Michigan 2015 Milk
T H E O F F I C I A L P U B L I C AT I O N O F M I C H I G A N M I L K P R O D U C E R S A S S O C I AT I O N
VOL. 99 | ISSUE 11 | MAY 2017
A PEEK INSIDE THE
101st ANNUAL STATE DELEGATE MEETING mimilk.com
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MAY 2017 FEATURES
YOUNG COOPERATORS CONFERENCE 14 | Economist Dr. David Kohl delivered the keynote speech at the 2017 Young Cooperators Conference, challenging producers to strive toward 5 percent better in many small areas to succeed.
On the Cover The members and guests who gathered in Lansing for the 101st
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Annual State Delegate Meeting are part of the many faces helping MMPA shape the future together.
101ST ANNUAL STATE DELEGATE MEETING Peek into the 101st Annual State Delegate Meeting, held March 23 in Lansing, where leaders shared about MMPA activities, members were honored with awards, resolutions were approved and directors were elected.
22 | THE MMPA VALUE PROPOSITION
At the annual meeting, MMPA General Manager Joe Diglio outlined MMPA’s “value proposition,” which comes down to the cooperative’s vision and actions, as well as the benefits derived from listening and understanding as it evolves.
Michigan Milk Producers Association (MMPA), established in 1916, is a member owned and operated dairy cooperative serving approximately 2,000 dairy farmers in Michigan, Indiana, Wisconsin and Ohio.
MAY 2017 | MESSENGER
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Elite Net Merit Sires 7HO11351 SUPERSIRE 7HO12266 YODER New 7HO12165 MONTROSS 7HO11985 TETRIS New 7HO11708 ROOKIE 7HO11525 DONATELLO 7HO11833 RENNIE 7HO11395 MYSTIC 7HO12212 HONEYBEE New 7HO11946 MIDNIGHT
NM$ +866 +845 +840 +812 +774 +750 +749 +744 +734 +733
Rel. 98 90 93 87 90 95 91 90 87 92
Small photos: Macland HF Yoder Rachel-ET, James W. Mcfarland, Elgin, MN; Webb-Vue Montross 7441-ET (VG-85), Summit Farms LLC, Plymouth, WI; Hilmar Rennie 44393-Grade, Hilmar Holsteins, Hilmar, CA. SUPERSIRE photo by Hopman. All bulls except YODER qualify for export to Canada. HONEYBEE has genomic-only Type proof. CDCB/HA Genomic Evaluation 04/17
When you are looking to improve your herd’s overall performance, turn to Select Sires and our elite, proven Net Merit sires. These sires are the best of the best; ranking at the top of the breed. Contact your Select Sires representative to purchase these sires today and add value to your investment!
CONTENTS
6
MMPA MATTERS We're Springing Forward
8
“By staying united, we can and will
QUALITY WATCH
shape the future together.”
Grade A Everyday
–JOE DIGLIO, MMPA GENERAL MANAGER (PAGE 22)
10 12 13
LEGISLATIVE WATCH
2016 Top 10 OYDC Nathan and Amy Pyle
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NEWS & VIEWS
OYDC SNAPSHOT MMPA RECOGNIZES KROGER CO. OF MICHIGAN WITH VALUED PARTNER AWARD
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MMPA RECOGNIZES 35- AND 50-YEAR MEMBERS
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YOUR DAIRY PROMOTION AT WORK
25 28
DEPARTMENTS 33
MERCHANDISE
34
QUALITY PREMIUMS
35 POLICIES 36 FREELINERS 37 CLASSIFIEDS
CURRENT RESOLUTIONS
38
STANDING RESOLUTIONS
39 STAFF
MMPA CORE VALUES:
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QUALITY
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INTEGRITY
Managing Editor................................................ Sheila Burkhardt Editor..................................................................Allison Stuby Miller Advertising Manager......................................Nancy Muszynski Circulation.......................................................................................2,814 An Equal Opportunity Employer – F/M/V/D Michigan Milk Messenger (USPS 345-320) is the official publication of Michigan Milk Producers Association, published monthly since June 1919. Subscriptions: MMPA members, 50¢ per year; non-members, $5 per year.
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MARKET REPORT
PROGRESS
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41310 Bridge Street P.O. Box 8002 Novi, MI 48376-8002
LEADERSHIP
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COMMUNITY
p: 248-474-6672 f: 248-474-0924 w: mimilk.com
Periodical postage paid at Novi, MI and at additional offices. POSTMASTER: Send address changes to Michigan Milk Messenger, PO Box 8002, Novi, MI 48376-8002. (ISSN 0026-2315)
APRIL 2017 | MESSENGER
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MMPA MATTERS
We're Springing Forward BY KEN NOBIS, PRESIDENT
April showers brought the May flowers we have anxiously been awaiting. For those of us who work so closely with nature, another growing season is the welcome beginning of something new. We never know for certain what the season will bring. Will the moisture be adequate or excessive? How about heat units? Will it be a cool summer or an excessively hot summer? We do our best as we watch the season progress. As we experience each season, we also keep an eye on the calendar. Planting marks the beginning of a crop year, but we are already a third of the way through our calendar year, and halfway through MMPA’s fiscal year. We have completed our seasonal meetings, including our 101st Annual Meeting in March. MMPA had no century celebration this year—you only get one chance to turn 100—but we did honor the Kroger Co. and the 50-year anniversary of its Michigan Dairy milk processing plant. Kroger has been a great partner of MMPA, so we thought it fitting to award them our inaugural “Valued Partner” award.
Recognizing the Kroger Co. at our Annual Meeting this year was enjoyable; recognizing milk prices in 2016 was not so much fun. Too much milk in the global marketplace led to low prices, and the rapid rise in milk production in the Great Lakes region added to the impact.
The first milk received at Michigan Dairy originated on MMPA member farms, and that remains true to this day. MMPA proudly supplies the milk that is processed for the 126 Kroger stores in Michigan. We also announced that MMPA would once again this year donate 100 gallons of milk a day for one year to the Food Bank Council of Michigan and that we would add another 50 gallons per day in honor of the Kroger Michigan Dairy’s 50-year anniversary. Recognizing the Kroger Co. at our Annual Meeting this year was enjoyable; recognizing milk prices in 2016 was not so much fun. Too much milk in the global marketplace led to low prices, and the rapid rise in milk production in the Great Lakes region added to the impact. While the state of Michigan saw production increase by 6 percent in 2016, the increase in MMPA’s production was just 3.1 percent. Production per cow increased by 3.2 percent, which says to me that our membership, on average, didn’t add cows last year. If that trend continues and spreads to others, it would help manage current limited processing capacity. In 2008, MMPA began an expansion phase starting with our Ovid facility, having anticipated the rise in milk production. Including the Ovid expansion and other growth initiatives, we have increased our processing capacity from 4 million pounds a day to 8.2 million pounds a day since 2008. Like everyone else, though, we underestimated the magnitude of the looming increase in milk production. MMPA continues to seek ways to add capacity to our existing facilities while at the same time looking at a large joint project with Glanbia, Dairy Farmers of America, and Foremost Farms. We are optimistic that we will reach an agreement and move forward on this. The result would be a new 8 million pound per day cheese processing plant in our own backyard. The status of global dairy trade was also updated at the Annual Meeting. With 15 percent of our dairy production exported, it isn’t a subject we can turn our back on, especially if we want to see our dairy industry grow and prosper. Doing business in a global marketplace is essential, even though it may be more complicated than dealing with just a domestic market. Production increases on the other side of the globe today have a direct impact on the value of our domestic products. These were just a few of the issues we focused on at this year’s Annual Meeting. It was clear that our members recognize the complexities of today’s dairy world and the economic conditions we face. The MMPA board and staff are focused on taking the correct steps to meet the challenges of today and tomorrow. READ MORE ABOUT THE ANNUAL MEETING ON PAGES 16-23.
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MESSENGER | MAY 2017
QUALITY WATCH
Grade A Everyday BY BRIDGET MOORE, MEMBER REPRESENTATIVE AND CHRISTY DINSMOORE, AREA SUPERVISOR
“The inspector is here!” can be heard many times across dairy country as milk house doors are closed and paper towels are put out. Grade A compliance every day is not simply to keep the inspectors happy, the appearance of your farm reflects you as a dairy farmer to the dairy industry as well as the consumer. Would a consumer rather drink milk from a clean milk container or smudged up damaged milk jug? The sanitation of your farm is reflective of the milk jug to the consumer. Milk quality tests are only one of the ways that milk quality is assured. And they are only measuring the results. Grade A surveys, federal check ratings and routine inspections ensure that the production of milk on your farm is done in a consistently sanitary environment. Why must our farms be inspected? The Grade A milk law is managed by the Food and Drug Administration (FDA) as the Pasteurized Milk Ordinance (PMO) to offer assurance to consumers their food is produced in a safe environment. Both dairy farms and dairy plants must meet the requirements of the PMO to produce Grade A products. In fulfillment of the PMO, a state agency conducts surveys on dairy farms to maintain Grade A status every 18-24 months.
Don’t view maintaining Grade A compliance as a means to keep an inspector happy, do it as a spokesperson of your industry.
Don’t view maintaining Grade A compliance as a means to keep an inspector happy, do it as a spokesperson of your industry. Consumers are often far removed from the farm, and this is your chance to make a difference in helping the consumer understand your story and the importance you place on producing a safe, quality product for their dinner tables. Whether you are the large producer with multiple barns or if you are that little red barn up on the hill, chip away 5-10 minutes every day to stay ahead of the inspector—and also to share your story. Not only will chipping away eliminate the stress of inspections, but it will also allow you to stay in a routine that will make survey prep easier. By taking the time to do a couple minor projects on a regular basis, there will be fewer big projects to do, and fewer items to complete on your inspection sheets. Your MMPA field representative is available to walk through your farm with you and discuss inspection items with you. Your most recent MDARD and MMPA inspections are posted in the milkhouse blue book for you to review also. A “Grade A Everyday” approach will reduce the possibility for failed surveys and the costs they are associated with to you and the cooperative. A failure means that the milk from that BTU is delisted, and may not be used for Grade A purposes. This impacts the marketability of your milk and creates a ripple effect felt by all members. Try changing how you think about your inspections: your field representative is prepping you for state and federal inspections, and you are contributing your story to our industry. Nobody likes spilled milk, so let’s work together to reach the goal of Grade A everyday.
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MESSENGER | MAY 2017
80TH ANNUAL
MMPA 4-H
MILK MARKETING TOUR JUNE 27-28
WHAT:
WHY ATTEND?
MMPA/4-H Milk Marketing Tour two days of dairy & milk marketing tours, presentations and activities
WHO:
15 to 18-year-olds (as of Jan. 1, 2017) 4-H/FFA members or other students interested in dairy or milk marketing
WHEN:
June 27-28, 2017
WHERE:
MMPA Office, Novi, Michigan
» Meet other students interested in dairy » Tour a dairy processing plant » Meet leaders in the Michigan dairy industry » Earn the chance to attend the National 4-H Dairy Conference in Madison, Wisconsin
SPACE IS LIMITED TO THE FIRST 30 STUDENTS Contact Jessica Welch at MMPA for more information at 248-474-6672 or jwelch@mimilk.com. Students who have already participated in the Milk Marketing Tour are not eligible to attend.
REGISTRATION FORM - MMPA 4-H MILK MARKETING TOUR PARTICIPANT INFORMATION ________________________________________________________________________________________ Name ________________________________________________________________________________________ Street Address ________________________________________________________________________________________ City/State/Zip ________________________________________________________________________________________ County Phone Affiliation:
4-H
FFA
Other
Age:______
Gender:
Male
Female
ADULT CHAPERONE INFORMATION ________________________________________________________________________________________ Name
DUE MAY 26 Mail completed form to: Melissa Elischer Michigan State University Anthony Hall 474 S. Shaw Lane Rm 1287H East Lansing, MI 48824
________________________________________________________________________________________ Street Address ________________________________________________________________________________________ City/State/Zip ________________________________________________________________________________________ Phone
MAY 2017 | MESSENGER
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NEWS & VIEWS
Producers Scoring 95 percent or higher on Grade A surveys and federal check ratings
Breakfast on the Farm provides a fun and free learning opportunity for families
Skudlarek Dairy Farm LLC Oaks Dairy Farm Sauer Dairy Farms Inc Butterwerth Dairy Farm LLC Barry Troyer * Grams Farms Owen Beachy Wilbur Miller Robert Hemmingson Brad Pellegrini * Wieciech Farms Getz-Milk Dairy LLC Kraniak Brothers Sherwin Wilson Robert Paidl * *100
The Breakfast on the Farm program is headed to Gratiot and Ottawa Counties this summer! Join us at one of our two events to meet the hardworking families who strive to produce safe, wholesome food for Michigan communities. BOTF is a free, fun and family-friendly event where people of all ages are welcome to visit a real farm and get a firsthand look at modern food production.
March pricing down this month, but higher than prior year The USDA announced March’s Class III milk price was $15.81 per hundredweight, down $1.07 from February's price, but $2.07 above March 2016. The Class IV price was $1.27 lower than last month, at $14.32, but was $1.58 higher than March 2016.
Upcoming Events May 2 Advisory Committee Meeting, Novi June 27-28 4-H Milk Marketing Tour, Novi July 6 Advisory Committee Meeting, Novi
Michigan State University Extension created the Breakfast on the Farm program in 2009. The first event brought in 1,500 people from across the state. Over the years, the program has grown and, as of last year, more than 80,850 kids and adults had attended BOTF. “The goal of Breakfast on the Farm is to connect local consumers to farmers, giving families an up close and personal look at how their food is grown and raised,” said Ashley Kuschel, MSUExtension BOTF program coordinator. At past BOTF events, attendees have been able to learn about topics such as proper animal care, crop production, milk production and operation of farm equipment. Visitors were able to participate in various hands-on activities, such as taking wagon rides, sitting on tractors, petting baby calves and eating ice cream. BOTF is a fun way to get kids interested in their food and establish the importance of farms in modern agriculture. This year, the 2017 hosting farms would like to show visitors the high level of animal care provided in a modern dairy operation. BOTF is making it possible for families to get a behind-the-scenes look at how their milk and other dairy products are produced.
Upcoming Breakfast on the Farm dates and farm hosts: June 24: Ottawa County—J&J Dairy, Marne, Michigan August 19: Gratiot County—De Saegher Dairy, Middleton, Michigan
Both BOTF events will be held on a Saturday from 9 a.m. to 1 p.m., with the breakfast ending at noon. Although this is a free event, tickets are required for the breakfast. Ticket pick-up locations will be announced approximately one month before each event. For J&J Dairy, free tickets will be available at various locations around the community and online May 24. For De Saegher Dairy, tickets will be available July 19. BOTF IS SUPPORTED BY GENEROUS LOCAL AND STATEWIDE SPONSORS. TO FIND OUT MORE ABOUT A BREAKFAST ON THE FARM EVENT IN YOUR AREA OR TO SEE PICTURES FROM PAST EVENTS, PLEASE VISIT WWW.BREAKFASTONTHEFARM.COM.
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MESSENGER | MAY 2017
Raising your Hand for 4-H This spring, MMPA is asking its members to raise their hand in support of one of its long-time partners: MSU Extension and Michigan 4-H. This key program provides kids with the opportunity to learn by doing, grow from failure and develop critical life skills. No one knows this better than 4-H friends and alumni who have experienced these programs firsthand. That is why we are asking these alums to join us in Raising Your Hand for 4-H and registering as 4-H alumni. Now through June 30, every alumni hand raised will count as a vote for their state with cash prizes of $20,000, $10,000 and $5,000 available to the top three states. In addition to helping Michigan 4-H win a cash prize to support their programming, your registration will also connect you with the National and Michigan 4-H alumni communities where you will receive valuable updates and opportunities. With long-standing connections to our agricultural community, there are no doubt many 4-H alums throughout the MMPA family. If you are a 4-H alum, we hope you will raise your hand for 4-H and provide kids across Michigan with hands-on learning that empower them for a lifetime. Visit 4-h.org/raise-your-hand to participate.
Advisory Committee DISTRICT 1 Brad Hart, Clayton..................................517-445-2649 Josh Lott, Mason.....................................517-740-9981 Art Riske, Hanover..................................517-524-6015 Bruce Lewis, Jonesville ........................517-869-2877 Jeff Horning, Manchester....................734-428-8610
DISTRICT 2 Danny Ransler, Gobles..........................269-628-4218 Dan Ritter, Potterville............................517-645-7318 Richard Thomas, Middlebury, IN.......574-825-5198 Michael Oesch, Middlebury, IN.........574-825-2454 Mark Crandall, Battle Creek.................269-660-2229
DISTRICT 3 Bill Stakenas, Free Soil...........................231-425-6913
U.S. Dairy Execs tout strong partnership with Mexican Dairy Industry during visit National Milk Producers Federation (NMPF), U.S. Dairy Export Council (USDEC) and the International Dairy Foods Association (IDFA), pledged a continued commitment to dairy trade with Mexico during discussions in March with Mexican government, dairy farmers and industry officials. Jim Mulhern of NMPF, Tom Vilsack of USDEC and Michael Dykes of IDFA, stressed the U.S. dairy sector’s robust commitment to Mexico’s dairy industry – the No. 1 market for American dairy exports.
Burke Larsen, Scottville........................231-425-8988 Gary Nelsen, Grant.................................231-834-7610 Tim Butler, Sand Lake............................269-330-5538 Bill Gruppen, Zeeland...........................616-875-8162
DISTRICT 4 Dave Folkersma, Rudyard....................906-630-1957 Russ Tolan, Ossineke..............................989-471-2993 Ron Lucas, Posen....................................989-379-4694 Marvin Rubingh, Ellsworth.................231-588-6084 Jeremy Werth, Alpena...........................989-464-4022
DISTRICT 5 Tom Jeppesen, Stanton........................989-506-5287 Bruce Benthem, McBain.......................231-825-8182 Amy Martin, Leroy..................................231-388-0496
Mulhern and Vilsack spoke at the Femeleche conference in Mexico City, which brought together Mexican dairy industry leaders, farmers and government officials. To further convey the organizations’ commitment to collaboration with Mexico, the three CEOs also met with Mexican Minister of Economy Ildefonso Guajardo Villarreal, as well as the Mexican Minister of Agriculture Jose Eduardo Calzada Rovirosa and the U.S. Ambassador to Mexico Roberta Jacobson.
Mike Rasmussen, Edmore...................989-304-0233
NMPF’s outreach follows the Memorandum of Understanding NMPF and USDEC signed last August with key Mexican industry organizations, creating the U.S.Mexico Dairy Alliance. Both initiatives were aimed at cultivating the critically important U.S.-Mexico relationship, which has provided a boon to U.S. dairy exports and helped spur gains in Mexican dairy consumption, to both nations’ benefit.
Jamie Meyer, Ionia..................................989-640-3372
The reassurance from U.S. dairy leaders is coming at a pivotal time in U.S.-Mexico trade relations. The Trump Administration recently released a draft of the NAFTA renegotiations letter it intends to submit to Congress. That letter references the goal of “maintaining and expanding current market access” to Mexico and Canada – echoing a key message Mulhern delivered while in Mexico last month.
Mike Noll, Croswell.................................810-404-4071
Robert Lee, Marion................................231-743-6794
DISTRICT 6 Aaron Gasper, Lowell............................616-897-2747 Steve Thelen, Fowler.............................989-682-9064 Brad Ritter, Byron....................................586-405-4749 David Reed, Owosso..............................989-723-2023
DISTRICT 7 Scott Kleinhardt, Clare..........................989-386-8037 Philip Gross, Weidman..........................989-289-0670 Jason Elenbaum, Mayville...................989-274-1974 John Bennett, Prescott.........................989-345-4264
DISTRICT 8 Mike Bender, Croswell..........................810-404-2140 Nick Leipprandt, Pigeon......................517-897-4155 Darwin Sneller, Sebewaing.................989-977-3718 Bill Blumerich, Berlin.............................810-706-2955
MAY 2017 | MESSENGER
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LEGISLATIVE WATCH
Canada’s Dairy Trade Actions Hurting Rural America In April, the National Milk Producers Federation (NMPF), the U.S. Dairy Export Council (USDEC) and the International Dairy Foods Association (IDFA) called on the federal government, and on governors in northern states, to take immediate action in response to Canada’s violation of its trade commitments to the United States. Because of the new “Class 7” pricing policy, which is expressly designed to disadvantage U.S. exports to Canada and globally, multiple dairy companies in Wisconsin and New York have been forced to inform many of their supplying farmers that the Canadian market for their exports has dried up. For some farmers, this means that the company processing their milk and shipping it to Canada can no longer accept it starting in May. This is a direct consequence of Canada’s National U.S. dairy organizations urged Ingredients Strategy and new Class 7 milk pricing program.
the Trump Administration to fight back against protectionist Canadian trade policies that are slamming the door to American dairy exports in violation of existing trade commitments between the two nations.
“Canada’s protectionist dairy policies are having precisely the effect Canada intended: cutting off U.S. dairy exports of ultra-filtered milk to Canada despite long-standing contracts with American companies,” said Jim Mulhern, president and CEO of NMPF. “American companies have invested in new equipment and asked dairy farmers to supply the milk to meet demand in the Canadian dairy market. This export access has suddenly disappeared, not because the market is gone, but because the Canadian government has reneged on its commitments.”
“Our federal and state governments cannot abide by Canada’s disregard for its trade commitment to the United States and its intentional decision to pursue policies that are choking off sales of American-made milk to the detriment of U.S. dairy farmers,” said Tom Vilsack, president and CEO of USDEC “It is deeply concerning that Canada has chosen to continue down a ‘beggar thy neighbor’ path of addressing its internal issues by forcing the U.S. dairy industry to bear the harmful consequences.” Vilsack noted that while farm families in the Northeast and Midwest are suffering the immediate consequences of the loss of Canadian markets, “thousands more will suffer if Canada persists in using its programs to distort the global milk powder markets so critical to tens of thousands of American dairy farmers.” “The U.S. dairy industry is united on this issue because these restrictive policies effectively bar a significant U.S. export to Canada, with total losses estimated to hit $150 million worth of ultra-filtered milk exports from Wisconsin and New York. As we feared, these policies are now prohibiting our nation’s dairy processors from accessing the Canadian market,” said Michael Dykes, D.V.M., president and CEO of IDFA. “IDFA is speaking out against Canada’s protectionist policies on Capitol Hill, and asking the Trump Administration and state governors and legislators to insist that Canada honor its trade commitments and allow more market access for U.S. dairy products.” Despite efforts by the U.S. government and dairy organizations to shed more light on the Canadian program, Canada is refusing to share sufficient details. For instance, limited information has been posted online by certain provinces, and some of that information has subsequently been removed from provincial milk authorities’ websites in what appears to be aimed at obfuscating how the program operates. Despite this lack of transparency, U.S. companies and their supplying farmers are already feeling its real-world consequences. The United States is Canada’s largest export market, accounting for approximately three-fourths of Canada’s total exports. The organizations urged both federal and state governments to move swiftly to demonstrate to Canada that trade is a door that must swing two ways to have a functional relationship. SOURCE: NMPF
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MESSENGER | MAY 2017
OYDC SNAPSHOT
TOP 10
OYDC 2016 Nathan & Amy Pyle
Our kids:
Our mission:
Caleb (3), Luke (1) and expecting our third child in early May.
Pyle Dairy Farm Zeeland Michigan West Michigan Local, District 3
Our farm:
We hope to provide for our families, be good stewards of God’s creation and provide quality products by doing our work with integrity and best practices.
Pyle Dairy Farm, Inc. is an S Corporation, owned by Nate, his brother Paul and their Dad, Dave. The farm was founded in 1848 and we are the sixth generation.
Our herd: Pyle Dairy Farm, Inc. milks 150 cows and has a total of 275 head. We milk twice a day in a double 8 parallel parlor.
Our land: 260 acres comprised of corn, wheat, hay, and soybeans.
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MESSENGER | MAY 2017
Best part of being a dairy farmer: We view it as a gift from God that we can work closely with our family and spend time working with the land and with the animals.
What’s next: To continue transferring ownership of the farm to the next generation and to continue educating the public and our community about modern dairy farming.
MAY 2017 | MESSENGER
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YC CONFERENCE
Economist Dr. Kohl Charges Young Cooperators to Strive Toward Five Percent Better “Five percent better in production. Five percent better in marketing. Five percent better in finance. Five percent better in putting their systems together,” he continued, shedding light on how some 40 percent of producers continue to squeeze out a profit or minimize losses despite the agriculture industry’s current economic turbulence.
Success in business is doing 5 percent better in a lot of different areas, Dr. David Kohl told an audience of MMPA members in April.
Kohl, a professor emeritus in the Agricultural and Applied Economics Department at Virginia Tech and president of AgriVisions, spoke at the MMPA Young Cooperators Conference on April 7 in Frankenmuth, Michigan, offering advice on how to position your dairy during the economic reset. “Good times don’t last forever, and nor do bad times. You often make the worst mistakes during the good times. You know why? We get complacent. Complacency will kill you,” he asserted. Kohl illustrated his “5 percent rule” by segmenting producers into the top 40 percent and bottom 30 percent, separated by the middle 30 percent of “tweeners.”
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MESSENGER | MAY 2017
The top 40 percent is driving toward efficiency by continually working to improve across all areas of production. Kohl noted one producer who focuses on his cash flow throughout the year to make tweaks in his operation for the greatest success. What separates the “tweeners” from the top 40 percent of producers is their method to managing their business, who know change is needed but don’t do anything to adjust. According to Kohl, the middle 30 percent take a reactive vs. proactive approach that can hold them back The bottom 30 percent, meanwhile, is complacent and “in a state of trance.” But outside influences continually have an impact on pricing and production of U.S. agriculture producers. “My whole role is to connect the dots. What I’m seeing around the world is coming back to influence your business,” he explained. Kohl relayed the various factors he’s currently monitoring: international trade, fuel costs, the Federal Reserve and interest rates, and Mother Nature.
“International trade is the biggest risk across all of agriculture today,” he said, noting $1 of every $5 farm income dollars last year was from international trade. Further, actions and statements from Washington, D.C. that impact international relations can result in retaliation from other countries which hurts agriculture. Fuel costs, meanwhile, are expected to be lower long term which indicates financial health. The Federal Reserve may also work to drive interest rates back to a “normal” of 6.5 percent. Kohl advised producers to consider rising interest rates when planning finances. The last factor, Mother Nature, will increasingly be an issue for younger generations. “Plan on weather in extremes. When you have this abnormality in weather, you can expect volatility in costs and prices,” he explained. “What you’re going to see is volatility in extremes. Get ready for that. It’s going to create short run opportunities and you’re going to be on these roller coasters. Don’t let the highs get too high or the lows get too low.” But how does Kohl advise producers to adapt to the many factors impacting their business? It comes down to focus. “In today’s world, we have all this clutter going on. Manage the things you can manage, manage around the other clutter. Maintain your focus.”
Kohl's four cornertones
More about the 2017 YC Conference
of success:
The 2017 Young Cooperators (YC)
Plan Strategize
Conference was held April 7 in Frankenmuth. In the morning, MMPA’s Ken Nobis and Joe Diglio led the program along with UDIM’s Sharon
Execute Monitor
Toth. The leaders provided updates on the cooperative, the dairy industry and Michigan’s dairy checkoff. The keynote speaker was Dr. David Kohl.
This focus can be achieved by goal setting and working within Kohl’s four cornerstones of success: plan, strategize, execute and monitor. Kohl advised everyone to write down their 5-year and 10-year goals and continually monitor actions taken toward reaching those goals.
In the afternoon, YCs toured K&K
And through the process, Kohl knows doing five percent better in a variety of areas will drive producers to success.
of the Outstanding Young Dairy
Kern Farms, a member farm with four robotic milkers in Bridgeport, Michigan. In the evening, YCs enjoyed dinner and entertainment with comedian/magician Cameron Zvara. The YC Conference is a component Cooperator (OYDC) program and is organized annually with assistance from the YC planning committee,
YOUNG COOPERATORS AT THIS YEAR’S CONFERENCE ENJOYED FELLOWSHIP WITH OTHER MEMBERS BETWEEN SESSIONS BY PLAYING THE MMPA VERSION OF “CARDS AGAINST HUMANITY.” IN THE AFTERNOON, THE CONFERENCE INCLUDED A TOUR OF K & K KERN FARMS. THE 2017 YC CONFERENCE PLANNING COMMITTEE INCLUDED (BACK ROW, L-R): 2016 OYDC RUNNERUP DAVE TOLAN, 2015 RUNNERS-UP REGINA AND DARREN COFFEY. (FRONT ROW, L-R): 2015 OYDC SHAWN AND BETH VANDRIE AND 2016 OYDC BARBARA AND DARRIN SIEMEN.
made up of the 2015 and 2016 OYDC representatives and runners-up. The 2017 OYDC conference—where the upcoming representatives and runners-up are selected—will be held August 17-18 in Novi, Michigan. For more information, please contact Jessica Welch at jwelch@mimilk.com or 248-474-6672, ext. 303.
MAY 2017 | MESSENGER
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1 0 1 st A N N U A L S T A T E
Focusing on the theme of ''Shaping the Future Together,” MMPA's 101st Annual State Delegate Meeting was held on March 23 at the Lansing Center in Lansing, Michigan. Approximately 400 members and guests gathered at the meeting to discuss dairy exports, recognize members and partners, adopt policy resolutions and elect board members.
MMPA BOARD MEMBER CORBY WERTH (LEFT) AND KEN NOBIS (RIGHT) INTRODUCED THE 2016 TOP 10 OUTSTANDING YOUNG DAIRY COOPERATORS (OYDC) AT THE MEETING, INCLUDING WINNERS DARRIN AND BARBARA SIEMEN (CENTER, RIGHT), OF HARBOR BEACH, MICHIGAN, AND RUNNERS-UP DAVE AND GRETCHEN TOLAN (CENTER, LEFT) OF OSSINEKE, MICHIGAN.
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MESSENGER | MAY 2017
DELEGATE MEETING
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ABOVE: MMPA PRESIDENT KEN NOBIS PROVIDED AN UPDATE ON INDUSTRY AND MMPA ISSUES, INCLUDING INTERNATIONAL TRADE, PRODUCTION GROWTH IN THE MIDWEST AND HOW THE CO-OP IS WORKING THROUGH VOLATILE YEARS IN THE INDUSTRY: “ONE THING IS STABLE IN OUR DAIRY WORLD, AND THAT IS OUR CO-OP, MICHIGAN MILK PRODUCERS ASSOCIATION.” LEFT: BUSINESS CONDUCTED BY THE DELEGATES INCLUDED THE ADOPTION OF THE 2017 MMPA RESOLUTIONS AND ELECTION OF KRIS WARDIN OF ST. JOHNS, MICHIGAN AND MARK ICIEK OF GLADWIN, MICHIGAN TO THE BOARD OF DIRECTORS IN THREEYEAR, AT-LARGE POSITIONS.
MAY 2017 | MESSENGER
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ABOVE: MMPA TREASURER ERIC FRAHM PRESENTED MMPA DELEGATES WITH A REPORT ON THE CO-OP’S FINANCIAL RESULTS FROM FISCAL YEAR 2016: “ACHIEVING CONSISTENT NET SAVINGS ALONG WITH MANAGING AN APPROPRIATE WORKING CAPITAL POSITION ALLOWS THE ASSOCIATION TO EFFECTIVELY HANDLE VOLATILE MARKET CONDITIONS AS THEY SURFACE.” RIGHT: IN HIS ADDRESS TO THE DELEGATES, MMPA GENERAL MANAGER JOE DIGLIO SURPRISED MMPA DIRECTOR OF MILK SALES CARL RASCH WITH AN ANNOUNCED DONATION OF $1,000 TO THE MICHIGAN DAIRY MEMORIAL AND SCHOLARSHIP FOUNDATION IN RASCH’S NAME. THE ANNOUNCEMENT IS IN RECOGNITION OF RASCH’S 40 YEARS OF SERVICE TO MMPA AND THE IMPACT HE HAS MADE ON THE CO-OP’S MILK MARKETING STRATEGY.
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MESSENGER | MAY 2017
1 01 s t AN N U A L STA TE
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DEAN LETTER (RIGHT), DIRECTOR OF MEMBER SERVICES, JOE PACKARD (LEFT), MEMBER REPRESENTATIVE, AND KEN NOBIS (SECOND FROM RIGHT) PRESENTED ALAN AND DEBORAH KOPPENOL (CENTER) OF COOPERSVILLE, MICHIGAN, WITH THE HIGHEST QUALITY MILK PRODUCTION AWARD.
MAY 2017 | MESSENGER
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MMPA Recognizes Kroger Co. of Michigan with Valued Partner Award ANNOUNCES DONATION OF NEARLY 55,000 GALLONS OF MILK MMPA honored The Kroger Co. of Michigan with the inaugural Valued Partner Award at MMPA’s 101st Annual State Delegate Meeting on March 23 in Lansing, Michigan. In conjunction with the award, MMPA announced the donation of 150 gallons of milk per day for one year— a total of 54,750 gallons—with 50 of those gallons to recognize the 50th anniversary of Kroger’s Michigan Dairy plant.
“MMPA is proud to honor The Kroger Co. of Michigan today with our inaugural ‘Valued Partner’ award,” said Ken Nobis, president of MMPA. “It is not just the supplier-customer relationship between MMPA and Kroger that is key, it is our shared values on joint initiatives that makes us proud to work with Kroger. From youth development programs to dairy promotion to crisis response, Kroger has stood by our side for 50 years and counting.” MMPA dairy farms have supplied the Kroger’s Michigan Dairy plant in Livonia, Michigan since it first opened in 1967 and the two organizations have sustained a partnership that extends into a variety of initiatives. Annually,
Kroger welcomes a group of youth on MMPA’s 4-H Milk Marketing Tour to the Michigan Dairy plant to help the students learn more about the dairy supply chain. MMPA and Kroger have also partnered in dairy promotion programs through the “Pure Michigan” campaign and in-store promotions featuring MMPA farms. Last year, MMPA and The Kroger Co. of Michigan partnered on a milk donation initiative to support Flint, Michigan residents following the Flint Water Crisis. The Pediatric Public Health Initiative lists nutrition as one of the evidencebased interventions that will optimize the outcomes. Dairy is one of the foods encouraged for families to mitigate lead
absorption and so MMPA and Kroger worked together to bring over 24,000 gallons of 2% milk to families in Flint in 2016. “Throughout the Michigan Dairy’s 50-year history, we are grateful for our relationship with MMPA and its dairy farmer members to produce quality products for our Kroger stores. The Kroger Co. of Michigan is honored to be recognized for this award today and proud to support the 150 gallon per day for one year milk donation,” Regina Kopera, site leader of the Michigan Dairy, said. At the 100th Annual State Delegate Meeting last year, MMPA announced a donation of 100 gallons of milk per day for one year to the Food Bank Council of Michigan. “The 100 gallon per day donation in recognition of MMPA’s 100th Anniversary was so successful and well received that our board of directors voted to repeat it this year and add 50 gallons per day donation in recognition of Michigan Dairy’s 50th Anniversary,” Nobis added. The milk donation of 54,750 gallons announced today will be contributed to the Food Bank Council of Michigan and distributed to their regional food banks which serve all 83 Michigan counties. Processing and packaging of over 18,000 gallons of the donation will be provided by the Michigan Dairy plant in Livonia.
REGINA KOPERA, SITE LEADER OF THE KROGER MICHIGAN DAIRY AND RACHEL HURST, CONSUMER AFFAIRS MANAGER OF THE KROGER CO. OF MICHIGAN ACCEPTED THE VALUED PARTNER AWARD AT THE MMPA 101ST ANNUAL STATE DELEGATE MEETING ON MARCH 23 FROM CARL RASCH, DIRECTOR OF MILK SALES AT MMPA AND KEN NOBIS, PRESIDENT OF MMPA.
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Kroger is recognizing the Michigan Dairy’s 50th anniversary this year with an event this August and in-store promotions on its dairy products.
MMPA Recognizes 35- and 50-year Members
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wenty-three MMPA members were recognized with 35- or 50-year member awards at the MMPA 101st Annual State Delegate Meeting, March 23, 2017. MMPA has traditionally recognized 35-year members and last year added the new MMPA Milestone award to honor those holding membership for 50 years. MMPA President Ken Nobis congratulated and praised the 35-year members for their dedication to the cooperative: “We commend you for your dedication and loyalty to MMPA and the dairy industry over the years.”
35-Year Members Kenneth Vredenburg, Alma Local Albern Olson, Alma Local Nelson E. Frye, Constantine Local Gary Zuiderveen, Evart Local Louis & Karen Fifelski, Kalamazoo Local Jeanne Drummond, Mid-Michigan Local
After the 35-year members were recognized, Nobis recognized the group of MMPA Milestone award winners who joined MMPA in the year 1967.
Raymond Zimmerman, Mid-Sanilac Local
A video presentation showcased the vast changes the Michigan dairy industry has undergone the past several years and since these members began dairy farming.
William Gruppen, West Michigan Local
The presentation highlighted information from 1982 and 1967, when these members joined MMPA. In 1982, there were 6,046 MMPA members in who marketed a total of 3.4 billion pounds of milk, while in 1966 membership totaled 7,973 and marketed 2.6 billion pounds of milk. Today, MMPA has approximately 1,200 members and marketed over 4.8 billion pounds of milk in the 2016 fiscal year.
Richard Kaufman, Mid-Thumb Local
Robert Gruppen, West Michigan Local Dennis Raterink, West Michigan Local
50-Year Members Larry Crandall, Barry-Eaton Local Robert Lee, Evart Local William Stein, Evart Local Larry L. Keinath, Frankenmuth Local Ronald N. Keinath, Frankenmuth Local Petzold Dairy Farms Inc., Frankenmuth Local MSU Dairy Farm, Ingham County Local Thomas Goodman, Mid-Michigan Local David J. Lee, Mid-Sanilac Local Harland Schultz, Mid-Sanilac Local Leonard Schaub, Upstate Local Darwin Huff, West Michigan Local
“We commend you for your dedication and loyalty to MMPA and the dairy industry over the years.”
MAY 2017 | MESSENGER
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The MMPA Value Proposition MMPA GENERAL MANAGER JOE DIGLI OUTLINES “VALUE” AT ANNUAL MEETING
Value. It’s our worth, it’s the advantage we hold and it’s the principles that guide us. In a cooperative like MMPA, collective ownership means members share in the business’ value.
with others in true “cooperative spirit.” An example he provided is MMPA’s announcement to participate in exploring a joint venture to build a cheese plant in Michigan with Glanbia, Foremost Farms USA and Dairy Farmers of America.
For General Manager Joe Diglio, MMPA’s “value proposition” comes down to the cooperative’s vision and actions, as well as the benefits derived from listening and understanding as it evolves. Diglio outlined these components in his address to delegates at the MMPA 101st Annual State Delegate Meeting on March 23 in Lansing, Michigan.
Taking action
Guiding by vision Despite two contentious years for dairy farmers, Diglio offered reassurance as to how MMPA is managing and continually serving members. “The dairy industry has always been subjected to volatility and unpredictability, however it is how we deal with them that will define us and how we move towards our vision,” he asserted. MMPA’s vision, as Diglio detailed, is guided by its past but is directed by a strong strategy which includes product diversification. MMPA has maintained a prudent investment strategy and continues to explore ways to work
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But it goes beyond just vision. “Vision alone can’t enhance value, it takes action to get things done,” Diglio continued. “With the continued production growth we experienced this year, asset maximization has been a continual focus.” Deliberate actions enacted by MMPA have kept the association on top of continued production growth in the Midwest, especially Michigan. Diglio explained how the Ovid and Constantine plants received an additional 438,000 pounds a day, amounting to 160 million more pounds of milk in the fiscal year. Further, Diglio said building business relationships with new and existing customers and forming strategic partnerships will allow MMPA to align with others on innovation, product development and diversification.
Listening for clarity In striving to provide value, Diglio says listening to those the co-op represents, serves and provide for has a meaningful impact. With time set aside to listen to member concerns, hear from customers and seek input from national industry organizations, MMPA keeps its ears open. “Communication is a two-way street,” he added. “Besides our ability to distribute important information, input from others can help clarify many misinterpretations, prepare people for changes and help identify challenges we face. As we all know very well, changes happen quickly and can have significant repercussions if we don’t prepare for them.”
Understanding needs Moving past listening, Diglio explored the importance of understanding the needs of consumers and the market. Further, with many challenges in regulatory compliance, consumer influences and political instability, the cooperative faces headwinds in everyday business. Understanding what those challenges are and how to move through them is key.
“In order to be successful in today’s world, a firm understanding of consumer trends, heads wind and market conditions are needed.”
“In order to be successful in today’s world, a firm understanding of consumer trends, heads winds and market conditions are needed,” Diglio explained. In understanding these needs, MMPA has stayed involved in communicating with consumers and holding a “voice at the table” on national issues. In combating difficult market conditions, Diglio says MMPA is developing a diversified product mix and “working with customers on a collaborative strategy to hedge market variations.”
Evolving for survival To round out MMPA’s value proposition, Diglio ended with an examination of how the co-op has evolved and will continue to evolve to find success. “I believe we all can recognize how MMPA has evolved over the years. This transition has been influenced by relationships, industry changes and resources needed to accommodate a growing business. Staying complacent is not an option for survival.” The future of MMPA will involve further collaboration with customers and industry partners on a strategy in tune with current needs. The resources available, such as employee talent, also continue to evolve in today’s world. For the MMPA cooperative, where the members are owners of the business, knowing the value it provides is essential. Diglio’s address stressed the importance of staying untied as the co-op moves into the future. “Understand, we all feel the impact during good and challenging times. While there aren’t many things we can say with certainty, one thing for sure is we will face more challenges. By staying united, we can and will shape the future together,” Diglio concluded.
“Understand, we all feel the impact during good and challenging times. While there aren’t many things we can say with certainty, one thing for sure is we will face more challenges. By staying united, we can and will shape the future together.” —JOE DIGLIO, MMPA GENERAL MANAGER
MAY 2017 | MESSENGER
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YOUR DAIRY PROMOTION AT WORK
TURNING THE TABLE TO
Celebrate Our Consumers DURING JUNE DAIRY MONTH
BY JOLENE GRIFFIN, UNITED DAIRY INDUSTRY OF MICHIGAN When was the last time you stopped someone in the grocery store and thanked them for buying milk, ice cream or butter? It doesn’t come easy to many of us. Looking at my own farm family, I know they are experts at caring for our cows, raising healthy calves and growing crops to feed our animals. They love cows. Sharing their dairy story isn’t natural to them, which is probably why I get asked to lead farm tours. We know the milk we produce is high quality and provides many nutrients needed in our diet, and it’s economically priced for families. Sometimes we take for granted that consumers should buy our product, but they have many other options. Some of those options are getting a lot of attention lately, and they don’t stack up to milk in terms of nutrition, nor are they a locally grown and sourced product like milk. June Dairy Month is a time to reflect on the hard work you do to care for your cows, and we at the United Dairy Industry of Michigan (UDIM) do that each day. We teach school children about the benefits milk provides their growing bodies; connect with athletes about the important nutrients milk provides before and after workouts and games; talk with influencers who make the decisions about what is served in school meals; and share dairy research with health professionals to share with their patients.
While we’re connecting with consumers across the state, you and your families can connect with those in your community and thank them for purchasing milk, butter, sour cream and ice cream. By thanking consumers for enjoying the products we produce, we make a personal connection and put a face on our industry. How can you participate?
• On World Milk Day, June 1, take a photo of your farm team “Raising a Glass” of milk and post online with a note about why you love milk; be sure to include #milkmeansmore in the post. • When you see someone in your community drinking milk at a local restaurant or buying ice cream, butter or cheese at the store, give them a postcard, and encourage them to sign up for special prizes. • Use your personal or farm social media accounts to say “Thank you” to consumers, and encourage them to buy one more dairy product during their next visit to the store. (Not sure what to say online? Just share posts from the Milk Means More social channels). • Watch for a mailing from UDIM with information about the “Thank You” campaign. You’ll receive more information about the campaign and postcards you can give to consumers who purchase dairy products.
During June Dairy Month we will continue having those conversations on your behalf and will:
• Share dairy family stories, recipes and health information on social media • Connect with families at Maranda Park Parties throughout the Grand Rapids area • Raise a glass of milk on World Milk Day on June 1 • Sponsor West Michigan Whitecaps and Kalamazoo Growlers games and share dairy messages • Sponsor soccer games and highlight dairy farm families • Show two newly created chocolate milk commercials highlighting chocolate milk and dairy in movie theaters across the state • Host the Milk Mustache trailer, in conjunction with CBS radio, at various consumer events in the southeastern part of the state
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MESSENGER | MAY 2017
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S, T H E A R T O O DS . S AND F M Y R A IR F A UR GD F R O M O R P U R C H AS IN FO
Standing Resolutions Approved at MMPA State Annual Delegate Meeting on March 23, 2017
S-1. FARMER COOPERATIVES
S-6. IMAGE ENHANCEMENT
S-12. INDUSTRY RELATIONS
We believe that the concept of farmer cooperatives and family farms, upon which this nation relies for providing high-quality agricultural products at reasonable prices, is of immeasurable value. We urge the administration to be guided by that fact as it formulates and carries out policies and programs pertaining to farming.
We direct the MMPA board of directors to work with leaders of other farm groups to enhance the image that farmers and agriculture project to the general public.
With the declining number of producers in the agricultural community, it behooves all producers to stand together when confronting agricultural issues. We are encouraged by recent movement to work toward common goals and encourage further cooperation and unity in dealing with future beef and dairy legislation.
We will continue to strongly resist efforts in private or government sectors to weaken or destroy farmer cooperatives. We are determined that present tax regulations, which result in a single taxing of farmer cooperatives’ overages allocated to members, must be maintained.
S-2. DAIRY PRODUCT IDENTITY We pledge continued support for the work of the National Milk Producers Federation, United Dairy Industry Association, National Dairy Promotion & Research Board, and other responsible groups that defend and promote the integrity of “Real” dairy products.
S-3. AGRICULTURAL PUBLIC AFFAIRS — DAIRY COMMUNICATORS We commend the corps of the MMPA Dairy Communicators for their efforts to improve the position of dairy farmers. We recognize the growing need for regular communication with legislators, and news media; for local promotion and consumer education activities geared to the milk consuming public. We re-emphasize our continuing belief that all news media must be made aware of, and have access to, up-to-date information regarding our views on a wide range of agriculture-related issues. We encourage the participation of all designated Dairy Communicators and local officers in events that allow communication about dairying and other agricultural issues to the general public.
S-4. ALLIED ORGANIZATIONS We acknowledge the increased importance of marketing services and programs of such dairy farmer cooperatives as MMPA in our complex marketplace. We, therefore, pledge continued support to the activities of the following organizations, allies working to extend the effectiveness of MMPA members and all other dairy farmers: National Milk Producers Federation in representing dairy farmers and their cooperatives in Washington, D.C.; National Council of Farmer Cooperatives in conveying the farmer cooperative story to elected officials and federal agencies.
S-5. MMPA LEADERSHIP POTENTIAL We recognize the importance of programs that help ensure MMPA’s future strength and effectiveness, and we continue our endorsement of programs that identify and build future leadership for this cooperative. We urge young cooperators to attend association meetings, share ideas and concerns, discuss solutions to common problems, and become involved in activities which lead to development of abilities needed to provide sound, foresighted operation of agricultural cooperatives.
S-7. QUALITY PREMIUM PROGRAM We commend the MMPA board of directors and management for their continuing vigil over the quality of milk produced on our farms. We commend them for developing and implementing the Quality Premium Program, which provides to MMPA members financial incentive to produce superior quality milk. We direct the MMPA board and management to monitor the progress of this important program and to make adjustments, as needed, to ensure its effective continuation.
S-8. MICHIGAN DAIRY MARKET PROGRAM We continue our solid endorsement of the Michigan Dairy Market Program, which funds dairy product promotion and market-building activities of the United Dairy Industry of Michigan (UDIM) and United Dairy Industry Association (UDIA) at a rate of $.10/cwt. through dairy farmer investment.
S-9. EXPANDING MARKETING OPPORTUNITIES We direct MMPA management to continue to aggressively seek new customers for milk-derived products made at the MMPA manufacturing plants. We support MMPA’s expansion of its marketing activities into that segment of the food industry, in addition to the broad range of traditional products. We endorse continuation of that practice, as a way to capitalize upon milk marketing opportunities that enable MMPA to market its members’ milk to their best advantage.
S-10. INVOLVEMENT: THE COMMUNITY OF AGRICULTURE We urge each MMPA member to seek and/or accept the responsibility for involvement in local government. We urge each member to enter into this continuing vigil in the spirit of responsible citizens as his or her livelihood and way of living depends on it.
S-13. MICHIGAN AGRICULTURE COMMISSION We recognize the value of the Michigan Department of Agriculture and Rural Development having its operating policy determined by the Michigan Agriculture Commission. We urge the Governor to ensure that animal agriculture interests are adequately represented and to seek input from the agriculture industry when opportunities arise to fill vacancies on the Michigan Agriculture Commission. Recognizing that the dairy industry represents 25 percent of Michigan’s agricultural income, and is a major user of Michigan Department of Agriculture and Rural Development services, we encourage the appointment of an individual directly involved in the dairy industry. Further, we strongly urge that steps be taken to allow the Commission to approve the rules and regulations promulgated by the Michigan Department of Agriculture and Rural Development (MDARD).
S-14. NATURAL RESOURCES COMMISSION We encourage the Governor to maintain a person with an agricultural background on the Natural Resources Commission.
S-15. SPONSORING OF EVENTS Many times MMPA is asked to sponsor many events such as dinners, special events, etc. We support such sponsorship, however, when MMPA sponsors these events, one stipulation must be made to the group that wants our sponsorship. The group that wants our sponsorship must agree to serve “Real” dairy products at the event.
S-16. RESIDUE PREVENTION QUALITY ASSURANCE/ HAACP PROGRAMS
We suggest strongly that the areas to be closely monitored — with an eye to potential impact on the agriculture community — include issues related to: livestock management, environmental integrity, equitable taxation, planning commission and zoning ordinance board.
Recognizing the importance of producing a safe, residue-free product, we encourage participation in the Milk and Dairy Beef Quality Assurance Program or a similar HAACP-based program by every MMPA member. These programs enable producers to carefully evaluate their production and management practices to enhance production of residue-free milk and meat.
S-11. MICHIGAN BEEF INDUSTRY COMMISSION
S-17. PUBLIC NUTRITION PROGRAMS
We support the Michigan Beef Industry Commission and the National Beef Check-off Program of which over 40 percent of the Michigan funds come from dairy beef and veal in Michigan. Therefore, we support the Michigan Beef Industry Commission in directing dairy farmers’ check-off dollars to promote beef through its consumer education, industry information, and a more aggressive beef promotion program.
We recognize the importance of public nutrition programs that help maintain the nation’s health and provide stable markets for agricultural commodities. We urge Congress to take the necessary steps to maintain child feeding, school breakfast and lunch programs, and other public nutrition programs that include REAL dairy products. We further urge Congress to ensure these programs are adequately funded, regulated, and administered. In addition, we urge the U.S. Department of Agriculture to ensure that adequate funds are made available to states for distribution of dairy products to needy families. MAY 2017 | MESSENGER
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S-18. GREEEN
S-24. MICHIGAN DAIRY EXPO
S-29. STRAY VOLTAGE
We support the partnership efforts of Michigan State University, the Michigan Agricultural Experiment Station, Michigan State University Extension, state government, the state’s commodity groups and food processors and consumers in structuring the GREEEN program (Generating Research and Extension to meet Economic and Environmental Needs). The GREEEN proposal seeks to boost the state’s economy by expanding Michigan’s plantbased agriculture and processing systems through research and educational programs while protecting and preserving the quality of the environment and the safety of our food supply.
We applaud the efforts of the Michigan State University 4-H program at the Michigan Dairy Expo. The development of this event has revitalized the Dairy 4-H program in Michigan. We support the educational and promotional activities associated with the Michigan Dairy Expo and encourage participation in this event.
Stray voltage, sometimes known as neutral to earth voltage, is an electrical problem that can affect livestock operations. Stray voltage can be attributed to a number of potential sources. We applaud the Michigan Public Service Commission (MPSC) for the adoption of stray voltage rules formally known as “Rules and Regulations Governing Animal Contact Current Mitigation.” The rules outline realistic stray voltage standards and the process for investigations when necessary by neutral third parties to resolve disputes between utilities and producers. By following the steps outlined in the rules, producers have the opportunity to address stray voltage concerns in a consistent, fair and systematic manner.
S-19. PRIVATE PROPERTY RIGHTS We believe that property owners have the constitutional right to be duly compensated for any use by the government that in any way diminishes the property owners use of the property. Any action taken by the government that lessens an owner's right to use his property constitutes a taking of that owner's property and should be appropriately compensated to the owner. Compensation should be paid from the budget of the agency responsible for the action and must be of fair market value.
S-25. 4-H, FFA AND AGRISCIENCE EDUCATION
S-20. FOOD SAFETY
We support the establishment of standards for ethical behavior in exhibiting livestock at fairs and expositions. Furthermore, we support youth livestock ethics education and awareness.
We acknowledge that the public perception of food safety may have adverse public policy and market-related impacts upon dairy farmers. MMPA and NMPF have taken and will continue to take proactive positions to protect the nation’s milk and dairy beef supply from violative animal drug residues and other potential contaminates.
S-21. FEDERAL ORDERS We strongly endorse the continuation of the Federal Milk Marketing Order system, established by the Agriculture Marketing Agreement Act of 1937. The Federal Order system has a long history and time-tested record of changing individual order rules and regulations to meet changing market conditions and consumers’ needs. The formal hearing process used to amend Federal Orders has served the industry well. We endorse the use of the recently revised hearing and decision making process.
S-22. NATIONAL DAIRY PROMOTION/MARKETBUILDING PROGRAMS We reaffirm our support for market-building programs financed by producer investment. We endorse funding of these programs which include the National Dairy Board (NDB) and United Dairy Industry Association (UDIA), at levels that ensure continued effectiveness.
S-23. TRUCK WEIGHTS We oppose any efforts by the state legislature to reduce Michigan’s gross vehicle weight limits. Lowering truck weights would result in higher energy, environmental and transportation costs, negatively affecting the income of dairy farmers and ultimately impacting the prices consumers pay for dairy products. Studies have shown that individual axle loads and speed are more important than total gross vehicle weight when determining factors that affect road damage.
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Furthermore, we extend our appreciation to the numerous 4-H volunteers and leaders and MMPA members who had the vision to make the Michigan Dairy Expo a reality. Without their continuing commitment to our youth, the programs and activities at Michigan Dairy Expo would not be possible.
MESSENGER | MAY 2017
We reaffirm our belief in the value of youth-directed programs and activities of the Michigan 4-H Clubs, FFA, and Agriscience Education — all of which are vital to the future of America. We recognize that most MMPA members benefited from taking part in these programs and we recommend that each dairy farm family accept the challenge of personal involvement to help perpetuate these valuable programs and activities.
Further, in view of the vital investment that vocational agriscience programs represent in the future well-being of the state’s economy, we urge that these programs be fully funded, on a continuing basis, at levels to ensure their effectiveness and state accreditation. That is particularly important in small rural school districts located in areas that often must compete for funds with large urban school districts.
S-26. UNITED STATES DAIRY EXPORT COUNCIL We support and encourage further development of the U.S. Dairy Export Council (USDEC) to increase net exports of U.S. dairy products. With the continued productivity of U.S. dairy farms, we will have an even greater reliance on world markets for our products. We therefore need to continue to effectively work to develop international markets through the USDEC.
S-27. LOW VOLTAGE (BROWN OUTS) We urge all electrical utility companies maintain and improve their delivery systems to ensure that the expensive problem of low voltage (brown outs) ceases to exist.
S-28. CLONED ANIMAL PRODUCTS We are reassured that the Food and Drug Administration (FDA) review finds no health or safety issues with food from cloned animals. We endorse the U.S. Department of Agriculture’s request that cloning technology providers, and the owners of existing cloned livestock continue to observe the moratorium on the commercial marketing of cloned animal products. This will allow a further review of the economic and trade issues regarding the new technology. We further oppose labeling which would differentiate between milk and meat from cloned and conventionally bred animals.
We also encourage the MPSC to routinely evaluate the rules and procedures of stray voltage standards and the best management practices that coincide with them. We encourage the commission to also review research conducted on the impact stray voltage has on livestock. We will continue to work with electric suppliers and the Public Service Commission to resolve problems with stray voltage on farms to ensure that problems are resolved in a fair and equitable manner for all involved. We further encourage and support research on the effects of stray voltage on livestock. Furthermore, we encourage the MMPA board of directors and management to monitor individual farm situations to determine if the current standards and regulations are still applicable to on-farm situations. We strongly urge utility companies to fully fund their Agricultural Service Departments so there are enough personnel to routinely visit dairy farms and identify and solve stray voltage problems.
S-30. APPROVED TECHNOLOGY We urge the MMPA board of directors and management to continue monitoring the existing and potential impact of advances in technologies on our farming operations. We are concerned about the growing scrutiny surrounding approved technology and management practices used in production agriculture. We believe it is the responsibility of the entire agriculture community, including government agencies and universities, to protect our industry by informing consumers of the safety and efficacy of modern farming practices in producing an abundant, safe and affordable food for the consumer. Without proper education we will continue to lose our ability to use FDA approved technologies on our farms due to consumers' lack of understanding of our industry.
S-31. DIAGNOSTIC CENTER FOR POPULATION AND ANIMAL HEALTH The Diagnostic Center for Population and Animal Health in East Lansing, Mich. plays a critical role in protecting the health and safety of humans and animals throughout our state and nation. With new and improved technology and increased bio-security including threats of bio-terrorism, we support full funding for the effective operation of the lab.
S-32. LIVESTOCK SEIZURE
S-36. MICHIGAN AG COUNCIL
S-42. JOHNE’S DISEASE
We understand that in any group of livestock, condition may exist where some animals will appear to be in better health and body condition than others due to weather and other external factors. We believe that people not familiar with standard livestock animal care do not have the right—because they think the animal is being abused—to confiscate or have confiscated another person’s livestock from the owner’s property without a judicial review and determination, including notification of the owner, prior to the seizure of animals.
We support the collective efforts of the Michigan Ag Council as a way to bring awareness and education to the role of animal agriculture in Michigan. The collaborative efforts of the Ag Council partners serve as an effective tool in bringing unity among agricultural organizations to promote a positive image for the agriculture industry. The Michigan Ag Council takes an assertive, proactive approach in telling the story of modern agriculture practices and advancements.
We are concerned about the significant animal health problems and economic impact on dairy farms from Johne’s disease.
Law enforcement agencies (including animal control authorities) should obtain the opinion of two unbiased local livestock professionals and a large animal veterinarian prior to the seizure of a person’s livestock. The accuser should pay for costs associated with the resulting investigation if no abuse is found.
S-33. ANIMAL DISEASES Animal diseases continue to reduce profitability for dairy producers and may impede exports and international market development. Diseases such as Tuberculosis, Brucellosis, and Johne’s Disease and others can significantly increase costs to dairy producers in terms of decreased milk production, loss of animals, and replacement of animals. In an effort to protect the entire livestock industry in the United States from possible occurrence of animal diseases, we recommend a very aggressive enforcement of regulations to limit all imports of livestock and animal by-products. We encourage the continued and increased financial support of research to determine the causative agent, life cycle and possible control of these diseases. We urge MSU, MDARD and USDA to provide sufficient funding and programs for animal health education, disease monitoring, border inspections and disease eradication that protect the United States livestock industry and ensure continued market access. We further oppose importation of livestock that does not meet import testing requirements as deemed appropriate by the Director of Agriculture and Rural Development, have appropriate quarantine protocols in place, and have an animal I.D. system to track the movement of livestock to prevent the possible spread of disease.
S-34. CHRONIC WASTING DISEASE Chronic Wasting Disease (CWD) is a fatal brain disease that attacks the nervous systems of deer and elk, causing chronic weight loss that eventually leads to death. It is not known to be contagious to humans, livestock or other animals. We encourage Federal and State agencies to study, monitor, control and eventually eradicate CWD from the nation’s deer and elk population.
S-35. RAW MILK CONSUMPTION We know that according to the Food and Drug Administration and the Centers for Disease Control, consumption of raw milk poses a health risk to humans. We therefore support Michigan’s legal requirement that prohibits the sale of unpasteurized (raw) milk to consumers. All milk intended for direct consumption should be pasteurized as a matter of food safety. Since its introduction over a century ago, pasteurization has been recognized around the world as an essential tool for ensuring that milk and dairy products are safe.
S-37. CAPPER-VOLSTEAD PROTECTIONS We strongly support the protections provided by the CapperVolstead Act’s limited antitrust immunity for farmers and their cooperatives. The Capper-Volstead Act gives agricultural producer organizations limited antitrust immunity “in collectively processing, preparing for market, handling and marketing” their products. We urge Congress to support and maintain the protections provided by the Capper-Volstead Act. These protections are as important to farmers and cooperatives today as they were when originally passed in 1922.
S-38. FERAL ANIMALS Many farmers and rural residents are very concerned about the increasing population of feral hogs and other destructive wild animals. We need to have every tool or means available to help control these animals. We strongly support the state order that went into effect on October 8, 2011 that declares wild hogs an invasive and prohibited species. The state order is essential to protect Michigan’s agriculture industry from the destructive animals.
S-39. STARLING CONTROL MEASURES Starling populations continue to pose a threat to livestock health and production in dairy herds. Their droppings in feed and bedding areas have known negative effects on livestock health. Starlings glean the expensive, high protein components of dairy feed, reducing herd protein intake and adversely affect milk production. Since birds can travel easily from farm to farm, there is also the potential for disease transmission. We approve USDA’s program for starling control and urge the continuation and expansion of the program. We encourage producers to participate in the program.
S-40. REAL SEAL We applaud National Milk Producers Federation for taking over the management of the REAL Seal program. The revitalization of the REAL Seal places a renewed emphasis on highlighting the importance and value of American-made dairy foods. The program will help educate new generations of dairy consumers about the significance of the REAL Seal and promote the good taste, nutritional value and wholesomeness associated with dairy foods and dairy food ingredients made from milk produced in the United States.
We encourage the Michigan State University (MSU) Animal Science Department, MSU College of Veterinary Medicine, departments of Large Animal Clinical Sciences and the Animal Health Diagnostic Laboratory, MSU Extension, Michigan Department of Agriculture and Rural Development and the U.S. Department of Agriculture to work cooperatively to develop control and prevention guidelines to assist producers in managing Johne’s disease. We oppose the classification of Johne’s disease as a reportable disease. In addition, we urge that all imported cattle be tested negative for Johne’s.
S-43. LAND USE POLICIES We support positive land use policies, including urban redevelopment and higher density suburban growth.
S-44. GREENHOUSE GAS EMISSIONS CONCERNS We understand there are conflicting arguments within the scientific and political community surrounding the existence and causation of global warming and climate change. There is some belief that greenhouse gas (GHG) emissions from human activities are contributing to an increase in average global temperatures and adverse changes in the world’s climate and weather. GHG emissions include carbon dioxide, nitrous oxide and methane. While we do not accept the responsibility for the increase in GHG emissions, the dairy industry is poised to play a unique role in the climate change debate. We urge the MMPA board of directors and management staff to closely monitor any climate change legislation or greenhouse gas reporting that may adversely impact the dairy industry’s ability to provide a safe and abundant milk supply. Furthermore, we oppose any efforts to regulate livestock operations’ GHG emissions through the Clean Air Act. It is important to recognize the great strides that have been made in lowering the carbon footprint and greenhouse gases (GHG) of the U.S. dairy industry. Today’s U.S. dairy industry is supplying consumers’ needs for dairy products with about one-third of the GHG emissions generated by the system in 1944 per pound of milk produced. The imposition of GHG standards could stifle the further success and ongoing innovations in the dairy and agriculture industry.
S-41. NEW INTERNATIONAL TRADE CROSSING We support the New International Trade Crossing (NITC) project that will construct a second bridge crossing between Detroit, Michigan and Windsor, Ontario. Being able to connect more efficiently to the East Coast through the NITC will help increase the market options available to Michigan’s dairy and agriculture industry.
MAY 2017 | MESSENGER
27
Current Resolutions Approved at MMPA State Annual Delegate Meeting on March 23, 2017
We urge the MSU Administration and Board of Trustees to continue the focus on improving agricultural education, research and extension programs. We support the continuation and strengthening of the Agricultural Technology program at MSU. We acknowledge the importance of a working partnership between
Milk Pricing and Market Regulation
Advertising, Research, Education & Public Relations
the dairy industry and the university. We expect to achieve cooperative efforts from the college faculty, providing partnership and collaboration between the university and the agriculture
C-1. U.S. DAIRY POLICY
C-4. DAIRY PRODUCT PROMOTION PROGRAMS
industry. We further encourage the university to conduct research
We support the changes made in the 2014 Farm Bill to replace
We support the continuation of joint programs between Dairy
programs that support the mainstay of the agriculture industry.
outdated dairy policy. We applaud National Milk Producers
Management Incorporated (DMI) and the National Fluid Milk
We applaud the establishment of the Agriculture Stakeholder
Federation’s appointment of an Economic Policy Committee to
Processor Promotion Board designed to promote the consumption
Advisory Committee to provide input and future direction to
fully review and analyze the Dairy Margin Protection Program
of fluid milk. We urge further collaboration to identify and break
academic and research programs affecting the agriculture industry.
incorporated into the 2014 Farm Bill. The committee will make
through barriers to fluid milk marketing. We further urge DMI to
recommendations on improvements that can be made to the
focus on its primary mission: to increase sales and demand for dairy
Margin Protection Program to ensure it provides meaningful risk
products and maximize value returned to dairy farmers.
management assistance to dairy producers of all sizes. Given the
We are pleased with the recent increased consumer demand for
current economic situation in the dairy industry, we strongly urge
milkfat. With medical journals touting the health benefits of milkfat,
the United States Department of Agriculture to consider all options
sales of whole milk have grown on a year over year basis in 2015 and
possible to provide additional risk management tools prior to the
demand for butter has been steadily increasing. We urge continued
passage of the 2018 Farm Bill.
focus and outreach in this area.
C-2. OVER-ORDER PRICING
We further support the promotional and nutrition education efforts
We continue our firm commitment to maximizing returns to dairy
of United Dairy Industry of Michigan and its work within the state to
farmers and ensuring stability of the milk market. We believe
promote the consumption of dairy products.
in the pooling concept of over-order pricing and acknowledge its effectiveness when accompanied with equitable sharing of proceeds among all dairy farmers. We urge MMPA to promote the concept of over-order pricing and equitable sharing of over-order proceeds among all dairy farmers in the region. We urge cooperatives and all others involved in the dairy industry across the country to work together in a manner that promotes market stability. We encourage our leaders, when possible, to work with dairy organizations to solve problems to the benefit of all dairy farmers.
C-5. CUSTOMER SUPPORTED DAIRY PROMOTIONS We applaud the efforts of MMPA fluid milk and dairy ingredient customers promoting dairy products and our family farms in their
We urge the CANR and University leadership to maintain the agricultural focus that has been so vital to the university, the State of Michigan and its citizens. We urge continued emphasis on the Land Grant mission of the University. We strongly support having the Directors of Ag BioResearch and MSU Extension be under the direction of the Dean of the CANR. Furthermore, we urge the college to engage in the dialogue surrounding the use of safe, approved and scientifically-sound technology used in production of food. We rely on the university to make their research findings available to not only those involved in agriculture, but to the general public when modern farming practices are challenged.
advertising and marketing efforts. It is beneficial to the industry
We further support reviving the ability for students to earn a
as a whole when more companies promote the consumption of
degree in Agricultural and Natural Resources Communications
dairy products.
and Agriculture Education. With the increasing need to enhance the public understanding of the agriculture industry and to
C-6. MSU EXTENSION We urge MSU Extension to be mindful of the important role production agriculture plays in our state’s economy when making
communicate to a variety of audiences, having students properly educated in this area is a key component to the continued growth of the agriculture industry
any changes to the structure and focus of MSU Extension. We urge
C-9. FOOD ANIMAL PRODUCTION MEDICINE
the leadership within MSU Extension to carefully examine ways to
We are concerned about the shortage of veterinarians in the area
best meet the needs of the agriculture community and to bolster
of food animal production medicine. It is important for the animal
the industry’s growth as a vital contributor to our state’s economy.
agriculture industry to have qualified and experienced animal
program demonstrates the ability of farmers to work together
We urge state lawmakers to provide adequate funding to keep MSU
health professionals to protect the state’s livestock industry.
to enhance their industry. We commend the program’s success
Extension effective and viable. We further urge county governments
We support the Production Animal Scholars Program developed
and we support CWT’s current efforts to focus exclusively on an
to continue their support for MSU Extension.
jointly by the Department of Animal Science and the College of
C-3. COOPERATIVES WORKING TOGETHER We support the industry-led Cooperatives Working Together (CWT) program developed to help strengthen farm milk prices. The CWT
Veterinary Medicine at Michigan State University. The program
Export Assistance Program. CWT’s Export Assistance Program has
encourages interested students to pursue food-animal medicine
demonstrated its effectiveness in enhancing dairy farmer revenue
C-7. MICHIGAN STATE UNIVERSITY
by expanding the demand for U.S. dairy products. We urge all dairy
We continue our support for Michigan State University’s College
farmers across the U.S. to participate in the CWT program.
of Agriculture and Natural Resources, the College of Veterinary
Furthermore, we urge NMPF to renew and utilize the program to
Medicine and programs of Extension and Research. We support
We encourage the MMPA Board of Directors, management and
its fullest potential to help provide long-term stability for the dairy
continued legislative funding for these two colleges and their
members to work with the MSU College of Veterinary Medicine to
industry. We are in favor of the possibility of increasing our financial
facilities at appropriate levels.
assist in efforts to increase the number and level of experience of
support to the CWT program. 28
C-8. MSU COLLEGE OF AGRICULTURE AND NATURAL RESOURCES
MESSENGER | MAY 2017
careers and provides them with a broader understanding of the entire food production system.
food animal practitioners.
C-10. SUSTAINABILITY ON DAIRY FARMS
We urge the careful review and assessment of the dairy provisions
awareness among the Michigan Commission of Agriculture and
We recognize the tremendous efforts dairy farmers have made over
contained in the recently We are disappointed that the United
Rural Development, Michigan State University and others involved
the years to protect and preserve our environment. We also know
States was formally withdrawn from the Trans-Pacific Partnership
in developing the guidelines that there is an opportunity to preserve
that our members work diligently to provide the best possible care
(TPP) Agreement. The negotiated TPP made significant progress
the quality of our environment while maintaining an efficient
for their animals. These factors illustrate the sustainable practices
in breaking down barriers and provided new market access for
agriculture community.
that take place on today’s dairy farms.
the dairy industry. We are concerned about the competitive
We are opposed to any efforts to define the production of wind
disadvantage the TPP withdrawal puts the U.S. dairy industry in with
energy as a farming practice under Michigan’s Right-to-Farm Act.
We also recognize the growing consumer quest for information concerning food production in our country. We understand
other countries who have been negotiating trade agreements over the last several years. We urge the current Administration to ensure
C-15. NUTRIENT MANAGEMENT
future trade agreements provide reasonable and balanced market
We acknowledge that it is the responsibility of all livestock producers
access for U.S. dairy producers.
to follow proper nutrient management guidelines to prevent any
neighbors know of the sustainability efforts taking place on their
The North American Free Trade Agreement (NAFTA) has played a
contamination of our environment. We strongly encourage producers
farms every day.
tremendous role in expanding dairy trade to Mexico. Mexico is the
to follow the Michigan Right to Farm Generally Accepted Agricultural
largest export market for U.S. dairy products, and accounts for over 3
and Management Practices (GAAMPs) for Manure Management and
percent of U.S. milk production. We urge any negotiations involving
Utilization and Site Selection.
NAFTA must preserve what is working well such as U.S.- Mexico
We endorse the efforts of the Michigan Agriculture Environmental
dairy trade and focus on areas that need improvement such as U.S.-
Assurance Program (MAEAP) to help producers assess and reduce
Canada dairy trade.
environmental risks on farms. We encourage all producers,
C-11. K-12 AGRICULTURE EDUCATION
We endorse the dairy industry’s challenges to countries we
regardless of farm size, to seek environmental assurance through
Knowledge is the key to understanding and the vast majority of our
believe to be in violation of WTO policies and urge continual
MAEAP verification in Michigan or similar programs in other states.
formative knowledge comes through the educational process at a
monitoring of those areas. We support the Consortium
We encourage all producers to develop a comprehensive nutrient
school. Today, the majority of consumers are more than a generation
for Common Food Names in their efforts associated with
management plan (CNMP) as outlined under the MAEAP for their
removed from the farming sector of society. Be it resolved that
specialized foods from regions throughout the world.
farming operation. A CNMP addresses manure handling and storage,
through working with local community schools that an agricultural
In addition, because various countries within the WTO are working
land application of manure, farm specific conservation practices,
component be recommended as part of the K-12 curriculum. This
to increase access to world markets, we ask the FDA and USDA to
feed management, record keeping and other aspects of waste and
includes teaching about agriculture, both plant and animal, from
inspect all dairy imports to ensure they meet U.S. health and
nutrient management.
farm to plate with as much as possible taught in a hands-on method.
quality standards. We further support enforcement action which
We further urge all MMPA members to support and become involved
ensures that imported dairy foods meet the same compositional
with current agriculture education initiatives.
requirements as domestically-produced standardized dairy foods.
the need to fill the information gap with correct information concerning the sustainability efforts on today’s dairy farms. Therefore, we encourage our members to share their stories and let
We also encourage the MMPA board of directors and management to monitor the sustainability studies underway through the Innovation Center for U.S. Dairy to ensure reliable sustainability indicators for the areas of energy, environment and animal care are developed.
C-16. MICHIGAN AGRICULTURE ENVIRONMENTAL ASSURANCE PROGRAM The Michigan Agriculture Environmental Assurance Program (MAEAP)
Legislative and Regulatory Issues C-12. INTERNATIONAL TRADE We direct the MMPA board of directors to closely monitor international trade discussions to ensure the interests of U.S. dairy farmers are preserved and advanced. MMPA encourages the pursuit of carefully-negotiated trade agreements offering the prospect of net benefits to U.S. dairy producers.
C-13. FARMLAND & OPEN SPACE PRESERVATION ACT
was developed several years ago as a way for producers to exhibit
We reaffirm our support of the Farmland and Open Space
sound environmental practices on their farms. We encourage
Preservation Act, 1974 PA 116, (now Part 361 of the Michigan Natural
the Michigan Department of Agriculture and Rural Development
Resources and Environmental Protection Act) as an effective,
(MDARD) to keep the integrity of the MAEAP program as an
voluntary method to preserve essential farmland and open space
environmental assurance program and to carefully monitor and
while providing farmers needed tax relief. We further urge the
divert any efforts to evolve the program into one of market access.
Treasury Department to process PA 116 refunds in a timely manner.
As one of the founding partners of the MAEAP program we urge the board of directors and management staff to work to ensure the
C-14. RIGHT TO FARM
focus of the program remains on environmental assurance and not
Knowing the importance of protecting our environmental resources,
a marketing tool.
We applaud Congress for reauthorizing the Trade Promotion Authority
we strongly encourage dairy farmers to maintain high standards of
We applaud efforts in 2015 to pass legislation that extended the
(TPA) which helps facilitate the negotiation and implementation of
environmental practices. We acknowledge and support the Michigan
MAEAP program through 2021, expanded its funding base and
U.S. trade agreements. We encourage the administration to maintain
Commission of Agriculture’s role in developing and reviewing
broadened the certifications for MAEAP from three years to five
fair trade policies when negotiating with any country to ensure the
Generally Accepted Agricultural and Management Practices
years. We strongly support a key component of the legislation
preservation of the U.S. dairy industry.
(GAAMPs). Practices dealing with livestock manure management
that created a tiered recognition program to highlight a farmer’s
We urge the MMPA board of directors and management to closely
and utilization, nutrient utilization, pesticide utilization and pest
efforts as they implement environmental practices, but have not
monitor significant multilateral and bilateral trade negotiations and
control, care of farm animals, irrigation water use and site selection
yet achieved MAEAP verification. We further support efforts to
the effect the negotiations have on U.S. dairy policy. It is important
and odor control for new and expanding animal livestock facilities
develop a process that provides regular updates to producers on
that international trade agreements do not hinder the ability to
are reviewed and approved by the commission on an annual basis.
their environmental risk mitigation practices. This information will
provide an effective safety net for the U.S. dairy industry.
We encourage the continued development of other GAAMPs that
be helpful in highlighting the steps producers are taking to protect
will provide protection for other segments of agriculture. We urge
the environment. MAY 2017 | MESSENGER
29
C-17. METHANE DIGESTERS ON DAIRY FARMS
C-20. AIR QUALITY
C-23. APPLIED RESEARCH FUNDING
The growing interest for renewable energy in this country has
We understand that data from the National Air Emissions Study has
In 2007, MMPA delegates initiated an applied research fund in an
created an increased emphasis on the use of methane digesters on
been released and will be utilized by the Environmental Protection
amount equal to $.01/cwt. on MMPA members’ September milk
dairy farms. While we acknowledge the role digesters can play on
Agency to develop emission standards for different types and sizes
production. In 2011, delegates approved increasing the amount to
some farms, we are concerned that Dairy Management Incorporated
of feeding operations. Lawsuits driven by environmental groups
$.02/cwt. We fully understand that applied research is important
(DMI) and outside interests such as power companies and
continue to force the development of regulation and law in the
to the advancement of the dairy industry, and traditional research
equipment dealers may present unrealistic expectations of the role
absence of sound science. We strongly urge that any government
funding sources have become limited. We therefore support the
digesters can have on dairy farms. These unrealistic expectations are
air quality standards be based on sound science and take into
continuation of funding for the applied research fund in the amount
embraced by our customers, which in turn, leads them to expect
consideration the economic impact in our agricultural industry.
equal to $.02/cwt. produced by MMPA members for the month
our farms to use digesters to meet sustainability indicators. We encourage the Innovation Center for U.S. Dairy to carefully monitor
C-21. TAX RELIEF MEASURES
these expectations and more accurately gauge the role digesters
We applaud Congress for permanently extending the Section 179 tax
can play on dairy farms.
credit which allows farms and other small businesses to write off capital purchases immediately, instead of over time.
C-18. CAFO REGULATIONS We urge the Michigan Department of Environmental Quality (MDEQ) to not adopt any rules or regulations that exceed those established by the EPA. Furthermore, we urge the MMPA Board of Directors and management to closely monitor actions of the EPA, MDEQ and all other agencies in an effort to protect the interests of livestock producers.
of September. This fund is to be managed by the MMPA board of directors or delegated committee. We also encourage MMPA to work with other cooperatives and dairy industry groups to get all milk in the state participating in a similar manner.
We further support: • the reduction of the capital gains tax and urge the U.S. Congress to include this provision in future legislation. • keeping the stepped up tax basis now in effect on the assets heirs receive from estates. • the elimination of the Alternative Minimum Tax.
C-24. MICHIGAN ALLIANCE FOR ANIMAL AGRICULTURE We support the Michigan Alliance for Animal Agriculture (M-AAA) and their efforts developing a proposal to establish a state-funded animal ag research program modeled after the successful Project GREEEN that addresses plant-based research programs. The
• that any Michigan tax change be broad based and that business
M-AAA consists of representatives from various animal agriculture
to business transactions be exempt from tax, including sales tax.
stakeholder organizations, Michigan Department of Agriculture
We understand that water used in agricultural production is in the
• eliminating the estate tax or maintaining the permanent
and Rural Development, MSU Extension, MSU College of Veterinary
public interest and represents an essential and necessary use of
extension of the estate tax exemption for the first $5 million of
Medicine, MSU Department of Animal Science, MSU AgBio Research
water for the production of food and fiber.
a person’s estate indexed for inflation. The estate tax exemption
and MSU College of Agriculture and Natural Resources.
We urge the MMPA Board of Directors and management to closely
assists farm families in passing the farm from one generation to
The group has developed the Michigan Animal Agriculture
monitor the implementation of any water use legislation or
the next.
Innovation and Workforce Development Initiative, which focuses on
regulation that would create additional water quantity related fees
We oppose:
ensuring the sustainability of the state’s animal agriculture sector
or rules.
• any effort to increase the state estate tax.
through a targeted annual investment in research, extension and
Furthermore, we are aware that since 1972, the Clean Water Act
• any new or increased permits or fees imposed by the state,
workforce development. We applaud state legislators for including
has regulated “navigable waters” to improve the quality of the
which result in an inequitable burden on the agricultural
$899,000 in the Michigan Department of Agriculture and Rural
nation’s waters. We oppose any legislative or regulatory efforts to
community.
Development 2016-17 fiscal year budget in support of the M-AAA
C-19. WATER USE
expand the authority of the Clean Water Act (CWA) by granting the U.S. Environmental Protection Agency (EPA) unlimited regulatory authority over all “intrastate waters,” rather than specifically “navigable” waters. We are deeply concerned that expanding the CWA beyond protecting wetlands and waterways would transform it into a vehicle for regulating virtually every wet area in the nation, including ditches, gutters and possibly even groundwater. Expanded federal jurisdiction would preempt traditional state and local government authority over land and water use decisions and alter the balance of federal and state authority. Dairy farmers are committed to conserving and restoring the nation’s water resources and believe this can be achieved without a dramatic expansion of the CWA.
• any increase in the state income tax rate and any changes to the current property tax system that would adversely affect farmers without a vote of the affected property owners. • a tax or fee that negatively affects agriculture such as a tax on gross receipts, personal property or assets.
C-22. MICHIGAN DAIRY INDUSTRY RESEARCH FUND We support efforts to explore the development of a Michigan dairy industry checkoff program to address environmental, animal research and animal welfare issues and help fund other applied dairy research programs.
efforts. We encourage continued funding support of the proposed program.
C-25. IMMIGRATION REFORM We urge Congress to carefully consider immigration reform proposals and the impact they may have on the agriculture and dairy industry. Due to the importance of immigrant labor to the dairy industry, we believe that any final piece of legislation concerning immigration reform must contain the following components: An affordable and efficient guest worker program that ensures continued availability of immigrant labor for all of agriculture, understanding that dairy farming requires year-round skilled workers. A provision that allows those currently employed, or with recent history in the U.S., to earn the right to work here legally. A provision that specifies that responsibility for ultimate verification of the legal status of a worker lies with the government, not with the employer.
30
MESSENGER | MAY 2017
C-26. MILK LABELING REQUIREMENTS
We therefore urge all companies and government agencies recognize
C-32. REGULATORY FEES
We urge the Michigan Department of Agriculture and Rural
the numerous studies, including those by the National Academies of
Because the function of state regulatory agencies benefits all
Development, Indiana Board of Animal Health, Ohio Department
Science, Engineering and Medicine, the World Health Organization,
citizens, we believe that any costs imposed on dairy farmers by
of Agriculture, Wisconsin Department of Agriculture Trade and
the International Council of Science Union, the AMA, the FDA, and the
state regulatory agencies should come from a state’s General
Consumer Protection, and the Food and Drug Administration to
USDA, which show unequivocally that GMO crops and the products
Fund, understanding that significant funding currently is
continue to strictly enforce label claims on packages of all milk
taken from animals fed GMO crops are as safe and healthy as those
provided by the industry.
and dairy products. We further urge these agencies to take
from non-GMO crops.
action to prevent misleading and false in-store promotions of
We support active involvement by the United States in the
C-33. STATE FUNDING FOR AGRICULTURE
milk and dairy products.
development of a uniform scientifically-based international approval
We support efforts to discuss state funding opportunities that will
process for biotechnology.
help continue to grow Michigan’s agriculture and dairy industry.
C-27. INTEGRITY OF MILK LABELING
We oppose all attempts to limit the production or use of
C-34. LOCAL ROAD FUNDING AND MAINTENANCE
We strongly oppose the use of the label “milk” on products
genetically modified crops based upon unproven statements
made from plants or juice. The use of “milk” on these types of
and unsubstantiated fears. With the potential advancements in
We support Public Act 51’s distribution formula for allocating state
products confuses the consumer. We urge National Milk Producers
bioengineered crops, any limitations on some or all farmers will only
restricted transportation revenue between MDOT and local road
Federation, United Dairy Industry Association, and the National
serve to place them at a competitive disadvantage.
agencies. We further support routing additional revenue designated
Dairy Promotion and Research Board to defend and promote the
for roads and bridges through the PA 51 formula to ensure proper
integrity of the milk label and limit its use as defined in the Federal
C-30. TERM LIMITS FOR STATE LEGISLATORS
Standards of Identity.
In 1992 Michigan voters approved term limits for members of the
funding of local road agencies to assist in the necessary maintenance
Michigan House of Representatives, and Michigan Senate. We
and construction of rural infrastructure.
C-28. DAIRY PRIDE ACT
recommend that the term limits be changed to six, two-year terms
distribution and prioritization of fund usage. We support adequate
Dairy farmers produce a nutritionally consistent, safe and high-
for the Michigan House of Representatives and three, four-year terms
C-35. BEEF PRODUCTION RESEARCH
quality product long recognized for its important contributions to
for the Michigan Senate.
We support efforts to initiate funding for beef production research
human health; and this product – milk – is clearly defined as a
through the reinstatement of the Michigan Beef Industry Commission
of identity found in Title 21 of the Code of Federal Regulations,
C-31. MICHIGAN DEPARTMENT OF AGRICULTURE AND RURAL DEVELOPMENT
Section 131.110.
The Michigan Department of Agriculture and Rural Development
(National Beef Checkoff). The MBIC Act 291 allows for the collection of
Therefore, we strongly endorse Congressional passage of the DAIRY
(MDARD) provides beneficial services to all people in the state
funds to support beef production research.
PRIDE Act (S. 130 and H.R. 778), which would protect the integrity of
of Michigan. MDARD plays a key role in ensuring the safety of our
milk and other federally standardized dairy products by requiring
food supply and protects the well-being of the plant and animal
C-36. FEDERAL TRUCK WEIGHT LEGISLATION
plant-based imitation foods that make an inaccurate or misleading
industries to make sure our state is a reputable and reliable supplier
We support federal truck weight legislation that would allow for an
label claim about the attributes of the food and its nomenclature to
of products to food processors and international markets.
increase to 97,000 pounds on interstates, provided that trucks which
be considered “misbranded” and subject to enforcement.
The continued growth of the agriculture industry has a significant
utilize the higher weight limit add an additional sixth axle in order
The DAIRY PRIDE Act would require the FDA to issue guidance for
positive effect on the state’s economy. It is important that the
to maintain the same stopping distance and weight distribution as
nationwide enforcement of mislabeled imitation dairy products
funding for MDARD continue at a level that will protect our state’s
trucks currently operating on interstate highways. The legislation will
within 90 days and require the FDA to report to Congress two years
food supply and protect animal health. Having a properly funded
increase transportation efficiencies by reducing the number of trucks
after enactment to hold the agency accountable for enforcement
Michigan Department of Agriculture and Rural Development will
needed for interstate shipment therefore decreasing fuel costs and
obligations.
enable the agriculture and dairy industry to continue to play a vital
helping to make the U.S. dairy industry more competitive worldwide.
product of animal agriculture under the product’s federal standard
C-29. BIOENGINEERED CROPS
role in our state’s economy and will allow our industry to continue to grow and remain competitive on the national level.
Act 291. The MBIC Act 291 of 1972 was suspended in 1986 due to the passage of the 1985 Cattlemen’s Beef Promotion and Research Act
We applaud Congress for passing bipartisan legislation in 2015 that gives states the option to issue permits allowing milk haulers
Farmers have been using selective breeding to alter crops for taste,
We further support the continued existence of the MDARD as a
yield and disease resistance for hundreds of years. However, since
to increase their truck weights beyond Interstate Highway System
distinct Department within state government. We oppose any
the 1990s bioengineered crops have become more prevalent. These
limits. This will allow milk trucks in some states to carry more product
attempt to dilute the effectiveness of the MDARD by merging it with
crops offer tremendous benefits to society, including the ability to
without being forced to offload portions of it at other state borders,
any other government agency or department.
reducing transportation costs and creating greater efficiencies.
increase production while reducing the need for pesticides and preserving scarce natural resources. Genetically Modified Organisms (GMOs) are now among the most extensively studied scientific subjects in history. The conclusions of these studies are unequivocal: there is no credible evidence that GMOs pose any unique threat to the environment or the public’s health.
MAY 2017 | MESSENGER
31
C-37. ELECTRICITY SUPPLY The modern dairy industry is electricity intensive. Consider: “…electricity itself accounts for 2 to 5% of a dairy farm’s production costs… which is equivalent to 700-900 kWh per cow or 3.5-4.5 kWh per hundredweight (cwt) of milk produced, annually…” -Farm Energy Management Handbook, DATCP Whether on the farm or in our production facilities, the dairy industry is wholly dependent on a reliable source of electricity. Unlike other industries in the state, ours is not concentrated in industrial zones. Our farms are scattered throughout the state, many at the very ends of the electric grid. Dairy farmers’ demand for electricity is relentless and persists throughout the 24-hour day. Like all industry, Michigan dairy farmers need access to low cost electricity that can give local producers a regionally competitive advantage. We therefore urge the MPSC, the state Legislature and the Office of the Governor to promote energy policy that favors the lowest cost sources of dispatchable generation with the highest capacity value.
Animal Health and Milk Quality C-38. ANIMAL IDENTIFICATION SYSTEM We applaud Michigan’s efforts to require mandatory cattle identification. The mandatory requirement is important to help Michigan achieve Bovine Tuberculosis (TB)-free status for all Michigan counties while helping to maintain the TB-Free status for the 79 counties and Upper Peninsula that have been designated as Bovine TB-free. We urge strict enforcement of the mandatory cattle identification requirement and strong penalties for those who violate the requirement. We urge the USDA to implement a mandatory RFID animal identification program. We also urge that the identification database system be maintained under the control of USDA to expedite the traceback of animals. The system should protect farmers’ privacy, while also allowing for immediate access of relevant information by government authorities in the event of an animal disease crisis. We therefore urge that the information in the animal identification database be exempt from the Freedom of Information Act. Furthermore, we urge slaughter houses to utilize electronic ID readers in conjunction with back tags to identify all animals.
C-39. BOVINE TUBERCULOSIS We commend Michigan dairy and livestock producers, the Michigan Department of Agriculture and Rural Development and its partners for their efforts over the years to restore the Bovine Tuberculosis (TB) Free status to seventy-nine Michigan counties. This designation allows for more effective use of limited resources 32
MESSENGER | MAY 2017
to help eradicate Bovine TB from the state completely. We urge that efforts be undertaken to restore Michigan’s TB-Free status and reduce bTB to the point of non-detection in both the wild and domesticated animal populations in northern Michigan. We recognize the stringent management practices many of our members have put in place in order to minimize the transmission of this disease. We believe their efforts, including the adoption of Wildlife Risk Mitigation Plans, helped expedite our TB-Free status in other areas of the state and that Wildlife Risk Mitigation practices should be implemented by all cattle producers in northern Michigan. Furthermore, we encourage farmers in the four county area around DMU-452 to adopt the new Enhanced Wildlife Risk Mitigation Plans to further reduce the chance of disease transference from the wild animal population to the domestic animal population. We also encourage all landowners in northern Michigan be active in the legal control of the deer population. We strongly urge MDARD to only create, implement, or enforce rules or regulations that are required by USDA’s published rules regarding Bovine TB except for electronic identification (EID) for livestock. We commend our MMPA field staff, management and others that have helped educate producers and others about controlling this disease. We urge the MDNR to increase their efforts in managing deer and wildlife, to help further eliminate Bovine TB. We strongly urge USDA to include controlling the deer herd as a component of any future Memorandum of Understanding. We urge the MDNR to make disease control permits available to any livestock producer that shows evidence of deer to cattle or deer to feed interaction and to farmers where TB has been detected in the deer herd in the past. We also believe that the changes necessary to reduce Bovine TB to the point of non-detection in the wild and domestic animal populations must be permanent changes in order to prevent resurgence of the disease. We encourage USDA to seek additional funding so that eradication goals can be achieved. We also support: 1. Payment of fair market value for animals that need to be destroyed. 2. State funding of all required testing. 3. An appeals process as part of the federal indemnity program that includes specifics of what constitutes a valid appeal, defined timeframes for filing and responding to an appeal and opportunity for an onsitr appraisal. 4. A limit on maximum federal indemnity allowable by animal and by herd, but also a provision that allows the state to provide additional payment to reach the full appraised value of an animal without penalty. 5. Increased research toward the control and prevention of Bovine TB. 6. Collaborative efforts between state and federal regulatory agencies, educational institutions and agriculture industry organizations in working toward the eradication of Bovine TB. 7. We support a voluntary herd buyout plan as a tool of achieving Bovine TB-Free status.
C-40. ANTLER POINT RESTRICTIONS We strongly oppose the use of mandatory antler point restrictions (APR) that would only allow you to shoot anterlered deer if it has the minimum number of points on one side. We are very concerned with the adverse effects of an APR by allowing deer numbers to increase, which could negatively impact the agriculture industry.
C-41. DOE PERMITS In an effort to control the deer population it is imperative to allow a larger number of doe permits to be issued at a reduced rate, especially in higher population areas of the state. We encourage the DNR to reduce the costs of deer licenses by half of current levels.
C-42. ANIMAL CARE We believe in and support the humane treatment of animals. We recognize the importance of maintaining a sound animal care program on our farms. We support the National Dairy FARM Program: Farmers Assuring Responsible Management developed to bolster consumer trust and confidence in the U.S. dairy industry and demonstrate the industry’s commitment to the highest levels of animal care and quality assurance. The National Dairy FARM program demonstrates the dairy industry’s awareness of the need to communicate its commitment to animal well-being to customers and consumers.
Association Issues C-43. POLITICAL ACTION We reaffirm our belief in the need to actively support the Michigan Milk Political Action Committee (MMPAC) as a legitimate means for organized involvement in areas of government legislation and regulation that affect dairy farmers and agriculture. To ensure that the dairy industry’s needs are addressed in state and national lawmaking and policy-making circles, we strongly recommend a voluntary milk check deduction by each member at the rate of $1 per cow per year.
C-44. MILK DONATION We applaud MMPA’s involvement in milk donation activities. We recognize milk plays an important role in providing much needed nutrients in our diets and also understand that milk is one of the most requested food bank items. We encourage the MMPA Board of Directors to continue to seek ways to assist local food banks and families in need.
MERCHANDISE
Spring Cleaning Although it seems like winter is hanging on by tooth and nail, spring is surely on its way. Cleaning debits on the inspection sheet can total seven points, with only three points shy of a required re-inspection, care and time should be taken. The MMPA Member Merchandise department offers many tools to aide you in your task. A foaming detergent can make the job easy. We offer several to choose from, Liquid K, LC-30 and Liquid Sepko are all available in 1 gallon containers and Enforce LP is available in a 5 gallon pail. The table below explains the usage and the cost associated. Liquid K
LC-30
Liquid Sepko
Enforce LP
#7012
#5901
#5912
#6048
Usage oz/gallon water
1:6
2:1
.5:1 or .3:2
2-5:1
Cost per container
$25
$20.80
$17.33
$80.06
Cost per ounce
$.20
$.16
$.14
$.13
Chemical, Sanitizer and Teat Dip Contact Information These are service personnel only. Order your Member Merchandise supplies through your hauler.
ECOLAB 24 -Hour Medical Emergency Hotline: 1-800-328-0026 For Service, call the
Brushes can also be helpful when cleaning walls and ceilings. Below is a table of the brushes and handles that we carry. The yellow scrub brush or oval bulk tank brush are quite handy when cleaning because of their stiff bristles and two different bristle angles to help get those hard to reach areas. Any threaded handle can be used with this brush but we do have the 6’ truck brush handle or the 48” oval brush handle that can work. STOCK #
Ecolab Service Message Center 1-800-392-3392 or one of the following service representatives: Ben Johnson
BRUSH
PRICE
1526
20” GONG BRUSH
11.50
4461 Cambridge Dr.
2919
YELLOW SCRUB BRUSH
16.35
Port Huron, MI 48060
5030
BOTTLE BRUSH
13.85
810-824-0636
4622
24” BOTTLE BRUSH
35.44
5034
GONG BRUSH
16.49
5037
VALVE BRUSH
6.75
5058
BULK TANK BRUSH
38.88
7273 N. Rollin Hwy.
5059
PAIL BRUSH
14.38
Addison, MI 49220
5616
6’ TRUCK BRUSH HANDLE
7.29
5621
8” TRUCK BRUSH
21.58
517-403-0928
5623
14” TRUCK BRUSH
22.19
4246
OVAL BRUSH
27.25
Jason Wolfe
4703
48” OVAL BRUSH HANDLE
14.45
1890 Canter Dr.
Pat Mitchell
Riner, VA 24149 — KATIE PIERSON, MERCHANDISE COORDINATOR
540-553-5755
Three Ways to Order your MMPA Merchandise 1. Place order through your milk hauler 2. Call in your order:
Duane Farmer, Supervisor............................................................. 989-317-8370
Toll Free.............................................................................................877-367-6455
Orders (Novi)............................................................ 800-572-5824 then dial 2
3. Fax in your order:
MMPA Merchandise fax...................................................................989-317-8372
MAY 2017 | MESSENGER
33
PREMIUMS MERCHANDISE
MMPA Quality Premium Program
MMPA Member Testing Fees
Somatic Cell Count premiums and deductions (in addition to Federal Order SCC Adjustments computed in the producer pay price) will be paid at the following levels:
Payment for testing will be made through an automatic milk check deduction. All costs are listed per individual sample.
50,000 or below............ +55¢/cwt.
201,000-225,000........... +20¢/cwt.
51,000-75,000................+50¢/cwt.
226,000-250,000............+15¢/cwt.
76,000-100,000.............+45¢/cwt.
251,000-300,000...........+00¢/cwt.
101,000-125,000.............+40¢/cwt.
301,000-400,000..........- 30¢/cwt.
126,000-150,000........... +35¢/cwt.
401,000-500,000........ -$1.00/cwt.
151,000-175,000.............+30¢/cwt.
501,000-600,000.........-$1.50/cwt.
176,000-200,000.......... +25¢/cwt.
601,000 and greater.. -$2.00/cwt.
Cow Tests: $1 Cow samples may be tested for: Culture for Streptococcus agalactiae, Strep non ag, Staphylococcus aureus, coagulase negative staph, gram negative and/or SCC. Additional testing can be coordinated through your MMPA member representative to include:
A payment of 5¢/cwt. will be added for each of the following, if the count is equal to or below: • 10,000 Raw Bacteria Count • 20,000 Pre-Incubated (PI) Count
Raw bacteria count and components.
There will be a deduction of 10¢/cwt. for: • Greater than 100,000 Raw Bacteria Count A high raw count deduction will be waived if the producer has received the quality premium the previous three months for raw bacteria count.
All costs are listed per individual sample.
To qualify for Raw and PI Bacteria Count premiums there must not be any of the following during the month: • Positive drug residue • Abnormal freeze points • High load count shipment or rejected load shipment • #3 or #4 sediment • Raw Bacteria count over 100,000 The count levels for raw and PI will be determined on one test run per month. To qualify for MMPA SCC premiums there must be: • No abnormal freeze points during the month To qualify for MMPA volume premiums there must be: • No abnormal freeze points during the month • An average somatic cell count of 350,000 or less
All herd tests must be scheduled with the laboratory through your MMPA member representative.
Additional Tests Available: • Mycoplasma Cultures...........................................................................$13 • Bacteriology Cultures...........................................................................$15 – Includes identification of bacteria and drug susceptibility.
• Bovine Viral Diarrhea - PCR.........................................................................................................$40 - ELISA........................................................................................................$6 • Johne’s Milk Test - PCR.........................................................................................................$40 - ELISA – cows.........................................................................................$6 - ELISA – tank......................................................................................... $10 • Bovine Leukosis Test - ELISA – cows.........................................................................................$6 - ELISA – tank......................................................................................... $10 • Milk Pregnancy ELISA.................................................................... $4.50 Lab test results by mail: $2/month All tests must be scheduled through your MMPA member representative or the laboratory for proper sample submission protocol.
NORTHSTAR MI LABORATORIES Loc/Hlr/Producer #____________________________________ Sample Date__________________________ Member name_______________________________________________________________________________ Sample ID__________________________________________________________________________________ BLV ELISA__________
Johne’s ELISA_________
Johne’s PCR_________
Pregnancy_________
Refer to above for current pricing. The cost of testing is the responsibility of the producer. This card MUST be filled out completely when sending in samples to be tested by NorthStar Labs to avoid potential service charges.
34
MESSENGER | MAY 2017
POLICIES MERCHANDISE
MMPA Policy on Drug Residue in Milk MILK ON FARM – DRUG RESIDUE SUSPECTED
MILK SHIPPED — POSITIVE DRUGS CONFIRMED
If a member suspects milk in the farm bulk tank contains drug residue:
If a member ships milk from the farm and testing by approved laboratory methods show that the milk contained drug residue, the member will be assessed the penalties imposed by the state regulatory agency and be disqualified for raw and PI bacteria count premiums.
1. Call a MMPA member representative to have the milk in the tank tested. A “hold” must be placed on the tank contents until the test results are known.
OR 2. The member can test the milk on the farm. If dumped, the member must be sure to take the stick reading, record the number of pounds of milk and report the information to their member representative. • If the tank tests negative (no drugs present), the milk may be released and shipped. • If the tank tests positive (drugs present), the member representative will authorize the member to dump the tank of milk. The member will be paid 75% of the value of the tank of milk involved.* • If for any reason MMPA personnel must pick up samples at the farm for testing three or more times within 12 consecutive months, the member involved will be charged $25 per trip.
If a loss is incurred by MMPA due to the disposal and/or non-marketability of a load of milk or milk products containing drug residue, then the member responsible will be provided an invoice for the entire value of the loss plus transportation and disposal costs as required by the Pasteurized Milk Ordinance. This invoice may be submitted to the member’s insurance carrier. MMPA must receive settlement on the invoice within 90 days of issuance. If settlement is not made within 90 days, the full amount of the invoice will be deducted from the next milk check unless other settlement arrangements are made. Milk from that member’s farm tank must be tested and found clear of drugs before the next tank of milk can be picked up. A hauler whose entire load sample shows the presence of drugs will be charged the amount of an average shipment on that load if the individual member samples all show negative.
ALL POSITIVE DRUG RESIDUE SHIPMENTS MUST BE REPORTED TO THE ENFORCEMENT AGENCY.
MMPA Milk Quality Policy QUALITY QUESTIONABLE
REJECTED LOAD SHIPMENT
When a member suspects that the milk in the farm bulk tank is of poor quality they should call a MMPA member representative who will authorize milk in the tank to be dumped. If the member dumps the milk on their own, they must be sure to take the stick reading and record the number of pounds of milk, and report the information to the member representative.
If…
If the milk is dumped, the member will be paid 75% of the value of the tank of milk involved.*
3. testing of the individual member samples on that load identifies the member or members that caused the contamination or rejection of the load, then, the member or members responsible will be charged the full value of the loss to MMPA plus transportation and disposal costs, and be disqualified for raw and PI bacteria count premiums except for loads rejected for temperature.
In order to receive payment for an added water voluntary dump, the member must install a Swingline Safety Switch. The Swingline Safety Switch can be ordered from the Mt. Pleasant warehouse. The MMPA member representative will verify the switch has been installed. Reimbursement for the Swingline Safety Switch and the voluntary dump will then be made to the member. The member assumes all liability for losses incurred as a result of shipping poor quality or contaminated milk.
MILK SHIPPED – HIGH BACTERIA COUNT If… 1. a load of milk is received (unloaded) at a dairy processing plant and, 2. a sample from the load has a bacteria count of 300,000 or more and, 3. testing of the individual member samples on that load identifies the member or members having a bacteria count of 300,000 or more, then the member or members involved will be charged the value of one-half of one day’s production** and will be disqualified for raw and PI bacteria count premiums. * The member will only be paid for two (2) voluntary dumps in a rolling 12 month period. ** For members using more than one bulk tank, the assessment will be based on the value of milk in the tank or tanks in violation of the MMPA quality policy.
1. a load of milk is rejected (not unloaded) at a dairy processing plant and, 2. the milk cannot be sold through normal Grade A channels for reasons of quality which results in the load being sold or disposed of at a loss to MMPA, and,
4. MMPA will provide an invoice to the member for the amount of the loss, to be submitted to the member’s insurance carrier. MMPA must receive settlement on the invoice within 90 days of issuance. If settlement is not made within 90 days, the full amount of the invoice will be deducted from the next milk check unless other settlement arrangements are made. If a member has three or more occurrences within 12 consecutive months, that member must appear before the MMPA board of directors to review steps taken on the farm to correct the quality problem which will enable MMPA to continue to market the milk for this member.
HAULER A hauler whose entire load sample exceeds 300,000 cells per mL bacteria count will be charged the amount of an average shipment on that load if the individual member samples all are less than 100,000. A hauler will be responsible for all costs incurred by MMPA for loads rejected for temperature. Charges and assessments made under this program will be withheld from milk checks of members or haulers involved.
MAY 2017 | MESSENGER
35
FREELINERS
« Freeliners and Classifieds can now be submitted online. » Visit www.mimilk.com/michigan-milk-messenger/advertise/ freeliner-and-classified-ads
Bulls
Cows and Heifers
Registered Holstein Bulls:
Complete herd of 175 cows. 155 milking, 82 pound average on 2x. 30 dry cows and 35 heifers due soon. Willing to sell after they freshen. 517-281-8855.
We now have a nice selection of service age bulls, sired by top AI sires. Green Meadow Farms, Elsie, MI. 989-862-4291 or visit www.greenmeadowfarms.com. Service age Holstein bulls.
Small Registered Herd of Holsteins, not pushed, 60#/day, BAA 110%. 231-245-3603.
Call Steve Alexander, 810-6228548 evenings or 810-404-8548.
Equipment
Registered Holstein breeding
20’ x 70’ Stave Silo with Hansen unloader. 18’ x 60’ stave silo with Hansen unloader. 20’ Jamesway unloader, make offer. 3 polyveyers with motors, $1,500 take all. Henke roller blower, $3,500. International silo blower, $1,500. 3518 Meyer silage wagon, $7,000. Call 989-464-5436 or 989-464-5435.
bulls, all AI sired from top bulls, b&w, red, red carrier and some polled, high production, low SCC herd. Bulls are priced to sell. Ver Hage Holsteins, 269-673-4886 or 269-217-6076, ask for Tim. www.verhageholsteins.com.
9400 John Deere Combine with 6-row head, 15-ft. grain table, 1650 separator hours, 2240 engine hours. 517-445-2662.
Milking Equipment Sunset 300 gal. bulk tank. Stutor built vacuum pump with 10 hp. motor. All equipment to milk in a 5 place flat parlor in great working order. Ed Owens 989-435-4068. Double Six parallel Boumatic Signature Milking System and automatic air pressure milker detachers, plate cooler, 5 hp. vacuum pump, bulk tank and milk cooler is gone. Call 989-551-1549.
Misc. Clean, Bright Wheat Straw. 3x3 large square bales. Loading and delivery available. 810-710-6504. Australian Shepard Puppies. Parent’s good farm and family dogs. Four colors to choose from. Ready April 15. $350 - $550 each. Clare, Mich. 989-386-3679. Haylage and Corn Silage. Trucking available. Call 231-250-8592. Complete Herd Dispersal. 58 Holstein cows. 50+ years A.I. breeding. Freestall trained, 4.1 B.F., 300 P.T., 78 SCC. Frank Bowman, Rockford, Mich. 49341, 616-874-9016 or Joel Bowman 616-890-5260. 13 Calf Tel calf hutches. 517-445-2662
Freeliner Policy The Freeliners column is open to current MMPA members who wish to advertise—at no charge— goods or services relating directly to their dairy farm operations. • An item submitted will be published for no more than two consecutive months (one month, unless otherwise requested). After that, it will be withdrawn. • It will be published again for no more than two consecutive months only if the member resubmits the item by writing or calling the Novi office. • Reference to a name of a firm or other commercial enterprise with which a member is involved will be deleted, with permission of the member. • If the member does not wish such deletion, he/ she may choose to have the item published as a Classified Ad at the regular per-line Classified Ad rate. • Freeliners must be received by the 10th of the month preceding desired month of publication.
36
MESSENGER | MAY 2017
CLASSIFIED ADS
Cost for classifieds is $20 per ad, up to six lines. All ads must be received by the 10th of the month before the month of desired publication. Send check or money order for $20 for up to 6 lines with your order. MMPA neither sponsors nor endorses products or services advertised in the Messenger. You may submit your ads by: MAIL:
Classified Ads | Michigan Milk Messenger P.O. BOX 8002, Novi, MI 48376-8002
EMAIL: Muszynski@mimilk.com FAX: 248-426-3412
OPPERMAN GROOVING: We can fix your scabbled floors. Diamond sawed grooves, no hammering or cracking of concrete. No hoof damage. Call Opperman Grooving Inc., Portland. 517-647-7381. DAVIDSON CEMENT GROOVING, INC: NO water needed. Wider, rougher grooves for better traction. We also offer texturing for your previously grooved floors. Three operators will travel Michigan and other states. No interest payment terms. Est. since 1987. Call 1-800-365-3361. CONCRETE GROOVING BY TRI-STATE SCABBLING, home of the 2” wide groove. Best traction, lowest prices. (800) 554-2288. www.tristatescabbling.com A SURE WAY TO KEEP YOUR COWS UPRIGHT! Concrete grooving/texturing provides high quality traction in new & old concrete, fast service. Call for your below pricing 989-635-1494. BLUE RIBBON HOOF TRIMMING, LLC. FOR SALE: NEW & USED MILK TANKS. We stock all sizes, makes, models. Special prices to co-op members, corporate & private farms. Contact us anytime day or night. Spring special 2000 gal. Muellers for $13,900 & up. 2700 & 4000 gal. Muellers call for quote. 800-558-0112. DRY HAY & STRAW (large & small bales) & BARLEY FOR FEED. 989-7231886 or 989-277-1414.
ALPHALFA HAYLAGE (excellent & fair grades) & CORN SILAGE. 989-723-1886 or 989-277-1414.
JUNE CLOVER SEED. 989-723-1886 or 989-277-1414. NEW KATOLIGHT PTO GENERATOR, 60 KW, keep everyone warm and producing if there is a power outage. Call Brent at 248-770-5122. MICHIGAN CERTIFIED OAT SEED & SPRING BARLEY SEED. 989-723-1886 or 989-277-1414. HOOF TRIMMING - 20 YEARS OF EXPERIENCE. Also doing fly control and cement grooving. Gibson Hoof Care (Tom) 989-239-6843.
FOR SALE: 2012 NH FP230 Chopper with kernel processor, 2 row corn head, 9ft hay head $35,000. Gehl 940 & Gehl 970 16ft Chopper Wagon, 12 ton gear $3,000. Gehl 980 Chopper Wagon 18ft, 12 ton gear $4,500. NH 499 Haybine 12ft $6,000. Case JH 600 Blower $2,000. JD 466 Round Baler net/twine wrap $8,000. 1976 Allis Chalmers 7040 $5,000 OBO. 1952 JD 60 $4,000 OBO. 24ft Big Jim Silo Unloader, very good condition, best offer. Call Mark at 989 737 2389 - Frankenmuth area.
ACHIEVE THE YODER AFFECT. When flies no longer are a nuisance. www. dairyflyparasites.com. Call 888-7713276 or email usefulfarm@gmail.com. FOR SALE: 16 x 70 C & B SILO. Used for hi-moisture ground ear corn only. To be taken down. Make offer. 989777-4612. FOR SALE: 2000 GALLON MUELLER BULK TANK, $10,000. Ten polydome calf hutches $125 each. Beta snap test heater, comes with some tests, checks milk for antibiotics $75. 231-625-2036 Cheboygan, MI.
Concrete Grooving and Texturing Call: Jeff Brisky - Owner Toll Free: 1-800-294-1202 Cell: 1-716-353-1137
PTO and Automatic Start Generators 1-800-248-8070 M-40 South Hamilton, MI 49419 www.hamiltondist.com
REGISTERED HOLSTEIN BULLS OVER 100 SERVICE AGE BULLS FOR YOUR SELECTION! A special herd sire or a truck load of breeder bulls. Ready to go to work on your farm!
• Sired by the top sires from the U.S. and Canada • From our top production cows
GREEN MEADOW FARMS 6400 Hollister Road, Elsie, MI 48831 Phone: 989-862-4291
www.greenmeadowfarms.com
MAY 2017 | MESSENGER
37
MARKET REPORT
Statistical Summary
| FOR MILK MARKETED IN MARCH 2017
Market Statistics - Mideast Federal Order #33 (pounds)
This Month
Year Ago
% Change
Total Class 1 Sales
565,993,656
543,210,306
+4.19
Total Class 2 Sales
338,604,355
366,496,436
-7.61
Total Class 3 Sales
620,618,458
567,502,046
+9.36
Total Class 4 Sales
330,521,877
288,844,717 +14.43
(in millions of pounds)
2017
2016 % Change
Production
California
3,501 3,605
-2.9
Wisconsin
2,598 2,560
+1.5
New York
1,281
+3.6
Idaho
1,214 1,226
Texas
1,065
915
+16.4
Pennsylvania
966
938
+3.0
Mideast Federal Order #33
Michigan
956
924
+3.5
Total Producers..............................................................................................................5,082
Minnesota
849
833
+1.9
New Mexico
726
666
+9.0
Washington
553
572
-3.3
Avg. Oth Solids Test................................................................................................... 5.75%
Ohio
481
476
+1.1
Avg. SCC - MMPA.....................................................................................................184,000
Indiana
368
361
+1.9
* Total U.S.
17,524
17,222
+1.8
* U.S Y-T-D
50,150
49,592
+1.1
Total Production
1,855,738,346
1,766,053,505
30.5%
30.8%
Class 1 Utilization
+5.08
Avg. Daily Production per farm............................................................................ 11,779 Avg. Protein Test......................................................................................................... 3.16% Avg. Butterfat Test...................................................................................................... 3.82%
Component Pricing Information Mideast Federal Order #33
* For 23 States
Protein Price /lb........................................................................................................ $1.8198 Butterfat Price /lb.................................................................................................... $2.4176 Other Solids Price /lb............................................................................................. $0.3345 Class III Price @ 3.5%..................................................................................................$15.81 Prod. Price Diff /cwt. - Mich Mkt.............................................................................. $0.42 Uniform Price @ 3.5%................................................................................................$16.23 SCC Adjustment /cwt /1000..............................................................................$0.00078
AMS Survey Prices Product
Monthly Avg
Cheese /lb.....................................................................................................................1.5551 Butter /lb.......................................................................................................................2.1679 Nonfat Dry Milk /lb....................................................................................................0.8493 Dry Whey /lb.................................................................................................................0.5239 38
National Trends*
MESSENGER | APRIL 2017
1,237
-1.0
MMPA STAFF MERCHANDISE
MMPA Field Staff Northwest Area
Novi Headquarters
Supervisor Ben Chapin, Blanchard......................................989-289-0731
Main Office Local line...................................................... 248-474-6672 Toll free......................................................... 800-572-5824
Animal Care Coordinator Deb Gingrich, Leroy...........................................248-520-3580
General Manager Joe Diglio................................................................ ext. 202
Frank Brazeau, Oconto, WI................................906-250-0337 Lyndsay Earl, Ludington.....................................231-519-2455 Elyse Martin, Charlotte......................................810-701-6460 Sarah Michalek, Portland...................................248-305-0537 Dirk Okkema, Blanchard.................................. 248-756-2062
Chief Financial Officer Josep Barenys......................................................... ext. 240
Board of Directors
Member and Government Relations Sheila Burkhardt..................................................... ext. 208
Officers
Northeast Area
Management Information Systems Andrew Caldwell.....................................................ext. 304
Mark Halbert, Vice President
Supervisor & Mastitis Management Specialist Christy Dinsmoore, Fairgrove.............................248-513-7920
Quality Amandeep Dhillon.................................................. ext. 305
Joe Diglio, GM / Secretary
Manufactured Product Sales Jim Dodson............................................................. ext. 229
Todd Hoppe, General Counsel
Animal Care Coordinator Lindsay Green, East Lansing...............................989-488-8159 Ben Butcher, Durand.........................................248-514-5273 Ashley Herriman, Herron...................................269-245-6632 Bridget Moore, Snover......................................231-414-4539
Southwest Area Supervisor Dave Brady, Grass Lake..... 517-522-5965 or (c) 517-937-9061 Energy Auditor Ed Zuchnik, Three Rivers....................................269-967-7351 Krista Schrock, Orland, IN..................................269-986-6792 Emily Smith, Bronson.........................................269-535-0822 Brittni Tucker, Wyoming....................................248-880-3785
Southeast Area Supervisor & Mastitis Management Specialist Steve Lehman, Ithaca....... 989-875-3441 or (c) 989-330-1638 Joe Packard, Manchester...................................248-520-3481
Other Member Services Bulk Tank Calibration John Lehman, Elsie............................................248-444-6775 Sustainability Coordinator Kendra Kissane, Grand Rapids...........................248-880-4234
MMPA Labs Novi (Monday-Friday, 8 a.m.-4:30 p.m.) In Michigan....................................................800-572-5824 Toll Free 800-233-2405 Ovid (Daily, 6 a.m.-10 p.m.)..................... 989-834-2515 Constantine (Daily, 7 a.m.-10 p.m.).........800-391-7560
Laboratory Supervisor Patti Huttula........................................................... ext. 219 Operations Ed Jaquay............................................................... ext. 248 Member Services Dean Letter................................................... 989-289-9251 Milk Sales Carl Rasch............................................................... ext. 244 Credit/Insurance Cheryl Schmandt.................................................... ext. 210 Communications Allison Stuby Miller................................................. ext. 296 Supply Chain Therese Tierney....................................................... ext. 217 Member Relations Jessica Welch.......................................................... ext. 303
Ken Nobis, President
Eric Frahm, Treasurer
Josep Barenys, Asst. Treasurer
Directors-At-Large Ken Nobis, St. Johns 989-224-6170 or 248-474-6672, ext. 202 Kris Wardin, St. Johns 989-640-9420 Gertie van den Goor, Marlette 989-550-8453 Mark Halbert, Battle Creek 269-964-0511 Mark Iciek, Gladwin 989-387-4767 District Directors 1. Hank Choate Cement City 517-529-9032
Human Resources Bill Zoli.................................................................... ext. 301
2. Tim Hood Paw Paw 269-657-5771
Manufacturing Plants
3. David Pyle Zeeland 616-772-1512
Constantine, Michigan Mark Hopkins, Interim Plant Manager........... 269-435-2835 Ovid, Michigan Colt Johnson, Plant Manager........................ 989-834-2221 Deutsch Käse Haus, Middlebury, Indiana Dave Davis, Interim Plant Manager................ 574-825-9511
Merchandise - Mt. Pleasant Supervisor: Duane Farmer Main Line......................................................... 989-317-8370 Toll Free............................................................ 877-367-6455 Orders (Novi)..................................800-572-5824, then dial 2 Fax................................................................... 989-317-8372
If you are unable to reach your assigned member
Merchandise Coordinator, Energy Auditor Katie Pierson.....................................................989-289-9686
field-staff and searching by your producer number.
representative, please contact the representatives listed in your area. Your assigned member representative is listed on your quality statements or can be found by visiting mimilk.com/contact/
4. Corby Werth Alpena 989-464-5436 5. Doug Chapin Remus 231-972-2106 6. Tony Jandernoa Fowler 989-593-2224 7. Eric Frahm Frankenmuth 989-652-3552 8. Scott Lamb Jeddo 810-327-6135
MAY 2017 | MESSENGER
39
Take the STRESS out of HEAT STRESS
full color file:
grayscale file:
treatment for dark backgrounds:
Colors: PMS 2726 cool blue PMS 021 orange Font: Impact
editable file:
thermalcare Thermal Care™ R
Figure 1: Body High Heat Stres
can’t undo all performance losses caused by heat stress, but it can help minimize the effects of heat stress on production and limit some of the long-term effects on animal health and immunity.
4 3
˚F
2 1
Research proven Thermal Care R
0
increase in body temperature caused by heat stress, resulting in increased feed intake and corresponding improvements in growth, milk production and body condition.
1,2
1. Boyd, et al. 2010. J. Dairy Sci. Vol. 91, E-Suppl.1. ADM D08301. 2. Skrzypek, et al. 2010. J. Dairy Sci. Vol. 93, E-Suppl. 1. ADM D09304.
Cool technology to fight heat stress
Figure 2: Weigh
lb of gain per day
Research studies have shown Thermal Care R curbs the
3.0 2.5 2.0 1.5
ADM Alliance Nutrit
ADMAnimalNutrition.com/ThermalCare
Figure 3: Feed During High Hea
Univ. of Ge Increase over controls, lb/hd/day
866-666-7626 • support@ADMThermalCare.com
6 5 4 3 2 1 0