The news this week affecting the bottom line of dairy farms includes:

Coyne jenn
Editor / Progressive Dairy
Lee karen
Managing Editor / Progressive Dairy

Interest rates drop for first time since 2020

The Federal Reserve announced a half-point cut to interest rates for federal funds at their meeting Sept. 18. The announcement brings rates to 4.75% to 5%, and it's the first time a cut has been issued in four years.

In a statement issued Sept. 18, the board decided to lower the target range for federal funds rates “in light of the progress of inflation and the balance of risks …” As job gains have slowed and the unemployment rate has moved up, but remains low, the cut indicates the Federal Reserve Board and Federal Open Market Committee’s certainty that inflation is inching closer to the sustainable 2%.

The last time the committee issued a negative rate change was March 16, 2020, after multiple emergency meetings to return federal fund rates to 0% to 0.25% due to the economic disturbances that ensued in light of the COVID-19 pandemic. 

The Federal Reserve meets eight times a year. The last two meetings of 2024 are scheduled for Nov. 6-7 and Dec. 17-18.

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GDT index up 0.8%

The price index of dairy product prices sold on the Global Dairy Trade (GDT) platform moved upward slightly by 0.8% in an auction held Sept. 17.

Compared to the previous auction, prices for individual product categories were mostly higher. Mozzarella and lactose had the highest gains at 4.5% and 3.5%, respectively. Posting smaller increases were cheddar cheese at 2.9%, skim milk powder at 2.2% and whole milk powder at 1.5%. Butter and anhydrous milkfat were both down by 1.7% and 1.2%, respectively. Buttermilk powder was not traded.

The GDT platform offers dairy products from several global companies: Fonterra (New Zealand), Darigold, Valley Milk and Dairy America (U.S.), Arla (Denmark), Arla Foods Ingredients (Denmark), BMI (Germany), Kerry Dairy (Ireland) and Solarec (Belgium).

The next GDT auction is Oct. 1.

Massachusetts proclaims negative status for HPAI in dairy herds

The Massachusetts Department of Agricultural Resources (MDAR) in partnership with the Massachusetts Department of Public Health (DPH) has completed its testing of all licensed dairy farms in the commonwealth for the presence of highly pathogenic avian influenza (HPAI H5N1) and has found no trace of the virus. Massachusetts is the only state in the nation to test all of its dairy herds from 95 farms with 100% negative results.

The Healey-Driscoll administration made the decision to test all herds in an effort to protect public health and demonstrate the safety of the food supply at Massachusetts farms.

“Massachusetts dairy farmers follow stringent safety protocols and take great pride in producing the highest-quality products,” said MDAR Commissioner Ashley Randle. “That hard work protects all of us, and these test results demonstrate how supporting local agriculture and sourcing food from Massachusetts farms can keep our food supply strong and resilient.”

The testing program was conducted in collaboration between MDAR and DPH. MDAR inspectors visited dairies in August to collect samples of milk from their bulk tanks. DPH worked with the Broad Institute at MIT and Harvard to test the samples at no cost to the farmers.

U.S. dairy calls for swift action as Colombia moves to impose unjust tariffs

The U.S. Dairy Export Council (USDEC) and National Milk Producers Federation (NMPF) expressed their strong disappointment with a preliminary ruling by Colombia’s government that unfairly targets U.S. dairy exporters by advancing baseless claims that U.S. milk powder was unduly subsidized. The groups called on U.S. trade officials to take immediate action to challenge Colombia’s unjust decision and defend American dairy farmers and exporters.

Based on the announcement by Colombia, the preliminary findings call for an additional 4.86% tariff to be implemented on U.S. milk powder exports.

USDEC and NMPF have been working closely with allies in Colombia as well as their members to demonstrate that no U.S. milk powder going to Colombia is subsidized and that Colombia’s dairy sector challenges are due to a variety of other factors. Even the Colombian government acknowledged that there are “many elements that currently affect the Colombian dairy sector.”

Colombia proceeded with the preliminary imposition of new tariffs on U.S. milk powder exports without evidence of damage caused by those products on its producers or any indication that government support to U.S. dairy farmers resulted in lower U.S. milk powder prices. The action follows a similar case Colombia initiated against U.S. ethanol exports, along with unwarranted import bans on U.S. poultry and beef exports.

“It’s extremely unfortunate that the Colombian government has chosen to use these politically motivated allegations to impose protectionist trade barriers, which will ultimately not only harm U.S. exporters, but Colombian companies and workers who rely on U.S. dairy products and ingredients,” said Krysta Harden, president and CEO of USDEC. “The U.S. government must act promptly and forcefully to send a message that these sorts of tactics will not be tolerated.”

The next steps in the investigation include the collection of further evidence by the Colombian government and a public hearing to consider arguments in the case near the end of the evidentiary period. The preliminary tariff will be in effect for four months as the investigation moves forward. A final determination to impose tariffs could be maintained for up to five years prior to review.

USDA grant supports MSU research into dairy cattle heat stress

Mississippi State (MSU) scientists are studying new ways to mitigate heat stress in dairy cattle thanks to a $300,000 New Investigator Seed Grant from the USDA’s National Institute of Food and Agriculture.

The MSU Mississippi Agricultural and Forestry Experiment Station’s (MAFES) Joe Bearden Dairy Research Center, College of Veterinary Medicine and Institute for Genomics, Biocomputing and Biotechnology are collaborating on a two-year study unraveling the cross talk between rumen microbiota and the enteric and central nervous systems in dairy cattle under heat stress. This improved understanding will help researchers develop innovative mitigation strategies targeting this rumen-brain-microbiome axis that can be shared with producers.

Leading the team is Peixin Fan, an assistant professor in MSU’s Department of Animal and Dairy Sciences (ADS), along with ADS faculty members and MAFES researchers Caleb Lemley, Derris Devost-Burnett and Rhonda Vann.

“Heat stress reduces appetite and affects rumen fermentation, both of which are closely linked to the loss of milk yield. In addition to extracting nutrients from feed and providing energy to animal hosts, certain gastrointestinal microbes can produce neuroactive compounds and have potential to affect animal behavior,” Fan said.

Better understanding of how heat affects cows is expected to unlock innovative strategies for improving animal resilience, a vital need for Southeastern dairies, Lemley said.

Council on Dairy Cattle Breeding to hold 10th annual meeting on Oct. 2

“The Integrated Value of the U.S. Genetic Evaluation System” is the focus when dairy genetic enthusiasts gather on Oct. 2 for the 10th industry meeting of the Council on Dairy Cattle Breeding (CDCB).

This annual meeting will be in Madison, Wisconsin, on Wednesday morning during World Dairy Expo in The Tanbark. All dairy producers, industry professionals and genetic enthusiasts are invited to participate.

More than 60 U.S. and international organizations work hand in hand with dairy producers to collect and deliver quality cow and herd data into the National Cooperator Database. The database, started by the USDA and now stewarded by CDCB, delivers value to dairy herds through reliable genetic evaluations, management reports, new genetic traits and performance benchmarks derived from aggregated cow-level data.

The engaging program on Oct. 2 will highlight the value of collaboration, research underway and future benefits expected as dairy data management and genetic improvement evolves.

Headlining the event will be a producer panel, “Using Cow Data for Progress On and Off the Farm.” Producers will discuss investments in data collection, how they utilize cow information to manage their herds, and how innovative types of data collection can lead to new genetic selection traits.

View the agenda and register online for the in-person or livestream option.