The Big ‘O’ signs off for the last time

Farm broadcast legend and Wisconsin native, Orion Samuelson, has died. Samuelson, who was two weeks away from his 92nd birthday, spent 60 years at WGN Radio in Chicago and was the host for “U.S. Farm Report” and later “This Week in Agribusiness.” Max Armstrong was Samuelson’s broadcast partner for 45 years. “We had a wonderful run for those many years and, goodness gracious, the flood of memories as you can imagine.” Affectionally known as “O,” Samuelson changed the farm media business and also had a profound impact on all agriculture. “Over the past 50 years, this guy probably is at least in the top 10 of the most influential people in American agriculture and maybe in the top five,” Armstrong said.

Milk production rising in major export regions

Global dairy markets remain well supplied as milk production continues to grow across most major exporting regions. Rabobank says production gains are being seen in nearly every key dairy region except Australia, with relatively low livestock feed prices helping encourage higher output and keeping global milk supplies elevated. Even with ample supply, dairy commodity prices have rallied this quarter, particularly for products from Australia and New Zealand. Analysts say the outlook is becoming more uncertain due to geopolitical tensions, especially in the Middle East. Rabobank notes the region is a major buyer of milk powders and other dairy products, meaning any disruption to trade could quickly impact global dairy markets.

National Farmers Union seeks dairy policy reform

National Farmers Union delegates approved three special orders of business. With the current economic challenges in agriculture, NFU calls on Congress to address the farm safety net but also build long-term markets. That includes an immediate moratorium on farm foreclosures and tackling market consolidation. Another special order seeks dairy policy reform, including the development of a supply management program. The final order centers on NFU’s belief in democracy, equity and “the golden rule.”

GLP-1 a game-changer

The popularity of weight-loss medications is driving a major shift in the American diet. “This GLP-1 (glucagon-like peptide-1) thing has everybody’s head spinning,” reports Gregg Doud, president/CEO, National Milk Producers Federation. “I think the change coming to food consumption patterns in the United States as a result of this is going to change some things.” Protein demand is rising. “The U.S. can really respond domestically and internationally in terms of beef, pork, poultry and dairy,” Doud said.

A honeymoon period with protein

U.S. dairy exports are enjoying continued strength. Domestic dairy demand is also getting a boost from the weight-loss medication, GLP-1, and the corresponding need for more protein in the diet. Terrain Senior Dairy Analyst Ben Laine said the dairy industry is already set up to make high-quality dairy products like protein shakes and bars; “That’s a big win, but at the same time, those consumers want less cheese and fat and butter and pizza, so a lot of the other dairy products, other than the proteins, will not fare as well.” While it may be a mixed bag, Laine believes it will be net positive for dairy farmers.

Monitor interest rate costs

Terrain Senior Analyst Matt Erickson focused on the economic state of the dairy industry at the Central Plains Dairy Expo. The war in the Middle East and $100 crude are having their impact. “I think it puts pressure on the 10-year treasury,” Erickson said. “Even though the Fed is under a rate-cutting scenario, the 10-year (treasury) is still staying elevated. I think what is driving this stickiness in the 10-year is inflation.” As expected, the Federal Open Market Committee made no changes to the benchmark interest rates at mid-month. Inflation continues to increase, and Erickson said farmers will see that reflected in their interest rate costs.

Beef-on-dairy boom drives record calf market

Beef-on-dairy now represents 13% of the feeder cattle supply. Mark Newman, risk management advisor for Commodity & Ingredient Hedging, is seeing that phenomenon reflected with day-old calves. “Yeah, $1,800 in Pennsylvania for a Holstein beef cross; in the Midwest, it’s closer to $1,500, $1,600 and maybe $1,300 for a Jersey calf,” Newman said. “It is really a tremendous run-up. In 2020, you were probably getting $200 for a day-old.” Speaking at the Central Plains Dairy Expo, Newman said the U.S. Department of Agriculture’s new Livestock Revenue Protection risk management tool provides peace of mind.

Sexed semen offers benefits for beef-on-dairy

Sexed semen has been used in the dairy industry since 2005. In the beginning, the technology helped large commercial dairies to increase the number of heifer replacements. With the revenue now available by selling calves for the beef market, STgen Central U.S. Sales Lead Eric Zwiefelhofer says the focus has shifted; “As time has gone on with improvements in technology, we’re really dialing in heifer inventories to make sure we’re creating the right number of heifers that we need for the dairy. We’re able to produce those black calves on the back end, and that is driving a lot of profit in dairies right now.” STgen is promoting fresh gender-sorted semen for higher conception rates.

New ultra-filtered milk from Organic Valley

Organic Valley has launched a new line of ultra-filtered, pasture-raised organic milk. Organic Valley Protein Plus has 50% more protein and 50% less sugar. The product is being found in major retailers this month, including Target and Whole Foods.

Fonterra CEO resigns

New Zealand’s Fonterra Cooperative Group CEO Miles Hurrell has resigned. Hurrell was in that role for eight years and spent 25 years with the company. He will remain with Fonterra to assist with the leadership transition.

Engwall moves to Carr Valley Cheese

Heather Engwall is Carr Valley Cheese’s new managing director. Engwall has more than 25 years of experience in the dairy industry. Most recently, she was vice president of marketing for Emmi Roth.

Equity expands to Minnesota

Equity Cooperative Livestock Sales Association has acquired Haas Livestock Selling Agency as a wholly owned subsidiary. The newly formed Haas Livestock Sales will continue to lease the existing facility in Cannon Falls. Equity is based in Baraboo, Wisconsin. It operates 11 auction bars, but this is the first one in Minnesota.

Trivia challenge

The American Farm Bureau Federation presents an award each year at its convention for the “farm dog of the year.” That answers our last trivia question. For this week’s trivia, how many compartments does a cow’s stomach have? 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.