Here is a brief look at the news affecting dairy producers as October 2023 comes to a close:

Natzke dave
Dave Natzke
Editor / Progressive Dairy

Digest highlights

Johnson proposes House ag appropriations, farm bill schedule

Elected new house speaker on Oct. 25, Rep. Mike Johnson (R-Louisiana) has proposed a plan to move forward on multiple appropriations bills for fiscal year 2024, which began on Oct. 1.

In his proposed schedule to fellow Republicans prior to his election, Johnson said the agriculture appropriations bill would be considered during the week of Nov. 13.

With the current continuing resolution set to expire on Nov. 17, he also suggested another stopgap measure be approved, which would extend government funding until Jan. 15 or Apr. 15, 2024.

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More broadly, Johnson’s proposal included House passage of the 2023 Farm Bill in December. That prompted more than 60 Republican House members to urge Johnson to make the farm bill a priority, noting that 92% of the nation’s planted acreage are represented by Republican members.

USDA releases new organic livestock standards

The USDA’s Organic Livestock and Poultry Standards (OLPS) final rule has been released. Implementation of the rule would start 60 days after publication in the Federal Register and could take years to fully be in effect.

The new rule establishes standards for organic livestock and poultry production that are designed to promote competitive markets and consumer transparency. The rule adds detailed regulations related to animal health care, indoor and outdoor space standards, manure management, temporary confinement of livestock, access to the outdoors, transportation conditions and humane euthanasia and slaughter.

In partnership with USDA-accredited certifiers, USDA’s National Organic Program will oversee the implementation of and enforce compliance with the standards.

A copy of the advance rule and fact sheet are now available. Look for publication of the rule (AMS-NOP-21-0073) in the Federal Register.

Butter inventory tightens

Butter inventories in cold storage tightened somewhat in September. According to the USDA’s monthly Cold Storage report, released Oct. 25:

  • Butter stocks were estimated at 275.4 million pounds on Sept. 30, down 6% from August and the lowest since January 2023, but still 3% more than September 2022.
  • Total natural cheese stocks were estimated at about 1.47 billion pounds on Sept. 30, down 2% from August and unchanged compared to September 2022. Stocks of American cheese were estimated at about 851 million pounds, unchanged from both the previous month.

The USDA’s September Dairy Products report will be released on Nov. 3.

Vitaliano: Domestic dairy demand strengthens price outlook

Reduced milk production and strong domestic consumption are showing up in dairy product production and inventory levels, according to National Milk Producers Federation’s (NMPF) Peter Vitaliano. Summarizing dairy markets in the October 2023 Dairy Management Inc./National Milk Producers Federation Dairy Market Report, he said that’s helping set the stage for a milk price rebound.

While U.S. consumers continued their strong uptake of dairy products, weakness in world dairy demand has dropped the share of U.S. milk solids production exported this year by about a full percentage point from the record levels of the previous two years. This year’s rate has remained in the mid-16% range.

For more information on commercial use, dairy trade, milk production, product inventories, prices and margins, view the October 2023 Dairy Market Report.

Coming up

It's a busy week ahead, so check the Progressive Dairy website and watch for Thursday's digital newsletter for updates on:

  • The next meeting of the Federal Reserve Board’s Federal Open Market Committee (FOMC) is scheduled for Oct. 31-Nov. 1. The final meeting for 2023 is Dec. 12-13.
  • September’s USDA Dairy Margin Coverage (DMC) program margin and potential indemnity payments are calculated on Oct. 31. As of the close of futures trading on Friday, Oct. 27, the DMC decision tool was forecasting a September margin of $8.48 per hundredweight (cwt).
  • October Federal Milk Marketing Order (FMMO) Class II, III and IV milk prices are announced on Nov. 1, followed by the release of FMMO uniform pricing and pooling data, Nov. 11-14.

Looking farther out, the 2023 joint annual meeting of the National Dairy Promotion and Research Board (NDB), NMPF and the United Dairy Industry Association (UDIA) will be held Nov. 12-15, in Orlando, Florida.