Feds shine spotlight on ag competition issues

In Ankeny, Iowa Friday, the Department of Justice (DOJ) and U.S. Department of Agriculture (USDA) held the first-ever joint public workshop on competition and regulatory issues in the agriculture industry. 

The workshop, led by U.S. Agriculture Secretary Tom Vilsack and U.S. Attorney General Eric Holder, featured panel discussions on a variety of topics, including competitive dynamics in the seed industry, trends in contracting, transparency and buyer power, and concluded with public testimony. 

“Today’s workshop provided the Department with an important opportunity to hear from a variety of perspectives and individuals about competition in the agriculture sector,” said Attorney General Eric Holder.  “We appreciate the importance of this industry to our economy and are committed to enforcing the antitrust laws effectively to ensure fair and open competition that protects both consumers and farmers.”

“In my travels across the country, I hear a consistent theme: producers are worried whether there is a future for them or their children in agriculture, and a viable market is an important factor in what that future looks like,” said Vilsack. “These issues are difficult and complex, which is why this workshop today is so important and long overdue.”

Friday’s meeting was the first in a series of workshops that will be held over the next several months. 

The following audio clips feature some of the opening comments made at the workshop.

AUDIO: Secretary of Agriculture Tom Vilsack (2 min MP3)

AUDIO: Attorney General Eric Holder (3 min MP3)

AUDIO: Christine Varney, head of DOJ Antitrust Division (3 min MP3)

AUDIO: Iowa Senator Chuck Grassley (3 min MP3)

Wisconsin Raw Milk Working Group to meet

The Wisconsin Department of Agriculture’s Raw Milk Working Group will hold their first meeting on Monday, March 15th in Madison. Ag Secretary Rod Nilsestuen named the members of the group back in January and charged them with looking at legal and regulatory perspectives pertaining to the sale of unpasteurized milk directly to consumers, and consider what conditions would be required to protect public health.

University of Wisconsin ag economist Richard Barrows chairs the 21-member group made up of large, mid-size and small dairy farmers, both organic and conventional; large and small cheese makers and dairy processors; dairy veterinarians; consumers; and food safety and public health professionals.

On Monday the members will go over the goals of the group, establish the ground rules, begin to identify the raw milk issues and set up dates for the next meetings.

The meeting will be held at the Lyman G. Anderson Agriculture and Conservation Center in Madison.

National Dairy Board appointments

U.S. Ag Secretary Tom Vilsack has announced twelve new appointments and two reappointments to the National Dairy Promotion and Research Board.

Newly appointed are: George E. Marsh, Oregon; Ray S. Prock, California; Arlene J. Vander Eyk, California; Brian W. Esplin, Idaho; Neil A. Hoff, Texas; Paul A. Fritsche, Minnesota; Patricia M. Boettcher, Wisconsin; Mark E. Erdman, Illinois; Susan D. K. Troyer, Indiana; and Ronald R. McCormick, New York .

Reappointed to serve second terms were Randy G. Roecker of Wisconsin and Rita P. Kennedy of Pennsylvania.

Terms are for three years and begin immediately.

First ag competition workshop is in Iowa

The first Department of Justice/USDA workshop on competition in agriculture takes place in Ankeny, Iowa Friday.

Agricultural competition is one of those “hot button” topics, one that evokes some very strong emotions.  Corning, Iowa farmer Ray Gaesser, vice-president of the American Soybean Association will be part of a workshop panel discussing seed competition issues.  He says there’s fine line between too much and too little regulation.

“We think there is a need to review what’s going on in our industry—but at the same time, we have concerns that we go too far and stifle innovation,” Gaesser says, “so it’s really a fine line that we must walk on to make sure that we have competition, but at the same time that we don’t over-control and stifle competition.”

How great is the interest in this subject?  DTN reports that, prior to the workshops, Justice and USDA asked for public comments and received more than 15-thousand responses—so many that DOJ has been unable to post all of them.

AUDIO: Ray Gaesser (2 min MP3)

Dairy exports a mixed bag in January

U.S. dairy exports in January were 222.8 million pounds, up 27 percent from the depressed market of a year ago. Daily Dairy Report notes cheese sales increased 16 percent to 21.2 million pounds, lactose sales were up 27 percent at 37.6 million pounds, butterfat sales up 61 percent to 6.4 million pounds, dry whey shipments were up 35 percent to 42.4 million pounds and whey protein concentrate exports increased 133 percent to 31.3 million pounds.

One disappointing note, nonfat dry milk and skim milk powder exports dropped 41 percent from a year ago to 27.8 million pounds. On a daily average basis, that is the lowest amount in five-and-a-half years. For the month, the U.S. exported 19 percent of our total dairy production, less than half the average rate of the last five years.

Dairy outlook a little dimmer

The monthly World Agricultural Supply and Demand Estimates from USDA did not contain good news for dairy. Citing lower feed costs, slowed herd reduction, larger-than-expected January cow numbers and decreased exports …the Ag Department Outlook Board increased the 2010 milk production estimate from 188.9 billion pounds last month to 189.5 billion pounds this month. That would put 2010 production slightly higher than the 189.3 billion pounds of 2009.

As a result, price estimates have been lowered from last month; cheese estimates 7.5 cents lower now expected to range between $1.50 and $1.56 per pound. Butter is 1 to 2 cents lower at $1.415 to $1.505 per pound. The dry whey price is a penny lower and nonfat dry milk 4 to 5 cents below last month’s projections. This all means lower milk prices; Class III is down 70 to 80 cents from last month now expected to average between $14.20 and $14.80 this year. Class IV is 30 to 40 cents lower priced between $13.65 and $14.35 and the all milk price is now $15.55 to $16.15 representing a 65 to 75-cent drop from last month.

California launches statewide dairy animal care initiative

A coalition of California dairy groups has launched a campaign to get all of the state’s 1,750 dairy farms to participate in the National Dairy FARM Program. Farmers Assuring Responsible Management (FARM) was developed by animal scientists, veterinarians and dairy industry people and is designed to assist farmers in demonstrating and verifying the ethical treatment of their dairy animals.

Michael Boccorodo with Dairy Cares says the four major dairy processors have signed-on with the effort which will start with a series of educational workshops to educate producers on best management practices. The next step is an on-farm evaluation of each dairy farm to assess current practices and identify any needed improvements. The final step is independent, third-party verification to demonstrate program integrity and credibility.

Education will begin in April and they hope to have on-farm assessments completed by the end of the year with third-party verification next year. The ultimate goal is to deliver to consumers a product they can be confident was produced in an environmentally sustainable manner by animals which are well cared for.

AUDIO: Michael Boccodoro talks about the effort

Professional Dairy Producers annual business conference

The Professional Dairy Producers of Wisconsin annual business conference is coming up next Tuesday and Wednesday, March 16 and 17 in Madison. The preconference sessions this year present four very timely topics.

“It’s the Milk House” with Dr. Doug Braun of Pfizer Animal Health and Dr. Peter Vanderloo with the Wisconsin Diagnostic Lab. They will take you through the dissection of an udder to show you just how everything works.

“Make Every Conversation Count” will feature Donna Moenning, Vice President of Industry Image and Relations with Midwest Dairy Association and deal with communicating as a dairy producer with the consuming public.

“Putting the Wheels Under the Family Bus” with Michael Stolp of Northwest Farm Credit will help you not only operate a multi-generational farm business but prepare it for future generations.

“New Developments in Dairy Cattle Well-Being” has animal researcher Dr. Janice Swanson of Michigan State University talking about efforts to study and learn more about animal behavior and animal welfare.

The preconference sessions run from 9:30 to 11 a.m. on Tuesday, March 16 and will conclude in time for lunch prior to the general conference kickoff at 12:15.

The PDPW Business Conference runs through 4 p.m. on Wednesday, advanced registration is appreciated and available at the PDPW website however walk-ins are welcome.

AUDIO: Executive Director Shelly Mayer talks about the preconference sessions

May be the highest milk price we see for a while

A mixed week for the dairy markets. Cash cheese barrels fell 4 cents for the week marking the fifth consecutive week of declines. Blocks dropped 4.25 cents for the week falling below $1.30 for the first time since last September. However, Class III futures seem to be headed in the other direction with the June through December 2010 contracts gaining an average 34 cents on the week. More indication the traders expect cheese to turn around in the not-too-distant future.

The February base milk prices were also mixed when compared to January. Class II base for February production is $15.65 per hundredweight, 43 cents more than January and $5.45 better than February of 2009. The Class III base price for February is $14.28, down 22 cents from last month but $4.97 better than a year ago. Class IV base $12.90, down 95 cents from January but $3.45 higher than February, 2009. Component prices per pound for the month: butterfat $1.4404; protein $2.7066; nonfat solids $.9043; other solids $.1992.

One note of interest, looking at the futures as they are right now, this will be the highest milk price we see until July.

Hearing scheduled for Wisconsin raw milk bills

Companion bills which would legalize the sale of raw milk in Wisconsin will be the topic of a joint public hearing in Eau Claire next week. The Assembly Committee on Rural Economic Development and the Senate Committee on Agriculture and Higher Education will conduct the hearing on Wednesday, March 10 starting at 10 a.m. at Chippewa Valley Technical College.

The two bills, SB 434 and AB 628 would legalize the sale of raw milk by farmers who have Grade A permits and a permit from the Wisconsin Department of Agriculture, Trade and Consumer Protection. They would also be required to display a notice that the raw milk does not provide the protection of pasteurization. Under the legislation, farmers would not be held liable for selling the product “except in cases of willful or wanton acts or omissions.”

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