HD Notebook

HD Notebook has a new home

2010-08-02T09:27:00.004-05:00

The Hoard's Dairyman website was recently redesigned, and the HD Notebook blog is now incorporated into the new site. Each weekday, a new entry appears on the Hoard's Dairyman homepage. If you missed a blog posting, don't worry–the new site has all 2010 posts.

So, starting today, bookmark www.hoards.com to get your daily dose of HD Notebook.

A starving grad student’s BLT shock

2010-07-30T07:55:00.000-05:00

Away at college, working on a master’s degree, many of my daughter’s calls and e-mails now include personal insights into the financial "joy" of being a grown-up.

“One day you’ll appreciate the starving grad student experience and how it made you tough,” I often say, trying not to laugh. She shared her newest revelation today; it was about meat prices of all things.

“So, what’s the deal with bacon?” she asked. “I’ve had an urge for BLTs lately, so I went to the market. It’s been a while, but most of the packages were double what I remember the last time! Has something happened in the pork industry to explain these prices?”

Ah, innocence.

“Yes honey, something has happened. Remember 2008-09? That’s right, that’s when corn prices went stupid. A lot of farmers went out of business and everyone else pretty much lost their rump. Less farmers means fewer little piggies are going to market these days. In fact, USDA announced in June that total U.S. meat inventories, other than poultry, were at their lowest levels in several years.

“On top of that, foreign demand for U.S. beef and pork is way up this year which is making the situation even worse. It all adds up to more demand than supply, and I think prices are going to stay high all year long.”

“Darn,” she answered. “I guess I’ll have to wait until I come home then.”

Isn’t a kid’s love for her parents beautiful – even if part of it is because of their bacon?

June milk production up sharply

2010-07-23T07:25:00.000-05:00

aking the nation as a whole, milk production was up 2.4 in June compared to a year earlier. In the top 23 states, milk output was up 2.7 percent. Milk production has been on the rise since February, but the size of June's jump was unexpected.

The growth is coming in higher milk production per cow. The average cow in the U.S. produced 3.7 percent more milk in June than a year ago. There were 108,000 (1.2 percent) fewer cows in the nation this June. But there were 40,000 more cows on U.S. dairy farms in June than there were in December. The U.S. dairy herd now has 9.122 million cows, the most since August 2009.

Industry observers are looking at several factors that could be contributing to the strength in per-cow milk production. The summer of 2009 was mild in the Upper Midwest, home to a lot of cows, and there could be some carryover effect. Also, many people cut back on vitamins, minerals, and other feed additives last year when they were losing money. They found out that the cows did not milk as well; nor were they as healthy or as easy to get bred so they put some of those ingredients back in the ration. Also, many problem cows were culled rather than doctored during the toughest times, and cull cow prices have been better recently. Those who started using sexed semen two or three years ago have more first-calf heifers freshening now so they can sell off more older cows. As a result, the U.S. dairy herd generally is more healthy and younger.

June milk production was up 3.5 percent in California. There was a 6.6 percent rise in milk per cow. Milk per cow jumped 4.7 percent in Wisconsin. With 5,000 more cows (+0.4 percent), Wisconsin milk output was up 5.1 percent in June. New York was up 0.2 percent. Idaho cow numbers were up 10,000 (1.8 percent), and milk production was up 3.5 percent. Michigan was a big gainer being up 4.7 percent with a big jump in milk per cow. Missouri experienced an 8 percent (9,000 head) drop in cow numbers and was down 5.4 percent in milk production.

Despite the milk production report last Monday, cheese prices on the Chicago Merc edged upward. On Tuesday, blocks added 2-1/4 cents a pound to move up to $1.60. Then blocks added another 1/4 cent yesterday.

Meanwhile, the average July through December Class III futures price went from $14.66 on Monday, before the announcement, to $14.63 on Tuesday to $14.64 yesterday. These are lower futures prices than any of us would like to see, but they did not react much to the June milk production report.

Wisconsin Secretary of Agriculture dies unexpectedly

2010-07-22T09:55:00.011-05:00

Wisconsin agriculture lost a dedicated leader and advocate on Wednesday, July 21, when Rod Nilsestuen, the state's ag secretary, passed away unexpectedly. Nilsestuen drowned in Lake Superior while in Marquette, Mich., during a vacation trip to volunteer with his church for Habitat for Humanity. Rod and his wife, Carol, lived in De Forest, Wis., where for the past 13 years they led interdenominational Habitat for Humanity teams and were active in a number of youth, church, and school programs.

During the past eight years as Wisconsin's Secretary of Ag, Nilsestuen was instrumental in working with other government leaders to have the Wisconsin legislature pass investment credits which led to major reinvestment in Wisconsin's dairy industry. The state's dairy farms are now producing the most milk in state history, and cheese plants are likewise producing the most cheese in recorded history.

Additionally, Nilsestuen was instrumental in working with and helping pass the Livestock Siting Legislation which gave the state's dairy farmers predictability when working with zoning officials and other government agencies. Long-term, his lasting legacy might be the unfolding story with the Working Lands Initiative which is protecting Wisconsin's best farmland for future generations.

Prior to joining state government, Nilsestuen was president and CEO of the former Wisconsin Federation of Cooperatives which is a statewide association for more than 700 rural and urban cooperatives. In 1985, he led the creation of the Wisconsin Development Council, a first of its kind entity dedicated to providing technical assistance for cooperative growth. This led to the formation of the Rural Cooperative Development Task Force, a nationwide advocacy effort which Rod served as founding chairman. In the end, the Task Force spearheaded the creation of the Cooperative Grants program at USDA, the first major new federal reinvestment in co-op development in over two decades.

Nilsestuen also was instrumental in the creation of the Wisconsin Milk Marketing Board and served as its initial general manager during its first six months of operation. He helped organize the Wisconsin Corn Promotion Board and the Wisconsin Soybean Marketing Board.

So simple, but not easy

2010-07-21T16:57:00.003-05:00

The job of the milker to keep teats clean and dry to prevent infection is a daily battle on every farm; yet the task is simple in thought. Today at the Hoard’s Dairyman Farm, a Hispanic milker training was held to relay that message in a way attendees could understand thoroughly. The event was organized by Vita Plus. Veterinarian Doug Braun of Pfizer shared with the group the basics of how and where milk is produced, the causes of mastitis, as well as proper procedures. Braun spoke in duo with a translator from Vi-Cor who relayed his entire message in Spanish.
Keeping teats clean was repeated over and over to the event’s attendees. “It is so simple, but it isn’t easy,” Braun said. Using a white rubbing alcohol swab at the bottom of teats, Braun explained how easily dirt can accumulate on teats and get into the udder. “Bacteria isn’t a runner, isn’t a walker, but it is a great swimmer,” he said regarding the ideal environment inside the udder for bacteria to grow and flourish once it has entered the teat. He also shared the importance of preparation to milking speed. “Just placing the milker on without prepping the teats can slow down milking by as much as 25 percent,” said Braun.

The highlight of the meeting for many was likely the dissection of two udders. Braun sliced teats lengthwise to illustrate the size and thickness of teats and the streak canal. He also demonstrated how dry cow tubes should be administered. One common misconception that Braun shared with the group was the depth at which dry cow tubes should be inserted. While most tubes come with a roughly 1.5-inch end, it is only necessary to insert the tip of the tube roughly .25 inche into the teat to dispense the treatment.After cutting the teat completely off, attendees could view just how many large blood vessels are directed towards the teat end. Then cutting into the udder tissue itself, we could see where milk-producing alveoli cells are found (see photo).

Canadian dairy producers set a world record

2010-07-20T09:11:00.001-05:00

Dairy Farmers of Canada, partnering with Canadian processors from across the country, announced it officially set a new world record. On July 8, 2010, they broke the Guinness World Record for the world’s largest smoothie at the Bust-a-Record Dairy Day celebration held in Toronto, Canada.

The 264-gallon smoothie was made from all Canadian ingredients. It consisted of 145.5 gallons of 100 percent Canadian milk, 660 pounds of frozen blueberries, 39 gallons of vanilla yogurt, and 9.2 gallons of honey. The mixture was blended in a 317-gallon stainless steel bolt tank by a team of leading Canadian dairy producers.

President of Dairy Farmers of Canada, Jacques Laforge, noted, “Setting a new Guinness World Record with the All-Canadian Blueberry Smoothie is a wonderful way to celebrate our Canadian dairy producers and the purity, high quality, and great taste of dairy products made from 100 percent Canadian milk.”

Booster Juice in London, Ontario, with a 179-gallon smoothie, held the previous record. The Dairy Farmers of Canada bested this by approximately 90 gallons.

For more information and the All-Canadian Blueberry Smoothie recipe, visit www.asourceofpride.ca.

Reading the latest CWT tea leaves

2010-07-19T07:55:00.000-05:00

Now that the dust is settling a week after results of the 10th and most recent Cooperatives Working Together (CWT) Herd Retirement were announced, let’s look at what they might say about dairy producers and the state of dairying.

Of 209 bids submitted, 194 were accepted. They accounted for 34,442 cows and 653.9 million pounds of milk production per year, which is equal to about one-third of the total output in Illinois.

One thing that sticks out is the relatively low participation rate. One hundred and ninety-four herds is the fewest in all but three previous retirement rounds. This may be due as much to the $3.75 per hundredweight maximum bid limit imposed, as to the return to modest profitability that most dairies are enjoying in 2010.

Along with the low participation rate were commensurately low removal totals for both cows and milk production. Only the CWT removals held in early 2008 and in 2003 were smaller.

Sifting through the tea leaves reveals that cows taken in the latest herd retirement were mediocre for milk production. In 2009, average production for all cows in the U.S. was 20,576 pounds. By comparison, average production for all cows accepted into CWT round 10 averaged just 18,986 pounds.

One possibility is that herds submitted were not highly efficient, or were unable to maintain production during the financial meltdown in 2009. They were, however, of roughly average size at 178 head. Average U.S. herd size in 2009 was 170.

Last direct Hoard relative to work for the company passes away

2010-07-16T09:06:00.015-05:00

For over 40 years, Mark "Bud" Kerschensteiner diligently worked for the company that his great grandfather, Governor William Dempster Hoard, founded in 1870. With his passing, an era comes to a close, as Kerschensteiner was the last direct relative to work for Hoard's Dairyman and the W.D. Hoard and Sons Company. Shown in the photo are: Mark "Bud" Kerschensteiner (right) with Verna and Jim Baird (retired Hoard's Dairyman art director) at the 2006 open house following National Dairy Shrine's latest renovation.

Kerschensteiner's career with W.D. Hoard and Sons Company began on December 1, 1945, after two years of service in the U.S. Marine Corps where he was deployed to the Pacific Theatre during World War II and was stationed in Guam and Okinawa. His employment with the company began with his service as advertising manager for the Jefferson County Union. In June 1953, Kerschensteiner became an advertising representative for Hoard's Dairyman and a decade later he was promoted to advertising manager. It was a position he held until his retirement in 1986 when Gary Vorpahl succeeded him in that role. At the time of Kerschensteiner's retirement, he also was senior vice-president and director of the American Agriculturalist, Inc., a Hoard company affiliate in Ithaca, N.Y. During his career, he led the application effort to have the historic Hoard's Dairyman Farm placed on the National Register of Historic Places by the United States Department of Interior.

Born in 1921, Kerschensteiner was the only child of Mark and Shirley Hoard Kerschensteiner and the lone grandchild of Frank and Luella Hoard, whose former home now houses the Hoard Historical Museum which is also home to National Dairy Shrine. He graduated from the University of Wisconsin-Madison College of Journalism. Kerschensteiner served as the Fort Atkinson chairman of the UW-Madison Capital Gifts Campaign and was a member of the Bascom Hill Society. Kerschensteiner was a die-hard Badger fan and a generous donor to many University of Wisconsin initiatives.

In his local community, Kerschensteiner was the prime mover in the formation of the Fort Atkinson Community Foundation, Inc., founded in 1973. The foundation which began with Kerschensteiner's vision and a $25,000 gift from the late Mary C. Hoard, has grown to current assets of $18.6 million. Kerschensteiner led the group as the first board president for eight years. At the time of its inception, the Fort Atkinson Community Foundation was only the fourth one of its kind in the state with Milwaukee, Racine, and Oshkosh, all considerably larger than Fort Atkinson, having already established foundations.

It finished with a poem

2010-07-15T15:00:00.008-05:00

Several hundred friends came out to pay their respects to the late Dr. David Dickson on July 14. Some great tributes and stories were told by those attending the event. At the conclusion of the memorial service, Dickson's sister, Linda Sorstokke, shared a poem that hung on his wall discussing those who judged dairy shows. It is believed that Dickson wrote it himself.

It goes like this . . .

The judge stood at the pearly gates
His head was bent and low
He meekly asked the man in white
The way that he should go.

St. Peter said, "What have you done on earth,
That you should come up here?
I was a judge of dairy cattle
For many and many a year

St. Peter opened wide the gates
And gently pressed the bell
Step inside and choose your harp
You've served your time in hell.

National Dairy Council helps build breakfast programs in U.S. schools

2010-07-13T10:23:00.000-05:00

Parents have always stressed the importance of eating a good breakfast each morning before heading off to school. Research shows that eating breakfast is one of the best ways to fuel both the body and mind. Students who eat breakfast also perform better in school.

General Mills Foodservice has committed $100,000 to helps schools with students in grades K-12 build their breakfast programs. This is being done in conjunction with the National Dairy Council’s Child Nutrition and Fitness Initiative Breakfast Grant program.

Eligible schools can apply to receive up to $3,000 in funding for their breakfast program. To qualify the school must have the support from the school’s principal, district school nutrition director and school nutrition manager, have school enrollment of at least 500 students and demonstrate an opportunity to raise their breakfast participation. Schools must also be enrolled in the National Dairy Council’s “Fuel up to Play 60” program for the 2010- 2011 school year.

If your local schools meet the criteria outlined above, encourage them to apply. The deadline for applications is August 15, 2010, with applicants being notified by August 31, 2010.

For more information and to access the grant application, visit www.fueluptoplay60.com.

Recent reports bumps up milk and corn price forecasts

2010-07-12T07:55:00.001-05:00

Forecast milk production for 2010 and 2011 is raised slightly from last month in USDA Supply and Demand Estimates released late last week. Cow numbers have remained higher than expected, and milk per cow is expected to increase more rapidly than previously forecast.

The Class III price forecast for 2010 is reduced on a lower cheese price forecast, but the Class IV price forecast is raised as the price forecast for butter is raised, more than offsetting a reduction in the NDM price. The 2011 Class III and Class IV price forecasts are raised. The All Milk Price is forecast to average $15.80 to $16.10 for 2010 and $15.90 to $16.90 for 2011.

Projected U.S. feed grain supplies for 2010/11 are lowered with reduced carryin and lower projected production. Beginning stocks for corn are projected 125 million bushels lower, reflecting higher use in 2009/10. With forecast harvested area down, corn production is lowered 125 million bushels, leaving supplies down 250 million bushels and 60 million below the 2009/10 record. The season-average farm price for corn is projected 15 cents higher on both ends of the range to $3.45 to $4.05 per bushel.

Global coarse grain supplies for 2010/11 are projected 14.9 million tons lower with nearly half of the decline driven by reductions in carryin and production in the United States. Global coarse grain production is lowered 10.8 million tons with barley, corn, and oats production lowered 6.9 million tons, 3.4 million tons, and 0.9 million tons, respectively. Partly offsetting, is a 0.6-million-ton increase in EU-27 mixed grain production. Outside the United States, the biggest reductions are for Russia, Canada, EU-27, and Kazakhstan.

Global coarse grain imports and exports are nearly unchanged for 2010/11. Corn imports are lowered for Mexico with exports increased for Ukraine, partly offsetting the U.S. export reduction.

U.S. oilseed production for 2010/11 is projected at 100.8 million tons, up 1.7 million tons from last month, with increased soybean production accounting for most of the change. Soybean production is projected at 3.345 billion bushels, up 35 million due to increased harvested area. Harvested area is estimated at a record 78 million acres in the June 30 Acreage report, 0.9 million above the June projection. The soybean yield is projected at 42.9 bushels per acre, unchanged from last month.

The U.S. season-average soybean price for 2010/11 is projected at $8.10 to $9.60 per bushel, up 10 cents on both ends of the range. Soybean meal prices are projected at $240 to $280 per short ton, up 10 dollars on both ends. Soybean oil prices are projected at 34 to 38 cents per pound, unchanged from last month.

Global oilseed production for 2010/11 is increased 0.5 million tons to a record 440.7 million tons. Foreign oilseed production is projected down 1.2 million tons to 340 million mostly due to lower rapeseed production. Global soybean production is projected at a record 251.3 million tons, up 1.4 million due mostly to higher production in the United States. Soybean production is also raised for Canada based on higher planted area reported by Statistics Canada. Rapeseed production is sharply reduced for Canada due to lower harvested area. Despite a record planted area estimate reported by Statistics Canada based on producer surveys conducted in late May and early June, significant crop area in the provinces of Saskatchewan and Manitoba did not get planted due to excessive rainfall through late June. As a result, the Canada rapeseed crop is projected at 10.2 million tons, down 1.8 million from last month. Other changes include reduced rapeseed production for China and EU-27 and increased cottonseed production for the United States, Brazil, and Uzbekistan.

U.S. soybean exports for 2009/10 are projected at a record 1.46 billion bushels, up 5 million from last month in part reflecting additional sales to China. Crush is increased 5 million bushels to 1.745 billion due to stronger-than-expected domestic disappearance for soybean meal. Soybean ending stocks for 2009/10 are projected at 175 million bushels, down 10 million.

Cow slaughter remains relatively high, boosting beef production in 2010. Higher forecast mid-year cattle placements are also expected to boost steer and heifer slaughter later in the year and into early 2011.

Cattle and hog price forecasts for 2010 are reduced from last month as demand remains relatively weak in the face of higher production.

Accomplished dairy judging coach, David Dickson, passes away

2010-07-09T23:05:00.023-05:00

One of the foremost authorities on dairy cattle judging passed away Friday, July 9, in Madison, Wis., after a courageous battle against cancer. During his distinguished career, David Dickson judged more shows (13 total) at World Dairy Expo than any other official. In addition, he placed dairy cattle in over 20 countries and served on the All American selection committees for all seven recognized Purebred Dairy Cattle Association breeds. He was the first American to judge the European Championship Holstein Show and the New Zealand Royal Agricultural Holstein Show. He has led judging conferences throughout the U.S. and in Australia, Belgium, Canada, Italy, Japan and Spain. During his career as the University of Wisconsin-Madison dairy cattle judging coach which officially began in 1968, Dickson led teams to seven national championships at the National Intercollegiate Dairy Cattle Judging Contest. Perhaps more impressive, his teams won 18 team reasons titles at the national contest.

David P. Dickson was born in Everson, Wash., on February 26, 1939, and graduated from Meridian High School as class valedictorian. He went on to earn a bachelor's degree in dairy science from Washington State University. In 1960, Dickson became the second person (a fete that was later matched by one other person) in the U.S. to earn high individuals honors at both the National 4-H Dairy Cattle Judging Contest and at the Intercollegiate Dairy Cattle Judging Contest. It was that second honor, high individual at the college contest, that earned Dickson National Dairy Shrine’s famed Kildee scholarship. He used that money to further his dairy education at the University of Wisconsin-Madison where he went on to earn both a Master’s and a PhD.

After graduation, Dickson joined the University of Wisconsin-Madison Dairy Science Department where he served as professor for over three decades. As his career unfolded, he was chosen by his peers to chair the department from 1984 to 1990. Dickson served on the World Dairy Expo board of directors and also was a Holstein Foundation trustee. He was the founding advisor to UW-Madison's Badger Dairy club. Dickson was a long-time chapter advisor for UW-Madison's Alpha Gamma Rho Fraternity and a long-time advocate and supporter of Madison's Association of Women in Agriculture (AWA) . . . both agricultural professional-social organizations for young men and women. AWA has awarded him Honorary Membership. Additionally, he served as advisor to the Midwest and National student affiliate divisions of the American Dairy Science Association.

His ability to teach students was recognized by the American Dairy Science Association in 1996 when he won the Purina Mills Teaching Award in the first year he was nominated. In 2005, Dickson was honored as an Alpha Gamma Rho "Brother of the Century" during the Fraternity's 100th anniversary celebration and has won the Distinguished Service Award from multiple organizations. Always an educator, Dickson was the Kickoff Inspirational Speaker at the National 4-H Dairy Conference for ten consecutive years. During his tenure, he helped to produce over 20 videos on oral reasons that were shared with others across the country. Additionally, his dairy cattle judging brochure, “Dairy Cattle Judging Made Easy,” has been translated into Italian and Spanish. Later on, that publication was made into an effective interactive teaching tool available on CD. Many dairy producers also may remember Dickson's Christmastime poems deeply rooted in dairy tradition.

Bovine TB continues to pop up

2010-07-09T10:44:00.000-05:00

Efforts to rid the U.S. cow population of tuberculosis have been underway since 1917, when scientists developed the first accurate early detection test. After nearly a century of increasingly more diligent scrutiny and culling programs, total eradication remains elusive.

Six new infected animals have been identified in recent months by animal health officials in Colorado and Kentucky – a seemingly inconsequential number, but an extremely serious reminder that more work remains to be done.

In late May, a Pennsylvania slaughter plant identified a single beef cow as being infected. A subsequent test of its entire herd in northern Kentucky found one additional positive animal. Both were slaughtered and neither entered the human food supply. Kentucky has been certified TB-free by the U.S. Department of Agriculture since 1987. It will remain so as long as another TB-infected animal is not found during the next six months.

In late June, a dairy cow in southern Colorado was identified when she went to slaughter. Subsequent testing of her entire 500-cow herd found three more positive animals. All were slaughtered and none of the meat entered the human food supply. All milk that is sold commercially is pasteurized, which kills the TB bacteria.

Eradication of infected animals and pasteurization of milk are two of the key steps taken by state and federal health officials to protect human health from tuberculosis. Prior to their adoption, TB ranked as one of the leading causes of death in the U.S.

As of July 1 a total of 46 states were certified TB-free. The only exceptions were California, Michigan, Minnesota, and New Mexico. TB is naturally present in deer, elk, bison and other wild animal populations, and is perhaps the biggest obstacle to its total eradication.

CWT accepts 194 herd retirement bids

2010-07-08T07:55:00.000-05:00

Cooperatives Working Together announced yesterday that it has tentatively accepted 194 bids as part of its latest (tenth) herd retirement. A total of 209 operations had submitted bids. The bids accepted represented 34,442 cows and 653,893,409 million pounds of milk.

Under provisions of this herd retirement round, bids were accepted up to a maximum of $3.75 per hundredweight of milk. For a cow producing 22,000 pounds of milk per year, the maximum payment would have been $825, in addition to the slaughter market value of the cow.

Starting next week, CWT farm auditors will begin visiting the farms whose bids were accepted, checking their milk production records, counting cows, and then tagging each cow for processing. All farmers will be notified no later than July 30 as to whether their bid was among those accepted in this herd retirement round, the tenth that CWT has conducted since 2003.

Once CWT auditors approve the herds accepted during the bid process, farmers have 15 days in which to send their animals to a processing plant. Producers whose bids are accepted in this herd retirement will be paid in two installments: 90 percent of the amount bid times the producer’s 12 months of milk production when it is verified that all cows have gone to slaughter, and the remaining 10 percent plus interest at the end of 12 months following the farm audit, if both the producer and his dairy facility – whether owned or leased – do not become involved in the commercial production and marketing of milk during that period.

In CWT’s three herd retirements conducted in 2009, the program removed a total of 200,000 cows and 4 billion pounds of milk. Since CWT's inception in 2003, the 10 herd retirement programs have involved 510,472 cows in 2,928 herds that produced the equivalent of 10 billion of pounds per year. Average size of participating herds over the 10 herd retirements has been 174 cows . . . close to the national average herd size of about 165 cows.

Do you love dairy? Prove it.

2010-07-07T15:38:00.006-05:00

Okay, so the title may sound like a bit of a second grade playground dare. But, we do want you to take this as a challenge. Dairy Management, Inc. (check-off organization) along with its social media guide and website, myDairy, have launched the Why I Love Dairy Video Contest. The contest hopes to get the creative and humorous juices of the dairy industry flowing to create a viral video to be used as a promotional piece for the dairy industry.

Packed into just two minutes, the videos will tell your story why you love milk and dairy products, being a dairy farmer, life on the farm, showing/caring for cows, working with dairy farmers/being part of the dairy business, and/or producing nutrient-rich food. While cramming all that information (or what you can) into two minutes, they also encourage you to be funny, unique, quirky, and engaging. If you aren't sure what that means, check out some of YouTube's most watched videos, and you'll get the picture.

The check-off organization hopes that video creators will tell the dairy industry's story while reinforcing key messages regarding dairy product quality, safety and nutrition, animal care and well-being, sustainability/environmental stewardship, and dairy’s contributions to the economy and local communities. If you want to know more about these messages, click here.

To enter, you must register as a member of the myDairy website. (Don't worry, it's easy, and you won't get a ton of e-mails for signing up). You must also be actively engaged in the dairy industry as a dairy producer or dairy family, dairy association or business, college student or dairy club, or a youth member or club involved in 4-H, FFA, or breed organization.

A winner in each of those categories will be selected to receive a $200 Target gift card in addition to its video being utilized for online dairy promotion. We'll post them on our blog, too, as soon as we find out who wins! Winners will be announced on the last day of World Dairy Expo 2010 — Sunday, October 3, 2010. Entries are due by 5 p.m. CST, August 31, 2010. To register, submit your video, or for more information visit myDairy's video contest page.

Hoard Farm pregnancy rate improves by leaps and bounds

2010-07-06T11:00:00.003-05:00

“In the summer of 2009, the Hoard Farm was on the verge of single-digit pregnancy rates,” noted Jason Yurs, Hoard’s Dairyman farm manager. Prior to the 2009 World Dairy Expo, the farm was sitting at a 10 percent pregnancy rate.

Realizing the need to improve this situation, the farm set up a consultation with Ray Nebel, a reproductive specialist, to try and troubleshoot their reproduction problems. After this meeting, the farm, with the aid of herd vet Dr. Rick Halvorson, made changes to synch protocols and breeding philosophy.

During the winter, the Hoard farm saw gradual improvements to preg rates. In January, Jason's team held a meeting with Paul Fricke, a reproductive specialist from the University of Wisconsin-Madison, to go through our records and evaluate progress. At this point, the farm also decided to change the way they code and record breedings in DairyComp to improve the efficiency record analysis.

Currently, the Guernsey herd is sitting at a 19 percent preg rate, an improvement of 9 percent in less than a year. With the Jersey herd included, the current preg rate for the farm is 21 percent. Today, 55 percent of cows are bred from visually detected heats, with the remaining 45 percent bred using synch programs. Yurs attributes part of this success to the dry cow barn that was remodled last year. The facility has reduced the incidence of retained placentas and metritis and increased transition period success for the herd.

The Hoard Farm has also just completed a Guernsey ov synch study that was funded by the U.S. Guernsey Association. This study was done to determine if significant differences exist in the ovulation time between Holsteins and Guernseys which would impact the utilization of an on-farm ov synch program.

Genomics garners much attention at Holstein Convention

2010-07-05T10:10:00.000-05:00

Tom Lawlor, Holstein USA's geneticist, spoke before a near capacity crowd at the 125th gathering of the nation's Holstein breeders. Based on the crowd size, it was clear breeders still have many questions following April's genetic evaluations.

During Lawlor's presentation, he told Holstein breeders that there were 1,471 cows that had imputed proofs this April . . . proofs derived from genomic test information from over five offspring. Since then, that number has risen to 2,004 cows as more animals enter the genomic database. Lawlor estimates that breeders saved some $500,000 in testing costs due in part to the imputed genomic proofs.

When it came to two hotly debated issues from the April evaluations, Lawlor told those in attendance that 98 percent of indexes went down when genomic evaluations were rescaled to more closely reflect bull evaluations. Meanwhile, when evaluations were imputed, 56 percent of indexes went up while 44 percent went down. It was the combination of these two events which caused all the turmoil. When rescaled evaluations and imputed proofs were added together, 83 percent of cow indexes dropped with only 17 percent going up.

Lawlor went on to tell breeders about two new genomic tests that were coming soon involving the 3K and 860K chips which will be in addition to the current 52K test. Lastly, Lawlor said that the rescaled indexes should be back on the same base by April 2011 as USDA geneticists hope to have all genomically tested cows on the same base as females with traditional evaluations.

Beef supply at 5-year low

2010-07-02T07:55:00.000-05:00

In addition to milk, dairies are also constant producers of beef. This is a huge reason why USDA’s latest monthly Cold Storage report should factor into their summer management plans.

The June report issued last week said that, as of May 31, beef and pork supplies were at their lowest levels in 5 and 2+ years, respectively. In addition, this spring the number of beef cattle on feed was pegged at its lowest level in six years.

The only thing preventing this situation from being a financial windfall for livestock owners is poultry. The Cold Storage report also said chicken supplies were up 9 percent from a year ago.

Even so, strong international demand for meat, combined with lower U.S. production, presents opportunity for dairy producers for at least the next several months. With milk prices still relatively weak, culling lists mean more than just income. They also represent herd improvement potential in several ways:

• Reproduction. Now is an ideal time to “cash out” problem breeders and low quality animals that drag down a herd’s overall genetics.

• Milk quality. Mastitis and staph cows have never been worth more to send down down the road. Culling a load of them could have a huge impact on overall herd somatic cell count.

• Herd health, especially if Johne’s disease is in your operation. Odds are that you do because, according to the 2007 National Animal Health Monitoring System (NAHMS) study, 68.1 percent of all U.S. dairies have it. Testing and culling is the best and fastest way to eliminate Johne’s.

• Overcrowding. At some point, adding more cows to a group reduces production per cow. This means more than just wasted feed; research is increasingly showing it also causes lower reproduction, more lameness, and more health problems.

Financials: better but not good

2010-07-01T07:55:00.000-05:00

Last winter, things were looking up milk price wise, but rising milk production, sluggish demand, and climbing dairy product inventories caught up with us. Now, it looks like 2010 is going to be better financially for many operations but still is not going to be good.

We just received first-quarter financials for a sizable group of large dairies served by the accounting firm Nietzke & Faupel based at Pigeon, Mich. Compared to the first quarter of last year, the numbers looked much better. During the first quarter this year, a group of herds that averaged just more than 900 cows had net losses of 53 cents per hundredweight or 35 cents per cow per day. That compared to losses of $5.63 per hundredweight or $3.40 per cow per day during January, February, and March of 2009.

Looking at expense items, there was a big drop in cull cow (or replacement) costs from $3.48 per hundredweight during the first quarter last year to $2.79 this year. This reflected higher cull cow values and lower replacement prices. First-quarter feed costs dropped from $8.29 per hundredweight last year to $7.68 this year. This likely is a result of slightly lower feed values and fine-tuning of rations to eliminate extra expense.

Wages per hundredweight actually went up by 20 cents from $1 to $1.20. Breeding costs dropped from 17 cents per hundredweight to 10 cents. Supplies slipped from 56 cents per hundredweight to 45 cents. Total operating costs and expenses were $18.48 per hundredweight during the first quarter of this year compared to $20.18 last year.

The big difference was milk price. Average price received per hundredweight during the first quarter of last year for the dairies was $13.39. This year, the average was $16.62.

However, milk prices were pretty good during January and February. The average U.S. All-Milk Price during those months was $16.50 and $15.90. During the first 10 months of 2009, the nation's All-Milk Price averaged $12.20. Then it jumped to $15.40 and $16.50 in November and December. The average for all of 2009 was $12.83.

By March of this year, the All-Milk Price was back down to $14.80, and it was $14.60 in April. It did bounce up to $15.80 for May. Still, the point is that even though costs are down this year and milk prices will be up some, margins still will not be healthy for many dairy operations.

Hoard Jerseys see the appraiser

2010-06-30T07:55:00.001-05:00

Earlier this month, the Hoard Jersey herd which now numbers 101 cows (plus 11 heifers) was appraised by AJCA appraiser, Blake Renner. We purchased the Jerseys from three Wisconsin herds, and they are housed in our old tie stall barn that recently made a complete transformation into a free stall facility. The barn is scraped twice a day with a skid loader, and cows are fed outside with drive-by feeding. The Jerseys make their way to our three-year-old parlor three times a day to get milked.

When we were done, the American Jersey Cattle Association put scores on 50 head. The entire group averaging just shy of two lactations averaged 80.3 points which is down one-tenth of a point from our December score. That average included the 50 cows that previously were scored in the current lactation and did not change in score. When looking at the herd by lactation number, we had:
• 22 first-lactation (first-score cows) averaged 78.2 points
• All 36 first-lactation cows that averaged 78.7 points
• 41 second-lactation cows that averaged 80.8 points
• 23 third-lactation cows and greater that averaged 82 points

Overall, the second-lactation group was one point higher compared to last December. And that was with 22 more cows in the group. Our second-lactation average scores is right at breed average.

For those who follow the Hoard Farm Guernseys: Numbers are near an all-time high. We have 333 Guernsey cows and 292 Guernsey heifers, of which 95 are safe in calf, 67 are unbred yearlings, and there are 141 calves.

Getting hooked on Minnesota: 2010 National Holstein Convention

2010-06-29T16:41:00.004-05:00

Bloomington, Minn., is the site of this year's National Holstein Convention. Excellent weather welcomed Holstein breeders and juniors from across the country. Sunday's host day tours featured visits to Sapa-Ska Farm, Lake City, Minn.; the National Eagle Center, Lake City, Minn.; Floralawn Holsteins, Hutchinson, Minn.; Raylore Farm, Hutchinson, Minn.; and Glenmark Genetics and Bonnie Mohr Studio, Glencoe, Minn. Visitors at Bonnie Mohr studio had the opportunity to see where the newly-updated Foster Mothers of the Human Race Painting was created. Sunday evening concluded with a visit to Minnesota's very own Landscape Arboretum featuring over 1,000 acres of beautifully landscaped gardens.

Monday began delegate meetings while 35 teams competed in Dairy Bowl competitions. Dairy bowl finals occurred Tuesday morning. It was the junior team from California and the senior team from Pennsylvania that took home top honors. Minnesota and Washington came in at a close second in the junior and senior divisions, respectively.

We'll be providing you with more updates from the convention as it concludes today. Hoard's Dairyman staff have been heavily involved serving as a delegate, a coach, a tour host, and a judge! We've been busy! Watch the HD Notebook to find out more!

Distillers grain prices continue to fall

2010-06-29T09:15:00.001-05:00

Despite the rash of wet weather in the corn belt this year, the overall value of the dried distillers grain has softened during the last two months, due to expectations of yet another bumper crop of corn going into the field.

“This has pushed average distillers grain prices from $115 per ton, in early spring, to levels between $95 and $100 per ton through most of the Midwest states. Dried distillers grain contracts started out April 23 at $105 per ton, but quickly slipped back to prices hovering around $100 per ton. This consistency remained in the market until the second week of June, when additional pressure was seen in the corn market. This drove the price to $92 per ton,” according to Rick Kment, DTN ethanol and diary analyst.

He went on to note that “contract acceptance by any of the peers in either the feed or ethanol industry has been disappointing: The current open interest in the market is 11 contracts. The challenge with the small open interest is for someone who has a contract to actually find others willing to offset their position. This is why very little trade has been seen in this newly developed futures market. Outside of front month July contracts, there is zero open interest, making it impossible to actually hedge future prices in at this point, given the lack of offsetting buyers or sellers.”

Hoard Guernsey herd has four new Excellent cows

2010-06-26T07:55:00.001-05:00

In addition, to unveiling the new Foster Mothers of the Human Race painting earlier this month, the Hoard's Dairyman Farm appraised both the Hoard Guernsey and Jersey herds. Here are a few highlights from classification day:

• Sunset Farms Hawk Daisy (shown at the right) went EX-92 after calving back in just 12 months and completing a 26,000-pound record in 278 days. Daisy had a Spider daughter that went VG-82 as a 2-year-old.

• Dairyman Amen Jolene and Howerton Farms Roy Pistachio both went EX-91. Pistachio was only fresh 20 days but came through calving just fine. Jolene's information can be found at http://www.hoards.com/farm/favs/Amen

• We had a dam-and-daughter pair both go EX. Dairyman Regis Nancy and her daughter, Dairyman Royalty Nanny. Nancy is nearly 5,000 pounds over herdmates and is finishing a 4-9 record of 296 days 23,487 M, 4.7 1,115 F, 3.1 719 P, while her daughter, Nanny, made a 2-2 record of 314 days, 18,344 M, 4.3 787 F, 3.0 555 P

• Dairyman Iceman Rosebowl, a high-ranking index cow in the Guernsey breed, went EX-90 with an EX-90 MS. As a 2-year-old she made over 24,000 M. More on Rosebowl at http://www.hoards.com/farm/favs/Iceman

• Rounding out the new Excellents was Dairyman Tiller Camelia. She just finished a 5-0 record of 365 days 27,308 M, 5.3 1,449 F, 3.5 960 P.

Ten other cows went either VG-88 or VG-87. In that group was a Challenge daughter from Rutter Bros Royal Oaks Dawn, EX-92. This hard-working 2-year-old is due in August and is finishing up a record that currently stands at 2-3 304 days, 18,875 M, 5.6 1,059 F, 3.4 644 P. For more on Dawn, go to http://www.hoards.com/farm/favs/Oaks

More results from classification day will be posted in a few weeks once we get all the data entered into our computer system.

Cooperatives not a Department of Justice target

2010-06-25T12:05:00.007-05:00

Testimony at the third of five USDA—Department of Justice workshops kicked off Friday morning, June 25, in Madison, Wis. These workshops are designed to investigate competition and regulatory issues within agriculture. When United States Department of Agriculture (USDA) and the Department of Justice (DOJ) announced these events, the impression was given that cooperatives and the Capper-Volstead Act would come under fire. We detailed those concerns on our May 10, 2010, editorial page. Early on during Fridays workshop, USDA Secretary Tom Vilsack and Assistant Attorney General for the Justice Department's Antitrust Division, Christine Varney both went to great lengths to put those concerns to rest.  

"We don't have a hidden agenda or a stated desire to reformulate the law," said Vilsack when discussing the Capper-Volstead Act. "What this is about is creating a fair marketplace," noted Vilsack when talking about the coalition formed between the USDA and DOJ.   

Collectively, nearly every dairy producer who gave testimony during the event breathed a collective sigh of relief that neither the USDA nor DOJ was looking at Capper-Volstead. Those thoughts were repeatedly echoed in comments given throughout the day.

  During the event, comments were also given by U.S. Senators Kohl and Feingold, both Democrats from Wisconsin, along with other elected officials. Feingold asked the rhetorical question, "What happened between the farm and consumer to cause such a pricing gap?" During producer testimony that followed, the same theme ensued . . . farmers discussed reduced share of the retail dollar, lack of market transparency, and lack of market power in reference for the need for cooperatives.

  "We are hearing a consistency of message," said Secretary Vilsack in a press conference that followed. "We have not always heard that in the past. That message is consistent across farm size. There are producers large and small who are feeling squeezed."   

During testimony, much discussion took place on the thinly traded dairy markets on the CME (Chicago Mercantile Exchange). When asked about that matter during a press conference, Assistant Attorney General Varney said, "I am fairly certain there will be a USDA-DOJ conversation about the CME. Whenever you have a market that thinly traded, there can be a problem."

Texas vet team is ready to ride to the rescue

2010-06-25T07:55:00.000-05:00

It’s not exactly like M*A*S*H, but if you squint there’s definitely a similarity.

A new team of Texas rangers has been formed that stands ready to serve the state's citizens during times of emergency. Like their famous counterparts of the past they also work on the wide open range – as well as in stalls, coops, pens, barns, and drylots.

These are the new Texas V.E.T. rangers. The initials stand for Veterinary Emergency Team, and as the name implies it has been created by the Texas Animal Health Commission (TAHC) and the Texas A&M University (TAMU) College of Veterinary Medicine and Biomedical Sciences to respond to statewide animal medical disasters if, when, and where they occur.

The 13-member team (pictured above), consisting of TAMU faculty, resident veterinarians, veterinary technicians, and select veterinary students, is deployable under the state’s animal response plan in any disaster situation that has a need for additional veterinary assessment, triage and care. It is fully self-sufficient in lodging, food, generators and supplies for responders. Its equipment includes two large climate-controlled tents, one multi-purpose trailer, and one clinic trailer with limited surgical capability. It also has obtained trucks to haul trailers and equipment, as well as an ambulatory medicine truck.

Team members are divided into strike teams that can be targeted at either large or small animal issues, and are capable of dealing with animals and poultry of all kind, including exotic species.

Under the state’s animal response plan, the V.E.T. team will deploy with TAHC field personnel during a large-scale disaster and work under the same incident command structure. The team’s first field exercise was held in College Station in April, and it will be fully operational and mission-ready in time for the 2010 hurricane season.

“Our two organizations have put together an impressive array of equipment and personnel that will have the ability to limit and prevent animal suffering as disasters occur,” said Dr. Wesley Bissett, TAMU’s lead faculty member in the V.E.T. effort. “In addition, TAHC has provided us the opportunity to increase our efforts in teaching emergency response in the veterinary medical curriculum. Ultimately, this will lead to increased numbers of veterinarians committed to and trained in emergency response.”

Milk price outlook improves slightly

2010-06-24T07:55:00.000-05:00

The Class III price is projected to average $13.95 to $14.35 per hundredweight in 2010, according to USDA's June 18 Livestock, Dairy, and Poultry Outlook Report. The 2010 average through May is $13.57. USDA forecasts that the Class III average for 2011 will climb to between $14.35 and $15.35 per hundredweight.

The All-Milk Price is expected to average between $15.75 and $16.15 per hundredweight in 2010 when all is said and done. The 2010 average through May is $15.28. The agency forecasts a slight rise in the 2011 All-Milk Price to between $15.80 and $16.80. This a 10-cent-per-hundred jump from the previous estimate.

Feed corn prices are projected to be $3.45 to $3.65 per bushel for the 2009/10 crop year and to rise to average $3.30 to $3.90 in 2010/11. Likewise, soybean meal prices are expected to average $295 per ton this year and $230 to $270 next year.

The U.S. herd is expected to average 9.075 million cows in 2010 and 9.040 million in 2011. Milk production per cow is expected to increase nearly 2 percent in 2010 over 2009 to about 20,980 pounds per cow. In 2011, production per cow is forecast to rise another 1.8 percent to 21,355 pounds. The expected increase in milk per cow will provide 190.4 billion pounds of milk in 2010 and 193 billion pounds in 2011.

Lower milk production in Oceania has tightened world supplies of major dairy products. The impact on U.S. markets is to lower milk equivalent imports on both a fats and skims-solids basis and support exports. Exports of cheese, butter, and nonfat dry milk (NDM) were all higher in April, and the difference between U.S. and international prices remain favorable for U.S. exports. However, the strong U.S. dollar relative to the Euro and relatively large European Union (EU) intervention stocks of powder could be factors that limit U.S. powder exports.

Milk equivalent exports are projected to reach just over 5.0 billion pounds this year and 5.1 billion in 2011 on a fats basis. The corresponding

export forecasts on a skims-solids basis are about 26 billion pounds and 27.1 billion pounds.

While demand, both foreign and domestic, is recovering, continued increases in the milk supply will keep prices from rising appreciably. Cheese prices are forecast to average $1.485 to $1.525 per pound this year and rise slightly to $1.520 to $1.620 per pound next year. Butter prices are projected to average $1.475 to $1.545 per pound both this year and slip to average $1.390 to $1.520 next year.

Improving domestic demand for these products has firmed prices, but higher milk supplies will keep a lid on prices. Nonfat dry milk prices are forecast to average $1.200 to $1.240 per pound in 2010 and rise to average $1.235 to $1.305 per pound next year. Tight international supplies and the expectation of stronger exports support the expected higher prices. Whey prices are forecast to average 36.5 to 38.5 cents per pound and rise fractionally to 37.5 to 40.5 cents per pound in 2011.

CARE bill could hinder our youth leasing programs

2010-06-22T15:37:00.007-05:00

One of the most successful opportunities to get nonfarm youth excited about the dairy industry we've witnessed is leasing programs through 4-H, FFA, or breed groups. These leasing programs give youth without a farm background a chance to work with a project animal, gain experience on farms, and potentially find a career they love. You'd be surprised how many people working in the dairy industry didn't actually grow up on dairy farms, yet were introduced through a youth project.

H.R. 3564, the Children's Act for Responsible Employment (CARE), introduced by representative Lucille Roybal Allard (D-Calif.) could eliminate exemptions in the Fair Labor Standards Act (FLSA). The FLSA allows nonfarm youth ages 12 to 17 to work on farms in safe conditions under certain circumstances with parental consent. CARE does not currently create an exemption for youth working with youth programs for 4-H or FFA. This means that youth could technically still lease animals and show at the county fair, but not work on your farm in exchange for the lease or in preparation of the local fair.

The goal of the original bill was to prevent the common employment of children of migrant workers. However, our industry may suffer a loss of future leaders if nonfarm youth are legally not allowed to work with us on our farms.

Win a trip to the AgChat Foundation’s Agvocacy 2.0!

2010-06-22T09:14:00.000-05:00

NutriDense Silage kicked off their Web Moo.0 Contest last week in celebration of June Dairy Month. As social media continues to play an ever-increasing role in the diary industry NutriDense wants to see how you utilize technology to create a positive image for dairying. They want you to show them how the dairy industry is using social media to support their efforts in the field, spread the word about the benefits of dairy products or help consumers better connect with dairy farmers.

Entries can be submitted in multiple ways: through a YouTube video, Flickr photo slideshow, blog post, or 500 words or less essay. The contest runs until Friday, July 9.

The grand prize winner will receive registration, hotel and travel to the exclusive AgChat Foundation Agvocacy 2.0 Conference, on August 30 and 31 in Chicago, Ill. At the conference agriculture social media users from all industries will come together to share info, learn about new technologies, and network with agriculturalists from around the country.

The conference is limited to 50 qualified applicants, and NutriDense is proud to help send a dairy representative to the training. In addition, second and third-place winners will receive Flip Mino Cameras.

Entrants must be involved in the dairy industry, live in the continental U.S, be 18 years or older, and able to attend the conference in August. Entries will be judged on creativity, innovation and impact they have on the dairy industry.

Supreme Court overturns alfalfa seed ruling

2010-06-21T11:38:00.013-05:00

On a 7 to 1 vote, the United States Supreme Court reversed an earlier ruling by U.S. District Judge Charles Breyer that placed a nationwide injunction on planting Roundup Ready Alfalfa and barring USDA from partially deregulating Roundup Ready Alfalfa pending the court ordered environmental review.

“The good news is this decision reinforces USDA APHIS (Animal and Plant Health Inspection Service) as the science-based agency with sole authority on regulation, deregulation, and permitting of biotech traits in crop plants,” says Forage Genetics International president Mark McCaslin, whose organization helped develop Roundup Ready Alfalfa.

While the Supreme Court reversed the injunction, it is not full steam ahead. “What was appealed was the injunction on future plantings. That original injunction prevented USDA-APHIS from partially deregulating Roundup Ready Alfalfa while they conducted the EIS (Environmental Impact Statement),” said McCaslin. “That is where the Supreme Court said that the U.S. District Court overstepped . . . by telling USDA-APHIS what they could and could not do. This decision supports the concept that these types of decisions should be based on sound science. With the injunction going away, it is now in USDA’s domain again,” says McCaslin. “Hopefully, we are in the home stretch with the final EIS and a permanent deregulation situation.”

Short term, it is up to APHIS if they want to allow permit or partial deregulation which would allow producers to plant Roundup Ready Alfalfa. “While the Supreme Court decision is good news, it is not a green light to go out and buy and plant Roundup Ready Alfalfa seed. There would have to be action by USDA-APHIS for that,” says McCaslin. Long-term, this Supreme Court decision is not only a positive for this case involving Roundup Ready Alfalfa but what it implies for biotech traits and crops in general.

California bill targets faster overtime for ag workers

2010-06-18T07:55:00.000-05:00

Because it’s the biggest agricultural state in the U.S. and a frequent trendsetter on political and social issue, farmers across the country may want to keep their eyes on an agricultural overtime pay bill that may become law in California.

By a vote of 23-12, the State Senate on June 3 approved Senate Bill 1121 to eliminate a 69-year-old exemption for farmworkers and put them under the same overtime rules as other hourly employees in the state, thereby making them entitled to extra pay after working fewer hours than is currently the case. The measure must next be voted upon by the State Legislature, where passage is also expected. It then would go to Governor Arnold Schwarzenegger for final approval.

Currently, farmworkers in California are eligible for overtime pay if they work more than 10 hours in a workday or more than 60 hours in a workweek. However, existing law for other hourly workers defines overtime as more than 8 hours in a workday or more than 40 hours in a workweek, with overtime pay rates of 50 percent and 100 percent depending upon the specific situation.

Nearly 20 attorney and union organizations support the change. More than two dozen ag and ag-related organizations oppose it, noting that California already has the nation’s most progressive labor protections for agricultural production, and no other state currently requires overtime once agricultural workers have exceeded a 40-hour workweek.

An analysis of the bill can be seen at http://totalcapitol.com/?bill_id=200920100SB1121

The abnormal has become normal

2010-06-17T08:10:00.000-05:00

It was interesting to try to get a handle on the mood of those attending the Four State Dairy Nutrition and Management Conference last week at Dubuque. The annual gathering has become popular for the nutritionists, consultants, feed sales reps, veterinarians, educators, media, and others. Attendance this year, around 450, was among the highest in the history of the event.

The last year and half has not been a good time for those who supply dairy farmers as well as for dairy farmers themselves. Everyone's business has been affected. Sales are down. Receivables are up. And the months ahead don't look much better. Yet, those attending the Dubuque meeting were not as negative as you might expect. They seem to be chugging along.
The thought occurred to us that the situation almost is one of "the abnormal has become normal." Somehow, people have adjusted to the troubling margins on the farm, and the businesses serving dairy farmers have changed, too.

One session at the conference focused on dairy farmers could and should adjust.
Doug Scheider, with about 600 cows at Freeport, Ill., talked about how his strategy has changed. He meets quarterly with his lender and is working towards supplying financial reports monthly.

He has tried to cut ration costs without negative consequences. He did not cut supplements but made better use of feed refusals. He kept up herd health checks and vaccination protocols but did less screening for mycoplasma and Johne's. He stayed with his synch programs, but is using more young sires, cut out sexed semen, and is culling poor-doing heifers rather than raising them to see how they turn out. He cheated some on fertilizer and borrowed money in order to take advantage of early-buyer discounts.

Jim Barmore, Verona, Wis., of GPS Consulting, covered strategies he thinks more dairy operators could benefit from. Cow care is "king" and he puts big priority on cow comfort (cooling, sand, non-slip flooring, ventilation). He continued that people must eliminate the stumbling blocks that are keeping pregnancy rates below 20 percent.

Barmore and other speakers stressed that high-quality forage is vital but that you have to know its cost if it is homegrown.

Tracking feed inventories, getting a handle on shrink, and using feed management software all are important.

On the financial side, Barmore emphasized focusing on managing for margin, not just higher income or low costs. Having a five-quarter plan on capital needs (new barns or a new loader, mixer, or chopper) really is beneficial during periods of low margins. In addition to assessing cropping costs, Barmore also said it is very important to know the costs of raising heifers. Behind feed, that usually is the second largest expense on a dairy.

World's best Jersey cheese crowned

2010-06-16T08:05:00.000-05:00

Known for their component-rich milk, Jersey cows have long been known as the cheese queens. On June 11, the World Jersey Cattle Bureau hosted the second-ever World Jersey Cheese Awards at the breed's namesake — the Isle of Jersey in the English Channel. All entries were required to be composed of 100 percent Jersey milk.

Over 100 entries were received from 10 countries, with a total of 38 medals awarded by an expert judging panel. The cheese awarded the title of the World's Best Jersey Cheese 2010 was "Jersey Blue" made by Willi Schmid from Switzerland.

Cheeses receiving Gold Medals included seven from the United States, four from the United Kingdom, two from Switzerland, two from the Netherlands, one from Denmark, and one from Australia. They included:

Alexandrina Cheese Company, Alexandrina Vintage Cheddar, Australia
Thise Mejeri, Thise Jersey Gouda, Denmark
De Groote Voort, Remeker 6 months in age, Netherlands
De Groote Voort, Olde Remeker 1.5 years in age, Netherlands
Willi Schmid, Jersey Blue, Switzerland
Willi Schmid, Muhlstein, Switzerland
J&E Dickinson — Longley Farm, Cream Cheese, United Kingdom
Exmoor Blue Cheese Company, Partidges Blue, United Kingdom
S&R Poortman & Sons, Bruckclay Gold — Jersey Gold, United Kingdom
Northumberland Cheese Company, Kielder, United Kingdom
The Farmstead at Mine Brook, Jersey Maid Neige en Ete, USA
Cobb Hill Cheese, Welsh Caerphilly Style Cheddar, USA
Cobb Hill Cheese, Farmstead Alpine Style Natural Rind Cheese, USA
Bellwether Farms, Carmody, USA
Farms for City Kids Foundation, Spring Brook Farm Tarentaise, USA
Gingerbread Jersey Cheese, Taste of Athens, USA

Esteemed judges from around the world decided on the award winners. Below are comments from two of them:

John Allison from the United Kingdom: "The Gold Medal winners were of an extremely high standard and would have ranked as such anywhere in the world. I was amazed by the variety of cheeses made from Jersey milk. The diligence and skill of the panel of judges made it an enjoyable and worthwhile competition."

Kathy Guidi from Canada: "It was wonderful to see such an array of high-quality hand-crafted cheeses from around the world made exclusively from Jersey milk."

Kentucky cattle industry considers filing for disaster relief

2010-06-15T09:13:00.004-05:00

Clover, which grew in abundance in Kentucky pastures this spring, isn’t lucky anymore. Agricultural Commissioner Richie Farmer of Kentucky has asked Governor Steve Beshear to request a disaster declaration from the U.S. Department of Agriculture. This request has been made due to the numerous cattle deaths caused by primary ruminal tympany or frothy bloat that have sprung up after cattle consumed large quantities of clover this spring.

Clover gained a strong foothold after droughts in 2007 and 2008 weakened grass stands in pastures throughout Kentucky. This year grasses were dormant during a dry April, and then a wet May caused the white clover to grow more rapidly than grass, which led to cattle ingesting larger-than-normal amounts.

Clover is high in soluble protein. When it is rapidly fermented, foam is produced in the rumen that blocks gas from escaping. The rumen becomes enlarged and puts pressure on the lungs. This can cause suffocation if the condition is not treated via surgery or anti-bloating products.

According to George Heersche, extension dairy specialist at the University of Kentucky, this problem has been most prevalent within the Kentucky beef industry. He also stated that "Dairy heifers that are currently on pasture lack the intake necessary for white clover to be problematic".

Some Kentucky farmers have lost 25 to 30 percent of their herds due to frothy bloat. Sale of cattle and calves generates approximately $600 million in cash receipts annually. If the disaster declaration is made, farmers who have lost large chunks of their herds will finally have some relief.

Health checks and necropsys among science covered at Badger Dairy Camp

2010-06-14T17:09:00.014-05:00

Dairy youth from Wisconsin, Illinois, and Texas came to Madison, Wis., for the 13th annual Badger Dairy Camp this June 14 to 16. The three-day camp is open to youth ages 12 to 18 years old are able to hone their judging and showing skills. It is just one of the many dairy camps available to youth across the country.

Youth may come for the judging and showing, but leave with so much more. During the camp, topics such as giving your calf a health check, feeding heifers, "roaming through the rumen", and necropsys were all discussed by dairy scientists. Camp leaders hope the exposure to the science-based topics will encourage youth to pursue a career in the dairy industry.

During "roaming through the rumen", campers can actually feel inside a cow's large fermentation vat (the rumen or first stomach) which breaks down forages. In another workshop, dairy youth could watch as a veterinarian performed a necropsy to determine why a calf died as shown in the above photo. Throughout these workshops, young people learned the proper way to care for cattle illnesses could be avoided in the first place. Finally during the "Guardians of Animal Ag" discussion, youth learned how to answer consumer questions related to animal agriculture.

If you or your son or daughter would like to attend a "Dairy Camp" in your area, contact your state's dairy science program at your nearest university or call Hoard's Dairyman and we can point you in the right direction.

Study puts best beef belief out to pasture

2010-06-11T10:00:00.000-05:00

Eating-healthier-than-thou attitudes tend to float on clouds of perception rather than be rooted in fact. Thus, the bubble burst by a recent research study may do little to convince proponents about the real nutrition differences that apparently exist between beef from grass-fed cows versus grain-fed cows.

The tender and juicy bottom line: Pasture-fed beef is not only not more healthful and nutritious, but it looks like it’s actually less. That was the conclusion announced in May by Texas A&M University AgriLife researchers after a complex study focusing on meat consumed by test participants.

Researchers fed three groups of steers – same age, same breed, and in the same herd – different diets: pasture plus supplemental hay until 20 months of age, standard feedlot corn-based until 16 months of age and USDA Choice status, and additional standard feedlot time until USDA Prime status was reached. Beef cuts from each group of cattle were made into separate groups of ground beef patties, then cooked and eaten by 27 male test participants. They ate five 1/4-pound patties per week, six weeks per animal group. That was 90 patties per person in all.

“There really were no negative effects of feeding ground beef from pasture-fed cattle,” said Dr. Stephen Smith, an AgriLife Research meat scientist. “We did see many positive effects in men who consumed ground beef from corn-fed cattle. Ground beef from the USDA Prime cattle increased HDL cholesterol and LDL particle diameter. Both effects are protective against cardiovascular disease. Prime ground beef also decreased insulin, so it may have some protective effect against Type II diabetes

NMPF board approves proposal for dairy policy change

2010-06-10T16:32:00.004-05:00

Yesterday, the National Milk Producers federation board of directors approved a recently formulated proposal that will request a major overhaul of U.S. dairy policy. The group's goal is to better protect dairy producers and position them more favorably in an increasingly volatile global marketplace.

The group of concepts is being titled "Foundation for the Future" and according to NMPF CEO Jerry Kozak, the package will be used as the basis for the future direction of the dairy provisions in the next Farm Bill or in some other form of federal legislation that Congress may consider in the future.

“If there is anything good that has come out of the past 18 months of economic struggle, it’s the shared feeling among NMPF’s members that we can use this experience as the catalyst to make needed changes in dairy policy,” said Randy Mooney, NMPF Chairman and dairy farmer from Rogersville, Mo.

NMPF’s plan calls for transitioning the existing safety nets of the Dairy Product Price Support and Milk Income Loss Contract Programs into a new Dairy Producer Margin Protection Program to guard against periods of severe financial pressures; establishing a Dairy Market Stabilization Program to help address periodic imbalances in milk production and demand; and reforming the Federal Milk Marketing Order Program.

The Federation’s proposal to revamp the federal safety net involves creating an insurance program tied to the margin between the national average cost of feed and the national average all‐milk price. After farmers choose to enroll in the base level of the Dairy Producer Margin Protection Program at no cost to them, they would receive indemnity payments during periods when their margins are severely compressed, as they were for most of 2009. In addition, farmers would have the option of purchasing supplemental coverage to protect a higher margin level between feed costs and milk prices.

Kozak said that NMPF will now begin a comprehensive education effort to inform the entire dairy producer community, as well as policymakers, about the merits of Foundation for the Future.

Dairy Shrine announces Award winners

2010-06-09T15:56:00.004-05:00

The National Dairy Shrine (NDS) recently announced the winners of the 2009 Graduate Dairy Production, Progressive Dairy Producer, Pioneer, Distinguished Dairy Cattle Breeder, and Guest of Honor awards.

Receiving the Guest of Honor, the highest award bestowed by the National Dairy Shrine, is Calvin Covington, Clemmons, N.C. Covington served as the chief executive officer of Southeast Milk Inc. for the past 10 years. Southeast Milk is the nation’s 15th largest cooperative, and Covington has been instrumental in the cooperative’s growth since his arrival in 2000. Prior to that, he spent 23 years with the American Jersey Cattle Association-National All Jersey, Inc.

The NDS Distinguished Dairy Cattle Breeder is the William Ramsey family from Paradise Valley Farms near Louisville, Ohio. The Ramseys are the breeders of Paradise-R Cleitus Mathie. On March 14, 2000, Mathie produced his one-millionth unit of semen becoming one of 42 bulls to achieve this distinction. His official production proof includes some 62,000 daughters worldwide. The Ramsey family is currently participating in an American Dairy Association Mideast effort to introduce Ohio dairy farmers to consumers through a website www.ohiodairyfarmers.com.

Dr. Jack Albright, Merle Howard, Dr. Lee Majeskie, Dr. Rex Powell, and Mert Sowerby were selected as National Dairy Shrine Pioneers for 2010. Dr. Jack Albright is professor emeritus in the animal sciences department at Purdue University and was a leading animal welfare researcher and successful judging coach. Merle Howard was on the first National Dairy Shrine Board, was a long-time World Dairy Expo volunteer, the 1954 Klussendorf Winner, and is one of only eight recipients of the National Dairy Shrine 4-E Award for outstanding service. Dr. Lee Majeskie built and maintained one of the most successful 4-H programs in the country in Maryland while coaching many successful dairy cattle judging teams. Dr. Rex Powell is a highly published and dedicated geneticist from the U.S. Department of Agriculture, Animal Improvement Laboratory who was instrumental in the development and use of international genetic evaluations. Mert Sowerby is an internationally known dairy judge, farm manager, classifier, a charter member of National Dairy Shrine and 1953 winner of the Klussendorf Award.

Luke and Derek Johnson, in the small herd division, and Andy and Lynn Buttles, in the large herd division, were selected as NDS Progressive Dairy Producers. The Johnsons have a well-known herd of registered Holsteins (under the prefix Joleanna) in New York that have captured several national show winnings. The Buttles’ Stone Front Farm is a fifth generation 400-cow, Holstein and Jersey dairy in Wisconsin. The Buttles were recognized by Holstein USA as the Distinguished Young Holstein Breeder in 2004.

Tim Northrup of York, N.Y., has been selected as the Graduate Dairy Production winner. This award goes to an active dairyman who has graduated from college in the last five years and has already demonstrated excellent dairy management ability.

The day has finally arrived!

2010-06-08T15:07:00.005-05:00

It was an air of celebration at the Hoard’s Dairyman Farm today as the fifth and newest version of the Foster Mother of the Human Race painting was finally unveiled. After many months of anticipation, the painting containing all seven recognized cattle breeds was revealed after a National Agri-Marketing Association (NAMA) panel discussion. Bonnie Mohr created the painting in honor of the 125th anniversary of Hoard’s Dairyman. Over 100 guests were in attendance at this event.
The panel held an in-depth discussion regarding the importance of social media in the agricultural world. The panel included Corey Geiger and Patti Hurtgen, both from the Hoard’s Dairyman editorial staff, as well as Pam Jahnke, Farm Director, Farm Report Radio, and David Pelzer Senior V.P. Strategic Communications at Dairy Marketing, Inc.

The panel members focused in on the importance of using social media to reach the public and build relationships with the consumers. They also discussed the many modes of communication technology that are available to us today and how to best reach the farmer by providing a concise package of information that can be easily accessed.

Each breed association will also receive two "remarked" prints. One of these prints will be used in a fundraising event geared toward that breed's youth, with the other to be displayed as they see fit.

If you are interested in partaking in this historic event, you can purchase the print or giclee online at www.hoards.com; shipping is $10 and applicable sales tax applies.

Beef market helps stretch CWT retirement #10 budget

2010-06-04T08:20:00.001-05:00

Dairy producers are also beef producers, and wearing both hats has never been as strange as it has been in 2010.

Suddenly higher demand for beef around the world has been squeezing U.S. supplies this year, and the impact on cull dairy cow prices has been nothing less than amazing. We have personally seen dairy producers’ beef settlement sheets this spring that were littered with animals that brought at least $1,000. A few were over $1,300, and one was a ridiculous $1,536.

Why ridiculous? Because springing dairy heifers only cost about $1,300. It was just three years ago that it took four cull cows to buy one springer; now it takes well less than two. As beef producers, these are extraordinary times to be milking cows, and some dairy owners are no doubt faced with the ironic reality that their herds are worth more as hamburger.

It is this probably temporary alignment of moons and stars that explains the lowball flat rate buyout offer of $3.75 per hundredweight being offered in round 10 of the Cooperatives Working Together Herd Retirement Program. Bidding closes June 25, and there will no doubt be many takers, even though the amount is far, far below bid amounts accepted during previous CWT retirements.

For instance, the average price for all bids accepted nationwide in retirement No. 3 in 2005 was $6.75, and in the West it was $7.52. The average prices accepted nationally in rounds 5 and 6 in 2008 were $6.10 and $6.49, respectively. CWT officials, by the way, have not announced any average bid information since then.

Farms have big local economic impact

2010-06-03T07:55:00.000-05:00

Total farm business operating expenditures amounted to more than $187 billion in 2008, according to a recent report from USDA's Economic Research Service. Nearly half of those expenditures were spent locally. That's the message of an article on the report which appears in the June 2010 issue of the USDA publication Amber Waves.

ERS researchers recently summarized a study of how and where farmers spend their money which was conducted in 2004. There was no discussion of whether spending patterns might have changed in recent years.

The researchers examined purchasing patterns to determine the likely impact of farm spending on various types of local economies, from highly urban to totally rural.

Farmers were asked how far they travel to purchase most of their farm inputs and equipment.

They also were asked how far they were from the nearest town. The average was 8.3 miles, and the nearest city of more than 100,000 was an average of 24.2 miles away.

The study found that farm business expenditures were potentially much more important in rural counties than in urban counties. That difference is not too surprising, but the magnitude of the difference is noteworthy.

Farm expenditures per non-farm worker in a county, a measure of the relative importance of farming to a local economy, averaged about $4,500 in rural micropolitan counties (defined as counties containing an urban core with a population between 10,000 and 50,000). That amount was more than 100 times the $41 urban-metropolitan county average.

Furthermore, in the least urban counties, the relative importance of the farm sector was reduced where a significant share of residents commute to jobs outside of the county. Despite large differences in the relative importance of farming across county types, roughly half of all farm purchases were made locally.

New www.hoards.com launched

2010-06-02T09:36:00.005-05:00

We at Hoard's decided to do June Dairy Month with a bang this year. Not only are we celebrating the 125th anniversary of our magazine with a special anniversary issue and a new Foster Mothers of the Human Race painting, but we're also launching a brand new website at www.hoards.com.

The new site offers expanded dairy content and easier site navigation for viewers. It includes turn-page technology, allowing digital subscribers to view the most recent issue of the publication, in addition to any issue of the magazine since 2000. The website is home to up-to-date dairy markets information — all easily accessed from the homepage. All-new is the Dairy-E-Sources section which includes resource information conveniently divided into topic areas like Animal Health, Feeding, Forages, and Milk Quality. Dairy youth will find hoards.com to be a worthy resource, as well. The website includes dairy quizzes, college and scholarship listings, and links to valuable educational websites.

An interactive Ask an Editor feature is also on the new website. Visitors can ask our knowledgeable editors their toughest questions regarding dairy farming — some questions may also appear in the print edition! In the same fashion, we hope the feature will allow readers to share their thoughts with the editors and share their tips to success.

So, go ahead, browse the site. Let us know what you think!

What's your share of the retail food dollar?

2010-06-01T09:33:00.001-05:00

According to current USDA estimates, 80 cents of every food dollar spent in the United States goes to off farm costs, including marketing, processing, wholesaling, and distribution. This leaves a mere 20 cents of every food dollar to return to the farmer’s pocket.

The Economic Research Service (ERS) calculates the farm-to-retail price spread; the difference between the price paid by consumers for a food item at the store and the amount of money received by farmers for the commodities used to produce that same food item. To do this, they use two data sets, the marketing bill and the at-home foods by commodity group.

For example, this year at Safeway grocery stores one gallon of fat-free milk retailed for $4.09. The farmer’s share, the percentage of the price of food that is explained by what farmers earn for the agricultural commodities needed to produce the food items, of this was 28.6 percent, or $1.17.

For a more in-depth look at how these prices are determined, http://www.ers.usda.gov/Data/FarmToConsumer/index.htm, is a great resource. This site breaks down how the ERS calculates the farm to consumer values for all classes of dairy products and gives farmers the opportunity to determine their share of consumer’s expenditures on food.

No difference seen in regular, organic, and BST-free milks

2010-05-28T07:55:00.000-05:00

Despite claims and/or inferences by those who market them, yet another scientific study has concluded that the only difference between BST-free or organic milk versus “regular” milk is their cost.

Writing in the May issue of the Journal of Dairy Science, Cornell University researchers said, “Results established that there were no meaningful differences that would affect public health, and all milks were similar in nutritional quality and wholesomeness.”

The researchers noted that consumers are becoming increasingly health conscious and food product choices have expanded, and choices in the dairy case include fluid milk labeled according to production management practices. Such labeling may be misunderstood and perceived by consumers to reflect differences in the quality or nutritional content of milk.

The study was a logistically daunting one: Buy samples of conventionally produced milk with no specialty labeling, milk labeled BST-free, and milk labeled organic; then analyze the fatty acid (FA) composition of all samples in a lab. A total of 292 samples were collected from stores in all 48 contiguous states.

“Without exception, the magnitudes of the differences in milk FA composition among milk label types were minor and of no physiological importance when considering public health or dietary recommendations,” concluded the researchers.

CWT announces tenth herd retirement

2010-05-27T11:14:00.005-05:00

More herds will be retired this year — Cooperatives Working Together (CWT) has just announced that it will be implementing another round of herd retirements after reviewing a number of economic benchmarks, including cull rates and cull cow prices. Bids will be accepted starting Friday, May 28 with a cutoff date of Friday, June 25.

“It is our belief that a herd retirement at this time will add to the positive momentum already building and should result in speeding up the milk price recovery already in progress,” said Jerry Kozak, president and CEO of NMPF which manages CWT.

This is the tenth herd retirement since CWT began operations in the summer of 2003. The most recent was conducted in the fall of 2009.

“With beef prices very strong, and replacement cow and springer prices still relatively low, CWT has determined that it will consider bids up to, but not to exceed, $3.75 per hundredweight,” noted Kozak. “However, there is no guarantee that a producer who bids at the maximum level will be selected.” Producers must still bid on a per-hundredweight basis, and CWT will continue to review and accept bids, beginning from the lowest bids received, moving up toward the maximum level. Farmers whose bids are accepted are paid by CWT for their milk production, and they also retain the beef value of the cows they send to processing.

Detailed information can be found on its website, including bid forms application, an interactive bid calculator to help estimate a farmer’s bid, and answers to frequently asked questions. All bids must be postmarked by Friday, June 25th, in order to be considered. All dairy producers submitting bids to sell their herds must be members of CWT effective January 2009, either through their membership in a fully participating cooperative or as an independent member of CWT.

Milk supplies putting pressure on prices

2010-05-27T07:55:00.000-05:00

Expect gradual improvement in milk prices and margins, according to USDA's recent Livestock, Dairy, & Poultry Outlook. Corn prices are forecast to average $3.50 to $3.70 a bushel through this crop year, moderating to $3.20 to $3.80 longer term. Soybean meal price is expected to average $295 a ton this crop year and $230 to $270 longer term. Modest improvement in both feed and milk prices is not likely to ignite an expansion in U.S. dairy herd size. The number of cows is projected to average 9.07 million this year and to continue a gradual decline in 2011, to average 9.04 million. On balance, the higher milk per cow during the year is expected to offset the decline in herd size, leading to higher milk production. Prospects are for improved demand, both foreign and domestic, for dairy products in 2011. Higher domestic use is expected to support slightly higher imports next year. Meanwhile, global economic recovery is continuing apace, boosting international trade in dairy products. Domestic commercial use is expected to increase this year. A robust 1.2 percent rise is expected in commercial use on a fats basis while growth in use on a skims-solids basis is projected at a slight 0.4 percent rise. Stocks should tighten as use strengthens. Despite the improved demand outlook, prospects are for only modest price increases in 2011. Cheese prices are forecast to trend higher both this year and next, averaging $1.480 to $1.530 per pound this year and $1.505 to 1.605 per pound in 2011. Higher prices are also expected for NDM and whey for the balance of 2010 and into 2011. The prospect is for only moderate price increases in milk prices in 2011 as milk production continues to rise. The Class IV price is expected to average $14.15 to $14.75 per cwt. this year and only slightly higher next year at $14.15 to $15.25 per cwt. Class III prices are projected to average $13.95 to $14.95 per cwt. in 2010 and to climb to $14.25 to $15.25 per cwt. next year. The all milk price will average $15.65 to $16.15 per cwt. this year and rise to average $15.70 to $16.70 per cwt. next year.

Roundup Ready alfalfa awaits two rulings

2010-05-26T07:45:00.002-05:00

Three years have passed since a U.S. district judge in San Francisco ruled that a more thorough evaluation of potential environmental impact was needed on Roundup Ready alfalfa. That ruling took the product off the market and sent interested parties back to the drawing board in an effort to update the product's Environmental Impact Statement (EIS). Late last year, USDA's Animal and Plant Health Inspection Service (APHIS) posted the latest 1,476-page draft of the EIS online. That opened a public comment period which ran from December 18 to February 16.

Sources tell us that some 10,000 individual comments were submitted on the latest EIS this winter. Industry specialists tell Hoard's Dairyman that nearly 1,000 comments were submitted from alfalfa growers . . . the vast majority supported the conclusions of the EIS and recommended deregulation of Roundup Ready alfalfa.

APHIS is now working on a final EIS that considers new information or questions supplied by the 10,000 commenters. Those with working knowledge of the process are hopeful that a final EIS can be completed later this year. After a final EIS is published, APHIS will make a determination on deregulation. If they rule in favor of deregulation, Roundup Ready alfalfa will be back on the market soon thereafter.

On a related subject, the U.S. Supreme Court heard an appeal to the broad injunction imposed by the Ninth Circuit Court of Appeals on April 27. A ruling on that portion of the case is expected by the end of June. To learn more about the reasons that the U.S. Supreme Court decided to hear the case, a description is given at Monsanto's website. Click the title of this blog to read it.

Elite semen producers hit million-unit mark

2010-05-25T10:05:00.002-05:00

Since Fisher-Place Mandingo first produced 1 million units of semen in 1994, 42 other Holstein bulls have been able to join him in this elite club. At the turn of the century, merely nine others had reached this mark; today that number has more than quadrupled. Most recently, Keystone Potter (sold by Accelerated Genetics) and Lutz-Brookview Bert (sold by ABS) have been able to attain this milestone, becoming the 41st and 42nd bulls in history to realize this remarkable accomplishment.

To achieve this feat, a bull must be a superior semen producer and have a long life span. He must also be able to transmit features to his offspring that are attractive to a wide array of producers. Both of these bulls are popular, domestically and internationally, selling units in over 50 countries. Potter’s genetics typically create daughters that mature nicely and milk at a superior level. Bert, a calving ease bull, tends to sire daughters that have outstanding feet and legs.

All millionaires to date have been from the Holstein breed because it is currently the only breed that has the market potential to sustain this level of sales. The United States leads the pack having 20 bulls that have reached the millionaire mark, while Canada follows with 12. Three other countries, the Netherlands, New Zealand, and France, also have bulls that have reached this level of production.

From an A.I. cooperative standpoint, Semex heads up the bunch with 11 millionaires; ABS is in a close second with 10 bulls. Eight other A.I. studs have had bulls reach this mark, as well.

Six bulls in this group have further separated themselves by joining the Super Millionaires Club. These bulls have produced over 1.5 million units of semen in their lifetime. The most recent bull to be included in this group is Fustead Emory Blitz (sold by Select Sires).

If you would like to see the complete list of elite bulls with over 1 million units of sales,
click here. Our thanks to Holstein International for compiling this list.

Also, today we posted a brand new video on our Bonnie's Brush with Hoard's blog! Check it out now.

Remarkable six-legged calf born in New York!

2010-05-24T09:48:00.011-05:00

Just last week, a dairy farm in Troupsburg, N.Y., was home to a miracle. A difficult calving, thought to end with a dead calf, actually ended up with a live, healthy bull calf with some unique accessories. The farm is home to Brian and Lisa Robinson and their children, Logan and Shante. When a cow was having trouble during calving last Tuesday, they prepared for the worst but gave it their best try. Eventually, after the use of a calf-puller, a live calf emerged. One thing was different though — he had six limbs.

The farm's veterinarian believes the limbs are from a twin that fused during gestation. The limbs, while not fully reaching the ground, are connected to the spinal cord which makes an operation impossible. The family fittingly named the calf Mr. Miracle. The veterinarian also says he expects Mr. Miracle to live a long, healthy life. Watch this video below from a local news station about the miracle calf!

Visit msnbc.com for breaking news, world news, and news about the economy

Raw milk reason prevails just in time

2010-05-21T08:10:00.000-05:00

Political reason and common sense, which were nowhere to be seen in recent months as a proposal to allow dairy producers in Wisconsin to sell unpasteurized raw milk directly to consumers successfully worked its way through both the State Senate and Legislature, surfaced just in time when Governor Jim Doyle vetoed the measure on Wednesday.

Unfortunately, they might never have surfaced at all if not for the intense solidarity of opposition from dairy producers, processors, and animal and human health groups. Doyle had previously indicated he would sign the bill into law, despite overwhelming scientific evidence that it poses potentially fatal health risk to some people.

Both National Milk Producers Federation and the International Dairy Foods Association were among the loudest opponents of the idea.

“It is terribly ironic that, at a time when [federal] lawmakers are trying to pass a major food safety bill to protect consumers from food borne illnesses, states like Wisconsin are going the opposite direction,” said Jerry Kozak, CEO of NMPF.

Connie Tipton, President and CEO of IDFA, agreed. “There is absolutely no science behind the claims of raw milk supporters that pasteurization does anything other than make safer a potentially hazardous product.” She added that while raw milk accounts for less than one percent of fluid milk consumption, it is responsible for over 70 percent of food borne illness caused by dairy products.

According to the U.S. Food and Drug Administration, between 1998 and 2008 consumption of raw milk in the U.S. was responsible for 1,614 documented cases of illness, 187 hospitalizations, and two fatalities. FDA has also issued multiple public warnings advising consumers to not drink raw milk.

Practice safe farming this summer

2010-05-20T08:05:00.000-05:00

Are you ready for the kids to come running off the school bus on the last day of school and right into the farm yard? Summer vacation for children raised on farms is usually filled with memory-making activities and surely no boredom. We remember the days of playing Little House on the Prairie with neighborhood friends. That, of course, included fetching water the old-fashioned way in nearby puddles and streams and maybe making a fort in the hay loft. But for one family, fond memories like that are now tarnished. We were deeply saddened to hear of one New Hampshire 11-year-old boy who tragically died two days after a silage pile face collapsed on him in late April. These stories should be a wake-up call to all of us. Take proactive steps now to avoid another tragedy like this.
In a recent weekly update from Western United Dairyman, we found some great key factors to prevent accidental injuries and deaths, in addition to preventing liability from accidents. These key factors include:

1. Access control: Dairy farms should have a policy for visitors that requires them to check in with a member of the staff upon arrival instead of giving them free-rein of the farm. If a visitor is near a hazard like a hay stack or feed pile, it should be noted to the visitor.

2. Posting: When biosecurity is a concern (places like parlors, hospital barns, and maternity areas), these areas should be posted for no access unless by authorized personnel. Manure lagoons or pits should be posted with warning signs, and roadways should have signs indicating truck and equipment traffic.

3. Rules and regulations: All employees should be trained on access policies and be instructed never to bring children or other nonemployees to the farm.

4. Housing agreements and rules: If employees live on the premise, housing agreements that are written and signed should be completed. Children should not be allowed to play in roadways or working areas of the farm and dogs should not be allowed to roam free.

5. Compliance : State OSHA compliance can reduce employee injuries by improving safety programs. If you're unsure about regulations in your area or if your farm needs to be in compliance, contact your local OSHA office.

Milk production keeps climbing

2010-05-19T07:55:00.000-05:00

April milk production in the top 23 dairy states was up 1.7 percent over last year, according to the USDA NASS Milk Production report released yesterday. This rise in milk production surprised many industry observers. The combination of higher cull cow prices and low milk prices was expected to result in a larger drop in cow numbers and, perhaps, a drop in milk output.

This was the second month this year that milk production was above year-earlier levels. March milk output in the top 23 states was up 0.9 percent.

In the top states, there were 155,000 fewer cows on farms in April than a year ago. However, there were 3,000 more cows in those states than in March.

Nationally, there were 186,000 fewer cows (-2 percent) on farms when compared to a year ago. However, there has been a 14,000-cow gain in the U.S. dairy herd since last December . . . 9.096 million head versus 9.082 million.

Milk per cow is the big story. Across the nation, April milk output per cow was up 3.5 percent from last year and averaged more than 60 pounds per day for the first time in history.

After being down for a number of months, milk production in California was up very slightly in April. Wisconsin milk production shot up 6.2 percent, mostly on a big, 5.8 percent jump in the amount of milk produced per cow. There were 5,000 more cows (+0.4 percent) on Wisconsin dairy farms.

Milk production in New York (+1.7 percent), Idaho (+3.3), and Pennsylvania (+2.8) was up. Both Texas (-2.2) and New Mexico (-1.7) were down.

How bulk tanks are made

2010-05-18T08:05:00.000-05:00

Think back to those wonder-filled days of childhood — the days when a walk around your family's farm was filled with shock and awe of everything you stumbled upon. That large, shiny stainless steel tank in the milk house was likely no exception. Channeling the inner youth of our 125-year magazine, we wanted to know how those shiny dairy farm hood ornaments are made. We recently visited Boumatic's manufacturing facility in Madison, Wis., where we were treated to a tour of how milk bulk tanks come to life. While the entire process isn't included in the below video, one very cool step is. To see more pictures of the whole process, see our May 25 buildings and equipment issue, page 392. There, on the Young Dairymen page, you'll find the answer to the question, "How are bulk tanks made?"

What you're seeing in the video: In this early step in the process, the inner of two layers is being formed. You'll notice that the inside looks white — that's because during most of the manufacturing process the portion which will come in contact with milk is protected by a very thin layer of plastic. This protects the steel from scratches and contamination. The stainless steel moves through very heavy rollers to work its way up into a cylinder shape. At the end of the video, you'll notice one employee cleaning the edges and preparing them to be welded together.

Despite lower feed and energy costs, dairy farm losses mount

2010-05-17T11:55:00.019-05:00

Now that the tax filing season is complete, farm accounting reports are beginning to be compiled and distributed to the dairy world. Those reports only quantify what we already know, 2009's losses were much higher than the previous year.

One of the early reports published was completed by Frazier and Frost, a certified public accounting firm. Their clients in California, Arizona, Idaho, New Mexico, and the Texas Panhandle produce over 4.2 billion pounds of milk with some 231,000 cows . . . that's about 3 percent of the U.S. market.

California's San Joaquin Valley dairy farms were hit the hardest with losses of $962 per cow in 2009. At $585 per head, New Mexico farms lost the least amount of money for those tracked by the accounting firm. Losses for their dairy farm clients went up between $426 in Southern California to $1,284 per head in Idaho, compared to the previous year. The average was $860 for the five states. On a per-hundredweight basis, losses ranged from San Joaquin's $4.43 per 100 pounds of shipped milk to New Mexico's $3.05.

Feed costs actually fell for all regions except the Texas Panhandle where feed costs rose $276 over 2008. Among all regions, feed prices fell $476 in Southern California; $244 in Kern County; $156 in New Mexico; $143 in the San Joaquin Valley; $125 in Arizona; and $41 in Idaho.

As a result of negative cash flows, milk production fell in most regions, compared to a year earlier: 4.9 pounds in Southern California; 1.6 pounds in Idaho; 1 pound in California's Kern County; 0.5 pound in the San Joaquin Valley, and 0.3 pound in New Mexico. Milk production went up 1.3 pounds in Arizona and 1.9 pounds in the Texas Panhandle.

Low pay prices also directly impacted replacement prices. The actual 2009 replacement prices (with the drop from the previous year's price in parenthesis) are: Kern County, $1,505 ($295); Southern California, $1,490 ($860); Texas Panhandle, $1,448 ($377); New Mexico $1,378, ($225); Arizona, $1,377 ($810); San Joaquin Valley, $1,330 ($517); and Idaho, $1,290 ($365).

Click here to download a complete copy of the report.

Colorful trend is underway in U.S. dairy herds

2010-05-14T07:55:00.000-05:00

A growing A.I. trend is literally changing the look of the U.S. dairy industry: Herds are becoming more colorful.

Black and white still dominates the landscape, but a gradual shift toward color is clearly underway. Breeding Holstein females to colored breed sires is a trend that has established a strong foothold on many dairies, and the resulting offspring already account for a sizeable amount of the nation’s total milk production.

In her presentation at the recent High Plains Dairy Conference in Amarillo, Texas, American Jersey Cattle Association director of development Cherie Bayer said in 2009 an estimated 6.6 percent of dairy cows in the U.S. were identified as being in herds that were mixed. That number was higher than every breed except Holsteins and was 135 percent more than in 2000.

What’s behind the cows with color trend? Bayer says the answer is easy: Multiple Component Milk Pricing adopted in Federal Marketing Orders in January 2000. “Dairy owners were looking at how they were going to be paid under that new system and were anticipating that increasing their production of milkfat and protein would increase their pay price,” she explains.

Bayer says while there is no way to know exactly how many crossbred animals are out there, “we know it’s a lot and we know it’s growing. Crossbreds are a significant component of the total U.S. dairy herd today, and we expect continued growth in their numbers based upon how semen sales by breed have changed over the past decade.”

Because the largest segment of growth in dairy product sales continues to be in manufactured products, more demand for milk with higher solids and protein is a trend that seems likely to continue.

Reading the milk price/feed cost tea leaves

2010-05-13T07:55:00.000-05:00

Two releases in recent days help shed light on the milk price and feed cost scene in the months ahead. USDA's monthly World Agricultural Supply and Demand Estimates and USDA's Crop Production were released earlier this week.

The WASDE report provided USDA's first look at 2011 milk supply, demand, and prices. Milk production for 2011 is forecast to go up as producers respond to improving returns. Cow numbers are expected to be lower than this year, according to the USDA, but the rate of decline is expected to slow. However, this prediction is interesting as cow numbers have been up slightly so far this year. Milk per cow, which has driven up total production this year, is expected to grow by about the same amount next year.

We could see declining stocks of dairy products as we move toward 2011, according to the agency. Both domestic and export demand should rise as economies here and abroad strengthen. However, we also might see a slight growth in imports.

Class III prices are forecast to be higher than 2010. USDA forecasts a Class III midpoint for 2011 of $14.75 with a range of between $14.15 and $15.25. The midpoint forecast for the All-Milk Price in 2011 is $16.20 with a range of between $15.70 and $16.70.

Corn futures rose after USDA released forecasts of inventory levels. Tuesday, corn futures shot up nearly 7 cents a bushel to settle at nearly $3.70. According to the Wall Street Journal, traders at the CBOT were looking at greater corn demand for export as well as for ethanol production. However, the corn crop appears to be off to a great start. Eighty-one percent of the corn is in the ground and 39 percent is emerged. Last year at this time, only 13 percent was emerged and the five-year average is 21 percent emerged.

DMI's quick-serve partnerships for long-term dairy growth

2010-05-12T09:01:00.008-05:00

Last week we reported the recent jump in sales for pizza giant Domino's after launching its new recipe for pizza which coincidentally (or not so coincidentally) included 50 percent more cheese. Jim Montel, vice president of Strategic Partnerships at Dairy Management, Inc., said that a strong working relationship with Domino's was an important part of this recent recipe revamp. Domino's isn't the only one that DMI works closely with though.

McDonald's, the world's largest quick-serve food retailer has a long-standing relationship with checkoff programs. It is paying off, too. Have you noticed what McDonald's has been promoting lately? Besides the cheesy Angus burger launched last year, the new McCafe coffees contain plenty of milk. Montel affectionately referred to them as "coffee flavored milk" as they contain up to 80 percent milk. "Much of what McDonald's is promoting right now is dairy focused," said Montel. Besides the Angus cheeseburgers and McCafe, McDonald's is launching frappes and smoothies this summer in all 14,000 locations, in addition to creating improved shakes that will be served in clear plastic containers with whipped cream. Montel also pointed to the considerable dairy-focused advertising done by McDonald's during the Winter Olympics as a sign that they are committed to promoting these dairy-heavy foods.

Partnerships like these are certainly proving to be efficient uses of our checkoff dollars. That's the goal of the relationships says Montel who remarks that they remain focused on long-term growth of dairy product use. As a result, competitors are launching similar products to go head-to-head with McDonald's, for example. Wendy's large Bacon Blue burger that is covered with blue cheese crumbles launched after the Angus burgers certainly may fit into that category.

Working off the farm, to back on the farm

2010-05-11T08:05:00.001-05:00

Judging by the mail you've received lately, you'll know that graduation season is upon us. Yes, mortar boards and tassels are being thrown everywhere this month. We've picked up on that graduation theme and are telling you about some outstanding young adults who have taken the brave leap to get into the dairy business shortly after graduation. If you watched our video post last week, we told you about one young woman, who headed home to manage her family's farm in Michigan after college. This week, we're visiting with Greg Nye of Mountain View Dairy in Delta, Utah, who is an operations manager at the Nye's family farm. Greg didn't start out wanting to work on the family farm, but he found his way back there after educational and work experiences he had across the country shortly after graduating.
Also, don't forget to visit Bonnie's Brush with Hoard's today for a new video post!

Stray voltage award Wisconsin's largest for a dairy farm

2010-05-10T11:28:00.009-05:00

Stray voltage by its very name and nature is a difficult entity to trace. And when it is suspected of causing harm on a dairy, it can be a testy condition to eliminate. Such was the case at Bollant Farms in southwest Wisconsin. According to published reports, the Bollant family dairy farm had not one, but two separate stray voltage issues.

The family first noticed a problem in 2002 when cows began acting irritable and kicked off milking machine units more frequently than the average cow. Other problems arose including dead and deformed calves. The family experienced large losses of both calves and cows. Those complications, the plaintiffs argued, occurred when their electric provider replaced copper power lines with single-phase. The problem was pinpointed by consultants, and then it went away when three-phase power came to that region of Grant County.

The plainiffs then argued that the problem resurfaced when the electric provider installed an automatic meter-reading device. According to reports, the device was not properly installed, and, when it was fixed some three years later, the herd's production and health started to improve.

After listening to all the testimony, the jury ruled in favor of the plaintiffs and awarded them $5 million in damages. Of that money, $3.75 million was for economic losses, while $1.25 million was for pain and suffering.

To read more, click on the title of this blog to read a full report published in the Grant County Herald Independent.

Air quality and cows: What goes in could be the real problem

2010-05-07T07:55:00.000-05:00

Air quality researchers in California’s San Joaquin Valley got an unexpected surprise recently when they accidentally discovered that what comes out of cows may not deserve nearly as much blame for the area’s high ozone levels as it's been getting.

Instead, a bigger culprit may be what goes into them.

“Feed sources might be more important than all of the things we’ve been caring about in the past,” said Michael Kleeman, a professor in the University of California, Davis Department of Civil & Environmental Engineering. Kleeman heads a team of researchers who for four years has been studying ozone levels in the valley as it struggles to meet federally-mandated reductions. Significant control measures have been implemented, yet ozone levels remain largely unchanged.

Over the years, blame has shifted from one end of cows to the other, then to uncovered manure lagoons. Now, according to Kleeman’s team, a bigger “smoking gun” for harmful air emissions is fermenting silage. Specifically, silage that is not stored in air-tight bags.

Action on the researcher’s findings appeared to have been taken very seriously. Associated Press reports that the executive director of the San Joaquin Valley Air Pollution Control District is planning to ask its board in June to require dairies to bag their silage.

Last year's price drop had big dollar impact

2010-05-06T09:00:00.000-05:00

There was a 30 percent drop in the value of milk marketed by dairy farmers last year, according to the USDA-NASS publication, Milk Production, Disposition, and Income released last week. That was a drop of more than $10.5 billion. The value of milk and cream sold in 2008 was $34.85 billion. The number for 2009 was $24.34 billion. The value in 2008 was down just slightly from the $35.48 billion for 2007.

Looking at the top dairy states, 2009 cash receipts from milk marketed (2008 values in parentheses) were California, $4.54 billion ($6.92 billion); Wisconsin, $3.27 billion ($4.57 billion); New York, $1.68 billion ($2.38 billion); Idaho, $1.43 billion ($2.1 billion); and Pennsylvania, $1.51 billion ($2.1 billion).

During 2009, the average All-Milk Price, according to the report, was $12.93 per hundredweight. That was down $5.52 per hundredweight from 2008's $18.45.

Ten states reported a manufacturing milk price. They were California, Illinois, Iowa, Minnesota, Missouri, North Dakota, Ohio, South Dakota, Wisconsin, and Wyoming. The average manufacturing milk price was $12.03 per hundredweight, and the average fluid grade price was $12.94. Ninety-eight percent of the milk supply last year was fluid grade.

The average fat test of milk marketed in 2009 was 3.67. It was 3.68 in both 2007 and 2008.

Total milk production last year was 189.3 billion pounds. However, when you take out milk fed to calves, that produced by institutional herds, and that sold directly to consumers, actual milk

marketings for 2009 were 188.3 billion pounds. That compares to 188.9 billion pounds marketed the year before.

Domino's Pizza sales soar with new recipe

2010-05-05T08:30:00.010-05:00

Domino's is a friend of ours. Last year, the well-known delivery pizza chain launched and heavily promoted (with some help from the check-off) their American Legends pizza line which came with 30 percent more cheese. This year, the chain took an honest look at its longtime recipe for making pizzas and decided to do a revamp. They even publicized real comments from customers that compared their crust to cardboard and sauce to ketchup. Domino's new reformulated pizza included a re-do of the crust, sauce, and even cheese. The pizzas now come with 100 percent real mozzarella cheese flavored with just a hint of provolone . The sauce is kicked up with spicy red pepper, and the crust has a new garlic butter flavor. Jim Montel, Vice President of Strategic Partnerships at DMI says that the new pizza utilizes 50 percent more cheese than the previous recipe.

Just this morning, USA Today is reporting a "historic leap" in sales for Domino's. In just four months, sales climbed 14.3 percent. The company's CEO J. Patrick Doyle says that jump ranks as one of the largest quarterly same-store sales jumps ever recorded by a fast-food chain — all this at a time when the pizza delivery business is taking a 3 percent hit from the recent recession. An impressive 28 percent of all cheese is consumed on pizza, and 43 percent of milk is used to make cheese. We're hoping this jump in sales equates to more cheese consumption — it should. From the sales end, Montel reports that after discussing with one of the country's major pizza cheese suppliers, in the fourth quarter of 2009, sales were up a remarkable 48 percent.

Back to the farm

2010-05-03T16:39:00.006-05:00

We're hearing about more and more young adults heading back to the farm. No doubt dairy's economic woes in recent years were on their mind. However, there is just something about working with cows and family every day and seeing the family farm continue its legacy. Recently, we visited with Aubrey Lettinga of Walnutdale Farms in Michigan about her choice to return to her family's farm shortly after graduation from Michigan State.

Bonnie's Brush with Hoard's has a new video today. This time, we're continuing our visit with former magazine Art Director James Baird. Today he'll share with us more about the cows in his original artwork.

Interactive product search now available

2010-05-03T14:30:00.001-05:00

World Dairy Expo just launched an interactive tool on its website that allows users to search for exhibitors by product category, keyword, or even booth location. The search feature allows dairy enthusiasts to search through the 750-plus trade show participants that exhibit at the show. Among the many options are:

• The opportunity to see the complete list of World Dairy Expo exhibitors by product category, booth location, and web address.

• The ability to go through the Exhibition Hall, Outdoor Trade Mall, Arena Building, Coliseum, and Grazing Pavilion, and scroll over booth location and find company addresses, phone numbers, and web addresses.

• The capability to enter specific products and search all companies at the show that sell a specific product. For example, entering the word "rubber mats" revealed eight companies that sell rubber mats. Meanwhile, entering the word "rubber" displayed 17 companies selling rubber products.

To search the well-designed site for yourself, click on the title of this blog.

Arizona immigration law: no effect on dairies so far

2010-04-30T07:55:00.000-05:00

The firestorm of public opinion that has erupted since Arizona Governor Jan Brewer signed her state’s controversial new immigration law a week ago appears to be occurring everywhere but in Arizona.

Hollywood celebrities are disgusted, convention business is canceling, and San Francisco politicians are urging a total boycott, but things are much different in Arizona. For one thing, Brewer’s approval rating in the first public opinion poll after signing the bill skyrocketed from 40 percent to 56 percent. Also, lawmakers in at least 10 different states have either expressed support for some or all of the Arizona law or are outright considering similar legislation in their own states.

On Arizona dairies, meanwhile, the handful of producers we spoke to said not a single thing seems to have changed at their places. Employees are still showing up for work, cows are still getting fed and milked, and no one has come to them expressing any concern. All of them agreed that the situation is very much business as usual.

Most said they believe a degree of political career building by a few local officials is at work behind the legislation and wonder whether any enforcement will ever actually occur, given the potential feeding frenzy lawyers could have arguing civil rights violation claims against the state and/or counties.

In addition, they wonder if arresting illegal immigrants is actually the objective of the bill at all. Instead, they believe its passage was intended to create enough public furor and debate to light a fire under the U.S. Congress to finally make immigration reform a top legislative priority.

This blog has moved

2010-04-29T20:18:00.001-05:00

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Making the corn crop wager at the Hoard Farm

2010-04-29T08:36:00.000-05:00

Trying to guess the corn market in the months ahead was among the topics when the financial management team for the Hoard's Dairyman Farm met yesterday. The good news was that our cows just finished eating up the $4.69 per bushel corn that we had contracted for over a year ago. When corn was between $6 and $7, booking corn at $4.69 seemed like a good idea. And, of course, it might have been. Now, we are feeding some banked corn which will improve our cash flow picture by about $10,000 per month.

That still leaves us looking ahead beyond this fall to what our corn and other feed needs will be for the next five quarters. In the past few days, corn futures have been on a roller coaster. Corn futures prices for May and July at the CBOT dropped 5 to 6 cents Tuesday following Monday's crop progress report. By April 25, about half of the corn was planted in the 18 states that grow about 92 percent of the corn. The five-year average is 22 percent planted. Never before has so much corn been planted so early.

Just about the time you think it might be good to lock in some corn, the market shifts the other way. Yesterday, China confirmed a rumored corn purchase of 115,000 metric tons, and the market responded accordingly. Corn futures ended up sharply.

We didn't make any decisions on booking corn (energy) needs at our meeting. But we did work on the information we needed to have in place when it comes time to take some action.

Through the feed management software we use, we have a running inventory of supplies for our various feeds. Working with our feed man, Matt Kooiman of Vita Plus, we will make sure our inventory numbers feel right. Then we will begin to project what our hay silage and corn silage needs are for the next 15 months. Knowing our corn silage needs will give us an idea of how many of our corn acres will be going for silage and how many acres will be left to combine. Then we will have an idea about how much corn and other energy feeds we will need and can begin to look at locking in some supplies.

We also will be looking at our cost of growing and storing corn silage and hay silage on a per-ton and per-acre basis. Will have seed, fertilizer, herbicide/pesticide, and custom field cost by crop. Without knowing that, we are putting much in the dark on what purchased ingredients are worth to us.

Finally, forage is a big part of the feed supply puzzle, of course. We have an abundance of hay silage in bags because we were not able to enlarge our herd as much as we wanted, and we had a good hay year. In fact, we have been selling hay silage to a couple of dairies in the area. And, while we are behind normal for moisture so far this year, the hay looks good, and first cutting will come early . . . perhaps as soon as May 20 is our guess.

In another month or so, we will blog about what position we have taken on energy and protein feeds . . . if any.

Genomics rapidly evolving; unanswered questions remain

2010-04-28T16:15:00.001-05:00

The latest USDA genetic evaluations ushered in numerous changes just three months after January's major base change. Among them were imputed female evaluations and cow evaluation adjustments which put genomically tested female evaluations on a more even playing field with genomically tested male counterparts.

While all these changes might have been scientifically sound, they came as a surprise to most breeders since there was little advance notice regarding the changes prior to the April release. The lack of notice combined with the fact that the majority of genomically tested females dropped due to the corrections caused a great deal of frustration for owners of elite cattle. On top of that, cow adjustments created a multiple currency system which now sees genomically tested cows on a different genetic scale than those with traditional genetic evaluations. In our May 10 issue, AIPL scientists answer some questions regarding imputed proofs and cow adjustments. We are attaching a PDF of that article to help answer these questions.
hdm-2010-05-10-0-343.pdf

At the latest Council on Dairy Cattle Breeding meeting in Baltimore, Md., on April 27 and 28, genomics continued to be a leading topic of conversation. Information shared with industry partners included:

• Full sibling do not share equal amount of genes from parents. In the past, it was thought that 50 percent of the genes came from the dam and 50 percent came from the sire. Genomic testing tells us that the number of genes in common between full siblings can range from 35 to 65 percent.

• The genomic evaluations for bulls with 99 percent reliability will change over time because scientists are learning more about the relationships within the Brown Swiss, Holstein, and Jersey breeds every month as more genomic data comes into the system.

• There are 50,119 animals with genotypes as of April 2010.

•North America is no longer in the lead for accuracy of genomic evaluations. A group of European countries (Germany, Holland, France, and Scandinavia — Denmark, Sweden, and Finland) have each contributed 4,000 genotypes for Holstein bulls to create a database of some 16,000 animals. The sharing system has created higher reliabilities — 5 percent higher — than those in the U.S. and Canada. German reliabilities are even a bit higher than other European countries because they tested an additional 1,000 bulls.

• The cow adjustments allowed genomically tested females to contribute to young bull evaluations. In Holsteins, the improvement in reliability went up 2.6 to 3.1 percent for yield traits. The improvement was greater for Jerseys at 7.7 to 9.4 percent. No adjustments were made in the Brown Swiss breed due to smaller population size.

To view the actual presentations from USDA scientists, click on the title to this blog and it will take you to the AIPL presentations.

Lessons learned from digester dairies

2010-04-27T14:29:00.003-05:00

Green Bay, Wis., is the site of the 5th national AgSTAR conference. For those of you unfamiliar with AgSTAR, it is a joint program between the EPA, USDA, and the U.S. Department of Energy aimed at encouraging the use of methane recovery systems on America's farms. Their website has plenty of information on methane digestion, so we'd encourage you to look at it if you have the chance. The event started yesterday and will continue into tomorrow. It is being attended by over 200 people mostly from the methane digestion industry. While Green Bay, Wis., may not seem like a central location to host a national conference, it is conveniently located in the state with the most on-farm digesters — Wisconsin. Yesterday, conference participants participated in an optional tour of two farms currently involved in methane digestion: Green Valley Dairy in Krakow, Wis., and Pagel's Ponderosa Dairy, LLC, in Kewaunee, Wis.

In an afternoon session titled "Lessons learned," representatives from those two toured dairies along with others from Chaseburg Organic Dairy which is in the building phase of digester implementation and Vir-Clar Farms which has been operating a digester for several years. Farmers shared their first-hand accounts of what it is like entering the methane digestion business.

John Pagel of Pagel's Pondersa Dairy realized the crowd consisted of people in industries not traditionally tied to dairy (most are in the energy business) and took a moment to educate the crowd about the dairy industry's extreme challenges in the last 18 months. Unfortunately, many in the crowd were not aware.

Each farm representative took 10 minutes to share their experiences. Each one of them were pleased that they had added methane digestion to their dairy. Gary Boyke of Vir-Clar Farms in Fond du Lac, Wis., even said that in 2009, one of the hardest years ever for the dairy industry, "my digester was the only part of my business that made money." He then added, "Am I getting rich on it? No. But I am also not losing money." And while many of the conference's attendees had their eyes focused on energy production, none of the farms said that was why they built and continue to operate a methane digester. "We did it for public acceptance (of our large farm) primarily, and odor reduction," said John Pagel. Gary Boyke shared many of the same sentiments. "It was all worth it when someone came up to me and said 'Oh, you operate that eco-friendly dairy over by the lake, don't you?' Those are things that you can't put a price on," Boyke said.

We'd be lying though if we said these digester farms didn't come without challenges (and some headaches along the way.) Melissa Van Ornum of GHD, Inc., is a methane digestion system developer and reminded attendees to keep realistic expectations of these systems and understand that each digester will be very different and have its own set of challenges.

USDA announces new initiative to improve agricultural energy efficiency

2010-04-26T13:22:00.000-05:00

Agriculture Secretary Tom Vilsack announced last week that $2 million will be made available to dairy, beef, poultry, and swine producers for energy evaluations. The new agriculture energy conservation and efficiency initiative, announced in conjunction with a meeting of the Innovation Center for U.S. Dairy and the USDA, will provide funds for on-farm energy audits this year and will cover approximately 1,000 energy evaluations in 29 states. Funding for the program is being made possible through the Natural Resources Conservation Service's Environmental Quality Incentives Program (EQIP). According to the Innovation Center for U.S. Dairy, the Natural Resources Conservation Service conducted a survey of its state offices to determine which states were prepared to participate in the program. The 29 states announced by USDA reflect those states that indicated an ability to participate in this first phase. To find out if your state is one of the 29, click here.

"In these tough economic times, anything we can do to cut energy costs will improve our bottom line and help keep producers in business," said Richard Clauss, vice-chair of the Innovation Center for U.S. Dairy and a dairy producer from Hilmar, Calif.

Producers will select an independent, certified consultant who will conduct the audits. Energy savings recommendations identified in the evaluations may be implemented by producers at their discretion. When looking at energy on your farm, the first step is to determine where energy can be conserved, so be sure to not skip ahead to large, capital intensive renewable energy projects.

The U.S. dairy industry has committed to reducing greenhouse gas emissions by 25 percent by 2020. Energy efficiency is one way we can work towards achieving this target. Contact your local utility to find out if it participates in assistance programs for updating equipment for greater energy efficiency.

Cow with gas mask irks Californians

2010-04-24T07:55:00.000-05:00

People in the California dairy industry were understandably upset when it was discovered that there was a large model cow wearing a gas mask in an exhibit at the Monterey Bay Acquarium. According to Western United Dairymen's newsletter, Weekly Update, WUD field rep Dennis Miguel visited the exhibit and reported what he saw.

The exhibit, which focused on global warming, was titled Hot Pink Flamingos: Stories of Hope in a Changing Sea. The model cow wearing a gas mask was accompanied by a recording: "Buurp! I can't believe I'm saying this, but what the world needs now is less methane, and that means fewer cows." The exhibit also stated, according to the WUD newsletter, "The best way to reduce methane is to eat less beef and drink less milk."

Western United reports that the exhibit sparked a controversy that resulted in creation of a Facebook Fan Page called "People avoiding Monterey Bay Acquarium until they take the cow down!" The page had 2,550 fans when the April 16 WUD newsletter went to press.

The one positive aspect of the exhibit was that it pointed out that methane from cow manure can be used to generate electricity.

Stan Andre, CEO of the California Milk Advisory Board, in a letter to the Monterey Herald, explained that the dairy industry has reduced the carbon footprint of dairy products by 63 percent over the past 60 years. He also spelled out the economic impact that the dairy industry has in California.

In its blog, the acquarium defended the cow and gas mask as a way "to dramatize the point." And it didn't seem to indicate that the exhibit would be changed.

Another California cow courtship is underway

2010-04-23T07:55:00.004-05:00

Big dairies are big business, so big that it only takes a few of them to have a huge financial impact on an area’s economy.

While California politicians and regulators appear to have grown deaf, dumb, and blind to this reality, their counterparts elsewhere apparently “get it” in a big way. Earlier this month the Associated Press even reported that several states are once again openly courting California dairies to move to their more hospitable regulatory environments.

This is by no means something new. Throughout the 1970s, ‘80s, and ‘90s out-of-state Economic Development Corporations almost lined up to visit southern California and hold luncheons or dinners to pitch the virtues and opportunities of their areas. Off the top of our head we can recall Utah, Texas, Idaho, New Mexico, Kansas, Oklahoma, Missouri, South Dakota, and Iowa.

This time the message is different. Instead of being about low feed costs or quality of life, the focus is on less red tape and a willingness to work with producers in the permitting process. Besides being a breath of fresh air to California dairy owners, this message is also attractive to the states. Some estimates peg the local economic impact of a new dairy as high as $1,500 per cow. For a modest 2,000-cow dairy, that means a $30 million ripple effect – a gigantic number that’s virtually impossible for a rural community to duplicate from another single source.

Urban encroachment is an integral part of California’s dairy history. Regulating cows in new and more stringent ways seems destined to be a neverending part of its future. Inevitably, every dairy in the state is likely to reach a point where continuing to do business there simply becomes untenable.

Milk production was up again

2010-04-22T07:55:00.000-05:00

There was a 0.9 percent rise in milk production during March in the top 23 dairy states, according to USDA's Milk Production report released earlier this week. That was the second month in a row that milk production was above year-earlier levels despite the cost-price squeeze that's affecting dairy operations across the nation. USDA revised upward its estimate of the February rise to 0.3 percent from the original report of plus 0.1 percent.

The March jump of 0.9 percent in the top states came from a 1.9 percent drop in cow numbers and a 2.8 percent rise in milk per cow. There were 162,000 fewer cows in the 23 states than there were last March. Nationally, there were an estimated 193,000 fewer cows on dairy farms this March with the national dairy herd estimated at 9.09 million head.

California was down 0.7 percent in milk during March. Milk per cow was up 2.6 percent, but there were 63,000 fewer cows in the Golden State than a year ago, a 3.5 percent drop.

Wisconsin had the big jump with milk being up 6.3 percent in March. Nearly all of that gain came from the 6 percent rise in milk produced per cow.

The Number 3 dairy state, New York, was up 0.2 percent in milk, while Number 4, Idaho, was up 3 percent.

Other notable changes included Arizona which was down 7 percent in milk with 10 percent (19,000) fewer cows. Colorado was down 8.3 percent in milk with 9.4 percent (12,000) fewer cows. Missouri was down 8.4 percent in milk with 6.5 percent (7,000) fewer cows. Washington shot up 6.3 percent in milk with 4.2 percent (10,000) more cows and 3.6 percent more milk per cow.

Training our industry's leaders

2010-04-20T08:52:00.006-05:00

Advocacy for the dairy industry and agriculture isn't always easy. It takes courage to stand up to what might not be the popular majority. But, one program for dairy industry enthusiasts is teaching the skills necessary to become a positive advocate for our way of life. The Young Dairy Leaders Institute (YDLI) is a nationally recognized three-phase leader and communication skills development program for young adults (ages 22 to 45) working in the dairy industry with all breeds of cattle. You can learn more about how the three-phase program works by visiting their website. And you can apply to become apart of the program's next class by applying before August 2, 2010. Patti Hurtgen of Hoard's Dairyman recently sat down with Brad Scott, a YDLI graduate and California dairy producer, to ask him about his experiences with the program.

Don't forget! Today is Tuesday, so we've updated Bonnie's Brush with Hoard's.

Embryo and semen thief on the loose

2010-04-19T10:15:00.000-05:00

If continued low milk prices weren't depressing enough, there is now an embryo and semen thief in our midst. Based on information that Hoard's Dairyman has learned from four of the five victims, the thief or thieves know exactly what they are looking for — high-priced semen and embryos. At one farm, the thief even passed on the opportunity to take a brand new computer and a pair of new I-pods to take a five-finger discount on a new semen tank filled with high-end semen.

All five victims are prominent registered Holstein herds that regularly open their doors for tours and actively market genetics. Even though many of the thefts took place over Easter weekend, some unsuspecting herd owners are just learning that they were hit because the crooks didn't always take nitrogen storage tanks at all farms — in some cases canisters were pulled from tanks. At one Illinois herd, the herd owners just learned embryos were stolen last Friday when they went to implant eggs.

Talking to some of the victims, it is clear the robber or robbers know the herd owners' patterns. It is suspected that two of the herds were hit while the families went to Easter church services. One herd owner went on to say it is so frustrating that this crime took place, "One of my family members is in the barn all but six hours of the day." That herd owner now has locks on his office doors and a security camera in place.

Since this crime occurred over state lines, it is a federal case. However, catching the crook will not be easy since frozen semen and embryos are difficult to track. The thieves could move the stolen semen quite easily by peddling it or using it on their own cattle. The embryos are a different story as North American herdbooks and most in Europe require genetic testing before registration can occur. Meanwhile, countries outside these regions seldom record lineage which means embryos could be headed to those markets if the suspects can smuggle them out of the country without proper health papers.

The herds involved in this case are scattered across Wisconsin's Jefferson, Rock, and Waushara Counties; Kane and Stephenson Counties in Illinois. In some cases, there are over 200 miles between thefts. These victimized herd owners urge others to lock their tanks and consider installing security cameras. And, if you're victimized, call authorities so these crooks can be brought to justice.

Eye-popping beef prices should last a while

2010-04-16T07:55:00.000-05:00

They’re black and white (or brown) on the outside, but these days there’s also a golden glow to cull dairy cows.

Even as milk prices continue to slip, beef prices have been moving steadily higher most of the year, so much so that culling lists today may have never been a source of as much income for dairy producers. Beef industry forecasts and USDA say it’s a situation that should last through summer.

Continued tight supplies are part of what’s behind the price run-up, and futures prices even briefly topped the magic $1 per pound mark during trading on April 9. Ample supplies and modestly lower prices are another reason. The trickle-down effect on cull dairy cow prices has been welcome news for producers during what has been a disappointing financial year so far.

It wasn’t so long ago that springers cost $2,000+ and beef prices were in the high 30s (cents per pound), making the beef-to-replacement-heifer ratio insanely high at nearly 4:1. But now, with beef prices beginning to creep into the low 70s in some areas and heifers costing about $1,300, the ratio is getting close to 1:1.

In fact, sometimes it’s even less. Earlier this week a southern California dairyman showed us his beef settlement sheet that was full of $1,000+ prices for individual cows and sprinkled with several in the $1,200s, $1,300s, and even a couple in the $1,400s.

With prices like those there may never be a better time for dairy producers to clear out problems from their herds and upgrade to newer genetics.

Midwest policy positions vary widely

2010-04-15T07:55:00.000-05:00

Interest in some type of policy to control milk production or manage milk supply growth continues to gather steam. Even some people and some organizations that have been categorically opposed to the concept at least are keeping a more open mind.

However, a panel discussion on dairy policy options at last week's Wisconsin/Minnesota Dairy Policy Conference revealed that there is a wide range of opinions on policy options. Here is a brief report of presentations made at the conference which was co-sponsored by the Cooperative Network and the Universities of Wisconsin and Minnesota.

According to Ed Welch, general manager of AMPI, the co-op favors supply management, but no specific plan. It is not anxious to throw out the dairy price support system. The co-op liked MILC and has not supported CWT. Welch, a member of the USDA Dairy Advisory group, said that he was afraid DPIPP (the Dairy Producer Income Protection Program), being developed by National Milk Producers Federation, would be too expensive. If enacted, AMPI would say that it definitely would need to have per farm caps and payment limits.

Wisconsin Farmers Union also supports supply management, but backs no specific plan at this point, according to President Darin Von Ruden. On DPIPP, WFU would support caps and payment limits.

Wisconsin Farm Bureau supports MILC and CWT, according to President Bill Bruins. It, too, is concerned about the cost of DPIPP. WFB supports competitive pay pricing as opposed to the current product-formula pricing. It would be against any form of supply management that involves the government and prefers tax-deferred savings accounts for farmers.

Foremost Farms cooperative believes in the free market system, said Joe Weis, vice-president of member services and milk marketing. The co-op is against supply management but would look at new plans. "Deregulation is where we need to go," said Weis. "The question is how to get there from where we are." Foremost believes the dairy price support system has outlived its usefulness and that the price support program and MILC are in direct conflict with each other.

No new plans would be needed if dairy cooperatives, with 80 percent of the milk supply under their control, would just work together so processors and retailers didn't have all the power. That was the assessment of Richard Levins, professor emeritus at the University of Minnesota.

Another member of the USDA Dairy Advisory Group, Bob Wills, president of Cedar Grove Cheese, believes that there are signs of movement in dairy policy such as a willingness to eliminate the dairy price support system. He is interested in supply management but realizes how difficult it will be to get the right supply and the right milk price so the best interests of the most people would be served.

Clearly there is going to have to be a lot of give and take to reach any sort of consensus in the Midwest, let alone the nation, as a whole.

Copies of the PowerPoints from the conference are available on the Cooperative Network website.

McDonald's board urges "no" on HSUS and PETA proposals

2010-04-14T08:43:00.006-05:00

Walmart, Wendy's, Burger King, and Subway have all jumped on the cage-free egg bandwagon. Each of these food retailers has made some sort of commitment to providing food products made with eggs from chickens not raised in cages. In fact, making the boldest move of them all, Subway is now implementing a plan to go completely cage-free. But the golden arches won't jump off that cliff because everyone else has — on Friday their board of directors recommended that company shareholders vote against a proposal that would require 5 percent of the chain's eggs to be cage-free.

“As we have examined this issue over the years, we have determined that there is no agreement in the global scientific community about how to balance the advantages and disadvantages of laying hen housing systems,” was the statement from the board.

The requirement was pushed on the chain by the Humane Society of the United States (HSUS) that owns 101 shares of the company's stock. Another proposal is being made by the People for the Ethical Treatment of Animals (PETA) that owns 79 shares of the company's stock. They are advocating that McDonalds suppliers adopt Controlled Atmosphere Stunning (CAS), a slaughter method, within five years instead of Low-Voltage Electrical Stunning (LVES.) The board is urging a "no" vote on this proposal, too. Their statement on this issue was as follows:

"While the proponent presents CAS as a less cruel method than LVES, the reality is that there has not yet been consensus among animal welfare scientists that CAS is a better or more efficient form of rendering chickens insensible before slaughter."

If you'd like to read the entire details of McDonald's board response to the proposals, we've posted the document below. While these proposals would not directly impact the dairy industry, proposals that food retailers take a regulatory stand on how food is produced is certainly becoming more common. While it may be eggs today, milk may be tomorrow. It is nice to see that one major food retailer is standing up and saying no to animal welfare activists without a scientific backbone.

MCD_Proxy2010.pdf

Cal Poly, Cornell, Ohio, and UW-Madison take home top honors at Dairy Challenge

2010-04-13T09:06:00.006-05:00

America's top dairy county was host to 30 teams from Universities across North America last week at the annual North American Intercollegiate Dairy Challenge. In the end it was the home-field advantage Cal Poly along with Cornell, Ohio, and the University of Wisconsin-Madison that were honored with top platinum awards and are shown in the photo below.
Back row (L to R), Cornell University; Mike Van Amburgh, coach; Brett Feldpausch; Breanna Fulper; Chad Wall; Shane Reynolds; University of Wisconsin-Madison; Lydia Hardie; Ashley Sprengeler; Melvin Zenner; Robb Bender; David Combs, coach; Lizzy French, coach. Front row (L to R), California Polytechnic State University, Stan Henderson, coach; Brian Medeiros; Anthony Martin; Michael Wesselink; Katherine Rector; The Ohio State University; Amanda Paulhamus; Annie Eilenfeld; Heather Moff; Ryan Conklin; Maurice Eastridge, coach

The 30 four-member teams were divided and sent to four outstanding Tulare county farms to conduct a whole-farm evaluation on Friday. Team members had only a few hours to evaluate the entire farm on-site. Plenty of farm records were also made available to each team in addition to having a short amount of one-on-one time with the farm's owner. The teams critiqued and complimented each of the dairies strengths and areas with room for improvement. After an entire afternoon of work time on Friday, teams presented to the farm owner and a panel of judges for 20 minutes on Saturday. Teams were then awarded based on their presentation.

Teams receiving a Silver Award included the University of Alberta, California State University — Fresno, Kansas State University, Louisiana State University, University of Maine, North Carolina State University, University of Vermont, Washington State University and University of Wisconsin — Platteville.

Teams receiving a Gold Award included Alabama A&M University, Delaware Valley College, University of Florida, Iowa State University, University of Kentucky, University of Minnesota, Mississippi State University, Purdue University, Virginia Tech, and the University of Wisconsin-River Falls.

Teams receiving a second place Platinum Award included the University of Guelph, University of Idaho, Penn State University, and South Dakota State University.

One other remarkable aspect of the contest was the overwhelming support and presence of industry. Contest volunteers and representatives from countless dairy companies were all on hand to assist with the contest and meet contest participants. You can find a list of the Dairy Challenge's sponsors on their website. Next year's contest is set to be held in North Carolina. Be sure to watch here for the results of next year's contest in early April!

And remember, today is Tuesday! That means you can head over to the Bonnie's Brush with Hoard's blog for an update on the Foster Mothers of the Human Race painting.

Over $40,000 in scholarships available from National Dairy Shrine

2010-04-12T07:55:00.002-05:00

The National Dairy Shrine is again looking for applications for its annual awarding of scholarships. Applications must be completed by May 1, 2010. Official scholarship application award forms are available on the NDS website, www.dairyshrine.org. Available scholarships include:

• The Dairy Student Recognition Program recognizes and rewards graduating seniors planning a career related to dairy production. There will be a $1,500 cash award given to the winner, a $1,000 reward for second place, and three to seven $500 cash awards, depending on the number and quality of applicants.

• The National Dairy Shrine/Dairy Management, Inc. (DMI) Milk Marketing Scholarships are available to encourage students to pursue careers in the marketing of dairy products. The winner receives a $1,500 scholarship while the other winners receive $1,000 scholarships. Six to nine winners are recognized annually. DMI provides scholarship dollars for scholarship and several other NDS scholarships.The Kildee Scholarships are offered in two categories. Graduate study applicants may include the top 25 All-American contestants in one of the past three National Intercollegiate Dairy Cattle Contests, plus the Platinum winners in the North American Intercollegiate Dairy Challenge National contests, and these students are eligible to apply for two $3,000 scholarships. Undergraduate students may apply in their junior or senior year of college for one $2,000 Kildee Undergraduate scholarship. Applicants for this scholarship must have been one of the top 25 contestants at the National 4-H or FFA Dairy Judging Contests.

• Two NDS/McCullough scholarships of $2,500 and $1,000 are awarded annually to high school seniors intending to enter a four-year college or university and major in: Dairy/Animal Science with a Communications emphasis or Agricultural Journalism with a Dairy/Animal Science emphasis.

• The NDS/Iager Dairy Scholarship awarded in the amount of $1,000 to a second-year college student in a two-year agricultural college. This scholarship is sponsored from a fund created by Mr. and Mrs. Charles Iager of Fulton, Md.

• A NDS/Core Dairy Scholarship awarded in the amount of $1,000 to a freshman college student in a four-year agricultural college. This scholarship is sponsored from a fund created in honor of Maurice E. Core long-time industry leader and past Executive Director of National Dairy Shrine.

• There are four NDS/Klussendorf scholarships and two NDS/McKown scholarships given in the amount of $2,000 each to students in their first, second, or third year at a two- or four-year college or university. Applicants need to major in career that will help them enter the dairy cattle field.

Dairy exports pipeline flowing again, but risk remains

2010-04-09T07:55:00.000-05:00

Anyone who milks cows wants demand for their milk, and the more the better. But as producers saw all too painfully in 2008-09, expanding to meet that demand comes with risk. Recent news from the U.S. Dairy Export Council is encouraging for dairy producers – and a reason to be cautious.

On the encouraging side, USDEC reported that the total value of dairy exports posted a double-digit gain in January, the first time since the fall of 2008 when the world crashed into financial recession and buyers drastically cut back purchases of U.S. dairy products.

The caution is, it was robust export demand that gave U.S. dairies the incentive to expand – which put them in the risky position of having to rely on export sales to keep supply and demand in balance. With foreign buyers taking more than 10 percent of all U.S. milk production, the sudden slowdown in exports caused an immediate and impossible surplus of products here at home that collapsed milk prices.

As the world begins to claw back from recession, USDEC points out the U.S. is perhaps best positioned to meet renewed demand for dairy products and build strong relationships with buyers before several new emerging competitors arrive in 10 to 15 years. Topping that list are Brazil, Argentina, Belarus, Ukraine, and Uruguay.

Tim Hunt, a senior analyst at Rabobank, says the point probably isn’t to guess which one looms as the biggest competitive threat, but to understand that at least one of them will. “The key is that those wishing to build a sustainable footprint in international trade need to get peddling now because be it 5 years or 10, these guys are coming.”

National Ag Day Essay Winner!

2010-04-07T07:55:00.002-05:00

The 37th annual National Ag Day was held throughout the country on March 20 to celebrate the importance of agriculture in our country. As part of the celebration, seventh through twelfth grade students across the country were encouraged to write a 450-word essay based on this year's topic: American Agriculture — Abundant, Affordable, Amazing. The Agriculture Council of America coordinates the contest and recently announced state winners in addition to one national winner. That lucky student is Christine Vanek, a high school senior from Ann Arbor, Mich. Vanek was awarded during an Ag Day event held in Washington, D.C. At the event, she read her essay to industry representatives, members of Congress, federal agency representatives, media and others. Below is her essay:

As we drive west with the setting sun through the last miles of Iowa, I stare out my window in awe. The fields stretch uninterrupted to the horizon, and the sky is a beautiful abundance of fading blue. I know that I am almost home.

Although my family lives in Ann Arbor, Michigan, our roots are anchored deep in the Nebraska soil. My appreciation for the importance of American agriculture comes from my experience out at my grandparents' farm. I remember as a small child riding in the tractor with my grandpa as he disked a field in preparation for planting, folding the old corn stalks from last year's crop into the dirt. I remember going along with him one fall in the combine, fascinated at the machine's ability to get the ears off the stalk and the corn off the ears, shooting the kernels into the storage space and spitting out the unusable remainder.

At the age of seven, my mind could not grasp the abundance that is American agriculture. I could not comprehend the space of even one field, which itself was granted my awe. At seventeen, I have come to admire the work that my grandfather and all American farmers do. It is thanks to the abundance of American agriculture -- from the corn, soybean, and wheat fields of the Great Plains to the expansive fruit orchards in the South -- that I, along with the rest of the country, have access to a wide variety of affordable, safe, nutritious foods.

I am thankful as well for the affordability of agriculture in America. My ancestors came to America less than two hundred years ago to escape forced service in the Czechoslovakian army. They did not have a large amount of wealth, but due to the affordability of American agriculture, they were able to build a small house and begin their own modest farm. Living frugally and working the land with dedication, they built up a life and livelihood for themselves in America.

I am a product of American agriculture, and I can testify to its greatness. This spring, I was walking to the pivot in the field on my grandparents' farm, when I stopped to tie my shoe. As I stood back up, I looked at the scene around me, taking it in in a way I hadn't while I was walking. I have experienced no more perfect a moment in my life than standing there with the sun warming my back, looking out at that vast, intensely blue sky with the deep green corn plants stretching for miles beneath it.

Don't forget to stop over at Bonnie's Brush with Hoard's to hear from Bonnie on how the Foster Mothers of the Human Race Painting is coming!

Dairy icon, Jim Cavanaugh, passes away

2010-04-06T12:02:00.002-05:00

One of the most successful leaders of the purebred dairy cattle industry passed away April 6 just eight days shy of his 93rd birthday. James F. Cavanaugh joined the American Jersey Cattle Association in 1947 and went on to become the longest-serving executive secretary in Association history, heading the organization from 1956 to 1985. Under his leadership, Cavanaugh helped guide the 1953 purchase of the Jersey Journal, the 1957 formation of National All-Jersey, the 1967 creation of the AJCC Research Foundation, and the 1971 addition of the Jersey Marketing Service. Truly a pioneer, Cavanaugh pioneered the adoption of the USDA sire summary for recognition of bulls and was a vigorous campaigner against using minus bulls. Additionally, he was a vocal supporter of the multiple component pricing movement. There is no doubt that today's popularity of Jerseys can be traced directly to Jim Cavanaugh.

Born and raised on a Kansas farm, he graduated from Kansas State University. In 1939, he was selected by the Borden Company to work at the company's exhibit at the 1939 New York World's Fair where he cared for the famous "Elsie" the Borden cow. Cavanaugh is shown in the photo during a 2007 reunion of the Borden Boys in New York. During World War II, he flew 50 missions as a bomber pilot. Cavanaugh joined the Hoard's Dairyman editorial staff prior to entering military service and remained on the staff until 1947 when he joined the national Jersey association as assistant secretary. And it was Jim Cavanaugh who encouraged Eugene C. Meyer to join the Hoard's Dairyman editorial team when he left the Hoard's staff for his new position at Jersey.

Soon after Cavanaugh's retirement from the American Jersey Cattle Association, Cavanaugh was persuaded to accept an 18-month appointment as secretary-treasurer of the American Guernsey Association on January 1, 1986. Then Cavanaugh was named acting secretary of National DHIA in April 1987 and stayed on until March 1, 1988.

Cavanaugh served as President of National Dairy Shrine in 1962. In 1975, he received the Distinguished Service Award from the American Dairy Science Association, and, in 1977, was World Dairy Expo Industry Person of the Year. The very next year he was honored as the National Dairy Shrine Guest of Honor.

His wife, Virginia, preceded Jim in death. Visitation is at the Egan-Ryan East Chapel at 4019 East Livingston in Columbus, Ohio, on April 8, from 2 to 4 p.m., and from 6 to 8 p.m. The funeral will take place at St. Catharine Catholic Church on 500 South Gould Road in Columbus at 10 a.m., Friday April 9. At the request of the family, in lieu of flowers, memorials can be made to The J.F. Cavanaugh Fund of the AJCA Research Foundation, 6486 East Main Street, Reynoldsburg, Ohio, 43068-2362.
He%20helped%20bring%20Elsie%20to%20life.pdf

Nominations being accepted for top repro herds

2010-04-05T07:55:00.000-05:00

The Dairy Cattle Reproduction Council (DCRC) is now accepting applications for the 2010 National Reproduction Awards. The one-page nomination form must be submitted by May 3 to be eligible for the awards program. The National Reproduction Awards were started last year to honor dairy producers who have implemented management procedures and protocols to achieve high reproductive efficiency. Producers must be nominated by professionals who serve the dairy industry, such as veterinarians, genetic and pharmaceutical company representatives, DHIA field personnel or extension specialists.

Judges will review the initial applications and select the top nominees, who will be asked to provide additional information about their operation. Winners will be honored at the DCRC annual meeting in St. Paul, Minn.

Visit www.dcrcouncil.org to download a nomination form or click on the title of this blog. We have also attached the one-page nomination form to the end of this blog.

In its inaugural year, 58 dairies were nominated for the National Reproduction Awards. Eighteen dairies from nine states were recognized for their herd’s outstanding reproductive efficiency, and the four Platinum winners were recognized in the November 2009 issue of Hoard’s Dairyman on page 702.

2010%20Reproduction%20Award%20form.pdf

Raw milk: Consumer lives are at risk

2010-04-02T07:55:00.002-05:00

It ought to be an old saying by now: Consumers have the right to make choices, but expect some of them to be dangerous or stupid. In the case of raw milk, they're getting both.

Federal law requires all milk sold in final package form for human consumption to be pasteurized for one simple reason: Raw milk poses a health risk, especially for people who are sick or very young or very old or who are immune-compromised. According to the U.S. Food and Drug Administration, between 1998 and 2008 consumption of raw milk in the U.S. was documented to be responsible for 1,614 cases of illness, 187 hospitalizations, and two fatalities.

Yes, in rare cases people can die from drinking raw milk.

Despite repeated warnings to consumers to not drink it – FDA even has a question and answer page on its website at http://www.fda.gov/Food/FoodSafety/Product-SpecificInformation/MilkSafety/ucm122062.htm – raw milk has somehow become the latest sexy government coverup in the minds of nutrition conspiracy theorists who demand to have access to it.

Inexplicably, lawmakers in some states seem inclined to say OK. On March 26, a bill to allow the sale of raw milk was sent to the Wisconsin State Assembly for consideration. That same day, FDA and several state agencies issued yet another warning against drinking raw milk which was prompted by word from Michigan health officials that at least 12 cases of raw-milk-related illness had been confirmed as of March 24.

How many more people have to die – and how many dairy producers will be sued for providing it to them – before intelligence finally takes over?

Both corn and bean acreage could be up

2010-04-01T07:55:00.000-05:00

Farmers plan to plant a record 78.1 million acres of soybeans this year, according to the Prospective Plantings report released by USDA yesterday. That would be a 1 percent jump in bean acres.

Corn acreage is expected to be up 3 percent or 2.32 million acres to 88.8 million. That would be the second largest area planted to corn since 1947, behind 2007. One reason for the rise in corn acres is that it was not possible to plant winter wheat in some areas due to wet weather. Corn acreage jumps of 300,000 or more are expected in Illinois, Kansas, Missouri, and Ohio. Biggest drops in corn acres could come in Iowa (-200,000 acres) and Texas (-150,000).

The largest gains in soybean acreage are expected in Iowa and Kansas, up 300,000 and 400,000, respectively, while Illinois, Nebraska, and North and South Dakota each show gains of 100,000 acres or less.

USDA also released its quarterly stock reports yesterday. Corn stocks on March 1 were put at 7.694 billion bushels compared to 6.954 a year ago. Soybean stocks were put at 1.270 billion bushels compared to 1.302 a year ago.

The corn and soybean acreage estimates were slightly higher than what had been expected by the trade. So those numbers should be viewed as favorable for those on the buy side of the corn and soybean equation.

The trade had expected somewhat smaller corn stocks and had expected soybean stocks to be about what they were.

Corn futures at the Chicago Board of Trade dropped about a dime a bushel yesterday after the reports came out. May, July, and September corn closed at $3.45, $3.56, and $3.66, respectively.

May and July soybeans dropped about 30 cents a bushel to $9.41 and $9.50.

Soybean meal futures went down, as well. May dropped $17 to $266; July dropped $14 to $265; August was down $12 to $262; September slid $10 to $257; and October fell $6 to $250.

The raw milk battle heats up

2010-03-31T07:55:00.000-05:00

The Food and Drug Administration released a special warning late last week reminding consumers to forgo any consumption of raw milk. They report that at least 12 cases of illnesses have been confirmed in Michigan due to an outbreak of campylobacteriosis (symptoms include diarrhea, abdominal pain, and fever.) All cases of the foodborne illness have been linked to consumption of raw milk from a dairy farm in Indiana. From 1998 to 2008, 85 outbreaks of human infections resulting from consumption of raw milk were reported to the Centers for Disease Control. These outbreaks included a total of 1,614 reported illnesses, 187 hospitalizations, and 2 deaths. The FDA says that, because not all cases of foodborne illness are recognized and reported, the actual number of illnesses associated with raw milk is likely much higher.

The new warning from the FDA has garnered national attention recently, too. The Wall Street Journal published a piece just yesterday about the growing trend to throw FDA recommendations to the wayside and consume unpasteurized milk. "Raw milk is inherently dangerous and should not be consumed by anyone, at any time, for any reason," said John Sheehan, director of the FDA's division of plant and dairy food safety.

We realize that the income from raw milk sales may be appealing to some farms — especially when coping with the state of our dairy industry. However, the risks associated with it is simply poor business sense for all of us. It may take just one sickness from raw milk for an entire family to stop drinking milk all together. That's a family of consumers we can't afford to lose. We've worked hard to have reliably safe products on store shelves; let's not lose that badge of honor. And while proponents of raw milk consumption may tout "beneficial bacteria," there already is another dairy product that safely delivers that: yogurt.

Hoard's visits with DMI board member Steve Maddox

2010-03-30T08:05:00.001-05:00

We recently sat down with Steve Maddox of Riverdale, Calif., to visit with him about some of the current initiatives of your checkoff dollars. Maddox currently serves on the national DMI (Dairy Management, Incorporated — the umbrella organization of the checkoff) board. If you enjoyed this video, you're in luck. We just posted another video over on our Bonnie's Brush with Hoard's Blog today! Bonnie visits with viewers about the underpainting — the monochrome-painted framework of the artwork.

World Dairy Expo Announces 2010 Honorees

2010-03-29T07:55:00.006-05:00

Each year, World Dairy Expo recognizes four individuals for their contributions to the global dairy industry. General Manager Mark Clarke notes, “This year’s honorees have each invested a lifetime in building a successful business within the dairy industry while helping others along the way. We look forward to celebrating their achievements at this year’s show.”

World Dairy Expo’s 2010 Recognition Award Winners include: Dairyman of the Year – Donald Bennink, North Florida Holsteins, Bell, Florida; Dairy Woman of the Year – Liz Doornink, Jon-De Farms, Baldwin, Wisconsin; Industry Person of the Year – Horace Backus, Backus Pedigree Company, Mexico, New York; and International Person of the Year – Tadanaga Komori, Japan Livestock Trading Corporation, Obihiro-shi, Hokkaido, Japan.

The four recipients will be honored during World Dairy Expo at a special “Dinner with the Stars” banquet, held on Wednesday, September 29, in the Exhibition Hall at the Alliant Energy Center in Madison, Wisconsin. Tickets for the event are $30. Reservations are required by Tuesday, September 21.

A list of previous recognition winners can be found at http://www.world-dairy-expo.com/about-expo-recognition-awards.cfm

How to lose the argument on animal welfare

2010-03-26T08:30:00.001-05:00

All of us who make our living with livestock are strongly biased on the subject of animal welfare. Unfortunately, it’s a bias that can be our own worst enemy when we debate the topic with someone we disagree with.

This important “stop and think for a moment” reminder comes through loud and clear in “How to lose the argument on animal welfare . . . Top 10 reasons” by Dr. David A. Daley at California State University, Chico. Daley’s arena is the beef industry, but every point he makes is relevant to dairy producers, too:

1. Assuming science will give us all the answers; it only gives us some of the answers. I believe strongly in science, but science doesn’t solve ethical questions.

2. Using economics as the justification for all of our practices.

3. Assuming that you have to defend all agricultural practices, regardless of what they are. I believe you defend those that are defensible. Period.

4. Assuming we can’t do better at animal welfare.

5. Attacking everyone who disagrees with you in a negative, critical manner.

6. Not being willing to listen because we are so busy responding.

7. Assuming that the lunatic fringe is the general public. We spend way to much time focusing on lunatics and not working with the public.

8. Being reactive rather than proactive.

9. Assuming that because someone disagrees with you they are stupid, evil, or both.

10. Not working hard enough to build coalitions that include the public.

11. Bonus: Criticizing/mocking any animal production system that is not “conventional”.

12. Bonus: Trying to lead a parade without seeing if anyone is following. I have surveyed over 200 cattlemen in three locations and 90+ percent of them say, “Animals have the right to be treated humanely and ethically.”

Price prospects, policy dilemmas cloud DFA meeting

2010-03-25T08:35:00.000-05:00

Co-op business sort of took a backseat to current concerns when about 1,200 people gathered for Dairy Farmers of America annual meeting this week in Kansas City. In short, the co-op had net savings (earnings) of $65.6 million in 2009, and all business units of the co-op were profitable. (See our April 25, 2010, issue for more on DFA activity and the annual meeting.

The big hallway topics at the meeting were the recent drops in Class III futures and whether our industry's appetite for trying some type of milk production control has changed enough to move us in that direction. The two are related to some extent. Any change in national dairy policy, including any provisions for production controls, would not take effect until the 2012 Farm Bill is enacted which could be sometime in 2013. That's a lifetime away for dairy owners, who increasingly are on the brink of financial failure. The key to doing better short term will be to get rid of nagging inventories of cheese and nonfat dry milk. Actually, analysts say current production and current demand are nearly in balance.

More and more dairy farmers are saying that something must be done about returning margins to the business that will enable them to get current again and begin to rebuild lost equity. Both DFA's Rick Smith and NMPF's Jerry Kozak said at the meeting that enough dairy farm families feel the need to control milk supplies in some way that the industry should seriously consider moving in that direction. There are deliberations underway at several levels aimed at looking at various aspects of several plans that have been proposed to see which concepts would be most adaptable to a consensus proposal.

Kozak said he could see some sort of production control or growth management plan, perhaps on a standby basis as needed, that could be coupled with the Dairy Producer Income Protection Plan that NMPF has been working on. "DPIPP" would provide long-term margin (milk price minus feed cost) insurance coverage with no caps on herd size or milk volume. A base program would be available at no cost to producers for a portion of a dairy operation's production history. An optional, supplemental plan would be paid for partially by the producer for greater margin protection, presumably for the more heavily leverage, more financially vulnerable operations.

Under one hypothetical situation, over the past 10 years, the MILC program would have paid a 100-cow farm about $46,000 more than DPIPP, as currently proposed, would have. However, DPIPP would have paid that 100-cow operation about $19,000 more during 2009 as the program would have been in effect during nine months of 2009. DPIPP coverage is designed to be "catastrophic" coverage. It is possible, Kozak said, that a continuation of MILC and establishment of DPIPP may give dairy farmers a choice of one program or the other in the future.

One possible standby production control plan being considered is a marginal milk pricing plan that would kick in when milk prices fall below a certain level. (See April 10, 2010, issue, page 255).

Our future in yogurt

2010-03-23T16:39:00.012-05:00

Consumer demand for dairy products slid last year — commercial disappearance was down 1.2 percent. While this may be disappointing to hear, there is one product category that is making plans for serious growth in the U.S. market: yogurt.

One of the stars of the yogurt world is Dannon, owned by the French company Danone. You likely are most familiar with their U.S. brand Dannon which is the maker of products like DanActive, Stoneyfield Organic, Activia, and their children-focused product Danimals. Just last week, it was reported by Reuters that the yogurt giant is taking a big aim at the U.S. market. Gustavo Valle, the chief executive officer of Dannon, said the U.S. market is still very underdeveloped with consumption six times lower than in Western Europe. Six times lower. That's a lot of yogurt and that's a lot of milk. Europeans typically eat plenty of Greek yogurt — a strained, less sweet, thicker version of our sugar-loaded cups in addition to being part of meals other than breakfast. The CEO was even so bold as to say "In four years, we can double the consumption per capita." Currently, Dannon and its top U.S. competitor Yoplait (owned by General Mills) account for 67 percent of U.S. sales. With basement milk prices last year, Dannon cut prices by 3 percent to 5 percent in the middle of 2009. This move gave sales a 15 percent jump in the last half of 2009.

Mintel market research reported early in 2010 that sales of yogurt and yogurt drinks have grown in recent years. U.S. sales of product category grew 32 percent between 2004 and 2009 with sales at $4.1 billion. As far as yogurt production goes, the USDA annually releases information on yearly totals. Information released last may revealed that in 2008, 3.5 billion pounds of yogurt was produced at 110 yogurt plants in the U.S. In 2000, that production mark was just 1.8 billion from 77 plants.

Challenge daughters lead Hoard Farm 2-year-olds

2010-03-23T07:55:00.000-05:00

On Monday, March 15, American Guernsey Association executive secretary, Seth Johnson, was at the Hoard's Dairyman Farm to appraise the Hoard Guernsey herd. Scoring began at 6 a.m. and continued during the ensuing day, Johnson evaluated 64 2-year-olds that received their first-ever score. The 64 first-score cows averaged 79.03 for final score, 80.56 on udders, and 80.17 on feet and legs.

Of those 64 first score cows, there were 11 1GU418 Idle Gold E Challenge-ET daughters that were evaluated for the first time. These moderate-framed cows were 2 years, 9 months of age (on average) on appraisal day and had an 82.2 final score, 83.7 udders, and 81.4 feet and legs. When it comes to production, the 11-cow-Challenge group calved at 2 years, 1 month and have actual 305-day projections of 17,059M 5.2 880F 3.3 571P.

When looking at all cows on the farm, averages included:
• First lactation, 126 cows: 78.9 points, 79.9 udders, and 80.1 feet and legs
• Second lactation, 87 cows: 80.4 points, 79.5 udders, and 81.6 feet and legs
• Third and greater lactation (4.31 lactations), 124 cows: 83.8 points, 82.7 udders, and 83 feet and legs
• All cows, 337 cows: 81.1 points, 80.7 udders, 81.5 feet and legs.

The Hoard Farm had three new Excellent cows including:
• Rutter Bros Goliaths Ruby, EX-90, VG-88 MS, EX-90 F&L. Ruby's has 151,123 M, 8623 F, and 5,370 P of lifetime credits to date. She is due for the tenth time this September. Her dam, Ruthie EX-91 has 194,399 M, 10.130 F, and 7130 P, in her lifetime and counting.

• Lavon Farms Mountains Molly, EX-90 and EX-91 MS. Molly is completing a 8-1 record of 303 days, 20,721 M 4.2 875 F, 3.2 658 P.

• Rolling Prairie P King Pansy (shown above), EX-90, EX-90 MS, and EX-90 F&L. Pansy recently completed a 5-1 record of 365 days, 25,098 M, 4.5 1,120 F, 3.3 and 819 P. She has a Trotacre Enhancer Lewis-ET daughter that is VG-85 in the second lactation. More on Pansy at http://www.hoards.com/farm/cows/Pansy.html

After reviewing the data, the Hoard Farm ended up with:
• 20 Excellents (90 points or higher)
• 196 Very Goods (80 to 89 points)
• 111 Desirable (70 to 79 points)
• 10 Acceptable (60 to 69 points)

A complete list of appraisal scores can be found by downloading the file below.
Hoard_Farm_Classification.pdf

More milk . . . despite everything

2010-03-22T07:55:00.000-05:00

Maybe we shouldn't have been too surprised with the February Milk Production report released last Thursday. After all, milk production in January had been down just 0.5 percent compared to a year earlier. Plus, the 23 top dairy states actually had 4,000 MORE cows in January than in December. The recent report showed that milk output in February was 0.1 higher than a year ago, and that the top states had another 3,000 more cows. That was not much of a rise in milk. But considering all that our industry has been through, many would think that cow numbers and milk production still should be going down.

The big driver of more milk this winter has been higher milk per cow. This especially was evident among states in the Upper Midwest which had one of the coolest summers on record last year. For example, cows in Wisconsin produced 5.3 percent more milk in February than they did a year ago.

Among the top 23 states, cow numbers were down 168,000 head (nearly 2 percent) in February. However, milk per cow in those states was up just over 2 percent. Nationally, the estimated cow count was 9.088 million head, which was down 201,000 or 2.2 percent from February 2009.

California continued its drop in milk production being down 1.6 percent. There were 65,000 or 3.6 percent fewer cows there. With its big jump in milk per cow, Wisconsin was up 5.7 percent in total milk production. Wisconsin had 5,000 more cows than a year ago. Among other Upper Midwest states, Michigan was up 3.5 per cent in milk and Minnesota was up 1.4 percent.

Seven states were down at least 5 percent in total milk output during February. They were Arizona (-6.8 percent), Colorado (-8.3), Florida (-5.0), Kansas (-6.8), Missouri (-9.8), New Mexico (-5.0), and Texas (-5.4). Most of these states were down mostly due to significant declines in cow numbers.

Can we stop E. coli inside cows?

2010-03-19T07:55:00.000-05:00

Consumers have become all too familiar with E. coli 0157:H7, one of the most common culprits behind foodborne disease outbreaks in recent years. Blame for illness and media scrutiny fall first on tainted produce or meat, but the origin of the bacteria is often traced back to cattle, which harms the image of all dairy and beef producers by association.

Stopping E. coli outbreaks at the source – cattle themselves – is the focus of a new three-year research study at Washington State University that is funded by a $1 million grant from USDA. One of the main concepts behind it is the curious fact that while people become sick from E. coli, cattle don’t.

“It doesn’t bother them,” says microbiologist Tom Besser (pictured) who heads up the project. “But that doesn’t mean we can’t go into cattle and maybe do something to reduce their infection rate with 0157. And we think if we do, then depending on how important cattle are as a source for humans, the human rate should go down, too.”

E. coli infects about 70,000 Americans a year, but scientists have yet to learn how to prevent its spread. Health experts have worked on reducing infection rate through better meat handling and food preparation, but since just 10 E. coli cells are necessary to make a person sick, vigilance can only do so much.

Besser hopes to stop the bacteria by focusing on the different types of E. coli that beef and dairy cattle harbor. The study will look for genetic markers that clearly define differences in the five known strains of bacteria, which could be used to take a new look at the effectiveness of different treatments and strategies.

Baseline projections for dairy appear bullish

2010-03-18T07:55:00.000-05:00

Milk prices will move higher in the years ahead, according to a report to Congress given by FAPRI (the Food and Agricultural Policy Research Institute at the University of Missouri). FAPRI makes projections based on current policies and doesn't try to anticipate federal dairy and ag policy changes and directions.

FAPRI projects an All-Milk Price of nearly $17 for 201o, an estimate that may have been made before Class III futures for 2010 made significant downturns. The All-Milk Price for 2009 was just $12.79. However, FAPRI has the All-Milk Price averaging between $17 and $18 per hundredweight between 2011 and 2013 and rising to between $18 and $19 for 2014 through 2019.

The projections have the Class III price averaging $15.41 for 2010, although the futures prices currently are averaging just over $14. FAPRI has the Class III price averaging in the upper $15s during 2011 and 2012, rising to more than $17 by 2019.

Cow numbers during 2010 will not average below 9 million head as USDA predicted earlier, according the FAPRI projections. The report puts cow numbers for 2010 at 9.024 million head, but averaging fewer than 9 million head each year through 2019.

FAPRI projects total milk production to climb 1.1 percent per year between 2011 and 2019, topping 200 billion pounds in 2015 and reaching 209.2 billion by 2019.

Milk yield per cow is expected to go up about 1.3 percent per year, reaching nearly 23,500 pounds by 2019.

Stronger world prices will help drive U.S. milk prices, according to FAPRI projections. The world price of cheese is expected to be between $1.60 and $1.80 a pound between 2011 and 2019. The nonfat dry milk price could run between $1.25 and $1.40 a pound.

Fluid milk per capita consumption in the U.S. will stay flat or decline, but cheese consumption per person is expected to continue to rise reaching 34.2 by 2019.

High-tech neighbors in the north

2010-03-17T10:04:00.007-05:00

A couple weeks ago we had the pleasure of visiting some impressive Ontario dairies during the First North American Conference on Precision Dairy Management. Our first stop of the day was to Summitholme Holsteins in Lynden, Ontario. The farm is owned by brothers Carl and Dave Loewith, and Carl’s son, Ben Loewith. Driving onto the farm you’d see that it was a well-run free stall and parlor operation. On closer inspection you will find several processes within the farm that have been automated to save labor and give the operator more information to be used as management tools. We started in the parlor where Ben Loewith showed us their milk recording system. The system records conductivity (mastitis detection), activity monitoring (heat detection), milk weights, and statistics on how the parlor is flowing to evaluate milker performance. It generates lists of cows that may need attention. Ben Loewith says they still have found ways to rely on simple technologies to help them monitor cows closely in a large herd — without using a computer. They use a whiteboard with several columns labeled with days of the month. When cows calve, their number is placed in three columns. This helps them remember the three days postcalving they test cows for ketosis. Stepping out of the parlor, you’ll find a feed mixing system that carefully lets feed mixers know how much feed of each ingredient is yet needed for the ration with a large electronic display.

It quickly became clear that Canadian farmers who can’t expand their herds because of quota restrictions may have the opportunity (and capitol) to take advantage of these technologies sooner than those in the U.S. who are still recovering from 2009. What do you think? Is high-tech dairy farming out of reach for U.S. farms?

Behind the Canvas

2010-03-16T13:37:00.000-05:00

As we announced last week, Hoard's Dairyman has commissioned world-renowned cow artist Bonnie Mohr to update our well-known Foster Mothers of the Human race print. We'll be following along with Bonnie as she creates this exciting painting on our very special blog: Bonnie's Brush with Hoard's. In the coming weeks we'll even give you some sneak peeks into how the painting is coming along. Right now you can visit the blog and view our past Foster Mothers prints and vote for your favorite! New this week on the Bonnie's Brush with Hoard's blog, we're letting you get to know Bonnie a little bit better. Did you know that besides painting she is the busy mother of five children and wife of a dairy farmer? Watch the video about Bonnie's life today in addition to her memories of Hoard's Dairyman as a child.

We need choice in the food chain

2010-03-15T07:55:00.001-05:00

Jeff Simmons, president of Elanco Animal Health, was on hand at the Northeast Dairy Producers Association annual meeting in Liverpool, N.Y., to discuss, "Choice in the food chain and dairy's opportunity in feeding the world. Simmons' presentation had three key components involving: technology, choice, and leadership.

Citing United Nations data, Simmons noted, 50-100-70 would be the key numbers driving food production. "Specifically, in the next 50 years the world will need 100 percent more food, and 70 percent of that additional food will come from improved technology," said Simmons, noting there was little arable land not already in agricultural production.

Countries like China and India, with one-third of the world's population, want to grow more food for their citizens. At the same time, they want to devote less of each citizen’s personal income to food. "India spends 50 percent of personal income on food," said Simmons. "That compares to 26 percent in Japan, 22 percent in the United Kingdom, and 10 percent in the U.S. Technology can lower food costs," he went on to say. "Look at the U.S., for example. In 1908, the American consumer spent 50 percent of personal income on food. Today, he or she spends only 10 percent."

The second key component is choice. Simmons pointed out that Elanco reviewed consumer surveys conducted in the past two years that asked unaided questions to consumers which means that questions were not of a leading nature. After that review, they found that 95 percent of consumers are really looking at: availability, affordability, and nutrition when buying food.

"That means only 5 percent of consumers purchased food on luxury choices and personal wants such as organic or vegan lifestyles," Simmons stated. "This finding is holding true today," Simmons pointed out. "The recession has put some economic logic back into the system."

Lastly, and perhaps most importantly, Simmons pointed out dairy producers need to share this message with others and provide leadership on food. "We don't all have to agree on every issue," he said. "However, we need to align ourselves and move in the same direction," he said when talking about moving agriculture and food-related issues forward. "If we wait for total agreement, we will never move forward," he told the 550 people attending the Northeast Dairy Producers Association meeting just outside Syracuse, N.Y.

A hard fall for school soft drink sales

2010-03-12T07:55:00.001-06:00

Rejoice, milk producers. The latest report card for beverage sales at U.S. high schools shows a big fat F for soft drinks.

According to The Wall Street Journal earlier this week, a report to be released Monday by the American Beverage Association will show a stunning decline in the sale of soft drinks in U.S. high schools over the last five years. Most notable is a 95 percent decline in sales of “full-calorie” soft drinks.

The collapse is credited to many factors, including efforts by states and local school districts to limit or eliminate high-calorie sweet beverages from schools’ menus and vending machines, greater social focus on battling childhood obesity, and cooperation from beverage manufacturers.

Milk and other dairy products were not identified in the study. Other major sales declines in the study include:
– a 94 percent decline in imitation fruit juices
– a 77 percent decline in flavored teas
– a 67 percent decline in sports drinks
– a 47 percent decline in diet soft drinks

“We congratulate the beverage industry for working to remove sugary sodas from schools,” said Margo G. Wootan, nutrition policy director for the Center for Science in the Public Interest in a March 8 press release. She added, however, that much work remains to be done since full-calorie sodas, sports drinks, imitation fruit drinks, and ice teas still make up one-third of all beverage sales in high schools.

Last July, the American Heart Association said recent research had found that drinking more than one soft drink per day – regular or diet – increased the risk factors associated with both heart disease and new-onset obesity.

USDA lowers milk price forecast sharply

2010-03-11T08:20:00.000-06:00

Lower milk prices and feed costs are forecast, but the lower costs won’t make up for the lower prices.

In yesterday’s World Supply/Demand Estimates, USDA lowered its milk price forecasts sharply from a month earlier. The midpoint projection for 2010 Class III prices was lowered from $15.25 to $14.50. The midpoint of the All-Milk Price projection was lowered from $16.55 to $15.85 or 70 cents per hundred.

The milk production forecast was raised for 2010 with milk production expected to be fractionally above 2009.

Cheese prices were reduced as higher stocks are expected to pressure prices. Butter price forecasts were raised slightly on the strength of current demand although higher milk supplies and weaker cheese prices may encourage higher butter production, pressuring prices later in the year.

The projected 2009/10 marketing-year average farm price for corn was lowered 20 cents on the top end of the range to $3.45 to $3.75 per bushel. World corn production for 2009/10 was raised 5.9 million tons. Global corn ending stocks for 2009/10 were projected to be 6.1 million tons higher with increases in most of the world’s major corn-exporting countries, including the U.S., Argentina, South Africa, and Brazil.

The U.S. season-average soybean price range for 2009/10 was narrowed to $8.95 to $9.95 per bushel. The soybean meal price was projected at $280 to $310 per short ton (2,000 pounds) compared with $270 to $320 previously.

U.S. soybean ending stocks for 2009/10 are projected at 190 million bushels, down 20 million from last month. Soybean production is estimated at 3.359 billion bushels, down 2 million from the January estimate.

Cattle price forecasts were raised for 2010 due to tighter meat supplies. This will provide more cull cow income and encourage culling which will help reduce milk supplies.