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DairyMarch
1999 Extension Dairy Specialist, MSU High bacteria counts are a major problem to many dairymen. Bacteria can be beneficial in some circumstances, however, when present in milk, they result in poor keeping qualities and off flavored products. Milk has been called the food most nearly perfect for humans--as well as for bacteria. The differences of high and low bacteria counts among dairy producers often lie in the differences in cleanliness of equipment and quickness of cooling. Bacteria are most effectively destroyed by heat or chemicals known as bactericides. It is impractical to destroy bacteria in the milk at the farm with high temperatures, however, this is the method used at processing plants. It is illegal to adulterate milk with chemical bactericides. Therefore the practical approach for the dairy producer is to use methods as sanitary as possible to keep bacteria out of the milk and cool milk to temperatures below 40 degrees F. as rapidly as possible. Remember clean and cool are good concepts to remember. Most farm milk in our area is routinely subjected to two types of bacterial evaluations: Standard Plate Count (SPC) and Preliminary Incubation Count (PIC). The SPC has for many years served as the basic quality test. This test is a determination of the number of bacteria that will grow from a milk sample under a standard set of conditions. The key factors for avoiding a high SPC are proper cleaning and cooling. Milk with a low initial bacterial count, if cooled will have a count of less than 10,000. The PIC is a procedure used to detect those organisms that will cause spoilage of packaged milk and milk products before the end of code. These organisms have the ability to grow at relatively cold temperatures (35-45 degrees), producing enzymes that are not destroyed by pasteurization and that will cause a breakdown in the milk fat or protein which will impart very undesirable flavors in finished products. A good goal for PIC is less than 20,000. CLEANING DAIRY EQUIPMENT Cleaning equipment is a fundamental component of a successful dairy operation with regard to marketing a quality product and mastitis control. Clean equipment is a poor environment for bacterial growth. Therefore, in this environment you have fewer bacteria, which can spread disease (mastitis), cause off-flavors in milk, and lower keeping qualities of milk. The following are cleaning procedures that have been shown to be very effective: Pipeline Cleaning
Bulk Tank--Manual Cleaning
Bulk Tank--Automatic Cleaning
Automatic tank cleaners should be checked frequently to ensure they are working properly. Using an automatic washer is no guarantee that your tank will always be clean. It must be operating properly with the proper adjustments and the proper amounts and concentration of cleaning solution. One basic fact about killing bacteria is that you can't disinfect if the surface is not clean. Some producers think that chlorine products are a cure all but they will not disinfect where there is solids or organic material. Most producers know correct cleaning procedures such as are listed above. Using them will insure a good quality product. Remember--PRODUCTION OF HIGH QUALITY MILK IS IN YOUR BEST INTEREST!!
UPCOMING
EVENTS 1999 MARCH
24 MISS
LIVESTOCK COUNCIL MARCH
24-31 ARTIFICIAL
INSEMINATION SCHOOL MAY
27 STATEWIDE
DAIRY FIELD DAY JANUARY
HONOR ROLL HERDS* Dairy County No.
Cows Lbs
ECM** 2X/3X RHA
Milk RHA
Fat RHA
Prot DOT MACTOC
FARM OKTIBBEHA 198 87.5 2X 25470 933 833 01/07/99 STEWARD
FARM INC TATE 394 74.5 2X 22222 773 708 01/13/99 DAVID
ROBINSON & SONS RANKIN 135 74.1 2X 19128 730 595 01/25/99 TURNIPSEED
DAIRY MONROE 454 67.9 2X 18489 673 583 01/24/99 COASTAL
PLAIN EXP STA NEWTON 170 67.8 2X 21187 789 684 01/11/99 TIM
WEEKS COPIAH 54 66.6 2X 0 0 0 01/18/99 BRAD
BEAN AMITE 222 64.6 2X 21652 809 695 01/27/99 FREEMAN
DAIRY PIKE 145 64.2 2X 19413 639 645 01/09/99 DAVID
ROBINSON & SONS RANKIN 135 63.5 2X 18923 746 591 12/19/98 RONALD
H CLARK LINCOLN 89 63.3 2X 19354 687 633 12/28/98 BRAD
BEAN AMITE 227 63.2 2X 21765 809 697 12/29/98 NORTH
MISS BR EXP STATION MARSHALL 91 62.7 2X 20073 736 656 01/12/99 JEFCOAT
& WILLIAMS DAIRY JONES 65 62.2 2X 20322 701 635 01/18/99 SUMMERS
DAIRY MARION 61 61.3 2X 18573 682 582 01/04/99 SPEAKS
& SON WALTHALL 368 60.4 2X 18124 711 592 01/20/99 A
L BOYD JR WALTHALL 76 60.0 2X 20438 617 645 01/05/99 DIXIE
DAIRY SALES CARROLL 470 59.2 2X 20391 821 651 01/16/99 CAL
MAINE FOODS DAIRY HINDS 1651 59.1 3X 19246 701 616 01/02/99 ROWZEE
JERSEY FARM NEWTON 154 58.6 2X 16345 739 625 01/17/99 ELWAYNE
MAST NOXUBEE 159 57.2 2X 17510 0 0 01/19/99 JAY
PAUL HOOVER NOXUBEE 159 57.0 2X 17338 0 0 01/19/99 PAUL
W EDWARDS NOXUBEE 134 56.3 2X 17852 636 585 01/26/99 THOMPSON
BROTHERS MARSHALL 137 55.6 2X 19540 702 630 01/14/99 TODD
& JERRY BULLOCK PIKE 118 54.6 2X 17051 588 550 01/16/99 JERRY
SISCO LINCOLN 125 54.4 2X 15538 579 513 01/25/99 JERRY
CORKERN LEAKE 99 54.1 2X 14426 517 498 01/02/99 JERRY
N HOLMES WALTHALL 87 53.9 2X 16686 570 516 01/28/99 RAY
GALLOP AND SONS MONROE 67 53.2 2X 18016 618 589 01/28/99 J
& L DAIRY WALTHALL 201 51.7 2X 20499 702 661 01/25/99 CHEEKS
DAIRY JONES 139 50.9 2X 17040 589 559 01/11/99 *
Top 30 herds enrolled on supervised DHIA testing
programs by test day energy corrected milk.
Graduate Student ñ Reproductive Medicine MSU College of Veterinary Medicine Mastitis remains the most common and expensive disease in dairy cattle. The basic principle of mastitis control is to prevent as many infections as possible. The mastitis control program should consist of good milking procedures such as:
If you need assistance in lowering your somatic cell count, please call the Animal and Dairy Sciences Department or the College of Veterinary Medicine at Mississippi State University.
BFP Price Dr.
C. W. "Bill" Herndon Milk Prices Start to Decline, BFP Falls by $1.07 The January Basic Formula Price, or BFP, reacted to the plummeting of cheese prices that was witnessed in mid-January and fell to $16.27 per hundredweight (cwt.) from the all-time record high of $17.34 reported for December 1998. This month's decrease of $1.07 per cwt. (-6.2%) was the first drop in the BFP after rising for seven straight months when a spectacular increase of almost 60% was registered between May and December of last year. This $1.07 decline in the January BFP was much smaller than was expected by the industry after a 60-cent plunge (-30%) in cheese prices. Most market analysts were anticipating a drop in the BFP of more than $3.00 per cwt., but cheese processors in the Upper Midwest have continued to build inventories which bolstered raw milk prices up during January. Milk output has increased significantly in the last quarter of 1998 and in January 1999 in response to record high milk prices and low feed costs. Farmers are experiencing positive net returns and profits when combined with very favorable weather have induced a flood of milk being produced across all regions of the U.S., especially in the states along the Gulf Coast. Dairy product demand is recording its usual post-holidays and Super Bowl decline which has added more downward pressure on milk prices as milk handlers search to locate plants with enough processing capacity to utilize excess milk supplies. Since late January, ebbing demand and increased supplies have forced handlers in Florida to export 50 to 60 loads of milk outside of the state each week. The milk market is being described as: "milk supplies are excessive and surplus volumes are very heavy . . . Southern plants are full and receipts at northern plants are also heavy" which indicates these distressed" milk supplies will force the BFP to plunge during February and March. The smaller than expected decline of the BFP recorded in January will place even more pressure on milk prices and a "big price hit" is anticipated to occur this spring. The BFP is predicted to plummet by more than $4.00 per cwt. when the USDA announces the February BFP. Dairy producers need to prepare for this anticipated sharp decline in milk prices during 1999. The January BFP was reported at $16.27 per cwt. which represents a DECREASE of $1.07 (down 6.2%) BELOW the December BFP of $17.34. January 1999's BFP is $3.02 per cwt. (or 22.8%) HIGHER than the January 1998 BFP price of $13.25. Dairy producers need to remember that the January BFP will be used as the base price to calculate the March Class I and Class II milk prices and the January Class III milk price. Because about 75 percent of Mississippi milk is utilized as Class I and Class II products, farmers will not notice the majority of this $1.07 decrease in the January BFP until they receive their April settlement checks as payment for milk sold in March. Despite the rather dismal market outlook for milk prices, the cheese market has been a very pleasant surprise since late January. After cheese prices nose-dived by more than 60 cents (30%) during the 2-1/2 week period between January 6 and January 22, cheese prices have recovered somewhat and have shown some strength and stability during the first half of February. Most of the increases in cheddar cheese prices have been attributed to a "market correction" subsequent to the January price plunge, but the stability of these product prices has been unexpected given the current amounts of excess milk supplies. On the Chicago Mercantile Exchange (CME), block cheese prices were reported at $1.25 per pound on January 20 compared to 1.33 on February 19, an 8-cent (or +6.4%) increase over this four-week period. Barrel prices have displayed this same pattern and went up by 7.5 cents (or +6.1%) from $1.22 to $1.29 between January 22 and February 19. However, butter prices on the CME witnessed a decline during late January and early February with prices falling 14.5 cents per pound during the first two weeks of February and then increasing 5.75 cents on February 19. On the CME, Grade AA butter prices have decreased from $1.4275 on January 22 to $1.34 on February 12, a decline of 8.75 cents (-6.1%) over this four-week period. Nonfat dry milk (NDM) prices have remained fairly stable, but NDM prices are very close to the USDA's price support level. The Commodity Credit Corporation has again begun to purchase non-fortified NDM with weekly purchases of almost two million pounds in each of the first three weeks of February. The market tone continues to be described as "weak" where Grade A NDM prices on the CME have fallen only slightly from $1.07 on January 19 to $1.05 on February 19, or declining only two cents per pound (-1.9%). In every region of the country, milk production is responding to very high milk prices and inexpensive feed with substantial increases in raw milk output. Dairy farmers are enjoying the current period of improved profitability and, with very low cull cow prices, are milking just about every cow possible in their dairy herds. As a result, milk production has grown substantially during the past 3 to 4 months where the USDA reports that January 1999 milk output was 487 million lbs. (+3.7%) greater than the amount produced in January 1998. Across the Southeast, the spring "flush" is already in full swing during the middle of winter. There is literally a flood of milk that coops, processors, and handlers are attempting to manage by shipping these excess supplies to dairy product manufacturing plants. In the 20 reporting states, January 1999 production increased 3.7% (+ 415 million lbs.) above the output level for the same month of 1998. The reporting states recording the largest incremental increases between January 1998 and 1999 were located all across the U.S. but, mostly in western states and, specifically, were New Mexico (+15.3%), Arizona (+7.7%), Iowa (+7.4%), Idaho (+6.7%), Washington (+5.7%), Michigan (+5.4%) and California (+4.1%). There were six states that experienced a decline in milk output between these months, of which, all three of the reporting states located in the Southeast recorded decline in production. These Southeastern states reported decreased output in the following basis: Kentucky down -3.3%, Virginia fell -3.1% and Florida declined -0.9%. Despite less milk being produced in these states, output along the Gulf Coast has increased significantly and large amounts of "excess" milk supplies are being processed into manufactured dairy products, mostly NDM. The dairy industry can be characterized as "looking over a very deep cliff" because milk prices are forecast to plunge by more than 30% over the next several months. The collapse of cheese prices during January (from all-time high record levels of 1998) foretell of an imminent and corresponding crash of milk prices and, in particular, the BFP. The recovery or correction of cheddar cheese prices seen in February may be the only glimmer in a dairy market that is under a very dark cloud. Most of the dairy industry believes that the BFP will experience a record one-month decline when the February BFP is announced by the USDA. For example, February BFP futures contracts on the CME were being traded at $11.14 per cwt. at the close of trading on February 19. This would indicate that a decline of more $5.00 per cwt. is expected for the February BFP, from $16.27 to about $11.15 (CME January BFP contracts were traded in the range of $16.30 range during the last days of January). If the BFP plummets by $5.00, milk producers will again be subjected to extreme volatility in both milk prices and the many difficulties of trying to manage extreme swings in the amount of monthly incomes generated on dairy farms. Most market analysts are maintaining their belief that the BFP will not fall below the $11.00 level during 1999 and this belief is in contrast of forecasts made by several regional dairy marketing cooperatives that contend that the BFP will bottom out somewhere around $10.30. Despite this disagreement, dairy farmers should be preparing for this anticipated decline in milk prices and the many hardships of trying to manage cash flow on their dairy farms. Southeast F.O. #7 "Blend" Price Increases to $19.07 in January The Southeast Federal Order Milk Market Administrator reported the January 1999 "blend" or uniform prices for milk delivered in Federal Order (FO) #7 at $19.07 per cwt. (for 3.5% Butterfat milk) in Zone 7, see the Mississippi map for zones (Zone 5 minus $0.25, Zone 6 minus $0.10, Zone 8 plus $0.10, Zone 9 plus $0.20, Zone 10 plus $0.32, Zone 11 plus $0.50, and Zone 12 plus $0.57 per cwt.). The January "blend" price of $19.07 for Zone 7 of FO #7 represents an INCREASE of 37 cents per cwt. compared to the November uniform price of $18.70. The January 1999 blend price is $3.61 (or +23.4%) ABOVE the January 1998 blend price of $15.46. This 37-cent increase in the January blend price occurred because of increases in two of the three classes of milk and despite a 5% decline in Class I and Class II utilization rates. The rise in the January blend price is attributed to an 80-cent increase in both the Class I and Class II milk prices and in spite of a $1.07 fall in the Class III price. Class I utilization fell 4.2% (from 81.0% in December to 76.8% in January), while Class II utilization declined by 0.8% (from 8.2% in December to 7.4% in January) and Class III utilization jumped up by 5.0%$ (from 10.8% in December to 15.8% in January). The January Zone 7 "blend" price was calculated using: (1) the November 1998 BFP price of $16.84 plus the $3.08 Zone 7 Class I differential for a Class I price of $19.92; (2) the November 1998 BFP price of $16.84 plus the 30 cents per cwt. Class II differential for a Class II price of $17.14; and, (3) the January Class III price of $16.27 (which is the BFP). Please consult the Mississippi map found in this newsletter to determine which Zone the plant you sell your milk to is located in FO #7. A dairy producer's uniform price and the amount of his milk check is affected by where the plant that processes his milk is located in the Southeast FO and NOT the location of the dairy farm.
UNIFORM
or "BLEND" PRICE FOR JANUARY 1999 ZONE
5: $18.82 ZONE
9: $19.27 ZONE
6: $18.97 ZONE
10: $19.39 ZONE
7: $19.07 ZONE
11: $19.57 ZONE
8: $19.17 |
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