U.S. dairy market shifts

The U.S. has been short on butterfat for many years, but the quarterly report from the CoBank Knowledge Exchange said the tide has turned, and the country may be short on dairy protein moving forward. With that trend, demand for cottage cheese, dairy protein shakes and Greek yogurt is up. The report said U.S. cheese and butter prices are lower than those of the major dairy exporters, the European Union and New Zealand; “Given that situation, dairy farmers and processors should consider hedging opportunities when market prices look favorable and cover expenses because small product movement could move prices.”

Mixed price signals

Dairy markets are showing mixed signals this month, with stronger prices for some products helping lift the overall milk price outlook. World Agricultural Outlook Board Chair Mark Jekanowski says tight supplies and steady demand are supporting gains in key dairy products. Jekanowski says those product price shifts are translating into higher milk price forecasts. “The Class III price forecast was raised by 25 cents per hundredweight, mainly reflecting strength in the cheese price,” he said. “The all-milk price was raised this month by 80 cents per hundredweight, up to $20.50 per hundredweight, still down a little bit year-over-year.”

Has beef-on-dairy gone too far?

Shawn Hackett of Hackett Financial Advisors believes dairy farmers have gone too far with the beef-on-dairy phenomenon; “We might have actually pushed too far over the edge and lost our normal process of keeping the dairy herd fresh, and it’s something to watch.” It may be difficult to pass up the extra income from the beef market, but a long-term approach is warranted. “I think we’ve reached a level, or we’re going to be reaching a level here pretty soon, where the dairyman is going to start thinking more about the long-term health of keeping dairy production going, because that’s still, at the end of the day, his bread and butter,” Hackett said.

More dairy cows going to slaughter this year

Since the beginning of the year, total cow slaughter has trended below year-ago levels. The year-to-date total through mid-March was 1.17 million cows, down 5% from the same period last year. During the first quarter, 41% of total cow slaughter was beef cows, and 59% was dairy cows. Slaughter data from the U.S. Department of Agriculture’s Agricultural Marketing Service shows the increase in dairy cow slaughter is happening in the Midwest, including Minnesota and Wisconsin, and in the Southwest.

Dairy remains concern in USMCA negotiations

Speaking at the Hudson Institute, U.S. Trade Representative Jamieson Greer addressed dairy issues in a discussion about the U.S.-Mexico-Canada Agreement. The USMCA is up for review this summer, and Canada’s supply-management dairy policy is expected to be a flash point. The conflict over dairy trade was described as “a much bigger issue.” The Trump administration has suggested separate bilateral negotiations with Canada and Mexico rather than a trilateral agreement.

Minnesota ag budget moves forward despite tight finances

Minnesota Senate agriculture committee chair Aric Putnam expects ag spending to be reduced this year due to the economic landscape. Policy priorities are still getting attention. “There’s some basic stuff that the department of ag would like to see us fix a little bit, then a couple other things that we’re putting in there because we think they’re important and don’t cost a lot of money, like an extension of the Farmer-Lender Mediation Program,” Putnum said. He also hopes to remove the cap on the Beginning Farmer Tax Credit; “It is really, really important to a lot of people. I think only 42% of people who needed it last year were able to avail themselves of it.”

Senate hearing focuses on nitrate impact

In St. Paul, the U.S. Senate Committee on Environment and Public Works hosted an oversight hearing regarding the environmental and health impacts of nitrates. Retired Mayo physician Dr. Aleta Borrud testified about health risks. “The risk for cancer, as I think you saw in the one study that I showed you that came from four different sources of U.S. data, showed that, in the areas where we are growing corn in particular, all over the Midwest, there’s an increase in colon cancer, which has by far the strongest association with nitrate pollution.” Sen. Steve Green of Fosston said studies are often done for a specific purpose. He cited a study conducted in the Pine Sands Aquifer at Park Rapids. “When you dig into that study, what you found was they tested one well in an old abandoned feedlot, and that’s where they got their nitrogen level in that area; it had nothing to do with the rest of the aquifer, and so that’s why I’m suspicious,” Green said. ”As far as the nitrogen on the farmlands, if you look at it, nitrogen is very expensive. They certainly don’t put on more than they need because it would be very much prohibited by the cost.”

First cutting sets pace for the season

As farmers prepare for forage season, CLAAS product specialist Alan Osterhaus is urging them to take a good look at their equipment; “Your first cutting of alfalfa, typically, is our most important when it comes to getting the crop out of the field in a timely manner; it really establishes the rhythm and cadence that the rest of the season is going to start to look like.” As you pull the mower out of the shed, consider what maintenance is required for the first cutting. “If we start to look at maybe some of the other machine aspects, what is working with the machine and how fast it is capable of going across the field,” Osterhaus said. “Maybe that would be something that we take a look at.”

Dairy Does More

The Dairy Does More campaign has been in place for a couple of months. Aris Georgiadis, senior vice president of marketing communications for Dairy Management Inc., said the campaign uses humor to create demand for dairy. “One of our insights is that most people have blind spots when it comes to the foods they love and enjoy,” Georgiadis said. “For example, they may think of yogurt as only being a breakfast food, so they’re missing out on dairy’s full potential and all the health benefits.” The goal is to help consumers find new reasons to love dairy products. The DMI social media strategy has already had “tens of millions of views.”

From advocacy to the barn

Lucas Sjostrom is now an account manager for Specialty Herd Solutions, a California-based company focusing on hoof health and labor efficiency. Sjostrom started with Minnesota Milk Producers Association and Midwest Dairy 10 years ago and took over as its executive director in 2017. In 2023, a management agreement was put in place with Edge Dairy Farmer Cooperative, with Sjostrom serving as executive director for Minnesota Milk and Edge. His previous experience includes time with Holstein Association USA Inc. and Hoard’s Dairyman.

IDFA adds McClain

Maggie McClain is the new vice president of communications for the International Dairy Foods Association. Most recently, McClain was senior vice president for FleishmanHillard.

Schafer succeeds Sawatzke on state animal health board

Goodhue livestock producer Brandon Schafer is the new president of the Minnesota Board of Animal Health. Schafer succeeds Erica Sawatzke of Kensington. Sawatzke, a turkey grower, retired from the BOAH after serving eight years as a board member and four years as president. Marshal veterinarian Dr. Jessica Fox was elected vice president.

A career move for Rupprecht

After 8.5 years with Zoetis, Cole Rupprecht has joined United Animal Health as a key account manager. Previously, Rupprecht worked for the Minnesota Farm Bureau, the North Dakota Farm Bureau and North Dakota State University Extension.

Trivia challenge

Dairy cows first arrived in the U.S. in 1611 at the Jamestown Colony. That answers our last trivia question. For this week’s trivia, in what year were frozen pizzas first sold in grocery stores? 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.