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July 3, 2015 CapitalPress.com 11 Dairy Subscribe to our weekly dairy or livestock email newsletter at CapitalPress.com/newsletters Community leaders, public tour Meridian dairy spokeswoman Cindy Mill- er. “We can show pictures or videos but it’s different when MERIDIAN, Idaho — they have the on-farm experi- The public and community HQFH´ leaders got a close-up look During the day-long event, at a dairy June 23, the latest community and business lead- effort by the industry to pro- ers and then the public were vide consumers with an on- taken on a tractor hay ride farm experience. around the operation while “A lot of people are want- co-owner Clint Jackson ex- ing to know how their food plained how the dairy oper- is made and where it comes ates and answered questions. from and there’s no better The Jackson Family Farm, way to do that than to actu- which has 600 milking cows ally have them on a farm so and 500 calves and also grows WKH\FDQVHH¿UVWKDQG´VDLG beans, alfalfa, mint and corn, United Dairymen of Idaho is one of a handful of dairies By SEAN ELLIS Capital Press in Meridian. The operation is fami- ly-owned. Three generations of Jacksons were on hand to help with the tour. The event kicked off with an on-farm breakfast for com- munity and business leaders. Jackson said it was a good opportunity to remind them of how important agriculture is to the state. “I think it’s important that the political leaders and the public in general realize how important agriculture and dairy agriculture are to the ,GDKRHFRQRP\´KHVDLG He reminded tour partici- pants that this part of South- western Idaho was formerly just sagebrush and desert and farmers are the ones who cre- ated the valley’s irrigation system “that allows Meridian to be green now and have the EHDXWLIXOWUHHVWKDWZHKDYH´ Jackson said he was happy to answer any questions peo- ple might have about animal welfare and milk quality. “People have questions about how the cows are cared for and they want to know that the milk they buy is a quali- W\DQGVDIHSURGXFW´KHVDLG “We want to answer some of those questions and maybe UHPRYHVRPHRIWKHP\VWHU\´ Rick Naerebout of the Idaho Dairymen’s Associa- tion said the tour was part of a larger push by the industry to educate consumers and the media about what happens on dairy operations. ³7KHUH¶V GH¿QLWHO\ D FRQ- certed effort by United Dairy- men of Idaho to reach out to media and also the general public to help them under- stand our industry and what KDSSHQVRQDGDLU\IDUP´KH said. UDI was criticized last year for a letter it sent to hun- dreds of members that was interpreted by some groups as a suggestion to deny media access to their operations. 8', RI¿FLDOV GHQLHG WKDW was the intent and said they encourage dairy visits but they need to be coordinated because of the inherent dan- gers when tractors and ma- chinery are operating, as well as food safety issues. The state’s industry has since held several tours of dairy operations for media and the public. U.S. gets none of WOW expands dairy storage, distribution in Idaho Japan’s butter buy By CAROL RYAN DUMAS Capital Press By RICHARD SMITH For the Capital Press TOKYO — New Zealand got the lion’s share of an ex- tra 10,000 ton butter import by Japan. But whereas a special import of 7,000 tons last year included 25 tons from the U.S., no U.S. butter won bids this year. Under bids on tenders held June 9, 11, 16 and 25, Japan selected 7,569.8 tons of New Zealand butter. Other countries with winning bids are Holland (915 tons), Germany (726.8 tons), Argentina (524.4 tons), France (192 tons), Switzerland (47 tons) and Belgium (25 tons). Ruling out inferior qual- ity products, bids were ac- cepted on a lowest-priced basis. In addition, bids for an extra import of 5,000 tons of nonfat dry milk were tak- en June 6. Japan’s Ministry of Agri- culture, Forestry and Fish- eries announced May 27 its decision to make the extra import. The butter will be im- ported by the end of October to stabilize butter supplies toward Christmas, when de- mand by the confectionery industry peaks. In the Uruguay Round that led to the creation of the World Trade Organiza- tion, Japan committed to ³PLQLPXP DFFHVV´ 0$ import purchases for desig- nated dairy commodities of up to 137,000 tons in milk equivalent calculation. The commodities include butter, nonfat dry milk, ed- ible whey, butter oil and dairy spreads. The special imports of butter have and non fat dry milk have come on top of the MA purchases. Butter shortages last year troubled shoppers, es- pecially in the run-up to the Christmas cake-baking season. Stores rationed out butter, and shoppers often faced empty shelves. Japan Dairy Association (J Milk) managing director Tetsuo Ishihara said releas- ing the extra import into the market will create a balance between supply and de- mand. But the extra import will only be enough to meet this year’s needs, Ishihara said. “Assuming there is no change in (Japan’s) raw milk production, we will probably need to import DERXW DV PXFK QH[W \HDU´ he said. JEROME, Idaho — State, ORFDO DQG FRPSDQ\ RI¿FLDOV were on hand June 24 at the groundbreaking of a new fa- cility to expand storage and distribution of WOW Logistics, which serves major manufac- turers of dairy products in the Magic Valley and from coast to coast. The new 193,000-square- foot ambient storage facility, expected to be complete in Janu- ary, will expand WOW’s capac- ity at Jerome to nearly 626,000 square feet, including more than 82,000 square feet of refrigerat- ed space, said Howard Kamerer, WOW president and CEO. The entire capital expendi- ture for the project, including racking, is in the $16 million range, he said. The new dry-storage facility dedicated to whey powder and other specialty milk powders will be occupied by Davisco Foods International, parent company of Jerome Cheese, he said. The new facility is a key performance indicator for the health of dairy-food manufac- turing in the region, he said. It will be at 100 percent occupancy within 60 days of completion, meaning WOW is ³DOUHDG\ RXW RI VSDFH´ ZKLFK UHÀHFWV RQ WKH LQGXVWU\ DV D whole in the Magic Valley, he said. Carol Ryan Dumas/Capital Press WOW Logistics President and CEO Howard Kamerer talks with Southern Idaho Economic Development Organization Executive Director Jan Rogers during groundbreaking ceremonies for WOW’s 193,000-square-foot expansion of its dairy-foods warehouse and distribution facility in Jerome, Idaho, on June 24. “Large manufacturing com- panies are driving this dairy in- GXVWU\´KHVDLG WOW’s expansion is just one of many examples of ag-related economic growth in the Magic Valley, said Megan Ronk, Idaho Department of Commerce COO. Headquartered in Appleton, Wis., WOW began operations in Jerome in 2002, following the success of the dairy industry in Idaho and its customer base, which included Davisco and Glanbia Foods doing business with WOW in other parts of the country, Kamerer said. The company expanded its Jerome facility in 2004 and 2008, operating as a public warehouse, or third-party logis- Cheese prices continue to lose ground By LEE MIELKE For the Capital Press C ash cheese lost more ground the last full week of June Dairy Month. The Cheddar blocks closed Fri- day at $1.64 per pound, down 6 cents on the week and 38 cents below a year ago. They lost a penny and a quarter on Monday and three-quarters on Tuesday, dipping to $1.62 per pound, the lowest level since May 15, 2015, as traders await- ed Wednesday’s Global Dairy Trade auction. The Cheddar barrels were down 3 1 / 2 -cents last week, closing Friday at $1.6250, 38 1/2-cents below a year ago. They rolled 2 1 / 2 cents lower on Monday and a penny and three quarters Tuesday, to $1.5825, the lowest barrel price since March 30, 2015. Twenty cars of block traded hands last week at the CME and 29 of barrel. FC Stone dairy broker Dave Kurzawski pointed out that last week was the sixth week in a row that barrel cheese has Total cheese output averaged up 2.5 percent during the peri- RG´ The good news, according Lee Mielke to the DFMA, is that “domes- tic demand is growing too, and traded in double-digit volumes ¿QDOO\DWUHWDLO$IWHUVOXJJLVK and he expects more cheese to SHUIRUPDQFHGXULQJWKH¿UVW come. weeks of the year, retail natural More milk is entering the cheese sales shot up 6.1 per- cheese vat due to schools clos- cent (an additional 12 million ing, putting pressure on prices, pounds) during the four weeks but cheese production will not ending May 17, according IROORZ ³QRUPDO´ VHDVRQDO GH- to IRI data; the largest year- clines, according to the June over-year increase since Janu- 19 Dairy and Food Market An- ary 2014. One year ago, sales alyst. were off 2.7 percent. Processed “With more-than-enough cheese sales decreased just 2.2 milk in the Midwest and North- percent this period. Interesting- east, cheese plants will continue ly: Natural cheese sold at an av- to operate near capacity far lon- erage price of $5.26 per pound, ger than typical. Cheesemakers down just 11 cents versus one will be adding nonfat solids year ago and up eight cents (dry milk, NFDM or condensed from the previous four-week skim) back into the vat as soon SHULRG´ as capacity opens up. As you Cash butter jumped 4 probably remember, “fortifying 1 / 4 -cents last Monday, only to WKHYDW´KHOSHG86$QRQIDWGU\ drop 6 cents Tuesday follow- milk usage (or cheese plants ing the May Cold Storage data purchasing for future use) to and lost 1 3 / 4 -cents Wednesday. increase 39 percent year over It regained a penny Thursday year during First Quarter 2015. and 2 1 / 2 -cents Friday to close at Dairy Markets 27-4/#6 $1.9150 per pound, unchanged on the week but 47 1 / 2 -cents be- low a year ago, when it jumped 15 1 / 2 -cents. The spot butter tacked on a penny on Monday but gave back three-quarters on Tuesday, to close at $1.9175 per pound. Eight cars traded hands last week at the CME. Butter output in the Central region is trending lower, ac- cording to Dairy Market News. Some producers report they are running into competition from Class II manufacturers for local cream supplies as ice cream-frozen dessert produc- tion gears up. tics provider, for other regional dairy manufacturers as well, including Idaho Milk Products, Dairy Farmers of America, Darigold and Brewster Cheese, he said. WOW Jerome facility also provides services for West Coast dairy manufacturers moving product eastward and East Coast manufacturers moving product westward. Its nationwide customers include such companies as Schreiber Foods and T.C. Jacobi as well as artisan cheese makers, he said. Nationwide, the company maintains 6 million square feet of warehouse space, including 22 million cubic feet of refrig- erated area, with 10 locations in Wisconsin and the Jerome fa- cility in Idaho. It employs 208 people nationwide. It is also the largest private ¿QDQFLHU RI GDLU\ SURGXFWV LQ the U.S. and one of the largest in the world, providing cash ÀRZWRVRPHRIWKHODUJHVWGDLU\ producers in the U.S., he said. Jerome Mayor Dave Davis said WOW has been a “fan- WDVWLF´ FRPPXQLW\ SDUWQHU DQG thanked the company, his staff and local and regional econom- ic development organizations for the company’s continued growth in Jerome. Kamerer extolled the efforts of state, city of Jerome and Je- URPH &RXQW\ RI¿FLDOV DV ZHOO as Southern Idaho Economic Development Organization for the collaboration critical to the project. The National Dairy Producers Organization, Inc. The Producer’s Voice Deflategate for Dairy Farmers (USDA Projections) 2015 2016 Class 3 and 4 milk price combined (CWT) $15.40 $16.30 2014 class 3 and 4 combined (CWT) 22.72 22.72 Projected price deflation (CWT) $ 7.32 6.42 Hold those accountable who manage over 80% of U.S. milk production with 31 dairy co-op members and dozens of milk buying customer members. Call National Milk Producers Federation at 703-243-6111 or your local NMPF representative from the list below: Randy Mooney - DFA Ken Nobis - MMPA Adrian Boer - NDA Mike McCloskey - SMP Keith Murfield - UDA Doug Nuttleman - DFA Pete Kappelman - LOL Neal Rea - AMI Steve Schlangen - AMPI Ed Welch - AMPI Jimmy Kerr - CMPI William Beeman - DFA Brian Hardy - DFA Jerrel Heatwole - DFA Jackie Klippenstein - DFA George Mertens - DFA Wayne Palla - DFA Jeff Raney - DFA George Rohrer - DFA Dan Senestraro - DFA Bill Siebenborn - DFA Rick Smith - DFA Greg Wickham - DFA John Wilson - DFA Scot Meyer - ECC Michael Anderson - FCC David Cooper - FFDC Clint Fall - FDA Michael Doyle - FFUSE David Scheevel - FFUSA Peter Janzen - LOL Cornell Kasbergen - LOL Tom Wakefield - LOL Jim Baird - LSMP Jay Bryant - MDVA Dennis Tonak - MWDC Jim Wegner - NDA Jim Werkhoven - NDA Paul Mills - PFPI Tom Pittman - PMI Brad Bouma - SMPI Joe Wright - SMPI Ralph McNall - SACC Pat Schroeder - SVFC Lawrence Webster - UNC It is time for a business plan that achieves the sustainable profitability for dairy farmers. The National Dairy Producers Organization has such a plan. JOIN NDPO prevent the culling of U.S. dairy farmers Visit our website at www.NationalDairyProducersOrganization.com or call us at (949)375-4450 27-7/#18 27-7/#5