Wisconsin state-inspected meat crosses the border

Wyttenbach Meats in Prairie du Sac has become the first state-inspected meat processing plant to start shipping products to out-of-state markets. Wisconsin is one of three states in the nation to sign a cooperative agreement under new USDA rules that were finalized in 2011. Ohio and North Dakota are the other states with approval.

Under the agreement, the Wisconsin Department of Agriculture, Trade and Consumer Protection Division of Food Safety has authority to inspect meat products produced in these selected establishments using regulatory oversight and sampling programs that are the same as those in the federal inspection program. Wisconsin’s meat inspection program has equaled the standards of the federal program for the past 44 years.

The Badger State currently has 272 state-inspected meat plants and many have expressed interest in the interstate meat shipment program. Several plants have already started the pre-inspection, label-changing process.

House begins farm bill debate

The House is prepared to get to work on the farm bill, in prepared remarks, Ag Committee Chair Frank Lucas explained the four-year process used to generate the bill including consideration of more than 200 amendments during markup. He noted the bill was voted out of the ag committee 36-10 with 23 out of 25 Republicans and 13 out of 21 Democrats supporting it. The Chairman says “The result is legislation that calls for reduced spending, smaller government, and common-sense reform.”

Ranking member Collin Peterson voiced his support for the bill, “With roughly 16 million American jobs tied to agriculture, the farm bill is a jobs bill.” He continued, “Failing to pass a new, five-year farm bill could potentially devastate our rural economy. Why would we want to jeopardize the one part of the economy that has been, and continues to be, working?”

The Minnesota Democrat says he knows there are going to be a lot of amendments offered, “but it’s my opinion that in order for the bill to be conferenced, to be able to get a new bill signed into law before September 30, we need to keep this a bipartisan bill and not stray too far from what was approved in Committee.”

As of Monday, more than 220 amendments had been posted and the White House says the President would veto the bill as it stands right now.

Chairman Lucas’s statement followed by Mr. Peterson’s

[Read more...]

Global Dairy Trade prices up/ Outlook prices down

After declining for the last two months, the overall average price nudged a little higher on the Global Dairy Trade Auction in New Zealand on Tuesday. Cheddar cheese was 6.5 percent lower and butter milk powder declined 2.2 percent from the June 4th auction. Anhydrous milk fat increased 1.7 percent, whole milk powder up 2.2 percent, skim milk powder was 3.2 percent higher and butter increased 4.7 percent putting the average for all products up 1.1 percent from the last sale. There were no sales of lactose, milk protein concentrate and rennet casein.

Cooperatives Working Together (CWT) has accepted four requests for export assistance from Dairy Farmers of America and Northwest Dairy Association (Darigold) to sell 310,852 pounds of Cheddar cheese to customers in Asia and North Africa. The product will be delivered June through September 2013.

Year-to-date, CWT has assisted member cooperatives in selling 61.123 million pounds of cheese, 51.727 million pounds of butter, 44,092 pounds of anhydrous milk fat and 218,258 pounds of whole milk powder to 31 countries on six continents

Monthly Livestock, Dairy and Poultry Outlook from USDA on Tuesday held only slight changes for dairy. Corn prices were raised from the May estimates reflecting delayed planting, reduced production and tightened supplies. Soybean and alfalfa prices were also raised and that means higher feed prices. U.S. milk production estimates unchanged for 2013 at 201.8 billion pounds but the 2014 production estimate was reduced to 204.5 billion pounds. The Outlook Board says high feed prices will keep the milk-to-feed ratio below the level needed to prompt expansion of the dairy herd.

Cheese and butter price estimates for 2013 were lowered to reflect growing cold storage inventories. Cheese is pegged at $1.745 to $1.785 this year. Butter was reduced to $1.54 to $1.61 this year. 2014 butter price estimate was also reduced to $1.48 to $1.61 while the cheese price was left unchanged from last month’s estimate at $1.675 to $1.775 per pound.

The Class III price for 2013 is estimated at between $17.80 and $18.20 this year, $17 to $18 next year. Class IV is pegged at $18.15 to $18.65 this year, $17.75 to $18.85 in 2014. The all milk price for 2013 was raised a little from last month now estimated at $19.60 to $20. Next year’s all milk price is projected to be between $18.95 and $19.95 per hundredweight.

White House opposes House farm bill

The Obama Administration says it does not support the farm bill expected to come before the House of Representatives this week. In a statement, the White House says H.R. 1947 The Federal Agriculture Reform and Risk Management Act of 2013 “makes unacceptable deep cuts in SNAP” (Supplemental Nutrition Assistance Program).

“The bill would reduce access to food assistance for struggling families and their children, does not contain sufficient commodity and crop insurance reforms, and does not provide funding for renewable energy, which is an important source of jobs and economic growth in rural communities across the country.”

The statement concludes with: “If the President were presented with H.R. 1947, his senior advisors would recommend that he veto the bill.”

The complete statement from the White House follows:

EXECUTIVE OFFICE OF THE PRESIDENT

OFFICE OF MANAGEMENT AND BUDGET

WASHINGTON, D.C. 20503

 

June 17, 2013

(House Rules)

 

STATEMENT OF ADMINISTRATION POLICY

H.R. 1947 – Federal Agriculture Reform and Risk Management Act of 2013

(Rep. Lucas, R-OK, and Rep. Peterson, D-MN)

 

The Administration strongly opposes H.R. 1947, the Federal Agriculture Reform and Risk Management Act of 2013.  The bill would reduce access to food assistance for struggling families and their children, does not contain sufficient commodity and crop insurance reforms, and does not provide funding for renewable energy, which is an important source of jobs and economic growth in rural communities across the country.

The Administration strongly opposes the harmful cuts to the Supplemental Nutrition Assistance Program (SNAP), a cornerstone of our Nation’s food assistance safety net.  The bill makes unacceptable deep cuts in SNAP, which could increase hunger among millions of Americans who are struggling to make ends meet, including families with children and senior citizens.  The Administration believes that Congress should achieve significant budgetary savings to help reduce the deficit without creating hardship for vulnerable families – for example, by reducing crop insurance subsidies.  Rather than reducing crop insurance subsidies by $11.7 billion over 10 years, as proposed in the President’s Budget, H.R. 1947 would increase reference prices for farmers by roughly 45 percent and increase already generous crop insurance subsidies at a cost of nearly $9 billion over 10 years to the Nation’s taxpayers. 

The Administration supports enactment of a multi-year Farm Bill that includes a long-term extension of disaster programs and promotes rural development, preserves a farm safety net, maintains strong nutrition programs, encourages the development of local and regional markets, enhances conservation, supports environmental stewardship, complies with our World Trade Organization commitments, advances agricultural research, and provides funding for renewable energy.  In addition, the Administration believes that crop insurance payments should be tied to the Nation’s soil conservation and wetland protection goals. The legislation should also contribute significantly to deficit reduction, with savings from reforms proposed in the President’s Budget.
Consistent with the President’s Budget, the Administration looks forward to working with the Congress to achieve crop insurance and commodity program savings not contained in H.R. 1947, while at the same time strengthening the farm safety net in times of need and supporting the next generation of farmers.  The Administration also looks forward to working with the Congress to structure reporting requirements to maximize and facilitate agricultural research without creating undue burdens.  The Administration believes that provisions that would create unneeded barriers for agencies with regulatory responsibilities in executing their missions should not be included in a final bill.

Finally, the Administration looks forward to working with the Congress to reform the P.L. 480 Title II food aid program in order to provide food aid to starving people faster and feed millions of additional people per year at current funding levels.

If the President were presented with H.R. 1947, his senior advisors would recommend that he veto the bill.

One shareholder says Smithfield is worth more

At least one shareholder says Smithfield Foods could be worth more than the $4.7 billion being offered by China’s Shuanghui company. An investment fund called Starboard Value LP which owns 5.7 percent of Smithfield says the hog producer/processor would get a lot more if it were split-up into three parts and sold separately. Starboard Chief Executive Jeffrey Smith is sending a 16-page letter to Smithfield board members saying if broken up into pork production, pork processing and international business, the three entities would appeal to more buyers and could garner a collective $44 to $55 per share compared to the $34 per share being offered by Shuanghui.

Last March, Continental Grain, at the time another big Smithfield shareholder had called for a break-up. Continental sold most of its Smithfield stock when the Shuanghui deal was announced.

Packaged fluild milk sales were higher in April

Packaged fluid milk sales in April totaled 4.3 billion pounds up 1.1 percent from April of 2012. Conventional milk sales were up 0.6 percent while organic milk sales were up 13.5 percent compared to a year ago. USDA reports total organic milk product sales in April came to 191 million pounds.

Organic whole milk sales were up 18.5 percent to 50 million pounds while sales of reduced fat organic milk is 26.9 percent above a year ago at 57 million pounds. The average price for a half-gallon of organic milk is $3.59 compared to a $1.00 for a half gallon of conventional milk putting the organic-to-conventional spread at $2.59 last week compared to $1.80 two weeks before that.

The March mailbox price averaged $19.30 across the Federal Milk Orders ranging from $21.96 per hundredweight in Florida to $17.01 in New Mexico.

Study: No direct link between RFS and food prices

A new study commissioned by the Renewable Fuels Association (RFA) shows no direct correlation between the Renewable Fuel Standard (RFS) and the overall increase in food prices since 2008.

John Urbanchuk with ABF Economics conducted the study. He says, “If you take a look at the time since the implementation Renewable Fuels Standard, and basically we’re five years into the RFS, and you take a look at a comparable period PRIOR to that, what we found is that retail-level food prices have actually increased at a slower rate than was the case before the RFS took effect.”

Urbanchuk says the RFS has contributed to the production of the dry mill corn ethanol industry which, in turn, benefits livestock production and consumers. He says,  “Energy prices, oil prices, play a role in transportation. They play a role in processing. They play a role in determining packaging costs.”

Another co-product of ethanol production is carbon dioxide, Urbanchuk points out, an important chemical used for food refrigeration and freezing and maintaining food quality.

“You know,” says Urbanchuk, “Nobody focuses on carbon cioxide but carbon dioxide – the food and beverage industry offers carbonation as the other part of that. They’re major users of carbon dioxide and they’re benefitting significantly from the Renewable Fuels Standard.”

Energy costs, he adds, cannot be overlooked as a contributor to increased food production costs. He says it’s important to note that consumer spending on food essentially has declined over recent decades to less than 8%.  

~AgWired contributed to this report~

CWT votes to increase contributions and extend export program

The members of Cooperatives Working Together (CWT) have voted to increase their contributions to the program and extend it through 2015. Effective July 1st, members will double their contribution from 2-cents to 4-cents per hundredweight. The increase is to cover the large increase in CWT-member requests for export assistance. National Milk Producers Federation president and CEO Jerry Kozak says the revenue is needed if we are “to continue to successfully compete in world markets this year and into the future.”

Initially designed to take cows out of production in times of oversupply, the focus of CWT has changed to now assisting in the export of U.S. dairy products. Since the start of 2011, the program has helped member cooperatives sell 257.7 million pounds of American-type cheeses and 111.5 million pounds of butter to 39 countries on six continents.

A look at global dairy production

While milk production has been consistently strong in the U.S., production has been slowing down in Australia and New Zealand. It is getting towards the tail-end of the production year in Oceania and overall milk output has been running behind year-ago levels. The drought in New Zealand is the big factor. Rainfall has recently returned to more normal levels so the pastures are rebounding and should be in good shape when the new production year begins. Dairy Market News reports farmers will get higher payments for next season’s milk reflecting higher global prices. Devalued Australian currency could have an effect on things as well making exports more price-competitive on the world market.

In Western Europe, flooding and wet conditions are causing some problems for dairy farmers in Germany, Poland and the Czech Republic but early indications are the effects are minimal, mainly limited pasture access and some transportation issues. Milk production has already peaked in Germany and production there as well as in Holland and Denmark is running above year-ago levels. France, the U.K. and Ireland are below year-ago levels.

Court says Monsanto’s pledge is good enough

The U.S. Court of Appeals for the Federal Circuit in Washington has affirmed a previous ruling that organic growers have no reason to block Monsanto from suing farmers for illegally growing their genetically modified crops. Monsanto has pursued hundreds of patent infringement cases against growers for planting their protected crops without paying royalties.

Organic farmers and seed dealers filed suit in 2011 arguing that Monsanto could sue them if a patented GM trait inadvertently showed up in their fields even though they didn’t want it. They sought preemptive action to prevent Monsanto from suing them should that happen.

Monsanto has pledged it would not seek action against anyone selling a crop with less than one percent of modified seed. The court ruled that that was sufficient protection for the organic growers.