Category: Dairy Industry

  • US Dairy Exports Decline Due to International Trade Dispute

    Bennett Water Systems
    With a rising middle class in China, US dairy producers saw potential for a great marketing opportunities that has recently been shattered by the current international trade dispute.  With trade issues in Mexico as well, another big market for the the US dairy industry, there are big concerns as to how this will impact the industry in a time of large milk inventories.  Watch this brief interview with Annie Acmoody from Western United Dairymen as she expounds upon the matter.  Read more about it in California Dairy Magazine.
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  • How California Dairy Producers are Paid Under New FMMO

    Bennett Water Systems

    With the recent conversion to a Federal Milk Marketing Order in California, dairy producers may notice some changes in the way they are paid?  Watch this brief interview with Annie Acmoody from Western United Dairymen as she explains some of the changes.  Read more about it in California Dairy Magazine.

  • Dairy Market Trends with Annie Acmoody

    Bennett Water Systems

    So how is the current global dairy market impacting California milk prices?  What specific milk commodities are doing well, and what isn’t?  Watch this brief interview with Annie Acmoody from Western United Dairymen to find out.  Read more about it in California Dairy Magazine.

  • Protect Calf Hutches with the California Cattle Council

    The passage of Proposition 12 last year really showed how misinformed the public is and Anti-Animal Ag activists continue to fuel the fire, and their next target in destroying the dairy and beef cattle industry is to outlaw calf hutches.  This is just one of the many issues California dairy and beef cattle producers are dealing with at this time.  That is why they are uniting to launch a referendum to establish the California Cattle Council to protect the industry from those who seek to destroy it.  Ballots have been mailed out, and producers are encouraged to support the referendum.  Watch this brief interview with Western United Dairymen for more details.

  • Enrollment Expected to Begin this Summer

    The U.S. Department of Agriculture’s Farm Service Agency (FSA) announced last week that the January 2019 income over feed cost margin was $7.99 per hundredweight, triggering the first payment for eligible dairy producers who purchase the appropriate level of coverage under the new but yet-to-be established Dairy Margin Coverage (DMC) program.

    DMC, which replaces the Margin Protection Program for Dairy, is a voluntary risk management program for dairy producers that was authorized by the 2018 Farm Bill. DMC offers protection to dairy producers when the difference between the all milk price and the average feed cost (the margin) falls below a certain dollar amount selected by the producer.

    Agriculture Secretary Sonny Perdue announced last week that sign up for DMC will open by mid-June of this year.  At the time of sign up, producers who elect a DMC coverage level between $8.00 and $9.50 would be eligible for a payment for January 2019.

    For example, a dairy operation with an established production history of 3 million pounds (30,000 cwt.) that elects the $9.50 coverage level for 50 percent of its production could potentially be eligible to receive $1,887.50 for January.

    Sample calculation:

    $9.50 – $7.99 margin = $1.51 difference

    $1.51 times 50 percent of production times 2,500 cwt. (30,000 cwt./12) = $1,887.50

    The calculated annual premium for coverage at $9.50 on 50 percent of a 3-million-pound production history for this example would be $2,250.

    Sample calculation:

    3,000,000 times 50 percent = 1,500,000/100 = 15,000 cwt. times 0.150 premium fee = $2,250

    Operations making a one-time election to participate in DMC through 2023 are eligible to receive a 25 percent discount on their premium for the existing margin coverage rates.

    “Congress created the Dairy Margin Coverage program to provide an important financial safety net for dairy producers, helping them weather shifting milk and feed prices,” FSA Administrator Richard Fordyce said. “This program builds on the previous Margin Protection Program for Dairy, carrying forward many of the program upgrades made last year based on feedback from producers. We’re working diligently to implement the DMC program and other FSA programs authorized by the 2018 Farm Bill.”

    Additional details about DMC and other FSA farm bill program changes can be found at farmers.gov/farmbill.

  • California Dairy Districts Seek Ambassadors to Serve in 2019

    Each year, a special group of young women are selected to
    represent the state’s more than 1,300 dairy farm families who contribute to making California
    number one for milk production in the U.S. These Dairy Princess ambassadors and alternates are
    selected during events at Districts throughout the state, where they showcase speaking skills,
    knowledge of dairy and plans to represent the industry during the one-year term. The 2019
    contests kick off April and will run through June.

    California Dairy Princesses serve as industry advocates in their home district and throughout
    California, supporting the reputation of milk and dairy products through appearances at industry
    and agricultural functions, with school groups and in media interviews. Dairy Princesses and
    alternates participate in a mandatory orientation/training where they receive professional
    development coaching.

    The California Dairy Princess Program has been in effect since 1958. Currently eight districts
    hold local contests, covering 48 counties in the state of California. The California Dairy Princess
    contest is supported by California dairy producers through the California Milk Advisory Board
    (CMAB). Information and application forms can be accessed here. Additional questions can be
    directed to the CMAB office at cmacedo@cmab.net or 209.690.8240.

    2019 Search for California Dairy Princesses…Page 2 of 2

    Dairy Princess Program – 2019 Application Deadlines and Contest Dates
    District Application Deadline Contest Date Location
    District 1 Thursday, March 21 Friday, May 10 Fortuna
    District 3 Tuesday, February 26 Saturday, April 6 Petaluma
    District 4 No contest will be held in 2019. Coronation date TBD.
    District 5 Thursday, April 19 Wednesday, June 5 Manteca
    District 6 Friday, May 10 Thursday, June 13 Turlock
    District 7 Friday, April 19 Friday, June 28 Hanford
    District 8 Thursday, March 7 Thursday, May 2 Fresno
    District 9 Thursday, April 18 Friday, June 14 Tulare

     

    California Dairy Princesses

    California is the nation’s leading milk producer. It also produces more butter, ice cream and
    nonfat dry milk than any other state. The state is the second-largest producer of cheese and
    yogurt. Dairy products made with Real California Milk can be identified by the Real California
    Milk seal, which certifies that the products are made with milk produced on California dairy
    farms by California dairy farm families.

    About Real California Milk/the California Milk Advisory Board
    The California Milk Advisory Board (CMAB), an instrumentality of the California Department
    of Food and Agriculture, is funded by the state’s more than 1,300 dairy families and is one of the
    largest agricultural marketing boards in the United States. With a mission to increase demand for
    products made with Real California Milk, the CMAB is celebrating 50 years in 2019 promoting
    California’s sustainable dairy products in the state, across the U.S. and around the world through
    advertising, public relations, research, and retail and foodservice promotional programs. For
    more information and to connect with the CMAB, visit RealCaliforniaMilk.com, Facebook,
    YouTube, Twitter, Instagram and Pinterest.

  • How the New Farm Bill will Assist California Dairy Producers

    While there has been a lot of talk about the new Farm Bill that finally passed, California dairy producers may be wondering how and if it will really impact them.  Aubrey Bettencourt, Executive Director of the USDA Farm Service Agency in California shared that it will, through the new Dairy Margin Coverage Program replacing the less impactful Margin Protection Program.  Watch this brief interview as Bettencourt explains and don’t miss the Farm Bill Implementation Listening Session of February 26th.

  • Cows and the Environment: A California Perspective

    There has been a recent surge of efforts to drastically change dietary choices in the name of environmental protection. These efforts often share a flawed approach, citing global greenhouse gas (GHG) emission statistics, to create alarm and encourage decreased consumption of meat, dairy, and other livestock products. They falsely imply that raising livestock, no matter where or how it’s done, is bad for the planet. This simply isn’t true. As with any industry, from agriculture to transportation to manufacturing, efficiency plays an important role in delivering products we want and need, while reducing the environment impacts. A closer look at the global dairy sector shows increases in efficiency are occurring around the world, though the pace of improvements differs from region to region. California dairy farms are not only leading the way in reducing environmental impacts, but are also taking climate-smart dairy farming to a whole new level—making cows a part of the broader solution to society’s environmental challenges, from recycling nutrients to creating renewable energy.

    planet smart dairy

     

    A Global Perspective

    Over the past 65 years, the United States has made significant gains in milk production efficiency, resulting in a two-thirds reduction of dairy’s overall carbon footprint. While the nation’s milk production has doubled, the number of dairy cows has decreased from 25.6 million cows in 1950 to only 9.4 million today. Attaining this same level of efficiency across all dairy regions would have a far greater impact on climate than dictating drastic changes in dietary consumption.

    Seventy to 80 percent of estimated global livestock greenhouse gas (GHG) emissions are attributed to developing countries, where production is far less efficient. However, improvements are being made. The United Nations Food and Agriculture Organization (FAO) recently published an analysis of GHG emissions from the global dairy sector over a ten-year time period (2005 to 2015). The FAO reportshows all regions have reduced GHG emissions per unit of milk, resulting in an overall emission intensity reduction of 11 percent. The largest dairy emission intensity reductions during this time period occurred in low-and-middle income nations, particularly in Africa, Asia, and Central and South America. These are often countries where the livestock sector plays a significant role in the total gross domestic product. In these regions, increases in dairy productivity are helping improve food security and climate change mitigation.

    In contrast, thanks to decades of advancement, the U.S. dairy sector plays a limited role in the nation’s total GHG emissions. According to the most-recent report from the U.S. Environmental Protection Agency, agriculture (animal and plant-based foods) contributes 9 percent. Animal agriculture (including dairy, beef, pork and poultry) contributes 3.9 percent. In comparison, the transportation industry and the electricity generation sector are each responsible for 28 percent of all U.S. GHG emissions—a total of 56 percent. These statistics align with other findings about the consumption of animal products and its impact on climate change. If all 320 million Americans were to follow a vegan diet, the national GHG emissions would be reduced by an estimated 2.6 percent,reducing global GHG emissions by less than a half of one percent (0.36 %).

    In California—the nation’s leading dairy state—the animal agriculture sector produces about 5 percent of the total GHG emissions, while the transportation sector produces 41 percent, according to the California Air Resources Board. Although dairy’s contribution to the total GHG emissions is relatively smaller than other industries, the state’s dairy farmers remain dedicated to continuous improvement. The state is actively working to reduce emissions of methane—a short-lived GHG—from the dairy sector. California is the only region in the world that has set the ambitious goal of reducing dairy manure methane emissions by 40 percent by 2030.

    Dairy as Part of the Solution

    With incentive funding from the state and guidance from ongoing research, dairy farmers are making great progress to achieve this goal. The collective efforts will also help reduce emissions from other sectors, as a growing number of dairy farms begin using dairy digesters. Digesters capture methane, which can be used to create various forms of renewable energy. While the state’s earlier digesters have created electricity, more than 58 dairy farms are now in various stages of developing projects that will create carbon-negative transportation fuel to replace the use of diesel in heavy-duty trucks. These barn-to-biogas projects are not only helping shrink dairy’s carbon footprint to unprecedented levels, they are also helping the state transition to clean energy.

    Another way dairy cattle contribute to the state’s sustainable food system is through use of agricultural byproducts as animal feed. Dairy cows and other ruminants can digest foods that might otherwise go to waste and, in-turn, provide nutritious foods people enjoy. About 41 percent of feed ingredients used on California dairies are agricultural byproducts, such as almond hulls, tomato pulp, cotton seed, citrus pulp, and brewer’s grain, which could otherwise be wasted. In this way, dairy farms help eliminate food waste—a significant global challenge. This works particularly well in California, where a diverse array of crops is grown throughout the seasons, and dairy farmers continually work with cow nutrition experts to make efficient use of the byproducts.

    Dairy farmers in California have a long history of working collaboratively with state officials and researchers to improve the protection of air and water resources, which has placed them in a strong position to lead the world in the development of climate-smart dairy. The state is implementing cutting-edge strategies and technologies, which will further improve the environment while providing nutritious and affordable foods to a growing population. While there is more that can be done here and across the globe to mitigate the effects of climate change from all industries, California’s dairy farm families are already dedicated to doing their part.

     

    By: Dairy Cares 
  • Unnecessary Trade War Risks Irreparably Damaging U.S. Dairy

    By Laurie Fischer, CEO, American Dairy Coalition

    Laurie Fischer

    Mexico imports nearly a quarter of the U.S. dairy industry’s exports annually. It’s a critical $1.4 billion marketplace. And it’s one that President Trump continues to risk damaging permanently — and unnecessarily.

    Locked in a trade war since May, Mexican leaders are setting aside American business connections that took decades to build as our neighbors to the south find new sources of cheese, butter and other products.

    This should have changed in November when Trump declared success with his newly rechristened U.S.-Canada-Mexico Trade Agreement replacing NAFTA. In retrospect, it was a disingenuous statement: The administration has not lifted steel and aluminum tariffs on Mexican and Canadian products, and — in response — those countries are refusing to sign the pact or lift retaliatory tariffs, impacting dairy products and other items.

    “If you’re using the tariffs as leverage, if you get an agreement with countries that have come to the table because of that, if you don’t relieve them of tariffs, you’re going to marginalize that as an effective leverage point for other negotiations,” U.S. Sen. Ron Johnson, a Wisconsin Republican, told reporters at a recent press conference.

    “The longer this trade war goes on … the greater and more permanent the damage will be,” added Johnson, whose home state saw the dairy-fueled economy lose $139 million through October of last year.

    A Pyrrhic victory is defined as one that inflicts such a devastating toll on the victor that it is tantamount to defeat. That’s an apt description of the precipice President Trump stands on today.

    His surprise electoral path to victory in 2016 ran straight through the American “Farm Belt,” fueled by Midwest states where agriculture still figures prominently in the day-to-day lives of their citizens. Those same farmers — whether they deal in dairy, livestock, dairy or crops — have generally remained supportive of the president’s efforts to secure more favorable trade deals from nations historically benefiting from lopsided agreements.

    However, having won concessions from Mexico and Canada, Trump now risks squandering those hard-fought gains — wiping out thousands of agriculture-related jobs in the process, ignoring one of his core constituencies and, in the most ironic twist of all, irreparably undermining his 2020 re-election ambitions.

    A Pyrrhic victory, indeed.

    “The president’s trade policies have sent U.S. agricultural exports plunging, exacerbating already difficult economic conditions facing farmers,” Politico’s Ryan McCrimmon recently reported. “Average farm income has fallen to near 15-year lows under Trump, and in some areas of the country, farm bankruptcies are soaring.”

    President Trump sells himself as a champion for agriculture. However, a good general knows when the day is won and when to remove his troops from harm’s way. If Trump can’t learn the same lesson, he may find few farmers willing — or able — to stand behind him.

    About The American Dairy Coalition:American Dairy Coalition Logo

    The American Dairy Coalition (ADC) is a farmer-led national lobbying organization of modern dairy farmers. We focus on federal dairy policy.

    www.americandairycoalitioninc.com

  • Global Dairy Market Update from California Milk Advisory Board

    While California dairy producers have been experiencing continued lower prices for their product, there are some positive global trends dairy producers can look forward to as reported by John Talbot, CEO of the California Milk Advisory Board in a recent interview with California Ag Network. Watch this brief interview and read more about it in California Dairy Magazine. Don’t currently receive the magazine? Subscribe for FREE at: https://malcolmmedia.com/california-dairy-magazine-subscriptions/