Here is a look at news affecting dairy operations that occurred over the last week.

Natzke dave
Dave Natzke
Editor / Progressive Dairy
Lee karen
Karen Lee
Managing Editor / Progressive Dairy

August 2024 Class I base price inches higher

The Federal Milk Marketing Order (FMMO) advanced Class I base price continues to inch higher. At $21.32 per hundredweight (cwt), the August 2024 advanced Class I base price is up 21 cents from July 2024 and $4.70 more than August 2023. It’s again the highest Class I base price since January 2023.

Through the first eight months of 2024, the Class I base price now averages $19.43 per cwt, moving above the 2023 annual average of $19.20 per cwt.

Class I zone differentials are added to the base price at principal pricing points to determine the actual Class I price in each FMMO. With those additions, August Class I prices will average approximately $24.14 per cwt across all FMMOs, ranging from a high of $26.72 per cwt in the Florida FMMO to a low of $23.12 per cwt in the Upper Midwest FMMO. The impact on August FMMO uniform prices will be seen in early September.

The spread in the monthly advanced Class III skim milk pricing factor ($7.48 per cwt) and advanced Class IV skim milk pricing factor ($9.20 per cwt) widened for August to $1.72 per cwt. Based on Progressive Dairy calculations, using the Class I mover calculated under the “higher-of” formula would have resulted in a Class I base price about 12 cents more than the actual price determined using the “average-of plus 74 cents” formula.

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A change in the formula back to higher-of calculations is included in both the FMMO modernization proposal and in preliminary versions of House and Senate farm bills.

GDT index ticks back upward

After a drop of 6.9% in its last trading event, the price index of dairy product prices sold on the Global Dairy Trade (GDT) platform ticked upward a mere 0.4% in the auction held July 16.

Compared to the previous auction, prices for individual product categories were mixed. Cheddar and anhydrous milkfat were up 6.2% and 4%, respectively. Butter increased 0.8%, while lactose, mozzarella, skim milk powder and whole milk powder were all down about 0.5% to 1.5%. Buttermilk powder was not traded.

The GDT platform offers dairy products from several global companies: Fonterra (New Zealand), Darigold, Valley Milk and Dairy America (U.S.), Arla (Denmark), Arla Foods Ingredients (Denmark) BMI (Germany), Kerry Dairy (Ireland) and Solarec (Belgium).

The next GDT auction is Aug. 6.

HPAI detected in dairy herd in Oklahoma

A case of of highly pathogenic avian influenza (HPAI) in an Oklahoma dairy herd has been confirmed by the USDA Animal and Plant Health Inspection Service (APHIS).

Oklahoma is the 13th state to have a confirmed positive case of HPAI in a dairy herd.

The number of confirmed cases across the country at this time is 164. Colorado, Idaho, Michigan and Texas each have had more than 20 cases per state since the outbreak began earlier this year.

Only six states – Colorado, Iowa, Idaho, Michigan, Minnesota and Texas – have had a confirmed case in the last 30 days.

The positive sample in Oklahoma was collected by the dairy in April but not submitted to USDA APHIS until recently. The dairy herd has fully recovered.

There continues to be no concern about the safety of pasteurized milk or dairy products.

Dairy producers across the country are asked to heighten biosecurity practices, provide PPE to farmworkers and monitor cattle for signs of the disease, which include decreased rumination and feed intake; decreased milk yield; thicker, concentrated, colostrum-like milk; dehydration; and fever.

Illinois requires HPAI testing for dairy cattle exhibition

The Illinois Department of Agriculture announced an intrastate testing requirement for lactating dairy cattle participating in livestock exhibitions in the state to minimize the spread of HPAI or H5N1.

While Illinois currently has no reported cases of H5N1 in dairy cattle, this step, which took effect on July 17, is a cautionary measure.

The animals must be sampled no more than seven calendar days prior to the date of arrival at the exhibition with tests conducted by a National Animal Health Laboratory Network (NAHLN) laboratory.

Negative test results must be presented at time of arrive and match the identification of the animal.

The USDA has several financial assistance options for exhibitors, including waiving the laboratory fee and assisting with veterinarian sample collection fees and shipping reimbursement.

Fiscal year 2025 ag spending bills advance in House, Senate

Both the House Appropriations Committee and Senate Appropriations Committee approved their respective fiscal year 2025 agriculture spending bills.

The House Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act provides a total discretionary allocation of $25.873 billion, which is $355 million (1.35%) below the fiscal year 2024 enacted level and $2.688 billion (9.4%) below the president’s budget request.

Increased spending is proposed by the Senate where the fiscal year 2025 Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act provides $27.049 billion in total funding, an $821 million increase over fiscal year 2024.

The individual bills now wait for their respective appearances on the House and Senate floor.

Funding for fiscal year 2024, which wasn’t approved until March 8 of this year, is set to expire on Sept. 30.

USDA announces deadline for relief assistance for producers impacted by 2022 natural disasters

The USDA announced the deadline for commodity and specialty crop producers to apply for the Emergency Relief Program (ERP) for 2022 natural disaster losses is Aug. 14, 2024. USDA’s Farm Service Agency (FSA) began accepting ERP 2022 applications in October 2023.

ERP 2022 covers losses to crops, trees, bushes and vines due to qualifying calendar year 2022 natural disaster events including wildfires, hurricanes, floods, derechos, excessive heat, tornadoes, winter storms, freeze (including a polar vortex), smoke exposure, excessive moisture, qualifying drought and related conditions.   

There are two tracks to the application process. Disaster-impacted producers may be eligible for ERP 2022 assistance under one or both tracks. To avoid duplicative benefits, if a producer applies for both tracks, the Track 2 payment calculation will take into account any payments received through Track 1.

ERP 2022 eligibility details and payment calculation factor tables are available on FSA’s Emergency Relief webpage, in the ERP Track 1 and ERP Track 2 fact sheets and through the FSA at your local USDA Service Center.

Yili receives FDA approval for dairy products, launches first U.S. flagship store

Yili Group, one of the top five dairy companies globally, recently opened its first U.S. flagship store in Los Angeles, California. Located in the 99 Ranch Market in The Shops at Santa Anita, the store launch marks a significant milestone for Yili as it expands its presence in the U.S. market. The 99 Ranch Market is one of the largest Asian supermarket chains in the U.S., with stores set up nationwide. This follows the official approval of various Yili products by the U.S. Food and Drug Administration (FDA), including Ambpomial and Youngfun liquid dairy products, as well as Chocliz, Bitter Coffee and Yili Ranch. These products are now available to American consumers.

Yili’s expansion in the U.S. market involves its four main business lines: liquid milk, milk powder, ice cream and butter. Prior to the store launch, Yili’s Kabrita goat milk infant formula products and Westgold butter products were introduced in the U.S. market.

Chobani launches shelf-stable milk exclusively for donations

Chobani LLC, a food and beverage company originally known for its Greek yogurt, launched its first-ever shelf-stable low-fat dairy milk, Chobani Super Milk. This latest product innovation is nutrient-rich and is made specifically to be donated to support people impacted by disasters as well as help some of the most vulnerable in Chobani’s hometowns.

Developed to help the American Red Cross and Chobani’s local food bank and pantry partners, Chobani Super Milk addresses a critical need by providing access to nutrient-dense, high-protein, low-fat dairy to those who need it most. On average, the American Red Cross responds to approximately 65,000 disasters annually across the U.S. At the same time, there are already 44 million Americans facing food insecurity. Chobani will produce an average of 145,000 pounds of Chobani Super Milk monthly to be deployed by the American Red Cross nationally in areas facing natural disasters and to local partners in central New York and southern Idaho communities.