July 8, 2016
CapitalPress.com
9
Dairy/Livestock
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Dairy
Markets
Meat, poultry industry fuels economic activity
Lee Mielke
By CAROL RYAN DUMAS
Online
Capital Press
By LEE MIELKE
For the Capital Press
Cash dairy markets saw
block Cheddar cheese climb
to $1.66 per pound last Thurs-
day, the highest price since
November 2015, then drop
to close Friday, July 1, at
$1.6250 per pound, still up 11
1/4-cents on the week and a
half-cent above a year ago.
The barrel Cheddar shot
up to $1.71, the highest lev-
el since October 2015, then
retreated, closing at $1.67.
That’s up 13 1/2-cents on the
week, 8 3/4-cents above a year
ago, and 4 1/2-cents above the
blocks, despite 28 cars of bar-
rel exchanging hands on the
week at the CME plus six of
block.
The markets were closed
for the 4th of July Monday
but the blocks gave up 3 cents
Tuesday on an offer, slipping
to $1.5950. The barrels held
at $1.67, an unsustainable 7
1/2-cents above the blocks.
Cheese production is
steady in the Central region,
according to Dairy Market
News. Milk intakes remain
high, and plant managers re-
port little change in milk com-
ponents and yields. Demand
from retail and foodservice
are both strong. Cheese stocks
are seeing relief as strong
sales prevail.
Cash butter closed Fri-
day at $2.35 per pound, up a
half-cent on the week and 41
cents above a year ago, with
six cars trading places on the
week at the CME.
Tuesday saw the butter
give back a penny on an offer
and slip to $2.34 per pound.
July is National Ice Cream
month and the time of year
that generally sees strong
sales. Butter manufacturers
are reportedly selling cream
for America’s favorite dessert
instead of sending it to the
churn, knowing butter stocks
are well supplied.
Cash Grade A nonfat dry
milk inished at 83 1/2-cents
per pound, down 6 1/2-cents
on the week but a quarter-cent
above a year ago. Thirty-six
cars traded hands on the week
at the CME, 17 on Friday.
The spot powder jumped 4
cents Tuesday, climbing back
to 87 1/2-cents per pound.
GDT prices slip
This
week’s
Global
Dairy Trade auction saw
the weighted average for
all products offered inch
back 0.4 percent after hold-
ing steady on June 15, and
jumping 3.4 percent on
June 1.
Buttermilk powder led
the losses again, down 7.5
percent, following a session
leading loss of 6.6 on June
15.
Butter was down 3.1 per-
cent, after gaining 5.3 per-
cent last time. Whole milk
powder was down 1.6 per-
cent, after dropping 4.5 per-
cent last time. Lactose was
off 1.2 percent and Cheddar
cheese inched 0.5 percent
lower, after leading the gains
last time at 6.9 percent.
For the report, visit: www.
meatfuelsamerica.com
ly 1.9 million people, paying
an average annual salary of
$47,332. The economic impact
of those jobs and wages adds
up to more than $348 billion
per year.
But the economic impact
is much broader than direct
employment in processing
and packing, importing, sales,
packaging and distribution.
It also includes the economic
impact of suppliers to the in-
dustry and the total multipli-
er effect on the economy of
spending by employees of the
industry and its suppliers.
That total effect amounts to
tributor of funding to govern-
ment, he said.
That tax analysis shows
direct taxes paid by irms
and their employees contrib-
ute more than $108.4 billion
in federal revenues to federal,
state and local governments
and $3.26 billion in state taxes
from the consumption of meat
and poultry.
Those taxes contribute to
such things as national de-
fense, schools, health care,
roads, veteran beneits and
even the government regula-
tion of the meat and poultry
industry, Carpenter said.
The analysis shows the
industry provides millions of
good jobs in every state and
every sector of the U.S. econo-
my and contributes to the pub-
lic inances of communities
across the country, he said.
The top states in both direct
and multiplier economic im-
pact are led by California, fol-
lowed by Texas, Illinois, North
Carolina, Georgia, Pennsylva-
nia and Arkansas.
The analysis is the latest
in a series to keep tabs on the
health of the industry and pro-
vides information to explain to
people how important the in-
dustry is to the U.S., Carpenter
said.
The evaluation enables the
industry in showing consum-
ers, lawmakers, public oficials
and other industries where the
meat and poultry industry its
in, he said.
“It’s just prudent for us to
have a good grasp of the im-
portance of our industry,” he
said.
North Dakota farm group wants price protections for milk
BISMARCK, N.D. (AP)
— The North Dakota Farm-
ers Union will fight for
better price protections for
milk to stimulate the state’s
slumping dairy industry, the
group’s president said.
Watne said the price
paid by consumers is not
representative of the price
paid to producers. The ad-
ditional cost is “added by
people beyond the farm
gate,” he told the Bismarck
Tribune.
Watne said his group
has joined Farmers Union
groups from Wisconsin,
Minnesota, South Dakota
and California to lobby law-
makers for a higher price
point that will cover the cost
of milk and “allow dairies
to survive.”
The national average
price received by farmers
for milk fell to $14.5 per
hundred pounds in May
compared with $16.8 a year
ago and $24.2 per hundred
pounds two years ago in
May, according to U.S. Ag-
riculture Department data.
“It doesn’t happen over-
night,” Watne said of getting
price protections started.
“But we’re out in (Washing-
ton) D.C. having those con-
versations already.”
The group, which has
more than 40,000 members,
also wants farmers to have
ownership in any new pro-
cessing plant built in the Up-
per Midwest to add to their
profits as the raw product is
processed. He points to sim-
ilar ownership structures in
sugar beet processing.
The North Dakota Farm-
ers Union led the campaign
and spent more than $1
million to reverse the Leg-
islature’s decision last year
to exempt pork and dairy
operations from the state’s
anti-corporate farming law.
North Dakota voters over-
whelmingly rejected the law
last month.
State agriculture data
show the number of dairy
farms in North Dakota has
decreased from about 540
in 2002 to fewer than 90 at
present.
Capital Press ile
Cows feed at a Wendell, Idaho, dairy. Farmers Union groups from North Dakota, Wisconsin, Minne-
sota, South Dakota and California say they will lobby lawmakers for a higher price point that will cover
the cost of milk and “allow dairies to survive.”
McMinnville co-op members accept Northwest Dairy Association deal
By ERIC MORTENSON
Capital Press
Members of the Farmers
Cooperative Creamery in Mc-
Minnville, Ore., have accepted
an agreement that allows dairy
farmers to apply for member-
ship in the much larger North-
west Dairy Association of Se-
attle.
FCC dairies have 60 days
to decide whether to apply.
The two organizations have
cooperated informally for
several years on processing
and marketing, according to a
news release from FCC execu-
tive Mike Anderson. FCC has
about 60 dairy members.
Northwest Dairy Associ-
ation, also a cooperative, has
about 500 dairy members in
Washington, Oregon, Idaho,
Montana, Utah and Northern
California. Its members pro-
duce about 8.9 billion pounds
of milk annually. The cooper-
ative’s marketing and process-
ing subsidiary is Darigold Inc.,
which operates 11 processing
plants in the Northwest.
A Farmers Cooperative
Creamery plant in McMin-
nville is not included in the
agreement with NDA. Ander-
ROP-32-52-2/#17
Cash cheese
takes off,
then falters
Larger than the U.S. truck-
ing and fast-food industries
and nearly as large as the fed-
eral government — minus the
Defense Department — the
domestic meat and poultry
industry generates more that
$1 trillion annually in total
economic output and accounts
for 5.6 percent of the gross do-
mestic product.
That economic impact is
validation of the signiicance
of the industry, according to
the North American Meat In-
stitute, which commissioned
an economic analysis of the
industry by John Dunham &
Associates.
The analysis found the in-
dustry directly employs near-
5.4 million jobs, $257 billion
in wages and the $1.02 trillion
in economic output.
“The industry is very proud
of what it does — with or
without this analysis — they
provide high-quality food. The
analysis just ratiies how im-
portant they are,” said Barry
Carpenter, Meat Institute pres-
ident and CEO.
The impact on employment
is something the industry cer-
tainly has an interest in, but it
is also of interest to federal and
state oficials, he said.
“It’s good information for
lawmakers,” he said.
The analysis shows what
the industry contributes to the
country. It’s a substantial part
of the economy, but the tax
information also shows the
industry is a substantial con-
son, the FCC executive, said
that does not necessarily mean
the plant will close.
In an email, Anderson said
the agreement with NDA “is
an extension of a relationship
that has been developing for a
number of years and is driv-
en by common interests and
good business opportunities
and planning for a bright and
secure future for all dairy-
men.”
Members of a small
McMinnville, Ore.,
dairy co-op have been
offered membership
in Seattle-based
Northwest Dairy
Association. Darigold,
which has 11 plants,
including this one in
Portland, is an NDA
subsidiary.
Eric Mortenson/Capital Press