Dairy Information: Protecting Your Profits

The Center for Dairy Excellence offers several information resources to help producers identify opportunities to protect their profits. These documents are reviewed on a monthly “Protecting Your Profits” conference call. Click here herehttp://centerfordairyexcellence.adobeconnect.com/pxmibshlgwna/ to access the latest “Protecting Your Profits” Webinar.

Pennsylvania Dairy Industry Scorecard: The Center for Dairy Excellence publishes a monthly “PA Dairy Industry Performance Scorecard,” which looks at key factors supporting the growth of Pennsylvania’s dairy industry and evaluates trends affecting Pennsylvania’s dairy farms.

  • Dairy cow numbers held at 525,000 cows while the national herd has peaked again at 9.404million cows.
  • The Commonwealth’s rolling monthly milk production held at just under 11 billion pounds of milk in June,  similar to the Commonwealth’s production in 2001.
  • Production per cow grew .6 pounds since last June to 66.1 pounds, maintaining the state’s average DHI rolling herd average at  22,415 pounds per cow.
  • The national herd only increased production .5 pounds per cow / day  to 73.5.
  • These Pa DHI herds averaged 1548 pounds of of total fat and protein with almost  36% of the herds producing at least 1650 pounds of total components.
  • June margins strengthened as the June All Milk Price in PA improved $.80 per hundredweight compared to a $.20 increase nationally. Feed costs are $.40 per hundredweight of milk less than last June.
  • Somatic cell counts and days in milk increased as compared to last June.
  • June pregnancy rates were similar to recent years. Almost 20 percent of Pennsylvania herds have a pregnancy rate at or above 29 percent!
  • The average calving age has fallen to 25 months. Almost half of DHI herds have a calving age between 21 & 24 months!
  • Cull rates are very similar to the past several Junes.

US Dairy Industry ScorecardTo provide an overview the national dairy industry, with consumption, marketing and production trends, the center publishes the monthly “US Dairy Industry Performance” scorecard.

  • The May/June MPP margin is $8.97093.
  • The Pennsylvania MPP margin, calculated with NASS  values for milk, corn, alfalfa hay, and a soybean meal value of + $40.00 over the MPP value was $8.315 in the most recent period.
  • June slaughter numbers are higher than in recent years .
  • Butter stocks are falling slightly, 6 percent below last June. Domestic butter demand continues to be strong.
  • Domestic cheese stocks began their seasonal decline earlier than usual, which is a good sign for sales.
  • While CME butter prices are strong historically, they are well under other world markets.
  • Cheddar Cheese and milk powder prices are trading very near to other world prices.
  • U.S. dairy exports in May recovered to 14.7 percent by volume of the total production in this country compared to 13.7 percent a year ago. mexico and Canada continue to be the largest importers of U.S. dairy products.

Alan Zepp, the center’s risk management program manager, reviews both of these scorecards monthly during his “Protecting Your Profits” calls. The calls are held the last Wednesday of every month. Click here to access a recording of the latest call.