18 minute read
Mielke Market Weekly
This column was written for the marketing week ending July 2.
The U.S. Department of Agriculture recently announced the June Federal order Class III milk price at $17.21 per hundredweight. This is down $1.75 from May and $3.83 below last year’s Covid-driven benchmark. The sixmonth Class III average is at $16.96, up from $16.09 at this time a year ago and $15.25 in 2019. MIELKE MARKET WEEKLY compares to $15.98 in 2019. n year’s herd by an incredible 145,000 head. The continued rising feed prices could not be offLate morning on July 2, Class III futures showed July at $16.79; August, $16.77; September, $17.35; October, $18.11; November, $18.26; and December $17.98. The June 30 Daily Dairy Report points out that extremely dry weather has withered crop potential in some of the key growing regions of the country. By Lee Mielke set by the higher all milk price in May, so the slide in the U.S. milk feed ratio resumed after pausing in April. The USDA’s latest Ag Prices report showed the May ratio at 1.69, down from 1.75 in April, and compares to 1.78 in May 2020. The Class IV price is $16.35, up 19 cents from May, $3.45 above a year ago, and the highest Class IV price since January 2020. The Class IV average stands at $14.84, up from $13.78 a year ago, and Dairy farmers are watching this closely, as feed costs are expected to be the highest in years and perhaps in a decade. That could result in drops in milk output, particularly in the western states, and The U.S. all milk price averaged $19.20 per cwt., up 80 cents from April and $5.50 above the May 2020 average. The national average corn price hit stop the U.S. herd from growing, after topping last See MIELKE, pg. 13
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PRAIRIE MEATS, from pg. 11
know their schedules … we just consider them an important part of our total team. They’re checking paper work, procedures, sanitation, cleanliness and labeling. There are many, many details when your products carry the USDA label. And that’s okay with us — and our customers too.
The USDA inspectors show up for slaughter three days a week. Prairie Meats does beef on Tuesdays and Thursdays, hogs on Wednesdays. They will typically process six beef and 10 to 12 hogs per processing day. Private labeling for a given customer takes a bit longer due to vacuum packaging, private labeling, etc.
Tony gave a quick rundown on private labelling. “Our niche marketing provides opportunity for local producers to sell their own critters into their own market,” he said. “I recall my Dad’s cattle feeding days. Take pride in what you do; then get whatever the packers decide to give you. “We like to line up our critters three to four weeks ahead of actual processing. This means booking animals from specific producers for their own custom-
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ers. Yes, this ‘private label’ business for specific customers gets a bit complex. But we don’t mind. Customers appreciate the service and it’s key to our growing business too.
“Our biggest challenge is using the whole animal,” Tony went on to say. “For example, if we’re filling a big order for a restaurant wanting only steaks, we’ve got lots more carcass to handle. And that’s one big reason for the retail counter up front. Bridget Engstrom and Cassie Zamerron manages that end of the business. We’ve got about 160 different products up there.”
“However, for special orders — such as restaurants, community feeds, or special family events, we can also purchase direct from an area packer — then package as needed. So combined with our own inhouse processing, boxed beef from area packers enables us to fill virtually any demand.”
For the most part, Red Angus beef reigns at Prairie Meats. “That’s what we mostly feed out on the farm,” Tony said. “But we do Blacks too because there are lots of them around. But I like the Red Angus. They marble well, are calmer cattle and just nice to work with.”
Lambs and goats might soon be added to the agenda of Prairie Meats. “We’re always looking at other options,” Tony stated. “We could slaughter and package on Monday without interrupting our regular beef and pork schedules.”
With a chuckle, Heidi added, “Tony says he lets his mind rest occasionally, but it seems he’s usually got something cooking up there too!” “Most of what I learned has been from the school of hard knocks … learning from mistakes as they say. But it’s been rewarding too! If I were asked ‘would I do it again?’ I’d probably say no. However I enjoy this work. I’m proud of our team. We have fun together. And we’re so pleased with the growing amount of highway traffic that now makes Prairie Meats a regular stopping place.
“We have goals each month. Reach our goals and everyone shares the goodies. As you can see, great employees are the life-blood of our business. That’s why spiffs are important to each and every employee. I view Prairie Meats as their business too.”
Heidi shares the ‘total team’ joy of this operation. “I’m very satisfied. It’s going good. We’ve got a great team. Each one of them and their families are important to us. There’s lots of comradery and that’s what makes coming to work each day a treat!”
“Customers start showing up just as soon as we open our doors,” commented Cassie Zamerron of the retail counter at Prairie Meats. “We’re not open on weekends — that’s Tony’s way of being fair to all of us employees … weekend family time for us too. “And if we don’t have a particular product that customer is looking for, we recommend a substitute and that usually is okay. Once folks get into the store, they are amazed at the variety of products — be that fresh meats, frozen meats, and our always-popular smoked barbequed beef sticks. Ground beef and ground pork are versatile….you can readily intermix the two. Like for graduation parties, if you want the most bang for your buck, I often suggest ground pork. Its cheaper and tastes just as good.”
Zamerron definitely agrees meat shoppers — especially ladies — are getting more particular about their meat purchases. She also thinks seeing so many different meats once they step inside the store impacts their decisions. “We women simply want our meals to taste the best. And that usually starts with the meats.” v
MIELKE, from pg. 12
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what its effects will be on the dairy industry and Cheese production remains busy in the Midwest, $5.91 per bushel, up 60 cents per bushel from April, after jumping 42 cents the previous month, and is a budget busting $2.71 per bushel above May 2020. Soybeans averaged $14.80 per bushel, up 90 cents from April, following a 70 cent rise a month ago, and is a whopping $6.52 per bushel above May 2020. Alfalfa hay averaged $194 per ton, up $7 from April and $15 above a year ago. n Record-breaking blistering heat pounded the Pacific Northwest and lower mainland of British Columbia, Canada early this week. Temperatures soared well over 100 degrees, a rare sight in this part of the United States. The phenomenon was termed a “heat dome” — seen once every 1,000 years. Sections of Washington State highways even buckled, including one just a few miles from my home. The heat extended into Oregon and California and was drawing much attention as to many others. In the week ending June 19, 53,200 dairy cows were sent to slaughter. This is up 600 from the previous week and 500 or 0.9 percent above that week a year ago. The May cull price for beef and dairy combined averaged $70.80 per cwt., down 30 cents from April, $2.50 above May 2020, but 80 cents below the 2011 base average of $71.60 per cwt. Dairy prices ended June and entered the July 4 holiday weekend a bit mixed, as traders anticipated the July 2 May Dairy Products report and the July 6 Global Dairy Trade auction. The cheddar blocks closed July 2 at $1.5550 per pound (the highest since May 27), up 6.5 cents on the week, but $1.12 below a year ago. The barrels finished at $1.50 per pound, up a penny, 91.5 cents below a year ago, and 5.5 cents below the blocks. Two cars of block were sold on the week and 17 of barrel. See MIELKE, pg. 14 according to Dairy Market News. Inventory growth is a concern but, given the amount of milk being produced, cheesemakers have no other option than to take advantage of the $6 under Class III discounts. Spot milk purchasing the previous week was strong but this week may have been even busier, as spot offers flowed in. Some contacts expect things to tighten up a bit following the holiday weekend. Cheese sales remain mixed but steady and cheese market tones are a little steadier. Cheese demand in the west was higher this week as contacts reported increased purchasing leading up to the holiday. Export demand is strong as the lower prices are favorable to international purchasers but market tones are steady to firming. Cheese producers are running full schedules, as milk is readily available. Barrel holdings, which were notably tight near the beginning of June, have loosened in recent weeks. A shortage of truck drivers and
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MIELKE, from pg. 13
port congestion, however, continues to cause delays to loads in the region, says Dairy Market News.
Cash butter started the week strong, jumping a nickel, a likely response to the reports of the heat in the west, but it closed July 2 at $1.74. This is up 2.25 cents on the week and a quarter-cent above a year ago, with 26 sales reported for the week.
Midwest butter makers were finding cream at preholiday bargains, reports Dairy Market News, and showed a spike in availability as the weekend approached. Butter demand has seemingly taken a holiday, says Dairy Market News, and producers relay that buyers’ interests edged lower this week. “Steady inventory growth and unprecedented demand ebbs and flows the past year have markets awaiting direction.”
Cream supplies are steady in the west despite the high temperatures but most is staying relatively local as tanker shortages continue to curtail movement. The record-setting heat caused some butter makers to run shortened schedules. Inventories are “fairly stable,” says Dairy Market News. Retail butter orders are seasonally soft but steady. Food service demand is strong but leveling off though a handful of full service outlets have not yet returned to pre-pandemic levels of operation.
Grade A nonfat dry milk saw its July 2 closing at $1.2575 per pound, down three-quarter cents on the week, but 24.75 cents above a year ago.
See MIELKE, pg. 19
Extension provides drought management update
ST. PAUL — As of the end of June, all of Minnesota was officially in some stage of drought. Generally speaking, the southern half of the state is in poorer shape than the north, with a few exceptions. Although cash crops appear to be in pretty good shape thus far, pastures and hayfields are not; and they are getting worse by the day.
At this point, it is probably a good idea for beef cattle outfits to start getting a plan together to deal with the fact that they are likely going to run out of summer grass. The key to successful drought management lies in executing your plan before the situation becomes absolutely critical. Here are few considerations for managing your herd in these conditions.
Surface water — In many areas, surface water is the main source of water for grazing cattle. In most instances, small bodies of surface water are dried up or nearly dried up, which creates several major problems. First, as water holes start to dry up, cattle have nothing to drink. This, of course, can be remedied if a live water tap is close by to fill tanks. If a live water tap is not available, moving cattle out of the pasture or hauling water may be your only alternatives for the short-term.
Keep in mind that a cow will drink 20 gallons and calves 5 to 8 gallons per day before you make that decision. That is a lot of water to haul, and you can’t let them run out. A cow can go a couple days with no water, which is not the issue. The issue is trampled calves at the tanks when you start dumping fresh water. If you are going to haul water, start hauling well in advance of natural surface water running out so cows have a chance to establish their new pecking order before it becomes a dire situation.
An additional consideration as far as new water supplies go is that cows will continue to return to the old pond even after it is dried up. This is generally disastrous for calves who become bogged in the silt at the bottom of the pond bed. Once the new water supply is established, it might be useful to fence out the old water with a strand of hot wire to keep cattle out of the silt bed.
Creep feeding calves — Creep feeding calves could be a possible grass-saver for some outfits. Feed is expensive right now, but it may be the only option remaining before carving up the herd. Keeping calves on a low to moderate energy creep will reduce grass intake by as much as 20 percent. If you are considering putting some creep feed out for calves, check out this guide by Dr. Rick Rasby at the University of Nebraska for information on possible feed formulations: https://extensionpublications.unl. edu/assets/pdf/g2077.pdf
Culling cows — Selling cows is not something any rancher wants to do — especially mid-summer. Most cow outfits in Minnesota need to start thinking about trimming the need for grass right now. We are past the point in the growing season where additional rain is going to restore things to normal for this year. Rain will certainly help, but grass yields will still suffer tremendously, even with good rains.
When thinking about pruning the cow herd, don’t wait until you’re out of grass. The cards have been dealt, and it’s time to play them. The majority of cow herds can be kept intact if 10 to 25 percent of the herd is liquidated now.
If you bred early, you could preg check early and sell opens and late breds. There is no reason to keep feeding the opens, and late calving cows are the least profitable in your herd.
Sell the oldest cows first. Even if they are still decent cows, they are the least valuable to your remaining cow herd. If you don’t have many older cows, cut into the older end of the running age cows (6 to 8 year olds) next. If you still need to trim some mouths, consider cutting into the replacement heifers. This will leave you a core group of your most valuable running age cows (3 to 6 year olds).
Selling pairs or bred pairs isn’t going to be much of a possibility this summer. Things may change, but this drought extends over 75 percent of cow country right now, so there won’t many farmers looking for more mouths to feed. Early weaning calves might be the way to go for many outfits.
Early wean calves — Early weaning calves is an option some outfits may consider to lighten the load on remaining grass. This practice has been shown to reduce grass intake of cows by about 25 percent. Calves can be successfully weaned at about 90 days of age and started on feed relatively easily — particularly if they have been creep fed prior to weaning. Nutrition is the key component to a successful early weaning program. Consult a nutritionist to formulate a least-cost ration specific to feed ingredients you have on hand.
Other major considerations for early weaning include performing standard vaccinations prior to weaning, controlling dust to mitigate dust pneumonia potential, and adequate fly control. Hot weather has been a significant component of this drought, and heat stress should be managed appropriately to reduce stress in calves as much as possible. Focus on providing shade and plenty of clean water for calves. Although selling fly-weight calves right off the cow is an option, it’s not going to be a good option for most producers. Feeding them for a while will give you some flexibility to figure out a marketing strategy.
Pest control — Pest control is a key component of good management every year, but becomes even more important in drought years. Cows and calves are hounded relentlessly by biting flies, face flies, mosquitoes and ticks in a pasture setting, and dry weather tends to make it worse. Cattle use a lot of energy fighting flies, and tend to bunch which makes heat stress worse. Thus providing some relief from flies to cattle on grass or in drylots will help keep cattle more comfortable. Dust bags, oilers, rubs, and fly tags are all options for good pest control, provided they are kept fresh and current.
This article was submitted by University of Minnesota Extension educator Eric Mousel and Joe Armstrong. v
