Wisconsin is pulling out all the stops in an effort to stave off California and retain its cheesehead crown as the nation’s top cheesemaker.

In 1993, Wisconsin lost its title as the nation’s top milk producing state to California, and the battle to hold onto its top cheesemaker crown was on. To keep its top standing, Wisconsin is offering a slew of incentives to help its dairy producers put out more product. Included among the offerings are: a 10 percent tax credit of up to $1.5 million each, low-interest loans and grants to modernize, promote specialty cheeses, and prod farmers into buying more cows.

Source: Bloomberg/ Jeff Wilson, Feb. 10, 2006
Source URL: http://www.bloomberg.com/apps/news?pid=10000103&sid=ahO7VXWg4H7s&refer=us

This report, released by the Office of the Chief Economist, provides long-run (10-year) baseline projections for the agricultural sector through 2015. Projections cover agricultural commodities, agricultural trade, and aggregate indicators of the sector, such as farm income and food prices.

Key results in the baseline projections include the following:

• Productivity gains are expected to boost milk output per cow and total milk production throughout the projections. Milk cow numbers are expected to decline after 2006 at a relatively slow pace as increasing specialization of dairy farms over time makes exit rates lower than in past decades.

Source: USDA/ ERS, Feb. 10, 2006
Source URL: http://www.ers.usda.gov/Publications/OCE061/

Forecast milk supply in 2006 is raised slightly as the January 1 Cattle report confirmed increased availability of replacement heifers and more cows are expected to enter the herd. However, most product prices are forecast lower than last month as current prices are below expectations. Increased supplies of dairy products will likely result in lower prices. Although whey prices are expected to be stronger, lower forecast cheese prices will result in a reduced Class III price. Both butter and nonfat dry milk prices are forecast lower than last month, and the Class IV price forecast is lowered to reflect this. The all milk price for 2006 forecast is lowered to $13.10 to $13.80 per cwt.

Source: USDA/ ERS, Feb. 9, 2006
Source URL: http://usda.mannlib.cornell.edu/reports/waobr/wasde-bb/2006/wasde431.txt

In February, the USDA lowered the U.S. soybean export forecast by 1.1 MMT to 24.8 MMT, down 5.2 MMT from 2004/05. The decline in U.S. exports combined with an increase in Brazilian soybean exports to 26.1 MMT causes the U.S. not to be the top exporter of soybeans for the first time in history.

Despite a forecasted 1.6 MMT increase in global soybean imports, U.S. soybean exports through the end of January are down 4.9 MMT compared to the same period in 2004/05.

Source: USDA/ FAS, Feb. 10, 2006
Source URL: http://www.fas.usda.gov/oilseeds/circular/2006/06-02/FULL06FEB.pdf

Argentina’s corn production for 2005/06 is forecast at 15.5 million tons, down 8 percent from last month and down 21 percent from last year. Harvested area for 2005/06 is forecast at 2.30 million hectares, down 4 percent from last month and down 15 percent from last year. Yield is forecast at 6.74 tons per hectare, which is down 4 percent from last month and down 7 percent from last year. As of January 26, planting was 98 percent complete, compared to 99 percent complete at this time last year. Some area is left to be planted in Santiago del Estero; Avellanda, Santa Fe; and Río Cuarto, Cόrdoba. There are two main reasons for the overall decrease in area from last year.

Source: USDA/ FAS, Feb. 9, 2006
Source URL: http://www.fas.usda.gov/wap/circular/2006/06-02/Wap%2002-06.pdf

Sharply lower corn and wheat production this year is expected to drop Argentine grain exports to a 7-year low. While last year record exports made it the world’s second largest grain exporter, this year it is expected to fall to fifth place. For corn, lower area and unfavorable growing conditions have curtailed production. This, coupled with robust domestic feed demand, has added upward pressure to prices. Recent FOB quotes (Up River) are at or above U.S. Gulf prices, which has not happened for about 3 years. While new crop sales remain slightly ahead of last year, the pace has slowed considerably in recent weeks.

Source: USDA/ FAS, Feb. 10, 2006
Source URL: http://www.fas.usda.gov/grain/circular/2006/02-06/all.pdf

FLUID MILK:  Milk production is increasing in most parts of the country. Some of the larger gains are seen in the Southern Tier of states. Although above year earlier levels, milk output in parts of Texas and Arizona is being impacted by drought conditions. Most California contacts are reporting increasing milk output, while very wet conditions in the Pacific Northwest are having a negative impact on production gains. In the Upper Midwest, milk production is increasing along seasonal patterns. Fluid milk supplies range from ample to burdensome in most parts of the country. Bottled milk sales are not as brisk as they have been and many bottlers are still cancelling contracted loads. Surplus milk volumes are increasing and manufacturing plant capacities are being tested. Contacts have commented that volumes are more in line with spring flush volumes. Premiums usually associated with spot milk sales, seem to have disappeared and some milk moved at a discount to Class prices. The fluid cream market is weak as supplies far outpace Class II demand and spot prices, along with the CME cash butter price, are declining. Cream utilization in the production of ice cream is starting to show some improvement, while cream cheese production is about steady. Excess cream volumes are growing and clearances to butter producers are still increasing.

Source: USDA, Feb. 10, 2006

Another positive week for grain and soybean bids after seeing losses early in the week. Wheat continues to find support from dry conditions in the southern plains. Kansas crop ratings for January were reported at 52 percent in good to excellent condition down 9 percent from last month. Texas crop is rated at 1 percent good to excellent, 32 percent poor, and 57 percent very poor. The USDA supply/demand report was released yesterday posting ending stocks for the 2005-2006 season at 542 million bushels as compared to trade estimates of 536 million bushels. Global ending stocks were reported at 141.96 million tonnes versus 144.7 million tonnes last month. Weekly export sales for wheat were posted at 354,700 tonnes as compared to trade estimates 250,000-400,000 tonnes.

Source: USDA/ AMS, Feb. 10, 2006
Source URL: http://www.ams.usda.gov/mnreports/SJ_GR851.txt

Cheddar Cheese prices received for US 40 pound Blocks averaged $1.32 per pound for the week ending February 4. The price per pound decreased 3.8 cents from the previous week. The price for US 500 pound Barrels adjusted to 38 percent moisture averaged $1.28 per pound, down 5.6 cents from the previous week.

Butter prices received for 25 kilogram and 68 pound boxes meeting USDA Grade AA standards averaged $1.28 per pound for the week ending February 4. The U.S. price per pound decreased 4.2 cents from the previous week.

Source: USDA/ NASS, Feb. 10, 2006
Source URL: http://www.usda.gov/nass/PUBS/TODAYRPT/dppr0606.txt

The lean boneless beef complex started the week at firmer to higher prices. As the week progressed prices began to decline due to light demand, especially from the retail sector. Many trade participants reported light consumer demand due to cheaper alternative protein sources. Live slaughter cow numbers remained limited, forcing packers to continue to bid higher on cows in order to secure enough numbers to fill normal business requirements. Import boneless beef prices early in the trading period were weak, but after news broke about Foot and Mouth in Argentina prices began to trend upward. The Uruguay 90% cow experienced the most advance. Available supplies previously scheduled for shipment to the US were being held back for the addition demand created by the lack of product available from Argentina. Cow cut prices were mostly lower on light demand and light to moderate offerings.
 
Lean boneless beef 92-94% steady to 1.75 lower; 90% 1.00 to 1.25 higher; 85%  weak to 1.00 lower; 81% not established; 75% steady to firm; 73% not established; 65% 1.00 to 2.00 higher. 100% lean items outside rounds and S.P.B. steady; all other items lower.

The Cutter cow carcass gross cut out value for Thursday, February 9, 2006 was estimated at 106.97 per cwt, up .02 from last Friday.

Source: USDA/ AMS, Feb. 10, 2006
Source URL: http://www.ams.usda.gov/mnreports/NW_LS850.txt

A sensitive nisin quantification bioassay was constructed, based on Lactococcus lactis chromosomally encoding the nisin regulatory proteins NisK and NisR and a plasmid with a green fluorescent protein (GFP) variant gfpuv gene under the control of the nisin-inducible nisA promoter.

This method was up to 1,000 times more sensitive than a previously described GFP-based nisin bioassay. This new assay made it possible to detect significantly smaller amounts of nisin than the presently most sensitive published nisin bioassay based on nisin-induced bioluminescence.

Source: Bioassay for Nisin in Milk, Processed Cheese, Salad Dressings, Canned Tomatoes, and Liquid Egg Products. Applied and Environmental Microbiology, February 2006, p. 1001-1005, Vol. 72, No. 2. J. Hakovirta, J. Reunanen, and P. E. J. Saris.

Japan found its 22nd confirmed case of mad cow disease last month, but that total may triple if the 45 herdmates of that cow are infected as officials suspect.

The cows at a dairy farm in Betsukai, Hokkaido, were fed meat-and-bone meal and will be destroyed, officials said. Japan has not confirmed any cases of mad cow attributable to MBM despite its widespread use even after warnings from the United Kingdom.

Source: Japan Times/ Kyodo/ Associated Press, Feb. 10, 2006
Source URL: http://search.japantimes.co.jp/cgi-bin/nn20060210a1.html