September - Premier Milk Inc.

PREMIER PRESSSeptember 2010Flavored MilkNeeds to Stayin SchoolsA recent study completed bythe Milk PEP program showedthat when school childrencannot have chocolate or anyother flavored milk, that milkconsumption decreased by35%.Currently, approximately 71%of all milk consumed in schoolsis flavored milk (chocolate andother flavors). This means thatwhen chocolate and flavoredmilks are eliminated only 1 outof every 2 students will pick upwhite milk and drink it. Theother students are opting forwater or some other type ofbeverage.Some nutritionists are arguingthat including chocolate andflavored milks with the sodaban in public schools will hurtstudents because the studentswill not get enough calcium,Vitamin D, protein, potassium,magnesium, and Vitamin A.Opponents of the flavoredmilks state that too much sugarare still is those drinks.Dairy Exports Up in July 2010FARM Program InformationNMPF announced last week that its NationalDairy FARM Program – “Farmers AssuringResponsible Management” is now acceptingenrollment in the Animal Care Program. Thisdevelopment officially launches the secondphase of the implementation process, whichincludes the start of on-farm evaluations forparticipating producers.MILC Program UpdateMILC payments for the next government fiscalyear will start October 1, 2010. For PMI producerswho will market more than 2,985,000pounds of milk from Oct. 2010 to Sept. 2011,you will need to designate which month(s) youwill want to collect your MILC payment. Youcan change your month as often as you want orneed to as long as you have changed your designatedmonth before the 14 th of the month prior.USDA released its US export trade data for July, revealing that cheese, butter, non-fat milk powder,whole milk powder, and whey powder exports were all higher than they were last year. Julycheese exports were the highest total on record with 34.5 million pounds exported, 66% higherthan July 2009, and year to date numbers are 61% higher than last year. Domestic cheese consumptionhas been increasing, and when combined with the increase in exports, is having anincreasing effect on cheese prices.Year-to-date butter exports through July were almost 11 times higher than in 2009. The worldbutter supply is tight and this is having a positive effect on butter prices in the US and the world.Year-to-date non-fat dry milk powder exports were up 7.1% compared to the same time frame in2009. Year-to-date whey powder exports were 30% higher than same period in 2009.The clearing of some the excess dairy products through these exports is helping to keep milkprices from going lower. However, increased feed prices will continue to strain dairy farmers’ability to make a profit.Premier Milk Inc.1531 SE 36th Avenue, Suite DOcala, Florida 34471Phone: (352) 433-2527Fax: (352) 433-2547www.premiermilk.orginfo@premiermilk.orgPremier Milk has joined the FARM programand booklets are being mailed to each PMI producer.Please read the booklets and becomefamiliar with it. Currently we are waiting forNMPF to hold another training seminar, and aPMI representative will attend so that this personwill be able to conduct the on-farm evaluationsas part of an in-house service. Anotherpart of this program will be an independentthird-party inspection. More information onthe third-party inspections will forwarded at alater dateUSDA will automatically designate October asyour first month if you do not request otherwise.Contact your local FSA office or the PMIoffice if you have any questions.Current price projections indicate that theMILC program will not make any paymentsuntil April or May 2011. Here are the currentprojections for MILC payments from NationalMilk Producers Federation: Oct 2010 – Jan2011 $0.00/cwt; Feb $0.05/cwt; Mar $0.20/cwt; Apr $0.29/cwt; May $0.35/cwt;June $0.40/cwt; July $0.54/cwt; Aug $0.38/cwt; Sept $0.24/cwt. These projectionswill be updated monthly to help keep youinformed, but remember that it is each producer’sresponsibility to decide when to collectpayments and to do the appropriate paperworkwith your local USDA/FSA office.

Commodity Prices Feb March April May June July August Sept CurrentCheese - World Market $ 1.9051 $ 1.8201 $ 1.7237 $ 1.7804 $ 1.8257 $ 1.7900 $ 1.7922 $ 1.7733 $ 1.8027Cheese - CME Block $ 1.4530 $ 1.4526 $ 1.2976 $ 1.4114 $ 1.4420 $ 1.3941 $ 1.5549 $ 1.6367 $ 1.7350Cheese - CME Barrel $ 1.4684 $ 1.4182 $ 1.2782 $ 1.3808 $ 1.4195 $ 1.3647 $ 1.5161 $ 1.6006 $ 1.7100Cheese - NASS $ 1.5374 $ 1.5110 $ 1.3632 $ 1.3827 $ 1.4257 $ 1.4475 $ 1.4567 $ 1.6031 $ 1.6945Butter - World Market $ 1.8584 $ 1.7123 $ 1.7336 $ 1.7984 $ 1.9732 $ 1.9363 $ 1.9850 $ 2.0361 $ 2.0494Butter - CME Cash $ 1.3950 $ 1.3561 $ 1.4641 $ 1.5382 $ 1.5896 $ 1.6380 $ 1.7787 $ 1.9898 $ 2.2225Butter - NASS $ 1.3610 $ 1.3609 $ 1.4388 $ 1.4770 $ 1.5801 $ 1.5946 $ 1.7375 $ 1.8508 $ 2.1317NFDM - World Market $ 1.3523 $ 1.2418 $ 1.2772 $ 1.4459 $ 1.5055 $ 1.3863 $ 1.3796 $ 1.3413 $ 1.3861NFDM - Central A.O.M. $ 1.3669 $ 1.2056 $ 1.1075 $ 1.2163 $ 1.3175 $ 1.3150 $ 1.2563 $ 1.2175 $ 1.2350NFDM - NASS $ 1.1929 $ 1.0812 $ 1.0454 $ 1.1208 $ 1.2520 $ 1.2631 $ 1.2277 $ 1.1557 $ 1.1195Whey - Central A.O.M. $ 0.3763 $ 0.3781 $ 0.3725 $ 0.3472 $ 0.3450 $ 0.3450 $ 0.3425 $ 0.3450 $ 0.3450Whey - NASS $ 0.3880 $ 0.3925 $ 0.3761 $ 0.3643 $ 0.3645 $ 0.3688 $ 0.3641 $ 0.3590 $ 0.3602F. O. 6 Class I @ Tampa $ 20.24 $ 19.74 $ 18.62 $ 19.20 $ 20.68 $ 21.06 $ 21.17 $ 20.90 $ 21.98Net Cl. I Prem. @ Tampa $ 3.69 $ 3.69 $ 3.69 $ 3.69 $ 3.69 $ 3.69 $ 3.69 $ 3.69 $ 3.69F.O. 6 Class I Utilization 85.5% 87.8% 87.1% 88.7% 83.7% 89.5% 86.6%F. O. 6 Blend @ Tampa $ 19.65 $ 19.13 $ 18.20 $ 18.73 $ 19.85 $ 20.87 $ 20.74PMI - Average SCC 221,509 231,576 251,511 250,795 268,735 304,914 314,049 313,372PMI - Average SPC 8,500 9,033 8,484 7,255 10,528 12,465 11,759 9,843PMI - Average PIC 26,879 33,500 16,240 12,552 11,854 28,363 11,358 9,676Premiums Paid - PMI $ 0.36 $ 0.48 $ 0.49 $ 0.49 $ 0.40 $ 0.31 $ 0.42 $ 0.38PMI Cen FL Price $ 20.47 $ 20.58 $ 19.95 $ 18.90 $ 19.08 $ 20.64 $ 21.59 $ 21.78(with rBST-free premium)Price Forecasts Sept Oct Nov Dec Jan Feb MarchPMI Cen FL Price $ 21.05 $ 21.98 $ 22.07 $ 21.47 $ 20.96 $ 20.54 $ 20.08(with rBST-free premium)Class III Milk Futures Feb March April May June July August CurrentSep-10 $ 14.84 $ 15.14 $ 15.15 $ 14.49 $ 14.76 $ 15.40 $ 16.07 $ 16.37Oct-10 $ 14.90 $ 15.05 $ 15.04 $ 14.57 $ 14.78 $ 15.08 $ 15.75 $ 16.14Nov-10 $ 14.80 $ 14.91 $ 15.00 $ 14.55 $ 14.65 $ 14.86 $ 15.07 $ 15.76Dec-10 $ 14.75 $ 14.63 $ 14.80 $ 14.61 $ 14.55 $ 14.74 $ 14.65 $ 15.30Jan-11 $ 14.70 $ 14.47 $ 14.58 $ 14.58 $ 14.45 $ 14.43 $ 14.17 $ 14.54Feb-11 $ 14.37 $ 14.50 $ 14.60 $ 14.42 $ 14.30 $ 14.00 $ 13.95Mar-11 $ 14.65 $ 14.70 $ 14.42 $ 14.37 $ 14.00 $ 13.97Apr-11 $ 14.56 $ 14.61 $ 14.26 $ 14.42 $ 13.98 $ 13.79May-11 $ 14.53 $ 14.37 $ 14.52 $ 14.10 $ 13.86Jun-11 $ 14.49 $ 14.10 $ 13.98Jul-11 $ 14.55 $ 14.10 $ 14.36Aug-11 $ 14.40 $ 14.70Note: Class III milk futures prices are quoted at the close on the last day of the month.