Industry News

May 2018 turned in another strong month for U.S. dairy exports, with total sales volumes the third highest on record. However, with retaliatory tariffs on dairy exports now in place, foreign sales, and prices, are already being impacted.

Editor’s note: The following commentary appeared in the June 30 California Milk Producers Council newsletter. It is reproduced with permission here.

By a vote of 86 to 11, the U.S. Senate passed its version of the 2018 Farm Bill last Thursday, June 28. The House passed its version by a vote of 213 to 211 on June 21. A conference committee of House and Senate members will now meet to reconcile the differences between these two bills and produce one bill that will be considered by both chambers.

Digest Highlights:

• Northern Plains, dairy states driving increased alfalfa acreage

• Multiple component pricing proposal request withdrawn

• U.S. dairy exports face pivotal dates

• House, Senate farm bills headed to conference committee

• Cows still dry in the Southwest

• DFA Garden City plant cited for innovation

May 2018’s Margin Protection Program for Dairy (MPP-Dairy) margin calculations continued a four-month string below $7 per hundredweight (cwt), meaning dairy producers who purchased coverage at the highest margin levels will receive indemnity payments for a fourth consecutive month.

More than 60 companies and organizations representing American dairy farmers and cheesemakers commended President Donald Trump today for his efforts on equitable trade and for insisting that Canada halt its market-distorting dairy practices. At the same time, the companies urged the administration to reconsider its imposition of new tariffs on Mexico in light of that country’s constructive engagement in North American Free Trade Agreement (NAFTA) negotiations and the harm that Mexico’s retaliatory tariffs will have on U.S. dairy’s trade with its largest and most reliable market.

Digest Highlights

• Milk marketings through California and Federal Milk Marketing Orders highly concentrated

• July Class I base gets a small nudge

• Spring flush slows cow slaughter pace

• Dairy Business Innovation Act proposed

• GAIN report: China dairy