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July 14, 2017 CapitalPress.com Subscribe to our weekly dairy or livestock email newsletter at CapitalPress.com/newsletters Dairy WSDA report identifies ‘gaps’ in rules Penalties and manure spreading considered By DON JENKINS Capital Press Washington’s oversight of dairies could be toughened by stiffer penalties and more control over manure trucked to other farms, according to a new Washington State Department of Agriculture report. The report doesn’t make policy recommendations, but broaches “strategies” for plugging “gaps” in how the state’s some 375 dairies man- age manure to protect water. WSDA compiled the re- port at the direction of state lawmakers and with the ad- vice of a 15-member commit- tee, which included several producers. “I don’t see that there’s going to be a huge amount of regulations coming out of this,” said Whatcom County dairyman Larry Stap, a com- mittee member. “I see this Don Jenkins/Capital Press A new report by the Washington State Department of Agriculture broaches ways for changing how the state regulates manure from dairies. The ways include more fines, more plan updates and more control over manure trucked to other farms. as accountability — proving we’re doing a good job.” Lawmakers ordered the study two years ago to identi- fy “gaps” in manure-handling regulations. WSDA Director Derek Sandison met six times with the advisory committee, which also included represen- tatives from the Department of Ecology, Environmental Protection Agency, Washing- ton State University, USDA and several other organiza- tions. The report outlines poten- tial responses to concerns that emerged from those meetings. A WSDA spokesman said Monday that the department will continue to meet with the advisory committee. The department has not made any policy proposals, he said. The concerns that emerged include: • WSDA monitors manure applications at dairies, but not at other farms. The study suggests certifying all manure applicators could “create pari- ty amongst all manure users.” Stap said that would hold other growers accountable for water quality. Washington State Dairy Federation policy director Jay Gordon cautioned that such a policy could influence farm- ers to choose synthetic fertil- izer over manure. “We do not want organic fertilizer to be stigmatized,” he said. • Penalties for manure-han- dling violations may not be high enough, broad enough or consistently applied, accord- ing to the report. For example, dairies aren’t penalized for applying too much manure unless WSDA documents pollution, accord- ing to the report. Also, dairies aren’t fined for not following their manure-management plans. Gordon questioned the need for such fines because dairy farmers overwhelming- ly follow orders by WSDA inspectors to correct flaws in how they’re handling manure. “The philosophy goes back 20 years or more. It’s better to get the problem fixed than just paying fines into an account,” he said. WSDA says it will review penalties in the fall. Currently, WSDA can penalize a dairy up to $10,000 a day for pol- luting water. Dairies can also be fined for failing to have a manure-management plan or keeping inadequate records. Stap said WSDA may need a “bigger stick for a dairy that just plain doesn’t care.” “But how big of a stick? That’s always the challenge,” he said. • All dairies must have manure-management plans, but the plans don’t have to be updated if the dairy expands. The report suggests requiring dairies to submit new plans every five years. Stap said he told the com- mittee that soil tests provide an annual report card on how well a dairy is handling its manure. “That is a living thing that means a whole lot more than a static thing that sits on a shelf,” he said. Global milk production modestly recovering By CAROL RYAN DUMAS Capital Press Higher milk prices and more favorable weather are contributing to a moderate increase in milk production in dairy exporting countries, fol- lowing a sharp contraction in late 2016. Those factors are provid- ing much-needed relief for the world’s dairy farmers after a three-year decline in milk val- ues, although the production recovery is slower than many market watchers expected, ac- cording to Rabobank analysts in their latest dairy quarterly report. Milk prices to U.S. farm- ers, who have steadily in- creased production, continue to track well above prices in Europe and Oceania, spurred by local demand and firmer export trade, they said. “We expect, given contin- ued good margins over feed, that milk production in the U.S. will continue to grow,” the analysts said. They also expect U.S. consumption of butter and cheese, after a slight stumble in the first quarter of 2017, will continue to drive solid domestic demand growth. U.S. milk production grew 2 percent in the first four months of the year. Rela- tively low feed prices should keep the majority of produc- ers slightly above breakeven, but the analysts said increas- ing labor costs will hold milk supplies below a 2 percent increase over the next 18 months. Around the globe, the an- alysts expect the shortage of butterfat in the EU will main- tain milk prices there. EU but- ter production was 4.5 percent below year-earlier levels in the first three months of the year, and butter exports were down 12 percent. The higher milk pric- es are expected to increase milk production in the EU 1 percent year over year in the third quarter of this year, 2.2 percent in the fourth quarter, 1.2 percent in the first quarter of 2018 and 0.8 percent in the second quarter. In New Zealand, higher Don Jenkins/Capital Press Cows gather at a dairy in southwest Washington. According to Rabobank, relatively low feed prices should keep the majority of producers slightly above breakeven. milk prices have gotten the 2017/18 season off to a more confident start, with cash flows giving a much-needed boost compared to previous seasons, the analysts said. Despite low volumes in June and July, the new season is expected to start strong with increased milking herd num- bers and higher milk prices. Milk production is forecast to increase by 2 percent to 3 per- cent for the full season, and exports are expected to trend up slightly the remainder of the year and be up 1 percent to 2 percent in the early part of 2018. Milk production declines in key regions in Australia are starting to slow. The country’s milk supply fell 8 percent in the season that just ended, and exports fell 2 percent year over year between July 2016 and April 2017. The analysts expect modest recovery in Austra- lia’s milk production in the 2017/18 season, saying “sea- sonal and trading conditions continue to look mostly favor- able for dairy farmers.” Lower production costs and good weather for pasture in Brazil are helping farmers’ margins and favoring more milk production. Despite po- litical instability, demand for dairy products has been sur- prisingly stable during the re- cession and should remain so in coming months. Milk production in Brazil grew 1.5 percent in the first half of the year, and the ana- lysts expect that growth rate to continue in the second half. Higher milk prices in Ar- gentina are starting to gener- ate a mild recovery in milk production, but dairy farmers have experience a tough cou- ple of years. Official data show the number of dairies declined to 5,300 in March, down from 5,900 in March 2016 and 6,200 in March 2015. Farmgate prices have been rising rapidly, jumping 30 percent over the last 12 months — in part, reflecting the 12.5 percent decline in milk production in 2016. “The industry remains in a very difficult situation, with no relief in sight,” the analysts said. SanCor, the country’s largest cooperative and milk processor, continues to show signs of distress and is depen- dent on government support. Other larger players are also feeling the strain of weak de- mand less availability of milk, rising costs and continued in- formality in the sector. Argentina’s dairy exports declined by 20 percent in val- ue and 33 percent in volume in the first four months of 2017, negatively impacting the industry’s income stream, the analysts said. Researchers say happiness turns dairy cows into cash cows By CARRIE ANTLFINGER Associated Press SAUK CITY, Wis. — Dairy farmers, take note: The key to turning your dairy cow into a cash cow is udder hap- piness. Give her a bigger stall, in- crease air circulation and pro- vide some shelter to prevent overheating. That’s according to a Uni- versity of Wisconsin initiative that focuses on making dairy cows happier so they provide more milk. “I think it’s really important that we give them the spa treat- ment,” said Nigel Cook, who has directed the Dairyland Initiative at the University of Wisconsin-Madison’s School of Veterinary Medicine since 2010. Cook and his team vis- it farms to give advice about several issues, including be- havior and easing cow stress. They also provide workshops and have created a website to share advice with farmers worldwide. Cook said major concerns 11 include leg pain or lameness, especially among cows that stand for long periods without a comfortable resting place. “It impacts the way she rests, the way she milks, the way she eats, her ability to reproduce and ultimately her ability to stay on the farm,” he said. One solution? Take her to the beach — or at least the farm equivalent. “The deep soft bedding of sand creates an environment where cows can rest half the day,” Cook said. Other recommendations include adding sprinklers and feeding cows at the same time — since herd animals prefer to do things together. And while you’re at it, regroup cows less around birthing time to decrease stressors associated with establishing a hierarchy. It’s advice Mitch Breunig has been closely following with his 400 cows at Mystic Valley Dairy in Sauk City, about 25 miles northwest of Madison. He has spent over $100,000 in improvements aimed at making his cows happier and says it’s been worth it. He has even added an automatic brush in his barn that constantly cleans dust off his cows. “If you take away their stress, they actually produce more milk, and the other thing that is actually interesting is they do it by eating less feed,” Breunig said. Breunig has seen milk pro- duction increase from about 13 gallons of milk a day per cow to 15 gallons. He said his cows also have fewer injuries and live about a year longer. Dairy Markets Lee Mielke Dairy prices inch higher on CME By LEE MIELKE For the Capital Press C ME dairy trading was lackluster in the Fourth of July hol- iday-shortened week. The block cheddar closed Fri- day at $1.5525 per pound, up 2 3/4-cents on the week, the first week of gain in six weeks, but 7 3/4-cents below a year ago, when cheese pric- es were inverted with barrels atop the blocks by 9 cents. The blocks inched a quar- ter-cent higher Monday and jumped 6 cents Tuesday, to $1.6150, the highest price since June 15, as traders awaited USDA’s latest milk production and milk price estimates on Wednesday. Traders are also watching the rising temperatures and wild- fires in the West. Thousands of dairy cows in California have died from the heat. The barrels finished Friday at $1.3750, up 2 1/4-cents on the week and 34 1/2-cents below a year ago. They gained a penny Monday and 3 1/4-cents Tuesday, hitting $1.4175 on 19 trades, still at a too- high 19 3/4-cents below the blocks. Milk production has be- gun to taper in the Midwest, reports Dairy Market News, but cheese plants continue to take spot loads at $1 to $3 un- der class. Cheese production continues strong, demand is somewhat steady, and most inventories are long. Con- tacts are anxious over the large barrel-block price gap, ongoing since May. Western cheese output is strong due to higher volumes of milk available. Demand is good. Exports are expect- ed to increase due to U.S. cheese prices being so com- petitive internationally. Spot butter fell to $2.5725 per pound Thursday but closed Friday at $2.5850, down 5 3/4-cents on the week, first loss in four weeks, but still 30 1/4-cents above a year ago. The butter was up 3 cents Monday but gave back three-quarters Tuesday, slip- ping to $2.6075. Butter production is ac- tive and producers are stor- ing it for upcoming demand and inventories are building. Cream supplies in the West are less available as seasonal demand from Class II manufacturers is active. The Daily Dairy Re- port’s Sarina Sharp wrote in the June 30 Milk Pro- ducers Council Newsletter that butter prices in Europe are “climbing relentless- ly, while the government’s mountain of milk powder languishes.” “U.S. dairy exports to Russia, as well as those from Canada, the European Union, Australia and Norway, will not improve,” according to the July 5 DDR, as “Rus- sia has extended its import ban until December 2018 in response to economic sanc- tions placed against Russia following its annexation of Crimea and actions in eastern Ukraine.” Cash Grade A nonfat dry milk finished Friday at 86 3/4-cents per pound, up 2 1/4-cents on the week but 2 1/4-cents below a year ago. Monday saw the pow- der inch a half-cent higher and hold there Tuesday, at 87 1/4-cents per pound, with 31 cars trading hands. Milk heads to vat USDA’s latest Dairy Products report shows May cheese output totaled 1.05 billion pounds, up 0.8 per- cent from April and 4.0 per- cent above May 2016. Year to date cheese output stands at 5.1 billion pounds, up 2.5 percent from a year ago.
