DairyBusiness

An (almost) daily recap of dairy information:

January 5, 2010

NATIONAL: November dairy products report

USDA released its November Dairy Products report this afternoon. Based on the report:

• Butter, at 120.1 million lbs., was up 6.9% from October, but down 9.7% from November 2008.

• Nonfat dry milk, at 100.7 million lbs., was up 10.1% from October, but down 24.7% from a year ago.

• Mozzarella cheese, at 281.2 million lbs., was up 0.4% from October and up 7.5% from November 2008.

• Total Italian-type cheese, at 362.7 million lbs., was up 0.6% from October and 6.5% more than year ago.

• Cheddar totaled 248.5 million lbs., down 4.8% from October, but 3.5% more than November 2008.

• American-type cheese, at 332 million lbs., was down 4.3% from October and down 1.8% from a year ago.

• Total cheese, at 844.2 million lbs., was down 2.1% from October, but 1.9% more than November 2008.

REGIONAL: Midwest

• The Dairy Business Association’s (DBA) Expansion Symposium will be back for a fifth year, Jan. 26-27, at Lambeau Field in Green Bay, Wis.  Appropriately themed “Rising to the Challenge,” this two-day conference is aimed at helping dairy producers excel in today’s business climate. Cost is $175 for DBA Corporate members, $200 for non-members and a special producer rate of $99 per person.  To register for the Expansion Symposium, visit www.widba.com or call (920) 347-0499.

PRODUCTION: Heifer rations

Heifers are on a lower plane of nutrition compared to milk cows. Dr. Greg Bethard, writing in the Jan. 5 Dairy Calf & Heifer Association “Tip of the Week,” notes many feeds not suitable for milk cows make ideal heifer feeds. Heifer growers should work closely with their nutritionist to find the least-cost ration that will allow heifers to perform to expectations. To read more, and for information about the Dairy Calf & Heifer Conference, March 23-27, in Lexington, Ky., visit http://www.calfandheifer.org.

INDUSTRY NEWS: Regular, rbST-free and organic milk prices

According to the American Farm Bureau Federation’s quarterly Marketbasket Survey, shoppers in 32 states reported paying the following average prices for milk in half-gallon containers in the fourth quarter of 2009:

• regular milk: $1.99, up 10¢ from the prior quarter, but down 16% compared to the same quarter a year earlier. (The price for one gallon of regular milk was $3.04, up 17¢ from the prior quarter, but 20% less than 2008.)

• “rbST-free” milk: $3.08, down 24¢ from the last quarter, and about 11% less than the fourth quarter of 2008. It is about 55% higher than the reported price of a half-gallon of regular milk. The retail markup on “rbST-free” milk = $1.09/half-gallon X 23.25 half-gallons/cwt. = $25.34/cwt.

• organic milk: $3.57, down 20¢ compared to the third quarter, and down 4% compared to a year ago. It is about 80% higher than the reported price of a half-gallon of regular milk.

MARKETS: Tuesday’s CME prices:

Cheddar blocks: down 1¢, to $1.44/lb.

Cheddar barrels: up 0.25¢, to $1.4350/lb.

Butter – up 0.25¢, to $1.33/lb.

Extra Grade nonfat dry milk – unchanged, at $1.40/lb.

Grade A nonfat dry milk – unchanged, at $1.37/lb.

Class III milk futures prices were steady to mostly lower in a narrow range through June 2011.

Corn futures prices were steady to higher; soybean and soybean meal futures prices were higher.

For today’s market activities, visit http://www.dairybusiness.com/dairybusiness_markets.php.

DAIRYLINE RADIO: Wednesday

Government dictate or market dictate: That’s the question the dairy industry struggles with, and the International Dairy Foods Association’s Bob Yonkers challenged DairyLine listeners to prepare themselves for coming ups and downs in milk prices.

As 2009 came to a close, world dairy markets had rebounded to high price levels not seen prior to 2007′s record highs, except for a few months in 2004. “The dairy markets of the past three years are likely the first of many periods to come, where prices zoom to high, even record levels,” Yonkers warned, “only to fall dramatically to very low levels.”

That has resulted in calls by some for  government controls on milk production and marketing. Others see opportunities for growth, both domestically and into expanding export markets, according to Yonkers. They oppose expanded government intervention, he said, and “are willing to accept the lows in order to benefit from the highs.” Listen to the conversation with DairyLine’s Lee Mielke.

For a sample copy of Dairy Profit Weekly, or subscription information, visit www.dairyprofit.com or phone: 800-334-1904, ext. 244.

Dave Natzke, Editor