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June 2017 Issue No. 455

Inside this months issue …

Our stories of the month:
Butter Prices Soaring: You “Ain’t Seen Nothin’ Yet!” (Page 1) and
April 2017 Data: No “Tidal Wave of Wisconsin Milk” (Pages 1 & 3)

Click Above for Story of the Month.

DMI & Other Groups Roll Out “Undeniably Dairy” Media Campaign (p. 2):   
     Dairy promotion groups are rolling out a public relations offensive to try to improve dairy’s “image.”  We’re not sure what this has to do with selling more dairy products.

For Sale: Grassland Dairy Products: (p. 2):
   Wisconsin’s largest dairy processor – controversial Grassland Dairy Products – is for sale.

Canadian Dairy Officials Don’t Respond to The Milkweed’s Questions about Class 7 (2):
  We were basically shut out after asking questions to Canadian dairy officials.  Huh.

May ’17 FMMO Manufacturing Classes All Higher (p. 2):
   The May 201`7 Class III (cheese) milk price was $15.57/cwt.  The Class IV price was $14.49.  Class prices in the federal milk order system are moving up.

March/April Milk Dumpage in FMO’s 1 & 33 – HUGE Increase over 2016 (p. 3):
   Our “Story of the Month.”  See the above link in blue to read this complete story.

DFA/DMS threatens “Independents” in Mid-East, Hiking deducts in Northeast (p. 3):
  A “Story of the Month.”

Elanco Sues Arla, Seeming Preliminary Injunction against “Posilac-Monster” Ads (p. 4):
Elanco – which produces and markets Posilac (biotech bovine growth hormone) – has sued Danish cheese giant Arla Foods.  Arla has rolled out a $30 million dollar media campaign depicting Posilac as a monster and claiming that cheese made from milk from herds where cows are injected with Posilac contains “weird stuff.”

Elanco Executive Admits rbST-cheese Labeling Critical for Posilac’s Future (p. 4):
  On the witness stand in Green Bay, Wisconsin, Elanco official Grady Bishop testified that if the “No rbGH/rbGH” dictates continue for the cheese industry, Elanco may have trouble continuing that product profitably.  Based on the dictates of a major, unidentified cheese buyer, a wide array of cheese manufacturers are issuing “No Posilac” dictates to their dairy producers.

There’s Still a Place for Small Farms in Dairy Industry (p. 5):
  Jan Shepel reports on a presentation by University of Kentucky dairy scientist Dr. Jeffrey Bewley.

WI Reject Dairy’s 2nd CAFO-Expansion Plan (p. 5):
    A Dunn County dairy CAFO was rejected in its application to expand from 3,500 milking cows and 1,250 young stock by Wisconsin’s Department of Natural Resources.  The dairy has listed many neighbors' properties as committed to take manure from the expanded operation, when, in fact, the neighbors had never committed to receive manure.

Jet Stream Omega Anomaly Undermines Start of Growing Season (P. 6):
    Writer Paris Reidhead goes over our heads to describe the aberrant, upper atmosphere patterns this spring that left many areas of the central and eastern U.S. wet.  Interesting!

Compost: The Future of Manure Handling for the Dairy Industry? (p. 7):
   Jan Shepel picks the brain of a Wisconsin businessman who has manure spreading and manure composting services.  For many reasons, he’s a big believer in composting to treat dairy manure.

Winterkilled Alfalfa: Big Concern in Wisconsin’s Northeast (p. 8):
   Dairy-rich eastern Wisconsin has been nailed hard by winterkill of tens of thousands of acres of alfalfa.  Some areas have lost 70-80% of their alfalfa stands.  A cold, wet spring has hampered getting row crops planted in the Upper Midwest and Northeast.

Fortunes & Futures of 3 NYS Dairy Plants: A Mixed Bag (p. 8): 
      Nate Wilson reports on changing events involving diary processing plants in western New York.  The Big News: HP Hood is positioning to buy the defunct Quaker-Mueller yogurt plant at Batavia.

Butter Prices Very Strong; But Block-Barrel Cheddar Split Huge (p. 9):
Butter prices are zooming upwards, propelled in part by international demand and somewhat lower U.S. production.  The “split” between Cheddar blocks and barrels is wide.  Barrel inventories are a glut on the market.

Dairy Livestock Prices Mostly Stable Over Past Month (p. 10):
   We note slight increases in prices paid for #1 springing heifers.

JBS Bribery Scandals in Brazil Raise Serious Questions Here in U.S. (p. 10):
  Owners of JBS SA – Brazil’s largest meat slaughter operator – have turned over tapes to investigators that show these officials bribed high-level government officials to get loans that allowed JBS to buy U.S.-based meat-packing businesses.

Turn-around Time for Dairy Farmers’ Fortunes??? (p. 11):
  Pete Hardin looks ahead and sees better milk prices due to weather events, good cheese demand, and solid butter sales (domestic and abroad).

End in Sight for the “30 Years War” over Posilac??? (p. 11):
    Pete Hardin chuckles at witness stand testimony from a high-level Elanco executive that if the U.S. cheese industry turns its back on Posilac (recombinant bovine growth hormone), Elanco’s ability to profitably produce and market that veterinary drug will be challenged.  A major, unnamed cheese buyer has recently put out the “No Posilac” in milk used to make cheese that buyer takes.  Where do we send the “Thank You” card?

Hot Air Re: Canadian Dairy Pricing Blows Over??? U.S. UF Sales Resume (p. 12):
    Despite all those complaints about the terrible Canadians blocking U.S. shipments of ultra-filtered milk proteins, “spot” milk prices are so disastrously low that marketers can still make money selling that UF material to Canada.

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