28 A
August milk production up a surprising 2.7 percent
THE LAND, SEPTEMBER 27, 2013
This column was written for the marketing week ending Sept. 20. August milk production in the 23 major dairy states totaled a surprisingly strong 15.7 billion pounds, according to the U.S. Department of Agriculture’s preliminary data, up 2.7 percent from August 2012. That’s the fifth month in a row that output exceeded that of year ago, and the biggest increase this year. The 50-state total, at 16.835 billion
pounds, was up 2.6 percent from a year ago. Revisions added 29 million pounds to the original July estimate, now put at 15.7 billion pounds, up 1.3 percent from July 2012. Checking the top players, California was up 2.7 percent, the first month since June 2012 that production exceeded that of a year ago. Wisconsin was up 1.7 percent. Idaho was down 0.7 percent, New York was up 4.2 percent, Pennsylvania up 3.5 percent and Minnesota was up 1.9 percent.
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Only two states showed the hearing if there will be declines: New Mexico, down any formula change. 1.2 percent, followed by Idaho. From a practical standpoint, The biggest increase was in Vandenheuvel said, the CDFA Kansas, up 8.8 percent, folhas tried to avoid mid-month lowed by Iowa at 8 percent; changes and implement forFlorida, up 6.9 percent; and mula changes on the start of a Arizona, up 5.5 percent. Michimonth. If that practice contingan was up 3.9 percent and ues, an announcement is Texas was up 3.3 percent. The likely around Oct. 21, impactMIELKE MARKET next report will include milk ing milk sales after Nov. 1. WEEKLY cow numbers and output per According to the CDFA cow, data that was suspended By Lee Mielke price announcement due to sequestration. schedule, September One interesting perClass 4b prices will be spective on the report announced Oct. 1; Octocomes from High Ground Dairy’s Eric ber 4b prices are scheduled to be Meyer who points out that the 0.2 per- announced on Nov. 1. cent growth in production between July Regarding the hearing, Vandenheuvel and August this year is “surprising ... wrote in his Sept. 13 newsletter that and a little suspicious because it has never happened in the past. We scoured “while producer groups and cooperathe historical milk production data and tives testified in support of the proposal (despite the significant concession it could not find a year when U.S. milk represented), processors and their repproduction grew in August over July.” resentatives testified one-after-another FC Stone risk management consultant in strong opposition to the proposal, Ron O’Brien pointed out in his Sept. 20 even going so far as to claim that there eDairy Insider Opening Bell, “Milk is cur- was never an agreement or that ‘they rently tight on both the East and West heard that producers had walked away Coasts, so even though milk production from an agreement.’ was up substantially in August compared “Fortunately for producers, and with the previous year, demand is also unfortunately for the Dairy Institute,” likely stronger than a year ago.” Vandenheuvel wrote, “we had a paper ■ trail (the July 8 letter) and eyewitness The USDA’s Livestock Slaughter accounts from California legislators. report estimated 266,000 culled dairy Seven members of the California cows were slaughtered under federal Assembly and Senate took the time to inspection in August, up 15,300 from come and testify at the hearing.” July, but 9,300 less than August 2012. ■ The January-to-August 2013 total was Shifting to another hearing in another estimated at 2.084 million head, 46,100 big dairy state (this one on raw milk more than the same period in 2012. sales), took place in La Crosse, Wis. ■ A press release from the National Milk The California Department of Food & Producers Federation stated “it is disAgriculture held its hearing, Sept. 12, heartening that lawmakers in America’s on a proposal to adjust the Class 4b Dairyland are even considering legislation minimum pay price and whey factor. that would damage public health by liberalizing the sale of raw milk to consumers.” As I reported in late-July, the proposal provides a temporary 46 cent per ■ hundredweight increase in the price of In politics, the House passed a separate Class 4b milk and an increase in the bill covering the USDA’s nutrition procap of the whey value from 75 cents to grams, designed to cut an estimated $39 $1/cwt. of milk. billion from Supplemental Nutrition AssisThe petition for the hearing was filed tance Programs over the next decade. by Western United Dairymen, Califor- Dairy Business Update reports that the nia Dairies Inc., Milk Producer’s Coun- vote on H.R. 3102, the Nutrition Reform cil and California Dairy Campaign. and Work Opportunity Act of 2013, was 217-210, with all Democrats and 15 The MPC’s Rob Vandenheuvel told DairyBusiness Update that CDFA Sec- Republicans voting against the bill. retary Karen Ross has 62 days to rule The approval provides the second on the proposal. However, she also has piece of a House farm bill, but how it is to announce changes 10 days before incorporated into final farm bill negotiimplementing them, so the effective deadline is 52 days from the close of See MIELKE, pg. 29A
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