|
VOLUME XVII, NO. 3 |
TEXAS DAIRY REVIEW |
MARCH 2008 |
 |
|||
|
Southwest biodiesel plant “good to go” this month High feed costs, low milk prices; it’s a gamble no matter which way you turn State proud to gain brucellosis-free status |
|||
|
|||
|
Southwest biodiesel plant “good to go” this month |
|||
|
The nation has seen its fair share of biodiesel plants spring up in the past few years only to shut down or cease operation when soy oil and canola prices reached prices too expensive for their uses. But, about 17 miles from Seminole, Texas, there’s a carefully thought-out plan looming over the horizon that will soon become a reality when a new and innovative biodiesel plant fires-up next month. The operation that will convert cottonseed into alternative fuel will provide an important economic asset to the local community while serving a large span of West Texas and Eastern New Mexico. Makings For A Good Recipe
Seminole is located in Gains County, known for being the number one cotton, oil and peanut producing county in Texas. That says alot about success when the makings for a good recipe to convert cottonseed oil into biodiesel fuel is right at your fingertips. Ocho Gin’s (Ohco Limited, LLC.) visionary board of directors along with funding made available through local incentives and USDA government grants pointed to a win-win situation. The end result is Southwest Energy and Feed Company, LLC.---"good-to go’’ in mid-April of this year. The recipe wouldn’t be complete without mixing in the local flavor of general manager Brace Huse who hails from the throes of West Texas---namely, Lamesa, about 40 miles away. ‘‘I grew up in the middle of a cotton patch,’’ he laughed and said, giving full credit to his childhood for gaining such a good handle on cotton production and farming. ‘‘I’ve traveled around and all as I grew older,’’ he said, ‘‘but there’s just something about this West Texas red dust that keeps bringing me back.’’ Southwest Energy, LLC. Huse went to work for Southwest Energy last June; right about the time construction began on the new plant. Ohco’s gin, located ‘‘right next door,’’ supplies the cottonseed needed for the new conversion plant. Established since 1973, Ocho Gin is managed by Joey Jenkins and independently owned by 47 stockholders, overseen by an 11-member board of directors with Bobby Harlan serving as president. The gin boasts a bale count for this year that could be as high as 135,000-140,000. Funding Southwest Energy is partly funded by a $500,000 Value Added Producer grant, a $300,000 USDA Rural Development Operating grant and a $250,000 labor grant from the Seminole Economic Development Corporation directed by Donna Johnson. The company is dedicated to keeping the safety of the public and the environment at the forefront, operating under strict safety guidelines and regulations. Employee Oriented
While providing jobs for the community, the
company takes a big interest in its employee relationship. Huse said the
company will extend to its employees many career and goal-oriented
opportunities. While all employees will initially be trained to plant
operations and procedures, additional educational training sessions and
seminars will be offered as new standards are introduced. Employees will
be encouraged to study each aspect of the industry. Employees are required to practice all safety measures in every area of the plant. They will be trained and become proficient in all aspects of plant procedures and processing which includes delinting the cottonseed, heavy equipment use, maintenance of a bale press, and use of extruders and expellers, pellet-mill and bagging equipment, laboratory equipment (gas-chromatograph, photo-spectrometer, scales, balances, etc.), and safe handling of caustic and flammable material. The plant is expected to employ 15 people from the Seminole area and will offer a good pay scale to hopefully encourage employees to shop locally, Huse said. The Process The goal of Southwest Energy is to process cottonseed as well as other oilseed into renewable sources of food and energy. The plant is expected to operate approximately 365 days per year and will make the most of every renewable product that it processes to boost the agricultural economy and to provide a greener, more viable future for generations to come. One of the first plants of its kind, the process for making biodiesel fuel consists of mechanically delinting the cottonseed. The lint removed from the seed prior to oil extrusion will be processed, baled and marketed. The oil that will be extruded from the seed will safely be converted into methyl-esters otherwise known as biodiesel. After the biodiesel has been processed, it will be made available to area producers and the national market. Other Commodities ‘‘This provides for a conservative return to those who maintain our agricultural economic base,’’ Huse said. ‘‘We will also produce feed products from the remaining crushed seed. This particular byproduct of biodiesel production will be cubed, pelletized, bagged or sold in bulk.’’ The plant utilizes a vitamin and mineral incorporator to enhance the food product as the market may require. The final byproduct of this process is glycerin for which there are many uses in agriculture. ‘‘In fact,’’ Huse said, ‘‘there are over 1500 recognized uses for glycerin. The plant is designed to produce between 1.6 and 2.5 million gallons of biodiesel per year. The design, however, allows for expansion that will increase the capacity for production to five million gallons per year. The capacity for feed production will allow the plant to easily supply the surrounding dairy producers, ranchers, and livestock managers with a steady flow of high-quality food products. The plant is only 15 miles from Hobbs, NM, where many large dairies are in operation. Huse is especially interested in meeting the dairy industry’s needs for certain products Southwest Energy can provide. ‘‘We want to hit every aspect of the dairy industry and I want to build a customer relationship with dairy producers,’’ Huse said. As a certified fuel and biodiesel dealer, several prospective buyers are interested in the company’s products and anxious for the plant to begin operation, Huse said. ‘‘Pricing will be based on petroleum prices. Traditionally biodiesel was more expensive than petroleum but now the market has equalized.’’ Huse said the families that own Southwest Energy ‘‘had it all together’’ when they envisioned the company’s overall capabilities. Huse’s wife is Katie, a third grade teacher at Seagraves. They have a son, Camden, 2, and a 7-month old daughter, Cambrie. |
|||
|
|
|||
|
High feed costs, low milk prices; it’s a gamble no matter which way you turn |
|||
|
No matter what your cows are eating today, feed prices are way too high and unpredictable as to what they will do as 2008 moves forward. On the other end of the scale, the good milk checks dairy producers received in 2007 are not likely to be as rewarding in 2008 and 2009 with an expected decline in milk prices forecast by dairy industry experts. Feed prices double Naturally, dairymen are concerned. One local dairyman who owns three large dairy operations, shares his opinions. ‘‘Anyone who doesn’t want to relive 2006 better get out now,’’ he said. ‘‘This time, the low milk prices and high feed costs will be more brutal than before and it will come a lot faster.’’ He pointed out feed prices have doubled today from what they were in 2006. ‘‘Flaked corn was $1.15 per ton and is now $2.30. Canola was $1.45 and has jumped to $2.80 to $3.00 as well as soybean which has risen from $1.72 to $3.75,’’ he said. ‘‘In addition, many new heifers will be coming on the market because dairymen have been doing their homework and using better heifer-raising programs. All these heifers could cause cow prices to drop. Besides that, dairymen have borrowed to the limit. Although 2007 were good milk prices, now they are expected to drop to $15-$16 cwt,’’ he said. The question is---can dairymen make it on that? Milk prices always a risk Realistically, no one knows the answer but it wasn’t too long ago when some local dairymen claimed $14 milk was what was needed to make things work. That, however, was before animal feed prices went out the roof along with other things like fuel, electricity, and food costs in the grocery stores that are still rising. Now, some dairy consultants are saying it will take at least $17 milk or more. Of course none of this is new to dairy producers who realize milk prices are always at a risk. Milk prices change on a weekly and monthly basis depending on supply and demand factors and government policies. On-farm milk prices are determined by wholesale commodity prices for cheese, butter, nonfat dry milk and dry whey in combination with the federal milk marketing orders and the dairy price support program. Going hand in hand, both milk and feed prices is basically a ‘‘roll of the dice.’’ But, economists warn when milk prices fall and feed costs go up, farm profits begin to dwindle and sometimes end up bottoming-out. Prices likely to decline in $3/cwt range G.H. Cain of Dairy Farmers of America (DFA) said although cooperatives can make an educated guess on milk predictions a few months out, they don’t always know what the final milk check settlement will be to the farmer. Cain said it is quite likely milk prices will decline in the $3 per hundredweight range in the upcoming months when compared to the January milk price. But, he believes there is the potential for the drop to be of shorter duration than in times past. He pointed out that it’s possible the CWT program will come into play again at some point, although it’s anybody’s guess when that may happen. Other market conditions Cain said other favorable market conditions are to be considered. ‘‘The rate of increase in national production has been decreasing over the last three months, dairy cow slaughter numbers are up. In addition, California has lots of milk on the market and they are trying to temporarily control or reduce their rate of growth.’’ Although none of this seems too hopeful, dairymen are still not ready to venture out of a declining milk market that may be short-lived into a higher risk milk futures market. Corn is the culprit As for the high feed prices, some economist blame corn as the major culprit with its extended use for making ethanol as the biggest factor. However, corn is a world food crop and much in demand for other reasons such as an increased export demand, feed for cattle and poultry, and uses for sweeteners, starch and other food products. In fact, farmers cannot produce enough corn. In 2007, US farmers planted more acres in corn than any time since World War 11 consisting of 92 million acres with forecasts by the USDA at nearly 21% higher than 2006. This push for more planting was supposed to ease price pressures somewhat in the US but overseas events have kept prices higher than expected. Consumers ignore economic principle While consumers usually reduce their purchases of goods and services if prices become too high, buyers of US corn, soybeans and wheat seem to be ignoring that economic principle as the nation’s grain stocks reach critically low levels, said Chris Hurt, a Purdue University agricultural economists. Global demand for grain and oilseeds are at record levels and a weak US dollar keeps foreign buyers outbidding domestic buyers for American grain. The 2007 wheat crop sold out--- with domestic soybean stocks very low. Food consumers to pay more
Because of such higher commodity prices, food
consumers worldwide are going to have to pay more, Hurt said. 2007 ended
with a monthly inflation rate on food nearly 5% higher. Although only
into the beginning of the third month this year, Hurt predicts 2008 food
inflation rate might be as high as 6%. Food uncertainty Hurt mentioned that the last time this kind of uncertainty on food supplies was in the early 1970s when the former Soviet Union became a major buyer of wheat in the US. In the fall of 1972, they had become such aggressive buyers, they ‘‘essentially bought the pantry’’ out of US wheat supplies. In 1973, the US ran out of soybeans of which the US Congress and president agreed to embargo all foreign soybean shipments until the US could replenish this supply. US losing planting ground Competition for acreage among different crops could be a major problem in 2008, according to Jerry W. Kram, in ‘‘Corn marches on,’’ Ethanol Producer Magazine, Nov. 2007. Kram said it is possible there will be a huge drop in corn acres, giving more volatility to the corn prices than previously. A major problem----the US is literally losing ground for planting---about 1% per year to more shopping centers and houses. Planting space is very limited. Competition among growers There is also a slight war going on between crop growers. Industries that lost ground to corn acres in 2007 are moving forward to ensure they will have sufficient supplies for 2008 with some modifying long-standing contracts practices to entice farmers to grow the crops they need. But, it is unknown if there are enough acres to cover all the crops to be grown. Agriculture and energy sectors linked Ethanol from corn grain has tightly linked the agriculture and energy sectors in an unprecedented fashion. Purdue professor of agricultural economics, Wally Tyner, recently presented results from a model based on a range of possible oil prices that predicts impacts of federal economic policies on future consumer and government costs, ethanol production and many other aspects of the two sectors. The prices of corn and crude oil, which prior to 2007 fluctuated almost independent of one another, are more closely linked due to the use of massive quantities of corn to make ethanol that was about one-third of the total national harvest in 2007. Exports The corn export market started high in October and is predicted to be strong as 2008 moves along. Exports are based on a country’s need for feed grains around the world, availability of feed grains and the relative prices between countries. USDA Outlook The USDA Agricultural Outlook Forum forecasts total agricultural exports to reach a record $101 billion for fiscal year 2008, up $10 billion from November’s forecast and an unprecedented $19 billion above 2007. |
|||
|
|
|||
|
State proud to gain brucellosis-free status |
|||
|
Texas beef and dairy cattle producers, cattle feeders and market operators achieved a longsought victory in February, when the U.S. Department of Agriculture (USDA) announced that Texas has achieved cattle brucellosis-free status. For nearly 50 years, Texas cattle producers battled brucellosis, or “Bangs Disease,” the bacterial disease that is caused by Brucella abortus. The disease can cause cows to abort, deliver weak calves or produce less milk. All other states in the United States are classified brucellosis-free, some for more than 25 years. “Texas was the last state to achieve the ‘free’ status. We have more herds and more cattle than any other state—14 million at last count. We also had more brucellosis infection to fight. In 1959, when Texas officially joined the national eradication program, we had more than 20,000 of the country’s 100,000 infected herds,” said Dr. Bob Hillman, Texas’ state veterinarian and head of the Texas Animal Health Commission (TAHC), the state’s livestock and poultry health regulatory agency. “This victory for the cattle industry did not come easily or without hardship,” Hillman said. “For many cattle producers in the early days of the program, it meant losing a herd with only salvage value payment, or having the herd under quarantine and being unable to sell animals for long periods of time. Some producers’ herds became re-infected. In recent years, infected herds were purchased from owners and depopulated whenever possible, to quickly wipe out infection.” Hillman credited the 2006 Brucellosis Eradication Working Group with re-evaluating all aspects of the Texas brucellosis program, in preparation for the USDA review, which was conducted in summer 2007. The group was comprised of about 25 cattle industry members.
“I also want to thank TAHC and USDA staff for
their long days of testing cattle, consulting with producers, keeping
detailed test records, and handling tense situations when herds had to
be quarantined. The efforts by the industry, the TAHC and USDA have
brought us to a great place- --disease eradication. “To this end, we must continue testing our cattle at the first-point of concentration and change of ownership for the next couple of years,” Hillman continued. “This procedure is part of the national brucellosis program standard and was included in the program as a means of assuring that states that have just acquired free-status could identify infected herds should the disease have been left undetected in a herd or is re-introduced into a state. Additionally, brucellosis slaughter surveillance will continue for many years to come to assure that the disease is completely eradicated from cattle herds in Texas and other states of the United States.” “Decades of hard work are now paying off with this incredible accomplishment. I commend the cattle industry of the state and the Texas Animal Health Commission for working together to establish Texas as cattle brucellosis-free,” Texas Agriculture Commissioner Todd Staples said. “Texas ranks first in the nation in the number of cattle and calves and the industry is a $16 billion business for the Texas economy. This new status will positively improve the industry and help our dedicated cattle producers,” Commissioner Staples said. |
|||
|
|
|||
|
World Ag Expo ’08 names five new top dairy products |
|||
|
Five new top dairy products were showcased at this year’s World Ag Expo, Tulare, CA., in February. Housed in the new Dairy Technology Center, a 140X160 foot indoor canvas covered structure devoted to dairy exhibits, the top five products were selected from a panel of industry professionals and dairymen. Listed in no particular order are: Accent Manufacturing, Inc., Abbotsford, British Columbia; Bella Health System, Greeley, CO.; Hanna Instrument, Woonsocket, RI.; Multimen, Porterville, CA.; Trioliet Mullos BV, Oldenzaal, Netherlands. Accent Manufacturing, Inc.’s sand trap uniquely removes bedding sand from sand laden manure that has been previously separated by the Accent IFRS 36 Separator. This product is designed for 1-500 cows and captures up to 95% of the sand in sand laden manure. Removing the sand reduces handling problems and produces reusable sand. The fiber is first removed by IFRS 36, then the remaining sand and liquid mixture flows tangentially into the sand trap. Cyclonic action spins the sand out and causes the sand to separate from the effluent. These separated sand particles fall to the bottom of the cone chamber. The sand is removed by an auger passes through a skimmer and removes fiber and excess liquid. The end result is clean low moisture sand. Bella Health Systems (BHS) has designed a system to monitor a cow’s ID, temperature, health history, milk production and lineage with the click of a button. Their core system is based on RFID rumen bolus with an integrated temperature sensor. Stationary readers on milking parlor entrances or exits scan each bolus. The system also works with BHS’s portable readers, which provide dairymen the flexibility to scan the cow’s information from anywhere on the dairy. All of the data collected is sent to BHS’s herd management software which consolidates all dairy operations and history into one place. Hanna Instrument’s 84429 is a low-cost, easy-to-use automatic titrator and pH meter that is the result of Hanna’s extensive experience as an innovator and manufacturer of analytical instruments. Powered by a microprocessor, this mini Titrator provides professional results quickly and accurately. Once a sample is prepared, the system automatically monitors and analyzes the titration and performs all the necessary calculations, then clearly and conveniently displays them on the y x Z pixel graphic interface. When START is pressed, the system initiates the titration and measures pH change throughout the process. A sophisticated and effective algorithm programmed into the system analyzes the shape of the response curve and automatically titrates the sample up to the end point. It then calculates the acidity value expressed as titratable acids. Results are immediately displayed in the desired units and the instrument readies itself for the next titration. Titrations are controlled by a simple and accurate peristaltic pump that is engineered to provide the best performance and repeatability possible. Hanna standards are provided to calibrate the pump and maintain optimum accuracy. HI 84429 is pre-programmed with analysis methods specifically designed for Total Titratable Acidity measurements on milk. MULTIMEN(r)-Cattle is the original pioneer injectable for enhancement of essential trace minerals (Zinc, Manganese, Selenium and Copper) in a single tissue compatible bioavailable form. MULTIMEN-Cattle is intended to complement an existing program at critical production points when questionable absorption of fed trace minerals could be a problem such as at calving, weaning, rebreeding or other stressful times. Recognized and recommended by leading nutritionists, veterinarians and producers across the country. Trioliet Mullos BV’s Shifttronic 3-speed gear box---Start up of big size mixers at full loads cause a lot of stress on the tractor PTO clutch and drive line. With the Trioliet Shifttronic, start up is done at a low mixer speed and requires less than a third of the energy. Shifttronic’s electronic control box allows you to program in five different mixing cycles, determining at which feed weight the gearbox shifts. Examples of this include fast cutting of dry hay in a right dry cow heifer ration, a reduced speed in a premix ration to save your tractor and reduce fuel costs, an automatic speed up at the end of the discharge cycle for regular, fast and efficient clean out. The gearbox functions independently from the tractor and requires only PTO drive and 12 volts. |
|||
|
|
|||
|
Third Annual Milk Lover’s Ball huge success |
|||
|
The Third Annual Milk Lover’s Ball hosted by the United Dairy Women (UDW) in February was a ‘‘huge success,’’ according to Michelle Heavyside of United Dairywomen (UDW). More than 450 people attended the Milk Lover’s Ball in Clovis, NM, raising over $20,000 to help assure residents of three area childrens homes they will receive the recommended three servings a day of dairy products for the next year. The UDW’s goal is to see that these children consume three servings of milk, cheese or yogurt each day that will carry over into a healthy adult life. UDW is a non-profit organization.of whom members promote agriculture and the agricultural industry as it relates to dairy through educational programs and by supporting charities that involve children and nutrition. ‘‘We started two-and-a-half years ago on a ‘milk mission’ for one of the childrens homes after realizing that milk is a luxury for some children,’’ Heavyside said. ‘‘In just a few weeks, we were able to raise enough money, with the help of Dairy Max and local dairy families, to support that home with dairy products for the next year. Soon we realized we could do more. We now support all three childrens homes ( New Mexico Baptist Children’s Home, New Mexico Christian Children’s Home and Pippin Youth Ranch) with dairy products throughout the year.’’ In addition to the childrens homes, the UDW donated over $78,000 back to the communities of Clovis and Portales in 2007. Milk Lover’s Ball marked its second annual table auction for scholarships at this year’s event. PBI- Ross Holm donated $7000 to aid any student pursing a dairy science degree for the upcoming year. ‘‘We are working with New Mexico State University and the Dairy Science Consortium to help students achieve their goals and support higher education. This past year’s table auction allowed us to award our first scholarship at this year’s ball, which was awarded to Melissa Frietas,’’ Heavyside said. Milk Lover’s Ball also marked the third annual Woman of the Year awarded to Faye Johnson. Attendance at the Clovis Civic Center event included families and friends of the dairy industry from the immediate area and as far away as California, Texas, Mississippi, and Raleigh, North Carolina. Primary sponsors included Alta Genetics, Dairy Farmers of America, Inc. (DFA) who additionally sponsored the premium butter for the event; Dairy Max, who also sponsored all other dairy products as well as the cake servers and wine glasses for all those in attendance; J.D Heiskell & Co., Purina Mills, Select Milk Producers, Southwest Dairy Museum, who sponsored coffee mugs for each person in attendance; and The New Mexico Beef Council who sponsored the delicious beef. Upcoming UDW events include Dairy Farmers of America (DFA) & UDW to host a Memorial Golf Tournament to honor the lives of Doug and Debbie Idsinga at the Chaparral Country Club April 19. Coming up June 28 is the third annual DAIRYFEST at Curry County Fair Grounds to celebrate June as national dairy month and say ‘‘thank you’’ to surrounding communities for their continued support. There will be dairy foods, games, activities & a concert featuring local artists The Fun Brothers Band will open for famed country music band RESTLESS HEART. Cost for DairyFest is $1.00 per person. For more information contact 1-877-LUV-MILK or log on to www.uniteddairywomen.com. |
|||
|
|
|||
|
All internet content of this site
are Copyright © 2005-2008 TDR Publishing Co. All Rights Reserved. |
|||
 |
