June 2004

Milk-cow numbers down
(Source: Dairy Alert from Dairy Herd Management email newsletter, June 23, 2004)
Expansion activity appeared to slow between April and May, according to the May Milk Production report released last week. There were 5,000 fewer milk cows during May versus April. By contrast, cow numbers saw month-to-month gains during both March and April. Cow numbers also fell 71,000 head in May versus a year earlier. However, a 13-pound gain in milk per cow kept total milk production in the top 20 dairy states at 13 billion pounds during May a decline of just 0.1 percent versus a year ago. Dairy Herd Management is available online at http://www.dairyherd.com/.
http://www.dairyherd.com/.

Keep Records of Animal Movement recommends Southwest Pennsylvania Diary Newsletter (June ’04). “As we have witnessed from this case of mad cow disease found in Washington state, as well as the earlier case discovered in Canada, one of the first steps taken is to track the infected animal’s movements from farm to farm. Accurate and detailed records can simplify the trace back process. Read the complete article with a list of “some items that should be in these records” at http://farmmanagement.aers.psu.edu/FMDocs/pubs/WeeklyFeature/
ProtectingYourBusinessfromMadCowDisease.pdf

Import Study Released notes Pipeline (June ’04). “. . . the U.S. International Trade Commission (ITC) has issued their long-anticipated report on the economic impact of imports of dairy proteins on the domestic economy. . . . the National Milk Producers Federation stated that the ITC report in fact substantiates the dairy producer arguments that the U.S. dairy market is disrupted by unfair competition from imported dairy products. The ITC concluded that, on a protein basis, imports of MPC, casein and caseinate may have displace 318 million pounds of U.S.-produced milk proteins between 1998 – 2002. . . . The ITC also agreed that most imported MPCs are not used in specialized nutritional supplements, but in fact are used to make cheese – where they displace domestically produced milk.”

How is Milk Valued and Uniform Blend Price Determined? is answered by Maryland & Virginia Director of Milk Accounting & Economic Analysis, Mike Asbury, in the June 2004 issue of Pipeline. “Milk is classified according to how it is used. . . . Milk sold as fluid products is categorized as Class I and normally receives a higher price . . . .Soft products such as ice cream and cottage cheese are classified as Class II and milk used in cheese production is considered Class III. Milk used to produce butter and dry milk powder is categorized as Class IV. Milk value is ultimately determined by market demand for cheese (Class III) and dry milk powder (Class IV) using prices announced by the National Agricultural Statistics Services (NASS) and according to formulas established by the regional Federal Milk Marketing System. . . . Prices change monthly and FMMO (Federal Milk Marketing Orders) staff audit processors to ensure that the processors paid these prices. FMMOs require that the proceeds from milk sales be pooled within a given federal milk market area and distributed accordingly to the cooperatives and producers supplying the region. This blended price reflects both the minimum prices in effect and the utilization of the milk in the various classes.”

Pennsylvania Small Business Advantage Grants applications available. Small Business Advantage is a new grant program providing a 50% matching grant, up to a maximum of $7,500, to enable a Pennsylvania small business to adopt or acquire energy efficient or pollution prevention equipment or processes that can help to increase profitability. Any Pennsylvania small business may apply. Applications for the Small Business Advantage grant program are being accepted through June 30, 2005. For information and application, click on Small Business Advantage.

High Nitrate in Groundwater? Stop Fertilizing – But Let the Cows Graze recommends USDA/ARS publication Agricultural Research (June ’04). “Farmers who find excessive levels of nitrates in groundwater can keep on grazing their cattle without fear of further contamination from the nitrogen in cattle waster – as long as they reduce or eliminate nitrogen fertilizer use for at least a few years,” according to a study at the ARS North ppalachian Experimental Watershed Laboratory. Read the complete article at http://www.ars.usda.gov/is/AR/archive/jun04/nitrate0604.htm

Dairy Markets Adjust, But Are Expected To Remain Tight
(Source: Livestock, Dairy, and Poultry Outlook, USDA Economic Research Service, June ’04)
“Wholesale prices of cheese and butter in mid-June were down almost 20 percent from their April peaks. The April peaks likely represented an over-reaction to the large February-March declines in milk production and the sharp March-April surge in wholesale cheese movement. Even though prices probably will slip from spring levels, dairy markets are expected to stay fairly tight through most of 2004. Production will be weak, and demand is projected to stayreasonably good. Prices may stay somewhat volatile, and temporary reversals of the general downtrend are a possibility. For all of 2004, farm milk prices are projected to easily surpass 1998’s record.” Links to all Livestock, Dairy, and Poultry Outlook publications are available by clicking on http://www.ers.usda.gov/Publications/LDP/.

Pennsylvania dairy fined for discharge
(Source: Dairy Herd Management website, quoting CentreDaily.com 6/10/2004)
“The state Department of Environmental Protection has fined a 2,000-cow dairy $30,000 for illegally discharging manure onto a grassy field. The owner of the dairy, Tom Frey, says during Tropical Storm Isabel their manure storage facility was close to overflowing. If allowed to overflow the manure would have polluted two nearby streams and eventually the Susquehanna River. In order to protect those waterways, Frey opted to pump out some manure onto a 40-acre grassy field. He then notified the DEP of his actions. According to DEP this is the fifth such penalty against the farm since 1999. Frey is now building a 4.7-million-gallon storage lagoon to prevent further problems.”

Milk sales strong at Wal-Mart
(Source: Dairy Alert from Dairy Herd Management email newsletter, June 23, 2004)
According to data from Information Resources, total fluid milk sales at Wal-Mart are up 8.3 percent for the 13 weeks ending May 30. By comparison, total fluid milk sales across all grocery, drug store and mass merchandisers were down 3.9 percent for the same time period. Its a good indication that many consumers will seek out lower prices instead of giving up milk. Dairy Herd Management is available online at http://www.dairyherd.com/.

Class I price retracts $3.18
(Source: Dairy Alert from Dairy Herd Management email newsletter, June 23, 2004)
Following two months of record-breaking activity, the Class I price for July suffered a $3.18 setback. Last Friday, the USDA announced the July Class I price at $17.95. The $3.18 setback is the largest month-to-month price drop ever. However, the Class I price is still $8.18 higher than a year ago. Dairy Herd Management is available online at http://www.dairyherd.com/.

Creating an Employee Handbook is featured in Greenhouse Product News (June ’04). “Most small companies . . . are unable to invest in a full-time human resources (HR) expert as part of their staff.” However, formalizing “policies and procedures and setting the tone for interaction between employees and management . . . is, unfortunately, becoming increasingly necessary for even the smallest company, as litigation continues to rise in the United States. The author recommends, “Having an employee handbook . . .will act as a preventive for both litigation and time-consuming employee disputes. Every organization involving people has to have terms of employment and rules to govern employee as well as employer conduct if it is going to survive.” Recommended sections include: Introduction; conditions of employment; job particulars; employee evaluation. . . . “Before constructing your employee handbook, consult with your attorney and/or a human resources expert.” Read the complete article here.

Pennsylvania milk production for June 2004 was down 2.6 percent from June 2003, reports the July Milk Production report from National Agricultural Statistics Service (NASS). Milk production in the 20 major states during June was down a total of 0.2 percent. For the April-June 2004 quarter, Pennsylvania milk production totaled 2.6 billion pounds, down 3.8 percent from the April-June quarter last year. The average number of milk cows in Pennsylvania during the quarter was 558,000 head -- 22,000 head less than the same period last year. Milk production in the U.S. during the April-June quarter totaled 43.7 billion pounds, down 0.6 percent from the April-June quarter last year. The average number of milk cows in the U.S. during the quarter was 9.00 million head --112,000 head less than the same period last year. Read the complete report at http://www.usda.gov/nass/PUBS/TODAYRPT/mkpr0704.pdf.

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