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Value-added dairy is a big-time commitment

Value-added dairy is a big-time commitment
As markets and the dairy industry as a whole continues to change, many dairy producers have investigated value-added processing as an opportunity for their operations. During the May 19
Hoard’s Dairyman DairyLivestream, the University of Wisconsin-Madison’s Mark Stephenson shared three discussion points he recommends deliberating early in the investigation period for those considering going the value-added route.
Stephenson’s first question to anyone that approaches him about adding a value-added business is simple. Why?
“If someone just tells me that they’re having a hard time making ends meet milking cows and are looking to capture some of those upstream profits, I tend to think that’s not a very good reason,” he explained. “You need to be successful at milking cows first, and then give me a better reason for doing something else. ....

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The dairy supply chain pushed consolidation

The dairy supply chain pushed consolidation
It’s a push that has occurred up and down the chain. It has been driven by national and international brands that have been on the search to find more global suppliers.
“Consolidation has certainly had its impact on the dairy markets. You may remember when we began to see Suiza and Dean’s Foods begin to gobble up plants and ultimately merge into a single organization of Dean’s, and now that’s part of Dairy Farmers of America (DFA),” the University of Wisconsin-Madison’s Mark Stephenson commented during the May 19
Hoard’s Dairyman DairyLivestream. “They were motivated to do that because they saw the consolidation occurring in the retail segment. ....

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The year of communication

The year of communication
Just like dairy farmers and dairy retailers, dairy product processors have been forced to learn a lot over the past 13 months as they attempt to balance supply and demand. Maybe the biggest lesson has been the need for more regular contact with the entirety of the supply chain.
“This has been the year of talking. This was the year of communicating,” said John Umhoefer on the April 21
Hoard’s Dairyman DairyLivestream. Umhoefer, executive director of the Wisconsin Cheese Makers Association, said his members have reported stronger relationships with their distributors than ever before. Coordinating products coming in and going out on sometimes tight schedules created more transparency on both sides of the chain. ....

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Processors consider markets, not regions

Processors consider markets, not regions
While the pandemic and its effects are by no means behind the United States, recent vaccine availability and slipping COVID-19 infection rates have caused many parts of the country to walk back policies meant to reduce human interaction and limit the spread of the disease. This doesn’t apply to all parts of the U.S., but many rural areas are opening restaurants and other food institutions again.
That raised a poignant question from an April 21
Hoard’s Dairyman DairyLivestream listener. They asked, “Has dairy demand looked different across the U.S. as states reopen at different times?” ....

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CME establishes dairy's most vital benchmark

CME establishes dairy’s most vital benchmark
For those who closely follow dairy product pricing, monitoring CME movement, and particularly the block and barrel cheese prices, is a critical component of their sales planning. Specifically, CME markets set the benchmark for dairy product pricing and provide a floor for the market. During the March 3
Hoard’s Dairyman DairyLivestream, commentators discussed how they view the CME and its influence on prices.
“I will say that we have to be careful with this because when we’re pricing this milk, it’s not the price for milk that comes down from the federal orders. It’s the minimum price for milk,” the University of Wisconsin-Madison’s Mark Stephenson said of CME prices. ....

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