November 2016 Issue No. 448
Inside this month’s issue …
Our story of the month:
Late October/Early November: CME Cheddar Cheeses Prices Spike
Trump Election Kills Odds fo TPP “Lame Duck”
Passage (p. 2):
Newly-elected president Donald Trump has vowed to renegotiate various “Free-Trade” treaties in which the U.S. currently is enmeshed. The anti-“Free-Trade” spirit coming off the November 8 election will likely kill plans held by the Obama administration to try to sneak through a “lame duck” session passage of the Trans Pacific Partnership.
Oct. ’16: FMMO Class II and
Class IV Prices Decline (p. 2):
Class III (cheese) milk declined by $1.57/cwt. during October, while Class IV (butter-powder) milk declined by $0.52/cwt.
CDI Earns $137,849 Penalty: Ignored Order to Be
Prepared for Settlement (p. 3):
Defendant California Dairies, Inc. was slapped with a $137,849 penalty for failing to be prepared for a Settlement Conference in the long-running milk powder price mis-reporting case.
USDA: Budget Cuts Eliminate Recent Beef
Slaughter Data (p. 3):
Due to budget constraints, USDA stopped collecting weekly livestock slaughter data in mid-summer 2016.
DFA Focusing on Projects in Western New York
and Southwest Kansas (p. 4):
Writer Nate Wilson puzzles over DFA’s priorities as the co-op builds a big, new dairy ingredients plant in milk-and water-starved western Kansas, while sitting on the ownership of the failed Muller-Quaker yogurt plant in western New York. The Northeast has been overwhelmed with surplus milk that led to widespread dumping each of the past two years.
No Improvement for (GMO)
Yields, Growing Pesticides Use (p. 4):
The New York Times recently printed a detailed study of farm practices in the U.S. and western Europe. Conclusion: there are no yield advantages to genetically-modified crops, and GMOs use more pesticides than conventional crops.
F.A.R.M. Program Adds Insult to Injury for
Dairy Producers (p. 5):
An anonymous Northeast dairy farmer blows his stack about animal welfare dictates from the F.A.R.M. program.
F.A.R.M. “Animal Welfare” Dictates Ignore
Synthetic Hormones (p. 5):
If animal welfare is such a big deal, why doesn’t the F.A.R.M. program address synthetic hormones such as “Posilac.” The veterinary advisory label for Posilac lists about a dozen and a half potential adverse health issues associated with that milk-spurring drug.
Tough Move: Grassland’s rbST/rbGH-free Decision
Writer Jan Shepel summarizes a presentation by a representative of Grassland Dairy Products at the recent Food and Policy Summit in Madison, Wisconsin. The Grassland Dairy Products representative detailed the reasons why his firm has issued a moratorium on milk and cream from herds injected with Posilac. Consumers don’t want it!
Failed U.S. Farm Milk-Pricing System Benefits
Foreign Firms that Control Many U.S. Dairy Processing Sectors
Pete Hardin lays out the foreign ownership interests that control various sectors of U.S. dairy processing. If Chinese investors make good on rumored attempts to buy Dean Foods (the nation’s largest fluid milk processor), then that will be just one more “biggie” whose profits move offshore. Hardin explains that the nation’s failed farm milk pricing system benefits these processors, not farmers and not consumers.
Q&A: R-CALF USA CEO on Brazilian Beef
Imports & Impact on U.S. Cattle Prices (p. 7):
Bill Bullard, CEO of the trouble-making cattlemen’s organization – R-CALF USA – provides another fact-filled interview on beef industry trends. Bullard details how recent imports of beef from Brazil have further soured the pricing structure for cattle and dairy producers in the U.S.
Why is Organic Valley Selling Imported
Cheese??? (p. 8):
The nation’s largest organic dairy farmers’ co-op, Organic Valley, is selling imported Cheddar from England. With plenty of organic milk around, one might hope that Organic Valley would not need to import organic cheeses.
Spiking Cheese Prices: Big News on Diary
Commodity Scene (p. 9):
In reviewing the dairy commodity scene, the big jump in Cheddar cheese prices at CME is the primary feature. As milk supplies in Europe and Oceania struggle, the U.S. is seeing strong domestic dairy product demand boost commodity prices.
Choose Cheese Based on
Taste … Not Absence of Milk Fat (p. 10):
Writer Paris Reidhead digs into recent scientific journal report that the fat content in cheese has no impact on bad cholesterol levels in humans. This finding is one more shattering of myths spread against dairy and animal fats over the past five to six decades.
Dairy Price Recovery, if U.S. economy holds …
Supply and demand signs look good for 2017, Pete Hardin concludes … if the U.S. economy holds up its strength. Dairy product demand is solid.
Where’s our beef?
Butter from where? (p. 11):
Since dairy commodity prices generally fell in late 2014, two factors have propped up dairy farmers’ cash flows and asset values: beef prices and butter prices. But both those items have taken a beating, price-wise, over the past year or so. In both instances, high levels of imports have been responsible for knocking down U.S. prices.
MMPA Swipes Extra $1.90/cwt. from Sept. milk
checks’ PPDs (p. 11):
Michigan Milk Producers’ Co-op continues its thievery against members’ milk checks. For September, the co-op deducted an extra $1.90/cwt. through the “minus Producer Price Differential.” MMPA president Ken Nobis spouts that dairy farmers should learn to make milk at “world market prices” …. But MMPA’s deducts may be putting that co-op’s members’ prices below world market levels!
Explaining Last Month’s P. 1 Article about U.S.
Milk Short of Demand (p. 12):
We offer further clarification for last month’s article about a presentation at World Diary Expo by Rabobank’s Thomas Bailey. Bailey stated that U.S. milk production had not kept up with demand for the past 18 mohths – a surprise from this expert dairy analyst, since U.S. dairy commodity prices have generally been low since early 2015. We reproduce Bailey’s power-point panel from his part of his WDE presentation.
Earth Starts Moving at Walmart’s Fort Wayne
Site (p. 12):
We’ve got a picture! The earthmovers have just started moving ground. Walmart will never make the original late 2017 deadline to get that plant on-line.
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