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Views and Opinions: Number of cow replacement heifers down for first time since 2012

U.S. milk production continues to limp. The Agriculture Department’s latest Milk Production report shows preliminary June output at 18.23 billion pounds, down 0.3 percent from June 2018. Output in the 24 top producing states hit 17.3 billion pounds, up 0.1 percent. Revisions added 9 million pounds to the original May total, now put at 19.06 billion pounds, down 0.4 percent from May 2018.

June cow numbers in the 50 states totaled 9.32 million head, down 10,000 head from May and 91,000 below a year ago. Output per cow averaged 1,955 pounds, up 12 pounds from a year ago.

Milk output in the April to June quarter was down 0.1 percent from a year ago. The average number of milk cows was down 15,000 head from the January to March quarter and 89,000 less than the April to June quarter a year ago.

California cows produced 1.2 percent more milk than a year ago, thanks to a 30 pound gain per cow offsetting the loss of 7,000 cows. Wisconsin output was down 0.5 percent, on 6,000 fewer cows. Output per cow was unchanged.

Idaho was up 2 percent on 9,000 more cows and a 10 pound gain per cow. New York was up 0.2 percent, thanks to 4,000 additional cows; however, output per cow was down 10 pounds. Pennsylvania saw its 16th consecutive month that milk output was below a year ago, down 58 million pounds or 6.5 percent, due to 31,000 fewer cows milked and 10 pounds less per cow. Minnesota was up 0.8 percent, despite a drop of 6,000 cows. Output per cow was up 40 pounds.

Michigan was up 2.2 percent on a 40 pound gain per cow and 2,000 more cows. New Mexico was down 2.8 percent, on 11,000 fewer cows. Output per cow was up 10 pounds. Texas was up 5.6 percent on 29,000 more cows and a 5 pound gain per cow.

Vermont was off 0.4 percent. Cow numbers were down 1,000 but output cow was up 10 pounds. Florida was down 3 percent, on 5,000 fewer cows. Output per cow was up 20 pounds. Washington State was off 0.5 percent, on 6,000 fewer cows. Output per cow was unchanged from a year ago.

The USDA’s semiannual Cattle report said milk cow replacement heifers, at 4.1 million head, were down 100,000 or 2 percent from a year ago. The July 19 Daily Dairy Report says “This is the first time the heifer replacement inventory has fallen since 2012 and only the fourth time it has dropped over the past two decades. The last time replacements were at this level was 2014.”

The DDR adds that “Typically farms look to bring heifers into the milking herd at around 24-months of age. The heifer inventory provides a glimpse into future investment in the dairy herd, and today both the existing milk herd and the animals available to move into the milking herd are on the decline.”

U.S. dairy farmers retired fewer cows in June than in May and in June 2018. The latest Livestock Slaughter report shows an estimated 231,200 head were slaughtered under federal inspection, down 26,900 from May and 6,300 or 2.7 percent below a year ago. The six month cull count was at 1.6 million head, up 68,800 or 4.4 percent from a year ago.

The outbreak of African Swine Fever (ASF) in China continues to have ramifications for dairy farmers, according to Hoards Dairyman managing editor, Corey Geiger. Speaking in the July 29 Dairy Radio Now broadcast, Geiger said he heard first hand reports after speaking at the recent China Dairy Expo, which was attended by 65,000 people and featured 500 commercial exhibitors.

China’s hog population amounted to about 441 million last year, almost half the world’s total, and while government reports say 20 to 25 percent of the hogs have been culled, others say the total is closer to 60 percent.

 

Whey is a great amino acid and protein that makes a great hog feed, Geiger said, but U.S. exports of whey to China have plunged 49 percent, not due to the tariff war but because of the reduced hog population.  

In politics, U.S. Agriculture Secretary Sonny Perdue announced further details of the $16 billion package aimed at supporting American farmers hurt by the ongoing trade disputes. You’ll recall that President Trump directed Perdue in May to develop a plan to offset some of the estimated impact of “unjustified retaliatory tariffs on U.S. agricultural goods and other trade disruptions.” The Market Facilitation Program (MFP), Food Purchase and Distribution Program (FPDP), and Agricultural Trade Promotion Program (ATP) is the result.

Farm Journal’s Milk Business website says dairy producers will receive 20 cent per hundredweight payments on their production history.

National Milk Producers Federation President and CEO Jim Mulhern applauded Perdue’s announcement saying; “We appreciate the efforts of USDA and the White House to assist farmers who have suffered significant losses due to retaliatory tariffs. Dairy producers have so far lost more than $2.3 billion in revenues since tariff escalation began in earnest one year ago. USDA’s new approach raises the level of aid to dairy farmers from last year’s program, a step in the right direction. We also urge the Department to revise the outdated production history information used to calculate payments, which lessens the effectiveness of the program.” He added that “Today’s announcement underscores that dairy farmers need to rely on trade, not aid, to prosper in a global marketplace.”

Farmers, ranchers, producers and growers representing various California food and agriculture products flew to Washington Wednesday to lobby members of Congress for swift passage of the U.S.-Mexico-Canada Agreement (USMCA).

 

The views and opinions expressed in this column are those of the author and not necessarily those of Farm World. Readers with questions or comments for Lee Mielke may write to him in care of this publication.

7/31/2019