MARKET WATCHMARKET WATCH HAY COSTS CONTINUE TO CLIMB GAS PRICES DOWN SLIGHTLYFEED
Scott DrukerSenior Business ManagerArm & Hammer Animal Nutrition
8 Progressive Dairyman Issue 15 • October 12, 2011
COMMODITIES
Source: Data taken from http://future.aae.wisc.edu/data/monthly_values/by_area/2403?area=US&tab=costs&yoy=true. Accessed: September 20, 2011.
Mar Apr JuneMay July SeptAug Oct Nov DecFebJan
2009
2010
2011
Pennsylvania$3$4$5$6$7$8$9
$10 Regional income over feed cost (per cwt)
Soybean meal* ($/ton)
Sept. 26 Price 3-week change
CA $366 $41
ID $363 $42
*Price quotes contributed by Western Milling, J.D. Heiskell.
Corn* (in tons) (in bushels)
Sept. 26 Price 3-week change
CA $295 $5
ID $286 $37
Price 3-week change
$8.26 .98¢
$8.00 $1.05
Sept. 26 Price 3-week change
CA $459 $20 ID N/T N/T
Cottonseed* ($/ton)
Supreme hay ($/ton)
Sept. 26 Price 3-week change
Central CA $315-$320 $5 UT $180-$230 NCNV $280 NC
WA/OR $285 $30
CO $210-$230 $20
NM $270-$285 $5-$20
TX $300-$350 $25-$30
ID $240-$250 $5-$15
IL $185-$210 NC
IA $190-$200 NC
KS $230-$270 $10
MO $150-$190 NC
MT $170-$200 $15
NE $170-$200 NC
VA $335 $23
PA $305-$315 NC
Source: USDA National Hay, Feed & Seed Summary
Identifying areas of fi nancial opportunity is especially important for dairy producers to maximize profi tability. One fi nancial metric that can help identify where potential opportunities exists is income over feed cost (IOFC), which is calculated by subtracting feed costs from milk production income. As they are the largest expense for your dairy operation, having a grasp of your feed costs allows you to make business-minded decisions on which ingredients are having profi table impacts. Knowing how to calculate IOFC can also help you identify the performance improvements needed to make an initial investment profi table.
� e fi gure to the right depicts IOFC per cow per day over the past three years in Pennsylvania. � e feed cost represents the cost to produce 65 pounds of milk, using regional prices of corn, soybean and alfalfa hay. � e all-milk price is used as the milk income.
Using this data, we can identify two opportunities:
• Focus on marginal income. While much conversation has taken place
related to rising input costs, the margin between milk and feed is the highest it’s been in two years. When we look beyond milk price and more specifi cally focus on marginal income, trends are positive and off er opportunity for fi nancial improvements to be made. Make sure you capitalize on these.
• Identify areas for additional income generation. When IOFC is favorable, as we have seen in 2011, look for ways to invest the additional margin to increase IOFC to even greater heights. For example, make investments in the ration that are proven to increase milk volume and component production. � is will translate to incremental benefi ts and optimized herd IOFC. PD
Dec2011
JulyMay Sept DecMar2012
Low
High
Settle$5.50
$6.00
$6.50
$7.00
$7.50
$8.00
$8.50
Oct2011
May July Aug Sept OctDec MarJan2012
High
SettleLow
$310$320$330$340$350$360$370$380$390$400
REGION
GAS DIESEL
Recent 3-week change
Yearly change Recent 3-week Yearly
change
East Coast $3.507 -.132¢ +0.876¢ $3.804 -.082¢ +0.858¢
Midwest $3.432 -.279¢ +0.754¢ $3.738 -.114¢ +0.81¢
Gulf Coast $3.309 -.185¢ +0.749¢ $3.73 -.07¢ +0.847¢
West $3.725 -.001¢ +0.851¢ $3.957 -.024¢ +0.836¢
California $3.887 -.057¢ +0.891¢ $4.039 -.019¢ +0.90¢
U.S. $3.509 -.165¢ +0.815¢ $3.786 -.082¢ +0.835¢
Nov2011
MayAprMarFeb June July Sept Oct NovAugDec Jan2012
Settle$84
$85
$86
$87
$88
$89
$90
HAY COSTS CONTINUE TO CLIMB GAS PRICES DOWN SLIGHTLY
FUTURES
ENERGY
High: $7.87 Low: $5.79
High: $385.50 Low: $320.50
High: $88.96 Low: $84.88
Corn (dollars per bushel)
Soybeans (dollars per ton)
Crude oil (dollars per barrel)
CornDec ’11 contracts $7.01 -.48¢ $7.48/$6.39Mar ’12 contracts $7.14 -.47¢ $7.61/$6.52
SEPT. 26 Avg. 3-week settle High/Low
Soybean mealOct ’11 contracts $349.71 -$22.60 $370.30/$326.00Dec ’11 contracts $354.17 -$22.94 $375.10/$330.10
Source: USDA NASS Agricultural Prices report August 15, 2011
Source: Chicago Mercantile Exchange data
Source: U.S. Energy Information Administration
The chart above displays the amount of income a U.S. producer would have remaining after paying for feed to produce one hundredweight of fl uid milk at the current all-milk price.
Prices used to calculate ratioCommodity Current Change
Corn (bu) $6.62 .30¢ Soybeans (bu) $12.90 -.20¢ Baled hay (ton) $191 $2.00 All-milk (cwt) $22.00 .10¢ Source: USDA NASS Agricultural Prices report July 2011
Sept2010
Jan2011
Mar Apr JuneMay July AugOct Nov Dec Feb
2009
2010
$6
$7
$8
$9
$10
$11
$12 U.S. income over feed costs (per cwt)
Aug. 2011: $10.36 High: $10.87 Low: $6.50
Issue 15 • October 12, 2011 Progressive Dairyman 9
Only calf products that include NeoTec4 are specifically designed to address the top 4 calf challenges. NeoTec4 is a metabolically
active fatty acid ingredient that optimizes calf performance. Don’t settle for run of the mill, make sure NeoTec4 is on your label.
neotec4.com • 800-553-1712 • 800-392-8324
NeoTec4, it’s themark of a designer label calf product.
TM
INGREDIENTS: Most calf feeds are deficient in essential fatty acids. Adding NeoTec4 ensures your calves are getting everything they need for optimal performance. NeoTec4 has considerable peer-reviewed research and is quickly becoming a standard ingredient in calf diets. Make sure your calf nutrition program includes NeoTec4.
Look for NeoTec4 in MILK REPLACERS / STARTERS / GROWERS
✓ Works on tractors, pickups and choppers
✓ Bolts to draw-bar✓ Makes chopping silage fun✓ Built tough – to pull even
the largest wagons✓ Increases productivity up
to 25%✓ Works with PTO
Bergman Mfg. Inc. • Barry Bergman800-551-4554 • www.bergmanmfg.com
Agri-Speed Hitch
Manufacturers of Agricultural Precast Products
T-Walls ranging from 6’-12’ in height
H-stylefeeders available
Various Styles of Hog & Dairy Slats Available. Width up to
4’ and Length up to 13’-4”Affordable Fence Posts
No Digging Required Patent pending
Various styles available
Toll-free: (877) [email protected]
PRECAST PRODUCTS LTD.
MARKET WATCHMARKET WATCHMARKET WATCHMARKET WATCHMARKET WATCHMARKET WATCHMARKET WATCHCATTLE
10 Progressive Dairyman Issue 15 • October 12, 2011
MARK ETWATCHSept. 26, 2011
Top Springer
Top Average
Medium Holstein Springer
ShortbredsOpen
Heifers Light
Open Heifers Heavy
HeiferCalves
BullCalves
Breeding Bulls
Empire Livestock – Burton MarketVernon, NY (800) 257-1819 (sale 9/22/11)
$1,400$100
$1,200 $50
$1,250 $150
$1,100NC
$500 $100
$800 $100
$150NC
$100$20
N/T
Mammoth Cave Dairy Auction, Inc.Smiths Grove, KY (800) 563-2131(sale 9/20/11)
$1,690 $160
$1,420 $10
$1,220 $10
$1,160$220
$510$30
$680$10
$120$10
$75 $5
N/T
New Holland Sales StablesNew Holland, PA (717) 354-4341(sale 9/21/11)
$1,650 $150
$1,500$275
$1,425 NC
$1,200$125
$1,050$450
$850 $300
N/T N/T$1,450$125
Mid-Georgia Livestock AuctionJackson, GA (770) 775-7314 (sale 9/13/11)
$1,800 $50
$1,625 $125
$1,275 $25
N/T$575 $50
$675 $200
$210$40
$80 $15
N/T
Equity Co-op LivestockStratford, WI (715) 687-4101Rocky Olsen (608) 434-4037 (sale 9/20/11)
$1,675 $25
$1,425 $25
$1,275NC
$1,250$25
$625 $125
$1,075$25
$260$25
$165$5
N/T
Lake Odessa LivestockLake Odessa, MI (573) 682-1080 (sale 9/20/11)
$1,850NC
$1,300NC
N/T $1,200NC
$700$200
$950$250
$200NC
N/T $1,200NC
Spring� eld Livestock Marketing Center Springfi eld, MO (417) 869-9500 Doug Thomas (417) 840-9316 (sale 9/28/11)
$1,575$85
$1,385$35
$920 $80
$1,130$20
$400 $90
$1,000 $40
$170$30
$100 $55
N/T
Topeka Livestock AuctionTopeka, IN (206) 593-2522 (sale 9/20/11)
$1,650 NC
$1,353 $89
N/T N/T$1,194 $42
$1,600 $150
$275$65
N/T$875$50
United Producers, Inc.Marion, MI (517) 294-3484 (sale 9/16/11)
$1,875$125
$1,725 $125
$1,400NC
$1,400NC
$500 NC
$1,050NC
N/T N/T N/T
Producers LivestockJerome, ID (208) 324-4345 (sale 9/21/11)
$1,600 $90
$1,540 $90
$1,460 $60
$1,075 $109/cwt N/T N/T N/T N/T
Toppenish Dairy Replacement SalesToppenish, WA (509) 865-2820 (sale 8/5/11)
$1,600$100
$1,400 NC
$1,300NC
$1,200NC
$155/cwt $130/cwt$50NC
$50NC
N/T
A & M Livestock Auction, Inc.Hanford, CA (559) 582-0358 (sale 9/21/11)
$1,850$75
$1,550NC
$1,350NC
$1,100$100
$150/cwtNC
$130/cwtNC
$110NC
$70$20
$1,050$50
Escalon Livestock Market, Inc.Escalon, CA (209) 838-7011(sale 9/14/11)
$1,600 NC
$1,350 $50
$1,250$50
N/T$100/cwt
NC$125/cwt
NCN/T N/T
$1,000NC
Contact Judy about being included in Progressive Dairyman’s Market Watch! [email protected] • (208) 324-7513 NC = No change N/T = No test Decrease in price Increase in price
Log on to www.progressivedairy.com to get auction reports from more locations!
NOTE: The colored bar represents cumulative year-to-date milk production. When it does not surpass the dotted line at the center of the box, it indicates state production is below the previous year’s total. When it does surpass the dotted line, it indicates production is above the previous year’s total.
MARKET WATCHMARKET WATCH WEST LEADS INCREASE IN MILK PRODUCTIONMILK
Texas435 NC
1,795 +5.9%781 +11.1%
6,394 108.6%
Utah88 NC
1,820 -0.6%160 +2.6%
1,228 100.8%
Vermont134 NC
1,580 +0.6%212 -1.4%
1,713 100.9%
Virginia96 NC
1,450 -1.7%139 -0.7%
1,159 99.7%
Washington265 NC
2,045 +1.5%542 +6.7%
4,125 104.4%
Wisconsin1,264 NC1,745 +1.2%2,206 +1.2%
17,505 99.4%
Arizona187 +1
1,810 +2.6%338 +6.3%
2,987 106.8%
California1,777 +11,970 +1.6%3,501 +2.9%
27,884 102.8%
Colorado129 +1
2,000 -1.2%258 +6.2%
1,991 107.0%
Florida119 NC
1,400 +4.9%167 +9.9%
1,578 106.9%
Idaho582 NC
2,040 +2.0%1,187 +3.9%
8,849 104.5%
Illinois98 NC
1,540 +3.0%151 +2.0%
1,272 97.5%
Indiana171 +1
1,680 +2.1%287 +3.2%
2,336 100.7%
Iowa199 -1
1,760 +3.5%350 -0.6%
2,908 99.1%
Kansas124 NC
1,750 +1.5%217 +4.8%
1,740 105.2%
Michigan368 +1
1,955 NC719 +2.4%
5,666 101.2%
Minnesota471 NC
1,520 -4.7%716 -4.5%
5,986 96.9%
Missouri96 NC
1,090 -5.2%105 -7.9%
944 95.3%New Mexico
330 NC2,065 +1.2%681 +4.9%
5,462 103.2%
U.S. Total9,217 +21,783 +1.1%16,432 +2.1%
131,795 101.6%
New York610 NC
1,785 -0.3%1,089 -0.5%
8,641 101.3%
Ohio266 NC
1,590 -1.2%423 -2.8%
3,437 96.5%
Oregon123 NC
1,765 +2.0%217 +3.8%
1,666 104.6%
Pennsylvania539 -1
1,640 -1.8%884 -2.1%
7,139 98.9%
12 Progressive Dairyman Issue 15 • October 12, 2011
BAMBAUER EQUIPMENT LLC
419.753.2275
Hose Reels
Engine Pump Power Units
Drag Hose Tool Bars
Truck Mount Power Unit with Boom Arm
Large Hose Supplier4 1/2”, 5” and 6” Drag Hoses
6” and 8” High Pressure Supply Hoses
Over 40 Years experience in the liquid manure equipment business
A Complete Line of Liquid Manure Equipment!For more information on manure handling products call
DRAG HOSE INJECTION EQUIPMENT
19151 Kettlersville Road, New Knoxville, OH 45871
Are Your Cows Having Foot Trouble?Too Much Concrete?
NEW Cross Groove PatternIncreases Traction
tern
10-Year Guarantee
• We have heavy ¾” thick rubber 5’ & 6’ wide up to 500’ lengths for feed aisle• Grooved Rubber• Parlor Ramps, etc...• Good for heavily traveled areas
Gabel BeltingCall For Info
And ReferencesDoing Businessfor 30 Years !!!PO Box 35 – Rt. 16 Olean Road • Chaff ee, NY 14030
Call Collect: 716-496-6025 • 716-440-2879 • Fax 716-496-2006
www.gabelbelting.com • [email protected]
We now have
rubber tire
scrapers
available
Manufacturers of Agricultural Precast Products
T-Walls ranging from 6’-12’ in height
H-stylefeeders available
Various Styles of Hog & Dairy Slats Available. Width up to
4’ and Length up to 13’-4”Affordable Fence Posts
No Digging Required Patent pending
Various styles available
Toll-free: (877) [email protected]
PRECAST PRODUCTS LTD.
COOLING MIDWEST LIFTS MILK-PER-COW Production
Texas434 +4
1,850 +4.2%803 +10.3%
4,815 108.3%
Legend
Number of cows(in thousands)
Milk per cow(month)
(lbs.)Total milk
production (month)
(in millions of lbs.)
Year-to-date milkproduction (total)(in millions of lbs.)
Percentage of year-to-date production versus previous year-to-date
Monthly change(in thousands)
Annual percentchange
Annual percentchange
95% 100% 105%
Sept2010
Jan2011
Feb Mar Apr May June July AugOct Nov Dec
2009 2010
9,0509,0759,1009,1259,1509,1759,2009,2259,250 August 2011: 9,217 High: 9,217 Low: 9,082Milk cows (in thousands)
Sept2010
Jan2011
Feb Mar Apr May July AugOct Nov Dec
20092010
June1,600
1,650
1,700
1,750
1,800
1,850
August 2011: 1,725 High: 1,816 Low: 1,640Milk per cow (in pounds, 30-day equivalent )
Sept2010
Jan2011
Feb Mar Apr May June July AugOct Nov Dec
2009
2010
14,500
15,000
15,500
16,000
16,500
17,000
August 2011: 15,902 High: 16,709 Low: 14,923Milk production (in pounds, 30-day equivalent)
U.S. HERD STATS
Aug. daily avg. milk per cow: 57.5 lbs.
Bob CroppProfessor EmeritusUniversity of Wisconsin – Madison
� is increase in milk production continues to be led by western states. Compared to August a year ago, Western states experienced the following increases: Arizona – 6.3 percent, California – 2.9 percent, Colorado – 6.2 percent, Idaho – 3.9 percent, New Mexico – 4.9 percent, Oregon – 3.8 percent, Texas – 11.1 percent, Utah – 2.6 percent and Washington – 6.7 percent. With Hurricane Irene followed by tropical storms, milk production was expected to be down in Northeast states. Production was down 0.5 percent in New York and 2.1 percent in Pennsylvania. Production was also down 2.8 percent in Ohio and .7 percent in Virginia. Another contributing factor for a greater increase in August milk production was some recovery from hot and humid July weather experienced in the Midwest that depressed milk per cow. PD
Arriba IIArcher III
High Resistance to Root-Knot and Stem Nematode
&
Look for
Bred to yield under pressure,both varieties are highly resistant to stem and root knot nematodes. They recover quickly after cuttings for greater yield potential. Archer III is also very winterhardy with high multileaf expression.
Call for the dealer nearest you.
Yield Potential EXQuality Potential VGStand Persistence EXCut Recovery FastCuttings per Season 5+
Resistance RatingsPea Aphid HRSpotted Alfalfa Aphid HRStem Nematode HRRoot Knot Nematode HRPhytophthora Root Rot HRAnthracnose HRFusarium Wilt HRBacterial Wilt HR
Highly Resistant toAphids and Nematodes
Fall Dormancy 6 Active Winter Growth
YieYieeld l PotPo entn ial EXEX
StaStaS nd nd PePersissistente ce EXEXCC t RR
pp pSteSteteSte Nm Nm Nm Nemaemaemm tode HRHRHRHHRRoooot KKnotnot NeNematmatodedode HRHRHR
SStem Nm Nemamatode HRR
PhyP tophthora Root Rot ot HRHR
©2011 America’s Alfalfa (logo) and Traffic Tested (logo) are registered trademarks. D1930 PD
www.americasalfalfa.com 800-873-2532
Issue 15 • October 12, 2011 Progressive Dairyman 13
Feb Mar Apr May July AugJuneOct Nov DecSept2008
Feb Mar Apr May June July Aug Sept Oct Nov DecJan2009
Feb Mar Apr May June July Aug Sept Oct Nov DecJan2010
Jan2011
CA Class 1 price
Federal Class I price$8
$10$12$14$16$18$20$22$24
MARKET WATCHMARKET WATCH GLOBAL DEMAND SLOWS, 2012 outlook lowered BUTTER PRICES DECLINE SHARPLYDAIRY PRICES
Annie AcMoodyDirector of Economic AnalysisWestern United [email protected]
Aug. 2011: $21.43 High: $21.43 Low: $9.43Aug. 2011: $23.51 High: $23.51 Low: $11.40Fluid milk prices (in dollars)
Summer unfortunately ended on a downward note with the major dairy commodities losing steam over the month of September. � e trend was not only observed domestically, but also in the global market as Dairy Market Newsreported lower prices. Values at the globalDairyTrade (gDT) auction tumbled downward, with anhydrous milkfat averaging its lowest price since it started trading at the auction and skim milk powder averaging the lowest price since 2010. Fortunately, the feed side of the equation softened some, but it remains at elevated levels.
� e growing global demand that had been fueling strong world dairy prices seems to have reached a pause. While demand didn’t disappear, uncertainty became a bigger part of the picture and prices started softening, eventually impacting our competitiveness. � e latest export data shows July year-over-year butter shipments down 21 percent. Cheese exports were up 5 percent from last year but were at the lowest level since November 2010. � e USDA projects export demand for this year at 32.6 billion pounds on a skim-solids basis, up 0.5 billion pounds from 2010. � e forecast for 2012 is lower at 32.3 billion pounds.
In light of this information, the USDA revised its price forecast slightly lower in its latest supply and demand outlook, with an all-milk price projected to range between $20.15 and $20.35 per hundredweight for 2011. Specifi cs in the report also include milk production estimates of 195.7 billion pounds for 2011 (up 1.5 percent from 2010) and 198.5 billion pounds for 2012 (up 1.4
Used in PD
Used in Lechero
Used in Cattleman
Used in Forage
“Hey, fellas, look! Years of therapy havehelped me overcome my shyness. I used to be a timid woodland creature, but now I’m bold and confi dent and can stand right out here in
the open .... Why, I’ve never felt so alive!”
Creators Syndicate, Inc. [email protected]© Leigh Rubin! www.rubescartoons.com
X
PROCROSS is a trademark of Viking Genetics and Coopex Montbeliarde
Phone: (614) 873-4683 www.selectsires.com
Phone: (800) 640-2855 www.creativegeneticsofca.com
PROCROSS is the proven crossbreeding program used by progressive dairy farmers around the world. The combina-tion of Swedish Red, Montbeliarde and Holstein has proven to be the most profitable crossbreeding program resulting in the maximum hybrid vigor on top of the high performance of these three breeds.
IF YOU’RE CONSIDERING CROSSBREEDING, UTILIZING THE PROCROSS WILL:
Maintain or increase your herd’s solids production
Result in more pregnant cows - Swedish Red and Montbeliarde crosses are known for their higher fertility.
Provide easier calving - Swedish Red and Montbeliarde crosses have outstanding maternal calving ability due to strong selection for decades. - Swedish Red is an ideal option for heifers - averaging only 5.5% difficult births.
Cut your total costs - Research has shown a slight decrease in milk volume from the PROCROSS animals, while maintaining components and increasing milk quality. - Easier calvings in all cases require less vet costs. - The crosses offer clear superiority in terms of fertility, survival and ability to calve a second time.
Increase your profits - “Crossbreeding makes more profit” (+25%). Reported by the California Cost of Production Annual 2007
Distributed in the U.S. by:
14 Progressive Dairyman Issue 15 • October 12, 2011
Sept2009
Feb Mar Apr May June July AugOct Nov Dec Jan2010
Feb Mar Apr May June July Aug Sept Oct Nov Dec
Futures2011
2012
Jan2011
2013
$11
$13
$15
$17
$19
$21
$23
GLOBAL DEMAND SLOWS, 2012 outlook lowered BUTTER PRICES DECLINE SHARPLYClass III (in dollars)
9/24/11
7/2/11
8/6/11
9/3/11
10/2/10
11/6/10
12/4/10
1/1/11
2/5/11
3/5/11
4/2/11
5/7/11
6/4/11
20102009
$1.00
$1.25
$1.50
$1.75
$2.00
$2.25
$2.50 Sept. 24, 2011: $1.81 High: $2.23 Low: $1.24Butter (weekly average in dollars)
9/22/11
9/23/11
9/26/11
9/9/11
9/12/11
9/13/11
9/14/11
9/15/11
9/16/11
9/19/11
9/20/11
9/21/11
9/6/11
9/7/11
9/8/11
$1.75
$1.80
$1.85
$1.90
$1.95
$2.00
$2.05Butter prices in the U.S. got tangled in a freefall-like decline in September as CME spot prices went from $2 a pound at the beginning of the month, all the way down to $1.81 per pound on September 24. NASS prices, which typically lag prices at the CME, were not down quite as much yet, averaging $1.93 per pound for the week ending September 17. USDA’s Cold Storage report showed an increase in August butter inventory over last year of 7 percent, the fi rst year-over-year increase since 2009. Stocks were down 11 percent from July, a normal pattern for this time of year as we approach the holiday buying season.
AprMarFebNov Dec Jan2011
May June AugOct JulySept2010
2009
2010
$1.00$1.10$1.20$1.30$1.40$1.50$1.60$1.70$1.80
Aug. 2011: $1.65 High: $1.74 Low: $1.03Non-fat dry milk
4/2/11
9/3/11
9/24/11
10/2/10
11/6/10
12/4/10
1/1/11
6/4/11
7/2/11
8/6/11
2/5/11
3/5/11
5/7/11
2009
2010
$1.20
$1.45
$1.70
$1.95
$2.20
9/23/11
9/26/11
9/8/11
9/9/11
9/12/11
9/13/11
9/14/11
9/15/11
9/16/11
9/19/11
9/20/11
9/21/11
9/22/11
9/6/11
9/7/11
$1.70
$1.72
$1.74
$1.76
$1.78
$1.80
Sept. 24, 2011: $1.72High: $2.15 Low: $1.27
Cheese (weekly average in dollars)
Cheese markets also followed the declining trend, but in a less dramatic manner: CME Cheddar block prices lost 6.25 cents over three weeks. As a comparison, the most recent NASS-surveyed weekly block prices averaged nearly a dime higher, at $1.8159 per pound. Class III futures followed the CME trend and also declined recently, losing as much as $1.15 per hundredweight in the last month for October contracts. The imputed Cheddar cheese price based on current futures would yield a price of $1.72 per pound for October, in line with the current spot market.
Aug. 2011: $21.67 High: $21.67 Low: $12.11
percent from 2011). High dairy prices throughout the spring and summer, despite high feed prices, contributed to the progressive herd expansion that is occurring across the country. According to the latest USDA Milk Production report, there were 94,000
more cows in the U.S. dairy herd in August versus the same time last year. Milk per cow also showed improvement, increasing 19 pounds over the same month last year. In 2012, the national dairy herd is expected to decline slightly. PD
Because cows don’tcome with
instructions
Milk to the MAX® goes beyond nutrition to
provide on-farm evaluations and employee instruc-
tion in English or Spanish. Vi-COR® provides this
program as a free customer service. We provide
training on cow physiology through our new
udder dissection wet lab, as well as cow comfort and
proper milking procedures – helping your employees
understand their important role in maximizing milk
production and improving quality. Find out if your
at www.milktothemax.com.
Free employee training in English or Spanish
That’s the power of Vi-COR®
www.vi-cor.com641.423.1460 800.654.5617 Mason City, IowaVi-COR® is a registered trademark of Varied Industries Corporation, Mason City, IA, USA
©2010 Varied Industries Corporation. All rights reserved.
Milk to the MAX ®
Issue 15 • October 12, 2011 Progressive Dairyman 15