Consumers are looking for longer dairy expiration dates

pounds or 8.3 percent from November, and 17.2 million or 8.7 percent more than December 2021.

Stocks have been below year ago levels for 16 consecutive months; but high prices likely slowed domestic sales and exports, resulting in building inventory.

American-type cheese stocks grew to 825.2 million pounds, up 9.1 million pounds or 1.1 percent from November; but were 17.7 million or 2.1 percent below a year ago.

The “other” cheese category inched up to 595.6 million pounds, up 3.1 million or 0.5 percent from November, and were up 18.8 million or 3.3 percent above a year ago.

The total cheese inventory came in at 1.445 billion pounds, up 14.1 million pounds or 1 percent from November and 3.4 million or 0.2 percent above a year ago.

The International Dairy Foods Association’s annual Dairy Forum took place this week in Orlando. StoneX’s Jan. 25 “Early Morning Update” listed highlights — including reports that California was flush with milk and rumors that dumping had occurred. December data doesn’t appear to confirm that.

U.S. retail demand was reported to be weak or weakening, especially for lower-end products. However, there were reports retail cream demand is still strong.

Another topic was increased cheese capacity coming on-line in Texas. Reports are that there is plenty of milk available to keep them operating.

StoneX attendees reported that Extended Shelf Life milk is becoming more common with consumers expecting expiration dates that are two months or longer.

On perhaps a more positive note: the cost of con-

March, July prices up

NYSTROM, from pg. 14 part of the recent trading range while new crop soybeans are back where they were during last fall’s harvest.

For the week, March and July soybeans were each up 3 cents at $15.09.5 and $14.96 respectively. The November soybeans were down three-quarter cents at $13.51.25 per bushel. March soymeal was up $9.80 at $473.50 while March soyoil fell 1.35 at 60.62.

Weekly price changes in March wheat for the week ended Jan. 27: Chicago wheat was 8.5 cents higher at $7.50, Kansas City soared 21.25 cents at $8.69.25, and the Minneapolis was 8.75 cents higher at $9.21.5 per bushel. v structing a new dairy farm may not be as high as expected. “We have been anticipating a cost of $5,000 to $7,000 per cow,” says StoneX, “but the cost is likely closer to $4,500.”

Ron O’Brien, president of Nui Markets North America, shared his perspective in the Jan. 30 “Dairy Radio Now” broadcast. “It’s tough out there for dairy producers and dairy sales desks globally,” said O’Brien, citing higher interest rates, consumer demand destruction, warm winter weather leading to lower natural gas prices, overbearing milk production in Europe, maxed out credit capacity in China, and good feed quality.

He said Global Dairy Trade whole milk powder has been flat the past few sessions, which has led to some price appreciation in South America — specifically Brazil — but demand has yet to come back enough in China or Southeast Asia.

The unifying topic, according to O’Brien, was environmental, social, and governance initiatives. “Sustainability initiatives and the pressures that manufacturers are facing both from consumers and investors was clearly defined,” he said, “whether climate change is due to man’s increasing carbon footprint or earth’s natural historical patterns. Solving this issue or even just the perceptions of how dairy is involved in climate change is Priority 1. Solutions to these problems must be looked at as an investment and not a cost,” he said, “regardless of most farmers seeing this as another thing they are asked to do.”

Nestle’s Patty Stroup told attendees, “We need to give the consumer permission to love dairy. We need to do more work to teach our consumer — specifically in the western world — the benefits of animal fats and milk proteins as medicine.”

Some testified to that at the forum, stating, “The rest of the world sees dairy as having a health halo.”

Lastly, the case was made for work to be done in Washington, DC with respect to the Farm Bill, trade policies, and comprehensive immigration reform. O’Brien said, “It was gratifying to see that risk management is no longer just trading CME futures, but includes not losing your edge or your sales force, plant staff, supply chain and — most importantly — not losing demand for more milk.”

After dropping 16.5 cents the previous week, cheddar block cheese jumped 15.5 cents Jan. 23 and hit $1.99 per pound. On. Jan. 25, cheese then fell to $1.9175 (the lowest price since Sept. 8) and closed Jan. 27 at $1.96. This is up 12.5 cents on the week and 17 cents above a year ago.

The barrels were up 9 cents Jan. 23, hitting $1.67, then fell to $1.5725 two days later, and closed Jan. 27 at 1.5525. This is the lowest price since Nov. 29, 2021, 2.75 cents lower on the week, 19 cents below a year ago, and a whopping 40.75 cents below the blocks. There were five sales of block on the week and 34 of barrel.

StoneX says, “Supply is plentiful enough for processors to get their hands on whatever milk that they need; but demand has seen better days with both domestic and international interest drying up.”

Midwest cheesemakers continue to report available milk supplies, according to Dairy Market News, though heavily discounted loads were not as numerous. Barrel producers warned that there are going to be extra loads available in the near term. Buyers are not as incentivized to add stocks.

Cheese demand is steady in the west from retail purchasers. Food service is strengthening and some mozzarella producers report increased sales, thanks to pizza purchasing during football playoffs. Exports of cheese are strong, with purchasers in Asia buying loads to ship in second quarter, according to Dairy Market News.

Butter saw its Jan. 27 finish at $2.2725 per pound. This is down a nickel on the week and 26.75 cents below a year ago when it plunged 39.5 cents. Sales totaled just three loads.

Central butter plants report cream remains somewhat steady with previous weeks. End users are “looking for deals,” but location is clearly playing a part as southern plants, or those closer to Western sources, say cream is abundant.

Plentiful cream remains readily available in the West. Cream demand is steady to higher. Some report purchasing enough cream to max out production and build more inventory at current prices. Butter output continues strong but second, third,