Dairy Profit Tuesday, March 9
An (almost) daily recap of dairy information:
March 9, 2010
Supreme Court to hear biotech alfalfa case
The U.S. Supreme Court will review a lower court ruling banning the cultivation of biotech alfalfa. A coalition of agricultural organizations filed a joint friend-of-the-court brief to the Supreme Court, March 8, in support of the petitioners in “Monsanto Co. v. Geertson Seed Farms.” This case will be the first time the high court has weighed in on the risks of genetically engineered crops. It is scheduled for oral argument on April 27; a decision is expected by June.
Events: Southwest Kansas Dairy Tour
The Kansas Department of Commerce and the western Kansas Rural Economic Development Alliance (wKREDA) invite dairymen, business leaders and journalists to participate in the Southwest Kansas Dairy Tour, designed to showcase Kansas as a prime location for dairy farming, March 25, in Finney and Gray counties.
The day-long bus tour will take participants to three Southwest Kansas dairies. Topics to be discussed include water rights, waste disposal, climate, land availability, financial incentives and the overall business environment for dairying. The goal is to highlight Kansas as an ideal location for dairy farms, especially to out-of-state dairymen who might be considering a move to Kansas.
To reserve your spot on the Southwest Kansas Dairy Tour, contact J.J. Jones with the Kansas Department of Commerce at (785) 296-3174 or jjones@kansascommerce.com.
FAPRI: Projected economic turnaround fuels recovery in commodity trade and prices
Analysts with the Food and Agricultural Policy Research Institute (FAPRI) briefed Congress on their 2010 agricultural economic baseline projections, known as the FAPRI Outlook. FAPRI projects that an economic turnaround and bioenergy mandates will grow demand for food, feed and fuel, stimulating trade and price recovery over the rest of the decade.
Following the significant decline in 2008-09 dairy prices, growth in population and income will put upward pressure on dairy prices. While exports from the European Union stagnate, Argentina and Brazil will expand their dairy exports. Asian countries, Russia and Algeria are the main importers in the world dairy markets.
More information is available at the Iowa State (http://www.fapri.iastate.edu) and University of Missouri (http://www.fapri.missouri.edu) FAPRI websites.
Closing on Tuesday, March 9:
Cheddar blocks – down 1.25¢, to $1.2750/lb.
Cheddar barrels – unchanged at $1.2500/lb.
Butter – up 1¢, to $1.4800/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 lower through June 2011.
DAIRYLINE RADIO: Wednesday
Dairy farms are an important part of a local economy, according to Pennsylvania dairy producer and Beef Council Board member John Ligo. Ligo operates a mid-size operation with about 200 cows and grows most of his crops. He pays wages for 6-8 employees per year, totaling about $150,000 per year. Ligo also said he pays $20,000 in property taxes per year, although his operation does not require many municipal services.
Revenue per cow on a dairy farm runs about $3,000-5,000, according to Ligo, and compares to about $300-500 per cow on a beef operation. Revenue per acre runs about $1,500, compared to $350-$450 on a grain farm.
“So the amount of economic activity is very intense,” he said. 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