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MILKER’S MESSAGE www.thelandonline.com — “Where Farm and Family Meet”
THE LAND — JANUARY 21/JANUARY 28, 2022
China’s need for whey is waning
This column was written for the marketing week ending Jan. 21. If there was any doubt about strength in the global dairy market, it was erased in the second Global Dairy Trade auction of 2022 (its 300th trading event). The weighted average jumped 4.6 percent (the News and information for Minnesota and Northern Iowa dairy producers biggest increase since March 2) and followed the 0.3 percent rise on Jan. 4, and StoneX, which was stronger than the the week at the CME and two of barrel. MIELKE MARKET the 1.5 percent fall on Dec. 21. minus-1.3 percent they forecast. “Exports WEEKLY StoneX says it hears continued reports of tight to China are still rather weak, seeing a Traders brought 67.6 million pounds of butter and nonfat dry milk, but not cheese. “Cheese By Lee Mielke month-to-month decrease of 23 percent,” product to market, with the average price demand is likely strong,” StoneX stated, “but we says StoneX, “but other countries such as have cheese out there to meet that demand. That climbing to $4,463 U.S. — the highest Indonesia, Nigeria, Philippines and the United since March 2014. seems to be the narrative developing this week and States are making up for that. Shipments to spot prices are reflecting that narrative.” All products offered were in the black; led by Indonesia rose 57 percent month-to-month and up whole milk powder, up 5.6 percent after holding Traders await the December Milk Production and 38 percent year-on-year. Some of the largest monthsteady on Jan. 4. Skim milk powder was up 5 perCold Storage reports which were issued after this to-month gains were butter, yogurt and whey procent following a 1 percent increase, and butter was writing — Jan. 24. tein isolates. Liquid milk exports were down from up 5 percent after inching 0.3 percent higher. the previous month but are still strong on a yearDairy Market News reports that milk availability Anhydrous milkfat was up 0.6 percent after slipping on-year basis.” varied in the Midwest. Plants running fully staffed 0.7 percent last time. Cheddar was up 1.1 percent operations say milk is available; but the discounted n following a 4.9 percent jump. prices of $3 and $4 under Class are no longer being Dairy prices here at home strengthened (except StoneX Dairy Group says the GDT 80 percent butoffered. Still, there are plants running lighter lines, for cheese) during the Martin Luther King holiday- as employees are short due to Covid-related absencterfat butter price equates to $2.7252 per pound shortened week. The cheddar blocks closed Jan. 21 U.S. This is up 12.8 cents and compares to Chicago es. Cheese sales were slowing, according to some, as Mercantile Exchange butter which closed Jan. 21 at at $1.8075 per pound. This is down 11.25 cents on prices rose and “market tones are lacking the bravathe week (the lowest since Nov. 18) 24.5 cents below do of prior weeks.” $2.935. GDT cheddar, at $2.5157, was up 2.7 cents its Jan. 12 peak, but 19.75 cents above a year ago and compares to Jan. 21’s CME block cheddar at a Retail cheese demand is steady to lower in the when they fell 11 cents to $1.61. real bargain $1.8075. GDT skim milk powder averWest while food service is mixed. Contacts note that aged $1.7977 per pound, up from $1.7114. Whole The barrels, after peaking at $1.96 on Jan. 14, rising Covid cases in the region have caused a milk powder averaged $1.8517 per pound, up from closed this week at $1.8125 which is down 14.75 decline in sales. Food service mozzarella sales are, $1.7536. CME Grade A nonfat dry milk closed Jan. cents, 42 cents above a year ago, and a half-cent See MIELKE, pg. 17 21 at $1.815 per pound. above the blocks. There were four sales of block on StoneX’s Dustin Winston says North Asia (which includes China) buyers continue to seem hesitant. Market share was up just slightly from the last event, but remain well below last year’s levels. The Middle East picked up a large share of whole milk powder, according to Winston. n ST. CLOUD, Minn. — With the howling winds, components in the structure of a building. Insects Speaking of China, December dairy imports fell a enthusiastic snowfall, and bone-rattling cold from can also cause significant damage throughout the combined 13.4 percent from December 2020, accord- these past several weeks, many livestock producers facility. These kinds of relatively minor repairs don’t ing to HighGround Dairy’s analysis; but adds the are evaluating their facilities. All producers strive for necessarily warrant a brand spanking new building; caveat, “While there is a lot of red on the table, it is the optimal environment, but many of us adapt our but do deserve repair and a fix-it date on the schedimportant to remember the data is compared to a facilities to meet our needs — picking and choosing ule soon. If damage is severe, it may not be worth record December in 2020 — with December 2021 renovating. our battles. the second-highest ever observed despite the yearNext on any evaluation checklist is seeing if the Here are some key areas to evaluate in your dairy over-year losses.” cattle barn to determine if your facilities are provid- facility provides a clean and comfortable resting Whole milk powder imports took the biggest hit, area, with free access to feed and water, as well as ing the best environment for your top producers. says HighGround Dairy, down 38 percent. Skim Naturally, before moving on to new shiny facilities proper ventilation. Bank and two-story barn styles milk powder was down 21.6 percent, and whey prodwith all the bells and whistles, it is best to evaluate can make it difficult (or impossible) to deliver feed in ucts were down 31.9 percent — a 20-month low. what facilities are already on-site. Dairy producers a TMR wagon (easing feed delivery with herd expanBloomberg reports China’s hog herd has rebound- should first ensure that the barn is structurally sion). This feature of older barns limits access, added and is now at a six-year high of 449 million. So sound. Barns in central Minnesota that are solid as a ing labor and complicating animal access to feed and with the country no longer aggressively building rock, made to stand the test of time, may suffer dam- water. These styles are not typically easy renovatheir herd, there has been a slowdown in whey age from continually high moisture levels, poor ven- tions; but adjustments can be made (usually limited demand for piglets. tilation, or the perpetually leaky roof. This could by the second-story floor joist system). This article was submitted by Dana Adams, easily contribute to the deterioration of wood strucStaying in the global market, EU November v exports were up 1.7 percent from 2020, according to tural components and iron-based fasteners — key University of Minnesota Extension.
Where to look when evaluating dairy facilities
