THE LAND — JUNE 24/JULY 1, 2022
www.thelandonline.com — “Where Farm and Family Meet”
PAGE 11
Current inflation will definitely impact dairy demand This column was written for the marketcheese was up 2.8 percent. Certainly, ing week ending June 17. domestic demand conditions have worsened since then. Data from technology This week was shy of new information firm OpenTable shows foodservice sales for the market to feed on with respect to are again trending lower. The company U.S. Department of Agriculture reports. says the number of sit-down visitors was Traders were anticipating the May Milk down 4.7 percent from 2019 levels during Production report on June 21 along with the latest week.” But on the bright side, that morning’s Global Dairy Trade for the Analyst says, “International sales are fresh news. In an effort to put a patch on MIELKE MARKET still rocking.” a gaping and growing hole called inflaWEEKLY tion, the Fed announced a 75 basis point Looking specifically at April commerBy Lee Mielke interest rate hike this week — the cial dairy product disappearance, biggest increase since 1994. Chicago total cheese slipped to 1.17 billion Mercantile Exchange cheese prices pounds, down 2.7 percent from April plummeted the next day, though 2021. HighGround Dairy points out fresh cheese is more available. this was the first year-over-year decline since September. Domestic use was down 3.1 Speaking in the June 20 “Dairy Radio Now” broadpercent from a year ago while exports were up 2.4 cast, StoneX broker Dave Kurzawski said the immepercent. diate effect is the increased cost to building and holding inventories, “as if anyone wants to hold $3 Butter disappearance totaled 172.3 million per pound butter and $2.20 cheese.” pounds, up 8.8 percent, though year-to-date was still down 2.4 percent. Domestic disappearance was the The big question is what it means for dairy driver, says HighGround Dairy, up 10.2 percent, demand, he reasoned. “Every 10 percent change in while exports were down 10.1 percent from a robust household income, historically, results in a 4.5 peryear ago total. cent change in retail dairy demand. There is going to be an impact on dairy demand,” he concluded, Nonfat-skim milk powder, at 221 million pounds, “We just don’t know exactly when that is going to was down 10.4 percent. HighGround Dairy points arrive.” out that domestic disappearance was the lowest for the month on record, with data going back to 2011, The June 10 Dairy and Food Market Analyst and down 19.9 percent from a year ago, with yearwarned, “The domestic demand environment looks to-date down 27 percent. Exports were down 6.4 like it is weakening. If you believe USDA figures, commercial usage of butter was down 3.7 percent in percent from a year ago and down 7.8 percent yearto-date. the three months ending April, while usage of
Dry whey disappearance amounted to 79 million pounds, down 2.1 percent, with domestic use up 20.3 percent, while exports were down 18.8 percent. April sales of U.S. packaged fluid milk products totaled 3.6 billion pounds, down 2.1 percent from April 2021. Conventional product sales totaled 3.4 billion, down 2 percent from a year ago. Organic products, at 240 million pounds, were down 3.4 percent and represented 6.6 percent of total sales for the month. Whole milk sales totaled 1.2 billion pounds, up 3 percent from a year ago, up 0.8 percent year-to-date, and represented 33.3 percent of total milk sales in the four months. Skim milk sales, at 195 million pounds, were down 8.4 percent from a year ago and down 8.1 percent year-to-date. Total packaged fluid sales for the first four months of 2022 amounted to 14.7 billion pounds, down 2.5 percent from 2021. Conventional product sales totaled 13.8 billion pounds, down 2.4 percent. Organic products, at 964 million, were down 4.3 percent and represented 6.6 percent of total milk sales for the period. n The June 14 Daily Dairy Report warned, “The global supply chain was hit with more challenges last week when port workers in Germany and truck drivers in South Korea walked out over wages.” The Daily Dairy Report says, “These new global supply chain challenges have unfortunately collided with the return of shipping in and out of Shanghai as it emerges from lockdown.” Meanwhile, the House passed the Ocean Shipping Reform Act this week,email and the President signed it, AD COPY INSTRUCTIONS Please read attached prompting praise from the National Milk Producers “Gift set ‘D’ is the most popular, I think, because it Federation, the U.S. Dairy Export Council, and the FoodsTHE Association. sets P AND REP ALREADYDairy ON AD LANDThe andact FREE has some of everything in it;CODE but in the past fewNAMES years International we have sold a lot of every size,” Mariann said. “I in motion a series of new rules and regulations regarding ocean carrier practices the Federal think people really like a useful consumable gift.” “We put the variety of gift packages together so Maritime Commission must implement over the there is something for everyone — from giving to a course of the next year, according NMPF and single person to having one for a house full of family USDEC. TheLand IDFA also submitted comments regarding the and friends.” The In addition to everything else, the Metz family also See MIELKE, pg. 14 does creamery and farm tours. Mariann says they’ve conducted tours for two people and have had groups of up to 75. “Come out and learn how a dairy and farmstead creamery work,” Mariann says to potential visitors. “(People) enjoy the playground and small petting area with a donkey, miniature horse and goat.” Mariann and Jeff are the tour guides. Advance reservations for tours are a must. You can reach Mariann by email at metzcreamery@ goacentek.net or by phone at (507) 864-2627. The Creamery’s website is www.metzhart-land.com. v
MARKETING
Metz ships to those who can’t visit METZ, from pg. 9 fun way to work with other local businesses to share our products.” Metz Hart-Land Creamery also had a number of pizza nights on the farm in 2021. They collaborated with Stumpy’s Concessions of Rushford for those events. If you can’t visit the farm store, or attend one of the events, the Metz family has a website and an active mail order business. They ship cheese year-around to internet customers; but summer shipping tends to be more expensive. “We can ship in the summer, but shipping is more as we have to use cooler boxes and ice packs and use next services,” Mariann said. “We distribute to our stores year-round by using our cooler truck.” Obviously gelato can’t be shipped at any time of the year; but on-line customers have been ordering the various sizes of gift boxes featured on the creamery’s web site.
