DairyBusiness Update for April 30, 2013
March MILC: 75.5¢/cwt.
With the April 30 USDA Ag Prices report providing the final feed cost adjuster, USDA announced a March 2013 Milk Income Loss Contract (MILC) payment of 75.456¢/cwt.
MILC payments were about 52¢/cwt. in February and about 12¢/cwt. in January.
USDA is seeking dairy producer and importer organization nominees to serve on the National Dairy Promotion and Research Board (NDB). Nominations must be submitted by May 30, 2013.
USDA will accept dairy producer nominations from the following regions: Region 2 (California and Hawaii); Region 3 (Arizona, Colorado, Montana, Nevada, Utah and Wyoming); Region 4 (Arkansas, Kansas, New Mexico, Oklahoma and Texas); Region 6 (Wisconsin); Region 9 (Indiana, Michigan, Ohio and West Virginia); Region 10 (Alabama, District of Columbia, Florida, Georgia, Kentucky, Louisiana, Mississippi, North Carolina, Puerto Rico, South Carolina, Tennessee and Virginia); Region 11 (Delaware, Maryland, New Jersey and Pennsylvania); and Region 12 (Connecticut, Maine, Massachusetts, New Hampshire, New York, Rhode Island and Vermont). The Secretary will appoint five members for Region 2, two for Region 9, and one for each of the remaining regions and the dairy importer position.
Twelve dairy producer nominees will be appointed to serve 3-year terms beginning Nov. 1, 2013. One dairy producer nominee will be appointed to fill a shortened term, for Region 9, beginning immediately and ending Oct. 31, 2015. The dairy importer nomination will be for a 3-year term beginning Nov. 1, 2013.
For nominating forms and information, visit www.ams.usda.gov/dairy.
Food processor, restaurant and retailer groups voiced support for the Dairy Freedom Act in a letter to the bill’s authors, U.S. Reps. Bob Goodlatte (R-Va). and David Scott (D-Ga.).
“We strongly support your bill that will establish support for dairy farmers without mandating that they participate in a new government dairy ‘supply management’ program,” wrote more than three dozen signatories in the letter. “Your compromise, bipartisan proposal will help dairy farmers through tough economic times, but removes an unnecessary regulatory burden on dairy businesses and provides opportunity for market expansion, new jobs and economic growth.”
The Dairy Freedom Act provides a safety net for dairy farmers by establishing a new revenue insurance program for times of low milk prices and high feed costs. Unlike the Dairy Security Act, the Dairy Freedom Act’s insurance program is not tied to a controversial supply management program.
Opponents of supply management believe it would increase domestic prices on dairy products above international prices, make the American dairy industry less competitive and bring more government regulation and intervention into milk markets.
The number of U.S. dairy processing plants (manufacturing one of more dairy products) increased by 10 in 2012, to 1,288, according to USDA’s annual Dairy Products report. The total is up 163 from 2008.
Of the total, 523 produced cheese, led by cheddar (214), other American (138) and mozzarella (125); 131 plants produced yogurt; and 82 produced butter.
Wisconsin had the most total plants in 2012, with 211, followed by New York, with 118, and California, with 115. Rounding out the top 10 were: Pennsylvania (70); Ohio (71); Florida (65); Michigan and New Jersey (57 each); Texas (53); and Illinois (36).
The eastern one-third of the U.S. had the most growth in plant numbers. According to USDA, plant numbers, by region, include:
• Atlantic: 473, up 12 from 2011 and up 100 from 2008. Yogurt plants in the region increased by 4 in 2012, to 59.
• Central: 591, down 5 from 2011, but up 57 from 2008.
• West: 224, up 3 from 2011 and up just 6 from 2008.
MARKETS: Cheese mixed (block/barrel gap widens); Class III futures mostly slightly lower
Today's market closing prices:
Butter: unchanged at $1.69/lb.
Cheddar blocks: up 1.75¢, to $1.8850/lb.
Cheddar barrels: down 0.5¢, to $1.66/lb.
Grade A nonfat dry milk: unchanged at $1.76/lb.
Extra Grade nonfat dry milk: unchanged at $1.70/lb.
Class III milk: -10¢ to +5¢ through April 2014. Based on current CME closing prices, the 2013 average is $18.52/cwt.; and the 2014 average is $16.85/cwt.
Corn, soybeans, meal futures slightly lower
Corn: -1¢ to -10¢ per bushel through September 2014. The remaining 2013 average is $6.18/bu.
Soybeans: -4¢ to -10¢ per bushel through September 2014. The remaining 2013 average is $13.39/bu.
Soybean meal: -$1.00 to -$3.10/ton through September 2014. The remaining 2013 average is $380.67/ton.
Coming Wednesday in DairyBusiness Weekly:
• Darigold completes Lynden plant construction
• Attorney David Cook: ‘Ag-gag’ laws
• Rabobank looks at cereal: Is there a dairy message?
• Environmentalists: USDA, Innovation Center renew MOU
• Kulps focus on polled genetics, diversity
• Midwest Spring National Holstein Show
• Check out our industry briefs, view our product spotlight, see what’s happening on social media, listen to our podcasts and more!
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