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www.thelandonline.com — “Where Farm and Family Meet”
THE LAND — MARCH 4/MARCH 11, 2022
Global milk output is shrinking, deficits getting bigger session of gain. This column was written for the marketing week ending March 4. Traders brought 55.6 million pounds of product to the market, down from 61.1 Volatility was the word of the day, the million on Feb. 15 (the lowest since Sept. week, and the hour, as the war between 21, 2021), but the average metric ton Russia and Ukraine rages on — raising price climbed to a record high $5,065 havoc in every market, not to speak of the U.S., the highest since Feb. 14, 2014. devastation on innocent human life. GDT cheddar led the way, up 10.9 perStoneX Dairy Group broker Dave cent, following a 3.5 percent rise on Feb. MIELKE MARKET Kurzawski said in the March 7 “Dairy WEEKLY 15. Butter followed, up 5.9 percent, after Radio Now” broadcast that markets are rising 5.1 percent last time. Buttermilk currently focusing on the worst-case sceBy Lee Mielke powder was up 5.8 percent and whole narios and hopefully, calmer heads milk powder was up 5.7 percent after will prevail. advancing 4.2 percent in the last The U.S. Department of event. Skim milk powder was up 4.7 Agriculture announced the February percent following a 6 percent jump. Federal order Class III benchmark milk price at Anhydrous milkfat was up 2.1 percent following a $20.91 per hundredweight. This is up 53 cents from 1.2 percent rise, and lactose was up 0.9 percent. January, $5.16 above February 2021, and the highStoneX Dairy Group says the GDT 80 percent butest Class III price since November 2020. terfat butter price equates to $3.1359 per pound Class III futures as of late morning March 4 had U.S., up 17.7 cents, after jumping 14.5 cents on Feb. the March contract at $22.38; April, $23.43; May, 15, and compares to Chicago Mercantile Exchange $23.48; with the peak in June at $23.61 before butter which closed March 4 at a real steal of heading down. $2.6850. GDT cheddar, at $2.9002, was up 23.3 The Class IV price is a record $24.00 per cwt., up cents after gaining 8.9 cents on Feb. 15, and com91 cents from January, $10.25 above a year ago, and pares to March 4’s CME block cheddar at $2.15. topped the previous record of $23.89 in Aug. 2014. GDT skim milk powder averaged $2.0328 per “The wheat markets are on fire,” says StoneX and pound, up from $1.9482. Whole milk powder averimpacting other commodities. Milk prices are also aged $2.1578 per pound, up from $2.0424. CME climbing — but they need to, says Kurzawski, in Grade A nonfat dry milk closed March 4 at $1.8725 order for producers to pay the higher feed and fertil- per pound. izer costs ahead. $20 dollar milk would normally n portend a response of more milk, he said, “But that’s The Daily Dairy Report’s Sarina Sharp wrote in not the case right now; and if corn goes to $8 or $9, the Feb. 25 Milk Producers Council newsletter, $22 milk is not going to be enough.” “Global milk output is shrinking and deficits getting Markets are on edge worldwide and that was evibigger. In December, milk production among the denced in the March 1 weighted average at the world’s five largest dairy exporters fell 1.3 percent Global Dairy Trade auction. Prices were up 5.1 perbelow December 2020. That’s the steepest decline in cent — the biggest boost since the 15 percent pole five years — dating back to 2016 when European vault on March 2, 2021, and the fifth consecutive governments paid dairy producers to pare back pro-
MARKETING
duction. The deficit likely got even bigger in January. Australia and Europe have yet to report January output, but losses accelerated elsewhere.” Meanwhile, the National Milk Producers Federation and the U.S. Dairy Export Council rejected a proposal this week by Global Affairs Canada that “outlines Canadian ‘changes’ to their current scheme for allocating U.S.-Mexico-Canada Agreement dairy tariff-rate-quotas.” Michael Dykes, D.V.M., president and CEO of the International Dairy Foods Association, agrees and called the plan “a nonstarter.” You’ll recall the U.S. Trade Representative announced last month it had won USMCA’s firstever dispute settlement panel by prevailing in its case against Canada regarding how Canada’s USMCA dairy TRQ allocation process violated the agreement. Ambassador Tai noted, “This historic win will help eliminate unjustified trade restrictions on American dairy products and will ensure that the U.S. dairy industry and its workers get the full benefit of the USMCA to market and sell U.S. products to Canadian consumers.” NMPF says this a “test-case for whether or not the USMCA dispute settlement process can provide effective enforcement and deliver genuine compliance with the agreement.” n CME block cheddar closed the first Friday of March at $2.15 per pound, up 20.5 cents on the week (the highest since Nov. 11, 2020) and 41.75 cents above a year ago. The barrels closed at $1.97, which is 7 cents higher and also the highest since Nov. 11, 2020. The barrel price is 46.25 cents above a year ago, and 18 cents below the blocks. The CME saw 10 cars of block trade hands on the week, 16 in the month of February, down from 18 in See MIELKE, pg. 15
Survey seeks to boost markets for smaller farms ST. PAUL — If you’re a farmer who sells your food directly to consumers, grocery stores, restaurants, distributors, and others, a Statewide Cooperative Partnership for Local and Regional Markets led by the Minnesota Department of Agriculture and University of Minnesota wants to hear from you this spring. A recently released survey asks small, mid-sized and emerging farmers to share their experiences operating farms and selling in direct-to-consumer and direct-to-institution markets such as farmers’ markets, U-Pick, CSAs, and schools. Once collected, data will be analyzed collaboratively by the Partnership’s more than 40 member organizations. Results will help identify market trends and opportunities, support the development of
programs and services such as the MDA’s Minnesota Grown program, and strengthen recommendations to the Minnesota Legislature to support historically underrepresented and under-supported farmers, Agriculture Commissioner Thom Petersen said. “We want to build on the partnerships we have with local and regional markets to help farmers, retailers, public institutions, and consumers in Minnesota,” he said. “This is a real growth opportunity for our ag economy in the coming years, and we need to understand how we can support it.” According to the 2017 Census of Agriculture, Minnesota has about 3,500 farms that sell directly to consumers, while more than 630 sell directly to retail outlets such as grocery stores, restaurants, schools, and other institutions. These sales generate an esti-
mated $184 million in economic activity each year. The survey, available now for Minnesota farmers and ranchers involved in direct sales, is designed to report on the nuances of smaller producers and their primary markets that are not captured by the ag census. The Partnership survey takes less than 30 minutes and respondents will be compensated for their time. To take the survey, go to https://z.umn.edu/statewide-producer-survey More information is available at https://umn.qualtrics.com/jfe/form/SV_2gXiNaErrvIEwE6 This article was submitted by the Minnesota Department of Agriculture. v
