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January  Issue No. 390

Inside this months issue...

The Really Big Issues Facing Dairy in 2012 (p. 1):
    Pete Hardin lists his perceived eleven biggest issues facing dairy in 2012. #1? What else … the weather.

Lactose Emerges as Important Residual Value in Milk (p. 2):
    John Bunting details how lactose – milk sugar – has gained value and export use in recent years. Interesting …

Global Dairy Trade Auctions: Up and Down (p. 2):
    Several dairy commodities’ prices were up in recent Fonterra-sponsored electronic auctions – buttermilk powder, Cheddar, and milk protein concentrate. Meanwhile, Skim Milk Powder prices declined.

December Class III Price $18.77 – Class IV $16.87 (p. 2):
    Declines in dairy commodity prices in recent months are pulling down manufacturing class milk prices in USDA’s federal milk order system.

DFA’s 11 Dairy Import Licenses Revealed (p. 3):
    Who else, but our friends at Dairy Farmers of America? The nation’s biggest dairy farmers’ cooperative holds 11 dairy import licenses … despite receiving subsidies to export U.S. dairy products.

1/6/12 Wall Street Journal Finally Reports Seed Corn Shortage (!) (p. 3):
    At long last, four months after The Milkweed first reported the story in depth, the Wall Street Journal finally smelled the coffee and reported the U.S. 2011 seed corn crop failure – estimating a 25-50% loss.

Farm Bill in 2012? AFBF Wants Insurance-Based Programs (p. 3):
    The American Farm Bureau Federation – an insurance consortium disguised as a farmers’ organization – announced it is now looking hard at a “risk-management insurance” package of programs to undergird farm programs in the upcoming farm legislation debate. What would one expect an insurance company to do???

Feature Story: “Stuff” (Sometimes Illegal) In Cheese Boosts Volume by About 30% (P. 4):
    This month’s feature story looks at how U.S. cheese yields in recent years appear about 30% greater than one would expect from the volume of farm milk dedicated to cheese vats. Read the full story here.

Fraudulent: Electronic Deed Registry Threatens U.S. Housing Market (p. 5):
    In one sentence: The Mortgage Electronic Registration Systems (MERS a firm created to “bundle” packages of residential mortgages for resale and holding more than 50% of all residential mortgages in the United States – has failed for many years to properly register and pay fees to counties for title registration changes.

USDA’s Final Report on 2011 Crop Production: Corn/Soy/Wheat/Hay/Cotton Harvests All Down (p. 5):
    USDA’s final report for 2011 crops found declines in virtually every major and minor crop in this nation.

Raw Milk: A Surprisingly Potent and Cheap Fertilizer (p. 6):
    Paris Reidhead writes about experiments by farmers in Missouri and Nebraska that have demonstrated raw milk’s value as a fertilizer. Only three to five gallons of milk per acre are needed. When combined with fish emulsion, the impact on soil fertility is amazing.

Federal Judge Refuses to Certify Class in Northeast Antitrust Case (p. 7):
    Ouch. Federal Judge Christina Reiss declined to certify the class sought by plaintiffs in the Northeast antitrust trial that’s based in Burlington, Vermont. Reiss seemed to leave the door open for plaintiff’s attorneys to try again.

Foul-Up in Antitrust Payouts to Northeast Producers (p. 7):
    The firm in charge of mailing out payments to Northeast dairy farmers who qualified for compensation under the $30 million settlement from Dean Foods has goofed. Some checks sent out near Christmas were too high, others were too low. A second round of checks will be issued, pending the court’s approval.

Thirsting for Justice in America’s Dairyland (p. 8-12):
    In a blockbuster story, organic farmer Tony Ends writes about the battle by a local township to try to enforce water quality monitoring for a big dairy that’s a proven stream water polluter. This case is now awaiting a decision from the Wisconsin Supreme Court. Read the entire story here.

Organic Milk Shortages Reflect Producer Pricing Inequities, Opportunities (p. 12):
    Particularly in the Northeast, organic dairy producers are bleeding red ink, due to high grain costs. This article lays out the players, the inequities and the opportunities.

Organic Grain Guru: Milk Producers Need $5 More (p. 12):
    Mary-Howell Martens, who co-owns Lakeview Organic Grain (Penn Yan, New York), expresses her insight that organic dairy producers in the Northeast need another $5 per cwt. in milk payments, to cover their feed costs.

Dairy Commodity Scene Ugly: No Place to go but Up? (p. 14):
    Pete Hardin covers the dairy commodity price and marketing scene. Prices are down, seriously down.

Let me share a few serious thoughts … (p. 15):
    Editor Pete Hardin professes why he’s lost his patience with dairy’s fools, incompetents, and grand larcenists. The lack of integrity of certain ingredients in products such as cheese and yogurt leave little tolerance for claims that “surplus” cheese is causing low farm milk prices.

Winter Brewing Global Corn Supply Worries for 2012 & Beyond (p. 16):
    Unduly hot, dry weather in corn-growing regions of South America is causing additional nervousness about global grain stocks.

Federal Ethanol Subsidy Mercifully Kaput (p. 16):
    On December 31, 2011, the 45-cent per gallon federal ethanol blending subsidy died. That event will safe U.S. taxpayers about $5-$6 billion dollars annually.


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