Tag Archives: Dairy

ARLINGTON, VA – Dairy is facing challenges. In a crowded beverage marketplace, per-capita fluid milk consumption in the U.S. is down by a quarter in the past 20 years, and the number of U.S. dairy farms dropped 6.8 percent in 2018.
That’s one part of the story. But a more accurate picture of the health of the dairy industry is much brighter than the doom and gloom conjured from selective use of data. No matter what critics may say, attempts to craft a “death of dairy” narrative are mistaken.
Looking more broadly than milk in a glass, per-capita dairy consumption has been on the rise since the 1970s, according to USDA data. Last year’s level – 646 pounds per
person – was the most popular year for dairy in the U.S. since 1962.
Individual products tell similar stories. Cheese per-capita consumption has tripled since 1971. Butter is at its highest per-capita use since 1968. Contrast that with nose-diving sales of margarine, the longest-established “plant-based” dairy alternative, which in 2010 was at its lowest per-capita consumption since 1942. After that, the federal government stopped tracking it altogether.
Milk, like every other beverage, exists in a competitive marketplace. Bottled water, orange juice, energy drinks, and yes, plant-based dairy imposters, all compete for shelf space. But spinning a segmenting beverage market into a “declining dairy” narrative is disingenuous at best, dishonest at worst. Just Mark Twain when he said of an erroneous news story, “The report of my death was an exaggeration,” dairy is very much alive — and on the rise.

A coalition of U.S. dairy groups is urging the Trump administration to reach a trade agreement with Japan quickly. More than 70 dairy groups and companies sent a letter to Trade Representative Robert Lighthizer and Agriculture Secretary Sonny Perdue this week asking the administration to finalize a strong trade deal with Japan quickly.

The coalition, including the National Milk Producers Federation and U.S. Dairy Export Council, say Japan is an established market with a growing demand for dairy products. The letter states that a robust trade agreement with Japan “will bring a much-needed boost to the economic health of the U.S. dairy industry.”

The letter says the Japan-EU agreement and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership have allowed the European Union, New Zealand and Australia to position themselves to take sales from the U.S. dairy industry. The U.S. exported $270 million in dairy products to Japan in 2018. Once the trade deals are fully implemented, the U.S. risks losing $5.4 billion in total export sales.

WASHINGTON — The U.S. Department of Agriculture (USDA)  announced that producers of nearly 17,000 dairy operations have signed up for the Dairy Margin Coverage (DMC) program since signup opened June 17. Producers interested in 2019 coverage must sign up before Sept. 20, 2019.

DMC offers protection to dairy producers when the difference between the all-milk price and the average feed cost (the margin) falls below a certain dollar amount selected by the producer.

“We’re encouraged by the number of dairy producers who have signed up for this new program, but we are hopeful that we will get more folks in the door,” said Bill Northey, USDA’s Under Secretary for Farm Production and Conservation.“At this point in the signup process, we are well ahead of the number of producers covered at this time last year under the previous safety net program, with more producers enrolling every day. As we move into the homestretch, we expect more producers across the country to get coverage through DMC and our team at FSA is really going above and beyond to make sure we get the word out there, the returns this year to-date should speak for themselves.”

In June, when the DMC signup was announced, Secretary Perdue said, “For many smaller dairies, the choice is probably a no-brainer as the retroactive coverage through January has already assured them that the 2019 payments will exceed the required premiums.”

To date, more than 60 percent of dairies with established production histories have enrolled in the program. Wisconsin has seen the most participants with more than 4,832 dairy operations, followed by Minnesota (1,865), New York (1,779), Pennsylvania (1,511) and Michigan (702).

USDA’s Farm Service Agency (FSA) began issuing program payments to producers on July 11. DMC provides coverage retroactive to Jan. 1, 2019. The producers who have signed up to date will receive more than $219.7 million in payments for January through June, when the income over feed cost margin was $8.63 per hundredweight (cwt.), triggering the sixth payment for eligible dairy producers who purchased the $9 and $9.50 levels of coverage under DMC.