January 24, 2020
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d's Dairy orl In W du e st h r t y g W n i e e v Since 1876 k r e l y S NEW 2-PIECE DESIGN CHEESE REPORTER Precise shreds with Urschel Vol. 144, No. 32 • Friday, January 24, 2020 • Madison, Wisconsin US Milk Production Hit Record USDA Proposes More Flexibility For School 218.3 Billion Pounds In 2019 Meal Programs; Output Rose Less Than 1 Billion Pounds From cent from 2018’s fourth quarter. Some Changes Could The state’s third-quarter milk out- Affect Fluid Milk 2018; December Milk Production Was Up 0.9% put had been up 1.9 percent from Washington—USDA’s Food and Washington—US milk produc- ber 2018, but unchanged from a year earlier. Wisconsin’s December milk Nutrition Service (FNS) on Thurs- tion during 2019 totaled a record November 2019. production totaled 2.545 billion day published a proposed rule that 218.322 billion pounds, up 0.3 per- For the US as a whole, milk pounds, down 1.1 percent from is intended to simplify meal pat- cent, or 747 million pounds, from production during the October- December 2018, due to 8,000 tern and monitoring requirements 2018, USDA’s National Agricul- December 2019 quarter totaled fewer milk cows and 10 less pounds in the National School Lunch and tural Statistics Service (NASS) 53.822 billion pounds, up 0.8 per- of milk per cow. School Breakfast Programs. reported Thursday. cent from 2018’s fourth quarter. Wisconsin’s October-December Section 201 of the Healthy, That was the 10th consecu- That was the largest quarterly milk milk production totaled 7.5 billion Hunger-Free Kids Act of 2010 tive increase in US milk produc- production increase last year; pro- pounds, down 0.6 percent from the required USDA to update the tion, which hasn’t declined since duction had been up just 0.1 per- same period in 2018. The state’s meal patterns and nutrition stan- 2009, when output of 189.2 bil- cent in 2019’s first quarter, down third-quarter production had been dards for school meals. lion pounds was down 0.4 percent 0.1 percent in the second quarter down 0.4 percent from 2018’s third A final rule published in 2012, from 2008. Last year’s production and up 0.6 percent in the third quarter. among other things, allowed only increase was the second-smallest quarter. December milk production in flavored and unflavored fat-free since then on a volume basis, trail- The average number of milk Idaho totaled 1.305 billion pounds, and unflavored lowfat milk; estab- ing only 2013’s increase of 618 mil- cows in the US during the fourth up 3.2 percent from December lished calorie and sodium limits; lion pounds from 2012. quarter of 2019 was 9.34 million 2018, due to 21,000 more milk and permitted meats/meat alter- In December, milk production head, 18,000 head more than the cows but five less pounds of milk nates to be offered in place of in the 24 reporting states totaled July-September quarter but 22,000 per cow. Idaho’s fourth-quarter grains in the SBP, provided that 17.435 billion pounds, up 0.9 per- head less than the fourth quarter milk production totaled 3.9 bil- minimum daily grain requirements cent from December 2018. Produc- of 2018. lion pounds, up 3.3 percent from were met. tion per cow in the 24 reporting California’s December milk 2018’s fourth quarter. The state’s In the seven years following the states averaged 1,978 pounds production totaled 3.424 bil- July-September milk output had 2012 rulemaking, some program in December, 14 pounds above lion pounds, up 0.5 percent from been up 3.5 percent from a year operators have experienced chal- December 2018. December 2018, due to 5,000 fewer earlier. lenges with specific requirements. The number of milk cows on milk cows but 15 more pounds of New York state’s December 2019 In May 2017, US Secretary of farms in the 24 reporting states in milk per cow. California’s fourth- milk production totaled 1.268 bil- Agriculture Sonny Perdue issued a December was 8.814 million head, quarter milk production totaled proclamation emphasizing USDA’s 16,000 head more than in Decem- 10.04 billion pounds, up 0.4 per- • See Record Milk Output, p. 14 commitment to provide opera- tional flexibilities to help schools offer wholesome and appealing Cairns Group Wants IDDBA Engaging Younger Members, meals that students want to eat. To Halve All Forms Of Veterans In A Fast-Paced Digital Age The proclamation precipitated an interim final rule that provided Trade And Production Madison—Over the last 50 years, Association in 1980 and the short-term operational flexibilities the International Dairy-Deli- International Dairy-Deli Asso- for flavored lowfat milk, sodium, Distorting Ag Bakery Association (IDDBA) ciation in 1985, before assuming and whole grains for school year has helped support the US food its current name in 1991. Subsidies By 2030 • See Milk In Schools, p. 18 industry by investigating trends, Its vision is to be the essential Davos, Switzerland—The Cairns sharing information, and pro- resource for relevant information Group of agricultural export- moting the process from start-up and services, adding value across ing countries this week called for US Milk Production to store shelf. all food channels for the dairy, 220 World Trade Organization (WTO) Looking back over five decades deli, and bakery categories. 1989 –2019 members to commit to negotiate a billions of pounds of industry service, one of today’s IDDBA recognizes six key 210 multilateral agreement that would most critical challenges is staying factors as industry influencers: cap and reduce the current sum of relevant to multiple generations people, community, technol- 200 global agricultural trade and pro- of both customers and clients ogy, consolidation, food safety duction-distorting domestic sup- with specific needs and ambi- and competition. Year-round 190 port entitlements by at least half tions. work and resources are dedicated by 2030. IDDBA, a non-profit trade to provide member companies, 180 Cairns Group members include association for food retailers, associates and industry leaders New Zealand, Australia, Argen- manufacturers, wholesalers, with tools needed to grow their 170 tina, Brazil, Canada, Chile, brokers, distributors, and other respective business. Colombia, Costa Rica, Guatemala, industry professionals, was origi- Membership now includes 160 Indonesia, Malaysia, Pakistan, Par- nally founded in 1964 as the more than 2,000 companies, aguay, Peru, the Philippines, South Wisconsin Cheese Seminar. ranging from small independents 150 Africa, Thailand, Uruguay and The name changed to the 140 • See Halve Subsidies, p. 11 International Cheese & Deli • See IDDBA Engaging, p. 12 90 95 00 05 10 15 19 Page 2 CHEESE REPORTER January 24, 2020 Past Issues Read CME Butter Price Volatility: this week’s issue EDITORIAL COMMENT Highest/Lowest Weekly Price Avgs: 2012 – 2019 or past issues of $3.25 Cheese Reporter on $3.00 your mobile phone or tablet by scanning this $2.75 QR code. DICK GROVES $2.50 Cheese Reporter Publishing Co. Inc. ©2020 $2.25 2810 Crossroads Drive, Suite 3000 Publisher / Editor $2.00 Madison, WI 53718-7972 (608) 246-8430 • Fax (608) 246-8431 Cheese Reporter $1.75 http://www.cheesereporter.com e: [email protected] $1.50 DICK GROVES tw: @cheesereporter Publisher/Editor $1.25 12 13 14 15 16 17 18 19* e-mail: [email protected] 608-316-3791 Dairy Price Volatility Returns With A Vengeance MOIRA CROWLEY Just over two years ago in this at monthly averages. For blocks, rising (with a couple of dips along Specialty Cheese Editor e-mail: [email protected] space (Dec. 22, 2017, to be exact), the monthly average rose from a the way) to $1.7305 per pound 608-316-3793 we noted that there had been a low of $1.4087 per pound in Janu- in October, then falling again to KEVIN THOME “relative lack of price volatility” in ary to a high of $2.0703 a pound $1.4900 a pound in December. Advertising & Marketing Director 2017, with, among other things, in October, a range of more than Another point to keep in mind e-mail: [email protected] a range of less than 50 cents from 66 cents a pound. By contrast, in when examining 2019 price vola- 608-316-3792 low to high for the Cheddar block 2018, the monthly average block tility is that the dairy industry saw BETTY MERKES Classifieds/Circulation Manager price on the CME cash market. price ranged from a low of $1.3764 several “extremes” that hadn’t e-mail: [email protected] That year also saw a narrow range per pound in December to a high been reached in several years, 608-316-3790 for the federal order Class III price, of $1.6438 per pound in Septem- which sort of guaranteed that vola- REGULAR CONTRIBUTORS: with a low of $15.22 per hundred- ber, a range of less than 27 cents. tility would be greater than it had Jen Pino-Gallagher, Bob Cropp, Neville weight and a high of $16.88 per When it comes to monthly aver- been for a few years. McNaughton, Dan Strongin, John Umhoefer ages, it was the barrel price, again, For example, both block and You can e-mail our contributors at: hundred. [email protected] The following year also saw a that really exhibited volatility last barrel cheese cash market prices at relative lack of price volatility in year, ranging from a low of $1.2379 the CME topped $2.00 a pound last The Cheese Reporter is the official the dairy markets.