Pauls Valley, OK, Pauls Valley Democrat

Business

October 11, 2012

Rising feed cost seen driving milk production down

CHICAGO — U.S. milk production is headed for the biggest contraction in 12 years as a drought-fueled surge in feed costs drives more cows to slaughter.

Output will drop 0.5 percent to 198.9 billion pounds (90.2 million metric tons) in 2013 as the herd shrinks to an eight- year low, the U.S. Department of Agriculture estimates. Milk futures rose 45 percent since mid-April and may advance at least another 18 percent to a record $25 per 100 pounds by June, said Shawn Hackett. The president of Boynton Beach, Fla.-based Hackett Financial Advisers Inc. correctly predicted the rally in March.

Dairies in California, the top milk-producing state, are filing for bankruptcy, and cows are being slaughtered at the fastest rate in more than a quarter century. Corn surged to a record in August as the USDA forecast the smallest crop in six years because of drought across the U.S. Global dairy prices tracked by the United Nations rose 6.9 percent last month, the most among the five food groups monitored, and that will probably mean record costs next year, Rabobank estimates.

"Farmers can't afford to buy as much grain and protein, and that affects milk production," said Bob Cropp, an economist at the University of Wisconsin in Madison who has been following the industry since 1966. "In California, there've been some foreclosures and some sell-off of cows quite heavily. You're going to see that in other parts of the country."

Class III milk, used to make cheese, jumped 22 percent to $21.10 on the Chicago Mercantile Exchange this year. That's more than 21 of the 24 commodities in the Standard & Poor's GSCI Spot Index, which rose 2.2 percent. The MSCI All-Country World Index of equities climbed 12 percent, and Treasuries returned 1.8 percent, a Bank of America Corp. index shows.

The global dairy market is facing a scarcity of supply in the next 12 months as output slows in the United States and Europe and demand keeps expanding, Rabobank said in a Sept. 27 report. Surplus milk available for shipment from the seven biggest exporting regions will decline for the first time in four years, and there is little excess inventory, the bank's team of 11 dairy analysts estimate.

Text Only
Business
  • Tribal ag program brings farm to casino

    The Quapaw Tribe has started an agriculture program that is supplying locally grown products for its casino restaurant.

    May 12, 2014

  • Charities helping residents after wildfire

    Local charities are on the scene to help Logan County residents sift through the ashes after wildfires swept through the rural area near Guthrie.

    May 8, 2014

  • ALDI Norman store opens ALDI opens Norman store on West Main Street

    A light rain didn’t deter dozens of shoppers who showed up to help open the ALDI store at 2440 W. Main Street in Norman early Thursday.

    May 8, 2014 1 Photo

  • Lebanese Festival planned for two days

    Food, music, dance, culture and traditional home-cooked Lebanese food once again comes together in Norman in the form of Middle Eastern hospitality.

    April 24, 2014

  • Senators accuse GM of covering up defective switch

     Members of a Senate subcommittee accused General Motors of trying to cover up problems with an ignition switch that is now tied to 13 deaths, and pressed CEO Mary Barra to commit to punishing anyone involved.

    April 2, 2014

  • Bethesda 1 University of Okla. students paint murals, brighten up nonprofit

    The harsh, cold, metal door slipped away as green, then blue, turned into a lush, green field with a winding path and a group of University of Oklahoma undergraduate students painted murals Monday at Bethesda Inc., a local agency that specializes in sexual abuse treatment and prevention for children and adolescents.

    March 25, 2014 2 Photos

  • Fly-tying Frenzy at Sam Noble Museum

    The Sam Noble Oklahoma Museum of Natural History will offer Fly-Tying Frenzy, an adult fly-tying workshop, from 8 to 11 a.m. for beginners and from 1 to 4 p.m. for intermediate and advanced participants April 5.

    March 12, 2014

  • JC_GE BUILDING.jpg Industry giants represented at Oak Tree

    Two corporate leaders discussed their company’s respective impact of business expansion on the local economy Thursday at the Edmond Chamber of Commerce Membership Luncheon.

    February 28, 2014 2 Photos

  • Cherokee Nation raising minimum rage

    The Cherokee Nation, one of the largest Native American tribes in the country, is raising its minimum wage by 50 cents, Chief Bill John Baker announced Monday.

    February 25, 2014

  • Moore City Council denies zoning change request

    Residents protesting a requested zoning change to allow apartments to be built in an area devastated by the May 20 tornado filled Moore City Hall on Tuesday night, then applauded when the Moore City Council denied the zoning change request unanimously.

    February 19, 2014

Business Marquee

e-Edition
  • How You Want It When You Want It Today's Pauls Valley Democrat

    Now you can view and download the Democrat right to your desktop on the day the paper is published. Click here to get more information on the Democrat's e-Edition.

     

    CLICK HERE TO ACCESS THE E-EDITION SITE

     

    ATTENTION CURRENT DEMOCRAT SUBSCRIBERS TO START an e-EDITION

    e-mail request to sjohnson@pvdemocrat.com

    April 20, 2011 1 Photo 1 Link

AP Video
Traditional African Dishes Teach Healthy Eating The Carbon Trap: US Exports Global Warming 13 Struck by Lightning on Calif. Beach Baseball Hall of Famers Inducted Israel, Hamas Trade Fire Despite Truce in Gaza Italy's Nibali Set to Win First Tour De France Raw: Shipwrecked Concordia Completes Last Voyage Raw: Sea Turtle Hatchlings Emerge From Nest Raw: Massive Dust Storm Covers Phoenix 12-hour Cease-fire in Gaza Fighting Begins Raw: Bolivian Dancers Attempt to Break Record Raw: Israel, Palestine Supporters Rally in US Raw: Air Algerie Flight 5017 Wreckage Virginia Governor Tours Tornado Aftermath Judge Faces Heat Over Offer to Help Migrant Kids Kangaroo Goes Missing in Oklahoma More M17 Bodies Return, Sanctions on Russia Grow Raw: Deadly Tornado Hits Virginia Campground Ohio State Marching Band Chief Fired After Probe Raw: Big Rig Stuck in Illinois Swamp
Stocks
Facebook