Archive for News

New York Dairy Processing Plant Expands

The dairy processing plant HP Hood, located in Lynnfield, Massachusetts, plans to invest $120 million in expanding its Batavia, New York, location. The current plant is 448,185 square feet; the addition of 32,500 square feet would boost its capacity by 10%, or 20 million gallons of dairy products annually. As a result, the factory will produce close to 150 million gallons a year. New batching and processing equipment will also be a part of the development, enabling the business to start a new manufacturing line and boost capacity. Because it will help to develop the dairy center in the northeast, the project is anticipated to have a positive impact on the agriculture industry as well as the Genesee Valley Agri-Business Park.

Purina Animal Nutrition is offering $20,000 in scholarships

Purina Animal Nutrition, along with the Land O’Lakes Foundation, has opened its scholarship program designed to assist students with experience in agriculture and livestock production in pursuing their passions and furthering their educations.
 
Now, along with undergraduate students, current high school seniors who have experience raising and caring for small or large livestock, equine and/or poultry, are eligible to apply for one of four $5,000 scholarships. Along with the impact animal agriculture has had on their lives, desired applicants will be able to demonstrate academic excellence, leadership skills, community involvement and have a clear vision for their future.
 
Scholarship applications will be accepted March 18 through April 17. Awardees will receive their scholarship funds for the Fall 2024 semester at their current or anticipated educational institution. The scholarship is open to all high school seniors who plan to enroll in full-time undergraduate study at an accredited two- or four-year college, university, or vocational-technical school for the entire upcoming academic semester/term and undergraduate students enrolled in an accredited two- or four-year college, university or vocational-technical school.
 
To learn more about the Purina Animal Nutrition Scholarship and apply today, visit https://www.purinamills.com/scholarship.
 
Purina Animal Nutrition LLC (www.purinamills.com) is a national organization serving producers, animal owners and their families through more than 4,700 local cooperatives, independent dealers and other retailers throughout the United States. Every feed and nutritional product Purina makes is packaged with a purpose: to maintain the integrity of the innovative nutrition inside. Purina is now partnering with forward-thinking retailers and producers to give this packaging new life in an effort to leave a lasting legacy and impact for generations to come. Purina Animal Nutrition LLC is headquartered in Arden Hills, Minn. and is a wholly-owned subsidiary of Land O’Lakes, Inc.

National Dairy Board Scholarship Applications Being Accepted

Applications are being accepted for college scholarships that are awarded by America’s dairy farmers and importers through the National Dairy Promotion and Research Board (NDB).

Eleven scholarships worth $2,500 each will be awarded, in addition to a $3,500 James H. Loper Jr. Memorial Scholarship to one outstanding recipient. NDB funds, in part, Dairy Management Inc. (DMI), which manages the national dairy checkoff program.

Undergraduate students in their sophomore through senior year for the 2024-25 academic school year and enrolled in college/university programs that emphasize dairy are eligible. Relevant majors may include: communications/public relations, journalism, marketing, business, economics, nutrition, food science and agriculture education.

Scholarships are awarded based on academic achievement, an interest in a career in a dairy-related discipline, and demonstrated leadership, initiative and integrity. Candidates must complete an application form, submit an official transcript of all college courses, and write a short statement describing their career aspirations, dairy-related activities and work experiences.

Applications can be found at usdairy.com/about-us/dmi/scholarship

Completed applications must be received no later than May 31, 2024, at 11:59 p.m. CST. Questions about the program can be submitted to ndbscholarships@dairy.org

Dairy Management Inc.™ (DMI) is funded by America’s more than 26,000 dairy farmers, as well as dairy importers. Created to help increase sales and demand for dairy products, DMI and its related organizations work to increase demand for dairy through research, education and innovation, and to maintain confidence in dairy foods, farms and businesses. DMI manages the National Dairy Council and the American Dairy Association and founded the U.S. Dairy Export Council and the Innovation Center for U.S. Dairy.

Wisconsin dairy CAFO appeals pollution permit

The Wisconsin Dairy Alliance has filed an appeal against the Wisconsin Department of Natural Resources over pollution discharge elimination system licenses. The initial complaint argued that the DNR lacked the jurisdiction to require farmers to get licenses under the state’s water quality statutes. Calumet County Judge Carey Reed dismissed this argument in January. Kim Bremmer of Venture Dairy Cooperative feels that farmers should not be required to get a discharge permit if they are not dischargers. Bremmer believes their appeal will be successful based on prior court decisions, since the federal Supreme Court has ruled against the EPA using identical wording. Bremmer thinks the state should halt polluters, but Wisconsin already has the nation’s strictest water regulatory regulations for big farms, and they are not polluting the state’s rivers. The Wisconsin Manufacturers and Commerce Litigation Center is handling the appeals case.

Charles Wayne Lutz Obituary

Charles Wayne Lutz, 72, of Mocksville, was unexpectedly called to his heavenly home on Sunday, March 10, 2024.

Wayne was born on January 31, 1952, in Catawba County, to the late Charles Lewis and Ethel McLail Compton Lutz. Wayne was a member of First United Methodist Church. He was raised on the family Jersey dairy farm, to which he returned upon graduation from NC State in 1974. Wayne relocated to Davie County in 1979, renting the dairy facility owned by Richard and Mable Allen. In 1981, he purchased Deerview Jersey Farm at its current location off of Cana Road. He milked pure bred Jerseys until his semi-retirement in 2017, retaining enough heifers to allow his grandchildren to participate in dairy livestock shows. Wayne was known as loving, funny and genuinely kind by those lucky to share his life.

In his youth, he was an accomplished 4-Her, honing his dairy judging and showing skills at local, regional and national level. Later he was a frequent judge of the same, judging in excess of 300+ county and district dairy shows. Wayne took immense pleasure is working with and promoting youth activities.

He was honored to be inducted into the NC State Fair Livestock Hall of Fame, having exhibited at every NC State Fair since the age of 3 and being Premier Breeder and Exhibitor numerous times; was awarded the Marvin E. Sengar Distinguished Dairy Farmer, as well as Davie County Conservation Family of the Year in 1990 and 2011.

He is preceded in death by his parents, and infant brother, Steven.

He is survived by his wife of 42 years, Karen and their three daughters, Whitney Munden (Christopher) of Advance, Kelsey Daye Lutz (Shamus Eberhardt) of Anacortes, WA, and Avery Lutz of Richmond, VA; siblings, Brenda Lutz of Huntersville, Corey Lutz (Bridgett), and Kevin Lutz; all of Lincolnton; and grandchildren, Coet Munden, Piper Munden, Atlas Munden, Wilder Munden, and Oslo Eberhardt.

A memorial service will be held at 11 am, Thursday, March 14, at Carrigan Farms West entrance 1213 Oakridge Farm Hwy, Mooresville, with Rev. Lori Anne Bowen officiating. The family invites friends visit with them following the service for lunch, fellowship and the celebration of a life well lived.

In lieu of flowers, please consider memorials to Davie High FFA, 180 War Eagle Drive, Mocksville NC 27028.

Online condolences www.lambertfuneralhomenc.com

 

World Championship Cheesemaker Claims Fourth Victory

The fourth World Champion Cheese title, and the third consecutive one, has gone to a little mountain creamery in Switzerland.

Gourmino cheese is made in Bern, Switzerland, by Michael Spycher at Mountain Dairy Fritzenhaus. The river that runs beside the creamery is the inspiration for his Hornbacher cheese. It beat out 3,302 other submissions with a score of 98.98 out of 100.

Joe Salonia of Gourmino was there in Madison, Wisconsin on Thursday when the winner was announced. He explains that the cheese is crafted using milk from local, small farmers. “There are nine or ten dairy farmers within five or six kilometers who will deliver fresh, raw, beautiful Swiss cows milk twice a day.”

The Area of Protection (AOP) contains stringent regulations, according to Salonia, which affect local Swiss farmers. They still need to spend time outside, even in the dead of winter. The cows may eat grass or hay, with a little grain or snack every now and again, but silage—preserved hay—never allowed since it would induce gas bubbles, which would ruin the lengthy ripening process of raw milk cheese.

The majority of the cows milked by the local farmers are Holsteins or Red Fleckviehs, a cross of Simmental and Red Holsteins, according to Salonia.

Four world championships have been won by Michael Spycher’s creamery, with the latest three being consecutive.

On a biannual basis, the Wisconsin Cheese Makers Association holds the World Championship Cheese Contest.

Heavy pathogen discharge leads Michigan AG to sue dairy farm

Michigan’s attorney general’s office is suing J&D Brenner Farms in Allegan County after environmental authorities discovered elevated amounts of dangerous bacteria in drainage into the Kalamazoo River. Attorney General Dana Nessel filed a lawsuit against Brenner in February, stating that the farm is polluting waterways with nutrients and diseases due to inappropriate animal waste management. The farm produces around 650 cows on 8 acres in the manner of a concentrated animal feeding operation (CAFO), but does not have the permission necessary of such operations. According to the state, the Brenner farm violates state water quality standards and creates a public nuisance.

In 2016, regulators informed Brenner that the farm housed and fed too many cows to operate without a pollutant discharge permit. State inspectors visited the farm in April 2017 and October 2019, and issued a violation notice after discovering “unlawful discharge of production area waste” into drains that go to the Rabbit River, which joins the Kalamazoo River near New Richmond. There are two waste storage lagoons on the farm, but the state claims Brenner has not submitted design documents, and the storage capacity is unclear.

In January 2023, state testing revealed unusually high levels of biological oxygen demand in a drain outfall, which may degrade water quality. Testing also revealed “extreme readings” for chlorides, suspended particles, turbidity, ammonia, nitrates, phosphorus, calcium, copper, magnesium, zinc, and acidic pH levels. In September and October 2023, watershed monitoring discovered E. coli in a drain near the farm at concentrations 14 times higher than the permissible state threshold of fecal coliform bacteria in surface water.

The state has urged Ingham Judge Wanda Stokes to order Brenner Farms to cease releasing nitrogen and pathogens, acquire and comply with a discharge permit, and pay civil penalties.

The fatal Listeria outbreak may land a raw cheese manufacturer in jail.

Vulto Creamery, a former cheesemaker in Walton, New York, has pleaded guilty to inducing the introduction of contaminated food into interstate commerce. The firm was connected to a Listeriosis epidemic in 2014 and 2017, when swabs obtained from the cheese production plant between July 2014 and February 2017 tested positive for Listeria monocytogenes, the organism that causes Listeriosis when consumed. The epidemic caused two fatalities and eight hospitalizations in four states: Connecticut, Florida, New York, and Vermont. The cheeses were dispersed around the country, with the majority sold in retailers in the northern and Mid-Atlantic states, California, Chicago, Portland, Oregon, and Washington, D.C. The FDA and CDC investigated and discovered that the company’s soft raw milk cheese was the cause of the incident.

In 2018, a federal judge ordered Vulto and his firm to stop producing ready-to-eat aged soft, semi-soft, and hard cheeses until they comply with food safety rules and take corrective procedures that satisfy the FDA. The government said that the cheeses were manufactured, packaged, or stored in unclean circumstances, and that the company never sought to identify the kind of bacterium or its source. The FDA also claimed that the corporation neglected to undertake microbiological testing on its completed product despite the discovery of Listeria on food contact surfaces.

On March 5, 2024, Vulto pleaded guilty in a Syracuse federal court to one misdemeanor count of causing the introduction of contaminated food into interstate commerce. According to US Attorney Freedman, the investigation and prosecution will hold the defendant and his company responsible for causing disease and death to customers via hazardous practices in an absolutely avoidable tragedy.

Minnesota dairy farm denies stealing $3 million from hundreds of workers.

Attorney General Keith Ellison is suing Evergreen Acres’ owners, Keith Schaefer and his daughter Megan Hill, for allegedly taking over $3 million in pay from hundreds of employees while billing them for dismal living accommodations in barns and garages. The lawsuit compares Evergreen Acres’ working conditions to Upton Sinclair’s “The Jungle,” with employees working 12-hour days six or seven days a week and being charged rent to sleep in the same bed as others doing opposite 12-hour stints.

Schaefer and Hill reject almost everything in the lawsuit, including the fact that many of their employees are undocumented immigrants, mostly from Mexico. They acknowledge to employing hundreds of workers over the last three years, many of whom were recruited from Mexico by present staff. They also deny consistently underpaying workers by up to 32 hours every two weeks and neglecting to pay overtime payments.

Ellison’s office claims that the accommodation workers were charged $70-$150 every two weeks was not appropriate for human habitation, and that Evergreen managers conducted unannounced inspections and withheld money from workers’ salaries for unclean quarters.

Dairy farms are among the most hazardous workplaces in the nation, since they depend on foreign labor and get minimal regulatory control. Ellison accused Evergreen Acres of abusing workers’ infirmities, claiming that many are from the Oaxaca area and speak Zapotec as their first language and Spanish as a second. Workers are required to do “physically demanding tasks that run the risk of death and serious injury.”

Walmart to Build Third Milk Processing Plant in Texas

Walmart, America’s biggest retailer, has revealed plans to construct its third milk processing plant in Robinson, Texas, costing $350 million and slated to open in 2026. The facility will largely receive milk from Texas dairy farmers, after the company’s decision in October of last year to construct a second processing plant in Valdosta, Georgia. Walmart formerly bought its great-value branded milk from other dairy cooperatives, but it has subsequently created a network of milk processing factories to control the supply of price-sensitive food staples.

The new facility will deliver high-quality milk largely from Texas dairy farmers, demonstrating Walmart’s commitment to creating a more robust and transparent supply chain. Bruce Heckman, Walmart’s vice president of manufacturing, stated his delight about bringing high-quality milk to Texas and the neighboring states.

Leaders throughout Texas have weighed in on the retailer’s announcement, with Governor Greg Abbott expressing enthusiasm for the investment and job growth in McLennan County. Bert Echterling, Mayor of Robinson, lauded the city’s industrial sector and Walmart’s intention to establish itself in the region. Judge Scott M. Felton, Judge of McLennan County, praised the Robinson City Council, its city manager, Craig Lemin, and McLennan County Commissioner Jim Smith for collaborating with Walmart to guarantee required requirements were satisfied.

The factory will process and bottle a wide range of milk varieties, including gallon, half gallon, whole, 2%, 1%, skim, and 1% chocolate milk for Walmart’s Great Value and Sam’s Club’s Member’s Mark brands. The items will be sent to over 750 Walmart and Sam’s Club locations throughout the South, including Texas, Oklahoma, Louisiana, sections of Arkansas, and Mississippi.

Johne’s Disease Genetic Parameters and Trends: An Updated Study

Johne’s disease (JD) is a major worldwide economic burden caused by an infectious gastrointestinal sickness. The purpose of this research was to use current data to analyze the genetic features and phenotypic alterations of JD in Holstein cattle in the United States. The data set includes 365,980 Holstein cows from 1,048 herds that participated in a voluntary JD control program. Two protocol kits, Idexx Paratuberculosis Screening Ab Test (IDX) and Parachek® 2 (PCK), were used to test milk samples by ELISA. The overall prevalence of JD in US Holstein cattle was 4.72%. 25,000 animals were genotyped using 78,964 SNP markers. The posterior heritability estimates for JD susceptibility ranged from low to high. The average reliability of anticipated breeding values of JD susceptibility using single-step analysis was 0.18 (THR) to 0.22 (ssTHR) for IDX and 0.14 (THR to 0.18) for PCK. The projected genetic trends for JD susceptibility were negative and very significant (P-value < 0.01). There were little relationships between bulls’ estimated transmitting ability and economically significant traits such as milk yield, milk protein, milk fat, somatic cell score, and mastitis, indicating a non-overlapping genetic selection process with features in current genetic evaluations. The results indicate that including JD into national genetic evaluation programs might possibly lower the incidence rate.

World Champion Elle St. Pierre: Olympic Runner and Dairy Farmer

Elle St. Pierre, a 29-year-old Vermont dairy farmer, has broken another American record in the 3,000 meters and became a world champion. She defeated two-time world champion Gudaf Tsegay and won the gold medal at the World Athletics Indoor Championships in Glasgow, Scotland. St. Pierre’s winning time of 8 minutes, 20.87 seconds broke the previous national record by more over four seconds and propelled her to third position on the world’s all-time indoor rankings. Tsegay of Ethiopia holds the world record in the 5,000 meters.

St. Pierre, who gave birth to her baby in March and returned to race a few weeks later, broke her American record in the indoor mile at the 2024 Millrose Games on February 11. She is the most decorated athlete in the history of the University of New Hampshire, and she will compete in the 2021 Olympics for the United States. She currently farms with her husband in Montgomery, Vermont, and has been a champion for dairy products throughout her sporting career.

St. Pierre’s baby turns one on March 4, and she feels like a different person and athlete. She feels that the Wanamaker Mile triumph was “for all the moms out there.” St. Pierre is also the most decorated athlete in University of New Hampshire history, and she has promoted dairy products throughout her athletic career.

European farmers protest, demand ministerial action.

A man holds a tire during a protest of European farmers over price pressures, taxes and green regulation, on the day of an EU Agriculture Ministers meeting in Brussels, Belgium February 26, 2024. REUTERS/Yves Herman

Farmers throughout Europe have opposed the EU’s environmental rules, blaming low retail pricing and unfair competition from outside. The 27-nation EU has already compromised several of its Green Deal environmental measures, deleting a commitment to reduce agriculture emissions from its 2040 climate roadmap. However, farmers are seeking more. They claim that the EU is not listening to their requests for fair income, since they produce food but do not earn a livelihood owing to free trade agreements, deregulation, and prices that are lower than the cost of production.

Protesters in Brussels tossed bottles at police, as over 900 tractors clogged portions of the Belgian city. Farmers from all throughout Spain asked the EU in Madrid to relax restrictions and remove certain modifications to its Common Agriculture Policy (CAP), which includes subsidies and other programs. They are tired of the bureaucracy and prefer to work in the field during the day and deal with paperwork at night.

In Poland, farmers are furious about cheap imports from non-EU. Ukraine has closed the A2 highway at a border crossing with Germany. As Ukraine confronts a Russian invasion, the EU agreed two years ago to remove taxes on its food exports. The EU is looking for a more efficient approach to ensure that Ukrainian agricultural goods reach their usual markets outside the EU. The agricultural ministers also discussed a fresh set of suggestions to alleviate financial strains on European farmers, such as reducing farm inspections and exempting small farms from some environmental rules. They requested the European Commission, the EU’s executive, to offer more ambitious recommendations for reducing red tape.

Cem Ozdemir, German Agriculture Minister, said that the EU must guarantee that farmers can make a fair living if they choose biodiversity and green initiatives. He described present EU agriculture policy as a “bureaucracy monster.” The EU has previously removed a goal to decrease agricultural emissions from its 2040 climate roadmap, repealed a regulation to minimize pesticides, and postponed a target for farmers to leave some land fallow to boost biodiversity.

At the Madrid demonstration, several farmers said that they just wanted to be able to use the same pesticides as colleagues outside the EU whose products are imported into the union. Grievances differ per nation, and not all farmers want for an end to green standards.

Will people pay for animal welfare?

Since announcing its Farm to Fork Strategy, the European Commission has been striving to reform animal welfare regulations. However, some Member States have implemented their own national policies, such as the culling of male chicks after birth, resulting in an unequal degree of animal welfare among the Member States. In response, the European Consumer Organisation (BEUC) surveyed 8,000 individuals in eight countries to assess consumer demand for enhanced animal welfare rules in meat and fish. Initial data indicate that customers desire improved animal welfare and corresponding labeling, but are they ready to pay for it?

Almost 90% of consumers in the EU favor new legislation to enhance the wellbeing of farmed animals, such as increasing living space and prohibiting cage systems. Consumers also want to learn more about how farmed animals are raised and want reliable labeling. 72% of respondents wanted the method of production marking to be applied to items other than eggs.

Consumers also have poor faith in firms’ promises about animal welfare, with 84% responding adversely to ‘welfare-washing’, in which operators pretend to have greater animal welfare standards than they really do. Three out of four customers want to know more about how animals were grown for items like meat and dairy because they believe they don’t know enough. Industry should consider hard before indulging in ‘animal welfare-washing’, since it might permanently damage their companies’ image.

In actuality, upgrading animal welfare standards is not inexpensive, thus the issue becomes: who should pay for it? 74% of poll respondents felt the EU should assist farmers with funding to adopt better welfare criteria. BEUC emphasized that the EU and national governments must guarantee that the costs of this transformation are appropriately distributed throughout the value chain and not borne only by consumers.

What the heck do we call lab-grown meat?

Cell-cultivated meat, a lab-grown protein with animal byproducts but no murdered animals, is now the industry standard. In 2013, Dutch scientist Mark Post from Maastricht University in the Netherlands created the first lab-grown beef product for human consumption. Today, over 150 firms worldwide offer cell-cultured beef, including 43 in the United States. However, the product is now prohibited in the Netherlands and Europe, with only the United States, Singapore, and a few other countries permitting cell-cultured beef sales to the public.

The USDA permits fake meat to be labeled as “cell cultured meat” or “cell cultivated meat.” Sandra Eskin, Deputy Undersecretary for Food Safety, said new federal labeling guidelines will be issued shortly, and many states are also developing laws for how lab-grown meats may be tagged and marketed in their territories. Some corporations want to utilize only “cultivated” meat, while others choose “fake meat,” “imitation meat,” “clean meat,” “manufactured meat,” and “cell-based meat.”

The Fair Foods Act, proposed in Congress earlier this year, would require stronger labeling for grown meat. Madeline Cohen, a senior regulatory attorney at The Good Food Institute, feels that the cultured meat sector should be allowed to use common phrases that customers like as long as they are true and not deceptive. Labels should also inform customers about the advantages of cell-cultured meat and how to utilize it. As regulatory agencies explore labeling requirements, she feels it is critical to maintain a fair playing field and prevent the government from selecting winners and losers in the marketplace.

Consumer Reports’ Director of Food Policy, Brian Roholm, feels that labeling should be straightforward. While eliminating the word “cell” may go too far, he is OK with the phrase “cell cultivated meat.” He is concerned, however, that labels may exclude critical manufacturing process information for customers. For example, when cultured cell chicken is formed, chicken cell lines are immersed in a medium containing fetal bovine serum. An anti-clumping substance, previously authorized by the FDA as a stool softener, is added. Some goods may also include components from cattle and pigs.

Despite enormous expenditures in cell-cultured meat, the business is unlikely to compete with conventional agriculture in the next decades. The method of producing lab-grown meat is continually evolving, and even with advancements, no one has worked out how to disseminate produced meat on a significant scale.

North American agribusiness review February 2024

RaboResearch announces the release of the North American Agribusiness Review, an assessment of market conditions and developments in North American agribusiness. The report’s main highlights are summarized here. Click here to see the whole report.

December milk production declined 0.3%, marking the sixth straight month of lower year-over-year output.

The decrease was caused by fewer cows and a modest yield gain of 0.1%.

consistent with current trends. Less milk was projected in recent months, since on-farm margins remained low until the end of the year. Total 2023 output increased little from the previous year and remained constant on a percentage basis.

Cow numbers fell by 1,000 this month, as herd size continued to shrink. However, November’s head count was reduced down by 2,000, resulting in a 3,000-cow reduction from report to report. It dipped to 9.357 million head, its lowest level since December 2019. The herd is 39,000 head less than a year earlier, and it is down 87,000 head from its latest high in March.

Milk per cow increased by 0.1% in December, after two consecutive months of decline. Yield increased by just 0.1% each year, far lower than the long-term average of 1% growth.

Total cheese output increased by 0.9% in December, the third straight year-on-year increase and the biggest since January 2023. Output in 2023 increased by 0.3% compared to 2022. While the last three months of the year were strong, cheese output decreased in five separate months last year. Total cheese stockpiles increased slightly in December, up 6 million pounds, or 0.4%, from November, marking the first monthly gain since August.

Butter output increased by 4.4% in December, the most since July and a reversal of November’s 3.3% decline. Output is increasing seasonally as milk output and cream availability rises during the spring flush. All areas rose year on year, although the west had the greatest growth, rising 7.7%.

However, December butter stockpiles declined by 13.1 million pounds, or 6.2%, reaching their lowest level since December 2021. It was the highest December inventory decline in 20 years, another optimistic data point that should keep the butter price sustained this year as supply stays limited.

Combined nonfat dry milk/skim milk powder production declined 15.9% year on year in December, marking the sixth consecutive month of declining output. Stocks fell for the ninth straight month. At 203.3 million pounds, stockpiles were at their lowest level since November 2015.

Total exports ended 2023 in a similar pattern to the previous year, with volumes falling short of the record levels reached in 2022. Total dairy exports fell 5% year on year in December, while exports for the calendar year 2023 fell 7%. Only WPC80 and lactose shipments increased in 2023, with all other dairy products losing ground compared to 2022. Cheese exports ended the year on a high note, rising 4% in November and 1% in December, although the increases were mostly driven by sustained strong shipments to Mexico.

The year-on-year dairy consumer price index decreased for the fourth consecutive month in December, with dairy product price deflation looming as milk prices fall into 2023.

2024 All-American and Premier National Junior Show Judges Announced

The All-American Dairy Show announced judges for the 2024 All-American and Premier National Junior.  The show will be held September 14-18, 2024 in Harrisburg, PA.

Sean Johnson
AADS Ayrshire

Jake Hushon
AADS Brown Swiss & PNJS Milking Shorthorn

Brian Schnebley
AADS Guernsey & PNJS Ayrshire

Ryan Krohlow
AADS Holstein & PNJS Guernsey

Alan Kruse
AADS Associate Holstein

Terri Packard
AADS Jersey and PNJS Red & White

Phil Topp
AADS Milking Shorthorn & PNJS Holstein

Steve Wagner
AADS Red & White and PNJS Jersey

Checkoff Partnership Fueling ‘Hot’ Milk Trend

The school cafeteria experience has altered dramatically in recent years, with a 14 million meal difference between breakfast and lunch. This is owing to the abundance of beverage alternatives available, which has influenced milk intake. Milk accounts for just 3.5% of the 3,500 weekly beverage products sold each shop, whereas other drinks such as soda, juice, tea, and bottled water have lost market share over the previous three decades.

To remain relevant with children, the National Dairy Council has teamed with Chartwells K12, an organization that provides over 2 million meals each day in over 7,000 school districts. Chartwells seeks to help kids leave cafeterias happier and healthier by providing nutritious dishes, including dairy. The relationship is consistent with the checkoff approach, which aims to improve the school milk experience, modernize nutrition instruction, and increase student access to breakfast.

Last year, the first solid evidence that giving kids what they want was smoothies. According to Technomic, Gen Z prefers fruit smoothies above energy drinks, flavored water, juices, and soft drinks. A pilot test in 130 Chartwells schools across 15 states resulted in higher milk and yogurt consumption rates. Chartwells began offering its smoothie program to all of its districts at the start of the school year, and the response has been great.

Furthermore, study revealed a considerable interest in hot chocolate milk, a dairy-friendly category with a worldwide market value of $3.8 billion in 2022 and projected to expand to $5.77 billion by 2030. A new trial with 58 schools in which genuine chocolate milk with the same 13 vital nutrients as white milk is served hot with toppings like cinnamon and peppermint has received a positive response, with children loving it to the last drop.

The concept of selling specialized drinks with dairy appeals to today’s evolving customer, and it is an excellent method to attract more children to the category and cafeteria. The checkoff demonstrates the importance of staying current and aligning with trends that are important to children. This is due to creative ideas and excellent partners such as Chartwells.

Dairy Shrine Scholarship Applications Now Open

New scholarship to be awarded to students focused on dairy production. 

The Dairy Shrine is again looking for applications for its annual scholarship program. Applications are accepted from March 1 until the deadline of April 15.  Official scholarship application award forms are available on the Dairy Shrine web site, www.dairyshrine.org/youth

A new scholarship will be offered this year that recognizes students going back to work on a dairy farm. Up to four Dairy Shrine Dairy Production Scholarships will be awarded, two each to students in four-year colleges or two-year and certificate programs. The scholarships, valued at $2,500 each, is partially sponsored through a donation from Cargill. Applications will be nominated by their advisor and, upon completing an application, will also participate in a video interview. 

The other scholarships offered are listed below. 

The National Dairy Shrine Student Recognition Program recognizes and rewards graduating seniors planning a career in the dairy industry.  There will be a $2,000 cash award given to the top selection, a $1,500 award for second place, and three to seven $1000 cash awards depending on the number and quality of applicants.

National Dairy Shrine/Dairy Management, Inc. (DMI) Milk Marketing-Dairy Products Scholarships are available to encourage students to pursue careers in the marketing or development of dairy products. The highest selection receives a $1500 scholarship while the other selectees receive $1000 scholarships. Up to five scholarships are awarded annually.

National Dairy Shrine/Dairy Management, Inc. (DMI) Education & Communication Scholarships are available to encourage students to pursue careers in the education or communication of the value of dairy products and the dairy industry. The highest selection receives a $1500 scholarship while the other selectees receive $1000 scholarships. Up to five scholarships are awarded annually.  

Kildee Scholarships are offered for Post Graduate study.  Qualified applicants may include the top 25 All-American contestants in one of the past three National Intercollegiate Dairy Cattle Judging Contests plus members of the First and Second Place teams in the North American Intercollegiate Dairy Challenge National contest. These students are eligible to apply for up to two $3000 graduate school scholarships.  

NDS Merton Sowerby Junior Merit Scholarship recognizes and rewards current college juniors planning a career in the dairy industry.  There will be a $1,500 cash award given to the top selection and two to five more $1000 cash awards depending on the number and quality of applicants.

NDS Mike Lancaster Sophomore Merit Scholarship recognizes and rewards current college sophomores planning a career in the dairy industry.  There will be a $1,500 cash award given to the top selection and two to five more $1000 cash awards depending on the number and quality of applicants.

Depending on number and quality of applicants there will be two to four Maurice Core Freshman Scholarshipsawarded in the amount of $1,000 to a freshman college student attending a four year agricultural college. This scholarship is sponsored from a fund created in honor of Maurice E. Core long-time industry leader and past Executive Director of National Dairy Shrine. 

Up to Two NDS Marshall McCullough scholarships of $1000 are awarded annually to college freshmen attending a four-year college or university and majoring in: Dairy/Animal Science with a Communications emphasis or Agriculture Journalism with a Dairy/Animal Science emphasis. This scholarship fund was created by Dr Marshall McCullough of Athens, Georgia. 

Up to two NDS Iager Dairy Scholarships will be awarded in the amount of $1,000 to second year college students enrolled in a two-year agricultural college. This scholarship is sponsored by a fund created by Mr. and Mrs. Charles Iager of Fulton, Maryland. 

There are three Klussendorf scholarships given in the amount of $1,500 to students in their first, second, or third year at a two or four year college or university.  Applicants need to major in Dairy or Animal Science with intentions to enter the dairy cattle industry. These scholarships are funded by the Klussendorf Association.

There are four McKown scholarships given in the amount of $1,500 to students in their first, second, or third year at a two or four year college or university.  Applicants need to major in Dairy or Animal Science with intentions to enter the dairy cattle industry. These scholarships are funded by the Klussendorf/McKown Fund.

If you would like to apply for any of these scholarships, please visit the Dairy Shrine website at www.dairyshrine.org/youth to download the applications.  If you have any questions, please contact the Dairy Shrine office at info@dairyshrine.org. Recipients of these awards will be announced this summer, with the presentation of scholarships to be made at the annual Dairy Shrine awards banquet in Madison, Wisconsin on Monday September 30, 2024.

Danone divesting seized Russian assets

Danone is divesting its Russian company, which has been controlled by the Russian government agency Rosimushestvo since July 2023. Vamin Tatarstan, a Russian corporation, is preparing to purchase Danone’s Russia division for 17.7 billion roubles (US$186 million). Danone will get 10 billion roubles (US$105 million) for its shares, with the remainder used to settle debt inside the Russian company. Danone took a significant write-down of around €700 million (US$757 million) on its Russian business after the seizure by Russian authorities. According to the Danone press office, Danone has retained legal ownership of the assets since the seizure, but the business has lost managerial control and will deconsolidate its EDP Russia subsidiaries beginning in July 2023. According to a source in the Russian dairy business, the government agency has been nominated as an intermediate stakeholder in Danone assets, thus the sale is still legally conceivable. There may be numerous choices for selling: fully to a specialist player like Vamin or in pieces. Moscow requires at least a 50% discount on all overseas agreements once the Russian government’s chosen advisors evaluate the firm. Danone has promised to offer assistance until the end of July next year to enable the continued operation of its former Russian company.

Awaited Dairy Margin Coverage details revealed

The United States Department of Agriculture (USDA) has announced the launch of the Dairy Margin Coverage (DMC) program for 2024, which will provide risk management to dairy farmers. Producers may join from February 28 to April 29, 2024, with payments beginning as early as March 4. The Farm Service Agency (FSA) changed DMC rules to extend calendar-year coverage retroactively to January 1, 2024. Eligible dairy enterprises may make a one-time change to their existing production history by merging supplementary and DMC production data. Producers may choose several levels of coverage, including a free option at the catastrophic $4 margin level. Although the program is optional, participating dairy producers will receive more than $1.2 billion in payouts by 2023.

Dairy Council of Nevada, GENYOUth Lead Effort to Address School Hunger

Checkoff-founded GENYOUth teamed with the Dairy Council of Nevada, the NFL and other partners to increase access to and participation in healthy school meals by providing grants for Grab and Go school meal equipment packages, including milk coolers and mobile meal carts, for 73 high-need Nevada schools. 

Before each Super Bowl, state and regional checkoff teams collaborate with GENYOUth and purpose-minded partners on GENYOUth’s Super School Meals community initiative to improve the student health and wellness experience, including increased dairy consumption. This year’s program focused on Super Bowl host market Las Vegas and throughout Nevada.

The culmination of Super School Meals was celebrated during an event on Feb. 8 at West Preparatory Academy in Las Vegas, where 150 students joined former NFL players, Clark County School District officials and various community leaders.

“Dairy farmers in Nevada and throughout the nation are committed year-round to the health and well-being of our nation’s children,” said Tammy Baker, general manager of the Dairy Council of Nevada. “We are proud to partner with GENYOUth and others on Super School Meals to grow school meal participation and to provide equitable access to nutritious dairy products.”

The effort is expected to benefit 40,000 students by increasing access to nearly 11 million school meals.

“One in five children in Nevada is food insecure, and over 30 million students nationwide rely on school meals for a significant portion of their daily nutrition,” said GENYOUth CEO Ann Marie Krautheim, who is also a registered dietitian. “Often, school meals may be the only healthy nutrition a student receives on some days.

“Grab and Go meal equipment is critical to increasing meal access and participation, especially for school breakfast. Super School Meals is fostering nutrition security among Nevada youth. I am grateful to our committed partners for stepping up to help tackle youth food insecurity in Nevada.”

GENYOUth, supported by several sponsors, continued its efforts to help end student hunger with the Taste of the NFL, the Super Bowl’s largest philanthropic event. Net proceeds from the Feb. 10 event will benefit schools in Nevada and the nation.

For information on GENYOUth and Super School Meals, visit www.GENOUthNow.org. To learn more about the dairy checkoff, visit www.usdairy.com.

E. coli epidemic linked to raw cheddar cheese in the US

Authorities in the United States are looking into a multi-state E. coli incident after ten individuals in four states fell sick. The Food and Drug Administration (FDA) and the Centers for Disease Control and Prevention (CDC) determined that ten bacterial samples matched on a national database, indicating that they were likely infected from the same source. Six of the eight patients contacted by state and local public health authorities said that they had ingested raw cheddar cheese manufactured by Raw Farm LLC before to falling sick. The FDA and CDC contacted the manufacturer due to fears that the cheese may have been the cause of the sickness.

The CDC noted that although just 10 individuals have been connected to the epidemic so far, the total number of impacted customers might be significantly higher since most people who get unwell recover without medical attention. Four of the ten persons related to the epidemic, four of whom were hospitalized, reported severe stomach pains, diarrhea, and vomiting. Without therapy, recovery takes 5 to 7 days, although some patients have renal difficulties and need to be hospitalized. Raw Farm has recalled various goods, including Raw Farm-branded cheddar, and has recommended customers not to consume any Raw Farm-branded raw cheddar cheese, to discard or return previously bought items, and to sanitize any surfaces that may have come into contact with the cheese.

National Ayrshire Youth Scholarship Deadline Is March 1st

US Ayrshire Breeder Association Junior members that are seniors in high school or currently enrolled in a two-year or four-year institution and majoring in a post-secondary agricultural program are eligible to apply for the $500 Ayrshire Youth Scholarship.

The deadline to apply is March 1st and you can find the application here!

The dairy supply chain has a role to play in sustainability.

As customers grow more conscious of a product’s carbon impact, dairy producers are shifting their attention to more sustainable techniques. This shift in emphasis is motivated by changes in consumer expectations and the need for dairy supply chain partners to collaborate more closely along the path from farm to fridge. Dairy processors, such as Agropur, are attempting to make dairy farms more sustainable by acting as intermediaries between farmers and manufacturers.

Customers are asking processors for more information about a farm’s carbon impact and how to reduce it. Major food producers are worried about the quantity of carbon emitted into the environment, which is a question that their customers are asking. Farmers are engaged in sustainability, and when consumers inquire about programs to promote sustainability, the discourse has been positive.

Large food producers aim to profit from farmers’ carbon credits, turning to processors such as Agropur and Valley Queen for assistance. Companies have roadmaps for where they want to go with their carbon footprint and ask Agropur to assist farmers in meeting various emissions reduction objectives via customized programs. Valley Queen, in conjunction with Edge Dairy Farmer Cooperative, undertook a pilot study on two dairy farms to assess a crop’s carbon impact from seed planting to milk delivery at the processing facility. Many dairy farms are already in the carbon business, utilizing a biodigester to transfer biogas to a pipeline and then selling the credits.

Results of the USDA’s 2022 Agriculture Census Revealed

The USDA’s 2022 Census of Agriculture revealed a drop in farm numbers, rising costs, and an aging average American farmer. However, the report highlighted the dairy industry’s consolidation, with 24,082 farms reporting off-farm milk sales in 2022, a 38.7% decrease from 39,303 in 2017. According to the census, approximately 65% of U.S. dairy cows are now found on operations with more than 1,000 head, a 10% increase from 2017. Furthermore, 6.5% of cows were found on operations with fewer than 100 head in 2022, a decrease from 12.7% in 2017.

Milk production is stable to slightly higher in most parts of the country, with mild winter weather promoting seasonal growth in milk volumes. However, numerous market stakeholders report that output is lower than last year due to producer exits and reductions over the last 12 months. In the Central region, spot milk availability is much lower than it was in 2023, with prices ranging from $10 to $2 under Class. Cheesemakers have expressed a desire to increase processing to build inventories ahead of the spring holidays, but labor disputes at some plants have resulted in slower production schedules. Retail demand varies across the country, with some regions performing better than others.

The spot Cheddar block market did not acknowledge it as prices eroded during the second half of the week. Blocks finished the week at $1.48/lb., down 9¢ from last Friday as 16 loads traded hands. Meanwhile, barrel prices rose steadily, reaching a new high for the year at $1.6075/lb. This week’s cheese market dynamics have pushed the inverted block barrel spread to 12.75¢, the highest gap since June 2023.

The whey market has been subdued in recent days, with the CME spot dry whey market ending Friday’s trade unchanged at 53¢ per pound. Slower-than-expected cheese production has reduced the whey stream, tightening the whey market at the edges. Class IV markets moved in opposite directions this week, with butter gaining ground and nonfat dry milk (NDM) losing ground. The spot butter market gained traction this week, with prices reaching $2.75/lb. on Friday, up 6¢ from the previous week.

Feed and grain markets continued to fall this week, as agricultural economists and stakeholders gathered for the USDA’s annual Outlook Forum. Plentiful supply expectations and healthy inventory levels pushed grain markets lower, which will be good news for dairy producers looking for additional feed cost savings. On Friday, MAR23 corn settled at $4.165/bu., down 14¢ from Monday, and MAR23 soybean meal took a more modest dip to $345.60/ton.

Original Report At: https://www.jacoby.com/market-report/usda-unveils-2022-agriculture-census-findings/

U.S. Dairy Exports Fall Back from Record Highs in 2023, Underscoring Need for New Market Access

Michael Dykes, D.V.M., president and CEO of the International Dairy Foods Association (IDFA), released the following statement today on the U.S. agricultural export data for calendar year 2023 released by the U.S. Department of Agriculture.

“The 2023 agricultural export data released today by USDA is a mixed bag for U.S. dairy. While U.S. agriculture is experiencing a trade imbalance, U.S. dairy is pleased to be an outlier enjoying a sizeable trade surplus. However, total U.S. dairy export value fell by $1.5 billion while volume declined by 7% in 2023, underscoring a clear need for U.S. trade officials to focus on creating new, preferential market opportunities for American producers and food exporters while holding trade partners accountable to rules and agreements. For example, exports to Canada are nowhere close to the projections promised U.S. dairy in the U.S.-Mexico-Canada Agreement due to consistent barriers erected by the Government of Canada that prevent American exporters from filling their tariff quotas. Further, demand remains soft in key markets such as China and Southeast Asia, including the Philippines, Vietnam, and Malaysia, illustrating the need for a strategic approach to trade with markets in the Asia Pacific region. Overall, U.S. dairy exports performed better than most other commodities, but we are not meeting our capabilities. U.S. dairy boasts the lowest carbon intensity footprint globally, remains competitively priced and sets quality standards worldwide. However, the lack of export opportunities hampers our ability to leverage these strengths.

“U.S. dairy relies on export growth to capture the growing productivity of U.S. dairy farmers. Without exports, we risk stagnation, jeopardizing investments, jobs, and future competitiveness in the global marketplace. IDFA urges members of Congress and the Administration to come together on a realistic trade agenda that prioritizes preferential access for U.S. dairy exports.”  

# # #

The International Dairy Foods Association (IDFA), Washington, D.C., represents the nation’s dairy manufacturing and marketing industry, which supports more than 3.2 million jobs that generate $49 billion in direct wages and $794 billion in overall economic impact. IDFA’s diverse membership ranges from multinational organizations to single-plant companies, from dairy companies and cooperatives to food retailers and suppliers, all on the cutting edge of innovation and sustainable business practices. Together, they represent most of the milk, cheese, ice cream, yogurt and cultured products, and dairy ingredients produced and marketed in the United States and sold throughout the world. Delicious, safe and nutritious, dairy foods offer unparalleled health and consumer benefits to people of all ages.

 

Students Across the Country to Celebrate Agriculture

National FFA Week is a time for FFA members to raise awareness about the National FFA Organization’s role in developing future leaders in agriculture and the importance of agricultural education.

FFA provides the next generation of leaders who will change the world. As the nation’s top school-based youth leadership development organization, FFA helps young people meet new agricultural challenges by encouraging members to develop their unique talents and explore their interests in various career pathways. FFA members are our future leaders, food suppliers, innovators and more!

National FFA Week runs from Saturday to Saturday, encompassing Feb. 22, George Washington’s birthday. This year, the week kicks off on Feb. 17 and culminates on Saturday, Feb. 24.

The National FFA Board of Directors designated the weeklong tradition, which began in 1948, to recognize Washington’s legacy as an agriculturist and farmer. A group of young farmers founded FFA in 1928, and the organization has been influencing generations to believe that agriculture is planting and harvesting — and involves science, business, and more.

“National FFA Week is a meaningful week for members across our country as we celebrate an organization that is welcoming to all and crucial to developing the next generation of leaders and those who will fill the ever-growing need in the talent pipeline,” said National FFA Advisor Dr. Travis Park. “Not only is it an opportunity to share our message with a broader audience, but it’s also an opportunity for our FFA chapters and members to celebrate agriculture and agricultural education while thanking their supporters — their local alumni and supporters chapters, agriculture teachers, or local businesses.”

National FFA Week is a time for FFA members to share agriculture with their fellow students and communities. During the week, chapters also give back to their communities through various service projects.

The six National FFA Officers will connect with chapters nationwide throughout the week — delivering keynotes, greetings, workshops and more.

President Amara Jackson will visit with FFA members in Texas and Arkansas. Western Region Vice President Emily Gossett will see FFA members in Florida and Georgia. Eastern Region Vice President Morgan Anderson will visit with FFA members in Iowa and Colorado. Central Region Vice President Kanyon Huntington will visit with FFA members in Kentucky and Virginia. Southern Region Vice President Carter Howell will visit with FFA members in Connecticut and Maryland. Secretary Grant Norfleet will visit with FFA members in Idaho and Alaska.

The National FFA Organization is a school-based youth leadership development organization of more than 945,000 student members as part of 9,163 local FFA chapters in all 50 states, Puerto Rico and the U.S. Virgin Islands.

**Video PSAs for each day can be found here.

**Radio PSAs for FFA Week can be found here.

New Census Shows Alarming Loss of Family Farms

New agriculture census data released by USDA today is cause for concern as the number of farms operating in the United States and the number of farm acres have both fallen significantly. The 2022 Census of Agriculture reports 141,733 fewer farms in 2022 than in 2017. The number of farm acres fell to 880,100,848, a loss of more than 20 million acres from just five years earlier.

“The latest census numbers put in black and white the warnings our members have been expressing for years,” said AFBF President Zippy Duvall. “Increased regulations, rising supply costs, lack of available labor and weather disasters have all squeezed farmers to the point that many of them find it impossible to remain economically sustainable.

“Family farms not only help drive the economy, they allow the rest of the nation the freedom to pursue their dreams without worrying about whether there will be enough food in their pantries. We urge Congress to heed the warning signs of these latest numbers. Passing a new farm bill that addresses these challenges is the best way to help create an environment that attracts new farmers and enables families to pass their farms to the next generation.”

While it’s encouraging that the number of beginning farmers increased, the latest census numbers show the number of farmers over the age of 65 is outpacing younger farmers. Almost 1.3 million farmers are now at or beyond retirement age, while just 300,000 farmers are under the age of 35. AFBF has long-established policies supporting beginning farmers, including through farm bill programs focused on new and beginning farmers.

Read the full 2022 Census of Agriculture here.

UK parliament will consider legislation to end abuses of power in dairy supply chain

British Prime Minister Rishi Sunak announced new dairy and poultry regulations during a speech at the National Farmers’ Union (NFU) conference. The regulations seek to establish transparency and accountability throughout the dairy supply chain by prohibiting contract changes without agreement and addressing issues of exclusivity and notice periods. They plan to introduce clearer pricing terms and a system for farmers to verify variable price calculations.

The legislation will include an enforcement mechanism, with the secretary of state empowered to impose significant financial penalties on those who violate the rules. The news follows more than a decade of campaigning by the NFU and other UK farming unions to expose unfair practices and abuses of power in the dairy supply chain.

Proposals for the new legislation were submitted last summer, while details about the enforcement mechanism were still being worked out. NFU diary chair Michael Oakes explained that farmers should understand what influences their prices, and that there were no non-exclusive contracts in the UK dairy supply chain at the time. Similar contract regulations for the pig sector will be introduced later in 2024.

Sunak announced grants totaling approximately £427 million for farmers, including £220 million for technology and productivity programs that provide access to new equipment such as automation gear to reduce reliance on foreign workers. Increases in management payments for the Sustainable Farming Incentive were also announced.

Finally, at the next Farm to Fork Summit in the spring, the UK government plans to release an annual food security index that will capture and highlight key data required to monitor current levels of food security.

Dairy boss faces jail time following deadly Listeria outbreak

The owner of a dairy company that caused a Listeria outbreak in Austria faces more than a year in prison. The head of Käserei Gloggnitz was sentenced to 13 months in prison this week. According to media reports, the 39-year-old was charged with several counts but denied the allegations, and the verdict was not final.

A Listeria outbreak from 2020 to 2022 resulted in ten cases and at least three deaths.

Käserei Gloggnitz experienced financial difficulties in 2022, prompting the opening of insolvency proceedings, and the plant was ordered to be closed in 2023.

Additional allegations will be heard in mid-March at the Regional Court of Wiener Neustadt, where several other witnesses will be questioned.

In a January 2023 audit, DG Sante reviewed a file from the dairy plant linked to the outbreak. Käserei Gloggnitz had a poor compliance record, and an inspection in 2020 revealed several significant flaws. An inspection one year later yielded equally serious results.

However, those findings did not result in increased inspection frequency or enforcement until an epidemiological link between infections and the company was established in the autumn of 2022, when authorities ordered that production be halted.

There were six women and three men aged 29 to 82, as well as a newborn baby. The Austrian Agency for Health and Food Safety (AGES) confirmed that illnesses occurred in Vienna.

Käserei Gloggnitz recalled all kajmak, drinking yogurt, and cream cheese products in September 2022 due to a possible Listeria monocytogenes contamination. Cajmak is a type of cheese.

Officials discovered Listeria that matched the outbreak strain in three environmental samples collected from the company in Lower Austria. The outbreak strain was also found in the food it produced.

Is Beef-on-Dairy causing America’s Heifer Shortage?

The American dairy sector is facing a scarcity of replacement heifers, which is the technique of crossbreeding dairy cows with beef cattle to produce progeny for both milk and meat. This approach has gained favor among dairy producers looking to diversify their income sources, but it may have unexpected effects, such as the depletion of replacement heifers in the dairy herd.

A 1,000-cow dairy that produces crossbred bull calves can expect to earn about $100,000 more in 2024 than it would sell Holstein bull calves. High beef calf prices are sending a clear signal to the dairy industry to make more beef calves and fewer dairy heifers.

For six consecutive years, dairy heifer inventories have declined. The USDA cut its previous estimate for the number of dairy heifers available on January 1, 2023, to 8.3% fewer than it had at the start of 2022. On January 1, 2023, there were 4.059 million dairy heifers, the smallest heifer inventory in 20 years. The USDA also slashed its estimate of heifers expected to calve and enter the milk-cow herd in 2023, with 7% fewer heifers ready to enter the milk herd at the start of last year. Mature heifer inventories are also expected to decline 1% this year.

Dairy herd expansion is unlikely to accelerate owing to high demand for young animals and a dairy heifer shortage. For at least 18 months, the cattle industry will be without young animals. High beef calf prices are driving the dairy industry to produce more beef calves and fewer dairy heifers.

Addressing the heifer deficit in the American dairy sector requires a diversified strategy. While beef-on-dairy may increase variety and profitability, dairy producers must carefully evaluate the long-term effects on herd genetics and sustainability. Collaboration among dairy farmers, breed organizations, and industry stakeholders is critical in developing policies that balance the need for milk and meat production while guaranteeing the dairy sector’s sustainability for future generations.

FMMO Hearings: Dairy Leaders Discuss Next Steps

Dairy leaders are pushing for dairy farmers in the United States as the Federal Milk Marketing Order (FMMO) hearings continue. The National Milk Producers Federation (NMPF) takes a broader strategy, covering all aspects of the sector while revising Class I differentials and making concessions. Mike Brown, chief economist for the International Dairy Foods Association (IDFA), feels that the dairy business has fundamentally altered since 2008, and that present FMMO pricing formulae need to be updated to reflect new market dynamics.

The USDA is reviewing almost 12,000 pages of testimony as it develops its proposal for FMMO modernization. Peter Vitaliano, NMPF’s vice president for economic strategy and market research, claimed that neither party will receive all they want, but the end outcome will be a market improvement over what we now have. Greg Doud, president and CEO of NMPF, said that the current formula has cost dairy farmers around 1.2 billion dollars and should be restored back to the original ‘higher-of’ system, which suited farmers best.

Stakeholders submitted fourteen suggestions to USDA for review, 21 of which were selected for inclusion in the hearing process. Two IDFA proposals have been included in the hearing process: one requesting that USDA update make allowances, which are woefully out of date after nearly 20 years of rising manufacturing costs, and a second proposal on Class I milk pricing, which puts more dollars in dairy farmers’ pockets than they would receive under the ‘higher of’ mover while allowing dairy processors to effectively manage price risk.

The following stages involve interested parties submitting a correction by 4:30 ET on April 1. The USDA is anticipated to release a proposed judgment by June 30.

A new regulatory rule in Canada has made milk without cows legal.

Remilk, an Israeli business, has been given authorization to sell its animal-free milk protein to dairy enterprises and other food companies in Canada. This allows them to market their version of the BLG (β-Lactoglobulin) protein, which is the major whey protein in cow’s milk. Health Canada assessed that the BLG protein generated by Remilk poses no more danger to human health than the whey protein from cow’s milk presently available on the Canadian market and has the same nutritional value.

The decision opens the door for a more resilient and environmentally conscious future, establishing a precedent for innovation in Canada’s approach to feeding its rising population. The US Federal Drug Administration (FDA) sent identical ‘no questions’ letters to Remilk and Perfect Day in 2020 and 2023, respectively. The market for animal-free milk manufacturing has grown in recent years, with Nestle teaming with Perfect Day in late 2022 to test product acceptance in experimental regions. Perfect Day reported in January 2024 that it had secured US$90 million in expansion investment, while France-based Bon Vivant disclosed an additional US$15.9 million in fundraising in October 2023.

In Canada’s conventional dairy sector, monthly milk sales by Canadian farmers have increased from the low 600,000 liter level in 2015 to the high 700,000 range by 2023. The Canadian government has announced an investment of up to $89 million in 49 projects around the country to minimize the effects of international trade agreements. Milk pasteurisers, ultrafiltration systems, and packaging robots are some project examples.

France raises payments to cattle producers

Following recent demonstrations, the French government announced steps to make farmers’ life easier, including increased compensation for cattle producers stricken by Epizootic Haemorrhagic Disease (EHD). On February 5, the Ministry of Agriculture issued directives enabling farmers to obtain compensation equal to 90% of the value of their livestock. They may also apply for comparable compensation for veterinarian fees, pre-transportation, and other examinations. The Department of Agriculture has set aside €50 million for losses incurred by farmers and livestock merchants as a result of temporary prohibitions on live cattle export to Spain and Italy.

Despite the sluggish spread of EHD in France, the number of affected farms is approaching 4,000. Since the discovery of the first infected animals in September of last year, 3,812 fresh instances have been reported, with 20 locations afflicted. The bulk of these instances are in the south-west of the nation, along the border with Spain, which has also seen an EHP outbreak. The preventive zones surrounding affected farms now stretch as far north as Normandy, along the Channel, and east to the Indre area. The Department of Agriculture in Paris is continuing doing research on afflicted farms to determine the death rate and other aspects of the EHD pandemic.

Cooperatives’ absence of Milk Loss compensation is being questioned by a congressman.

A congressman from New York is inquiring about the status of the promised aid for storm-affected dairy producers and cooperatives.

During a hearing before the House Ag Committee on Wednesday, Republican Nick Langworthy informed Ag Secretary Tom Vilsack that winter storm Elliot devastated the northeast in December 2022, leading to the shutdown of dairy facilities and the massive disposal of milk. To make matters worse, farmers in my region had to deal with the unpleasant truth that their milk couldn’t be collected or delivered.

Although Langworthy expressed gratitude for the USDA’s Milk Loss Program, he expressed curiosity about the timing of payment for cooperative losses and asked the Secretary to clarify this matter. Our farmers have been waiting for payment for about fifteen months, and it’s outrageous. I find it very distressing that there has been absolutely no contact with farmers and that we have not received any compensation for the losses incurred by the cooperative.

Vilsack said that he is unaware of the current situation with the Milk Loss Program cooperative payments.

The promise of hybrid dairy: How can pioneers get into this untapped market?

Hybrid dairy is a new sector in the dairy business that mixes plant-based components with dairy to provide customers with new options, outstanding flavor, and good nutrition. According to market research company Mintel, there is significant interest in this area, with surveys done by Mintel in collaboration with Kantar or Dynata during 2022-23 revealing items that look interesting to a large number of customers. In France, 42% of respondents agreed that products that combine a dairy alternative as a main ingredient with dairy would be appealing, while in the Republic of Ireland, 56% of cheese users said they would be interested in trying hybrid cheese, and 26% in Thailand said they would be interested in trying hybrid yogurt.

The potential arises because consumers are increasingly identifying as flexitarians, which means they want to eat more plant-based meals while limiting their consumption of animal products. This is referred to as ‘flexi-dairy-anism’ by Mintel, which means drinking both dairy and plant-based milk. In the United States, 47% of survey participants had not yet tasted non-dairy milk, but in the United Kingdom, 80% of respondents reported drinking both plant-based and dairy milk in the three months before April 2023.

However, consumers are hesitant to entirely eliminate dairy for a variety of reasons, including intolerance, a desire to eat and drink healthier goods, a conviction that non-dairy is better for the environment, and a desire to consume more plant-based meals. To appeal to flexitarian dairy customers, businesses could make current hybrid goods more ‘actively relevant’ to them by stressing both dairy and plant-based components.

Hybrid dairy may also be positioned as an economical alternative to plant-based milk for a group of customers known as “reluctant dairy lovers.” Adding plant-based components to dairy products may help retain fiber-conscious customers, since 65% of Polish consumers believe yoghurts and yoghurt drinks with extra fiber would be desirable. Finally, businesses should emphasize the flavor and enjoyment that plant-based products can provide, as many customers express a desire to move to more non-dairy choices.

US farm exports hit three-year low in 2023 as China slows buying

U.S. exports of agricultural and related products reached a value of $191 billion in 2023, down 10% from 2022’s record as both commodity prices and shipment volumes declined.

That marks a three-year low though is similar to the 2021 levels, and it reflects competition from key suppliers, particularly when it comes to satisfying Chinese demand.

Data published by the U.S. Census Bureau on Wednesday shows exports of bulk commodities, which include top-grossing items like soybeans, corn, wheat and cotton, hit a 10-year low by volume in 2023. That volume was down 17% from 2022, the largest year-on-year tumble since 1985.

Last year’s U.S. bulk commodity exports were still a 10-year low even when subtracting China’s portion, though the annual decline shrinks to 10%, the same as in 2022, China excluded. These declines were driven by high prices and a supply increase in rival exporting countries.

Top exporter Brazil is a prime example as its combined corn and soy shipments in 2023 totaled nearly 158 million metric tons, some 29% higher than 2022’s record. U.S. corn-plus-soy exports last year totaled 94 million tons, down 18% on the year to a four-year low.

This uncomfortable predicament for U.S. exporters was emphasized in December as China was the destination for 38% of the cargoes, down from the month’s three-year average of 59%. Outside of the 2018 trade war, that was China’s lowest share of December U.S. soybean shipments since 2002.

Despite the decline in the farm sector, all U.S. exports, including goods and services, rose 1% in 2023 to a new record of $3.05 trillion. However, that annual growth rate is slim compared with 18% and 19% observed in 2022 and 2021, respectively.

Agriculture and related products accounted for 6.2% of all U.S. exports last year, a four-year low and down from shares above 7% in the previous three years.

U.S. agricultural and related exports as a % of total U.S. exports
U.S. agricultural and related exports as a % of total U.S. exports

DECREASES AND INCREASES

By value, last year’s U.S. bulk commodity exports declined 22% from 2022’s high. The average export cost of U.S. soybeans in 2023 fell 5% on the year and the corn cost eased 10%, though both were still higher than in 2021.

U.S. wheat export prices were down 16% last year and cotton prices fell 19%, and those combined with large annual volume declines. U.S. cotton shipments fell 18% on the year to a seven-year low, and wheat shipments were the lightest since 1971, down 13% on the year.

U.S. soybean oil exports in 2023 plunged 76% on the year as the focus increasingly shifts toward domestic use, and the volume was by far the smallest in records back to 1967. Beef and beef product exports slipped 12% from 2022’s high, hitting a three-year low due to a pullback from Asian buyers.

Not everything was grim for U.S. ag exports last year as soybean meal shipments reached a record 14.1 million tons, some 10% above the prior high set in 2018. Both years featured big crop losses in top meal exporter Argentina, and better 2024 harvest prospects mean the U.S. meal boost may have been temporary.

Pork and pork product exports rose 8% by volume in 2023 though stayed below the strong Chinese demand years of 2020 and 2021. A bump in domestic corn processing allowed U.S. ethanol exports last year to rise 9% to a four-year high.

BY COUNTRY

By value, Canada, China and Mexico accounted for about half of all U.S. agricultural and related exports in 2023, with Canada slightly edging China for the first time in four years.

Mexico claimed a record 15.6% share of last year’s U.S. ag exports, up from the prior high of 13.9% in 2022. Canada accounted for 17.3% of the total U.S. value, its highest since 2006.

China’s portion dropped to a four-year low of 16.6% from a record 19.2% in 2022, and China’s 2023 share was similar to those observed in 2014 and 2016, for example.

Source

Net Farm Income in 2024 Forecast to Be Down 25% from Last Year

On Feb. 7, USDA released the first insights into net farm income expectations for 2024. The latest report anticipates a decrease from 2023’s forecast of $155 billion to $116 billion – a drop of nearly $40 billion, or 25.5%, and the largest recorded year-to-year dollar decrease in net farm income. The decline marks the second consecutive drop since record-high farm income levels in 2022 ($185.5 billion). When adjusted for inflation, net farm income, a broad measure of farm profitability, is expected to decrease 27%, or $43 billion, from 2023. If realized, 2024 net farm income would be below the 20-year average (2003-2022) in inflation-adjusted dollars. A $21 billion expected drop in cash receipts for agricultural goods and a $17 billion expected increase in production expenses explain 95% of the forecast decline.

The forecast for 2023 net farm income in this report was also updated from December’s report, increasing marginally from $151 billion to $156 billion. Net farm income reflects income after expenses from production in the current year and is calculated by subtracting farm expenses from gross farm income. A year-to-year drop of this magnitude parallels a recent decline in general farmer sentimentas lower expectations set in for commodity prices in 2024. Importantly, this is still a very early measure of farm financial health. Countless factors will shape supply and demand conditions over the course of the next 11 months.

Direct government payments are estimated to decrease by $1.9 billion, or 16%, between 2023 and 2024 to slightly over $10 billion and about 9% of net farm income. This marks the fourth consecutive annual decrease in government payments for producers since the peak of the COVID-19 pandemic in 2020 and would represent the lowest value since 2014, even without adjusting for inflation. Ad hoc and supplemental program payments, which include payments from the Emergency Relief Program (ERP), Quality Loss Adjustment Program and other farm bill designated-disaster programs, are expected to decrease from $6.54 billion to $5.84 billion, an 11% decline and $5.49 billion less than paid out during 2024. The previous announcement of limited additional funds to extend ERP to cover 2022 disaster losseshave reduced expected payments in this category, which is reflected in the lower values. Pandemic era programs that contributed to as much as 48% of net farm income in 2020 no longer contribute to farmers’ cash flow.

Commodity insurance indemnities, included for comparison to ad hoc disaster programs, are forecast down slightly in 2024, moving from $21.77 billion to $20.78 billion but remaining well above the prior 10-year average of $12.72 billion. The number of crop insurance programs has increased and along with it the total value of liabilities across sold crop insurance policies. Increased participation and difficult weather have resulted in higher-than-average indemnity payments the past several years. Additionally, ERP still requires those who receive payments to enroll in crop insurance or Noninsured Crop Disaster Assistance Program coverage (when crop insurance is not available) for the next two available crop years. This pushes up crop insurance participation further, contributing to additional indemnities as more farmers are encouraged to manage their risks.

Crops

Cash receipts for crop and livestock sales are expected to move from $507 billion in 2023 to $486 billion in 2024 for a loss of $21 billion (4%). The forecast decline in crop receipts explains nearly 80% of this difference, signaling a weaker incoming year for row crop prices. Receipts for all crops are forecast to drop to $16.7 billion (6%). Corn receipts are forecast down $11.3 billion (14%) and are responsible for much of the expected crop receipts decline. Corn futures prices have recently dropped to a three-year low on expectations of high global supplies. Soybean receipts are expected down $6 billion (10%), hay receipts down $800 million (8.3%) and wheat and vegetable and melon receipts .5% or less. Cash receipts for fruits and tree nuts and cotton buck the trend of crop-related income declines. Fruit and tree nut receipts are expected to increase $800 million (2.8%) and cotton receipts are forecast to increase by $100 million (1.6%). Heavily traded grain commodities face strong supply dynamics that have weakened price outlooks for the year, substantially contributing to the $16.7 billion expected difference between 2023 and 2024.

Livestock

Cash receipts for livestock are also forecast down between 2023 and 2024, though not to the same magnitude as crops. Total animal product receipts are expected to decrease $4.6 billion (1.9%) from $244 billion to $239 billion. After several years of gains, receipts for cattle and calves are expected down $1.6 billion (1.6%) – the largest drop among the livestock categories. With the smallest cattle inventories in the U.S. in 73 years, prices for beef will likely be strong but largely offset by limited production. Turkey producers are expected to face a rough year, according to these numbers. Cash receipts for turkeys are expected down $1.4 billion (21%). Growing flocks less impacted by avian influenza and weaker-than-expected consumer demand may explain this grim outlook. Similarly, cash receipts for chicken eggs are expected down $1.7 billion (12%) for likely similar reasons. Receipts for dairy products and milk are expected down $900 million (2%) primarily linked to lower expected prices. Growing inventories of cold stored cheeses and larger supplies globally create downward pressures against strengthening Class prices. Broilers and hogs are the only categories expected to see increases, up $700 million and $300 million respectively. Though any positive number is welcome, hog producers faced record losses in 2023 that will not be substantially offset by a $300 million across industry gain. Strong demand from consumers for chicken meat continues to boost prices in the broiler arena. For most livestock categories, the forecast difference in cash receipts between 2023 and 2024 is quite small especially as compared to the difference from 2022. This suggests that many livestock producers can expect similar pricing dynamics to 2023 for 2024 (aside from turkey and egg producers).

Production Expenses

Behind a drop in cash receipts, the most significant contributor to an expected farm income drop is attributable to higher production expenses, estimated to increase 4%, or $16.7 billion, over 2023 for a total of $455 billion across the farm economy. This marks the sixth consecutive year of production expense increases and fourth consecutive year production expenses hit a new record high. Production expenses are expected up across almost all categories.

These rising production expenses have left many farmers exposed in 2023 and beyond to the limitations of farm programs that are focused on fixed reference prices, or slowly adjusting price and revenue histories, which are among the issues up for discussion in the current farm bill debate.

The largest percent increases between 2023 and 2024 are expected between marketing, storage and transportation (up 12%), the cost of labor (up 7.5%) and the cost of pesticides (up 7.2%). After a year of declines for fertilizer, USDA expects a 4.3% increase between 2023 and 2024 (from $30.4 billion to $31.7 billion) though still quite a bit lower from the $36.8 billion spent in 2022. Even with improving inflationary conditions, interest expenses are expected up $230 million (about 1%), meaning relief around the cost of capital and servicing that capital is not expected for much of 2024. The Federal Reserve has held the federal funds effective rate at 5.33% since August 2023 with indications that lower rates could be many months away. This dynamic is reflected in USDA’s estimations that interest expenses will increase for farmers and ranchers. The only main expense category forecast to decrease is fuels and oils, expected to drop over 7% ($1.21 billion) across the farm economy as fuel prices continue to recede from record levels in 2022. Farmers and ranchers will see no relief on the expense side of their balance sheet, according to these early numbers.

Other farm income, which includes things like income from custom work, machine hire, commodity insurance indemnities and rent received by operator landlords, is estimated to decrease by $100 million, from $54.1 billion in 2023 to $54 billion in 2024. When all factors influencing income are accounted for, the resulting expectations for a sharp net farm income decline become apparent, as illustrated in Figure 6.

Summary

USDA’s most recent estimates for 2024 net farm income provide a very early forecast of the farm financial picture. For 2024, USDA anticipates a decrease in net farm income, moving from $155 billion in 2023 to $116 billion in 2024, a decrease of 25.5%. Much of the forecasted decline in 2024 net farm income is tied to lower crop and livestock cash receipts and continued increases in production costs. It is important to highlight the early nature of this forecast. For example, net farm income numbers for 2023 will not be finalized until August 2024 and have already been adjusted by over $18 billion since the first estimates were released in February 2022. USDA digests new information and data as it becomes available, shifting calculations from estimates to actual values. This means there is still much uncertainty in final 2024 net farm income. Numerous supply and demand conditions must unfold before economists can have confident expectations for the year’s farm income.

With an early expectation of significant revenue declines, though, it becomes all the more important for producers to have clarity on rules that impact their businesses’ ability to operate and for producers to have access to comprehensive risk management options. Farmers and ranchers will have a resounding voice, as they should, in the formulation of vital legislation such as the farm bill, which can either complicate or streamline their ability to contribute to a reliable and resilient U.S. food supply.

Source

Number of U.S. Farms Falls and Size Increases

Farms continued to get larger and the number of U.S. farms fell between 2017 and 2022, new data released by the U.S. Department of Agriculture showed on Tuesday.

The Census of Agriculture, taken every five years, counts and details U.S. farms and is used to shape the nation’s farm policies.

There were 1.9 million U.S. farms in 2022, down about seven per cent from 2.04 million in 2017, the census showed. The number of acres of farmland also fell by about 20 million from 2017.

The average farm size rose from 441 acres (178 hectares) in 2017 to 463 acres (187 hectares) in 2022.

Agriculture Secretary Tom Vilsack called the survey “a wake-up call” at an event at the USDA headquarters on Tuesday. “This survey (asks) the critical question of whether as a country, are we OK with losing that many farms,” he said.

Farm consolidation has been an ongoing concern of USDA. Vilsack speaks often about the need to support smaller farming operations and better distribute farm income, which is concentrated among the largest farms.

The number of U.S. farms has been in steady decline for several decades. Between 1997 and 2017, for instance, the number fell about eight per cent, or by about 200,000 farms, according to previous census data. That span also saw a decrease in farm acres of 54.5 million, the data shows.

The vast majority of farms – about 1.8 million – are owned or rented by white producers, the census shows. The average age of farmers continues to rise and reached 58.1, up 0.6 year from 2017.

The census showed an uptick in farms adopting renewable energy projects like solar panels, up nearly 30 per cent to 116,700 farms, and wind turbines, up two per cent to 14,500 farms.

The USDA defines a farm as any operation that sells more than $1,000 in product annually.

Source: Reuters

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