DairyBusiness

This week in Dairy Profit Weekly:

1) Dairy outlook: USDA’s monthly World Ag Supply & Demand Estimates report changed course, predicting 2010 U.S. milk production will be up fractionally from 2009. The report cited lower cow slaughter numbers and a jump in January milk cow numbers – suggesting the pace of herd reduction has slowed.

2) DPW Trends: 2009 gross income from milk sales generated by an “average” cow was down substantially. U.S. cows averaged 20,576 lbs. of milk in 2009, up 181 lbs. from 2008, but the preliminary 2009 all-milk price was $12.81/cwt., down about $5.48/cwt. from 2008’s average of $18.29/cwt. The result: a $1,094 decline in gross income per cow, with an estimated $2,636 generated in milk sales in 2009, compared to $3,730 in 2008.

3) Idaho dairy producers are asking the state’s dairy processors to lift a ban on recombinant bovine somatotropin (rbST). According to the Idaho Dairymen’s Association’s (IDA) March Idaho Dairy focus newsletter, the request is not an IDA endorsement of rbST, but rather seeks to provide dairy producers with all tools available to recover equity lost the past 15 months.

4) DPW numbers: Due to delayed harvests, USDA updated final 2009 corn and soybean estimates in its March Crop Production report, reducing both slightly. U.S. corn production is estimated at 13.1 billion bushels, down 20 million bushels from the previous estimate, but still a record high. U.S. soybean production is estimated at 3.359 billion bushels, down 2 million bushels from the previous estimate.

5) DPW Washington: John Wilson, senior vice president of marketing and industry affairs for Dairy Farmers of America, testified before the House ag committee in support of the Travel Restriction Reform and Export Enhancement Act (H.R. 4645). The bill seeks to address issues hindering trade to Cuba under the 2000 Trade Sanctions Reform and Export Enhancement Act. A 2009 study found eliminating financing and travel restrictions on U.S. exports to Cuba would have boosted 2008 dairy sales to Cuba from $13 million to between $39 million and $87 million.

Check in for daily Dairy Profit Weekly news updates at www.dairybusiness.com.

Dave Natzke, Editor

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