S O U N D   O F F


May 27, 2008

Subject: Dairy Commodity Markets and Industry NewsTotal - Provided by Chuck Tucker of Tucker Dairy

"I thought only the U.S. was selling it's company interests to foreign investors, now it looks as if New Zealand is doing the same. Who will end up controlling the world food supplies?" Chuck

DFA Today News
New Zealand regulators have approved the acquisition of New Zealand Dairies Ltd. by Russia’s NutritekOverseas.
The deal is the first time a foreign company has been allowed to wholly own a New Zealand dairy company. New Zealand regulations require that foreign owners create jobs for natives, increase exports and introduce new technology or business skills.

The Russian company reportedly plans to use much of the milk powder produced at the New Zealand plant in joint ventures in China. Last year, four New Zealand Dairies directors resigned in protest of Nutritek’sinfluence.TodayPreviousTradesBlocks$2.1775$2.2075(3.00)¢4Barrels$2.1600$2.2000(4.00)¢2Butter $1.5000$1.5125(1.25)¢9TodayPrevious3-Yr AvgJun-08$20.15$20.114¢$14.07Jul-08$20.55$20.505¢$15.13Aug-08$20.78$20.753¢$15.55Sep-08$20.95$20.8411¢$14.83Oct-08$20.58$20.499¢$15.55Nov-08$20.45$20.369¢$15.12Jun08 - May09$20.00$19.954¢Prices for all Class III futures are available by calling 877-424-3343.ChangeCME Daily Cash PricesClass III Futures Prices & Next 12-Month AverageChangeAccording to USDA’s Dairy Productsreport, total cheese production for April 2008 was estimated at 814.7 million pounds, up 12.2 million pounds (+1.5 percent) from last year.Inside the total cheese category, production of American styles of cheese were reported at 337 million pounds, up 3.4 percent from 2007. This is the third consecutive month that American cheese production has increased compared to the prior year, after declining nine of the 10 prior months.Production of Italian cheeses was reported at 345 million pounds, down 0.07 percent from the prior year.Monthly U.S. Total Cheese Production 650,000700,000750,000800,000850,000900,000 JanFebMarAprMayJunJulAugSepOctNovDec1,000 Pounds20072008

This is a publication from DFA’s Marketing Team. For more information, contact us by fax at 816-801-6594 or by e-mail at marketingteam@dfamilk.com.