Industry News

The June U.S. average milk price jumped while feed costs moved lower, resulting in the largest monthly Dairy Margin Coverage (DMC) program income margin since February. However, the weight of negative producer price differentials (PPDs) under the Federal Milk Marketing Order (FMMO) system – not included in risk management program calculations – along with high levels of depooling, left the announced milk price and DMC margin somewhat deceptive.

Even though COVID-19 has only been around for a few months, some consumer trends are already becoming apparent and important, says Larry Levin, executive vice president, market and shopper intelligence, with the data analytics and market research company IRI.

Update Highlights

• Newton: June depooling likely near 5 billion pounds of milk
• AFBF releases FMMO reform recommendations
• Depooling, not negative PPDs, is the problem
• Dairy Stream podcast: PPDs explained
• CFAP dairy payments near $1.29 billion

Digest Highlights

• Two decades of dairy consolidation studied
• Federal incentives encouraged to reduce dairy emissions
• Busy week for California QIP
• NMPF urging dietary guideline advocacy
• Cheese stocks saw June drawdown
• Dairy Defined: Butter’s trail through history
• USDA solicits bids for butter
• New York dairy product research grants available
• In case you missed it: Milk prices jump
• Progressive Dairy COVID-19 resources

Digest Highlights

• Class I base jumps another $3 per cwt in August
• June-July milk price jumps could be record
• Grocery store dairy sales settling in for the long haul
• Global Dairy Trade index steady
• Animal Agriculture Alliance launches ‘allies’ advocacy development program
• Processor news: Borden, Burnett and more
• Progressive Dairy COVID-19 resources

The dog days of summer are here, but that doesn’t mean you should let attention to dairy risk management stagnate. Failure to protect some currently strong margins or revenue could come back to bite you later.