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jrsiajdranch
Veteran Advisor

From the parlor pit3-1

I really like March.  First off you know you are close to the end of winter. This winter hasn't really been a bad one. I like seasons. I like knowing that there is gonna be change. I also like knowing it is coming!  THe thing I do not like about spring is the frost leaving the ground. and all the snow melting.  AS the snow melts you find those things you forgot to put away, or as is my case the things my kids drug out and didn't put back.  We also find that therre was a reason my electric bill has been so high for 2 months.  Had two water lines that were leaking and I couldn't find them.  I knew for two months I had a problem but the water just wan't shjowing up any where the lines were supposed to be. And do not talk to me about turning off valves! Apparently the farm I bought was from a dutch influenced german casue he never spent a dime on a valve. There just aren't any. the ponly way to shut off the leak was to have no water.  That wan't an option.  So Sunday afternoon when my wife and kids finally woke up from their all night annual 4-H lock in, They had no water for showers or toilets or brushing their teeth. That wan't good. So yesterday I spent all day repairing water lines. They are fixed and hopefully that will be the end of it. Oh yea of course they were under concrete, and inside barns. So we mostly dug them out by hand.  

 

But enough about me on to the dairy mkts. Today is the bi monthly Fonterra auction. It has gone up 24% since the first of the year. I think we are due for a pull back. Not saying it will happen for sure but there is a good chance.  I'll post the results tomorrow.

 

Yesterday the USDA announced there wouldn't be a MILC pmt. for JAn. and Likely not for Feb. either. THis inspite of the fact that Feb. Had the highest monthly corn price ever.

 

It looks like NMPF is heading forward with it's Foundation for the future plan. Funny thing is they are asking for an increase in funding for a NEW farm program.  I am thinking about a snow balls chance for that.  

 

ANd finally here is an intersesting article about India's rising income level and it's impact on dairyu demand.

New Delhi

India’s milk crisis looming large
Hindustan Times
New Delhi , February 27, 2011
First Published: 23:08 IST(27/2/2011)
Last Updated: 01:56 IST(28/2/2011)
You might have to pay more for milk going by the figures. By 2021, India may have to import milk to meet a growing gap between demand and production potentially leading to global price hikes, if current trends continue. Key investment measures focused on increasing milk productivity alone can keep

even domestic prices stable, the Survey tabled in Parliament on Friday says, citing the recent spike in milk prices in India.

The country’s milk production — currently 112 million tonne — has been increasing steadily by about 3.5 million tonne a year, while the demand for milk in India is growing by about 6 million tonne a year, leading to an ever widening gap.

“With higher growth of the economy, increase in population and increased health consciousness among the populace, it is only natural that the demand for milk and milk products will increase,” the Survey’s chapter on agriculture and food management cautions.

India will need to increase milk production by about 5.5% per year to meet its requirement of 180 million tonne in 2021-22, projected under the National Dairy Plan.  http://www.hindustantimes.com/Images/HTEditImages/Images/28_02_11_Metro11a.jpg

“If it fails to do so, India may need to resort to imports from the world market. A large consumer like India entering the international market would have the potential to cause international prices to spurt,” the Survey says.

The Survey identifies outdated marketing systems, ineffective breeding programmes, limited availability and affordability of quality feed and fodder, improper veterinary structure, lack of vaccinations, inadequate research, processing and transport facilities as key problems facing the sector.

In the back drop of such fears, experts feel the volume could rise substantially by exploiting ‘untapped’ potential in the eastern states of the country.

 

 

BE safe JR.

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4 Replies
patriot3031376
Veteran Contributor

Re: From the parlor pit3-1

JR....Why should there be a MILC payment with $20.80 milk (that was my dairy's last pay)? I don't expect an LDP with $7 corn even with $800 AA.

 

Anybody going to DC with a new program or even asking for the same funding for the old program is in for an education. The Teapartiers are digging in. No money to be had.

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jrsiajdranch
Veteran Advisor

Re: From the parlor pit3-1

Just reporting the facts there Patriot. I do not think there should have been one either and I am glad there wasn't!  The contacts I have out west were livid when they thought they were gonna get one and hadn't signed up for it.  It should be very instructional to all involved when they look at milc pmts. and see how close you can be to getting it but not. Take that result over to NMPF's plan and you will see that the cost factor will never payout the way the spokespeople say it will.

And my message to NMPF from the outset was that we didn't have the money for the plan so it wasn't ever going to get advanced.   They didn't push against ethol in the last round as NCGA played the you scratch our back we will scratch your back game only to find out that there membership backlashed and then they didn't even get in line for back scratching!  They shoulda stood with the turkey growers,Beef folks,Pork folks  and others in their oposition of ethol. Now they got nothin. Which in the end will be a very good thing. 

Hope it is warm in Tampa and you have a good time. Please keep us updated.

 

 

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k-289
Senior Advisor

Re: From the parlor pit3-1

What will the Mideast bring for us JR  ?  ?

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jrsiajdranch
Veteran Advisor

Re: From the parlor pit3-1

That is a very good question.  I see Algeria has really stepped up it's food purchases and they can only buy more as they do not have stocks or infrastructure with which to produce their own milk. (unless you count camels! HAW HAW)

But their demand is different than what we are used to producing for. They like to buy dry products or manufactured products that they can reconstitute to product that fits their tastes.  We are way behind the 8 ball when answering their call. 

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