The Land :: www.TheLandOnline.com

Nuts & Bolts

October 11, 2012

Rising feed cost seen driving milk production down

CHICAGO — U.S. milk production is headed for the biggest contraction in 12 years as a drought-fueled surge in feed costs drives more cows to slaughter.

Output will drop 0.5 percent to 198.9 billion pounds (90.2 million metric tons) in 2013 as the herd shrinks to an eight- year low, the U.S. Department of Agriculture estimates. Milk futures rose 45 percent since mid-April and may advance at least another 18 percent to a record $25 per 100 pounds by June, said Shawn Hackett. The president of Boynton Beach, Fla.-based Hackett Financial Advisers Inc. correctly predicted the rally in March.

Dairies in California, the top milk-producing state, are filing for bankruptcy, and cows are being slaughtered at the fastest rate in more than a quarter century. Corn surged to a record in August as the USDA forecast the smallest crop in six years because of drought across the U.S. Global dairy prices tracked by the United Nations rose 6.9 percent last month, the most among the five food groups monitored, and that will probably mean record costs next year, Rabobank estimates.

"Farmers can't afford to buy as much grain and protein, and that affects milk production," said Bob Cropp, an economist at the University of Wisconsin in Madison who has been following the industry since 1966. "In California, there've been some foreclosures and some sell-off of cows quite heavily. You're going to see that in other parts of the country."

Class III milk, used to make cheese, jumped 22 percent to $21.10 on the Chicago Mercantile Exchange this year. That's more than 21 of the 24 commodities in the Standard & Poor's GSCI Spot Index, which rose 2.2 percent. The MSCI All-Country World Index of equities climbed 12 percent, and Treasuries returned 1.8 percent, a Bank of America Corp. index shows.

The global dairy market is facing a scarcity of supply in the next 12 months as output slows in the United States and Europe and demand keeps expanding, Rabobank said in a Sept. 27 report. Surplus milk available for shipment from the seven biggest exporting regions will decline for the first time in four years, and there is little excess inventory, the bank's team of 11 dairy analysts estimate.

Text Only
Nuts & Bolts
  • Expo takes precautions to prevent spread of virus
    An outbreak of a potentially deadly equine virus will mean some empty stalls at the upcoming Minnesota Horse Expo.

    April 14, 2014

  • CNHI papers honored for spot news, enterprise journalism

    Newspapers in Norman, Okla., Anderson, Ind., and Andover, Mass., are among those honored in the Best of CNHI 2013.

    April 3, 2014 1 Story

  • touch.jpg Divorce is on the rise, and it's the baby boomers' fault

    A new paper from demographers at the University of Minnesota found that the age-standardized divorce rate has actually risen by an astonishing 40 percent since 1980.

    April 3, 2014 1 Photo

  • Newborn.JPG Census: U.S. has fewest births since 1998

    The U.S. recorded the most deaths in its history and the fewest births since 1998, resulting in the lowest population gain from natural causes in 35 years, an analysis of 2013 Census Bureau estimates released Thursday shows.

    April 3, 2014 1 Photo

  • dog-sunglasses.jpg Do animals have a sense of humor?

    Right now, in a high-security research lab at Northwestern University's Falk Center for Molecular Therapeutics, scientists are tickling rats. Their goal? To develop a pharmaceutical-grade happiness pill. But their efforts might also produce some of the best evidence yet that humor isn't something experienced exclusively by human beings.

    April 3, 2014 1 Photo

  • VIDEO: X-Ray released of tree trimmer with chainsaw embedded in neck

    Not only did the tree trimmer who got a chainsaw caught in his neck survive, he climbed down the tree by himself after the accident.

     

     

    April 3, 2014

  • Screen shot 2014-02-20 at 4.23.54 PM.png Get ready for spring with these 3 apps for gardening

    Even if it's still cold out, it's almost time to start planning a spring garden. Whether you have a full backyard garden you eat from all summer or just a few tomatoes and herbs on the porch, these apps will have you make the most of your garden

    February 28, 2014 1 Photo

  • Data breach hits Target's profits, but that's only the tip of the iceberg

    In its first financial release since the December breach that enabled the theft of millions of customers' payment data, Target said profits fell 46 percent and that the breach had already cost the retailer $17 million. The final tally will be bigger, the company said, but it's unclear by how much.

    February 28, 2014

  • Dwindling Midwest high school grads spur college hunt

    A waning number of high school graduates from the Midwest is sparking a college hunt for freshman applicants, with the decline being felt as far away as Harvard and Emory universities.

    February 28, 2014

  • Six reasons childhood obesity has fallen so much

    A major new paper appearing in Wednesday's edition of the Journal of the American Medical Association finds that childhood obesity - age 2 to 5 - has fallen from 13.9 percent in 2003-04 to 8.4 percent in 2011-12.

    February 28, 2014

Featured Ads
Hyperlocal Search
Premier Guide
Find a business

Walking Fingers
Maps, Menus, Store hours, Coupons, and more...
Premier Guide
The Land's Twitter Feed