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JERNSTADT DAIRY
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★ OUR STORY The Jernstadt Family is very proud of our heritage. Since 1831, five consecutive generations have operated the original farm in Big Rapids, Michigan. We are a family-run and family-owned operation. Which is why we’ve been able to maintain those same high-quality standards set down by the earlier generation of Jernstadt farmers. We are committed to the core values of faith, quality, cooperation, integrity and stewardship handed down by our forefathers over 175 years ago. These values are a tradition for us and we promote them through our customers, partners and the community. Dairy farms in the Midwest have been decreasing in numbers rapidly over the last several years. It has been extremely difficult for farmers to make a living in the dairy business due to rising input costs like fuel, fertilizer and feed.
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Jernstadt Dairy is comprised of 7 dairy farms throughout the Big Rapids area. The main farm is located on 205th Avenue in Big Rapids. Bill Jernstadt is the farm manager, equipment operator, and milkman. Dale Jernstadt is the equipment mechanic and irrigation manager. Our hardworking and dedicated staff work year-round, rain, or shine to continue to provide a premium wholesome milk to our consumers. Even though times are currently tough in the dairy industry, it’s such a rewarding feeling to be able to supply our community with high quality, fresh milk.
JERNSTADT DAIRY
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MARKET WATCH
From this vantage point, it’s going to be a very challenging year. With the economy still being is such a slump, its hard to make a profit in the dairy industry the past couple of years. When the economy was at its all-time low in 2009, Jerndtadt Dairy along with many dairy farms took a huge hit. Bill Jernstadt was losing about $500 a day during the summer months. It was devestating. This not only hurt the farm, but the Big Rapids community as well. As for Jernstadt Dairy, rays of sunshine are finally peeking through the dark clouds from 2009 and profits are back up. “It’s certainly not easy, but I’m trying to stay postive this year, hoping the profits in the dairy industry will stay on the rise. We don’t ever want to lose money like we did a couple of years ago,” says Bill Jernstadt, owner and manager of Jernstadt Dairy.
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“IT ’S CERTAINLY NOT EASY, BU T I ’M TRYING TO STAY POSI T IVE THIS YEAR, HOPING THE PROFITS IN THE DAIRY INDUSTRY STAY ON THE RISE.”
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P REDICTIONS FOR DAIRY FARMING IN 2011
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1
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SEVERE MARGIN PRESSURE Due to a growing global economy and rising feed costs, dairy farmers are bracing themselves for another uncertain year in 2011. Farmers are optimistic that they won’t experience a year similar to 2009, when dairy prices plummeted and farms were foreclosed on. Constant regulations also create potential headaches for dairy farmers in 2011.
2
DOMESTIC DAIRY USE WILL CONTINUE TO WALLOW Americans consumed less milk, butter and milk powder in 2010. Once again, it’ll be up to cheese and yogurt to be the heroes on the demand side. Retail price increases won’t help; USDA projects the dairy consumer price index to jump about 5% in the year ahead, double the inflation rate of all other food categories.
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MILK-FEED RATIO
2006
2007
2008
2009
2010
3.80 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2.95 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2.10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1.25 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2005
NO.
3
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4
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5
EXPORTS WILL DRIVE DAIRY DEMAND
BEWARE THE RETURN OF INFLATION
EVEN MORE VOLATILITY IN DAIRY PRICES
Overall, U.S. export volumes were up more than 40% in 2010, absorbing billions of pounds of milk and offsetting flat domestic use. Conditions at the start of 2011 have a positive outlook with import demand remaining strong in emerging markets and higher world prices are making the U.S. a very competitive supplier.
It seems that 2011 is shaping up to be much like 2008. Soaring prices of oil and feed grains must eventually be passed along to consumers in the form of higher food costs worldwide which could cause orders to slow.
The combination of $6 corn and $15 milk can’t be sustained. The harder margins are pinched in the early part of the year and prices will increase later in the year.
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JERNSTADT HARVESTING COW FEED The right combination of both corn and hay is the perfect feed for dairy cattle. “Some cows prefer just corn while others prefer just the grain. The problem is that the dairy cattle won’t get the proper amount of energy and nutrients they need if the feed is not combined. Therefore, a combination of corn and hay is the perfect middle ground,” says Bill Jernstadt. CORN SILAGE
Good corn silage contains nearly 50% grain. It’s an excellent source of energy for dairy cattle. If this feed is properly made, cows will eat large amounts. Corn silage requires protein and mineral supplementation to be balanced for high milk production. Since corn is a high-starch, high-energy food, it decreases the time to fatten cattle and increases yield from dairy cattle. To attain maximum yield, corn should be harvested for silage when it has reached physiological maturity: kernels are fully dented, milk line is 1⁄2 to 2 ⁄3 down from the crown and cells at the base of the kernel (when dissected) are turning black. Immature corn silage is usually wet, and yields less total dry feed per acre. If corn becomes too dry before preserving, field losses are greater and the feed may not preserved as well (poor compaction, molding, and lower palatability).
“ THEREFORE, A COMBINATION OF CORN AND HAY IS THE PERFECT MIDDLE GROUND.”
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LEGUMES AND GRASSES
Legumes and grasses are a major source of forage for dairy animals. These forages are excellent sources of protein, carotene, calcium, and other minerals if they’re harvested and stored properly. High quality forages can make up as much as two-thirds of the feed ratio, with cows consuming 21⁄2 to 3% of their body weight in forage. High quality forages fed in balanced rations will supply much of the protein and energy needs for milk production. Legumes and grasses can be harvested as low moisture silage, haylage, or as hay. Silage and haylage offer the advantages of less leaf loss, less time for field curing, and usually, reduced labor while harvesting. If too wet, undesirable fermentations develop and cattle eat less feed. Forage preserved too dry does not ferment properly and can mold or heat excessively. Rapid filling, good packing, and sealing are additional keys to good preservation. Hay should not be baled or stacked until the feed is at least 80%. Otherwise, heating and molding may develop. Legume and grass haylages and wet hay can heat excessively and lose feeding value. Prolonged and excessive heating is indicated by a brownish, caramelized appearance. It causes protein to join with carbohydrate, lowering available protein and energy in the feed. Heat damage, which can occur in any kind of storage structure, can be avoided or reduced by keeping silos in good repair and harvesting, preserving, and storing the crop using good management practices.
CHASER BIN
COMBINE HARVESTER
A chaser bin, also called grain cart or grain auger wagon, is a trailer towed by a tractor with a built-in auger system, usually with a large capacity from several hundred to over 1000 bushels; around 15 tons (33,000 lb) is average).
The combine harvester, or combine, is a machine that harvests grain crops. It combines into a single operation process that previously required three separate operations: reaping, threshing, and winnowing. Crops harvested with a combine are wheat, oats, rye, barley, corn, soybeans and flax. The waste straw left behind on the field is the remaining dried stems and leaves of the crop with limited nutrients which is either chopped and spread on the field or baled for feed and bedding for livestock.
USAGE
Chaser bins are typically used to transport harvested grain or corn over fields from a combine harvester to a semi-trailer truck or other hauling device which is used to cover larger distances over roads. The use of a chaser bin permits the harvester to operate continually, without the need for stopping to unload. Chaser bins usually require tractors with large power outputs and are popular on the large open farm fields. The auger in the chaser bin is constantly rotating to mix the feed combination of corn and hay. The top picture on the left page shows what the feed looks like once its ground up and mixed well.
COMBINE CORN HEAD
Combines are equipped with removable heads that are designed for particular crops. The standard header, sometimes called a grain platform, is equipped with a reciprocating knife cutter bar, and features a revolving reel with metal or plastic teeth to cause the cut crop to fall into the auger once it is cut up. While a grain platform can be used for corn, a specialized corn head is ordinarily used instead. The corn head is equipped with snap rolls that strip the stalk and leaf away from the ear, so that only the ear and husk enter the throat. This improves efficiency dramatically since so much less material must go through the cylinder. The corn head can be recognized by points between each row.
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