The CWT program assisted in the export of 286,601 pounds of Cheddar cheese to customers of Dairy Farmers of America and Darigold in Asia. The product will be delivered April through June and pushed CWT’s 2011 cheese exports to 19.1 million pounds, so far.

Importers of dairy products will start paying the promotion assessment. The USDA finalized its long-awaited regulations. National Milk lobbied for its inclusion in the 2002 Farm Bill but it was blocked due to objections that the domestic checkoff was not applied to farms in all 50 states.
The Federation worked with Congress to correct that in the 2008 bill, however regulations were slow in coming. National Milk’s Chris Galen reported that “It’s been a 10-year process and we’re finally at the end of the road.”

The first phase is April 1 implementation of the 15-cent per cwt. assessment on producers in Alaska, Hawaii and Puerto Rico. Importers will begin paying in August, according to Galen, and include milk protein concentrate, casein, and cheese but will only pay 7.5 cents per cwt.

“This is really an issue of justice,” Galen charged. “For too long, imported dairy products and those who bring them into this country have enjoyed a growing market.”

He pointed to cheese as an example, stating that, in the roughly 30 years since the domestic checkoff began, cheese consumption has more than doubled, “so importers and imported cheeses in particular, have benefited from that but expansion has come on the backs of U.S. farmers, not their counterparts in other countries, so finally we’re going to be able to do something about it.”
Critics charge that imports will now be able to use the “real Seal” and foreign dairy products will be included in promotional efforts.

Galen admitted that foreign products must be treated the same as U.S. products but argued, “The amount of money that we’re talking about is hardly like we’re going to be overwhelmed by a bunch of foreign interests dominating how the National Dairy Board is run.”

He also cited other commodities like beef, pork, and cotton that have assessed imports and have not found that doing so was detrimental to their promotions.
“This is still going to be a program that focuses on dairy products overall and you also have to look at what’s happening with the dairy checkoff here in this country,” he argued. “It’s really not about advertising anything anymore it’s about building strategic alliances and relationships with processors and marketers so it’s high time that those who benefited from all those activities, help pay the tab.”

Milk production increases

February milk production in the top 23 states totaled 14 billion pounds, up 2.4 percent from February 2010, according to preliminary data in the USDA’s latest Milk Production report issued this afternoon. Output in the 50 states amounted to 15 billion pounds, up 2 percent. Revisions reduced the preliminary January total by 21 million pounds, to 15.2 billion, still 2.5 percent more than January 2010.

February cow numbers totaled 8.4 million head, unchanged from January, but 81,000 more than a year ago. Output per cow averaged 1,666 pounds, up 24 pounds from a year ago.

California milk output was up 2.4 percent from a year ago, thanks to a 50 pound gain per cow. Cow numbers were down 8,000 head. Wisconsin was up a half percent on 6,000 more cows. Output per cow was unchanged. New York was up 3.8 percent on a 60-pound gain per cow. Cow numbers were unchanged.

Idaho was up 3.4 percent, thanks to 19,000 more cows. Output per cow was unchanged. Pennsylvania was down 0.2 percent due to a loss of 10 pounds per cow. Cow numbers were up 2,000 head however, and Minnesota was down 0.8 percent on a 15 pound per cow loss. Cow numbers were up 1,000 head.
The biggest gain was in Florida, up a whopping 12.2 percent, followed by Texas, up 8.8 percent, and Arizona, up 7.3 percent. Illinois recorded the biggest loss, down 3.2 percent, followed by Missouri, down 2.7 percent, and Minnesota.

Fewer dairy cows culled

USDA’s latest Livestock Slaughter report estimated 248,800 culled dairy cows were slaughtered under federal inspection in February, down about 15,100 head from January, but 25,800 head more than February 2010. Through the first two months of the year, culled dairy cow slaughter is estimated at 512,700 head, up 57,700 from the same period in 2010.

Checking the markets; block cheese continued its decent but did inch back up a quarter-cent Friday, to close at $1.6275 per pound, down 5.75 cents on the week, but 30.25 cents above a year ago. It has lost 38.75 cents in two weeks.
The 500-pound barrels closed at $1.64, down 6 cents on the week, and 32.75 cents above a year ago.

A whopping 63 cars of block traded hands on the week and only four of barrel. The lagging NASS-surveyed U.S. average block price hit $2.0036, up 1.9 cents. Barrel averaged $1.9875, up 1.4 cents.
Butter finished the week at $2.0750, up a half-cent, and 58.5 cents above a year ago. Thirty one cars were sold on the week.
NASS butter averaged $2.1156, up 4.9 cents.

Cash Grade A nonfat dry milk closed Friday at $1.75, down 4 cents, while Extra Grade held all week at $1.80. NASS powder averaged $1.5147, up 3.5 cents, and dry whey averaged 44.31 cents, down 2 cents.

The views and opinions expressed in this column are those of the author and not necessarily those of Farm World. Readers with questions or comments for Lee Mielke may write to him in care of this publication.