Michigan Milk Messenger: April 2015 by Michigan Milk Producers Association

Messenger Michigan Milk

The official publication of Michigan Milk Producers Association

Inside Also Inside

www.mimilk.com VOL. 97 ISSUE 10 APRIL 2015

99th Annual Delegate Meeting, Award Winners

Michigan Milk Messenger

contents EDITOR’S LETTER

MMPA Matters

Quality Watch

8 10

NMPF: Working on Our Behalf

Grade A Surveys and Check Ratings

News & Views Legislative Watch

Features

11 12

2015 MMPA District Officers

99th Annual MMPA State Delegate Meeting

MSU Students Awarded Michigan Dairy Memorial Foundation Scholarships

Messenger | April 2015

Managing Editor.......................................................Sheila Burkhardt Editor......................................................................Alex Schnabelrauch Advertising Manager............................................Nancy Muszynski Circulation..........................................................................................2,972

An Equal Opportunity Employer – F/M/V/D Michigan Milk Messenger (USPS 345-320) is the official publication of Michigan Milk Producers Association, published monthly since June 1919. Subscriptions: MMPA members, 50¢ per year; non-members, $5 per year.

41310 Bridge Street P.O. Box 8002 Novi, MI 48376-8002

Telephone: 248-474-6672 FAX: 248-474-0924 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)

22 22 23

MMPA Recognizes 35-Year Members

26 32

Current Resolutions

General Managerâ&#x20AC;&#x2122;s Report to the Delegates

Standing Resolutions

Departments

Cover

36 Merchandise

The 99th Annual MMPA

Quality Premiums

38 Freeliners 40 Classifieds 41 Policies 42

Market Report

Staff

State Delegate Meeting was held on March 19 in Lansing. Highlights of the meeting and business conducted by delegates begin on page 20.

Michigan Milk Producers Association (MMPA) 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.

Directors-At-Large

Officers Ken Nobis, President Mark Halbert, Vice President Eric Frahm, Treasurer Joe Diglio, General Manager/ Secretary Josep Barenys, Assistant Treasurer Todd Hoppe, General Counsel

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

District Directors 1. Hank Choate, Cement City................................................................517-529-9032 2. Tim Hood, Paw Paw............................................................................269-657-5771 3. David Pyle, Zeeland............................................................................616-772-1512 4. Corby Werth, Alpena..........................................................................989-464-5436 5. Brent Wilson, Carson City..................................................................989-584-3481 6. Tony Jandernoa, Fowler.....................................................................989-593-2224 7. Eric Frahm, Frankenmuth..................................................................989-652-3552 8. Leonard Brown, Sandusky................................................................810-648-4505

Messenger | April 2015

Board of Directors

MMPA MATTERS

NMPF: Working on Our Behalf I recently attended the spring board meeting of the National Milk Producers Federation (NMPF), so the many ways NMPF advocates on our behalf are fresh on my mind. NMPF was established in 1916, the same year as MMPA, to advance the well-being of dairy producers and the co-ops they own. NMPF represents more than 32,000 dairy producers and the majority of the milk produced in the U.S. As NMPF puts it, it does its best to connect “cows, cooperatives, Capitol Hill and consumers.”

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NMPF’s involvement in formulating the 2014 Farm Bill is well known, but less known are many of NMPF’s “behind the scenes” activities. For example, Food and Drug Administration (FDA) survey results on drug residue in dairy herds were recently released. The FDA’s report on the sampling survey confirmed that only 15 (.7 percent) of the 1,912 samples showed drug residues. NMPF’s time spent monitoring this four-year study was time well spent as they were confident no underlying compliance problem existed and wanted to make certain no misleading information was disseminated.

In addition to this special survey testing of farm milk samples, the FDA tests about 40,000 retail samples of dairy products annually. It has been four years since they found a confirmed positive on the retail shelf. The FDA in press releases concluded the results indicate the

current system results in high rates of industry compliance. The FDA is confident the U.S. milk supply is safe. I think this is a definitive indicator that dairy producers follow the rules when using drugs to treat sick animals. NMPF played an important role in getting this information out to the public. NMPF also keeps close tabs on environmental rules and regulations at the federal level. One example currently at the forefront is Waters of the United States (WOTUS), a proposed rule that would change the definition of what constitutes the waters of the U.S. and therefore what waterways would be subject to pollution controls by the Environmental Protection Agency (EPA). NMPF, along with just about everybody else involved in agriculture, has been pushing back on WOTUS. Although the final ruling hasn’t been issued, it does look as though the efforts to limit EPA’s reach have been successful. In any case, this is just one more example of NMPF’s advocacy on our behalf. NMPF’s development of the Cooperatives Working Together (CWT) program is another way NMPF works for us. CWT is an effective tool to help the U.S. dairy industry make successful inroads into the international dairy market. It was developed to help the U.S. dairy industry become a consistent

Ken Nobis

President

player in the global dairy market by assisting with exports. With very high domestic prices in 2014 and the port work slowdown on the West Coast, dairy exports took a hit that continues so far this year. Because U.S. dairy prices have been dropping and the work slowdown has been resolved, CWT should soon have the opportunity to better equalize prices so we can return to a competitive position. We expect more of our growing supply of domestic milk production to be marketed beyond our borders. The CWT program shouldn’t be needed forever, but we still have to overcome our legacy of neglecting the potential of servicing the export market. In fact, rather than discontinue CWT, we feel the need to increase the funding for CWT to deal with the current market and production situation. A proposal to raise the CWT contribution from 4 to 6 cents per hundredweight from January 1, 2016 through December 31, 2018 will be voted on at the NMPF June board meeting. I’ve presented only a few examples of NMPF’s involvement in the success of our industry and our dairy farms. Legislative, regulatory, legal and economic issues are all important as NMPF strives to connect “cows, cooperatives, Capitol Hill and consumers” on behalf of co-ops like MMPA.

QUALITY WATCH

Grade A Surveys and Check Ratings: Keeping Your Milk Moving Grade A surveys are conducted by the state regulatory agency every 18-24 months to keep a milk supply on the National Council of Interstate Milk Shippers (NCIMS) listing and, therefore, allow the milk and milk products to be marketed across state lines.

Messenger | April 2015

rior to the NCIMS listing, inspectors from other cities or states would have to conduct inspections on dairy farms to ensure compliance with their local regulations. The NCIMS rating system, based on the Pasteurized Milk Ordinance (PMO), limits the amount of regulatory inspections to those done by the state regulatory agency.

Additional points may be deducted due to compliance with raw bacteria and somatic cell count (SCC) levels. Points are deducted if a farm:

Farms are broken up into groups called Bulk Tank Units (BTUs) by marketing organizations. If a BTU consists of 25 farms or less, all of the farms are surveyed. In larger BTU’s, additional farms are surveyed to provide a valid statistical sampling. A weighted average (based on daily pounds of milk) of 90 percent or greater is required for a Grade A survey to pass. A failure means that the milk from that BTU is delisted, and may not be used for Grade A purposes until a subsequent Grade A survey score is at least 90 percent.

Ten points are allotted to raw bacteria count and drug residue testing, and five points are allotted to SCC. Item 8b on the inspection sheet (five points) is debited if the last water sample on file is unsatisfactory or if an untested water supply is being used. Note: Your MMPA member representative must collect a satisfactory water sample when you put a new water supply into use or service the existing water supply.

In addition to Grade A surveys, the Food and Drug Administration (FDA) periodically conducts check ratings to audit the state regulatory agency’s Grade A inspection program. Check ratings are not conducted at a set frequency, and only half the number of farms are picked. A weighted average of at least 85 percent is required to pass a check rating. If below 80 percent, the supply is delisted and the milk may not be used for Grade A purposes until it achieves a score of at least 90 percent. A check rating score between 80 and 85 percent has no immediate effect on the milk’s marketing, but requires another state Grade A survey within 60 days. The farm inspection only accounts for 85 of the 100 possible points of the score.

• Is on warning notice for either of these counts, and the last official count is illegal • Does not have official raw bacteria, drug residue testing or SCC data for four of the past six months

The enforcement rating of a BTU may also fail. This rating refers to the state regulatory agency’s effectiveness in administering the Grade A inspection program. This rating does not prevent milk from being marketed through normal channels, but requires a resurvey within six months. Delisting of a milk supply impacts milk marketing, transportation and production. Milk from the delisted BTU must be diverted to a non-Grade A facility or processed at a Grade A facility at the end of the normal production day until the resurvey is conducted and tabulated. Since this milk must be used for non-Grade A purposes, the value of the milk and its manufactured products is reduced. Milk from another BTU must be used to replace the delisted milk resulting in significantly higher transportation and plant labor costs.

Steve Lehman

Technical Area Supervisor

These decreased values and increased costs are shared across the cooperative. Since the temporary destination of the delisted milk is generally a greater distance from the normal destination, trucks may not be able to return to farms within a time frame that supports normal production activity. When a BTU is delisted, MMPA member representatives conduct inspections on all of the farms belonging to that BTU. To get a satisfactory resurvey conducted as soon as possible, these inspections may take place during atypical times. Many farms are put on reinspection, resulting in short turnaround times for correcting reinspection items. It is in the best interest of all producers to correct these items quickly, as MMPA will request that the state regulatory agency conduct the resurvey as soon as possible. According to the NCIMS procedures, “a new rating shall be made in not less than thirty (30) days and not to exceed sixty (60) days, unless the State Rating Agency has reason to believe a new rating within a lesser time period, would result in an acceptable rating.” The regulatory agencies recognize the impact of delisting a BTU and are generally very accommodating in scheduling the subsequent survey. The best protection against failing a Grade A survey is to keep your facility in compliance with the PMO at all times. There are occasional changes in interpretation of inspection items; it is important that both your state inspector and member representative communicate those changes to you and that you correct violations in a timely manner. Some conditions or equipment that have existed for several years may not be acceptable now. As a rule, “grandfather” clauses no longer apply. If you have any questions regarding inspection items and their interpretations, contact your member representative or state inspector.

NEWS & VIEWS

Markets Indicate Prices May Stabilize

MMPA Returns $2 Million of Cash Patronage Refunds to Members

The USDA announced the February Class III milk price was $15.46 per hundredweight, down 72 cents from January’s price, and $7.89 below February 2014. The Class IV price, $13.82, was 59 cents higher than January 2015, but $9.64 below February of last year.

Michigan Milk Producers Association recently paid $1.8 million in cash patronage refunds to its dairy farmer members. This cash allocation represents 25 percent of the $6 million net earnings generated by the cooperative in fiscal year 2014. 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 2014 received a portion of the $1.8 million.

MMPA Board Members Reelected Delegates attending the 99th annual meeting of Michigan Milk Producers Association on March 19, 2015 reelected Mark Halbert, of Battle Creek, to an at-large, threeyear 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: Mark Halbert, Battle Creek; Treasurer: Eric Frahm, Frankenmuth. Board members reelected during district meetings include: Hank Choate, Cement City, MMPA District 1 and Eric Frahm, Frankenmuth, MMPA District 7. David Pyle, Zeeland, MMPA District 3 and Corby Werth, Alpena, MMPA District 4 were elected to their first terms on the MMPA board.

Upcoming Dates Messenger | April 2015

April

10 MMPA Young Cooperators Conference Lansing 16 MMPA Dairy Communicators Meeting Lansing

During fiscal year 2014, MMPA members earned $15.2 million in total premiums. These premiums are a combination of quality, volume and overorder premiums and serve as a reflection of MMPA’s financial strength. MMPA members received other cash payments in April 2014 of $3.8 million through retirement of the cooperative’s 2005 equities. With the current payment of $1.8 million, cash payments in the last 10 months total over $5.6 million. “The nearly $6 million in patronage refunds and equity retirements we’ve recently returned to our member-owners speak to the financial viability of MMPA,” Joe Diglio, MMPA general manager, says. “We’ve been able to serve Michigan dairy farmers for nearly a century due to our high-quality milk supply, responsible financial management and competitive member value return.” 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.

Producers Scoring 95 percent or more on Grade A Surveys and Federal Check Ratings Folkersma Farm LLC* David / Tammy Bell John Hill Roy Rogers Jr. Taylor Creek Farm LLC* David Lamb Inverness Dairy Farm Inc. Richard Fettig Donald Budzinski* Edward Reimann* Thomas / Francis Themm Boss Dairy Farms Inc.* Louise Potter* Robert Millard Gross Farms Inc. Martin Fox Cedar Lane Dairy Farms W-R-L Daniels Farm LLC S B Centennial Farm Bennett Dairy Farm LLC* Timothy Hagley

Twin Dairy* Henry / Daniel / Bertha Troyer Rosebrook Farm Plogsterd Farms Heritage Farms LLC* Timothy Baker Lynn, Douglas, Terry Huff Bode Valley Farm Inc. Samuel Yonkman Benthem Homestead Farms Inc.* Bernard Baker Charles Wamhoff Vandenberg and Vandenberg Robert, Michael, Matthew, Harold Cnossen* North Acres Dairy Mark Hilaski Wirth Farms LLC* Gilde Farms LLC* *100 percent

MMPA Advisory Committee District One Art Riske, Hanover......................................................... 517-524-6015 Clark Emmons, Fayette, OH......................................... 419-452-6764 Jeff Alexander, Sand Lake............................................ 517-563-8729 Perry Cisco, Hudson...................................................... 517-404-7997 Carlton Evans, Litchfield.............................................. 517-398-0629

District Two Richard Thomas, Middlebury, IN................................ 574-825-5198 Donald Bever, Delton................................................... 269-671-5050 Jim Droscha, Charlotte................................................. 517-543-5577 Michael Oesch, Middlebury, IN.................................. 574-825-2454 Danny Ransler, Gobles................................................. 269-628-4218

District Three Burke Larsen, Scottville................................................ 231-757-2090 Bill Stakenas, Freesoil................................................... 231-757-9340 Gary Nelsen, Grant........................................................ 231-834-7610 Tim Butler, Sand Lake................................................... 616-636-8567 Nico Eadie, Conklin....................................................... 616-550-4041

District Four Dave Folkersma, Rudyard............................................ 906-478-3023 Steve Brock, Daggett.................................................... 906-753-6439 Ron Lucas, Posen........................................................... 989-379-4694 Marvin Rubingh, Ellsworth......................................... 231-588-6084 Jeremy Werth, Herron.................................................. 989-464-4022

Five Michigan Breakfast on the Farm events are on tap for 2015, and three of the five will be hosted on MMPA dairy farms, including: • July 11 - Stakenas Farms, Freesoil (Mason County) • July 25 - Roto-Z Dairy Farm, Snover (Sanilac County) • August 8 - Hood Farms Family Dairy, Paw Paw (Van Buren County) • August 15 - Wheeler Dairy, Breckenridge (Gratiot County) • August 29 - Pleasant View Dairy, Jonesville (Hillsdale County) Hundreds of volunteers are needed to pull off these events. Mark your calendars and sign-up to volunteer for a day of handson dairy outreach and education. For more information, visit www. breakfastonthefarm.com.

Tom Jeppesen, Stanton............................................... 989-762-5399 Bruce Benthem, McBain............................................... 231-825-8182 Amy Martin, Leroy......................................................... 231-388-0496 Mike Rasmussen, Edmore............................................ 989-762-5380 Bill Jernstadt, Big Rapids............................................. 231-796-4650

District Six Kris Wardin, St. Johns................................................... 989-640-9420 Aaron Gasper, Lowell.................................................... 616-897-2747 Steve Thelen, Fowler..................................................... 989-640-1075 David Reed, Owosso..................................................... 989-723-2023 Jamie Meyer, Ionia ........................................................ 989-640-3372

District Seven Eric Bergdolt, Vassar..................................................... 989-652-6500 Steve Foley, Millington................................................. 989-871-4028 Rod Fowler, Chesaning................................................. 989-845-6131 John Bennett, Prescott................................................. 989-345-4264 Scott Kleinhardt, Clare................................................. 989-386-8037

District Eight Mike Bender, Croswell.................................................. 810-679-4782 Scott Lamb, Jeddo......................................................... 810-404-8003 Mike Noll, Croswell........................................................ 810-404-4071 Tim Kubacki, Sebewaing............................................. 989-883-3249 Dale Phillips, Marlette.................................................. 989-635-7917

At-Large Mark Crandall, Battle Creek........................................ 269-660-2229 Tom Wing, Bellevue....................................................... 269-660-0498 Bill Blumerich, Berlin.................................................... 810-395-2926 Chuck White, Fowlerville............................................. 517-521-3564

Food and Ag Leaders’ Confidence in Michigan Economy Continues to Grow Varying markets and fluctuating prices put farmers on opposite sides of opinion polls in 2014, but one thing they all agree on is that confidence in Michigan’s food and agriculture remains high. In addition, confidence in Michigan’s overall economy is up dramatically in the past 12 months. These findings are among the results of the Michigan Agriculture and Food Index (MAFI*), a survey of the industry’s leaders. Food and ag leaders gave the overall state of the food and agriculture system a rating of 147. This rating has been steady since the first survey was conducted in April 2013. They gave Michigan’s overall economy a rating of 140, up 24 points since April 2013.

“That 24-point jump is significant,” explained Chris Peterson, director of the Michigan State University Product Center and lead investigator on the project. “While they have always been confident in their own industry, this tells us that they have increasingly more confidence about the overall economic outlook for the state. A robust economy in Michigan is good news for everyone, not just the food and ag industry.” In addition to the overall economic ratings, the survey shows that confidence in industry sales was up slightly to 136, and investment was up slightly to 119. The jobs outlook took a significant leap.

*The MAFI gauges the current business climate of the state’s food and agriculture system by surveying 100 influential players in food and agriculture businesses. A rating of 100 on the index is considered neutral; ratings above 100 signal an overall positive outlook, and below 100, an overall negative outlook.

Messenger | April 2015

2015 Michigan Breakfast on the Farm Hosts Announced

District Five

LEGISLATIVE WATCH

Long-Awaited FDA Drug Residue Analysis Demonstrates U.S. Milk Supply is Safe, NMPF Says

he results of a longawaited U.S. Food and Drug Administration analysis of milk samples from nearly 2,000 dairy farms clearly demonstrate that regulations to keep drug residues out of milk are effective in protecting public health, according to NMPF.

NMPF President and CEO Jim Mulhern said, “The findings are a positive affirmation of our milk safety, although we need continued education among farmers, veterinarians and pharmaceutical companies and outreach on how to prevent future trace levels of residues.”

In the analysis, made public March 5, FDA’s Center for Veterinary Medicine analyzed the milk samples for 31 different drugs. More than 99 percent of samples were found to be free of drug residues.

In the analysis, FDA collected milk samples from 1,912 farms. About half the farms had been cited earlier for drug residue violations in market-bound meat. The remaining farms were randomly selected. FDA was checking to see if dairy farms with drug residue violations in meat were producing milk that also contained residues.

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“The report confirms that America’s dairy farmers are delivering on their commitment to provide safe and wholesome milk to consumers,”

FDA confirmed 15 positives out of the 1,912 samples tested. That was 0.7 percent of the total. There was no significant difference in the results from farms with earlier drug residue citations and those randomly selected. The FDA said the results “are encouraging and indicate that the current system of regulatory oversight results in high rates of industry compliance.” The agency also said it remains confident in the overall safety of the U.S. milk supply.

2015 MMPA District Officers DISTRICT 1

DISTRICT 5

Chairman: Dave Lott, Mason

Chairman: Doug Chapin, Remus

Vice Chairman: Jeff Alexander, Hanover

Vice Chairman: Mike Rasmussen, Edmore

Secretary: Tom Pierce, Reading

Secretary: Gordon Dick, McBain

State Credentials Committee: Tom Pierce, Reading

State Credentials Committee: Doug Chapin, Remus

State Resolutions Committee: Carlton Evans, Litchfield; Bruce Lewis, Jonesville; Clark Emmons, Fayette, OH; Dave Lott, Mason

State Resolutions Committee: Bruce Benthem, McBain; Bob Cnossen, Falmouth; Tyler Wilson, Carson City; Tom Jeppesen, Stanton

DISTRICT 2

DISTRICT 6

Chairman: Jerry Koebel, Jr., Three Oaks

Chairman: Kris Wardin, St. Johns

Vice Chairman: Jim Droscha, Charlotte

Vice Chairman: David Reed, Owosso

Secretary: Richard Ultz, Burr Oak

Secretary: Steve Thelen, Fowler

State Credentials Committee: Richard Ultz, Burr Oak

State Credentials Committee: Jim Slavik, Ashley

State Resolutions Committee: Don Bever, Delton; Richard Thomas, Middlebury, IN; Brad Crandall, Battle Creek; Heather Wing, Bellevue

State Resolutions Committee: Matt Dutcher, Owosso; Mike Halfman, St. Johns; David Reed, Owosso; Ken Wieber, Fowler

DISTRICT 3

DISTRICT 7

Chairman: Glen Sparks, Fremont

Chairman: John Bennett, Prescott

Vice Chairman: Bill Stakenas, Freesoil

Vice Chairman: Matt Wardin, Hemlock

Secretary: Sharron Powers, Pentwater

Secretary: Rod Fowler, Chesaning

State Credentials Committee: Sharron Powers, Pentwater

State Credentials Committee: John Bennett, Prescott

State Resolutions Committee: Tim Butler, Sand Lake; Bill Stakenas, Freesoil; Burke Larsen, Scottville; Gary Nelsen, Grant

State Resolutions Committee: John Bennett, Prescott; Eric Bergdolt, Vassar; Leslie Daenzer, Frankenmuth; Rod Fowler, Chesaning

DISTRICT 4

DISTRICT 8

Chairman: Marvin Rubingh, Ellsworth

Chairman: Darwin Sneller, Sebewaing

Vice Chairman: Jeremy Werth, Herron

Vice Chairman: Mike Noll, Croswell

Secretary: Bob Barron, Gladstone

Secretary: Debbie Kubacki, Sebewaing

State Credentials Committee: Paul Ponik, Posen

State Credentials Committee: Dale Phillips, Marlette

State Resolutions Committee: State Resolutions Committee: Jeremy Werth, Herron; Marvin Rubingh, Ellsworth; Mike Bender, Croswell; Scott Lamb, Jeddo; Ron Lucas, Posen; Gary Palosaari, Chassell Bill Blumerich, Berlin; Dale Phillips, Marlette

Messenger | April 2015

The following officers were elected during MMPA district meetings held in February.

MSU Students Awarded Michigan Dairy Memorial Foundation Scholarships The Michigan Dairy Memorial and Scholarship Foundation (MDMSF) has awarded more than $90,000 in scholarships to 31 Michigan State University (MSU) students pursuing dairy industry-related programs of study for the 2014-15 academic year.

he following nine MSU students were awarded $3,500 Michigan Dairy Memorial Scholarships: Jacob Buning, agribusiness management junior, of Falmouth; Caelah Doerr, animal science senior, of Owosso; Ashley Immel, animal science senior, of Osseo; Lynette Jackson, animal science senior, of Caro; Torei Kulpinski, animal science sophomore, of Coldwater; Caitlin McNichols, animal science senior (production scholar), of Harrisville; Bethany Oglesby, animal science senior, of Lakewood, Ill.; Laura Small, animal science senior, of Kimball; and Brittni Tucker, animal science junior, of Elsie. Five sophomores pursuing a two-year certificate in the MSU Institute of Agricultural Technology (IAT) dairy management program each earned $2,000 scholarships from the Michigan Dairy Memorial and Scholarship Foundation: (Clayton) C. J. Berens, of Holland; Ella Higgins, of Elsie; Gabriel Klaasen, of Hamilton; Hayley Obradovich, of Fruitport; and Rebecca Swartzendruber, of Bay Port. Seven first-year students were awarded the Michigan Dairy Memorial and Scholarship Foundation Freshman Scholarships worth $1,500: Ethan Haywood, animal science freshman, of Hastings; Kayla Holsten, IAT dairy management certificate program student, of Milan; Amber Iden, IAT dairy management certificate program student, of Bad Axe; David Krafft, IAT dairy management certificate program student, of Frankenmuth; Ellen Launstein, animal science freshman, of Mason; Laura Lubeski, animal science senior (transfer), of Bad Axe; and Cara Perkins, IAT dairy management certificate program student, of Hudson.

Messenger | April 2015

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 office at 517-355-0284. 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.

Glenn and Anne Lake Scholarship: Jennie Lubbers Jennie Lubbers of Lake Odessa, Mich., was chosen as the 2014-2015 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 National Milk Producers Federation and provided leadership in creating the Great Lakes Milk Marketing Federation, which helped dairy farmers secure bargaining rights to market their milk. Lubbers, the daughter of Dennis and Melissa Lubbers, will graduate in May with a major in animal science. While at MSU, Lubbers has been an active member of the MSU Dairy Club and the Animal Science Undergraduate Research Student Association (ASURSA). She has traveled to multiple annual American Dairy Science Association (ADSA) - Student Affiliate Division (SAD) meetings and has participated in several ASURSA research projects, including projects at the MSU Dairy, Swine and Horse Teaching and Research Centers.

John and Barbara Dilland Scholarship: Nathan Buning Nathan Buning of Falmouth, Mich., was chosen as the 201415 recipient of the John and Barbara Dilland endowed scholarship. The $3,500 scholarship is named in honor of John Dilland, former MMPA controller, director of finance and general manager, and his wife Barbara. The award is presented to an MSU sophomore, junior or senior student majoring in the field of agribusiness management. Buning, the son of Norman and Holly Buning, is a junior at MSU pursuing a degree in agribusiness management and expects to graduate in spring 2016. At MSU, Buning is a member of the MSU Dairy Club, and he was a 4-H member for more than 10 years, during which time he competed on the county’s dairy quiz bowl team. In addition, he worked on the family’s 1,500-acre, 360-cow dairy operation. 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.

Prior to attending MSU, Lubbers was active in both 4-H and FFA and had the opportunity to compete in national dairy cattle judging and dairy quiz bowl contests. In 2014, Lubbers was selected as a senior ambassador in the Michigan Dairy Ambassador Scholarship and Leadership Program. Upon graduation, Lubbers envisions working for an animal nutrition research laboratory or animal nutrition feed company.

Messenger | April 2015

Lubbers competed in the MSU Dairy Challenge, and participated in the Dairy Challenge Academy and the MSU Academic Quadrathalon. She completed an internship with Arm and Hammer and has been employed as a student assistant with the MSU Nutritional and Digestive Physiology Laboratory since 2012. This past summer, Lubbers traveled to the Netherlands, Belgium and Germany as part of the two-week MSU Dairy Husbandry and Environmental Stewardship study abroad program.

Redmond and Edna Cotter Scholarship: Carrie Szybisty Caroline (Carrie) Szybisty of Redford, Mich.,was chosen as the 2014-15 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.

Garrett Slavik of Ashley, Mich., was chosen as the 2014-15 recipient of the Russel Erickson Scholarship. The $5,000 scholarship is named after Russel Erickson, Michigan State University (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.

Szybisty, the daughter of John and Linda Szybisty and graduated from MSU with a bachelor’s degree in animal science in 2012. She’s currently a third year student in the MSU College of Veterinary Medicine (CVM) Production Medicine Scholars Program. Szybisty aspires to become a production animal veterinarian specializing in dairy cattle, focusing primarily on reproductive physiology or food safety.

Slavik, the son of Jim and Doreen Slavik, is scheduled to graduate in May with a degree in animal science. He has completed two internships with Cargill Animal Nutrition and aspires to pursue a career as a dairy nutritionist or consultant. He also retains an interest in returning to the family’s 400-acre, 160-cow dairy and 50-head beef cattle operation one day.

Messenger | April 2015

At MSU, Szybisty has been employed as an animal caretaker at the MSU Dairy Teaching and Research Center and participated in a MSU CVM Food Systems Fellowship production animal research program with the Madras Veterinary College in Chennai, India. She also has been an active member of and served in leadership roles for the MSU Dairy Club, the MSU CVM Food Animal Club, the MSU CVM Theriogenology Club and the MSU Animal Science Undergraduate Research Student Association, and is a member of the MSU CVM Equine Club.

Russel Erickson Scholarship: Garrett Slavik

Szybisty was the outreach program coordinator this past summer with the Michigan Veterinary Medical Association SAMY (Science, Animals, Medicine and You), and is completing the National Veterinary Business Management Association business certificate program. She also has been the large animal exhibit coordinator for the annual MSU Vet-A-Visit event the past two years. Sybisty has represented MSU at the North American Intercollegiate Dairy Challenge and competed regionally and nationally with the MSU Figure Skating Club. The Redmond (“Red”) and Edna Cotter endowed scholarship honors the Cotter couple and their many contributions to the dairy industry.

At MSU, Slavik is an active member of the MSU Dairy Club and served in several leadership positions, including roles on the executive board, education committee and Spartan Spectacular Sale committee. He was a member of the 2013 MSU collegiate dairy judging team that earned the overall high team award at the North American International Livestock Exhibition (NAILE) in Louisville, Ky., and high team awards both overall and in oral reasons at the 2014 Southwestern Exposition and Livestock Show in Fort Worth, Texas. In addition, Slavik is involved with the MSU Navigators (Bible Study), served on the Michigan Junior Holstein Association board of directors, participated in the 2013 Dairy Challenge Academy and competed in the 2013 MSU Dairy Challenge. Prior to attending university, Slavik was active in 4-H, president of his school’s National Honor Society, earned 11 varsity letters in three sports during his high school years and was named all-conference, all-district and all-region in baseball and all-conference in football. It was during these formative years that Slavik took an active role as a dairy farmhand and became co-owner of Slavik Show Cattle, his family’s successful beef cattle company.

Jack and Betty Barnes Scholarship: Chelsey Clemens, Samantha Mamarow and Katelynne Spaans Three Michigan State University (MSU) students have been awarded the Jack and Betty Barnes Scholarship. Chelsey Clemens, animal science senior and production animal scholar from West Branch, Samantha Mamarow, animal science senior from Saline, and Katelynne Spaans, animal science senior with a Production Animal Scholar Program concentration and agribusiness specialization from Belding, each received the $1,000 scholarship earmarked towards 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. CHELSEY CLEMENS

Clemens, the daughter of Eric and Shelly Clemens, took part in the Dairy Husbandry and Environmental Stewardship study abroad program to the Netherlands, Belgium and Germany in summer 2014. She grew up on a 160cow dairy operation and aspires to pursue a career as a dairy cattle nutritionist. While at MSU, Clemens has been an active member of the MSU Dairy Club, served as a teaching assistant and assisted in collecting and interpreting date for feed efficiency research for Dr. Michael VandeHaar and worked at the MSU Dairy Research and Teaching Center. She also participated in the 2013 MSU Dairy Challenge and attended the 2014 National Dairy Challenge Academy. SAMANTHA MAMAROW

Mamarow is the daughter of Ed and Jane Mamarow. She has been an active member of the MSU Dairy Club and committed numerous hours to helping with the Spartan Spectacular Calf Sale, competed as a member of the clubâ&#x20AC;&#x2122;s dairy quiz bowl team at the 2013 and 2014 Midwest American Dairy Science Association (ADSA) annual meetings, attended the 2013 National ADSA annual meeting and participated with several dairy promotion and education projects. Mamarow competed in the MSU Dairy Challenge and the Midwest Regional Dairy Challenge, as well as on the MSU Dairy Products Evaluation Program team at both regional and national competitions. She was also a member of the 2014 MSU dairy cattle judging team.

Spaans, the daughter of Dick and Julie Spaans, also participated in the Dairy Husbandry and Environmental Stewardship study abroad program to the Netherlands, Belgium and Germany in summer 2014. Her extracurricular activities have included serving on the executive board and as the recognition banquet committee chairperson for the MSU Block and Bridle Club, competing on the MSU Meats and Livestock Judging teams and participating in the MSU Dairy Challenge for the past three years. Spaans has also worked as an undergraduate research assistant with dairy nutrition research projects and remains active in local 4-H programming.

Messenger | April 2015

KATELYNNE SPAANS

Archie Studer Scholarship: Kelly Raterink

Velmar Green Scholarship: Bradley Cole

Kelly Raterink of Zeeland, Mich., was chosen as the 201415 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.

Bradley Cole of Bancroft, Mich., was chosen as the

Raterink, an MSU animal science sophomore in the Production Animal Scholars Program, is the daughter of Dennis and Brenda Raterink. Her plans include being accepted into the MSU College of Veterinary Science and becoming a large animal veterinarian. She was an active member of her church youth group, the National Honor Society and served as president of the Ottawa County 4-H Teen Club, was an Ottawa County 4-H Council board member and elected to the Michigan Junior Holstein Association executive board of directors. Raterink works as a dairy farm laborer on her family’s 80-cow Holstein operation and is the manager of her own market lamb business, Ba Ba Acres Club Lambs, since 2009.

to a second-year student in the MSU Institute of Agricultural

At MSU, Raterink is an active member of the MSU Dairy Club and the MSU Block and Bridle Club. She competed on the Michigan 4-H dairy cattle judging team and placed among the top 20 individuals overall at all three major judging contests.

2014-15 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 Technology dairy management certificate program and Cole is the fourth scholarship recipient. Cole is the son of Jeff and Cheryl Cole and is interested in returning to his family’s 3,500-acre cash crop and 650-cow dairy operation after graduation. While at MSU, Cole completed an internship on a large-scale Texas dairy in 2014. He was an 11-year 4-H member and past president of his 4-H club. Cole was chapter president with Durand FFA, the vice president for Region IV FFA and earned both his state and American FFA degrees. He is a member of the Farmhouse Fraternity at MSU. 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.

Michigan Dairy Memorial and Scholarship Foundation When the occasion suggests flowers, consider a living, growing tribute. Make a contribution to the Michigan Dairy Memorial and Scholarship Foundation, where the earnings provide scholarships to worthy students in dairy industry-related fields.

Messenger | April 2015

MAKE CHECKS PAYABLE TO: Michigan State University

DESIGNATE Michigan Dairy Memorial and Scholarship Foundation (A10901) MAIL TO: Dr. Miriam Weber Nielsen, Department of Animal Science; Michigan State University, 1250 Anthony Hall, 474 S. Shaw Lane, East Lansing, MI 48824-1225

Jared Lyzenga of Bryon Center, Mich., has been chosen as the 2014-15 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. Lyzenga, the son of Dave and Michelle Lyzenga, graduated from MSU with a bachelor’s of animal science degree in production medicine in May 2013, and is on schedule 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 and awarded a silver medal from the American Dairy Science Association for outstanding scholastic and leadership achievements. As a student, Lyzenga was employed by the MSU Dairy Cattle Teaching and Research Center as an animal caretaker, helped conduct feed efficiency research studies for Dr. Michael VandeHaar and participated in the study abroad program, “Dairy Husbandry and Environmental Stewardship in the Netherlands and Belgium” in 2012. He completed an internship with Zoetis in spring 2014 and has worked on Trierweiler Dairy Inc. since spring 2013. 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 Cooperator and chosen as the MSU Dairy Farmer of the Year.

Donald and Valera Murray Scholarship: Samantha Mamarow Samantha Mamarow of Saline, Mich., was chosen as the 2014-15 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. Mamarow, the daughter of Ed and Jane Mamarow. She’s currently a senior pursuing a major in animal science and is on schedule to graduate in May. At MSU, Mamarow has been an active member of the MSU Dairy Club and committed numerous hours to helping with the Spartan Spectacular Calf Sale, competed as a member of the Club’s dairy quiz bowl team at the 2013 and 2014 Midwest American Dairy Science Association (ADSA) annual meetings, attended the 2013 National ADSA annual meeting and participated with several dairy promotion and education projects. She competed in the MSU Dairy Challenge and the Midwest Regional Dairy Challenge as well as on the MSU Dairy Products Evaluation Program team at both regional and national competitions. Mamarow was also a member of the 2014 MSU dairy cattle judging team. The Donald and Valera Murray endowed scholarship was created in 2007 to recognize Dr. Murray’s leadership role in establishing the Michigan Dairy Memorial and Scholarship Foundation. He guided the foundation and served as its secretary from its beginnings in 1957 until he retired in 1972.

Mark Your Calendar! September 27, 2015: Deadline for freshman, Ag Tech and vet student scholarship applications February 28, 2016: Deadline for scholarship applications (first-time and renewal applications for 4-year students) For application or more information about MDMSF Scholarships, visit http://www.ans. msu.edu and click on the “students” link.

Messenger | April 2015

Harold and Lillian Gremel Scholarship: Jared Lyzenga

Nick Bellows Scholarship: Megan Bush Megan Bush of Swartz Creek, Mich., was chosen as the 2014-15 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 daughter of George Bush and Elizabeth Fontenot. She’s interested in one day attaining a career in agricultural marketing or communications or dairy-related sales. Bush is a senior majoring in agribusiness management and expects to graduate in Dec. 2015. At MSU, Bush has been an active member of the MSU Dairy

Club and served as the organization’s second vice-president, College of Agriculture and Natural Resources Student Senate representative and co-chairperson of the club’s Spartan Spectacular Calf Sale. 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. In this contest, Bush finished second place overall, fourth place in placing points only and fifth place in oral reasons. The team earned an invitation to travel to Europe to participate in an International Livestock Judging Tour in 2013, and Bush was a member of the highest placing dairy judging contest pair at the 2013 Royal Highland Show in Edinburgh, Scotland. She was one of two senior Michigan Dairy Ambassadors for 2014 and served as secretary of the Michigan Junior Holstein Association. Bush has been a resident assistant in Wilson Hall on the MSU campus for two years, was employed by Brody Culinary Services and as the web content editor and manager for the Michigan 4-H and Youth Dairy Program website and completed an internship in summer 2014 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 organization’s CEO.

2015 MMPA Hauler Meetings MMPA milk haulers are invited to attend the annual hauler meeting closest to their hauling operation. 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 co-op and industry updates.

Messenger | April 2015

Service awards will be presented at each meeting recognizing those contract haulers who have worked with the co-op for 10-45 years.

Tues., April 14 Riverwood Recreation Center, Mt. Pleasant Thurs., April 16 English Hills Golf and Banquet, Grand Rapids Tues., April 21 Gene Davis & Sons Banquet Center, Jackson Thurs., April 23 Tony M’s Restaurant and Lounge, Owosso

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 11 at the Chip-In Island Resort and Casino, where the social hour will begin at 6:45 p.m. EST and dinner will follow at 7:30 p.m. EST.

Tues., April 28 Woodland Hills Golf Club, Sandusky

Remember to personally thank your hauler for all their hard work over the past year!

Tues., May 12 B J’s Restaurant, Gaylord

Mon., May 11 Chip-In Island Resort & Casino, Harris

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99th Annual Delegate Meeting Messenger | April 2015

The 99th Annual Delegate Meeting of the Michigan Milk Producers Association (MMPA) was held on March 19 at the Lansing Center in Lansing, Mich. Business conducted by the delegates included the reelection of Mark Halbert, of Battle Creek, Mich., to an at-large position on the board of directors and adoption of the 2015 MMPA resolutions.

MPA President Ken Nobis emphasized the cooperative’s commitment to processing the growing member milk supply, saying, “Our members have invested nearly $100 million in the last five years in dairy processing that has brought increased capacity to our plants, added value to our members’ milk and created jobs for the community. However, we are not finished with expansion as we move forward into 2015 because we see continued production growth by our members and growing global markets.” General Manager Joe Diglio discussed changes taking place in the industry and cooperative. He stressed the importance of working together with other cooperatives and our customers to manage the region’s large milk production growth. “All dairy industry partners must find a way to work together to share equitably and provide dairy producers within the area an opportunity to capture value. I believe cooperatives can and will work through the challenges that we face today to develop a more unified approach in handling market conditions as they evolve,” Diglio said. Also in attendance at the meeting, National Milk Producers Federation Vice President of Economic Policy and Market Research Peter Vitaliano relayed the 2015 price outlook. “Looking at the futures market, as well as projections for milk production, exports and domestic consumption, 2015 isn’t going to be anywhere close to the record milk prices of 2014. But it’s also not going to be anywhere near as disastrous as 2009. Right now, it looks like dairy producer margins will be somewhat better than they averaged during 2011-2013. The outlook will definitely improve when the major dairy-importing countries around the world return to their normal levels of buying dairy products on the world market, which most analysts expect to happen later this year,” he said.

MMPA Treasurer Mark Halbert presented the financial status of the cooperative, reporting a net savings in fiscal year 2014 of $6 million. Halbert also illustrated the strength of MMPA in the marketplace and the value returned to members over the past year in the form of premium payments. Nobis recognized 58 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. The 2014 District Outstanding Young Dairy Cooperators (OYDC) were also honored at the meeting, including Brian and Carrie Preston, of Quincy, who were officially recognized as MMPA’s 2014 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 2014 and 2013 among MMPA’s over 1,200 farms.

1 A video introduced each of the 2014 MMPA District OYDCs as they were recognized onstage during the 99th Annual MMPA Delegate Meeting.

2. MMPA President Ken Nobis presided over the afternoon business session as delegates reviewed and approved over 80 resolutions for the coming year. 3. Delegate and Resolutions Committee Chairman Carlton Evans offered comments during the business session. 4. 2014 MMPA OYDC Brian and Carrie Preston (left) and runners-up Ken and Kristen Sparks (right) were recognized by MMPA Vice President Bob Kran and President Ken Nobis.

5. Elaine and Jackie Jahfeston of Baraga (center) were recognized as the highest quality MMPA producer of 2014. MMPA Director of Member Services Dean Letter, Member Representative Frank Brazeau and President Ken Nobis (left to right) presented the award. 6. MMPA member Steve Foley discussed a resolution on the delegate floor during the afternoon session.

8. National Milk Producers Federationâ&#x20AC;&#x2122;s Peter Vitaliano offered a market update and price outlook to MMPA members in attendance.

9. Marv Rubingh offered an amendment to the delegate body during the proceedings.

Messenger | April 2015

7. Raymond Jacobs and Eric Bergdolt served as delegates from District 6 and 7, respectively.

MMPA Recognizes 35-Year Members

Fifty-eight MMPA members were recognized as 35-year members at the 99th Annual MMPA State Delegate Meeting on March 19, 2015. 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.

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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 1980, when these members joined MMPA, the average milk price was just $12.55 per hundredweight; in fiscal year 2014, the average price was $23.82 per hundredweight. There were 4,859 MMPA members in 1980 who marketed a total of 3.26 billion pounds of milk. Today, MMPA has approximately 2,000 members and marketed over 4.44 billion pounds of milk in the 2014 fiscal year. Most notably, the average producer shipped 684,528 pounds of milk in 1980 compared to the average member’s shipment of nearly 3.6 million pounds of milk last year.

Adrian Local Gary Stout Alma Local Jerry Emmons Edmun Koutz Martin Koutz Jon Oberlin Curtis Oberlin Eric Oberlin Richard Walkington Blossomland Local William Gamble Clare-Mt. Pleasant Local Erma Kleinhardt Richard Kleinhardt Timothy Kleinhardt Jerry Varner Constantine Local Clyde Miller Evart Local Roger Aris Duane & Janet Molhoek Flint Local Kenneth Kern Frankenmuth Local Randy Keinath Laurence Schumacher William Schumacher Hillman Local Edward McKinnon Patrick & Laurie Purol Galen Schalk Hillsdale-Litchfield Local Douglas Smith Mark Smith

Kalamazoo Local Ralph Fusco Charles Wamhoff Lansing Local Eric Sederlund Livingston Charter Local Gordon Kingsley Mid-Michigan Local Richard Scriba Larry Simon Mid-Sanilac Local Mark Draher John Szymanski, Sr. Mid-Thumb Local Robert Blumerich William Blumerich Mark Falker Robert Gleason David Spencer James Spencer Muskegon Local Robert Herremans Ralph Lundberg Owosso Local Edward Braid Thomas Braid Matthew Dutcher David Reed Dennis Reed Kenneth Reed Martin Reed Patrick Reed Stephen Reed Saline-Ann Arbor Local Edward Mamarow, Jr.

Huron Local Alvin Gnagey

Upstate Local Ronald Schaub

Ingham County Local Michael Curtis Larry Steffey

West Michigan Local Lynn Huff Philip Kuyers

Jackson County Plus Local Rick Surbrook

Some of the 35-year members honored at the MMPA Annual Delegate Meeting are pictured on this page, including (top to bottom): Mark and Robin Falker, Richard and Debbie Walkington, Phillip and Pam Kuyers, Duane and Janet Molhoek and Jerry Emmons.

General Manager’s Report to the Delegates Progress Two Decades in the Making

One day a stranger got stuck, and Leroy pulled him out. The person asked, “What do I owe you?” Leroy said, “$2.” The person responded, “At that price, I’m sure you’re making a killing pulling people out day and night!” Leroy responded, “No, just during the day. At night I’m hauling water down here.”

Besides the Uncle Leroy story told at the 1992 annual meeting, another significant event took place at that meeting. Ken Nobis was a newly elected director at large. There were some key takeaways from that meeting. Velmar Green, the association’s treasurer, reported that our total assets were $95 million. Today our assets total $203 million. Our working capital was just over $10 million, while today it stands at $33 million. We marketed 2.93 billion pounds of milk back then. Today we market 4.4 billion pounds of member milk. Our total fixed assets in place to service the milk production were $25.3 million in 1991; today we have approximately $99 million in assets. Member equity was $41 million in 1991, and today it is around $63 million.

Well, I don’t have an Uncle Leroy. But being Italian, I do have a Godfather Jimmie!

These statistics represent growth and financial prudence. John Dilland was instrumental in

MMPA General Manager Joe Diglio addressed the annual meeting attendees, comparing the cooperative’s performance when he began his MMPA tenure in 1991 to its current position.

leading that charge years ago. He helped me understand the cooperative structure and how to service the member growth by utilizing unique financing tools available to memberowner cooperatives. We have some debt today, but it has allowed us to make investments in our plants. We are recognizing the benefits of having a more diversified product portfolio as well as the opportunity to service the growing milk supply. While the majority of our products are subject to commodity prices, we must remember that value is being extracted from the market in spite of volatile market conditions. We live in a global economy where markets are impacted by anything newsworthy. I think it is fair to say that we were all pleased with the milk price received last year. And we understand last year was just that, last year. Another challenge has arrived. Everyone knows high prices lead to more milk production, and we are actively engaged in pursuing additional outlets for the milk growth. While I cannot share with you all of the options we have and continue to explore, I can say we are focused on providing value for the present and future. It is our goal to return value into the next century of existence. We will carefully consider what investment will provide us with the greatest return.

Messenger | April 2015

As I reflect on my time at MMPA, I can recall my first annual state delegate meeting. It was 1992 and Walt Wosje was the general manager. For those of you who know Walt, he’s a family man who always spoke very highly of his Uncle Leroy. At that meeting, he told us a story about how Uncle Leroy lived off of a dirt road, and at the end of his driveway there was a low spot where cars would get stuck. Uncle Leroy would then come out with a team of horses and help pull them out. If his uncle knew the person stuck, he would charge them $1. If he didn’t, he would charge them $2.

Plant Expansions: Past, Present and Future As we talk about future expansion, we cannot forget the many steps we have taken to address our growth through the years. Starting with our most recent project, completing the reverse osmosis project at our Constantine plant. This project started early in July 2014 and was completed by December 17, an amazing accomplishment. It was a testament on how cooperatives can work together to accomplish something that benefits the whole system. This investment allows both organizations to consolidate three loads of farm milk into one load of valuable solids.

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Our dedicated team of employees coupled with the expertise and resources of Foremost Farms USA helped us add 1 million pounds of capacity to our existing plant. Our employees worked diligently to make this a successful project and understood the importance of completing this project on a tight deadline. Led by Dave Davis, the plant manager, the Constantine team is a great example of how resources can come together and be successful when working collaboratively for the benefit of our member-owners.

The next major project this past year was the butter churn expansion at our Ovid plant. By increasing our butter production capacity, we are able to produce more quality products that can service a growing market. This new investment will produce over 17,000 pounds of butter an hour, tripling our previous capacity. Having the ability to handle all of the cream separated from the milk received at Ovid limits our

MMPA General Manager Joe Diglio talks with a group of District 1 delegates before the afternoon session of the MMPA Annual State Delegate Meeting.

exposure to distressed pricing when the market is saturated with excess milk. You may not be familiar with all of the Ovid employees, however, they are an instrumental part of successfully processing your milk efficiently. With the recent addition of Colt Johnson as plant manager, along with the talented existing leadership staff in place, the plant has never been more impressive. I can tell you firsthand this team makes every effort to address whatever issue it faces as quickly as possible. When they’re continuously at full capacity, one small glitch (whether internally or externally) can create challenges throughout the entire system. The MMPA Ovid team is dedicated to keeping the milk flowing through the plant to help accommodate the seemingly endless stream of member supply.

Safe Quality Foods Level 2 Certification In addition to the plant projects completed during the year, Amandeep Dhillon, our director of quality, led the charge of certifying both plants under the requirements of Safe Quality Foods (SQF) Level 2. SQF is an industry standard many of our customers are seeking from their suppliers.

Some of the reasoning behind MMPA’s SQF compliance are: trust, consistency, credibility, confidence and enhanced safeguards. While we believe we’ve been meeting these criteria all along, we understand the importance of consumer confidence. Our customers are important to us and working with them to help achieve a safe and quality product on a consistent basis helps return value to our member-owners.

MMPA Field Staff: Ensuring Milk Quality and Marketability In addition to these accomplishments, our member representative team has been busy enrolling members into the National Dairy Farmers Assuring Responsible Management (FARM) program. The FARM program is an industry program that helps promote the correct image of the farming community. Consumers, for the most part, are removed from any connection to our dairy farms, and they want guarantees animals are treated correctly. The video images of animal mistreatment on social media and newscasts can mislead consumers who may think the videos portray common practices on our farms today. While we realize the videos

portray rogue occurrences, these images can persist in consumers’ minds, putting pressure on retailers to guarantee the milk they are purchasing is coming from a farm where the animals are treated humanely. Ninety-one percent of our milk supply is currently enrolled in the program, leaving just over 300 farms remaining.

That doesn’t happen by accident, and it shows how committed the entire team is to you, our member owners. I cannot possibly acknowledge all of the examples that demonstrated going beyond the call of duty. While tough decisions were made, we all believe we are more cohesive and engaged in moving this cooperative forward.

communication that we embrace or the ability to market your milk effectively, we are working for you. Let’s remember what that small group of Michigan dairy farmers envisioned back in 1916: a reliable market for their milk. I believe we have accomplished that for 99 years and will look to continue that into the next century of existence.

Along with the daily responsibilities of tending to member needs, our Member Services Department is one of the reasons our members produce such great quality milk. The Member Services team continues to help address the many changes the industry is facing and is always willing to help members produce and receive the most value possible. Whether it’s visiting farms, ordering supplies or providing our members with the latest communication on market conditions, these individuals add value far beyond the credit they receive. Because of efforts like this, MMPA continues to be known as a true service-oriented cooperative. Our member reps are top notch and a true extension of the cooperative in the field.

Together Toward Tomorrow

We will continue to investigate what moves we will need to make to accommodate growth and will not just focus on short-term solutions. The cooperative model works and is a valuable business structure that provides many opportunities not available to other companies. We must recognize that as an industry and focus on how we can best collaborate and address the changing landscape together, rather than individually.

This past year we experienced change that presented different challenges. I can attest that although some difficult decisions were made this past year, those working on your behalf didn’t miss a beat. In addition to our plant employees and field staff, the employees that operate out of the Novi office conducted themselves in a manner that was unprecedented. Words can’t describe the pride each team member had in making a difficult situation seem like an ordinary day.

We cannot all service this Class I market or expect the growing milk supply to be absorbed through this outlet. We must find a way to work together to share equitably and provide the dairy producers within the area an opportunity to capture value. I believe cooperatives can and will work through the challenges that we face today to develop a more unified approach in handling market conditions as they evolve. This year will be different than last year. Prices have and will continue to retract from all-time highs we just experienced. We must prepare for that. High prices equate to increased production, and increased production places pressures on prices. We are aware of our members’ challenges and want to provide our member owners with as much value as we possibly can. Whether it’s the services we provide, the

There was a saying on a plaque just outside Walt’s office. It read, “We cannot direct the wind, but we can adjust our sails.” And that’s exactly what your MMPA team is doing to navigate the difficult waters ahead. In closing, I want to thank Ken Nobis and the board of directors for having the confidence in me to help move our cooperative into the next century of existence. I would also like to thank the entire employee team that has shown me the support and dedication needed through our transition and towards our goals. I look to earn a similar respect that I have for you, the dairy farmers. I appreciate your tireless efforts providing the food that feeds the world. MMPA isn’t one person; it is a team of people who aspire to accomplish a unified object. That objective is “to market our members’ milk to the greatest advantage possible” while being together toward tomorrow.

Messenger | April 2015

Overcoming Challenges as a Team

We have spoken about the dramatic increase in milk production that we continue to recognize monthly. We aren’t alone. Many of our industry partners have faced similar challenges, leading to unfavorable conditions in the market. As you know, the Class I market continues to be a hot topic of discussion. This particular market hasn’t demonstrated the similar growth like we have seen in other areas of dairy.

Current Resolutions Adopted at the Annual MMPA State Delegate Meeting on March 19, 2015

Milk Pricing and Market Regulation C-1. 2014 Farm Bill We applaud Congress for passing a longawaited 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 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. We encourage all dairy farmers to become familiar with the program and evaluate what level of coverage is best for their operation.

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 pooling concept of over-order pricing and acknowledge its effectiveness when accompanied with equitable sharing of proceeds among all dairy farmers. We urge MMPA to promote the concept of over-order pricing and equitable sharing of over-order proceeds among all dairy farmers in the region.

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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.

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-3. Cooperatives Working Together

C-5. Dairy Management Inc.

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.

While we are encouraged with some of the current milk promotion initiatives, we know dairy consumption is continuing to decline. We are concerned about the direction and priorities of Dairy Management Inc. (DMI). We urge the DMI board of directors to refocus their priorities and return to DMI’s primary mission: to increases sales and demand for dairy products and maximize value returned to dairy farmers. We also urge greater accountability and transparency in DMI finances.

Furthermore, we urge NMPF to renew and utilize the program to its fullest potential to help provide long-term stability for the dairy industry. We are in favor of the possibility of increasing our financial support to the CWT program.

C-6. 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-7. 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-8. 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 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.

C-9. MSU College of Agriculture and Natural Resources We applaud Dr. Fred Poston for his leadership 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 scientifically-sound technology used in production of food.

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.

C-10. 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-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 carefullynegotiated trade agreements offering the prospect of net benefits to U.S. dairy producers. We urge Congress to reauthorize the Trade Promotion Authority (TPA) which helps facilitate the negotiation and implementation of U.S. trade agreements. 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: more open U.S.-Canada and U.S. –Japan dairy trade; strong and enforced sanitary & phytosanitary (SPS) commitments; preservation of key common food names; and meaningful measures to address the level of market concentration by one firm in New Zealand’s dairy sector. 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 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.

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. We are opposed to any efforts to define the production of wind energy as a farming practice under Michigan’s Right-to-Farm Act.

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.

Messenger | April 2015

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.

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.

Messenger | April 2015

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 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.

We oppose:

C-21. Air Quality

C-24. Applied Research Funding

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.

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.

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. • allowing farmers and other small businesses to expense under Section 179 the annual amount of $500,000. We applaud Congress for extending the Section 179 deduction for 2014 at the maximum deduction level of $500,000. We support legislative efforts to maintain the $500,000 deduction level as the minimum deduction level and for it to be indexed for inflation. • keeping the stepped up tax basis now in effect on the assets heirs receive from estates. • the elimination of the Alternative Minimum Tax. • that any Michigan tax change be broad based and that business to business transactions be exempt from tax, including sales tax.

• any effort to increase the state estate tax. • any new or increased permits or fees imposed by the state, which result in an inequitable burden on the agricultural community. • any increase in the state income tax rate and any changes to the current property tax system that would adversely affect farmers without a vote of the affected property owners. • a tax or fee that negatively affects agriculture such as a tax on gross receipts, personal property or assets.

C-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.

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. Michigan Alliance for Animal Agriculture We support the Michigan Alliance for Animal Agriculture (M-AAA) and their efforts developing a proposal to establish a statefunded animal ag research program modeled after the successful Project GREEEN that addresses plant-based research programs. The M-AAA consists of representatives from various animal agriculture stakeholder organizations, Michigan Department of Agriculture and Rural Development, MSU Extension, MSU College of Veterinary Medicine, MSU Department of Animal Science, MSU AgBio Research and MSU College of Agriculture and Natural Resources. The group has developed the Michigan Animal Agriculture Innovation and Workforce Development Initiative, which focuses on ensuring the sustainability of the state’s animal agriculture sector through a targeted annual investment in research, extension and workforce development. We encourage state legislators to support funding of the proposed program.

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: 1. 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. 2. A provision that allows those currently employed, or with recent history in the U.S., to earn the right to work here legally. 3. 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-27. 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-28. Integrity of Milk Labeling We strongly oppose the use of the label “milk” on products made from plants or juice. The use of “milk” on these types of products confuses the consumer. We urge National Milk Producers Federation, United Dairy Industry Association, and the National Dairy Promotion and Research Board to defend and promote the integrity of the milk label and limit its use as defined in the Federal Standards of Identity.

C-29. 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, two-year terms for the Michigan House of Representatives and three, four-year terms for the Michigan Senate.

C-30. 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 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.

C-31. 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-32. 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-33. 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-34. 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- 35. 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-36. Federal Truck Weight Legislation We support federal truck weight legislation that would allow for 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. The legislation 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-37. Electricity Supply The modern dairy industry is electricity intensive. Consider: “…electricity itself accounts for 2 to 5% of a dairy farm’s production costs… which is equivalent to 700-900 kWh per cow or 3.5-4.5 kWh per hundredweight (cwt) of milk produced, annually…” -Farm Energy Management Handbook, DATCP

Whether on the farm or in our production facilities, the dairy industry is wholly dependent on a reliable source of electricity. Unlike other industries in the state, ours is not concentrated in industrial zones. Our farms are scattered throughout the state, many at the very ends of the electric grid. Dairy farmers’ demand for electricity is relentless and persists throughout the 24-hour day. Like all industry, Michigan dairy farmers need access to low cost electricity that can give local producers a regionally competitive advantage. We therefore urge the MPSC, the state Legislature and the Office of the Governor to promote energy policy that favors the lowest cost sources of dispatchable generation with the highest capacity value.

Messenger | April 2015

C-26. Immigration Reform

Animal Health and Milk Quality C-38. Animal Identification System We applaud Michigan’s efforts to require mandatory cattle identification. The mandatory requirement is important to help Michigan achieve Bovine Tuberculosis (TB)-free status for all Michigan counties while helping to maintain the TB-Free status for the 79 counties and Upper Peninsula that have been designated as Bovine TB-free. We urge strict enforcement of the mandatory cattle identification requirement and strong penalties for those who violate the requirement. We urge the USDA to implement a mandatory RFID animal identification program 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. Furthermore, we urge slaughter houses to utilize electronic ID readers in conjunction with back tags to identify all animals.

C-39. Bovine Tuberculosis

Messenger | April 2015

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 Antrim, Charlevoix, Cheboygan, Crawford, Emmet, Otsego and Presque Isle counties. Seventynine Michigan counties are now designated as Bovine TB Free. This designation 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 nondetection in both the wild and domesticated animal populations in northern Michigan.

We recognize the stringent management practices many of our members have put in place in order to minimize the transmission of this disease. We believe their efforts, including the adoption of Wildlife Risk Mitigation Plans, helped expedite our TB-Free status in other areas of the state and that Wildlife Risk Mitigation practices should be implemented by all cattle producers in northern Michigan. 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.

C-42. Animal Care

We urge the MDNR to increase their efforts in managing deer and wildlife, to help further eliminate Bovine TB. We urge the MDNR to make disease control permits available to any livestock producer that shows evidence of deer to cattle or deer to feed interaction and to farmers where TB has been detected in the deer herd in the past.

We support the National Dairy FARM Program: Farmers Assuring Responsible Management developed to bolster consumer trust and confidence in the U.S. dairy industry and demonstrate the industry’s commitment to the highest levels of animal care and quality assurance. The National Dairy FARM program demonstrates the dairy industry’s awareness of the need to communicate its commitment to animal well-being to customers and consumers.

We also believe that the changes necessary to reduce Bovine TB to the point of nondetection in the wild and domestic animal populations must be permanent changes in order to prevent resurgence of the disease. We encourage USDA to seek additional funding so that eradication goals can be achieved. We also support: 1. Payment of fair market value for animals that need to be destroyed. 2. State funding of all required identification and testing. 3. An appeals process as part of the federal indemnity program that includes specifics of what constitutes a valid appeal, defined timeframes for filing and responding to an appeal and opportunity for an onsite appraisal. 4. A limit on maximum federal indemnity allowable by animal and by herd, but also a provision that allows the state to provide additional payment to reach the full appraised value of an animal without penalty. 5. Increased research toward the control and prevention of Bovine TB. 6. Collaborative efforts between state and federal regulatory agencies, educational institutions and agriculture industry organizations in working toward the eradication of Bovine TB. 7. We support a voluntary herd buyout plan as a tool of achieving Bovine TB-Free status.

C-40. Antler Point Restrictions We strongly oppose the use of mandatory antler point restrictions (APR) that would only allow you to shoot anterlered deer if it has the minimum number of points on one side. We are very concerned with the adverse effects of an APR by allowing deer numbers to increase, which could negatively impact the agriculture industry.

C-41. Doe Permits In an effort to control the deer population it is imperative to allow a larger number of doe permits to be issued at a reduced rate, especially in higher population areas of the state. We encourage the DNR to reduce the costs of deer licenses by half of current levels.

We believe in and support the humane treatment of animals. We recognize the importance of maintaining a sound animal care program on our farms.

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 policymaking circles, we strongly recommend a voluntary milk check deduction by each member at the rate of $1 per cow per year.

2015 MMPA Advisory Committee Elections District 1

If forage is worth making, it is worth protecting.

Position 3: Jeff Alexander, Hanover

More than just an inoculant.

District 2

• Control butyric acid

Position 1: Art Riske, Hanover Position 2: Clark Emmons, Fayette, OH

Position 1: Richard Thomas, Middlebury, IN Position 2: Don Bever, Delton Position 3: Jim Droscha, Charlotte

District 3 Position 1: Burke Larsen, Scottville Position 2: Bill Stakenas, Freesoil Position 3: Gary Nelsen, Grant

District 4 Position 1: Dave Folkersma, Rudyard

• Increase rate of NDFd in rumen • Gain 5% more silage at feedout • Higher starch retention • 4-day fermentation

Position 2: Steve Brock, Daggett Position 3: Ron Lucas, Posen

District 5 Position 1: Tom Jeppesen, Stanton Position 2: Bruce Benthem, McBain Position 3: Amy Martin, Leroy

District 6

Silage Pro®

American Farm Products INC. www.afpltd.net

American Farm Products

Position 1: Kris Wardin, St. Johns

Arlin Koglin 989-553-3370

Position 2: Aaron Gasper, Lowell

Available through MMPA Merchandise

Position 3: Steve Thelen, Fowler

District 7 Position 1: Eric Bergdolt, Vassar Position 3: Rod Fowler, Chesaning

District 8

Marketing MMPA members’ milk to the greatest advantage possible.

Position 1: Mike Bender, Croswell Position 2: Scott Lamb, Jeddo Position 3: Mike Noll, Croswell

LIKE us on Facebook! Visit https://www.facebook.com/MichiganMilkProducersAssociation

Messenger | April 2015

Position 2: Steve Foley, Millington

Standing Resolutions Adopted at the Annual MMPA State Delegate Meeting on March 19, 2015 S-1. Farmer Cooperatives

S-5. MMPA Leadership Potential

S-11. Michigan Beef Industry Commission

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 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.

We support the Michigan Beef Industry Commission and the National Beef Checkoff Program of which over 40 percent of the Michigan funds come from dairy beef and veal in Michigan. Therefore, we support the Michigan Beef Industry Commission in directing dairy farmers’ check-off dollars to promote beef through its consumer education, industry information, and a more aggressive beef promotion program.

We will continue to strongly resist efforts in private or government sectors to weaken or destroy farmer cooperatives. We are determined that present tax regulations, which result in a single taxing of farmer cooperatives’ overages allocated to members, must be maintained.

S-2. Dairy Product Identity We pledge continued support for the work of the National Milk Producers Federation, United Dairy Industry Association, National Dairy Promotion & Research Board, and other responsible groups that defend and promote the integrity of “Real” dairy products.

S-3. Agricultural Public Affairs – Dairy Communicators We commend the corps of the MMPA Dairy Communicators for their efforts to improve the position of dairy farmers. We recognize the growing need for regular communication with legislators, and news media; for local promotion and consumer education activities geared to the milk consuming public. We re-emphasize our continuing belief that all news media must be made aware of, and have access to, upto-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.

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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-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-12. Industry Relations With the declining number of producers in the agricultural community, it behooves all producers to stand together when confronting agricultural issues. We are encouraged by recent movement to work toward common goals and encourage further cooperation and unity in dealing with future beef and dairy legislation.

S-13. Michigan Agriculture Commission We recognize the value of the Michigan Department of Agriculture and Rural Development having its operating policy determined by the Michigan Agriculture Commission. We urge the Governor to ensure that animal agriculture interests are adequately represented and to seek input from the agriculture industry when opportunities arise to fill vacancies on the Michigan Agriculture Commission. Recognizing that the dairy industry represents 25 percent of Michigan’s agricultural income, and is a major user of Michigan Department of Agriculture and Rural Development services, we encourage the appointment of an individual directly involved in the dairy industry. Further, we strongly urge that steps be taken to allow the Commission to approve the rules and regulations promulgated by the Michigan Department of Agriculture and Rural Development (MDARD).

S-14. Natural Resources Commission We encourage the Governor to maintain a person with an agricultural background on the Natural Resources Commission.

S-15. Sponsoring of Events Many times MMPA is asked to sponsor many events such as dinners, special events, etc. We support such sponsorship, however, when MMPA sponsors these events, one stipulation must be made to the group that wants our sponsorship. The group that wants our sponsorship must agree to serve “Real” dairy products at the event.

S-16. Residue Prevention Quality Assurance/ HAACP Programs Recognizing the importance of producing a safe, residue-free product, we encourage participation in the Milk and Dairy Beef Quality Assurance Program or a similar HAACP-based program by every MMPA member. These programs enable producers to carefully evaluate their production and management practices to enhance production of residue-free milk and meat.

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 market-building programs financed by producer investment. We endorse funding of these programs which include the National Dairy Board (NDB) and United Dairy Industry Association (UDIA), at levels that ensure continued effectiveness.

S-23. Truck Weights We oppose any efforts by the state legislature to reduce Michigan’s gross vehicle weight limits. Lowering truck weights would result in higher energy, environmental and transportation costs, negatively affecting the income of dairy farmers and ultimately impacting the prices consumers pay for dairy products. Studies have shown that individual axle loads and speed are more important than total gross vehicle weight when determining factors that affect road damage.

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 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 youthdirected 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 well-being of the state’s economy, we urge that these programs be fully funded, on a continuing basis, at levels to ensure their effectiveness and state accreditation. That is particularly important in small rural school districts located in areas that often must compete for funds with large urban school districts.

S-26. United States Dairy Export Council We support and encourage further development of the U.S. Dairy Export Council (USDEC) to increase net exports of U.S. dairy products. With the continued productivity of U.S. dairy farms, we will have an even greater

reliance on world markets for our products. We therefore need to continue to effectively work to develop international markets through the USDEC.

S-27. Low Voltage (Brown Outs) We urge all electrical utility companies maintain and improve their delivery systems to ensure that the expensive problem of low voltage (brown outs) ceases to exist.

S-28. Cloned Animal Products We are reassured that the Food and Drug Administration (FDA) review finds no health or safety issues with food from cloned animals. We endorse the U.S. Department of Agriculture’s request that cloning technology providers, and the owners of existing cloned livestock continue to observe the moratorium on the commercial marketing of cloned animal products. This will allow a further review of the economic and trade issues regarding the new technology. We further oppose labeling which would differentiate between milk and meat from cloned and conventionally bred animals.

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 on-farm situations. We strongly urge utility companies to fully fund their Agricultural Service Departments so there are enough personnel to routinely visit dairy farms and identify and solve stray voltage problems.

Messenger | April 2015

S-17. Public Nutrition Programs

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

Messenger | April 2015

We understand that in any group of livestock, condition may exist where some animals will appear to be in better health and body condition than others due to weather and other external factors. We believe that people not familiar with standard livestock animal care do not have the right—because they think the animal is being abused—to confiscate or have confiscated another person’s livestock from the owner’s property without a judicial review and determination, including notification of the owner, prior to the seizure of animals.

We urge MSU, MDARD and USDA to provide sufficient funding and programs for animal health education, disease monitoring, border inspections and disease eradication that protect the United States livestock industry and ensure continued market access. We further oppose importation of livestock that does not meet import testing requirements as deemed appropriate by the Director of Agriculture and Rural Development, have appropriate quarantine protocols in place, and have an animal I.D. system to track the movement of livestock to prevent the possible spread of disease.

S-34. Chronic Wasting Disease Chronic Wasting Disease (CWD) is a fatal brain disease that attacks the nervous systems of deer and elk, causing chronic weight loss that eventually leads to death. It is not known to be contagious to humans, livestock or other animals. We encourage Federal and State agencies to study, monitor, control and eventually eradicate CWD from the nation’s deer and elk population.

S-35. Raw Milk Consumption We know that according to the Food and Drug Administration and the Centers for Disease Control, consumption of raw milk poses a health risk to humans. We therefore support Michigan’s legal requirement that prohibits the sale of unpasteurized (raw) milk to consumers. All milk intended for direct consumption should be pasteurized as a matter of food safety. Since its introduction over a century ago, pasteurization has been recognized around the world as an essential tool for ensuring that milk and dairy products are safe.

S-36. Michigan Ag Council

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.

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.

S-33. Animal Diseases

S-37. Capper-Volstead Protections

Animal diseases continue to reduce profitability for dairy producers and may impede exports and international market development. Diseases such as Tuberculosis, Brucellosis, and Johne’s Disease and others can significantly increase costs to dairy producers in terms of decreased milk production, loss of animals, and replacement of animals. In an effort to protect the entire livestock industry in the United States from possible occurrence of animal diseases, we recommend a very aggressive enforcement of regulations to limit all imports of livestock and animal by-products. We encourage the continued and increased financial support of research to determine the causative agent, life cycle and possible control of these diseases.

We strongly support the protections provided by the Capper-Volstead Act’s limited antitrust immunity for farmers and their cooperatives. The Capper-Volstead Act gives agricultural producer organizations limited antitrust immunity “in collectively processing, preparing for market, handling and marketing” their products. We urge Congress to support and maintain the protections provided by the Capper-Volstead Act. These protections are as important to farmers and cooperatives today as they were when originally passed in 1922.

S-38. Feral Animals Many farmers and rural residents are very concerned about the increasing population of feral hogs and other destructive wild animals. We need to have every tool or means available to help control these animals. We strongly support the state order that went into effect on October 8, 2011 that declares wild hogs an invasive and prohibited species. The state order is essential to protect Michigan’s agriculture industry from the destructive animals.

S-39. Starling Control Measures Starling populations continue to pose a threat to livestock health and production in dairy herds. Their droppings in feed and bedding areas have known negative effects on livestock health. Starlings glean the expensive, high protein components of dairy feed, reducing herd protein intake and adversely affect milk production. Since birds can travel easily from farm to farm, there is also the potential for disease transmission. We approve USDA’s program for starling control and urge the continuation and expansion of the program. We encourage producers to participate in the program.

S-40. REAL Seal We applaud National Milk Producers Federation for taking over the management of the REAL Seal program. The revitalization of the REAL Seal places a renewed emphasis on highlighting the importance and value of American-made dairy foods. The program will help educate new generations of dairy consumers about the significance of the REAL Seal and promote the good taste, nutritional value and wholesomeness associated with dairy foods and dairy food ingredients made from milk produced in the United States.

S-41. New International Trade Crossing We support the New International Trade Crossing (NITC) project that will construct a second bridge crossing between Detroit, Michigan and Windsor, Ontario. Being able to connect more efficiently to the East Coast through the NITC will help increase the market options available to Michigan’s dairy and agriculture industry.

S-42. 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 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.

Directing Milk Donations to Families Most in Need

Food banks report milk is one of the most-requested, but least donated items. A full 95 percent of food banks say they do not receive enough milk donations to meet their clients’ needs. Put into quantifiable terms, the average food bank client receives only one gallon of milk per year, in contrast to the 68 gallons per person that are nutritionally needed. On the donation side of the equation, most people either don’t think to donate milk to the food bank or don’t have a mechanism by which to donate milk. However, the Great American Milk Drive offers a solution to that problem, as well addressing the food insecurity problem. Brainchild of Milk-Pep, the National Milk Processor Education Program, the Great American Milk Drive is an ongoing program to secure milk for those who need it most but have the least access to it. It creates a direct link between those concerned with hunger and immediate action they can take to help alleviate it in their community. Online donations may be made to regional food banks and zip codedirected to local communities. “Michigan dairy farmers have already taken the initiative with our seasonal Pour it Forward milk donation campaigns where we partner with

Kroger and several food banks to get milk into the hands of those in need,” United Dairy Industry of Michigan (UDIM) CEO Sharon Toth said. “But the Great American Milk Drive gives dairy farmers an ongoing way to parlay into action their food insecurity concerns and commitment to their communities. The Great American Milk Drive is a oneclick, quick online system for monetary donations and the earmarking of milk distribution to Feeding America Network food banks in Michigan. Dairy farmers can personally make donations or encourage other individuals and groups to donate. They can choose to donate $5, $10, $25, $100 or other amount using their credit card or PayPal. The zip code designated during the donation process earmarks milk for the closest food bank to the donor.

At the national level, Jesse Tyler Ferguson of ABC’s “Modern Family” television show has championed the cause of increasing awareness regarding the scarcity of fresh milk in food banks and pledged to help the Great American Milk Drive reach its goal of two million gallons of milk donated to food banks across the country. The national campaign exemplifies “One Nation Nourishing Each Other.” On the local level, dairy farmers can help by spreading the word about The Great American Milk Drive and handing out business-sized informational cards available through UDIM. The cards succinctly outline both the food bank need for milk and how to donate. For cards or additional information, contact Kristy Smith at United Dairy Industry of Michigan: 800-241-MILK.

E MILK HOW TO DONAT

1. online to to www.milklife.com/give and 1.GoGo online www.milklife.com/give and on “DONATE click onclick ‘‘DONATE NOW” NOW” -or -orFrom your cell phonetext textmessage From your cell phone, message “Milk” 27722 “Milk” to 27722 andtoclick on and mGive.org/T click on mGive.org/T 2. Check or type in the amount wouldorlike to in donate 2.you Check type the amount you would like to donate 3. Select payment option 3.Authorize Select payment option 4. transation Hungry families are missing out on 4. Authorize transaction

milk’s essential nutrients. Donate today at www.milklife.com/give

Messenger | April 2015

merica may love dairy, but many American’s don’t have regular access to it. Despite the overall prosperity of the United States, inconsistent access to food to meet nutritional needs continues to be an issue for many. Nationally, food banks serve 37 million people per year. One in six people, one in five children and 12.5 million families struggle with hunger.

MERCHANDISE

Less-Cu You may already know that the warehouse in Mt. Pleasant sells copper sulfate for footbaths, but we also sell a product designed to make its use more efficient and effective. Less-Cu footbath enhancer reduces copper sulfate costs as it increases the effectiveness of your footbath mix as a preventative and conditioning solution for hoof health. It works by making copper sulfate more soluble and reduces the introduction of heavy metal into the environment for a clear, effective solution to hoof conditions. Less-Cu is a unique livestock foot bath cleaning additive for dairy livestock. The cleaning effectiveness of Less-Cu is based on a stabilized quat and phosphoric acid combination and effectively controls the foot bath at ph +5. It can help to reduce the amount of copper sulfate usage by up to 50 percent. All it takes is one-half gallon of Less-Cu per 50 gallon mix to cut copper sulfate usage in half. Use the same bath replenishment frequency, preferably 200-300 cows as with traditional foot bath preventative program. This product is only available in 15 gallon containers. Please feel free to call the warehouse with any questions you may have. You may use our toll free number, 1-877-367-6455 or our new number, 989-317-8370. Stock #

Description

Member Price

5924

Less-Cu 15g

$412.50

1131

Copper Sulfate

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

Messenger | April 2015

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!

$77.44

Order Your MMPA Merchandise through your milk hauler or call: Duane Farmer Supervisor 989-317-8370 Toll Free: 877-367-6455 Orders (Novi): 800-572-5824 then dial 2 Fax: 989-317-8372

PREMIUMS

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: 50,000 or below.................................+55¢/cwt. 51,000-75,000.....................................+50¢/cwt. 76,000-100,000...................................+45¢/cwt. 101,000-125,000................................+40¢/cwt. 126,000-150,000................................+35¢/cwt. 151,000-175,000................................+30¢/cwt. 176,000-200,000................................+25¢/cwt. 201,000-225,000................................+20¢/cwt. 226,000-250,000................................+15¢/cwt. 251,000-300,000................................+00¢/cwt. 301,000-400,000................................- 30¢/cwt. 401,000-500,000..............................-$1.00/cwt. 501,000-600,000..............................-$1.50/cwt. 601,000 and greater.......................-$2.00/cwt. A payment of 5¢/cwt. will be added for each of the following, if the count is equal to or below: • 10,000 Raw Bacteria Count • 20,000 Pre-Incubated (PI) Count

There will be a deduction of 10¢/cwt. for: • Greater than 100,000 Raw Bacteria Count A high raw count deduction will be waived if the producer has received the quality premium the previous three months for raw bacteria count. To qualify for Raw and PI Bacteria Count premiums there must not be any of the following during the month: • Positive drug residue • Abnormal freeze points • High load count shipment or rejected load shipment • #3 or #4 sediment • Raw Bacteria count over 100,000 The count levels for raw and PI will be determined on one test run per month. To qualify for MMPA SCC premiums there must be: • No abnormal freeze points during the month To qualify for MMPA volume premiums there must be: • No abnormal freeze points during the month

• An average somatic cell count of 750,000 or less

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.

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..................................................... $40 - ELISA.................................................. $6 • Johne’s Milk Test - PCR..................................................... $40 - ELISA – cows.................................... $6 - ELISA – tank..................................... $10 • Bovine Leukosis Test - ELISA – cows.................................... $6 - ELISA – tank..................................... $10 • Milk Pregnancy ELISA..................... $4.50 Lab test results by mail: $2/month

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

Chemical, Sanitizer and Teat Dip Contact Information These are service personnel only. Order your Member Merchandise supplies through your hauler.

ECOLAB 24 - Hour Medical Emergency Hotline: 1-800-328-0026 For Service, call the 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 Jeff Timm NW 8665 C.R. M Shawano, WI 54166 612-840-0555

Messenger | April 2015

MMPA Quality Premium Program

FREELINERS

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

Bulls Registered Holstein Bulls: We now have a nice selection of service age bulls, sired by top AI sires. Green Meadow Farms, Elsie, MI. 989-862-4291 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. Reg. 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.

Equipment

Messenger | April 2015

2 Diesel Daewoo irrigation engines with 700 gpm caprari pumps. Aprox. 700 hrs on each. Switched to electric. Excellent condition. $11,000 each. 2 Kubota diesel generators 480v 3 phase 25kw. Used to run pivots. Excellent shape. $5,000 each. John Deere diesel 40kw 3 phase standby generator. 208 240 and 480v. 300 hrs. $8,000. 2 Steiner belt feeders 80ft and 100ft. $1,000 each. 2 patz single chain conveyors. 20ft and 30ft. $1,000 and $200. Silo distributor $200. 989-613-0694.

Luck Now/Penta 330 stationary mixer w/ scale - $1,500. Vermeer 605 round baler, makes 6’x 5’ twine wrapped bales, older model but not used more than 1 cutting per year - $4,500. JD 115 stalk chopper $4,500. Kewanee culti-mulcher, 22’ working width, nice heavy duty finishing tool - $2,500. Chisel plow, 11’ width, 3 pt mount - $1,500. Call Kris @ 989-640-9420. 12-row anhydrous toolbar with flow controller. Will separate. Call 616-218-9350.

Patz 575 feed mixer, nice machine, 25 new knives, $8,000 OBO. Call 260-768-8137 *Would consider trading w/round baler. Case Magnum 270 duals front and rear, $53,700. 231-388-0339. Claas 820, 4 WD, 3900 hours, 13-ft. hay head, $67,300. 231-388-0339. Vermeer 505L round baler, auto tie system, field ready, $4,750. 989-233-5137. Used Jamesway silo unloader parts. International #56 four ow wide corn planter. Delaval pulsators and electronic brain. Antique combination cook stove. Call 269-792-6630 ask for Jim or leave a message.

Dairy Equipment BouMatic start gate with 200 I.D. collars. Call 231-757-2934. Westfalia Separator Milk Vacuum Pump. Oil based, 10 hp motor, ready to go. $1,500. 989-330-3690. 2005 Boumatic Vision double six milking parlor, automatic detachers, low line, 600 gal. bulk tank. Call for more information 989-551-1429.

Dairy Farm Dairy Farm, Cheboygan, Michigan 367.11 acres, which includes 4 year old double 14 parallel parlor. 2,000 gal. bulk tank, 400+ free-stall barn, calf barn, commodity barn, hay barn, maternity barn, shop pole barn. 7 bedroom brick well maintained home. Can be a turnkey operation or farm, cows & equipment can sell separately. We have a lot of feed put up & are still milking. We also rent 670 acres, paying $10 acre to high of $40. Asking $999,000 OBO, for farm only. Call for packet or to chat at 517-202-9421 or 231-625-2036.

Misc. 1st cutting haylage. 989-640-3370. Calf free stalls. 989-640-3370.

Wanted Registered Holsteins. Call Brent at 989-551-0681. Dairymen would like to get a milk check without milking cows. Looking to buy on milk consignment 20-30 head of young fresh dairy cows. Lake Michigan area. 989-588-9854. Dairy cows or close-up bred heifers on milk check assignment. 616-889-0769. Looking for used slurrystore systems, Call or text 231-250-7341.

Freeliner Policy The Freeliners column is open to current MMPA members who wish to advertise—at no charge—goods or services relating directly to their dairy farm operations. • An item submitted will be published for no more than two consecutive months (one month, unless otherwise requested). After that, it will be withdrawn. • It will be published again for no more than two consecutive months only if the member resubmits the item by writing or calling the Novi office. • Reference to a name of a firm or other commercial enterprise with which a member is involved will be deleted, with permission of the member. • If the member does not wish such deletion, he/she may choose to have the item published as a Classified Ad at the regular per-line Classified Ad rate. • Freeliners must be received by the 10th of the month preceding the desired month of publication.

CLASSIFIEDS

Classified Ads ($20 per ad up to six lines) All ads must be received by the 10th of the month before the month of desired publication. Send check or money order for $20 for up to 6 lines with your order. MMPA neither sponsors nor endorses products or services advertised in the Messenger. You may submit your ads by: MAIL:

Classified Ads - Michigan Milk Messenger | P.O. BOX 8002, Novi, MI 48376-8002

EMAIL: Muszynski@mimilk.com FAX: 248-426-3412

OPPERMAN GROOVING: We can fix your scabbled floors. Diamond sawed grooves, no hammering or cracking of concrete. No hoof damage. Call Opperman Grooving Inc., Portland. 517-647-7381. DAVIDSON CEMENT GROOVING, INC: NO water needed. Wider, rougher grooves for better traction. We also offer texturing for your previously grooved floors. Three operators will travel Michigan and other states. No interest payment terms. Est. 1987. Call 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 and provides high quality traction in new & old concrete, fast service. BLUE RIBBON HOOF TRIMMING, LLC. 989-635-1494. FOR SALE: 5000-4000-30002500-2000-1500 OH MUELLER LATE MODEL BULK TANK MILK TANKS, complete, will trade. 800-558-0112. WANTED TO BUY: USED BULK MILK TANKS, 200 gallons & larger, Sunset & Mueller, 800-558-0112.

MICHIGAN CERTIFIED OAT SEED, Spring Barley seed, Roundup Ready II, Liberty Link, and MCIA 2323 soybean seeds. 989-723-1886 or 989-277-1414. FARMERS: ARE YOU LOOKING TO INCREASE YIELDS & QUALITY OF YOUR FORAGES? You can now learn from the experts. Find out what it takes to hit the 300 bu. per acre mark on corn. For free info call 888-266-0014 *8475 FOR SALE: BADGER BARB CLEANER with extra parts. JAMESWAY VOLUMATIC II 16 ft. silo unloader. 810-387-2965.

JUNE CLOVER SEED. 989-723-1886 or 989-277-1414.

REGISTERED HOLSTEIN BULLS OVER 100 SERVICE AGE BULLS FOR YOUR SELECTION! A special herd sire or a truck load of breeder bulls. Ready to go to work on your farm!

• Sired by the top sires from the U.S. and Canada • From our top production cows

GREEN MEADOW FARMS 6400 Hollister Road, Elsie, MI 48831 Phone: 989-862-4291

Messenger | April 2015

www.greenmeadowfarms.com

Concrete Grooving and Texturing

PTO and Automatic Start Generators

Call: Jeff Brisky - Owner Toll Free: 1-800-294-1202

1-800-248-8070 M-40 South Hamilton, MI 49419

Cell: 1-716-353-1137

www.hamiltondist.com

POLICIES

MMPA Policy on Drug Residue in Milk MILK ON FARM – DRUG RESIDUE SUSPECTED

MILK SHIPPED — POSITIVE DRUGS CONFIRMED

If a member suspects milk in the farm bulk tank contains drug residue:

If a member ships milk from the farm and testing by approved laboratory methods show that the milk contained drug residue, the member will be assessed the penalties imposed by the state regulatory agency and be disqualified for raw and PI bacteria count premiums.

1. Call a MMPA member representative to have the milk in the tank tested. A “hold” must be placed on the tank contents until the test results are known.

OR 2. The member can test the milk on the farm. If dumped, the member must be sure to take the stick reading, record the number of pounds of milk and report the information to their 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.

If a loss is incurred by MMPA due to the disposal and/or non-marketability of a load of milk or milk products containing drug residue, then the member responsible will be provided an invoice for the entire value of the loss plus transportation and disposal costs as required by the Pasteurized Milk Ordinance. This invoice may be submitted to the member’s insurance carrier. MMPA must receive settlement on the invoice within 90 days of issuance. If settlement is not made within 90 days, the full amount of the invoice will be deducted from the next milk check unless other settlement arrangements are made. Milk from that member’s farm tank must be tested and found clear of drugs before the next tank of milk can be picked up. A hauler whose entire load sample shows the presence of drugs will be charged the amount of an average shipment on that load if the individual member samples all show negative.

ALL POSITIVE DRUG RESIDUE SHIPMENTS MUST BE REPORTED TO THE ENFORCEMENT AGENCY.

MMPA Milk Quality Policy 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 Mt. Pleasant warehouse. The MMPA member representative will verify the switch has been installed. Reimbursement for the Swingline Safety Switch and the voluntary dump will then be made to the member. The member assumes all liability for losses incurred as a result of shipping poor quality or contaminated milk.

MILK SHIPPED – HIGH BACTERIA COUNT If… 1. a load of milk is received (unloaded) at a dairy processing plant and, 2. a sample from the load has a bacteria count of 300,000 or more and, 3. testing of the individual member samples on that load identifies the member or members having a bacteria count of 300,000 or more, then the member or members involved will be charged the value of one-half of one day’s production** and will be disqualified for raw and PI bacteria count premiums. * The member will only be paid for two (2) voluntary dumps in a rolling 12 month period. ** For members using more than one bulk tank, the assessment will be based on the value of milk in the tank or tanks in violation of the MMPA quality policy.

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 three or more occurances 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.

Messenger | April 2015

QUALITY QUESTIONABLE

MARKET REPORT

Statistical Summary for Milk Marketed in February 2015 Market Statistics - Mideast Federal Order #33 (pounds)

National Trends

% Change

This Month

Year Ago

Total Class 1 Sales

493,758,866

501,543,892

-1.55

Total Class 2 Sales

303,881,918

209,635,058

+44.96

Total Class 3 Sales

512,034,988

406,265,916

+26.03

Total Class 4 Sales

261,124,097

179,288,294

1,570,799,869 31.4%

Total Production Class 1 Utilization

2014 % Change

Production 3,272 3,400 -3.8

Wisconsin

2,207 2,115 +4.3

+45.64

New York

1,063

1,296,733,160

+21.14

Idaho

1,047 1,032 +1.5

38.7%

1,039

+2.3

Pennsylvania 848 831 +2.0 Texas

813 780 +4.2

Michigan

772 716 +7.8

Avg. Daily Production per farm........................................................9,816

Minnesota

734 704 +4.3

Avg. Protein Test.................................................................................. 3.17%

New Mexico

607

Washington

510 498 +2.4

Ohio

421 411 +2.4

Indiana

309 292 +5.8

Total Producers.....................................................................................5,715

Avg. Butterfat Test.............................................................................. 3.85% Avg. Oth Solids Test........................................................................... 5.74% Avg. SCC - MMPA.............................................................................165,000

Component Pricing Information Mideast Federal Order #33 Protein Price /lb................................................................................$2.4051 Butterfat Price /lb.............................................................................$1.8296 Other Solids Price /lb......................................................................$0.3273 Class III Price @ 3.5%......................................................................... $15.46 Prod. Price Diff /cwt. - Mich Mkt......................................................$0.11 Uniform Price @ 3.5%....................................................................... $15.57 SCC Adjustment /cwt /1000...................................................... $0.00077

Messenger | April 2015

2015

California

Mideast Federal Order #33

(million pounds)

AMS Survey Prices Product

Monthly Avg

Cheese /lb............................................................................................ 1.5446 Butter /lb.............................................................................................. 1.6823 Nonfat Dry Milk /lb........................................................................... 1.0308 Dry Whey /lb........................................................................................ 0.5169

630

-3.7

* Total U.S.

15,149

14,892

+1.7

* U.S Y-T-D

31,693

31,078

+2.0

* For 23 States

MMPA STAFF

MMPA Field Staff*

Novi Headquarters

Northwest Area

Main Office Local line.................................................................... 248-474-6672 Toll free....................................................................... 800-572-5824

Ben Chapin, Supervisor, Blanchard.......................989-289-0731 Frank Brazeau, Energy Auditor, Oconto, WI.......906-250-0337 Lyndsay Earl, Ludington............................................231-519-2455 Sarah Michalek, Portland..........................................248-305-0537

General Manager Joe Diglio............................................................................... ext. 200

Deb Navarre, Leroy......................................................248-520-3580

Chief Financial Officer Josep Barenys...................................................................... ext. 240

Northeast Area

Member Services Dean Letter............................................................... 989-289-9251

Christy Dinsmoore, Supervisor & Mastitis Management Specialist, Fairgrove...248-513-7920

Milk Sales/Dispatch Carl Rasch.............................................................................. ext. 244

Lindsay Green, Energy Auditor, East Lansing... 989-488-8159

Laboratory Supervisor Patti Huttula......................................................................... ext. 219

Ashley Herriman, Alpena..........................................269-245-6632 Angie Kirsch, Harbor Beach ................................... 231-414-4539 Drew Rupprecht, Clio................................................ 269-986-6793

South Area

Manufactured Product Sales Jim Dodson........................................................................... ext. 229 Quality Amandeep Dhillon............................................................. ext. 305

Ed Zuchnik, Supervisor & Energy Auditor, Three Rivers................................269-967-7351

Credit/Insurance Cheryl Schmandt................................................................ ext. 210

Krista Beeker, Topeka, IN ........................................ 269-986-6792

Human Resources Cindy Tilden.......................................................................... ext. 220

Dave Brady, Grass Lake.....517-522-5965 or (c) 517-937-9061 Elyse Martin, Energy Auditor, Charlotte..............810-701-6460 Joe Packard, Kalamazoo............................................248-520-3481

Member Relations/Public Affairs Sheila Burkhardt................................................................. ext. 208

Emily Smith, Bronson..................................................269-535-0822

Data Processing Gregory Schulkey............................................................... ext. 237

Other Services

Member Communications Alex Schnabelrauch........................................................... ext. 211

Bulk Tank Calibration Gary Best, Lapeer.................810-664-4984 or (c) 586-484-9279 Merchandise Coordinator, Energy Auditor Katie Pierson, Coleman..............................................989-289-9686 Mastitis Management Specialist Steve Lehman, Ithaca........989-875-3441 or (c) 989-330-1638

Manufacturing Plants Constantine Dave Davis, Plant Manager................................. 269-435-2835 Ovid Colt Johnson, Plant Manager............................ 989-834-2221

MMPA Labs Novi (Monday-Friday, 8 a.m.-4:30 p.m.) In Michigan.....................................................................800-572-5824 Toll Free............................................................................800-233-2405 Ovid (Daily, 6 a.m.-10 p.m.).......................................989-834-2515

Merchandise - Mt. Pleasant Duane Farmer, Supervisor Main Line................................................................................989-317-8370 Toll Free...................................................................................877-367-6455 Orders (Novi).................................................800-572-5824, then dial 2 Fax..............................................................................................989-317-8372

*If you are unable to

reach your assigned member representative, please contact the representatives listed in your area.

Messenger | April 2015

Constantine (Daily, 7 a.m.-10 p.m.)......................800-391-7560