News for Dairy Co-Ops - April 9, 2010

April 9, 2010
  Volume 68. No. 4
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CME Cheese Prices Rise after CWT Activates Export Program

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CME Cheese Prices Rise after CWT Activates Export Program

Cooperatives Working Together (CWT) reactivated its Export Assistance program to boost sales of U.S.-made cheddar cheese. Block cheese prices have risen by 25 cents per pound since the announcement on March 18.

Last used in 2008, CWT's Export Assistance Program assists member cooperatives with exporting eligible dairy products and establishing overseas markets for their members' milk. While the program had, in the past, exported whole milk powder, butter, and butterfat, the focus in the short-term was on cheddar cheese, as this would have the most impact on farm-level milk prices.

“After conducting a thorough economic analysis, it was clear that implementing the Export Assistance program and focusing on cheddar cheese could provide the most immediate positive signal to address continuing low producer milk prices,” said Jerry Kozak, President and CEO of NMPF, which manages CWT. “Given the smaller spread between U.S. and global cheese prices, and given the sizeable inventories of cheese that are hampering a recovery in milk prices, using CWT’s export program will be expedient and effective.”

While the program had previously exported 186 million pounds of dairy products to 55 countries, CWT advised its members that it would provide additional incentives for sales to the target markets of Japan, Algeria, Egypt, Saudi Arabia, and Australia. CWT believed these were prime markets for sales of significant quantities of cheddar cheese, although it would consider bids for sales to other markets as well.

Cooperatives seeking assistance submit a bid specifying the product to be exported, the quantity of product, the end customer, the country in which the customer is located, and the amount of assistance per metric ton of product needed to make the sale. CWT and U.S. Dairy Export Council (USDEC) staffs evaluate each bid received against world market conditions and the world product prices. If they determine that the assistance requested is reasonable, the bid is accepted. The cooperative does not receive payment from CWT until paperwork is submitted showing that the product has been delivered to the customer.

 

Deadline Approaching for NMPF's 2010 Scholarship Program

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Deadline Approaching for NMPF's 2010 Scholarship Program

Interested students have two weeks left to submit applications for the National Dairy Leadership Scholarship Program.

Each year, NMPF awards four to five scholarships to outstanding graduate students (enrolled in Masters or Ph.D. programs) who are actively pursuing dairy-related fields of research that are of immediate interest to NMPF member cooperatives. Graduate students pursuing research of direct benefit to milk marketing cooperatives and dairy producers are encouraged to submit an application (applicants do not need to be members of NMPF to qualify). The top scholarship applicant will be awarded the Hintz Memorial Scholarship, which was created in 2005 in honor of the late Cass-Clay Creamery Board Chairman Murray Hintz, who was instrumental in establishing NMPF's scholarship program.

Recommended fields of study include but are not limited to agriculture communications and journalism, animal health, economics, environmental science, food safety, genetics, herd management, marketing and price analysis, nutrition, and product development. Applications are due no later than Monday, April 26, 2010. For an application or more information, please visit the NMPF website or call the NMPF office at 703-243-6111.

 

Joint ABI/ADPI Annual Meeting to be held April 25-27, 2010 at the Hyatt Regency in Chicago, IL

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Joint ABI/ADPI Annual Meeting to be held April 25-27, 2010 at the Hyatt Regency in Chicago, IL

The 2010 Annual Conference of the American Dairy Products Institute (ADPI) and the American Butter Institute (ABI) is just three weeks away. Record attendance is projected for this year’s conference, which will be held in Chicago, Illinois, from April 25–27 at the Hyatt Regency Chicago.

The 2010 Conference will feature two full days of outstanding speakers and informative programs on current industry topics. There will also be abundant opportunities to network with over 750 senior level executives from manufacturers, marketers, suppliers, distributors, and brokers of manufactured dairy products. Other registered attendees will include industry analysts, journalists, key government officials, and trade exhibitors.

Information about the 2010 Conference is available at the official conference website, www.adpi.org, which includes online registration and exhibitor registration forms. Additional details may also be obtained by contacting ABI (www.butterinstitute.org) at 703-243-5630 or by email at AMiner@nmpf.org. The current agenda for the 2010 ADPI/ABI conference is also available on the website.

“The ABI and ADPI meeting remains a crucial opportunity for dairy industry leaders to discuss where the industry is going in the future, and that need is all the more urgent in today’s changing global and business climate,” said Jerry Kozak, Executive Director of ABI.

 

New Somatic Cell Certification Requirements to Take Effect on Exports to EU

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New Somatic Cell Certification Requirements to Take Effect on Exports to EU

NMPF, along with other representatives across the dairy industry, met last week with USDA and the U.S. Trade Representative (USTR) regarding the new EU export certification requirements that take effect October 1, 2010. These new requirements change the 400,000 somatic cell count requirement from sampling at the processor-level (co-mingled milk), to individual farms. Details related to these requirements were provided to members last week.

Moving forward, NMPF will work with the U.S. Dairy Export Council (USDEC) to present USDA with a reasonable and workable interpretation of what would satisfy compliance with the new EU regulations, and allow USDA to continue issuing certificates. NMPF will also be coordinating with the International Dairy Foods Association (IDFA) and the American Dairy Products Institute (ADPI) throughout that process. Additionally, we will continue to work with USTR as they initiate a dialogue with the EU regarding the WTO compliance of this requirement.

 

NMPF Continues to Develop Foundation for the Future Program

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NMPF Continues to Develop Foundation for the Future Program

NMPF’s major restricting of dairy policy, entitled Foundation for the Future, continues to develop momentum. The three subcommittees that are fleshing out details of the various programs – producer income insurance, production management, and Federal Order reform – have met repeatedly over the winter, and will continue to finalize details of their respective proposals.

The NMPF Board of Directors received a status update on the Foundation effort at its meeting last month, and directed the association’s staff to finalize the package in time for the next Board meeting in June.

The concepts behind the Foundation for the Future have been presented at several dairy conferences recently, including the Western United Dairymen annual meeting, the 2010 Wisconsin Dairy Policy conference, and the Dairy Farmers of America convention. In addition, Pennsylvania dairy farmer Lauren Mosemann will present a summary of the program at a House Agriculture Committee hearing April 20th in Harrisburg, PA.

 

NMPF Testifies at House Hearing in Favor of More U.S. Dairy Exports to Cuba

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NMPF Testifies at House Hearing in Favor of More U.S. Dairy Exports to Cuba

On March 11, NMPF testified in favor of a recently introduced House bill that would foster additional U.S. agricultural exports to Cuba, and permit open travel for all Americans to that nation.

NMPF Board member John Wilson (in the photo), who is Sr. Vice President of Marketing & Industry Affairs for Dairy Farmers of America, urged support for the Travel Restriction Reform and Export Enhancement Act (H.R. 4645). The legislation is being championed by House Agriculture Committee Chairman Collin Peterson and Representative Jerry Moran of Kansas. The legislation presently has 37 additional co-sponsors supporting it.

“NMPF believes that efforts to help regain the exports we lost last year are essential to helping farmers and putting the U.S. dairy industry on a firmer footing going forward,” said Wilson. “H.R. 4645 represents one such positive step in the right direction to increase demand for U.S. dairy products.”

The bill would establish clarity and predictability regarding the “cash-in-advance” provision of the Trade Sanctions Reform and Export Enhancement Act (TSREEA) by ensuring its interpretation according to the original intent of Congress to allow for payment in a manner that did not impede trade, while also not offering the extension of credit to Cuba. Prior interpretations of this provision have hampered U.S. dairy exporters’ ability to ship product to Cuba in a safe and cost-efficient manner, Wilson said.

The legislation would also remove a costly and unnecessary burden on U.S. agricultural exporters by allowing payment to pass from Cuba directly to U.S. banks in place of the current, more costly requirement that payments be routed through banks in other countries.

In closing, said Wilson, “We look forward to enjoying the impact this legislation would have on our ability to more easily provide the Cuban people and those Americans wishing to travel to Cuba with the nutritious and safe foods that we produce in such abundance here in the United States.”

 

CEO'S CORNER

Dietary Science is Awakening from a 50 Year Sleep

Jim Mulhern
NMPF President & CEO

Associate Member Focus:

 

T.C. Jacoby & Co. serves several thousand customers, from small, proprietary firms to international food production giants. Jacoby distributes dairy products on a broad scale and the firm provides customers with the expertise required, no matter what the size, to best serve their needs.

Since it was founded, T.C. Jacoby & Co. has grown to become one of the most prominent companies in the industry. T.C. Jacoby & Co. now markets numerous dairy products in all 48 contiguous states as well as around the world.

T.C. Jacoby & Co.’s mission is to be the world's leading supplier of dairy ingredients for food and feed products. They will deliver the highest level of quality and service to every customer, exceeding their expectations for trust and loyalty. T.C. Jacoby & Co. is committed to increasing the profits of our customers, while improving the equity of our company.

Their company representative is Ted Jacoby. To learn more about T.C. Jacoby, please visit their website at www.jacoby.com.