As printed in our August 10, 2016 issue...
LESS IN THE WEST, more in the Midwest . . . that reoccurring milk production theme continued in June. California milk flow slid 2.8 percent; Washington, -0.9 percent; New Mexico, -3.8 percent; Utah, -4.6.
OF THE TOP 23 DAIRY STATES, 16 put more milk in the pipeline led by South Dakota, up 9 percent. Other gainers included: Michigan, up 6.9 percent; New York, 5.1; Wisconsin, 4.5; Colorado, 2.8; and Iowa, 2.6. Michigan's output has grown so much it passed fifth-placed Pennsylvania.
DATING BACK TO 1917, no time in June has there been more natural cheese stored in warehouses. Stocks were up 10 percent from last June.
CULLING ACTIVITY HELD STEADY as 223,700 head moved to packing plants in June. That was up a mere 1 percent over last year.
A $550 MILLION AID PACKAGE for European dairy farmers was unveiled by the European Commission. The 28-member countries may match funds doubling the relief. Of the total, 30 percent will be directed to voluntary reductions in milk output with 70 percent in conditional aid.
MARGIN PROTECTION PROGRAM PAYOUTS could range from $13 to $14 million with May-June margins in the mid-$5.50s (not available at press time). This would be the first substantial MPP-Dairy payout.
2017 SIGN-UPS FOR MPP-DAIRY run through September 30. Some leaders have called for an enrollment extension to November or December.
USDA PEGGED SLIGHTLY HIGHER MILK PRICES for both 2016 and 2017 in its latest forecast. It inched up the 2016 All-Milk price 55 cents, in the past month, to a $15.70 midpoint. For 2017, $16.20, up 45 cents.
"DON'T BELIEVE THE HIGH ALFALFA ACRES" in the West that were up 9 percent, said Seth Hoyt. There have been a significant number of stands ripped out and planted in alternative crops, resulting in less acres.
THE FEDERAL ORDER DUMPED MILK POLICY has been temporarily extended through August 15 in the Northeast and July 31 in the Mideast orders. A similar provision has been asked for in the Central order and would allow dumped milk to be counted in pooling provisions.
BRIEFLY: A food-labeling bill passed by Congress, and signed by the President, preempts a Vermont law singling out GMO-based food and streamlines national product labeling. Whole milk sales were up 5 percent through May compared to the same time last year. The U.S. could add over 400 million pounds of annual powder manufacturing capacity with plant construction already underway, reported CoBank. A bipartisan House bill would reclarify that Congress intended agriculture operations be exempt from the Resources Conservation and Recovery Act (RCRA). The RCRA provision has been the focus of the Yakima lawsuit.