A dairy producer's gain is a dairy processor's pain.
July 2, 2012
A June rally brought a temporary end to a 14-month decline in dairy commodity prices. While higher prices are good news for dairy farmers, dairy processors can't be cheered at the prospect of paying more for milk, their raw material.
In this week's dairy processing news report from the USDA, cheese prices are strong, cream markets are steady, milk is irregular and dry dairy product markets are steady.
Processors of milk and dairy products, including ice cream and cheese, are invited to enter the World Dairy Expo Championship Dairy Product Contest, sponsored by the Wisconsin Dairy Products Association.
At its milk processing plant, Alabama’s Organic Dairy Products produces milk and dairy products with a cream top, using a low-temperature pasteurization process.
Cable Car Delights, San Francisco, and Vermont Butter & Cheese Creamery, Websterville, Vt., were among the winners of sofi gold awards at this week's Fancy Food Show in Washington, D.C.
Farm milk production is stepping down gradually in most areas of the country, reports Dairy Market News for the week of June 11 to 15. The publication from the USDA says that "most areas also report bottled milk demand is heading toward the summer doldrums." USDA also notes that production schedules at cheese plants are slowing as milk supplies appear to have passed the peak Spring flush.
Fonterra said it has an agreement to buy the milk processing assets of the New Zealand Dairies Ltd group in South Canterbury. The Russian-owned dairy factory was placed into receivership on 17 May 2012.
The Dannon Co. and McCarty Family Farms announced Wednesday, June 13, the initial accomplishments from the first stage of their new collaboration. The farmer is selling its milk exclusively to Dannon, which is processing it into yogurt at Dannon's Fort Worth, Texas, plant.
The Dairy Market Stabilization Program as proposed by H.R. 3062, the Dairy Security Act, would manipulate both the supply of and demand for milk in order to push U.S. milk prices higher than open markets otherwise provide, says the president of the International Dairy Foods Association. "Given the importance of exports to our industry's ability to grow and create new jobs, it makes no sense at all for Congress to pass a new supply management program that will restrict our ability to be reliable suppliers and will negatively impact investment decisions by processors regarding new facilities," said Connie Tipton, IDFA president and CEO.
Forget neck ties, golf shirts and power tools as Father's Day gifts. What Dad really needs is ice cream. That was the theme of dairy-related free-standing inserts for the week beginning June 10.