply. The Milkweed suggests a “base + ‘riser’” formula for organic producers’ annual contracts.

Cornell Food Scientist Discounts PI Count Test’s Importance (p. 8):
Dr. Kathryn Boor, food scientist at Cornell University, has prepared a one-page memorandum that reviews the lack of science in certain processors’ emphasis about “Preliminary Incubation Counts” being used to jeopardize dairy farmers’ markets. We reprint Dr. Boor’s memo in full.

New German Research: GM Pollen Compounds Honeybee Trauma (p. 9):
What’s wrong with our honeybees? Writer Paris Reidhead details research from Germany that shows how exposure to pollen from Genetically-Modified (GM) plants harms honeybees. This subject deserves to be front-page on the New York Times!

FMMO Whey Costs Drain Cheese Plants’ Profits (p. 9):
We explain how rising whey prices are draining more money from cheese plants. In fact, whey prices are threatening the stability of cheese plants whose milk is priced by USDA’s federal milk marketing order system.

National Dairy Cattle Replacement Prices (p. 10):
Many markets are showing big gains in dairy livestock—especially springing heifers. One market averaged $2215 per head for 700-800 springers. Another market showed gains of $400-600 per head in prices for springers between its early April and early May auctions! Only in The Milkweed!

DFA Plans to Sell Off or Joint-Venture Cheese Plants (p. 10):
DFA’s closing of its Lovington, New Mexico cheese plant is just the beginning. The co-op hopes to close, sell or joint-venture all of its cheese plants during 2007. Corona, California looks like a “$100 million bath”.

DO NOT Contract Milk or Gamble in “Future/Options/Puts”: Upwards Price Potential Too Great to Miss Out On! (p. 10):
The Milkweed strongly advises dairy farmers to avoid any fixed-price milk deals or “gambling” on milk prices. There is simply too much upwards potential in the market right now to settle for current prices. In fact, we offer exact advise on how to respond to milk commodity brokers trying to sell these items.

Gov’t Owes Compensation for Milk Powder Scandal (p. 11):
USDA is now totaling the damages in an unaudited review of the past year’s milk powder price reporting to NASS by DairyAmerica. Pete Hardin argues that USDA owes big-time financial damages to dairy farmers whose milk prices were understated by erroneous milk powder price reports … that the government should have known were wrong!

DairyAmerica’s Spot NFDM Prices for 2007 (p. 11):
From January 1 to May 4, 2007, DairyAmerica raised “spot” prices for nonfat dry milk from $1.20/lb. to $2.25/lb. We detail each price increase.

Antitrust Lawsuit vs. DFA Soon (p. 11):
As a famous man once said, “Ho! Ho! Ho!”

Dairy Commodities Continue to Shrink (p. 12):
Dairy commodity inventories are shrinking and prices are rising. We’re looking at scarce dairy commodities for much of 2007 and beyond—along with very high prices.

April 2007 Issue No. 333

Inside this month’s issue...

Projected 15% Gain in ’07 Corn Acreage Eases Prices, BUT … (p. 1):
Corn futures at the Chicago Board of Trade have eased off somewhat, following USDA’s late March announcement that intended corn plantings will boost acreage 15% this year, compared to 2006. But don’t take this year’s corn crop for granted until it’s in the bin.

Dean Foods Stock Drops $15/Share after $15/Share Pay-Out (p. 1):
Following pay-out of the special, $15/share dividend by Dean Foods, the company’s stock value at the New York Stock Exchange fell $15/share. Dean Foods borrowed $1.9 Billion to make that pay-out. Damn greedy yuppies.

Safe/Not Safe? Milk Hormone Rumble Intensifies (p. 2):
Arguing about the “safety” of milk from cows injected with Monsanto’s synthetic growth hormone gets louder. On one side, activists have petitioned FDA to immediately suspend approval of sale of Posilac®. On the other hand, Monsanto and its “allies” have asked both FDA and the Federal Trade Commission to disallow dairy marketers’ differential of dairy products, based upon whether they contain milk from Posilac-injected cows.

Round 3: NY Assemblyman Aubertine vs. MPCs (p. 2):
Once again, NYS Assemblyman Darrel Aubertine has introduced legislation that would curb use of Milk Protein Concentrates, caseins and caseinates from use in dairy products in New York State. Twice before, Aubertine has gained unanimous approval for similar bills in the NYS Senate & Assembly. Once, the Republican governor vetoed it. Second time ‘round, NYS Ag & Markets has refused to implement the law.

Agri-Mark Claims $2.5 Mil. “Profit” Despite $9.7 Mil. of Deducts (p. 3):
Agri-Mark, the struggling dairy co-op in New England, has set some new “low” for co-op accounting—claiming profits in a year when the co-op drained nearly $10 million from members’ milk checks to cover operating losses.

No Milk Sales After May 1 by WI Farms Without Premises ID (p. 4):
After a long time, the issue of mandatory farm premises registration in Wisconsin is finally heating up. Critics pounded the Wisconsin ag dep’t for its policy of disallowing any sales of milk by dairy producers who haven’t registered their farm premises after May 1. Despite this pounding, looks like the state ag bureaucrats are intent to push ahead with the plan.

DOJ Antitrust Official Weasels Dairy Antitrust Answer in Hearing (p. 4):
On March 7, Thomas Barnett, Assistant Attorney General for the Antitrust Division at DOJ, answered a question from Wisconsin Senator Herbert Kohl about the dairy antitrust investigation by DOJ. Barnett stated that investigation continued. The Milkweed contends that Mr. Barnett totally misrepresented the truth.

Federal Judge: USDA Ignored Environmental Oversight for GM Alfalfa (p. 5):
A federal judge in San Francisco, California ruled on Feb. 12, 2007 that USDA had failed to conduct proper environmental oversight in its approval of Monsanto’s genetically-modified alfalfa. Writer Paris Reidhead takes a long look at the surrounding issues.

Feature Story: California Producers Scared: Milk Prices Lag Behind Soaring Costs (p. 6)
California dairy producers, who generally swaggered through dairy price downturns over the past two decades, are quickly changing their attitudes after feed costs, milk prices and weather all started going in the wrong direction last year. Major screw-ups by the state milk pricing bureaucracy have only made these problems worse in recent months. Read this month’s feature story on how the California dairy paradigm has changed.

Demand USDA Investigate DairyAmerica for Undue Price Enhancement (p. 7):
This article details the enforcement powers held by the USDA Secretary to bring actions against cooperatives that unduly enhance the price of an agricultural commodity. We contend that DairyAmerica, the milk powder “cartel”, has unduly raised nonfat dry milk prices to domestic processors, and should be called on the carpet. IMPORTANT!

Federal Judge Halts Sale, Planting of GM “Roundup Ready” Alfalfa (p. 8):
In mid-March, the federal judge in San Francisco issued a ruling, blocking sale and planting of “Roundup Ready” alfalfa, a genetically-modified variety. This ruling follows a February 2007 decision that USDA had not conducted appropriate environmental or economic analyses on Monsanto’s GM alfalfa.

Milk Powder Update (p. 8):
Tidbits from the milk powder trade.

Dairy Cattle Replacement Prices at Auction Markets Across the USA (p. 10):
Some of the poop is still steaming in the ring from these up-to-date sales reports of dairy livestock prices from across the U.S. HOT MARKET: Brush, Colorado, where the top 288 springing Holstein heifers averaged $2005 on March 5! 800 springers were sold that day.

Jan-Feb. 2007 Northeast Milk Output Down Nearly 8% (p. 10):
Bad crops and bad milk prices are combining to dramatically constrict milk flow in the Northeast.

What’s Right for the ’07 Farm Bill? (p. 11):
Pete Hardin explains what he thinks ought to be in the federal government’s new farm laws. Hardin reproduces the National Farmers Union’s recommended dairy plank as an excellent basis for dairy policy.

Entire Dairy/Ag Commodity Picture Tightening (p. 12):
Production and inventories of virtually all dairy commodities is tightening. Except for whey, all prices are strengthening. Milk and dairy commodities will be impossibly tight in the second half of 2007, in our analysis.

March 2007 Issue No. 332

Inside this month’s issue...

Feature story: USDA’s Milk-Pricing Fails: Producers Lose Half a Billion Dollars (p. 1)
Our March feature story on the “Missing Milk Powder Millions” scandal is a MUST READ about the systemic USDA bureaucratic failures and big co-op bungling that has cost U.S. milk producers about half a BILLION dollars of legitimate, direly-needed income on milk marketing under federal milk marketing orders in recent months.

Dean Foods to Pay $15/share Bonus (Using Borrowed Funds) (p. 2):
Dean Foods has announced it will pay shareholders a one-time, $15/share dividend this spring. The firm will borrow $1.93 BILLION to pay out the $15/share bonus. President/CEO Gregg Engles pocketed $39 million in this swift move.

Illegal Yogurt Imports from 13 Nations Entered U.S. in 2006 (p. 2):
Data from the Department of Commerce shows that 15 nations exported yogurt to the U.S. last year. But only two nations’ have facilities that have been inspected under U.S. Grade A milk sanitary codes. The rest of those imports were all illegal.

Feb. 2007 Class III: $14.18 (p. 2):
USDA’s price for cheese milk priced through the federal milk order program rose $.62/cwt. last month, to $14.18/cwt.

Federal Judge in Ohio OKs Make-Allowance Increase (p. 3):
Legal efforts to block imposition of higher “make-allowances” for farm milk processed into Class III (cheese) and Class IV (butter-powder) in the federal milk order system were defeated.

Farm Milk Price Surge Starting (p. 3):
At long last, signs are pointing towards a significant upwards movement in farm milk prices, in our analysis.

UCONN: Retailers Profit More (per Gallon) than Dairy Farmers Paid (p. 4):
An analysis of farm-to-consumer price margins for November 2006 by the insightful folks at the University of Connecticut’s Food Marketing Policy Center determined that net profits for supermarkets’ sale of a gallon of milk averaged higher than what dairy farmers were paid for that same gallon of milk.

rbGH (Posilac) Battle Intensified; Monsanto Scared (p. 4):
As more and more U.S. dairy processors are demanding “rbGH-Free” raw milk supplies, this ugly controversy is headed towards end-game. Monsanto employees are worried that at some point in the future, the company may not be able to efficiently manufacture and distribute rbGH.

NDB Chairman Les Hardesty Erroneously Boasts Exports’ Price Impact (p. 7):
Chairman of the National Dairy Board (and DFA director) Les Hardesty recently proclaimed that big milk powder exports are boosting dairy farmers’ milk checks. That’s a lie.

NFFC Files Milk Powder Pricing Complaint with USDA/OIG (p. 8)
In late February, the National Family Farm Coalition handed a formal complaint, alleging improper reporting of milk powder sale data, to USDA’s National Agricultural Statistics Service (NASS) to USDA’s Office of the Inspector General.

Testimony of Bryan Wolfe on Feb. 28, 2007 (p. 9):
We reprint the powerful testimony of Bryan Wolfe (an Ohio dairy farmer) at the recent USDA national milk order hearing in Strongsville, OH. Way to go, Bryan!

Beef Import Letter Triggers R-CALF Shakeup (p. 9):
The Ranchers -Cattlemen’s Legal Action Fund United Stockgrowers Association purged its national president—a good sign. Casualties include Texas cattleman Chuck Kiker, who had strayed from the organization’s historic opposition to imports of beef from Canada. Joining Kiker in a hasty exit was Bill Hawkes, a long-term Bush administration high-level USDA official and R-CALF advisor.

Dean Foods to Buy Friendship Dairies (NY) (p. 9):
Pending final approval of government agencies, Dean Foods will pay about $130 million to acquire Friendship Dairies of Jericho, NY.

Dairy Cattle Replacement Prices at Auction Markets Across the USDA (p. 10):
Holy mackeral! On March 1, the top 113 Holstein springers at the Brush, Colorado auction averaged $2115!

WI Organics “Hangs On” (p. 10):
The Wisconsin agriculture department has disallowed Wisconsin Organics from buying any producer milk directly, as the company tries to work off back-due milk obligations. Wisconsin Organics is buying some milk from outside providers.

The Milk Powder Mess: Aftermath (p. 11):
Pete Hardin tries to make sense of the “Missing Milk Powder Millions” foolishness. First of all, he editorializes, USDA should indemnify producers from lost milk income. He also suggests investigation DairyAmerica under Section II of the Capper-Volstead Act. If wrongdoing has occurred, Hardin believes that DairyAmerica should be put out of business, permanently.

From Corn & Hay to Milk Powder: Tight (p. 12):
Reporter John Bunting reviews a wide range of commodities integral to milk production and pricing. Most of the basics are tight in supply.

February 2007 Issue No. 331

Inside this month’s issue...

Feature Story: By Dec. 31, 2007, Global Corn Reserves Could be Only 2.5 Days’ Use (p. 1):
Starkly stated, if projections from USDA’s Foreign Agriculture Service on global corn production and demand for 2007 prove accurate, the world faces close to the lowest carry-over of corn supplies in modern history. Read John Bunting’s story about this emerging concern here.

January 2007 Class III $13.56 (p. 1):
The federal milk order Class III (cheese) milk price for January was $13.56. Sky-high whey prices are driving up the cheese milk price.

Ben Yale Sues to Block New FMMO “Make-Allowances” (p. 2):
Ohio attorney Ben Yale has filed actions against USDA’s attempts to implement the new “make-allowances” in the federal milk order program. Yale’s challenges focuses, in part, on the government’s failure to include consideration of section 608 (c) 18—price relief for dairy farmers due to high grain prices.

Altria Group to Spin-Off Kraft Foods (p. 2):
Kraft’s corporate parent will send the large, but poorly-performing stepchild out into the cold world, in March.

Huge Die-Offs of Honey Bees Reported (p. 2):
No reason known. Massive kills of honey bee colonies have occurred in fall 2006. If this trend continues, major implications for human and livestock food crops could be felt.

California Dairies, Inc. Bans rbGH, Effective August 1, 2007 (p. 3):
The nation’s second-largest dairy co-op—California Dairies, Inc.—announced it would not accept milk from herds whose cows are injected with “Posilac”—Monsanto’s milk-stimulating, synthetic hormone. CDI members produce eight percent of the nation’s milk and 45% of California’s milk.

Organic Milk Demand Softens in Midwest, West (p. 4):
Worries about large volumes of organic milk coming on line later in 2007 are causing Midwest organic milk marketers to be skeptical about taking on extra supplies right now. The big volume of anticipated conversions is primarily from western and southwestern states.

Monsanto Data Shows Posilac-Injected Cows Need More Energy Per Unit of Milk (p. 4):
Dairy cow ration data from Monsanto details how Posilac-injected cows need more units of energy in their daily diet for all milk produced. High corn prices mean that higher-producing, Posilac-injected cows’ net profitability is significantly reduced.

Lawyer Tells Midwest Co-ops: How to NOT Pay Back Farmers Equities! (p. 5):
Joel Dahlgren, a Minneapolis lawyer with many major clients in the farm cooperative field, sent out a letter in September 2005, seeking money from farm co-ops to challenge IRS rules penalizing write-downs of members’ equities and retained earnings. Not so behind the scenes, ag co-op leaders are trying to figure out how not to pay back farmers’ equities.

Global Dairy Price Confusion: U.S. Commodity Prices Sometimes Lower (p. 6-7):
John Bunting details global dairy price data, showing how for key items like nonfat dry milk and Cheddar cheese, global market prices are higher than U.S. cash dairy markets. Why?

USDA Won’t Release Order 30 FMMO Vote on “Make-Allowances” (p. 8):
Details of the referendum among co-ops taken late last year to reauthorize the Upper Midwest milk order cannot be made public. USDA refuses. But the Secretary of Agriculture does have the power to release the numbers.

Déjà vu … Seems like 1972-74 All Over Again (p. 8):
Economic and political events in recent months look eerily parallel to the “bad old days” of 1972-74, which inflation hit the price of everything. Watch food prices spiral upwards!

Ed Slusarczyk: 84 Years Young (p. 9):
Noted farm broadcaster Ed Slusarczyk of Remsen, New York passed away in late December, leaving a rich legacy.

USDA Calls New “Make-Allowance” Hearing (p. 9):
On February 26, 2007, in Strongsville, OH, USDA will revive the long-running, absurd “make-allowance” hearing. Some dozen and a half proposals are being aired out. Lawyers win!

Dairy Cattle Replacement Prices (p. 10):
Prices for milk cows, bred heifers, and calves are down in many parts of the country. Prices for open heifers are holding in several markets.

Straight Talk (p. 11):
Pete Hardin takes several pokes, including: Corn-based ethanol is dumb; dairy has a devastating price emergency; and he proposes a $5.00/cwt. emergency Class 1 surcharge to cover farmers’ higher grain costs.

Dairy Commodity Outlook: Lull Before the Storm (p. 12):
Dairy commodity prices are low, relative to what’s coming in the months ahead.

January 2007 Issue No. 330

Inside this month’s issue...

DFA Foresees Big Milk Prices, Big Reblends for Southwest (p. 1):
A confidential DFA milk price forecast, prepared on Jan. 2, 2007, was secreted to The Milkweed. Internally, DFA’s senior management projects the “blend price” in the Southwest milk order (F.O. 126) to peak near $18/cwt. in October 2007. BUT for Southwest dairy producers, DFA sees “reblends” (marketing costs) averaging $.80/cwt. for June-Dec. 2007. That’s DFA … projecting continued inability to recover costs of marketing milk from the buyers for a whole year in advance!

Feature Story: Special Edition on Dairy Antitrust (12 pages)
Don’t miss Editor Pete Hardin’s blockbuster special edition describing how the nation’s biggest dairy co-op (DFA—the Enron of the dairy industry) and fluid milk processor (Dean Foods) increasingly dominate the U.S. dairy business at the expense of dairy farmers and consumers.

Best Guesses: What’s Ahead for Dairy in 2007?? (p. 1):
We foresee higher milk prices, domestic and global dairy product shortages, higher grain prices … all in all, a crazy year.

“Cryan Time Again”—USDA 12/11/06 National Class I/II Hearing (p. 2):
One more time, NMPF dairy economist Roger Cryan cried the blues (off key) on the witness stand at a federal milk order hearing. NMPF’s proposal to raise Class I milk prices by $.77/cwt. does not have widespread support—even among some regional dairy farmer groups.

Whey Prices Spike, Driving Up Class III (p. 3):
John Bunting analyzes how the global dairy protein shortage is driving up whey products’ prices, which in turn are propelling the Class III (cheese) milk prices in federal milk orders. Whey exports are up. Whey production is down. Supplies are tight.

Higher U.S. Prostate Cancer Incidents (Males, 60 and Over) May Parallel Increased rbGH Usage (p. 4-5):
Investigative reporter Paris Reidhead explores annual data on prostate cancer in U.S. males (ages 60+) from 1980 through 2003, and discusses the increase in that type of cancer with use of recombinant bovine growth hormone (rbGH) in U.S. dairy cows, which started commercially in 1994. Needed: More research and statistical analysis.

2006 NYS Producer Mailbox Prices: Marketing Costs Way Up (p. 5):
John Bunting analyzes how milk marketing costs have eaten up an increased portion of New York State dairy farmers’ milk checks during 2006.

Global Corn Stocks Scarce, Ethanol Demand Rising Fast (p. 6):
Carry-over global stocks of corn, measured on a per-capita basis, ended 2006 at their lowest-ever level. If there are any serious weather disruptions of global grain prices in 2007, the table is set for sky-high corn (and grain) prices for the next several years. Corn is seeking new price plateaus, and that factor will drive food costs through the chain from farm to consumer.

Dairy Cattle Livestock Prices (p. 7):
Only in The Milkweed … national dairy livestock pricing trends. Buyers are looking for breeding age heifers and short-bred heifers—as they project big milk price increases in the second half of 2007.

DairyAmerica “Allocates” 2007 Milk Powder Supplies to Buyers (p. 7):
DairyAmerica—the nation’s milk powder cartel—finally issued 2007 allocations to buyers in mid-December. At best, buyers got 50% allocations for 2007 (based upon 2006) sales. And three days after DairyAmerica issued those allocations, some buyers were told those allocations had been cut another 50%. Some buyers will get zero milk powder allocations in 2007. DairyAmerica has boosted surcharges (energy surcharges, pallet costs) to buyers, while also shifting to a “spot pricing” basis for 2007 sales. Where is all the money going? Certainly, not to the dairy farmer.

Starbucks, Safeway Trending Towards “rbGH-Free” (p. 8):
Two of the biggest retailers in the nation—Starbucks and Safeway—are moving incrementally towards “rbGH-Free” milk supplies. Over 2000 company-owned Starbucks stores are now rbGH-Free. And Safeway has gone to “rbGH-Free” store-brand fluid milk in all its stores in the Pacific Northwest. Bravo!

December 2006 Issue No. 329

Inside this month’s issue...

No Move (Yet) by DOJ on Proposed Dairy Antitrust Indictments (p. 1):
Proposed indictments of some of dairy’s biggest players—authored by career professionals at the Antitrust Division of the U.S. Department of Justice—lie on the desk of DOJ’s higher-ups. Will DOJ move on these recommendations … or let politics continue to interfere with enforcing antitrust laws in dairy, from the farm to the consumer?

USDA Holds Another National Milk Order Hearing (p. 1):
Here they go again. USDA held another national milk order hearing in Pittsburgh, PA, starting on December 11, to air a proposal by National Milk Producers Federation to boost Class I (fluid) milk prices by $.73/cwt.

Private Law Firm Investigating Dairy Antitrust (p. 1):
A huge antitrust law firm is nosing deep into dairy antitrust violations.

Democrats Will Control U.S. Senate/House: Ag/Dairy Implications? (p. 2):
The November elections shifted control of both legislative houses in Washington, D.C. to the Democrats. In January, Midwesterners will control key agriculture and appropriations chairmanships. The Senate ag committee will hold several new, fresh faces.

Nonfat Dry Milk “Fundamentals” Deny Reality (p. 3):
John Bunting explores the crazy situation in milk powder prices, where global prices are higher than CME prices, and CME prices are below “spot” prices.

Fonterra Sees Chile as Bridge for Exporting to U.S. (p. 3):
New Zealand sees the opportunity to move more dairy products into the U.S., through Fonterra’s purchase of a share of dairy products firm in Chile. Fonterra believes that it can move NZ dairy products into the U.S., unencumbered by any trade restrictions, through a “free trade” deal involving the U.S. and Chile.

$/Membership Losses Put Foremost Farms on “Watch List” (p. 4):
Foremost Farms is losing large amounts of money and members in 2006. Tightening up efficiencies is hard, with so many members bolting. LOL is pressuring Foremost to proceed with the controversial plan to turn over Foremost’s hauling routes to LOL’s Northwest Transport subsidiary. How can Foremost’s management pull out of the nose-dive?

Milk Regulatory Equity Act of 2005 Hurting CA Fluid Market Share (p. 4):
Milk from outside California is flooding into that state’s Class I utilization. John Bunting analyzes that this trend has been boosted by the last spring’s federal law that reined in producer-handlers in the federal milk order system. That law change, ironically, was championed by California dairy interests.

Lawsuits Fly Following UpState-Niagara Merger in NY (p. 5):
Last spring saw a quickie, “hurry up and shut up” merger involving western New York’s two local dairy co-ops—Niagara Milk Co-op and UpState Farms Cooperative. Lawsuits now thrive regarding settlement terms for former Niagara members, as their share of the co-op’s “fair value”. Niagara members were paid out $12,730,577, but earlier in 2006, a consultant had valued Niagara’s business at $41 million. Where’s the missing $28+ million?

Feature Story #1: Unilever (Breyer’s & Good Humor) Using Genetically-Modified Fish Antifreeze Protein in Ice Creams (p. 6-7):
The nation’s largest ice cream—Unilever (owner of Good Humor-Breyer’s)—is using a genetically-modified “antifreeze” protein from a polar fish in certain low-fat ice cream and novelty products. In the U.S., the FDA approved this technology in 2005. In Great Britain, that country’s food safety agency is getting an earful from concerned scientists about the inadequacy of the human safety testing data provided by Unilever to FDA here in the states. What’s of concern? FDA allowed “safety tests” from blood proteins of cod fish to substitute for the actual fish whose proteins are replicated and used in the ice cream (the ocean pout, or conger eel). Cod fish and ocean pout differ greatly. On the “Order of Species” listing used by scientists, the elephant and the platypus (an egg-laying marsupial) have more in common than do the cod and ocean pout. Hilariously, a spokesperson for “Ben & Jerry’s” (also a Unilever-owned firm) told a trade association publication that “We would never dream of putting anything like that in our products.”
It’s the same old story: corporate greed (for cheaper products) using questionable food biotech products in consumer products … with no notice to the consumers eating the stuff! Read all about it here.

Book Review: Real Food—What to Eat and Why (p. 8):
An exciting new book by writer Nina Planck details an new, “old-fashioned” food philosophy—eating non-processed foods, like our grand-parents and great-grandparents dined upon. Ms. Planck’s book combined both a philosophy and a lot of food facts that will make many readers rethink their diets.

Advise & Consult: Penn State’s Bailey Out of Bounds (p. 8):
Penn State agricultural economist Dr. Ken Bailey is advising dairy farmers to lock in “fixed-price” deals for future milk sales. But he’s also now on the payroll of Downs O’Neill as a paid consultant … advising dairy farmers to sign fixed-price milk sales contracts. The decision timetable for Penn State to offer “Doc” Bailey tenure must be drawing near. Bailey, who failed to get tenure at Missouri, looks like he’s hedging his bets.

USDA Issues Make-Allowance for Class III/IV (p. 9):
USDA has issued a decision on “make-allowances” for cheese and butter-powder plants. Few parties are happy. Dairy farmers don’t want more money taken from their milk checks to subsidize manufacturing plants. And cheese/butter-powder plant operators claim they need more subsidies from FMMOs to stay profitable.

Monsanto Reports Far Lower Profits from Posilac Sales (p. 9):
Reduced sales of Posilac (recombinant bovine growth hormone) are pulling down profits from that division for the owner—Monsanto.

National Dairy Cattle Replacement Price Map (p. 10):
Prices are solid, indeed, rising for some kinds of dairy animals, and dropping for others. Only in The Milkweed.

Feature Story #2: We must fairly price cheese/cheese milk (p. 11):
Discontent reigns over both USDA and California pricing systems for milk made into cheese. Cheese must be our milk-pricing basis. Half of all U.S. farm milk goes into the cheese vat. Think about it: scientists can clone cows and sex semen, but dairy can’t equitably price cheese milk to keep producers and cheese plants financially viable. Read Editor/Publisher Pete Hardin’s well-reasoned thoughts on cheese pricing here in our second “article of the month.”

Same-Old, Same-Old: Cheese and Butter Prices Lower (p. 12):
Prices for Cheddar cheese and Grade AA butter fall lower at the Chicago Mercantile Exchange. These lowball prices do not square with tight demand for cheese and many factors that will weigh against more U.S. output in 2007.

November 2006 Issue No. 328

“Winter of Discontent” on Nation’s Dairy Farms (p. 1):
The rapid rise in grain prices adds one more significant cost to U.S. dairy farms, which are already struggling with low milk prices and high costs.

“rbGH-Free” Issue Burning Hot in Dairy (p. 1):
The “no growth hormones in milk” trend just keeps gaining more press. Fluid milk dealers delay New Jersey’s state premium until a court hearing in mid-December. Pennsylvania “Monsanto clones” complain their farming practices are being impaired. RUMOR: Dean Foods will go “rbGH-Free” system-wide in early January 2007.

Struggling Midwest Dairy Co-ops Mulling Big Merger (p. 2):
Behind the scenes, merger talks are brewing in the Upper Midwest, where cheese-making co-ops are wallowing in red ink. Their common lender—CoBank—is scared. Learn why.

CME & CBOT Propose Merger in 2007 (p. 2):
Two of the nation’s largest agricultural commodity exchanges are proposing merger in early 2007.

Feature Story #1: Corn Prices Zooming Up Quickly (p. 3):
Never has the U.S. grain trade seen a mid-harvest corn price run-up without severe adverse weather conditions … until fall 2006. For dairy farmers who buy grain, the rise will translate into higher grain prices. The real question is, how high will grain prices go and how long will high prices last? Read the story here.

High-Level USDA Official Exists, Amid NFDM Scandal Charges (p. 4):
In complete violation USDA laws, a high-level official (Bert Farrish) of USDA shifted 25 million lbs. of surplus gov’t nonfat dry milk to his “alma-mater” (Mississippi State University) for catfish feeding research. MSU had only requested one pallet’s worth. Parrish kept hitting the “replay button” on this scam. DOJ officials have declined to press criminal charges—proving that white collar crime pays.

No Milk Powder: Baking/Candy Plants to Temporarily Close (p. 4)
Due to shortages of nonfat dry milk, several (unnamed) food processors that use nonfat dry milk in their products are preparing to temporarily close production—just before the peak demand time for their consumer products.

Wisconsin Dairy Farmer Finds “The Enemy” Along Roadside (p. 5):
In late September, Wisconsin dairyman Joel Narges tripped over an object in his roadside while he was changing grazing access for his cows at night. Joel tripped over a box of imported cheese from Uruguay—which leads to a review of the massive quantities of cheese imported from that region.

Consumers Paying $40-45/cwt. for Cheese, Fluid Milk at Retail (p. 6):
When analyzing prices paid for cheese, fluid milk and yogurt in supermarkets, it’s clear that consumers are paying at least $40-45 per cwt. (in farmer terms) for their retail dairy products. The money IS in the market place … farmers simply aren’t getting their fair share.

Many Prices for Nonfat Dry Milk (p. 7):
Many prices are being reported/paid for nonfat dry milk in the U.S.—from $.91/lb. (USDA’s weekly NASS survey) to up to $2.75/lb. (for “rbGH-Free” milk powder). Guess what price is used to calculate the farmers’ value in federal milk orders?

Harvard Symposium: Milk, Hormones and Human Health (p. 7):
Writer John Bunting attended a wide-ranging symposium about milk and human health issues at Harvard University in late October. He marvels at some of the cutting-edge health/nutrition research and findings.

Importer Schuman Behind Mystery Cheese Box (p. 8):
The Milkweed’s research department tracks down that empty box of imported cheese (described on page 5) to its importer—Arthur Schuman, Inc., of Fairfield, New Jersey. Schuman is a long-term snake in efforts to dump cheap South American and Eastern European dairy products into the U.S.

Feature Story #2: Law Requires USDA to Adjust Milk Prices for Grain Costs (p. 8)
The Agricultural Marketing Agreement Act of 1937 requires the Secretary of Agriculture to adjust farm milk price within all federal milk marketing orders to “reflect the price of feeds, the available supplies of feeds, and other economic conditions which affect market supply and demand for milk or its products.” Read writer John Bunting’s story on how enforcement of the law would help dairy farmers receive a fair price for their milk.

Summary of Hardin’s Late Oct. Northeast Speeches (p. 9):
We summarize the main points made by Pete Hardin at a series of speeches to dairy producers in the Northeast in late October. Among Hardin’s suggestions: Zero hauling costs to producers for Class I milk, and no more than half charges for other milk being hauled—an overall reduction in hauling costs of 75%, or almost $1/cwt. He also laid out suggestions for the 2007 farm bill, and urged producers to “Kick the D-minuses in the butt”. (The “D-minuses” are DFA, DMS and Dairylea—called that label for their negative impact on producers’ milk checks.)

FDA/IMS: Foreign Agents Can OK Offshore Grade A Status (p. 9)
The federal Food and Drug Administration and the National Conference on Interstate Milk Shippers are proposing that foreign agents be allowed to inspect foreign dairy farms and plants for compliance with U.S. “Grade A” dairy sanitary regulations. Where’s “Mr. Yuk” when you need him???

National Dairy Livestock Price Map (p. 10):
Only in The Milkweed—up to date reports on nearly a dozen and a half livestock markets around the country!

Northeast Dairy Troubled (p. 11):
Editor/Publisher Pete Hardin details his trip through the Northeast in late October, and then discusses why this region has the greatest of all opportunities in the future to produce both food and energy.

Milk Powder Prices Sky-High; Cheddar & Butter Unsettled (p. 12)
Dairy commodity prices at the Chicago Mercantile Exchange are fitful—up and down. Meanwhile, nonfat dry milk supplies are impossibly tight. Demand for cheese is strong. Butter markets are nervous, worried about a big slug of products from New Zealand in early 2007.

October 2006 Issue No. 327

Feature Story: Will Co-ops Vote Out USDA’s Milk Orders … SOON? (p.1):
Some day soon, folks in the U.S. dairy industry may wake up to learn that several federal milk marketing orders no longer exist! In this month’s exclusive story, Pete Hardin explains how the big dairy co-ops may be preparing to vote out selected federal orders, and how this may in turn trigger the demise of the entire federal milk marketing order system.

Cash Prices for Nonfat Dry Milk Zoom Up (p. 1):
In recent days, the cash price for nonfat dry milk has climbed 34 cents/lb. at the Chicago Mercantile Exchange. Milk powder users are desperate to find product. DairyAmerica—the milk powder “cartel”—is promising it’ll deliver monthly commitments next year!!!

House Ag Committee Ignores National Milk Producers Fed. (p. 2):
On September 20, the House Agriculture Committee held an important hearing in Washington, D.C., taking inputs from national farm commodity groups about the 2007 farm bill. Dairy—alone among ag commodities—was not represented on the hearing panels. Ag Committee staffers told the once-vaunted dairy lobby, National Milk Producers, to stay home. Who’s representing dairy farmers???

July ’06 Saw Huge Increase in MPC Imports (p. 2):
Imports of Milk Protein Concentrate entering the U.S. in July totaled 7063 metric tons in July (that’s nearly 160 million lbs.). MPC imports for the first seven months of 2006 are running 29% higher than 2005’s record MPC import total. MPCs are foreign dairy proteins used primarily in dairy product processing—such as processed cheeses.

Consumers Paying Big Premiums for “No rbGH” Milk (p. 3):
More fluid milk processors are demanding “rbGH-Free” milk supplies. Processors and retailers are putting big mark-ups on “rbGH-Free” milk in the stores. The New York Times reported on October 7 that Seattle, Washington shoppers were paying a $1.10 per half-gallon premium for “rbGH-Free” milk, compared to store-brand milk that’s not guaranteed “rbGH-Free”. A $1.10 per half-gallon premium = $25.00/cwt.

Europeans Move to End Fonterra’s Butter Import Monopoly (p. 3):
A European court has restricted access Fonterra’s access to European Union butter markets for the remainder of 2006. What about 2007? That NZ butter could end up in the U.S.

DOJ OKs Prairie Farms’ Purchase of Southern Belle (p. 4):
Southern Belle, the fluid processor in southern Kentucky, will be sold to Prairie Farms. DOJ Antitrust officials compelled DFA to sell the business. DOJ has required Prairie Farms to be supplied with fluid milk by DFA.

2007 Farm Bill/Money Talks Louder Than Public Interest (p. 5):
Writer John Bunting details contributions to key agriculture senators, as legislators approach the all-important 2007 farm bill negotiations. Sarah Farms’ Lawsuit: MREA Violated U.S. Constitution (p. 6): Hein and Ellen Hettinga, owners of Sarah Farms—a large producer-handler in Yuma, Arizona—have filed a federal lawsuit, claiming last April’s Milk Regulatory Equity Act violated their constitutional rights. The Hettingas claim that the MREA specifically targeted their operation—in alleged violation of the Constitution’s prohibition against “Bills of Attainder”.

CMAB Funds In-Depth Study of State’s Dairy Industry (p. 7):
The California Milk Advisory Board has unveiled a detailed study of that state’s dairy industry by analysts at McKinsey & Co.

Infant Formula Imports Rise in United States (p. 8):
For the first seven months of 2006, infant formula imports entering the U.S. rose 6.3%. Among importing countries, the big gainers were Venezuela (+48.7%) and Portugal (+270.8%). FDA does not require milk ingredients in imported infant formulas to meet U.S. Grade A sanitary specifications.

Farmer’s Testimony Ignored at FMMO Hearing (p. 8):
Ohio dairy farmer Bryan Wolfe tried to enter testimony at the recent federal milk order hearing in Strongsville, Ohio, only to be advised by the presiding judge, in advance of Bryan’s comments, that “I indicated that I probably wouldn’t take it.” What’s it come to when FMMO hearings ignore testimony of the few attending farmers?

New York Organic Consignment Sale a “Success” … Sort Of (p. 9):
The October 7 sale of organic dairy animals in central New York was held. But prices came in below levels reported for private-treaty transactions. The quality of the animals wasn’t generally the best, and consignors didn’t provide as much information as buyers of high-value animals normally expect.

National Dairy Livestock Price Map (p. 10):
Some livestock markets are a bit stronger, while others are declining. Areas with good feed supplies are seeing stronger prices for bred heifers. Look for an exodus of dairy animals in the Northeast and Southeast this fall and winter.

Curtains for federal milk orders? What’s next? (p. 11):
Pete Hardin commences the discussion of what the U.S. dairy industry will look like, if federal milk orders disappear. Hardin foresees a “Wild West” milk-pricing environment. States and regions will have to step forward to assure dairy producers are paid fairly and promptly.

Milk Powder & Whey Prices Rise Sharply; Cheddar Declines (p. 12):
Dairy commodity prices are wacky. In the past few days, CME cash prices for nonfat dry milk have skyrocketed—up about 34 cents per pound. Milk powder is tight. But prices for Cheddar cheese (both blocks and barrels) have declined. Unless greed is rational, dairy markets defy rational explanation at this time.

September 2006 Issue No. 326
Feature Story: Serious Milk Powder Shortages Disrupting Dairy/Food Processors (p. 1)
Many dairy and food processing firms suddenly face serious shortages of nonfat dry milk. DairyAmerica—the marketing agency in common for most U.S. dairy cooperatives that produce nonfat dry milk—was unable to tell contracted buyers at the end of August whether those buyers would receive any product during September. Read Pete Hardin’s story on why virtually zero supplies of fresh milk powder are available. Correction: the story on page 4 should state: “That 100 million lbs. export sale is higher than the 80-90 million lbs. of U.S. milk powder production for July and August 2006.”

Antitrust Hands over Dairy Complaints to DOJ Superiors (p. 1):
The Antitrust Division of the U.S. Department of Justice has turned over final draft complaints, seeking indictments, against Dairy Farmers of America, Dean Foods, and National Dairy Holdings. For the past two-plus years, Antitrust officials have been probing dairy. Major thrust focuses on the Southeast. Will DOJ politicos approve recommended Antitrust action against firms close to the Bush White House???

USDA Re-Opens National “Make-Allowance” Hearing (p. 2):
USDA, on rapid notice, reconvened the national federal milk order hearing on manufacturing plant “make-allowances” that had been held in late January 2006—Sept. 14 in Ohio. A new study by Cornell University will be the sole item on the hearing agenda. Cornell’s study basically finds current “make-allowances” are pretty much close to average operating costs.

World Dairy Expo Names Hanman “Dairy Industry Person of the Year” (p. 2):
World Dairy Expo will honor retired DFA CEO/president Gary Hanman as its industry person of the year. This situation is like the “Sons of Italy” naming Al Capone as its “man of the year”.

Fluid Milk Price Asymmetry (p. 3):
The farm-to-processor spread for fluid milk shows a widening gap.

DMS Stealing Ex-Farmland Producers “rbGH-Free” Premiums (p. 3):
Dairy Marketing Services (DMS—a DFA subsidiary) stole “rbGH-Free” premiums from ex-Farmland Dairies producers whose milk marketing was taken over (involuntarily) by DMS in summer 2005. At a hearing of the New Jersey Department of Agriculture, the plant manager for Farmland Dairies (Tim Barber), testified that his firm was paying “rbGH-Free” premiums to DMS, but DMS wasn’t paying them to his former producers!

Lew Gardner’s Bankruptcy: Long Line of Unpaid “Suckers” (p. 5):
We follow upon the Lew Gardner bankruptcy, by printing a list of all the creditors named in Gardner’s bankruptcy filing. Gardner is the top DFA director in the Northeast. Curiously, Lew borrowed $1.554 million from Agri-Financial Services (a Dairylea co-op subsidiary). Lew reported a per cwt. level of income of $15.33/cwt. for May 2006 (a “director’s special” milk price?). Lew even stiffed DFA for $12,714 in milk check advances. Hilarious reading!

First Northeast Organic Consignment Sale Scheduled (p. 6):
A consignment sale of organic dairy animals will be held on October 7, 2006 near Mohawk, New York. Good place to find the value of organic animals.

Agri-Mark Debt $133 Million; Lenders Want More Equity (p. 6):
At recent membership meetings, Agri-Mark’s leaders have more openly revealed the co-op’s painful financial condition. Agri-Mark’s debts now total $133 million—that’s roughly $100,000 per member (using 11/30/05 member totals). Agri-Mark’s lender—CoBank—has the co-op on a weekly cash-flow reporting basis, while demanding the co-op boost equities by $20 million in three years.

Gov’t Dairy Data/Analysts’ Blabber Disconnected from Reality (p. 7):
There’s a wheelbarrow full of bad government. numbers, and a manure spreader full of dairy “experts’” analyses about what’s going on, supply/demand-wise, in the U.S. dairy industry. Dairy commodity prices are unduly low … and dairy inventories (especially nonfat dry milk and butter) are scarce. Why the low prices and babble about their justification—a lot of people don’t want farmers to know what’s really going on.

CME in the Media (p. 7):
In recent weeks, news of the investigation by the Commodities Futures Trading Commission’s investigation into dairy cash markets/futures-options trading at the Chicago Mercantile Exchange has gained a lot of attention in the business media. But only The Milkweed is reporting these events among the dairy industry media.

Chi. Tribune: Cows Get No Grass at Horizon’s Organic Dairy in MD (p. 7):
On Sunday, August 20, the Chicago Tribune published an investigative piece by reporter Andrew Martin about the lack of access to fresh pasture at the 500-cow “organic” dairy owned by Horizon (Dean Foods) in eastern Maryland. The article quoted both the former grazing manager and the former veterinarian as saying that the grass was strictly for appearances.

CFTC Airs CME Dairy Market Gripes on August 1st (p. 8):
On August 1, the Commodities Futures Trading Commission (CFTC) held a public hearing in Washington, D.C. on the subject of “thin markets”. Most of the testimony and comments focused on dairy cash market trading at the Chicago Mercantile Exchange. Writer John Bunting drew a lot of attention from the audience for two points he made during his testimony: 1) One trader allegedly drove up the CME cash Cheddar prices in both the second half of November 2004 and January 2005. He then made money on the settlement of his cheese-based futures positions, vs. the cash market results. That person bragged of building an $8 million house with the proceeds and still having $20 million left over. 2) Bunting noted the benefits of low CME Cheddar prices on Kraft Foods’ earnings and stock value. Millions and billions!

Grass-Based Dairying: Niches for Small/Medium Producers (p. 9):
Grazing expert Joel McNair explains why small/medium dairy producers’ financial security can be based upon advanced marketing of grass-based dairy products.

U.S. Dairy Livestock Price Map (p. 10):
It’s becoming a “buyers market” in most parts of the U.S. for dairy animals. Prices remain strong in Michigan, which has a good crop situation and a number of dairy expansions.

“Anti-Market” Forces Exposed (p. 11):
Pete Hardin reviews the serious disconnect between long-standing dairy industry practices and an honest “market place”. DFA, Dean Foods, the Chicago Mercantile Exchange, and Monsanto’s “Posilac” (rbGH) all come in for a serious proctology. Surprisingly: all of these miscreants are now coming under sharp focus … and maybe will get what they deserve.

Milk Powder Supplies Tight, Cheddar & Butter Prices Up & Down (p. 12):
Despite supplies of nonfat dry milk and butter, U.S. dairy commodity prices are not moving up as we believe they should. Milk powder is impossibly tight. Butter is scarce. Cheese supplies are constricting. Even so: Cheddar prices and Grade AA butter prices turned down on Friday, September 8 at the Chicago Mercantile Exchange.

August 2006 Issue No. 325
Feature Story: Heat/Drought/Floods Devastate U.S. Milk Output (p. 1)
Heat. Drought. Floods. The U.S. dairy industry is watching history tragically unfold. Read this month’s feature story here about how coast-to-coast, dramatic weather events are devastating the nation’s farm milk production capacity now and for years to come.

Agri-Mark Deducts $.62/cwt. for Losses from June Milk (p. 2):
Members of Agri-Mark continue to suffer huge deducts for their co-op’s operating losses. For June 2006 milk sales, the co-op deducted a total of $.62/cwt. from members’ milk for losses. More to come, no doubt.

Kraft Foods Reports Bigger 2nd Quarter Profits (p. 2):
Kraft Foods’ profits rose, as the result of cheaper cheese costs.

Dean Foods Buys ANOTHER Michigan Fluid Processor—Jilbert’s Dairy (p. 3):
Dean Foods has added to its stockpile of Michigan-based dairy processors. This time, Dean acquired Jilbert’s Dairy of Marquette, MI. The Milkweed estimates that Dean Foods has more than 90% market share of all packaged fluid milk that’s distributed in Michigan.

WTO Negotiations Collapse, U.S. Farm Interests Blamed (p. 3):
In late July, the World Trade Organization talks to try to achieve a global “Free Trade” deal fell apart. The media blames U.S. farmers. Nothing else new.

USDA Seeks More Comments on FMMO “Make Allowance” (p. 3):
USDA is reopening the January 2006 national federal milk order hearing on “make-allowances” for more comments and more data. Comments due by September 30, 2006.

Butterworks Farm: Organic, On-Farm Processing Pioneers (p. 4):
Writer John Bunting writes about what he learned at Butterworks Farm in Vermont. The Lazor family milks 40 Jerseys, produces farm-processed organic yogurt, and achieves income from the milk in the range of $100/cwt.

EU Court Ruling May Send More New Zealand Butter to U.S. (p. 5):
The European Union court has ruled that New Zealand’s dairy export monopoly—Fonterra—has violated the Union’s rules by its tight grip on butter imports. The result could force more NZ butter into the U.S.

CDFA “Goes All the Whey” for Cheese Plants (p. 5):
California’s Department of Food and Agriculture has revised the state’s farm milk-pricing system—giving a big banana to cheese plants in the form of a whey manufacturing allowance. CDFA estimates the net effect will cost California dairy producers $.419 off Class 4b (cheese) milk, or about $.20/cwt. off their blend prices.

Milk Duct Tissue Cancers Rose 55.3% in U.S. Following rbGH Approval (p. 6-7):
Writer Paris Reidhead commits what may be the single greatest, most controversial article in the history of The Milkweed, when he details published medical research that links Insulin-like Growth Factor-1 (IGF-1) to increased human cancers. IGF-1 is a secondary hormone found in increased amounts in milk from milk cows injected with Monsanto’s synthetic growth hormone—Posilac. Reidhead then explores data from the American Cancer Society that shows dramatic annual increases in post-menopausal women’s milk duct tissue (breast) cancers since FDA approved Posilac use by dairy farmers in early 1994.

Lew Gardner—DFA Big-Wig—Files Bankruptcy (p. 8):
DFA’s top farmer leader in the Northeast, Lew Gardner, filed bankruptcy in April 27, 2006. Gardner lists $1.9 million in liabilities and $1.2 million in assets. “Poor” Lew stiffed co-op’s he’s affiliated with for $1.5 million—but continues serving as a DFA director, according to a co-op spokesperson. Funny thing … Lew’s bankruptcy filing shows no projected income listed as a co-op director. And Lew … how can your cows be worth nearly $2000 apiece when the Posilac-induced herd average is nearly 1000 lbs. below the statewide DHIA average? How do we know Gardner is/was using Posilac? He lists Monsanto as a creditor in his bankruptcy papers … to the tune of $4969.

Why we’ll import more, WTO deal or not (p. 9):
Joel McNair explains that despite the demise of WTO trade talks, trade deals pose many threats to this nation’s food producers.

National Dairy Livestock Price Map (p. 10):
Only in The Milkweed!

U.S. Farm Bill Needs … (p. 11):
Pete Hardin details what he thinks the 2007 farm legislation should include: 1) a regular mechanism for producers whose commodities are in federal commodity promotion programs to have regular, binding votes on continuing these check-offs; 2)A thorough investigation of cash dairy trading at the Chicago Mercantile Exchange; and 3) A prompt study of U.S. food transportation and distribution, based on scenarios involving $4/gallon, $6/gallon, and $8/gallon diesel fuel prices. Hardin contends that this nation’s food system is not sustainable, in the event of dramatically higher energy costs … or worse yet … inadequate amounts of diesel fuel.

Milk Powder, Cream Extremely Tight; Cheddar Prices Stay Low (p. 12):
Weather events have tightened supplies of nonfat dry milk and cream across the U.S. DairyAmerica—the co-op milk powder consortium—has sold 100 million lbs. of milk powder to New Zealand. Yet there’s been no substantial upwards movement of cash dairy commodity prices at the Chicago Mercantile Exchange. Business as usual in our crooked, corrupt industry.

July 2006 Issue No. 324
Feature Story - “rbGH-Free” Momentum building in U.S. (p. 5):
Pete Hardin reports that the trend in consumer demand for “rbGH-free”milk was building fast, even before recent reports that rbGH–related hormones in milk were causing increased multiple human births. Read our exclusive July feature story here.

WTO Talks at Impasse (Dangerous for U.S. Dairy Farmers) (p. 1):
Global “Free Trade” talks are in danger of collapse. Danger is that the Bush administration will dump protections for U.S. farmers to try to salvage a last minute deal to protect interests of multi-national corporations.

Several DMI “Loans to Grants” Violate USDA’s Conflict of Interest Rules (p. 1):
We report that several recent projects by Dairy Management, Inc. (DMI) have violated USDA’s conflict of interest rules. Here’s how: Officers and directors of the three national dairy promotion groups (DMI, National Dairy Board, and the United Dairy Industry Assn.) negotiated and voted upon complex “loans to grants” to subsidiaries of Dairy Farmers of America. Trouble is: many officers and directors of the national dairy promotion groups are directors/members of DFA.

Foremost Dumps Haulers, Loses Members in NW Wisconsin (p. 2):
Some milk haulers are taking their routes and leaving Foremost Farms, following attempts by the co-op to force haulers into one-sided deals with Northwest Transport (a Land O’Lakes subsidiary).

Premiums for “rbGH-Free” Farm Milk Developing (p. 2):
From coast to coast, developing premiums for “rbGH-Free” milk are developing as processors will pay premiums for that farm milk.

Huge, Surprise Offer for MD/VA’s Laurel, MD Property (p. 3):
A last-minute, $200 million+ offer for Maryland & Virginia co-op’s real estate at Laurel, MD has upset the apple cart on what dissident members fear was an inside deal to sell the property for about $135 million. Minutes from MD/VA board meetings show that the co-op is under pressure from its main lender—CoBank—to improve its equity position.

1/3 of U.S. Under Drought (p. 3):
The National Weather Service “Seasonal Drought Outlook” reports that about one-third of this nation is under drought. Forage supplies and grain costs are under pressure—predictors of tighter milk supplies.

Cornell Prof has Patented “rbGH” Test for Milk (p. 4):
Writer Paris Reidhead reports how Dr. Ron Gorewit—a professor of biological and environmental engineering at Cornell University—has co-patented a test to determine if milk has been produced from cows injected with “Posilac” (Monsanto’s recombinant growth hormone). Funny thing: many vested interests, including the Food and Drug Administration, don’t like the fact that rbGH milk can be differentiated.

Floods Drown Northeast Dairy Farms, Plants (p. 6-7):
John Bunting didn’t have to go further than his front yard to research this one! Massive rainfall in late June devastated parts of the Northeast. “Ground Zero” was Delaware County, New York—where flood waters devastated farms, roads, milk plants and homes.

The Raw Milk Inevitability (p. 8):
Warren Taylor, a 30-year professional in dairy plant engineering, is evangelizing the nutritional merits of local, raw milk sales. Taylor reports on recent events in Ohio (where raw milk is a hot legislative subject), a recent national confab about raw milk in Nebraska, and Taylor’s suggestion that a U.S. “Raw Milk Ordinance” be developed to establish strict, laboratory-enforced standards for raw milk sales by farmers to consumers.

Greed Threatens Organic’s Future Price Structure (p. 9):
Joel McNair ruminates about future pressures of price and integrity upon the organic milk marketing structure. He theorizes that sometime after 2009, that organic milk prices will decline. Joel projects that dairy products marketed as “grass-fed” may have longer-term future opportunities than do “organics”.

National Dairy Livestock Price Map (p. 10):
Sorry, but only subscribers see the full details of this national dairy animal price map, featuring recent auction prices from about a dozen and a half markets around the country. In general, price erosion for most animals is happening.

“Uncle Sam’s” Cavalry Isn’t Coming (p. 11):
Pete Hardin worries that, in the midst of the coming crises of energy and money, that waiting in line for “Uncle Sam” to help is an exercise in futility. Instead, dairy farmers must take charge of their own industry, wrestling the industry from failing co-ops. The first priority to set things right: get rid of Posilac (rbGH). Get rid of Posilac and dairy farmers would see their milk prices improve by $2.75 to $4.00/cwt., Hardin projects.

Milk Supplies Tighten, But Low Dairy Commodity Prices Persist (p. 12):
Despite the fact that weather, forage supplies, and corn prices are all factors in reducing U.S. milk production in the short-and medium-term, dairy commodity prices at the Chicago Mercantile Exchange continue to grovel in the sub-basement. Dairy’s cash market and futures signals are warped.

June 2006 Issue No. 323
Feature Story -- IGF-1 in rbGH-Milk Linked to Increased Human “Twinning” (p. 1):
See Pete Hardin’s must-read “Story of the Month”!

More Dairy Processors Want “rbGH-Free” Milk (p. 1):
Responding to consumers’ desires, the number of U.S. dairy processors labeling their products “rbGH-Free” is growing fast.

DOJ Tells Senator Specter Dairy Antitrust Probe Moving (p. 2):
After a delay of two months, a DOJ underling wrote Pennsylvania Senator Arlen Specter on June 5, 2006, saying that the dairy Antitrust investigation is “active and continuing”. Bunk.

Agri-Mark’s Financial Trends Look HORRID (p. 3):
Analyzing Agri-Mark’s 11/30/05 financial report is a shocker. As of last November, Agri-Mark’s numbers boil down to, on a per-member basis: $7,000 in combined operating losses; $10,000 in administrative costs; $7,250 in interest costs (nearly double the prior year), and $15,862.83 in underfunded employee pension costs!

Foremost Dumping Haulers into Northwest Transport (p. 3):
Foremost Farms—based in Baraboo, Wisconsin—is systematically shoving its independent contractor milk haulers into the clutched of LOL’s Northwest Transport. Haulers are being told to shut up and either lose money or sell out for cents on the dollar!

California Dairymen Learn the Hard Way (p. 4):
More details about problems with the “Milk Regulatory Equity Act of 2005” (the federal law that zapped producer-handlers in federal milk orders). Very recently, unregulated Nevada milk is moving into Arizona!

Fluid Milk Decision (p. 4):
USDA announced a decision in the June 2005 Class 1 national hearing. MPCs (and other dairy proteins) will be legal in Class 1 (fluid) dairy beverages.

NYS Bungled Greek Yogurt “Grade A” Rating (p. 5):
Documents obtained from the NYS Department of Agriculture & Markets detail how state dairy inspectors screwed up on a wagon-load of items in their March 2005 rating (and subsequent oversight) of the “Grade A” rating given to the FAGE yogurt plant (and its milk producers and haulers).

CWT Double$ Due$ to Cover Huge Debt$ (p. 6):
National Milk Producers Federation is conducting a full-court press to pull in more independent dairy farmers to join the “Cooperatives Working Together” (CWT) program, effective July 1, 2006. CWT’s dues will double on July 1—to ten cents per cwt. CWT has rang up about $20 million in debts for the fiscal year that began on July 1, 2005. CWT’s killing cows and subsidizing U.S. dairy exports is insane—the U.S. has been a milk-deficit nation for the past 10 years! Imports—oftentimes by dairy co-ops like Dairy Farmers of America and Land O’Lakes—are killing farmers’ milk prices.

Center for Food Safety Continues to Battle GMO Alfalfa (p. 7):
The lawsuit against USDA’s approval of genetically-modified alfalfa continues slowly.

Global Yogurt Invasion in 2005 (p. 8):
A total of 15 nations exported yogurt to the U.S. in 2005. But only two—Spain and Greece—have approval as U.S. “Grade A”. Everything else was illegal. (And we wouldn’t bet two cents on the Greek “stuff”, either.)

Whose kooky future to believe? (p. 9):
Joel McNair contemplates various analyses of present and future energy realities. He concludes: “… I have long believed that the future of agriculture is based on sunlight, rainfall, local/regional markets, small- to medium-scale systems, and diverse farming practices, rather than the opposite of all of those as is the trend of our oil-rich modern times.”

Dairy Cattle Replacement Prices Map (p. 10):
Sorry—this most valuable page of the paper is available only to subscribers who want to follow national dairy livestock price trends. (Hint: open dairy heifers are a bargain for those with available feed.)

Get Rid of Posilac (p. 11):
Pete Hardin details his 20 years in the fight against Monsanto/FDA and recombinant bovine growth hormone. The latest news—a medical journal report linking increased hormone levels in milk from rbGH-injected cows to big increases in multiple human births—is reason to get rid of rbGH use now. If FDA won’t act, then dairy processors must demand “rbGH-Free” farm milk and label it on their consumer packages.

Dairy Commodity Prices All Stink … BUT (p. 12):
We depart from our “same-old, same-old” dairy commodity analysis to explain why the U.S. is on the verge of huge shortages of farm milk. Subscribers read it here first!

May 2006 Issue No. 322
Feature Story - CFTC Probing CME Cheese Cash Market Activities (p. 1):
The Commodities Futures Trading Commission (CFTC) is actively investigating alleged irregularities in cash Cheddar markets at the Chicago Mercantile Exchange (CME). CFTC’s specific angle is alleged manipulation of cash Cheddar markets that may have influenced settlement of futures and options contracts. Read this month’s feature story here.

New U.S. Law Restricting Producer-Handlers Could Devastate California Fluid Quota Values (p. 1):
The recently passed federal law restricting producer-handlers contained a provision that disallows federal milk orders from covering fluid milk plants in Nevada. That “lulu” could devastate California’s milk pricing system and fluid quota values—since Dean Foods has a big, new fluid plant in New Mexico all set to more unregulated packaged fluid milk into the “Golden State”.

Antitrust Investigation vs. DFA Back on Track (p.2):
U.S. Department of Justice Antitrust investigators are back on track with their investigation of Dairy Farmers of America, after a group of Pennsylvania dairy producers (and John Bunting) met with Pennsylvania U.S. Senator Arlen Specter in late March and explained how the Antitrust investigation had been stalled due to politics and money.

DFA Restated ‘04 Audit: More Revenue & Debt (p. 2):
Without explanation, Dairy Farmers of America’s 2005 financial statement revised important figures from its 2004 financial report. DFA reported $441 more revenue, $190 million more interest bearing debt, among other data. These revisions cast doubt on the accuracy of claims by DFA’s leaders that the co-op “reduced” its debts by $149 million in fiscal 2005.

MPC Imports Track Perfectly with U.S. Dairy Demand (p. 3):
Over the past five years, imports of Milk Protein Concentrates correlate PERFECTLY with U.S. commercial dairy product disappearance. Few statistics ever yield a perfect correlation.

Tax Settlements Boost Kraft’s First Quarter (p. 3):
Nearly $400 million in various federal/state tax reversals were plowed into Kraft Foods’ first-quarter revenue—thus making the first quarter numbers better than operating performance would indicate. Curiously, Kraft’s first-quarter 2006 tax rate was “negative 9.2%”—a sign of negative earnings???

LOL’s CPI Cheese Plant (CA) Losing Megabucks (p. 4):
For the first quarter of 2006, Land O’Lakes big CPI cheese plant in California contributed mightily to the co-op’s $21.5 million loss in dairy manufacturing. Performance of this plant begs the integrity of LOL’s management. LOL Seeks 27-cent/lb. Whey Make-Allowance in CA (p. 4): Land O’Lakes has requested a 27-cent per pound in the whey make-allowance from California’s state milk regulatory agency. That “make-allowance” equals nearly all the value gained from whey. LOL is trying to dip further into the public till to subsidize its cheese plant losses in California.

Super-Nutrition: Grass-Fed Milk & Beef (p. 5):
Scientists are documenting more and more nutrition and health benefits for persons consuming milk and meat from grass-fed cattle. Writer Paris Reidhead reports on some of the many attributes of grass-fed livestock and poultry products.

Background on CME Cash Dairy Trading (p. 6-7):
John Bunting charts the data for cash dairy commodity trading at the Chicago Mercantile Exchange and concludes that the “market” is not a supply-demand driven beast.

Quebec Dairy Farmers Protest Parmalat’s MPC Use (P. 8):
On May 2, almost 200 dairy farmers in Quebec Province demonstrated at two cheese plants owned by Parmalat. Farmers’ ire was sparked by Parmalat’s use of Milk Protein Concentrates in dairy products. Imports of dairy ingredients threaten to pull down Canada’s stable dairy marketing/pricing environment as well as deep-six values of “quota” held by Canadian producers.

Dairy “Efficiency”—What’s Past is Prologue (p. 9):
Joel McNair laments that U.S. agriculture took a wrong turn in the post-WWII era. The chemicalization of agriculture has led many down a wrong path of reliance on capital-intense inputs. Joel sees a “resurgence” in agriculture that utilizes certain of grandfathers’ wisdom and practices.

U.S. Dairy Livestock Price Map (p. 10):
Most (but not all) markets report drops in dairy livestock prices in the past month. However, calf prices are holding their own, due to shortages of calves coming from key calf-source states like New York and Pennsylvania.

N-U-T-R-I-T-I-O-N, not Slogans (p. 11):
Pete Hardin analyzes the positive and negative nutritional aspects (and processing technologies) for fluid milk. (Hint: Pete isn’t big on Ultra-High temperature pasteurization, small plastic bottles, or homogenization.) Grass-fed, no-rbGH, non-homogenized, organic sounds best!

Dairy Commodity Markets Continue in Cellar (p. 12):
What can a person say? Prices for Cheddar, Grade AA butter and nonfat dry milk continue at very low levels in cash market trading at the Chicago Mercantile Exchange.

April 2006 Issue No. 321
Feature Story - Drought/Energy Costs to Cut U.S. Milk Output (p. 1):
As if today’s depressed dairy product prices and shrinking milk checks weren’t bad enough, a significant drought is taking shape. Extreme dry conditions over many key parts of the country mean Mother Nature will have the final say on U.S. milk production. See the “Story of the Month” here.

Watch CA Milk Output After Mid-2006! (p. 1):
Don’t take California’s current bulge in milk production for granted. Several factors are at work to pull down the state’s milk volume in 2006’s second half, we believe.

CME Block Cheddar Volume Next to Nothing (p. 2):
What market? Cheddar trading volume is almost nothing at the Chicago Mercantile Exchange.

March Class III Price: $11.11/Cwt.; More Decline Ahead (p. 2):
The federal milk order Class III (cheese) milk price dropped $1.09/cwt. for March 2006, down to $11.11. Further declines are anticipated.

10 Co-ops Want “Make-Allowance” Hearing Suspended (p. 3):
On March 31, ten dairy co-ops asked USDA to suspend further consideration of the “make-allowance” hearing from January 24-28, 2006. Oops … some of the same dairy co-ops that supported the hearing proposal in January now realize they’d be cutting prices for ALL milk (including fluid and Class II). They know not what they do.

Codex Dairy Panel Punts on Processed Cheese Standards (p. 4):
On April 1, at a meeting in New Zealand, the global Codex dairy panel bent to a U.S. demand and failed to put in tougher definitions for ingredients in processed dairy products. K-R-A-F-T wins.

National Animal I.D. Igniting Firestorm of Angry Protests (p. 4):
USDA’s proposal to put radio frequency chips in most animals is meeting fast-mounting opposition from many sources. Opposition could spark the next “Whiskey Rebellion”.

Powerful Interests Pushing NZ ‘Free Trade’ Deal (p. 5):
The “U.S.-New Zealand Council” (a group that’s promoting a “Free-Trade” deal between these two nations) has a lot of powerful friends—U.S. Congressmen and even Clayton Yeutter—former USDA Secretary and former Special Trade Rep. A “Free-Trade” deal with New Zealand would be a complete sell-out of U.S. dairy interests.

Prices/Profits Down “Down Under” (p. 5):
Things are FALLING in New Zealand: farm milk prices, global dairy commodity prices, farm real estate values, and the New Zealand dollar. NZ dairy farmers are getting squeezed, also.

DFA’s 2005 Audit: HUGE Financial Problems (p. 6):
The Milkweed has analyzed the 2005 audit just released by Dairy Farmers of America. Two items jump out: * ZERO mention of just-retired CEO/President Gary Hanman. * DFA plugged $97 million into its pension mess and still is about $145 million in the hole, when comparing pension program assets and projected obligations. DFA reported earnings of only $10 million in 2005.

USDA Wants Comments on Dairy Promotion Program (p. 6):
USDA is taking public comments on the National Dairy Promotion. Comments are due by May 1, 2006.

U.S. Imports Cause Dairy Farm Price Crisis (p. 7):
Dairy imports, more than rising U.S. farm milk output, are the source of our low dairy commodity and farm milk prices, in the analysis of John Bunting.

Cornucopia Institute Creates Organic Dairy Scorecard (p. 7):
An activist group has rated sellers of organic dairy products as to the integrity of their milk supplies. The “big boys” are not happy.

Lawsuit vs. USDA’s Approval of Roundup-Ready Alfalfa (p. 8):
The Center for Food Safety has filed a lawsuit seeking to block USDA’s approval of commercial sale of Roundup-Ready Alfalfa by Monsanto. Danger here is that Roundup-Ready alfalfa is the first, genetically-modified perennial crop to be released.

Same-Old, Same-Old Won’t Work (p. 9):
Joel McNair takes a look back and a look ahead and concludes that many elements of our present U.S. dairy industry have little ability to feed the nation in a future that includes higher energy costs. McNair describes the success of a husband/wife team of graziers in southern Wisconsin.

Dairy Cattle Replacement Prices at Auction Markets Across the USA (p. 10):
Dairy livestock prices are generally down across the country, as the bite of low milk prices starts to get painful. But some animals in some markets held their prices.

“Fair Share” for all (p. 11):
Pete Hardin lists a wide array of wrongheaded actions (and inactions) by the federal government that are hammering U.S. dairy producers.

Build Import Barrier to Protect U.S. Livestock/Poultry (p. 11):
Pete Hardin explains why the U.S. needs a ban on all imports of livestock/poultry, their products and by-products from regions of the world that harbor Foot and Mouth Disease and Asian Avian Flu.

Wave of Milk Sinks Commodity Prices (p. 12):
Dairy commodity prices are in the pits, period.

March 2006 Issue No. 320

Bottom Falls Out of Dairy Markets (p. 1):
Cheddar cheese prices are at the USDA support price. Unless dairy commodity prices improve miraculously, producers are looking at farm milk prices for March-April 2006 that will range nearly $4/cwt. below milk prices for those months in 2005. Milk production is up. Consumer demand may be off in the past couple months, as the economy tightens.

USDA MILCX Payments to Suffer Delays (p. 1):
Dairy farmers will probably no see any “safety net” payments until July (at the earliest) from the revised Milk Income Loss Contract Extension program passed by Congress earlier this year. USDA must treat the program as a completely new administrative procedure. And that will cause delays implementing the programs and payments.

Saputo, Dean Foods Gouging Raw Milk Suppliers’ Margins (p. 2):
Two of the nation’s largest raw milk buyers, Saputo Cheese and Dean Foods, are nastily chipping away at the margins of their raw milk providers.

DFA Wants Another Hearing to Decouple Class I/II (p. 2):
Dairy Farmers of America is taking the lead, among a group of dairy co-ops, requesting that USDA hold yet another emergency milk order hearing on “make-allowances” for manufacturing plants. This time, the co-ops want to avoid dropping Class I (fluid) and Class II (cultured products) prices from declines in Class III (cheese) and Class IV (butter-powder) milk. But Midwest co-ops oppose such decoupling.

DOJ Sharply Cut Antitrust Investigation Funds in October (p. 3):
For the new federal fiscal year that began on October 1, 2005, the coast-to-coast, federal/state dairy Antitrust investigation had its funding pared way back. What happened? Investigators were perhaps getting a little too close to misdeeds by Dean Foods—good friends of the White House incumbent.

Agri-Mark’s ’05 Losses: $1.6 Million (p. 4):
Agri-Mark, the predominant dairy co-op in New England market, reported losses of $1.6 million last year. The co-op is blaming a downturn in its cheese businesses.

MD/VA Co-op Members: $66,666 question (p. 4):
An appraisal of the Laurel, Maryland property by dissident co-op members came in $100,000,000 higher than estimates provided by an attorney for Maryland & Virginia milk co-op. Divided among the 1500 members, that difference comes to $66,666/member. Dissidents are also concerned about potential inside deal involving one or more MD/VA board members.

Leprino Foods: No Polydimethylsiloxane in Pizza Cheese (p. 5):
This story is posted on our Web site. Leprino Foods angrily denies, in a February 17, 2006, letter, that the firm is using Polydimethylsiloxane in manufacture of its Pizza Cheese. No denial or acknowledgement of prior use is evident in the letter.

FDA Approved Polydimethylsiloxane in Foods in 1998/Chemical Forms Formaldehyde (a Carcinogen) Under Heat (p. 5):
In December 1998, the FDA approved use of Polydimethylsiloxane in human foods. However, FDA required no safety tests in advance. Further research by The Milkweed shows that Polydimethylsiloxane, under heat, decomposes into Formaldehyde (a cancer-causing substance), among other compounds. Worse yet: FDA allows Polydimethylsiloxane (used in food) to be sprayed with Formaldehyde (up to 1% of weight of Polydimethylsiloxane) as a preservative. Formaldehyde is regarded as one of the worst known, cancer-causing substances.

Feature Story #1: USDA 2005 Supply-Demand Data Suspicious (p. 6)
Our current dairy pricing mess—the collapse of dairy commodity prices— is not simply a case of old-fashioned “supply/demand” at work. John Bunting explains how our dairy marketing and pricing systems have failed to return a “fair share” to dairy producers. Read the complete story here.

Feature Story #2: USDA “Missed” 2005 MPC & Casein Imports (p. 7)
Imagine a line of milk tank trucks full of skim milk that stretches from Los Angeles to Boston, with an “extra” 86 miles left over. That’s how long a line of milk tank trucks would be, if all the Milk Protein Concentrates (MPCs) and casein powders imported into the U.S. last year were listed as skim milk. Read more here.

“Modern” Milk Has Lost Some of its Goodness (p. 8):
Research in England from 2002 shows that milk has lost a great deal nutrient content, in comparison to a similar study from 1940. This study raises questions about nutrient content of milk in the U.S.

Prairie Farms Studying Southern Belle (KY) Purchase (p. 8):
Prairie Farms is looking at a possible purchase of Southern Belle—the fluid milk processor in Somerset, Kentucky. Southern Belle—50% owned by DFA—is in the gun sights of the U.S. Department of Justice. DOJ will go to trial to strip away DFA’s ownership of Southern Belle. Looks like it’s easiest for DFA to sell.

Dealing With Raw Milk (p. 9):
Joel McNair explores opportunities and issues relating to sale of raw milk to consumers. McNair concludes: “The U.S. dairy needs to recognize that raw milk is a raw reality, and move accordingly to limit the dangers while also allowing full development of the opportunities.”

Dairy Cattle Replacement At Auction Markets Across the USA (p. 10):
Dairy livestock prices across the country are starting to go backwards—in some areas and some ages of animals—due to farm milk price worries. Only in The Milkweed.

Organic Meeting Is Energy Heartening (p. 11):
Pete Hardin writes about attending the Upper Midwest Organic Farming Conference. Organic food producers are optimistic and their market is growing. What a meeting!

Block and Barrel Cheddar At Support Prices (p. 12):
Dairy commodity prices are at or near rock-bottom. Strangely: the cash market for Cheddar blocks at the Chicago Mercantile Exchange is, on average, about twelve cents per pound below the price for New Zealand Cheddar F.O.B. the port in NZ.

February 2006 Issue No. 319

Feature Story #1 - Bush: 3-Cent Milk Tax, Zap Dairy Supports & DEIP (p. 1):
President George W. Bush’s recently unveiled federal budget proposes “bleeding” dairy farmers’ milk checks with an old-fashioned cure: a newly created “Milk Tax.” Read the entire story here.

Feature Story #2 - Thieves Target Milk Checks (p. 11):
As dairy farmers find themselves caught between lower milk prices and zooming farm production costs in the year ahead, their absolutely gutless dairy co-ops are pursuing agendas that will only make matters worse for producers on both fronts. Read all about it in Pete Hardin’s column this month.

Co-ops Goofed, Want Another “Make-Allowance” Hearing (p. 1):
The recent national federal milk order hearing in late January turned into a farce. The large dairy co-ops, in their efforts to raise manufacturing plant “make-allowances,” failed to request decoupling movers for Class 1 (fluid) and Class II (yogurt, ice cream). Thus, the proposal to boost manufacturing allowances would lower ALL classes of milk in the FMMO system. When National Milk Producers’ economist tried to testify about a proposal to decouple Class I and Class II milk base prices from the requested cuts in Class III/IV prices, his testimony was disallowed following objections from fluid processors’ lawyers. Now the dairy co-op lawyers are scrambling to have another hearing to try to avoid dropping all classes of milk.

Reduced MILC Gets OK (p. 1):
The Milk Income Loss Contract program has been reauthorized. But the payment level has been reduced from 45% to 34.9% of the difference between a Class III price of $13.69/cwt. and anything lower.

“Make Allowance” Hearing’s Incompetence Needs “Take 2” (p. 2):
The FMMO hearing that started on January 24 was a complete. USDA’s economic impact analysis—printed in the January 5, 2006 Federal Register—dangerously understated the economic impact, in The Milkweed’s analysis.

DFA Lawyer Warns Jury: Don’t Overpay Dean Mom’s Kids! (p. 2):
In June 2002, a DFA milk truck driver’s inattention killed three generations of a family (grandmother, mother, and 10-month old infant son) in Kentucky. In a jury trial to determine damages to the surviving children, DFA’s lawyer argued that the jury shouldn’t pay the children too much money because that would rob the children of their ambitions! Consider the source.

Agri-Mark Puts $.30/Cwt. Reblends on Members (p. 3):
Effective January 1, Agri-Mark—the major dairy co-op in New England—increased its marketing loss deductions to a total of 30 cents per cwt. The Milkweed analyzes what’s behind Agri-Mark’s failure to profitably manage members’ investments in their co-op. (Hint: Too many economists running the co-op.) White House Hog-Tying DOJ Antitrust Probe (p. 4): In our analysis, the Antitrust investigation of Dairy Farmers of America (and various partners) by the U.S. Department of Justice is being blocked by White House political intervention. After all … DFA and Dean Foods are “friends” of W.

Did Kraft/Philip Morris Scientists Cross-Research Food/Tobacco Additions (p. 4):
We summarize a January 29, 2006 story in The Chicago Tribune about how tobacco lawsuit documents show that tobacco scientists for Philip Morris and food technologists for Kraft Foods shared information about using brain scan technology to learn about addictive properties of tobacco and food. Is Philip Morris “spiking” your Cheez Whiz?

Freund Family Farm Adds Value to Manure (p. 6):
In northwestern Connecticut, the Freund family dairy farm is finding multiple values for manure. They capture the methane from decomposing manure liquids to heat the farm house and the hot water supply for their dairy barn. And they’re making “cow pots” for starting seeds out of some of their manure solids. Inventive!

Monsanto’s ‘Posilac” Problems Not Over (p. 7):
A recent filing by Monsanto with the Securities and Exchange Commission shows that Monsanto continues having problems producing syringes full of its synthetic, milk-inducing cow hormone.

Best Dairy Policy that Lobbying Money Can Buy (p. 8):
Writer John Bunting traces the money flow from major dairy groups (processors and co-ops) to answer the question why our elected officials ands bureaucrats in Washington, D.C. keep “getting it wrong” in regard to federal dairy policies. Example: Dean Foods spent $1,275,000 lobbying in Washington, D.C. in 2004.

When Common sense Came to a Milk Order Hearing (p. 9):
Write Joel McNair pokes fun at the federal milk order hearing process by writing a fictitious account of an exchange between Wisconsin farmer Joe Holstein and Agri-Mark economist Bob Wellington. Joel’s fictitious farmer suggest he wants a “make-allowance” to under gird his dairy farm from losses.

National Dairy Livestock Price Map (p. 10):
Springers in some eastern markets are slipping back $100-150. But out west, prices for springers are stronger. Livestock marketers agree that demand for dairy calves is stronger.

Dairy Direly Needs … (p. 11):
Pete Hardin lays out the “basics” of what dairy needs to do to get a fair price for producers, starting with an honest cash market for Cheddar.

January 2006 Issue No. 318

Feature Story: See Pizza Cheese Update

Gerald Bos, DFA’s ‘Rasputin,’ Departs Abruptly (p. 2):
Gerald Bos, who has served as chief financial officer of DFA (and its predecessor co-op, Mid-America Dairymen) since 1979, had his “retirement” retroactively announced on January 3. Bos leaves amid a whole bunch of financial problems and “junk” status for some of the co-op’s notes. The rats are jumping ship.

WTO Path Unclear with Hong Kong Deal (p. 2):
A last-ditch effort at the recent ministerial conferences at the World Trade Organization in Hong Kong resulted in agreement to end farm subsidies by 2013. Hard to get a reading right now on what all this means.

Dean Foods Takes Back Tennessee Producers (p. 3):
Effective January 1, Dean Foods “took back” from Dairy Marketing Services (a DFA joint venture) all of the independent producers in Tennessee. We see this move by the nation’s largest fluid milk processor as a start of much wider procurement of “independents” … three years after Dean Foods dumped its producer milk supply.

Agri-Mark, Allied Target April 1 Merger (p. 3):
Two Northeast dairy co-ops—Agri-Mark and Allied—are aiming for merger April 1. Allied doesn’t have a lot of choices.

Richard Burroughs, DVM: On FDA and Posilac (p. 4):
Dr. Richard Burroughs, while at the FDA, publicly criticized the animal safety testing procedures for dairy cows injected with the then experimental hormone—rbGH. For the first time since leaving the agency, Burroughs lays out his concerns to public.

Foggy Details, Big Plans for Richmond, IN Dairy Plant (p. 5):
The taxpayers of Wayne County, Indiana are on the verge of turning over 26 acres in the industrial park in Richmond, Indiana to a individual who filed bankruptcy in 1994 with $12,150 in assets and $2,847,445 in debts. How many shots did this fellow put into a man in front of a St. Paul, Minnesota police station in 1989?

Fossil Fuel Reliance: “Burning Buried Sunshine” (p. 6):
Writer John Bunting looks around and ahead at our energy realities. Bunting unearths a study that estimates global fossil fuel consumption burns up 400 years’ worth of “stored sunshine” ANNUALLY!

Heifer Demand STRONG, Prices Rising for Good Animals (p. 7):
A real scarcity of available dairy heifers exists in the U.S. Buyers are scrambling all over the country, trying to find good dairy animals. Buyers are being burned by heifers carrying twins as well as “Free Martins” (reproductively sterile females). The Milkweed explains how resurgent use of “Posilac” (Monsanto’s cow growth hormone) has spurred the problem of “Free Martins.” Suggested: Premiums for “rbGH-Free” heifers.

Wal-Mart Ad ‘Tells It All” (p. 8):
We chuckle over an advertisement in a Texas dairy paper in which Wal-Mart claim: “Remember Who Brought Low Prices to the Heart of Dairy Country.” Amen.

MILC Extension Awaits Bush OK (p. 8):
Congress finally reauthorized the Milk Income Loss Contract program—after the program expired late last September. The MILC program is part of a comprehensive budget bill awaiting signature at the White House.

The Future Isn’t What They Think (p. 9):
Writer Joel McNair analyzes models for success and the opposite for future dairy farmers.

National Dairy Livestock Price Map (p. 10):
Only The Milkweed reports a national map showing dairy livestock prices in nearly a dozen and a half sites.

Energy: Future Dairy Farming Opportunity (p. 11):
Pete Hardin explains how dairy farmers are uniquely poised to harvest both food and energy in the future—in great part thanks to that unique food-producing critter—the dairy cow.

DOJ: Take Over DFA (p. 11):
Pete Hardin editorializes that the U.S. Department of Justice should take over Dairy Farmers of America as a “corrupt organization”—just like DOJ did to the Teamsters’ Union after old Jimmy Hoffa got kicked out. DFA’s financial instability is too great a potential danger for the nation’s dairy industry to endure, if DFA’s creditors seize assets.

USDA/FSA “Bounty System” Paid Employees on Foreclosures (p. 11):
Loan officers of USDA’s Farm Services Agency are paid a “commission” when they foreclose upon delinquent borrowers. This article quotes the actual percentages of compensation (based on farm value) paid to FSA loan officers after a foreclosure. Stalinist.

Cash Cheddar, Butter Prices Decline at CME (p. 12):
Both Cheddar and Grade AA butter have declined in the past month at the Chicago Mercantile Exchange’s cash markets. USDA’s monthly data for milk production and dairy products manufactured do not add up. We think there’s less milk out there than USDA reports for recent months.

December 2005 Issue No. 317

USDA Dairy Commodity Numbers Make No Sense (p. 1):
October 2005 USDA dairy data present the clearest case yet that the government’s dairy numbers don’t add up. A lot more farm milk production (+4.1%) doesn’t square with just +0.9% more total cheese production. We do not see corresponding increases in other commodities. USDA’s Cold Storage report for 10/31/05 shows continued declines in cheese inventory totals (compared both to the prior month and same month-year ago).

ERROR ALERT!!! Comments on Ice Cream Standards Need Docket Number (p. 1):
Last month, we failed to give the Docket Number for persons commenting to FDA on proposed ice cream regulations. That NECESSARY Docket Number is #2003-P-0132.

Canadian Study: Processed Cheese Products from UF Milk Have Less Calcium, Energy (p. 2):
The Consumer Interest Alliance, commissioned by Dairy Farmers of Canada, has studied nutritional profiles and consumer expectations about cheese products. Consumers are appalled that cheeses could be made from milk ingredients, not milk. And scientific studies of calorie content and calcium levels in Kraft “Singles” show that these products (made from UF) milk are below legal Canadian standards.

Foremost Cuts Southern Wisconsin Pay Prices (p. 2):
Foremost Farms’ producers in southern Wisconsin noted lower pay prices for October milk, due to their co-op paying lower “other solids,” below the federal milk order “Producer Price Differential” and additional deducts for hauling.

Hilmar to Build Huge West Texas Cheese Plant (p. 3):
The Milkweed analyzes the recent announcement by California’s Hilmar Cheese that the firm will build a 10-million-lb. per day cheese plant in Texas’ panhandle, 65 from Amarillo. Many important factors lie behind plans for this mega-plant, including what’s becoming a “reverse migration” out of California. Must reading!

DFA: More Transportation Credits for SE Orders (p. 3):
The incompetents at Dairy Farmers of America have requested that USDA hold an emergency hearing to discuss a proposal for increased hauling credits to bring in supplemental milk. Trouble is: DFA isn’t keeping its costs down and isn’t charging enough money for raw milk.

DMS Shafting NY &PA ‘Independent’ Producers (p. 4):
Dairy Marketing Services (a crooked bunch) ripped off dairy producers in east-central New York by shifting the transaction site of milk from Boston to Upstate New York. DMS also screwed three of the four Pennsylvania producers who’d objected in late August about DMS taking over their milk market from Farmland Dairies. Those three producers received identical, low butterfat tests with the records hand-written (over-riding computerized testing and barcode reporting systems). So much for “free speech” if that speech criticizes DMS or DFA.

IGF-1 Human Health Questions Return (p. 4):
The New York Times recently reported serious questions about a secondary hormone associated with use of recombinant bovine growth hormone injected into dairy cows to make them more milk. That secondary hormone—IGF-1—is associated with several types of human cancers.

Adios, Gary. Take It Personally! (p. 5):
The Milkweed takes final potshots at retiring DFA CEO Gary Hanman. If you don’t subscribe, you’ll never know why, several years ago, this publication advised Hanman to seek the help of a professional proctologist!

MD/VA Dissidents Deliver Petitions, Hire Lawyers (p. 5):
Angry members of Maryland and Virginia Milk Producers Cooperative Assn. (MD/VA) have collected more than 150 members’ signatures on petitions to call a special meeting of the co-op. They hope to learn more details about the proposed sale of their co-op’s main asset—a milk powder plant and 200 acres of adjoining real estate at Laurel, Maryland. Angry members have hired a high-powered law firm, with implications being that co-op directors face potential lawsuits if they don’t handle the Laurel sale right.

Saputo Making Suspicious Moves (p. 5):
Saputo Cheese—the Canadian firm that produces Italian-style cheeses, is seeing compromised operations. Saputo’s Hancock, Maryland plant is suffering repeated mechanical breakdowns—curtailing cheese output. In the Midwest, Saputo is begging for extra milk—right after it cut prices to raw milk sellers. Huge quantities of “starter” continue to come in the U.S. from Canada (Saputo).

Feature Story #1 - Pizza Huts Don’t “Got Mozzarella” Atop Pizzas (p. 6):
Pizza Hut—the nation’s largest pizza chain—deceives customers with false menu claims that “Mozzarella” cheese is on top of certain pizzas. Read writer Paris Reidhead’s report here.

Feature Story #2 -Take Pizza Hut to the Woodshed (p. 11):
Following up on Paris Reidhead’s must-read feature story above, Pete Hardin explains how Pizza Hut’s mislabeling of non-standardized product as “Mozzarella” on its menus presents a good opportunity for real friends of the dairy industry to get active and humble this corporate giant. Get active! Read more on how you can make a difference here.

FDA Catering to the Big Boys with UF Proposal (p. 7):
FDA is catering to special interests in its proposal to approve Ultra-Filtered (UF) milk for use in manufacture of standardized cheeses.

Japanese to Allow Imports of U.S. Beef (p. 8):
Japan will soon be allowing U.S. beef to enter that country. Trouble is: three-quarters of Japanese consumers surveyed state they don’t want to eat U.S. beef.

Rick Smith Named DFA CEO/President (p. 8):
Rick Smith will have all the top responsibilities at DFA. Effective January 1, Smith will be CEO, president, and chief operating officer.

Chickens Coming Home to Roost (p. 9):
Columnist Joel McNair comments on several matters: global oil reserves may be much less than originally imagined; prices paid to Organic dairy producers in the Northeast could approach $27/cwt.; and how the big boys are trying to control organic markets.

Commodity Prices Remain Frustratingly Low (p. 12):
Despite lower numbers for cheese and butter production and inventories, commodity prices at the Chicago Mercantile Exchange remain very, very low.

November 2005 Issue No. 316
Feature Story #1 - Help Stop FDA’s Plan to Put ‘Mystery Milk’ in Ice Cream (p. 1):
The federal Food and Drug Administration (FDA) is soliciting comments from consumers until December 27, 2005, on proposed changes in U.S. ice cream standards. Read Pete Hardin’s story revealing how the International Ice Cream Assn. (IICA, the trade lobby) wants to dramatically change standards for dairy ingredients that would “dumb down” the quality and safety of ice cream.

DOJ Beats DFA on Southern Belle Appeal (p. 1):
On October 24, the federal Appeals Court in Cincinnati ruled that a summer 2004 decision by a federal judge in Kentucky was wrong. The Appeals Court agreed with the U.S. Department of Justice’s claim that DFA’s half-ownership in the only two competing fluid milk processors in southern Kentucky is a potential Antitrust violation. The issue will now go to trial.

Dean Foods Preparing to Sell Some Dairy Plants (p. 2):
We analyze reports that Dean Foods is preparing to sell off fluid milk plants along the East Coast, from Atlanta to New Jersey.

DFA’s Partners Netted $91.7 Million!!! (p. 2):
Two DFA “partners” in fluid milk processing businesses—Robert Allen and Allen Meyer—collectively netted $91.7 million selling to DFA interests in firms they jointly held with DFA. One deal each netted this pair $91.7 million—that total is more money than DFA ever claimed to have made in any fiscal year.

FDA Proposes UF Milk for Standardized Cheeses (p. 3):
FDA has recently proposed allowing Ultra-Filtered (UF) milk to be used to manufacture standardized cheeses (like Cheddar). Writer John Bunting analyzes many errors in FDA’s recommendations, which were published in the Federal Register. Example: a 24-year-old article about nutritional quality of cheeses made from UF milk reported all samples but one had deteriorated severely at 32 weeks.

Maryland/Virginia Co-op Members to Battle Bylaw Changes (p. 4):
Before Christmas, the leaders of Maryland & Virginia Milk Producers Co-op want to sell that co-op’s biggest asset—a milk powder plant and adjoining 200 acres of real estate in the Washington, D.C. suburb of Laurel, Maryland. Estimated value: between $50 and $100 million. But the co-ops board is proposing bylaw changes that would shift power to determine how to allocate the net proceeds from that sale. The board wants to grab that power from the members, through bylaw changes.

DMI Funding Mucho MPC Research (p. 5):
Why are dairy farmers’ promotion dollars funding research involving milk protein concentrates?

Andy Rooney Blasted Chemical-Laden ‘Half and Half’ (p. 5):
CBS television’s 60 Minutes commentator Andy Rooney got angry and blasted all the chemicals and fillers in “Half and Half.” Rooney concluded: “My suggestion, if they want to sell more milk, is that they go back to selling what comes out of a cow.” AMEN!

Holiday Milk Dumping Likely in Northeast (p. 5):
Many dairy plants have closed in the Northeast in the past 18 months. At the end of December, when fluid milk plants take in minimal amounts of milk, it’s predictable that the remaining cheese and nonfat dry milk plants will not be able to handle all the milk in the region. Trucking, diesel fuel, and out-of-region plant space will all be major headaches for those trying to find a home for holiday milk.

Southwest Cheese Opening Will Rock Industry (p. 6):
In early 2006, the nation’s biggest American cheese plant will hit full operating capacity in Clovis, New Mexico. Writer John Bunting explores many aspects of this newly opened cheese plant and some of its impacts on our cheese industry.

Rumor: Dean Foods to Solicit Direct Milk Supply (p. 7):
Dean Foods is preparing to “go back to the country” for its own farm milk supply in early 2006. Three years ago, Dean Foods “dumped” its dairy farmers into a disadvantageous market with Dairy Marketing Services (DMS—a DFA clone). Many reasons—from DFA’s financial problems to intense Antitrust scrutiny—mean it’s wise that Dean Foods regain its own supply of milk.

Wisconsin Bumbles into Livestock Premises ID (p. 8):
“America’s Dairyland” is the first state in the nation to enact mandatory registration of premises housing livestock and poultry. This mandate is an experimental program to give health authorities a registry of sites where various types of creatures are located, in the event of an epidemic (like Asian Avian flu). Trouble is: the politicians and their cronies are really screwing up this program. The Wisconsin Livestock Identification Consortium, which operates on millions of dollars of government grants, recently claimed that persons who didn’t register face penalties from $200 to $5000! Meanwhile, the state's Amish farming community's leaders warn that this program is the first step down the path towards the feared "Mark of the Beast" warned about in the Book of Revelations!

Foremost Farms Offers $2.20/cwt. Premiums (+Cheap Hauling) to Big Wisconsin Dairies (p. 8):
Desperate for milk to fill its big, recently-remodeled cheese plant in Richland Center, Wisconsin, Foremost Farms is offering premiums of $2.20/cwt. to mega-dairies in Wisconsin … plus cheap hauling ($.15-.20/cwt.). That kind of money won’t come out of the price for cheese.

The Real Reasons Why Autumn Prices Fall (p. 9):
Writer Joel McNair analyzes why for five of the past seven fall seasons, commodity Cheddar prices have collapsed at the Chicago Mercantile Exchange. What’s up? The “big boys” are milking dairy’s pricing system by using imports to seasonally break prices.

Feature Story #2 - NOT In OUR Ice Cream! (p. 11):
Read Pete Hardin’s Straight Talk editorial urging you to study and register your opposition to FDA regarding proposed changes that would legalize the use of imported “mystery milk” in federal ice cream standards. Also see Feature Story #1 above.

Ugly: Cheddar and Butter Prices Erode at CME (p. 12):
CME cash prices for Cheddar and Grade AA butter have eroded even further. What’s to blame? Pete Hardin points the finger at imports of dairy ingredients and high-protein “cheese starter.”

PLUS … ADDITIONAL STORIES IN OUR NOVEMBER ISSUE’S SPECIAL SECTION!

GM Alfalfa Approved … Without Animal Feeding Tests (p. A):
Writer Paris Reidhead details how USDA has approved Monsanto’s genetically-modified alfalfa. But no feeding tests have been conducted on cattle or horses. BEWARE!

Feature Story #3 - What Soybean Processors Don’t Tell Us (pages B and C):
Ninety-five percent of all soybeans processed into meal and oil in the U.S. are treated with massive quantities of Hexane—a volatile organic compound that is both a neurotoxin and a carcinogen. Writer Paris Reidhead explores how soybeans are processed, details about Hexane, and why the soybean processors don’t want to talk about using this dangerous chemical to manufacture products consumed by humans and animals used for human food production. Read the complete story here.

Dairy on Collision Course With Deficits, Free Trade (p. C):
Dairy farmers should beware of “Free Trade” concessions that may be offered as the Bush administration leading up to the “Hong Kong” ministerial meeting of the World Trade Organization talks in December. ”Free Trade” is falling apart, and that makes this desperate White House all the more dangerous to succeed, by burning dairy farmers’ interests at the altar of “Free Trade.” Deficits also drive government’s will to reduce farm programs.

Setting the Record Straight on Butterfat (p. D):
Long-time New York State farm broadcaster (and true friend of farmers) Ed Slusarczyk explains the upside of butterfat and the downsides of vegetable-based fats in the human diet. Ed really speaks up for dairy products in the diet!

October 2005 Issue No. 315
CME Cheddar Prices Drop, Energy Costs Soar (p. 1):
Dairy farmers are looking at least a couple tight months, as Cheddar prices have dropped at the Chicago Mercantile Exchange at the same time that energy prices are soaring.

Feature Story #1 - Agri-Mark: Make Producers Pay Rising Plant Costs (p. 1):
Agri-Mark, the prominent New England dairy co-op, has requested an emergency national milk order hearing to raise the “make allowance” for manufacturing plants. Read all about Agri-Mark’s attempt to pass dairy manufacturing costs backwards to the farmer here.

Making Farmers Pay Off-Farm Coasts: Systemic Failure (p. 2):
Milk hauling and dairy plant operating costs are skyrocketing, due to higher energy costs. Trouble is: in dairy’s usual way, marketers are looking to dump off-farm energy costs on the farmer. Failure to pass higher costs up the marketing chain, instead of back down to the farmer, is begging for trouble.

MILC Program Expires (p. 2):
On September 30, USDA’s “safety net” for dairy farmer income—the Milk Income Loss Compensation program—died. Doubtful that it can be revived, given Washington’s financial mess.

Plant Closings Leave Balancing Headaches in Northeast (p. 3):
Ouch. During the past year-plus, a series of dairy plant closings in the Northeast has dramatically diminished daily manufacturing plant and milk silo capacity. The Milkweed estimates that five to six million lbs. of daily processing capacity and eight to ten million lbs. of storage (silo) capacity have been lost—putting raw milk marketers in a big bind on weekends, holidays and spring flush.

Saputo Closing Whitehall, PA, Plant (p. 3):
Saputo Cheese will close its Whitehall, PA Italian cheese plant at the end of October, removing a million lbs. a day of critical manufacturing capacity.

Antitrust Investigation Studying DFA/National Dairy Holdings (p. 4):
The current round of interviews by Antitrust investigators focuses on the relationship between DFA and National Dairy Holdings (DFA’s fluid processing subsidiary).

Goat/Sheep Min in Ice Cream: FDA Wants Public Comments (p. 4):
In September, the federal Food and Drug Administration published a proposed rule in the Federal Register, which calls for dramatically changing standards for ice cream ingredients. “Other species” milk—such as from goats, sheep, water buffalo, etc.—would be allowed into your ice cream if these rules become law. YUK!

CNN’s Dobbs Calls DFA ‘Milk Monopoly’ (p. 5):
In late August, CNN’s news anchor Lou Dobbs covered DFA’s monopolistic behaviors, focusing on a group of Pennsylvania dairy farmers whose milk market was taken away by DFA’s subsidiary, Dairy Marketing Services.

More Media Stories Smack DFA Soundly (p. 5):
It’s been a tough past couple weeks for DFA with the press. The Northern Colorado Business Review and the Knoxville (TN) News Sentinel carried in-depth stories detailing DFA’s control of producer milk markets in their areas.

Feature Story #2 - Lie & Deny: NMPF’s ‘MPCs in Fluid Milk’ Role (p. 6):
The organization claiming to be the “voice of America’s dairy farmers” wants to include Milk Protein Concentrate (MPC) in Class I (fluid) milk through USDA’s federal milk order pricing program! Read more about how National Milk Producers Federation (NMPF) and its member co-ops propose to “garbage” fluid milk products by including MPCs in beverage milk.

More Than Meets the Eye with Fluid Demand Decline (p. 7):
Writer John Bunting analyzes annual fluid milk purchases on an income basis and concludes that declining financial status in the lower income groups has caused a big decline in their fluid milk purchases.

CROPP’s Processing, Marketing Costs Through the Roof (p. 7):
John Bunting analyzes the internal data on fluid milk costs for CROPP—the organic co-op that operates under the “Organic Valley” label. Hard to see how CROPP can profitably compete against the “biggies” (Dean Foods, H. P. Hood) when some of its costs are astronomical, compared to industry figures.

UW Professor Blows Smoke on Milk Protein Concentrates (p. 8):
Mark Johnson, senior scientist at the Wisconsin Center for Dairy Research, claimed on the national “Dairyline” radio program that cheese made using Milk Protein Concentrate has no defects of quality or flavor! What a stretch!

NZ Facing Weather, Pay Price Problems (p. 8):
Dry weather in New Zealand at the beginning of that dairy island nation’s pasture season raises questions about export volumes of manufactured dairy products available in 2006.

Way Too Energy Intensive (p. 9):
Joel McNair takes a hard look at the energy-intensive nature of the U.S. dairy industry and concludes that those who fail to adjust are in for shocks.

“Ingredientized’ Nightmare (p. 11):
Pete Hardin gives both barrels to the organizations and individuals who want to “dumb down” our dairy products by substituting ingredients (often imported) for good, old U.S. of A. milk. Fluid milk, cheese, ice cream—all of these dairy commodities are under attack from the “ingredients” lobby.

Cheddar Prices Drop Sharply; Butter Also Down (p. 12):
Cheddar prices at the Chicago Mercantile Exchange have dropped seriously in the past month—down into the very low “$1.40s”. But data shows American cheese inventories declining, butter inventories relatively low, and milk powder tight. Since April 2005, imports of cheese and butter have declined significantly.

September 2005 Issue No. 314

Katrina Raises Great Questions, Challenges (p. 1):
The impact of Hurricane Katrina upon U.S. energy sources/distribution, as well as the storm’s impact upon grain producers, are discussed. The nation is in for several long months.

Agri-Mark Wants to Lower Federal Order Class III Prices (p. 2):
Agri-Mark, the major dairy co-op in New England, wants to lower prices paid by cheese plants for Class III milk in the federal milk orders. Agri-Mark is boo-hooing about an alleged $.52/cwt. difference in 2004 between California cheese milk prices and FMMO prices. That’s an irrelevant statistic, for many reasons. Why do the co-ops repeatedly take money out of farmers’ milk checks to cover their marketing problems?

Fluid Milk Sales Nose-Dived in 2004: (p. 2):
Last year, fluid milk sales tumbled more than one billion lbs. That’s a decline of about 2%, on a per capita basis. Fluid milk marketing and promotion efforts stink.

Dean Foods Takes ‘Independent’ Producers in Tennessee (p. 3):
Starting on September 1, Dean Foods began accepting milk from about two dozen “independent” producers for the company’s Barber Dairy plant in Alabama.

SMA Can’t Resolve Operating Problems (p. 3):
The Southern Marketing Agency has failed to substantially revise its fluid super pool program for the Southeast and Appalachian federal milk orders. Big losses will continue. Stability of SMA is in danger. Losses have totaled more than $1.00/cwt. for each of the past couple fall seasons.

Real Problem is Imports, Not U.S. Milk Production Increases (p. 3):
John Bunting shows how the problem for stagnant cheese prices is a dramatic increase in dairy imports, not U.S. milk production, during 2005.

CNN’s Lou Dobbs Blasts DFA (p. 3):
Kapow! See our Web site for the transcript of Lou Dobbs’ blast at Dairy Farmers of America, the “Milk Monopoly.”

Did DMS’ Failure to Provide Audits to Farmland Producers Violate NY Law (p. 4):
Citing NYS Ag & Markets law, The Milkweed reveals how this summer’s takeover of Farmland Dairies “independent” producers by Dairy Marketing Services violated the law in New York State that requires co-ops provide their most recent financial audit before entering into a milk marketing agreement with producers.

Feature Story #1: Raw Milk, Cow–Share Dairy Nets $500 Per Cow Per Month (p. 5)
Read Pete Hardin’s report here about the dairy near Medicine Lake, Washington that posts net profits (excluding labor) of $500 per month … per cow!

Katrina Disrupts Gulf Coast Energy Infrastructure (p. 6):
John Bunting analyzes the percent of U.S. energy infrastructure (petroleum, natural gas, import capacity) located in the Gulf Coast region. Over half of all U.S. oil imports enter through Gulf of Mexico ports.

Katrina’s Aftermath Will Change Dairy (p. 7):
The run-up in energy costs is a major factor driving up costs at every level in the U.S. dairy industry. From energy costs and availability, to anticipated higher interest rates, Katrina’s impact will be massive.

Louisiana Dairyman Explains Katrina’s Havoc (p. 7):
Jerome Walker of Franklinton, Louisiana discusses his experiences with Katrina and all the headaches of milking his cows for more than a week without electric service. He kept things going … mostly … using his old IH-986 tractor to power a generator.

DFA/NMPF Want MPCs in Fluid Milk (p. 8):
At a federal milk order hearing in Pittsburgh, PA in late June 2005, National Milk Producers Federation and Dairy Farmers of America testified in favor of allowing MPCs to be used in Class 1 (fluid) milk products and valuing those proteins at the Class 1 price. MPCs in fluid milk? GAG!

Katrina Shows We’re All Frogs in the Frying Pan (p. 9):
Joel McNair explains how we’d better get used to higher energy costs and scarcity, in business and daily life.

National Dairy Livestock Price Map (p. 10):
Demand and prices remain strong for all ages of female dairy animals.

Feature Story #2: Kick Co-ops That Support MPCs in Fluid Milk (p. 11)
In this month’s “Straight Talk” column, Pete Hardin states, “Bad enough that “they” have screwed up the flavor and quality of cheese with foreign MPCs! Now look what “they” (NMPF and DFA) want to do to our fluid milk!” Read the full story here.

Dairy Heading into Uncertain Supply-Demand Times (p. 12):
Both the milk supply and consumer demand are hard to project, in light of bad weather and tough economic times ahead. Pete Hardin explores the dairy commodity scene. Hint: Watch out for butter prices in the next couple months!

August 2005 Issue No. 313

Tight Milk, Commodity Situation Directly Ahead (p. 1):
Hot, dry weather is taking its toll across the board in agriculture. Milk production this summer is down in many parts of the country. The U.S. grain crop is in trouble. Dairy is on the verge of a run-up in commodity and farm milk prices, The Milkweed projects.

Hanman Gives Up Some DFA Duties (p. 1):
DFA’s corporate executive committee is taking away responsibilities from long-term Great Leader Gary Hanman. At a heated meeting in mid-July, that committee named Rick Smith the newly-minted “President and Chief Operating Officer,” effective August 1.

Feature Story: DFA Bosses at Fancy Maine ‘Lobsterfest’ (p. 2):
DFA’s senior executives and corporate directors recently enjoyed a posh “retreat” on the Maine coast in late July that lasted almost a week … right after DFA members in Louisiana and Tennessee received settlement checks for June 2005 milk deliveries that showed payments of $1.61 and $1.30 per cwt., respectively, below the prevailing federal milk order statistical uniform prices. Read editor/publisher Pete Hardin’s story of the month here.

Big Reblend for DFA Members in Southeast (p. 2):
For June 2005, DFA members in Louisiana paid “reblends” of $1.61/cwt. under the blend price (not including any hauling). In Tennessee, the DFA June reblend was $1.30/cwt.

Continuing, Huge Losses Destabilize SMA (p. 3):
The Southern Marketing Agency (SMA—the Southeast “not-so super pool”) during August is studying “efficiencies” to try to tighten operations and stop the Maryland/Virginia co-op’s threat to quit. It’s very likely that SMA could collapse in late summer or early fall—causing a mad scramble for supplementary milk to supply the Southeast.

Appeals Court Allows Canadian Slaughter Cattle (p. 3):
The Ninth Circuit Court of Appeals overturned a temporary restraining order by a federal judge in Montana, making legal import of live Canadian cattle for slaughter. Strangely, the appeals panel ruled that Judge Richard Cebull was not adequately deferential to USDA.

Despite Higher Prices, Farmers Getting Price Shaft (p. 4):
Despite the ups and downs in Class I (fluid) milk prices during the past 18 months, dairy farmers see retail price gains charged consumers increasing faster than farm milk receipts.

R-CALF USA Challenges Beef Establishment (p. 5):
A trouble-making group of livestock producers is creating turmoil in the beef industry by challenging the government and major livestock organizations. R-CALF USA is quickly gaining membership as it targets “Free Trade” and failure by groups to support and enact the mandatory “Country of Origin Labeling” law. Guest contributor Jim Eichstadt does a good job portraying R-CALF USA, its purposes and its leaders.

Farmland Dairies Producers Forced into DMS (p. 6):
In mid-July, the 400+ Northeast dairy farmers shipping to Farmland Dairies were informed their milk marketing had been turned over to Dairy Marketing Services, effective July 1. (DMS is a DFA joint venture.) At a producer meeting in Unionville, New York on August 1, DMS personnel refused to provide any financial information about DMS—not even a financial audit. The impacted producers are steaming mad.

Agri-Mark Installs (Questionable) $.15/cwt. Deduct (p. 7):
On July 15, members of Agri-Mark (the big dairy co-op in New England) received a letter informing them of a 15-cent deduct against their milk income. Agri-Mark blamed a variety of factors, but primarily the $.52/cwt. difference between California’s cheese milk price and the federal order Class III (cheese) milk price in 2004. That’s bunk. Costs of transporting cheese from coast to coast eat up all of that difference. Agri-Mark members deserve better.

$27 Base Prices ands Other Oddities from the Organic World (p. 9):
Joel McNair explains how rising grain organic prices create a need for something like a $27/cwt. base price for organic milk. If producers don’t get that money, they’re not going to make organic product. Meanwhile, Joel also wonders how long CROPP (the farmer-owned co-op) can battle in the fluid milk ring against industry biggies Dean Foods and Hood.

Dairy Cattle Price Map (p. 10):
Dairy livestock trends are flat or somewhat weaker during the past month. Factors pulling down prices somewhat include concerns about lower than anticipated farm milk prices, as well as higher costs for purchased hay and grain this winter.

Will Antitrust EVER Act? (p.11):
On his opinion page, editor/publisher Pete Hardin gives both barrels to the Antitrust Division of the U.S. Department of Justice. Hardin’s angry because 400+ producers got sucked involuntarily into Dairy Marketing Services’ control in July. DOJ has been investigating DFA/DMS for a year, but these dirty tricks continue. Hardin lists several actions DOJ can take now to restore fair competition to the U.S. dairy industry.

Cheddar Prices Plunge, Butter Holds, NFDM Stronger (p. 12):
In the dairy commodity review, we note plunging Cheddar cash prices at the Chicago Mercantile Exchange. However, heat/humidity … and low inventories of butter and nonfat dry milk .. should pull up CME Cheddar prices soon.

July 2005 Issue No. 312

USDA Botched, Covered Up Positive ‘Mad Cow’ Test (p. 1):
USDA covered up a positive test for BSE (“Mad Cow Disease”) last November. A review of the department’s handling of the BSE issue found the testing discrepancy. More and more, the federal government’s efforts to assure the safety of the U.S. beef supply look like an “eyes wide shut” cover-up. Shocking details are reported.

‘Hurricane Dean’ Avoid Hitting Florida (p. 1):
Last month, we reported on how Dean Foods was refusing to renew the milk supply agreement for its Florida plants with Southeast Milk Inc.—the local co-op. In late June, these parties finally met and Dean Foods (embarrassed by the publicity) quickly renegotiated a deal for another year.

DFA’$ Partner$ Big-Buck$ Deal$ Exposed (p. 2):
Mega-MOO-LA! According to an investigative article in the Chicago Tribune on June 20, Dairy Farmers of America paid spectacular co-investors in fluid milk businesses. Bob Allen and Allen Meyer netted tens of millions of dollars selling their shares of businesses back to DFA.

Dean Foods Wants to Regain Farm Milk Supply (p. 3):
Dean Foods is heading back to the country to recover its own farm milk supply—only two and a half years after “dumping” its 2500 independent producers into the klepto-clutches of DFA/DMS. Why?

Wholesale/Retail Price Spread Grows (p. 3):
Just during the first four months of 2005, supermarkets made a killing on cheese, raising the “spread” between CME commodity prices for cheese and butter by $.44/lb. and $.60/lb., respectively.

DFA-Owned Processors Bully Kentucky Co-op (p. 4):
A local co-op in southern Kentucky signed an annual milk supply agreement with the Flav-O-Rich (owned by DFA) plant in London, Kentucky on June 9. Five days later, Flav-O-Rich announced it would not honor that contract. The co-op was forced to sign a deal with Southern Belle (also owned by DFA). Federal Antitrust officials did not intervene.

Dairy Starting to Prepare for DFA Financial Collapse (4):
Some big parties in the U.S. dairy industry are starting to make contingencies for THE BIG ONE. The Milkweed estimates that 40% or more of all U.S. farm milk revenue courses through DFA’s financial web.

Big Bucks Paid for Heifers at Brush, Colorado (p. 5):
Top end prices for springing heifers and short-bred heifers (east of the Rockies) have consistently been seen at the Brush Livestock Auction in 2005. The Milkweed profiles this auction and its operators.

Feature Story: Industry Big Boys Want MPC in Fluid Milk (p. 6)
USDA convened a public hearing June 20 in Pittsburgh on proposed federal milk marketing order amendments that would include Milk Protein Concentrate in the definition of Class I (fluid) milk. Read John Bunting’s report on how this proposal supported by DFA and other dairy industry big boys would be bad news for farmers and consumers concerned about MPC. Also read Bunting’s testimony presented at the hearing on behalf of the National Family Farm Coalition.

PCRM Lawsuit Targets Dairy’s Weight-Loss Ads (p. 7):
On behalf of a Virginia woman who gained a whopping TWO POUNDS on a dairy-heavy diet advertised for weight loss, the Physicians Committee for Responsible Medicine (a wacko animal rights group) has sued various dairy promotion groups and private companies. TWO POUNDS! The Milkweed explores the cozy relationships between PCRM and People for the Ethical Treatment of Animals (PETA).

DFA Wants Big Confinement Organic Dairies (p. 7):
Dairy Farmers of America submitted comments to the National Organic Standards Board this spring in favor of allowing big organic dairies to be confinement operations, instead of requiring that cows have daily access to pasture.

Stanford Prof Warns of Terrorists & ‘Toxic Milk’ (p. 8):
Egad, as professor from Stanford University is trying to scare everybody, claiming terrorists will dump botulism bugs in milk tankers while the driver is having breakfast. What crap! The federal government tried to suppress this ridiculous report, which, when finally unveiled, was the lead story in late June on ABC-TV’s evening news.

Beckendorf to Sell Farm/Cows? (p. 8):
Round Tom Ball, Texas, DFA corporate big-wig (and National Milk Producers Federation board chairman) Charles Beckendorf wants his family to sign over title to the family dairy estate so he can sell it privately. Is this big-wig getting nervous feet about director liability?

USDA’s BSE Boondoggle. Slapstick … or Sinister? (p. 9):
Joel McNair gives USDA both barrels of his .10-gauge shotgun on the mishandling of the ‘Mad Cow’ testing. He questions what the federal government’s real motives are in its failed BSE safety oversight, what with all the former beef industry executives atop USDA.

Grasping for Fundamentals (p. 11):
MPC in Class 1 milk? Pete Hardin explores some critical questions in dairy pricing and product standards: What is milk? What is cheese? How to properly price cheese? How to properly price farm milk? Dairy needs to honestly address these issues, before farmers (and consumers) have a fair shake.

Butter Inventories Shrink, Prices Rise (p. 12):
Don’t be fooled by short-term aberrations in monthly milk supply data. Butter and nonfat dry milk supplies are tight, as we head into the second half of 2005.

June 2005 Issue No. 311

Feature Story: Dean Foods Isn’t Renewing Florida Supply Contract (p. 1):
Tensions between milk suppliers and processors in Florida and the Southeast are in danger of blowing wide apart. In late May, Dean Foods, the nation’s largest fluid milk processor, notified Southeast Milk, Inc. (SMI) that Dean is not renewing their annual raw milk supply agreement starting July 1. Read all about it here in Pete Hardin’s story of the month.

Forage Woes Across Much of U.S. (p. 1):
Many major dairy regions of the country are experiencing problems with the 2005 forage crop. Too wet. Too dry. Too cold. Name it. Forage quality and quantity are key to the coming year’s milk production.

Stonyfield Yogurt Wants NZ Organic Ingredients (p. 3):
New Hampshire’s Dep’t of Agriculture has been requested to send an inspector to approve New Zealand dairy farms and plants to meet U.S. organic standards. Stonyfield Farm Yogurt—owned by the giant French firm Danone (Dannon to us hicks)—can’t get enough U.S. organic milk so wants to import organic ingredients from 12,000 miles away.

DFA Issues Contradicting Claims about Financial Performance (p. 3):
Stung by a weekly “Farm & Food File” column by Alan Guebert, DFA’s board chairman Tom Camerlo issued letters to the editor, claiming DFA’s finances are “healthy.” Funny thing, in mid-May, DFA’s Mountain region sent out a letter to members, explaining the 53-cent/cwt. difference between the April 2005 Central States milk order PPD of 53 cents at Denver and the DFA PPD of ZERO for that month.

Imports Still Pounding Dairy (p. 4):
John Bunting analyzes how 2005 dairy import trends are holding down U.S. dairy commodity (and farm milk) prices. Unbelievably … New Zealand is importing milk powder into the U.S. at prices nearly a dime per pound higher than what the nation’s illustrious dairy co-ops are export it for (through New Zealand)!

Proposed Pooling Change Would Hurt Producers in Orders #5 & #& (p. 4):
DFA and its related shyster co-ops have asked USDA to eliminate the “first day” pooling rules for farm milk in Order #5 (Appalachian) and Order #7 (Southeast). Removing that requirement would allow co-ops to dump massive quantities of outside milk on those orders—further lowering blend prices.

Draconian Measures Proposed for Dairy ‘Food Security” (p. 5):
Egad. Consultants hired by the Defense Department want to use drone airplanes over dairy farms and mandate high security fences around areas where dairy cows are located. D-U-M-B.

NZ “Powdergate’ Still Simmering (p 5):
It’s a scandal “down under” … dairy-based materials listed as animal feed were exported to the U.S. (and other nations) and used for human food consumption.

Supreme Court Upholds Beef Checkoff (p. 6):
On May 23, the U.S. Supreme Court determined that USDA’s beef promotion checkoff was “government speech” and thus did not violate the First Amendment rights of livestock farmers who pay for this program.

DFA’s Corporate Jet Contrail: Follow the Money (p. 7):
DFA has a “dummy” corporation that owns a corporate jet worth about $10 million. Flight plans filed with the federal government show a lot of fancy politicians have been airlifted around the country.

Hearing Proposals: Put MPC in Class I (p. 7):
A national milk order program will start in Pittsburgh on June 20, seeking to redefine fluid milk. Various proposals call for including all dairy ingredients (including imported caseins and Milk Protein Concentrate) in Class I (fluid) beverages that compete with milk. Dangerous precedents at hand. More next month!

Kraft Gains Patent for Process Cheese with Soy (p. 7):
Barf. On May 17, Kraft Foods received U.S. patent number 6,893,674 for “Processed cheese made with soy.”

Where’s FDA’s ‘Science’ for Raw Milk? (p. 8):
Raw milk—increasingly popular as a consumer product (and highly profitable to dairy farmers who sell it)—is under intense scrutiny from federal and state officials. But writer John Bunting discusses the lack of scientific evidence against raw milk consumption.

FDA/USDA: Dump Food Standards Rules (p. 8):
USDA and the federal Food and Drug Administration are proposing to dramatically change the way U.S. food standards are set and changed. The government agencies want to be able to make changes strictly based on government regulators’ fiat.

Government Speech and Checkoff Speech: Both Hot Air (p. 9):
Columnist Joel McNair gives both barrels (.10-gauge, double 0 buckshot) to the ridiculous Supreme Court Decision that recently ruled the beef checkoff program was “government speech.” They’re both full of hot air.

Dairy Cattle Replacement Price Map (p. 10):
Dairy livestock prices remain strong. Prices for top-end baby calves are heading into the $700-800/head range in several states around the country.

Where is Dairy Headed (p. 11):
Pete Hardin lists a wide range of government actions (and inactions) that are harming U.S. dairy farmers, consumers, product quality and consumers’ interests.

Dairy Commodity Picture Not Very Clear (p. 12):
Signals from dairy cash markets at the Chicago Mercantile Exchange are not pretty right now. The dairy commodity scene is hot clear right now, but The Milkweed projects very tight U.S. milk supplies in the second half of 2005.

May 2005 Issue No. 310

Feature Story: Moody’s Says DFA ‘Weak,” Lowers Credit Ratings (p. 1):
On May 9, 2005, Moody’s Investors Service issued revised, downgraded ratings for various types of borrowings by Dairy Farmers of America. Four separate times in the text of Moody’s announcement, the financial ratings firm referred to various aspects of DFA’s finances and management as “weak.” Read all about it here in our “article of the month.”

U.S. Justice Department Looking at CME Trading (p. 1):
The New Case Division of the United States Department of Justice has started looking at complaints of manipulation of cash Cheddar prices at the Chicago Mercantile Exchange.

CFTC Looking into CME Cheese Shenanigans (p. 2):
The federal government’s Commodities Futures Trading Commission has launched an investigation into alleged irregularities in dairy cash markets at the Chicago Mercantile Exchange.

March MPC Imports Biggest Ever (p. 2):
Despite tight global dairy protein supplies, March 2005 was the biggest-ever month for Milk Protein Concentrate imports entering the U.S. According to the U.S. International Trade Commission, 17.7 million lbs. of MPCs entered the U.S. in March. That’s 50% MORE than the previous biggest MPC import month (November 1999).

Standard & Poor’s: ‘DFA Taking More Each Month from the Farmer’s Milk Check” (p. 3):
On April 25, Standard and Poor’s announced it was maintaining its credit rating for Dairy Farmers of America in a blithe, one-paragraph statement. On what does Standard & Poor’s base its analysis of DFA’s financial strength? On the fact that DFA is taking more money each month from members’ milk checks! Whoop-dee-doo!

Angry Members Disrupt DFA Meeting in VA (p. 3):
On April 25, angry DFA members in Harrisonburg, VA caused a co-op meeting to be terminated early, because they asked so many tough questions that management could not satisfactorily answer. DFA members in the South are angry about years of repeated deducts from their milk checks due to unexplained co-op marketing losses.

Senate Bill Aims to Stop Change in Milk’s Definition (p. 3):
Senators Feingold, Schumer and Clinton have introduced the “Quality Cheese Act of 2005”—a bill designed to halt FDA’s proposed changes in definitions of “milk” for manufacture of standardized cheeses. FDA wants to allow imported dairy proteins like MPC, casein and caseinates to substitute for milk in making cheeses. At present, such imported ingredients require labeling of final product as “imitation cheese.”

Despite High Prices, Dairy Imports Still Pouring In (p. 4):
Data for the first quarter of 2005 shows massive imports of dairy commodities and ingredients into the U.S.

GM Alfalfa: Many Questions; No Cattle or Horse Safety Tests (p. 5):
Monsanto is seeking final government approval to release genetically-modified alfalfa for commercial sale later in 2005. ZERO safety tests for feeding GM alfalfa to cattle and horses have been conducted! Alfalfa exporters in the Pacific Northwest do not want the product, which could jeopardize their export sales to Japan.

Tillamook CEO Explains rBGH Decision (p. 6):
At the recent meeting of the U.S. Cheese Makers Assn., CEO of the Tillamook Co. Creamery Assn. explained his co-op’s decision to disallow use of rBGH/rBST (Monsanto’s genetically-engineered hormone that boosts cows’ milk production when injected). Massive support from consumers backed up Tillamook’s decision. Tillamook is the second-largest marketer of branded Cheddar in the U.S.

Farmers Tell CME Officials to Start Coming Clean (p. 7):
John Bunting writes about a group of dairy activists’ April 18 visit to the Chicago Mercantile Exchange. After protesting, they met with top-level CME officials, demanding fairer cash market trading activities. Out of this meeting, CME acknowledged that the CFTC was investigation Cheddar pricing.

Milk Haulers Air Complaints About Kraft, Dean Edicts (p. 8):
At the recent International Milk Haulers Assn. meeting in Nashville, TN, milk haulers let fly with a long list of complaints to representatives of Dairy.com about payments for hauling services and demands that all hauling from Dairy.com customers be run through that firm. The assn. is also working on a cost-analysis project to help members stay current.

Dairy Promotion Lawyer Goes Bonkers over DMI ‘Leaks’ (p. 8):
Paranoia strikes deep in the Heartland! At the Dairy Management, Inc. meeting in Chicago on April 19, attorney Wayne Watkinson went ballistic over directors’ materials “leaked” to The Milkweed. Watkinson forced directors to sign confidentiality statements, without which they could not get any directors’ information packets.

More rBGH Manure … After All These Years (p. 9):
Writer Joel McNair lets fly with a Slurrystore full of you-know-what about John Umhoefer’s recent column in weekly cheese newspapers criticizing Tillamook’s decision to remove rbGH cows’ milk from its cheese manufacture. Umhoefer’s “stuff” is more of the same-old, same-old backing of Monsanto that has caused so many problems for dairy, McNair asserts.

Forage Problems, Especially in the Upper Midwest (p. 9):
Wisconsin lost 25% of its alfalfa crop to “winterkill.” More losses occurred in early May, due to sub-freezing temperatures killing “crowns” of the growing plants. Nationwide, supplies of dairy-quality forage are going to be tight and expensive this year.

Dairy Cattle Replacement Prices Map (p. 10):
The Milkweed’s map of U.S. dairy livestock prices shows continued strength, but relatively flat price for calves, heifers, and cows, during the past month. The biggest gains came in short-bred heifers, which rose roughly $300-$400 in some markets in the past month.

Straight Talk (p. 11):
Pete Hardin praises the “troublemakers” who’ve worked to bring to the attention of federal and state regulators the inequities of Cheddar pricing at the Chicago Mercantile Exchange. Hardin urges strong support for S.B. 827—the “Quality Cheese Act of 2005.” Hardin also discusses DFA’s financial condition, concluding: “I smell a train wreck coming.”

Several Factors Behind Weak Commodity Prices (p. 12):
Cheddar and Grade AA butter prices are down at the CME. Imports are hurting butter. Hardin projects that Cheddar is under priced and the second half of 2005 will see tight milk supplies in the U.S.

April 2005 Issue No. 309

Feature Story: DFA 2004 Audit Lacquered & Perfumed, But ... (p. 1):
The management of Dairy Farmers of America (DFA) slapped a lot of polyurethane and perfume on the co-op’s 2004 financial audit. But beyond the chirping about how DFA “achieved record revenues” and “payments to members reached a record $5.8 billion for their milk,” DFA’s 2004 audit stinks. Read Pete Hardin’s April feature story here.

Antitrust Subpoenas Many DFA Directors (p. 1):
Just before the annual meeting of Dairy Farmers of America in late March, about two dozen DFA corporate directors received subpoenas from the U.S. Department of Justice. The subpoenas were issued as part of the very serious Antitrust investigation focusing on DFA

If Checkoff Dies, CWT May Start Assessing Producers for Promotion (p. 2):
Behind the scenes, National Milk Producers Federation (which operates the CWT program) is plotting to use CWT to step in and collect revenues to continue dairy promotion activities in the event federal courts declare USDA’s producer promotion check-off illegal. Unknown to many, CWT’s by-laws permit its board to set the assessment at any level deemed necessary.

Who Really Benefits from CWT? (p. 2):
Despite great hoopla about “success,” massive dairy imports entering the U.S. show how absurd it is for the nation’s dairy cooperatives to be killing dairy cows to get rid of a non-existing U.S. milk surplus.

DMS Duns Northeast Processors for Long-Ago Back Billing Mistakes (p. 3):
Dairy Marketing Services has been sending some fluid milk processors in the Northeast invoices for milk purchases from several years ago, to make up for prior DMS billing mistakes. Are these bozos hard up for money, incompetent, or what?

Energy Cost Pass-Throughs: Dairy’s Headache (p. 4):
From farm to supermarket dairy case, dairy is energy-intensive. Stories indicate that milk marketers, milk haulers, and processors are finding it hard to pass-through sudden increased energy costs.

Contact Congressional ‘Friends of New Zealand’ (p. 4):
Members of Congress who belong a group called “Friends of New Zealand” are pushing for a “Free Trade” deal between New Zealand and the U.S. That would cause great economic harm to U.S. dairy farmers, if NZ dairy products could enter the U.S. duty-free. We list the 50+ members of “Friends of New Zealand” and urge concerned dairy farmers to call these nit-wits.

Changes in Sales to Cuba to Crimp Co-op NFDM Plan? (p. 4):
Legislators are trying to change a federal law that requires “cash in advance” payment for food and farm supplies sold by U.S. companies to Cuba.

Photos Show Structural Differences in Cheese from UF Milk (p. 5):
High-tech microscope photograph shows significant structural differences between cheese manufactured from normal cows’ milk and cheese made from “Ultrafiltered” (UF) milk. These structural differences are one factor that causes impaired flavor, functionality (melting), and aging characteristics. FDA wants to approve using UF milk for manufacture of standardized cheeses like Cheddar and Mozzarella.

Southeast Producers Plotting ‘Prison Break’ from DFA/SMA (p. 5):
Key dairy producers have formed a new producer organization to represent interests of Southeast dairy farmers. Details to come!

CME’s Volatility Anything But Natural (p. 6):
Dramatic, up-and-down price movements at the Chicago Mercantile Exchange coincided with introduction of dairy futures/options. The thinly-traded dairy cash markets, and their volatility, suggest that price manipulation is a major factor influencing CME’s yo-yo Cheddar price movements.

2005 Still Looks Like Tight-Milk, High-Price Year (p. 7):
Difficult weather conditions and a tight supply of replacement heifers will combine to keep U.S. milk supplies tight in 2005, according to editor Pete Hardin. A one-percent gain in U.S. milk output is needed just to keep up with a growing population. Hardin doubts we’ll see even a one percent milk output gain.

Somebody is Making Big Money on Nonfat Dry Milk (p. 8):
The numbers don’t add up: Global prices for nonfat dry milk are around $1.04/lb. from Oceania. The CME cash market price for milk powder is around $.94 cents per pound. Yet USDA’s NASS weekly survey reports average U.S. commodity powder prices in the $.91/lb. range. With more than 70% of all U.S. milk powder being exported from December 2004 through February 2005, what’s wrong? Who’s unduly profiting?

Dairy’s Megatrends Will Bring Plenty of Surprises (p. 9):
Writer Joel McNair discusses future change in the U.S. dairy industry, that will occur due to rising costs of and shortages of traditional energy supplies.

Dairy Cattle Replacement Price Map (p. 10):
Big jumps in dairy livestock prices across the country are reported from about 15 auctions and auctioneers!

Dairy Farmers Are Future Energy Producers (p. 11):
Pete Hardin looks at the ideal future and sees dairy farmers using grazing, harvesting energy from manure gasses and the wind, and thriving in a world where food production is challenged.

Dairy Commodity Prices Stable … For Now (p. 12):
Cash markets at CME for Cheddar, Grade AA butter and nonfat dry milk have been relatively stable for the past month. Don’t worry, that will change!

March 2005 Issue No. 308

Feature Story: Huge Exports ‘Short’ U.S. Milk Powder Supply (p. 1):
In this month’s feature story, Pete Hardin explains how extremely tight global supplies of dairy proteins, coupled with a dramatically weaker U.S. dollar, have caused a tremendous outflow of nonfat dry milk from this nation. Pete explains why this is a problem. Read the story here.

Many Questions for DFA’s March 22-23 Annual Meeting (p. 2):
The nation’s largest dairy co-op holds its gala annual meeting in Kansas City in late March. As a contribution to the enlightenment of attendees, we publish questions that ought to be asked, since both Antitrust officials and the financial community are hounding DFA. Example: “How much money, in total, is the financial community recommending that DFA withhold from members’ milk checks to build liquidity? If deducted from one month’s milk income, how much would that total per cwt.?

Tillamook Bans rbGH—Despite Monsanto Pressure (p. 3):
Effective April 1, the Tillamook Co-op in Oregon has banned member use of “Posilac” (Monsanto’s synthetic, milk-stimulating cow drug). Monsanto tried to fight Tillamook internally, appealing to members, but lost a membership vote. Credit goes to the Oregon chapter of the Physicians for Social Responsibility, which has conducted a two-year consumer effort to get Tillamook to ban the controversial hormone.

US-NZ ‘Free Trade’ Deal in Works (p. 3):
A 56-member coalition of the U.S. House of Representatives has formed the “Friends of the New Zealand Congressional Caucus.” This group is championing a “Free Trade” agreement between the U.S. and NZ. Even though such a deal would dramatically harm U.S. dairy farmers, Rep. Tom Petri (R-WI)—whose district includes many dairy farmers in eastern Wisconsin—is a member of the coalition.

WI Cheese Plants Unprotected on Fluid Diversions to Dean Foods (p. 4):
Last month, we reported how Wisconsin cheese plants selling Class I milk to Dean Foods in Illinois in November were paid two weeks late by Dairy Marketing Services (a DFA joint venture). Research by The Milkweed reveals an even worse problem: Federal Order 30 rules do not cover payment dates and amounts of money due to private plants from a co-op, and Wisconsin’s milk security rules don’t cover such out-of-state transactions.

WTO Cotton Ruling Trouble for Dairy (p. 4):
A recent World Trade Organization ruling against USDA’s cotton subsidies could spell danger for dairy and other U.S. farm programs.

DMI Data Profile Interesting Dairy Sale Trends (p. 5):
Lots of dairy product sales data reveal interesting trends during 2004.

NZ’s Fonterra Controls U.S. Milk Powder Exports (p. 6):
DairyAmerica, the milk powder marketing agency, turned over all export rights for U.S. milk powder to Fonterra, New Zealand’s dairy export monolith.

Cuba Imported Mucho U.S. Milk Powder in 2004 (p. 6):
In 2004, the U.S. sold 12,989 metric tons of milk powder to Cuba. Another sale of 8200 metric tons is in the works—further “shorting” U.S. milk powder supplies.

Court Stops Cattle Shipments from Canada (p. 7):
On March 2, U.S. District Court Judge Richard F. Cebull in Montana issues a preliminary injunction against movement of live cattle into the U.S. from Canada. Cebull’s comments castigated USDA’s failure to adhere to rules designed to protect U.S. consumers from spread of “Mad Cow Disease.”

MD/VA-LOL Carlisle Plant Deal Appears Dead (p. 8):
Looks like the deal in the works between Land O’Lakes and Maryland & Virginia Co-op Milk Producers to sell LOL’s money-losing butter-powder plant at Carlisle, PA to MD/VA is dead. The two co-ops are now warring over employees and producers.

The Pattern of CME Shenanigans (p. 9):
Joel McNair analyzes strange patterns in recent months of the CME block Cheddar cash market. Seems in November, January and February, block Cheddar prices peak at the end of the month, and then plunge. Manipulation?

Dairy Cattle Replacement Prices (p. 10):
Strong demand for bred dairy heifers is propelling up this market dramatically.

Milk Powder Shortage Dangerous (p. 11):
Pete Hardin explains why it’s wrong to “short” the domestic market of U.S. powder through huge exports.

Help Poison CME’s Cheezy Rats (p. 11):
Get involved. Pete Hardin tells how readers can formally complain to the Commodities Futures Trading Commission (CFTC) about possible manipulation of CME cash cheese prices.

CME Cheddar Prices Yo-Yo; Butter & Powder Scarce (p. 12):
Cheese price swings are irrational. Butter inventories are 50% of last year’s low totals. Fresh, available milk powder supplies are almost non-existent.

February 2005 Issue No. 307

Feature Story: U.S. Milk Powder Supply Very Tight; Prices Rising (p. 1)
In this month’s feature story, Pete Hardin examines the “perfect storm” of events behind the current U.S. milk powder situation. Read all about it here. Correction: in column two of this story, the correct volume of U.S. milk powder exports for December 2004 is 79.6 million pounds, not 79.6 metric tons as we reported. The correct figure totals about 75% of U.S. milk powder output for December 2004.

Monsanto Back Pushing Posilac; Anybody Buying? (p. 2):
Monsanto has announced historic customers may buy up to 115% of base purchases of Posilac—the milk-stimulating drug for cows. Word is many former “users” are now avoiding the drug.

Farmer Wins Appeals Court Decision in Kraft Lawsuit (p. 2):
A Wisconsin dairy farmer—John Winkelman of Watertown—won an appeals court decision sustaining his award of more than $166,000 for various damages and legal costs. Winkelman had signed a fixed-price, $11.15/cwt. milk sales contract with Kraft Foods for 2001. The Kraft fieldman had told Winkelman the farmer could break the contract if prices rose. But when Winkelman tried to ship his milk elsewhere, Kraft kept him locked in with threat of lawsuit. Kraft lost this matter—and others—in arbitration.

Court to USDA: Clean Up Organic Rules (p. 2):
On January 26, a federal appeals court in Boston ruled that the National Organic Program (NOP) must enforce three of seven objections brought by a Maine organic farmer. NOP must now enforce rules requiring dairy animals to receive organic feed 12 months before “transitioning” to organic milk production. This requirement will slow growth of organic milk production.

SMA to Buy 1800 Milk Trailers??? (p. 2):
The Southern Marketing Agency is poised to buy 1800 milk trailers. But where is that money-losing agency going to get its money from, and who will be responsible for the debt?

Fonterra Scrambling to Meet Global Supply Needs (p. 3):
In late January, Fonterra (NZ’s dairy export monolith) announced that bad weather is reducing milk output in New Zealand by five percent below anticipated volumes. NZ has no discretionary dairy products for sale and must turn to other nations (including the U.S.) to meet global sales commitments.

DMS Two Weeks Late Paying WI Cheese Plants (p. 3):
Dairy Marketing Services (DMS) was two weeks late paying Wisconsin cheese plants for November Class 1 (fluid) milk diversions to fluid bottlers. Cheese plants did not receive payment by DMS until January 5-6—two weeks late. Why the late payments?

Former Farmland Co-op CEOs, Directors Sued (p. 4):
Farmland Industries (KC, MO) went bankrupt in spring 2002. At the time, Farmland was the nation’s biggest agricultural cooperative. On January 26, 2005, the liquidating trustee filed charges against two former Farmland CEOs and former directors for dereliction of their fiduciary responsibility to protect members’ assets. Parallels of this situation to the current predicament of Dairy Farmers of America are widespread.

Wakefield Dairy Sees Strong Farmstead Cheese Demand (p. 5):
Wakefield Dairy is a small, farmstead cheese plant in Lancaster County, Pennsylvania that finds growing demand for its cheeses.

New Mexico’s Southwest Cheese to Open in Fall 2005: BIG Impact (p. 6-7):
Next fall, Southwest Cheese will begin production, near Clovis, New Mexico. This plant will use 180 trailer loads of milk per day. Southwest Cheese will produce a volume of Cheddar equal to about 10% of present U.S. output. But milk plants in many regions of the country (California, Southeast, Upper Midwest) that have been receiving milk from the Southwest will find their supplies constricted. BIG impact coming for the U.S. dairy industry when this plant opens.

Next NMPF Effort: Cull Old Dairy Bulls (p. 8):
Read carefully. The National Manure Producers Federation (NMPF) will next try a program to kill old bulls, since there’s too much b.s. in the dairy industry. The industry is plagued with old bulls in leadership positions. (P.S. This article is a spoof … sort of!)

The End of Cheap ‘n Easy Energy (p. 9):
Joel McNair details how reliance on easy sources of petroleum is ending, and that will impact how dairy and the food industry.

National Dairy Animal Price Map (p. 10):
The Milkweed surveys dairy animal prices from markets and auctioneers around the country. ONLY HERE!

Investigate, Regulate CME (p. 11):
Pete Hardin explains why dairy needs both an investigation of and federal regulation for cash markets at the Chicago Mercantile Exchange. Dairy pricing needs a cash market with integrity.

Antitrust Probe of DFA to Produce Action Soon (p. 11):
Pete Hardin predicts that the second quarter of 2005 will be a painful one for Dairy Farmers of America, as both the Antitrust investigators and financial community close in on DFA’s antics. Hardin advises that members of Indiana’s Farm Bureau hope that group’s insurance subsidiary doesn’t lend money to DFA???

Commodity Price Moves Puzzling; NFDM Strong (p. 12):
Cheese prices have been up and down during the past month. Butter is seasonally strong. But prices for nonfat dry milk are rising fast, as shortages strike domestic users. It’s a mixed bag for the dairy commodity scene.

January 2005 Issue No. 306

Feature Story – Moody’s to DFA: Take Money from Members’ Milk Checks (p. 1)
Already under the glare of a nationwide Antitrust investigation, Dairy Farmers of America (DFA) now faces perhaps an even more terrible, swifter sword: a worried investment community. DFA’s members should prepare for deducts against their milk checks. Read January’s feature story here.

Chicago Tribune Focuses on CME Trading (p. 3):
On December 30, the Chicago Tribune unloaded on questionable trading practices at the Chicago Mercantile Exchange. The analysis targeted efforts by Dairy Farmers of America to drive up cheese prices to benefit farm milk prices.

SMA Losses HUGE in November (p. 3):
The Southern Marketing Agency lost nearly two dollars per cwt. on its milk (mis)marketing efforts in November 2004. SMA can’t get its costs out of the fluid market place. That loss figure is one of the most shocking single statistics ever reported in dairy.

Solve ‘Depooling’ Woes by Eliminating Advance Pricing (p. 3):
Pete Hardin theorizes that the best way to solve the cheese milk “depooling” mess in the federal milk order system is to have USDA determine Class I (fluid) prices concurrently with cheese milk prices.

DFA Gives Hanman Three-Year Contract (p. 3):
Has DFA’s President/CEO created such a mess they can’t afford to lose him?

Eagle Family Foods Wheeling and Dealing (p. 4):
Eagle Family Foods, which markets Borden’s condensed, canned dairy products (among other food products), has been busy: closing its Wellsboro, PA plant; buying a plant in El Paso, Texas as well as Milnot (a competitor); and selling 44% of its equity to DFA. What’s ahead for high-protein producers who have been selling farm milk to Milnot’s plant at Seneca, MO?

DFA’s Collins Retires; LOL’s Hahn Steps in (p. 4):
John Collins, who headed DFA’s operations in the Southeast, has retired after a long and miserable career. LOL’s Jim Hahn will try to clean up Collins’ mess.

Canola: How the U.S. Could Grow It’s Own Diesel Fuel (p. 5):
Writer Paris Reidhead details how canola—also known as rapeseed—can provide both an oil that substitutes for diesel fuel, as well as a high-protein “cake” that is well-suited as a livestock feed supplement. This crop could be a boon for livestock producers in northern states.

USDA: Import Canadian Cattle, Despite More ‘Mad Cows’ (p. 6-7):
In this long, long analysis, writer John Bunting devastates claims by the U.S. government that the Canadian livestock industry has eliminated potential problems that could spread “Mad Cow Disease” … and that, therefore, it’s safe to re-open the Canadian border for imports of live beef animals for slaughter. The bottom line: U.S. meat packers’ plants are running short of cattle for slaughter. This whole issue is designed to boost meat packers’ profits and risk safety for humans and livestock in the U.S.

2005 Not as Good as 2004? Why Not? (p. 9):
Writer Joel McNair offers many reasons why farm milk prices should be just as good in 2005 as they were in 2004. Joel’s on target with this one!

DFA’s Financial Mess Needs Fixing (p. 11):
Pete Hardin offers his prescriptions for “fixing” Dairy Farmers of America’s sorry financial condition, including the takeover of DFA as a corrupt organization by the U.S. Department of Justice! Among other items, Hardin calls for a deduct against DFA members’ milk checks, throwing out the corporate board, suing corporate directors and senior management to take assets for their incompetence, and establishing a low-interest, contingency fund to cover dairy farmers’ cash flows in the event that DFA crashes.

Cheddar and Butter Prices Strong; Supplies Tight (p. 12):
At the beginning of 2005, commodity prices for U.S. dairy products are strong—boding another year of relatively high dairy commodity values ahead.

December 2004 Issue No. 305

Feature Story: New Dairy Reality: Shortages, Higher Prices & Costs (p. 1)
Recent volatile dairy commodity pricing events leave the industry stunned. $1.95/lb. block Cheddar, then a 25-cent plunge? $2.05/lb. Grade AA butter? Are these volatile, up-and-down cash market prices at the Chicago Mercantile Exchange (CME) honest, or contrived? Read Pete Hardin’s thoughts here on what’s ahead in 2005.

Retail Organic Fluid Price-Cutting Starts in Northeast (p. 2):
Stop and Shop supermarkets in New England are selling store-brand (“Nature’s Promise”) organic fluid milk in half-gallons for as low as $2.59 each. That’s about $1.20 per half gallon below competing organic half-gallons in the store. Retail price-cutting is a sign that the organic fluid milk business—suddenly jammed up with competing processors—may be headed for some nasty price tactics. “Nature’s Promise” organic milk comes from CROPP—the Wisconsin-based co-op that markets under the “Organic Valley” label.

Dairy Co-ops, Super Pools Ship Many Documents to Antitrust Investigators (p. 2):
Tens of thousands of documents are being sent to federal/state Antitrust investigators as the investigation into Dairy Farmers of America broadens to other parties in dairy.

FDA Admits it Can’t Enforce MPC Food Ingredient Rules (p. 3):
In response to a Citizen’s Petition by the National Family Farm Coalition, FDA claims it does not have the resources, nor the priority, to enforce food safety laws apparently being violated by use of Milk Protein Concentrate (MPC) in many consumer foods.

MD&VA Co-op Manager Admits Interest in $-Losing Butter Plant (p. 3):
Jay Bryant, manager of Maryland & Virginia Milk Producers, has admitted at recent membership meetings that the co-op is studying buying the money-losing Land O’Lakes butter-powder plant at Carlisle, PA. LOL admitted to losing $34.8 million at Carlisle, from January-September 2004, with another $19 million in losses bumped back to previous years. Why would any sane entity look at buying Carlisle???

Supreme Court Beef Check-off Decision Likely to Decide Dairy Check-off’s Fate (p. 4):
On December 8, the U.S. Supreme Court heard oral arguments on the constitutionality of USDA’s $1-head beef promotion check-off program. If the beef program goes down on “free-speech” challenges, dairy producers’ check-off could follow.

Imports Getting More Expensive (p. 4):
Many factors are driving up costs for dairy imports entering the U.S. These factors include reduced world milk output, a weaker U.S. dollar, higher global shipping rates, and increased demand for dairy products by China.

Nestle’s Chocolate Bars: Made in Brazil (p. 5):
Next time you’re in front of the candy counter, look at Nestle’s “Crunch” and “Milk Chocolate” bars. Made in Brazil … from dairy ingredients likely supplied by Fonterra, New Zealand’s dairy export monolith.

CME: The (Suspicious) Exchange of Milk Money (p. 6-7):
Writer John Bunting lays out the data on how the Chicago Mercantile Exchange’s cash dairy commodity markets control U.S. farm milk prices … to the detriment of dairy farmers and consumers. CME’s volumes are too narrow to constitute an honest market.

CME: Worst of the Worst (p. 7):
Return to those thrilling times when CME cash dairy markets misbehaved the most—October 2001 and August-September 2000. Pete Hardin thoroughly thrashes CME manipulators.

Price Dictates NFDM vs. MPC Use in Cheese Vats (p. 8):
Annual imports of Milk Protein Concentrate fluctuate with price and are inversely related to the amount of U.S.-produced nonfat dry milk used in hard cheese production.

Fundamental Market Fantasy (p. 9):
Joel McNair explains how the Chicago Mercantile Exchange is a bogus excuse as a dairy cash commodity exchange, due to low volume and few participants. He blasts “experts” (university dairy economists and private dairy commodity advisors) who are repeatedly wrong in their forecasts and yet keep on forecasting!

Straight Talk (p. 11):
In his opinion page, Pete Hardin says: “DO NOT ‘Lock In’ Milk Prices.” He advises dairy farmers against signing fixed-price contracts, and tells them to stay away from dairy futures/options. Hardin also blasts FDA for allowing Kraft Foods to “adulterate” foods with unapproved ingredients (MPCs), and he calls for a federal investigation of the Chicago Mercantile Exchange.

Cheddar, Butter Prices Soar Dramatically, Then Fall (p. 12):
Recent weeks’ ups and downs of dairy commodities make a person wonder what’s going on!

November 2004 Issue No. 304

Feature Story: Antitrust Investigators Study Taking Apart DFA (p. 1):
Federal/state Antitrust investigators are studying how to take apart the nation’s largest dairy cooperative—DFA—now subject to a nationwide investigation. Read Pete Hardin’s story here.

U.S. a Deficit Milk Producing Nation (p. 1):
USDA’s Economic Research Service estimates that for the year beginning October 1, 2004, U.S. dairy product demand will total 177.9 billion lbs. of milk … and that U.S. dairy farmers will actually market 171.3 billion lbs. That’s a 3.7% difference between supply and farm milk marketed. What surplus?

Kraft Foods May Be Spun Off from Altria (p. 2)
The parent corporation of Kraft Foods North America may break apart the Kraft Foods and Phillip Morris International units, because tobacco litigation liabilities worry investors.

Gary Hanman Comments on Antitrust Investigations vs. DFA (p. 2):
DFA President/CEO Gary Hanman claims DFA didn’t do anything wrong that that’s what the Antitrust investigation will find. These comments came at the annual meeting of Dairylea Co-op in mid-October.

What is Fluid Milk? (p. 3):
USDA needs help defining “fluid milk.” Low-carbohydrate (lactose removed) dairy beverages don’t fit into the present definition of fluid milk. How to price them?

USDA 10% Off the Mark for Florida’s September Milk Output (p. 3):
USDA estimated Florida’s September 2004 milk output rose 7.7%. Southeast Milk, Inc., the co-op that controls virtually all the milk in the state, reports milk shipments were down 2.8% for September—due largely to all the hurricanes. Why can’t USDA get it right???

LOL Shopping Carlisle, PA Butter Plant (p. 4):
Land O’Lakes is trying to sell its money-losing butter plant at Carlisle, Pennsylvania. LOL lost $34.8 million in eastern dairy manufacturing plants for the first nine months of 2004. Maryland & Virginia Co-op is the intended sucker … oops, buyer.

DMS/DFA May ‘Short’ Producers with Multiple Bulk Tanks (p. 4):
Dairy farmers who ship milk to Dairy Marketing Services or Dairy Farmers of America and who have multiple bulk tanks (or fill multiple trailers daily) should check their components and quality tests to be sure they were paid fairly.

Soy Milk from CHINA Now Sold in U.S. (p. 5):
Soy milk from China (yuk) is now being sold in the U.S. This article should not be read by person with sensitive stomachs.

Changing Realities Threaten Reliance on Western Milk (p. 6):
Rising fuel prices and a mammoth drought in the West make it unreasonable for the nation to rely on western milk, cream and dairy products to feed the nation. Current costs for moving cheese from coast to coast—about 15-17 cents per pound.

Parmalat’s Problems Threaten NYC Milk Competition (p. 7):
Parmalat USA---operating the NY metro area as Farmland Dairies and Sunnydale Farms—is being severely hammered by Dean Foods. Dean Foods (and others) are swiping huge chunks of Parmalat’s milk distribution accounts. Can Parmalat survive these volume losses?

Feds to Mandate Animal Premises ID by November 2005 (p. 8):
USDA plans to have in place by November 2005 a national registry of all sites housing livestock and poultry. Who’s going to pay for it???

Election Upshot: Most Farm Programs in Trouble (p. 9):
Joel McNair explains that the “neo-cons” are in control and want to eliminate as many federal programs as possible. Farm programs have been long a source of ire to some. McNair concludes: “But time is running out, and the political climate does not favor very many of Uncle Sam’s dairy programs.”

Dairy Cattle Replacement Prices (National auction map) (p. 10):
Heifer prices are stronger. Read about dairy livestock price quotes from more than a dozen sites across the nation.

After DFA, Antitrust Must Investigate Dean Foods, Too (p. 11):
Pete Hardin explains that dairy’s competitive problems are only half-addresses if the current federal/state Antitrust investigation does not look closely at the misbehaviors and non-competitive market shares of Dean Foods (the nation’s largest fluid processor).

Cheese, Butter Markets Rebound from Artificial Lows (p. 12):
Commodity Cheddar and butter prices have rebounded in the past month. Butter is skyrocketing, at present. The dairy supply/demand picture is tightening – contrary to the wisdom of many forecasters.

October 2004 Issue No. 303

USDA Planning Post-Election ‘Milk-Tax’? (p. 1):
Charges and counter-charges are flying thick in Wisconsin, over the significance of an April 2004 presentation by USDA’s top dairy economist to a processor convention. That talk projected government policies to sustain high farm milk prices in key election states through the November election—and then possibly hitting producers with a “milk-tax” and support price cut to reduce federal program costs.

Bush Promises MILC Extension on Same Day House Republicans Kill Program (p. 1):
Ironically, the same day that the president promised to continue the MILC (disaster net) program for dairy farmers, Republicans in the House failed to include a bill continuing the program in conference committee.

Resumed Canadian Cattle Shipments a Long Way Off (p. 1):
The Canadian cow discovered with “Mad Cow Disease” in May 2003 was rendered into feed and may have been mistakenly consumed by other cows. USDA has known that situation since last October. Forget any Canadian dairy heifers entering the U.S. soon.

Over a Dozen States Investigating DFA (p. 2):
More than a dozen states are now participating in the joint federal/state task force conducting an Antitrust effort against Dairy Farmers of America.

LOL Aims to Lower California Prices (p. 2):
Land O’Lakes wants increased whey cost credits taken out of California’s 4b (cheese) milk price. Net impact: reducing producers’ cheese milk income by 53 cents/cwt., or all milk income by 25 cents.

Dangers of Australian ‘Free Trade’ Agreement Showing (p. 3):
Obscure details in the Australian-U.S. Free Trade Agreement allow Australian legislators, and even aggrieved corporations, to seek retro-active changes and compensation for damages. If Australia can change the deal, why couldn’t U.S. legislators amend it???

Big Co-ops Shafting Independent Milk Haulers (p. 3):
DFA and Land O’Lakes are increasingly putting independent milk haulers into the ditch. Are the co-ops out to eliminate competition in milk hauling, so farmers who want to quit those co-ops won’t have anyone to haul their milk?

Fixed-Price Contract Losses: Count the Ways (p. 4):
We list all the ways that farmers who signed fixed-price milk sales deals this spring lost money.

CME: Fox Watches the Chicken Coop (p. 4):
No federal agency has authority over the dairy commodity cash-market trading at the Chicago Mercantile Exchange. No wonder all those shenanigans go on!

Monsanto Will Restore 70% of Posilac Sales (p. 4):
But will the customers return, after Monsanto interrupted deliveries of and raised the price for its milk-inducing cow hypodermic drug.

Feature Story: DFA’s Borden Cheese Markets ‘Sandwich Mate’ Glop (p. 5)
Dairy Farmers of America markets “Sandwich-Mate,” an el cheapo food product made from water, soybean oil, starch and casein. “Sandwich-Mate” competes directly with processed cheese slices. Pete Hardin reveals how the largest U.S. farmer-owned dairy cooperative’s crass marketing of this product is bad news for the consumers who eat this ‘glop’ and the dairy farmers whose prices are undercut in the marketplace. Incredible! Read all about it here.

U.S. NFDM Prices Below World Level (p. 6):
John Bunting brilliantly lays out the inter-relationships between global and domestic milk powder interests to try to explain how U.S. milk powder is being priced at about 15 cents per pound BELOW world market value. Worst of all: co-ops support dropping federal milk marketing order prices for milk processing into condensed milk in order to meet lowball imports of that product by Nestle’s Carnation Brand. Carnation’s Mexican imports appear to be made from reconstituted nonfat dry milk—a potential violation of federal standards of identity.

Hurricanes Create Huge Problem for Florida’s Dairy Industry (p. 7):
Florida’s dairy industry struggles to clean up and repair from the series of four Hurricanes that hit the state in late summer. Milk output is off about 10%. Distribution of packaged milk is impaired due to school closings and continuing disruptions to consumers and businesses.

Hood’s Entrance Heats Up Organic Competition (p. 8):
With H. P. Hood jumping into the organic fluid milk business, suddenly there’s less available fluid milk in the Northeast than marketers demand. DFA/DMS is caught in the middle, trying to serve two competing masters—Hood and Dean Foods (which owns Horizon Organics).

Organic Boom Times … For Now (p. 9):
Joel McNair discussed evolving competition among the “big boys” in organic dairy product marketing, and concludes that organic dairy producers must better organize and innovate to stay ahead of the game they’ve created.

NEEDED: Cop on the CME Beat … Quick! (p. 11):
No federal agency has oversight on cash dairy commodity trading at the Chicago Mercantile Exchange. Pete Hardin reviews unsavory trading practices at CME and concludes that new federal oversight is desperately needed to achieve integrity in milk pricing.

Cheese, Butter Prices Nosedive at CME (p. 12):
In early October, Cheddar and Grade AA butter prices nose-dived at the Chicago Mercantile Exchange. The validity of these price drops is particularly questionable, particularly for Cheddar.

September 2004 Issue No. 302

Massive March-June Imports Slammed Butter Prices (p. 1):
Huge quantities of imported butter entered the U.S. in 2004’s second quarter. In May, butter imports totaled 9.8% of all U.S. butter production. Despite these imports, at mid-year, USDA reported U.S. butter inventories 114 million lbs. below last year’s June 30 figure.

Lower NFDM Output Offsets Higher Cheese Inventories (p. 1):
So-called “higher” American cheese inventories reported by USDA as of July 31 are perfectly offset, on a protein-content basis, by reduced U.S. nonfat dry milk production during the first half of 2003. In other words, any “surplus” cheese is offset by a deficit of nonfat dry milk output. Yet several economists used higher cheese inventories as a single-statistic excuse for okaying a drop in cash Cheddar prices at the Chicago Mercantile Exchange.

USDA ‘Giveaways” Depress NFDM, Whey prices (p. 3):
Tens of millions of pounds of aged nonfat dry milk, released from USDA storage as donations, are negatively impacting current sales of nonfat dry milk and whey powders.

Cheese Import Detentions Soar (p. 4):
Unfit cheese products from many Third World countries are being turned back by U.S. Customs Service inspectors due to contamination.

New Kraft Patent: Soy Proteins for “Imitation” Dairy Products (p. 4):
Kraft Foods has a new patent that uses “healthful” soy proteins in place of higher priced sodium caseinate in the manufacture of certain “imitation” dairy products. How low can Kraft go?

Universities Turn Blind Eye to Electrical Pollution (p. 5):
Writer Kurt Gutknecht reveals what many university “experts” tell farmers about electrical pollution—a spin that generally minimizes and understates the problem.

Feature Story: For Whose Benefit Does DFA Operate? (p.6)
The nationwide, federal/state Antitrust investigation against Dairy Farmers of America is good reason to bare the nation’s largest dairy cooperative for what it really is: a Stalinist-type cult that resorts to theft, intimidation, and blatant violations of the law to try to cover up its cracked foundation of massive debts and suspicious assets. Read Editor Pete Hardin’s in-depth story here.

Chicago Tribune Takes Long, Hard Look at DFA (p. 7):
On September 7, the Chicago Tribune took a long, long investigative look at the alleged, anti-competitive actions by Dairy Farmers of America against non-member farmers.

Dean Foods Projects Lower 2004 Earnings, Stock Plunges 18% (p.7):
Boo-hoo. Energy costs are higher, and Dean Foods didn’t benefit as much as anticipated from the down side of raw dairy prices in July-August. And Gregg Engles, Dean Foods’ chairman and CEO, complained to investment analysts that Wal-Mart won’t let Dean Foods pass along higher product costs. Is Dean Foods bubble popping?

Butter Flooding into U.S. From Third World Nations (p. 8):
Tight U.S. butter supplies have drawn butter imports from some of the sorriest slop-holes in the Third World. Haiti? India? Kenya? Nicaragua? Yuk!

Mother Nature Dictating Tight Milk Supplies Down the Road (p. 11):
Pete Hardin talks a tough look at adverse weather on 2004’s forage and grain crops in many parts of the country, and concludes that U.S. milk supplies are going to be very, very tight. Don’t buy into this crapola about market conditions justifying low milk prices in the future.

Commodity Supply-Demand Situation Still Healthy (p. 12):
Butter inventories are very tight. Little “fresh” nonfat dry milk is available on a spot basis. U.S. cheese production in July was down 1.5%. Bad weather and crops means tight milk supplies ahead.

August 2004 Issue No. 301

Feature Story #1: Nationwide Antitrust Probe Launched Against DFA (p. 1):
Federal and state Antitrust investigators have launched a national investigation against the nation’s largest dairy farmers’ cooperative. Read all about it here.

Feature Story #2: DOJ Antitrust Lawyer Explains DFA Investigation (p. 1):
At a recent meeting in Louisiana, a senior federal Antitrust lawyer outlined the government’s concerns about DFA. Read all about it here.

U.S., Kentucky Sue to Disallow DFA’s Southern Belle Ownership (p. 3):
Federal and state antitrust officials are suing DFA to take away the co-op’s ownership of Southern Belle Dairy in Somerset, KY. DFA’s ownership of that fluid milk plant, and a nearby firm, restrict competition for school milk in 101 Kentucky school districts.

Federal Order Fluid Sales Declined 2.47% in April-June (p. 3):
For 2004’s second quarter, data from federal milk orders shows a 2.47% decline in fluid milk sales.

NMPF “Sleeping with the Enemy” on Free-Trade (p. 4):
National Milk Producers Federation—the dairy co-op lobby—is actively working to remove trade restrictions protecting U.S. dairy farmers.

DMI’s ‘05 Budget Creates $14.5 Million ‘Slush Fund’ (p. 4):
Dairy Management, Inc.—the organization that coordinates national dairy farmer promotion dollars—is proposing a $14.5 slush fund (titled “Emerging Opportunities”) for its 2005 budget. That’s equal to nearly 10% of its budget.

Tight Global Dairy Supplies Restricting U.S. Imports (p. 5):
The combination of tighter global dairy production, emerging Asian economies, and a weaker U.S. dollar are causing reduced dairy imports to the U.S.

More ‘Real Seal’ Products Listing MPC on Labels (p. 6):
How can food marketers put the ‘Real Seal’ on packages of dairy products listing MPC as an ingredient? DFA is involved in this one, too!

Alaska Fends Off Promotion Checkoff (p. 6):
Alaskan dairy interests, teaming up with the state’s federal politicians, have beaten back efforts to extend the dairy farmer promotion checkoff to all Alaska, Hawaii and Puerto Rico. That effort blocks USDA from imposing a promotion checkoff on dairy imports.

Retail & Restaurant Cheese Sales Strong Thru April-May (p. 7):
Sophisticated data from supermarkets and pizza chains shows that cheese demands increased during April-May 2004, despite significant price increases.

Doha’s Dough: Not for You (p. 9):
Joel McNair explains why, despite mistaken hype, global “Free Trade” deals are bad for dairy and livestock producers.

National Dairy Livestock Price Map (p. 10):
Latest update on dairy animal values from more than a dozen auctions and auctioneers from around the country.

Take Apart DFA (p. 11):
Pete Hardin looks ahead to the Antitrust investigation involving Dairy Farmers of America and proposes some solutions, including: Break up DFA into its regions, with no common financial statement; have federal Antitrust officials take over DFA as a “corrupt organization,” throw the book at DFA’s senior management and corporate directors, and prepare a federal program to loan dairy farmer money at 1% interest in case DFA’s creditors get nervous and pull the plug.

Dairy Commodity Analysis (p. 12):
Cheese up, butter down.

July 2004 Issue No. 300
Market Manipulations Wreck Cheese Prices (p. 1):
Just during the first half of 2004, block Cheddar prices zoomed up 90 cents per pound at the Chicago Mercantile Exchange, and then in recent weeks, nose-dived down almost as far. This yo-yo pricing is seriously harming the dairy industry.

Cheddar Market Collapses as DFA Quits Buying (p. 1):
In the commodity analysis, it’s explained how DFA (once again) backed away from cheese purchases and the market collapsed. Butter and nonfat dry milk production in the U.S. are way behind last year, and inventories are tight.

Pooling Issues Focus of August 16 Upper Midwest Order Hearing (p. 2):
USDA will hold a hearing for the Upper Midwest milk order on August 16 to air proposals to tighten up pooling rules for milk.

DFA’s Attempts to Boost CME Cheese Prices have History of Flopping (p. 3):
Once before, DFA tried to sustain the cheese market and failed. Read what happened in summer 2000 when DFA bought hundreds of carloads of cheese at CME—and failed to pay for it punctually.

H.R. 4223: Public Subsidy for DFA/Fonterra MPC Operation (p. 3):
Writer John Bunting analyzes financial details of the DairiConcepts joint venture between DFA and Fonterra (New Zealand). Bunting concludes that taxpayer subsidies (as proposed in pending legislation before the U.S. House of Representatives) is a waste.

Feature Story: DFA and DMS Dump June Cheese Milk on Mid-East Order (p. 4):
Pity dairy farmers shipping milk to the Mid-East federal milk order (Order 33). Pete Hardin reports on how Mid-East producers, after losing big bucks due to “depooled” cheese milk in both April and May 2004, lost again as “homeless” milk from the Northeast milk order was pooled on Order 33 in June. Read all about it here.

Utilities dumping Electricity into the Ground (p. 5):
Writer Kurt Gutknecht writes about how the design of many home and farm electric services use the Earth to run electricity back to the grid. That creates dangerous “electrical pollution.”

Bongards Underpaid Fixed-Price Contracts in May (p. 6):
Bongards’ Creameries, a co-op based in Minnesota, disregarded fixed-price contracts of members in May and paid all contracts a bit less than a dollar per cwt. below fixed price deals the farmers had signed. What’s really dangerous: language in Bongards’ “Master Agreement” is very one-sided, against the producer.

Weather Hurting U.S. Food Production (p. 7):
In the west, it’s very dry. But the Midwest is getting hammered with wet weather that’s disrupting grain and forage crops. Too wet or too dry … adverse weather across the U.S. is a factor to be taken seriously this year.

Canned “Milk” Imports from South of the Border Flooding U.S. (p. 8):
Look closely at that Nestle canned, condensed milk product in your supermarket. Odds are it’s imported from one of several countries in South or Central America.

Unnecessary Sticker Shock (p. 9):
Joel McNair writes about how the excessive run-up in dairy commodities led to some consumer resistance in dairy product purchases … and is hurting many in dairy.

Dairy Cattle Replacement Map (p. 10):
Follow national market trends for dairy livestock at more than a dozen locations across the nation.

Crooked Cheese & Milk Pricing (p. 11):
Pete Hardin blasts our current cheese and farm milk pricing systems as crooked. Hardin lays out key areas for improving dairy farmers’ milk checks.

June 2004 Issue No. 299

Dairy Commodity Prices Poised for Gains (p. 1):
In the second half of 2004, Cheddar, butter and nonfat milk powder are all ready for more price gains. Right now, dairy is in “the calm before the storm” of commodity price gains. Cheddar, at $2.20/lb. at the Chicago Mercantile Exchange, was priced several dimes over a fair market value earlier this year.

Federal Class III Reaches $20.58/Cwt. (p. 1):
An all-time record for cheese milk in the federal milk order system!

‘Negative PPDs’ + Depooling = DFA Larceny (p. 1):
Strange, how in the Upper Midwest, milk checks for April 2004 from Dairy Farmers of America (DFA) and its partner in crime, Dairy Marketing Services (DMS), basically balanced out the Order 30 “negative PPD” for April 2004 milk payments. But in the Northeast, DFA and DMS kept virtually all the money from massive depooling of cheese milk. DFA paid the money to farmers only where competition required. How many tens of millions of dollars of cheese milk value “disappeared”?

Dairy Check-off Illegality Sustained by Appeals Court (p. 2):
Bravo! The Third District Court of Appeals in Pennsylvania sustained a three-judge appellate panel’s ruling that USDA’s mandatory dairy promotion check-off from producers violates the First Amendment.

Federal Court Rules Against California’s Fluid Milk Pricing System (p. 2):
A federal court in California determined that California’s fluid milk pooling system violates the commerce clause of the U.S. Constitution. At stake: nearly $1 billion worth of money invested in quota by California dairy producers.

Will Southeast Super Pool Bleed Producers Again in 2004? (p. 2):
During the final several months of 2003, Southeast dairy farmers belonging to co-ops in the regional “super pool” (SMA) had deducts of over $1.00/cwt. due to SMA’s inability to cover its costs for important milk to meet needs of regional fluid processors. This year, SMA’s problems will be worse as milk supplies are tighter, costlier, and transportation costs are up.

Non-Fat Dry Milk: Supplies tight, Prices Poised to Zoom Up? (p. 3):
U.S. production of nonfat dry milk is down 17.8% for the first four months of 2004. USDA has halted sell-backs of “surplus” milk powder. Global supplies are tight and prices rising fast. Watch for price increases and tight supplies of nonfat dry milk in the second half of 2004.

USITC’s MPC Report Fails Close Inspection (p. 4):
Writer John Bunting lays out the erroneous facts and conclusions in the recent report on controversial Milk Protein Concentrate by the U.S. International Trade Commission (USITC). For starters, the ITC’s whole study is based upon the presumption that the average casein content of U.S. farm milk is 3.3% (the same error Penn State economist Ken Bailey made). Wrong!!! Casein content is 2.6%. Using the wrong base makes many assumptions in the ITC report on MPC wrong.

Australia ‘Free Trade’ Deal: Dangerous Precedent (p. 5):
The U.S. Congress will vote on the Australia-U.S. Free Trade Agreement later this year. The deal—a payoff for support in the Iraq war—has nothing good for dairy or livestock producers.

Utilities, Universities, Court: ‘The System” Refuses to Help Dairy Farmers Suffering from Stray Electricity (p. 6-7):
Writer Kurt Gutknecht starts a long series on electrical pollution, with this two-page spread. Utilities often refuse to address their problems of stray current, and fight dairy farmers’ claims in court.

Are Rats Jumping Off Posilac Ship? (p. 8):
Latest casualties: Brian Lowrey (a top policy spokesman) leaves dairy unit at Monsanto and the Hudson Institute closes down its “Milk is Milk” web site (ostensibly paid for Monsanto).

Organic ‘Cheez Whiz’ Hard to Stomach (p. 9):
Joel McNair explores the dangers ahead for producers and marketers of organic dairy products, as the big corporations hone in on the fast-growing and profitable organic dairy sector.

Huge Increase in China’s Dairy Imports Seen (p. 10):
New Zealand projects that China’s annual demand for dairy imports will grow by 50% to 100% for the next five years. This projection is causing NZ dairy marketers to revise their manufacturing and export mix in the near future, to take advantage of China’s growing demand.

Feature Story: Declare a ‘Milk Shortage’ (p. 11):
In June’s feature story, Pete Hardin explains why dairy’s “big boys” won’t admit that present and future U.S. milk shortages loom. Read all about it here.

LANCO & Allied Divorce; Agri-Mark Managing Allied (p. 12):
LANCO, an 800-member dairy co-op of Amish producers in southeastern Pennsylvania, has severed its relationship with Allied Federated Co-ops. Agri-Mark is now managing Allied.

May 2004 Issue No. 298

Serious Drought Blisters Western United States (p. 1):
Nearly three-quarters of the continental U.S. west of the Mississippi River is being parched by serious drought. Most of the key western dairy farming regions are in serious drought conditions. From mountain snow pack to stream flows to reservoirs, western water supplies are critical.

Cheddar, Butter Prices Decline (p. 1):
Processors are worried about putting away inventories and consumers are offering some resistance to these suddenly higher dairy product prices. The cash dairy commodity market is poised for a scale back—to the $1.65-$1.75 range for block Cheddar? Milk supplies will remain tight.

Oil, Currency Situations Dangerous for Dairy (p. 4):
Rising oil costs and a weak U.S. dollar spell problems. Dairy uses a lot of energy—from farm to supermarket—and operates on a lot of borrowed capital.

NFFC Petitions FDA about MPC’s Illegality (p. 4):
In May, the National Family Farm Coalition issued a citizen’s petition to the federal Food and Drug Administration, demanding that FDA immediately advise all firms using milk protein concentrate (MPC) that it was not a legal food ingredient. MPC has not been subjected to FDA’s requisite GRAS tests.

DFA’s ‘Buddies’ Cook Up MPC Subsidy Bill (p. 5):
H.R. 4223 has recently been introduced into the legislative hopper in Washington, D.C. This bill contains the “U.S. Dairy Proteins Program.” The program is basically a subsidy from Uncle Sam to bankroll the nascent U.S. MPC market. At 70% protein, the projected U.S. subsidy would equal about $3.50/cwt. on farm milk. Dairy Farmers of America owns the only MPC plant in the U.S. Eleven of the 12 House sponsors have received political contributions from DFA during the 2004 election cycle.

Swiss Valley Farms Report Light on Details (p. 5):
Swiss Valley Farms (Davenport, IA) issued a “2003 Annual Report” to members of the co-op. But many unsavory financial details went unaddressed. The combined financial losses and draw-down of members’ equity totaled about $10,000,000 for fiscal 2003-’03.

The Demise of Rinky Dink Dairy: A Cautionary Tale of how Monopolies React to Criticism (p. 6-7):
Former Louisiana dairy woman Carole Knight details how when Mid-America Dairymen coerced her local, 700-member, co-op into a forced merger, local control and details about milk prices were covered up. Knight, along with a handful of neighbors, was elected to the regional board of directors. But her incessant questions caused the co-op’s headquarters to throw her off the board and kick her family’s farm out of the co-op—forcing the sale of their dairy herd on three days’ notice. This stunning series of events was presented by Knight on April 1 at the conference on the dangers of dairy concentration in Syracuse, New York. Knight’s speech is reported in full.

FDA Letter Slams Austrian rbGH Manufacturer (p. 8):
FDA, in a March 29, 2004 letter to Sandoz GmBH, severely criticized the Austrian manufacturer of Monsanto’s Posilac drug for repeated quality control failures. Sandoz has a long way to go before any new product will be sold here in the U.S.

DairyAmerica to Export U.S. Milk Powder to Cuba (p. 8):
DairyAmerica, a marketing agency for U.S. dairy co-ops that produce nonfat dry milk, has announced an 8.8 million pound sale of U.S. milk powder to Cuba.

‘When,’ not ‘If’ (p. 9):
Joel McNair explains how energy costs and water shortages will eventually push back major segments of U.S. production agriculture to the Upper Midwest … and other moist areas nearer to the vast body of U.S. consumers.

NEW: The Milkweed’s Dairy Cattle Replacement Price Map (p. 10):
Sorry, subscribers only! The Milkweed has created a brand new, never-before attempted by a U.S. dairy publication, map of recent dairy animal auction price ranges from around the U.S. What are dairy animals—calves, heifers and cows—worth in ?????

Feature Story: Straight Talk - The Milkweed Completes 25 Years (p. 11)
This month, Editor Pete Hardin looks back on some of the biggest dairy industry issues covered by The Milkweed in its first 25 years as America's best dairy publication. Read Pete's ruminations here.

April 2004      Issue No. 297

Feature #1 Higher Milk Prices to Stay a Long, Long Time (p. 1):
    Many factors have come together to depress U.S. milk production for a long time. Pete Hardin projects that extremely tight U.S. milk supplies could last at least late 2006. Read more here.

Feature #2 Posilac Quality Control Problems Persist, Inventories Running Out (p. 1):
    Monsanto hasn’t yet straightened out “quality control” problems in production of its recombinant bovine growth hormone (sold as “Posilac”). Monsanto has terminated a large number of persons on the Posilac sales force, and word is that inventories of the drug will be exhausted if normal production isn’t restored by the end of April 2004. Good riddance. Get the full scoop here.

Beware of Fixed Price Contracts & Futures (p. 2):
A lot of dairy farmers have been taken advantage of financially by unwisely signing fixed-price, term contracts for milk. And persons holding Class III (cheese) milk futures through the CME will see painfully large differences between their position and settlement of final federal order cheese milk prices for Spring 2004.

Oil and Milk: Tale of Two Key Liquids (p. 3):
Consumers are squawking about gasoline and milk prices. The Milkweed explores parallels in these pricey liquids. Food is energy.

CME Cheddar Tops $2.00; Butter & Powder Strong (p. 4):
Commodity Cheddar is at an all-time peak price for both blocks and barrels. Butter had downs and ups in the past month, but has regained prices near its all-time peak. Milk powder supplies and prices are also tightening.

DFA’s 2003 Audit: Enron-like Accounting (p. 5):
Dairy Farmers of America claims to market 33% of all U.S. farm milk. That’s scary, after taking a meticulous look at DFA’s finances depicted in the December 31, 2003 audit.

USDA Can’t (or Won’t) Reveal DEIP Anhydrous Sources (p. 6):
In 2003, USDA authorized export subsidies for 10,000 metric tons of anhydrous milk fat. DEIP rules specify that U.S.-only products may gain DEIP subsidies. But during 2000-2002, the U.S. only “DEIPed” 35 metric tons of milk fat (all forms). USDA’s response to a Freedom of Information Act request for the plants and dates of manufacture of the DEIP-certified Anhydrous Milk Fat approved in 2003 yielded such information on 1.4% of the total. Something’s fishy!

Dairy Consolidation Concerns New York AG (p. 7):
Eliot Spitzer, New York State’s Attorney General, promised the full cooperation of his office in investigating farmer and consumer complaints about the lack of competition in the New York dairy industry. Of particular focus is the possible sale of Parmalat’s New York City dairy businesses.

New Players Scramble Organic Milk Picture (p. 8):
John Bunting reports a LOT of interesting goings in the organic fluid milk business, such as H. P. Hood gaining a deal to distribute organic fluid milk under the “Stonyfield” brand. Conflicting interests? One of the big future movers in organic fluid milk is Aurora Organic Dairy of Colorado—soon to come on line with a 5000-cow, UHT, fluid processing business.

How Soon, and How Hard? (p. 9):
Joel McNair points to history as a possible guideline for a fall milk price decline.

CME Sets U.S. & World Prices (p. 10):
John Bunting details a .99 correlation between cash markets for block Cheddar at the Chicago Mercantile Exchange and prices paid to dairy farmers in England for the past five years! Milk price “fixing” has gone global!

Strategies for Attacking Dairy’s Dangerous Concentration (p. 11):
Pete Hardin lays out strategies for attacking the anti-competitive behaviors of Dairy Farmers of America and Dean Foods.

March 2004 Issue No. 296

Feature Story -- Ahead: Huge Milk Shortages, Huge Price Gains (p. 1):
The Milkweed projects that U.S. milk supplies could run five to six percent below last year's totals. This will lead to big price increases both for milk and dairy livestock. Read all about it here.

Australian Trade Deal Could Have Been Worse (p. 2):
Details of the dairy impact of the recently negotiated "Free Trade" deal with Australia are reviewed.

Appeals Panel Rules Mandatory Dairy Promotion Checkoff Unconstitutional (p. 3):
By a 3-0 vote, a federal appeals court reversed a lower court decision and agreed with dairy farmer plaintiffs Brenda and Joseph Cochran of Westfield, PA that the mandatory dairy promotion checkoff violates their First Amendment rights. Bravo!

Parmalat's U.S. Operations File Bankruptcy (p. 3):
As expected, Parmalat's U.S. subsidiaries filed for bankruptcy protection in New York City. Dairy producers supplying Parmalat were paid on time. The bankruptcy seeks protection while the businesses are sold.

Beware: CWT Bylaws DANGEROUS (p. 4):
NMPF's CWT program's bylaws are dangerously restrictive. CWT directors can change the bylaws at will, take any powers they wish, deny permission to withdraw, and set dues at any level they wish. BEWARE!

Posilac Cutbacks: Bits and Pieces (p. 4):
Poor Monsanto. With all its problems, here we are again detailing problems and events associated with the cutback of half of Posilac's supply.

Dean Foods Pursues Northeast Milk Marketing Control (p. 5):
Dean Foods is angling to buy three more Northeast fluid milk businesses—Parmalat, Giant Foods (Washington, D.C.) and Rich Foods (Richmond, VA). If successful, these acquisitions would give Dean Foods a lock on the East Coast fluid milk business.

Feature Story - Borden '2% Singles': Starch and Too Much Water (p.6):
Laboratory tests recently conducted on a sample of Borden's "2% Milk Reduced Fat Singles (Sharp)" uncovered almost 20% than allowed by the Food and Drug Administration. Read Pete Hardin's story here.

Don't Sign Fixed-Term, Fixed-Price Contracts! (p.7):
Dairy farmers are strongly advised NOT to sign fixed-price, fixed-term milk sales deals. Milk prices (and costs) are moving too fast to know if today's supposed good deal will be a good one tomorrow.

Handy-Dandy Federal Order Class III/IV "Guesstimators" (p. 8):
If the commodity reference price for butter is $2.20/lb. and the commodity reference price for cheese is $1.60/lb., what's the approximate Class III price going to be for the federal milk order program in a given month? Here's how dairy producers can calculate prices. (Answer: $2.20/lb. butter and $1.60/lb. cheese yield a $14.77 Class III price.)

Checkoff's (Probable) Death Merits Crocodile Tears (p. 9):
Ever wise about the value of farm income, Joel McNair systemically tears apart the failures of the federal dairy promotion check-off. Good riddance, he concludes.

USDA Milk Protein Report: More Fact Twisting (p. 10):
John Bunting analyzes a recent USDA report on milk proteins. John finds a lot of avoidance of key facts and issues—what else we expect from the federal government, whose policies are dictated by the big food processors' interests.

New Era of Efficiency and Profit (p. 11):
Pete Hardin analyzes dairy's present transition from a mistaken era, when "most milk per cow and most cows" were worshipped as guidelines for success … to the "new era" where skyrocketing livestock values mean a renewed emphasis upon Husbandry will provide the greatest rewards to dairy farmers.

Butter Prices Rocket Toward Mars, Cheese Also Rising (p. 12):
Butter prices (through 3/8/04) had shot past $2.10/lb., while cheese prices at CME were in the mid-$1.50s and headed higher. The sky's the limit on dairy commodity prices this year … as supplies will fall far below U.S. needs.

February 2004 Issue No. 295

Feature story - Monsanto’s Posilac Sales Cut 50% (p. 1):
Monsanto has reduced sales of Posilac by 50%. The Milkweed projects a 4-5% decline in U.S. milk production. Read the February feature story here.

U.S.-Aussie ‘Free Trade’ Deal in Trouble (p. 2):
Opposition from various agricultural groups—sugar, beef and dairy—is slowing down finalization of a special “Free Trade” deal between the U.S. and Australia.

FDA Finds Massive Quality Control Failure at Posilac Plant (p. 3):
An FDA inspector’s report on a visit to the Austrian plant producing Monsanto’s Posilac finds massive quality control failures. This inspection caused FDA to reduce sales of Posilac. See a copy of the FDA document listing the Posilac quality control problems here.

Rising Milk Prices + Heifer Shortage = Higher Dairy Animal Prices (p. 3):
Predictable tight milk supplies mean prices for dairy animals will rise sharply.

Cattle Inventory Report Shows Looming Shortages (p. 4):
John Bunting analyzes USDA data for dairy cows and heifers. He concludes that lower milk cow numbers, higher slaughter rates, lower heifer numbers, and zero imports of Canadian dairy cows all add up to serious shortages of dairy cows and milk.

MPC Imports for November Decline Sharply Because of Higher Costs (p. 5):
November 2003 Milk Protein Concentrate imports were way down, and cost per pound was significantly higher. Tight global dairy protein supplies, coupled with a weaker U.S. dollar, mean dairy processors relying on imports are in for “sticker shock.”

Dean Foods Targets Parlamat Fluid Business in the “Big Apple” (p. 6):
Dean Foods is attacking troubled Parmalat’s fluid milk volumes in the New York City metropolitan area. Combined: Dean Foods and Parmlat totaled about 90% of the region’s packaged milk, before Parmalat’s problems arose in December.

Many Northeast Parmalat Producers Bolt After Late Milk Checks (p. 6):
About 400 of Parmalat’s 900 dairy producers in the Northeast have jumped to other markets, following Parmalat’s failure to get out milk checks on January 21.

School Milk Contracts in Northern NJ: Biggest Antitrust Question (p. 7):
In recent years, only two firms’ milk has been distributed to schools in northern New Jersey—Dean Foods and Parmalat. Now that Dean Foods is chasing after Parmalat’s volume, there will be virtually no competition for school milk contracts in the “Garden State.”

LANCO, Allied Prepare for May 1 Changes (p. 7):
LANCO—a co-op in Southeast Pennsylvania and Maryland that totals about 800 members—is preparing to separate itself from many services now provided by Allied Federated Co-ops. LANCO is Allied’s single biggest member.

Why They Can’t Kill Your Milk Prices This Year (p. 9):
Must reading! Joel McNair writes about the many factors that will create tight milk supplies, and far better prices, in 2004.

IDFA Lies: Imported MPC DOES Displace U.S. NFDM (p. 10):
John Bunting compares recent years’ MPC imports and amounts of U.S. nonfat dry milk used in cheese manufacture. He finds a very tight correlation. IDFA—the dairy processor lobby that wants expanded use of MPCs—has falsely claimed that MPCs have no impact on demand for U.S. dairy products.

Australia Big Shipper of Casein Made Elsewhere (p. 10):
U.S. imports of casein (a milk protein) from Australia for January-September 2003 exceeded the Australian government’s estimates for ALL its casein exports.

DFA ‘Reblends’ Killing Southeast Producers (p.11):
Pete Hardin writes about how DFA’s “reblends” (payments to members below the monthly federal order blend prices) are killing Southeast producers. One dairy farmer in the region reports getting paid $1.90/cwt. below the December 2003 blend price.

Butter Prices Soaring, Cheese Starts to Move Up (p. 12):
Cash prices for Grade AA butter rose to $1.64/lb. at the Chicago Mercantile Exchange on February 6. Butter is tight. Butter prices will pull along cheese prices as 2004 U.S. milk output tightens.

January 2004 Issue No. 294

U.S. ‘Mad Cow’ Response: Just What Industry Desires (p. 1).
U.S. food safety officials have failed to heed their own advice in attempting to minimize impact of “Mad Cow Disease” in this country. Government officials have repeatedly failed to enforce rules about feeding cattle by-products back to cattle. John Bunting cites numerous examples of our failed BSE safety net.

Tighter Milk Supplies, Higher Prices in ’04 (p. 1)
Look for farm higher farm milk prices in 2004 than the experts are predicting. Many reasons are working in tandem to reduce present and future U.S. milk output.

Monsanto Cuts Posilac Distribution; U.S. Milk Production to Decrease (p. 2)
Monsanto is restricting distribution of Posilac to 85% of customers’ historic purchases. Quality control problems??? Fifteen percent less Posilac could cut U.S. milk output by 2-3%, The Milkweed projects.

DO NOT Join CWT (p. 2)
Dairy farmers and their co-ops should resist calls to join NMPF’s CWT program. There is no U.S. dairy surplus. NMPF wants to hike CWT dues by 10 cents/cwt. (to 15 cents), and CWT’s by-laws give the board unlimited assessment authority against members’ milk incomes.

Heat Turned Up On MD&VA G.M. Jay Bryant (p. 3)
Why did Maryland & Virginia Co-op manager Jay Bryant draft a resignation letter prior to the board’s Jan. 7-8 meeting? Bad pay prices this fall, resulting from bad management recommendations, leave a lot of directors and members asking questions.

Feature Stories:
Financial Scandals Stagger Giant Parmalat (p. 5)
Parmalat Situation Poses Big Questions in the Northeast (p. 5)
Call it “Enron-zoni” … or “Harm-a-Lot?” Massive financial scandals are sinking Parmalat, the global dairy and food processing giant based in Italy. Pete Hardin observes that the Parmalat mess is regionalized, but there are many national and global ramifications. This scandalous situation also poses big questions for American dairy farmers selling milk to Parmalat’s U.S. operations in the Northeast. Read all about it in this month’s feature stories here.

ITC’s Hearing Shows Wide Range of Opinions on MPC’s Value and Price Effects (p. 6-7)
On December 11, the U.S. International Trade Commission held a long hearing in Washington, D.C. on the impacts of imported dairy proteins upon the U.S. dairy industry. In this article, quotes from many participants are cited.

ITC Process: Missing Pieces, Possible Conflicts of Interest (p. 7)
Did you know that the chairperson of the U.S. International Trade Commission, Deanna Tanner Okum, previously served as a lawyer at Hogan & Hartson, where she was an associate attorney and member of that firm’s “International Trade Group.” Kraft Foods is a major client of Hogan & Hartson.

Bonus Feature: Bunting ITC Hearing Statement on Imported Milk Proteins
The Milkweed’s John Bunting authored substantial testimony for the U.S. International Trade Commission hearing on imported milk protein issues held December 11, 2003 in Washington, D.C. Bunting’s statement was submitted by the National Family Farm Coalition. In his statement, John reveals a lot of new MPC information and debunks testimony from many industry “experts.” This statement, with loads of graphs, documentation and links, is a must-read for anyone interested in the truth about imported MPC. Access the statement here.

Kraft Dumps Holden as Co-CEO (p. 8)
Disappointing business results leave Kraft Foods shuffling its employees. Betsy Holden is out as co-CEO. Betsy’s failed legacy: high prices and cheap ingredients. Kraft Foods is cutting 10 percent of its white- collar work force.

Mad Cow: Some Things Were-and are-Predictable (p. 9)
Joel McNair analyzes the predictable history of BSE in the U.S., with the future perspective that small and medium farms, utilizing grass resources, can produce more natural beef that squares with future consumer expectations.

Ken Bailey’s Amazing, ‘Doctored’ MPC Distortions (p. 10)
Penn State’s dairy dimwit, Ken Bailey, strikes again. He submitted a long, pre-hearing brief to the recent USITC hearing on imported milk proteins. Bailey is so dumb that he writes U.S. farm milk averages 3.2% protein content -- and that only 30% of MPC use goes into dairy products. Once again, sadly, The Milkweed beats up on Penn State’s version of UW’s Dr. Cropp.

March 2023 – Issue No. 524

February 2023 – Issue No. 523

January 2023 – Issue No. 522

December 2022 – Issue No. 521

November 2022 – Issue No. 520

October 2022 – Issue No. 519

September 2022 – Issue No. 518

August 2022 – Issue No. 517

July 2022 – Issue No. 516

June 2022 – Issue No. 515

May 2022 – Issue No. 514

April 2022 – Issue No. 513

March 2022 – Issue 512 – Issue No. 512

Highlights of Past Issues...

December 2014 Issue No. 425

Fast-Moving Global Dairy Supply-Demand Events (p. 1): Most of the action involves China, as global dairy prices are rising and available of product is constricting.

Inside this month’s issue... Feature Story: Nonfat Dry Milk Analysis: Output, Stocks & Shipments Declining Sharply (p. 1) Our “Story of the Month” here.

Inside this month’s issue... Feature Story #1: What’s Ahead? Watch Calif. Milk & NFDM Output/Inventories (p. 1): This report is one of our “Stories of the Month.” Read it here.

Inside this month’s issue... Latest Crop Estimates: USDA “Stays on Script” (p. 1): On Sept. 12, USDA released its agricultural supply/demand estimates. The 2012 corn crop output remains the same, with a tiny reduction in yields per acre and zero reductions in acreage. We’ll see …

Inside this month’s issue... MPC/Casein Imports Peak Early in Low Milk-Price Years (p. 1): Read the first of our two “Stories of the Month” here.

Inside this month’s issue... The Really Big Issues Facing Dairy in 2012 (p. 1): Pete Hardin lists his perceived eleven biggest issues facing dairy in 2012. #1? What else … the weather.

Inside this month’s issue... Maelstrom of Current Events Creates Tremendous Uncertainty (p. 1): A huge number of critical global and national events have created tremendous uncertainty in the financial and food worlds. No conclusions.

Inside this month’s issue... Ugly: Farm Milk Price Decline Ahead (p. 1): During the past two months, declines in dairy commodity prices set the stage for a drop of $4.00/cwt. (or more) by November – compared to average prices received during July-September -- for U.S. dairy farmers milk prices.

Inside this month’s issue... U.S. 2011 Seed Corn Harvest Way Down: -20% to -30%? (p. 1): Extreme hot weather in July impaired corn pollination. As this year’s seed corn crop – vital to next year’s corn plant – is harvested, firms are adding up the damages.

Inside this month’s issue... Summer Heat/Humidity Devastate Milk Flow & Components (p. 1): July’s heat seriously depressed milk flow and butterfat in several regions of the country. Serious questions remain about how dairy cows will bounce back from the weather stresses.

Inside this month’s issue...

Inside this month’s issue... Word Turning to U.S. for Dairy & Food Reserves (p. 1): The U.S. is viewed as a last reservoir for dairy and corn reserves. Good luck, all.

Inside this month’s issue... Feature Story: Dairy “Surplus” Myth Evaporates: Few Commodities Available (p. 1): Read our “Story of the Month” here.

Inside this month’s issue... Feature Story: Butter $ky-High; Powder Prices Rise; Cheddar Starts to Rise (p. 1): Read our “story of the month” here.

Inside this month’s issue...

Inside this month’s issue...

Inside this month’s issue... Feature Story #1 -- Butter, Cheddar Prices Strengthen; Far Higher Milk Prices Ahead (p. 1): See our first “story of the month” for September 2010 here.

Inside this month’s issue... Farm Milk Price Improvement Finally at Hand (p. 1): See our July “Story of the Month” #1.

Inside this month’s issue... Feature Story of the Month: Special Dairy Antitrust Issue (p. 1-6, 15-20): Read all about the major antitrust issues facing the U.S. dairy industry in this month’s special issue.

Cheese Inventory Growth Holding Down Milk Prices (p. 7): Getting harder to figure … despite strong cheese sales, cheese inventories (measured by USDA) keep growing. This is one of the quirks in the dairy commodity scene.

Inside this month’s issue... Uncertainty Abounds in Dairy (p.1): Short & sweet: there is so much volatility in our industry and our nation’s economy that it’s very difficult for predict too far in advance.

Inside this month’s issue... Feature Story #1: What’s Ahead for Dairy in 2010??? (p. 1): One of our stories of the month. Read it here.

Inside this month’s issue... Feature story: “Upper Teens” (Cwt.) U.S. Farm Milk Prices Ahead, IF … (p. 1): See our story of the month here.

Inside this month’s issue...

U.S. Milk Prices: No Place to Go But UP (p. 1): See our “story of the month #1.”

Inside this month’s issue... Milk Tight Everywhere But in Upper Midwest (p. 1): Headline says it all. In all regions of the U.S. except the Upper Midwest, milk supplies are very, very tight. Cool summer weather has helped prop up summer milk volume in Wisconsin and Minnesota.

Inside this month’s issue...

Inside this month’s issue...

Inside this month’s issue...

Inside this month’s issue...

Inside this month’s issue...

Inside this month’s issue...

Inside this month’s issue...

Inside this month’s issue...

September 2008 Issue No. 350

Inside this month’s issue... Farm Milk Supplies Tighten Sudden East of the Rockies (p. 1): Now that school is in session, demand for farm milk has tightened nicely.

August 2008 Issue No. 349

Fast-Moving Global Dairy Supply-Demand Events (p. 1):
Most of the action involves China, as global dairy prices are rising and available of product is constricting.

Inside this month’s issue...

Feature Story: Nonfat Dry Milk Analysis: Output, Stocks & Shipments Declining Sharply (p. 1)
Our “Story of the Month” here.

Inside this month’s issue...
Feature Story #1: What’s Ahead? Watch Calif. Milk & NFDM Output/Inventories (p. 1):
This report is one of our “Stories of the Month.” Read it here.

Inside this month’s issue...

Latest Crop Estimates: USDA “Stays on Script” (p. 1):
On Sept. 12, USDA released its agricultural supply/demand estimates. The 2012 corn crop output remains the same, with a tiny reduction in yields per acre and zero reductions in acreage. We’ll see …

Inside this month’s issue...
MPC/Casein Imports Peak Early in Low Milk-Price Years (p. 1):
Read the first of our two “Stories of the Month” here.

Inside this month’s issue...

The Really Big Issues Facing Dairy in 2012 (p. 1):
Pete Hardin lists his perceived eleven biggest issues facing dairy in 2012. #1? What else … the weather.

Inside this month’s issue...

Maelstrom of Current Events Creates Tremendous Uncertainty (p. 1):
A huge number of critical global and national events have created tremendous uncertainty in the financial and food worlds. No conclusions.

Inside this month’s issue...

U.S. 2011 Seed Corn Harvest Way Down: -20% to -30%? (p. 1):
Extreme hot weather in July impaired corn pollination. As this year’s seed corn crop – vital to next year’s corn plant – is harvested, firms are adding up the damages.

Inside this month’s issue...

Summer Heat/Humidity Devastate Milk Flow & Components (p. 1):
July’s heat seriously depressed milk flow and butterfat in several regions of the country. Serious questions remain about how dairy cows will bounce back from the weather stresses.

Inside this month’s issue...

Word Turning to U.S. for Dairy & Food Reserves (p. 1):
The U.S. is viewed as a last reservoir for dairy and corn reserves. Good luck, all.

Inside this month’s issue...

Feature Story: Dairy “Surplus” Myth Evaporates: Few Commodities Available (p. 1):
Read our “Story of the Month” here.

Inside this month’s issue...
Feature Story: Butter $ky-High; Powder Prices Rise; Cheddar Starts to Rise (p. 1):
Read our “story of the month” here.

Inside this month’s issue...

Feature Story #1 -- Butter, Cheddar Prices Strengthen; Far Higher Milk Prices Ahead (p. 1):
See our first “story of the month” for September 2010 here.

Inside this month’s issue...

Farm Milk Price Improvement Finally at Hand (p. 1):
See our July “Story of the Month” #1.

Inside this month’s issue...

Feature Story of the Month: Special Dairy Antitrust Issue (p. 1-6, 15-20):
Read all about the major antitrust issues facing the U.S. dairy industry in this month’s special issue.

Cheese Inventory Growth Holding Down Milk Prices (p. 7):
Getting harder to figure … despite strong cheese sales, cheese inventories (measured by USDA) keep growing. This is one of the quirks in the dairy commodity scene.

Inside this month’s issue...

Uncertainty Abounds in Dairy (p.1):
Short & sweet: there is so much volatility in our industry and our nation’s economy that it’s very difficult for predict too far in advance.

Inside this month’s issue...

Feature Story #1: What’s Ahead for Dairy in 2010??? (p. 1):
One of our stories of the month. Read it here.

Inside this month’s issue...

Feature story: “Upper Teens” (Cwt.) U.S. Farm Milk Prices Ahead, IF … (p. 1):
See our story of the month here.

Inside this month’s issue...

Milk Tight Everywhere But in Upper Midwest (p. 1):
Headline says it all. In all regions of the U.S. except the Upper Midwest, milk supplies are very, very tight. Cool summer weather has helped prop up summer milk volume in Wisconsin and Minnesota.

Inside this month’s issue...

Farm Milk Supplies Tighten Sudden East of the Rockies (p. 1):
Now that school is in session, demand for farm milk has tightened nicely.