Industry News

Strategic questions on whether to invest or divest impacted standings in Rabobank’s annual listing of the “Global Dairy Top 20” companies, noted Mary Ledman, dairy global strategist. Rankings in the annual report, released in late August, were based on 2019 financial data and includes merger and acquisition transactions completed in the first half of 2020.

Digest Highlights

• Georgia Milk Producers to explore FMMO reform
• DFA sets sustainability goal to reduce GHG by 30% for the decade
• CFAP dairy payments $1.7 billion
• Global Dairy Trade index lower
• Chesapeake Bay Program reports TMDL progress
• Canadian cow numbers down slightly
• Decline in childhood milk consumption in school lunch programs may affect future health
• California dairy promotion groups launch food donation effort
• Progressive Dairy COVID-19 resources

Higher July U.S. average milk prices and slightly lower feed costs resulted in another large jump in the dairy income margin calculated under the Dairy Margin Coverage (DMC) program. As in June, however, negative producer price differentials (PPDs) under the Federal Milk Marketing Order (FMMO) system – not included in risk management program calculations – mean the announced prices or margins may not reflect what producers see at the farmgate.

Update Highlights

• USDA dairy trade forecast up, but ag trade surplus smallest in decades
• NMPF: Don’t miss CFAP deadline
• Senators seek robust enforcement of USMCA dairy agreements
• Retail dairy sales still ‘powerhouse’
• Dairy Stream podcast: Dairy customer of the future
• USDA expands ‘family’ in payment limits
• Presentations offer domestic, international outlooks
• ‘Economies of scale’ advantages evident

Digest Highlights

• Vegan company gains preliminary injunction to market product as ‘butter’
• Price, supply-demand balance seen as pivotal to Wisconsin dairy future
• Proposal expands milkfat variety options to WIC
• DBI grants to fund regional dairy research projects
• New York creates MilkLaunch innovation competition
• USDA accepting applications to help cover costs for organic certification
• Cornell study identifies agricultural GHG emission mitigation steps
• Wisconsin townships requiring manure-hauling surety bonds
• USDA buys 1% UHT milk for food programs
• USDA, Vermont sign Cooperative Interstate Shipment agreement

The USDA approved another $1 billion to fund a third round of the “Farmers to Families Food Box Program,” an effort to feed the nation’s hungry while boosting demand for U.S. agricultural commodities during the ongoing coronavirus pandemic.