July 2015 Issue No. 432
Inside this month’s
Story of the month:
Huge Bomb: Approving Beef Imports from FMD-Infected
Brazil & Agentina (p. 1):
Contributor Jim Eichstadt sorts through media reports that the U.S. is about to allow imports of fresh beef from Brazil – a nation with Foot and Mouth Disease. Not pretty! Read our story of the month here.
"All-Milk Price" DOESN'T Include Deducts! (p.
The Milkweed finally wangled answers our of USDA regarding whether milk check deducts for things like marketing costs, milk hauling, promotion assessments, etc. are factored into the monthly “All-Milk Price.” To the best of our ability to interpret USDA’s answer, the answer is No. Thus, the DMPP “safety net” program, which relies on the “All-Milk Price” as its income measure, is flawed. .
Dairy Marketing Realities
to Appreciate (p. 2):
Mozzarella demand is good and inventories are little, if any. Butter sales are good. Barrel Cheddar demand is good, and no foreign firms make barrel Cheddar. California’s future milk output is unknown, due to the Drought. Those factors are helping hold up U.S. farm milk prices. .
Current Weak Area: Dairy Protein Powders (p.
Except for high-end whey powders, the entire dairy protein powder market is glutted and is of concern due to the potential for lower prices.
Judge Sets August 7 Date
for Pre-Trail Hearing (p. 2):
A pre-trial hearing has been scheduled for the Northeast dairy antitrust litigation by Judge Christina Reiss.
June ’15 Class III Price $16.72/Cwt. — Class IV
$13.90/Cwt. (p. 2):
The headline tells the story for June’s manufacturing milk price classes in USDA’s federal milk order program.
Milk Dumping: Are Co-ops Pursuing "Last Man Standing"
Strategy? (p. 3):
In the Northeast and Mid-East federal milk orders, large volumes of milk continue to be dumped, due to lack of plant capacity and lack of willingness by processors to take in more milk. What’s really going on??? Pete Hardin theorizes that big co-ops in those regions think that California milk production will tumble and they’ll be in an advantageous position to compensate for California’s shortfall of commodities. In the meantime, dummies running a certain co-op are paying big volume premiums, adding new members, dunning members for monthly marketing losses, and watching a director more than double his herd size. The big losers are small- and medium-sized dairy producers … who are viewed as expendable by some big co-op leaders.
Milk Dumping in Orders
1 & 33 Ramps-pp Dramatically (p. 3):
Writer Nate Wilson analyzes the volumes of farm milk dumped in the Northeast and Mid-East federal orders in May 2015.
Goliath: Saputo Tries to Block Lando's Cheese
Plant Project (p. 4):
Last winter, Saputo Cheese sold its closed Hancock, Maryland cheese plant to resellers. Saputo’s lawyers failed to restrict the deed to that property to prohibit another firm making cheese there. Now Saputo is in court trying to stop a small cooperative that’s purchased the plant from making cheese to help its members find a market for their milk.
& Russia Collaborating to Build 100,000 Cow
Dairy (p. 4):
Cow Comrades??? Plans to build a 100,000-cow dairy on the China-Russia border have been announced. Chinese will operate the dairy, Russians will provide forage and feed.
Crops Multiply Herbicide Use (p. 5):
Paris Reidhead delves into the data that shows reliance on genetically-modified crops has caused overall increased use of agricultural pesticides and herbicides.
USDA: History of Failed
"Regionalization" (p. 6):
Writer Jim Eichstadt details in five prior instances, USDA’s efforts to “regionalize” beef imports from nations that were infected with Foot-and-Mouth Disease have failed because of subsequent flare-ups of FMD in those supposed “safe” areas of the five countries. Beware!
Mid-June 2015 Crop Tour
Reveals Mounting Corn Belt Weather
Concerns (p. 7):
Writer Jim Eichstadt tracked crop conditions over a 2,000-milk trip through the heart of agricultural America in mid-June.
Dean Foods Among Investors Pursuing A2 Milk Corp. (p. 8):
A group of investors – from Australia, China, and U.S.’ Dean Foods – are chasing after a take-over of the A2 Milk Corp. of New Zealand. Interesting …
United Nations Codex Alimentarius Reviews rbGH at July Session (p. 8): The United Nation’s food safety branch, the Codex Alimentarius, reviewed issues concerning residue levels of recombinant bovine growth hormone at its early July meeting in Geneva, Switzerland. The agency will deliberate maximum levels of residues.
Prices Weaker; Butter Holding, Cheddar Down & Up (p.
The dairy commodity scene has uncertainty, but one thing’s for sure: prices for dairy protein powders are in the dumpster, since the world is glutted with product. All eyes are watching the impact of Drought upon California’s upcoming months’ milk production.
Grain Prices Shoot
Up as Weather, USDA Crop Outlook Turn Sour (p. 10):
Jim Eichstadt discusses the factors behind recent weeks’ upwards moves in grain prices.
Monsanto's Dicambia Intentions (p. 10):
According to press reports, biotech giant Monsanto is planning to produce a Dicambia pesticide, since biotech controls for certain crop pests are less and less effective.
2,4-D Herbicide as Group 2B Carcinogen (p. 10):
The cancer research baranch of the United Nation’s World Health Organization has classified the herbicide 2,4-D as a Group 2B carcinogen. That means scientific research considers 2,4-D a “likely” cancer-causing agent.
Responding Intelligently to Vilasack's Beef
Import Insanity (p. 11):
How to respond rationally to irrational behavior? Pet Hardin’s puzzling over that one.
Beef Price Equity? Forget USDA! (p. 11):
Pete Hardin suggests that beef producers say to heck with USDA and develop a private logo to signify U.S. born and raised beef products for consumers.
Mid-June 2015 Corn Belt Crop Tour Photos and Captions
We feature crop photographs to accompany Jim Eichstadt’s mid-June survey of crops across the central U.S.
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