The Milk Income Loss Contract program has gained another two years of support from lawmakers. The bill is on the way to the president for signing.

The House passed a budget package that renews MILC at a cost of $1 billion. The vote was 216-214. The extension was fought for by lawmakers from the Northeast and Upper Midwest, and was opposed by fiscal conservatives and Western dairy producers and their supporters.

Source: WCAX/ Associated Press, Feb. 2, 2006
Source URL: http://www.wcax.com/Global/story.asp?S=4443460&nav=4QcS

While 2005 milk prices didn’t reach the lofty levels of 2004 in most months, they were much higher than expected, and the state’s dairy cows pumped out 3.5 percent more milk than recorded in 2004. As a result, milk revenue was down only about $100 million from 2004. Overall meat animal cash receipts increased, with cattle and turkey prices exceeding their 2004 averages and other livestock and poultry prices staying close to last year’s. While crop revenue was down from 2004, due primarily to sharply lower prices for corn and soybeans late in 2005, higher government payments made up much of the difference.

Here’s what we expect for 2006.
Milk prices will drop as the nation’s dairy herd expands. Cow numbers will increase slightly as herd expansions more than offset cow losses from dairy farm exits. Milk yield per cow will be up around 2.5 percent. Total milk production will be about 181.5 billion pounds. Demand should grow by at least 1.5 percent, to 182.4 billion pounds, even after accounting for the effect of higher energy costs. Expect 2006 milk prices generally to average about $1 per hundredweight lower than 2005.

Source: University of Wisconsin, February 2006
Source URL: http://www.aae.wisc.edu/pubs/status/docs/status2006.pdf

Total cheese output (excluding cottage cheese) was 791 million pounds, 2.2 percent above December 2004 and 3.9 percent above November 2005.

American type cheese production totaled 325 million pounds, 0.3 percent above December 2004 and 4.9 percent above November 2005.

Butter production was 126 million pounds, 5.9 percent above December 2004 and 13.3 percent above November 2005.

Source: USDA/ NASS, Feb. 3, 2006
Source URL: http://www.usda.gov/nass/PUBS/TODAYRPT/dary0206.txt

FLUID MILK:  Milk intakes are generally increasing throughout the country with the exception of Pacific Northwest where continued wet and muddy conditions are affecting cow comfort and causing some increased culling. Saturated soils along with windy conditions have also caused mudslides and, along with falling trees, have taken out electrical lines in the Northwest. Manufacturing plants are continuing to operate on extended schedules. Most Southeastern balancing plants are now operating near capacity. 

Source: USDA, Feb. 3, 2006

Cheddar Cheese prices received for US 40 pound Blocks averaged $1.35 per pound for the week ending January 28. The price per pound decreased 1.3 cents from the previous week. The price for US 500 pound Barrels adjusted to 38 percent moisture averaged $1.33 per pound, down 2.0 cents from the previous week.

Butter prices received for 25 kilogram and 68 pound boxes meeting USDA Grade AA standards averaged $1.32 per pound for the week ending January 28. The U.S. price per pound decreased 3.6 cents from the previous week.

Source: USDA/ NASS, Feb. 3, 2006
Source URL: http://www.usda.gov/nass/PUBS/TODAYRPT/dppr0506.txt

For the week grain and soybean bids were higher except wheat which was mix. Wheat found support from the higher soybeans, dry conditions in the southern plains, and the possibility of India coming into the market soon. Iraq is supposed to tender for one million bushels of wheat and the U.S. is hoping for a large share, but nothing official yet. Weekly export sales were reported at 429,200 tonnes. Corn continues to go up as the higher soybeans, hot dry weather in Argentina early in the week, and solid demand news triggered the gains. Over 200,000 tonnes of corn were announced this week. Weekly export sales for corn came in at 1.44 million tonnes as compared to trade estimates 1.0-1.3 million tonnes. Soybeans also saw gains as dry hot weather in Argentina prevailed early in the week. However, moisture later in the week limit the gains. The weather outlook is calling for dry conditions again. Weekly export sales were posted at 446,600 tonnes as compared to trade expectations 400,000-600,000 tonnes. Wheat was 6 cents lower to 6 cents higher. Corn was steady to 4 cents higher. Sorghum was 6-7 cents higher. Soybeans were 9-11 cents higher.

Source: USDA/ AMS, Feb. 3, 2006
Source URL: http://www.ams.usda.gov/mnreports/SJ_GR851.txt

Lean boneless beef prices were steady to lower this week as packers try to keep inventories at manageable levels. Buyer interest was light from all sectors with most grinders showing little interest in product at current levels. Buyers have been purchasing product mostly on an as needed basis due to lighter demand from consumers. Seasonal needs have shifted to less grind products, largely due in part to the unseasonably warm winter weather throughout the country.
 
 Import boneless beef was trading firm to slightly higher on early week trading. Market activity was mostly slow to moderate on light to mostly moderate demand. Offerings were light with New Zealand offerings very light and no increase foreseen in the near future. Import boneless continues to be a greater value in cost formulations for the grinders when compared to domestic product. Cow cuts prices were mixed this week with round and loin cuts unevenly steady. Ribeye rolls were sharply lower. The 100% lean items traded steady to weak with eye of rounds sharply lower on light to moderate demand and offerings.

Lean boneless beef 92-94% 1.00 to 3.00 lower; 90% steady to 6.00 lower; 85%  steady to 1.00 lower; 81% not established; 75% unevenly steady; 73% not established; 65% steady to 5.00 lower. 100% lean items steady to weak with eye of rounds sharply lower.
  
The Cutter cow carcass gross cut out value for Thursday, February 2, 2006 was estimated at 107.33 per cwt, down 1.60 from last Friday.

Source: USDA/ AMS, Feb. 3, 2006
Source URL: http://www.ams.usda.gov/mnreports/NW_LS850.txt

A longitudinal study was carried out to describe the ability of 2 tests to predict 2 conditions in dairy cattle: "infection" and "infectious," exemplifying 2 different purposes of testing.

The results of this study indicate that the ability of both tests to detect "infection" increases almost linearly from 2 to 5 yr of age, whereas the ability of both tests to detect "infectious" is not affected by age. Purpose-specific tests are required to appropriately interpret and use test results for management of paratuberculosis, and relevant covariates, such as age, should be included when possible.

Source: Age-Specific Characteristics of ELISA and Fecal Culture for Purpose-Specific Testing for Paratuberculosis.  J. Dairy Sci. 89:569-579. S. Nielsen and N. Toft.

Eight Cheddar cheeses with 2 levels of calcium (Ca) and phosphorus (P), residual lactose, and salt-to-moisture ratio (S/M) were manufactured.

The moisture content differed among the treatments, whereas fat and protein content on dry basis was similar.

Source: Influence of Calcium and Phosphorus, Lactose, and Salt-to-Moisture Ratio on Cheddar Cheese Quality: Manufacture and Composition. J. Dairy Sci. 89:420-428. P. Upreti and L. E. Metzger.

New Vira Shield® 6+L5HB is the first and only inactivated viral vaccine available in combination with L. hardjo-bovis, the most common U.S. strain of bovine leptospirosis. The new combination, introduced by Novartis Animal Health US, Inc., gives dairy and beef producers the ability to combat infertility and reduced profitability caused by L. hardjo-bovis – in a convenient, all-in-one combination product. 

Source: Novartis Animal Health/ News Release, Feb. 3, 2006
Source URL: www.ah.novartis.com