Supply management strategy will not change

The Canadian newspaper, The Globe and Mail, reported that the Canadian government is considering changes to its dairy supply management program. Trade Minister Dominic LeBlanc fired back. “We have been very clear from the beginning that supply management is not a subject of negotiation with the Americans,” said LeBlanc. “It will not be, it is not, or will never be on a negotiating table as we look at a review of the USMCA (United States-Mexico-Canada Agreement) agreement.”

Rollins: ‘farm economy is not in a good place’

Agriculture Secretary Brooke Rollins was on FOX Business and outlined the current challenges faced by farmers and ranchers. She also defended her boss and his support for agriculture. “President Trump has been the most pro-farmer president, perhaps in our lifetimes, perhaps in history,” Rollins said. “But this moment of uncertainty in the farm economy is real.” In addition to the ongoing trade negotiations with China, Rollins cited the cost of crop inputs and the agricultural trade deficit under the Biden administration. Rollins repeated something that was said last month, saying, “the golden age for agriculture is right around the corner.” Rollins said relief is on the way in the meantime. “The farm economy is not in a good place; we’re working around the clock. The president has committed to supporting our farmers, and we’ll have an announcement on that very soon.”

Dairy impacted by shutdown

During the government shutdown, essential services, like food safety inspections and emergency disease programs, are continuing. Grade A inspections are not affected. Most Farm Service Agency and Natural Resources Conservation Service offices are closed, halting new loan processing, disaster assistance and technical assistance on active contracts. U.S. Department of Agriculture reports, including the milk production report, are suspended.

Beef market offsetting lower milk check

Class III milk prices are in the $16 or $17 territory, and Class IV prices are in the $14 range. A dramatic drop in cheese and butter prices is responsible for the lower milk check. Despite the downturn in milk prices, Ever.Ag market analyst Mike North says the beef market has propped up the bottom line for dairy farms. “Only a few years ago, it was at about $1.50 per hundredweight in combined sales of calves and cull cows. That has grown to be, depending on the mix of breeding for beef and the amount of culling taking place, we’re seeing dairies bringing back home anywhere from $3 to upwards of $4.50 per hundredweight on top of what their milk check is,” North said. “That beef revenue has given a lot of staying power even with the lower milk prices.”

Butterfat levels up 13% in the past 10 years

With record demand for yogurt and cheese, the dairy industry has responded by delivering the butterfat components to produce those products. Cobank Lead Dairy Economist Corey Geiger warns it may be too much of a good thing. In a new report, Geiger said butterfat percentages have been increasing at twice the rate of protein. That’s a concern for cheese production, which now represents more than half of the U.S. milk supply. Whey, which is a byproduct of cheese production, is enjoying a demand spurt for whey protein used in protein bars and other supplements. “Eight to 12 percent of Americans are on GLP-1 weight loss drugs, think Ozempic and those kinds of things,” said Geiger. “People on those weight loss drugs are craving and need to eat high-quality protein.”

U.S. and Taiwan dairy groups sign MOU

The U.S. Dairy Export Council, National Milk Producers Federation and Dairy Association of Taiwan have signed a memorandum of understanding to promote cooperation and trade. Taiwan is a growing market, and the agreement is seen as a way to position the U.S. dairy industry to meet that demand.

Global dairy prices decline

Global food prices dipped slightly in September, driven in part by lower dairy prices. The Food and Agriculture Organization Food Price Index, which monitors specific foods in its monthly report, said prices were down more than 1% from August but up 3.4% from a year ago. Dairy prices declined nearly 3%. Butter prices were lowered by the expectation for increased production in New Zealand. Soft demand for ice cream and milk powder is also reflected in this report. Meat prices are at record highs, up 6.6% from a year ago.

Dairy industry’s economic power

The International Dairy Foods Association has released information highlighting dairy processors and their impact on the U.S. economy. According to the report, the Minnesota dairy industry has a $27.2 billion total economic impact. That includes $6.7 billion in total wages, $1.9 billion in federal tax contributions and $1.3 billion in state tax contributions. Nearly 25,000 jobs are directly related to the dairy industry in Minnesota, with another 63,000-plus indirectly associated with the state’s dairy industry.

Milk output rising

U.S. milk production rose 3.2% in August. The number of milk cows in production and the amount of milk produced per cow are up over last year. Milk production in South Dakota is up more than 11%, with milk cow numbers up 21,000 head from a year ago. Milk output in Minnesota rose 2.4%, and the state dairy herd grew by 3,000 head in the past year.

Permit issued for Riverview dairy project

The Riverview dairy project at Hillsboro, North Dakota, is moving forward. The North Dakota Department of Environmental Quality has issued permits for the 25,000-cow dairy farm. Riverview has identified enough cropland acreage to apply the manure as fertilizer. All of those acres in the nutrient management plan are outside of the floodplain.

A change of leadership coming for American Butter Institute

During the recent American Butter Institute board meeting, Chris Galen said he would be stepping down from his position managing the association at the end of this year. Galen, who has been at the helm of ABI for three years, is also retiring from the National Milk Producers Federation at the end of 2025. David West is succeeding Galen. West is the chief administrative officer for the NMPF.

Success at World Dairy Expo

Minnesota had a good day of judging ahead of World Dairy Expo. The University of Minnesota repeated as the National Intercollegiate Dairy Cattle Judging Contest champion. UM’s Keenan Thygesen was the top individual judge. Minnesota was also the winner of the 4-H judging contest.

Trivia challenge

The costly dairy cow disease featuring inflammation of the udder is mastitis. That answers our last trivia question. For this week’s trivia, what is the chronic, contagious bacterial disease found in the intestinal tract of cattle? 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.