Dairy Imports and Exports
Andrei Mikhalevsky discusses the industry’s offshore prospects.
There are three reasons why U.S. dairy producers should embrace dairy exports: Volume, volume, volume.
CWT has accepted 35 requests for export assistance from Bongards, Dairy Farmers of America, Darigold, Foremost Farms, Land O’Lakes, Upstate-Niagara subsidiary O-AT-KA and United Dairymen of Arizona.
The bank’s five-year dairy outlook foresees high prices but not increased profits for all. Whey, not cheese, will be a star.
The Kumamoto Dairy Cooperative Association, a grouping of dairy farmers in Kumamoto Prefecture, is intensifying its efforts to boost milk exports to other Asian countries. At present, milk produced in Hokkaido dominates Japan’s milk export business because of its brand cachet. But milk producers in Kumamoto are striving to blaze a new trail overseas amid the trend toward globalization such as Japan’s possible signing up for the U.S.-led Trans-Pacific Partnership free trade deal.
After reviewing several market fundamentals, CWT determined that it should begin assisting member cooperatives in making sales of butter overseas.
Cooperatives Working Together (CWT) has accepted 18 requests for export assistance from Bongards, Dairy Farmers of America, Darigold and United Dairymen of Arizona.
World’s largest dairy exporter attributes large shipments to continued growth in global demand for dairy products and record milk production in New Zealand.
But in a delicious ironic way, the demand for whey, the waste product of cheese manufacturing, is now growing by leaps and bounds.
Cooperatives Working Together has accepted 18 requests for export assistance from Dairy Farmers of America, Darigold and United Dairymen of Arizona.
Glanbia Foods of Idaho sees increased sales of the cheese to Mexico, which buys 20% of U.S. cheese.
DROUGHT in the US is set to be great news for Australian beefexports and local cattle prices by next year, despite uncertain economic times hindering global demand in the near future. Despite short term obstacles like the high Australian dollar, a bulge in US drought-induced herd slaughter rates and global economic insecurity, beef’s longer-term market prospects were literally “bullish”, said Rabobank animal protein market specialist, Wendy Voss. The bank’s latest Beef Quarterly report, co-authored by Ms Voss, has forecast a notable upturn in demand for the second half of 2012. Cattle prices within Australia are tipped to hit record highs later next year as overseas markets shift from a summer supply bulge - primarily caused by the US where herds are being culled due to severe drought - to materially lower supplies.
“Right now, we are in a sweet spot where we have stronger global dairy prices and we have the milk supply to meet that demand.” Marc Beck, US Dairy Export Council
Limited Edition Cognac BellaVitano, from Wisconsin’s Sartori Foods, takes third place overall.
There is also evidence that increased reliance on exports increases price volatility within the domestic market.
Steve and Karen Sponem have been dairyfarmers most of their adult lives, so they learned a long time ago how to live through the radical ups and downs of milk prices. Earlier this year, and despite the struggling global economy, dairy industry experts were giddy when prices improved to almost $21. Steve Sponem said that was the highest he has ever seen.
USDEC chairman: “South Korea is a classic case study in long-term, integrated market development programs executed collaboratively with processors to ensure dairymen have markets for our growing U.S. milk supply.”
While there’s a world of growing opportunity out there, the U.S. dairy industry seems content to let it slip away.
The U.S. Dairy Export Council expects the agreement to net $380 million per year in dairy exports in the first few years after implementation.
This month’s announcement that Thiel Cheese & Ingredients of Hilbert was acquired by the Irish Dairy Board might have struck some people as a bit odd. Have the Irish run out of dairyfarmers or lost their historic knack for making cheese?Fear not. Cheese-making in Ireland is in tip-top shape, as they might say in Dublin. The purchase of a Wisconsin company by the Irish Dairy Board, a commercial cooperative, represents a strategic investment in a high-quality partner with strong research and innovation tools. For Thiel Cheese and its 66 employees, it means better access to markets in North America and abroad.
Executives shared how working through the dairy checkoff and its Innovation Center for U.S. Dairy helps drive dairy sales and protect dairy’s image.
‘The U.S. is dead last by a lot on research and development. Suppliers in Oceania and Europe work with our teams to tailor products to our needs. If we need something difficult, we don’t go to the U.S.’
Argentina’s agriculture is wholly dependent on exports. And it’s abundantly clear that the U.S. dairy industry has entered this new era as well.
MONTREAL - Saputo Inc. says cross-border shopping and higher dairy prices at home have caused a continued reduction in its milk and cheese sales volumes in Canada.
CWT has accepted 12 requests for export assistance to sell 961 metric tons (2.119 million pounds) of Cheddar and Monterey Jack cheese to customers in Asia and the Middle East.
Lower farmgate milk price forecast reflects a continued softness in commodity prices and a stronger New Zealand dollar.
The reforms could lower the U.S. all-milk price by 92¢/cwt, trigger supply management programs 40% to 45% of the time and lower cumulative net farm operating income 32% to 48%.
“These actions mean that dairy products on Mexico’s retaliation list will now be free of the 20-25% tariffs that were restricting access to our best foreign market,” said Tom Suber, president of USDEC.
In 2011, CWT has assisted members in making export sales of Cheddar, Monterey Jack and Gouda cheese totaling 35,774 metric tons (78.9 million pounds) to 23 countries on four continents.
EUROPEAN Commission proposals for reforming the Common Agricultural Policy (CAP) include a plan to dedicate 30 per cent of direct farm payments to “green” measures. Controversially, it would only be paid to farmers who leave at least seven per cent of their land fallow - something the Country Land and Business Association (CLA) and National Farmers Union (NFU) pledged to fight.
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