14 CapitalPress.com
March 13, 2015
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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