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GA Milk Weekly Enews - August 11, 2017
Your weekly update for the Georgia Dairy Industry
Brought to you by the Georgia Milk Producers, Inc.
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THANK YOU TO EVERYONE THAT COMPLETED THE SURVEY - WE WILL LEAVE THE SURVEY OPEN FOR A FEW MORE DAYS !
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Q&A: U.S. Ag Secretary Perdue talks trade, immigration, regulation
Trade, immigration and regulation are the top policy concerns for farmers when it comes to Washington, D.C., U.S. Secretary of Agriculture Sonny Perdue said Monday during a local stop on a five-state, Midwest listening tour.
Perdue, nominated by President Trump in January and confirmed by the U.S. Senate in April as the 31st agriculture secretary, met with employees at the U.S. Department of Agriculture Service Center in Springfield Monday before joining a group of about 80 central Illinois farmers on the farm of Diana and Larry Beaty, near Rochester.
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In its August World Agricultural Supply and Demand Estimates (WASDE) report, the USDA lowered milk production forecasts for 2017 and 2018, and milk price forecasts were all over the board.
According to the report, the reduced production forecast is the result of slow growth in milk per cow which "more than offset increases in dairy cow numbers."
Milk price forecasts in the report fluctuated, some raised and some lowered as the result of product prices.
For the remainder of 2017, Class III milk price forecast is unchanged, however the 2018 price is lowered as the agency expects lower whey prices to offset any improvement in cheese prices.
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Walmart Moves Into The Dairy Business Even As Milk Consumption Drops
Walmart announced its intent to build a dairy processing plant to supply its own store-brand milks back in March 2016; as a result, Dean Foods stock dropped 12 percent. Today, on reports that the Walmart plant, which is estimated to serve 600 stores (out of its 4,100+ stores in the US), will open soon,
Dean Foods' stock price took another hit, declining a bit over 20%.
Dean Foods' woes are not unique. Every dairy throughout the country has been faced with two issues: Americans' consumption of fluid milk since the 1970s continues to decline - down to 18 gallons a year per capita (in the '70s, it topped 30 gallons)
- and non-cow milk alternatives continue to gain market share and steal cow-milk drinkers.
Is Walmart's move into a declining business a good move?
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Trump's Trade Pullout Roils Rural America
On a cloud-swept landscape dotted with grain elevators, a meat producer called Prestage Farms is building a 700,000-square-foot processing plant. The gleaming new factory is both the great hope of Wright County, which voted by a 2-1 margin for Donald Trump, and the victim of one of Trump's first policy moves, his decision to pull out of the Trans-Pacific Partnership.
For much of industrial America, the TPP was a suspect deal, the successor to the North American Free Trade Agreement, which some argue led to a massive offshoring of U.S. jobs to Mexico. But for the already struggling agricultural sector, the sprawling 12-nation TPP, covering 40 percent of the world's economy, was a lifeline. It was a chance to erase punishing tariffs that restricted the United States-the onetime "breadbasket of the world"-from selling its meats, grains and dairy products to massive importers of foodstuffs such as Japan and Vietnam.
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Our cows had a chance to star on the small screen
We recently had the opportunity to share our farm with the public on the "Georgia Farm Monitor" television show that appears on RFDtv. "Ranger Nick" (a University of Georgia professor) has a monthly segment on the show and asked us if he could visit our farm.
He brought along country music star Pete Schlegel to sing to the cows and discuss the difference in our farm and the dairy he grew up on in Ohio. I don't know if the cows milked any better because of the singing, but I do know we had the chance to show our farm to the public.
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U.S. dairy exports in the first half of 2017 were the most in three years, according to
a monthly summary from Alan Levitt, vice president of communications and market analysis at the U.S. Dairy Export Council (USDEC). Sales were led by record volumes of nonfat dry milk/skim milk powder and whey products, as well a 24-percent year-over-year gain in cheese exports.
Suppliers shipped 950,291 tons of milk powder, cheese, butterfat, whey and lactose in the first six months of 2017, up 13 percent from last year, and the most for the period since 2014. U.S. exports were valued at $2.77 billion, up 23 percent.
U.S. suppliers have capitalized on favorable pricing and exchange rates this year, and tapped into strong demand from Mexico and China, Levitt said.
Butterfat exports in the first half were 11,975 tons, off 6 percent from last year and the lowest figure since 2009.
On a total milk solids basis, U.S. exports were equivalent to 14.3 percent of U.S. milk production in the first half of 2017 (Table 1). Imports were equivalent to 3.5 percent of production.
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Dean Foods Company has issued its second quarter 2017 results. Adjusted net income fell from $35m in Q2 2016 to $20m in 2017. Taking into account the first six months of the year, adjusted net income dropped from $76m in 1H 2016to $32m in 1H 3017.
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The PET Dairy plant in Richmond is being closed, with a loss of 75 jobs, as the company that operates it seeks to cut costs amid competitive pressures in the milk business.
Texas-based Dean Foods Co., which operates the milk processing factory at 1505 Robin Hood Road, confirmed Thursday it will phase out production at the plant.
"Dean Foods is consolidating its operations in Virginia and will be ending production at its PET Dairy fluid milk processing plant in Richmond," the company said in a statement. "Production will be phased out over the next few months, and approximately 75 positions will be eliminated."
The company said it will move the production to plants in High Point, N.C., and Winston-Salem, N.C. PET products will continue to be available in the Richmond region, the company said.
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Water Rule Takes Center Stage
U.S. Environmental Protection Agency Administrator Scott Pruitt is expected to visit 26 states in all before undertaking an eventual overhaul of the waters of the United States, or WOTUS, rule.
State and federal government leaders, as well as farmers in Iowa, met with the administrator in a roundtable discussion held at the Iowa Farm Bureau headquarters in Des Moines on Tuesday, an event that was closed to the media.
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Markets have Ups, and Markets have Downs. This challenging Dairy Industry climate led to an expected 'down' report for Dean Foods. Stay Calm.
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2017 AgAware Workshop Next Month
AgSouth
Farm Credit and AgGeorgia Farm Credit are hosting a free financial training workshop
on August 25 at the Burke County Extension office in Waynesboro. The purpose of the program is to promote and educate the next generation of farmers. This will be the fifth year the program has been
available in Georgia and South Carolina.
Topics covered in the program include: Balance Sheets, Income Statements, Family Finance &
Family Budgeting, Risk Management, Accrual Income, Applying for Financing and Preparing a
Business Plan with bonus video topics on Record Keeping, Marketing, and Technology available
for continued education. The AGAware educational program is also certified for FSA Direct
Borrower Training Credit.
The workshop will be held from 9:00 a.m. to 4:00 p.m. Lunch is provided at no cost. To register click here.
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Alfalfa Field Day
August 30th at 10 am
**CERTIFIED WASTE OPERATORS ATTENDING THIS EVENT WILL RECEIVE CONTINUING EDUCATION CREDITS HOURS**
WHERE: WDairy, Madison
(4651 Monticello Hwy, Madison, GA 30650)
TOPICS:
- How HarvXtra® Alfalfa may add value to your operation
- Grower experiences with HarvXtra® Alfalfa, including insight from Everett Williams
- Introduction of AmeriStand 480 HVXRR
- General alfalfa management
discussion
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GA Dairy Classifieds
HELP WANTED:
Farm and Livestock Supervisor for the Georgia Corrections Industries Dairy
located at the Rogers Farm Operations, Reidsville, Ga. Overview of duties include but not
limited to managing a farm and livestock operation. Supervise staff and inmates. Perform
administrative duties and oversees land, equipment and vehicles. For a more complete detail
of the job and how to apply please go to
gdcjobs.com., Georgia Corrections Industries.
FOR HIRE: Dairy in Gay, GA, is seeking an experienced milker/farm hand. Dairy milks two times a day. Housing is provided. For information contact Jeff Busciglio at 813-220-7072 or email at jsb280@yahoo.com
For Hire: Dairy in Gay, GA, is seeking an experienced milker/farm hand. Dairy milks two times a day. Housing is provided. For information contact Jeff Busciglio at 813-220-7072 or email at jsb280@yahoo.com
FOR SALE:
TRIOLIET SOLOMIX 2 1600 ZKT
- TANDEM AXLE
- DIGI STAR 3600V SCALE
- RIGHT-LEFT-REAR DOORS
- NEW HARD FACING ON AUGERS
- NEW KNIVES
For information contact Jim Reid at
or email at jim@reidbros.com
FOR SALE:
Coastal Hay for sale. $50 for 4 x 5 round bales or $6 a square bale. Contact Ryan Keith in Waynesboro at 803-627-0762.
WANTED: Looking to purchase 300 to 500 lb Holstein heifers. Please call Ray Ward at
FOR SALE: Kuhn 1014 Manure Spreader for $9,000 - Contact Randall Ruff, Elbert County, at 706-498-4344
FOR SALE:
20 Calftel Calf Hutches for $200 each - Contact Randall Ruff, Elbert County, at 706-498-4344
FOR HIRE: Custom Silage Harvesting. Late model JD chopper. Will travel. Let me put your quality forage up! Nic Haynes, Muddy H Farms, 678-617-3379.
FOR SALE:
We have a continuous selection of fresh and springing heifers.
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For 2016, Georgia Milk Producers, Inc. has once AGAIN been named an All Star Award winner by
Constant Contact, Inc.
, the trusted marketing adviser to hundreds of thousands of small organizations worldwide. The annual award recognizes the most successful 10% of Constant Contact's customer base, based on their significant achievements leveraging online marketing tools to engage their customer base and drive results for their organization.
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