After reviewing a number of analytical reports, it seems difficult to assume that milk prices are positioned to move drastically up or down.  Fortunately, as of this writing on July 14, the cheese market has experienced daily price increases since the beginning of July and has reached a peak for the year to date.  United States export sales are up significantly from 2009 and imports are down, mozzarella cheese and butter demand is strong, hot and humid weather throughout the nation including the North East and Mid West is significantly impacting milk production, components and cheese yields.  In addition, soon to be school re-openings, holiday orders, and the recent CWT herd retirement program should have an additional positive impact on dairy market prices.  Conversely, large commercial cheese inventories (reported by USDA), weak fluid milk sales, slow economic recovery with the possibility of a “double dip” recession, high national unemployment rates (10%+), and optimistic milk production forecasts for New Zealand are possibly negative signals.

Please be assured that the FDA Board of Directors and Management are well aware of the “less than ideal” market conditions impacting our members and the entire industry.  FDA continues to turn over stones in an effort to enhance production efficiency and market value for our products.  FDA operates with fewer total employees today than in year 2000 (over a decade ago with significantly less production throughput).  FDA continues to remain very active in state and federal policy that support dairy farmers and the Minnesota Dairy Industry.  FDA directors and management experienced a lengthy meeting with Congressman Collin Peterson (Chairman of the House Agriculture Committee) on July 8 at FDA to discuss important 2012 Farm Bill Policy that will impact upper Mid-West dairy producers and we want to make sure our farmers best interests are being heard.

FDA will continue to use sound business management principles and maintain a strong financial position in order to assure members a safe and secure long-term market for producer’s milk. FDA’s production and sales continue to be at record levels; meanwhile significant focus on additional production capacity is being evaluated by your Board of Directors and key FDA staff.  The new Whey Evaporator processes are now being commissioned and we hope to be fully operational on the new equipment by months end.

We continue to hope for continuous improvement in milk prices but most importantly, we hope that each day may be filled with good health and happiness!

HAVE A GREAT GROWING SEASON and PLEASE operate SAFELY

European Union (E.U.) Certification Update

FDA is trying to keep our members current regarding new milk Somatic Cell Count (SCC) requirements on milk received from our members. We have provided a number of articles over the past several months with the intent of keeping our members up to date regarding changes that were announced by USDA in January requiring farm SCC to be less than 400,000 on a three month rolling geometric average and for bacteria (SPC) to be less than 100,000 on a two month rolling geometric average. Needless to say, FDA is very proud of the excellent effort our members have taken to improve their SCC and bacteria levels in milk over the past several years. We are happy that FDA members who are able to achieve high quality standards also receive well deserved and substantial quality premiums exceeding that of most other processors.

FDA is aware that regulatory officials from the US met with the EU on July 8 to further discuss important details.  A conference call was held between FDA and USDA on July 13 to discuss the outcome.  It appears that implementation will be temporarily postponed a few months while USDA drafts specific guidelines that will hopefully be made available in the next few weeks.  Meanwhile, we appreciate all the effort our members are making in preparation for the inevitable change.  In addition, we will keep you up to date regarding any conclusive specifics in future newsletters.

Please feel free to contact your Field Service Representative, FDA Quality Department, or Clint Fall regarding any questions or concerns.

University of Minnesota “Successful Dairy Systems Field Days”

The University of Minnesota Extension Dairy Team will be conducting 9 field days throughout Minnesota with primary focus on herds with low SCC. 

The objectives are:

• To discuss the new European Union 400,000 SCC requirement.
• To provide information to help producers meet the 400,000 limit and discuss management practices that can lower herd SCC.

Preregistration is not required and there is NO charge to attend.  The enclosed yellow brochure provides the program details.

FDA Governance

First District Association is proud of its successful grass roots heritage.  Members are encouraged to become actively involved in your cooperative and upcoming election processes.  A meeting of the 2010 unit officers will be scheduled for mid August.  This is a good time for FDA members to communicate with one of your unit officers regarding comments or recommendations pertaining to your cooperative and upcoming November Unit meetings.  It is important that FDA members remain involved with the governance of your cooperative and we appreciate your input.  The nominations committee, including a representative from each unit and each member creamery, will be scheduled to meet in late August.  In the event you may be interested in nominating a director candidate, please contact FDA, your unit president, or creamery manager.

The following Board of Director’s terms expire in 2010:

Josh Barka – Unit A    Joe Becker – Unit A    Brad Nosbush – Unit E

Young Cooperator of the Year

FDA is very proud of our young progressive dairy farmers and the young cooperator (YC) program. If you are a FDA member and you or your spouse is less than 45 years old, please consider filling out a young cooperator of the year application. 

The FDA young cooperator of the year will be announced at the First District Association YC banquet. This year’s banquet will be Saturday, September 25, at Greenwald Pub in Greenwald. In addition, the YC’er of the year may attend the National Milk Producer Federation annual conference. This year the NMPF conference will be held at the Grand Sierra Resort in Reno, Nevada, October 26-28, 2010. The deadline for applications is Wednesday, September 1st.  If you have any further questions regarding the application, please contact FDA Field Service Representative, Chad Thorsten, at 320-221-3739.

FUTRES MARKET

First District Association will forward contract milk based on Class III futures for FDA members and customers who desire to lock in base values for milk. First District Association also provides a valuable option for interested and qualified members to “Average Price” a portion of their deliveries. This process allows for a smooth cash flow with level prices. Market information can be obtained by accessing the FDA Internet web page at www.firstdistrict.com, calling our voice mail system toll-free at 1-866-593-4235 or locally dial 593-4235, phoning Blimling and Associates at 1-800-726-9928, or contact Glenn Kaping at (320) 593-4239.