In politics, the Progressive Agriculture Organization (Pro-Ag) announced that several farm organizations, milk cooperatives and county commissioners have petitioned USDA for a national milk hearing that would allow U.S. dairy farmers to testify and “illustrate the severity of the problems that the majority of dairy farmers are experiencing,” according to a Pro-Ag news release. The petition calls for “abolishing USDA’s existing milk pricing formula and replace it with a formula that would consider the dairy farmers’ cost of producing milk.”

 

Canada trade: USDA Secretary Sonny Perdue met with his Canadian counterparts in Toronto last week in his first international trip as secretary.

Discussions centered on trade issues and reportedly included renegotiating NAFTA and American ultra-filtered milk. California: Californians are hammering out details, if producers approve a Federal Milk Market Order for the State. Western United Dairymen’s (WUD) Annie AcMoody wrote in her June 2 member newsletter.

“The newly appointed Producer Review Board (PRB) was tasked by Secretary Ross to examine and develop recommendations for a stand-alone quota program, and said they faced “an ambitious agenda.”

And, WUD CEO Anja Raudabaugh called out her state’s legislators, writing “This past month, Sacramento proclaimed that it is ‘America’s Farm to Fork Capital.’ Sacramento’s largest tenant, the California State Legislature, has proven itself to be the world’s greatest ‘Farm to Fork’ killer by executing policies that have steadily strangled agriculture’s ability to become sustainable and take steps forward to producing affordable, quality, and locally grown food.”

“Californians have embraced a tremendous variety of agricultural products in their everyday lives, and the agricultural community loves to grow them. There is a tremendous partnership between California’s citizens and its agricultural families, and none so much as with the California Dairy industry,” an industry she said, “the largest agricultural driver in the state.”

Plant-based ‘milks’: It’s no wonder there is a labeling battle going on by the dairy industry. Non-dairy products are taking market share, reports the June 2 Dairy and Food Market Analyst (DFMA). The DFMA stated: “In the 52 weeks ending April 16, ‘alternative beverages’ accounted for a whopping 6.6 percent of fluid milk sales, up from 6.1 percent one year ago, according to IRI data.”

For perspective, the DFMA points out that “organic fluid milk products have just 5.0 percent of the fluid milk market. ‘Almond Beverage’ and ‘Coconut Beverage’ are experiencing the fastest growth in that category, up 9.6 percent year over year (YoY) and 8.9 percent YoY respectively.”

“What does that look like from a business perspective,” DFMA asks? “Elmhurst (formerly Elmhurst Dairy), based in Elma, N.Y., recently launched a new business model to ‘lead the plant-based revolution.’ Their products, ‘Milked Almond,’ ‘Milked Cashew,’ ‘Milked Hazelnut’ and ‘Milked Walnut’ beverages, are all non-GMO, gluten free, vegan, dairy free, lactose free and kosher. In 32-ounce cartons, these high-margin products are targeted at millennials and are available for purchase at groceries including Bristol Farms and Publix,” the DFMA says.

GDT Auction

The climb continued in the latest Global Dairy Trade (GDT) auction, but it slowed. The weighted average for all products offered June 6 inched up 0.6 percent, sixth consecutive event of gain, following a 3.2 percent rise on May 16.

GDT Cheddar led the gains, up an impressive 14.5 percent, after it inched 0.6 percent higher May 16. Skim milk powder was up 7.9 percent, following a 1 percent rise. Butter was up 3.3 percent, after leading the gains last time with an 11.2 percent jump.

Whole milk powder was down 2.9 percent, after inching 1.3 percent higher May 16, and anhydrous milkfat was down 1.2 percent following an 8.2 percent climb.

FC Stone equated the average 80 percent butterfat GDT butter price to $2.4921 per pound U.S. CME butter closed Friday, June 9, at $2.4750 per pound. GDT Cheddar cheese equated to $1.9436 per pound U.S. and compares to Friday’s CME block Cheddar at $1.63. GDT skim milk powder hit 97.79 cents per pound and whole milk powder averaged $1.4258 U.S. CME Grade A nonfat dry milk closed Friday at 90.75 cents per pound.

Dairy Products

Preliminary data reported April’s 50-state milk production at 18.3 billion pounds, up 2.0 percent from April 2016. USDA’s latest Dairy Products report shows that processors made more cheese and less butter with it.

April cheese output totaled 1.04 billion pounds, down 2.1 percent from March but 3.7 percent above April 2016. Yearto-date (YTD) cheese output stands at 4.1 billion pounds, up 2.1 percent from this time a year ago.

California produced 210.4 million pounds of that cheese, down 2.8 percent from March but 4.4 percent above a year ago. Wisconsin, at 275.9 million pounds, was down 4.1 percent from March and 1.3 percent above a year ago. Idaho output was up 10.1 percent from a year ago. Minnesota was up 0.8 percent. Italian cheese totaled 448.3 million

 

but 2.2 percent above a year ago, with YTD output at 1.78 billion pounds, up 0.7 percent. Mozzarella, at 348.1 million pounds, was up 2.3 percent, with YTD at 1.4 billion pounds, down 0.7 percent. Total American type cheese hit 419.3 million pounds, up 0.8 percent from March and 5.3 percent above a year ago.

 

YTD totaled 1.6 billion pounds, up 3.7 percent.

Cheddar output amounted to 314.2 million pounds, highest monthly total since record keeping began, according to the Daily Dairy Report, up 4.8 percent from a year ago, with YTD at 1.2 billion pounds, up 6.2 percent from a year ago.

 

U.S. churns produced 164.1 million pounds of butter, down 11.96 million pounds or 6.8 percent from March and 7.1 million pounds or 4.1 percent below a year ago. YTD butter totaled 679 million pounds, down 0.9 percent. California butter totaled 48 million pounds, down 5.2 percent from March and 6.9 percent below a year ago. New York output was down 16.8 percent from March and 13.8 percent below a year ago.

Yogurt output amounted to 369.5 million pounds, down 0.9 percent from a year ago, with YTD at 1.5 billion pounds, down 1.5 percent.

 

Dry whey totaled 84.3 million pounds, up 3.0 percent, with YTD hitting 331.3 million pounds, up 2.6 percent.

Nonfat dry milk output hit 170.9 million pounds, up 7 percent from March but down slightly from a year ago, with YTD at 625.4 million pounds, up 0.3 percent. Skim milk powder totaled 50.2 million pounds, down 4.7 percent from March but 16.2 percent above a year ago. YTD output is at 198.2 million, up 13.1 percent.

Nonfat dry milk stocks stood at 266.3 million pounds, up 7.6 percent from March and 5.6 percent above a year ago. The report is viewed as mostly bearish, except for butter.