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VOLUME XX, NO. 10 |
TEXAS DAIRY & AG REVIEW |
October 2011 |
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National Dairy Producers Organization Submits Amendments For Dairy Reform Dairy Security Act Of 2011 Is Not "Everyone's" Glass Of Milk Hay Maze And Pumpkin Patch Brings Fall Festival To Surrounding Community Mooo-ve Over Erath And Make Room For Castro County As Number 1 A Quick Recovery Post Freshening Can Improve Milk Production Through Lactation State Fair of Texas: Ice cream, Cooking, And A Little Ag Magic Says A Lot Fuel Up To Play 60 Proves To Be A Success By Gaining More Support Growing Corn On Limited Water Is Future Possibility With Germplasm Technology |
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National Dairy Producers Organization submits amendments for dairy reform |
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First Change Establish the trigger point margin (difference between the all milk price and the national average feed cost) as being equal to the national average feed cost. DMSP would be activated when the margin falls below the national average feed cost.
Second Change In order to achieve the legislative goal of preventing a catastrophic loss to dairy producers caused by the over production of milk which exceeds profitable demand, market signals recognized as strong and timely need to be sent to the producer. Present legislative language does not accomplish this task. A simple yet effective strategy to keep the supply of milk balanced with profitable demand could be the following: “Any time the margin falls below the national average feed cost, the USDA would immediately notify all dairy producers that after a period of 30 days, the DMSP would be activated and remain in effect until the margin once again exceeds the national average feed cost, at which time DMSP would trigger out and deactivate the program. During a period of activation, milk producers would not be paid for milk produced in excess of their base, which is determined by their average milk marketings made during the 12 month period preceding the notification by USDA. In the event a producer does not have milk marketings 12, months prior to the notification, that producer’s base would be the average of his first three months of milk marketings.” Under this language, producers who expand their production, during the period of an active management program, would not receive payment for their production in excess of their average milk marketings as established by production records for the 12 month period preceding notification by USDA. Therefore, those producers who contribute to a supply of milk beyond parameters established under the program, through an overproduction of their 12 month average base, would bear a cost beyond the required reduction to bring the supply of milk back in line with profitable demand.
Third Change In order to ensure that a managed domestic milk supply is not back-filled with imported products, reasonable limitations and regulation of those imported dairy products and or ingredients used in the manufacture of a dairy product must be imposed.
Fourth Change While it is clear that proposed Federal Milk Marketing Order Reform has minimal dairy producer support it appears it should be handled in a different forum. It has been suggested that if FMMO revisions were handled administratively, and allowed input through a hearing process, it would be of greater benefit not only to the proposed legislation, but would also serve the better interests of FMMO revision. |
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Dairy Security Act of 2012 is not "Everyone's" glass of milk
by Sherry Webb |
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Dairy reform 2011 The good news is the headway regarding dairy policy reform with the introduction last month of the Dairy Security Act 2011 (DSA). The bad news---will the final approval come soon enough? Many producers think not---with their futures hanging by a thread. They have already scraped the bottom of the barrel on savings, financing and equity and currently wondering how to pay feed costs and inventories. Anger, frustration, bewilderment and apathy are just a few of the deep-seeded emotions running through the veins of Texas producers. This is compromised further by the fear associated with declining milk prices. Could the industry be facing another 2009 crisis all over again?
Texas producers hard hit Texas producers in 2011 have been especially hard hit with record-breaking drought conditions and soaring temperatures. And, there is more to come according to forecasts by USDA experts who have predicted the drought pattern is likely to continue through 2012-2013. Since the 2009 fiasco, legislators, dairy leaders, and industry organizations have been clamoring to come up with a fair and reasonable dairy policy reform that eliminates or restructures archaic policy programs and enlists measures to stabilize milk prices and a growing export market. After long debates and hearings, the Dairy Security Act (H.R. 3062) was formally introduced into the U.S. House on Fri., Sept. 23, by House Agriculture Committee Ranking Member Colin Peterson, (D-Mann.) and co-sponsor Mike Simpson, (R-Idaho). H.R. 3062 is a modified version of the draft legislation from earlier this year and patterned after the National Milk Producers Federation’s (NMPF) proposal known as “Foundation for the Future.”
Changes to draft NMPF President and CEO Jerry Kozak said changes to the preliminary draft that are in the DSA 2011 include making the Dairy Market Stabilization Program (DMSP) a voluntary program, designed to help reduce milk output during low margins. If dairy producers enroll in the subsidized margin insurance program through the USDA, they will automatically be enrolled in the DMSP and will be promptly alerted when additional production may affect their overall margins. The new legislation also extends the basic level of margin insurance coverage from the initially proposed 75 percent of a producer’s production history to 80 percent. The supplemental margin coverage option will now allow producers to purchase insurance for growth in their milk production history. The final version of the 2011 legislation includes a provision in the DMSP to ensure it does not activate when signals for farmers to reduce production may impose on the abilities of U.S. exportation of dairy products. The DSA 2011 includes a new pricing system of the Federal Milk Marketing Orders (FMMO)s to be conducted through a formal USDA hearing process. Also, milk used to manufacture cheese will be priced to a more market-oriented competitive pricing system rather than a complicated end product formula. Additional changes include elimination of the Milk Income Loss Contract (MILC) program and the outdated Dairy Export Incentive Program (DEIP).
DFA comments “The Dairy Security Act of 2011 introduced by Reps. Collin Peterson (D-Minn.) and Mike Simpson (R-Idaho) is a critical step forward for the dairy industry, and the leadership demonstrated by Peterson and Simpson is commendable.” Wilson added that now that the bill is before Congress, it is vitally important the momentum for dairy policy reform does not waver. He said the DSA 2011 provides producers with options to protect their margins and the ability to strengthen exports, both of which will be instrumental in maintaining the vitality of the U.S. dairy industry.
National Dairy Producers Organization, Inc. The National Dairy Producers Organization (NDPO), a group based in south central California that organized a little over a year ago, has continuously expressed the need for dairy policy reform. Their gut level approach is to empower dairy producers to wake up to the stark realities of today’s industry. Their standard message is “more money is better than more milk.” Following on the heels of this ideology, Bob Krucker, a dairyman from Gerome, Idaho who serves on NDPO’s board, last month reached out to producers nationwide in “a call for action.” The memorandum was targeted at producers to voluntarily decrease their milk production by 5 percent. Although milk has been at its highest during most of 2011, dairymen are not able to overcome the effects of 2009 yet because of ridiculously high feed prices.
Cannot revisit 2009 “We cannot revisit 2009,” wrote Tom Van Nortwick in a recent NDPO newsletter. Van Nortwick is a volunteer who serves as executive director for NDPO. “Strong business and profit- minded production management on the farm, combined with daily supply management in the markets are dairy producers only hope for survival,” he said. Van Nortwick points out a growing list of key market indicators that signal a critical drop in prices paid to producers for their milk in upcoming months and 2012. The market indicators are: 1) slowing to stagnant global demand, 2) rising cheese inventories, 3) rising production levels in New Zealand and Australia; 4) forecasted domestic production increases fueled by increased cow counts as well as per cow increases for the remainder of 2011 and 2012, Van Nortwick predicts these dairy market indicators could easily bring a $4 to $6 decrease in the price per hundred weight paid to producers that will continue into the 4th quarter of 2011 straight through 2012. “These market conditions could be the beginning of a disastrous chain of events made worse by the US dairy producers’ historical push to produce more milk as prices start and continue going down.”
Too much cheese Krucker said there is over a billion pounds of cheese in inventory. “With cheese inventories rising and the price of cheese plummeting, clearly the supply of milk exceeds profitable demand,” he said. In their foremost commitment to producer profitability, the NDPO released the statement in hopes that producers will work together to regain market control. As Krucker notes, “When dairy producers choose to be milk supply regulators they will become milk price regulators and will become profitable.” The NDPO stands firmly in a unified effort to secure a nationwide production and supply management program. Earlier this year, they proposed the Dairy Industry Stabilization and Sustainability Act of 2011 (DISSA), in alliance with their mission. Their stated efforts will not abate until U.S. dairy producers regain profitability and achieve long-term sustainability for producers nationwide and all of the industry. “Milk will not be worth what it costs to make so long as supply exceeds profitable demand,” Krucker said. “But in the attempts to suppress the supply, the arranged plan will be used to stabilize the industry and once again increase the value of milk.” NDPO submitted four amendments to the bill. (See amendments on Page ) Van Nortwick said the main overall objective of NDPO is to return the profitability of milk back to the dairy producer. “It can be done,” he said, “It just takes a lot of time and effort.” IDFA stews about DSA Brewing on the other end of the dairy spectrum is International Dairy Foods Association (IDFA), Inc., that boasts a membership of 550 companies within a $110-billion a year industry. Although NMPF prides itself on its major role as the thought processors behind the preliminary FFTF proposal and considers itself “the voice of the dairy industry,” not everyone agrees. IDFA has fought the FFTF proposal from day one and is now in a more heightened frenzy than ever. President and CEO Connie Tipton’s well-known opposition to dairy reform has denounced NMPF’s FFTF with a continually-fueled gusto that stands to ignite further as legislation proceeds. She claims the most recent changes by FFTF “misses the mark, again” and the new reforms are no different from the old policy. She finds this totally unacceptable policy reforms. IDFA opposes any form of supply management during a time of what they consider to be a “great market opportunity” for its members and the entire US dairy industry. The revised NMPF plan requires producers to limit supply if they want to participate in an insurance program. IDFA opposes milk pricing regulations that would increase already significant regulatory burdens on processors, put more pressure on declining milk sales, and increase costs for consumers as well as government nutrition and feeding programs that are already stretched. IDFA believes producers need risk management tools without more government mandates.22 |
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Hay Maze and Pumpkin Patch brings fall festival to surrounding community |
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by Sherry Webb This is the time of year when we get that first little nip of fall and cooler temperatures begin to brighten our spirits--- especially after going through a record-breaking, all-time scathing Texas summer. Fall brings to mind the many other states typically celebrating corn harvests with festive parties, fun-filled events, and old-fashioned games and mazes. Residents of Erath County are no exception to this frivolity and can look forward to their own fall celebration at the second annual Hay Maze and Pumpkin Patch, sponsored by Stephenville Christian School (SCS). The event opens on Fri., Oct. 8, from 6 PM to 8:30 PM, and goes through Sun., Oct. 30. Be sure to see schedule and times in this story and mark your calendars for the fun family affair. Some folks enjoy walking through the pumpkins, located next to the Maze, and deliberate on choosing just the right one for purchase. Pumpkins are $6.50 each. It is much more fun to pick through these pumpkins than pulling ones out of a big bin at the grocery store. The pumpkins are complemented by a hay bale backdrop that offers great photo opportunities. Snacks and beverages will be available for purchase on the premises along with glow-in-the-dark sticks, necklaces, etc. for night adventurers. Sorry but no flashlights allowed. Although pumpkins and hay sources have been extremely scarce this year, that was only part of the problems Sonya Koke, Hay Maze and Pumpkin Patch organizer, faced when preparing for this year’s second annual event. If you add her newly born baby boy to the mix, life gets hectic real fast. Since the Hay Maze and Pumpkin Patch was basically Sonya’s “brainchild” and she has been the driving force behind it, she felt obligated to the community to continue the event this year, regardless of her own predicament. “Hay was hard to come by and since Johan and I had a new baby on the way, I knew I would have to rely more than ever on our school families to get this fall festival up and running,” Sonya said. Naturally, SCS members were concerned about Sonya’s condition and kept asking her, “Are you sure you want to do this?” But, there was no way Sonya would allow herself to think otherwise. “How could I not do it?” she said. “I am very grateful to all the SCS volunteers who have helped out and so thankful for the dedicated SCS families making this year’s festival happen.” Others also have been active in providing help. Sonya said she is appreciative for the hay bales loaned to the event from a local dairyman and pumpkins from Little John’s Produce. Also, the use of a John Deere tractor from Bramlett Implement has been very helpful. “Last year was a great success and we had over 1300 people walk through the maze,” Sonya said. “For $5, you can go through the maze as often as you like.” Sonya said it is fun to watch children suddenly become adventurers and explorers. “Kids last year explored all the different paths in the maze or played hide and seek with each other. Many times, their parents would have to go find their children in the maze so they could go home.” Sonya pointed out there are areas available in the maze for parents so they can sit and visit with each other while their children play. “The mix of parents, families and friends is a great way to get to know each other and fellowship together.” Sonya reported the first annual Hay Maze and Pumpkin Patch successfully brought the much-needed funding required to keep the cost of the school’s tuition down and to help with the tuition aid program. She said the event is a great way to let the community “know who we are and what SCS is” and she hopes the fundraiser will be even more successful this year. Sonya and her husband Johan own Blue Jay Dairy in Lingleville. Along with running the dairy operation and raising their children, they are actively involved in SCS. Sonya laughed and said the timing for the baby could not have been worse but she did not let it stop her plans to carry on with the October festival. She did, however, slow down long enough to bring baby Gerrit into the world on Sept. 19 and to celebrate his birth with the other five Koke children: Natalie, 12, Nicole 10, Anna 8, John 4, and Jacob, 2. Baby Gerrit is only two weeks old but has already visited the Hay Maze and Pumpkin Patch with his mother several times. The schedule and times for the event are as follows: Wed., 6:30 PM-8:30 PM; Fri., 6 PM.-8:30 PM.; Sat., 3 PM-8:30 PM. The cost is $5 per person or $20 per family of five or more. $3 per person with group appointments. Field trips or groups are available by appointment during the week. For more information call 254-965-4821. Directions: From Stephenville, take Hwy. 377. After last signal light in town, go toward Dublin for one mile. Turn right on County Road 351 (also known as the landfill road). The school is approximately one-half mile on the right. Stephenville Christian School was established in 1993 by Christian families predominately from the dairy and farming community. It is a Bible-based school, independent of denominations with a diversity of families from every walk of life. The school has a common goal that teaches its students how to be Christian leaders in their everyday lives and in the world around them. SCS prides itself on its Christian atmosphere and teachings where it is much more than adding a Bible story at the end of the day. The school believes that incorporating Christian values into every subject helps students to learn how to apply God’s word to all of life.
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Mooo-ve over Erath and make room for Castro County as Number 1 |
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Congratulations to Castro County for moving into the “number one milk producing county in Texas” for the month of August. Castro is preceded by Erath County that proudly held the position for 20 consecutive years. Texas Milk Market Administrator Carrie Hunter recently said Erath moving down to the number 2 position does not mean its milk production won’t fluctuate and possibly move it back into the number 1 spot. There was only 107,753 pounds of milk marketed difference between the two counties with Castro marketing 89,044,165 pounds and Erath marketing 88,936,412 pounds. When one county overtakes another, it often fluctuates between the number 1 and number 2 spots for months until the number 1 position stabilizes. ”There’s some basic dairy herd management differences between Erath County in central Texas and Castro County in the Panhandle,” Hunter said. “Castro County tends to have dry lot dairies with consistent herd production. Erath, on the other hand, has a mix of dairy management techniques so that production tends to fluctuate in some months more than others. Erath County had been the top county since June 1990. Castro County, located in the Texas Panhandle, had held the number two position in the state since March 2010. These two counties marketed 22.88 percent of all milk marketed in Texas during August. Castro marketed 89,044,165 pounds or 11.45 percent of all Texas milk while Erath marketed 88,936,412 pounds or 11.43 percent of the total milk in Texas. In August 2011, Castro County marketed 25.03 percent more milk than it did in August 2010, while Erath County marketed 5.48 percent more milk in August than a year ago. Castro’s marketings were represented by 13 producers who marketed an average of 220,953 pounds of milk per day. Erath County milk was marketed by 78 producers that marketed an average of 36,781 pounds of milk per day. Castro County milk marketings have increased more than 3000 percent since August 2001, from 2,847,578 pounds in 2001 to 89,044,165 in August 2011. Over the same ten year time frame Erath County milk marketings have decreased nearly 10 percent from 98,445,489 pounds in August 2001 to 88,936,412 pounds in August 2011. *Texas Milk Market Administrator’s Report |
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A quick recovery post freshening can improve milk production through lactation |
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Recent research and field management programs have led to a greater awareness regarding the importance of a trouble-free transition period in getting high-producing dairy cows to recover from the stress of calving and prepare for milk production at the start of lactation. Production records clearly indicate that cows with a one to two pound daily reduction in milk production at the peak of lactation will produce 1,000 to 2,000 pounds less milk during the entire lactation period. Immediate post-calving problems such as reduced appetite, milk fever, hypocalcaemia and retained placentas can individually or collectively impair the cow’s ability to reach her optimum peak in lactation. Later post-calving problems, such as ketosis or displaced abomasums, are metabolic and digestive disorders that can further challenge the cow’s ability to maximize milk production throughout lactation. When cows freshen, they lose a large reservior of nutrients. Fresh Cow YMCP works to boost levels of yeast, magnesium, calcium, potassium, and niacin — essential nutrients needed for the transition into lactation. As one of the top transition products on the market, Fresh Cow YMCP helps reduce immediate post-calving complications such as reduced appetite, milk fever, hypocalcaemia, and retained placentas. More than just a tool to combat metabolic disorders, Fresh Cow YMCP also helps to provide nutrients needed to reach optimum peak milk therefore improving profitability through better milk and components Fresh Cow YMCP contains four types of calcium (calcium lactate, calcium proprionate, calcium pantothenate, calcium carbonate) plus other key ingredients that give cows everything they need to help aid in recovery and get used to the demands of lactation. With more than a decade of proven results, Fresh Cow YMCP has been shown to improve milk production by as much as 2-8 pounds, giving dairy producers a 20 to 1 return on investment. Fresh Cow YMCP is palatable, non-abrasive and easy to administer — available in powder form, capsules or paste depending what best suits the operation. Visit our website to learn more at http://www.techmixglobal.com. For more information regarding this article please contact Tammy Howe, TechMix Sales and Marketing, by calling 877-466-6455 or emailing tammyhowe@techmixglobal. |
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State Fair of Texas: Ice cream, cooking, and a little ag magic says alot |
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There is a basic rule-of-thumb in marketing any product: touch as many of the right people as you can, at the right time, with the right message. That translates not only to reaching lots of people for the least cost, but “connecting” them to your product with a compelling and meaningful message. It also means reaching people who are in your target demographic (potential customers). And when it comes to milk and dairy products, that “target” is just about everybody. The Southwest Dairy Farmers has a long and successful track record in reaching out to people in effective, efficient ways – making dairy stand out in the minds of the public and selling the wholesome goodness and nutritional benefits of milk and milk products. They know there are lots of ways to do that, but one that works well year after year for Southwest Dairy Farmers is sponsorship of, and participation in, public venues. And some of the best places to be, at any time of the year, are at state fairs and local festivals. One of the most popular venues that Southwest Dairy Farmers is involved in is the Texas State Fair, held every October in Dallas with attendance of over 2.6 million. This year, Southwest Dairy Farmers is sponsoring the Food and Fiber Pavilion. If you attend, you will see SWDF signage, partnered with Go Texan all around the arena, along with our Ice Cream Parlor, where we expect to give out over 200,000 free, soft-serve ice cream cones to patrons. An “Ag Magic” show featuring Rhonda Ross will be performed for all school children in attendance. In addition, Southwest Dairy Farmers’ cooking expert, Kitchen Kimberley, will be performing demonstrations on stage for patrons of the fair on October 8, which happens to be the day of the much anticipated, Red River Shootout, featuring the Oklahoma vs. Texas football rivalry. Southwest Dairy Farmers will be a big part of the events at the Tulsa State Fair, which has attendance of over 1 million people in late September to early October. This year, the Southwest Dairy Farmers will bring in Miss Oklahoma, Betty Thompson, for autograph sessions with fair goers, as well as Rhonda Ross’, “Ag Magic” show. SWDF will also hand out free cheese quesadillas at their popular Dairy Diner. Each year, the New Mexico State Fair, held in mid-September in Albuquerque, hosts the Southwest Dairy Farmers Dairy Barn. SWDF features their popular Mobile Dairy Classroom demonstrations as well as supports Old McDonald’s farm, a real, hands-on farm for kids sponsored by McDonald’s. Involvement in large, public events each year by the Southwest Dairy Farmers is substantial, and in 2012 will include the fairs previously listed plus livestock shows and events in Houston, San Antonio, Austin, Fort Worth, and other markets. Just recently, Southwest Dairy Farmers also showcased cooking demonstrations with Kitchen Kimberley at Grapefest, in Grapevine, Texas and the National Harvest Festival at Silver Dollar City, in Branson, Missouri. The Southwest Dairy Farmers believe that meeting people “at ground level” is one of the best ways to connect consumers with the dairy industry and the goodness of dairy products. And that’s why being there – at venues where people are involved in Americana and experiencing everything that’s good – is an important component of what Southwest Dairy Farmers does on behalf of its dairy farm families. *Southwest Dairy Farmers |
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Fuel Up to Play 60 proves to be a success by gaining more support |
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The numbers alone speak to the impact that the farmer-funded Fuel Up to Play 60 program is having on schools located within the Dairy MAX territory: · 8,254 participating schools · 11,000 school stakeholder supporters (parents, teachers, administrators, principals, nurses, nutrition staff, PE teachers). · 19 million media impressions · 10 million on-container impressions in schools. Beyond the numbers is a deeper story that has the Dairy MAX organization excited about Year Three of the student-led, in-school program designed to address the obesity epidemic through healthy eating – including the consumption of dairy foods – and getting 60 minutes of physical activity each day. The program is being embraced by more schools and its association with the National Football League – a founding partner of FUTP 60 – brings a new level of excitement for students. “The awareness has grown significantly over the last year where top-level administrators are aware of the program and implementing it district wide,” said Amy Bernoski, Director of Integrated Marketing and Communications for Dairy MAX. “They love the star power of the NFL and the program is easy to implement. Advisors tell us this is a program they can rally around and will positively change the school environment.” Added Nellie Hartsell, FUTP 60 program advisor at Macario Garcia Middle School in Sugar Land, Texas: “Fuel Up to Play 60 has increased awareness on our campus of the importance of healthy eating and physical activity, as well as the connection between healthy students and academic success.” FUTP 60 is achieving producer priorities through its “dairy optimization” component that implements programs designed to move more products through innovative ways, such as expanded breakfast, dairy vending and placing more dairy-friendly items on cafeteria menus.Schools from kindergarten through 12th grade that are enrolled in FUTP 60 can receive assistance to jumpstart and sustain healthy nutrition and physical activity improvements. Many of these efforts are complemented with support from dairy processors and manufacturers. The dairy optimization goals are: · Increase dairy sales and consumption. · Increase partner (non-checkoff ) investments and assets · Make long-term sustainable change happen – in the school environment, and ultimately in student health and wellness behavior. The El Paso Independent School District now has 21 elementary schools participating in the “breakfast in the classroom” dairy optimization program. This change alone is projected to move an additional 1 million pounds of dairy annually. Another area of positive dairy growth is taking place in the Granbury (Texas) ISD where FUTP 60 was launched last year in one school. This year, the program is in the entire district and schools are featuring new dairy items on the lunch menu and offering expanded breakfast programs. A unique component to Granbury is athletic directors requesting “grab and go” breakfasts for their athletes following morning practices. They’re also featuring refrigerators filled with flavored milk so athletes can enjoy “milk breaks” during the day. “The balance between eating healthy and Fuel Up to Play 60 has been a big push for us,” said Alicia Hernandez, School Nutrition Director for Granbury ISD. “The job we do is so very important. We really made an impact on the children’s lives when we committed to this program.” Schools remain the ideal place for the dairy industry to connect with kids. About 55 million students attend school 180 days of the year. That means almost 5 billion reimbursable school lunches are served each day. More than 70,000 schools across the country are engaged in FUTP 60, representing two-thirds of all U.S. school districts. This makes FUTP 60 the largest and most student-activated school health and wellness program in the country.“It’s important to remember why this program is so important to dairy farmers,” Bernoski said. “It’s impacting kids and they are the future of dairy; they represent 100 percent of our future consumers. We need to reach them now more than ever when nutritious dairy products like low-fat flavored milk, cheese and pizza are being challenged in schools.” |
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Growing corn on limited water is future possibility with germplasm technology |
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Germplasm and stay-green technology utilized by
Texas AgriLife Research corn breeders could make growing corn on limited
water a greater possibility in the near future, according to AgriLife
Research studies. |
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