The 30th annual Capitol Hill Ice Cream Party was held June 21 for members of Congress, families and staffs. A press release stated that about 2,000 gallons of ice cream and frozen yogurt, 6,000 root beer floats and 44 cases of sundae toppings were expected to be served. The party is sponsored by the International Ice Cream Assoc., Milk Industry Foundation and the National Cheese Institute, constituent organizations of the International Dairy Foods Assoc. 

In the real world, U.S. milk production may be slowing. The USDA reported its May estimate for the top 23 producing states at 16.4 billion pounds, up just 2.1 percent from May 2011. The 50-state total, at 17.6 billion, was up 2 percent. Revisions added 38 million pounds to last month’s preliminary data, putting output at 16 billion pounds, up 3.5 percent from 2011.

The big story in the data is cow numbers. The 23 state total, at 8.52 million head, while up 77,000 from a year ago, was down 3,000 from April, the first decline in 20 months. Output per cow averaged 1,924 pounds, up 22 from a year ago.

California was up 1.9 percent from a year ago on 16,000 more cows and 15 pounds more per cow. Wisconsin was up 2.4 percent, thanks to a 35 pound gain per cow and 5,000 more cows. Idaho was up 2.5 percent on a 50-pound gain per cow, but cow numbers were unchanged. New York was also up 2.5 percent, on a 45 pound gain per cow. Cow numbers were also unchanged. Pennsylvania was down 2.1 percent on a 15 pound per cow decline and 7,000 fewer cows.

Other states with large gains in cow numbers were Michigan, up 11,000 head; New Mexico and Texas, each up 10,000; Arizona, up 8,000; Colorado, up 6,000; and Indiana, Washington and Wisconsin up 5,000 each. States with fewer cows than a year ago included Iowa, Minnesota, Missouri, Pennsylvania, and Vermont.

Meanwhile, USDA estimated 251,300 culled dairy cows were slaughtered under federal inspection in May, up 11,500 from the 239,800 culled in April 2012, and 31,300 more than May 2011. Through the first five months of 2012, cull cow slaughter totaled 1.294 million, up 55,500 from the same period in 2011.Based on May’s Milk Production report indicating there were about 9.27 million cows in the U.S., the May culling rate represented about 2.7 percent of the nation’s herd.

The cash dairy markets apparently liked what it saw in the milk production data. Block cheese closed the week at $1.6250 per pound, up a penny on the week, but 50.5 cents below a year ago. The barrels closed at $1.6350, up 6.25 cents on the week, 44.25 cents below a year ago, and a penny above the blocks. Three carloads of block found new homes on the week and one of barrel. The AMS-surveyed U.S. average block price climbed to $1.5879, up 3.6 cents, while the barrels averaged $1.5492, up 1.8 cents.

Production schedules at cheese plants are slowing as milk supplies appear to have passed the peak spring flush, according to USDA’s Dairy Market News. Plant managers are keeping an eye on inventories and have reduced production in some cases. Mozzarella producers are especially conscious of reduced orders. Export demand has been helpful in moving cheese out of the country, according to USDA, but the strong U.S. dollar is hindering some sales. 

The Foreign Agricultural Service reported April exports were up 31 percent from last year and up 12 percent for the year. However, exports of butter and milkfat for April totaled 13.2 million pounds, down 29 percent from April 2011. 

Cumulative exports for the first four months of the year are running 32 percent behind last year. Saudi Arabia, at 13.6 million pounds for the year, is the largest importer with a 15 percent increase from a year ago. Butter and milkfat exports accounted for 5.9 percent of total butter production during January to April. 

Speaking of exports, Cooperatives Working Together (CWT) accepted 11 requests for export assistance this week to sell a total of 1.7 million pounds of cheese to customers in Asia, South America, the Middle East, North Africa and South Pacific. The product will be delivered through November 2012 and raised CWT’s 2012 cheese exports to 61.7 million pounds plus 45.2 million pounds of butter and Anhydrous milkfat to 32 countries.

FC Stone’s June 19 eDairy Insider Closing Bell reported that the June 19 Global Dairy Trade (GDT) auction showed a significant decline in the average prices of commodities traded following a sharp rise two weeks ago. Anhydrous milkfat dropped 0.8 percent to $1.4025 per pound, or $1.1242 adjusted to 80 percent butterfat equivalent; cheddar cheese prices fell 3.7 percent to $1.4139 per pound; milk protein concentrate 70 dropped 2.7 percent to $1.9115 per pound; rennet casein declined 1.9 percent to $3.079 per pound; and skim milk powder fell 4.8 percent to $1.2855 per pound. Buttermilk powder prices rose 2.5 percent to $1.381 per pound, according to the Insider, and whole milk powder prices climbed 2.7 percent to $1.3091 per pound. 

In other trade news, Dairy Profit Weekly reports that both U.S. neighbors are joining the Trans-Pacific Partnership (TPP) trade talks. The U.S. and eight other countries, Australia, New Zealand, Peru, Chile, Singapore, Malaysia, Vietnam and Brunei, accepted Canadian and Mexican applications to become part of the TPP negotiations this week. The National Milk Producers Federation (NMPF) and the U.S. Dairy Export Council (USDEC) strongly supported Canada’s participation in the TPP negotiations. 

Both groups agree that since Mexico has been invited to join the talks, it only made sense for the third member of the North American Free Trade Agreement (NAFTA) to join as well. However, whereas Mexico and the United States already have removed all dairy trade barriers between them, this is not the case with respect to trade between Canada and the U.S., a situation which TPP must remedy, say the two organizations. 

NMPF and USDEC trust that the approval by the U.S. government of Canada’s participation in the TPP talks has been accompanied by a clear understanding of U.S. expectations that all Canadian trade barriers against U.S. dairy products must be eliminated. Canadian officials said they would defend the country’s domestic dairy supply management program in TPP talks.

Cash butter started the week on a down note, rebounded and climbed to $1.5450, then revered gears Friday ending six weeks of gain, and closed at $1.52, down 2 cents on the week and 54 cents below a year ago. Twenty one cars were sold this week. AMS butter averaged $1.3877, up 2 cents.

Churning schedules across the country are active, basically absorbing cream volumes from regular and ongoing suppliers, according to USDA. Surplus cream volumes of earlier this spring are gone and churning activity is often keeping pace with demand, thus inventory clearances are lighter. 

Class II cream demand is seasonally strong as ice cream and ice cream mix needs increase. Overall butter demand is good as retail features continue to clear good volumes of print butter and restaurant and food service outlets, especially in resort and holiday areas of the country. 

Readers with questions or comments for Lee Mielke may write to him in care of this publication.