U.S. dairy market shifts

The U.S. has been short on butterfat for many years, but the quarterly report from the CoBank Knowledge Exchange said the tide has turned, and the country may be short on dairy protein moving forward. With that trend, demand for cottage cheese, dairy protein shakes and Greek yogurt is up. The report said U.S. cheese and butter prices are lower than those of the major dairy exporters, the European Union and New Zealand; “Given that situation, dairy farmers and processors should consider hedging opportunities when market prices look favorable and cover expenses because small product movement could move prices.”

Mixed price signals

Dairy markets are showing mixed signals this month, with stronger prices for some products helping lift the overall milk price outlook. World Agricultural Outlook Board Chair Mark Jekanowski says tight supplies and steady demand are supporting gains in key dairy products. Jekanowski says those product price shifts are translating into higher milk price forecasts. “The Class III price forecast was raised by 25 cents per hundredweight, mainly reflecting strength in the cheese price,” he said. “The all-milk price was raised this month by 80 cents per hundredweight, up to $20.50 per hundredweight, still down a little bit year-over-year.”

Has beef-on-dairy gone too far?

Shawn Hackett of Hackett Financial Advisors believes dairy farmers have gone too far with the beef-on-dairy phenomenon; “We might have actually pushed too far over the edge and lost our normal process of keeping the dairy herd fresh, and it’s something to watch.” It may be difficult to pass up the extra income from the beef market, but a long-term approach is warranted. “I think we’ve reached a level, or we’re going to be reaching a level here pretty soon, where the dairyman is going to start thinking more about the long-term health of keeping dairy production going, because that’s still, at the end of the day, his bread and butter,” Hackett said.

More dairy cows going to slaughter this year

Since the beginning of the year, total cow slaughter has trended below year-ago levels. The year-to-date total through mid-March was 1.17 million cows, down 5% from the same period last year. During the first quarter, 41% of total cow slaughter was beef cows, and 59% was dairy cows. Slaughter data from the U.S. Department of Agriculture’s Agricultural Marketing Service shows the increase in dairy cow slaughter is happening in the Midwest, including Minnesota and Wisconsin, and in the Southwest.

Dairy remains concern in USMCA negotiations

Speaking at the Hudson Institute, U.S. Trade Representative Jamieson Greer addressed dairy issues in a discussion about the U.S.-Mexico-Canada Agreement. The USMCA is up for review this summer, and Canada’s supply-management dairy policy is expected to be a flash point. The conflict over dairy trade was described as “a much bigger issue.” The Trump administration has suggested separate bilateral negotiations with Canada and Mexico rather than a trilateral agreement.

Deere settles right to repair case

Deere & Company has reached a settlement to resolve ongoing “right to repair” litigation, bringing the multidistrict case to a close with no finding of wrongdoing.
The case stems from a 2022 complaint. As part of the agreement, Deere will establish a settlement fund for class members, with payments subject to a court-approved distribution plan. The company also said it will continue providing customer support. “We’re pleased that this resolution allows us to move forward and remain focused on what matters most, serving our customers,” said Denver Caldwell, vice president of aftermarket and customer support. The settlement is still subject to final court approval.

First cutting sets pace for the season

As farmers prepare for forage season, CLAAS product specialist Alan Osterhaus is urging them to take a good look at their equipment; “Your first cutting of alfalfa, typically, is our most important when it comes to getting the crop out of the field in a timely manner; it really establishes the rhythm and cadence that the rest of the season is going to start to look like.” As you pull the mower out of the shed, consider what maintenance is required for the first cutting. “If we start to look at maybe some of the other machine aspects, what is working with the machine and how fast it is capable of going across the field,” Osterhaus said. “Maybe that would be something that we take a look at.”

Dairy Does More

The Dairy Does More campaign has been in place for a couple of months. Aris Georgiadis, senior vice president of marketing communications for Dairy Management Inc., said the campaign uses humor to create demand for dairy. “One of our insights is that most people have blind spots when it comes to the foods they love and enjoy,” Georgiadis said. “For example, they may think of yogurt as only being a breakfast food, so they’re missing out on dairy’s full potential and all the health benefits.” The goal is to help consumers find new reasons to love dairy products. The DMI social media strategy has already had “tens of millions of views.”

IDFA adds McClain

Maggie McClain is the new vice president of communications for the International Dairy Foods Association. Most recently, McClain was senior vice president for FleishmanHillard.

New hire for WFBF

The Wisconsin Farm Bureau Federation has hired Emma Wallace as the district coordinator for southwestern Wisconsin. Wallace is a graduate of the University of Wisconsin-Platteville with degrees in dairy science and ag business. She previously worked as a marketing and communications coordinator for Reddy Feed and Grain LLC.

Heiman re-elected

Kim Heiman of Nasonville Dairy Inc. was re-elected to the presidency of the Wisconsin Cheese Makers Association. Mat Bartkowiak of Nelson-Jameson is first vice president, and Mindy Berry of Land O’Lakes is second vice president. Betsy Erdelyi of BMO Harris Bank is the treasurer, and Chris Roelli of Roelli Cheese Haus is the secretary.

Trivia challenge

Dairy cows first arrived in the U.S. in 1611 at the Jamestown Colony. That answers our last trivia question. For this week’s trivia, in what year were frozen pizzas first sold in grocery stores? We’ll have the answer in our next edition of the Dairy Star.

Don Wick is owner/broadcaster for the Red River Farm Network of Grand Forks, North Dakota. Wick has been recognized as the National Farm Broadcaster of the Year and served as president of the National Association of Farm Broadcasting. Don and his wife, Kolleen, have two sons, Tony and Sam, and five grandchildren, Aiden, Piper, Adrienne, Aurora and Sterling.