The commonwealth is trying to deliver millions of dollars of relief money to struggling dairy farmers, but time is running out to apply.

John Hess has owned Jobo Holstein Dairy Farm in Gettysburg for decades now, and like other farmers, his business has taken a hit from the pandemic.

“Dairy farmers are struggling,” Hess said. “Restaurants tried to open up and they’re not being very successful. It looks like a lot of them are going out of business. Schools aren’t starting up as normal, so that’s going to affect our sales.”

The Pennsylvania Department of Agriculture set aside $15 million from the CARES Act specifically to give to dairy farmers who need help. On Friday, they announced they still have $13.5 million left to give out.

Farmers can apply to receive $1,500 grants until the deadline on Sept. 30.

Hess plans to apply, although he doesn’t expect the money to change much. “It’s not a lifesaver. It’s a nice gesture, but it will not save too many people I don’t think.”

He and his family-owned farm are facing a very uncertain future.

“What’s devastating is the fact that we do not know what’s going to transpire in the next year, next six months,” Hess said.

For now, all they can do is keep working and hope for the best.

“We’ve had other trying times. They’re part of doing business. You basically do the best you can to get through them,” Hess said. “Hopefully at the other end, we see some better times. Gotta have faith.”

Although Hess says relief money alone won’t save farmers — what will help is community support through buying real dairy products that are American made.

Source: abc27.com

The Wisconsin Department of Agriculture, Trade and Consumer Protection (DATCP) has published the results of its 2020 dairy producer survey on its website. Results of the previous survey, completed in 2010, also are posted on the website.

The survey was developed in partnership with the UW-Madison College of Agricultural and Life Sciences (UW-CALS) and distributed in mid-March, just before the onset of the COVID-19 pandemic. Of the nearly 7,100 licensed dairy herd owners in the state, 2,871 surveys were returned, a response rate of 41 percent.

Survey questions covered a wide range of topics, including markets, labor needs, off-farm employment, conservation practices, diversification, succession and retirement planning, and more. While some producers referenced COVID-19 in their responses, the pandemic did not seem to have a significant influence on the overall results of the survey.

“Since the last dairy producer survey was conducted ten years ago, Wisconsin’s dairy industry has changed,” said Krista Knigge, administrator of DATCP’s Division of Agriculture Development. “Even during COVID-19, this is an opportunity to assess the state of the industry and current demographics, and learn more about how DATCP and other partners can serve as a resource to dairy producers.”

Mark Stephenson, Director of Dairy Policy Analysis at UW-CALS, said the 2020 survey results provide “new insight that will help the university direct research and outreach to more specifically address the practices and challenges of Wisconsin dairy producers.”

Some highlights of the 2020 survey results include:

• Almost 90 percent of respondents were conventional farms; 11 percent utilize managed intensive grazing; and nine percent classified themselves as organic.
• Two-thirds of respondents were sole proprietorships.
• Just under one-quarter of respondents reported they will need additional labor within the next two years. Most indicated they would consider hiring a military veteran, and just under half reported they would consider hiring a person who has been incarcerated.
• About one-fifth of respondents reported providing housing for employees.
• Almost 60 percent of respondents use cover crops to manage soil health and erosion. 70 percent use grassed waterways.
• Almost 10 percent of respondents felt the need to access mental health services in the past year due to farming challenges.
• Nearly half of the respondents said at least some portion of their family income comes from off-farm employment.
• Nearly half of those responding said the farm’s “primary decision maker” was in the 50-64 age range.
• Looking to the future, 83 percent of respondents said they believe their operation will still be farming in five years.

A panel charged with dairy promotion has recommended $15 million worth of projects for approval by state Agriculture Commissioner Richard Ball.

Enhancing dairy’s image is important now more than ever in a year when the COVID-19 pandemic has greatly impacted an already struggling industry.

“Agriculture remains an essential industry during these challenging times, and yet our farmers have faced extreme difficulties as a result of lost markets and uncertain demand,” Ball said. “New York is a leader in dairy and by funding another critical round of these projects, we hope to further increase consumer awareness and demand of New York dairy products.”

But as people spend more time online and rely more heavily on the internet for activities ranging from business meetings to grocery shopping, a great deal of promotion is becoming more digitally oriented, also.

“We’ve learned from this,” said Eileen Jensen, New York Animal Agriculture Coalition executive director. “When our world went virtual in March, a lot of people were interested in learning from afar. We’ve used that to our advantage.”

One of the coalition’s main activities is running the Dairy Cow Birthing Center at the Great New York State Fair, a highly popular attraction seen by more than 300,000 visitors annually. But the cancellation of this year’s fair, in Syracuse, has prompted the coalition to pursue new promotional efforts such as one called Dairy on the Moo-ve.

“During the fair we’ve engaged people in conversations about a lot of different dairy-related topics,” Jensen said. “So over the next few months we’re going to farms in all regions of the state, talking about things like animal nutrition, the milking process, calf care and showing calves being born. We’ll do a different region each week.”

Plans also call for giving Birthing Center updates, by finding cows and calves born at the fair in past years and showing what life on the farm is like for them today.

These live-on-location programs will be shared on a variety of social media platforms such as Twitter, Facebook and YouTube, and the coalition’s website. Many farms have their own social media followings and will be encouraged to share programs, too. In addition, the coalition will promote the series with paid social media ads in an effort to gather new followers.

Another promotion called Vision 2020, begun in January, consists of 10 short films highlighting New York dairy producers. Each video, up to two minutes long, deals with a different topic designed to promote industry transparency and openness, in an attempt to engage the public and build consumer confidence.

Topics include coronavirus-related issues such as what farms are doing to keep their employees safe, and how farm supply chains have been affected.

Another coalition promotional effort called Documenting Dairy uses a more traditional form of communication to reach people. Begun in June, this project is a series of written articles that highlight things such as the economic impact dairy farms have on their communities, how farm families are involved in their community, and how much of a positive asset they are.

Stories also deal with topics such as technological advancements and environmental sustainability. Articles may be found on the coalition website, but they’ll also be pitched to local media to reach the general public.

The 10-member state Dairy Promotion Order Advisory Board has recommended giving $150,000 to the coalition for this year’s promotional campaign, which is twice the amount it received last year, the first year it applied for such funding.

The board, consisting of farmers and industry leaders from across New York, is charged with advising Ball on the annual distribution of approximately $15 million in funds collected from milk producers under the producer-approved New York Dairy Promotion Order.

The board meets regularly to consider allocations to new programs and review the progress of currently funded projects.

During its latest meeting, the board was given updates on the projects it funded last year. All projects presented will continue during this calendar year and funding recipients will provide a year-end update once their projects are complete.

In addition to the coalition, groups recommended for funding, their respective dollar amounts and projects are:

• VentureFuel: $475,000 to launch a competition among start-up firms to create an innovative new dairy product.

• American Dairy Association North East: $10.5 million for a comprehensive youth initiative to enlist and train dairy farmers to tell their stories of production, animal care, and more to consumers, as well as to enhance the image of New York dairy through traditional and social media.

• New England Dairy Promotion Board: $1,650,000 to increase dairy consumption among young people, improve the image of dairy, and oversee the 2020 Annual Dairy Checkoff Unified Marketing Plan for National Programming.

• Cornell University: $1,500,111 to research new dairy products and improve product food safety procedures.

• Milk for Health: $450,000 to develop dairy-themed cooking classes and to create advertisements marketing New York dairy. The ads will be placed on television and radio, in movie theaters and schools, and at fairs, as well as on social media.

• U.S. Dairy Export Council: $100,000 to increase overall dairy exports, including cheese and other products.

Source: lancasterfarming.com

New Zealand’s a2 Milk Co forecasts slightly lower earnings margins for fiscal year 2021 on 19 August.

Reuters reports that the report comes as the COVID-19-related stockpiling that boosted its annual profits began to fade.

The dairy producer’s profit for the year jumped 34.1 percent, buoyed by stronger demand for its infant formula and other products as customers purchased essential items in bulk ahead of lockdowns.

Revenue from the infant nutrition segment, its biggest earner, rose 33.8 percent to NZ$1.42 billion, with sales from a2’sChina label effectively doubling to NZ$337.7 million during the year.

However, a2 Milk said it expects fiscal 2021 core earnings margin between 30 percent and 31 percent, slightly below the 31.7 percent recorded in 2020, due to higher costs and the lack of forex and COVID-19 tailwinds it experienced this year.

“In our view, a proportion of consumer pantry stocking driven by COVID-19 unwound in the fourth quarter,” the company said in a statement.

“However, this will remain a dynamic situation and we will continue to monitor changes in consumer behaviour moving forward.”

The dairy producer said net profit after tax was NZ$385.8 million for the year ended 30 June, compared with NZ$287.7 million a year ago.

The figure came in slightly below estimates of NZ$389.9 million, according to IBES data from Refinitiv.

($1 = 1.5152 New Zealand dollars)

Read more about this story here.

Bigger dairy farms have a built-in economies of scale advantage over smaller ones, and that will continue to help big operators turn a profit and account for an even bigger share of U.S. dairy cows and production, according to a new report from the U.S. Department of Agriculture’s Economic Research Service.

“While herd size is not the only factor that matters for production costs, these scale-related cost differences are important. As a result, larger farms are more likely to realize positive net financial returns to milk production,” said the report, written by James W. MacDonald.

Economies of scale allow an operation to spread expenses over greater production, thus reducing per-unit costs — especially important when milk prices are poor.

Consolidation in the dairy industry is nothing new, but the increasingly rapid pace of consolidation is troubling, said Marin Bozic, an assistant professor in the University of Minnesota’s College of Food, Agricultural and Natural Resource Sciences. Bozic, whose areas of expertise include demand for dairy and U.S. dairy policy, was asked by Agweek to comment on the ERS report.

“The consolidation is going to continue,” and the goal of U.S. dairy policy should be reducing the size of the decline “to a humane pace,” Bozic said. “That’s the best we can hope for.”

When 4% of dairy farms quit operation in a given year, it can be explained by older operators unwilling to invest in maintaining their aging facilities, he said.

“But when you get to 7 or 8 or even 10% of farms exiting a year as we have recently, those exits look quite different. Then you have 30-somethings and 40-somethings — 40-year-olds relatively early in their dairy careers — loaded with debt” who, despite their determination, are going out of business because of poor milk prices, Bozic said.

“These folks who are exiting, their dreams are shattered,” he said.

On the other hand, fewer younger people going into dairy isn’t a bad thing economically. “We need those young people in different (economic) sectors. Folks that have enough grit to go into dairy — and skills and perseverance and work ethic — they really are the salt of the earth,” he said.

“They will be productive members of society, just in a different business,” in some cases “contributing more than they would in dairy,” Bozic said.

More from the report

Other major conclusions of the ERS report:

• “Milk cows and production are moving to much larger dairy farms. Farms with at least 1,000 head today account for most cows and production, and farms with at least 5,000 head — nearly nonexistent 25 years ago— accounted for a sixth of all cows by 2017.”

• “While some farms in every herd size class are financially viable, small commercial farms with 10-199 cows face a challenging environment. Such farms accounted for most dairy production 25 years ago, but their numbers are shrinking; by 2017, they accounted for just one-fifth of production.”

• “In 1997, 56.3 percent of U.S. milk cows were on small commercial dairy farms (10-199 cows), while farms with herds of at least 1,000 cows held just 17.5 percent of all milk cows. (By 2017) the number of small commercial dairy farms fell by two-thirds, while their share of all milk cows fell to 21.6 percent. Meanwhile, the number of farms with at least 1,000 cows more than doubled, and those large dairy operations came to hold 55.2 percent of all U.S. cows.”

Among the disadvantages for smaller dairies:

• Consumers are using less fluid milk. which generally is shipped short distances for sale, and more dairy products such as cheese, yogurt and dry milk power that are shipped long distances or exported — a change that tends to favor larger farms, the report found.

Some small farms have economic strengths, however, the report noted.

“Farm production costs may also vary widely, and in some cases may allow smaller operations to be financially viable,” the report found. For example, effectively managing pasture and forage can help to provide access to high-quality feed at attractive prices, while good herd management can produce “consistently high-quality replacement heifers.”

Mid-sized dairies at risk, too

Mid-sized dairy farms, ones with 300 to 1,500 cows now and established in the 1990s by people who soon will be nearing retirement, will most at risk of going out of business in coming years, Bozic said.

“My concern is that we may end up with a bimodal distribution — very small on one end and very large on the other and not (a) middle ground,” Bozic said.

Supporting mid-sized dairy farmers to grow their business and remain in operation will be crucial, he said.

Source: aberdeennews.com

The Commerce Commission has today released its draft report on Fonterra’s base milk price calculation for the 2019/20 dairy season.

The base milk price is the average price Fonterra sets for raw milk supplied by farmers which is currently forecast to be between $7.10 – $7.20 per kilogram of milk solids for the 2019/20 dairy season.

The Commission is required to review the calculation at the end of each dairy season under the milk price monitoring regime in the Dairy Industry Restructuring Act (DIRA). The regime is designed to provide Fonterra with incentives to set the base milk price consistent with efficient and contestable market outcomes.

“The key areas of focus for us in this year’s review were Fonterra’s administrative and overhead costs, as well as the range of commodity products manufactured and sold,” Commission Deputy Chair Sue Begg said.

“Our review revealed no new areas of concern and we are satisfied Fonterra’s calculation is largely consistent with both the efficiency and contestability purposes.”

“However, we have retained our 2017/18 view that the asset beta that Fonterra applies is unlikely to be practically feasible. We note that Fonterra has signalled that it will establish a new estimate of the asset beta for the 2020/21 season and we expect this will become a focus for next year’s review,” Ms Begg said.

The Commission invites submissions on its draft report by 12 noon, Tuesday 1 September 2020.

The draft report and related information can be found here.
 

Background
The milk price regime is designed to provide Fonterra with incentives to set the base milk price consistent with efficient and contestable market outcomes. The regime exists because there is not yet a competitive domestic market for the purchase of farmers’ milk and the milk price is set by Fonterra using an ‘administrative’ methodology. As Fonterra determines and applies that methodology itself, there is a risk that it might set a base milk price that is ‘inefficient’ – either too high or too low relative to what it would be in a competitive market. A price that is too high could act as a barrier to efficient entry by processors.

Under the DIRA, the Commission is also required to review Fonterra’s Manual, which sets out its methodology for calculating its base milk price for the season.

Asset beta
The asset beta is used in calculating the estimated cost of capital of financing milk processing operations and reflects the extent to which the assets associated with processing milk are more or less risky than the stock market as a whole. A higher asset beta would put downward pressure on the milk price Fonterra pays its farmers.

The DIRA has recently been amended by Parliament, with a change reducing Fonterra’s discretion in setting the asset beta. This change does not affect this year’s review.

Source: scoop.co.nz

Thousands of gallons of wasted milk. Unpredictable, zigzagging prices. Abrupt dips and surges in demand.

The past four months have been a roller coaster for Arizona dairy farms, as the COVID-19 pandemic dramatically changed the way some of their biggest clients did business.

The ride isn’t over yet: Arizona is a COVID-19 hotspot, meaning impacts on school and restaurant operations – and their dairy needs – remain uncertain.

Food banks find themselves overwhelmed with community demand, yet some struggle to safely store and distribute the flood of milk being donated.

And beyond Arizona’s borders, foreign dairy markets continue to evolve.

“In 46 years, I’ve never seen anything like this,” said Keith Murfield, chief executive officer of United Dairymen of Arizona.

The market value for dairy products made in Arizona exceeds $762 million and is one of the top five agricultural commodities for the state, according to the Arizona Commerce Authority.

School and restaurant closures hit industry hard

The majority of dairy products, such as butter, cheese, sour cream and fluid milk, don’t go to grocery stores. They end up at restaurants and schools, according to Tammy Baker, general manager of Arizona Milk Producers, a nonprofit that promotes and supports the state’s dairy producers.

That demand disappeared in a matter of days after the COVID-19 pandemic hit in March, as state officials shut down spaces where large groups tend to gather to slow the spread of the virus.

Gov. Doug Ducey issued an executive order March 16 closing all K-12 schools for two weeks. He later extended the closure through the rest of the 2019-20 school year. In July, he ordered in-person school reopenings pushed back to Aug. 17.

Ducey ordered restaurants to halt dine-in service on March 19. Baker said restaurants that shifted to takeout and delivery used, at best, half the dairy they’d used before.

Farmers were stuck with thousands of gallons of milk and nowhere to send it, said Jim Boyle, manager of Casa Grande Dairy Co., which has 3,400 cows on 1,100 acres in Pinal County.

The lack of demand forced farmers to limit their production, which is not an easy feat in the spring months, when cows naturally produce more milk. For nearly two weeks, Boyle said, farmers dumped thousands of gallons of milk.

“We dumped a lot of milk and by-product down digesters and lagoons, and things like that,” Murfield said.

These digesters can convert fluid milk into different products such as gas and electricity, according to Murfield.

To adjust production, some farms changed what they fed their cows, switched from milking three times a day to just two, or allowed their cows to dry up early.

In May, Arizona began easing restrictions related to the pandemic, and restaurants restarted limited dine-in service.

Little by little, restaurant demand for dairy products started coming back, Baker said, but it was still lower than normal.

Since school has been out, Arizona Milk Producers has focused on giving more dairy products to schools around the state free of charge, Baker said.

“We’ve been spending a lot of time working with school food service directors that now have summer feeding programs going and alternative programs so those kids can get the food they need,” he said.

Food banks struggle to keep up with dairy donations

Arizona Milk Producers started looking at other consumers of dairy products to give product to. One of its bigger targets: food banks, which have seen an increase in patrons and demand, according to Angie Rodgers, CEO of the Arizona Food Bank Network.

Once the economic pain of the pandemic took hold, some larger food banks that normally saw 700 or 800 people a day were seeing up to 2,000 people, Rodgers said, while smaller food banks run by churches or community centers saw at least double their demand.

“I do think that (dairy) is a valuable and wanted commodity by consumers,” she said.

Rodgers said food banks are now receiving “a significant amount” of milk and other dairy products through local farms and the federal government. But ensuring those larger quantities make it safely to everyone who needs them comes with its own set of obstacles.

“The handling, the short shelf life, how it needs to be stored at certain temperatures, how quickly it needs to be distributed is a challenge … for all food banks,” she said.

Smaller food banks, especially those in rural areas, don’t necessarily have the refrigeration capacity needed to store the influx of dairy products, she said.

To combat this problem, the Arizona Food Bank Network issued about $1.4 million in infrastructure grants to help pay for new refrigerators, electricity bills and mileage reimbursement for volunteers who will deliver the milk across the state, Rodgers said.

Some foreign demand ‘could take years’ to return

Arizona dairy farmers said they’ve seen demand skyrocket in recent weeks. On June 20, for instance, cheese prices hit an all-time high after dropping to a 20-year low in April.

The strength of the prices will allow dairy producers to recoup some of their losses, said Murfield of United Dairymen of Arizona.

But not all of them, said Boyle, the Casa Grande farmer. Demand for foreign exports remains “very weak” in some parts of the globe, he said.

“Because of where we are located in Phoenix or Tempe, we export a lot of products to Mexico,” he said. But it’s too expensive for some Mexicans to buy Arizona products because the peso is too weak, Boyle said, adding, “That could take years to fix.”

With Arizona’s current surge in COVID-19 cases, dairy farmers are keeping an eye out for new slumps or spikes in demand. But having gone through it once, they feel more equipped to change course if needed, Boyle said.

“For right now, we’re fine,” he said. “But we are prepared … to cut back.”

Source: azcentral.com

After dairy farming for several years in Drums, Pennsylvania (Luzerne County) our family moved to a dairy farm in Berwick, PA (Columbia County). At first we used the existing buildings, but later constructed a large loose housing operation with a modern milking parlor.

We also purchased additional land in order to raise sufficient feed for our animals. With two brothers and two sisters heavily involved with their dairy operation, we thought we had it made.

In 1991, brother Matt and our dad went to a dairy meeting at the Berwick High conducted by the Progressive Agriculture Organization. Officials of Pro-Ag pointed out what could happen to our milk prices if something wasn’t done about the pricing formula.

With an ever-increasing number of grandchildren joining our farm operation, we made increases in milk production, but we always maintained a true family farm operation. We thought we were doing alright, but we experienced tragedies, like other farmers have gone through.

Unfortunately what Pro-Ag predicted in the 90s has caught up with most of our dairy farmers, especially the family farms. Many dairy farms have been forced out of business. If our remaining dairy farmers are going to survive, we must get behind the Federal Milk Marketing Improvement Act.

Dairy farmers can wait no longer. We urge everyone to get behind this proposed national bill.

Elaine Broyan, Faihopity Farms; Berwick, Pa.

Source: pennlive.com

The State of New Mexico is investigating groundwater pollution at a dairy farm in Artesia, after routine testing showed heightened levels of multiple pollutants originating from the facility.

Located about seven miles northwest of Artesia, Creekside Dairy submitted a stage 1 abatement plan to the New Mexico Environment Department which was intended to identify the magnitude of the contamination and seek possible remedies.

Water samples revealed concentrations of total dissolved solids, chloride and nitrate above state standards, per an NMED news release, 

The abatement plan was submitted on July 10.

Preliminary NMED data showed no impact to local public drinking water systems, the release read.

NMED must approve the plan within 60 days of its submission, and once the agency also approves of the dairy’s characterization of the site, NMED requires a stage 2 abatement plan to be submitted which would choose a strategy to clean up the contamination.

Here’s what to know about groundwater contamination at Creekside Dairy near Artesia.

What chemicals were released by the dairy into groundwater?

Recent analysis of groundwater runoff from the dairy, mostly associated with manure solids and fertilizer runoff, showed heightened levels of nitrate (NO3) above state standards as allowed in the dairy’s permit.

The dairy’s runoff of NO3 was less than the state standard of 10 milligrams per liter (mg/l) between 2012 and 2015, records show, but recently exceeded the standard at a concentration as high as 70 mg/l.

Nitrate is a common drinking water pollutant in rural areas, read a report from the Centers for Disease Control and Prevention. It can cause a lack of oxygen in the body, mostly in infants as a condition known as “blue baby syndrome.”

Symptoms of nitrate poisoning can also include difficulty breathing, nausea, diarrhea and vomiting along with dehydration, fast pulse, dizziness and convulsions or coma.  

Other runoff chemicals associated with the dairy included chlorine (Cl), total dissolved solids (TDS) and sulfates (SO4), but heightened levels are not considered a hazard to human health.

Heightened levels of SO4 and NO3 can be a risk for livestock.

The dairy is permitted for 56,000 gallons per day of runoff, but runoff from the facility recently began exceeding this limit, per the plan.

What is being done?

Continued monitoring of contaminant levels will take place in two underground aquifers at the dairy through seven monitoring wells and two production wells.

Soil sampling will also be conducted.

So far, the plan only identified one well in the northwest portion of the dairy with “significant” NO3 contamination above state standards.

Sampling would be conducted quarterly.

State investigators will obtain access agreements for sampling from private wells and will devise a plan to drill for additional soil sampling and monitoring wells.

Ultimately, the state will identify the contaminants present at the site and characterized the hydrology of the area to assist in choosing the correct plan for cleanup.

What is the schedule for the plan?

After the phase 1 abatement plan was submitted on July 10, a public notice was sent out 30 days later, Aug. 10.

After 60 days from the initial submission, NMED must approve the plan with site investigation beginning after another 60 days.

A quarterly progress report is due after another 30 days with site investigation completed 30 days after.

Sixty days later, the second quarterly progress report is due with a site investigation report submitted to NMED in 30 more days.

NMED will then meet to discuss the findings 30 days later, with revision due after another 30 days.

Is NMED reviewing any other facilities for groundwater contamination?

State records showed public notices for abatement plans submitted this year were published for Rockhill Dairy in Dexter on Feb. 11, and Ladshaw Explosives in Hobbs on Feb. 10.

Source: currentargus.com

Representatives Ron Kind (D-WI), Tom Reed (R-NY), Collin Peterson (D-MN), Glenn “GT” Thompson (R -PA), Anthony Brindisi (D-NY), Russ Fulcher (R-ID), Xochitl Torres Small (D-NM), and Anthony Gonzalez (R-OH) led this effort. In total, 104 members of Congress signed the letter.

“A strong demand for U.S. dairy exports abroad drives economic growth and creates jobs here at home. USMCA is designed to allow the U.S. industry to fulfill this demand from two of our largest dairy customers and we cannot allow Canada or Mexico to undermine the important gains secured in this trade deal. We are working alongside Congress, the U.S. Trade Representative and the U.S. Department of Agriculture to ensure Canada and Mexico are held accountable to their trade commitments,” said Tom Vilsack, president and CEO of the U.S. Dairy Export Council.

According to the International Trade Commission, if USMCA is implemented as negotiated, U.S. dairy exports are projected to increase by more than $314 million a year.

“The support for today’s bipartisan letter demonstrates the incredible impact the U.S. dairy industry has across the country, supporting our rural economies and fulfilling an essential role in feeding America. USMCA is a modernized trade deal that represents new opportunities for our farmers and processors after years of rural recession and the new challenges presented by the current crisis. We must utilize USMCA’s enforcement mechanisms to bring home its hard-fought wins for America’s dairy farmers,” said Jim Mulhern, president and CEO of National Milk Producers Federation.

Specific provisions of concern to the U.S. dairy industry highlighted in this letter include Canada’s administration of its dairy Tariff Rate Quotas (TRQ), the full and transparent elimination of Classes 6 and 7 and related dairy pricing program disciplines, and the enforcement of the side letter agreements with

Mexico that protect market access for U.S. common names cheeses. Urgent enforcement is needed as Canada and Mexico have already demonstrated reluctance to adhere to their trade obligations, as exhibited by Canada’s recently announced TRQ allocations that run counter to the intent of USCMA to expand access to the Canadian dairy market.

Teamsters Canada President François Laporte has released a statement calling out United States President Donald Trump for imposing a 10% tariff on Canadian aluminum and urging Ottawa to respond even more forcefully: 

“Donald Trump has betrayed the spirit of the USMCA and once again irritated the relationship between our two countries. For him to justify this new tariff on the grounds of national security, as he did in 2018, is laughable. Canada does not pose a national security threat to any nation, let alone the US.

“Teamsters Canada fully supports Ottawa’s decision to retaliate. In fact, the federal government should go even further, and suspend the dairy market access concessions it made to the US until the issue with the new aluminum tariff is resolved. 

“There is no rational economic justification for this new US tariff. It will raise costs for American businesses first and foremost, hurting workers and local economies in the process.

“Canadians and Americans are united by a tight bond. That relationship is strong enough to overcome anything Donald Trump throws its way. But for now, as a country, we must remain strong and not allow ourselves to be pushed around.”

Teamsters represent close to 125,000 workers across Canada. The International Brotherhood of Teamsters, with which Teamsters Canada is affiliated, has 1.4 million members in North America. Visit teamsters.ca for more information. Follow us on Twitter @TeamstersCanada and “like” us on Facebook at facebook.com/TeamstersCanada.

Since April, we have been estimating what milk deliveries could have been if many farmers hadn’t taken measures to limit their milk production. These estimates shifted from running above actual GB milk deliveries, to running roughly in line with it from the second week of July. Production is currently running slightly above our latest forecast, which was published in June, but only by a marginal 0.7%.

As of these latest estimates, milk production was cut by 75 million litres in Apr-June: 19m litres in April, 35m litres in May, and 21m litres in June*. This reduction was primarily driven by removing cows from the herd, as well as drying cows off early and limiting yield growth. As the season continues, the lingering impact of coronavirus on markets may have further impacts on milk production.  

*Please note that this includes routine revisions to the weighting we use in daily deliveries data and so these figures differ slightly from previous estimates we have published.

Source: ahdb.org.uk

Public comments on the Dietary Guidelines for Americans Committee’s scientific report may be submitted until Aug. 13. It’s a great time for dairy voices to be heard, said Miquela Hanselman, NMPF’s manager for regulatory affairs, in an NMPF Dairy Defined podcast.

·Dairy is recommended for consumption within all three healthy eating patterns featured in the report, with three servings per day recommended in the Healthy U.S. style eating pattern and Healthy Vegetarian Style patterns and two servings per day in the Healthy-Mediterranean pattern;

·The committee recognized milk as a nutrient-rich beverage that contributes positively to under-consumed nutrients, including potassium, calcium, phosphorus, magnesium, vitamins A and D, and others;

·Low-fat and nonfat dairy foods are recommended as nutrient-dense building blocks of a healthy diet; and

·In the committee’s first-ever recommendations for birth through 24 months, yogurt and cheese are recognized as complementary feeding options for infants ages 6-12 months, and dairy foods (milk, cheese and yogurt) are included in healthy eating patterns for toddlers 12-24 months.

To listen to the full discussion, clickhere. You can also find this and other NMPF podcasts onApple Podcasts,Spotify, SoundCloudandGoogle Play. Broadcast outlets may use the MP3 file below. Please attribute information to NMPF.

A new report from the U.S. Department of Agriculture shows how consolidation in the dairy industry continues to play out in Wisconsin and other dairy states.

The study from USDA’s Economic Research Service looks at trends in the dairy industry from the 1980s through 2019. It found that the pace of consolidation in dairy “far exceeds” the rate seen in most other agriculture sectors.

“Consolidation in U.S. crop production was widespread across crops and was persistent over time; over 30 years, consolidation in crops doubled. The equivalent measure in dairy shows a 16-fold increase in 30 years,” the report said.

The report found consolidation in hog and egg producers has occurred at a similar pace to dairy, but other livestock sectors have seen consolidation at a much slower pace.

Mark Stephenson, director of dairy policy analysis at the University of Wisconsin-Madison, said that larger operations are able to contain certain costs in ways that smaller operations can’t.

“It doesn’t mean that (smaller farms) are doomed to go away. But over time, they’ve been shifting and changing.”

The USDA report found that in the year 2000, farms with 2,000 cows or more only represented 4.5 percent of U.S. milk production. By 2016, that group represented 35.2 percent of all milk production.

The report also shows the number of licensed dairy herds in the country fell by more than half from 2002 to 2019. Herd numbers declined by 4 percent annually through 2017, but that rate accelerated to 6.8 percent in 2018 and 8.8 percent in 2019.

Much of the decline comes from a falling number of small commercial farms, defined by the report as farms with less than 200 cows. The report found that trend has been concentrated in the Midwest and Northeast, particularly in Minnesota, New York, Pennsylvania and Wisconsin.

Stephenson said the finding isn’t a surprise to many in Wisconsin, where the number of licensed dairy herds has been declining by record numbers in recent years.

“We’ve seen farms that have the types of things going on that indicate that they’re probably last-generation farms,” Stephenson said. “They are smaller. The operators may be older. They may not have a successor that’s coming into there, and their investments to replace some of the capital structure on those farms has just been in a holding pattern. And (leaving the industry) is probably a very sensible thing for them to do as they’re imaging their glide path to retirement.”

RELATED: Wisconsin Milk Production Held Steady In 2019, Despite Fewer Farmers, Cows

But Joleen Hadrich, extension specialist for the University of Minnesota, said the Midwest is losing more small commercial dairies because other regions have already experienced major consolidation.

“The reason why our small dairies have been able to succeed in the upper Midwest and the Northeast is due to the number of processors and local co-ops who are processing the milk. So there’s still a competitive market to where you can potentially sell your milk. And in these other regions, where it’s more consolidated, you may only have one processor as an option,” Hadrich said. 

Hadrich works primarily with dairy farms on improving their profitability given the rapidly changing market conditions.

The USDA report shows month-to-month changes in milk prices have grown in recent years. In the 1980s, milk prices ranged from a low of $11.30 per hundredweight — 100 pounds of milk — to a high of $14.30 per hundredweight. By the 2000s, that range has expanded to a low of $11.00 per hundredweight to a high of $21.90.

Hadrich said this price volatility is here to stay, so farmers need to think more about profitability and managing their risk.

“The price of a candy bar consistently increases, right? It doesn’t decrease over time. So it’s a unique challenge that dairy farmers face. So one of the top recommendations I have for my producers is that you really need to know your break-even or your cost of production,” Hadrich said.

She also encourages farms to use forward contracts, where they secure a price for future milk production.

Stephenson said these kinds of risk management tools are how large dairy farms have been able to protect themselves against price swings in the last five years.

“What we’ve tended to see is that our larger farms have been less reluctant to use risk management tools available to them,” Stephenson said. “They’re protecting themselves against the worst of the lows and they’re giving up some of the highs in order to be able to do that.”

Stephenson said there is no existing mechanism to prevent sudden changes in milk price. But he said some dairy processors have been taking their own steps to try to lessen the impact.

“Cooperatives or even dairy plants that buy directly from farms in the COVID crisis simply told their dairy producers, ‘We can’t handle as much milk. You need to cut back 5 percent’ or something like that,” Stephenson said. “They created a big disincentive for milk production above that level. That did reduce milk supply. That did help to rebound milk prices. So those kinds of mechanisms can be used to help moderate price swings.”

Stephenson argues consumers can also have some impact on the future of the dairy industry.

“I do think that a lot of people value a countryside that has an aesthetic to it that may include small farms,” Stephenson said. “If they’re willing to pay for those additional costs that are highlighted by a study like this, then fine, so be it, let’s have more of that kind of industry. But this is showing us that there are costs to maintaining some of the things that we might feel are desirable attributes to a dairy system.”

Tim Trotter, executive director of the Dairy Business Association, said continued consolidation and the growing size of farms is inevitable for the dairy industry, just like many other industries.

“That trend is probably not going to change. But that’s not to say smaller or mid sized farms are not profitable,” Trotter said. “It all comes back to their financial wellness and that’s not always dictated based on the size of the farm.”

Trotter also said that consolidation isn’t necessarily a “bad word.” There are many benefits for farmers who decide to consolidate, he said, from achieving lower production costs to allowing producers to have a better work-life balance by sharing the labor. 

“I think it’s just keeping your eye on the ball and knowing where you’re going and understanding when you need to make some changes,” Trotter said.

Source; article 

Dairy farmers have been on a roller-coaster ride over the past couple of years as the price of milk has surged, then fallen.

In 2019, Wisconsin dairy farmer Sarah Lloyd told Marketplace that milk was just too cheap because “we really do have too much milk on the market.”

Russia wasn’t importing any, and the European Union was producing more of its own.

Then the trade war with China hit. Milk prices crashed, and Lloyd had to borrow money to keep her 400-cow farm afloat.

“The Nelson family farm has been in business for over 100 years,” she said at the time. “We’re really just digging deep into the asset base that the generations have built.”

Some of her fellow dairy farmers got out of the business. Milk supply came down, and prices started going back up. 

When COVID-19 appeared, all of that milk suddenly had nowhere to go, and prices tanked again.

Today, Lloyd says the price gyrations of the past couple of years are not sustainable in the long run.

“No business can operate that way — just not knowing how you’re going to cover your costs, from an even day-to-day basis,” she said.

“When it comes to dairy, there is a very fine line in that supply and demand,” said dairy farmer Joe Bragger, president of the Wisconsin Farm Bureau Federation. “It only takes a few-percent shift to make a big impact on prices.”

When the food-service industry essentially shut down because of the pandemic, farmers cut back production and dumped milk they couldn’t sell.

Then, the government started buying excess dairy products to deliver to people in need.

And prices edged up.

Agricultural economist Dan Sumner at the University of California, Davis, said that’s when dairy farmers started ramping up production.

“They have added some heifer calves that might have not made the cut a year ago,” he said. “They’ve kept an old cow on a few more months that might not have been profitable a year or two ago.”

Sumner said that means prices could fall again.

And that worries Wisconsin dairy farmer Sarah Lloyd.

“You know, I still have my banker knocking at the door, saying, hey, remember that X amount of dollars you borrowed last year to try to hang on? Well, when are you going to pay that back?”

Lloyd said that’s going to be a lot easier if milk prices can remain stable.

Source: marketplace.org

Dairy processor Saputo is reporting higher profits and lower revenues in its first quarter as the COVID-19 pandemic upended consumer buying patterns.

The Montreal-based company says retail sales volumes increased, while revenues from food service and industrial segments declined last quarter as customers turned to home dining and away from restaurants.

Saputo says overall sales went up across the country — mainly in the fluid milk category — while sales dropped in the United States, which had an “impact on efficiency and absorption of fixed costs.”

Net profit climbed 16.9 per cent year over year to $141.9 million, while earnings per share hit 35 cents compared to 31 cents in the first quarter of last year.

Saputo reports revenues fell to $3.39 billion in the quarter ending June 30, down eight per cent from a year earlier.

On an adjusted basis, earnings fell to 35 cents per share from 42 cents per share, beating analysts’ expectations of 29 cents per share, according to financial data firm Refinitiv.

The board of directors has announced a half-cent increase in the quarterly dividend.

This report by The Canadian Press was first published Aug. 6, 2020.

A new report shows dairy — and specifically milk sales — are up across the country.

Experts say during the coronavirus pandemic, more people have been buying milk to cook and bake at home.

But the pandemic has also posed challenges for farmers.

Heather Schlesser is a dairy agent for UW-Extension Marathon County. She says, “I mean they went really low during COVID and everyone was contracting prices trying to make money so they can stay afloat. And what we’ve seen is those prices have actually come up higher than what they were anticipating. Higher than those contractable prices.”

According to data from Nielsen, from January through July, U.S. milk sales were up 8 percent from this time last year. Dairy farmers of Wisconsin say sales are up 10 percent.

Source: wkow.com

Dairy Farmers of Wisconsin is stepping private label discussions into high gear with grocery stores and restaurants to increase dairy product market opportunities. Increasing sales of private label cheese supports dairy farmers by increasing milk volume and growing cheese sales.

“Forty years ago, private grocery store labels were generic black and white and centered around value,” explains Rick Findlay, VP Foodservice National Accounts for Dairy Farmers of Wisconsin. “Now, it’s the antithesis of that. It is a higher quality product on the cutting edge of innovation.”

By promoting private label cheese, Dairy Farmers of Wisconsin builds Wisconsin Cheese distribution and leverages the strength of the Wisconsin Cheese brand.

Private label represents about 20-40% of a grocer’s assortment in a typical store. Currently, sales of private label products grow and outpace total store growth. Dairy Farmers of Wisconsin is partnering with Whole Foods and their trusted and popular in-house brand, 365 Everyday Value® label, to assure they use high-quality Wisconsin cheese.

“Grocers want their own label because the only place you can buy that product is at that store,” says Findlay. “Because of its exclusivity, grocers promote and push their private label.”

More than 200 cheese brands now feature the Proudly Wisconsin Cheese logo. This strong foundation, along with the upward private label trend, offers significant prospects to help further propel sales of milk and cheese. That’s good news for Wisconsin’s more than 7,000 dairy farms and 1,200 licensed cheesemakers who produce more than 600 varieties, types and styles of cheese.

“This incredible diversity gives grocery stores and restaurant operators an opportunity to offer a unique product, and exclusive flavors and varieties,” says Findlay. “We’ve developed long-term alliances with restaurant operators willing to use and enhance the value of the Wisconsin brand. We are promoting Wisconsin’s quality cheese for pizza, burgers and sandwiches.”

Dairy Farmers of Wisconsin takes a three-pronged approach to increasing sales at restaurants:

·Drive awareness of Wisconsin milk and cheese. Work with restaurant operators to place the Proudly Wisconsin Cheese and Proudly Wisconsin Dairybadge on their menus, websites, social platforms and billboards, and even painting the badge on restaurant walls.

·Enlighten restaurant operators about the quality and breadth of Wisconsin cheese. Invite owners and operators to visit Wisconsin dairy farms to learn first-hand how farmers produce high-quality milk.

·Grow volume. Work with multi-unit foodservice operators. Restaurant chains that serve pizzas, burgers and sandwiches are the largest consumers of cheese.

“We’re zeroing in on the large operators with hundreds of restaurants to gain incremental volume,” says Findlay. “Those who display the Proudly Wisconsin badge see growth between 5-10% in sales.”

“The Wisconsin badge is the hallmark for exceptional farmers and great milk and cheese,” says Findlay. “It embodies everything Wisconsin dairy foods are known for: quality, tradition, passion and innovation, as well as our farmers’ exceptional environmental stewardship and dedicated animal care.”

When the coronavirus pandemic first hit Central New York, dairy farmers suffered greatly from decreased demand.

The demand for milk is growing once again, giving local farmers a much-needed boost.

“Yeah, it has been a struggle for us. The last 5 years has been a struggle,” said Mike McMahon, Dairy Farmer.

A struggle made worse during the early stages of the pandemic when dairy farmers were hit hard by the loss of schools and restaurants to sell to.

“We saw the price of milk in May the same as it was 22 years ago. You can’t do that forever.”

But business for dairy farmers is bouncing back thanks to an increased demand for milk and milk products by consumers looking for comfort foods to help get them through the pandemic.

” We’re seeing an increase in consumption in consumption of whole milk and cheese and ice cream and yes we are seeing an increase in demand.”

That increased demand for milk is paying off. Nationwide milk sales are at 4.5 billion dollars from the same period last year an increase of nearly 12 percent.

A much-needed boost at just the right time.

“We really needed this right now for sure.”

Source: CNYcentral

Engaging farmers and others in the dairy community in the legislative process and empowering them to stay connected with issues that affect what they do and how they do it is a key goal of the Dairy Business Association and Edge Dairy Farmer Cooperative.

The groups’ use of Policy Picnics continues to be an effective way to accomplish this with members, who appreciate getting the latest information.

“Aside from the (coronavirus) concerns, some of us farmers are unsure of the reasons for the huge dip in the milk price recently,” said Tiffany Kohlmann, who milks 240 cows with her family near Clarksville, Wis.

Kohlmann was among dozens of DBA and Edge members who attended a Policy Picnic on July 16 at Shiloh Dairy in Brillion, Wis. Edge also held one of the events on July 28 at MoDak Dairy near Goodwin, S.D. Edge and DBA are sister organizations based in Green Bay, Wis., that together represent farmers throughout the Midwest in fighting for effective government policies at the state and federal levels.

Kohlmann said she thinks it’s vital for DBA and Edge to advocate for farmers’ needs. She said farmers have had the same inputs as always, but their expenses have increased while their profit has decreased.

“Store prices kept going up, but the farmer was not seeing that money,” she said of the earlier days of the pandemic. “It’s important for Edge and DBA to get involved to make sure that dollar from the consumer is passed down to the farmer, so that we can actually continue providing a nutritional product for the most efficient price.”

Building connections

At the picnics, members hear from the groups’ government affairs team, including a consultant from Washington, D.C., and chat one-on-one with other staff members, lawmakers and fellow farmers.

Members and staff both benefit from the interaction, Tim Trotter, executive director of DBA and Edge, said.

“The picnics are a great resource for both groups to get information and ideas from each other as well as connect on the policy issues,” Trotter said. “They are designed to be an informal gathering, as you would expect in rural communities, … and sometimes that’s where you get the best ideas and input.”

Trotter said farmers love the chance to network and share ideas about their businesses with each other and also engage more personally with staff.

“Building strong connections and prioritizing two-way communication is crucial for the organizations and the members,” he said. “We pride ourselves on being in close contact with our members, so engagements like this give us that point of contact. This is also a great opportunity to meet people and catch up.”

The chance to interact with lawmakers is also important, Trotter said.

“With the legislators in attendance, it’s all about the engagement aspect of it,” he said. “You move policy by engagement and by having that legislator or staff person creating a personal relationship with constituents, and in this case the constituents are dairy farmers.”

Jeremy Natzke, owner of Wayside Dairy in Greenleaf, Wis., appreciated being able to put faces with names at the Shiloh Dairy event.

“Creating a personal relationship helps keep legislators involved and provides a better understanding of the farmer perspective,” he said. “I have to speak up for myself.”

Making voices heard

Learning what issues will affect day-to-day farm operations and what to do more research on is a priority for Heidi Fischer, who helps run Fischer-Clark Dairy Farm in Hatley, Wis., and also serves on Edge’s board of directors.

Fischer said having a proactive voice in agriculture is critically important.

“People (including most lawmakers) really don’t know what’s happening on the farm, so the more we can make our voices heard, the more they will know about how this stuff truly impacts us as farmers,” Fischer said.

In addition to the direct connection between members and staff the Policy Picnics provide, Fischer said these engaging get-togethers are crucial to help ensure policies are sensible, whether on the state or federal levels.

“I also think it’s a way to just show everybody where our (groups’) activism is and how we’re spending our time.”

According to the proposed Dietary Guidelines for Americans (DGA) 2020-2025, whole milk will continue to be banned from schools across the nation. The U.S. Dietary Guidelines are only updated and published every 5 years. The time is now to ensure whole milk can once again be offered as a choice in school nutrition programs. Other dairy groups are applauding the Dietary Guidelines Advisory Committee (DGAC) for simply keeping dairy in their recommendations and including some dairy in birth-24 months — but this isn’t enough. We are missing the mark on recognizing the need for whole milk in the guidelines. This is too large of a mistake to allow.

This science includes large, government-funded studies on more than 75,000 people, demonstrating that saturated fats have no effect on cardiovascular or total mortality. The 2020 DGA Advisory Committee is relying instead on reviews conducted in 2015 and 2010, which were deemed by the NASEM to be “unsystematic” and, therefore, unreliable.

Without intervention, the Dietary Guidelines for Americans (DGA) will go into effect at the end of the year. We must delay the Guidelines until these issues have been fixed — but we need your help! Americans deserve sound science, not outdated studies.

Dairy Cares of Wisconsin’s first-ever “virtual fundraiser” has raised $210,000 for the Children’s Wisconsin.

For nine years, the non-profit organization’s signature event was a summer Garden Party that raised funds on behalf of the statewide health system (formerly Children’s Hospital of Wisconsin). However, in the midst of the coronavirus pandemic and social distancing protocols, the campaign shifted exclusively to multi-media platforms this year.

“We knew we wanted to do something special for our 10th anniversary, but we never imagined it would be a campaign built largely on cell phone texting,” said Jim Ostrom, Dairy Cares co-founder and a member of the Children’s Wisconsin Foundation Board. “In the midst of a COVID-fueled economic downturn, the generosity of the dairy and agriculture-related industries — and a lot of big-hearted individuals who just wanted to do something positive during turbulent times — is truly inspiring.”

With the $210,00 brought in by July 25, Dairy Cares’ lifetime total raised on behalf of Children’s Wisconsin now surpasses $1.5 million.

While the virtual auction component of the campaign culminated July 25, people interested in supporting the campaign can still give, via their smart phones, until midnight on Friday, July 31. Text “DAIRY” to 71760 to make your donation.

All proceeds will directly benefit the health system, which is headquartered in Milwaukee and offers 40 different care locations through the state.

“On behalf of the Children’s Wisconsin family, I wanted to express our gratitude to Dairy Cares of Wisconsin and their incredible community of supporters,” said Christine Baranoucky, Children’s Wisconsin Foundation vice president of engagement & stewardship. “Even though we couldn’t be together in person this year, you didn’t let that stop you from making a difference and raising critical funds for the kids of Wisconsin.”

In 2018, Children’s Wisconsin christened the new, state-of-the art “Dairy Cares of Wisconsin Simulation Lab,” which gives medical professionals a safe venue to learn and sharpen their skills.

The “donate by text’ technology allows donors to see specific ways their financial gifts can be put to use during the COVID-19 pandemic, such as the acquisition of cloth masks, hand sewn gowns, sanitizer and face shields.

About Children’s Hospital of Wisconsin

Headquartered in Milwaukee, the Children’s Hospital of Wisconsin provides statewide care through 40 different locations. These various sites provide a range of specialized services, from dealing with childhood terminal illness and cancer to psychological disorders. Experts in premature birth, the neonatal intensive care unit is ranked top in the nation. For more information, visit the website at chw.org.

Six years after the popular tagline was retired, “Got milk?” ads are back. A dairy industry-funded group is reviving the campaign, hoping to prolong the boost milk has gotten during the pandemic.

U.S. milk sales have been in freefall for decades as choices grew and consumers turned to soda, juices and plant-based alternatives like soy milk. Dallas-based Dean Foods, the nation’s biggest milk producer, filed for bankruptcy protection in November. Borden Dairy, also based in Dallas, followed with its own bankruptcy in January.

But then came the coronavirus pandemic, and milk sales saw a sharp rise. Kids who were no longer having meals at school were drinking milk at home. Adults — no longer commuting — had time for a leisurely bowl of cereal. Many people were buying milk to bake and cook at home.

Unlike the original “Got milk?” campaign, which debuted in 1994 and was known for its glossy photos of celebrities sporting milk mustaches, the new campaign reflects the age of social media.

Television ads feature videos culled from the Internet of people doing funny things with milk, like opening a gallon with their toes or jumping into a kiddie pool filled with milk and cereal. In one TikTok spot, Olympic gold medalist Katie Ledecky swims the length of a pool with a glass of chocolate milk balanced on her head.

There will also be tie-ins with other brands like Hershey, which will offer in-grocery coupons when shoppers buy milk with chocolate syrup.

From January through July 18, U.S. milk retail sales were up 8.3% to $6.4 billion, according to Nielsen. During the same period last year, milk sales were down 2.3%.

Milk sales saw their biggest year-over-year jump of 21% in March, when buyers were stocking up their pantries. But they remained elevated even after panic buying subsided. In June U.S. milk sales were up 2%.

Sales of milk alternatives have also risen. U.S. sales of oat milk were up 270% to $132 million in the 29-week period, Nielsen said. Almond milk, coconut milk and rice milk also saw gains.

Yin Woon Rani, CEO of MilkPEP — short for the Milk Processor Education Program, which is funding the campaign — said cow’s milk ticks the boxes of what consumers are looking for during a pandemic: comfort, nutrition, stability and versatility. Social media research showed a 40% increase in positive mentions about milk this year, she said.

“It’s been a really exceptional year,” she said. “We’re very focused on, ‘How do we sustain that demand?’”

Other brands have also noted that consumers are looking for comfort foods. McDonald’s said last week that it will focus on familiar menu items — not newer innovations — when it ramps up marketing in the second half of this year.

“Consumers are still looking for the trusted favorites,” McDonald’s President and CEO Chris Kempczkinsi said.

The “Got milk?” campaign will likely run through the end of this year. Rani wouldn’t say how much MilkPEP is spending.

Rani said the organization debated a lot of taglines for the campaign but found “Got milk?” resonated the most. Even teens too young to have seen the original ads knew the line, she said.

“Sometimes the answer you’re looking for is right under your nose,” she said.

The U.S. Department of Agriculture (USDA) today announced the award of nearly $1 million for an innovative pilot program designed to encourage Supplemental Nutrition Assistance Program (SNAP) participants to purchase and consume milk as part of a healthy, balanced diet. This pilot project builds on the success of previous incentive programs, which have shown positive impacts on the healthfulness of a persons’ diet. Through a cooperative agreement with the Baylor University Collaborative on Hunger and Poverty, SNAP participants shopping at select grocery stores in Texas will receive incentives for purchasing qualifying milk.  

“Making nutritious foods more accessible is a USDA priority, and we are always looking for ways to leverage innovative strategies to help achieve that goal,” said Pam Miller, Administrator of USDA’s Food and Nutrition Service (FNS). “Today’s grant award will test the use of incentives in encouraging SNAP households to purchase and consume more milk – a win-win for both participants’ diets and America’s dairy farmers.” 

Background

The Healthy Fluid Milk Incentive (HFMI) pilot was established by the 2018 Farm Bill to encourage consumption of milk, which is part of a well-rounded, nutritious diet as described in the Dietary Guidelines for Americans. The program is expected to be fully operational by May 2021, and incentives will be tested for one year. The pilot is part of Food and Nutrition Service’s commitment to employing innovative techniques to help make nutritious foods more accessible for low-income Americans. 

Baylor University Collaborative on Hunger and Poverty received this $930,000 award through a competitive process and will be partnering with South Plains Hunger Solutions Coalition and Lowe’s Supermarkets to develop and test incentives at local Food King grocery stores in Littlefield, Lubbock, and San Angelo, Texas. Once the HFMI pilot is operational, shoppers using SNAP benefits at these locations to purchase qualifying fluid milk (pasteurized, unflavored and unsweetened cow’s milk – skim or 1%) will receive a coupon for additional free milk. FNS will conduct an evaluation of the pilot results. 

The HFMI pilot builds on the success of previous incentive programs, which have been shown to impact households’ purchasing decisions and diet. The Healthy Incentive Pilot found that SNAP participants receiving incentives for purchasing fruits and vegetables consumed 26% more fruits and vegetables per day than those who did not receive an incentive. The Healthy Incentive Pilot was a precursor to the Food Insecurity and Nutrition Incentive grant program, which has since been renamed the Gus Schumacher Nutrition Incentive Program (GusNIP). GusNIP is administered by FNS and USDA’s National Institute of Food and Agriculture and supports projects to increase the purchase of fruits and vegetables among SNAP recipients.

USDA’s Food and Nutrition Service administers 15 nutrition assistance programs that leverage American’s agricultural abundance to ensure children and low-income individuals and families have nutritious food to eat. FNS also co-develops the Dietary Guidelines for Americans, which provide science-based nutrition recommendations and serve as the cornerstone of federal nutrition policy. Follow us on Twitter at @USDANutrition.  

The main takeaway for dairy foods following the Dietary Guidelines Advisory Committee’s (DGAC) scientific report is that National Dairy Council (NDC) and the science behind dairy’s role in nutrition and health remains strong, leading to good news for the dairy community and for consumers.

The U.S Department of Agriculture (USDA) posted the 2020 Dietary Guidelines Advisory Committee’s final scientific report, an objective review of the latest available science on specific nutrition topics. The report’s evidence-based findings will inform USDA and the U.S. Department of Health and Human Services (HHS) as they co-develop the 2020-2025 Dietary Guidelines for Americans, which will provide recommendations on what to eat and drink to promote health and prevent chronic disease.

“Science-based dietary guidance is critical to ensuring a healthy future for America,” said USDA Food, Nutrition, and Consumer Services Deputy Under Secretary Brandon Lipps. “USDA greatly appreciates the high-quality work done by this committee comprised of our nation’s leading scientists and dietary experts. We look forward to thoroughly reviewing the report and leveraging their scientific advice as we partner with HHS to develop the next edition of the Dietary Guidelines for Americans.”

USDA and HHS are accepting written public comments on the committee’s final report through August 13, 2020. The public will also have an opportunity to provide oral comments on the scientific report to the departments at a public meeting on August 11, 2020.

Background:

Moving into the next stage of development of the Dietary Guidelines for Americans, USDA and HHS will leverage the scientific advice in the committee’s report, as well as comments from the public and other federal agencies to develop the upcoming edition of the dietary guidelines. The departments plan to publish the 2020-2025 Dietary Guidelines for Americans by the end of December 2020.

Throughout the entire 2020-2025 dietary guidelines process, USDA and HHS have taken numerous steps to promote transparency, integrity and public involvement. Most recently, the advisory committee held a webinar – the first of its kind in the dietary guidelines process – to publicly present their draft conclusions. The committee considered all of these conclusions holistically to develop the report they provided USDA and HHS.

In another unprecedented step of transparency, the topics and questions the committee examined were made public prior to scientific review. These topics and questions were defined with input from the public and other federal agencies, and based on how well they informed dietary guidance for public health. Similar to prior committees, this committee addressed all of the topics and the majority of the scientific questions set forth for review. All of this information can be found in their scientific report document released today.

The committee’s work was informed by more than 62,000 public comments, a testament to USDA and HHS’s commitment to public involvement in the dietary guidelines process. For comparison, prior committees received an average of about 450 comments. To date, the public has had more than 18 months to provide comments to help shape the committee’s review and the forthcoming dietary guidelines.

In addition to co-developing the Dietary Guidelines for Americans, USDA’s Food and Nutrition Service (FNS) administers 15 nutrition assistance programs that leverage American’s agricultural abundance to ensure children and low-income individuals and families have nutritious food to eat.

Dairy farmers across Maharashtra staged agitations to draw the state and central governments’ attention to the crisis they have been facing due to the falling milk prices. They wanted the governments to meet their demands immediately.

Scientific evidence suggests that consuming dairy products is associated with decreased risk for obesity, Type 2 diabetes, cardiovascular disease and some types of cancer1,2. Most of these studies have searched, evaluated, selected, summarized, and performed meta-analyses of several observational studies. While randomized experiments would be best to test the health benefits of consuming dairy products, it might not be feasible to perform them. There are several factors that lower the risk of chronic diseases (e.g., exercise). However, this article will discuss the effect consuming dairy products may have on decreasing the risk of chronic diseases and the importance on human health.

Consumption of dairy products decreases the risk of chronic diseases

Researchers suggest consuming milk and dairy foods might provide a survival advantage, based on the effects of consumption decreasing the risk of chronic diseases1. In 2017, among the top 10 leading causes of death in the U.S., heart diseases, 23%; cancer, 21%; strokes, 5%; and diabetes, 3%, accounted for over half of the leading causes of total deaths3.

Meta-analyses of over 70 studies found that people who consumed more dairy products had a relative risk <1 for most chronic diseases1. This means that consuming dairy products acts as a protective factor for chronic diseases.

How do we interpret relative risks –RR–?

• RR<1, the outcome, or chronic disease in this case, is less likely to occur if there was exposure, or consuming dairy foods. These are known as “protective factors.”
• RR=1, there is no association between the outcome and the exposure.
• RR>1, the outcome is more likely to occur if the exposure was present.

Table 1 summarizes the results of these meta-analyses –RR with 95% confidence intervals–, the number of studies used, and the total number of subjects. Higher

consumption of dairy products was a protective factor for diabetes, metabolic syndrome – i.e., raised levels of blood glucose and lipids, body fat and blood pressure–, heart disease, stroke, colorectal cancer, and bladder cancer(1).

The only exception was prostate cancer; consuming dairy products had a small effect in increasing the risk of developing the disease1 (Figure 1). However, this could be biased if consuming dairy products increased the longevity of men involved in these studies, since prostate cancer is associated with age. This would make sense, considering that consuming dairy foods is a protective factor for chronic diseases that caused roughly half of U.S. deaths in 2017(3).

Why dairy consumption decreases the risk of chronic diseases?

The mechanisms underlying the effect of dairy foods consumption on decreased risk of chronic diseases have not been clearly defined. However, recent research suggests that dairy foods may help to regulate appetite, stimulate weight loss and prevent weight gain2. This might partially explain why consuming dairy products would decrease chronic diseases for which being overweight and obesity are risk factors, such as Type 2 diabetes, cardiovascular diseases, etc.

Potential mechanisms may involve calcium’s ability to reduce fat absorption due to formation of calcium soaps with fat in the intestine and increase fecal fat excretion, increase break down of body fat, and decrease the formation and storage of body fat. In addition, lactose, milk proteins –especially whey proteins– and peptides derived from protein’s digestion may regulate food intake and decrease appetite. Lastly, medium chain fatty acids present in milk reduce body fat generation and storage2.

In conclusion, these data suggest that dairy foods are not just a great source of high-quality protein, calcium, potassium, iodine, and vitamins A, D and B (B2, B3, B12); its consumption could decrease the risk of chronic diseases.

Source: Texas A&M Extension

Midwest Dairy hosted the third annual Dairy Experience Forum on July 15, convening more than 400 members from the entire dairy supply chain to discuss trends, opportunities, innovation and the impact of the COVID-19 pandemic.

The theme, “A Disruptive Forum on Today’s Consumer and Dairy’s Opportunity,” built upon the past two years of learning and closely examined how current events have created unique circumstances influencing consumer behavior in 2020 and beyond.

“Although the Dairy Experience Forum took a different form this year by going virtual, we’re thrilled to bring the dairy community together once again to facilitate important discussions and collaborate to strengthen our collective position,” said Molly Pelzer, CEO of Midwest Dairy. “This year’s challenges have also provided opportunities for dairy, and we’re fortunate this conference allows us to explore how we can maximize them together.”

The forum kicked-off with a live consumer focus group before moving into a line-up of industry speakers and panels and concluded with a keynote address from a motivational speaker.

The live consumer panel identified consumer perceptions surrounding health benefits, animal care and sustainability. While consumer panelists shared specific concerns, they also shared enthusiasm for dairy and habits that showcased opportunities for the dairy industry. Among these were increased yogurt consumption, exploring new cheeses and cooking with dairy foods such as buttermilk and sour cream.

A common thread throughout each presentation was analyzing how COVID-19 has affected consumer shopping behaviors, especially as it relates to dairy:  

Sales up. As of June 21, retail dairy sales in the U.S. are up 17% in 2020, outperforming other edible category increases during this time.

Consumption trends. During COVID-19 restrictions, those buying more dairy (up 25%) were increasing their consumption the most at breakfast and snack times.

Yogurt gains. Based on the results of a survey commissioned by Midwest Dairy, consumers indicated they plan to increase their yogurt usage in the post-pandemic world, more so than cheese, milk or butter.

Online shoppers. Online dairy shoppers are not motivated by the same elements as in-store dairy shoppers, and 70% of those who began purchasing dairy online during COVID-19 say they will continue.

Drivers the same. Dairy drivers are the same as before (taste, nutrition/health, comfort, familiarity) but have increased in importance in the eyes of consumers.

“Now, it will be up to the dairy community to tap into this expanded market share and retain consumers’ enthusiasm for the category,” said Allen Merrill, chairman of, Midwest Dairy. “We can do this by focusing future innovation on products that meet consumers needs for taste, affordability, nutrition, convenience and accessibility.”

Attendees also heard from a panel consisting of a dairy farmer, a cooperative processor and a consumer branded product manufacturer about what they are doing to reach the industry’s 2050 Environmental Stewardship Goals. Each of the panelists agreed that sustainability starts on the farm, while also nodding to the outstanding efforts and practices that farmers do each day to decrease their carbon footprint, improve water quality and reduce and optimize water usage. Discussion focused around how the entire dairy supply chain needs to remain committed to sharing dairy’s sustainability story to continue to build trust in dairy.

Motivational speaker Harris III left some impressionable words with the group: “Worry is a waste of imagination.” Taking the insights gained from the forum, members of the dairy supply chain can use their imaginations to move dairy forward, innovate, be creative and enter the post-COVID era stronger than ever before, he said.

Cooperatives Working Together (CWT) member cooperatives accepted ten offers of export assistance from CWT that helped them capture sales contracts for 862,008 pounds (391 metric tons) of Cheddar and Monterey Jack cheese, and 3.3 million pounds (1,489 metric tons) of whole milk powder. The product is going to customers in Asia and South America and will be delivered from August 2020 through January 2021.

CWT-assisted member cooperative export sales contracts for 2020 total 22.108 million pounds of American-type cheeses, 6.246 million pounds of butter (82% milkfat), 1.960 million pounds of anhydrous milkfat, 3.784 million pounds of cream cheese and 29.471 million pounds of whole milk powder. The product is going to 28 countries in seven regions. These sales are the equivalent of 642.6 million pounds of milk on a milkfat basis.

Assisting CWT members in moving dairy products overseas through the Export Assistance program is critical during the challenging times U.S. dairy farmers and cooperatives are facing. The Export Assistance program helps in strengthening and maintaining the value of dairy products that directly impact producers’ milk price. The program is helping member cooperatives grow and maintain world market share for U.S dairy products and is a significant factor in maintaining the total demand for U.S. dairy products and the demand for U.S. farm milk.

Dairy product and related milk volume amounts reflect current contracts for delivery, not completed export volumes. CWT pays export assistance to bidders only when export and delivery of the product is verified by required documentation.

All dairy farmers and dairy cooperatives should invest in CWT. Membership information is available on the CWT website.

A decisive victory for small family dairy farms was won this week in what has been called a civil war in the California dairy industry. In a proceeding before The California Department of Food and Agriculture, Administrative Law Judge Timothy J. Aspinwall issued a much-awaited decision on a petition that could have put hundreds of California family dairy farms out of business. Fortunately for those farms, the administrative law judge ruled that the petition, which sought to eliminate California’s milk quota system was “not legally valid” and recommends that Secretary of Food and Agriculture Karen Ross deny the petition in its entirety.

The petition sought to terminate the 50-year-old California milk quota system—a huge asset for the California dairy industry that is worth hundreds of millions of dollars and owned by most of the state’s dairy farms, especially smaller family-run farms. The decision is a huge win for California dairy farms that have invested their revenue to purchase quota, and whose survival hung in the balance. As dozens of farmers testified at the hearing in June, terminating quota would have robbed them of their and their families’ decades of hard work seized one of their most valuable assets without paying them any compensation, forced them out of business, resulted in huge lay-offs, and thrown the state’s dairy industry into financial chaos. Examples of the testimony are:

Terminating quota would be “financially catastrophic” and is a “matter of life or death for our dairy.” – Maia Cipponeri, fourth-generation dairy farmer from Merced County

“If quota were suddenly terminated, I would be immediately plunged into severe debt that I could not pay . . . . In addition to financial ruin, this would ruin my son’s dream of continuing the family of California dairymen.” – Frank Borges, a third-generation dairy farmer from San Joaquin County

A group of farmers who successfully opposed the petition throughout these proceedings were represented by the law firm of Cotchett, Pitre, and McCarthy, LLP.

“This ruling ends a cynical back door attempt to illegally take assets from dairy farmers.” – Niall McCarthy, Cotchett, Pitre & McCarthy, LLP

About Cotchett, Pitre & McCarthy, LLP

Cotchett, Pitre & McCarthy engages exclusively in litigation and trials and has earned a national reputation for its dedication to prosecuting or defending socially just actions. To learn more about the firm, visit www.cpmlegal.com

The Dairy Margin Coverage Program and with other federal risk management programs have served farmers well during the coronavirus crisis and will continue to offer effective aid, as long as farmers participate, House Agriculture Committee Chairman Collin Peterson said in an National Milk Producers Federation podcast.

Peterson also said that emergency aid provided by Congress and the U.S. Department of Agriculture has been necessary to keep farmers afloat – but financial risks to farms haven’t ended. He also reflected on how politics has evolved during his time in Washington and his own place in it as one of its most conservative Democrats.

To listen to the full discussion, click here. You can also find this and other NMPF podcasts on Apple Podcasts, Spotify, SoundCloud and Google Play.

Source: nny360.com