April 2006

U.S. dairy exports top $1.66 billion in 2005 (Pipeline, MD&VA Coop. Producers Assn., Apr. ’06). “U.S. dairy export values increased 56 percent in the last two years, reaching a record-high $1.66 billion in 2005. For the second straight year, U.S. suppliers showed they can compete internationally at historically strong prices. . . .Exporters responded to robust worldwide demand for dairy protein in 2005. Economic growth in Asia—China in particular—Russia, Mexico and the Middle East created opportunities for increased sales of milk components. The United States took advantage, reigning as the world’s leading supplier of skim milk powder (SMP), whey and lactose last year.”

Dairy caucus formed in Congress (CapitalPressInfo.com, Apr. 6, ’06) “A bipartisan group of lawmakers representing dairy producing regions announced the first Congressional Dairy Farmer Caucus. The group will focus on developing and promoting policy issues, a goal that will be particularly important as Congress begins to write the next Farm Bill. . . . The caucus will be co-chaired by Nunes, R-Visalia, Calif; Peterson, D-Minn., Rick Larsen, D-Lake Stevens, Wash.; and Randy Kuhl, R-N.Y. and Sens. Arlen Specter, R-Pa., and Dianne Feinstein, D-Calif.” Senator Santorum Joins Congressional Dairy Farmer Caucus (Press Release-Rick Santorum, May 2, ’06). “U.S. Senator Rick Santorum (R-PA), Chairman of the Senate Republican Conference and member of the Senate Agriculture Committee, recently became a member of the Congressional Dairy Farmer Caucus, a bipartisan group made up of House and Senate members focused on policy affecting the dairy industry.

So, you’re headed to Washington (Hoard’s Dairyman, Apr. 25, ’06) offers tips for “meeting with federal officials on the hill.” Ask for a meeting with the agency official who is expert on the issue you want to address. “Make sure you have your talking points, as well as materials that you can leave with the officials. . . . Stay on topic and back up your talking points with no more than five pages of materials to leave behind. . . . make sure to ask questions and establish an expectation for a continued dialog. . . . provide personal and local examples of the impact of the issue. . . . ask when you should check back in to find out what the agency intends to do about your request.”

There are no easy answers for this national crisis is the “People Side” feature in Hoard’s Dairyman (Apr. 25, ’06). Author Lorraine Merrill, partner in a 250-cow farm in New Hampshire, writes about “the high cost of health insurance for self-employed dairy producers. . . . A 2002 University of Wisconsin Program on Agricultural Technology Studies survey found that 20 percent of Wisconsin dairy farm families are uninsured. In an additional 25 percent, at least one family member had no insurance. In all, 80 percent had no preventive care coverage, and most dairy families with insurance had major medical with high deductibles. . . . Most covered farm families get their health insurance through off-farm employment or through cooperatives or farm organizations.”

‘Obie’ anyone? asks Farmshine (Apr. 14, ’06). “The All-American Dairy Show is now accepting applications for the 2006 Obie Snider Award. The award recognizes an outstanding individual in the dairy industry displaying character, ethics, professionalism, leadership and service. . . . the winner of the 2006 award will be recognized at the 43rd All-American Dairy Show in September. . . . For an application or more information, visit www.agriculture.state.pa.us/aads/. . . . All nominations must be received by May 26th.”

Supply-side reductions take time is the “Market Watch” feature in Dairy Herd Management (Apr. ’06). Phil Plourd writes, “. . . the pace of exports has not kept up with continued growth in the milk supply. . . . Inventories of dairy products remain well above previous-year levels. . . . it seems reasonable to expect the inventories will continue to build and prices will remain on the low side at least for the near-term. . . . (W)hile production can be tweaked incrementally over the short run by adjusting rations and the like, producers can’t simply walk into the parlor and ask the cows to please . . . make less because prices are low. . . . So, when milk production gets rolling . . . dairy-product inventories build and prices linger at low levels until the market sees supply-side response in terms of demonstrably fewer cows, reduced productivity, or some combination of the two. We suspect that the marketplace is only in the beginning stages of transmitting the supply-curtailment message.”

Free Farm Labor Posters Available (Country Focus, Apr. ’06). “If your farm enterprise hires outside labor, you may be required to display federal and state labor law posters on your employee bulletin board. If you do not have the proper posters you or your business may be open to fines. Pennsylvania Farm Bureau’s website provides links that allow you to print for yourself any labor poster that may be required in your business. Information is included on which posters are required and how to print them. Posters cover topics such as child labor, seasonal workers, minimum wage and work safety notifications.” Click on http://www.pfb.com/news/ag-issues/labor-posters.htm to access the posters.

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