August 2021-22 recap at a glance

Numerous projects approved in first round of funding focus on dairy producers and commodities.

September’s Federal Milk Marketing Order (FMMO) advanced Class I base price will hit a six-month low, while likely escalating producer irritation over the 2019 “Class I mover” formula change.  

The widening gap in August Federal Milk Marketing Order (FMMO) Class IV and Class III milk prices pushed Class IV pooling lower.

Digest highlights
• FARM Program seeks comments for Animal Care Version 5 revisions
• ‘Dairy’ major recipient in first round of USDA ‘climate-smart’ project funding
• Darigold building $600 million dairy protein, butter facility
• Checkoff competition focuses on calming benefits

The USDA’s monthly World Ag Supply and Demand Estimates and Crop Production reports provide price, cost forecasts.

The Western drought sent regional hay prices higher, especially for dairy-quality hay. Demand from China pushed alfalfa exports to an 11-month high, but global sales of other hay continued to slump.

Elevated whey and lactose sales provided a boost to July’s global marketing volumes and values.

Digest highlights

• DFA donating refrigeration, milk to food pantries
• GDT product prices higher
• Producer sentiment improves
• NMPF: Climate law holds promise for dairy
• Darigold strengthens global leadership team
• California authorizes emergency mortality quarantine 
• Dairy women in leadership webinar is Sept. 13

Milk prices declined and feed costs continued to rise in July, cutting into monthly dairy producer milk income over feed cost margins calculated under the Dairy Margin Coverage (DMC) program.