The U.S. Department of Agriculture and the U.S. Department of Health and Human Services held a media conference to discuss the new 2010 Dietary Guidelines for Americans on Monday. National Milk’s vice president of scientific and regulatory affairs Jamie Jonker told DairyLine listeners Thursday that the guidelines have positive things for the dairy industry and challenging things.
The “3-A-Day of Dairy” message is still important for the average American consumer, Jonker said, and the Dietary Guidelines recommend average Americans continue to consume three servings of dairy daily, including low fat and nonfat milk, yogurt, and modest amounts of cheese.

In fact, Jonker said the Guidelines point out that that recommendation is currently not being met so, not only is the recommendation still included in the Guidelines, the recommendation is not being met meaning the dairy industry has an opportunity to increase consumption among Americans.

When asked if that principle carries into school feeding programs, Jonker said it certainly does because school lunch programs are based on the Dietary Guidelines however the challenge here is the Guideline’s focus on what Jonker called the “nutrients to avoid,” things like sodium, solid fat and added sugars.
“Those are challenges for the dairy industry,” Jonker said, “in such things as cheese on pizzas, flavored milks, and cheese snacks.”

The regular re-assessment of the Dietary Guidelines behooves the dairy industry to remain vigilant in this process. Jonker also pointed out that the dairy industry needs to produce the products that Americans wish to consume.
The vegetarian and anti animal agriculture lobby is also involved as Jonker pointed out there is an undertone of moving toward a vegan diet, but the Dietary Guidelines recognize the important nutrients that dairy products contribute such as calcium, prosperous, protein, vitamins A and D, B-12, riboflavin, and niacin.

Producers agree policy needs to change
The International Dairy Foods Assoc.’s (IDFA) annual Dairy Forum held last week in Miami confirmed there’s far more consensus in the dairy industry than there has been in a long time, according to IDFA’s Jerry Slominski.
Speaking in Wednesday’s DairyLine, Slominski said dairy processors and producers agree that existing dairy policy needs to change and reported that IDFA CEO, Connie Tipton, said the dairy industry is “at a crossroads and IDFA believes that the path forward is with policies that promote growth to the benefit of all of us.”

A new study from Informa Economics was introduced at the Forum that shows the Dairy Market Stabilization Program, a key proposal of National Milk’s  Foundation for the Future, would have withheld an estimated $626 million from dairy farmers if it had been in place from 2000-2009. The report also highlighted the program’s regional differences, according to Slominski, citing Wisconsin farmers as an example, stating that they would have paid $150 million while California’s dairies would have only paid $28 million.

“Taking money from dairy farmers during hard times, instead of helping, would be a remarkable turn-around for our nation’s dairy policy,” Slominski said.
“In 2009, the worst year on record for dairy farmers, the stabilization plan would have withheld $390 million from producers. That very year Congress appropriated an extra $350 million, mostly in direct payments, to increase producer’s incomes.”

One of the most convincing arguments at the Forum against growth management, according to Slominski, came from Nestle’s Patricia Stroup.
She told attendees that in order for companies like hers to continue their preferred course of sourcing high quality milk from the United States, they need to be assured that that supply will continue to be available and reliable.

“There are many policy areas where we agree,” Slominski argued. “But the stabilization program, or any other government program to manage growth is the wrong path forward.” “Instead of being secondary, margin insurance, and other proposals where processors and producers agree, should be the essential part of that plan,” he concluded, and “programs to limit milk supply or impose penalties on producers should not be part of what is shaping up and on full display at Dairy Forum to be a very productive discussion about the future of our industry.” 

Federal Class III milk price drops 35 cents
The nation’s benchmark milk price slipped some more. The U.S. Department of Agriculture announced the January Federal order Class III price at $13.48 per cwt., down 35 cents from December, and $1.02 below January 2010. It equates to about $1.16 per gallon. However, Thursday’s Class III futures portend a February price of $16.63, March $18.37, and April $18.08. The Class IV price is $16.42, up $1.39 from December, and $2.57 above a year ago. The NASS-surveyed cheese price averaged $1.4076, down 5.3 cents from December. Butter averaged $1.8428, up 18.9 cents. Nonfat dry milk averaged $1.2530, up 6.8 cents, and dry whey averaged 39.35 cents, up 1.5 cents.

California’s January 4b cheese milk price is $12.49 per cwt., up 27 cents from December, but 23 cents below January 2010, and 99 cents below the Federal order Class III price. The 4a butter powder price is $16.49, up $1.82 from December and $2.74 above a year ago. Cash dairy prices keep rising with the exception of butter. Block cheese, after jumping 21 cents the previous week, closed the first Friday in February at $1.81 per pound, up another 7.5 cents on the week, and 31.75 cents above a year ago. The barrels closed at $1.7750, up 7 cents on the week, and 30.25 cents above a year ago. Only two cars of block traded hands all week and none of barrel. The NASS-surveyed U.S. average block price hit $1.4580, up 6.3 cents. Barrel averaged $1.4662, up 4.7 cents.

Readers with questions or comments for Lee Mielke may write to him in care of this publication.