The Free Webinar Will Be Held on April 26 at 12 p.m. and Provide Dairy Market Updates
The Center for Dairy Excellence is hosting a special edition of its monthly “Protecting Your Profits” webinar on Wednesday, April 26 from 12-1 p.m. Titled “Federal Milk Market Order Reform: Where Are We Now?” and led by Zach Myers, Risk Education Manager with the Center, the webinar will feature Dr. Chris Wolf, E.V. Baker Professor of Agricultural Economics at Cornell University. Dr. Wolf will provide an update on where we are in the Federal Milk Market Order Reform (FMMO) process. Myers will also review current data and updates about the milk marketplace to guide decision-making and risk management strategies. Individuals can join via conference call, webinar, or podcast format.
“Dr. Chris Wolf will be joining us on this month’s webinar to provide an update on where we are in the Federal Milk Market Order Reform process. The International Dairy Foods Association has submitted a formal request for updating the ‘make allowances,’ while the National Milk Producers Association is in the process of submitting a request for a more comprehensive reform package,” Myers shared. “Dr. Wolf will help us understand what the proposed changes could mean for the nation’s dairy farmers.”
Christopher Wolf is the E.V. Baker Professor of Agricultural Economics in the Dyson School of Applied Economics and Management at Cornell University. He conducts research, extension and teaching focusing on dairy markets and policy, farm business management, risk management, and farm animal welfare. Wolf has published widely in academic and industry outlets. Wolf’s extension program stresses the effect of public policy on farm behavior and financial outcome, aiming to focus on issues of current and future importance to policy-makers and industry decision makers.
In addition to the FMMO discussion, Myers will share the latest export numbers and Class III and IV futures milk price forecasts:
- As of April 14 closing prices, Class III price has somewhat stabilized. The 12-month average price of $18.82 per cwt. is just four cents higher than mid-March, which was 51 cents higher than mid-February.
- The Class IV price skid continues with the 12-month average price now $18.64, 50 cents less than mid-March and $1.30 per cwt. less than mid-February. Increased milk production and softer demand are putting downward pressure on Class IV products.
- February exports showed a slight year-over-year increase of 0.8% as a result of robust lactose sales that increased 32% YOY with a little help from positive growth in whey protein (+9%) and milk protein concentrate (+35%). For the first time in more than two years, export value declined. Product prices are cheaper than they were a year ago, and the increases in volume during February were in the lower value products.
As part of the risk management conversation, Myers will also share the latest Dairy Margin Coverage (DMC) margins. The February DMC Margin fell to $6.19 per cwt, triggering indemnities at the $7.00 per cwt. margin coverage and up. The DMC feed price increased by 25 cents per cwt. relative to January. The U.S. all-milk price decreased by $1.50 to $21.60 per cwt. The February indemnity payment finishes covering the annual premium and provides a net benefit for the year of 23 cents per cwt., or $2,227 per 1 million pounds of production history up to the 5-million-pound, Tier 1 cap.
To join the risk management discussion and access the information in a format that is most convenient for you, the Center offers the series in a webinar, podcast, and conference call format. There is no cost to participate in the monthly ‘Protecting Your Profits’ discussion, and no registration is necessary.
Webinar Format
Visit www.centerfordairyexcellence.org/AprilPYP on Wednesday, April 26 at 12 p.m. to launch the webinar. Follow the Center on Facebook or YouTube to watch a live stream on social media.
Conference Call Format
Individuals who would prefer to connect via conference call can dial the following number on Wednesday, April 26 at 12 p.m.:
Dial: 1-646-558-8656
Meeting ID: 848 3416 1708
Passcode: 474057
Podcast Format
Visit www.centerfordairyexcellence.org/pyp to listen to the “Protecting Your Profits” podcast and subscribe to get notified when new episodes are released. Episodes are expected to be published after the live webinar and conference call are concluded each month.
Join the Center on April 26 to find out how these programs and the conventional price risk management tools can fit in to your marketing plan. For more information, call 717-346-0849 or email Myers at zmyers@centerfordairyexcellence.org. The webinars are recorded and posted on the Center for Dairy Excellence website for those who are unable to join the live session.