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Buckeye Dairy News : Volume 1 Issue 11
Milk Price Outlook
The announced Basic Formula Price (BFP) for the month is $16.04 per cwt. for milk testing 3.5 percent butterfat. This price is up $0.94 over the last month price and $3.21 higher than a year earlier. The current butterfat differential for is 27.3 cents. A year earlier the butterfat differential was 15.3 cents. Keep in mind that the BFP is equal to the base month M-W price of $15.18 plus a butter/powder/cheese price adjustment from August to September of $0.86. This adjustment is primarily a result of a strong cheese price increase from August to September.
The important news from the latest numbers is that milk production, milkfat and protein levels are up in most areas of the nation. Milk cow numbers continue strong. In the 20 reporting states there are only 3,000 fewer cows than one year earlier. Back in January there where 57,000 less milk cows than one year earlier. Record milk prices over the coming months, low feed costs and low cull cow prices will continue to contribute to seasonal increases in milk production.
The November 17th BFP contract on the CME closed at $16.73 and the December BFP contract closed at $16.55. In the product markets, block cheese prices were steady at $1.8625 and the AA butter price was down at $1.75. Grade A nonfat dry milk was unchanged at $116.50. The good news is that strong cheese prices for November provide an indication that the November BFP to be announced December 4th will be another record milk price.
15 Measures of Competitiveness
You see mission statements everywhere these days. Is it just the current "thing" to do or is it an important tool for your business. Of course, I'm going to say it is an important tool! But why It is critical for the long-term success of your business that your management team agrees about why they are in business. Sounds simple, but lack of common goals has caused the breakup of more than one family business. In some of the worst cases, it has also irreparably damaged family relationships as well.
A well thought out mission statement will give the business focus:
- for setting goals
- for making decisions
- for resolving conflicts
- for revisiting and revising the mission statement over time
How do you get started?Sounds simple, but the first step is to commit to doing it! Then decide whom to involve in the process It might be the owners, husband and wife, brothers and spouses, parent, child and spouses or it might be the whole management team and employees.Ask questions:
- Why are we in this business?
- What are we trying to achieve?
- What values are important to us?
- How do we want this business to impact our employees, families, customers and the industry?
- How would we like the business to look in 7-10 years?
Mission statement quick start:
- List 6 things that are important to you
- List 6 reasons why you farm
- Rank them most to least important
- Have each person involved do this
- Use as a basis for developing your mission statement
Ohio's Dairy Industry is Turning it Around
Out of forty producers who attended a mini conference on the future of the dairy industry in Ohio, forty stood-up to show their commitment to establishing a new association of progressive dairy producers in Ohio.
The problem of a declining dairy industry is not new to Ohio. To address the issue, the industry, under the leadership of Ohio Senator Grace Drake, formed the Ohio Dairy Strategic Planning Task Force in December 1993. An extensive report, Ohio Dairy Industry Strategic Plan was issued in June 1995. One of the recommendations was To form an Ohio Professional Dairy Producers organization. Ohio State University Extension, in partnership with Monsanto, organized a mini conference where forty dairy producers were asked to reflect on the status of their industry. Late that evening, Dr. Bernie Erven, a well known OSU Agricultural Economist addressed the crowd and asked Those of you willing to commit and support a professional dairy producers association, please stand up Not one person remained seated.
An interim Board was elected and consists of: Dale Arbaugh (Jewett), Debbie Ayars (Perrysville), Doug Billman (Burbank), John Douglass (Marshallville), Michael Fullenkamp, (Fort Recovery), Ron Hatfield (Centerburg), John Mast (Millersburg), Ed Pfeifer (Bucyrus), Robin Steiner (Creston), and Randy Winner (Yorkshire). John Douglass was elected interim President of the Progressive Dairy Producers of Ohio (PDPO).We want this association to set the agenda for the dairy industry in Ohio, as opposed to being told what the agenda is said Douglass.We are currently defining the issues that affect all class of dairy producers in the state. We want to form an extensive network of producers to determine research needs, education opportunities, and share our management experiences. We want to insure a next generation of dairymen in Ohio he added.