Friday 27th January 2012

NMPF makes it’s pitch

National Milk Producers Federation leadership visited World Dairy Expo on Thursday promoting their Foundation for the Future dairy plan. President and Chief Executive Officer Jerry Kozak says the idea has been well received and now they are out to clarify any questions producers might have. Kozak says it is not a supply management program, “It is a preventative program in which the producers have the ability to adjust to market conditions depending upon what they may be including high feed cost versus milk price so it isn’t just triggered by milk production or over supply.”

AUDIO: Kozak’s comments

Another part of the overall plan is to reform the federal milk marketing order system. NFPF Senior VP Marketing and Economic Research Jim Tillison says no one is happy with the current system, make allowances and yield factors have become a real problem so they are working to devise a system which will be more market-oriented. Tillison says they are still in the developmental stage of the program but hope to complete it soon. He says they do support continuation of the federal order system and are not looking to reduce the number of orders.

AUDIO: Tillison’s comments

Randy Mooney is Chairman of National Milk Producers Federation. The Missouri dairyman called for the creation of the task force which developed Foundation for the Future. He says the two things the task force stayed away from when formulating the plan was size of farm and regionalism. “When we get to Congress we’ve got to stick together.” As for processors, he asks, “Before you oppose it, make sure you understand it.”

AUDIO: Mooney’s comments

Jaime Castaneda is Senior Vice President, Strategic Initiatives & Trade Policy, he says the Foundation for the Future is WTO-compliant. He says a benefit of the plan is the creation of a consistent milk supply so we can be a consistent supplier for the export market. Castaneda contends we can compete in a growing global market.

AUDIO: Castaneda’s comments

Liz Doornink, WDE Dairy Woman of the Year

The 2010 World Dairy Expo Dairy Woman of the Year is Liz Doornink of Baldwin, Wisconsin. Over the years Jon-De Farms have grown from 80 to 1,500 dairy cows. The large dairy is within the shadow of the Minneapolis-St Paul area and they have made an effort to be good neighbors, to let the neighbors know what is going on and what is going to happen at the farm. She says those non-farm people give them the social license to be in business.

Liz also has developed the program for hiring, training and evaluating employees on the farm.

AUDIO: Doornink talks about Jon-De Farms

Horace Backus, WDE Industry Person of the Year

The World Dairy Expo Industry Person of the Year is Horace Backus with the Backus Pedigree Company of Mexico, New York. Talking to Horace you can’t help but be amazed by the knowledge and experiences this 82-year-old gentleman has. He cites the history of dairy cattle in this country and the “fads” his father warned him about. He says what amazes him the most is he never dreamed we would see the quality of dairy cow we see today.

ADUIO: Backus talks about his experiences

WDE Dairyman of the Year Don Bennink

The 2010 World Dairy Expo Dairy Man of the Year is Don Bennink of Bell, Florida. North Florida Holsteins consists of 4,300 milk cows, 4,000 replacements and a number of bulls and steers. He grew up in upstate New York working on farms and kept his first cattle in a garage when he was in junior high school. Upon graduation from Cornell he started dairying as a business. In the 1970’s he decided to get a law degree and was milking cows and practicing law at the same time which he says was one of the worst combinations you could have. Thirty years ago he was in Florida on a case and liked the area and made the move. He says dairying has changed dramatically in Florida as they have converted from dry lots and shades to barns with tunnel, evaporative cooled ventilation.

ADUIO: Bennink talks about his farm

What are the rules for dairy financing?

Credit availability is one of the biggest challenges facing dairy farmers these days. Producer equity pretty-well disappeared over the last two years and many have exhausted lines of credit as well. Sam Miller is with M & I Banks in Wisconsin and is former chair of the American Bankers Association Agriculture and Rural Bankers Committee, he says there is money to be lent but the regulations on banks are stricter and the requirements are greater. He says it is more important than ever for dairy producers to manage their risk. Lenders will want specific documentation showing how the producer is going to run the operation.

AUDIO: Miller talks about what’s needed

Alltech assists dairy customers all over the world

Alltech’s Roger Scaletti says dairy producers have been coming to their World Dairy Expo booth to learn more about their natural feed supplements and other products. Based in Lexington, Kentucky, Alltech is an international company with bioscience centers, offices and distributors in the U.S. and around the world. This year, Alltech celebrates its 30th year in business.

Dairy wins award for thermophylic digester

The Wisconsin Dairy Business Association has awarded Five Star Dairy farm in Elk Mound, Wisconsin its 2010 DBA Environmental Excellence Award. Five Star Dairy, LLC, with Dairyland Power and Stargest Power, LLC partnered to construct a thermophylic complete mix digester.

Five Star Dairy General Manager Lee Jensen says “it’s probably the best thing you can do with manure on your farm.”

The digester produces enough electricity to power 600 homes in the surounding area, displacing 6500 tons of coal a year that would have been burned to generate that electricity.

The farm is owned by Jensen, his wife, Dr. Jean Amundson, and, his cousin Jim Jensen.

AUDIO: Lee Jensen (7 min. MP3)

Larger than expected quarterly stocks shift focus for corn

USDA’s quarterly stocks estimates showed more corn than expected and as Alan Brugler of Brugler Marketing tells Brownfield, that changes the picture slightly for the market.

According to Brugler, “For the moment at least, it makes thing look a little looser. It looks like we’ve got a little more old crop to play with and because that old crop balance sheet is bigger, that means a bigger carry-in for next year. It takes a little bit of the steam out of the argument that you have to have $6 corn.”

Brugler says with this report out of the way, the market now has an eye towards the October 8 production numbers, which could show a reduced yield.

Alan Brugler talks about the numbers (4 Minutes, 30 Seconds, MP3)

Soybeans close higher, supported by demand

Soybeans were higher on technical buying and a lack of follow through selling, along with corn and wheat coming up from the early lows. Also, weekly export sales were larger than expected with the vast majority of the total to China. Quarterly soybean stocks came out as expected at 151 million bushels, which was up on the year but not all that surprising. Soybean meal was down and bean oil was up on product spread trade and comparative fundamentals. The Soybean Processors Association of India estimates that nation’s soybean production at 10.13 million tons, up 4.2% on the year thanks to improved yields.

Corn was lower on fund and technical selling. While corn was down on the day, it did close well above the early lows thanks to continued concerns over yield and solid end user demand. Quarterly stocks were about 300 million bushels larger than expected at 1.7 billion bushels. Allendale’s David Kohli does point out that last quarter stocks were roughly 300 million bushels smaller than expected. Ethanol futures were lower.

The wheat complex was lower on technical and fund selling. USDA’s quarterly stocks and production numbers came out above year ago levels. Still, like corn, wheat did manage to close quite a bit above the session lows. In any event, there’s been no fresh demand news and there’s more rain in the forecast for Ukraine and Russia over the next couple of days. According to Dow Jones Newswires, 56% of Ukraine’s winter grain crop has been planted, but Russia remains behind the average pace. The Buenos Aires Grain Exchange pegs Argentina’s wheat crop at 11.3 million tons.

USDA to re-survey some Northern Plains grain producers

USDA has announced it will re-survey barley, oat, durum wheat and spring wheat growers in parts of the Northern Plains due to an incomplete harvest.

Producers in Idaho, Montana, North Dakota, Oregon and Washington reported a significant amount of un-harvested acres when surveyed in early September.

If there are any changes, they’ll be in the November 9 USDA update.

Around 90% of the spring wheat crop is harvested, compared to the five year average of 98%.