Dairy Profit Friday, March 5
An (almost) daily recap of dairy information:
March 5, 2010
Federal order prices
The February 2010 federal order Class III milk price is $14.28/cwt., down 22¢ from January, but $4.97 more than February 2009. The February 2010 Class IV price is $12.90/cwt., down 95¢ from January, but $3.45 more than a year ago.
DFA: Animal well-being program enters second round
The second round of Dairy Farmers of America’s Gold Standard Dairy quality assurance program, beginning this year, will incorporate measurement criteria from the National Dairy Farmers Assuring Responsible Management (FARM) program, a nationwide, verifiable animal well-being program that demonstrates U.S. milk producers are committed to producing high-quality milk in a high-quality environment.
DFA introduced the Gold Standard Dairy quality assurance program in 2007 to proactively address the concerns of consumers, retailers and processors who are interested in how food is produced. The on-farm review includes animal well-being, environmental stewardship, employee training, and milk safety and quality. More than 90% of DFA member farms have participated in the Gold Standard process.
New York ag commissioner seeks Class I decoupling
New York State Agriculture Commissioner Patrick Hooker recently wrote to USDA secretary Thomas Vilsack, encouraging him to consider establishing a national floor for the Class I prices. By doing so, Class I prices for fluid milk would ultimately be de-coupled from manufactured classes of milk.
If implemented at $18.50/cwt., the Class I floor could mean an extra $15.5 million per month for dairy farmers in New York State. The Northeast, consisting of New England, New York, New Jersey and Pennsylvania, has the highest Class I utilization by volume and, outside of the Southeast, the highest rate of Class I utilization. Based on analysis for the January-September 2009 period, flooring the Class I mover at $18.50/cwt. would have resulted in a blend price of about $14.91/cwt., $3.34/cwt. more than the actual average.
Weekly summary: Cash block cheese prices fell 4.5¢ during the first week of March, closing Friday at $1.2975/lb., but that’s still 9.75¢ more than the corresponding week a year ago. Barrels closed at $1.25/lb., down 4¢ on the week, but 3¢ more than a year ago. The butter market remains strong, closing Friday at $1.45/lb., up 4¢ on the week and 28.25¢ more than a year ago. Cash Grade A nonfat dry milk lost a penny on the week, closing Friday at $1.11/lb.. Extra Grade plunged 12¢, dipping to $1.12/lb.
Closing on Friday, March 5:
Cheddar blocks – down 0.75¢, to $1.2975/lb.
Cheddar barrels – unchanged at $1.2500/lb.
Butter – up 1¢, to $1.4500/lb.
Extra Grade nonfat dry milk – unchanged, at $1.12/lb.
Grade A nonfat dry milk – unchanged at $1.11/lb.
Class III milk futures prices were slightly higher through October 2010, steady to slightly lower thereafter.
DAIRYLINE RADIO: Monday
Dairy Management Inc.’s Joe Bavido completes his series discussing successful dairy checkoff partnerships in Monday’s “DMI Update.” He emphasized how collaboration through the Innovation Center for U.S. Dairy focused on health and wellness, product development, sustainability, consumer confidence and globalization. More than 180 companies and 400 individuals were united in the effort to “protect and grow sales.” 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