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14 CapitalPress.com March 13, 2015 Subscribe to our weekly dairy or livestock email newsletter at CapitalPress.com/newsletters Dairy February benchmark milk price down $7.89 from 2014 FDA study finds little evidence of antibiotics in milk WASHINGTON (AP) — In an encouraging development for consumers worried about anti- biotics in their milk, a new Food and Drug Administration study showed little evidence of drug contamination after surveying al- most 2,000 dairy farms. In response to concerns, the agency in 2012 took samples of raw milk from the farms and test- ed them for 31 drugs, almost all of them antibiotics. Results released by the agency Thursday show that less than 1 percent of the total sam- ples showed illegal drug residue. Antibiotics and other drugs can end up in milk when they are used on dairy cows to keep them healthy. Small levels of some drugs are allowed in milk, but residues that go beyond certain thresholds are illegal. “Overall this is very encour- aging and reinforces the idea that the milk supply is safe,” said the FDA’s William Flynn, who led the study. He said the agency will use the findings to try and reduce the drug contamination even more. Public health groups are con- cerned about the levels of animal antibiotics that make it into food because consuming the drugs could potentially be harmful to humans. Repeated exposure to antibiotics can lead germs to be- come resistant to the drugs so that they are no longer effective. Drug residues can also be harmful if they prompt allergies or other re- actions. The industry does regular test- ing for some of the drugs the FDA tested, but public health advocates had expressed particular concern about milk that had come from dairy farms that had repeatedly tried to sell older cows for slaugh- ter with illegal levels of antibiotic residue in their tissue. So the FDA study focused on those farms with previous violations, with about half of the samples coming from them and half from a control group. By LEE MIELKE For the Capital Press Courtesy of United Dairymen of Idaho The first participants in the new United Dairymen of Idaho dairy ambassadors program pose for a photo during their first session in Boise on March 2. From left to right are Pete Doornenbal of Cald- well, Ted VanderSchaaf of Kuna, Craig Vanderham of Wendell, Clint Jackson of Meridian and Josh Webb of Declo. Idaho dairy group prepares future leaders By CAROL RYAN DUMAS Capital Press United Dairymen of Idaho is helping the newest generation of dairy leaders to be informed, prepared and effective in repre- senting their industry and keep- ing it on a sustainable course. The organization is breath- ing new life into its Ambassa- dor Program, adding structured leadership training and industry speakers to its board-member shadowing program. “We’re really excited about making this a benefit for the future leaders of the dairy in- dustry,” said Cindy Miller, UDI senior director of producer rela- tions and consumer confidence. The program focuses on pro- viding information and training to build leadership and commu- nication skills and knowledge of the dairy industry, she said. “It’s a unique opportunity for dairy farmers,” she said. Ambassadors’ sessions are held quarterly over a year and include programming to inspire, challenge, engage and equip participants to take on leader- ship roles, according to the pro- gram’s mission. In addition to leadership training and communication skills, the sessions are devoted to understanding the current business environment and fu- ture trends affecting consumer demand in the U.S. and world- wide. It will also include ses- sions on the dairy checkoff, pro- gram initiatives and strategies. “Many (farmers) are focused on the dairy industry on a micro level — things affecting their own operations. What we are doing is giving dairy farmers interested in taking a leadership role a broader perspective and access to national leaders to present big ideas as to what is happening on the global stage,” Miller said. “Much of our milk in Idaho gets sent outside of our borders, so understanding exports and the global market is very im- portant to our farmers and our industry partners,” she added. The program kicked off last week with the first five ambas- sadors meeting in Boise to get a deeper understanding of UDI and hear presentations from na- tional speakers. They also par- ticipated in a UDI board meet- ing. The Agriculture Department announced the February Fed- eral Order Class III milk price at $15.46 per hundredweight. That’s down 72 cents from January, $7.89 below February 2014, $1.68 above the compa- rable California Class 4b cheese milk price, and equates to about $1.33 per gallon, down from $1.39 in January. It is the lowest Class III price since May 2012’s $15.23. Class III futures indicate this will not be the bottom for 2015, as the March contract settled Tuesday at $15.42, April settled at $15.47, and May at $15.40. The turnaround begins in June at $16.03 and peaks in October at $17.40 per cwt., $7.20 per cwt. less than the 2014 peak that occurred in September. The two-month Class III average now stands at $15.82, down from $22.25 at this time a year ago and compares to $17.70 in 2013. The February Class IV price is $13.82, up 59 cents from Jan- uary but $9.64 below a year ago. The Class IV average, at $13.53, is down from $22.88 a year ago and compares to $17.69 in 2013. Cash cheese inches higher The 40-pound Cheddar block cheese closed the first Friday of March at $1.56 per pound, up 1 1/2-cents on the week but 73 1/4-cents below a year ago. It inched up a half-cent Monday but was unchanged Tuesday, holding at $1.5650 per pound, the highest price since Jan. 13. The 500-pound Cheddar bar- rels closed Friday at $1.4950, up a quarter-cent on the week, 75 1/2-cents below a year ago, and a larger than normal 6 1/2-cents below the blocks. The barrels jumped 3 cents Monday and ticked up another 2 cents Tues- day, hitting $1.5450, reducing the spread to a more typical 2 cents. Four cars of block trad- ed hands last week and none of barrel. Cash butter jumped 8 1/2-cents Monday, then lost 3 cents Tuesday, and closed Friday Dairy Markets Lee Mielke Online Federated’s press release: http://mailer.gate39passport. com/t/r-l-qiisjd-thjjfadh-c/ Fonterra’s press release: at $1.75, up 5 1/2-cents on the week but 13 cents below a year ago. Thirty-two cars were sold on the week. Spot butter lost 2 cents Monday and gave up another penny and a half Tuesday, slip- ping to $1.7150 per pound. Cash Grade A nonfat dry milk didn’t fare quite so well, finishing last week at $1.0250 per pound, down 13 cents on the week, with 31 cars finding new homes. The powder was un- changed Monday and Tuesday. Dairy blackmail threatened Police have revealed a threat to poison New Zealand milk products in an apparent protest over pest control. Our thanks to HighGround Trading’s Eric Meyer, who reported, “It was re- vealed that Fonterra and Feder- ated Farmers received threaten- ing letters last November, along with milk packages that tested positive for the poison. While police did say this threat could be a hoax, the New Zealand government made very clear that all potential threats like this are taken seriously.” Prior to the announcement, trading of dairy securities and derivatives on New Zealand list- ed exchanges were halted. Both Fonterra and Federated Farmers issued press releases acknowl- edging the criminal threat to their organizations while stating safety testing and precautions have and are being taken. Fon- terra CEO Theo Spierings was quoted saying in a press con- ference that the criminal threat was “blackmail against New Zealand, and as an industry we won’t tolerate it.” “We can fully assure our cus- tomers and consumers that all of our milk and products are safe and of high quality, and our sup- ply chain continues to be secure and world-class. We are play- ing our part in helping the gov- ernment manage the criminal threat, as is the rest of the dairy industry. We have taken imme- diate and decisive steps to give http://mailer.gate39passport. com/t/r-l-qiisjd-thjjfadh-q/ our customers and consumers added confidence — including increased testing and security measures.” USDA lowers 2015 milk estimate The Agriculture Department lowered its 2015 milk produc- tion forecast for the third time in a row in its latest World Ag- ricultural Supply and Demand Estimates report issued Tuesday, blaming slower growth in out- put per cow more than offsetting faster herd expansion. The report shows 2015 pro- duction and marketings pro- jected at 211.1 billion pounds and 210.1 billion pounds, re- spectively. Both estimates are down 400 million pounds from a month ago. If realized, 2015 production and marketings would be up about 2.5 percent from 2014. Both fat and skim-solids ex- ports for 2015 were reduced as export demand is hampered by a strong dollar and increased competition from other export- ers. Fat basis imports are higher on expectations of greater but- terfat imports. However, robust domestic demand is expected to support increased product use. Product price forecasts for butter and nonfat dry milk are higher, supported by demand and price strength to date. Cheese prices are unchanged at the midpoint but the range is narrowed. Whey is lower on weaker demand. The Class III milk price was lowered on reduced whey pric- es. Look for a range of $15.95- $16.55 per cwt., down from the $16.30-$17.00 expected a month ago, and compares to $22.34 in 2014. The Class IV price is higher due to higher nonfat dry milk prices and but- ter prices. It is projected to av- erage $15.30-$16.00, up from the $15.10-$15.90 expected last month and compares to a $22.09 average in 2014. Davisco increases production capacity at Idaho plant By CAROL RYAN DUMAS Capital Press JEROME, Idaho — Da- visco Foods, a business unit of Agropur Inc., has com- pleted a significant increase in production capacity for alpha-lactalbumin at its Je- rome Cheese facility. Alpha-lactalbumin is a 11-5/#14 whey protein isolate with specific attributes and is in high demand with infant formula companies and mothers who want it includ- ed in their babies’ formulas, Davisco President Jon Da- vis said in a telephone in- terview. It contributes to the health benefits parents want for their children, such as weight gain, muscle gain and the ability to fight off infections, he said. The biggest part of Da- visco’s self-developed pro- prietary extraction process is the level of purity it is able to extract from whey, a byprod- uct of the company’s cheese manufacturing, he said. 11-7/#4N