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How Are DDGS Being Used Globally?

The US Grains Council has helped work through an agreement with the country of Jordan to start delivery of U.S. distiller’s dried grains with solubles (DDGS) in early 2011.

It will also be the first-ever DDGS sale into an Arabic Middle Eastern nation, an area with the potential to use up to three million metric tons of DDGS, according to Joe O’Brien, USGC regional director in the Middle East and Subcontinent.

For additional information on dairy production in Jordan, see Alqaisi O, Ndambi O A and Hemme T 2009: Development of milk production and the dairy industry in Jordan. Livestock Research for Rural Development. Volume 21, Article #107. Retrieved December 5, 2010.

Where Can I Find Dairy Product Data?

The dairy products report from the USDA National Agricultural Statistics Service provides monthly data on the U.S. dairy production statistics for a variety of products.

[The] report contains the production of butter, cheese, frozen products, evaporated, condensed, and dry milk and whey products; shipments, stocks, and prices of dry milk and whey products for major states and U.S.

Additional statistical information on dairy can also be found from the USDA's Foreign Agricultural Service (FAS) and the USDA's World Agricultural Supply and Demand Estimates (WASDE).

DairyCast Update for December 3, 2010, What Does The Year End Economic Review Show?

Truffle Media Networks focuses on bringing usable media to agri-business professionals in dairy.

How can you connect with those professionals? Truffle Media Networks offers a channel that reaches producers, farm operation management, large animal veterinarians, production staff, and researchers. Learn more about how to make those connections.

Small Dairies See Business Opportunities

There is optimism in smaller dairy producers that are willing to focus on locavore consumers. Locavores are interested in sustainability and eco-freindly food production. While main stream dairy producers are struggling, smaller dairies are using consumer interest in how milk products are made to sell premium priced products, like heritage cheeses.

Much of it is being devoured by "locavores," people who try to eat locally produced food and are willing to pay up to get it. There's also growing demand for "heritage cheese" produced by breeds of cows, goats and sheep not found in normal dairies.

"In America you have block cheddar and you have black and white cows and that's what the general consumer understands about cheese and dairy," said Ms. Nichols [of Heamour Farm in Madison, N.Y]. "I'm hoping the consumer will start to stop and think about the cultural heritage behind that product they are eating and why that breed of animal is contributing to the flavor of that product."

Dairies Are Not Riding Agricultural Profit Wave

While other agricultural products are doing well for growers, U.S. dairy farmers are not doing as well. Feed prices combined with an over supply of milk products are pushing prices and profits down.

Dairy farmers expanded herds following the 70 percent jump in prices to a record in 2007, just before the U.S. began its longest recession since before World War II and unemployment rose to the highest level in a quarter century. Weaker demand was compounded by this year’s drought, floods or freezing weather from Canada to Kazakhstan that ruined crops and boosted competition for U.S. grain that dairies require.

It is anticipated that there will be some dairy operations that will fail in the coming months. It is also believed that the next year will continue to be rough on dairy producers because of continued market pressures from animal feed corn.

Corn futures have risen 48 percent since the end of June, the biggest gain in the Thomson Reuters/Jefferies CRB Index of 19 raw materials after sugar. The U.S. Department of Agriculture cut its estimate for the crop on Nov. 9 for a third straight month because of flooding in Iowa and Missouri and hot, dry weather from Illinois to Ohio.