-December 11,2020-
Milk production up but prices head lower
Even with the recent decline in the number of dairies, milk continues to be the top commodity in Tulare County.Now that California has joined the Federal Order to market milk for Tulare County producers, the county ranks highest in production. For 2019 Tulare County produced $881 million pounds of milk in December, the 3rd highest county in the nation churning out 2.9% of all the milk marketed under the federal order across the country according to government figures.
Tulare County, the largest dairy county in the U.S., marketed 881.6 million pounds of milk in December 2019. That 5.3% of all the milk marketed under the order nationwide. Next door Kings County was the number 3 county nationwide that month.
Pooled milk in Kings County came from just 55 producers this October, down from 65 producers a year earlier. Tulare producer numbers sank year over year as well from 184 in December 2018 to 167 in Dec 2019.The Tulare crop report for 2019 shows overall milk volume dropped about 10% compared to 2018, a big decrease. There is some indication it has come back since.
And we are pumping out more milk nationwide this fall. California milk production was up 1.2% in October 2020 vs October 2019.Dairymen added more cows but the bigger factor is said to be the continued increase in milk produced per cow -likely due to improved techniques and genetics.
The Milk Advisory Board says California dairy operators improved milk production per cow by 55% from 1986 to 2016.
Local dairy operators were buoyed by the surprisingly good prices they got this summer based on record cheese prices.
Dairy product consumption reflects lower interest in fluid milk with high interest in cheese in the past few decades (see chart).
While restaurant sales are way down grocer sales of milk products are way up. To help out the US dairy industry, the government has been buying hundreds of millions of dollars of milk commodities and distributing them in USDA food boxes. Producers would rather have better prices than government subsidies.
For dairymen it has been a rollercoaster ride and now prices are heading south. Butter prices this month are the lowest since May and 50 cents lower than a year ago.
Class III futures that were in the $23 range settled at $15.98 for December – more than $5 below what they were in late October.
Nonfat dry milk prices are lower those year vs last as well.- around $1.08. While holiday bakers are still using butter – the suppliers have plenty. Producers are hoping the low value of the dollar this fall will help in future to increase dry milk powder export sales around the world.
Class IV milk, Butter, butter-based spreads and dry products like whole milk powder and nonfat dry milk is where two thirds of the milk goes to so the Class IV price is closely watched. It’s down as of October in California to $13.48 according to the administrator of the California Milk Marketing Area compared to $16.39 pr cwt in October 2019. Today’s price is just above break even and no reason to cheer.
Bumblebees get no respect
A court in California recently ruled that the state lacks authority to list four types of bumble bees as endangered species, a win for almond and citrus growers. Farmers sued to block what was a pending Fish and Game regulatory action.
The court could not agree that insects including bees are covered by the endangered species act. The Center for Food Safety and Defenders of Wildlife disagreed. They hope the state will appeal.
“Little critters like bees are critical to our food supply and should merit protection just as much as something charismatic as a salmon or kit fox or wolf or sea otter,” says Kim Delfino, California program director for Defenders of Wildlife who blames a decline on habitat loss, pesticide use as well as disease.
But Casey Creamer, executive director of California Citrus Mutual, says listing insects will greatly disrupt farm practices, such as pollinating crops that rely on honeybees.
“I would say citrus growers would no longer allow any beekeepers to store bees on their property,” Creamer said. “You can’t take the risk of killing one if it’s an endangered species. I think it’s a very dangerous precedent if we start listing insects.”
The case is Almond Alliance v. California Fish and Game Commission. The Sacramento Superior Court ruled this month that the State of California lacks authority to list four threatened bumble bee species as Endangered under the California Endangered Species Act (CESA).
Orange growers see good navel prices early in season
California Citrus Mutual reports early season prices for navel oranges are good for a change. Prices per carton are $ 2 to 3 above the average of recent years. CCM reported to members that “opening week prices were higher than last season. The quality for the beginning of the season is excellent and improving with each passing week.”
New to town – Ono Hawaiian BBQ ! Oh Yes
Mooney Boulevard will see Ono Hawaiian BBQ drive-thru in coming months next to Habit Burger – one of 3 commercial developments being built on the former COS parking lot by JR Shannon. Also at the new center at Mooney and Myrtle the first Dutch Bros coffee store to open in town- expected in the next few weeks. A third storefront is under negotiation, he says.
Ono (pronounced Oh No) is a small but growing chain that offers a fusion of Hawaiian, Japanese, Korean and American dishes, typically with steamed rice. They recently opened in Fresno -their 93rd location with 10 more restaurants slated to open across California and Arizona later this year. With a location in Bakersfield the company is also opening soon in Delano.