Dairyline
By Lee Mielke

Looking back on the first six months of 2010, the average cow generated about $1,640 in milk sales, up about $283 per cow from 2009, according to USDA data reported by Dairy Profit Weekly Editor Dave Natzke.

The average cow produced about 10,675 pounds of milk in the first half of 2010, up almost 300 pounds from a year earlier, and the 2010 all-milk price has averaged about $15.38 per cwt., an increase of about $3.50.

“Multiply $283 by 9 million cows, and that results in a $2.5 billion increase in gross income compared to the first half of 2009,” Natzke said. “But despite the improvement, 2010 still is well behind income for both 2008 and 2007.” He adds that 2009 gross income from milk sales, at $24.3 billion, was down more than $10 billion compared to 2008’s $34.8 billion.

One of the bright 2010 dairy spots is exports; however, a snag may be in the works, Natzke reported. Earlier this year, the European Union informed the U.S. that it is changing requirements for dairy product export certificates.

Since 1997, the EU has required imports of dairy products come from milk with a somatic cell count of less than 400,000 cells per milliliter. While that standard isn’t changing, the EU said it will now require milk quality records for the milk from all individual farms used in the imported products, instead of just a single test from commingled milk.

National Milk and the U.S. Dairy Export Council asked the U.S. Food & Drug Administration to intervene, contending the issue is not related to food safety, but rather a potential artificial trade barrier. After meeting with U.S. government officials, the EU said it will extend the Dec. 1 deadline to allow additional time to work out details.

Speaking of exports, another 388,014 pounds of Cheddar and Monterey Jack cheese will go to Africa and Asia in July and August via the CWT program. One bid was from Dairy Farmers of America and three from Darigold, which raised CWT cheese exports so far to 38.1 million pounds to 22 countries.

Private exports in the first five months of 2010 averaged 2 million pounds per week, according to the CME’s Daily Dairy Report, up 128 percent from 2009.

National Milk reacts to new dietary recommendations
National Milk has weighed in on the June 15 release of the Dietary Guidelines Advisory Committee’s report for 2010. Chris Galen likened it to the “World Cup” of food and nutrition policy in his weekly Thursday program. The guidelines are updated every five years, and the dairy industry has a great deal riding on the outcome of this, according to Galen, because of the strong and prominent role that milk and dairy products historically have enjoyed.

Dairy critics have become bolder in the last decade or two, he said, and claim that alternative and imitation dairy products should be included or that a plant-based diet is preferable to consuming animal products.

This is why National Milk has been so involved in this process, Galen said, and issued comments on the advisory committee’s report affirming their recommendation of three servings of dairy products per day for children two and younger and that a range of dairy products, milk cheese, and yogurt be included.

“They are nutrient dense and offer a big nutritional bang for the buck,” Galen argued, “And real milk and dairy products should be preferred over imitations because some of these plant-based foods like soy drink and rice yogurts, etc. are trying to elbow their way into the guidelines and recommendations and we want to keep elbowing them out.”

The danger is that it comes down to politics versus science and Galen warned that food has become a lot more political over the last 10 years. “The stakes become higher and that’s why it’s very important to have sound science guiding the process that we’re undertaking,” Galen said.

Capitol Hill works to renew CNRA
Congress is also trying to renew the Child Nutrition Reauthorization Act, which outlines what types of products are served in schools. Galen pointed out that these dietary guidelines have to be followed in school lunch programs and “that’s why these guidelines are so very important in making certain that dairy still has a prominent role in government feeding programs.”

National Dairy Council’s Vice President Jean Ragalie was back in Monday’s “DMI Update” to continue last week’s update on the “Fuel Up to Play 60” program, of which the dairy checkoff is involved. She said it’s popular because it enables schools to get kids to eat better and be more active.

“When we talk about eating better,” Ragalie said, “That means eating foods that they (kids) should be eating more of.” She said it takes a positive approach to nutrition and a critical part of that is eating more low-fat and fat-free dairy products and making more of them available in schools.

That means getting kids to drink milk more often, according to Ragalie, and have it in more places in the school. The “New Look of School Milk” program does that, she said, and the popular plastic resealable bottles are now in 11,000 schools nationwide.

Healthier school pizza is another area, she said, meaning tasty low-fat cheese on the pizza and “we know kids love pizza.”

It also means looking at the nutritional value of flavored milks, Ragalie said, and “the opportunity that presents to get more kids to drink more milk, more often.”

Breakfast is another important area. Kids get more than 50 percent of their calories at school, according to Ragalie, and making sure they have access to a nutritious breakfast, as well as lunch and snack time so “there’s a lot of opportunities for encouraging consumption of more low-fat and fat-free dairy products as well as fresh fruits and vegetables and whole grains.”