Digest Highlights

Global dairy market recovery: a ‘U’ not a ‘V’

Global dairy market experts predict world milk prices may not recover as fast as those seen in the U.S., according to an outlook report from the International Farm Comparison Network (IFCN) Dairy Research Network.

Natzke dave
Editor / Progressive Dairy

The 21st dairy conference of the IFCN was held June 2-3, bringing together dairy experts from 70 countries. A poll revealed that two-thirds of the international conference participants thought the bottom of the dairy crisis has already been reached, with the other one-third saying their countries were only at the beginning of the crisis.

In a press release from IFCN, the U.S. and India were seen as the “epicenter” of the dairy crisis, where farmgate milk prices declined by 29% and 19%, respectively, between February and May of 2020.

The dairy market analysts characterized the U.S. price recovery through June as a “V,” marked by a dramatic fall followed by an equally dramatic increase. In contrast, they forecast a “U-shaped recovery” in global markets, with a longer period of time until pre-COVID-19 prices are reached.

The forecast for 2020 world milk price recovery remains complex. Slower recovery is likely, in part, due to global milk supply growth in early 2020, coupled with large stocks and lower per capita demand due to the economic fallout from the COVID-19 pandemic.

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USDA buying dairy products

The USDA’s Agricultural Marketing Service (AMS) continues to make dairy product purchases for distribution through domestic feeding and nutrition programs. Contracts were recently announced for 1.95 million pounds of shredded part-skim mozzarella cheese in 2-pound packages for delivery between July 1-Aug. 31. Bids were accepted from Dairy Farmers of America, Kansas City, Kansas; Great Lakes Cheese Company, Hiram, Ohio; Masters Gallery Foods, Plymouth, Wisconsin; and Miceli Dairy Products, Cleveland, Ohio.

Jacquier: Higher prices, effective policies helping dairy rebound

Higher milk prices and effective federal policies in response to the coronavirus crisis are dramatically turning around dairy farmer fortunes, according to James “Cricket” Jacquier, a member of the National Milk Producers Federation’s (NMPF) executive committee.

For all the disruption the crisis has brought, and for all the questions that have yet to be answered, dairy’s response to it has shown a strength in the industry, said Jacquier, whose Laurelbrook Farm outside East Canaan, Connecticut, is a fourth-generation dairy.

Speaking in a recent NMPF podcast, Jacquier, who is board chair of the Agri-Mark board, said farmers can use their experiences to advance their message of providing wholesome, essential products to consumers.

UDFC submits California QIP petition

The United Dairy Families of California (UDFC) has resubmitted a proposal to sunset California’s quota program. A petition, submitted June 8, calls for a producer referendum on a proposed five-year process to end the program.

It is similar to one outlined in a February letter to Karen Ross, secretary of the California Department of Food and Agriculture (CDFA). That letter, signed by 11 regional representatives of the UDFC, followed a series of meetings and months of study seeking ways to resolve how state milk quota payments are funded and distributed. Ross subsequently denied that request, notifying the UDFC that the recommendation must be submitted in the form of a petition with the necessary signatures of at least 25% of California’s dairy producers.

Under the proposal, California’s Quota Implementation Plan (QIP), also called the Quota Administration Plan or QAP, sunsets on March 1, 2025. In the meantime, a Regional Quota Adjuster (RQA) will be modified to result in an equalized quota differential of $1.43 per hundredweight (cwt). The plan will give existing quota holders a cumulative payment of $300 per pound of solids quota distributed over the five-year period.

The UDFC petition was submitted a day prior to a CDFA public hearing, June 9-10, to consider a different petition filed by a group seeking to end the quota program. That petition, filed by Stop QIP, seeks suspension of the California Food and Agriculture Code (Chapter 3.5), which would effectively terminate the QIP.

Separately, Stop QIP filed a lawsuit last December, seeking to invalidate the QIP. A May hearing in the California Superior Court for Sacramento County was postponed due to the COVID-19 pandemic.

2020 DGAC report schedule challenged

The 2020 Dietary Guidelines Advisory Committee (DGAC) is scheduled to hold a meeting to discuss its draft advisory report, June 17.

Meanwhile, the Nutrition Coalition, a nonprofit organization, has written to Ag Secretary Sonny Perdue and U.S. Department of Health and Human Services (HSS) Secretary Alex Azar asking for a delay in the release of the DGAC report. The letter charges that one or more members of the committee expressed concerns over the process and the review of scientific studies.

The draft advisory report meeting is June 17, 11 a.m.-3 p.m. and 3:30-7 p.m. (Eastern time), via webcast. After discussion and any resulting revisions, the committee is scheduled to submit its final report to the USDA and HSS at the end of June 2020.

The “2020-2025 Dietary Guidelines for Americans” update is scheduled for release at the end of 2020. Beyond providing dietary recommendations, the document is also used as the basis for dairy options served as part of the National School Lunch and Breakfast programs and other federal feeding programs.

Wisconsin dairy processors receive grants

Eleven Wisconsin dairy companies will receive state grants to explore innovation, improve profitability and sustain long-term viability.

A total of $200,000 was available for the 2020 Dairy Processor Grants, with a maximum of $50,000 for each project, according to Krista Knigge, administrator for the Department of Agriculture, Trade and Consumer Protection (DATCP) Division of Agricultural Development (DAD). Grant recipients are required to provide matching funds of at least 20% of the grant amount.

Grant recipients and projects are:

  • Agropur Dairy Cooperative – Install a wastewater milkfat recovery system
  • Moundview Dairy – Install a bioremediation system that uses natural microbes and hydroponic plants to cleanse and purify wash water
  • Cedar Grove Cheese – Install block chain technology to track food safety, market development and other apsects of production and sales
  • Henning Cheese – Create and install a line-packaging machine and redesign mozzarella equipment
  • Wisconsin Pride Cheese Company – Expand cheese production capacity and add a new brine system
  • Holland’s Family Cheese – Pursue SQF2 food safety inspection/certification
  • Yodelay Yogurt – Design and build a custom case packer
  • Zimmerman Cheese Company – Design and build a new raw milk silo alleyway to double milk-holding capacity
  • Arena Cheese – Install a reverse osmosis system to concentrate lactose permeate coming from a ultrafiltration unit that separates protein from lactose
  • Nasonville Dairy – Hire an independent consultant to complete a food safety initiative audit and provide SQF food safety training
  • Caprine Supreme – Invest in a new pasteurizer and cheese vat

Maryland & Virginia Milk Producers hosting virtual dairy ‘Co-op County Fair’

With numerous canceled county fairs and youth dairy shows, the Maryland & Virginia Milk Producers Cooperative will support the youth and co-op members who exhibit their dairy animals by holding a virtual “Co-op County Fair.” The five-week event will run from June 29 through July 31, 2020.

Each week, the Co-op County Fair will celebrate a theme and highlight the top photo or video entries on Maryland & Virginia’s social channels. Weekly winners will be announced each Friday in July.

Those interested in participating must submit photos (no more than 10) with captions and a brief summary, or a video with a brief written summary to support the specified weekly theme:

  • Cow care: Share how you and/or dairy farmers care for their cows and how cows and calves are prepared for a fair or show. Entry deadline is June 19.

  • Favorite cow: Share your favorite cow, why this cow is your favorite and what is her story. Entry deadline is June 26.

  • Favorite breed: Share and/or show your favorite breed and explain why it is your favorite. Entry deadline is July 3.

  • Pretty cow/cow costume: A fair favorite, show your cows dressed up in costume, explain what the costume is and why it is meaningful or interesting to you. Entry deadline is July 10.

  • Favorite cow family: Tell and show your favorite cow family on your farm. Why is this family important or special to you? Entry deadline is July 17.

Entries may be submitted as a youth group (4-H, FFA, breed organization), an individual or as a family, and entries must come from within the cooperative’s geographic footprint from Pennsylvania to Georgia. Weekly winners will receive $100 for a youth group entry, $50 for an individual entry and $75 for a family entry.

Email contest entries by the deadline listed above. For more information, official rules and entry forms, click here.

Progressive Dairy COVID-19 resources

Progressive Dairy frequently provides updates on COVID-19 news and resources on a special webpage.

  • Updates for June 3 include a look at a bill signed into law that amends several provisions in the Paycheck Protection Program (PPP), a summary of a podcast on how COVID-19 has changed the ways producers and lenders communicate and complete financial transactions, and more.

  • The update for June 11 looks at more ways organizations are helping distribute dairy products to those in need.

There’s also information on event changes and cancellations; a list of recent dairy organization podcasts related to COVID-19; a comprehensive list of other state, regional and national resources; and helpful articles previously appearing on the Progressive Dairy website.  end mark

Dave Natzke