california dairy review dec2005

8/8/2019 California Dairy Review Dec2005

1/8


2/8


3/8

Water Quality Improvements

Cost-Sharing Opportunities

The deadline for obtaining cost sharing funds (50:50)for dairy environmental improvements, under the

USDA- Natural Resources Conservation Service(NRCS) Environmental Quality Incentive Program(EQIP) is December 2, 2005. Under a special initiative,$10 million has been set aside from the states EQIPallocation to assist animal feeding operations inpreparing for developing water quality regulations,including waste discharge permits and total maximumdaily load (TMDL) requirements and to meet other

natural resource needs. The Farm Bill, which providesfor EQIP expires in 2007 and its future is uncertain.

Among the practices eligible for funding to protect waterquality and natural resources include, storm watercontrols, manure storage, treatment lagoons, irrigationimprovements including tail water recovery systems,nutrient management, and manure treatment suchas composting and anaerobic digesters. Interested

producers should visit their local NRCS office as soonas possible. Additional information may be obtainedon the web at http://www.ca.nrcs.usda.gov/programs/eqip/2006/statepriorities2006.html.

Another cost share (70:30) program is also availablefrom the state. Through Proposition 50, the statelegislature established a Dairy Water Quality

Grant program to assist dairy producers in makingimprovements on their dairies to protect water quality.Although the application deadline has closed, the StateWater Resources Control Board (SWRCB) is likely toprovide grant awards to third parties who will in-turnre-grant the funds to individual dairies. The SWRCB isexpected to decide by February 2006 which of the 17eligible applicants will be awarded dairy grants.

The legislation that created the grant program hasa requirement that producers have completed theCalifornia Dairy Quality Assurance Program (CDQAP)environmental stewardship short-course or have othersimilar actions to mitigate adverse environmentaleffects. With that in mind, producers are encouragedto complete the short course if you have not already

Producer Payments

Milk Pooling Branc

Name Change

The Producer Payments Unit hto the Producer Security Assurmore appropriately reflect the sto stakeholders and its responsState Law.

The Producer Security Assuranfor the following activities that hproducers are paid in a timely a

for the milk they produce and m

Licensing and Bonding of Mi Verification and enforcement

payments by milk handlers to Administration of the Milk Pro

Fund with guidance from the Directors

The name change for the Teamimmediately. Should you havecomments regarding the nameservices provided by the Teamthe Team Members: Ben Kardoor Bob Maxie at 916-341-5901interested in your feedback.

Market, News, Wea

Available on Dairy

Marketing Website

DTN Dairy is a source of compr

specific market, weather, and n

site provides a complete packa

and commentary, real-time quoinformation, highly localized we

news 24 hours a day. DTN als

updates from the Chicago Mer

traders daily. It also provides e

regional pricing information for

l d d ll


4/8

Checkoff-Funded Research

May Change Cottage Cheese

Manufacturing

Americas dairy producers, through their checkoffprogram, have sponsored research that changes theway cottage cheese can be made to allow for a moreconsistent, high-quality end product. The researchproject, a partnership among Cabot Creamery,CPS Scherping, the Minnesota-South Dakota DairyResearch Center and Dairy Management Inc. (DMI),which manages the national dairy checkoff program,adapted a horizontal cheesemaking vat typically used

to manufacture Cheddar, Mozzarella and other closed-vat cheeses to the production of cottage cheese.

Traditionally, cottage cheese has been made in openvats in a process controlled by human operators. Thehorizontal vat system encloses and automates theentire effort. This new automated process, reduces therisk of human error, fluctuations in temperature andexposure to other elements in the atmosphere. Anotherimportant feature of this new system is it optimizes foodsafety measures by automatically cleaning equipmentbetween batches.

CMAB and CMMA

Authorized to Co

The Department of Food an(Department) recently cond

in Sacramento to consider tCalifornia Milk Producers Adand the California Manufact

Advisory Board (CMMAB). is required every five years marketing orders.

Based on the testimony and

the hearing, the Departmenthe CMAB and the CMMABforce and effect through De

As you may be aware, the Cconduct generic promotion activities on behalf of the mactivities are funded by manupon all producers of milk in

assessment rates are currefor both market grade milk agrade milk. These assessmagainst the mandatory 15-cthe National Dairy PromotioBoard. The CMAB and the existence for over 35 years.

If you have any questions athe activities carried out by tCMMAB, please call Stan ADirector of the two programor call Glenn Yost of the DeBranch at (916) 341-6005.

Its Renewal Tim

Bureau of Livestock Identificdairies that the Dairy Exemp

XX LS01 XXXX - indicaup for renewal. Those Exemon 12/31/2005. Renewal Noplease update any informatiJ t i d t i l d th

CWT Awards Export Assistance

for Cheese Sales

Cooperatives Working Together (CWT) announcedthat it has accepted a bid from Dairy Farmers of

America of Kansas City, MO, to export 126 metrictons (approximately 277,000 pounds) of Cheddarcheese to South Korea and to export 20 metric tons(approximately 44,000 pounds) of Cheddar cheese toJapan. . CWT will award the agreed-to export bonus

to the bidder, once completion of the cheese shipmentis verified.

Previous shipments facilitated by CWTs exportassistance program have gone to Algiers, Croatia,Egypt, Japan, Jordan, the Netherlands, Saudi Arabiaand South Korea. Through CWTs Export Assistance

se

t is


5/8

Milk Production and Cow N

Monthly: Compared to 2004,

overall milk production across

4.1% in October, led by Idaho

milk production (on 35,000 m

pounds per cow). Californias

was up 2.3% (on 30,000 mor

pounds per cow). Among the

Arizona was down 0.7%; New

Washington up 6.1%. None

reported a production decrea

Quarterly: For the third quarte

the second quarter of 2005, U

were up 2.2% at 9.054 million

was down 3.0%; the net effec

in milk production to 44.0 billi

projects that for the fourth qu

to the third quarter of 2005, Uwill increase 15,000 cows to

production per cow will be do

effect would be no change in

at 43.9 billion pounds.

Milk Prices

Comparing the third quarter o

quarter of 2005, U.S. average$0.07/cwt. to $14.90/cwt. US

the fourth quarter of 2005, U.

prices will be $15.15-15.45/cw

be $13.50-13.80/cwt; and Cla

$12.95-13.35/cwt.

Utility Cow Prices

Comparing the third quarter oquarter of 2005, average U.S

down $3.50/cwt. to a nationa

USDA projects that utility cow

$52-54 in the fourth quarter o

National Dairy Situ

Outlook USDA Es

CDFA Manufacturing Cost

Studies Completed

In late November, the Department released the latest

nonfat powder, bulk butter, Cheddar cheese, and

whey processing cost studies for the period of January

through December 2004. This infomation is available

on our website at www.cdfa.ca.gov/dairy or by calling

Venetta Reed at (916) 341-5988.

The Department is seeking nominations from MarketMilk Producers to fill three positions on the ProducerReview Board of Directors that have terms expiring atthe end of 2005.

The current members with terms that expire at the endof the year are:

Sietse (Sean) Tollenaar, Wheatland Frank Borba Jr., Escalon Hank Van Exel, Lodi

Mr. Tollenaar is eligible for re-appointment. Mr. BorbaJr. and Mr. Van Exel are not eligible for re-appointment.The Department would like to thank the past Boardmembers for their participation on the Producer ReviewBoard.

The Producer Review Board as established bySection 62719 of the Food and Agricultural Code,advises the Secretary of the Department of Food and

Agriculture in the administration of the Pooling Planfor Market Milk. The composition of the Board givesproportionate representation to all areas of the state.

The Secretary respectfully seeks the input of the dairyproducer community and will take the foregoing intoconsideration when making appointments to the Board.

Persons interested in serving on the Board, orinterested in nominating someone to serve on theBoard should submit the nomination form mailed to

Notice of Nominations for the

Producer Review Board


6/8

Dairy Council Appointments

CDFA recently conducted nomination and preference voting procedures in order to rinput for filling five of the twelve producer positions and four of the twelve handler pDairy Council of California. Based on these procedures, CDFA has appointedindividuals to serve new terms on the Dairy Council.

Producer Members

Name Location Status T

Charles Ahlem Hilmar New Appointment Margaret Gambonini Petaluma Reappointed

Richard Michel Waterford Reappointed Jim Quist Fresno Reappointed

Arlan Van Leeuwen Chino Reappointed

HANDLER MEMBERS

A new report from the University of Wisconsin-Madisonshows that dairies that use managed grazing are

economically competitive with confinement dairyoperations. Farms using managed grazing produceless milk per cow on average than confinement farms,said Tom Kriegl of the UW-Madison Center for DairyProfitability, who co-authored the report. But thesefarms more than offset this production disadvantagethrough their control of operating expenses, investmentand debt.

Kriegl has been analyzing the financial performance ofgrazing dairy farms since 1995. In the report Pasturesof Plenty, he and Ruth McNair of the UW Center forIntegrated Agricultural Systems compared grazing andconfinement farms in Wisconsin and the Great Lakes.Some of their key findings include:

In Wisconsin and New York, grazing dairies are moreprofitable per cow and per hundredweight equivalentof milk sold than confinement dairies in these states.

Farms using managed grazing consistently showhigher profits and lower cost per hundredweightequivalent than traditional and large modern

confinement farms in Wiscon Producers who switch from c

farming to managed grazing financial hardship during the

Managed grazing is different thgrazing in that producers movepasture on a regular basis and pastures to maximize the qualitfeed. Continuously grazed pastmuch quality feed.

In addition to comparing confingrazing farms, the report compand identifies qualities that makoperations. It also discusses mfrom traditional dairy farming toPastures of Plenty is availableCenter for Integrated Agricultur

site: http://www.cias.wisc.edu/pcopies also are available free-o(608) 262-5200, or send e-mai

University of Wisconsin Study:

Grazing dairies can compete with confinement operation


7/8


8/8

california dairy review dec2005

Documents