As printed in our July, 2008 issue...

BLOCK CHEESE PRICE hovered in the $1.90s. Price may move lower as sluggish fluid sales move more milk to vats and cheese inventories begin to build seasonally. Still, cheese stocks remain below year-ago levels.

FEED PRICES REFLECTED late spring and flooding. American Farm Bureau estimates $8 billion in crop losses . . $4 billion in Iowa. Four million acres may have been lost. Forty-one percent of U.S. corn “fair” or worse.

CLASS III FUTURES slid in June but still averaged nearly $20 for July through December. Average for all of 2009 was $20. USDA expects 2008 Class III average of about $18.50; between $17.10 and $18.10 next year.

MAY MILK OUTPUT in top 23 states up 3.4 percent despite high feed prices. Cow numbers up 162,000 head or 2 percent over year ago in those states. U.S. dairy cow population up to 9.281 million, highest since January 1986.

PRODUCT CONTROLS helped hold California milk growth to 2.8 percent in May. Wisconsin up just 1.8 percent. Texas up 14. New Mexico, Kansas, Colorado, and Idaho all up about 10 percent. Florida was down 7 percent.

FLUID MILK PRICE GOUGING allegations in New York. Investigation found that 43 of 50 stores were overcharging. State law says retailers can’t charge more than twice the price that farmers get for Class I milk.

BRIEFLY: Base milk prices (both Class III and IV) could be lowered 25 to 35 cents a hundred by new, higher make allowance in federal orders to be voted on by producers. Thousands of European dairy farmers protested low prices and high costs by dumping milk and demonstrating in cities. Leprino Foods plans second Colorado cheese at Greeley. “Phase out milk quotas” in Canada recommends an Organization of Economic Cooperation and Development body. Pressure growing to reduce ethanol mandates and incentives in view of recent feed grain and food prices. Drought pushed down milk output in Australia and New Zealand 5 and 4 percent, respectively. World Trade Organization ruling against U.S. cotton subsidies could affect other commodity programs. Impact of CWT’S fifth herd retirement program should be felt beginning in August and September. Three French dairy co-ops merge to become third largest French dairy firm. Bovine TB in a third Central Valley herd may mean a change in California’s status with more testing required at a time when more dairy cattle are being shipped out of the state.