Dairy Today August 2011 : Page-IFC
DAIRYTODAY COM Dairy Talk TODAY Editorial Ofﬁces Editor Jim Dickrell P.O. Box 1167 261 East Broadway Monticello, MN 55362 (763) 271-3363 Fax: (763) 271-3360 E-mail: email@example.com Western and Online Dairy Editor Catherine Merlo 13061 Rosedale Hwy., #132 Bakersﬁeld, CA 93314 (661) 588-0561 Fax: (661) 588-0584 E-mail: firstname.lastname@example.org Art Director Lindsey Benne Associate Editor Gary Kass Proofreader Sara Brown Contributing Editors Meg Gaige, Linda Leake, Alan Levitt, Rick Mooney Consulting Editors Michael F. Hutjens, Jim Linn, Dan Little, Rick Lundquist, Jim Peck, Mark Wustenberg Vice President, Publishing Operations Mike Morgan Production Manager Jennifer Kaiser Administrative Assistant Kasey Hunt, Mary Rulinski For subscription inquiries (800) 331-9310 President and CEO Andrew J. Weber Jr. Executive Vice President Steve Custer Senior Vice President, Editorial and Content Development Charlene Finck Publisher Bill Newham (816) 889-9400 Dairy Today National Account Managers Sue Lee, Kansas City, Mo. (816) 889-9401 Lori Lulich, Lyndon Station, Wis. (608) 666-2407 Business Ofﬁce 1600 Genessee St., Suite 328 Kansas City, MO 64102 For advertising inquiries (800) 523-1538 Cover photo by Steve Woit. Cover animal courtesy of Richie Heida of Hereford, Texas. DAIRYTODAY.COM Bonus content: More on Foundation for the Future Think Global The National Milk Producers Federation’s 12-city road show for its Foundation for the Future (FFTF) dairy reform package is now history. I was able to attend only one of the meetings, but reports were that producers were seeing the program through some pretty nearsighted lenses. That’s understandable—everyone wants to know “How would reform affect me?” But there’s an old adage, coined in the 1970s by the environmental movement: “Think global, act local.” That’s apt advice for evaluating FFTF. The Great Dairy Recession of 2009 was a deﬁning event for the current generation of dairy producers. Most still have not recovered their lost equity. Like it or not, any dairy reforms will have to prove their mettle against 2009. To be clear, the 2009 price collapse was not the result of domestic policy. Yes, production was on the increase after 2007 and 2008. But the global recession caused a credit and liquidity crisis, which froze export markets. With 11% of U.S. milk solids going offshore, a 25% decline in exports meant up to 3% more product was left in U.S. warehouses. The result: a 30% decline in milk prices. Could FFTF prevent a recurrence? Maybe. It does away with the dairy price support program. That would allow U.S. prices to crash even lower, but markets would clear much faster. FFTF’s Dairy Market Stabilization Program also has a “snubber” that would halt the program if U.S. prices were 20% higher than world prices. The reasoning: If production drops too much, U.S. prices could rise and actually encourage imports to ﬂow in. But is 20% too wide a margin, preventing the U.S. from continuing to export products? Today, we are exporting 13% of our milk solids, and we’re on the way to 15%. Maintaining our ability to export one out of every 7 lb. or 8 lb. of milk solids through thick and thin is critical. In the ﬁnal analysis, all the rest of FFTF is just details. JIM DICKRELL Jim Dickrell, Editor DAIRY TODAY (ISSN 1056-1382), August 2011, Vol. 26, No. 7. Dairy Today is a business magazine published monthly except bimonthly June/July by Farm Journal Media, 30 S. 15th Street, Suite 900, Philadelphia, PA 19102-4826. It is published for dairy managers and producers. Domestic subscription price: $44 per year. International subscription price: $55 per year. Publisher reserves the right to refuse any subscription. Copyright 2010, Farm Journal Media. All rights reserved. Farm Journal and Dairy Today are registered trademarks and the property of Farm Journal Media. Periodicals postage paid at Philadelphia and additional mailing offices. POSTMASTER: SEND ADDRESS CHANGES TO DAIRY TODAY, 102 MACKINLAY KANTOR DRIVE, WEBSTER CITY, IA 50595-7201. Whenever you write about your subscription, enclose the address label from your latest copy. Changing your address: Send label and new address; allow five weeks for service. Address all correspondence about your subscription to ADJUSTMENT DEPT., Farm Journal, 30 S. 15th Street, Suite 900, Philadelphia, PA 19102-4826. Advertising inquiries should be directed to ADVERTISING DEPT., Farm Journal, 30 S. 15th Street, Suite 900, Philadelphia, PA 19102-4826. Send all editorial comments to Dairy Today, P.O. Box 1167, 261 East Broadway, Monticello, MN 55362.
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