SALEM, Ohio — One milking every three days ends up in the export market – and that market continues to grow, according to Erik Metzger, general manager of National All Jersey, Inc.
Metzger told Jersey breeders attending the annual summer picnic at Cold Run Jerseys, LLC in Salem that domestic milk solids have seen the greatest growth, as they now account for 15.5 percent. This is just one more reason the future looks bright for the Jersey breed.
"This is important to us as a breed because milk solids are exported in the form of cheese, milk powders, whey products and butterfat," he explained. "Jerseys excel in solids production."
He said protein standardized nonfat dry milk and whole milk powder have seen the greatest increase in growth. Metzger said standardizing these products has made them popular with international buyers because they provide a consistent end product.
He said when processers start with high-component milk they will have an economic advantage because higher protein milk yields higher protein powder. Also when processers are producing for the export market, they can add lactose or permeate to the standardization process to achieve the desired level of protein.
Buying lactose and selling it in a value-added product and starting the process with high-component milk is beneficial to the processer.
Metzger said there is also an increasing demand for the purified form of butterfat, which is marketed domestically and internationally for use in recombining dairy products such as cream cheese, processed cheese, milkshake mixes, ice cream, desserts, popcorn butter and confectionaries.
In the export market, the top buyers are Europe, the former Soviet Union, Mexico, the Far East and the Middle East.
Another benefit, according to Metzger, is the production costs for the plants making the powders.
Jersey milk has less water to be removed during the process, so drying costs to produce the powder may be substantially less than for other types of milk.
He said this is important to Jersey producers because it can improve profitability for the processors and ultimately mean a premium for the farmers themselves.
The downside is that Ohio does not produce a lot powder – most of it is produced in Michigan and New York.
Finally, Metzger said using Jersey milk gives U.S. processers an edge on the world market, with greater profitability from whole and skim milk powder.
He also discussed changes in the dairy portion of the 2014 farm bill. The new bill offers changes in the Dairy Safety Net, eliminating the Milk Income Loss Coverage, Dairy Product Price Support Program and Dairy Export Incentive Program.
Under the new farm bill portion known as the Margin Protection Program, producers will receive indemnity payments when the actual dairy margins are below the coverage levels they selected. The margins will be based on milk prices minus feed costs for the operation.
Metzger said the program is voluntary and with roughly 200 combinations of production bases and insurance levels, the level of insurance may vary depending on the coverage level producers select. He encourages producers to take advantage of several excellent tools available online to help them make decisions about their coverage levels.
The farm bill requires the Margin Protection Program to be established no later than Sept. 1, with coverage to begin by July 1, 2015. The final rules for the program have not been written yet. The program will be implemented through the USDA’s Farm Service Agency.
In other news, Molly Michael of Baltimore, in Fairfield County, was crowned Ohio Jersey Queen this year. Michael, 18, is the daughter of Michael and Melissa Michael. She is a 2014 graduate of Bloom Carroll High School and will be attending The Ohio State University this fall.
She plans to major in animal sciences with a minor in biology. Michael raises replacement heifers with her brother, Grant, as FFA SAE projects. She is a director at large and secretary of the Ohio Junior Jersey Breeders’ Assoc.
Michael received the Ohio 4-H Dairy Achievement Award, State FFA degree and is currently working toward her American Degree as well as her Gold Award in Girl Scouts.
Dar Re Farm, owned and operated by Regan Miller and Family of Big Prairie, was the top Jersey herd in Ohio for 2013. The Millers were among several Ohio Jersey breeders who received awards for milk, fat and protein records for individual animals.
