Chocolate milk ban opposed by elementary schools

Cheese totaled 1.23 billion pounds, down 1.7 percent from February and down 2.2 percent from a year ago. Both domestic use and exports were lower, falling 2.4 percent domestically and 0.4 percent on exports. American cheese exports plummeted 12 percent annually, and year-to-date were at a deficit of 4.3 percent to the same period in 2022.

Nonfat dry milk-skim milk powder utilization totaled 238.5 million pounds, up 25.1 percent from February and 1.4 percent ahead of a year ago.

HighGround Dairy credited an uptick in domestic usage, which was up 13.7 percent, while exports declined 2.7 percent from 2022.

Dry whey totaled 79.7 million pounds, up 8.1 percent from February and 11.8 percent ahead of a year ago. Domestic usage, at 32.8 million pounds, was up 17.1 percent from a year ago, and exports, at 46.9 million, were up 8.3 percent.

Fluid milk sales looked a little better in March but were still down from a year ago. The latest data shows packaged fluid sales totaled 3.8 billion pounds, down just 0.7 percent from March 2022, following a 3.2 percent drop in February.

Conventional product sales totaled 3.5 billion pounds, down 0.9 percent from a year ago. Organic products, at 256 million pounds, were up 1.3 percent, and represented 6.8 percent of total sales for the month.

Whole milk sales totaled 1.3 billion pounds, up 2.1 percent from a year ago, up 1.1 percent year to date, and represented 34.3 percent of total milk sales for the three months.

Skim milk sales, at 192 million pounds, were down 6.2 percent from a year ago and down 6.8 percent year to date.

Total packaged fluid sales for the three months amounted to 10.9 billion pounds, down 1.4 percent from 2022. Conventional product sales totaled 10.2 billion pounds, down 1.6 percent. Organic products, at 732 million pounds, were up 1.1 percent, and represented 6.7 percent of total milk sales for the period.

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The USDA announced the June Federal order Class I base milk price at $18.01 per hundredweight, down $1.56 from May, $7.86 below June 2022, and the lowest Class I since November 2021. It equates to $1.55 per gallon, down from $2.22 a year ago. The six month average stands at $19.77, down from $23.32 a year ago and compares to $16.13 in 2021.

Global Dairy Trade reversed two events of gain this week, as the GDT’s weighted average slipped 0.9 percent following gains of 2.5 percent on May 2 and 3.2 percent on April 18. Traders brought 47.5 million pounds of product to market, down from 51.3 million on May 2, and the lowest since Jun. 21,

2022. The average metric ton price slipped to $3,488 U.S., down from $3,506 on May 2.

Anhydrous milkfat led the declines, down 4.5 percent after losing 2.4 percent on May 2. Butter, on the other hand, was up 2.2 percent following a 2.4 percent advance. Cheddar showed the second biggest decline, down 3.4 percent, after rising 4.5 percent last time. Skim milk powder was down 1.6 percent after rising 1.5 percent, and whole milk powder was up 0.3 percent following a 5 percent gain on May 2.

StoneX says the GDT 80% butterfat butter price equates to $2.243 per pound U.S., up 5.4 cents after gaining 5.6 cents on May 2, and compares to May 19’s CME butter at $2.46. GDT cheddar, at $1.9991, was down 7 cents, and compares to May 19’s CME block cheddar at $1.535. GDT skim milk powder averaged $1.2547 per pound, down from $1.2641, and whole milk powder averaged $1.4715 per pound, up from $1.4650. CME powder closed at $1.1525.

Dairy margins deteriorated over the first half of May, particularly in nearby periods, as a sharp decline in milk prices more than offset steady to weaker projected feed costs, according to the latest Margin Watch from Chicago-based Commodity and Ingredient Hedging LLC.

“Spot trade in cheese and whey has been at a deep discount to indicative Class III milk futures which have adjusted lower as the cash market has failed to recover,” the Margin Watch reported. “Whey prices have dropped from almost 87 cents per pound early last year as increased production is forcing more trade to clear at the CME. Since the beginning of April, 229 loads have traded in the spot market. While exports have held up, weaker hog margins in China are causing a recent slowdown in demand which will force more product to clear domestically.”

“Exports of other dairy products during March were impressive as well, with 91.6 million pounds of cheese and curd exports which represented the second-highest March total on record, although total first quarter cheese exports were record high and first quarter nonfat dry milk exports were the second highest on record.”

“Unfortunately, lower prices may need to be maintained to move additional product through export channels as competition increases, particularly to Asia,” the Margin Watch warned. “Another problem for dairy producers is that ongoing issues with labor, freight and maintenance are reducing the capacity of dairy processors. Cooperatives and milk handlers have been forced to either dump or sell spot milk at deep discounts, with producers receiving pricing of $4 to $12 per cwt. below class for milk exceeding contracted volumes.”

Cooperatives Working Together members accepted

11 offers of export assistance this week on sales of 1.3 million pounds of American-type cheese, 44,000 pounds of butter, and 154,000 pounds of cream cheese. The product is going to customers in Asia, Central America, the Caribbean, Middle East-North Africa, Oceania and South America, through November.

In politics, the International Dairy Foods Association reports the Wall Street Journal says, “Top officials with the USDA remain fixated on banning chocolate milk from elementary and middle school cafeterias despite widespread opposition from parents, school meal professionals, and the federal government’s own Dietary Guidelines for Americans report.”

In April, 37 school milk processors representing more than 90 percent of the school milk volume in the United States jumped ahead of USDA’s proposed guidelines with the Healthy School Milk Commitment, a pledge to offer nutritious school milk options with no more than 10 grams of added sugar per 8 fluid ounce serving by the 2025-26 school year.

The Journal reports, “the issue has divided parents.” However, neither the Journal article nor USDA’s comments in the Journal feature thoughts from parents of school-aged children. In a Morning Consult poll of more than 500 parents with children in public schools conducted March 17-19, 90 percent of parents expressed agreement that non-fat or lowfat flavored milk should remain an option in public school meals. In October 2022, a similar poll found support among parents for low-fat flavored milk to be 84 percent, meaning support among voting parents with children in public schools continues to increase,” says IDFA.

Lee Mielke is a syndicated columnist who resides in Everson, Wash. His weekly column is featured in newspapers across the country and he may be reached at lkmielke@juno.com. v