Washington Dairygrams - October 10, 2011


As printed in our October 10, 2011 issue...

THE DAIRY SECURITY ACT is introduced in House by Collin Peterson (D-Minn.) and Mike Simpson (R-Idaho) with seven initial cosponsors. Patterned after Foundation for the Future, the bill makes supply reduction and insurance coverage optional. Read more on page 652.

NEW SCC GUIDELINES are being drafted by USDA for EU export certificates. They already require 400 SCC milk on tankers. New rules would look at individual farms. Formal comment period to begin shortly.

HERDS WITH ANTIBIOTIC RESIDUES in shipped cull cows could be evaluated in a blind, nonregulatory FDA survey. The follow-up investigation would evaluate milk samples for 26 different drugs.

PROPOSED CHILD AG LABOR regulations could prevent farm family’s children from milking cows if the business is a partnership or a family corporation. Comments are due November 1. More on page 628.

COW NUMBERS GROWING due to record high milk prices. At 9.217 million cows this August, the national herd is the largest in two years.

MILK OUTPUT IS STRONG with 50-state total in August up 2.1 percent. Top Western dairy states are up 4.6 percent from last year. Texas leads the group, gains 11.1 percent; California, 2.9; Wisconsin, 1.2.

SLUGGISH FLUID SALES continue with July consumption lowest in over a decade. Beverage milk sales now down 1.8 percent through July.

BEEF PRODUCTION GROWS as ranchers reduce cattle herds due to extended drought and high feed costs. Cattle slaughter up 5 percent compared to last year while live weight is down 7 pounds. More on page 626.

CULL COWS ARE UP 5.7 percent from last August. Year-to-date dairy slaughter totals 1.9 million head, 4.5 percent ahead of last year.

BLOCK CHEESE AT $1.72-3/4 at closing; drops only 9 cents during September. Inventories still high and suggest sluggish cheese consumption.

BRIEFLY: Class III Futures for October through March averaged $17.26 in late September trading. USDA lowers 2011 All-Milk Price projection to a $20.25 midpoint; 2012 remains at $18.30. Record profits announced for Fonterra; revenue was up 19 percent to $19.9 billion while profit was up 13 percent to $771 million for New Zealand’s main dairy group. A new electronic tracking system will be implemented next July by New Zealand with goal to trace animals from birth to death. Cattlemen’s Beef Board makes interim CEO Polly Ruhland’s role permanent.

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