As printed in our February 10, 2010 issue...

USDA LOWERS MILK PRICE PROJECTION by 30 to 40 cents per hundred. Class III prediction for 2010 now around $15.15 with an All-Milk Price of $16.60. February through December Class III futures averaged $15.19.

ESTIMATED MILK PRODUCTION for 2009 is 189.2 billion pounds, down 0.1 percent from 2008. USDA is putting 2010 estimate at 188.4 billion pounds.

BOTH BUTTER AND CHEDDAR BLOCKS selling at around $1.50 a pound at press time. Cheese stocks were up 13 percent over a year ago. American cheese supplies in cold storage were up 9. Butter stocks were up 12 percent.

MILK OUTPUT in December was down just 0.8 percent in the top states. There were 252,000 fewer cows (-2.7 percent), but milk per cow was up 1.9 percent. National cow count stood at 9.08 million head, lowest since December 2005.

CALIFORNIA MILK OUTPUT was down 4.6 percent with 76,000 fewer cows (-4.1 percent). Wisconsin was up 4.3 percent in milk with 4 percent more milk per cow than a year ago. New York, Pennsylvania, Michigan, and Minnesota all also were up sharply in milk produced per cow.

FDA WILLING TO WORK WITH interstate milk shipments conference (NCIMS) on lowering SCC limit from 750,000, Stephen Sundlof told U.S. Dairy Forum. Also, agency is broadening milk antibiotic-surveillance beyond beta-lactams.

RECENT POLITICAL DEVELOPMENTS have changed the legislative environment in Washington significantly. Health-care reform plans scaled down. Major climate legislation and immigration reform now seem less likely.

BRIEFLY: Dean Foods is focus of Justice Department anti-trust lawsuit over its 2009 acquisition of Foremost Farms co-op’s fluid operations. CWT program donates $100,000 to Red Cross for Haiti earthquake relief. December dairy cow slaughter was 231,000 head, up 10.5 percent from a year ago. Total for 2009 was 2.8 million head, up 224,000 or 8.7 percent from 2008. Animal ag’s contribution to climate change needs further study, says World Organization for Animal Health (O.I.E) expressing concerns about the controversial United Nation greenhouse gas report. First time O.I.E. has taken action on a non-animal health issue. Of 15 operations cited recently for antibiotic residues in animals shipped, 14 were dairy farms. Most common findings: flunixin, penicillin, neomycin, ceftiofur, and sulfadimethoxine.