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VOLUME XVIII, NO. 6 |
TEXAS DAIRY REVIEW |
JUNE 2009 |
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Join June Dairy Month celebrations Milk industry unites against proposed excise tax USDA reopens Dairy Export Incentive Program (DEIP) Sierra Dairy: Multi-faceted operation Dairy Day lures producers out of barn
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Join June Dairy Month celebrations |
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June is National Dairy Month but it doesn’t necessarily mean you have to kiss a cow or take it to dinner. However, if you would like to honor dairy producers and their “girls” during this special month, do not hesitate to attend one or many of the dairy festivities in local communities all over the nation. Dairy activities are especially prevalent where dairy farms are plentiful. Stephenville, and Sulphur Springs, Texas and Clovis, New Mexico are a few of the many locations celebrating June Dairy Month. TriCounty Agribusiness Association (TCAA) in Stephenville sponsors DairyFest each year at Stephenville City Park. The day is dedicated to a family fun event celebrating area producers in Erath, Hamilton, and Comanche counties. This year’s event will be on Sat., June 20, from 11 a.m. to 4 p.m. Armbands will be available at booths throughout the park for $1. The armband allows people to enjoy grilled cheese sandwiches, cheeseburgers, yogurt smoothies, ice cream and milk. Children can play in the park, participate in many dairy related games sponsored by local businesses; visit the Mobile Dairy Classroom, get a milk mustache photo, and much more. Heading up the Stephenville event is a one-mile Fun Run followed by a 5K sanctioned “Milk Trot.” A new addition to this year’s schedule is the Stephenville Parks and Recreation Department (S.P.A.R.D) First Annual Softball Tournament. DairyFest is a S.P.A.R.D event sponsored by TCAA, HEB, Southwest Dairy Farmers, and the dairy farm families of DairyMax. Families are encouraged to attend the family fun event. For more information contact TCAA at 254-965-6942. Sulphur Springs, in east Texas, celebrates its 50th anniversary of the Hopkins County Dairy Festival beginning Sat., June 13-20. The city-wide festival is sponsored by the Hopkins County Chamber of Commerce and the Hopkins County Civic Center to include various dairy related festivities and foods and proudly boasts the Texas State Champion Homemade Ice Cream Contest. Activities and events include a Hot Air Balloon Rally and Flight, 5K Milk Run, Dairy Festival Parade, Corvette Show, Ice Cream Contest, Hot Air Balloon Glow, street dance, carnival, 42 tournament, coronation pageant. Admission varies per event. For more information, contact the Hopkins Chamber of Commerce, 903-885-6515 or Hopkins County Civic Center, 903-885-8071. Clovis, New Mexico United Dairy Women’s (UDW) 4th Annual DairyFest is on June 27 at Curry County Event Center in Clovis, NM from 5 p.m. to 9 p.m. Admission is $1 per person and covers all events including the spectacular country music artist Sammy Kershaw who will perform that evening. An interactive tour of the dairy industry is especially geared to educate and inform children on cows and the making of milk. For more information, please call 1-877-LUV-MILK or visit www.uniteddairywomen.com. |
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CWT audits begin |
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All farmers bidding in this round of the Cooperatives Working Together (CWT) will be notified no later than June 12, 2009, whether their bids were accepted. CWT auditors have already started visiting the 388 farms tentatively accepted in the program’s seventh herd retirement. All farms should be audited by early July. “The bids selected ranged from farms with fewer than 50 cows to dairies with over 5,000, demonstrating farms of all sizes in all areas are facing a very difficult year in 2009,” said Jerry Kozak, National Milk Producers Federation (NMPF) president and CEO. “Those that took advantage of CWT’s offer to retire their herds will aid others still wanting to farm by reducing the amount of milk coming to market and strengthening prices going forward.” This largest-ever herd retirement entails removal of nearly 103,000 cows that produced two billion pounds of milk last year. CWT reports 60 percent of the farms selected are located east of the Mississippi River, while 79 percent of the 103,000 cows to be removed come from the Western and Southwest regions of the U.S. Eighty-one percent of the milk removed will come from those two regions, a portion slightly higher than in the six previous CWT rounds. With farmers submitting a total of 535 herd retirement bids, CWT has accepted nearly three-quarters of them. CWT is also removing approximately 1,000 bred heifers, which is an option under the program. Once CWT’s field auditors inspect and accept the herds offered as part of the bidding process, farmers will have 15 days in which to send their animals to a processing plant.
Producers whose bids are accepted will be
paid in two installments: 90% of the amount bid times the producer’s 12
months of milk production when it is verified all cows have gone to
slaughter. The remaining 10% plus interest will be paid 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. |
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Milk industry unites against proposed excise tax |
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Leaders of the two major dairy industry groups have joined to reject a suggested federal excise tax on flavored milk drinks, such as chocolate and strawberry, that contain sugar-based sweeteners. Connie Tipton, president and CEO of the International Dairy Foods Association (IDFA) and Jerry Kozak, president and CEO at the National Milk Producers Federation (NMPF), said flavored milk is part of the solution to the child obesity problem, not a cause, and its consumption needs to be encouraged among kids and not discouraged by a new tax. A tax on sugar-sweetened beverages, including flavored milk, was included in a list of revenue options released May 18 by Senators Max Baucus (D-Mont.) and Charles Grassley (R-Iowa), chairman and ranking Republican, respectively, on the Senate Finance Committee. While no rate was specified, a tax of three cents per 12 ounces could raise as much at $50 billion over 10 years, according to a congressional estimate. “Milk is a nutrient-rich beverage that is good for kids,” Tipton said. “We need to encourage them to drink more and it’s no secret kids love flavored milk. Processors have developed low-fat flavored milk options that don’t have excessive calories, but switching to no-calorie sweeteners has proved problematic. Still, flavored milk is an excellent way to increase milk consumption and make children’s diets more nutritious.” Kozak added milk is unique in that it provides nine essential nutrients, including calcium and other nutrients kids don’t get enough of. “Limiting consumption of flavored milk could easily reduce intakes of nutrients kids need, and that come in a package they enjoy,” Kozak said. “In addition, research has shown children who drink flavored along with unflavored milk don’t have higher body mass indexes than non-milk drinkers.” The 2005 Dietary Guidelines for Americans—the official government diet advice—bolsters the argument for flavored milk, Tipton and Kozak said. According to the guidelines, adding a small amount of sugar to nutrient-rich foods such as reduced-fat milk enhances their appeal and improves diet without adding excessive calories. Tipton and Kozak said the American Academy of Pediatrics also encourages consumption low-fat or fat-free milk, including flavored milk, as an alternative to soft drinks. “Taxing flavored milk because it includes a small amount of sugar is penny-wise and pound-foolish, from a nutritional standpoint" Tipton said. "Studies show that low-fat chocolate milk is kids’ nutritious beverage of choice. It would be ridiculous to discourage kids from drinking it.” “It’s both bad nutrition policy and bad tax policy to lump milk in with other beverages,” Kozak added. “Kids need more calcium and flavored milk provides it without adding too many calories. Why would anyone discourage consumption of flavored milk with a new tax?” Kozak represents the farmers who produce the nation’s milk while Tipton represents the processors who pasteurize it and turn it into yogurt, cheese and other finished products. The sugar-sweetened beverage tax was one alternative in a 41-page paper listing options for funding a $1 trillion healthcare overhaul. |
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USDA reopens Dairy Export Incentive Program (DEIP) |
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The USDA has announced the opening of full allocations under the Dairy Export Incentive Program (DEIP) for July 2008 through June 2009. Full usage of DEIP will remove more than 1.5 billion pounds of milk from the U.S. market. “Coupled with the actions being taken by our own Cooperatives Working Together (CWT) program, this will help to address in a meaningful way the imbalance currently present in our market,” said Jerry Kozak, president and CEO of National Milk Producers Federation (NMPF). Tom Suber, president of US Dairy Export Council (USDEC) added the full elimination of all export subsidy programs around the world remains a priority goal. “However, until that goal is achieved, and especially during extremely challenging times like those we are currently facing,” he said, “we must employ all available tools to assist our industry to compete against the active export subsidy programs of the European Union. Our industry has worked hard to establish commercial relationships over the past few years and the DEIP program will sustain U.S. market presence until global demand in dairy products recovers. “In addition to the negative role of EU export subsidies, our exporters also face unfair trading practices and lowered world prices as New Zealand pushes to eliminate its own record-high surpluses at all costs,” Suber said. Now that DEIP has been announced, NMPF and USDEC urged USDA to quickly open the process, given the limited time remaining before the end of the 2008-2009 DEIP year in order for bids to be awarded. Both organizations asked that careful consideration be given to swiftly approving as many bids as possible in order to fully utilize the allocated amounts for each of the covered products. “We look forward to working with USDA as it makes these careful deliberations in the next few weeks,” Kozak said. “USDA should target its awards broadly to address the anti-competitive challenges caused by both the EU and by New Zealand in the global dairy market.” |
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Sierra Dairy: Multi-faceted operation |
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Alan and Rebecca Vander Horst and family define their mission statement as: “Vander Horst Dairies strive to be a reputable, ethical dairy production group, while exhibiting operational and financial excellence and being an employer of choice in the community. The businesses will provide an example of Christian-based values and stewardship for current and future generations, the community and dairy industry.” Sierra Dairy near Dublin is one of a multi-site, family-owned operation opened to the public on May 8, for Southwest Dairy Day. Coordinated by AgriLife Extension and the Alan Vander Horst family and staff, the state-of the- art dairy hosted a crowd of more than 600 people for the one-day event. The Sierra facility is the main dairy with Windmill Farms and Sequoia Calves located nearby. All three operations utilize a three-way cross breeding program that includes Holstein, Jersey, and Swedish Red. The Vander Horst philosophy for all three operations focuses on a low cull rate and low cost replacements, high milk components, low somatic cell counts, high feed efficiency, operation consistency and predictability while providing a good working environment for happy and well-trained employees.
With 32 employees, Sierra Dairy is a 60-head carousel that milks its fresh cows 4X per day; others 2X per day. Seasonal production rates range from 57-65 pounds of milk with a 4.1-4.5% fat, 3.2-3.6% protein and 140,000-230,000 somatic cell count. The combined dead and cull rate is 24%. One of the features of the dairy is a weeping wall manure management system composed of a long, wide and deep sedimentation basin. Two weeping wall systems are installed at the dairy of which the larger primary system includes four chambers; the secondary has two .The chamber walls have small weep holes where the flushed manure from the barns are conveyed to the weeping wall systems. The primary separation is for large sediments and the secondary is for finer sediments. The flush water goes through both systems for maximum filtration. Sierra was originally built in the late 1980s with 900 head in open lots and a double 14 herringbone barn. It was remodeled 2005 through 2008 to the current 3,500 free stalls. “Remodeling was a much slower and more expensive process than anticipated,” he said. With remodeling comes the inconvenience of trying to carry out normal operations while altering and modernizing the facility to fit current needs. Although Vander Horst said it may have been easier to build a new dairy rather than remodel the old one, he has successfully worked out the kinks to make it a winning operation. Windmill Farms, with 22 employees, was originally built in the early 1990s and remodeled also in 2005 through 2008 to a double 22 parallel and the current 2300 head milking capacity. The cross-ventilated cow barn, completed in January 2008, is a 1,050 head capacity that includes a hospital, close-ups and full maternity. Sand covered mattresses are provided and an alley scrape system is one of the main features of the barn. Its milk production results are very similar to Sierra, Vander Horst said. “The learning curve of a lot of new things on this dairy was steep,” he said. “It was very time-consuming and expensive to get everything figured out and properly dialed in. It took one year and a lot of mistakes.” Sequoia Calves is a 960 head capacity for calves 0-50 days old. Vander Horst explained the calves are kept on-site for about five months and then sent to TX-Stein Growers in Smyer, Texas. The calves return at approximately 22 months old. The Sequoia Calves facility, built new in the summer of 2008, is a turnkey cost of everything from the ground up at $1,350 per stall. Vander Horst said the barn is pretty straight forward and operates like it was intended but, “we are still learning the fundaments of raising calves.” Before building the calf barn, calves were outsourced to a custom grower. Vander Horst is especially proud of the added control the barn provides for the environment for the baby calves and its consistency. He said the cross- ventilated design is completely enclosed but without the added evaporative cooling, as Windmill Farms. The barn allows for more labor efficiency, minimal flies and less spoiled feed. Although the barn is much colder in the winter than anticipated, he is hoping it will result in a cooler summer environment. The family’s farming operation, Grass Roots Farming, LLC, farms approximately 7,500 acres to supply various forages to the dairies. Regarding Southwest Dairy Day, Vander Horst thanks AgriLife Extension and participants for a terrific turnout and great show. Most importantly, he and other dairymen felt the show lifted the spirits of those who attended and helped to put Dublin back on the map. |
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Dairy Day lures producers out of barn |
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In spite of low milk prices and unusually hot weather, Southwest Dairy Day on May 8, brought dairymen out of the barn and to Sierra Dairy to visit with exhibitors and to participate in the highly successful event hosted by Texas A&M AgriLife Extension and the Alan Vander Horst family. More than 550 people were fed at the fish dinner but it is estimated more than 650 browsed through the show during the day-long event that included scheduled bus tours of the dairy. More than 65 exhibitors were on hand under a large tent to talk to dairy customers while two seminars conducted by Dr. Saqib Mukhtar and Dr. Sam Feagley were instrumental in providing DOPA credits. Coordinated with the Vander Horst dairy family and employees, the show was organized by Dr. Todd Bilby and Dr. Ellen Jordan, dairy specialists with Texas AgriLife Extension, along with county extension agents Todd Vineyard, Erath; Darick Chabot, Hamilton; Whit Weems, Comanche; and Travis Ball, Archer. “From what I know about the field day held back in 2000, there were only about 37 vendors,” Bilby said. “We were very pleased we doubled the number of vendors and the show was a success.” Besides a big turn out from the tricounty area, producers showed up from eastern New Mexico, the Texas Panhandle, Oklahoma and east Texas. To accommodate tours of the dairy complex, buses ran about every hour and-a-half throughout the day, transporting folks to Sequoia calf barn and Windmill Farms. The tours proved to be informative and educational. “Everyone worked hard and it all came together,” Bilby said. “The dairy was in tip-top shape and the VanderHorst family and staff were wonderful to work with. We are grateful for their willingness to let us have it there and also for our platinum sponsors, Dairy Max, Southwest Dairy Farmers, and Dairy Famers of American (DFA). We thank everyone.” |
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