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 March 2017 Issue No. 452

Inside this months issue …

Our story of the month:
Amended Milk Powder Lawsuit Alleges Fraudulent Criminal Activities by DairyAmerica 
Click Here.

Cheddar ^ NFDM Cash Market Prices Turn Sharply Down (p. 1):   
     Prices for Cheddar cheese and nonfat dry milk have tumbled in the past several weeks.  Farm milk supplies are overly-abundant, and buyers are waiting for signs that the price bottoms are near, before they start buying normal quantities.  Mexico’s slower demand for dairy commodities is also a factor pressing on U.S. commodities.

DFA/DMS to De-pool “Independent” Producers in Northeast (p. 1):
   Dairy Farmers of America and its marketing subsidiary, Dairy Marketing Services, will de-pool independent producers in their milk supply.  That means the producers to not have access to class 1 (fluid) markets, nor will they have protections of the federal milk order.  DFA is using the de-pooling threat to coerce independent producers into DFA membership.

“got milk?” Licensed to Promote Products … from INDIA??? (P. 2):
  Writer Jan Shepel investigates a curious situation – the famous, “got milk?” logo (owned by the California Milk Processors Board) is affixed to a line of consumer snacks that includes food items made in India.  Read on …

Feb 2017 Class III Price Up to $16.88/cwt. (p. 2):
    February’s Class III (cheese) milk price rose modestly, to $16.88/cwt.  That price will be the peak for a while, as Cheddar prices at the CME have declined sharply.

Land-Spreading Raw Milk: Feed Soil Biota, Use Surplus Beneficially (p. 3):
   Paris Reidhead explains the benefits of spreading excess raw milk on soils to boost the health and activity of soil microbiota.

Coast-to-Coast, Organic Dairy Markets Struggling (p. 3):
  From Atlantic to Pacific, organic farm milk supplies are overly abundant.  Some marketers are installing quotas on how much milk their producers may ship, other marketers face a tough choice of terminating producers.

Scenic Central Has Payments Dispute with Amish Country Farms (p. 3):
Scenic Central Milk Producers – a Wisconsin-based dairy cooperative – is in dispute with Amish Country Farms, a New Jersey-based firm, over funds due from sale of organic milk.  Amish Country Farms has terminated buying milk from Wisconsin dairy farms that were part of Scenic Central’s network.

Northeast FMMO Sanctions “Dumping” for March, April & May (p. 3):
  Once more unto the manure pit!  The Northeast federal milk market administrator has okayed a proposal by Dairy Farmers of America for dumping excess milk in the Northeast for March through May 2017.  Milk supplies in that region will overwhelm dairy’s transportation and processing logistics this spring.

Fuel-Grade Ethanol Distillers Keep Poisoning Cows with Excess Sulfur (p. 4-5):
  Writer Paris Reidhead details the heartbreak of a Tennessee dairy farm family – the Reeds – with a history of their herd health epidemic due to sulfur toxicity.  The source of that excess sulfur in their cows’ diet: Dried Distillers’ Grains (DDGs) – a by-product of the corn-fuel-ethanol industry.

Amended Milk Powder Lawsuit Alleges Fraudulent Criminal Activities by DairyAmerica (p. 6):
    One of our “Stories of the Month.”

Exhibit B  Declaration by Dairy America’s Former Export Account Manager (p. 7):
    We reprint the full Declaration of DairyAmerica’s former export account manager, who details, under oath, numerous illegalities.  One of our “Stories of the Month.”

Early March: Bull Calf Prices Zeroing Out in Wisconsin (p. 9):
   They’re shooting bull calves in eastern Wisconsin in early March.  No willing buyers, as the fed Holstein steer market in the Midwest has collapsed.

To Northeast Dairy Producers Who Are Class Members in the DFA/DMS Antitrust Litigation (p. 10):
   A Message from Jonathan and Claudia Haar.  Two Class Representatives in the Northeast Dairy Antitrust case against DFA/DMS explain why they’re appealing the federal court’s approval of the Settlement.  Jonathan and Claudia Haar are scheduled to appear in Federal Appeals Court in Manhattan on March 29 to state their legal case in opposition to the Settlement.

The Dilemma of Agricultural Production Restraint (p. 11): 
     Pete Hardin offers a wide-ranging review of issues involving restraint of agricultural production.  Recent settlements in lawsuits have hammered agricultural cooperatives’ common efforts to rein in output.  But in Canada, farm milk quotas have failed to meet that nation’s growing consumer demand for dairy.

Organic Conference Spotlights Organic Grain, Dairy Supply-Price Woes (p. 12):
The recent MOSES organic conference in La Crosse, Wisconsin gave plenty of opportunity for grain and dairy farmers to learn about supply pressures on their sectors.  Imports of organic corn nearly doubled in 2016, compared to 2015.  That slug of imported corn busted down domestic prices by about $5/bushel.   And organic dairy producers are learning the old conventional truth: CHEAP CORN MAKES CHEAP MILK.  Abundant volumes of cheap, low-priced corn are fueling expanding organic farm milk supplies – also busting prices and markets.

DFA to Terminate NFO Marketing Deal in Northeast (p. 12):
   DFA has announced it will cease its marketing relationship with the National Farmers Organization in the Northeast, effective December 1, 2017.

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