HARRISBURG, Pa. — The Center for Dairy Excellence is hosting a special edition of its monthly “Protecting Your Profits” webinar on Wednesday, June 23 from 12-1 p.m. The event will focus on managing high feed costs with Dr. Jud Heinrichs, Professor of Dairy Nutrition at The Pennsylvania State University, serving as guest speaker. A timely topic for dairy producers who have been faced with high input costs this year, this will be Dr. Heinrichs’ last official presentation before his retirement. Led by Zach Myers, Risk Education Manager at the Center, individuals can join the discussion via conference call, webinar, or podcast format.
“With unusually high feed costs this year, it is important to understand how to maximize milk production while input costs remain high,” Myers said. “Please join us this month as we welcome Dr. Jud Heinrichs to the June ‘Protecting Your Profits’ webinar. Dr. Heinrichs will be sharing strategies for maintaining milk production while minimizing feed costs that I think will be very valuable to dairy producers who are tuning in.”
During the webinar, Myers will briefly highlight the Class III and IV futures milk price forecasts before Dr. Heinrichs shares strategies for minimizing feed costs. Myers will give an overview of these numbers, including dairy export data, DMC margins and DRP floor prices:
- Class III has dropped, on average, over $1 per cwt since the middle of May. As of June 6 closing prices, Class III for the next 12 months averages $18.10 per cwt.
- Class IV milk price for the next 12 months now averages $17.52 per cwt, 9 cents higher than mid-May.
- April exports experienced gains in every major U.S. dairy product with total volume increasing by 25% compared to April 2020. Value of dairy exports was estimated at over $690 million, 33% higher than last year.
- The April Dairy Margin Coverage (DMC) was announced as $6.94, a 48 cent per cwt improvement over March. A $0.52 per cwt increase in feed cost was offset by a $1.00 improvement in the U.S. all-milk price. The DMC feed price was $11.46 and the U.S. all-milk price was $18.40
According to Myers, although Class III milk price has decreased since last month, Dairy Revenue Protection (DRP) still provides decent Class III floor prices. Volatility drives premium costs, and he says the floors set by DRP still merit consideration. Similarly, with Class IV improvement, Class IV DRP floor prices have improved. Market volatility has increased premiums, but Myers says the Class IV prices that can be protected are also worth considering.
“In addition to our monthly updates about these risk management programs, I’m looking forward to Dr. Heinrichs’ presentation,” Myers added. “He is retiring at the end of June, and this will be his last official presentation as a professor at Penn State. We thank Dr. Heinrichs’ for his many years of service to the Pennsylvania, U.S. and world dairy industry.”
Dr. Jud Heinrichs is a Professor of Dairy Nutrition at Penn State. He has an extension and research appointment and has been in charge of the Penn State Dairy Nutrition Conference for 21 years. It is now the largest conference of its type in the United States. His work for the past 38 years has centered on dairy replacements and forage particle size as it relates to dairy cow rumen function.
To join the “Protecting Your Profits” discussion and access the information in a format that is most convenient for you, the Center offers the series in a webinar, podcast, and conference call format. There is no cost to participate, and no registration is necessary.
Visit www.centerfordairyexcellence.org/JunePYP on Wednesday, June 23 at noon to launch the webinar.
Conference Call Format
Individuals who would prefer to connect via conference call can dial the following number on Wednesday, June 23 at noon:
Meeting ID: 848 3416 1708
Visit www.centerfordairyexcellence.org/pyp to listen to the “Protecting Your Profits” podcast and subscribe to get notified when new episodes are released. Episodes are expected to be published after the live webinar and conference call are concluded each month.
Join the Center on June 23 to find out how these programs and the conventional price risk management tools can fit in to your marketing plan. For more information, call 717-346-0849 or email Myers at firstname.lastname@example.org. The webinar will be recorded and posted on the Center for Dairy Excellence website for those who are unable to join the live session.
–Emily Barge, Center for Dairy Excellence