Hoard's Dairyman, a purse, and me

We recently received this letter from one of our readers. Apparently, it is more than our just-under-125-year history that makes us a long-lasting magazine. Photos are shown below.

I got in a car wreck on Saturday, June 20, at 9:45 p.m., and my car went up in flames (I only got a few bruises). I swerved to miss a man walking on my side of the road in the middle of my lane, and I collided with an F250. Once all was said and done, we found a past issue of your magazine in the car. This Hoard's Dairyman, my purse, and me were the only things to survive. We just found it too funny not to share this photo with you and the others at the magazine. This is one well-made paper. - T.L.

Active discussion on Holstein USA’s Dairy Price Stabilization Program

Responding to growing member concerns, Holstein USA has been becoming increasingly more active in milk marketing. Not only have they established a milk marketing committee, but that committee has developed a producer-led plan to stabilize milk prices. In recent months, the Association has been meeting with milk co-op leaders, national dairy industry leaders, and others who might help implement the plan.

Bob Cropp , the University of Wisconsin-Madison dairy economist who help develop the program after significant Holstein member input, was on hand June 29 at the National Holstein Convention in Sacramento, Calif., to detail the plan being proposed by Holstein USA to stabilize milk prices.

As he led the discussion, Cropp quickly pointed out that, “this is as depressed a dairy economy I have seen in my 42 years in the dairy industry,” he said. “At the heart of the issue is low pay prices for milk combined with high feed costs,” he said. Regionally, feed costs are running higher than average in many western states such as California, Idaho, and West Texas just to name a few, Cropp pointed out.

There are a number of reasons producer pay prices are down. Certainly the weakening world economy tops the list. Perhaps next on the list is the fact exports are dropping. In 2008, the U.S. exported 10.8 percent of our milk product. Exports are off significantly from that number due not only to reduced demand, but the fact major exporting countries like New Zealand and Australia are producing more milk, the European Union is subsidizing exports at a higher level, and the strengthening U.S. dollar is making our products more expensive to importing countries. All these factors may combine to drop exports 35 to 57 percent this year.

TB confirmed at Texas dairy

Bovine tuberculosis was confirmed in a 2,600-cow dairy in west Texas last week, according to state and federal animal health officials. Neither the dairy nor its location were revealed.

Preliminary identification of TB was made in April when a few cows from the dairy tested positive during screening tests done prior to sale of the herd. The sale was canceled, and the herd was immediately put under quarantine. Final TB confirmation was made June 14 by the National Veterinary Services Laboratory in Ames, Iowa.

Disposition of the herd, either by slaughtering all animals on the premises or by continued quarantine and a lengthy test-and-cull process, has not yet been determined.

Texas was certified TB-free by the U.S. Department of Agriculture in September 2006 after all 818 dairies in the state were TB-tested. That status is now in jeopardy and would be revoked if a second infected herd is detected in the state within 48 months.

California and Minnesota are currently the only states not cattle TB-free, and parts of New Mexico and Michigan have specified zones that are not TB-free. A confirmed TB infection was made in a beef herd in Nebraska in early June.

Hoard Farm switches to 3x milking

Hello, my name is Cassandra Dutcher; I am the other intern here at the Hoard’s Dairyman Farm. I grew up on a dairy near Humboldt, Neb., where we are currently milking 50 cows of all breeds. I am a sophomore at Kansas State University, majoring in Production Management in the Animal Science and Industry Department. The primary goal of my internship is to learn the management skills needed to run a larger dairy.
During my first week at the Hoard's Dairyman Farm, they started milking three times a day. Morning milking begins at 4, the second milking at noon, and the third milking at 7:30. Hospital cows and later-lactation cows are only milked during the first and second milkings. So far, they have seen positive results. I have helped with the morning milking, scraping, treating the hospital cows, and bedding the dry cow pen with new straw. I also help feed the heifers and baby calves in the morning and evening. Later on in July, I will be doing a research project on heat stress.

Support the Challenge

The National Dairy Challenge was started in 2000 as practical on-farm learning experience for dairy science college seniors. It was so successful in 2000 and 2001 that it went national in 2002. We think it’s a great, practical way for dairy students to gain on-farm problem-solving experience. Haven’t heard of it before? Watch the video below to learn more. To find out even more or to support the event, visit their website.

Speak loud and clear... our opponents do!

Every producer has a position. You might be opposed to BST use; you might buy BST in bulk. Perhaps you have an organic operation. Maybe you even have a cloned cow or calf on your farm. All of these issues are at the heart of today’s consumer. If you’re walking down the grocery aisle with no prior knowledge of dairy or production practices, would you buy the gallon of milk marked ‘BST-free,’ or would you buy the package without the claim? Consumers make decisions like this every day whether they’re informed or not.

Whose voice enters a consumer’s head when they look at a product?

Surely you’ve seen or heard about the commercials, movies, and other campaigns attacking the way the dairy industry and other agricultural industries operate. Consumers see and hear these negative campaigns, too, and it directly impacts the decisions they make in the store. We, as food producers, must be a voice to be reckoned with when it comes to broadcasting these issues.

Spiral science is a term for the uninformed public hearing and seeing only one side of an issue (usually very vocal and extreme), thinking that everyone else is on that side since it’s the only voice being heard, and changing their view to that of the extreme. The recently blogged-about movie, Food Inc., is an example. The movie will debut, and consumers will watch as claims are made and the agricultural industry and its system will be questioned, but who will talk back? Who will speak truth and reason on behalf of our industry? Make your voice heard— it makes a difference.

Bill Walters endows $189,000 in scholarships

For four decades the late Bill Walters covered the dairy industry in northeast Wisconsin as a radio personality for WCUB radio based in Manitowoc. At the station, he served as chief announcer, program director, and later as farm director until his retirement in 1992. The man known to his radio audience as Bill Walters was first known to his family as Bill Zummach. In either case, Bill was a big man with a soft heart.

While he covered every area of news during his 40-year career at WCUB, Bill’s passion was interviewing the area’s dairy farm families who were the backbone of the industry, as Bill would tell his listeners as he relayed industry matters in a fashion that all listeners could understand. Bill firmly believed these farm families instilled the best life values into young people. And in Bill’s mind there was no better place to raise children. With that in mind, Bill left a major gift from his estate to the Manitowoc Milk Producers Cooperative and to their families, in particular their sons and daughters, to further their education. It was Bill’s hope that they, too, would return to the family farm or take up a career in the industry and continue to build strong families and businesses in the area.

The man with a commanding radio voice used action instead of his distinctive voice to put his thoughts into motion with the kindest of gifts when he left a $189,000 contribution to the Manitowoc Milk Producers Cooperative of Manitowoc, Wis. That money is available to children from the cooperative’s 2,890 farm families. In order to fully utilize Bill’s generous donation, the Manitowoc Milk Producers Cooperative entered into partnership with another well-known dairy organization — the National Dairy Shrine. The 60-year-old National Dairy Shrine which awards over $30,000 annually to dairy youth will manage the Bill Walters Scholarship for the Manitowoc Milk Producers Cooperative. Through sound investments, the organization hopes to grow the fund so dairy youth may receive the Walters Scholarship for many generations.

This year, the first six Walter scholars each received a $1,500 award. Those winners include: Stephanie Geiger, Brillion, Wis., Curtis Horsens, Gillett, Wis., Adam Kolb, Kiel, Wis., Ramamda Maves, Amherst, Wis., Tony Meyer, Colby, Wis., and Stephanie Nagel, Valders, Wis.

Milk production staying strong

Despite the long stretch of low milk prices and feed costs that are climbing again, milk production and cow numbers have not changed as much over the past six months as many would have expected. An old, hard-hearted saying is that “low milk prices are the cure for low milk prices.” This means that, when things get tough on dairy farms, more people quit milking or, at least, cull more heavily or feed less, reducing milk per cow. That has not been happening during the current downturn . . . so far.

May milk production actually was up 0.2 percent over a year ago in the top 23 milk states. Milk production in both April and March were up 0.1 over a year ago.
Milk per cow was up 0.5 percent during May in the top 23 states which was enough to offset a 0.3 percent (25,000 head) drop in cows compared to last May. There were 10,000 fewer cows in those states in May than there were in April.

Nationally, there were 11,000 fewer cows in May than April and 43,000 fewer cows than last May. Most of the CWT cows in the current herd retirement round will go out in June.
Of the top five dairy states, all were down in milk production except Wisconsin which was up 1.9 percent from last year. California was down 1.9 percent; New York, -0.8; Idaho, -1.4; and Pennsylvania, -0.8.

Big gainers were Kansas (+6.8 percent milk) with 4.3 percent (5,000) more cows and Texas (+6.3) with 18,000 or 4.4 percent more cows. Arizona was down 6.2 percent in milk, mostly because of a 5 percent drop in milk per cow compared to last year.

New dry cow barn makes cows more comfortable

As the Hoard's Dairyman Farm continues to modernize, old facilities are being transformed to fit the needs of an expanding herd. The Hoard's Dairyman Farm is currently renovating the heifer barn and transforming it to dry cow housing. This new site allows for more ventilation and cooler temperatures due to greater air circulation and more overall space.

The facility has several new features. Along with having bigger and more open doorways, the dry cow barn is equipped with four 52-inch hanging fans to allow for maximum air flow. A feed lane was added under the north side roof of the barn, preventing spoilage from rain and making it easier to track feed intakes. Two separate calving pens were added, along with a pair of headlocks and a loading dock for easier cow transport. A warm/utility room (8 x 10 feet) was built to provide cows with warm water and for equipment and colostrum storage. Another new feature the barn has is the addition of red lights which will help workers check the cows without disrupting the animals' photoperiod.

Jason Yurs, the Hoard's Farm herd manager says this new facility will help with the farm's overall dry cow health. "This barn allows us to use pre-existing materials and is better suited for housing our current dry cows and for our cows during future farm expansion."

The heifers that used to be housed in this building were recently moved to the heifer facility in Elkhorn. When calves reach 4 months of age, they are moved down to this site until two months before calving.

Renovations are hoped to be completed by this summer.

Young Producers gather at Hoard's Dairyman Farm

Producers from around the state of Wisconsin, northern Illinois, and southeastern Minnesota gathered at our very own Hoard’s Dairyman Farm this past Saturday, June 13, for the Accelerated Genetics Young Producer Summer Meltdown event.

At this family-oriented outing, farm tours were given throughout the late morning with opportunities for attendees to ask questions of the farm staff about the herd and facilities. A catered lunch was served, followed by a brief program and introductions of all attendees. Producers then visited the National Dairy Shrine Visitor’s Center and Hoard Historical Museum before the event concluded.

Accelerated Genetics’ Young Producer Program aims to develop future leaders for their cooperative in a fun and friendly environment while also developing the leadership and communications skills of their members. The group is lead by a board of producers who help organize their four annual events. Other events include a Young Producer Summit to be held in early December, a Winter Get-Away in January, as well as their annual leadership conference held each year in March.

2008's high feed costs eroded any profit in California

Near record mailbox prices for milk were not enough to prevent many California dairyman from losing money last year. Keep in mind these losses occurred prior to the current downward trend in milk prices.

In recently tabulated financial data by the accounting firm Moore, Stephens, Wurth, Frazer, and Torbet, they reported that dairy farms in Southern California were hit the hardest with feed costs rising $467 over the previous year to reach a total of $2,178 per head. That resulted in a net loss of $333 per head or $1.64 for every 100 pounds of milk (cwt.)

Feed costs ran equally as strong in Kern County at $2,114 per head, up $550 compared to 2007. However, financial losses were not near as bad, reaching $45 per head or 20 cents per cwt.

In the San Joaquin Valley, the heart of California's dairy industry, feed costs were only up $350 compared to the previous year's $1,700. However, the losses were higher than those in Kern County, reaching $152 per head or 65 cents per cwt.

Feed costs were up between $231 and $367 in other states where the accounting firm does business. However, dairies in Arizona, Idaho, New Mexico, and the Texas Panhandle had profits ranging from Arizona's $86 to Idaho's $351 per head.

Company makes its 5,000th robotic milker

Rotaries, parallels, and herringbones are the milking parlors of choice for dairies in the U.S., but in much of the rest of the world the story is much different.

Smaller herds, plus labor situations sometimes even more challenging than what U.S. dairies face, are increasingly making robotic systems the preferred pick for milk producers abroad.

This trend in automated milking reached a big milestone in April when DeLaval – just one of many robot equipment manufacturers around the world – announced production of its 5,000th robotic milking unit which was sold to a 33-year-old farmer in Germany.

Since their introduction in the 1990s, robotic systems have evolved almost exponentially in terms of features and sophistication. Comparing their evolution to cellular phones is a good analogy.

Modern robotic systems typically surpass human-operated parlors in terms of data collection and milk quality analysis. In addition to automatic identification and milk weight recording, robots act as challenge feeding stations for every cow in the herd. Both the amount of grain fed and number of milkings per day can be set for each individual cow. Some units measure both milk flow and somatic cell count on a quarter-by-quarter basis, and some even record body weights as cows stand in the stall.

Milking clusters are automatically rinsed between each cow, and a full washup sequence is performed at pre-set intervals. In case of equipment failure, units have a built-in paging feature to the owner or manager.

Integrated herd management programs generate a myriad of “look at these cows” lists and other reports identifying animals that suddenly drop in production, spike in SCC, or do not visit the robot their allowed times per day.

Don’t forget to communicate

With prices as low as they are in the dairy industry today, and no miracle on the futures horizon, it’s important to keep everyone in the loop on your farm. “Communication should not stop at the barn door,” says Julia Nolan Woodruff, Extension educator with The Ohio State University. Woodruff explains in a recent Dairy Issue Brief that you should keep the lines of communications open with your lenders, nutritionist, veterinarian, and others. They might be able to offer suggestions in this difficult time. This can also help develop a strong relationship for future business.

Woodruff says that a lack of communication sends a clear message to your family and employees of a negative outlook for the future. Communication does take some effort and time. Calling a family or business meeting can be a way to convey what the current situation is. Finally, Woodruff explains that everyone communicates differently, so it is important to adjust your message to everyone’s communication styles.

Ag advocates start to sound off on Food, Inc.

In just two days, the highly publicized, praised, and criticized movie Food, Inc., will premier in select cities across America. The movie’s website claims that you will never look at dinner the same way again. The website also claims the movie will “lift the veil on our nation's food industry.” But, for most farmers, they won’t need a movie to show them how food is produced. The dairy industry has become a part of the image of the movie, as a Holstein cow with a bar code digitally imposed on her side is the front image on the movie’s website and much of its promotional materials.

From reading the website, the filmmakers suggest adopting a food system in which food is produced and sold locally — using practices like organic. They also call for increased legislation on food safety. Unfortunately, the film’s site also lists an alliance with HSUS, a known opponent to animal agriculture. Several websites (like this one, and this blog) have started to separate the facts from the myths in the Food, Inc., film. Do you think it will have an impact on what consumers demand in the dairy case? Or will producing cheap food, highly efficiently, forever be a trademark of American agriculture?

Online Surveys & Market Research

Bovine belching... and climate change?

According to The New York Times, your cows are part of one of the most serious problems the United Nations is facing today. With milk and beef production expected to double in the next 30 years, cows might end up adding more methane to the atmosphere than cars and trucks combined. Just one cow, in one year, can produce 200 to 400 pounds of methane, a potent greenhouse gas with extremely high global warming potential. The majority of a cow’s methane excretion is through belching.

While Dairy Management, Inc., reports that the dairy industry accounts for only 2 percent of the United States emissions of heat-trapping gas, it’s the threat of consumer viewpoint that is driving our industry to reduce its emissions. Dairy Management’s Erin Fitzgerald told The New York Times that the dairy industry wants to avoid consumers equating dairies with coal plants. Thus, the ‘Cow of the Future’ program started in an effort to reduce dairy industry emissions 25 percent by 2020.

Stonyfield Farm, the popular yogurt manufacturer, has already implemented a program at the Vermont farms which provide the company with organic milk. Since January, 15 farms throughout Vermont have adjusted their ration from corn and soy-based grains to plants such as alfalfa and flaxseed. The plant feeds are high in Omega-3 fatty acids which help the digestive tract operate smoothly, rather than corn and soy which have a different fatty acid structure.

Farms that have participated in the program have seen healthier, more robust animals with better functioning digestive tracts and a significant reduction in methane. One of the farmers in the program reduced methane emission by over 18 percent while still maintaining milk production.

The idea of using plant feeds was provided by Groupe Danone, the French manufacturers of Dannon yogurt and Evian bottled water, who are invested in Stonyfield Farm. France has seen even better results, reducing emissions by nearly 30 percent on both organic and large industrial farms.

Dairy's reliance on immigrants documented

About half of U.S. dairy farms, 47 percent, use immigrant labor in some way, according to a National Milk Producers Federation survey. Survey results project that U.S. dairy farms employ approximately 138,000 full-time equivalent employees and that 57,000 of them or 41 percent are foreign-born. Nearly all, 98 percent, are from Mexico.

Average herd size of the 1,344 farms returning usable surveys was 297 cows. They had an average of 5.6 employees . . . 4 full-time and 1.6 part-time. The research was conducted by Texas AgriLife Research, a part of the Texas A & M system, and was based on surveys from farms with 50 or more cows.

Hourly wages averaged right at $10 ($9.97). However, because of the hours worked, weekly pay averaged $506 which is more than other jobs filled by immigrant workers such as ranch, slaughter, landscape, cashier, crop, and fast food work. With nonwage benefits included , dairy farm employees had annual incomes of around $31,500.

The survey was conducted to assess the economic impact of immigration on U.S. dairy farms. The analysis projected what would happen if our industry lost 50 percent of its immigrant labor force through a change in immigration policy or through some other development. The U.S. dairy herd would drop by 671,000 cows, and there would be 2,622 fewer dairy operations. Retail milk prices would climb by 31 percent, and the total economic impact of the dairy industry, nationwide, would be reduced by $11.2 billion.

Organic dairy farms feeling pressure

Rock-bottom milk prices and high costs are hurting dairy farms of all types and sizes across the nation. The financial blow to organic dairy operations may be especially severe, according to a recent USDA analysis.

The May 19, 2009, Livestock, Dairy, & Poultry Outlook focused on the three states with the highest number of organic farms, according to Census Bureau figures . . . Wisconsin (433), New York (301), and Vermont (182). The report estimates that organic dairy farms have operating costs that are $5 to $7 per hundredweight higher than conventional farms. The March 2009 USDA monthly cost figures for conventional farms in Wisconsin, New York, and Vermont were $21.54, $26.55, and $24.94, respectively. In April, the average organic pay price in the Northeast was thought to average $27.43, according to the Northeast Organic Dairy Farmers Association.

Therefore, the New York and Vermont organic operations were losing about $4 and $5 per hundredweight, respectively. Wisconsin organic dairy farms were thought to be losing $3 per hundredweight. These numbers are based on USDA’s total cost of producing milk.

Softening demand for organic dairy products has compounded the problem. The contracts of 10 of Maine’s 65 organic dairies were not renewed this spring, according to the New York Times. Sales of reduced-fat organic milk in February were 15 percent lower than a year earlier, according to USDA data.

A Day at Hoard's Dairyman Farm

You might be familiar with Hoard's Dairyman magazine, but how much do you know about the actual farm? Not only does Hoard's Dairyman have people working hard to create an informative magazine, but there are also a lot of people working hard around the clock to care for the herd's 270 Guernsey cows in Fort Atkinson, Wis.

I'm Ashley Sprengeler and, as one of the 2009 Hoard's Dairyman farm interns this summer, I get the chance to learn from the managers and workers responsible for running a well-respected Wisconsin dairy herd. I'm currently a senior at the University of Wisconsin-Madison where I'm majoring in dairy science with an international agriculture and Spanish emphasis. Being just three weeks into my internship, I've already learned many things about the day-to-day farm activities.

Work begins at 3 a.m. where all the cows are milked in a double-10 herringbone milking parlor. After milking, the cows are brought back to their stalls where they are fed a balanced diet of corn, haylage, cotton seed, silage, and other nutrients. At 4 a.m. herd health starts, and all sick and fresh cows are looked over and given proper medications.

The work doesn't end there; throughout the day calves, heifers, and dry cows are fed, bedded, and checked over for any signs of sickness. The farm has a veterinarian come out every Monday for pregnancy checks and any other care the cattle might need.

With summer already here, I'm excited to be out in the Wisconsin weather and to learn more about the Hoard's Dairyman Farm.

The cost of being Wisconsin's largest dairy farm

Controversy aside, Rosendale Dairy is a sight to behold. With over 4,000 cows already under one roof, construction has begun on Phase II of the farm plan which would add another 4,000 cows and make Rosendale the single largest dairy operation in Wisconsin. An Elanco program held at the farm allowed us to get an inside look at the new dairy which has been under scrutiny of environmental activists over the last year.

After facing much opposition and being held to the government’s highest design standards, the trio of owners Jim Ostrom, John Vosters, and Todd Willer went above and beyond the law to build a sustainable, low-carbon footprint, large-scale farm. And large it is. The cross-ventilated barn, part of Phase I, is seemingly endless with row after row of cattle.

Maybe the most interesting part of the $70 million farm investment is the cutting-edge technology. An 80-cow DeLaval rotary milking parlor gives each cow a nonstop, seven-minute ride around the huge parlor room three times a day. Ostrom says by the end of the summer they will be using a robotic teat dipper for postdipping to minimize waste and reduce labor.

Other farm features include a drive-in commodity shed where two mixers are being filled at any given time and an on-site manure-processing facility where dried manure solids are produced and sold to local farmers.

Rosendale is expected to provide nearly 70 permanent local jobs and contribute over $40 million in purchases per year from local contractors and vendors. Omro Dairy, Omro, Wis., and Tidy View Dairy, Kaukauna, Wis., are also owned by the partnership.

Tail docking might be banned in California where most cows aren’t docked

Senator Dean Florez might be best known as the proud co-sponsor of Proposition 2 in California which bans the use of certain housing systems for veal and laying hens. He is also a well-known ally of the animal rights organization, HSUS. While Proposition 2 didn’t have a direct effect on the dairy industry, it was a foothold for what came next. This spring, he introduced a bill that would ban tail docking on dairy farms.

Tail docking isn’t common in California. A recent survey of 12 large animal veterinarians asked about tail docking practices of their dairy clients. A total of 294,339 cows were included in the study from the San Joaquin Valley and the Northern Sacramento Valley. The results of the study showed that 90.6 of the dairies do not dock tails and 88.7 percent of cows do not live in operations where it is practiced. In addition, several studies have shown no benefit to the practice.

Cassandra Tucker is an assistant professor at the University of California Davis. Tucker, before the vote, wrote in the California Dairy Newsletter, “If this bill passes, it would be part of a nationwide trend to set standards for how farm animals are cared for in the U.S.” The bill then did pass, by a vote of 27 to 12. What practices could be regulated next?

Good cattle still bringing good money

The dairy world, like most of the economy, is struggling with the ramifications of the sluggish economy. No one is quite sure what the true value is for a home, farm, or cattle. In many cases, it is a buyer's market. Cash is king. So scheduling a dispersal could make any dairy producer a bit uneasy not knowing what price their cattle would bring after years of hard work.

That was the situation for the two-family partnership Lynn and Sara Harbaugh and Willis and Carla Gunst as the sale date for their well-known Wilstar Holstein herd in Poy Sippi came closer to sale day on May 30. They did everything right. Cattle were sired by the right bulls. The pedigrees were deep. The advertising plan was strong, and the word was out in the countryside. And, most importantly, the cattle were looking superb leading up to the sale as breeders from across the U.S. and Canada traveled to the central Wisconsin farm.

As the sale unfolded, the hard work of these four Holstein breeders, ranging from 31 to their early 40s, was being rewarded as the sale tent overflowed with buyers. The top-selling cow, Wilstar-RS Tlt Limited-Red EX-92 (shown above) brought $52,000. Limited and her 187 other herdmates ended up averaging $5,221. Another 60 young calves and embryo packages added to the final totals, as well.

It goes to show that hard work is still rewarded and that young producers can get a solid start in our industry. But, in addition to the hard work, it takes a good business plan, committment, and many other sound business qualities.