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August 19, 2016 CapitalPress.com 9 Dairy Subscribe to our weekly dairy or livestock email newsletter at CapitalPress.com/newsletters U.S. dairy exports up in volume in June By CAROL RYAN DUMAS Capital Press U.S. dairy export volumes increased 5 percent in June year over year, led by record shipments of whey protein concentrate. Shipments of milk pow- ders, cheese, butterfat, whey and lactose totaled 161,882 metric tons, equivalent to 14.9 percent of U.S. milk produc- tion in June, according to the U.S. Dairy Export Council. Those exports included 27,926 metric tons of WPC, up 52 percent over June 2015. Total whey exports were up 25 percent to 47,479 tons, with a 13 percent boost in whey protein isolate and a 2 percent decline in dry whey. About half of the WPC exports went to China, which bought a record amount in June, said Alan Levitt, US- DEC vice president of com- munications and market anal- ysis. “China is always by far our largest customer for WPC, but (its) month-to-month pur- chases luctuate,” he said. The country’s large June purchase could be a matter of inventory management, he said. USDA also reported a huge jump in exports of whole milk powder in June, with vol- umes more than tripling year over year. USDEC, howev- er, thinks those exports were overstated. Nearly all of that volume was reportedly sold to Mexico, but Mexican im- port data doesn’t corroborate it. USDEC is checking into it, but it was probably skim milk powder misclassiied as U.S. dairy exports, June Product NDM/SMP † Whole milk powder* Total cheese Butterfat Total whey Lactose Milk protein concentrate Food preps Aggregate Fluid milk (liters) Total value** ($ millions) Exports (Metric tons) June 2015 June 2016 46,703 2,856 26,119 1,470 38,012 33,133 2,106 4,488 154,887 7,694 $450.9 Percent change 42,569 9,311 23,041 992 47,479 31,141 1,689 5,660 161,882 5,849 $370.9 -9% 226 -12 -33 25 -6 -20 26 5 -24 -18 * USDEC believes USDA’s volume is overstated, misclassified. † Nonfat dry milk/skim milk powder ** Total value includes fluid milk. Capital Press graphics Sources: USDA; USDEC whole milk powder, Levitt said. U.S. dairy exports as a whole have been fairly steady for the past year, but volumes are lower compared with two years ago, he said. They are also lower year over year in the irst six months of 2016. January to June dairy exports were down 7 percent, with nonfat dry milk and skim milk powder off 11 percent, cheese off 20 percent and milk protein con- centrate off 36 percent. Total whey shipments were down 3 percent and butterfat was down 1 percent. “Exports are not off the table, but they’ve shifted into low gear. It’s more of a buy- er’s market than a seller’s market,” Levitt said. With lots of available prod- uct and plenty of competition, buyers are not as aggressive. The market is oversupplied, so they can pick and choose, he said. The sizable premium on U.S. cheese and butter com- pared with the world market isn’t helping U.S. exports. The U.S. price for block cheese is 50 cents a pound higher than the Oceana price, and the price for butter is about $1 a pound higher, he said. Those U.S. prices have been higher than world prices for almost two years and have been attributed to strong do- mestic demand and tight sup- plies, he said. The higher prices are hard to understand, however, given the huge cheese and butter in- ventories in the U.S. and am- ple production, he said. Looking ahead, the U.S. isn’t going to become any more competitive in world markets and the EU and New Zealand have become more aggressive, he said. “I think world markets are going to be fairly depressed in the next nine to 12 months. I don’t think export volumes are going to improve any time soon,” he said. Wash. dairy commission Dairy prices ride roller coaster hires general manager By LEE MIELKE Dairy Markets For the Capital Press R oller coasters are fun rides at the fair, but not on the farm. CME cash cheese prices ended six consec- utive weeks of climb the second week of August. The Cheddar blocks, which climbed the previous Friday to $1.8150 per pound, closed the following Friday at $1.78, down 3 1/2-cents on the week but 8 3/4-cents above a year ago. The Cheddar barrels, which hit $1.88 the previous Friday, closed the following week at $1.8650, down 1 1/2-cents on the week, 16 3/4-cents above a year ago, and 8 1/2-cents above the blocks. Six cars of block Board promotes communications director By DON JENKINS Capital Press traded hands on the week at the CME and none of barrel. Cheese was unchanged Monday and Tuesday as trad- ers absorbed Tuesday’s Global Dairy Trade auction and antic- ipated Friday’s July Milk Pro- duction report. Dairy Market News reports that Midwest milk production continues to fall and cheese manufacturers are adjusting pro- duction schedules accordingly.” National Milk called on Ag- riculture Secretary Tom Vilsack to “help dairy farmers enduring NDPO Board Members Mike Eby Courtesy of Washington Dairy Products Commission Scott Kinney recently was named general manager of the Wash- ington Dairy Products Commission. research into manure man- agement. The Legislature this year, however, passed a bill au- thorizing the commission to fund that research and ed- ucate the public about the “economic uses of nutrients produced by dairy farms.” Kinney said he wants to highlight how farms turn manure into useful products, such as fertilizer or electric- ity. “We really want to get it out there: Farmers are en- vironmental stewards,” he said. “You see how com- munities are building up. We have farmland being developed into condomini- ums. We need to show that farmers are doing every- thing they can do to be good neighbors.” Washington dairies are under scrutiny. The state De- partment of Ecology plans to issue new manure-handling rules by the end of the year that could apply to hundreds of dairies. Kinney said the commis- sion will seek to enhance the image of dairies in the mar- ketplace. “Consumers are the new regulators, if you will,” he said. Dairies are assessed 15 34-1/#7 The new general manag- er of the Washington Dairy Products Commission says he will raise the farmer-fund- ed organization’s profile. “A lot of people don’t even know we exist,” said Scott Kinney. “Farmers say, ‘We’re paying assessments, what do we get?’” Kinney had been interim manager since his prede- cessor, Janet Leister, retired in May. The commission named him permanently to the position last week. He was hired a year ago as the commission’s communica- tions director. Kinney’s background includes growing up on his family’s corn and soy- bean farm in Iowa. Previ- ously, he was a spokesman for the Washington State Lottery and Pierce County Community Connections, a county social services agency. “I am confident that Scott’s farming background and professional experience will help move the commis- sion in a new direction as we share the story of dairy farm- ing in Washington state,” the commission’s chairwom- an, Chehalis dairy farmer Michelle Schilter, said in a written statement. Kinney takes over a state agency that has 16 employ- ees and a $7.7 million bud- get for the fiscal year that began July 1. It also has an expanded mandate. The lawyer in the state Attorney General’s Office in 2014 advised the commis- sion that its legal authority was limited to promoting and conducting research on products derived from milk. The state Department of Agriculture noted disap- provingly last year that the commission was funding Lee Mielke cents per 100 pounds of milk to support the dairy checkoff program. The state commis- sion receives 10 cents, while the national organization, Dairy Management Inc., re- ceives 5 cents. The state commission’s advertising plans include continuing to sponsor high school sports and conduct promotions with the Seattle Seahawks and Seattle Mari- ners. “For me, it’s about the emotional connections,” Kinney said. “Dairy is part of a healthy diet. Athletes can get recharged and re- freshed.” Kinney’s salary has yet to be set. According to Office of Financial Management re- cords, Leister’s most recent salary was $6,488 a month. Chairman of the Board Retired - Pennsylvania (717) 799-0057 meby@wdac.com Paul Rozwadowski Vice Chairman Dairy Producer - Wisconsin (715) 644-5079 prozwadowski@centurytel.net Gary Genske Treasurer Dairy Producer - New Mexico (949) 650-9580 garyg@genskemulder.com Pete DeHaan Dairy Producer - Oregon (503) 437-6628 rcowsgetrdone@hotmail.com Bob Krucker Dairy Producer --- Idaho (208) 324-7904 rekkmk@bridgemail.com John J. King Retired - Pennsylvania (717) 284-5756 “We pledge to thoroughly and immediately review and study each of the issues that impact the price of milk paid to producers in order to determine and facilitate needed changes that may be required to reach our stated purpose of producer profitability, for now and in the future.” the lowest milk prices since the Great Recession of 2009” by providing “a measure of relief by purchasing at least $100 mil- lion worth of cheese products for donation to the needy, a mea- sure that would help both farm- ers and food insecure Americans who patronize food banks.” It remains to be seen whether in this very political year the ad- ministration will approve the re- quest. Dairy farmers have surely had a rough time of late but, as the Aug. 15 Daily Dairy Report points out, “August Class III futures settled at $17.00, high- er than in any month since late 2014. Every Class III contract on the board, which stretches to July 2018, stands at $16 per cwt. or higher.” NATIONAL DAIRY PRODUCERS ORGANIZATION, INC. Profitability for Sustainability www.NationalDairyProducersOrganization.com Let’s Make Our Co-ops Great Again! Since nearly 80% of U.S. milk is produced by co-op members, U.S. dairy farmer profitability can be sustained if dairy farmers demand that co-op management implement the following rules: 1. Accept no non-member milk and sell no member milk, unless the price paid or received is greater than the member dairy farmer’s average cost to make the milk. 2. Implement a pro-rata across-the-board reduction in the acceptance of member milk for processing until the milk supply is balanced with profitable domestic market demand, which provides a price greater than the member dairy farmer’s average cost to make the milk. 3. Do not own, operate or be involved with any processing facility, make any dairy product or chase any dairy market that will not pay a price greater than the member dairy farmer’s average cost to make the milk. 4. Use the National Dairy Producer’s Organizations 100 percent USA trademark on all co-op made products to promote U.S.-made dairy farmer milk. www.100percentusa.org Nobody has an inherent right to profitably sell anything! That right must be earned in the market place by balancing supply with profitable demand. Presently, the US dairy farmer has not earned this right, but could do so by implementing NDPO’s suggestions to better manage their milk and their co-ops. We cannot do anything about the past BUT, we CAN do something about our future. Running a co-op is not a spectator sport. It’s your future – make it a good one. Become a NDPO member 34-4/#4 OFFICE 949-375-4450 • FAX 949-650-9585 34-4/#4N