As Milk Prices Decline, Worries About Dairy Farmer Suicides Rise : NPR

“The nation’s dairy farmers are facing their fourth year of depressed milk prices. The outlook is so bleak, it’s increased worries about farmer suicides. One recent outreach effort drew criticism.”

Source: As Milk Prices Decline, Worries About Dairy Farmer Suicides Rise : NPR

The situation for dairy farmers in 2017 was not good. A lot of diary operations are running right on the edge, trying to stay profitable at a time when there is ever shrinking demand for liquid milk for drinking, and a glut of other dairy products like cheese, butter and powdered milk. This story above from NPR illustrates just how bad the situation is getting. Go read the article if you have the time. It isn’t very long.

If you don’t have the time, here’s a brief summary: A dairy co-op in the north east US, Agri-Mark, has seen three of it’s farmer members commit suicide in the last few years. Agri-Mark makes Cabot cheese among other products, and has about 1,000 members. In February when it sent out the milk checks, it included a chart showing just how bad the dairy market was looking for the upcoming year, and a list of suicide prevention hotlines. The reporter talked with Will Rogers, who milks 75 cows in Massachusetts, who is having a difficult time keeping above water. Even more upsetting is the fact that his own father who used to own the farm, killed himself because of financial problems.

While the letter from Agri-Mark was probably well intentioned, it certainly added to the stress a lot of it’s farmers are already facing and Rogers says in the article, it might push some farmers so far that they think “there’s no point in going on.” Agri-Mark certainly could have done a better job of trying to communicate with it’s farmer members.

And as if dairy farmers don’t have enough problems, they are increasingly worried about being able to sell their milk at all. Dean Foods just told at least two dozen farmers in Pennsylvania, Indiana, and four other states that Dean will no longer take their milk as of May 31, leaving them scrambling to find a milk processor they can sell their milk to.

The same thing happened here in Wisconsin last year about this time when Grassland rather abruptly dumped a group of farmers, leaving them to desperately try to find a market for their milk.

The article at Dairy Management about Dean seems to be trying to blame Walmart for Dean’s decision. Walmart used to buy it’s in-house brand milk from Dean, but Walmart is building it’s own milk processing facility in Indiana which will come on-line in May, so Dean is going to be losing a significant amount of sales as Walmart switches to product coming from it’s own production facility.

Certainly there is enough blame to go around, but everyone is ignoring the fact that the real reason behind almost all of the money difficulties dairy farmers are having is over production. They are producing more product than the market really wants, which is pushing prices down lower and lower.

There are various marketing boards, government agencies and others trying to help the situation, but almost all of them are focusing on one thing, trying to increase sales of a product that increasingly people don’t really want, and shouldn’t be eating much of. At at time when a recent study just found that 75% of the people in this area are overweight, we have government agencies and marketing boards trying to convince food makers to shovel ever more cheese into their products.

Seventy-five percent. Think about that for a moment. We are facing a national health crisis due to people eating too much of what is bad for them, with government agencies and others trying to figure out how to help people get their weight under control, and at the same time other government agencies and marketing specialists are trying to get food manufacturers to drastically increase the amount of cheese they use in their products.

 

Strangeness in New Tax Law for Farmers

The interesting thing about the new tax law that got rammed through is that no one really seems to have known what was in it, not even the people who wrote it. This law was literally written in secret, behind closed doors, with only a very few people being allowed to know what was actually in it. Special clauses were inserted for no other reason than to get support from members of congress who threatened to vote against it. And often the people writing it had no idea what they were actually putting into the law. Except for a few high profile items and talking points, none of it was allowed to be made public until it came to the floor for a vote. And finally it was passed in such a rush that the people voting on it didn’t know what they were actually voting for or against.

Apparently even the people who actually had specific items inserted into the law didn’t know what the clauses that they themselves had put in would actually do. Part of the new law, IRC Section 199A that applies to earned income from pass through business activities is one of the items that even it’s authors didn’t really understand.  And one section of the 199A deduction could have a huge impact on farmers and how they sell the commodities they produce. I ran across this over at WallacesFarmer and it gives a brief rundown on how it works. But if you don’t have time to go read it yourself, here is how it would work.

The law includes a deduction for income from cooperatives for members of co-ops that is calculated differently from other sources of income. Basically income derived from selling your crops to a co-op you belong to is treated entirely differently from income from selling your products to a non-co-op.

The whole thing is a bit complex. What it essentially does for farmers is that in certain situations it carves out a huge deduction for selling your commodities to your co-op instead of to a commercial grain dealer. In the example they give in the article over at Wallaces, a farmer who sells his grain to a non-co-op business like an ethanol facility and ends up with a $50K profit, will end up owing about $4K in taxes on the profits from the sale.

If he sells it to a co-op, however, the farmer will end up owing zero taxes on the net income from the sale.

The really scary part is that the senators who inserted this into the tax bill, apparently had absolutely no idea this would be the result of the clauses they put into it. Two senators, Hoeven of ND and Thune of SD seem to have been largely responsible for shoving this into the bill just hours before it passed, and both claim that they did not intend to favor co-ops over any other business, despite the fact that is exactly what this does.

And this is just one clause in a law that is hundreds of pages long. No one knows yet what kind of traps, loopholes, give aways or other little surprises are lurking in this thing, and it could be months before we really know. And you can be sure that a lot of this is going to end up going through the courts before it all gets settled.

 

Farm Catch Up

Well, I’m bored, I haven’t written much here of late, so let’s take a look at what’s been going on in the ag world recently.

Dicamba Issues Abound — The controversy over Monsanto’s dicamba herbicide blends and those approved under license, XtendiMax, Engenia and FeXapan, continue to have problems and generate considerable controversy, complaints and legal issues. Minnesota and other states have instituted restrictions on when, where and how the herbicides can be uses, new federal restrictions regarding training requirements and new application restrictions, etc. Other states have issued wide ranging restrictions as well.  Even Mother Jones has gotten into the act with an article about the drawbacks of the product.

The companies involved are fighting back, blaming anything and everything for the fact that over 3.5 million acres of crops were allegedly damaged by the herbicide drifting away from the application area this past year. They’ve been claiming farmers are spraying the product with the wrong equipment, failing to follow the proper application techniques, etc. They’ve even tried claiming that famers are illegally spraying non-approved types of the herbicide. In one case one of the companies involved tried to get a member of the board that regulates herbicides in one of the states involved removed from the board.

Words Are Worth MoneyThe University of Arizona did a study of how consumers react to the term “natural” on meat labels and found out pretty much exactly what you might think: that people who know what the term means were unwilling to pay more for meat labeled “natural”. In the study half of the people involved were told the legal definition of the term, and half were unaware of what the legal definition was. They found that those who did not know would pay $1.26 more for steak labeled “natural”, while those who did know wouldn’t pay more.

Under USDA definitions, all fresh meat, even hamburger, can be labeled as “natural” as long as it does not contain artificial flavors, colorings, chemical preservatives or other synthetic ingredients. So basically if you’re paying more for a package of steak or roast labeled “natural” you are being scammed.

What it boils down to is that a lot of these companies will use any  kind of marketing tricks they can to fool you into paying more for a product than you should.

Meat Tax Coming? — Methane and carbon emissions from cattle raising operations makes up almost 15% of the total production of greenhouse gases, and the production of cattle is projected to increase by 70% over the next fifty years or so. So some people are considering taxing the production and sale of meat to try to reduce the reduce greenhouse gas production from cattle. There are serious talks going on in some countries to institute tax policies similar to those used to curb tobacco in order to reduce production and consumption.

Frankly this seems a bit silly to me. The two largest producers of greenhouse gases are electric power plants and motor vehicles. The amount of methane and carbon dioxide produced by cattle hardly makes more than a blip on the charts when compared to that. So I’d think that if they were really serious about greenhouse gas reduction they’d be going after those two sources far more vigorously.

Corn Acreage Shrinking — It looks like farmers are finally beginning to cut back on the amount of corn they’re raising in response to poor prices. USDA is predicting that for the first time in years the number of acres of soybeans will equal or even surpass the number of acres of corn being planted in the US. Corn prices on the Chicago Exchange never went much over $3.75 or so at the peak, and have been sitting at the $3.50 or lower level for some time now. And, of course, the commodities price generally isn’t what the farmer gets for the corn. They often get considerably less than that. When you add in other costs like storage fees, etc. farmers are often getting a lot less than the commodities price.  A awful lot of farmers out there are just barely breaking even on corn this year.

Some people are pinning their hopes on China increasing their imports of corn. China has been drawing down it’s huge stockpiles of corn over the last year or so, and some are taking that as a sign the country will begin to import more corn. But continuing to produce corn in the hopes that China might increase imports sounds like a great way to end up bankrupt.

Screen Shot 2017-12-20 at 7.33.13 AMChicken Suits — No, not that kind of suit. The legal kind. Both California and Massachusetts are being sued over regulations they’ve instituted regarding how chickens (and other farm animals  as well in the case of Massachusetts) are raised. The regulations require chickens (and in the case of Mass. other agricultural animals as well) from which products are derived for sale in the state, must be raised according to certain minimal humane standards. The plaintiffs claim that the regulations dramatically increase the cost of eggs and that it will cost consumers hundreds of millions of dollars, and that the cost of eggs nation wide has increased as much as 5% because of it. A claim I view with considerable skepticism. Locally the retail price of eggs is at almost an all time low. They’re going for about $1.00 to $1.28 per dozen at most retail outlets around here for standard, non-organic “generic” brands, and I’ve seen them as low as $0.79 and even less.

Farm Catch Up: What’s going on in Agriculture.

Screen Shot 2017-11-29 at 6.48.45 AMLet’s catch up with what’s been going on in agriculture.

Let’s lead off with this odd little item. So, here’s the scenario: You’ve just survived a hurricane. Your house has been flooded, your whole neighborhood has been destroyed, you’ve lost everything you own, you’re trying to cleanup and rebuild. You desperately need money, building supplies, cleaning supplies, drywall, lumber, shingles, plywood… So you’re sitting there staring at the ruins of your neighborhood and you think, “Wow, what I really need is a big hunk of cheese…”

That is apparently what some people in Wisconsin thought when they shipped 45,000 pounds of cheese to the hurricane ravaged areas of the country. Yep, they thought, what they need isn’t money or building supplies or cleaning supplies or anything else that might actually be, well, useful. What they need is forty five thousand pounds of cheese

Screen Shot 2017-11-30 at 6.25.07 AM
Little known fact: Cows are one of the few animals that can pick their noses with their tongues.

Dairy/Milk: All things considered, the dairy business wasn’t totally horrible this year. Not great, but not terrible. The average price for Class III milk (the kind that’s used for cheese and butter) for the year was in the $16.10 to $16.20 range for 2017. That’s considerably better than 2016 when the average price was about $1.60 lower. The price seems to have been propped up largely by demand for butter and cheese, which has remained fairly strong through a large part of the year.

But the ever present specter of over production is once more haunting the dairy business. Production in the US was up around 2.5% over the year, and production has been going up in other dairy producing areas of the world as well, and the market is showing signs of strain. Butter prices on the Chicago Mercantile have dropped from 2.65 to around 2.21, butterfat exports have fallen, cheese prices have dropped about 10 cents and cheese in storage has increased almost 6% over last year.

Mexico is one of the biggest purchasers of dairy products from the US, but it is actively seeking other sources of supply because, well, would you be comfortable dealing with a merchant who called you a drug-running murdering rapist? It has cut it’s purchases of nonfat dry milk from the US by around 20%, and is getting it from Canada and the EU.

Throwing a monkey wrench into the works is NAFTA, which the administration is supposedly renegotiating. Does anyone except me remember that the Ag Secretary, Perdue, was proudly claiming that the administration was going to renegotiate NAFTA in just three weeks back in early May? Sigh… I try to keep politics out of this, but it’s hard sometimes.

The end result of all of this is that the future for the dairy industry doesn’t look very good. Between over production, declining demand, declining exports, well, right now it looks like 2018 is going to see milk prices dropping by at least $1/cwt, down to the $15.50 range, and they could even get lower than that.

Screen Shot 2017-11-30 at 6.33.21 AM
This was a pasture before the pigs got into it

Wild Pig Population On The Rise: Wild pigs are a huge problem. It’s estimated that there are 6 to 11 million wild pigs running around out there, and according to the National Feral Swine Damage Management Program they are responsible for up to $1.5 billion in damage every year.

They’re trying to get approval for a poison based on sodium nitrate called “Hoggone” which would apparently be placed out in the field in “a species-specific feeder”.

The problem with that kind of thing is, of course, that other animals other than that target species often consume the poison because these “species-specific feeders” often aren’t all that specific. Then there are problems with poison residue left in the carcass being consumed by predators and scavengers. And if you read the article tagged up there you’ll see that some of the experts don’t think poisoning is going to do all that much to cut down the size of the population.

Can you hunt them? Hell yes. You need to check the regulations in your own area for specifics, but most states strongly encourage hunters to take wild pigs, and have few restrictions and no bag limits, and no restrictions on size, gender, no specific season.

Can you eat ’em? Ah, well… Here’s where I get a bit nervous. A lot of DNRs encourage people to eat them. But that’s because they hope you’ll go out and shoot a lot of the buggers. I know people who wax poetic about the joys of eating wild pig. Me? I wouldn’t touch one. They carry a lot of diseases, many of which are infectious to humans and pretty nasty. A lot of them are infested with parasites… No, I wouldn’t eat one.

Cranberry Glut: We are growing way, way too many cranberries. We have so many cranberries already in storage that even if we’d lost the entire 2017 crop, we still would have had a surplus.

The Cranberry Marketing Committee is trying to get USDA to issue a marketing order that would require cranberry growers to produce 25% less cranberries than market demand.

The problem with cranberries is that except for the holiday season, there is really little demand for them. Despite efforts by marketing companies to boost demand, consumption of cranberries in any form has been shrinking. Cranberries, at least by themselves, just don’t taste very good. They are so sour and so bitter on their own that they are virtually inedible unless you add a huge amount of sugar to them, or use them only in very small quantities as a flavoring agent.

What The Heck Is Actually In That Stuff?  You might like to think that manufacturers are required to list the ingredients in a product on the label, but there are all kinds of loopholes in labeling regulations that let them refuse to tell us what exactly is in the products we use. But California has passed new legislation that will lift the veil from at least one category of products, cleaning chemicals. When you see that term listed, it means that chemicals have been added to make the product smell nice. But what exactly is “fragrance”, or the ever popular “cleaning agents” that are listed on the labels? Turns out “fragrance” can contain one or more of thousands of different chemicals, some of which, it seems, are highly toxic, and even are known to be carcinogens. Some labels don’t tell you anything at all. This will will help a bit, but the law doesn’t really go far enough. It only covers cleaning products, for one thing.

Note: The article at Mother Jones that I’ve linked to here seems to be focused on fragrance for some reason, while the bill itself (yes, I’ve read the thing) does not seem to be restricted to chemicals added for fragrance alone. Fragrance is specifically mentioned in the bill, yes, but the bill seems to cover all chemicals in a product not just those used as fragrances.

 

Good Bye Tumbler: Tumblr Tumbles

I finally pulled the plug entirely on my blog over at Tumblr. I’m not exactly sure what Tumblr has become, but it isn’t a blogging platform any more, isn’t a social media platform.

The first blog I had was over at Tumblr and I was fairly active over there for many years. It was wildly popular at one time, and I liked it over there. It was a unique place. It was simple to write short entries, a few paragraphs long, shovel in some photos, and generally talk about anything you wanted with few, if any, restrictions on content. There were no intrusive ads being shoved in your face. There were a lot of thoughtful, interesting people. A lot of them were friendly, supportive. A lot of us using the service made some very good friends among the inhabitants of Tumblr. It had a commenting system that was easy to use, permitted people to respond easily to comments, fostering lengthy discussions.

Yes, it had it’s problems. It had the usual trolls, jackasses, jerks, etc. But generally speaking it was a fun, informative place to hang out. At it’s peak, Tumblr was seeing over 100 million new posts every day, and almost a quarter of a million new blogs were starting up every day. Now the number of new blogs starting up has fallen by more than half, and the number of new posts has fallen to 35 million.

How many people actually use the service? That’s almost impossible to find out. Tumblr seems to not make the number of active users public. Plus what exactly is a “user”? While I still have an account there, I’m not active any more. Haven’t been for some time. The situation is the same for most of the people I followed over there. Their accounts are still active, but they don’t bother posting anything any more. Considering that the number of new posts has dropped by two thirds, I’d suspect that the number of actual users has dwindled considerably as well.

Now, to make things even more interesting, the founder of Tumblr, David Karp, announced he is leaving.

What happened? Well, a lot of us who have seen the service falling apart blame it on Yahoo. Yahoo bought Tumblr in 2013 for $1.1 billion. Yahoo publicly promised it wouldn’t screw things up. But, of course, it did. Well, Yahoo already had a long track record of buying prosperous companies and running them into the ground through mismanagement, starving them of resources, and operating with a ‘profit at any cost’ philosophy that quickly destroyed the popularity of the services.

The problem with Tumblr was that while it was wildly successful, it also wasn’t making any money. Yahoo planned on changing that. They waited a while for the anger over the sale to die down and lull users into a false sense of security, and then started to tinker with things. They injected ads into people’s dashboards, utterly destroyed the comment system while claiming they were “improving” it, destroyed the messaging system, and even worse, enabled the abuse of the system by allowing people to deploy “bots”, automated systems that had the guise of being regular users but which instead were fake accounts set up by porn distributors, advertisers, etc. It’s added “enhancements” which rearrange the material that shows up on your dashboard so that it is no longer in chronological order, but now places what Tumblr considers to be the “best” content first, which means cute GIFs of kittens will be pushed to the top of your dash while the stuff you really want to see is shoved down to the bottom…

The whole atmosphere became increasingly difficult to deal with, even downright toxic. At the point I abandoned Tumblr entirely about 2/3s of my “followers” were bots because I gave up trying to weed them out. It wasn’t worth the effort.

Well, Verizon now owns the thing, and it doesn’t seem to know what to do with it either. With a declining user base the value of the service as an advertising platform is shrinking fast. The only thing that surprises me, really, is that Verizon hasn’t spun it off into an independent company again or sold it at a loss just to get out from under it.

I think the biggest mistake that was made was they tried to monetize Tumblr at the expense of the people who created the content that kept it going. It was the bloggers, the people who wrote the material, posted the pictures, created the artwork, that made Tumblr popular and who attracted new users to the service. And almost everything Yahoo did to “improve” the service seemed to destroy the atmosphere that had attracted the bloggers to begin with. About all that’s left over there now are “blogs” that are really nothing but thinly veiled advertising sites, the bots, and people who endlessly reblog content created by others.

I knew that Yahoo was not going to deal gently with Tumblr. It’s track record with other acquisitions, some of the things it’s CEO and others at the company said when they thought no one was listening, the pressures Yahoo was facing from investors as it continued to fail at pretty much everything it tried to do, everything was indicating that the future was not bright for Tumblr. The only thing that’s really surprised me is that it’s taken this long for it to get this bad over there.

This morning I was scrolling through my dash, and I realized that of all the blogs I followed over there, only about three are left, and they don’t post very often any longer. I was looking at endless re-blogs of other people’s material, photos I don’t care about, and realized this was pointless. I haven’t posted over there in ages. Why am I bothering?

So I pulled the plug, deleted my account, removed the shortcuts, killed the links. That’s it. I’m not going to put up with it any more.

 

Farm Catch Up

I haven’t done one of these in a while, so let’s take a look at what’s been happening in the farming world.

Dicamba Herbicide Fight Continues: The fighting over the new Dicamba blends of herbicides continues. BASF and Monsanto continue to argue that their newly approved blends of herbicides containing dicamba are completely safe and aren’t a problem at all, while the farmers who have had thousands of acres of soybeans ruined by the herbicide after it drifted long distances, argue that it isn’t safe for use.

Arkansas is pushing for a ban on all dicamba use except for those uses that were permitted before the new blends came on the market. The ban would last until October, 2018, and would halt the sale and use of both Monsanto and BASF’s new dicamba based products, and probably halt the sale of Monsanto’s dicamba resistant soybeans as well because if the herbicide can’t be used, there’s no point in paying a premium for Monsanto’s new beans, either.

Monsanto is, of course, not happy about any of this since they stand to lose millions of dollars in sales of both their herbicide and seed. The company is blaming anyone and anything for the problems that have been going on, claiming that there is no “scientific” basis for the ban, that “scientists” have discovered that even if their product does drift outside of the application area, it doesn’t really hurt anything anyway, that some of the experts testifying in favor of the ban are prejudiced against the company, blaming the people who apply the herbicide, blaming the equipment used.

It isn’t just Arkansas that’s having problems. In Missouri it’s estimated that up to 22% of the soybeans planted in the Bootheel area were damaged by dicamba drift, along with acres upon acres of tomato, watermelons, vineyards, pumpkins, organic vegetables and even trees, shrubs and people’s home gardens. The product isn’t just moving a few yards, in some cases there are indications the herbicide is drifting for miles according to the Missouri Extension weed specialist Kevin Bradley.

Farmland Partners Makes Major Buy: Farmland Partners is an investment company that buys up farmland for no reason other than to rent it to actual farmers. The company now has about 160,000 acres of farmland. They just bought over 5,000 acres of nut orchards for $110 million from Olam, a Singapore based company that ventured into the nut business.

My feelings about this kind of thing? I find it extremely concerning. Companies like this are, well, to put it bluntly, parasites. They insert themselves into the process, competing against actual farmers for a scarce resource, farmland. They artificially inflate demand for that resource, driving prices up. They rent the land back to the farmers at ever increasing prices because the shareholders demand ever increasing profits, and at the same time the company itself provides absolutely no value at all to the whole process. It exists only to skim off profits from the whole system while contributing nothing itself, while at the same time destabilizing the whole system and actually degrading its health through it’s manipulation of the market.

Seed Terminator: Combines are great at two things; harvesting wheat, corn, soybeans, Screen Shot 2017-09-26 at 5.53.30 AMetc., and spreading weed seeds all over your fields. The problem is that a lot of weeds are coming ripe at around the same time as your crop. So when you combine your crop, you’re also combining the weeds and blowing the weed seeds out the back of the combine and scattering them all over the field. A lot of people have worked for a very long time on this problem, with various attempts at a solution.

This one which is now going into production it seems, adds a screening system and high speed flails that pulverizes the weed seeds before they get blown back onto the field. If you click the link up there you’ll jump to the article about it. Apparently it works pretty good, and I’m always in favor of anything that helps farmers reduce the need for herbicides.

The problem is that this puppy costs about $70,000. Even when we’re talking about combines that cost a quarter of a million dollars or more, that is a pretty significant amount of money. Is it worth it? No idea.

Pork Cheap, Beef getting more Expensive: Beef prices at the consumer level haven’t been all that good for some time now. Pork is almost ridiculously cheap right now. Pork futures have fallen like a stone since July, dropping some 30%. Pork bellies, where we get bacon from, dove straight into the dumper, falling 60%. Although I note that hasn’t helped the price of bacon in the store. That keeps going up and up, it seems.

Beef on the other hand… Sheesh. Prices on some cuts have moderated a bit, but not by much, and they’re claiming prices are going to go up significantly over the upcoming months. We generally buy a lot of beef from MrsGF’s brother and sister, but because of logistics issues they aren’t going to have any ready to go for probably a year now. So MrsGF and I are looking into seeing if we have enough freezer space to get a quarter or half of beef from the local butcher because we can get that dressed, cut, wrapped and frozen, for $3.90 a pound which is less than what hamburger is going for in the grocery stores around here.

Syngenta Lawsuit Settled: Syngenta, a seed company, was sued a while back over one variety of it’s corn. The corn, a GM variety, was heavily marketed by the company and a  lot of farmers planted it. Only to find that when it came time to actually sell their corn to China, the country rejected it because Syngenta allegedly hadn’t told told the farmers that China had not approved that type of corn for import. In addition, it was alleged that the company deliberately misled farmers by claiming the corn variety had been approved by China when it had not.

Farmers, grain shipping companies, etc. lost millions of dollars on the deal and sued. Syngenta claimed they had told them that China hadn’t approved it. Lots of lawyers paid for their kids’ college education out of this one, raking in millions in legal fees, and the final result is Syngenta and the plaintiffs are apparently now going to settle out of court. I haven’t heard yet what the settlement will be, but you can expect that the company is going to have to pay a huge amount of money to make this one go away.

Addendum: Just ran cross another story that had more details. Syngenta is apparently going to cough up $1.4 billion to make this lawsuit go away. The company already lost a $218 million jury trial to a group of Kansas farmers about three months ago. There are still lawsuits pending in Canada against the company that will not fall under this agreement and will be thrashed out in the Canadian courts.

Agrimoney.com | Butter price surge may ‘prompt fundamental market change’ – Arla

Screen Shot 2017-08-29 at 6.25.36 AMArla boss Peder Tuborgh sees a shake-up, if the rally continues which has, for the first time, made dairy fats more expensive than protein Source: Agrimoney.com | Butter price surge may ‘prompt fundamental market change’ – Arla

I haven’t been talking much about farming lately because not much has really been going on over the last month or so. But butter — good grief. The butter market has gone goofy.

Wholesale butter prices are flirting with record prices in some markets, even surpassing record levels in some areas. Retail prices have been creeping up. Demand for butter has been just about the only thing that’s been keeping farmgate fluid milk prices at a reasonably decent level over the last few months. Around here prices for generic butter is pushing close to $4/lb. while prices for the “premium” brands is in the $4.50 range, with some of the premium brands pushing $5/lb. retail prices. The exception is KwikTrip, which is selling their house brand for $2.99 in their convenience stores around here.

I’m always fascinated by how the public’s attitude towards butter and dairy fat in general has changed over the last few years. Thanks mostly to the marketing claims made by margarine manufacturers, and with little or no actual scientific studies backing those claims, butter and dairy fat was being blamed for everything from obesity, to heart disease, to stroke, to I don’t know what all else, while margarine was being pushed as a “healthy” alternative, when the opposite was true.

I always hated margarine. I hated it’s texture and flavor, I hated how it melted or didn’t melt, hated how it worked when used in cooking. But then I’m weird that way. I have one of those hypersensitive senses of smell and taste, especially smell. I’ve a bit of a reputation as being a picky eater, but I’m really not. The problem is that I smell and taste things most people seem to be unaware of.

But let’s get back to butter…

The item up there from AgriMoney reminded me of the Great Butter War going on here in Wisconsin right now. The picture of Kerry Gold butter up there isn’t just some random butter image, it’s appropriate because at the moment Kerry Gold is banned from sale in Wisconsin along with a lot of other brands of butter.

Before butter can be sold in the state, it has to be graded on taste, texture and color through some state accepted system, by state accepted inspectors. This means that if a butter maker can’t or won’t spend the time and money to put their product through the state’s inspection system because of cost or whatever reason, it can’t be sold in the state, even though it meets all other accepted federal standards.

Consumers didn’t know about this until one day Kerry Gold butter abruptly vanished from the shelves of the grocery stores here in the state not too long ago. It isn’t that the law was just passed, it’s been on the books since the 1950s. It seems that a lot of grocers just didn’t know about the law until fairly recently.

Wisconsin has a long history of laws about butter. It is still illegal for restaurants to substitute margarine for butter without the customer specifically requesting it. It is illegal to serve margarine in state prisons, schools and hospitals except for health reasons. And until the late 1950s it was illegal to sell margarine in the state that had been dyed yellow. Margarine is actually a rather sickly looking whitish color and is dyed yellow to make it look appealing. Margarine makers used to include a yellow dye packet with the margarine sold in Wisconsin so the consumer could dye it themselves.

I should point out that Wisconsin’s butter grading law has nothing to do with food safety. The grading system the state insists on is made up of largely arbitrary standards for taste, texture, smell and appearance. Kerry Gold and the other butters banned from sale in the state meet all USDA and other federal standards for quality. They just haven’t been subjected to these arbitrary tests.

Well, the whole thing is going through the legal system now, and I suspect that sooner or later the Wisconsin requirements will be overturned. But until then you’ll have to order your Kerry Gold online or hop across the border to Illinois or Minnesota to get your fix.