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DAIRY ST R “All dairy, all the time”™
Volume 22, No. 11
PPD values plunge to historic low Several factors disrupt pay price component By Jennifer Coyne jenn@dairystar.com
At the turn of the calendar, 2020 was expected to be a welcoming sight for the dairy industry with milk prices rising out of a sluggish veyear period. Then, the global pandemic disrupted the markets in unforeseeable ways as milk prices swung from record lows to extraordinary highs. Coupled with those highs has been something never seen before: historic negative values for producer price differential. “ We ’ v e b e e n o n a tremendous price roller coaster,” University of Wisconsin’s Dr. Mark Stephenson said. PPD is a calculation used to determine the milk price in Federal Milk Marketing Orders that pay on milk components. The value is typically positive or a relatively small negative number, ranging from -$0.30 to $1 per hundredweight. In June, the Upper Midwest Marketing Area reported a PPD of -$3.81 per cwt. “This is the largest negative PPD we’ve seen so far,” Stephenson said. “It’s a very large number.” Across other federal orders, the June PPD ranged from -$7.91 per cwt in California to -$5.38 per cwt in the Northeast. While low, FMMO 30 did record the smallest negative PPD value. The use of PPD to determine a farmer’s pay price has been commonplace for decades. A FMMO collects revenues from processing plants based on classes and then pays dairy farmers based on paid components from Class III. “Federal orders pay out so many dollars per pound of protein and per pound of butterfat, and there’s usually Turn to PPD | Page 5
July 25, 2020
A vice presidential visit to Schallers’ Wisconsin farm Pence discusses trade at Morning Star Dairy By Danielle Nauman danielle.n@dairystar.com
ONALASKA, Wis. – Red, white and blue ags waved July 17 as Vice President Mike Pence made his way to John and Barb Schaller’s Morning Star Dairy outside Onalaska to talk to local farmers about the United States-Mexico-Canada trade deal along with a variety of issues concerning agriculture. Upon his arrival, Pence toured Morning Star Dairy with the Schallers. Pence learned about their 500-cow dairy operation, and saw the milking parlor, a freestall barn, the heifer facility and the calfraising area. Pence sat down for a round-table discussion with the Schallers, their son, Cameron, and several other area farmers
PHOTO SUBMITTED
Vice President Mike Pence stands with Barb and John Schaller at their 450-cow Morning Star Dairy near Onalaska, Wisconsin. Pence visited for a roundtable discussion about the USMCA trade agreement that recently went into effect. including Todd Servais, Tony said Pence as he began address- came through and kept food on Kurtz, Karla Dummer, Kevin ing those at the roundtable. “At the table.” Hoyer and Patrick McHugh. a challenging time in the life of Turn to PENCE | Page 7 “Let me say thank you,” our nation, the American farmer
Blaze burns portion of Burnett Dairy Cooperative directs milk to other processors for time being By Krista Kuzma
krista.k@dairystar.com
GRANTSBURG, Wis. – With the rollercoaster of events and emotions that dairy farmers have already endured so far in 2020, patrons of the Burnett Dairy cooperative suffered another low after a re started at their cooperative July 20. Between 10-10:30 p.m., an employee noticed smoke at Burnett Dairy’s plant in Grantsburg, said Stephanie Miller, marketing manager for the cooperative. After the employee called 911, all employees on site evacuated the building. Several area re departments were called to the scene to help extinguish the blaze. Miller said one shift of employees was making cheese at the plant, which processes soft Italian cheesPHOTO SUBMITTED es, including mozzarella and provolone. Although Fire departments work to control the re at the Burne� Dairy plant July 20 Burnett Dairy has another plant in Wilson, Miller said in Grantsburg, Wisconsin. Turn to BURNETT | Page 6