Industry News

In the ever-changing and ever-challenging dairy industry, the new Dairy Revenue Protection (Dairy-RP) program is a welcome sight for most in the industry as a way to manage or mitigate risk. Your participation in the program will likely be a topic of discussion with your ag lender in the upcoming months. What should you be prepared to talk about?

Tariffs apparently weren’t a barrier to milk powder sales to Mexico, but the ongoing trade war did have a detrimental impact on overall dairy and hay sales to China in August. Dairy cattle exports were steady, but buyers are becoming more demanding.

Digest Highlights

• Arla Foods, Foremost Farms USA to explore strategic partnership
• Co-op urges USDA funding for dairy diversion program
• FARM Program launches workforce development module
• Dairy margins end September steady
• ‘Undeniably Dairy’ fall campaign reconnects consumers, producers
• Geographical indications, common food names protected under USMCA
• American Butter Institute urges FDA to address labels
• ADA North East offers virtual farm field trips for schools
• Maryland schools receive milk coolers

The U.S. dairy industry is seen as a big winner in a new trade agreement between former members of the North American Free Trade Agreement (NAFTA), although some of the provisions will be phased in over more than a decade.

Digest Highlights

• FDA prioritizes ‘dairy’ labels
• California water fees raised
• Shamrock Farms expands partnership with University of Arizona
• Fuel Up to Play 60, Chelan Fresh collaborate
• Minnesota offers milk cooler grants
• ‘Dry’ cows mostly in the Southwest
• Wisconsin adds three ‘ag enterprise’ areas

Through the first six months of 2018, average Federal Milk Marketing Order (FMMO) “mailbox prices” – approximating the net price received by dairy farmers for milk after adding any premiums and deducting costs associated with hauling and marketing – were about $1.79 per hundredweight (cwt) less than the same period in 2017 (Table 1). For those with a longer memory, average mailbox prices were running $9 per cwt less than the record highs of 2014.