By LEE MIELKE
Mielke Market Weekly National Milk urged the Obama Administration to hold off national enforcement of the new Waters of the U.S. (WOTUS) regulation, in response to a recent court decision suspending the regulation in some states. The U.S. District Court for the District of North Dakota halted implementation of the water regulation, granting a temporary injunction in favor of 13 states that brought suit in North Dakota against the Environmental Protection Agency and the Army Corps of Engineers. The EPA said after the court ruling that it would not implement the rule in the 13 states that were part of the suit: Alaska, Arizona, Arkansas, Colorado, Idaho, Missouri, Montana, Nebraska, Nevada, New Mexico, North Dakota, South Dakota and Wyoming. In light of the potential for confusion and inconsistent application of the regulation following the ruling, NMPF said in a letter sent Aug. 31 that the government should suspend enforcement of the WOTUS nationwide. "The EPA implementation schedule for the Clean Water Rule now treats dairy farmers differently nationwide, and clearly falls short of the EPA’s goals of ‘greater clarity, consistency, and predictability when making jurisdictional determinations,’ " NMPF President and CEO Jim Mulhern said in the letter. "Therefore, we ask that EPA and the Corp of Engineers use their enforcement discretion and cease application of the recent WOTUS rule in all 50 states, until such time as it can be evenly applied in every state." Dairy Products report You’ll recall that preliminary data showed July 2015 milk production totaled 16.6 billion pounds, according to USDA, up 1.2 percent compared to July 2014. USDA’s latest Dairy Products report shows where the milk went. July total cheese output hit 988.4 million pounds, up 2.5 percent from June, up 3.1 percent from a year ago. Year to date (YTD) production, at 6.8 billion pounds, was up 2.3 percent from a year ago. Italian cheese output hit 422.3 million pounds, up 1.1 percent from June, up 3.2 percent from a year ago, with YTD at 2.9 billion pounds, up 2.3 percent. Mozzarella, at 331.7 million pounds, was up 1.3 percent from a year ago, and YTD totaled 2.3 billion pounds, up 1.0 percent. American type cheese production totaled 393.2 million pounds, up 2.4 percent from June, up 3.4 percent from a year ago, with YTD output at 2.7 billion pounds, up 2.9 percent. Cheddar output in July amounted to 282.1 million pounds, up 4.7 percent from a year ago, with YTD at 1.97 billion pounds, up 2.5 percent. "Total cheese production saw the slightest percentage decline from June in history (based on daily average basis)," reports HighGround Dairy’s Eric Meyer. "While July has more days of the month than June, U.S. daily average cheese production has a spring peak in April and begins declining through September. July only had production drop 248,000 pounds per day versus June. However, we do not count this as extremely bearish yet, as inventories only rose by 20 million pounds on an extra 24 million pounds produced." Butter totaled 133.3 million pounds, down 6.2 percent from June and 3.2 percent below a year ago, bringing YTD output to 1.1 billion pounds, down 1.7 percent. "Butter production rolled below last year for the first time in three months," Meyer says. "Counter-intuitive to basic supply and demand, extremely high butter prices does not translate to stronger production. There seems to be a bit of panic in the air with memories of last year fresh in buyers’ minds, but there is little evidence to suggest prices can hold at these historic levels for a second straight season once holiday demand has been fulfilled and imported fat begins making its way to shore in Fourth Quarter." Nonfat dry milk (NFDM) totaled 155.1 million pounds, down 6.9 percent, with YTD output hitting 1.2 billion pounds, up 8.5 percent. Skim milk powder totaled 35.1 million pounds in July, up 23.0 percent, with YTD output at 255.4 million pounds, down 22.9 percent from 2014. The report pegged July 31 NFDM stocks at 269.7 million pounds, up 7.4 million pounds or 2.8 percent from June and 8.5 percent above a year ago. Fat is back; ask McDonald’s You’ll recall that I reported a week ago that June fluid milk sales were up for the first time in five months. Interestingly, the Aug. 28 Daily Dairy Report (DDR) adds that whole milk sales propelled the increase as whole milk sales totaled 1.122 billion pounds, up 74 million pounds, or 7.1 percent from a year ago. "Fat is back," says the DDR. "After years of being banished from the American diet, butter and whole milk are gaining favor. Cooking shows promote butter as a delicious, natural alternative to highly processed oils. Some medical journals are now touting the health benefits of milkfat. In fact, studies have linked consumption of milkfat with lower rates of heart disease and obesity." Sales of whole milk in the U.S. have grown on a year-over-year basis in each of the last seven months, according to the DDR, and manufacturers have stepped up whole milk bottling, leaving less cream for other users. The DDR warned; "If sales of whole milk continue to climb, cream is likely to remain tight." Add to that, CNBC reported last week that McDonald’s is now using "real butter to cook breakfast items on the grill and to spread on toasted items like English muffins, biscuits and bagels. A number of locations across the country have already started using the dairy product, and two sources tell CNBC that a full rollout would occur once locations deplete the supply of liquid margarine." |
