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March 2006 Dairy News-Ax.Qxd Federal Milk Market Administrator U.S. Department of Agriculture UPPER MIDWEST DAIRY NEWS H. Paul Kyburz, Market Administrator Volume 10, Issue 11 Upper Midwest Marketing Area, Federal Order No. 30 November 2009 Deputy Secretary of Agriculture Kathleen Merrigan athleen Merrigan is USDA’s Deputy Agriculture, Nutrition, and Forestry from KSecretary. 1987 to 1992, where she worked as the Chief Science and Technology Advisor to [then] Before rejoining USDA, from July 2001 Chairman Patrick Leahy (D-VT). During until she was confirmed by the U.S. Senate that time, she helped develop the Organic for this position, Merrigan served as an Foods Production Act of 1990. She worked Assistant Professor and Director of the on pesticide issues as a Special Assistant to Agriculture, Food and Environment Program the Chief of Regulatory Affairs for the Texas at the Friedman School of Nutrition Science Department of Agriculture, based in Austin, and Policy at Tufts University in Boston. In from 1986 to 1987. Kathleen Merrigan 2008 she was an expert consultant to the Deputy Secretary of Agriculture Food and Agriculture Organization (FAO) of Merrigan served on USDA’s National the United Nations in Rome. Organic Standards Board from 1995 to 1999 and on the Department’s Facilities Reform Inside This Issue: Merrigan served as Administrator of the Commission from 1997 to 1999. Agricultural Marketing Service from 1999 to 2001. From 1994 to 1999, she worked as a Merrigan holds a Ph.D. degree in environ- AMS Administrator Senior Analyst for the Henry A. Wallace mental planning and policy from the Rayne Pegg ......................... 2 Institute for Alternative Agriculture, a Massachusetts Institute of Technology, a Washington, DC-based organization which Master of Public Affairs degree from the 2010 Agriculture promotes research and education in sustain- University of Texas, and a B.A. degree from Appropriations Act ............... 2 able agriculture. She was a Senior Staff Williams College. Member of the U.S. Senate Committee on Cheese and Butter Prices .... 3 Computation of Producer Price Differential ................... 4 Utilization and Classification ........................ 5 Pool Summary October 2009 Producer Milk by Class ¾ In October, producer milk totaled 2.75 pounds and accounted for 78.6% of billion pounds, up 357 million pounds producer milk. Product from September, and 576 million Percent Pounds Price ¾ The October Producer Price pounds above October 2008. Differential (PPD) is $0.12 per cwt. $/cwt. ¾ Class I utilization totaled 392 million Class I 14.2 391,676,353 14.15 ¾ The Statistical Uniform Price is $12.94 pounds, up 2% on a daily basis from per cwt., up $0.80 from September, but Class II 5.7 157,187,144 11.93 September. Class I usage accounted $4.08 below October 2008. Class III 78.6 2,162,047,905 12.82 for 14.2% of producer milk. Class IV 1.5 40,179,239 11.86 ¾ Market statistics for October are ¾ Class III utilization totaled 2.2 billion shown on Pages 4 and 5. Total 2,751,090,641 Page 2 UPPER MIDWEST DAIRY NEWS Volume 10, Issue 11 AMS Administrator Rayne Pegg Program. AMS administers programs Affairs and Research Division as direc- that facilitate the efficient, fair market- tor of international trade and plant ing of U.S. agricultural products, includ- health. She continued the Farm ing food, fiber, and specialty crops. Bureau’s strong emphasis on trade issues facing the nation’s top farm Pegg most recently was Deputy exporting state and was also responsible Secretary of Legislation and Policy for for plant health/agricultural chemical the California Department of Food and matters and horticultural crops. Agriculture (CDFA). She represented the CDFA before the California legisla- Prior to joining the Farm Bureau, Pegg ture, regulating bodies and interested worked for three years with the parties on issues that had the potential Agricultural Council of California to affect the Department’s programs. where she served as director of govern- “Rayne’s background makes her the mental relations. In her tenure with the ideal person to further the development Council, which represents agricultural of programs to ensure efficient, fair cooperatives, she handled a variety of Rayne Pegg marketing of U.S. agricultural products issues including labor, taxation and Administrator of AMS as we work to meet the needs of con- environmental issues before the ayne Pegg became Administrator sumers and industries and provide a California legislature. Prior to joining Rof the Agricultural Marketing safe, sustainable food supply for all the Council, she worked on communi- Service (AMS) on July 6, 2009. In her Americans,” USDA Secretary Tom cations and business development with position, she has the responsibility of Vilsack said. an Oregon firm. overseeing AMS policies and programs, In June 2004, Pegg joined the California Pegg is a graduate of the College of including the Federal Milk Order Farm Bureau Federation’s National Notre Dame of Maryland. The Agriculture Appropriations Act for 2010 resident Obama recently signed the renewable energy, broadband infrastruc- activities related to biotechnology and PAgriculture Appropriations Act for ture, and local and regional foods sys- fostering the adoption of science and fiscal year (FY) 2010. This Act pro- tems, all of which will help rural com- rules-based international trading and vides funding for most of USDA’s pro- munities thrive in the future. regulatory systems. This will increase grams. confidence in the food supply and will Strengthened Conservation Programs: support the creation of long-term mar- Highlights of the bill include: The 2010 appropriations act continues kets and trading opportunities for U.S. to provide historic levels of funding for agriculture. Assistance for dairy producers: The conservation. This continued support bill appropriated $350 million of which will help producers achieve their conser- Increased access to safe and nutri- $60 million is provided for purchases of vation and farm operation objectives. tious food: For 2010, Congress provid- cheese and other dairy products and ed the funds necessary to meet the $290 million is provided to the Enhanced ability to support food secu- demand for nutrition assistance pro- Secretary of Agriculture to assist dairy rity policies internationally: During grams, and to upgrade programs to pro- producers. FY 2010, USDA will enhance the glob- mote healthier diets. USDA also al food security initiative and improve received additional funds to support sci- Increased investment in rural com- the health and nutritional status of mil- ence-based work to ensure consumers munities to create wealth: With the lions of people in developing countries. have an abundant selection of safe meat, funding provided for 2010, USDA will This will be achieved through interna- poultry and egg products, produced by a continue to provide historic support for tional food assistance programs, safe and secure agricultural production Rural America’s diverse needs for com- research and technical assistance, train- system. USDA will continue efforts to munity infrastructure, business and ing activities that promote sustainable protect America’s animal and plant industry, and decent housing. These agricultural systems, and participation resources from invasive pests and dis- resources will be utilized in a strong and in reconstruction and stabilization eases, which ensures the continued pre- collaborative regional planning process efforts in food insecure countries. In eminence of agriculture as the founda- that will help focus USDA initiatives on addition, USDA will continue on-going tion of America’s prosperity. Volume 10, Issue 11 UPPER MIDWEST DAIRY NEWS Page 3 Cheese and Butter Prices Continue to Increase rices for cheddar cheese on the in that time frame. Barrel and block November 16 were $1.40 per pound for PChicago Mercantile Exchange prices, however, were about 25¢ and Extra Grade and $1.38 per pound for 1 (CME) increased from mid-October to 15¢ below year-earlier levels, respec- Grade A, up 14¢ and 6 /2¢, respectively, mid-November with the barrel price up tively. from October 20. The Extra Grade and 1 2¢ and the block price up 15 /4¢. The Grade A prices are above year-earlier 1 butter price on the CME was up 22 /2¢. The CME butter price stabilized at this levels by more than 38¢. 1 year’s high of $1.52 /2 per pound, up 1 As shown in the graph below, the CME 22 /2¢ from October 20, after a month- The October Federal order Class III block price rose to this year’s high of long rally that started in mid-October. price was $12.82 per cwt., up 71¢ from 1 $1.58 /4 per pound on November 16, up The year-earlier level for the CME but- September, but $4.24 below October 1 1 15 /4¢ from October 20. The barrel price ter was $1.63 /2 per pound, about 11¢ 2008. The CME Class III futures prices 1 also rose to this year’s high of $1.52 /2 in above the current level. for 2010 continue to trend upwards and early November, but then fell and range from $14.60 to $15.70 per cwt. 1 rebounded to $1.44 /4 per pound, up 2¢ Nonfat dry milk prices on the CME on Chicago Mercantile Exchange -- Selected 2009 Dairy Prices * Per Pound $1.60 Blocks $1.50 $1.40 Barrels $1.30 Butter $1.20 $1.10 $1.00 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov * Prices depicted are per pound for each day in 2009 that trading occured through November 16. Upper Midwest Pool Statistics - October 2009 Market Class I Diverted to Location Differential Pool Received at Pool and Adjustment to Class I Differential
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