July 11,2014
Falling Corn Prices Buoy Local Dairy/Livestock Industry
A big Midwestern corn crop promises to boost margins for livestock owners including the local dairy industry here. The news this week is that corn futures for delivery this December have now dropped below $4 a bushel compared to $6 to 7 in past years.The price fell Friday to the $3.91 level. High feed costs coupled with low milk prices from 2009 to 2012 pushed many dairy operators to the brink and scores of local dairy farms shut down. But in mid-2014 the cream is rising for milk producers with prices buoyed by strong exports. The latest Tulare County crop report says dairymen got an average of $16 per cwt in 2012 rising to $18.40 in 2013. This year the price has jumped to around $21.”Dairymen are finally making money” says Visalia broker John Grimmius. ”There were three years that we did not.” Grimmius says while there have been survivors of the tough years a number of operators did not survive.”We are seeing smaller dairy facilities sell for about the same as open ground where people are now talking about planting trees.” Indeed the latest county crop report shows some 4080 acres of nonbearing pistachio trees have been planted in recent years.
Milk Powder Sales – New Record High
U.S. exports of nonfat dry milk and skim milk powder increased 10% in May from April – a new all-time monthly high. In May, exporters sent 60,358 metric tons, or 133 million pounds, of nonfat dry milk and skim milk powder to destinations overseas, a 7.8% jump from May 2013 according to USDA. One of the largest producers is California Dairies in Visalia.
Tulare Council Will Discuss CaliCheese Project
The Tulare City Council will discuss the sale of 59 acres to CaliCheese July 15 asking for an additional $10,000 from the company to cover staff time on extending an exclusive right to negotiate the purchase.