As printed in our August 10, 2011 issue...
DRAFT PROPOSAL for Foundation for the Future put forth by Collin Peterson (D-Minn.) See www.futurefordairy.com. More than 600 signed up for FFTF meetings. Support for NMPF's plan is mixed.
JUNE CLASS III PRICE shot up $2.59 to $19.11. California 4b price was $18.79. August-through-December Class III futures averaged $19.33 at closing. June Class IV milk price was $21.05, up 76 cents.
USDA OUTLOOK PUT 2011 average Class III price around $18.15 ($17.07 through June) and between $16 and $17 for 2012. U.S. All-Milk price could average $20.15 for 2011, around $18.25 next year.
CASH CHEESE PRICE topped $2.15 a pound, having picked up 15 cents since June 1. Butter just over $2, after having been at $2.18 in late May. Whey price above 50 cents per pound, a four-year high.
CORN CROP IS second largest (92.3 million acres), but late planting, flooding, drought, and heat put yields in question. Only 62 percent of crop rated "Good" or "Excellent," according to late-July crop report.
JUNE MILK UP 1.4 percent in the 23 states. Up 1.1 in the U.S. Nation had 81,000 (0.9 percent) more cows than in 2010. California was up 3.4 percent. Wisconsin, down 1.6 percent. Idaho, up 5; Texas, up 10.
PRODUCT USE rose 2.9 percent through April. Butter up 15; Italian cheese up 7.1; American up 4. Nonfat (-5.7) and fluid (-1.5) down.
DEAN FOODS reached $140 million settlement in Southeast anti-trust suit involving some 7,200 dairy farmers. Related cases still pending.
CHEESE OUTPUT in May (915.2 million pounds) set a record. Total cheese stocks have been more than 1 billion pounds for 16 months, but American cheese inventory was down indicating tighter markets.
BRIEFLY: Dairy export value, year to date, is $1.9 billion, up 36 percent from last year. Dairy heifer inventory in July was 4.2 million, up 150,000 or 4 percent over year ago. 45.6 heifers per 100 cows, compared to 44.3 in 2010. NMPF says 45 percent of U.S. milk supply enrolled in FARM (Farmers Assuring Responsible Management) program. Class I mover for August is $21.43, highest since November 2007. French dairy giant Lactalis taking over Italy's Parmalat to become world's largest dairy firm topping Nestlé. New Zealand milk output expected to be up 4 to 5 percent this year. Income over feed cost calculated from NASS monthly figures was $9.52 for June, up $1.27 from May. Total U.S. cattle-and-calf count, at 100 million, is smallest mid-year tally since 1973. USDA predicts that corn use for ethanol will exceed feed use this year.
In Your August 25, 2011 Issue
NATIONAL MILK ANSWERS OUR QUESTIONS ABOUT FFTF. It responds to questions we had about Foundation for the Future and some raised by readers and those attending the listening sessions.
TEN COW QUIRKS YOU MUST REMEMBER. Here's what you need to know about their habits before your cows start working for you.
WHAT DO YOUR FRESH HEIFERS COST YOU? They're probably your third largest expense. There's no one way to lower costs.