Digest Highlights: February dairy cow culling was the highest in six years. McDonald’s USA is adding white cheddar to menu items. Find a summary of this and other news here.
February dairy cow slaughter highest in six years
The number of U.S. dairy cows culled during February was the highest for the month dating back to 2012 (a leap year), according to USDA records.
For February 2018, federally inspected milk cow slaughter was estimated at 260,700 head, 7,500 more than February 2017. Through the first two months of 2018, the culling total is 550,500 head, about 28,300 head more than the same period a year ago.
The USDA’s latest milk production report indicated there were 9.41 million cows in U.S. dairy herd in February 2018. Based on the slaughter estimates, about 2.8 percent of the herd was culled in February 2018, compared to 3.1 percent in January 2018.
McDonald’s USA adding white cheddar to menu
McDonald’s USA will role out new menu items with the potential to increase dairy product use, according to Dairy Management Inc. (DMI), which manages the dairy checkoff program.
DMI scientists Divya Reddy and Porter Myrick, collaborating with McDonald’s culinary team at its headquarters in Oak Brook, Illinois, helped the chain restaurant launch three items:
• McDonald’s will feature sharp white cheddar cheese slices on specialty sandwiches. The cheese slices are 30 percent larger than the American pasteurized processed cheese previously served. The cheese will be available on McDonald’s Signature Crafted Recipes sandwiches – including a new garlic white cheddar sandwich – and the Egg White Delight McMuffin in 14,000 U.S. restaurants by April 2.
• McDonald’s launched limited-time-offer McCafé turtle coffee beverages, with advertising starting April 2. Consumers can choose turtle macchiato iced and turtle macchiato hot – available with a choice of whole or nonfat milk – and turtle iced coffee. These beverages join a McCafé lineup that offers dairy in 90 percent of its items.
• McDonald’s, in partnership with Coca-Cola, recently launched a line of ready-to-drink McCafé frappés at grocery stores nationwide. The lineup will start with three flavors – caramel, vanilla and mocha.
Scott Wallin, DMI vice president of industry media relations and issues management, said it was too early to project how much the new menu items will boost milk and dairy product volume through McDonald’s.
Barb O’Brien, DMI president, said the organization has entered its third three-year partnership contract with McDonald’s. By driving an increase in dairy product use, the McDonald’s collaboration should provide a boost to dairy farmers struggling with low milk prices in the near term, while continuing to support prices long term.
Read: DMI committed to McDonald’s partnership despite ‘Happy Meal’ menu changes
No information on MPP-Dairy enrollment yet
As of March 27, there had been no announcement on when the 2018 enrollment period for Margin Protection Program for Dairy (MPP-Dairy) would reopen. However, dairy farmers who haven’t previously participated in MPP-Dairy but may be interested in enrolling for 2018 can do some preparation.
With changes made to the program in a federal budget bill approved in February, the USDA anticipates participation interest will increase. According to a notice sent to USDA Farm Service Agency (FSA) offices on March 23, the USDA encouraged county FSA offices to work with dairy producers and processors to establish a milk production history. New production history will only be established for a new dairy operation or an existing dairy operation that has not previously established a production history under MPP-Dairy.
Additionally, according to the notice, dairy operations previously enrolled in the 2018 program prior to Dec. 15, 2017, will have to submit a new contract during the re-enrollment period. FSA is still finalizing details before reopening the 2018 enrollment period.
April Class I base rises
The April 2018 Federal Milk Marketing Order Class I base price is $14.10 per hundredweight (cwt), rebounding 74 cents off March’s 21-month low. The April 2018 price is $1.95 less than April 2017’s price of $16.05 per cwt.
Through the first four months of 2018, the Class I base average is $14.29 per cwt, about $2.50 less than the average for the same period in 2017. 
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Dave Natzke
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