The Florida Dairy Business
Volume 2 Issue 2
February 1997

The October and November BFP declines have been reflected in December and January Florida mailbox milk prices. Remember that the BFP is used to set Class I prices two months in advance.

With the high Class I utilization rates in Florida, mailbox prices largely lag the BFP by two months. These graphs demonstrate this effect. The BFP will be strengthening in the short term with increases in both the cheese and butter markets.

Florida production remains strong, and Florida is the only state in the Southeast with increases in production and cow numbers in January, 1997 compared to January, 1996. Even with a strong tourist season, production is outstripping demand and milk is being shipped out of state.

During 1996 the Southeast was down 4.6% in production while the US was down 1% compared to 1995. Florida was up 1%. The Southeastern dairy industry is continuing to decrease faster than in the US as a whole.

Discussion at the Florida Conference on Federal Order reform on February 18th in Gainesville covered regional supply and demand issues, and how Federal Order reform issues may impact Southeastern markets. Although Florida appears to have what it wants - a separate Florida order made by combining the current three Florida orders (orders 6, 12, and 13) - the devil is in the details, and the details aren’t out yet.

The USDA is behind schedule in announcing pooling provisions, price differentials, a BFP replacement, and other important issues that determine the impact of the new orders. Regional agendas are being played out in political circles, and discussion at the conference made it clear Florida dairymen and others in the Southeast will need to engage the political process to counter others who want a "fair advantage" to play in our markets. Reports from Washington indicate a coalition of the kind used during the 1996 farm bill activities will be needed again. Research from New York indicates high Class I premiums ($3-4.00) in Florida are warranted under all pricing scenarios.

Underlying all of this is the provision in the current law which states that funding will no longer be available to administer the Federal Orders if the reformation does not take place by April, 1999. The USDA Dairy Division has set January, 1999 as the target implementation date, but the Division is already months behind in announcing proposals, and at the Feb 18th conference, the Federal Order Administrator for the Southeast and Florida orders could make no prediction when the pooling and pricing proposals would be announced.

"Merged" DHI Reports will have New Information

A goal of the merger between DRPC Raleigh and Mid-States DRPC is to provide better products and services. In keeping with this goal, several DHI Reports will be enhanced to provide the best from both centers.

An Identification and Genetic Summary will provide the number of animals in several age groups with their average age, PTA $ (or Parent Average $) and Sire PTA$ (or PA$). Age groups will be 0-12 months, 13+ months, all replacements, 1st, 2nd, and 3+ lactation animals. The number of ID changes for the producing females will also be listed.

 A Somatic Cell Count Summary for the current test will provide the amount of milk lost and dollars lost from high somatic cell count. Cows will be divided by lactation groups with the % of cows in various cell counts.

The Production by Lactation Summary has the cows divided by lactation groups and will list their average age in months, average summit milk, projected ME, difference from herd mates and body weight.

Additional reasons for cows leaving the herd have been added to the Yearly Summary of Cows Entered and Left the Herd.

Examples of these reports will be available from your DHIA Service Affiliate office.

- Ron McCuddy

March

06 Central Florida Fair, Orlando, FL (06-09)

13 AI School, Hague, FL (13-15)

April

08 Dairy Production Conf., Gainesville, FL (08-09)

 Measures of profitability such as returns to the operator for labor and management or returns to assets employed in the business require more information than shown in the table on the left. Accrual adjusted receipts and assets used in the business are needed as well.

- Michael DeLorenzo

FL Milk : Feed Ratio

Dairy Production Conference April 8-9

Dr. Dave Beede, Michigan State University Professor and former UF Professor, will anchor a nutrition and management program on April 8 with a talk on "Nutritional Management of Fresh Cows." Other April 8 talks focus on pastures, forages, mastitis, timed AI, and the future of DHIA. Following a DFI breakfast meeting on April 9, Dr. Al Ortego, Louisiana State University Dairy Economist, will talk about "Dairy Marketing Outlook and Impact of Federal Order Reforms." Other talks will review current Florida milk production costs and discussion of practices that will be required to meet DEP’s new Animal Husbandry rule. Mark these dates on your calendar. Early registration fees are $50.00. You can register now while you think about it by sending information to H.H. Van Horn, UF Dairy and Poultry Sciences Dept., P O Box 110920, Gainesville, FL 32611-0920 or call (352) 392-5594 for registration materials. Make registration fee check payable to the University of Florida. The hotel is the Radisson, phone (352) 377-4000 for reservations and indicate that you are part of the Dairy Production Conference, rates $59 single, $69 double.

- H.H. (Jack) Van Horn