Michigan Milk Messenger: April 2014 by Michigan Milk Producers Association

Messenger Michigan Milk

The official publication of Michigan Milk Producers Association

Inside

www.mimilk.com Vol. 96 Issue 10 April 2014

98th Annual Delegate Meeting â&#x20AC;˘ Award Winners

contents Michigan Milk Messenger EDITOR’S LETTER

4 6

MMPA Matters The Future is Now

Quality Watch

Nutrient Management Revisited

8 News & Views 10 Legislative Watch

MMPA recognizes Senator Stabenow

FEATURES

11 MSU Students 12 Awarded Scholarships from

2014 MMPA District Officers

the Michigan Dairy Memorial and Scholarship Foundation

State 18 Michigan University: Food and Ag Leaders

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April 2014

Remain Confident about the Future

Managing Editor............................. Sheila Burkhardt Editors.............. Laura Moser, Alex Schnabelrauch Advertising Manager..................Nancy Muszynski Circulation.................................................................... 4,200 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 St. Telephone: 248-474-6672 P.O. Box 8002 FAX: 248-474-0924 Novi, MI 48376-8002 www.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)

20 20 MMPA Recognizes 22 35-year Members Managerâ&#x20AC;&#x2122;s 23 General Report to the Delegates MMPA 98th Annual Meeting

Departments

Cover Story

36 Merchandise 37 Quality Premiums 38 Freeliners 40 Classifieds 41 Policies 42 Market Report 43 Staff

The 98th Annual MMPA Delegate Meeting was held on March 20 in Lansing. Highlights of the meeting are included in this issue.

26 Current Resolutions Standing 32 Resolutions Michigan Milk Producers Association Michigan Milk Producers Association, established in 1916, is a member owned and operated dairy cooperative serving approximately 2,000 dairy farmers in Michigan, Indiana, Wisconsin and Ohio.

District Directors 1. Hank Choate, Cement City 2. Tim Hood, Paw Paw 3. Bob Kran, Free Soil 4. John Kronemeyer, Pickford 5. Brent Wilson, Carson City 6. Tony Jandernoa, Fowler 7. Eric Frahm, Frankenmuth 8. Leonard Brown, Sandusky

517-529-9032 269-657-5771 231-464-5889 906-647-7638 989-584-3481 989-593-2224 989-652-3552 810-648-4505

April 2014

Officers: President: Ken Nobis Vice President: Bob Kran Treasurer: Mark Halbert General Manager/Secretary: Clay Galarneau Assistant Treasurer: Joe Diglio General Counsel: Todd Hoppe

Directors-At-Large Ken Nobis, St. Johns 989-224-6170 or 248-474-6672, ext. 201 Rodney Daniels, Whittemore 989-756-4935 Dan Javor, Hastings 269-948-8345 Mark Halbert, Battle Creek 269-964-0511 James Reid, Jeddo 810-327-6830

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Board of Directors

MMPA Matters Ken Nobis

President

The Future is Now The thermometer has had a problem rising this year, but the same can’t be said for milk prices. The record prices we have seen during the past months have taken some of the sting out of the bitter winds of the past winter. Maybe those bitter winds are part of the reason prices are so favorable. Milk production in our market area is running below our expectations this winter, and I think the same can be said for all of the upper Midwest. Less milk can contribute to higher prices.

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April 2014

Global weather, not just weather in our area, has had an effect on prices. Both the European Union and New Zealand harvested short crops in 2013. Drought in the western portion of our nation affected U.S. supplies of feed and had an impact on both dairy and beef.

Cull cow prices are amazing. I hear remarks like, “I sold an 1,800-pound cull cow for a dollar a pound, bought a springing heifer and had cash left over.” That’s just too weird for comprehension when the “normal” scene would be to sell two cull cows, buy one springer and have to put extra money in to complete the deal. I hear stories of feedlot operators outbidding dairy producers for heifers to be fed out for beef.

These are the types of challenges that have faced us on the supply side. On the reverse side, we have experienced an increased demand for exports. 2013 saw the U.S. dairy industry exporting 15.5 percent of the total dairy solids produced, establishing a record for both dollar value and volume. The top two destinations for U.S. dairy products were Mexico and Southeast Asia. Both are areas of the world where increasing numbers of people have rising incomes, allowing them to enter the middle class. Consumers then gain more discretion in their food choices. Increasingly, they choose diets higher in protein, and that spectrum of protein choices includes dairy. Barring a worldwide economic disaster, U.S. dairy producers can expect the overseas markets to continue to grow, with values that make them viable for us to service. I think the days of our industry looking to overseas markets only when we need to unload surplus product are gone. We now seek to establish long-term, steady relationships with those nations that import dairy. This new approach to the export market comes about as a result of various factors. Historically, the U.S. processing industry has been reluctant to enter the export market, not only because of lack of value, but also because dairy policy in this country allowed our federal government to buy excess production to subsidize milk prices. Those government purchases had to be manufactured to a standard that

allowed for long-term storage but did not meet international standards. That government policy is now officially dead. There is no longer any reason not to be equipped to manufacture dairy in forms that are packaged ready for the international as well as the domestic consumer. One quick example would be the ability to manufacture butter that includes 80 percent milk fat, which is appropriate only for the U.S. market, along with 82 percent butter that satisfies the international market as well. Member investment in MMPA has allowed us to expand and update our facilities for our entry into the export market. During 2013, nearly 24 percent of MMPA’s butter and 7.5 percent of our nonfat dry milk was exported. I hope that by the time you are reading this, the snow outside your window has melted into water. I recently read the Coast Guard at Sault Ste. Marie, Michigan has scheduled icebreaking activity into the first week in June. A TV weatherman here in mid-Michigan said that some lakes won’t be warm enough to swim in until August. We believe that the future of the dairy industry can be more accurately predicted than the weather, and it lies in exports. That future is now, and we are ready for it!

QUALITY Watch Dean Letter

Director, Member Services

Nutrient Management Revisited Hopefully April is bringing significantly warmer weather and we can confidently shrug off one of the coldest and snowiest winters in more than 30 years. This winter presented such extremely cold temperatures for such an extended period of time, many members were unable to effectively remove all the frozen manure from their cattle housing. When they could chip the manure loose, getting it to the manure pit may have presented additional challenges. As a result, if the snow was not so deep as to prevent equipment from getting into the fields, more manure was winter spread this year than any winter in recent history. Consider for a moment how it would affect your operation if the option to winter spread was no longer available to you. Without the daily haul option, would you

need to construct manure storage? At what cost? Would it cash flow? How does this investment fit into your business plan? There is more and more chatter about agriculture’s role in the algal bloom in western Lake Erie. It has been said that in 2012, the bloom could be seen from space. It appears much of the phosphorus load in Lake Erie is coming from the Maumee River basin through Toledo, Ohio. In October 2011, NRCS released the USDA Conservation Effects Assessment Project (CEAP) Study titled, “Assessment of the Effects of Conservation Practices on Cultivated Cropland in the Great Lakes Region.” In this report, it is claimed the Lake Erie basin receives about 44 percent of the phosphorus going into the Great Lakes, more than any other Great Lake. The NRCS CEAP report indicates 61 percent of the phosphorus load is coming from cultivated farmland and of this, 14 percent results from manure application.

How is manure being applied on your farm? Have your fields been evaluated for winter manure application, and are you able to limit your manure application to these fields? Are proper setbacks from ditches, streams and other waterways being consistently observed? Will nutrients remain where you put them in a rapid snowmelt or heavy spring rain? Or will there be a “brown river” leaving the field? If winter manure application is important to Michigan dairy farmers, then it is up to all of us to do our part to ensure nutrients stay where they are intended. Dark brown is a contrasting color to the white snow; it is not difficult to determine whether setbacks are being observed or if manure is being applied to slopes that are a little too steep. Whether you apply manure properly or you don’t, people are noticing. If you would like to know more about winter manure application or MARI, contact your local MAEAP technician or reference this article by Jerry May and Shelby Bollwahn: http://bit.ly/NAoptC.

April 2014 Messenger

As a result, some groups are requesting winter manure application be discontinued as an acceptable practice in the Manure GAAMPS and MAEAP. Others claim there have been no documented cases of nutrient loss from fields where manure was properly applied and when the fields were deemed appropriate for winter spread considering the Manure Application Risk Index (MARI).

Satellite image of 2011 bloom (the most severe in decades). (Credit: MERIS/NASA; processed by NOAA/NOS/NCCOS )

NEWS & Views

February’s Class III Tops Price Record

The USDA announced February’s Class III milk price is at a record $23.35 per hundredweight, up $2.20 from January and $6.10 more than in 2013. The Class IV price was $23.46 per hundredweight, $1.17 higher than last month’s price and $5.71 more than last year’s price.

Producers scoring 95 percent or more on Grade A Surveys and Federal Check Rating MMPA Ovid West February 2014 Peckins Farms, LLC Thomas Goodman Barry / Angela Stout Ritter Farms Linda Grettenberger Casey Moore Samuel Ramer Titus Zimmerman

MMPA Allendale East February 2014 Betty Walker John / Nancy Garity M C Farms Leonard/Kevin/Andrew/Maxine Pixley* Mervin Dailey Robert Durham Glen Miller B & K Farms LLC * Marten Family Dairy LLC *100 percent

Upcoming Events

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April 2014

April

YC Conference - Grand Rapids

24 Dairy Communicator Meeting - Lansing

MMPA Board Members Reelected

Delegates attending the 98th annual meeting of Michigan Milk Producers Association on March 20, 2014 re-elected Rodney Daniels, of Whittemore, to an at-large, three-year term on the board of directors. During the board’s reorganizational meeting, held after the delegate meeting, the following officers were elected: President: Ken Nobis, St. Johns; Vice President: Bob Kran, FreeSoil; Treasurer: Mark Halbert, Battle Creek. Board members re-elected during the district meetings are: Tim Hood, Paw Paw, MMPA District 2; James Reid, Jeddo, MMPA District 7 and Bob Kran, FreeSoil, MMPA District 11 (now known as District 3). Elected to his first term on the MMPA board is Tony Jandernoa, St. Johns, representing MMPA District 6. Note: with the approval of the district realignment proposal at the annual meeting, Jim Reid’s position becomes an at-large position on the board.

MMPA Returns $2 Million of Cash Patronage Refunds to Members

Michigan Milk Producers Association recently paid $2 million in cash patronage refunds to its dairy farmer members. This cash allocation represents 25 percent of the $6.5 million net earnings generated by the cooperative in fiscal year 2013. The cash patronage returned includes 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 2013 received a portion of the $2 million. During fiscal year 2013, MMPA members earned $26 million in total premiums. These premiums are a combination of quality, volume, over-order premiums and a “13th” milk check and serve as a reflection of MMPA’s financial strength. MMPA members received other cash payments in April 2013 of $4 million through retirement of the cooperative’s 2004 equities. In September 2013, MMPA members received $1 million in cash payments in the form of a “13th” milk check. With the current payment of $2 million, cash payments in the last 10 months total over $7 million. “The return of cash patronage refunds, premiums and allocated equities continues to occur as a result of MMPA’s successful operating results,” says Clay Galarneau, MMPA general manager. “Our high-quality milk supply and continuing milk production growth is an attractive combination that has helped strengthen our financial position.” 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.

NEWS & Views

MMPA 2014 Hauler Meetings MMPA haulers are invited to attend the annual hauler meeting closest to their hauling operation. This year’s meetings will take place in April and May, and all contract haulers can expect a formal invitation in the mail. MMPA managers and directors will also be in attendance to provide coop and industry updates. Service awards will be presented at each meeting recognizing those contract haulers who have worked with the co-op for 10-50 years. All meetings begin with a social hour at 6:15 p.m. and dinner will be served at 7 p.m. The only exception is Monday, May 19 at the Chip-In Island resort and Casino, where the social will begin at 6:45 p.m. EST and dinner will follow at 7:30 p.m. EST. Remember to personally thank your hauler for all their hard work over the past year! Tues. April 15 Riverwood Recreation Center, Mt. Pleasant Thurs. April 17 English Hills Golf and Banquet, Grand Rapids Tues. April 22

Gene Davis & Sons Banquet Center, Jackson

Thurs. April 24

Tony M’s Restaurant and Lounge, Lansing

Tues. April 29

Woodland Hills Golf Club, Sandusky

Mon. May 19

Chip-In Island Resort & Casino, Harris

Tues. May 20

B J’s Restaurant, Gaylord

517-398-0629 517-547-3231 517-639-4182 517-524-6015

Donald Bever, Delton Michael Oesch, Middlebury, IN Danny Ransler, Gobles Richard Thomas, Middlebury, IN

269-671-5050 574-825-2454

District Two

At-Large

Bruce Benthem, McBain 231-825-8182 Tom Jeppesen, Stanton 989-762-5399 Bill Jernstadt, Big Rapids 231-796-4650 Mike Rasmussen, Edmore 989-762-5380

Bill Blumerich, Berlin 810-395-2926 Pat Bolday, Emmett 810-395-7139 Mark Crandall, 269-660-2229 Battle Creek James Droscha, Charlotte 517-543-5577 Scott Lamb, Jeddo 810-327-6135 David Lott, Mason 517-676-4593 Chuck White, Fowlerville 517-521-3564 Tom Wing, Bellevue 269-660-0498

District Six

269-628-4218 574-825-5198

District Three Jim Good, Caledonia Frank Konkel, Hesperia David Pyle, Zeeland Bill Stakenas, Freesoil

District Five

616-891-1414 231-854-8041 616-772-1512 231-757-9340

District Four Marvin Rubingh, Ellsworth 231-588-6084 Dave Folkersma, Rudyard 906-478-3023 Corby Werth, Alpena 989-379-3772 Jeremy Werth, Alpena 989-464-4022

Aaron Gasper, Lowell Jamie Meyer, Ionia David Reed, Owosso Kris Wardin, St Johns

616-897-2747 989-587-6732 989-723-8635 989-640-9420

District Seven John Bennett, Prescott Ken Daniels, Sterling Rod Fowler, Chesaning Scott Kleinhardt, Clare

989-345-4264 989-654-2546 989-845-6131 989-386-8037

District Eight Mike Bender, Croswell Tim Kubacki, Sebewaing Dale Phillips, Marlette Steve Schulte, Harbor Beach

810-679-4782 989-883-3249 989-635-7917 989-479-9339

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Carlton Evans, Litchfield Perry Cisco, Hudson Glenn Preston, Quincy Art Riske, Hanover

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District One

MMPA Advisory Committee

Legislative Watch

MMPA Recognizes 2014 Farm Bill Champion Senator Stabenow The Michigan Milk Producers Association (MMPA) recognized Sen. Debbie Stabenow for her unwavering support and persistence in passing the 2014 Farm Bill at the 98th MMPA State Annual Delegate Meeting

“We have worked with Senator Debbie Stabenow for many years on agricultural issues from her days in the Michigan House up to her present role as member of the U.S. Senate. She has proven to be a consistent supporter of Michigan agriculture, and in our case dairy policy,” MMPA President Ken Nobis said. “I am convinced we would not have the farm bill we do today if

it were not for the hard work and commitment of one senator – Senator Debbie Stabenow." Sen. Stabenow helped bring attention to Michigan’s diverse agricultural economy long before her tenure as chair of the Senate Agriculture Committee. She’s advocated for agriculture throughout her career in public service, dating back to her time in the Michigan State Legislature in the 1980s. This lasting commitment has built enduring relationships with state and national agriculture leaders as she continues to strive for policy that’s best for farmers. Stabenow’s leadership on the Agriculture Committee has

led to a historic new focus on agricultural research, Michigan's specialty crops, the development of renewable fuels and critical land, habitat and water conservation efforts. Her continuous support for the state’s dairy industry has not gone unnoticed as the crowd greeted Stabenow’s remarks with a standing ovation.

State Agriculture Department Launches a New Consumer Focused Publication

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April 2014

he Michigan Department of Agriculture and Rural Development (MDARD) presented a 70-page full color publication, the Michigan Agriculture magazine, as a way to connect readers with the state’s food and agriculture community during Ag Day at the Capitol on March 19.

“Michigan’s food and agriculture industry not only impacts the life of Michiganders every day, it also has a direct impact on the global marketplace. Around the world, Michigan is known to be a key source of high-quality food and agricultural products,” Jamie Clover Adams, MDARD director, said. “Michigan is fortunate to have such dedicated and innovative farmers

raising and growing the food we all eat every day.” This privately funded publication is designed to showcase Michigan’s diverse agricultural industry that annually contributes $96 billion to our state’s economy. Michigan Agriculture includes stories about family-owned dairy farms and the growing number of culinary tourism opportunities. You can learn more about Michigan-grown floriculture products or tasty specialty crops. Also featured is Michigan’s dynamic role in agricultural exports, technology and research. The Michigan Agriculture magazine will be distributed, free of charge, to public places around the state such as dentist offices, veterinarian

clinics, libraries and more. The goal is to educate rural and urban communities alike about the impact of agriculture. Look for the magazine near you or read the digital version of Michigan Agriculture by going to www. MIagriculture.com. Share the link and help tell the story of Michigan’s food and agriculture to the state, country and the world.

2014 MMPA District Officers The following officers were elected during MMPA district meetings held in February and March. DISTRICT 1: Chairman: Scott Ferry, Litchfield

State Credentials Committee: Jeremy Werth, Alpena

Vice Chairman: Jeff Horning, Manchester

State Resolutions Committee: Jeremy Werth, Alpena; Marvin Rubingh, Ellsworth; Ron Lucas, Posen

State Resolutions Committee: Carlton Evans, Litchfield; Bruce Lewis, Jonesville; Glenn Preston, Quincy

DISTRICT 5: Chairman: Doug Chapin, Remus Vice Chairman: Mike Rasmussen, Edmore Secretary: Gordon Dick, McBain

DISTRICT 2: Chairman: Jerry Koebel, Jr., Three Oaks Vice Chairman: Josh Gamble, New Carlisle, IN Secretary: Richard Ultz, Burr Oak State Credentials Committee: Richard Ultz, Burr Oak State Resolutions Committee: Donald Bever, Delton; Michael Oesch, Middlebury, IN; Richard Thomas, Middlebury, IN DISTRICT 3 (formerly District 11): Chairman: Glen Sparks, Fremont Vice Chairman: Bill Stakenas, Freesoil Secretary: Sharron Powers, Pentwater State Credentials Committee: Sharron Powers, Pentwater State Resolutions Committee: Jim Good, Caledonia; Tim Butler, Sand Lake; Bill Stakenas, Freesoil DISTRICT 4 (formerly District 12): Chairman: Corby Werth, Alpena Vice Chairman: Jeremy Werth, Alpena Secretary: Marvin Rubingh, Ellsworth

State Credentials Committee: Richard Hyde, Morley State Resolutions Committee: Bruce Benthem, McBain; Robert Cnossen, Falmouth; Tom Jeppesen, Stanton DISTRICT 6: Chairman: Kent Thelen, Fowler Vice Chairman: John Hufnagel, Westphalia Secretary: Steve Thelen, Fowler State Credentials Committee: Jim Slavik, Ashley

Secretary: Debbie Kubacki, Sebewaing State Credentials Committee: Dale Phillips, Marlette State Resolutions Committee: Mike Bender, Croswell; Tim Kubacki, Sebewaing; Dale Phillips, Marlette AT-LARGE (from former District 4 and 7): State Resolutions Committee: Brad Crandall, Battle Creek; Josh Lott, Mason; Heather Wing, Bellevue; Scott Lamb, Jeddo; William Blumerich, Berlin; Chuck White, Fowlerville *Note: District numbers have been revised based on delegate approval of the District Realignment Proposal at the March 2014 State Annual Meeting.

State Resolutions Committee: Aaron Gasper, Lowell; David Reed, Owosso; Ken Wieber, Fowler DISTRICT 7 (formerly District 10): Chairman: John Bennett, Prescott Vice Chairman: Ken Daniels, Sterling Secretary: Rod Fowler, Chesaning State Credentials Committee: Ken Daniels, Sterling State Resolutions Committee: John Bennett, Prescott; Ken Daniels, Sterling; Rod Fowler, Chesaning

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State Credentials Committee: Glenn Preston, Quincy

Vice Chairman: Michael Noll, Croswell

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Secretary: Tom Pierce, Reading

DISTRICT 8: Chairman: Darwin Sneller, Sebewaing

MSU Students Awarded Scholarships from the Michigan Dairy Memorial and Scholarship Foundation

he Michigan Dairy Memorial and Scholarship Foundation Inc. at Michigan State University (MSU) has awarded more than $92,000 in scholarships to 31 MSU students pursuing dairy industry-related programs of study for the 2013-2014 academic year.

The following 10 MSU students earned $3,500 Michigan Dairy Memorial Scholarships: Chelsey Clemens, animal science senior, of West Branch; Timothy (T. J.) Frahm, animal science sophomore, of Frankenmuth; Joshua Garver, animal science senior, of White Pigeon; Lauren Lauwers, animal science senior, of Yale; Jennie Lubbers, animal science junior, of Lake Odessa; Bridget Moore, animal science sophomore, of Sears; Bethany Oglesby, animal science junior, of Lakewood, Ill.; Laura Small, animal science junior, of Smiths Creek; Brittni Tucker, animal science sophomore, of Elsie; and Cora Watts, animal science junior, of Tawas City. Five sophomores majoring in dairy management in the Institute of Agricultural Technology each earned a $2,000 scholarship from the Michigan Dairy Memorial and Scholarship Foundation: (Clayton) C. J. Berens, of Holland; Macy Cole, of Bancroft; Allison Pung, of Portland; Kara Smith, of Hudsonville; and Rebecca Swartzendruber, of Bay Port Five first-year students were awarded the Michigan Dairy Memorial and Scholarship Foundation Freshman Scholarship worth $1,500: Gabriel Klaasen, IAT dairy management certificate program, of Hamilton; Eric Martin, animal science major, of LeRoy; Hayley Obradovich, IAT dairy management certificate program, of Fruitport; Kelly Raterink, animal science major, of Zeeland; and Sawyer Johnson, IAT dairy management certificate program, of Lakeview The Michigan Dairy Memorial and Scholarship Foundation oversees the largest scholarship program in the MSU College of Agriculture and Natural Resources and one of the largest at the university. For information on making contributions to honor members of the dairy industry or to support student scholarships, please contact the MSU College of Agriculture and Natural Resources External Relations at 517-3550284. To learn more about the Michigan Dairy Memorial and Scholarship Foundation, contact Dr. Miriam Weber Nielsen in the MSU Department of Animal Science at 517-432-5443 or msw@msu.edu.

Glenn and Anne Lake Scholarship: Katelyn Horning

Katelyn Horning of Manchester, Mich., was chosen as the 2013-2014 recipient of the Glenn and Anne Lake Scholarship. The scholarship is named after Michigan dairy farmers Glenn and Anne Lake and provides $7,500 in scholarship money divided over two semesters. Glenn Lake served as president of the Michigan Milk Producers Association (MMPA).

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Horning, the daughter of Jeff and Lynda Horning, will graduate in May with a double major in animal science and agribusiness management.

While at MSU, Horning participated in two study abroad experiences. She traveled to Vietnam for a one-week study abroad experience over her 2013 spring break and to the Netherlands, Belgium and France in summer 2012 as part of the two-week MSU Dairy Husbandry and Environmental Stewardship study abroad program. She completed an internship with Zoetis in summer 2013 and an internship with MMPA during summer 2012. Horning has been actively involved with the MSU Dairy Club. She competed on the Michigan 4-H and MSU dairy judging teams. Outside of college, Horning served as the senior Michigan Dairy Ambassador in 2013. Upon graduation, Horning is planning to return to the family’s dairy farm near Manchester.

John and Barbara Dilland Scholarship: Caitlin Pell

Caitlin Pell of Fremont, Mich., was chosen as the 2013-2014 recipient of the John and Barbara Dilland endowed scholarship. The $3,500 scholarship is named in honor of John Dilland, former controller, director of finance and general manager for MMPA, and his wife Barbara. The award is presented to an MSU sophomore, junior or senior student majoring in the field of agribusiness management.

Pell, the daughter of Tom and Merri Pell, is currently a junior pursuing a degree in agribusiness management and on schedule to graduate in December 2014. While at MSU, Pell was an active member of Dairy Club. She served as State FFA Vice-president, received her American FFA Degree and was on the state winning FFA dairy judging team and high individual. During summer 2013, she interned for the North Central Co-op. Pell is currently working as a student secretary for MSU AgBioResearch. The John and Barbara Dilland endowed scholarship was established in 2010 by MMPA upon John’s retirement after his 35 years of service to the organization.

Redmond and Edna Cotter Scholarship: Jared Lyzenga

Jared Lyzenga, of Byron Center, was chosen as the 2013-2014 recipient of the Redmond (“Red”) and Edna Cotter endowed scholarship. The $4,000 scholarship is named in honor of Red Cotter, an inspirational dairy industry leader and respected motivator of sales and marketing executives, and his wife, Edna. Lyzenga is the third recipient of the Cotter endowed scholarship.

Lyzenga, the son of Dave and Michelle Lyzenga, received the award based on his academic achievements, involvement in extracurricular activities and interest in pursuing a career as a large animal (food production animal) veterinarian. He graduated from MSU with a Bachelor of Science degree in production medicine in May 2013 and plans to earn his doctorate of veterinary medicine specializing in production animal medicine in May 2017. As an MSU student, Lyzenga has been an active member of the MSU College of Veterinary Medicine (CVM) Food Animal Medicine Club, the CVM Food Animal Club and the Theriogenology Club. He was the advanced division winner in the 2012 MSU Dairy Challenge and competed in the North American Intercollegiate Dairy Challenge in 2013. As a student, Lyzenga was employed by the MSU Dairy Cattle Teaching and Research Center and participated in the study abroad program, “Dairy Husbandry and Environmental Stewardship in the Netherlands and Belgium” in 2012. The Redmond (“Red”) and Edna Cotter endowed scholarship honors the Cotter couple and their many contributions to the dairy industry.

Russel Erickson Scholarship: Britney Zondlak

Britney Zondlak of Byron Center, Mich., was chosen as the 2013-2014 recipient of the Russel Erickson Scholarship. The $5,000 scholarship is named after Russel Erickson, MSU professor emeritus in the Department of Animal Science, and is awarded to a student whose career aspirations include working on or with dairy farms.

In 2011, Zondlak earned a Bachelor of Arts degree in communications with minors in advertising/public relations and Spanish. In 2012, she earned a certificate in dairy management from the MSU Institute of Agricultural Technology. Zondlak completed a one-month intensive Spanish language study abroad program at the Universidad de Belgrano

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While at MSU, Zondlak has been an active member of the MSU Dairy Club and dairy cattle judging program. She also participated in the MSU Dairy Challenge as an Ag Tech student. She is a former senior Michigan Dairy Ambassador.

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An MSU agribusiness senior, Zondlak is the daughter of Matt and Deb Zondlak.

in Buenos Aires, Argentina in 2011 and a two-month dairy internship in the Netherlands, Belgium and France in summer 2012.Â She has been employed full-time at Star-Summit Farm in Byron Center since 2005. After graduating with a degree in agribusiness management, Zondlak plans to return full-time to the farm and enter into a business partnership with her employer.

Jack and Betty Barnes Scholarship: Lora Anderson and Katelyn Horning

Two MSU students have been awarded the Jack and Betty Barnes Scholarship for the 20132014 academic year. Lora Anderson, animal science senior from Mason, and Katelyn Horning, animal science and agribusiness management senior from Manchester, each received the $1,000 scholarship earmarked toward completing an international study experience. The scholarship is named after the late Jack and Betty Barnes. Jack Barnes was employed with MMPA for 39 years and served 26 of those years as general manager.

Anderson is the daughter of Bill and Paula Anderson. She studied at EARTH University, situated in the heart of the humid tropics of Costa Rica, during spring semester 2013. Upon returning to MSU last fall, Anderson continued her duties as interim laboratory manager and lead research technician for an insect microbiology lab on campus. Anderson also began working at the MSU Animal Air Quality Research Facility. She will graduate with her bachelorâ&#x20AC;&#x2122;s degree in animal science in May, after which she hopes to secure work as an exotic animal nutrition fellow or return to Costa Rica to continue working on the volunteer sea turtle conservation project. Anderson will begin studies at the MSU College of Veterinary Medicine in August 2014. Horning is the daughter of Jeff and Lynda Horning. She traveled to Vietnam for a one-week study abroad experience focused on emerging issues in international agriculture. Horning previously traveled to the Netherlands, Belgium and France in summer 2012 as part of the two-week MSU Dairy Husbandry and Environmental Stewardship study abroad program. She is planning to return to the family dairy farm, Horning Farms, after graduating from MSU in May.

Archie Studer Scholarship: Garrett Slavik

Garrett Slavik of Ashley, Mich., was chosen as the 2013-2014 recipient of the Archie Studer Scholarship. The $3,500 scholarship is named after the late Archie Studer, who owned and operated Kenowa Acres Dairy Farm for more than 35 years. Slavik is the third recipient of the Studer Scholarship. Slavik, the son of Jim and Doreen Slavik, is a junior pursuing a degree in animal science. Thanks to an internship with Cargill Animal Nutrition over the summer of 2013, Slavik discovered a newfound interest in dairy animal nutrition and now aspires to pursue a career as a dairy nutritionist.

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At MSU, Slavik is an active member of the MSU Dairy Club. He was a member of the 2013 MSU collegiate dairy judging team that competed in four competitions. In addition, Slavik is involved with the MSU Navigators (Bible Study), serves on the Michigan Junior Holstein Association board of directors, participated in the 2013 Dairy Challenge Academy and competed in the 2013 MSU Dairy Challenge.

Velmar Green Scholarship: Jorin Ouwinga

Jorin Ouwinga of McBain, Mich., was chosen as the 2013-2014 recipient of the Velmar Green Scholarship. The $3,500 scholarship is named in honor of innovative dairy leader Velmar Green of Elsie, Mich. The award is presented to a second-year student in the MSU Institute of Agricultural Technology dairy management certificate program. Ouwinga is the third recipient of the scholarship. Ouwinga is the son of Robert and Darline Ouwinga. Ouwinga, who intends one day to own and operate a dairy farm in northern Michigan, has been an employee of Dan DeZeeuw Dairy in McBain since 2010 where he is responsible for a variety of animal and crop-related activities. He also completed an internship as a student herdsman and manager at the California Polytechnic University dairy herd during the summer of 2013.

While at MSU, Ouwinga has been an active member of the MSU Dairy Club and the Alpha Gamma Rho fraternity and competed in the North American Intercollegiate Dairy Challenge Academy in April 2013. The Velmar Green Scholarship was established in 2009 by MMPA to recognize Green for his 40 years of service to the MMPA board of directors.

Donald and Valera Murray Scholarship: Sarah Michalek

Sarah Michalek of Deckerville, Mich., was chosen as the 2013-2014 recipient of the Donald and Valera Murray endowed scholarship. The $4,000 scholarship is named in honor of Donald Murray, a former MSU Extension dairy specialist, and his wife, Valera. Michalek, the daughter of Thomas and Lucinda Michalek, is currently a senior pursuing a major in agribusiness management and is on schedule to graduate in May.

At MSU, Michalek has been an active member of and held officer positions with the MSU Dairy Club and the College of Agriculture and Natural Resources Student Senate, and she is currently the president of the MSU chapter of the National Agri-Marketing Association. She was selected as an Outstanding Junior in the College of Agriculture and Natural Resources, is a former junior Michigan Dairy Ambassador and was the 4-H livestock judging superintendent at the 2012 Sanilac County 4-H Fair. Michalek judged on the collegiate dairy cattle judging team and was a member of the Michigan 4-H dairy judging team. She completed an internship at the Michigan Farm Bureau in summer 2012 and interned in international sales last summer with Dairy Farmers of America.Â The Donald and Valera Murray endowed scholarship was created in 2007 to recognize Dr. Murrayâ&#x20AC;&#x2122;s leadership role in establishing the Michigan Dairy Memorial and Scholarship Foundation.

Harold and Lillian Gremel Scholarship: Stephanie Roggenbuck

As an MSU student, Roggenbuck has been an active member of the MSU College of Veterinary Medicine (CVM) Club,

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Roggenbuck, the daughter of Henry and Marlene Kozdron, received the award based on her academic achievements, involvement in extracurricular activities and interest in pursuing a career as a large animal (production animal) veterinarian. She graduated from Ferris State University with a Bachelor of Science degree in biology in 2008, from MSU with a Bachelor of Science degree in production medicine in 2010 and is on schedule to earn her doctorate of veterinary medicine, specializing in production animal medicine, in May 2014.

April 2014

Stephanie Roggenbuck of Harbor Beach, Mich., has been chosen as the 2013-2014 recipient of the Harold and Lillian Gremel endowed scholarship. The $3,500 scholarship is named in honor of Harold and in memory of Lillian Gremel of Sebewaing. The scholarship is awarded annually to a student currently in veterinary school at MSU who completed the Production Animal Scholars Program in the Department of Animal Science.

the CVM Food Animal Club and the CVM Student Chapter of the American Veterinary Medical Association (SCAVMA). She is also a member of the American Association of Bovine Practitioners and the Michigan Veterinary Medical Association. Roggenbuck completed a Food System Fellowship summer internship program with MMPA in 2011 and with Neogen Corporation in 2012. The Harold and Lillian Gremel endowed scholarship was established in 2007 by the Gremel family. Together during their 52 years of marriage, the Huron County dairy producers and lifetime industry supporters were past recipients of the West Huron MMPA Outstanding Lifetime Achievement Award, honored as the MMPA Outstanding Young Dairy Couple and chosen as the MSU Dairy Farmer of the Year.

Nick Bellows Scholarship: Megan Bush

Megan Bush of Swartz Creek, Mich., was chosen as the 2013-2014 recipient of the Nick Bellows Scholarship. The $3,500 scholarship is named in honor of Nick Bellows, the former chief executive officer of the United Dairy Industry of Michigan (UDIM). The award is presented to an MSU student with a career interest in dairy promotions. Bush is the second recipient of the scholarship. Bush is the daughter of George Bush and Elizabeth Fontenot. Bush is a junior majoring in agribusiness management and she hopes to pursue a career in dairy sales after graduation.

At MSU, Bush has been an active member of the MSU Dairy Club. She was a member of the Michigan 4-H dairy judging team that placed first overall and first in oral reasons at the 2012 National 4-H Dairy Judging Contest and earned an invitation to travel to Europe to participate in an International Livestock Judging Tour in 2013. Bush is one of two senior Michigan Dairy Ambassadors for 2014 and secretary of the Michigan Junior Holstein Association. She will be completing an internship this upcoming summer with Zoetis. The Nick Bellows Scholarship was established in 2011 by the UDIM board of directors and staff members to recognize Bellows for his two and a half decades of commitment and dedication as the organizationâ&#x20AC;&#x2122;s CEO.

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2014 MMPA Advisory Committee Elections DISTRICT 1 Position 1: Perry Cisco, Hudson Position 2: Carlton Evans, Litchfield

DISTRICT 6 Position 1: David Reed, Owosso Position 2: Jamie Meyer, Ionia

DISTRICT 2 Position 1: Michael Oesch, Middlebury, IN Position 2: Danny Ransler, Gobles

DISTRICT 7 (formerly District 10) Position 1: John Bennett, Prescott Position 2: Scott Kleinhardt, Clare

DISTRICT 3 (formerly District 11) Position 1: Jim Good, Caledonia Position 2: Dave Pyle, Zeeland

DISTRICT 8 Position 1: Tim Kubacki, Sebewaing Position 2: Dale Phillips, Marlette

DISTRICT 4 (formerly District 12) Position 1: Marvin Rubingh, Ellsworth Position 2: Jeremy Werth, Alpena

At-Large Position 1: Mark Crandall, Battle Creek Position 2: Tom Wing, Bellevue Position 1: William Blumerich, Berlin Position 2: Chuck White, Fowlerville

DISTRICT 5 Position 1: Mike Rasmussen, Edmore Position 2: Bill Jernstadt, Big Rapids

*Note: District numbers have been revised based on delegate approval of the District Realignment Proposal at the March 2014 State Annual Meeting.

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April 2014

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Michigan State University: Food and Ag Leaders Remain Confident about the Future

ichigan farmers and food processors remain optimistic about the future of their industry, and they aren’t afraid to show it. That’s what economists from the Michigan State University Product Center learned when they conducted the second Michigan Agriculture and Food Index, released during the annual ANR Week Luncheon. The index, which was based on a survey conducted in December 2013, gauges the current business climate of the state’s food and agriculture system. A rating of 100 on the index is considered neutral; ratings above 100 signal increasingly positive confidence, and below 100, increasingly negative confidence.

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Respondents gave the overall state of food and agriculture a rating of 146, down only one point from the April 2013 survey. In contrast, they rate Michigan’s overall economic outlook at a healthy 120, up five points from April.

“This is a good sign,” explained Chris Peterson, director of the MSU Product Center and lead investigator on the project. “It tells us that not only are industry leaders extremely bullish on the future of Michigan’s food and agriculture business, they are gaining confidence in the state’s ability to handle their growth.” The MSU Product Center conducted the first survey in April 2013 to solicit the opinions of members of a

newly convened Food and Ag Leaders Roundtable— more than 100 movers and shakers representing all facets of Michigan agriculture and food processing, including farmers, ag and food processors and other industry professionals. The MAFI scores three aspects of the food and ag system in Michigan. The current sales outlook was stable with a rating of 131 in December, and 133 in April; the job outlook scored 126, slightly down from its 132 score in April. Investment opportunities dropped from 133 in April to 107 in December. The drop in investments seemed troubling to economists until they compared notes with a small group of industry leaders during a Feb. 26 meeting. “They told us that the December number was justified because it looked at short-term growth opportunities. The industry had a wait-and-see attitude,” Peterson said. “They wanted to make sure the good times were going to continue before they invested further. However, they remain optimistic that additional investments will be made over the next three years.” The survey also offered respondents a chance to highlight their concerns. Bill Knudson, an MSU Product Center marketing economist, said immigration reform remains a top concern for food and ag leaders and was especially

problematic for respondents in the fruit and vegetable sectors. “When we asked people what kept them up at night, many answered, ‘labor and government regulations’,” he said. “They worry about finding good seasonal and full-time labor, as well as finding ways to encourage young people to enter the food and agriculture system.” The survey will be repeated every six months to track ag leaders’ perceptions of the business climate and its positive or negative effects on the food and agriculture system. The next survey will be sent out in April and the results released in July 2014.

April 2014 Messenger DUPPFO13019VE_020114_MMM

MMPA 98th Annual Meeting

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he 98th Annual Delegate Meeting of the Michigan Milk Producers Association (MMPA) was held on March 20 at the Lansing Center in Lansing, Mich. Business conducted by the delegates included the re-election of Rodney Daniels, of Whittemore, to an at-large position on the board of directors, changes to the cooperative’s bylaws, approval of the proposed district realignment plan and adoption of the 2014 MMPA resolutions. President Ken Nobis and General Manager Clay Galarneau discussed changes taking place in the industry and cooperative. Both leaders discussed MMPA’s processing expansion studies to accommodate member milk production growth and indicated the cooperative would be announcing a final decision in the coming months. They also highlighted MMPA’s strong 2013 earnings and the record 535 milk quality awards distributed to members. “Our pay prices have been, and continue to remain, competitive in the industry. We are maintaining and growing the assets in the cooperative necessary to ensure members’ investment in the ownership of MMPA continues to provide value for their milk marketing needs,” Galarneau said. In a special presentation, MMPA recognized Senate Agriculture Committee Chairwoman Debbie Stabenow for her persistent, dedicated work on the 2014 Farm Bill. Nobis presented the senator with an award banner and wall hanging while the crowd thanked her with a standing ovation. Sen.

Stabenow commented, “We worked for over four years to pass the farm bill and our work is not over. In the coming months, we will continue to ensure the rules are written in a way that’s fair and feasible for Michigan farmers. I know how hard you work on your farms, and I’m proud to work hard for you in Washington.” Also in attendance at the meeting, National Milk Producers Federation President and Chief Executive Officer Jim Mulhern relayed the organization’s gratitude for MMPA members’ support of the 2014 Farm Bill. “Thank you for calling your legislators and being involved in the process as we worked to formulate a better safety net for American dairy farmers. With your help, we’ve secured risk insurance options to more effectively protect hardworking dairymen and women,” he said. MMPA Treasurer Mark Halbert presented the financial status of the cooperative, reporting a net savings in fiscal year 2013 of $6.5 million. Halbert also illustrated the strength of MMPA in the marketplace and the amount returned to members in the past year in the form of premium payments. Nobis recognized 64 individuals holding MMPA membership for 35 years. He honored these individuals for their commitment and hard work to the dairy industry and MMPA. Each 35-year member was presented with a plaque. Guest speaker Steve Peterson, General Mills director of sourcing sustainability, told the delegates, “Sustainability is all about spreading the word about the

good stewardship stories already happening on MMPA farms. We’ve enjoyed working with such committed, quality producers shipping to the Reed City Yoplait Plant to lay the groundwork for a future of effective, reasonable dairy processing sustainability efforts.” In recognition of MMPA members’ participation in the General Mills sustainability pilot program, Peterson presented a $7,000 check to the Michigan Dairy Memorial and Scholarship Foundation. The 2013 District Outstanding Young Dairy Cooperators (OYDC) were also honored at the meeting including Mike and Jordan Noll, of Croswell, who were officially recognized as MMPA’s 2013 OYDC. Dean Letter, Member Services Department director, and Frank Brazeau, member representative, presented Jacob and Elaine Jahfetson and family of Baraga, Mich. with the highest quality milk production award. The Jahfetsons achieved the best quality records in 2013 among MMPA’s over 1,300 farms.

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Pictured above: (1) Steve Peterson from General Mills, Inc. recognizes the MMPA member farms participating in a sustainability pilot project. (l-r) Roberta Osborne, DMI, Mark Buning, Bill Stakenas, Steve Peterson, Bob Cnossen, Amy Martin and Mark Bontekoe. (2) MMPA board member Rod Daniels was reelected to a three-year term on the board of directors. (3) NMPF President and CEO Jim Mulhern addresses the delegates. (4) MMPAâ&#x20AC;&#x2122;s top quality award winners (l-r) Dean Letter, Frank Brazeau, Jacob and Elaine Jahfetson and Ken Nobis. (5) MMPA Director of Finance Joe Diglio visits with members Robert and Debra Krafft. (6) The 2013 OYDCs were recognized at the meeting (l-r) Jeff and Chriss Carmichael, Ken Nobis, Dan Javor and Jordan and Mike Noll.

April 2014

MMPA Recognizes 35-year Members Sixty-four MMPA members were recognized as 35-year members at the 98th MMPA State Annual Delegate Meeting, March 20, 2014. MMPA President Ken Nobis congratulated and praised the members for their dedication to the cooperative. “We commend you for your dedication and loyalty to MMPA and the dairy industry over the last 35 years,” Nobis affirmed as he awarded each member with a plaque. A video presentation showcased the vast changes the Michigan dairy industry has undergone the past 35 years since these members began dairy farming. The presentation highlighted that in 1979, when these members joined MMPA, the average milk price was just $11.53 per hundredweight; in fiscal year 2013,

the average price was $20.28 per hundredweight. There were 5,214 MMPA members in 1979 who marketed a total of 2.81 billion pounds of milk. Today, MMPA has approximately Ray Wolak, 35-year member, 2,000 members addresses the delegates. and marketed over 4.31 billion pounds of milk in the 2013 fiscal year. Most notably, the average producer shipped 662,262 pounds of milk in 1979 compared to the average member’s shipment of nearly 3.35 million pounds of milk last year.

MMPA members recognized for 35 years with the co-op include: Alma Local Newlyn Toews Blossomland Local Jerry Koebel Terry Koebel Jerry Koebel, Jr. Gordon Nesbitt Howard Payne Clare-Mt. Pleasant Local George Brushaber James Brushaber Norman Gross Roger Haines Roger Packard

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April 2014

Deford/Clifford-Mayville Local Gregory Mohr Max Steele Richard Steele Robert Steele Raymond Wolak

Evart Local Steven Benthem Douglas Buning Larry Buning Jerry Caryl Ken Deruiter Mark Shaarda Flint Local Roger Bloss Frankenmuth Local Victor Ill Larry Knoll Dennis Knoll Robert Krafft Chester Petzold

Huron Local James Hornbacher Robert Koroleski Evelyn Richmond Roland Siemen Daniel Van Erp Ingham County Local Harold Curtis Kalamazoo Local LaVern DeMann Paul DeMann James Jackson

Grand Rapids Local Russell Acker

Mid-Michigan Local Dan Acre David Acre David Castner Owen Drummond

Hillman Local James Sweet

Mid-Sanilac Local Edward Carroll

Hillsdale-Litchfield Local Douglas Denning Daniel Easterday William Easterday

Mid-Thumb Local Jeffrey Siegler Gary Turner Carl Vermeesch

Muskegon Local Herbert Ackerberg Elmer Beard William Beard Donald Beattie James Holtrop Robert Kran Roger Studer Owosso Local James Anibal James Ritter Upstate Local Gary Rubingh Glenn Rubingh West Michigan Local Mark Plogsterd James VanderZwaag

General Manager’s Report to the Delegates

Our pay prices have been and continue to remain competitive in the industry. We are maintaining and growing the assets in the cooperative necessary to ensure your investment in the ownership of MMPA continues to provide value for your milk marketing needs. Our management team is committed to devoting the resources necessary to ensure our members are provided an opportunity for a successful dairy farming future. Notable Accomplishments and Outstanding Quality 2013 was a year marked by many significant accomplishments for MMPA and our members. This past year, our members received three of the six platinum awards presented by the National Dairy Quality Award Program for the quality of their milk, production processes and animal care strategies. MMPA members also captured 13 of the 47 awards presented at the event in the gold and silver categories for a combined total of 16 of the 53 quality awards presented. That’s impressive – a co-op representing

Our members have a history of delivering excellent quality milk. When one looks at our somatic cell count (SCC) averages, 2013 was another year of improved quality with an annual average of 171,583 cells/mL. Many of you will recall just a couple of years ago when the European Union questioned whether our milk in the U.S. could meet the European standard for SCC (less than 400,000 cell/ mL.) MMPA members can and do deliver milk that meets the highest quality standards on a consistent basis. Many thanks to our field representatives, working under the direction of Dean Letter, for their efforts in helping our members achieve such excellent quality results. Last month, we celebrated with Geert and Gertie van den Goor at the annual Great Lakes Regional Dairy Conference where they were named the MSU Dairy Farmer of the Year for their ongoing efforts bettering the Michigan dairy industry and surrounding communities. We were excited to learn that Scott and Ali Ferry were among the winners of this year’s National Outstanding Young Farmers Award for their agricultural progress, conservation practices and contributions to the well-being of the community, state and nation. MMPA member and past board treasurer Velmar Green took home the World Dairy Expo Dairyman of the Year Award last October. Our past president of the MMPA board of directors Elwood Kirkpatrick was

recognized by the dairy industry at DMI’s last annual meeting with the prestigious Richard E. Lyng award for his many years of promotion work and vision dedicated to the dairy industry. Beyond that, many of our members have received both local and national awards for their contributions to the dairy industry and we congratulate them on their accomplishments as well. Employee Changes 2013 was a year that saw several retirements of some of our most loyal and honored employees. A special thanks to Pete Darling who retired last December after spending 50 years working for MMPA in our Ovid plant. We are also proud to recognize some of the new faces that have been brought to the management team in the last year. Some of these new employees you may have met on your farms and others have taken positions in the office or within our plants. MMPA members can look back proudly on the history of leadership

April 2014

Revenues and Pay Prices In 2013, MMPA’s revenues reached $957 million and for 2014, we are clearly on track to reach the $1 billion mark for the first time in our history. Management will strive to keep operating, selling and administrative costs in alignment with our corporate goals and work to seek greater opportunities for generating value-added returns for our members.

2 percent of the national milk supply brought home 30 percent of the country’s quality awards.

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013 was a solid financial year for the MMPA. The balance sheet remains strong and continues to expand to accommodate the needs of our growing cooperative.

this co-op has provided over the many years and know that generations to come will be served with the same level of commitment to provide expanding opportunities for the future of our dairy industry. I am confident the young leaders of our co-op who are growing and taking shape today within the membership and the management team will help provide vision and leadership for the continued success of MMPA. Continued Milk Supply Increases 2013 marked the second year in a row the MMPA milk supply increased by nearly 5 percent, and, based on early projections and discussions with our members last fall, it looks like we will see another year of 5 percent growth for 2014.

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However, with this winterâ&#x20AC;&#x2122;s unusually cold weather and, in some cases, less than ideal feed conditions, we have seen a slower rate of increase compared to our earlier predictions. It will be interesting to see if our earlier predictions are realized once warm weather returns.

As our milk supply has grown, it has been necessary for your investment in processing facilities to expand as well. This winter at our local meetings we discussed the financial success of your $62 million investment in the expansion of our Ovid plant that was completed in 2010, including the earnings returned back to our members. In the first four years of operation, this investment has realized over $23.7 million or a return of $.15 per cwt. for our members. The analysis clearly shows the benefit of asset ownership for MMPA members as well as the importance of offering members expanded opportunities for growth on their own farms. Ovid Plant Improvements This last summer and early fall saw the completion of two major equipment installations. The Ovid waste water treatment plant was

built in 2000 to handle waste from a 3 million pound per day milk plant. As we expanded operations to receive 4 to 5 million pounds of milk per day, it became clear we needed additional waste water treatment capacity. MMPA invested $3.5 million in the project that started last winter and was completed this last fall in time for the heavy processing activity of the holiday season. The expansion included adding an additional 1 million gallon sequential batch reactor with supporting pumps and blowers and some additional laboratory space to make room for the additional waste water testing requirements. The second major project undertaken in 2013 was the $1.8 million installation of a new gas flushed bagging system for the tower dryer. The new bagging system provides redundancy for the older powdered products bagging line and the ability to provide a gas flush system for bagging whole milk powder. Without gas flush packaging, the shelf-life for whole milk powder is only six months. With the gas flush system, the shelf-life can be extended up to 18 to 24 months. That is comparable to the shelf-life of nonfat powder and is a basic requirement for shipping powders to overseas markets. Most of MMPAâ&#x20AC;&#x2122;s increased volume has been headed for export markets in China and Mexico where demand for infant formula ingredients has been growing rapidly. The new bagger was completed in August and sales have been steadily increasing since. As our powders head out across the globe, we want our customers to know where our products come from. So we have redesigned our powder bags with an underlying picture of Michigan and the Great Lakes. Michigan is probably the

most identifiable state in the North American continent when associated with the Great Lakes, known for their abundance of pure fresh water. We think we can capitalize on these features and bring greater recognition to our products and association using the greatness of our abundant water resources. This last summer we also started a major project to install a new butter churn, refurbish the old churn room area and add a new finished product receiving and load-out bay at our Ovid plant. This project is scheduled for completion next fall and requires an investment of $18.3 million. Once the new churn is installed, we will have the capacity to churn all the butterfat in the milk received at the Ovid plant plus have added capacity to receive additional cream loads from other suppliers. The new churn will have nearly three times the production capacity of the old churn and only require one-third of the labor. I want to thank Gasper Calandrino, Ovidâ&#x20AC;&#x2122;s plant engineer, for his many hours of dedication to these projects and Brent Weller for his efforts to maintain milk production schedules and quality processing during the construction phase of these major projects. Constantine Activities We have also been making improvements at the Constantine plant. Although smaller than our Ovid plant, the Constantine plant has been a very reliable home for about a million pounds of milk per day. Several warehouse and in-plant processing upgrades were added during the last year to keep operations running efficiently. The Constantine plant has become our specialty plant focusing on smaller and more unique customer specifications like organic

Exports Exports have contributed significantly to MMPA’s marketing strategy and sales portfolio in 2013. Last year MMPA saw the export volume of nonfat powder increase by 427 percent over the 2012 level, representing 7.5 percent of our production. Butter exports were nearly as impressive showing an increase of 176 percent over 2012, representing nearly 24 percent of production. The export opportunities for 2014 appear to be as strong as or stronger than last year. In January and February we have more than doubled our exports of whole milk powder and our exports of butter and nonfat are on a good pace to surpass last year’s volumes. Expansion Options At last year’s annual meeting, I explained we were undertaking a study to determine MMPA’s additional processing capacity needs to accommodate member growth and expansion of milk production. Our field representatives have met with our members to discuss their production plans and analyze our growth trends. We have looked at our current capacity for milk processing and have had discussions with our customers to determine their needs for milk and dairy products looking out for the next several years. It is clear Michigan has been and continues to be a growing dairy

Carl Rasch, director of the Bulk Milk Sales Department, and his logistics team have analyzed where the greatest potential for milk growth is likely to occur and we have considered the most cost-effective locations for site development. Our accounting team lead by Joe Diglio and our sales team lead by Jim Dodson have worked together to build forecasting models and analyze pro-forma profitability estimates for several investment options. We have signed confidentially agreements with several potential investment partners to explore combining our financial and intellectual resources to consider building the optimum and most cost-effective new dairy processing facility in Michigan. These partnering options as well as considerations for adding further capacity to one or both of our existing facilities are all being discussed and evaluated with the board. Management is working closely with the board to build a solid financial plan and investment strategy designed to allow continued growth and expansion for our members and bring value-added returns to the association. We anticipate making an announcement within the next couple of months regarding the next major milk processing venture. Communication Efforts 2013 was another excellent year for the Breakfast of the Farm program. After five years of participation

in these events, we are compiling solid statistical validation of the effectiveness of this program. These events are helping farmers reconnect with customers who have grown distant from today’s modern farming techniques and help build greater consumer confidence and trust in our product safety and the care given to our animals. Four of our members hosted last year’s events and were rewarded with excellent attendance and gracious guests. Milk Pricing Let’s just take a quick look at milk pricing. MMPA members experienced an all-milk average price of $20.35 per cwt. for calendar year 2013. The USDA has calculated the national allmilk average price for 2013 at $20.01 per cwt. and their latest projection for the 2014 national average is $21.70. Based on the latest analysis of market conditions and futures markets, MMPA is potentially looking at a record all-milk average price near $23 per cwt. for calendar year 2014. We will keep you posted with the forecasting information and milk price projections as we continue through the year. In conclusion, it looks like the year ahead will be filled with activity and planning for the board and the MMPA management team as we consider the investment options appropriate for the growth of the cooperative and the needs of our members. MMPA remains committed to helping our members succeed in the life they have chosen in the dairy industry. Our members can be assured their investment in the ownership of MMPA will continue to provide a strong market for their milk and value-added returns for today and the future.

April 2014

We can’t help but boast of the quality of Constantine’s butter, which has now won the first place award at the World Dairy Expo Championship Dairy Product Contest for three consecutive years. Congratulations to Dave Davis, the plant manager, and his butter churn crews.

state. Since 2000 the state has grown annual milk production from 5.7 billion to 9.1 billion pounds. That’s 60 percent growth in just 13 years. When we look more closely at MMPA’s growth, we have been trending on a path reaching about .5 million pounds per day of milk growth each year. So in four years we could easily add about 2 million pounds of milk to our daily marketings.

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processing and low spore count condensed skim milk to bring valueadded returns to the cooperative.

Current Resolutions Adopted at the MMPA Annual Delegate Meeting March 20, 2014

Milk Pricing and Market Regulation

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C-1. 2014 FARM BILL We applaud Congress for passing a long-awaited five-year Farm Bill in 2014, providing much needed certainty to the agriculture community. We applaud the leadership of the House and Senate Agriculture Committees, particularly Senator Debbie Stabenow, for their hard work in addressing the needs of dairy producers in this measure. The bill replaces outdated dairy policy meeting the needs of the 21st century and the global economy. It helps address milk price volatility and contains a new risk management tool providing dairy farmers the opportunity to insure against catastrophic economic conditions. National Milk Producers Federation will play a key role working with the USDA to ensure the new dairy program is implemented in an effective and farmer-friendly manner.

C-2. Over-Order Pricing We continue our firm commitment to maximizing returns to dairy farmers and ensuring stability of the milk market. We believe in the voluntary superpool concept of over-order pricing and acknowledge its effectiveness when accompanied with equitable sharing of proceeds among all dairy farmer members in the superpool. We urge MMPA to maintain the concept of over-order pricing and equitable sharing of the over-order proceeds among all dairy farmer members in the superpool. We applaud the establishment of the Great Lakes South Milk Marketing Agency formed in December 2013 that will cover the Michigan, Indiana, Ohio and northern Kentucky markets in the administering of over order pricing. 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-3. Cooperatives Working Together We support the industry-led Cooperatives Working Together (CWT) program developed to help strengthen farm milk prices. The CWT program demonstrates the ability of farmers to work together to enhance their industry. We commend the program’s success and we support CWT’s current efforts to focus exclusively on an Export Assistance Program. CWT’s Export Assistance Program has demonstrated its effectiveness in enhancing dairy farmer revenue by expanding the demand for U.S. dairy products. We urge all dairy farmers across the U.S. to participate in the CWT program. Furthermore, we urge NMPF to renew and utilize the program to its fullest potential to help provide longterm stability for the dairy industry. We are in favor of the possibility of increasing our financial support to the CWT program.

Advertising, Research, Education and Public Relations C-4. Fluid Milk Promotion Campaign We applaud the efforts of the National Fluid Milk Processor Promotion Board for their Milk Processor Education Program (MilkPEP). We believe this program serves as a complement to the ongoing producer financed dairy product promotion program and supports the integrated marketing plan now underway between the producers and processors. We strongly encourage continued product promotion by the National Fluid Milk Processor Promotion Board. In addition to the joint marketing plan, we support the continuation of joint programs between the MilkPEP and Dairy Management Incorporated (DMI) that utilize the same research and market data, detailing the motivations, attitudes and behavior of consumers toward dairy products and channels of distribution. We support efforts to bring dairy farmers and processors together to identify and break through barriers to fluid milk marketing. We are encouraged about the many successful DMI and United Dairy

Industry of Michigan promotional efforts; including: Fuel Up to Play 60, expansion of school breakfast programs; Refuel with Chocolate Milk Programs in high schools and colleges; Feeding America Partnership including Pour It Forward Program; food service partnerships with fast food retailers including Quaker Mix It with Milk; the U.S. Dairy Export Council; the Michigan Dairy News Bureau and other consumer confidence building program utilizing social media; dairy ingredient marketing efforts; and nutrition research and education programs that help promote dairy as part of a healthy diet. 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 advertising and marketing efforts. It is beneficial to the industry as a whole when more companies promote the consumption of dairy products. 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 any changes to the structure and focus of MSU Extension. We urge the leadership within MSU Extension to carefully examine ways to best meet the needs of the agriculture community and to bolster the industry’s growth as a vital contributor to our state’s economy. We urge state lawmakers to provide adequate funding to keep MSU Extension effective and viable. We further urge county governments to continue their support for MSU Extension. C-7. Michigan State University We continue our support for Michigan State University’s College of Agriculture and Natural Resources, the College of Veterinary Medicine and programs of Extension and Research. We support continued legislative funding for these two colleges and their facilities at appropriate levels. We urge the MSU Administration and Board of Trustees to continue

C-9. Food Animal Production Medicine We are concerned about the shortage of veterinarians in the area of food animal production medicine. It is important for the animal agriculture industry to have qualified and experienced animal health professionals to protect the state’s livestock industry. We support the Production Animal Scholars Program developed jointly by the Department of Animal Science and the College of Veterinary Medicine at Michigan State University. The program encourages interested students to pursue food-animal medicine careers and provides them with a broader understanding of the entire food production system. We encourage the MMPA Board of Directors, management and members to work with the MSU College of Veterinary Medicine to assist in efforts to increase the number and level of experience of food animal practitioners. C-10. 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 Americanmade 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. C-11. Sustainability on Dairy Farms We recognize the tremendous efforts dairy farmers have made over the years to protect and preserve our environment. We also know that our members work diligently to provide the best possible care for their animals. These factors illustrate the sustainable practices that take place on today’s dairy farms. We also recognize the growing consumer quest for information concerning food production in our country. We understand 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

neighbors know of the sustainability efforts taking place on their farms every day. 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.

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. We urge Congress to reauthorize the Trade Promotion Authority (TPA) which provides the administration the power to be effective in trade negotiations. We encourage the administration to maintain fair trade policies when negotiating with any country to ensure the preservation of the U.S. dairy industry. We urge the MMPA board of directors and management to closely monitor significant multilateral and bilateral trade negotiations and the effect the negotiations have on U.S. dairy policy. It is important that international trade agreements do not hinder the ability to provide an effective safety net for the U.S. dairy industry. At this stage, the Trans-Pacific Partnership (TPP) Agreement negotiations offer potential benefits for U.S. dairy producers. However, achieving an overall TPP package that is beneficial to U.S. dairy producers requires strong outcomes in several key areas including: open U.S.-Canada dairy trade; strong and enforced sanitary & phytosanitary (SPS) commitments; preservation of key common food names; and meaningful policy reform in New Zealand’s dairy sector to reduce the level of market concentration by one firm. Given current considerations and the present state of dairy policy in New Zealand, MMPA opposes the expansion of U.S.-New Zealand dairy trade. We endorse the dairy industry’s challenges to countries we believe to

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C-8. MSU College of Agriculture and Natural Resources We applaud Dr. Fred Poston for his leadership over the last year as Dean of the College of Agriculture and Natural Resources (CANR).He has worked collaboratively with the agriculture industry to renew the cooperative partnership between the industry and the CANR. 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 scientificallysound 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. We further support reviving the ability for students to earn a degree in Agricultural and Natural Resources Communications and Agriculture Education. With the increasing need to enhance the public understanding of the agriculture industry and to 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.

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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 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 industry. We further encourage the university to conduct research programs that support the mainstay of the agriculture industry. We applaud the establishment of the Agriculture Stakeholder Advisory Committee to provide input and future direction to academic and research programs affecting the agriculture industry.

be in violation of WTO policies and urge continual monitoring of those areas. We support the Consortium for Common Food Names in their efforts associated with specialized foods from regions throughout the world. In addition, because various countries within the WTO are working to increase access to world markets, we ask the FDA and USDA to inspect all dairy imports to ensure they meet U.S. health and quality standards. We further support enforcement action which ensures that imported dairy foods meet the same compositional requirements as domestically-produced standardized dairy foods. C-13. Land Use Policies We support positive land use policies, including urban redevelopment and higher density suburban growth.

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C-14. Farmland And Open Space Preservation Act We reaffirm our support of the Farmland and Open Space Preservation Act, 1974 PA 116, (now Part 361 of the Michigan Natural Resources and Environmental Protection Act) as an effective, voluntary method to preserve essential farmland and open space while providing farmers needed tax relief. We further urge the Treasury Department to process PA 116 refunds in a timely manner.

C-15. Right To Farm Knowing the importance of protecting our environmental resources, we strongly encourage dairy farmers to maintain high standards of environmental practices. We acknowledge and support the Michigan Commission of Agriculture’s role in developing and reviewing Generally Accepted Agricultural and Management Practices (GAAMPs). Practices dealing with livestock manure management and utilization, nutrient utilization, pesticide utilization and pest control, care of farm animals, irrigation water use and site selection and odor control for new and expanding animal livestock facilities are reviewed and approved by the commission on an annual basis. We encourage the continued development of other GAAMPs that will provide protection for other segments of agriculture. We urge awareness among the Michigan Commission of Agriculture and Rural Development, Michigan State University and others involved in

developing the guidelines that there is an opportunity to preserve the quality of our environment while maintaining an efficient agriculture community. C-16. Nutrient Management We acknowledge that it is the responsibility of all livestock producers to follow proper nutrient management guidelines to prevent any contamination of our environment. We strongly encourage producers to follow the Michigan Right to Farm Generally Accepted Agricultural and Management Practices (GAAMPs) for Manure Management and Utilization and Site Selection. We endorse the efforts of the Michigan Agriculture Environmental Assurance Program (MAEAP) to help producers assess and reduce environmental risks on farms. We encourage all producers, regardless of farm size, to seek environmental assurance through MAEAP verification in Michigan or similar programs in other states. We encourage all producers to develop a comprehensive nutrient management plan (CNMP) as outlined under the MAEAP for their farming operation. A CNMP addresses manure handling and storage, land application of manure, farm specific conservation practices, feed management, record keeping and other aspects of waste and nutrient management. C-17. Michigan Agriculture Environmental Assurance Program The Michigan Agriculture Environmental Assurance Program (MAEAP) was developed several years ago as a way for producers to exhibit sound environmental practices on their farms. We encourage the Michigan Department of Agriculture and Rural Development (MDARD) to keep the integrity of the MAEAP program as an environmental assurance program and to carefully monitor and divert any efforts to evolve the program into one of market access. As one of the founding partners of the MAEAP program we have growing concerns that the focus of the program is moving from one of environmental assurance to a marketing tool. Additionally, we encourage MDARD to capture all the environmental benefits and environmental risk mitigation that has resulted through participation in

MAEAP. While some farms may not have incorporated all practices to achieve MAEAP verification, we believe that failure to record the progress of these farms under represents the value of MAEAP to Michigan’s agriculture and environment. C-18. Methane Digesters on Dairy Farms The growing interest for renewable energy in this country has created an increased emphasis on the use of methane digesters on dairy farms. While we acknowledge the role digesters can play on some farms, we are concerned that Dairy Management Incorporated (DMI) and outside interests such as power companies and equipment dealers may present unrealistic expectations of the role digesters can have on dairy farms. These unrealistic expectations are embraced by our customers, which in turn, leads them to expect our farms to use digesters to meet sustainability indicators. We encourage the Innovation Center for U.S. Dairy to carefully monitor these expectations and more accurately gauge the role digesters can play on dairy farms. C-19. 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. C-20. Water Use We understand that water used in agricultural production is in the public interest and represents an essential and necessary use of water for the production of food and fiber. We urge the MMPA Board of Directors and management to closely monitor the implementation of any water use legislation or regulation that would create additional water quantity related fees or rules. Furthermore, we are aware that since 1972, the Clean Water Act has regulated “navigable waters” to improve the quality of the nation’s waters. We oppose any legislative or regulatory efforts to expand the authority of the

C-22. Tax Relief Measures We applaud Congress for permanently extending the estate tax exemption for the first $5 million of a person’s estate indexed for inflation. The estate tax exemption includes a maximum 40 percent tax rate. The estate tax exemption assists farm families in passing the farm from one generation to the next. We further support the reduction of the capital gains tax and urge the U.S. Congress to include this provision in future legislation. We urge keeping the stepped up tax basis now in effect on the assets heirs receive from estates. We oppose any effort to increase the state estate tax. We oppose any new or increased permits or fees imposed by the state, which result in an inequitable burden on the agricultural community. We urge the elimination of the Alternative Minimum Tax.

C-23. 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. C-24. Applied Research Funding In 2007, MMPA delegates initiated an applied research fund in an amount equal to $.01/cwt. on MMPA members’ September milk production. In 2011, delegates approved increasing the amount to $.02/cwt. We fully understand that applied research is important to the advancement of the dairy industry, and traditional research funding sources have become limited. We therefore support the continuation of funding for the applied research fund in the amount equal to $.02/cwt. produced by MMPA members for the month 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. 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. C-26. Milk Labeling Requirements We urge the Michigan Department of Agriculture and Rural Development, Indiana Board of Animal Health, Ohio Department of Agriculture and Wisconsin Department of Agriculture Trade and Consumer Protection to continue to strictly enforce label claims on packages of all milk and dairy products. We further urge these agencies to take action to prevent misleading and false in-store promotions of milk and dairy products. C-27. Term Limits for State legislators In 1992 Michigan voters approved term limits for members of the Michigan House of Representatives, and Michigan Senate. We recommend that the term limits be changed to six, twoyear terms for the Michigan House of Representatives and three, four-year terms for the Michigan Senate. C-28. Michigan Department Of Agriculture And Rural Development The Michigan Department of Agriculture and Rural Development (MDARD) provides beneficial services to all people in the state of Michigan. MDARD plays a key role in ensuring the safety of our food supply and protects the well-being of the plant and animal industries to make sure our state is a reputable and reliable supplier of products to food processors and international markets. The continued growth of the agriculture industry has a significant

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C-21. Air Quality We understand that data from the National Air Emissions Study has been released and will be utilized by the Environmental Protection Agency to develop emission standards for different types and sizes of feeding operations. Lawsuits driven by environmental groups continue to force the development of regulation and law in the absence of sound science. We strongly urge that any government air quality standards be based on sound science and take into consideration the economic impact in our agricultural industry.

We further support allowing farmers and other small businesses to expense under Section 179 the annual amount of $500,000. We applaud Congress for increasing the 2012 Section 179 maximum deduction to $500,000 and extending the same deduction amount for 2013. We understand the maximum deduction level will be lowered to $25,000 starting in 2014. We urge the $500,000 deduction level be maintained as the minimum level and be indexed for inflation. We oppose 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. We urge that any Michigan tax change be broad based and that business to business transactions be exempt from tax, including sales tax. We oppose a tax or fee that negatively effects agriculture such as a tax on gross receipts, a tax on personal property or a tax on assets.

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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.

positive effect on the state’s economy. It is important that the funding for MDARD continue at a level that will protect our state’s food supply and protect animal health. Having a properly funded Michigan Department of Agriculture and Rural Development will enable the agriculture and dairy industry to continue to play a vital role in our state’s economy and will allow our industry to continue to grow and remain competitive on the national level. We further support the continued existence of the MDARD as a distinct Department within state government. We oppose any attempt to dilute the effectiveness of the MDARD by merging it with any other government agency or department.

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C-29. Regulatory Fees Because the function of state regulatory agencies benefits all citizens, we believe that any costs imposed on dairy farmers by state regulatory agencies should come from a state’s General Fund, understanding that significant funding currently is provided by the industry.

C-30. 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. C-31. State Funding for Agriculture We support efforts to discuss state funding opportunities that will help continue to grow Michigan’s agriculture and dairy industry. C-32. Local Road Funding and Maintenance We support Public Act 51’s distribution formula for allocating state restricted transportation revenue between MDOT and local road agencies. We further support routing additional revenue designated for roads and bridges through the PA 51 formula to ensure proper distribution and prioritization of fund usage. We support adequate funding of local road agencies to assist in the necessary maintenance and construction of rural infrastructure. C-33. 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. C- 34. Beef Production Research We support efforts to initiate funding for beef production research through the reinstatement of the Michigan Beef Industry Commission 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 (National Beef Checkoff ). The MBIC Act 291 allows for the collection of funds to support beef production research. C-35. Federal Truck Weight Legislation We support the legislation introduced in February 2013 called the “Safe and Efficient Transportation Act (H.R. 612),” known as SETA. The legislation allows an increase to 97,000 pounds on interstates, provided that trucks which utilize the higher weight limit add an additional sixth axle in order to maintain the same stopping distance and weight distribution as trucks currently operating on interstate highways. SETA will

increase transportation efficiencies by reducing the number of trucks needed for interstate shipment therefore decreasing fuel costs and helping to make the U.S. dairy industry more competitive worldwide. C-36 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-37. Johne’s Disease We are concerned about the significant animal health problems and economic impact on dairy farms from Johne’s disease. 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 applaud the MMPA members who have conducted a Johne’s risk assessment on their farms. We strongly encourage all members to utilize MMPA’s Johne’s

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 to restore the Bovine Tuberculosis (TB) Free status to 57 counties in Michigan in 2011. The TBFree designation was long-awaited and anticipated news to Michigan’s dairy industry. By designating 57 counties as TB-Free, along with the already designated TB-Free Upper Peninsula, it allows for more effective use of limited resources 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

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 more a larger number of doe permits to be issued at a reduced rate, especially in deep 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 applaud the efforts of National Milk Producers Federation (NMPF) and Dairy Management Inc. (DMI) for their role in launching the National Dairy FARM Program: Farmers Assuring Responsible Management. The National Dairy FARM Program was formed 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 dairy animal well-being program demonstrates the dairy industry’s awareness of the need to communicate our commitment to animal well-being to customers and consumers. We strongly encourage all producers to participate in the National Dairy FARM Program.

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.

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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 57 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 immediately. 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.

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. 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 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. 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 onsite appraisal. 3. 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. 4. Increased research toward the control and prevention of Bovine TB. 5. Collaborative efforts between state and federal regulatory agencies, educational institutions and agriculture industry organizations in working toward the eradication of Bovine TB. We support a voluntary herd buyout plan as a tool of achieving Bovine TB-Free status.

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risk assessment program, and test and implement control measures that are important in limiting the spread of Johne’s. 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.

Standing Resolutions Adopted at the MMPA Annual Delegate Meeting March 20, 2014

S-1. Farmer Cooperatives 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 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.

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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 reemphasize 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-6. Image Enhancement 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. 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. 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. S-11. Michigan Beef Industry Commission 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. S-12. Industry Relations With the declining number of producers in the agricultural community, it behooves all producers to stand together

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 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

S-17. Public Nutrition Programs 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. S-18. GREEEN 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 plant-based 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. 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-20. Food Safety 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/ Market-Building Programs We reaffirm our support for marketbuilding 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. S-24. Michigan Dairy Expo 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. Furthermore, we extend our appreciation to the numerous 4-H volunteers and leaders and MMPA

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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).

production of residue-free milk and meat.

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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.

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. S-25. 4-H, FFA and Agriscience Education 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. 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. Further, in view of the vital investment that vocational agriscience programs represent in the future wellbeing 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.

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April 2014

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. S-29. Stray Voltage 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. 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 onfarm 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 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

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

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-36. Michigan Ag Council 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.

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-37. Capper-Volstead Protections We strongly support the protections provided by the Capper-Volstead Act’s limited antitrust immunity for farmers and their cooperatives. The CapperVolstead 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

April 2014

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 byproducts. 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.

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.

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notification of the owner, prior to the seizure of animals. 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.

MERCHANDISE

Electrolytes and Scours Prevention To order call: 1-800-572-5824 then dial 2

Source E Source E is an extremely aggressive electrolyte supplement for the rehydration of calves that are scouring or have insufficient water intake. Source E is used in conjunction with Maxibac or Stand Up to return gut pH and digestive bacteria to normal. Source E contains no sodium bicarbonate, therefore milk and milk replacer feedings can continue as normal. It is available in 4-oz. packs or 10- and 25-lb. containers.

he MMPA warehouse carries several products that can aid in the prevention of and recovery from calf scours. When a calf scours, quick rehydration is extremely important. We carry electrolyte supplements to help expedite calf recovery. Listed below are some products that aid in the battle against scours: Maxibac: Maxibac Calf Gel is a concentrated gel containing billions of specialized lactic acid bacteria and a yeast culture specially formulated for monogastric animals. It is used at birth to populate the gut with beneficial bacteria that can protect the animal from the overgrowth of harmful organisms. Maxibac should be given at birth and when calves face environmental stresses such as transporting, environmental changes and feeding changes. When a calf scours, Maxibac will restore the level of beneficial bacteria in the gut and restore gut pH to levels that inhibit harmful organisms. Each 80cc syringe provides eight doses. Stock #: 8301

Member Price: $ 12.00

Stand Up Stand Up Calf Gel is a more aggressive culture of lactic acid bacteria containing organisms that can live in more hostile environments. It is given when extreme environmental or physical problems exist and the animal is in danger of imminent death. Each 30cc syringe contains two doses. Stock #: 8302 Member Price: $10.19

Stock # 8308 8345 8309 8310

Quantity Member Price 20/4 oz. packs $ 53.50 5/4 oz. packs $ 13.75 10# pail $ 97.23 25# pail $ 212.50

Advance Arrest Advance Arrest is a unique non-medicated nutritional energy supplement and electrolyte product developed specifically for young animals. It provides rapidly available energy, essential electrolytes and fluids, plus fast acting ProVance microbials to help overcome upset and unbalanced digestive tracts. It should be fed as soon as possible when the animal requires supplemental energy and electrolytes. Each box contains 12/3.5 oz. packets. Stock#: 1010

Improve bottom-line $$. Lower feed costs. Maximize production. Ingredients from your trusted source.

Zeeland Farm Services, Inc.速 MI: 866.888.7082 Fax: 616.772.7067 www.zfsinc.com

Low Fat Hominy 7% minimum protein 7% maximum fiber 4% minimum fat

Citrus Pulp

16% maximum fiber 6% minimum protein 2.1% maximum calcium 2% minimum fat

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April 2014

Valero Meal

34% minimum protein 13% maximum crude fiber 4% minimum fat

Traditional ZFS速 Menu Soybean meal, soybean hulls, cereal feed, cottonseed, distillers, gluten, canola meal, beet pulp, wet feeds, and more!

Member Price: $ 24.79

Order Your MMPA Merchandise through your milk hauler or call: Supervisor: Duane Farmer 989-681-2334 Fax: 989-681-3988 Toll Free: 877-367-6455 Orders (Novi) 800-572-5824 then dial 2

50,000 or below 51,000-75,000 76,000-100,000 101,000-125,000 126,000-150,000 151,000-175,000 176,000-200,000 201,000-225,000 226,000-250,000 251,000-300,000 301,000-400,000 401,000-500,000 501,000-600,000 601,000 and greater

+55¢/cwt. +50¢/cwt. +45¢/cwt. +40¢/cwt. +35¢/cwt. +30¢/cwt. +25¢/cwt. +20¢/cwt. +15¢/cwt. +00¢/cwt. - 30¢/cwt. -$1.00/cwt. -$1.50/cwt. -$2.00/cwt.

A payment of 5¢/cwt. will be added for each of the following, if the count is equal to or below:

A high raw count deduction will be waived if the producer has received the quality premium the previous three months for raw bacteria count. 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

• 10,000 Raw Bacteria Count • 20,000 Pre-Incubated (PI) Count

To qualify for MMPA volume premiums there must be:

There will be a deduction of 10¢/cwt. for:

• No abnormal freeze points during the month • An average somatic cell count of 750,000 or less

• Greater than 100,000 Raw Bacteria Count

MMPA Member Testing Fees Payment for testing will be made through an automatic milk check deduction. All costs are listed per individual sample. 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: Raw bacteria count and components. All herd tests must be scheduled with the laboratory through your MMPA Member Representative. Members who choose to receive their lab test results via U.S. postal service: $2/month

Additional Tests Available: All costs are listed per individual sample. • Mycoplasma Cultures $12 • Bacteriology Cultures $13 – Includes identification of bacteria and drug susceptibility.

• Bovine Viral Diarrhea - PCR - ELISA • Johne’s Milk Test - PCR - ELISA – cows - ELISA – tank • Bovine Leukosis Test - ELISA – cows - ELISA – tank • Milk Pregnancy ELISA

$40 $ 6 $40 $ 6 $10 $ 6 $10 $4.50

All tests must be scheduled through your MMPA Member Representative or the laboratory for proper sample submission protocol.

Chemical, Sanitizer & 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 Ecolab Service Message Center 1-800-392-3392 or Stan Palmer 5303 E. Swan Drive #3 Port Clinton, OH 43452 419-797-2101 Ben Johnson 4461 Cambridge Dr. Port Huron, MI 48060 810-824-0636 Jason Koerth 7509 Aborcrest Dr. Portage, MI 49024 269-207-3773 Pat Mitchell 7273 N. Rollin Hwy. Addison, MI 49220 517-403-0928

A & L Laboratories

24 - Hour Medical Emergency Hotline: 1-800-424-9300 Kurt Fiene 8356 C.R. 115 Kenton, OH 43326 612-889-1063 Jeff Timm NW 8665 C.R. M Shawano, WI 54166 612-840-0555

April 2014

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:

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MMPA Quality Premium Program

FREELINERS

Call 1-800-572-5824 ext. 202 to place your ad or email to: Muszynski@mimilk.com or fax 248-426-3412.

Bulls

Registered Holstein Bulls: We now have a nice selection of service age bulls, sired by top AI sires. Green Meadow Farms, Elsie, MI. 989-8624291 or see our website at www. greenmeadowfarms.com. Service age Holstein bulls. Call Steve Alexander, 810-622-8548 evenings or 810-404-8548. Service age Reg. Holstein bulls, deep pedigrees, some red carriers. Jenesis Genetics, 231-924-6163 or 231-225-8615. Registered Holstein breeding 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.

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.

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April 2014

• 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 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 the desired month of publication. Example: to be included in the January issue, the freeliner must be at the MMPA office by December 10.

Cross bred bulls 100% AI. 810-7248825.

Cows & Heifers

60 crossbred Montbeliarde, Swedish Red, Holstein cows for sale. Low SCC high components. For more information call 989-551-1429.

Equipment

Knight 1140 box spreader excellent shape, $14,500. Unverferth 4 shank zone builder, $4,500. New Idea 6-ft. snow blower, $700. 810-531-4619. 92 John Deere 5830 chopper 4x4 with KP and many new parts. 989551-5644. 5127 Kuhn Knight TMR mixer with flip out conveyor and scales in A1 condition. 574-642-1247. 7720 John Deere combine. 643 6-row corn head. 18-ft. grain head. Will separate. 231-425-6913. 62LB New Holland loader with 96in. bucket. 810-724-8825 2008 JD Discbine 13-ft. Hyd Tilt, center pivot, $18,500. 2013 Kuhn Knight 2044 Hyd Push manure spreader, horizontal beaters, like new, $22,500. 1976 JD 8630 4WD tractor, 50 series engine, 275 hp, PTO, 3 pt., good rubber, $16,500. 15 poly calf hutches, $175 each. 989-2392607. JD 3950 chopper, good condition, housed inside, $2,500. Call 989-5932276.

Dairy Equipment

Two Delaval CF1000 Computer Calf Feeders with 4 nipples and laptop with software. Will feed milk or milk replacer, $17,500 for everything or could split them up too. 517-7499112.

Double 7 Herringbone Milking Parlor. Modified Surge Superstalls with a stainless steel weaver index rail. Bou Matic 4400 Signature Series detachers, Flo Star units, 10 hp Sutorbilt vacuum pump, Mueller plate cooler, Therma-Stor heat recovery for hot water, 3” low line and all control boxes. Call for details 989-551-6751. Double 8 herringbone parlor, 2000V automatic take offs, Boumatic Airstar variable speed, Step saver crowd gate, complete or part out. Contact Nick at 517-897-4155 Caseville, Mich. 600 gal. Delaval bulk tank model DRB. $600 or best offer. 810-4444383. 600 gal. Mueller milk tank with compressor, pipeline & receiver jar, receiver pump and vacuum pump. 810-622-8153. Double 6 step-up parlor with 3-in. and 2-in. wash line. Twelve Delaval milk master take-offs and meters. Call Steve at 616-723-3340.

Misc.

1st, 2nd & 3rd cutting balage and dry hay, round bales. Also, round bales of straw. 810-531-4619. 1st cutting haylage. 989-640-3370. Corn silage. Also, 1st cut hay & straw net-wrapped round bales. 231-2508592. Delivery available.

CLASSIFIEDS

Classified Ads ($20 per ad up to 6 lines)

Mail ads to: Classified Ads, Michigan Milk Messenger, PO BOX 8002, Novi, MI 48376-8002. Email to Muszynski@mimilk.com or fax 248-426-3412. 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. 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. 3 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 brings existing grooves back to 100% efficiency & provides high quality traction in new & old concrete, fast service. BLUE RIBBON HOOF TRIMMING, LLC. 989-635-1494. FOR SALE: 5000-4000-3000-25002000-1500 OH MUELLER LATE MODEL BULK TANK MILK TANKS, complete, will trade. 1-800-558-0112.

CORN SILAGE, HAYLAGE & HAY. 989723-1886 or 989-277-1414 FOR SALE: (2) 7,000 TANDEM FOOD GRADE TANK TRAILERS. Set up for direct load w/chutes & spill dams. 1999 Walker 7,000 gal. 2000 Walker 7,000 gal. Call Matt Veale @ Burch Tank 989-4009536.

WANTED TO BUY: USED BULK MILK TANKS, 200 gallons & larger, Sunset & Mueller, 1-800-558-0112. JUNE CLOVER SEED, MICHIGAN CERTIFIED oats and spring barley seed. 989-723-1886 or 989-277-1414.

Concrete Grooving and Texturing Call: Jeff Brisky - Owner Toll Free: 1-800-294-1202 Cell: 1-716-353-1137 Concrete Services Company

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April 2014

REGISTERED HOLSTEIN BULLS

PTO and Automatic Start Generators 1-800-248-8070 M-40 South Hamilton, MI 49419

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

GREEN MEADOW FARMS

• FROM OUR TOP PRODUCTION COWS.

6400 HOLLISTER RD. ELSIE, MI 48831 PH: 989-862-4291

www.greenmeadowfarms.com

Policies

MMPA Policy on Drug Residue in Milk:

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 membership representative. •

If the tank tests negative (no drugs present), the milk may be released and shipped.

•

If the tank tests positive (drugs present), the membership 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.

MMPA Policy on Milk Quality QUALITY QUESTIONABLE 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 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 St. Louis 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. **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. * The member will only be paid for two (2) voluntary dumps in a rolling 12 month period.

If a loss is incurred by MMPA due to the disposal and/or nonmarketability 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. REJECTED LOAD SHIPMENT If: 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, 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. 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 a third occurrence or more 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.

April 2014

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 -

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.

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MILK ON FARM – DRUG RESIDUE SUSPECTED If a member suspects milk in the farm bulk tank contains drug residue:

MARKET REPORT

February 2014 MARKET STATISTICS Mideast Federal Order #33 (pounds)

This Month

NATIONAL TRENDS (million pounds)

Total Class 1 Sales

501,543,892

Total Class 2 Sales

209,635,058

% Change 508,579,406 -1.38 Production California 204,454,977 +2.53

Total Class 3 Sales

406,265,916

422,810,189

-3.91

Wisconsin

2,121

2,165

-2.0

Total Class 4 Sales

179,288,294

229,429,693

-21.85

New York

1,036

1,034

+0.2

1,296,733,160

1,365,274,265

-5.02

Idaho

1,030

1,004

+2.6

38.7%

37.3%

Pennsylvania

831

833

-0.2

Texas

781

757

+3.2

Michigan

716

711

+0.7

Minnesota

711

728

-2.3

New Mexico

630

639

-1.4

Washington

497

482

+3.1

Ohio

415

431

-3.7

Indiana

303

298

+1.7

* Total U.S.

14,917

14,715

+1.4

* U.S. Y-T-D

31,103

30,700

+1.3

Total Production Class 1 Utilization

Year Ago

Mideast Federal Order #33

Current Month Total Producers 5,984 Average Daily Production per Farm 7,739 Average Protein Test 3.18% Average Butterfat Test 3.86% Average Other Solids Test 5.71% Average SCC Count (MMPA) 177,000

2014

2013 % Change

3,402

3,231

+5.3

* For 23 states

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April 2014

COMPONENT PRICING INFORMATION Mideast Federal Order #33

Protein Price/lb.

$4.6044

Butterfat Price/lb.

$2.0109

Other Solids Price/lb.

$0.4453

Class III Price @ 3.5%

$ 23.35

Prod. Price Diff/cwt. (Mich. Mkt.)

$(0.18)

Cheese /lb

2.2864

Uniform Price @ 3.5%

$ 23.17

Butter /lb

1.8320

SCC Adjustment/cwt./1000

$0.00114

Nonfat Dry Milk /lb

2.0783

Dry Whey /lb

0.6314

NASS Survey Prices Monthly Avg

MMPA

STAFF

NOVI (Headquarters) 248-474-6672 • 800-572-5824 General Manager Clay Galarneau, ext. 200

Laboratory Supervisor Patti Huttula, ext. 219

Human Resources Cindy Tilden, ext. 220

Member Services Dean Letter, ext. 213

Manufactured Product Sales Jim Dodson, ext. 229

Member Relations/Public Affairs Sheila Burkhardt, ext. 208

Milk Sales/Dispatch Carl Rasch, ext. 244

Quality Ahmandeep Dhillon, ext. 304

Finance/Controller Joseph M. Diglio, ext. 240

Credit/Insurance Cheryl Schmandt, ext. 210

Data Processing Gregory Schulkey, ext. 237 Member Communications Laura Moser, ext. 296 Alex Schnabelrauch, ext. 211

MANUFACTURING PLANTS Constantine 269-435-2835 Plant Manager Dave Davis Ovid 989-834-2221

MMPA FIELD STAFF NORTH AREA

SOUTH AREA

Frank Brazeau 920-834-4059 Oconto, Wis., cell: 906-250-0337

Krista Beeker Howe, IN 269-986-6792

Ben Chapin Blanchard 989-289-0731

David Brady 517-522-5965 Grass Lake cell: 517-937-9061

Lyndsay Earl Ludington 231-519-2455

Emily Butcher Middlebury, IN

Lindsay Green Dewitt

Andrew Rupprecht Clio 269-986-6793

269-535-0822

Angelee Kirsch Harbor Beach 231-414-4539

Elyse Martin Eaton Rapids

810-701-6460

Violet Lombard Hubbard Lake

Ed Zuchnik Three Rivers

269-967-7351

248-520-3481

Deborah Navarre Leroy 248-520-3580 Gerry Volz 989-848-5996 Fairview 989-289-9219

MMPA Labs Novi:

800-572-5824 (in MI) 800-233-2405 7 a.m. - 4 p.m. Mon-Fri

Ovid:

989-834-2515 6 a.m. - 10 p.m. Daily

Constantine: 800-391-7560 7 a.m. - 10 p.m. Daily

Ashley Werth 269-245-6632 Alpena

Other Services:

If you are unable to reach your assigned member representative, contact any one of the representatives listed in your area.

Gary Best 810-664-4984 Lapeer cell: 586-484-9279 Bulk Tank Calibration

Steven Lehman 989-875-3441 Ithaca cell: 989-330-1638 Mastitis Management

Katie Pierson Coleman 989-289-9686 Merchandise Coordinator, Energy Auditor

Christy Dinsmoore Fairgrove 248-513-7920 Mastitis Management

Merchandise—St. Louis

Duane Farmer, Supervisor 989-681-2334 Fax 989-681-3988 Toll Free 877-367-6455 Orders (Novi) 800-572-5824 then dial 2

April 2014

989-488-8159

Supervisor: Ed Zuchnik Coldwater Office 269-967-7351

Messenger

Supervisor: Gerry Volz St. Louis Office 989-289-9219

Itâ&#x20AC;&#x2122;s so easy Easy liner change We manage the process for you Hygienically cleaned parts Complete claw maintenance Milkrite trained technicians make sure all your parlor conditions are operating at their peak.

a sImple, no hassle change process savIng you money and tIme contact us at (ca office) (800) 927-4454 or (WI office) (800) 558-0150