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Northwest Iowa Dairy Outlooks

A local discussion of current science and issues concerning dairying in northwest iowa

Category Archives: milk

An article in Feedstuffs noted that the National Dairy Farmers Assuring Responsible Management (FARM) Program has opened participation in its third component: FARM Environmental Stewardship (ES).

The ES module joins the FARM Program’s two other pillars, FARM Animal Care and FARM Antibiotic Stewardship. The voluntary FARM Environmental Stewardship program helps dairy producers augment their environmental management efforts by identifying ways to improve their on-farm sustainability.

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Cherokee Ag Show is on Tuesday, Feb. 14.  I will be part of “meet the expert” at the ISU Extension booth.  Joel DeJong will be conducting PPAT from 9:30-11:30, so during that time I will be there to answer questions the general public might have about the dairy industry. The show will be at Western Iowa Tech Community College located at 200 Victory Dr., Cherokee.  If you are coming from the north or west on Hwy 59 or 3 it is on the north end of town.  Turn right at Holzhauer Motors and it is directly west.  You can’t miss it.  Parking to the south or west.

Come ask me a bee question if you are into bees!

The milk production forecast for 2017 is raised from last month. Improved returns in 2017 are expected to result in a slightly higher forecast cow inventory during the late part of 2017. Milk output per cow is also raised as improved returns are expected to support continued improvements in the quality of dairy rations. Beginning stocks on both a fat and skim-solids basis are raised from last month on December 31 storage data; stocks at the end of 2017 are raised, reflecting increased beginning inventories and higher dairy product production in 2017. Fat-basis imports are reduced as domestic butterfat is expected to be more competitive with the EU; skim-solids imports are unchanged. Fat basis exports are unchanged and skim-solids basis exports are raised slightly. Skim-solids imports are virtually unchanged as weaker exports of nonfat dry milk (NDM) are offset with stronger whey sales. For 2016, milk production, output per cow, trade, and stock estimates are updated based on data through December.
Cheese and butter price forecasts are lowered as product production is expected to reflect higher forecast milk production and beginning stocks are relatively high. The nonfat dry milk price forecast is unchanged, but the whey price is raised from last month on the strength of domestic and international demand.
The Class III price is raised as the higher whey price more than offsets the lower cheese price forecast.
The Class IV price is reduced as the butter price forecast is lowered. The all milk price is forecast higher at $17.70 to $18.40 per cwt.

The Economic Research Service farm income and finance program measures, forecasts, and explains indicators of economic performance for the U.S. farm sector and farm businesses by resource region and commodity specialization.Their report last week saw stable receipts most most segments of the industry, with milk showing major improvements nationwide.

Overall, animal/animal product cash receipts are expected to remain stable in 2017, rising $53 million (0.03 percent) in 2017. Relative to 2016, annual price changes are mixed as to direction in 2017, with increases expected for milk and eggs, declines expected for red meats and turkeys, and stable prices for broilers and farm chickens.

Milk receipts are expected to increase $4.7 billion (13.7 percent) in 2017 from 2016, reflecting expected increases in both the price and quantity sold. Cash receipts from cattle and calves are expected to decline in 2017, falling $4.5 billion (6.7 percent) from 2016 as cattle/calf prices decline. Hog prices are expected to drop in 2017, leading to a forecast drop in hog cash receipts of 4.7 percent.

Prairie Farms Dairy and Swiss Valley Farms announced today that members of both cooperatives have approved the proposed merger with overwhelming support. Both companies are industry-leading farmer-owned cooperatives and rank among USDA’s list of Top 100 Cooperatives. The merger agreement was originally announced late last year, and is expected to close on March 31, 2017.