Friday, May 21, 2010


Today, the "Cold Storage" numbers came out:

The "Cold Storage" numbers are down 14% from last year. You have to go back several years to find butter stocks this low.

Dairy Market News' most recent international report states:

Oceania butter markets are firm with prices trending higher. Cream supplies are tight as the end of the milk production season arrives. Traders and handlers report that stocks are in very close balance to often short of projected last season needs. Especially in New Zealand, manufacturers and handlers were hoping that the end of the milk production season would have stretched out further than it did. Due to the quicker than anticipated end to the season, traders are in communication with customers trying to fulfill contract commitments.

For that matter, Dairy Market News says organic cream is moving into conventional markets because of the severe shortage of cream.

With all of the above in mind, is anyone surprised butter fell on the CME this week? Further, there appears to be no possible connection between the main trader and butter.

The Dairy Industry Advisory Committee will be holding its next meeting in early June.

Do not expect any serious look at the CME from the DIAC.


  1. This committee is being orchestrated by the processors and mega-coops. NMPF - IDFA- other processor lobbyists - are who they are listening to. Unless some extremely negative press is generated soon about this situation
    the spin is going to look like they're actually doing something positive.

  2. As a member of the committee I can flatly deny that the CME is not part of the discussions of this committee.
    It is being discussed in some depth and the input is not coming just from NMPF and IDFA.

    Please add your voice by commenting directly to the committee rather than trashing it

  3. I have commented directly to the committee website with my concerns and the concerns of the cooperative for whom I work. It does concern those on the farm level when they see that the main presenters at the DIAC are those who are not farmers, and also the committee agenda made no mention of CME being addressed.

  4. If as you say the butter storage is low and cream is in such short supply that they are using organic as conventional why is the butter price dropping daily?