Dairy Profit Thursday, March 18
An (almost) daily recap of dairy information:
March 18, 2010
February milk production
February milk production in the 23 major dairy states totaled 13.64 billion lbs., up 0.1% from February 2009. The number of milk cows in those states was estimated at 8.318 million head, 168,000 head less than February 2009, but 3,000 head more than January 2010. Production per cow averaged 1,640 lbs. for February, 35 lbs. more than February 2009.
Total U.S. milk production was estimated at 14.76 billion lbs., also up 0.1% from February 2009. The number of milk cows was 9.088 million head, 201,000 head less than February 2009, but 3,000 head more than January 2010. Production per cow averaged 1,625 lbs. for February, 37 lbs. more than February 2009.
January’s milk production was revised upward 14 million lbs. (0.1%) from the previous preliminary estimate, to 14.77 billion lbs. The revised January 2010 estimate was down 0.5% from January 2009.
USDA Dairy Industry Advisory Committee to meet
The much-anticipated first meeting of USDA’s Dairy Industry Advisory Committee has been scheduled for April 13-15, in Washington, D.C. The 17-member committee was named by U.S. ag secretary Tom Vilsack, Jan. 6.
Foremost Farms receives expansion grant
Foremost Farms USA was awarded a $3.1 million Special Agricultural Facilities Grant from the Wisconsin Department of Agriculture, Trade and Consumer Protection for increased cheese production at its Appleton, Wis. facility. Foremost plans to double the plant’s annual production capacity, to 130 million lbs., producing mozzarella for pizza, foodservice and cheese converter markets. The expansion – expected to take about 12 months – is expected to add 35 jobs to the 91 people already employed at the facility.
New York meeting planned
U.S. Sen. Charles Schumer (D-N.Y.) says Justice Department officials will meet later this month with upstate New York farmers and consumers over claims that anticompetitive practices are driving down prices paid to dairies at the same time retail milk prices soar. The meeting with Schumer and Assistant Attorney General Christine Varney will be held at Genesee Community College in Batavia, March 29.
Closing on Thursday, March 18:
Cheddar blocks – unchanged at $1.2675/lb.
Cheddar barrels – unchanged at $1.2625/lb.
Butter – up 1¢, to $1.46/lb.
Extra Grade nonfat dry milk – unchanged, at $1.12/lb.
Grade A nonfat dry milk – unchanged at $1.1150/lb.
Class III milk futures prices were lower through February 2011.
DAIRYLINE RADIO: Friday
Saturday is the first day of spring, but Dairy Profit Weekly editor Dave Natzke offered some winter-like numbers regarding the dairy economy. USDA Economic Research Service data shows the farmer share of retail dairy prices fell in 2009, to a record low. The index of farmer milk prices was just 104 in 2009, up less than four points from the 1982-84 baseline, but down 28% from 2008 and 32% less than 2007. Meanwhile, the farm-to-retail price spread, the difference between the retail price and the price farmers received, was a record high 283 in 2009, up 5% from the year before, and 21% more than 2007. Dairy farmers received just 25% of the retail value in 2009, down from 33% in 2008 and 38% in 2007. 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