Michigan 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. 101 | ISSUE 10 | APRIL 2019
FOCUSED.UNITED. UNITED. STRONGER. FOCUSED. STRONGER.
103RD ANNUAL STATE DELEGATE MEETING
mimilk.com
What helps drive beef exports to $8 billion in 2018?
*
See how your dollar creates demand in new markets — adding value to your bottom line. Sign up for your complimentary newsletter at DrivingDemandForBeef.com. *Figures based on USDA data compiled by the U.S. Meat Export Federation.
mibeef.org
APRIL 2019 FEATURES 14 |
SHOCK PROOFING FINANCES At the 2019 Great Lakes Regional Dairy Conference, John Blanchfield shared tips on helping producers shockproof their finances in the rocky road of the
On the Cover MMPA members and guests gathered in Lansing, Michigan for
current dairy market. Read more about the advice he shared.
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MMPA RECOGNIZES THE FOOD BANK COUNCIL OF MICHIGAN AS VALUED PARTNER
As part of the 103rd Annual State Delegate Meeting, MMPA celebrated the partnership with The Food Bank
the 103rd Annual State
Council of Michigan. Along with the presentation of a Valued Partner award, MMPA announced a donation of
Delegate Meeting.
fresh milk and cheese.
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103RD ANNUAL STATE DELEGATE MEETING RECAP Highlights from the 103rd Annual State Delegate Meeting held in Lansing, MI on March 14. MMPA leaders shared an update on activities, board members were elected, members were honored with awards and resolutions were approved.
Michigan Milk Producers Association (MMPA), established in 1916, is a member owned and operated dairy cooperative serving approximately 1,600 dairy farmers in Michigan, Indiana, Wisconsin and Ohio.
APRIL 2019 | MESSENGER
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It’s the Law — No One Is Exempt!
THE BEEF CHECKOFF
Beef Checkoff — It’s the Law
Have You Sold Cattle on the Farm? If so, be sure you paid the $1.00 checkoff
Did you know?
• Every time you sell a bovine animal, regardless of age, sex, breed, purpose or number, a dollar per head is due. • The dollar is to be collected by the buyer from the seller, although both parties are responsible for remittance. • The checkoff is designed so that everyone pays their fair share.
How are your checkoff dollars being used? • • • • •
Beef and veal promotions and digital advertising. Food safety, health and nutritional research. Product technology and development. Educating consumers and influencers about beef ’s quality, safety and nutritional value. Protecting beef's image and engaging advocates to build consumer trust.
How do you pay?
Complete a remittance form and mail it along with your check to the Michigan Beef Industry Commission. Additional remittance forms are available through MBIC. For more information, contact: Michigan Beef Industry Commission, 2145 University Park Drive, Suite 300, Okemos, MI 48864, Phone: 517-347-0911.
Who pays?
When cattle are sold or imported, the buyer of the cattle must withhold a dollar per head, or equivalent, from the seller’s purchase price. Failure to do so is a violation of the law and may be subject to a $5,500 penalty. It’s the law — no one is exempt!
Beef Promotion and Research Program Private Treaty Sales Checkoff Investment Form
Both the seller and the buyer have the responsibility to have the $1-per-head assessment collected and remitted to the qualified state beef council. This form is designed for the seller to use in private treaty sales.
Date Seller’s Name Buyer’s Name Address Address City/State/Zip City/State/Zip Seller’s Signature Buyer’s Signature Total Number of Cattle Sold X $1 per head = $ Date of Sale State of Origin Person remitting assessment Seller Buyer Send Form & Remittance to: Michigan Beef Industry Commission 2145 University Park Drive, Suite 300, Okemos, MI 48864 According to the Paperwork Reduction Act of 1995, an agency may not conduct or sponsor, and a person is not required to respond to a collection of information unless it displays a valid OMB control number. The valid OMB control number for this information collection is 0581-0093. The time required to complete this information is estimated to average 1.8 minutes per response, including the time for reviewing instructions, searching existing data sources, gathering and maintaining the datat needed, and completing and reviewing the collection of information. The U.S. Department of Agriculture (USDA) prohibits discrimination in all its programs and activities on the basis of race, color, national origin, sex, religion, age, disability, political beliefs, sexual orientation, or marital or family status. (Not all prohibited bases apply to all programs.) Persons with disabilities who require alternative means for communication of program information (Braille, large print, audiotape, etc.) should contact USDA’s TARGET Center at 202-720-2600 (voice and TDD). To file a complaint of discrimination, write USDA, Director, Office of Civil Rights, Room 326-W, Whitten Building, 14th and Independence Avenue, SW, Washington, DC 20250-9410 or call 202-720-5964 (voice and TDD). USDA is an equal opportunity provider and employer.
MI Checkoff Form ad.indd 1
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CONTENTS 6
MMPA MATTERS Highlights of the Last Twelve Years
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QUALITY WATCH
“MMPA and its members are one of our most valued partners. Their significant contributions of fresh, wholesome milk is vital, especially for our children.”
How can you ensure your water is protected? — EXECUTIVE DIRECTOR OF THE FOOD BANK COUNCIL OF MICHIGAN, PHIL KNIGHT (PAGE 17)
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NEWS & VIEWS
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LEGISLATIVE WATCH
DEPARTMENTS
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OYDC FINALIST SPOTLIGHT
26 POLICIES
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QUALITY PREMIUMS
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FREELINERS & CLASSIFIEDS
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MERCHANDISE REPORT
YOUR DAIRY PROMOTION AT WORK
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MARKET REPORT
IN INDIANA
31 STAFF
MANAGING MANURE STORAGE STRUCTURES
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MMPA Core Values: » Quality » Integrity » Progress » Leadership » Community Managing Editor................................................ Sheila Burkhardt Editors.............................. Allison Stuby Miller, Krista Schrock Advertising Manager......................................Nancy Muszynski Circulation..................................................................................... 2,609 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.
41310 Bridge Street P.O. Box 8002 Novi, MI 48376-8002
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 2019 | MESSENGER
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MMPA MATTERS
Highlights of the Last Twelve Years BY KEN NOBIS, MMPA PRESIDENT
It is hard to believe that I have been writing this column for twelve years as president of our co-op’s board of directors. Before that, I served as vice-president and before that as a board member. MMPA made measurable progress during my time as president. Here are some highlights I see as I turn around to look back at the last twelve years. • Consistent production of high-quality milk is the hallmark of our co-op. • We are no longer viewed as a relatively small, one-state co-op. The recognition of MMPA outside Michigan has blossomed. We are recognized as progressive, able to motivate our members to produce very highquality milk, and adaptive to provide increasing transparency on our farms as demanded by consumers. • Our network expanded to include a wide variety of friends in non-dairy agricultural groups. Working together has given us added clout, increasing our chances of being successful in preventing heavy-handed regulations.
“I am grateful that I was given the opportunity to accomplish many things and forge many relationships over the years that have made our co-op better. I appreciate our loyal customers and members.”
• MMPA gained stature nationally because of our effective working relationship with elected officials, notably Senator Debbie Stabenow. Positive changes from former farm bills were written into the 2018 farm bill, projected to open for sign-up soon. I was able to work directly with the Senator and the Senate Agriculture Committee staff because of the relationship I have developed with her over the years based on her commitment to the farmers of Michigan. She supports farmers in many other ways, too, such as assisting with immigration matters. • Marketing milk is complicated and influenced by conditions around the world. While milk production has increased in our neighborhood, a real problem is the European Union. Rather than let market forces prevail when the E.U. removed quotas in 2015, it purchased over 400 million metric tons of powder and put it in storage. It is now depleted, so this summer should see some buoyancy in prices. • One fleeting year of record high dairy prices came after the most severe recession since the great depression of the 1930s. Then came the past four years of very low or nonexistent profit margins. Despite unsteady prices, milk production soared in our little corner of the world, increasing by 97 percent with 42 percent more cows between 2000 and 2017 in Michigan alone. MMPA saw it developing and made the decision to expand our Ovid plant in 2008. • We have worked on many projects with others, including fellow cooperative Foremost Farms USA. • Fresh milk is a highly requested food bank item. MMPA, starting in 2015 and again in 2016 in response to the Flint water crisis and continuing today, teamed up with Kroger Company and Food Bank Council of Michigan to provide dairy products to those in need. • We answered the call from Superior Dairy to provide milk. The volume has more that replaced the fluid supply going to the Dean plants in lower Michigan up until 2015. • That same year, 2015, we added a separator at the Constantine plant to help process the ever-growing supply of milk coming at us. • We purchased a small cheese processing plant in Middlebury, Indiana. It produces high quality cheese under MMPA’s own brand, Heritage Ridge Creamery. • We decided in April 2018 to move forward on a value-added opportunity with ultra-filtered milk. We broke ground in Constantine in June, and the project was completed in November. The 1.3 million pound per day capacity is consistently filled. • At the time of this year’s annual meeting, MMPA had more than doubled its processing capacity from 4 million to 9.5 million pounds of milk per day, with another 700,000 pounds per day projected to be added. I am grateful that I was given the opportunity to accomplish many things and forge many relationships over the years that have made our co-op better. I appreciate our loyal customers and members. I am proud of what MMPA’s exceptional staff and our board accomplished working as a team during my tenure to market our members’ milk to the greatest advantage possible.
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MESSENGER | APRIL 2019
APRIL 2019 | MESSENGER
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QUALITY WATCH
How can you ensure your water is protected?
Anna Tucker
Joe MacPhe
Ashley Messing Kennedy
MMPA member representative
Senior Dairy Inspector, MDARD
Sheridan Dairy
Water protection on farms can be a hard concept to understand. Many questions can come up when trying to figure out if the farm water supply is protected from contamination. “Do I need an air gap and how much? Do I need a backflow preventer and if so, what kind of backflow device do I need? Where does this waterline go? According to the Pasteurized Milk Ordinance (PMO), water that supplies the milkhouse and is used to clean milk contact surfaces needs to be protected from such things as bacterial contamination, chemical injection and back siphoning from submerged inlets. It is important that water violations are addressed not only for milk safety reasons, but also because it can be a two point or five point violation on a state survey or federal check rating, depending on the type of violation and severity. Because of the complexity of this subject, I urge producers to work closely with their field representative and state inspector to ensure their water is properly protected – it needs to be a group effort.
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MESSENGER | APRIL 2019
As we all look forward to warmer weather, I like to remind dairy farmers that spring is an excellent time to look for a few common water violations. Look at your well to check for a loose or missing well cap as well as broken/ loose conduit. Also look for depressions around the well. Check your stock tanks for submerged inlets. A hose feeding a stock tank needs to have an air gap of twice the diameter of the hose. As spring approaches portable pressure washers begin to appear at the farm. Make sure that these useful tools have the proper water protection devices. If you have a plate cooler at your farm, then be sure that the discharge water is not going to a tank via a submerged inlet. Also, if your plate cooler has a water bypass line be sure that a backflow prevention device is on the bypass line. These are just the tip of the iceberg when it comes to water violations. But with a few minutes of review each spring you can save yourself later headaches.
As a farm within 30 minutes of three major watersheds, we take water protection extremely serious not just for our farm, but for our neighbors and community. Having high quality water for our cows and to clean our equipment is just as important to us as making sure we are caring for the watersheds around our operation. When we installed our robots almost six years ago, we worked closely with our equipment dealer, state inspector, local plumber and member representative to make sure our water sources were properly protected. With the automation of robots, it is even more important for us to stay on top of preventative maintenance including our water systems. Now we, along with our equipment dealer, check for potential water debits at least twice a year.
NEW FOR 2019! SIGN UP NOW FOR DAIRY CARE ACADEMY
What is Dairy Care Academy? Dairy Care Academy is a new FREE MMPA program to help farms meet training requirements for the F.A.R.M. program. The interactive, day-long training will include three sessions covering milking practices, dairy stockmanship and calf care.
Learn more at mimilk.com/dairy-care-academy Contact Marianne Gasiewski at 248-442-7597 or gasiewski@mimilk.com
April 3:
Mecosta County Building, 14485 Northland Drive, Big Rapids
April 9:
George N. Fletcher Public Library, 211 N. 1st. Avenue, Alpena
April 23:
Allegan County Human Services Building, 3282 122nd Avenue, Allegan
May 7:
Whittemore Fire Station, 503 S. Bullock Street, Whittemore
Registration at 9:30 a.m. All trainings are from 10:00 a.m. to 3:00 p.m. and include lunch.
NEWS & VIEWS
Producers scoring 95 percent or higher on Grade A surveys and federal check ratings Steenblik Dairy Inc. Dutch Meadows Dairy LLC
MMPA District Officers 2019
MMPA Districts
Elected during MMPA District meetings held in February 2019.
February Milk Price Announced The USDA reported that February’s Class III price is $13.89 per hundredweight, down $0.07 from January. The Class IV Price is $15.86, up $0.38.
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SECOND ANNUAL MMPA
Photo Contest
FOR MORE INFORMATION, VISIT: WWW.MIMILK.COM/PHOTO-CONTEST
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April 9 Advisory Committee
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1
District 5
Chairman: Scott Ferry, Litchfield Vice Chairman: Brian Preston, Quincy Secretary: Art Riske, Hanover State Credentials Committee:
Chairman: Mike Rasmussen, Edmore Vice Chairman: John Black, Howard City Secretary: Gordon Dick, McBain State Credentials Committee:
Dan Williams, Homer
Tyler Wilson, Carson City
State Resolutions Committee: Bruce Lewis,
Jonesville; Scott Ferry, Litchfield; Brian Preston, Quincy; Art Riske, Hanover
State Resolutions Committee: Bruce Benthem, McBain; John Black, Howard City; Tom Jeppesen, Stanton; Tyler Wilson, Carson City
District 2
District 6
Chairman: Mike Oesch, Middlebury, IN Vice Chairman: Jesse Ramer, Elkhart, IN Secretary: Richard Ultz, Burr Oak State Credentials Committee:
Chairman: Ken Wieber, Fowler Vice Chairman: David Reed, Owosso Secretary: Steven Thelen, Fowler State Credentials Committee:
John Hufnagel, Westphalia
State Resolutions Committee: John Adam,
Goshen, IN; Brad Crandall, Battle Creek; Mike Oesch, Middlebury, IN; Jesse Ramer, Elkhart, IN
State Resolutions Committee: John Hufnagel, Westphalia; David Reed, Owosso; Jim Slavik, Ashley; Ken Wieber, Fowler
District 3
District 7
Chairman: Glen Sparks, Fremont Vice Chairman: Bill Stakenas, Freesoil Secretary: Burke Larsen, Fremont State Credentials Committee:
Chairman: John Bennett, Prescott Vice Chairman: Chris Daniels, Whittemore Secretary: Rodney Fowler, Chesaning State Credentials Committee:
Meeting, Novi
Glen Sparks, Fremont
John Bennett, Prescott
State Resolutions Committee: Gary Nelsen,
April 9-10
Grant; Russ Acker, Sand Lake; Tim Butler, Sand Lake; Nate Pyle, Zeeland
State Resolutions Committee: John Bennett, Prescott; Leslie Daenzer, Frankenmuth; Rodney Fowler, Chesaning; James Weber, Vassar
Indiana Milk Quality
District 4
District 8
Conference, Plymouth, IN
Chairman: Marvin Rubingh, Ellsworth Vice Chairman: Paul Ponik, Posen Secretary: Kimberly Pirman, Skandia State Credentials Committee:
Chairman: Darwin Sneller, Sebawaing Vice Chairman: Mike Noll, Croswell Secretary: Kristie Lamb, Jeddo State Credentials Committee:
April 17 Dairy Communicators Meeting, St. Johns
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District 1
Richard Ultz, Burr Oak
Upcoming Events
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Send us your photos that capture the essence of our cooperative and the dairy farm lifestyle. Submit high resolution photos now through July 1, 2019. Three winners will be selected and win prizes including a $100 certificate to the member merchandise program and publication in the Michigan Milk Messenger. In addition, this year a ‘People’s Choice’ winner will be selected.
MMPA Districts
MESSENGER MESSENGER | APRIL | APRIL 2019 2019
Ron Lucas, Posen
State Resolutions Committee: Ron Lucas,
Posen; Marvin Rubingh, Ellsworth; Richard Fettig, Petoskey; Russ Tolan, Ossineke
Dale Phillips, Marlette
State Resolutions Committee: Bill Blumerich, Berlin; Mike Noll, Croswell; Pat Bolday, Emmett; Dale Phillips, Marlette
MMPA returns $1.5 million in cash patronage refunds Board Member Election Results During the annual and district meetings, MMPA members elected and reelected board members. DIRECTOR AT LARGE
At the 103rd Annual State Delegate Meeting on March 14, two director-at-large positions were up for election. Delegates elected the following members to serve three-year terms: Aaron Gasper of Lowell, Michigan Gertie van den Goor of Marlette, Michigan
MMPA recently paid $1.5 million in cash patronage refunds to its dairy farmer member-owners. This cash allocation represents 100 percent of the farm supply earnings and 25 percent of the milk marketing earnings. All members who marketed milk through MMPA for fiscal year 2018 received a portion of the allocation. MMPA members received other cash payments in April 2018 of $4 million through retirement of the cooperative’s 2008 equities. With the current payment of $1.5 million, cash payments in the last 10 months total over $5.5 million. “The nearly $6 million in patronage refunds and equity retirements we’ve recently returned to our member-owners speak to the financial strength MMPA,” Joe Diglio, MMPA CEO said. “These patronage refunds are the earnings achieved from our efforts on behalf of our member-owners.” Cash patronage funds and equity allocations are based on the amount of milk each individual member farm marketed and on the supplies purchased through the cooperative during the year in which the earnings were achieved. Under the current board policy, the non-cash balance of the equity allocation will be revolved back to the members in future years.
BOARD MEMBERS
Board members reelected during District Meetings in February are: District 5:
Doug Chapin of Remus, Michigan District 8:
Scott Lamb of Jeddo, Michigan OFFICERS
During the MMPA board’s reorganizational meeting, held after the annual state delegate meeting, the following officers were elected:
LEGENDAIRY. No bull.
President
Co-Products Menu
Kris Wardin
Soybean meal, canola meal, hominy, oat hulls, wheat midds, citrus pulp, malt sprouts, beet pulp, soybean hulls, cereal feed, cottonseed, distillers, gluten feed, wet feeds and more!
Vice President
Doug Chapin Treasurer
Eric Frahm More information about the Annual Meeting can be find on page 18 of this issue of the Michigan Milk Messenger.
Non-GMO
products available
Contact merchandisers at ZFS, Inc: MI/IN/OH: 866.888.7082 WI: 800-523-6760 www.zfsinc.com/divisions/ingredients
APRIL 2019 | MESSENGER
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LEGISLATIVE WATCH
DAIRY'S IN FOR THE LONG HAUL ON TRADE BY JIM MULHERN, PRESIDENT & CEO, NATIONAL MILK PRODUCERS FEDERATION
T
he importance of international trade to the U.S. dairy economy is almost impossible to overstate. So is current uncertainty surrounding trade relationships.
JIM MULHERN, PRESIDENT & CEO, NATIONAL MILK PRODUCERS FEDERATION
Chinese and U.S. negotiators are grappling with how to reset the world’s biggest bilateral trading relationship, with hopes of an agreement later this month. The U.S.-Mexico-Canada Agreement, the signature U.S. trade achievement of 2018, has yet to be ratified by Congress. And the Section 232 tariffs on aluminum and steel that have invited retaliation against dairy from crucial trade partners – China, Mexico and Canada – remain in place. Each discussion is crucial for dairy, which is ever-more-dependent on global markets to support prices as
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MESSENGER | APRIL 2019
U.S. production rises to meet global demand growth – over the past 15 years one-half of U.S. production growth has gone to exports, and the percentage of the U.S. milk supply sent abroad has steadily increased. The outcome of each debate, in turn, will shape the direction of other negotiations important to the sector, including potential bilateral talks with Japan, the European Union, and the post-Brexit U.K., and potential negotiations with the Philippines and Vietnam. But as discussions grow more complex – and headlines swing wildly from hopeful to gloomy and back again – it becomes only more important to be mindful of two things: First, that in our own advocacy as NMPF and the work we support with the U.S. Dairy Export Council, we advance dairy’s interests at all times. Second: When it comes to improving market access, dairy is in it for the long haul, and we will settle for nothing less than the best possible trade terms for our producers. One example of these principles in action is how we are calling for the immediate approval of USMCA as well as demanding that negotiations on Section 232 tariffs conclude and retaliatory tariffs are lifted. Our job is to support USDEC and to ensure that the US government and Congress pursue policies that benefit producers. To ensure prosperous dairy trade over the long term, an overarching need is for agriculture in the current environment is to be excluded from trade disputes that may or may not be justified. Because agriculture is a rare part of the U.S. economy with a trade surplus, it’s a tempting target for trade partners looking to retaliate
against actions against them – and that’s a recipe to make U.S. farmers collateral damage in any trade war. While trade agreements that may be past their prime can be legitimately ripe for renegotiation, we then need to strengthen and renew those ties, not limit them in ways that harm U.S. dairy producers.
farmers and hampers U.S. agricultural competitiveness, especially irritants such as the EU’s use of geographical indications to pursue protectionist policies, when it insists on excluding agriculture from any U.S. trade talks. We want trade deals – but not simply for the sake of have them. We will always represent our cooperatives’ interest. And be patient.
While trade agreements that may be past their prime can be legitimately ripe for renegotiation, we then need to strengthen and renew those ties, not limit them in ways that harm U.S. dairy producers.
Our patient, consistent, and effective work in these areas persist. We have told the U.S. Trade Representative’s office of the importance of including agriculture in any EU negotiations and pointed out a study by the U.S. Dairy Export Council outlining a potential loss of $20 billion farm revenue should the EU view of geographical indications take hold. USDEC has also studied how a changed competitive position in Japan could lead to more than $5 billion in losses, as the U.S. may lose market share as other nations implement trade agreements while the U.S. stands still.
We also need to negotiate and pass new trade agreements. The U.S. last successfully completed trade treaties in 2012, when agreements with Panama, Colombia and South Korea came into force. Meanwhile, competitors continue to conclude new agreements. The Trans-Pacific Partnership sailed without the U.S. last year, as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership completed its journey. And the EU jumps from accord to accord, most recently with Japan. Finally, we need to ensure that negotiators focus on key sectors important to agriculture and not accept any drive for freer trade that puts farmers in the back seat. For example: NMPF supports breaking down trade barriers as a matter of principle, but we can’t simply allow the EU to get away with preserving a status quo that unfairly protects its
Such patience is vital as trade developments twist, turn, and frustrate. The fact is, dairy needs greater market access. Increased dairy shipments abroad are the central reason behind the USDA’s forecast for a mild milk-price recovery forecast in its Agriculture Outlook forecast made in February. Greater access would provide an even greater recovery, one that’s hampered so long as tariffs continue to bite. When dairy’s prosperity returns, exports will be a big reason behind it. But easing the path for exports must be done right. That’s what we will stand for, and will always stand for, no matter how much the momentary shifts in trade winds may try to blow us off that path.
MMPA Advisory Committee DISTRICT 1 Art Riske, Hanover................................ 517-524-6015 Clark Emmons........................................ 419-466-4471 Brian Preston.......................................... 517-376-1350 Scott Ferry, Litchfield.......................... 517-214-3298 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 Mark Crandall, Battle Creek............... 269-660-2229 Michael Oesch, Middlebury, IN ...... 574-825-2454
DISTRICT 3 Bill Stakenas, Free Soil......................... 231-425-6913 Burke Larsen, Scottville...................... 231-425-8988 Arlyn Walt, Coopersville..................... 616-837-8247 Tim Butler, Sand Lake.......................... 269-330-5538 Bill Gruppen, Zeeland......................... 616-520-5143
DISTRICT 4 William Pirman, Skandia.................... 906-869-4515 Dave Folkersma, Rudyard.................. 906-630-1957 Paul Ponik, Posen ................................ 989-464-5924 Marvin Rubingh, Ellsworth............... 425-533-8106 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 Robert Lee, Marion.............................. 231-743-6794 Mike Rasmussen, Edmore................. 989-379-4694
DISTRICT 6 John Thelen, Westphalia.................... 989-587-3951 Renee McCauley, Lowell.................... 616-283-6411 Steve Thelen, Fowler........................... 989-682-9064 David Reed, Owosso............................ 989-723-2023 Mike Halfman, St. Johns..................... 989-640-1963
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 Rodney Fowler, Chesaning............... 989-302-2299
DISTRICT 8 Mike Noll, Croswell............................... 810-404-4071 Jeremy Sharrard, Peck......................... 810-404-5076 Bryan Schulte, Ruth............................. 989-551-8200 Bill Blumerich, Berlin........................... 810-706-2955 Darwin Sneller, Sebewaing............... 989-977-3718
APRIL 2019 | MESSENGER
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SHOCKPROOF YOUR FINANCES BY MELISSA HART
“No one wants you to farm until it’s all gone. Keep your banker as a willing partner, this will give you an edge, and this economy is all about having little edges to have success in 2019,” John Blanchfield stated at the 2019 Great Lakes Regional Dairy Conference held in Frankenmuth.
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MESSENGER | APRIL 2019
“Nothing I say is going to change the economic outlook of the dairy industry,” Blanchfield said as he began his presentation on helping producers shockproof their finances in the rocky road of the current dairy market. With over 40 years of experience in agricultural finance, he noted that the differences between the top twenty-five percent and the bottom twenty-five percent of dairy producers are very small and he offered some incremental changes producers could make in the way they do business to be more prepared for the days and months ahead.
Five years ago, Blanchfield founded Agricultural Banking Advisory Service, an independent consultancy that is dedicated to helping community bankers improve their ag lending programs with the goal of making more credit available to farmers and ranchers. Since starting his company, Blanchfield has published over twenty articles on ag banking and has delivered more than sixty speeches to bankers and their farm and ranch customers. Blanchfield pointed to an ever-changing farm economy and the volatility that has been in place since the 1940s. With an emphatic tone he said, “For millennials, the best years in this industry may have already gone by, so be prepared.” After revisiting the farm crisis of the 1980s where interest rates rose to havoc wreaking levels in the farm economy, he warned that while interest rates are low now, it’s likely they will rise significantly and those with variable rates of interest are leaving themselves exposed and he advised the renegotiation of those contracts. Looking good from a financial perspective is important in ag lending. Blanchfield said forty percent of midwestern bank CEO’s biggest concern in 2019 is ag loan defaults. “That means you need to look as good as you can in order to borrow money successfully,” he explained. There are several steps to the borrowing process. A plan that is well thought out, and that you have working familiarity with, is crucial. Producers need to ask themselves how much skin do they have in the game? Is the loan request a “Hail Mary” and is it achievable based on past performance?
“How many people have lost sleep over financial statements? They don’t have to be perfect, they just have to be decent and accurate. If you could get the balance sheet and the farm operating statement completed, that would be a huge step in the right direction,” Blanchfield said. He also noted that when lenders show up at the farm they are not only looking at the overall condition of the operation, they are also listening to how the owner talks to his employees. Mutual respect between the employer and employees is important. In addition, lenders are also looking for how well the livestock look, if the machinery is well maintained and under cover and if key people working or are they sitting around waiting for dad to tell them what to do?
“Forty percent of midwestern bank CEO’s biggest concerns in 2019 is ag loan defaults. That means you need to look as good as you can in order to borrow money successfully.”
“Cash is your friend, keep it around,” he stressed. Blanchfield also mentioned equipment that is sitting around the farm, that is not in use, should be sold, “if it’s not carrying its weight.” Short-term debt was another aspect Blanchfield warned about, “As farmers, you always want to borrow short and pay things off as soon as you can and as a result, when your income goes down, you get behind in other areas like taxes or the feed bill or fertilizer,” he said. “Remember to finance ‘like’ with ‘like.’ However long that asset is going to last, that’s how long you should finance it.” Blanchfield stressed that involvement with farm groups, paying attention to what’s going on off the farm, and taking advantage of learning opportunities, are also great ways to stay on the cutting edge of agriculture. “If you get through 2019 and you have your business intact, your farm intact, your family intact, you’ve won,” he said. “That’s my definition of success.” APRIL 2019 | MESSENGER
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y r i a D revenue protection
Farm Bureau Insurance of Michigan, has been named MMPA’s RECOMMENDED INSURANCE PROVIDER for Dairy Revenue Protection Insurance. American Farm Bureau Federation in cooperation with American Farm Bureau Services, Inc. developed this new policy to protect your farm from unexpected declines in milk prices and production. Our team of dedicated Crop Insurance Specialists are ready to explain this policy and illustrate what it can do for your farm. Protect your farm today by calling (800) 544-CROP for more information or to locate a Crop Insurance Specialist near you! RECOMMENDED PROVIDER
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MESSENGER | APRIL 2019
MMPA CELEBRATES PARTNERSHIP WITH MICHIGAN FOOD BANKS and donates fresh milk and cheese Michigan Dairy plant in Livonia, Michigan. The cheese comes from MMPA’s subsidiary brand, Heritage Ridge Creamery, based in Middlebury, Indiana.
150
GALLONS OF MILK PER DAY FOR ONE YEAR DONATED TO MICHIGAN FOOD BANKS
+ 50
POUNDS OF CHEESE PER DAY FOR ONE YEAR DONATED TO MICHIGAN FOOD BANKS
F
ood banks across the state of Michigan will receive a new batch of milk and cheese this year, thanks to MMPA. MMPA celebrated its partnership with the Food Bank Council of Michigan (FBCM) with a Valued Partner award presented today in Lansing, Michigan during MMPA’s annual meeting.
“We are grateful for the council’s hunger relief efforts in helping our neighbors,” Nobis said. “Today, we honor the organization with our Valued Partner award and look forward to our continued partnership with another donation in 2019.” Food banks need fresh food like milk and cheese to support Michigan residents, one of seven of which struggle with hunger. FBCM is made up of member regional food banks in the state of Michigan. Through their distribution network, the donated
dairy products will reach all 83 counties of Michigan. “Partnerships are the key to ending food insecurity in Michigan,” said Phil Knight, executive director of the Food Bank Council of Michigan. “MMPA and its members are one of our most valued partners. Their significant contributions of fresh, wholesome milk is vital, especially for our children.” The announcements were made at MMPA’s 103rd Annual Meeting in Lansing, Michigan. Approximately 400 dairy farmer members and guests gathered at the meeting today to discuss the current dairy industry, recognize members, adopt policy resolutions and elect board members.
“Our partnership with the Food Bank Council of Michigan began in 2015 and has resulted in thousands of families in Michigan receiving fresh milk—one of the most requested and nutrient rich food bank items,” Ken Nobis, MMPA president and dairy farmer said. During the award presentation, MMPA announced a donation of 150 gallons of milk and 50 pounds of cheese per day for an entire year to the FBCM. The Kroger Company of Michigan is donating the processing and packaging of the milk at their
MMPA PRESENTED THE FOOD BANK COUNCIL OF MICHIGAN WITH THE 2019 VALUED PARTNER AWARD DURING THE ANNUAL MEETING. PICTURED, BACK ROW FROM LEFT: KENNETH ESTELLE, FEEDING AMERICA WEST MICHIGAN; KARA ROSS, FOOD BANK OF EASTERN MICHIGAN; JOE DIGLIO, MMPA; PETER VOGEL, FOOD BANK OF SOUTH CENTRAL MICHIGAN; JOE WALD, GREATER LANSING FOOD BANK; AND GERRY BRISSON, GLEANERS FOOD BANK. FRONT ROW, FROM LEFT: KEN NOBIS, MMPA AND PHIL KNIGHT, FOOD BANK COUNCIL OF MICHIGAN.
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FOCUSED. UNITED. ST FOCUSED. UNITED. STRONGER.
103RD ANNUAL STATE DELEGATE MEETING Approximately 400 members and guests gathered for the 103rd Annual State Delegate Meetin of the Michigan Milk Producers Association on March 14 at the Lansing Center in Lansing, Michigan.
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MESSENGER | APRIL 2019
MMPA PRESIDENT KEN NOBIS PROVIDED AN UPDATE ON INDUSTRY AND MMPA ACTIVITIES, INCLUDING THE ADDITION OF THE PROCESSING CAPABILITIES AT THE CONSTANTINE PLANT.
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MMPA CEO JOE DIGLIO DISCUSSED HOW SUCCESSFUL COMPANIES EMERGE FROM A CHALLENGING ENVIRONMENT THROUGH TECHNOLOGY, TEAM WORK AND RELATIONSHIPS.
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MMPA BOARD MEMBER DOUG CHAPIN AND KEN NOBIS INTRODUCED THE 2018 OUTSTANDING YOUNG DAIRY COOPERATORS (OYDC) FINALISTS AT THE MEETING, INCLUDING 2018 RUNNERS UP JEREMY AND DEANNA BEEBE AND 2018 WINNERS PAUL AND NANCY PYLE.
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MMPA TREASURER ERIC FRAHM PRESENTED MMPA DELEGATES WITH A REPORT ON THE CO-OP’S FINANCIALS RESULTS FROM FISCAL YEAR 2018. THE REPORT EMPHASIZED THE CONTINUATION OF MMPA’S STRONG FINANCIAL POSITION WHICH IS POISED FOR FUTURE INVESTMENT OPPORTUNITIES.
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KEN NOBIS (LEFT) AND JOE DIGLIO (RIGHT) PRESENTED MIKE REIDY FROM LEPRINO FOODS COMPANY WITH THE CHAMPION OF DAIRY AWARD FOR HIS SUPPORT OF THE DAIRY INDUSTRY DURING HIS OVER TWO DECADE LONG TENURE AT LEPRINO FOODS COMPANY.
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APRIL 2019 | MESSENGER
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6 BUSINESS CONDUCTED BY THE DELEGATES INCLUDED THE ADOPTION OF THE 2019 MMPA RESOLUTIONS AND ELECTION OF AARON GASPER OF LOWELL, MICHIGAN AND GERTIE VAN DEN GOOR OF MARLETTE, MICHIGAN TO THE BOARD OF DIRECTORS IN A THREE-YEAR, AT-LARGE POSITION. DURING THE BOARD REORGANIZATIONAL MEETING FOLLOWING THE ANNUAL MEETING, KRIS WARDIN (PICTURED) WAS ELECTED PRESIDENT OF THE MMPA BOARD OF DIRECTORS. 7
PAUL AND NANCY PYLE RECEIVED THEIR 2018 OUTSTANDING YOUNG DAIRY COOPERATORS AWARD AND SHARED THEIR FARM AND PASSIONS WITH MMPA MEMBERS AND GUESTS.
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BRIAN RICH FROM CONSUMERS ENERGY THANKED MMPA ON BEHALF OF THE ENERGY COMPANY FOR REDUCING GAS CONSUMPTION AT THE OVID PLANT TO RESPOND TO AN EMERGENCY DURING THE “POLAR VORTEX” AT THE END OF JANUARY.
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MESSENGER | APRIL 2019
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MMPA PRESIDENT KEN NOBIS, MEMBER REPRESENTATIVE EMILY PEACOCK AND EAST AREA SUPERVISOR CHRISTY DINSMOORE PRESENTED MEADOW MUTH FARMS LLC OF FRANKENMUTH, MICHIGAN WITH THE HIGHEST QUALITY MILK PRODUCTION AWARD. PICTURED, BACK ROW FRONT LEFT: JACOB DAENZER, LUKE DAENZER, TODD DAENZER. FRONT ROW FROM LEFT: EMILY PEACOCK, DOUG DAENZER, LESLIE DAENZER, KEN NOBIS, CHRISTY DINSMOORE
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MMPA RECOGNIZES 35- AND 50-YEAR MEMBERS at Annual State Delgate Meeting
Seventeen MMPA members were recognized for 35 or 50 years of membership at the MMPA 103rd Annual State Delegate Meeting held in Lansing, MI on March 14, 2019.
MMPA 35-Year Members Arthur Bienz, Jackson County Plus Local Kevin Bollinger, Alma Local Pam A. Bontekoe, Evart Local Eric Clemens, Sunrise Local Janeen Fisk, Sunrise Local Kendell Hardies, Hillman Local Noel Hardies, Hillman Local William Hardies, Hillman Local Peter A. Juengel, Flint Local Alan M. Koppenol, Muskegon Local Keith Leipprandt, Huron Local Brian Lundberg, Muskegon Local Robert S. Millard, Clare-Mt. Pleasant Local Kenneth L. Wyrick, Mid-Michigan Local
MMPA’s 50-Year Members Max E. Lamb, Mid-Thumb Local
Paul H. Marion, Saline-Ann Arbor Local Charles A. Wadell, Mid-Michigan Local
MMPA PRESIDENT KEN NOBIS (RIGHT) PRESENTED PAUL AND CONNIE MARION WITH THE 50-YEAR MEMBERSHIP MILESTONE AWARD.
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MESSENGER | APRIL 2019
OYDC SPOTLIGHT
2018
OYDC FINALISTS BJ and Molly Pluger ABOUT US… Children: Samuel (10), Lia (8) and Miley (4)
Yonkman Dairy was founded in 1944 in McBain, Michigan. Molly serves as the farm’s herdsman, manages the farm employees and milks the sick cows. BJ manages the crops and helps oversee the day-today operations. They currently are of merging with a neighboring family farm to help be more efficient. Cow comfort and genetics continue to be top priorities while moving through the transitions. “I want our farm to be here for the next generation.
Cows: I’m proud of our team, I’m proud of our herd and 700 milking, 2,000 total head I’m proud of our farm,” Molly said. “Having a good Milking facility: milking three times per day in a 40-stall rotary parlor
support system in my family and being able to rely on my team at the farm helps me stay positive. Finding something good every day and not getting bogged down with details helps too.”
Land: Updating facilities, building a better calving facility, diversifying the farm and 3,000 acres of corn, alfalfa continuous improvement are in the farm’s future. It is their goal to be self-sufficient by and oats Member of: Evart Local, District 5
raising their own feed while maintaining high milk and feed quality and to survive the current rough dairy market.
“The best part of being a dairy farmer is having challenges every day and having the ability to make your own decisions as the boss. I love watching my kids grow up on our farm and get more involved. Another thing I enjoy is being able to take great care of our animals from birth to when they become a beautiful milking cow,” said Molly. APRIL 2019 | MESSENGER
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MANAGING MANURE STORAGE STRUCTURES BY SARAH FRONCZAK, MICHIGAN STATE UNIVERSITY EXTENSION Updated from an original article written by Roberta Osborne.
L
ast December’s early onset of winter weather combined with heavy snow cover may mean some manure storages are nearing capacity and soon, the spring rain will begin to fall.
event. Freeboard means the distance from the level of manure to the top of the storage structure. This “storm event” amount is an average of an additional 4 inches in Michigan. You can check your county’s precipitation.
Rain has a way of making spring field work difficult, slowing the progress of all fieldwork including emptying in-ground manure storages. The more rain, the more freeboard disappears in the storage and the less opportunity to spread manure without getting stuck. What to do?
For all storage structures, especially earthen, cautiously walk the perimeter of the storage daily (if necessary) based on your rainfall amounts, weather forecasts and storage situation. Recognize that berms for earthen storages, just like fields, may be water saturated and weakened. Assess how solid the sides are, looking for low points or areas with lower structural integrity.
Daily Monitoring
There are no simple solutions, but thinking through your specific situation, and monitoring it daily can help prevent, or at least minimize, environmental risks and potential regulatory issues. Outside manure storages should be designed with freeboard to deal with extreme spring weather. The Generally Accepted Agricultural Management Practices (GAAMPs) for manure state that all manure storage structures shall maintain a minimum freeboard of twelve inches (six inches for fabricated structures) plus the additional storage volume necessary to contain the precipitation and runoff from a 25-year, 24-hour storm
Keep Clean Water Clean
The late spring and excessive rains in some parts of Michigan may cause the freeboard to be consumed by rain and runoff. As rain fills up this freeboard, it may put stress on the integrity of the structure. If the stress results in a break or overflow of the storage, thousands of gallons could quickly exit the manure storage. A manure storage that captures excess clean water runoff from around the farmstead, in addition to direct rainfall, obviously fills up even faster. Diverting clean water from reaching the manure storage would help now and in future rainy weather.
In the event that a manure storage breaches and manure reaches surface waters, notify the Pollution Emergency Alerting System immediately by contacting: Department of Environmental Quality – 800) 292-4706 Michigan Department of Agriculture and Rural Development – (800) 405-0101
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MESSENGER | APRIL 2019
Plan for Emergencies Each farm location has unique risks of manure reaching surface waters. Asses your risk, consider what the worst case scenario might be and think through a plan to address that situation. Knowing the down slope direction from the storage will help you think through what sensitive areas are along that path and help you know how critical the risks could be. Know how to get earth moving equipment on site immediately and plan where potential berms would need to be built to divert the flow from reaching surface water, neighboring property or road ways. Even when there are not imminent risks to surface waters, have plans in place to contain, control and stop manure from moving overland. If your farm doesn’t have a written plan, you can learn how to do one with MSU Extension bulletin E-2575s, Emergency Planning for the Farm: Livestock Operations. Already at Freeboard? Do everything you can to reduce liquid manure storage before they are dangerously close to overflowing. Even relieving a few inches off the top will buy some time and reduce stress on the storage system. Options may include transferring manure to another system, hauling to the driest field you have or assessing if you can get on any alfalfa field without getting stuck. THIS ARTICLE WAS PUBLISHED BY MICHIGAN STATE UNIVERSITY EXTENSION. FOR MORE INFORMATION, VISIT HTTP://WWW.MSUE.MSU. EDU. TO HAVE A DIGEST OF INFORMATION DELIVERED STRAIGHT TO YOUR EMAIL INBOX, VISIT HTTP://WWW.MSUE.MSU.EDU/ NEWSLETTERS. TO CONTACT AN EXPERT IN YOUR AREA, VISIT HTTP://EXPERT.MSUE.MSU. EDU, OR CALL 888-MSUE4MI (888-678-3464).
YOUR DAIRY PROMOTION AT WORK
The American Dairy Association Indiana (ADAI) is excited to share more upcoming events and continue to work on behalf of dairy farmers to connect the public with dairy. Thanks to partnerships, events, and conversations, ADAI piqued an interest in those consumers hungry for information. We are proud to show the public the real story of dairy thanks to our farmers producing a safe, nutritious product every day of the year. A special thanks to MMPA for letting us share our successes with you throughout the year! Check out some of our programs and people below and connect with us at any time through social media, @INDairy! STAFF FEATURE: BROOKE WILLIAMS, DIRECTOR OF COMMUNICATIONS
Brooke Williams joined the ADAI staff six years ago as Communications and School Wellness Manager. In this position, she led the group’s partnership with the Indianapolis Colts in the Fuel Up to Play 60 health and wellness program. In her new role, Brooke will direct program partnerships between the dairy association and Indianapolis Motor Speedway, Indiana State Fair, 500 Festival and Indianapolis Zoo, among others. She also will lead all ADAI communications including social BROOKE WILLIAMS media, traditional media and website. Brooke holds a bachelor’s degree in Health Promotions Management from Hastings College, and a master’s degree in English/Literature from Kansas State University. She resides in Zionsville, IN with husband Bennett and daughter Scottie.
EVENT SPOTLIGHT: 500 FESTIVAL MINI MARATHON
As one of the nation’s largest half marathons for over 20 years, the 500 Festival Mini Marathon brings thousands of people from across the country to Indianapolis with a passion for speed and sport. As partners of the IMS, we are excited to share the dairy story with the 35,000+ participants and their friends and family. At the end of the race, chocolate milk is handed out to every participant, along with information that shares the nutrition benefits as a recovery drink. It’s exciting to hear “this is why I run the race!” when runners, joggers and walkers pick up their chocolate milk! The winners of the race also pose with the “Winners Drink Milk” bottle to celebrate like their Indy 500 race counterparts.
ABOVE LEFT: HANDING OUT CHOCOLATE MILK TO MINI MARATHON PARTICIPANTS IS A HIGHLIGHT OF THE RACE! SHARING THE BENEFITS OF THIS RECOVERY DRINK ENCOURAGES PEOPLE TO USE DAIRY AS A PART OF A HEALTHY LIFESTYLE. ABOVE RIGHT: MINI MARATHON WINNERS POSE WITH THE “WINNERS DRINK MILK” BOTTLE AND ENJOY THEIR CHOCOLATE MILK TO RECOVER FROM THE RACE.
MILK PERSON JANET DAGUE (KEWANNA, IN) HANDS DRIVER ALEXANDER ROSSI THE WINNING GLASS OF MILK.
PARTNERSHIP UPDATE: INDIANAPOLIS MOTOR SPEEDWAY
When legendary race driver Louis Meyers pulled into Victory Lane at the Indianapolis Motor Speedway (IMS) on Memorial Day in 1933 and asked for a cold glass of buttermilk to celebrate his win, little did anyone realize a tradition had been born. The drink of milk became a permanent fixture at the race in 1956, and in 1975, ADAI launched the IMS award program: Fastest Rookie of the Year. ADAI partners with the IMS throughout the month of May to keep dairy front and center. We kick off the month by handing out 12,000 pints of ice-cold chocolate milk to Mini Marathon participants. Following tradition, dairy farmers wave to downtown crowds as they ride atop the float in the 500 Festival Parade. Twenty-four hours later, milk takes centerstage at the Indianapolis 500 when a dairy farmer hands the coveted milk bottle to the winning driver.
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POLICIES
Drug Residue Policy
MMPA Milk Quality Policy
MILK ON FARM – DRUG RESIDUE SUSPECTED
MILK ON FARM – QUALITY QUESTIONABLE
MILK SHIPPED – REJECTED LOAD SHIPMENT
If a member suspects milk in the farm bulk tank contains drug residue:
When a member suspects that the milk in
IF a load of milk is rejected (not unloaded) at a dairy processing plant
1 Call a MMPA member representative to have the milk in the tank tested.
should call a MMPA member representative
A “hold” must be placed on the tank contents until the test results are known.
dumped. If the member dumps the milk on
OR 2 The MMPA 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.
MILK SHIPPED — POSITIVE DRUGS CONFIRMED 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. 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
ALL POSITIVE DRUG RESIDUE SHIPMENTS MUST BE REPORTED TO THE ENFORCEMENT AGENCY. 26
MESSENGER | APRIL 2019
the farm bulk tank is of poor quality they who will authorize milk in the tank to be 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 the milk is dumped, the member will be paid 75% of the value of the tank of milk involved.* 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 a load of milk is received (unloaded) at a dairy processing plant AND IF a sample from the load has a bacteria count of 300,000 or more AND IF 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.
AND IF 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 IF 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. 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.
MILK HAULERS A hauler whose entire load sample exceeds 300,000 cfu 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 cfu per mL.
TEMPERATURE BULK TANK FARMS A hauler will be responsible for all costs incurred by MMPA for loads rejected for temperature.
DIRECT LOAD FARMS A hauler will be responsible for the freight and disposal charges for all loads of milk rejected for temperature. If farm conditions indicate an on-farm cause for the load to be warm, the member will be responsible for the loss of milk value. In the case where a member cannot be shown as the cause of the rejected load for temperature, the hauler will be responsible for the freight, disposal charges, and loss in milk value.
QUALITY PREMIUMS
MMPA Quality Premium Program
MMPA Member Testing Fees
SOMATIC CELL COUNT (SCC) PREMIUMS AND DEDUCTIONS
Payment for testing will be made through
Somatic Cell Count premiums and deductions
All costs are listed per individual sample.
(in addition to Federal Order SCC Adjustments computed in the producer pay price) will be paid at the following levels:
an automatic milk check deduction.
COW TESTS: $1 Cow samples may be tested for:
50,000 or below...................................... +55¢/cwt.
• Culture for Streptococcus agalactiae
51,000-75,000..........................................+50¢/cwt.
• Strep non ag
76,000-100,000......................................+45¢/cwt.
• Staphylococcus aureus
101,000-125,000..................................... +40¢/cwt. 126,000-150,000..................................... +35¢/cwt. 151,000-175,000.......................................+30¢/cwt. 176,000-200,000.................................... +25¢/cwt. 201,000-225,000....................................+20¢/cwt. 226,000-250,000.................................... +15¢/cwt. 251,000-300,000................................... +00¢/cwt. 301,000-400,000.................................. - 30¢/cwt.
• coagulase negative staph • gram negative and/or SCC
Additional testing can be coordinated through your MMPA member representative to include: • Raw bacteria count and components All herd tests must be scheduled with the laboratory
501,000-600,000................................. -$1.50/cwt.
All costs are listed per individual sample.
• 10,000 Raw Bacteria Count • 20,000 Pre-Incubated (PI) Count
__________________________
• Bovine Viral Diarrhea - PCR......................................................................$40
There will be a deduction of 10¢/cwt. for: • Greater than 100,000 Raw Bacteria Count
• Johne’s Milk Test
- PCR......................................................................$40
- ELISA – cows...................................................... $6
- ELISA – tank..................................................... $10
To qualify for Raw and PI Bacteria Count premiums there must not be any of the following during the month:
• Bovine Leukosis Test
• Positive drug residue
- ELISA – tank..................................................... $10
• Abnormal freeze points • High load count shipment or rejected load shipment
__________________________
• Bacteriology Cultures – includes identification of bacteria and drug susceptibility....................................$16
- ELISA..................................................................... $6
previous three months for raw bacteria count.
__________________________
Member name:
producer has received the quality premium the
Loc/Hlr/Producer #
• Mycoplasma Cultures...................................... $14
A high raw count deduction will be waived if the
Refer to fee schedule to the left for current pricing. The cost of testing is the responsibility of the producer.
Sample Date: ADDITIONAL TESTS AVAILABLE:
A payment of 5¢/cwt. will be added for each of the following, if the count is equal to or below:
To avoid potential service charges, this card MUST be filled out completely when sending samples to be tested by NorthStar Labs.
through your MMPA member representative.
401,000-500,000.................................-$1.00/cwt.
601,000 and greater...........................-$2.00/cwt.
NORTHSTAR MI LABORATORIES
- ELISA – cows...................................................... $6
• Milk Pregnancy ELISA................................ $4.50
__________________________ Sample ID: __________________________ __________________________ __________________________ __________________________
n BLV ELISA n Johne’s ELISA
• Raw Bacteria count over 100,000
LAB TEST RESULTS BY MAIL – $2/MONTH
The count levels for raw and PI will be determined
All tests must be scheduled through your
n Johne’s PCR
on one test run per month.
MMPA member representative or the
• #3 or #4 sediment
laboratory for proper sample submission
To qualify for MMPA SCC premiums there must be: • No abnormal freeze points during the month
n Pregnancy
protocol. Lab form provided below for your convenience.
If you would like lab test cards EU SCC REQUIREMENT All MMPA member milk must meet the
provided to you, please contact
requirements of European Union certification
the MMPA laboratory in Novi
for SCC which is an average of 400,000 or
at 800-572-5824.
less calculated by a rolling geometric mean.
APRIL 2019 | MESSENGER
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FREELINERS & CLASSIFIEDS TO SUBMIT ADS, EMAIL MESSENGER@MIMILK.COM, FAX 248-426-3412, OR VISIT MIMILK.COM/FREELINER-CLASSIFIED
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.
FREELINERS Service age Holstein bulls. Call Steve Alexander, 810-622-8548 evenings or 810-404-8548.
Classifieds Policy Cost for classifieds is $25 for the first 35 words and then $5 for each additional
3,000 gal. surge stainless milk tank. With dial 5 hp single phase compressors and free heater . Good working condition. $22,000. Call 810-241-8999.
word. Payment due with order. All ads
800 gal. Mueller Tank with 3 hp compressor. Good working condition. $2,500. Call 810-241-8999.
endorses products or services advertised
Weaver crowd gate. Excellent condition, only five years old. For 21 foot holding area, has lifting gate. Best offer. Call Dan 810-241-8999. Farmall 806 gas tractor, 2014 Kuhn Knight VT 132 mixer wagon. 1st, 2nd and 3rd cutting haylage in ag bags ryleage bales net and plastic wrapped complete Delaval milking system, 1,000 gallon bulk tank. Delaval swinging cow brush. Many other dairy related items. More info call 269-317-8425.
must be received by the 10th of the month preceding desired month of publication. MMPA neither sponsors nor in the Michigan Milk Messenger.
CLASSIFIEDS 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
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
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MESSENGER | APRIL 2019
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
s s s g g g n n n i i i s s s s s e e e l l l B B B y y y n n n a a a M M M CA CA CALLLFFFFA FA FARRRM M M FEEDING FEEDING FEEDING AND AND AND MANAGING MANAGING MANAGING CALVES CALVES CALVES FROM FROM FROM BIRTH BIRTH BIRTH TO TO TO 10 1010 WEEKS WEEKS WEEKS OF OF OF AGE AGE AGE
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• • • New New New facility facility facility • • • Located Located ininin MidMidLocated MidMichigan Michigan Michigan • • • Calf Calf Calf facilities facilities facilities are are are housed housed housed indoors indoors indoors • • • All calves calves have have AllAll calves have individual individual pens pens individual pens • • • Protocol Protocol available available Protocol available upon upon request request upon request Transportation • • • Transportation Transportation available available available
MERCHANDISE
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. STRAW & DRY HAY (large & small bales). Feed Oats, Feed Barley and Corn Silage. Delivery Available. 989-723-1886 or 989-277-1414. ALPHALFA HAYLAGE (excellent
New Foot Care Product Foot care is a concern for all our members. Lameness brought on by hairy warts and foot rot can affect the overall health of the cow and cause a decrease in milk production. The merchandise warehouse now offers hoof care products from Vantage Dairy Supply. When used together, Advantage Concentrate and Copper Plus help promote better foot health and can reduce the use of copper sulfate. Copper Plus is a combination of copper sulfate and zinc to help harden hoofs. Advantage Concentrate helps to make Copper Plus more effective and both are designed to be used together. According to Vantage Dairy Supply’s representative Wally Bingham; “Our desire is to never just leave product, but tailor a program specifically to help you. We will come to your dairy do a free cost analysis and foot evaluation. You can then make a good judgment”. Advantage Dairy Supply also has university backing. They have been working with Washington State University for the last 4 years and are working with them on two more research projects this year. They have tested their method of evaluating feet to be effective and accurate. The university studies found the following: • Cows with a wart of any size, swollen pastern, block or wrap; • Spend 72 less minutes per day at the feed bunk each day • Ear temperature drops 5 degrees • Days open increase 15 days • Services per conception increases from 2.5 to 2.9 For a free evaluation and cost analysis, please contact the warehouse. You may also call Wally Bingham at 1-208-731-0083, email wsbingham2@gmail.com, or visit www.vantagedairysupplies.com.
& fair grades) & CORN SILAGE.
STOCK #
989-723-1886 or 989-277-1414.
1016
ADVANTAGE CONCENTRATE 15 GAL.
1017
COPPER PLUS 50#
NEW KATOLIGHT PTO
DESCRIPTION
MEMBER PRICE $1,028.70 $ 70.13
GENERATOR, 60 KW, keep everyone warm and producing if there is a power outage. Call Brent at 248-770-5122. HOOF TRIMMING - 20 YEARS OF
Chemical, Sanitizer and Teat Dip Contact Information These are service personnel only. Order your Member Merchandise supplies through your hauler.
EXPERIENCE. Also doing fly control and cement grooving. Gibson Hoof Care (Tom) 989-239-6843.
ECOLAB
SEED CORN - 85 Day “Minnesota
24-Hour Medical Emergency Hotline: 1-800-328-0026
13” open pollinated, heirloom yellow field corn seed. Non-GMO, 80,000 viable seeds per bag. $95. High yield, high protein, fast dry down, great stalk strength. Free delivery available. Visit JanksSeeds.com 989-284-5052. FOR SALE: 35 ft. IH Field Cultivator, used, good condition, with Vibra-shank, $800. Call 989-593-2488.
Service Message Center: 1-800-392-3392 Service Representatives: » Pat Mitchell 517-403-0928 7273 N. Rollin Highway Addison, MI 49220 » Jason Wolfe 540-553-5755 1890 Canter Drive Riner, VA 24149
THREE WAYS TO ORDER YOUR MMPA MERCHANDISE 1 Place your 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
APRIL 2019 | MESSENGER
29
MARKET REPORT
Statistical Summary AMS Survey Prices (monthly average, per pound)
|
FOR MILK MARKETED IN FEBRUARY 2019 Due to a lapse in federal funding related to the government shutdown, the U.S. Department of Agriculture’s National Statistical Service was delayed in issuing some reports. To find the data for milk marketed in January 2019, please see the MMPA Member Connection.
Market Statistics - Mideast Federal Order #33 # This Month # Year Ago % Change
Cheese 1.3940 / LB
Total Class 1 Sales
527,299,596
498,901,853
+5.69
Total Class 2 Sales
181,871,270
320,108,735
-43.18
Total Class 3 Sales
539,086,947
512,703,355
+5.15
Total Class 4 Sales
228,831,211
273,540,132
-16.34
1,477,089,024
1,605,254,075
-7.98
35.7%
31.1%
Total Production Class 1 Utilization
Mideast Federal Order #33 Total Producers...............................................................................4,399 Avg. Daily Production per farm....................................................11,992
Butter
Avg. Protein Test...........................................................................3.21%
2.2644 / LB
Avg. Butterfat Test.........................................................................3.96% Avg. Oth Solids Test......................................................................5.77% Avg. SCC - MMPA......................................................................171,000
Component Pricing Information Mideast Federal Order #33 Protein Price /lb.......................................................................... $1.1776
Milk Powders Nonfat Dry Milk 0.9800 / LB
Other Solids Price /lb................................................................. $0.2631 Class III Price @ 3.5%.................................................................... $13.89 Prod. Price Diff /cwt. - Mich Mkt..................................................... $1.51
Dry Whey
Uniform Price @ 3.5%................................................................... $15.40
0.4545/ LB
SCC Adjustment /cwt /1000..................................................... $0.00070
National Trends* (production in millions of pounds)
*For 23 States 30
Butterfat Price /lb....................................................................... $2.5345
MESSENGER | APRIL 2019
California Wisconsin Idaho New York Texas Michigan Pennsylvania Minnesota New Mexico Washington Ohio Indiana Total U.S. U.S Y-T-D
2018
2017
% Change
3,235 2,362 1,162 1,160 1,053 869 805 772 634 509 419 320 16,037 33,563
3,233 2,327 1,138 1,128 978 860 856 760 660 509 436 327 15,936 33,244
+0.1 +1.5 +2.1 +2.8 +7.7 +1.0 -6.0 +1.6 -3.9 +0.0 -3.9 -2.1 +0.6 +1.0
MMPA STAFF MERCHANDISE
MMPA Field Staff
Novi Headquarters
Manager of Field Services Ben Chapin, Blanchard......................................989-289-0731
Main Office Local line...................................................... 248-474-6672 Toll free......................................................... 800-572-5824
Northwest Area
Chief Executive Officer Joe Diglio................................................................ ext. 202
Supervisor Sarah Michalek, Dewitt.....................................248-305-0537 Animal Care Coordinator Deb Gingrich, Leroy...........................................248-520-3580 Frank Brazeau, Oconto, WI................................906-250-0337 Lyndsay Earl, Ludington.....................................231-519-2455 Elyse Martin, Charlotte......................................810-701-6460 Dirk Okkema, Blanchard.................................. 248-756-2062 Brittni Tucker, Eagle...........................................248-880-3785
East Area Supervisor & Mastitis Management Specialist Christy Dinsmoore, Vassar.................................248-513-7920 Animal Care Coordinator Lindsay Green, East Lansing...............................989-488-8159 Ashley Herriman, Herron...................................269-245-6632 Laura Gucwa, Bad Axe......................................248-826-6294 Emily Peacock, Otisville......................................248-826-7243
Chief Financial Officer Josep Barenys......................................................... ext. 240 Hedging and Business Development Aaron Beak............................................................. ext. 256
Kris Wardin, President
Member and Government Relations Sheila Burkhardt..................................................... ext. 208
Eric Frahm, Treasurer
Management Information Systems Andrew Caldwell.....................................................ext. 304 Sales James Feeney.......................................................... ext. 258 Laboratory Supervisor Patti Huttula........................................................... ext. 219 Manufacturing Kaylan Kennel............................................... 248-880-5413 Human Resources Kelly Kerrigan......................................................... ext. 301
Supervisor Dave Brady, Grass Lake......................................517-937-9061
Member Services Dean Letter................................................... 989-289-9251
Joe Packard, Manchester...................................248-520-3481 Anna Tucker, Mt. Gilead, OH.............................248-533-2288 Brandon Ewers, Coldwater................................231-414-4539
Credit/Insurance Cheryl Schmandt.................................................... ext. 210
Energy Auditor Ed Zuchnik, Three Rivers....................................269-967-7351 Bulk Tank Calibration John Lehman, Elsie............................................248-444-6775
Officers
Quality Sudeep Jain............................................................ ext. 249
South Area
Other Member Services
Board of Directors
Communications Allison Stuby Miller................................................. ext. 296 Controller Shelly Sowers.......................................................... ext. 259 Supply Chain Therese Tierney....................................................... ext. 217
Doug Chapin, Vice President
Joe Diglio, CEO / Secretary Josep Barenys, Asst. Treasurer Todd Hoppe, General Counsel Directors-At-Large Kris Wardin, St. Johns 989-640-9420 Gertie van den Goor, Marlette 989-550-8453 Carlton Evans, Litchfield 517-398-0629 Mark Iciek, Gladwin 989-387-4767 Aaron Gasper, Lowell 616-283-6411 District Directors 1 Hank Choate Cement City 517-529-9032
Member Relations Jessica Welch.......................................................... ext. 303
2 Tim Hood Paw Paw 269-657-5771
Raw Milk Compliance Manager Steve Lehman, Ithaca........................................989-330-1638
Manufacturing Plants
3 David Pyle Zeeland 616-772-1512
MMPA Labs
Constantine, Michigan Dave Davis, Plant Manager............................ 269-435-2835
Novi (Monday-Friday, 8 a.m.-4:30 p.m.) In Michigan....................................................800-572-5824 Toll Free 800-233-2405
Ovid, Michigan Ron Steinhorst, Plant Manager...................... 989-834-2221
Sustainability Coordinator Kendra Kissane, Byron Center...........................248-880-4234
Ovid (Daily, 6 a.m.-10 p.m.)..................... 989-834-2515 Constantine (Daily, 7 a.m.-10 p.m.).........800-391-7560
Middlebury Cheese Company, Middlebury, Indiana Bela Sandor, 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 Merchandise Coordinator, Energy Auditor Katie Pierson.....................................................989-289-9686
If you are unable to reach your assigned member 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/ field-staff and searching by your producer number.
4 Corby Werth Alpena 989-464-5436 5 Doug Chapin Remus 231-349-4059 6 Tony Jandernoa Fowler 989-593-2224 7 Eric Frahm Frankenmuth 989-652-3552 8 Scott Lamb Jeddo 810-327-6135
APRIL 2019 | MESSENGER
31
P.O. Box 8002 Novi, MI 48376
83RD ANNUAL WHAT:
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, 2019) 4-H/FFA members or other students interested in dairy or milk marketing
WHEN:
June 26-27, 2019
WHERE:
MMPA Office, Novi, Michigan
WHY ATTEND? » 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
JUNE 26-27 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.