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Dairy producers, agribiz show optimism in milk market
Dairy producers met in Grapevine, Texas this week for the joint annual meetings of the National Milk Producers’ Federation (NMPF), the National Dairy Board, and United Dairy Industry Assoc. NMPF representative Chris Galen reported that the highlight was the greater sense of optimism among attendees that 2010 will be a better year financially.

Discussion centered on what NMPF has done, both for the short-term and the long-term, to help improve dairy farm economics. Short-term, the spotlight was on CWT activities and what might be done differently in 2010, Galen reported. Discussion also centered on what NMPF asked of Congress regarding reactivating the Dairy Export Incentive program, raising price-supports, and purchasing cheese to stimulate farm prices in the short-term.

A big focus of the meeting is what comes next, Galen said. Farmers recognize that the status quo in terms of dairy economics, can’t stand, but must be changed, according to Galen, and the Foundation for the Future program was outlined, which includes a multi-faceted approach to changing the Federal Order system, changing CWT, and changing dairy safety nets “with an eye toward making certain that this terrible price crisis that we’ve had can be averted in the future.”

The meeting wound up with an address by Dave Brandon, CEO of Domino’s Pizza, a partner with the dairy industry in selling more cheese on pizzas, and Jim Miller, an undersecretary at USDA, outlined the steps the Department has taken to help dairy farmers.
Returns expected in 2010
Echoing Galen’s report, Dairy Profit Weekly Editor Dave Natzke reported Friday that dairy farmers at the meeting heard better news regarding the 2010 price outlook, with most forecasts predicting a return to positive margins in 2010. But he quickly added that farmers seeking a major overhaul in federal dairy policy in the short-term probably won’t be as pleased.

“With health care reform and climate change dominating time in Congress, any major change probably won’t come until the 2012 farm bill,” Natzke reported. “Another hot-button issue, immigration reform, will have to be tackled in early 2010, or it will also be pushed aside until after fall elections, because the topic is just too controversial for lawmakers seeking reelection.”

Addressing dairy farmers Thursday morning, UDSA Undersecretary Jim Miller said USDA is finalizing a plan to distribute the $290 million in emergency aid approved by Congress, and once approved by the Office of Management and Budget, farmers should start receiving payments in mid-to-late December.

The meeting coincided with Veteran’s Day and a highlight was the delivery of 800 slices of Domino’s pizza to patients in the Dallas VA hospital. Sponsored by dairy farmers and the non-profit “Pizza 4 Patriots,” it was part of a five-city project, delivering pizza and milk to hospitalized veterans. Farmers participating in the project were reminded of the sacrifices our veterans make to preserve the freedoms we all enjoy, Natzke concluded.

Back on the farm, California Dairy Producer Brad Scott says the beef checkoff has been “very beneficial” to dairy producers because it’s “marketing our products.” Speaking in Wednesday’s DairyLine, Scott said dairymen need to remember they are not only dairy producers but are also meat producers because their animals go to market and end up in the food chain.

The beef checkoff provides education, research and promotion and dairy producers do have opportunity to have their voices heard as to how their dollars are spent in promoting beef consumption, which in turn contributes to their bottom line.

Scott believes that he sees a return on his investment, pointing out that the dollar he spends on the checkoff does things that he himself can’t do himself in getting the message out to consumers about the quality product that farmers produce.

Scott also gave high marks to the staff of the beef checkoff, and he is glad that dairy farmers have seats on the beef board to insure that the money dairy farmers invest is used in areas they deem important.

When asked what suggests he would make to the Beef Board, Scott answered, “Keep doing what you’re doing. They’re continually educating the public that what we produce is a wholesome, quality, nutritious product, and that farmers take good care of their animals so that, when they do reach the market, they are of a good quality for the consumer.”

Nutrient-rich is new buzz word
Dairy Management Incorporated Dr. Gregg Miller, executive vice president of research, regulatory, and scientific affairs with Dairy Management Incorporated, discussed a buzz word among health professionals, “nutrient-rich,” in Monday’s “DMI Update.” He said the dairy checkoff is communicating with consumers and health professionals about the nutrient value of dairy foods, with the goal of changing the paradigm in the nutrition community from nutrient avoidance.

Previously it was said, “Don’t eat fat, don’t eat salt, and don’t eat sugar,” Miller explained, and now the focus is one that balances choices over time, choosing nutrient-rich foods to get a healthy diet.

“When people try to avoid saturated fat, they cut whole food groups out of their diets like dairy foods,” Miller argued, “And that’s really wrong for the nutritional quality of their diet.”

This message is being picked up globally now, according to Miller, the Global Dairy Platform, the International Dairy Foods Assoc., European Dairy Assoc., are all carrying nutrient-rich foods messaging.

It’s really not a new message as we in the dairy industry have known this all along, and Miller stated that the dairy industry has emphasized the calcium content of dairy products in the past but “Now it’s time to re-enlighten the image of dairy foods with consumers, and talk about the whole nutrient package that dairy delivers.”
11/18/2009