The reason for the California FMMO petition is to adjust the price of milk that goes to cheese. The state system uses two calculations for pricing nonfat solids and fat that result in different pricing for cheese use.In February, USDA received a formal hearing request from California Dairies Inc., Land O' Lakes Inc. and Dairy Farmers of America Inc. to establish a Federal Milk Marketing Order (FMMO) for the state of California. The groups' effort is organized as the California Dairy Campaign.Traditionally, California has operated outside of the FMMO and instead administered its own order, which has required a higher protein level for beverage (Class I) milk among other things. Part of that program includes a quota system that has been in pl...
What You Need to Know Today: A third U.S. border crossing (Columbus, New Mexico) has reopened to Mexican cattle imports following nearly two years of restrictions related to New World screwworm. The reopening could gradually improve feeder cattle availability, although more than 60 confi...
Yesterday, the USDA’s Agricultural Marketing Service (AMS) released a new report of negotiated cash purchases of cattle under the mandatory price report. The report included Colorado, New Mexico, Oklahoma, Texas, and Kansas. The goal of the report was to solve the confidentiality issues e...
Beef packer margins plunged $105/head last week to $36/head as higher cattle prices combined with declining wholesale beef values to sharply compress packer profits. Fed cattle prices rose nearly $3/cwt to $227/cwt while the Choice cutout fell $4.75/cwt to $368/cwt. Margins have deteriorated $1...
From WPI Consulting
Weighing in on strategic realignment
WPI’s team was retained by the governing board of a U.S. industry organization to review a decision, reached by vote, to invest significant assets into the development and management of an export trading company. WPI’s team conducted a formal review of this decision and concluded that the current level of market saturation would limit the benefits of the investment. Based on WPI’s analysis and recommended actions, the board subsequently reversed its decision and undertook a strategic planning effort to identify more impactful investments. On behalf of numerous clients, WPI has not only assisted in identifying strategic paths but also advised their implementation.