Feed items
Dairy Revenue vs. Milk Price Volatility
The recent increase in volatility of the grain markets has generated considerable interest in the management of dairy margins (i.e., income over feed costs). Two graphs showing the importance of feed costs and the relative volatility of feed versus milk prices can be obtained by clicking here. For a spreadsheet showing the average U.S. cost of a 16% dairy ration click
here.
National Farmers Union Reacts to Peterson's Dairy Reform Proposal
The National Farmers Union (NFU) Board of Directors has passed a resolution in response to U.S. House of
Representatives Committee on Agriculture Ranking Member Collin Peterson’s recent dairy reform proposal. For their response, click here.
NMPF Responds to IDFA's Comments on Rep. Peterson's Dairy Policy Reform Proposal
The NMPF responds to IDFA CEO Connie Tipton’s comments with respect to Rep. Peterson’s dairy policy proposal. To obtain the NMPF comments click here.
IDFA's Criticism of Rep. Peterson's Propsal
IDFA President and CEO Connie Tipton provides some comments concerning Rep. Petersen’s dairy policy reform draft proposal. For the full set of comments click here
Petersen (D-MN) Releases Draft Dairy Policy Reform Proposal
Rep. Petersen yesterday released a draft of a dairy policy reform bill that closely mirrors that of the National Milk Producer’s Federation. For a copy of this bill draft, click here.
July Class III Futures Settle Today @ $21.13
July Class III futures settled at $21.13 today. The record-high Class III price is $21.38 set in July 2007. To see the history of recent Class III settle prices go to the following URL contained within the UW Understanding Dairy Markets website: Click Here .
The CDFA Holds a Hearing for Changing the Class 4a/4b Minimum Price Formulas
Last week, the California Department of Food and Agriculture (CDFA) held a hearing to
consider amending the minimum price formulas for milk sold to Class 4a (butter powder) and Class 4b
(cheese/whey) manufacturing plants. More than 20 producer and processor organizations/individuals provided
testimony at the hearing.
For a more complete story click here.
IDFA Asserts Budget Reductions May Move Up the Farm Bill Consideration
With the political climate in Washington, D.C., dominated by calls for austerity and debate over the debt ceiling, all aspects of the federal budget are open for reductions, including agriculture. Farm groups and members of Congress have expressed concerns about the depth of cuts targeted at agriculture and how this could impact timing for the 2012 Farm Bill reauthorization.
For the full story click here.
Corn, Wheat Rebound from Last Week's Losses
U.S. grain futures surged as traders saw signs that foreigners were re-entering the markets after last week’s steep losses.
The U.S. is the world’s largest exporter of corn and wheat, and when futures prices fall, foreign buyers step in to secure the grains they need. Last week, corn sank to 3½-month lows and wheat reached its lowest level in almost a year.
New Zealand Had a Good Milk Production Year
Favorable weather has helped New Zealand farmers post strong late-season production. Over the January-April period, New Zealand milk production was up 9.3% from last year (including a 33.3% jump in April), according to industry figures.
Output for the year ending May 2011 is projected to be up 4-5% from the 2009/10season. During the first four months of 2011, NZ Whole Milk Powder exports were up 38%. Exports of Skim Milk Powder and cheese were lower and shipments of butterfat were flat compared with 2010 levels.
