Dairy Market News: Category News

Lilly To Purchase Monsanto Cow-Hormone Unit For $300M

Brian Gould — Wed, 20 Aug 2008 14:02:00 -0500

Eli Lilly & Co. (LLY) agreed to pay $300 million for a Monsanto Co. (MON) business that produces a controversial hormone used to boost milk production in dairy cows. Under the agreement, Lilly will acquire the commercial business for the Posilac brand, including the intellectual property and a Georgia plant. In addition to the $300 million upfront payment, Monsanto will receive “contingent consideration,” the companies said. Monsanto had disclosed plans to sell the unit two weeks ago, without providing details. The announcement came after consumer-health groups had raised questions about the health effects of the hormone, which is a natural protein produced in the pituitary glands of cows. At the time, Monsanto said that sales for Posilac were strong and that the sale of the business wasn’t in response to critics.

U.S. Cheese Exports Increase 47% Over June '07

Brian Gould — Wed, 13 Aug 2008 11:14:00 -0500

June total cheese exports were 26.9 million lbs. This represents a 47% increase over June ‘07.

Aug. 2008 WASDE Report Now Available

Brian Gould — Tue, 12 Aug 2008 13:25:00 -0500

USDA’s Aug. 2008 WASDE Report is now available for download.

Most Dairy Products Have Higher June Production Levels Compared to 2007

Brian Gould — Tue, 05 Aug 2008 07:26:00 -0500

Total cheese production for June was 803.3 mil. lbs. an increase of 1.3% vs. 2007.
Butter production was 119.8 mil. lbs., an increase of 9.0%. NDM/SMP production was 166.1 mil. lbs., an increase of 23.4%. June Dry whey production decreased 2.3% to 92.5 million lbs.

Class III and IV Make Allowance Changes to Take Effect Sept. 1

Brian Gould — Thu, 31 Jul 2008 04:44:00 -0500

The USDA issued an interim final rule updating the manufacturing make-allowance. This decision amends the manufacturing allowances for cheese, nonfat dry milk, and dry whey. This also will increase the butterfat yield factor.

CME Spot Barrel Prices Post a Record 1-Day Decline

Brian Gould — Thu, 31 Jul 2008 04:33:00 -0500

Barrel cheese price fell 28¢, closing at $1.65 with 12 loads sold. This is the largest one-day price decline in history, pushing price to the lowest level since May 16, 2007. Blocks lost 11.25¢ and closed at $1.97.

As a result of the cheese price decline the SEP-JAN milk futures contracts closed down the 75¢ daily limit. Futures contracts in 2009 averaged $18.51 on the close, dropping 47¢ from Tuesday. The 12-mo. average price for 2009 declined $2.08 since June 18.

CWT Accepts Herd Retirement Bids Accounting for Nearly a Half a Billion Lbs. of Milk

Brian Gould — Fri, 18 Jul 2008 09:23:00 -0500

Cooperatives Working Together announced on July 17^th that it has tentatively accepted 209 bids in its herd retirement program, representing 25,474 cows and 440 million pounds of milk.

Starting next week, CWT field auditors will begin visiting the 209 farms whose bids were accepted, checking their milk production records, inspecting their herds, and tagging each cow for processing. All farmers will be notified no later than August 12^th as to whether their bid was among those accepted in this fifth herd retirement round.

May Cheese Exports Nearly Equal Imports

Brian Gould — Wed, 16 Jul 2008 08:20:00 -0500

In May, U.S. cheese imports were 27.4 mil. lbs., down 20.8% from May 2007. For the first time, cheese import and export volumes were nearly identical.

The Trend for Increased Cheese Exports Continue

Brian Gould — Thu, 10 Jul 2008 07:05:00 -0500

The trend of increased month-over-month U.S. cheese exports that started last August continued with the level of cheese exports in April. April cheese exports totaled 13,153 metric tons. This compares to 11,727 metric tons exported in March 8,497 metric tons exported in April ‘08.

Slaughter Begins in California Dairy Herd Exposed to TB

Brian Gould — Wed, 09 Jul 2008 13:04:00 -0500

More than 4,800 dairy cows at risk of carrying tuberculosis are being slaughtered this week in central California, where nearly 16,000 cattle in the country’s largest milk-producing region have been quarantined, federal officials said.

Undersecretary of Agriculture Bruce Knight met privately with local dairy operators Tuesday along with the state veterinarian and other industry officials monitoring three new cases of TB recently discovered in Fresno County dairies.

Federal and state agriculture officials were still tightlipped about the identities and locations of the three dairies where cows tested positive for the disease, which can be transmitted to humans and other mammals through the air or through drinking unpasteurized milk from an infected cow.