contents First Quarter 2021 • Volume 4, No. 1
Looking Down The Line 2021 FORECAST
FRONT DESK 03
PRESIDENT’S MESSAGE, NDFA 2021-22 Forecast Presents Challenges BY DANIEL LAUSCH
05
PRESIDENT’S MESSAGE, NDSA Looking at a Glass Half Full
FEATURES 19
rends, Expectations, T Survey Results and Member Thoughts
BY BILL ELLIOTT
06
BY GARY LATTA AND CAROLINE K. REFF
EXECUTIVE VP MESSAGE Optimism, Recovery and Events in 2021 BY OZZIE ORSILLO
08
Remembering Jim Buelow
10
LEGISLATIVE REPORT Optimistic 2021 Is Emerging
23
BY NATHAN PISTNER AND ALEX SOLLA
24
BY ALEX WALSH
14
YS Cheese Manufacturers’ N See Flexibility, Health and Safety
I s it Time to Address FMMO Issues?
BY GARY LATTA
28
MilkPEP Relaunches “got milk?”
32
Name that Iconic Slogan
33
yrne Dairy Creates B Employee Opportunity
BY LAURA MCLOUGHLIN
34
rging NYS to U Add Ag. Employees Back into Phase 1b
35
any Questions Still M Loom About Vaccine
ECONOMIC OUTLOOK Many Questions Remain BY GARY LATTA
MEMBER NEWS 38
Editor’s Note on Photography Images used in this issue of Northeast Dairy were submitted by various sources and were taken pre-pandemic, which is why many of the subjects are not wearing masks or other protective gear in the photos.
MEMBER PROFILE
Belgioioso Relies on Craftsmanship, Local Milk
BY COURTNEY KLESS
40 NDSA Adds Trade Schools to Scholarships
41 Member News and Industry Announcements
42
New Members
44
Use the Online Buyers Guide
NED Magazine | First Quarter 2021 • 1
contents First Quarter 2021 • Volume 4, No. 1
NORTHEAST DAIRY FOODS ASSOCIATION, INC. EXECUTIVE VICE PRESIDENT
James “Ozzie” Orsillo
PRESIDENT
Daniel Lausch Lactalis American Group
BEST PRACTICES 46
Search Engine Trends
49
void Retirement Plan A Problems Due to COVID-19 BY CHAD R. O’CONNELL, AIF
50
Workplaces Must Consider Flexibility for Pregnant Workers BY BRIANA WRIGHT AND EMILY MIDDLEBROOK
52
Cybersecurity: Don’t Open That! BY DEANNA PELLIGRINO
54
Reorganizing Your Workforce BY ART WASKEY
56
ive Ways Your Employee F Experience May Be Missing the Mark SUBMITTED BY PAYLOCITY
58 60
Winter Safety Tips
PRESIDENT
Bill Elliott Northeast Great Dane
2 • Northeast Dairy Foods Association, Inc.
VICE PRESIDENT
Kevin Ellis Cayuga Milk Ingredients
VICE PRESIDENT
Melissa Fryer Alfa Laval
SECRETARY
Ryan Elliott Byrne Dairy
TREASURER
Ryan Osterhout KCO Resource Management
SECRETARY
Bruce Alling Double H Plastics, Inc.
SALES
PUBLISHER/DIRECTOR OF SALES
Anne DeSantis anned@nedairymedia.com
James “Ozzie” Orsillo oo@nedairyfoods.org Bill Brod billbrod@nedairymedia.com EDITOR
Caroline K. Reff creff@nedairymedia.com CONTENT DIRECTOR
Steve Guglielmo steveg@nedairymedia.com CREATIVE DIRECTOR
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EXECUTIVE EDITOR
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ASSOCIATE VICE PRESIDENT OF REGULATORY AFFAIRS
NORTHEAST DAIRY MAGAZINE TEAM
Robin Barnes
www.nedairyfoods.org
Leanne Ziemba
NORTHEAST DAIRY SUPPLIERS ASSOCIATION, INC.
BY MARILYN R. DEMPSEY
STAY CONNECTED
EXECUTIVE ASSISTANT
Tim Hudson thudson@nedairymedia.com
Hannah Gray hannahg@nedairymedia.com Lesli Mitchell lmitchell@nedairymedia.com CONTRIBUTORS
Marilyn R. Dempsey, Courtney Kless, Gary Latta, Laura McLoughlin, Emily Middlebrook, Chad R. O’Connell, Deanna Pelligrino, Nathan Pistner, Alex Solia, Alex Walsh, Art Waskey and Briana Wright
Northeast Dairy Media
Editorial correspondence should be directed to editor@nedairymedia.com. Advertising correspondence and materials should be sent to billbrod@nedairymedia.com. POSTMASTER: Send address changes to lz@nedairyfoods.org.
An official magazine of the Northeast Dairy Foods Association, Inc., a nonprofit organization. This publication carries authoritative notices and articles in regard to the activities and interests of the associations. In all other respects, neither the association nor the producer of the publication, Northeast Dairy Media, is responsible for the contents thereof or the opinions of the contributors. The entire contents are © 2021 by Northeast Dairy Media. Nothing may be reproduced in whole or in part without written permission of the publisher. The association and Northeast Dairy Media reserve the right to print portions or all of any correspondence mailed to the editors without liability on its part and no such correspondence will be returned. Visit Northeast Dairy Foods Association online at nedairyfoods.org for current information on association programs and services, or call the association at 315-452-MILK (6455). Questions and comments may also be sent to the association at oo@nedairyfoods.org.
Front Desk
Exiting 2020 Will Make Forecasting in 2021 & 2022 Interesting, Challenging BY DANIEL LAUSCH President, Northeast Dairy Foods Associationon, Inc.
F WHY DO WE FORECAST? WHY SHOULD WE FORECAST? WHAT IS THE VALUE OF FORECASTING TO YOUR BUSINESS?
orecasting is an opportunity to practice for future events, so that when similar events occur in coming years, we are more prepared to make better business decisions. I work for a dairy company that loves to forecast everything, then track the actual results against the forecast. The next task is to explain and understand the gap between the forecast and the actual year-to-date numbers. I’m Daniel Lausch, the milk procurement director for Lactalis American Group, based in Buffalo, New York, and the newly elected president of the Northeast Dairy Foods Association, Inc. Lactalis American Group is part of a familyowned business based in Laval, France, that focuses on the procurement of farm milk from more than 350,000 direct dairy producers worldwide for the manufacture of a wide range of dairy products around the world. Before continuing, I want to thank our outgoing board President Mike Suever for his years of service to the Northeast Dairy Foods Association. Mike’s vast experience covers the full spectrum of the dairy business, and he provided great leadership. In a past life, Mike and I worked for the same cooperative and, in fact, he was my boss for some of those years! Once I moved from Southern Pennsylvania to Western New York in 2012 to join Lactalis, I was asked to serve on the board of directors of the Northeast Dairy Foods Association. That is how I was able to rejoin my former boss on the board. I started out in the dairy business as a licensed and certified dairy farm inspector covering Pennsylvania for 19 years. Then,
NED Magazine | First Quarter 2021 • 3
Front Desk I spent 12 years working at the Land O’ Lakes Carlisle butter/ powder plant, covering tasks from milk receiving to transportation to bulk dairy purchasing and sales. When I worked in milk transportation, our team would go through each of our 40 milk haulers and forecast “what if” that hauler went “out of business.” The results of the pre-planning or forecasting allowed for a much more orderly reassignment of cooperative members’ dairy farms, should their milk hauler exit the business. So, forecasting allowed for a major reduction in the stress level whenever we received a contract termination letter. With forecasting, the general expectation is that next year will be a copy of the prior year. No one will buy that theory for the next two years, particularly after the events of 2020. When 2020 started out, it appeared that market prices and milk supply and product demand was going to be level and stable compared to prior years. But, by mid-March 2020, COVID-19 appeared on the scene and changed everything, allowing demand for some items to hit zero, while other consumer goods tripled in demand. None of those extreme highs and lows were in
anybody’s forecast. What you need to consider are the market factors that will push the numbers higher or lower than the average values. Then, how likely are these market forces to slow their strength in the marketplace? Just acknowledging the possible market forces can benefit your business and reduce the surprise factor. I want to thank all of our member organizations for their continued support because most of us, as individual companies, are not able to cover the breadth of the dairy industry as well as the Northeast Dairy Foods Association. For example, there could easily be a state law passed that is set in motion before any of us know it’s happening, and then it’s too late to take action or call your legislators to plead your case. Aside from COVID-19, I’m looking forward to the next few years working with the full board of directors and the NDFA staff in tracking all the happenings in the eight states of the Northeast Region. Plus, I’m looking forward to all future clam bakes as that’s my favorite dairy industry event.
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4 • Northeast Dairy Foods Association, Inc.
Front Desk
Looking at 2021 as a Glass Half Full
BY BILL ELLIOTT President, Northeast Dairy Supplier Association, Inc.
W
ouldn’t it be nice to have a crystal ball right about now to be able to see what’s around the corner in terms of the economy, our government, COVID-19 and, of course, the dairy industry? While there are many unknowns, it seems counterproductive to be anything but positive that we’ll look back at 2021 and see it as an improvement over last year. So, I choose to be optimistic — I’m a glass half full kind of person, I guess. While most agree that 2021 will see a decrease in milk prices, which impacts all of us in some way, there are a lot of positives. As you may know, my connection to the dairy industry is trucking. COVID-19 has had its impact on trucking with issues like an overload of e-commerce as people shop from home, slower delivery times, state-by-state travel restrictions, and added costs due to everything from lack of restaurants and restrooms on the road to additional fees added to freight costs. Still, there is a bright side, as the need for goods and services also means that trucks and trailers are on the move and in great demand. My company, as well as most of our competitors, have either limited or have no available production slots through the end of 2021. It’s a good problem to have, and I suspect, as suppliers of all types of things that the dairy industry needs, a number of our NDSA members will find themselves in similar situations. Take a look at Gary Latta’s economic forecast piece on page 14 for more on how our members have been impacted by COVID-19 and what they anticipate in the months ahead. Another topic we’ve been discussing is the need for skilled workers. I think it’s a shame that many people today don’t look at learning a skill or attending trade school as viable options. Let’s face it — without skilled labor, the country comes to a screeching halt. If you don’t believe me, think about who you’re going to call the next time you have a leaky
pipe or your car breaks down. I think it’s time we addressed the lack of skilled workers by encouraging our young people to consider the advantages of learning a trade versus the staggering cost of a college diploma — whether it’s in the dairy industry or somewhere else. These are good paying jobs that are readily available in dairy manufacturing, and, as an industry, we should support and promote the choice to seek out a trade. To that end, the NDSA board unanimously made the decision to include trade school applicants when awarding our upcoming Bruce W. Krupke Memorial Scholarship in 2021. (A big thank you to board member Tristan Zuber for throwing that idea into the ring.) We want to be part of the solution, so, for the first time, we will consider applicants attending trade schools, as well as four-year colleges, when handing out our scholarships. Look for more information on our scholarship program in the “Member” section on page 40 or on our website (www.neastda.org). Finally, the optimist in me is also looking to our association’s plans for the spring and summer months, and we’re hoping COVID-19 will cooperate. We will be holding a spring mixer for those who are tired of all those Zoom meetings — and to also meet and welcome our new friends from the New York State Cheese Manufacturers’ Association. We certainly can’t wait to see each other face-to-face again. We also have a plant tour and golf outing in the works, and, of course, we’re counting the days until the inaugural Bruce W. Krupke Memorial Golf Tournament and Clambake/Pig Roast scheduled for July 14. Go to our website for updates on these events, as we continue to put our plans in place. So, while, 2021, has not yet made all our worries disappear, we’re still here making it work day-after-day. Let’s stay optimistic, work hard and look forward to better days just around the corner.
NED Magazine | First Quarter 2021 • 5
Front Desk
The Forecast? Optimism, Recovery and a Host of Association Events in 2021 BY OZZIE ORSILLO Executive Vice President, Northeast Dairy Foods Association, Inc.
T
he topic for this issue is “Forecasting.” This is nothing new to me professionally — forecasting has been a duty of mine though my entire career. However, being accused more than a few times of being a perpetual optimist, I reflect and see now that all my forecasts have been prepared with optimistic assumptions. A fault by some measure, but now that I am a bit long-in-the-tooth, as they say, there is no way I am changing my ways! Following 2020, a year that will go down in history as one of the worst years for our entire planet, we have nothing but good things to look forward to
6 • Northeast Dairy Foods Association, Inc.
in 2021. Not to dismiss the devastation caused in 2020, we have all lost someone or know a family who has. We have all made sacrifices, and we all have had to adapt to and through a learning curve on a global scale. I choose to use this chapter in my life to reflect on all people and things that are, were and continue to be important to me — family and friends, past and present, and country. Now, with a vaccine that is proven and in the process of being administered to the U.S. population, my forecast for 2021 is one brimming with optimism. I so look forward to seeing my family, friends and colleagues at all the events that were postponed or canceled last
year. I look forward to the day we can once again greet people with a firm handshake or a big bear hug. And, above all, I look forward to seeing the bright smiles that have been hidden from sight far too long under a mask. Yes, I believe 2021 holds a great comeback for all of us. My prediction and hope for 2021 is for society to be a bit more compassionate to one another, the dissolution of the “us versus them” mentality, the rebirth of the family unit and a robust, post-war style economic recovery. Starting with your Northeast Dairy Foods Association and your Northeast Dairy Suppliers Association, we optimistically forecast all our 2021 events
Front Desk will be held as scheduled. We will award thousands of dollars through the Bruce W. Krupke Memorial Scholarship Program to deserving college and — new this year — trade-school students. We optimistically forecast new events to emerge that are designed to reignite those professional fires that have been smoldering deep down inside us since we were grounded! We will be a voice of scale and expertise to create change for the common good in our dairy industry. And, we optimistically forecast to be your continued partner for any regulatory or network needs you may have. In short, our forecast is bright, and this association is as solid as it has ever been all because of you! Our stretch goal for the year is to make all association events a complete success through record breaking attendance. We want to destroy that ceiling in attendance with each event. Did you know this publication hits the hands and screens of over 3,000 readers each quarter? I ask all of you who are reading this message now to plan to attend at least
one event this year with a friend, partner, family member or colleague. We have events that will suit the need of everyone, starting with our new Spring Fling! Around the May/June timeframe, we plan to hold the kickoff event of the year — a social event designed for all attendees to mix and mingle with members from the Northeast Dairy Foods, Inc., New York State Cheese Manufacturers’ Association,, Pennsylvania Association of Milk Dealers and the Northeast Dairy Suppliers Association, Inc. (Stay tuned, as that date is currently being scheduled.) Then, on the second Wednesday of July (July 14), we will host our Bruce W. Krupke Memorial Golf Tournament and Clambake/Pig Roast — a day full of fun activities, food, refreshments and networking. This event brings people from across the country and is our largest event of the year. Last on our calendar is our annual conference. This will be held at the Chautauqua Harbor Hotel in Celeron, New York. The venue is stunning! Our schedule will be informative and fun, and
all the VIPs from the Northeast Dairy Foods Association, Inc., Pennsylvania Association of Milk Dealers, New York State Cheese Manufacturers’ Association and the Northeast Dairy Suppliers Association, Inc., will be there. All our events can be found on our website (www.nedairyfoods.org), so check in on us frequently for updates. So, there you have it. Is 2021 going to be good to us? With confidence, enthusiasm and optimism, I say YES! And, this association will do everything it in its power to aid in all things positive. Enjoy this issue of Northeast Dairy magazine. If you see something you might want more information on, please call our office, and we will gladly assist you. I look forward to seeing you at our events and on behalf of the entire staff here at Northeast Dairy Foods Association and the Northeast Dairy Suppliers Association. We thank you for your trust and your support.
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NED Magazine | First Quarter 2021 • 7
Front Desk Jim Buelow and his wife, Lurline.
Remembering Jim Buelow
O
n Dec. 16, 2020, the dairy industry lost a true friend with the passing of Jim Buelow. Jim spent his life dedicated to the dairy industry, most recently in the position as the milk procurement manager for Mountainside Farms/Worcester Creamery. Jim also served on the Northeast Dairy Foods Association’s board of directors, was a past president of the board and also held the position of chair of the legislative committee because of his extensive experience and abilities to offer sound advice. “Over his many years with the association, Jim always provided his vast and valuable knowledge and insight on topics and issues impacting the dairy industry, whether it be producers, cooperatives, processors or manufacturers. He is owed a great debt of gratitude, and his guidance will be sorely missed,” said Ozzie Orsillo, executive vice president, NDFA. NDFA Past President Mike Suever remembered Jim fondly. “When I was
8 • Northeast Dairy Foods Association, Inc.
first getting involved with dairy in New York in the early ’80s, (dairy economist) Dave Arms Sr. told me that there is one guy that knows everything that is going on related to the milk business in New York — and that guy is Jim Buelow,” said Suever. “Jim was the most knowledgeable person about New York dairy and he could put things in a context that you could understand.” “Jim was an active director for the nine years I have been on the board of directors of NDFA,” said current NDFA President Daniel Lausch. “He was always considering the impact of decisions both at the state and national levels on the dairy farmers, the milk processors and the consumers. Because he started as a dairy farmer in Western New York, then worked as a manager for the National Farmers Organization and finished his dairy career with Worcester Creamery, he covered the full spectrum of the fluid milk business. Jim always had a welcoming handshake and smile when greeting people, whether they were new to the dairy business or an old friend.”
A colleague, Aaron Jonas, director of purchasing at Mountainside Farms, reflected, “Jim Buelow was an outstanding co-worker but, much more than that, he was truly a very good friend. I worked very closely with Jim at Elmhurst Dairy, Worcester Creameries and Mountainside Farms for over 20 years. We talked all the time, but every time we spoke about work, we would finish the conversation talking about how the family was or what was new in our lives. He was a trustworthy, confidant and a great listener — he gave great advice. I learned a ton from him. I will truly miss him, and I already do.” “Jim Buelow was the most knowledgeable of all the directors of NDFA at the national level of our milk business,” added Butch Miller, president of Queensboro Farms. “His expertise and ideas in the areas of federal order reform, shipping freight zones, milk arithmetic and qualification percentages were unparalleled in the industry. But, as smart as he was, his quiet, unassuming manner always showed through. He was never too busy to answer a question and hear
Front Desk the other side of the argument. His work in the industry was greatly appreciated. I had the great pleasure of knowing and working with Jim for 40 years — from his days at NFO to his long career with the Elmhurst/Mountainside group to his reign succeeding me as the president of NDFA. He was a model employee and friend, and he will be sorely missed.” “Dad had a love and passion for the dairy industry and all those who made their livelihood from it. His love of the dairy farmer and industry drove him to understand every side of any issue. He always fought for the farmers, understanding they are the cornerstone that makes everything else possible. His involvement and actions were his way of sharing his love and concern for all he knew,” said the Buelow family.
Northeast Dairy Foods Association extends its deepest condolences to Jim’s wife, Lurline, the entire Buelow family, his friends and his colleagues at
Worcester Creamery. The association and dairy industry as a whole are stronger and better because of Jim’s service and contributions.
buyersguide.neastda.org
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Contact Bill Brod by emailing billbrod@nedairymedia.com or calling 315-445-2347, ext. 138. NED Magazine | First Quarter 2021 • 9
Legislative+RegulationsReport
LEGISLATIVE REPORT
Challenges Remain but an Optimistic 2021 Is Emerging BY ALEX WALSH
W
ith the new year underway, the Northeast Dairy Foods Association, Inc., and the dairy industry in the region have new challenges on the horizon, as well as some leftover and unfinished business from 2020. However, there is also a tremendous amount of optimism and energy to be tapped as we forge into the first quarter of the year. While there were many difficulties to overcome last year, it also strengthened and made the industry more resilient than ever. The pandemic has put a colossal emphasis on the importance of agriculture and food processing employees, as well as ensuring the continuation of a safe and effective food supply chain. The Northeast Dairy Foods Association looks to use that as leverage to make significant progress on the issues facing the dairy 10 • Northeast Dairy Foods Association, Inc.
industry. It’s hard to predict exactly what will be proposed in state legislatures and Congress this year and what will be passed. Unfortunately, there is no exact science or crystal ball to see precisely how issues will pan out. The good news is, as an industry and through the efforts of the Northeast Dairy Foods Association, we can collectively identify what the major issues are that impact dairy processors and manufacturers and eloquently tell our story surrounding what issues we face as an industry to help shape the policy discussion and directions in the legislatures. The dust has finally settled on elections, and the political landscape will change course compared to last year. At the national level, President Joe Biden has taken office and his policies and positions are expected to be quite different from former President Donald Trump’s.
Biden has appointed Tom Vilsack to serve as secretary of agriculture. If that name rings a bell, it’s because he oversaw the United States Department of Agriculture under President Barack Obama and prior to that served as governor of Iowa. Between his tenure with the Obama administration and now, Vilsack has been the president and CEO of the U.S. Dairy Export Council. It is reassuring that he has experience in leading the USDA, a background in dairy and can hopefully be seen as a friend to the industry. The Georgia runoff elections for U.S. Senate came down to the wire in early January with Democrats Jon Ossoff and Raphael Warnock defeating Republican incumbents David Perdue and Kelly Loeffler, respectively. These elections are important to be aware of because, even though the Senate will be split with 50 Democrats and 50
Legislative+RegulationsReport Republicans, the tie-breaking vote can be cast by the president of the Senate, who is also Vice President Kamala Harris, giving Democrats the control in the upper chamber. Sen. Debbie Stabenow from Michigan was promoted from ranking member to chair of the Senate Agriculture Committee. Democrats retained their majority in the House of Representatives. With the retirement of Rep. Collin Peterson, a Democrat from Minnesota, who served as chairman of the House Agriculture Committee, Rep. David Scott will chair the committee for the 117th Congress. Scott has served as a member of Congress and on the House Agriculture Committee since 2003. Of course, needless to say, much of the attention in Washington has been focused on COVID-19. In the last few weeks of 2020, there were distractions with election results, which trickled into
January, along with unrest from groups attempting to make political statements. With a new administration and new leadership taking over the reins, it remains to be seen if there will be a more cordial working environment to make compromises and accomplish and resolve real results in a city known for dysfunction. In just the first few days of Biden’s term, he signed 17 executive orders. Hopefully, this is not how he intends to continue to govern, but instead allows the people’s voices to be heard and debated and Congress to do its job. The New York State Senate has a new chairperson of the Agriculture Committee, which will now be led by Sen. Michelle Hinchey, as previous chairperson Sen. Jen Metzger lost her bid for re-election. Hinchey is a Democrat freshman senator representing the 46th Senate District, which encompasses all
of Greene and Montgomery counties and parts of Ulster, Schenectady and Albany counties in New York. As the Northeast Dairy Foods Association introduced our issues and priorities to Metzger, the same will be done with Hinchey, as the association will form a strong relationship with her and also be a resource for her and the members of all of the state legislatures in the Northeast when it comes to agriculture, food processing and manufacturing and dairy industry topics. Some issues that the Northeast Dairy Foods Association has been engaged in over the past year remain outstanding. To start off with some positive news, the New York State Farm Labor Wage Board did not lower the overtime threshold from 60 hours to 40 hours per week. The board cites that, due to the current economic situation the agriculture and food processing industry is in because
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Legislative+RegulationsReport
of COVID-19, it is not the time to lower the threshold. The wage board will be convening at the end of 2021 to reassess the status of this issue. Another item in New York that was introduced in the fall of 2020 relates to hazard pay for essential employees. This bill, S519, which was reintroduced in January 2021, would mandate the employer to provide hazard payments to employees during a state disaster or emergency. While there may be a general consensus that those who risk their lives during an event, such as a health pandemic, deserve compensation to ensure those goods and services remain available, the Northeast Dairy Foods Association has some concerns with this proposal and is opposing this legislation because it would apply to convenience and grocery store employees, and there are members of the association with such divisions. The bill, as it currently stands, does exempt food manufacturing. The solution the Northeast Dairy Foods 12 • Northeast Dairy Foods Association, Inc.
Association is proposing is to model it after the proposed federal legislation that would provide a tax exemption to those employees, so that it not a financial burden to the state or the employer. Some retail companies have provided hazard pay to their employees voluntarily, which is fantastic. However, not all companies can afford to do this. If New York were to change its direction on this issue, the association would encourage other states to follow this proposal. Other items that Northeast Dairy Foods Association will continue to monitor and advocate on from last year include the New Hampshire Premium Labeling Initiative, the recycled packaging content legislation in New Jersey, and many others in New York, New Jersey and the New England states require defense by our association. Additionally, the Northeast Dairy Foods Association retains changing the New York Producer Security Fund program, lowering the Milk Dealer License Fee in New York and prohibiting
the issuance of raw milk permits as priorities to work on with state legislators. There are also many other non-dairy related issues being monitored by the Northeast Dairy Foods Association that impact members’ business operations, such as energy, environment, healthcare, labor, insurance, transportation and more. A notable issue is the New York Paid Family Leave Act and Paid Sick Leave Act. Through working with other organizations across New York that represent various interests, this coalition will be working with the state’s Labor Department and legislators to present concerns and find a more effective way to implement these regulations. Within the first couple of weeks of January, the vaccine for COVID19 started to become available to certain populations in the public. In New York, the Northeast Dairy Foods Association’s successfully advocated to include agriculture and food processing and manufacturing employees in
Legislative+RegulationsReport Phase 1b of Governor Andrew Cuomo’s vaccination schedule. However, due to limited quantities of the vaccine from the federal government, agriculture and food processing employees were removed from Phase 1b the night before it was scheduled to begin. At the present time, New York and many other states are struggling to obtain enough quantities of the vaccine in order to administer them to populations of their designated phases. Cuomo has reached out and had discussions about the state purchasing the vaccines directly, rather than waiting on the federal government to distribute them. If this works, New York would be able to ramp up vaccinations. The Northeast Dairy Foods Association has been strongly advocating to Cuomo, the Department of Agriculture and Markets and the New York State Health Department to again include agriculture and food processing employees into the vaccination schedule as soon as possible to ensure the food supply system remains intact and safe. It has been encouraging to hear that many members are eager to be inoculated. A large coalition of agriculture partners, such as the New York Farm Bureau, The New York State Vegetable Growers, New York State Wine & Grape Foundation and many others, have jointly supported this effort. With the continual advocacy and communication with the state, it is hopeful that this segment of workers will be eligible for the vaccine soon. This is a classic example of “the squeaky wheel gets the grease.” The relationships with other agriculture and food processing organizations in the regions have been strengthening over the last few months, as well. The Northeast Dairy Foods Association has been working very closely with many industry groups to accomplish our goals, and there really is truth to the saying that “there is strength in numbers.” In
politics, as in life, there is give and take, and maintaining honest and open lines of communication. There are many obstacles in front of us this year between battling COVID-19, and financial and economic challenges, in addition to the issues the dairy foods industry routinely faces. There is light at the end of the tunnel and encouraging signs as we emerge from the pandemic and start moving towards what was once “normal.” We have all adapted and have found innovative and creative solutions to navigating the challenges of the past 12 months. The Northeast Dairy Foods Association could not be more committed to representing you, your interests and your challenges. More issues will continue to arise, but, with strong partnerships within and outside
the association, there will also be progress. While Washington, D.C., Albany and other capitals can be an entertaining circus to watch at times, the work of the people must also get done. Leaders and representatives must find practical and realistic solutions, and the Northeast Dairy Foods Association has been on the offensive already this year to voice your issues and work together to find resolutions. Brighter days are coming, and it will be a successful 2021 for the dairy industry in the Northeast! Alex Walsh is the associate vice president of regulatory affairs for the Northeast Dairy Foods Association.
FINANCING THE
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NED Magazine | First Quarter 2021 • 13
EconomicOutlook
ECONOMIC OUTLOOK
While 2021 Looks Healthy for U.S. Dairy, Many Questions Remain BY GARY LATTA
M
ilk production in 2020 was surprisingly robust in the United States. In fact, the production of milk grew each month in 2020, except for May, in the top 24 selected states and the U.S. as a whole. The top 24 selected states in the USDA’s monthly survey capture over 90% of U.S. milk production. Since June, milk production has been on a steady climb and seems to be inching up as each month passes. Production growth is typically a healthy 1% to 2% for the U.S. Growth beyond 2% must be absorbed by either a healthy increase in domestic demand or exports to other countries. The release of the USDA’s December Milk Production Report reinforced the belief that the U.S. is in an expansion mode. December production was reported up 3.2% over the same month last year. This follows November at 3.5%, October at 2.5% and September at 2.4%. This persistent, above average growth has many industry observers concerned as we head into 2021. Will the U.S. economy absorb the extra milk? Will this degree of growth momentum continue into the spring flush months of March through June? Will government purchases of dairy products like the Food Box Program continue? What moves will the new administration make? Will the opportunity for increased exports emerge? What will be the impact on dairy product prices as we move further into 2021? 14 • Northeast Dairy Foods Association, Inc.
The growth in milk production over the past four months has been the result of both increases in cow numbers and milk per cow. The USDA’s latest report shows production per cow averaged 2,027 pounds in December. This is up 40 pounds from December 2019. The number of milk cows in the 24 major states was 8.92 million. This is an increase of 12,000 head from the previous month of November and 107,000 more head from the corresponding month of December 2019. The U.S. witnessed a 2% increase in milk production from July through September, and a 3% increase from October to December. The October through December production among the Northeastern states was Connecticut at 0.9%, Maine at -2.7%, Massachusetts at -2.1%, New Hampshire at -1.8%, New Jersey with no change, Rhode Island with no change, Vermont at -3.9%, Pennsylvania at 2.2%, New York at 1.9% and Ohio at 5.1%. Collectively, these Northeastern states produced 162 million more pounds in October through December 2020 over that same period in 2019. This represents an increase of 1.9% compared to the U.S. overall, which showed a 3% milk production increase in this same period. Clearly, much of the current production growth is coming from regions other than the Northeast. Recently, it has been the Midwest and a few states further west that are adding cows, showing impressive increases in production per cow, or both.
Among these states in October through December, year-over-year production gains were Indiana at 10.4%, South Dakota at 13.0% and Texas at 8.5%.
WILL VOLUNTARY PRODUCTION CONTROLS STAY IN PLACE? In the second quarter of 2019, some dairy cooperatives implemented their own systems of voluntary production controls to slow the growth among its members. Many observers are speculating and wondering if these voluntary production control programs will need to be kept in place or reimplemented to help throttle U.S. expansion beyond market needs. Market needs are likely to be domestic consumption, government purchase programs and exports. All three of these are difficult to predict currently. How soon will the U.S. and world economies recover from this global pandemic? How soon can we return to anything resembling the norm? Consumer demand has shifted toward retail. How much of that shift to retail and home cooking will remain after COVID-19? Restaurants, schools and entertainment industries are still slow to fully reopen in most states. The rollout of the vaccine has been rocky, and shortages persist everywhere. Many experts now feel that it could be late spring or early fall before most of the population is vaccinated and we develop herd immunity. Many questions remain: What will be the new president’s and Congress’s position on continuing support programs
EconomicOutlook
of $21.30 in November. 3 It averaged $18.32 per cwt in 2020, $0.31 lower than the average of $18.63 in 2019. Federal milk marketing order (FMMO) minimum milk prices and the U.S. all-milk price1 Dollars per hundredweight 26
Class I Class IV
Class II Statistical Uniform
Class III All milk
24 Dairy 22
Jerry Cessna 20 18
Recap of the 2020 Dairy Situation 16 14 2020 was a year of unprecedented volatility in U.S. dairy markets. Weekly average wholesale Cheddar cheese prices (as reported in the USDA National Dairy Products Sales Report) followed a roller coaster 12 pattern. Prices ranged from the lowest prices since 2009 (when the Great Recession had negative 10 effects2020 on global product demand) 40-pound FebdairyMar Apr May to record Jun highs. Jul Prices Aug for Sep Octblocks Novranged Decfrom $1.1349 to $2.7723 per pound, and prices for 500-pound barrels (adjusted to 38-percent moisture) Jan ranged from $1.0736 to $2.4908 per pound. Although not as variable as the Cheddar cheese prices, 1 FMMO minimum prices are reported for milk with 3.5 percent butterfat. The U.S. all-milk price is reported for milk at the average U.S. the test. range wholesale butter prices was also wide, fromareaare low of $1.1229 ofcombined. $1.9789 per milk-fat The of Class I price and the statistical uniform price series displayed weighted averges to for a all high FMMOs Sources: USDA, Agricultural prices Marketingfor Service; anddry USDA, National Agricultural Statistics pound. Wholesale nonfat milk (NDM) and dry wheyService. were less variable, ranging from $0.8398 to $1.2579 and from $0.3114 to $0.4267 per pound, respectively. The unusual price patterns of 2020 can be explained in terms of pandemic effects and responses of the industry and the Government to those effects. The pandemic resulted in relatively low domestic Wholesale dairy product prices demand for dairy products due to financial hardships for some Americans and the shift from Dollars per pound consumption at foodservice establishments to at-home consumption. The shift brought about logistical 3.00 and packaging problems in the spring, causing supply-chain bottlenecks. At the same time, farm milk production was reaching its peak season. 2.50 2.00
In April, substantial quantities of milk from various parts of the country were not processed. Much of this 1.50 spread on fields or poured into manure lagoons. USDA does not have a complete accounting milk was of this unprocessed milk, but such milk priced and pooled on FMMOs falls within the broader regulatory 1.00 category of milk in “other uses,” which includes milk "that is dumped, used for animal feed, destroyed, 0.50 or lost by a handler in a vehicular accident, flood, fire, or similar occurrence beyond the handler's 0.00(7 CFR §1000.40 (e)). Every month, there is at least some milk that falls in this category. control" 2/1 2/29 4/25 5/23 6/20 7/18 10/10 11/7 12/5 4 However,1/4 the quantity in April3/28 was extremely large, totaling 3508/15 million9/12 pounds.
3
Week ending date Butter Cheddar, 40-lb blocks Cheddar, 500-lb barrels (38% moisture) Nonfat dry milk Dry whey The all-milk price is highly correlated with the average FMMO blend price. The all-milk price may be higher or
Source: USDA, Agricultural Marketing Service, National (1) Dairy Products Sales Report. are often paid in addition to minimum lower than the blend price for several reasons: Over-order payments prices. (2) FMMO prices are reported for statistical purposes at 3.5-percent milk fat, but the all-milk price is With high wholesale cheese for much of the year, the includes Class IIImilk price was considerably higher than reported at the average fat test ofprices U.S. milk. (3) The all-milk price that is not pooled in FMMOs. (4) the 1 In July, the Class III-IV gap reached a record high of $10.78 per Class IV price for several months. There are some conditions under which FMMO minimum blend prices do not apply to producer payments for milk for agriculture in 2021? Will we see any competitive in the world market with could also be competitive if the global hundredweight pooled on FMMOs.(cwt) and a near-record high of $10.04 in November. Class I is usually the highest priced more rounds of the Food Program? cheese 2021.ofSome good signs arethis thatunprocessed price drops andI price closer U.S. 4 class, but in 4Box of the year, theinClass IIIFMMOs price exceeded the weighted-average At the request ofmonths milk handlers, administrators allowed milkfurther to Class be pooled on for atoall 2 As the global economy recovers, will we milk production growth in major export- This prices. current weaker FMMO if that milk would normally been pooled through the FMMO. allowsIn a addition, handler tothe draw the (commonly called Federal Milk Marketing Ordershave (FMMOs) combined. FMMO statistical uniform prices difference between uniform price and lowest use value of the of milk; but thehelps handler still the blend prices) arethe usually Class prices, but forthe 6 U.S., months thedollar year, the Class III bears price experience increased demand forpooled U.S.higher ingthan countries isIIIthe trending below U.S. in relation to competloss of that manufacturing value. If the handler is for a farmer cooperative, as is As most common, thatmilk losshandlers is borne by exceeded the weighted-average blend price all FMMOs combined. a result, many chose dairy products and exports?together. and prices at the Global Dairy Trade, itors in the global market. its not farmer-owners to pool significant volumes of Class III milk. For milk that was not pooled but would have normally been the price globally connected marketplace for havethat been healthy with 10 pooled as Class III milk, the high of cheese was still likely reflected inU.S. the exports milk price dairy farmers Livestock, Dairy, and Poultry Outlook, LDP-M-320, February 16, 2021 U.S. DAIRYwere COULD GRAB BIGGER dairy,2020 have all-milk been rising. latest from GDTa low14ofconsecutive months of to increases paid in the marketplace. The priceThe ranged $13.60 per cwt in May a high USDA, Economic Research Service
SLICE OF THE WORLD STAGE
event had dairy rising 4.8% overall. Skim followed by a 0.2% dip in November. 1 Some U.S. products, the powders, was up 7%,Orders butter 4.6%, Most this U.S.discussion. dairy exports have been A basic knowledge of Federal milk Milk Marketing helpsanhydrous with understanding For more information, visit thecompetFederal Milk Marketing web page on 0.3%. the USDA,destined Agricultural MarketingAsia, Service butter and whey, are presently milkfat 17.2%Order and cheddar falling for Southeast and whey website. itive on the2 world stage. A few observIf these price trends continue, the U.S. sales to China have been increasing The statistical uniform price is a regulated minimum price for dairy farmers with milk pooled in FMMOs. ers have noted that, with some modest will become more competitive internabecause of its recovering hog industry 9 Livestock, Dairy, and andlead Poultry Outlook, LDP-M-320, 16, 2021 discounting, the U.S. might again be tionally to more exports. Cheese February drives demand for feed. Exports of cheese USDA, Economic Research Service
NED Magazine | First Quarter 2021 • 15
EconomicOutlook
to Mexico have been lagging because that country has been hard hit by COVID-19 and is presently suffering with a poor economy. Key targets for U.S. exports in 2021 will again be Mexico, Southeast Asia, China, South America, Japan and Canada. Canada is accused of not honoring all its dairy commitments agreed to under the terms of the U.S.-MexicoCanada Agreement entered in July 2020. Before he left office, Ted McKinney, the former administration’s USDA undersecretary of agriculture for trade and foreign ag affairs, stressed that the new administration must follow up on the legal actions filed under the USMCA agreement against Canadian dairy practices. Canada is accused of violating the terms of the Class VI and Class VII milk, as well as its handling of tariff rate quotas that restrict U.S. exports. President Joe Biden’s new trade team appears to be staffed with key personnel that helped develop USMCA. Leading the team will be Katherine Tai as the new U.S. trade representative. Tai was the chief trade lawyer who helped craft the labor provisions in the USMCA, and 16 • Northeast Dairy Foods Association, Inc.
she has pledged her support in enforcing the trade pact with both Canada and Mexico.
FOOD BOX PROGRAM HELPFUL BUT HAD CONSEQUENCES
The January Cold Storage Report had natural cheese stocks in refrigerated warehouses on Dec. 31, 2020, up 4% from November and 6% more than December 2019. Butter stocks were up 9% from November and a whopping 44% from a year ago. While butter has been the top mover at retail due to more at-home cooking, it is not making up for the loss of butter use at restaurants and through foodservice. Decent demand and surplus milk supplies have driven nonfat dry milk production. This, in turn, generates quantities of butter that add to stocks in storage. The USDA recently announced a fifth round of the Farmers to Families Food Box Program. This round will spend $1.5 billion on food with an estimated $500 million going toward dairy products. It is estimated that these new Food Box purchases will contain 150 million pounds of cheese, 40 million gallons
of fluid milk and 75 million pounds of other dairy items, like sour cream, butter and soft cheeses. The Food Box Program was a relatively new concept implemented shortly after the start of the pandemic and state shutdowns. It has proven successful in getting needed food to struggling families, helping move a lot of milk supply needed at home and shoring up Federal Order Class prices during the early days of the pandemic when product prices crashed. The Food Box Program, however, led to some unintended consequences with cheese prices spiking after the crash and then oscillating ever since. The Chicago Mercantile Exchange block cheese weekly average fell to $1 a pound in the second quarter of 2020, then spiked to more than $2.80 before crashing again to $1.60. It then climbed to near $2.80 again before falling back down to $1.60 and then jumping to near $2 in January 2021 after the fifth round of the Food Box was announced. Managing through this dizzying volatility over the past 10 months has been a challenge for dairy farmers, cooperatives, processors, manufacturers and retailers.
EconomicOutlook
NATIONAL FMMO DISCUSSION IS PREDICTED Depooling and negative producer price differentials are just a few anomalies that were dealt with across the country in 2020. In recent weeks, there have been reports that the National Milk Producers Federation and other national organizations are taking a hard look at the issues of depooling, producer price differentials, make allowances, the Class I price formula and others. The idea of a national hearing on Federal Milk Marketing Orders sometime soon is being discussed with increasing frequency. In mid-January, several dairy webinars were presented by agricultural groups and universities recapping 2020 and courageously issuing forecasts for 2021. Most forecasters, university economists and the USDA believe milk prices will stabilize in 2021. We should see much less depooling and negative PPDs than in 2020. Hopefully, Class prices will be better aligned and much less volatile. It was pointed out that despite all the turmoil of 2020 dairy farm net income was not too bad. Focusing on net farm income, and not Class price,
one university dairy economist showed the 2020 total net farm income to be an average of $21.36 per hundredweight. This is considering an all-milk Class price of $18.24, Coronavirus Food Assistance Program for Dairy Producers of $2.45 and payments from the Dairy Margin Coverage program of $0.67. It was pointed out that 2020 was the best year for net farm income since 2014 and may be at least partly attributable to a slowdown in farm exits and the current level of production expansion. University economists appear to be in close agreement that 2021 will generate an average Class III price of $17.35, a Class IV price of $16.56 and an all-milk price of $18.50 without all the highs and lows of 2020. The USDA is more conservative and less optimistic than most university dairy economists. The USDA’s forecast shows milk production increasing a little over 1.7% in 2021. Considering recent trends, this estimate may be low. The USDA is predicting more cows and more production per cow in 2021. Feed costs, particularly corn and soybeans, have been rising, so expansion may be limited. Dairy export estimates were raised on
a milkfat basis and left unchanged on a skim solids basis. Import estimates were lowered. An improved economic outlook strengthened the USDA’s estimate for domestic demand and use in 2021. This stronger expected demand has the USDA raising its price forecasts for 2021 on cheddar cheese to $1.740 (+.105 cents), dry whey to $0.450 (+.045 cents), butter to $1.605 (+.035 cents) and non-fat dry milk to $1.100 (+.035 cents). With these higher dairy product prices expected across the board, 2021 Class III is now conservatively forecast at $16.90 per cwt (+1.30 cents) and IV at $14.10 per cwt (+0.50 cents), respectively. The all-milk price forecast for 2021 is $17.65 per cwt — $1.05 higher than last month’s forecast. Gary Latta is a dairy product specialist consultant for the Northeast Dairy Foods Association, Inc. He has more than 30 years of experience in providing economic analysis, statistics and information to the dairy processing industry.
NED Magazine | First Quarter 2021 • 17
Looking Down The Line 18 • Northeast Dairy Foods Association, Inc.
2021 FORECAST
Dairy Trends, Expectations, Survey Results and Member Thoughts for the Year Ahead BY GARY LATTA AND CAROLINE K. REFF
A
t the end of 2020, Northeast Dairy magazine sent a survey to members of the Northeast Dairy Foods Association, Inc., and the Northeast Dairy Suppliers Association, Inc., to gauge ideas and impressions for the year ahead. While the results do not necessarily represent the sweeping opinions of our entire membership, they do paint an interesting picture of some of the things to watch for in 2021 and beyond. Clearly, the COVID-19 pandemic had (and continues to have) a significant impact on our members, their employees, customers, products and profits. Most have suffered under the weight of this unprecedented time in history, but, surprisingly, some have also found ways to thrive. Still, the impact of COVID-19 remains a frightening unknown in 2021, even with the roll out of vaccines. Overall, our survey shows that members expect their sales to remain “level” or possibly even “improve slightly” this year in comparison to 2020. As far as the industry goes, there were many concerns, but most of those surveyed forecasted a “neutral” or “slightly positive” impact on the dairy industry with a U-shaped economic recovery at some point in the future. Whether this is optimism or reality remains to be seen. Other concerns relate to the change in presidential leadership, legislation, labor costs and shortages, and the consolidation of manufacturers. Our members are also looking towards macro trends to see what may impact their businesses and/or how they can proactively either counteract them or hop on board. Good old-fashioned fluid milk has made a comeback, as so many people have been at home for almost a year now, avoiding restaurants, cooking more and getting back to nutritional basics. Ice cream and cheese have been flying off the shelves, too, as consumers flock to comfort foods during such a stressful time. On the downside, many of our members have seen profits fall, as the shutdowns have closed schools and limited restaurant business, both of which are heavily replied upon by the industry.
The growth of the non-dairy alternative category is undeniable, and, while our association can’t help but defend the goodness of real dairy milk, cheese and other products, some members are finding ways to tap into the inevitable success of oat “milk,” nut “milk” and other alternative products. The good news is that some of our members are truly thriving. They are investing in the future — taking an educated guess on what that might be in 2021 and well beyond — with the construction of new facilities, product development, new packaging and product sizes, and innovative ways of delivering dairy and the many products and services that support the industry. A key question in our survey was: Looking at your company projections for 2021, do you expect your sales to be up, down, or level as compared to 2020? Responses to this question revealed that 96% believe their sales will be at least “level” to “up significantly” in 2021. Nearly 54% believe sales will be “level” in 2021, while 42.2% expect sales will be “up” or “up significantly.” Only 3.8% of respondents believe that sales will be “down” in 2021. The overwhelming majority of members that responded have a “positive” outlook going forward. Another key question in our survey was: What do you project for the dairy industry as a whole? This question was designed to be broad and get members to express their general feelings about the dairy industry. Responses indicated that 46.1% of members participating in the survey have a “neutral” feeling about 2021, while 38.3% are “positive” to “very positive.” Only 15.3% of respondents had a “negative” or “other” feeling about 2021. Members were asked if they expect a “V” shaped or “U” shaped recovery? Responses indicated that 76% expect a “U” shaped recovery, while 32% expect it to be “V” shaped. Members offered many opinions in the Give Us Your Thoughts sections. Among these was an overwhelming belief that the vaccine rollout will be key to getting the industry, our country and the world back to some semblance of normal. Key factors regarding how fast we return to normal will be restaurant and school reopenings. After March 2020, a great deal of consumer demand had shifted away from institutional
NED Magazine | First Quarter 2021 • 19
2021 FORECAST Responses indicated that 76% expect a “U” shaped recovery, while 32% expect it to be “V” shaped.
food service and restaurants to retail grocery outlets. People learned to cook at home again and sales of fluid milk at grocery stores have been on the rise. The loss of the food service sector, however, has put a dent in butter sales. Overall, most respondents experienced good sales in 2020 and expect 2021 to be even better. Respondents commented that employment levels, federal assistance and general economic recovery will be key to most companies’ success moving into 2021. A few packaging suppliers noted that, despite significant loss of sales volume with smaller sizes, increased demand for larger retail sizes for at-home consumption made up some of the difference. A few members of the milk trucking sector expressed concern that reduced milk volumes, because of voluntary farm production controls, could reduce their hauling revenues in 2021. One milk hauling firm was concerned about staffing an adequate number of skilled drivers in 2021. One member felt the economy will benefit if consumer products are marketed and priced more toward the lower end of the income scale, followed by middle- and upper-income consumers. Dairy is a commodity-based business, and volume will be key to survival and recovery.
GIVE US SOMETHING TO CHEW ON. Are you introducing an interesting product? Have you instituted cutting-edge processes? Are you welcoming a new hire? Is your business expanding, moving or changing? Do you have other news to share? Northeast Dairy magazine is always looking for Member and Industry News. Email your information, news releases and/or captioned photographs to us at editorial@nedairymedia.com. 20 • Northeast Dairy Foods Association, Inc.
2021 FORECAST A few packaging machinery companies noted that there have been delays in investment from several major processors and manufacturers due to COVID-19. This pent-up demand should be unleashed once things return to near normal, and some expect a surge in new sales later this year. A few members made comments regarding their uncertainty of the business environment under new administrations at both the federal and state level. Regulations and labor laws were among a few key items to watch closely. A major frozen dessert manufacturer in our membership mentioned it was fortunate to be able to continue its upgrades and expansion plans through much of 2020. It is poised for growth and ready to meet consumer needs with existing and new product lines. One food specialty ingredients supplier indicated it is ready and willing to assist dairy processors and manufacturers in adding a few non-dairy items to its lines. With greater public acceptance of these non-dairy products, it may make sense for traditional dairy milk manufacturers to supplement their product lines and take some advantage of this smaller but growing trend. CONTINUED ON NEXT PAGE ►
Responses indicated that 46.1% of members participating in the survey have a “neutral” feeling about 2021, while 38.3% are “positive” to “very positive.” Only 15.3% of respondents had a “negative” or “other” feeling about 2021.
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NED Magazine | First Quarter 2021 • 21
2021 FORECAST OTHER RESPONSES FROM OUR MEMBER SURVEY INCLUDED:
“We will see increased consolidation and growth of large manufacturers, for sure.” “We foresee a gradual return to normal cycles and consumers’ pent-up demand to move beyond COVID.” “Increased diversification in terms of product offerings from manufacturers. Fewer processors are placing all their eggs in one basket, so to speak. Instead of only producing dairy products, more manufacturers are producing plant-based beverages, NDCs, etc.” “More innovation in packaging within the dairy industry. In place, or in addition to, the standard packaging sizes, we are now seeing more interest in less traditional package sizes, e.g., 48 oz., 50 oz., etc.” “We will witness an increase in extended shelf-life processing — both from manufacturers and customers.” While we are already a quarter of the way into 2021, a lot remains to be seen, but clearly the dairy industry is taking the challenges head on with an innovative ideas and an optimistic look towards better days ahead.
Note: We wish to thank all our members who took the time to respond to our survey and share their thoughts. The survey was sent out to all NDSA and NDFA members and was also included in our weekly newsletter in December and January. Specific comments were kept anonymous in order to paint a true picture of members’ thoughts, but all survey responses were verified by the Northeast Dairy Foods Association.
Get Back on Track In 2021 While our readers certainly live and breathe the dairy industry, it can’t hurt to double-check those 2021 resolutions on healthy eating with a recap of why consuming dairy is such an important part of healthy living. • Dairy foods help meet nutritional needs and are associated with better bone health, especially in children and adolescents. • Healthy eating patterns containing low-fat or fat-free dairy foods are associated with a lower risk for cardiovascular disease and type 2 diabetes. These habits are also known to lower blood pressure among adults. • Dairy foods can be affordable sources of key nutrients, including high-quality protein, calcium, potassium and Vitamin D. And, they are available in a variety of
22 • Northeast Dairy Foods Association, Inc.
options to help meet taste, health and wellness needs. The Dietary Guidelines for Americans recommend three daily servings of dairy foods for those 9 years of age or older as part of a healthy eating pattern. On average, Americans are underconsuming dairy at about two servings daily. Adding just one more serving ( just a glass of milk, maybe?) can help fill shortfall nutrient gaps. Consuming three servings of low-fat or fat-free dairy foods contribute only 12% of daily calories but anywhere from 20% to 69% of key nutrients like calcium, Vitamin D and potassium. And, the unique nutrient profile of dairy foods can be difficult to replace with non-dairy foods, even calciumequivalent foods. (Source: This information was adapted with permission from the American Dairy Association North East.)
Gary Latta is a dairy product specialist for Northeast Dairy Foods Association, Inc.
Caroline K. Reff is the editor of Northeast Dairy magazine.
2021 FORECAST
NYS Cheese Manufacturers’ Association Sees Flexibility, Health and Safety as Priorities for 2021 BY NATHAN PISTNER AND ALEX SOLLA
A
s we look ahead into 2021 and beyond, it is important to understand the consequences of COVID-19 and the changes the pandemic has brought to our industry. Scientific research has demonstrated that COVID-19 is not transmitted through food, which has been a boon for cheesemakers. In 2020, we saw surges in retail and deli cheese consumption, as well as a huge demand for butter, as families increased their at-home cooking and baking. The expectation is that families will continue to cook at home more in 2021. One of the biggest questions on everyone’s minds is: What can we expect to see from restaurants and schools as their operations fluctuate based on the unpredictable nature of COVID-19 surges in certain areas? The transition from large industrial and restaurant scale consumption to a higher focus on retail consumers occurred early in 2020 and will continue to expand throughout 2021. Cheese manufacturers of all sizes will be trying to fill the increased demand for high quality cheeses made in New York state. The dairy supply chain was challenging last year, exposing flexibility of corporations. Those that were able to change course within days, and even sometimes hours, saw benefits from doing so, which opened up opportunities that may not have been available prior. This was most significantly highlighted by the record setting (both high and low) and rapid fluctuations in dairy pricing. The biggest change we expect to see in 2021 is a higher level of employee health and safety monitoring, specifically as it relates to protection from COVID-19. There will be more
changes with regard to the number of employees in close proximity, contact tracing after exposure and ensuring that there is a steady, healthy workforce capable of meeting the demands for cheese production. Along these same lines will be availability, trust and distribution of vaccines. Having a strategic plan to effectively protect the workforce will be key. Another topic that has been discussed among companies is the need for technology advancements. This may come in the form of process automation to ensure uptime when employee availability is stressed, in addition to flex-space and whether or not employees can meet business needs while working outside the normal work environment. In order to protect employees and production capabilities, complacency will need to be contested by challenging the status quo. Nathan Pistner is president of the New York State Cheese Manufacturers’ Association.
Alex Solla is the executive administrator, secretary and assistant treasurer of the New York State Cheese Manufacturers’ Association.
NED Magazine | First Quarter 2021 • 23
2021 FORECAST
With 2020 in the Rearview Mirror, Is it Time to Address FMMO Issues? BY GARY LATTA
I
t will be a long time before 2020 is forgotten. Those in the dairy industry who lived through 2020 will never forget it. The turmoil and volatility that took place in a little over eight months was unprecedended. Sure, we have experienced volatility before, but not compressed into such a short period of time and of the magnitiude seen last year. At the start of 2020, the U.S. dairy industry was looking ahead to a pretty good year. Prices were respectable, domestic demand was brisk, the economy was strong, unemployment was at record lows, exports were healthy and forecasters predicted a better year ahead. Things started out pretty much as planned with Class III prices near $17.00 a hundredweight for January and February. Suddenly, news of a new strain of virus called COVID-19 from China was spreading across Europe and the United States. We began lockdowns. Dairy product demand suddenly shifted away from businesses, schools and restaurants and toward retail. In just two months, unemployment shot up from a healthy 3.5% in February to near 15% in April. The dairy industry had to adjust quickly. The U.S. government took a number of steps to assist those in need. Among these was the creation and implementation of the USDA Food Box Program that moved a considerable amount of dairy products through local channels. The program 24 • Northeast Dairy Foods Association, Inc.
was a lifesaving measure for millions of unemployed and helped shore up weakened milk prices for dairy farmers. So far, the USDA has distributed more than 132 million food boxes in support of American farmers and families affected by the pandemic. Government support mechanisms like the Food Box Program have proven to be succesful. In many ways, these may at least be partially responsible for the wild volatility experienced in 2020 and exposing what some observers point to as weak spots in the Federal Milk Marketing Order system that might need attention. From the $17.00 per cwt Class III price in January-February, April Class III plummeted to $13.07 per cwt, then fell again to $12.04 per cwt in May. By this time, the Food Box Program was well underway and was distributing a variety of dairy products, including lots of cheese, across the country. Moving large amounts of cheese through the program created a spike in demand. As quickly as Class III prices fell, they turned sharply upward in June, July and August. July Class III hit a peak of $24.54 per cwt and was more than double the $12.14 per cwt Class III a mere two months earlier in May. Hang on, because this was just the beginning of the 2020 roller coaster ride. After peaking in July at $24.54, Class III dropped to $16.43 in September, then jumped back up to $23.34 for November — again almost double the $12.14 price in May. Somewhat of a
2021 FORECAST CME Weekly Average Cash Cheddar Block Prices U.S. $ PER POUND
CME Weekly Average Cash Cheddar Block Prices
3.00 2.90 2.80 2.70 2.60 2.50 2.40 2.30 2.20 2.10 2.00 1.90 1.80 1.70 1.60 1.50 1.40 1.30 1.20 1.10 1.00 0.90 0.80 0.70
02/012/2021 GRAPH USDA, DMN; SOURCE CME GROUP USDA/AMS/Dairy Market News, Madison, Wisconsin, (608) 422-8587 Dairy Market News website: www.ams.usda.gov/market-news/dairy
2017
2018
2019
2020
2021
Class III Milk Price at 3.5%Test Class III Milk Price at 3.5%Test
PER CWT $24.50 $23.50 $22.50 $21.50 $20.50 $19.50 $18.50 $17.50 $16.50 $15.50 $14.50 $13.50 $12.50 $11.50
Jan
Feb
Mar
Apr
12/30/2020 - SOURCE, USDA, AMS, MIB; GRAPH, USDA, AMS, DMN USDA/AMS/Dairy Market News, Madison, Wisconsin, (608) 422-8587 Dairy Market News website: http://www.ams.usda.gov/market-news/dairy
May
Jun
Jul
2016
Aug
2017
Sep
Oct
2018
Nov
2019
Dec
2020
NED Magazine | First Quarter 2021 • 25
2021 FORECAST pattern was beginning to emerge, hinting that these peaks and valleys coincided with each USDA announcement, or lack of, regarding a new round of the Food Box Program. Since May, the USDA has announced five rounds of government support under the Food Box Program. Up until late December, there was uneasiness and speculation as to whether the Food Box Program was going to be extended or expire. As you may have guessed, Class III prices responded and fell to $15.72 for December. Once the fifth round was announced, cheese prices suddenly began to firm up again in early January 2021. The USDA will purchase up to $1.5 billion worth of food for delivery through the end of April 2021 in this fifth round. The price volatility we witnessed in 2020 comes with its challenges. The FMMO was not designed for massive demand shifts and significant government intervention in such a short period of time. The way milk is priced under the FMMO, with Class I forward-announced and Class III announced later, works quite well under normal circumstances. Class I, being the highest priced milk by design, is of greater price-value than Class III most of the time. It is when Class III is suddenly and sharply driven up by skyrocketing cheese prices that Class III milk can be of a higher monthly value than the Class I fluid milk that was anounced a few weeks earlier. It is under these rare circumstances that we experience events like negative producer price differentials and depooling of milk in FMMOs with multiple component pricing regulations.
Those FMMOs with significant amounts of milk used for purposes other than Class I fluid, like the Northeast, have these depooling provisions. Many in the industry believe negative PPDs, which are FMMO accounting rules, and depooling are not favorable for the dairy producer and need attention. Some point to the fact that with fluid milk consumption declining, Class I utilization in the FMMOs has also been falling, and there may be a need to address this in relation to Class II, Class III and Class IV. In recent months, news articles have an increasing number of comments from farm groups regarding the need to address FMMO issues. Suggestions range from small regional tweaks to a thorough examination and overhaul of the entire system nationwide. A few university economists have mentioned that a future hearing could indeed be in the works, and that it may not be too early to start thinking about the next farm bill. Many of these ideas are serious issues that could easily take a couple of years to work out, as everything from price formulas to pooling could be on the table. Gary Latta is a dairy product specialist for the Northeast Dairy Foods Association, Inc.
HEADLINE USDA Program Includes List of Dairy Foods to Distribute to Needy Changes were recently announced by the USDA to The Emergency Food Assistance Program, adding fluid milk to the available foods list. The dairy foods that the USDA’s Food and Nutrition Service in 2021 include: • American cheese: reduced fat, loaves and refrigerated • Cheddar cheese: yellow, shredded and refrigerated • 1% milk: shelf-stable UHT
• 1% milk: individual portions, shelf-stable UHT • Milk: refrigerated
With more than $322 million available in 2021, The Emergency Food Assistance Program allows states to provide food to food banks, which distribute the items to food pantries and soup kitchens that serve local communities. 26 • Northeast Dairy Foods Association, Inc.
photos courtesy of the Chautauqua Harbor Hotel
We hope to see you in person in 2021! MARK YOUR CALENDARS NOW:
2021 NORTHEAST DAIRY ANNUAL CONVENTION August 18 - 20, 2021 HELD AT THE BEAUTIFUL The Chautauqua Harbor Hotel is 9 acres with a beautiful 1,100 feet of lake frontage where you can relax and enjoy the perfect get away. Bring the family and enjoy the outdoor recreation and water sports, as well as the proximity to wineries and venues like the National Comedy Center. The convention will once again offer a variety of speakers, vendors, networking and social events. It’s not to be missed.
Chautauqua Harbor Hotel Celoron, New York www.thechautauquaharborhotel.com
HOSTED BY:
Watch for more information coming soon. NED Magazine | First Quarter 2021 • 27
Source: MilkPEP
LOOKING AHEAD
MilkPEP Relaunches “got milk?” Campaign With a Digital Twist
I
f you’re over the age of 30, you most certainly remember the iconic “got milk?” campaign that drove the consumption of milk through a series of witty television commercials and celebrities donning milk mustaches in newspaper and magazine print ads everywhere. The campaign was “retired” in 2014, but, in the wake of increased milk consumption associated with the COVID-19 pandemic, MilkPEP rolled out an updated version of “got milk?” targeted not only to families but also directly to high school and college-age Americans through social media. Since 28 • Northeast Dairy Foods Association, Inc.
the campaign, executed by PR agency Weber Shandwick, debuted on 20 television networks and streaming services in August 2020, Gen Zers everywhere have been sharing their love of milk and their tricks and talents all over social media, as they enjoy the nutrition and deliciousness of milk.
A LOOK BACK: FOCUSING ON MILK DEPRIVATION The original “got milk?” campaign was started in 1993 by the California Milk Processor Board in response to declining liquid milk sales. The board hired San Francisco-based advertising agency
Goodby Silverstein & Partners to create a campaign to counteract the lack of milk consumption. In a television interview from 2015, agency partner Jeff Goodby said his team wasn’t originally excited about marketing milk. “It was the most boring product in the world,” he said. “… Everybody’s got it. Everybody knows as much as they want to know about it.” Little did he know back in the mid-’90s that what at first seemed dull turned into a campaign that would become iconic and last for nearly two decades. While developing the campaign, the agency held a number of focus groups. According to Goodby, a
LOOKING AHEAD women in one focus group commented that the only time she noticed milk was when she ran out of it. A lightbulb went off, as the agency decided it would not try to sell milk itself but instead sell what it termed “the element of milk deprivation.” After much debate, including concerns over questionable grammar, the memorable “got milk?” tagline was born. Shortly thereafter, the tagline was licensed to the Milk Processor Education Program, better known as MilkPEP.
What Is MilkPEP?
MilkPEP or the Milk Processor Education Program, based out
of Washington, D.C., is funded by the nation’s milk companies, including members of the Northeast Dairy Foods Association, with an aim to educate consumers and increase the consumption of fluid
milk. According to MilkPEP, its purpose is to “increase awareness for
milk’s nutritional benefits and safeguard milk’s reputation against competitive claims and anti-milk message that impact consumers’
purchasing decisions.” The organization works in partnership with Dairy Management Inc., Innovation Center for U.S. Dairy, The
CELEBRITIES AND MILK MUSTACHES
International Dairy Foods Association, The California Milk Processor
The first television commercial debuted in 1993 and was called “Aaron Burr.” It focused on a historian surrounded by a room of antiquities who was jamming his mouth full of bread and peanut butter while calling into a radio contest worth $10,000. When the radio host asks, “Who shot Alexander Hamilton?” the man’s answer is indecipherable because his mouth is so full. As time runs out, he reached for his milk carton only to realize it is empty, and he has given away his shot at the valuable prize. But it was the long list of print ads that really made a lasting impression. Featuring the “got milk?” tag line, these ads featured more than 350 A-list celebrities like supermodel Naomi Campbell, actor Harrison Ford, former President Bill Clinton, pop star Britney Spears and even a Sesame Street favorite, Kermit the frog — all sporting milk mustaches. The opportunity to appear in the campaign was a big deal for celebrities, who were only paid $25,000 for the endorsement, which was minimal for the time. (Many of the celebrities donated their earnings to charity.) And, while celebrities were eager to appear, one thing was required: they had to be actual milk drinkers! CONTINUED ON NEXT PAGE ►
Board, the California Milk Advisory Board and the National Milk
Producers Federation. It is monitored by the U.S. Department of Agriculture’s Agricultural Marketing Service.
The Agri-Mark dairy co-operative has proudly adopted the U.S. Dairy Stewardship Commitment, affirming to our customers, our consumers and the global marketplace our pledge to responsible dairy production as we nourish the communities we serve. For more information about the U.S. Dairy Stewardship Commitment, go to:
commitment.usdairy.com
NED Magazine | First Quarter 2021 • 29
LOOKING AHEAD 2021 Oppor tunities WIN WITH KIDS Q1 BUILD A BETTER BREAKFAST
Q2
Q3
Q4
OLYMPICS 100 Days Out Olympic Games Paralympic Games
HALLOWEEN & HOLIDAYS
April 14 July 23-Aug 8 Aug 24-Sept 5
ALWAYS-ON AND CULTURE
National Milk Day (1/11)
National Nutrition Month (March)
National Dairy Month (June)
National Chocolate Chip Cookie Day (8/4)
National Chocolate Milk Day (9/27)
National Egg Nog Day (12/24)
Source: MilkPEP
The campaign lasted for 19 years and won multiple awards. It is estimated that it was so effective that 80% of all U.S. consumers were familiar with the phrase “got milk?” While it was advertising genius, there was a problem. According to the American Dairy Association Northeast, the campaign was extremely popular, but it didn’t seem to make people drink more milk. In fact, according to a report by CoBank, during the campaign’s reign, milk consumption actually declined nationally due to the introduction of non-dairy alternatives and healthy lifestyle choices that at the time disputed the nutritional value of milk.
PANDEMIC BRINGS MILK BACK, MILKPEP RELAUNCHES “got milk?” When the pandemic struck in early 2020, Americans started drinking more milk, with sales up anywhere from 4% 30 • Northeast Dairy Foods Association, Inc.
according to IRI to 11% according to Nielsen. As people stayed at home, they also went back to basics, and milk was one of them. In fact, according to PR Newswire, 72% of mothers (typically the primary shoppers in the family) said that milk was first on their grocery lists. More people were cooking at home, eating a lot of cereal and finding time for baking — all of which spurred the growth in milk consumption. It seemed the perfect time to relaunch the “got milk?” campaign. MilkPEP rolled out an updated version of the “got milk?” campaign in August 2020. But this time, it was not only targeted at families but also Gen Zers, including high school and college-age Americans. The difference was certainly a sign of the times, as a key strategy to the updated “got milk?” campaign was the use of social media. According to PR week, celebrities were no longer the main attraction — and the milk mustache took a back seat, as well,
as the target demographic is much more likely to take notice of social media influencers and/or actively participate in the information instead of simply reading or watching it. According to MilkPEP’s website, “The industry is bringing forward ‘got milk?’ not to return to the past but to bring back this iconic tagline and product in a refreshed world where milk is undoubtedly essential and top of mind among consumers — and where the category’s momentum is on an upward trajectory.” “The new ‘got milk?’ campaign is for the social-first generation,” said Yin Woon Rani, chief executive of MilkPEP, in an interview with CNN Business. “When things got tough, we Americans literally went out and got milk. And, it wasn’t just that they were drinking more of it. They were finding fun and surprising ways to use it.” The new campaign gained attention
LOOKING AHEAD quickly when U.S. Olympic gold medalist Katie Ledecky swam the length of a pool with a glass of milk on her head — and didn’t spill a drop! The video went viral, and, soon, young milk drinkers everywhere were “doing something amazing” by showing off their own talents and tricks with a glass of milk. The campaign encouraged people to post their videos on TikTok and other social platforms using the hashtag #gotmilkchallenge. Soon, people were dancing, a young man opened a jug of milk with his foot, a kid jumped into a kiddie pool filled with milk and cereal, a young woman did a cartwheel while holding a full glass of milk, a toddler showed off an igloo built out of plastic milk jugs, and, of course, creative holiday baking videos were too numerous to count. In the first week, videos with the hashtag #gotmilkchallenge received more than 2.3 billion views, according to information from the American Dairy Association North East. A signature music track was also created as part of the campaign, as Shindig Music + Sound came up with a hip-hop inspired jingle of sorts with lyrics by rapper and influencer Chief Wakil. Lyrics like “Full of calcium, milk. Make it number one, milk. Guzzle milk. Drink it all. Make yourself a waterfall,” were just some of the catchy phrases that began making an impression on a whole new demographic of milk drinkers. Milk literally “spilled” all over social media, and, to capitalize on the initial success, MilkPEP has continued the momentum by providing resources for brands to tap into TV, digital advertising and partnerships and promotions with retailers. The MilkPEP website (www.milkpep.org) offers an entire awareness campaign that includes program resources, social media and
shopper assets and influencer content. Specific “activation opportunities” last fall included resources tied into promoting milk on Halloween and the holiday season. The first quarter of 2021 rolled out the Better Breakfast Program, which includes “But First, Milk,” a program stressing the idea that kids energize in the morning after a nutritious breakfast that includes milk. On National Milk Day, Jan. 11, 2021, General Mills Big G cereal and the “got milk?” campaign announced a historic partnership, as General Mills debuted limited edition packaging of popular cereals (Cheerios, Honey Nut Cheerios, Trix, Cinnamon Toast Crunch, Lucky Charms and Cocoa Puffs) featuring the “got milk?” tagline and iconic characters like Lucky the Leprechaun and BuzzBee with milk mustaches giving a nod to the original campaign. The campaign also stresses the benefits of starting the day with both milk and cereal, which both General Mills and MilkPEP backed up with information on how both are “top notch nutrition,” affordable and simple to make, according to DairyFood.com. According to General Mills, kids age 6 to 12 can get 53% of their daily milk consumption from eating a bowl of cereal, and adults age 18 and up get 66%. These limited edition cereal boxes also include a $2 rebate coupon that consumers can redeem digitally when they buy 2 gallons of milk and two boxes of General Mills cereal. The first “got milk?” campaign lasted nearly 20 years, so who knows how long this one will last, but MilkPEP continues to provide resources that tie in with upcoming dates and events, like the 2021 Summer Olympics, to raise awareness and promote consumer purchase of milk. NED Magazine | First Quarter 2021 • 31
LOOKING AHEAD
Name the Products Associated with These Other Iconic Slogans
The ”got milk?” slogan was named one of the most memorable and recognizable slogans and taglines in advertising by Business Insider. Can you name the brands associated with the 14 other most popular? Answers appear on page 43. 1. Think small. 2. The pause that refreshes. 3. Good to the last drop. 4. Where’s the beef? 5. M’m! M’m! Good 6. Sometimes you feel like a nut. Sometimes you don’t. 7. The best a man can get 8. The breakfast of champions 9. A diamond is forever 10. Just do it 11. The Ultimate Driving Machine 12. They’re gr-r-eat! 13. Fly the friendly skies 14. All the News That’s Fit to Print (Source: MilkPEP)
32 • Northeast Dairy Foods Association, Inc.
LOOKING AHEAD
Creating Opportunities for the Future: Why a Dairy Company Invested in English Language Learning Software BY LAURA MCLOUGHLIN
A
t Byrne Dairy’s Syracuse Cold Storage facility, in New York, managers were having a difficult time effectively communicating with non-English speaking employees. While the company provides important information and training in both English and Spanish, it wanted to give its employees the opportunity to overcome these language barriers to do more. The company purchased Learning Upgrade licenses so Spanish-speaking employees can increase their English skills. Each shift, these employees are given time to use company computers to work in the Learning Upgrade program. “They take advantage of it, and they are doing a great job,” said Syracuse Cold Storage Supervisor Jim Begay. Based on what employees had to say, they’re taking advantage of it because they are seeing where learning English can take them. “I’ve been here for so long, it’s good to finally have the opportunity to grow,” said Alex, a forklift operator, through translation. “This gives me the chance to move up in the future. I could get a promotion or become a supervisor. In the future, I can do things to help others who need a translator or who do not have the skills.” Ada, who works in direct shipping, has made progress not just speaking but understanding the language, too. She said since using Learning Upgrade, she can better understand when English
words are shortened or abbreviated in conversation — something native speakers often do without realizing. “I learn a lot of words, (grammar), vocabulary,” Ada said. “It helps (me) grow language. Helps (me) write.” These are exactly the outcomes Byrne Dairy was hoping for. Investing in its employees has not just improved employee/supervisor communication, but the higher English skills among employees creates a more efficient workplace and gives the company an opportunity to shape its team to grow from within. The employees are also improving their soft-skills by working as a team and supporting and helping each other through the program.
“It has helped them become more open and comfortable,” Begay said. “I’m very proud of all of them.” More information about Learning Upgrade is available through New Readers Press at www.newreaderspress. com/learning-upgrade. This article was reprinted with permission of ProLiteracy. ProLiteracy is the largest adult literacy and basic education nonprofit membership organization in the nation. ProLiteracy advocates on behalf of adult learners and the programs that serve them, provides training and professional development, and publishes materials used in adult literacy and basic education instruction. For more information, visit ProLiteracy.org.
NED Magazine | First Quarter 2021 • 33
COVID-19 Updates
Agriculture, Food Processing Organizations Urge NYS Governor to Add Employees Back Into Phase 1b of Vaccine Schedule
A
coalition of organizations representing various agriculture sectors from New York signed a letter in January urging New York Gov. Andrew Cuomo to include agriculture and food processing employees back into Phase 1b of the state’s vaccination schedule as soon as possible. New York State developed a schedule to administer the vaccine based on type of industry and employee, age, health status and other criteria. The state had followed the guidance from the Center for Disease Control that was provided and defined essential workers based upon occupation. Frontline healthcare workers were the first to be eligible to receive the vaccine when it was available under Phase 1a. Phase 1b currently includes first responders, transit workers, educational and childcare employees, individuals living and working in homeless shelters, front facing grocery store employees, and anyone 65 and older. Agriculture workers and food processing and manufacturing employees were originally included in Phase 1b. However, due to fewer than expected quantities of the vaccine that were made available to New York State, those workers were removed from the eligibility list at the last minute prior to the opening of Phase 1b on Jan. 11, 2021. A group of 17 organizations in New York have signed onto a letter that was sent to Cuomo on Jan. 14 requesting that the state include agriculture and food processing employees back into Phase 1b as soon as more vaccines become available. “Throughout the entirety of the pandemic, it has been proven that agriculture and food processing and manufacturing employees are essential to ensuring the continuity of a safe and efficient food supply system,” said Ozzie Orsillo, executive vice president of the Northeast Dairy Foods Association. “We understand this is a fluid and evolving situation and unexpected 34 • Northeast Dairy Foods Association, Inc.
circumstances occur, but we are asking that these employees be first in line when expanding Phase 1b to other populations.” The organizations that signed on to the letter include the Northeast Dairy Foods Association, Inc.; the Northeast Dairy Suppliers Association, Inc.; New York Farm Bureau; New York Apple Association, New York State Brewers Association; New York Wine & Grape Foundation; Long Island Wine Country; New York Cannabis Growers and Processors Association; Robbiehill Dairy Farm, LLC; New York State Agri-Business Association; New York State Cheese Manufacturers Association; Northeast Dairy Producers Association; Seneca Lake Winery Association; New York State Grange; Farm Credit East; American Farmland Trust and The New York Wine Industry Association. Organizations that signed on to the letter also requested that state agencies and local health departments work with specific industries and individual facilities to overcome logistical challenges to inoculating agriculture and food processing employees. In particular, farm workers may have difficulties with transportation or accessing a vaccination site due to their rural location. Additionally, food processing and manufacturing facilities may have hundreds or even thousands of employees at one facility that would be eligible to receive the vaccination. These facilities may also be ideal locations to host a site to administer the vaccines to large amounts of people at once. The agriculture and food processing industries in New York are some of the largest economic sectors and represent thousands of employees that provide products and food to local communities, the Northeast region, nationally and internationally. According to Alex Walsh, vice president of regulatory affairs for the Northeast Dairy Foods Association, Inc., many other member states are facing the same difficulties in getting food processing employees prioritized for vaccinations.
COVID-19 Updates
Many Questions Still Loom About COVID-19 and the Vaccine
While most of us are still waiting to get vaccinated for COVID-19, many questions remain. And, it seems like information changes every day. Here is some updated information from the Center for Disease Control on the COVID-19 vaccine.
ARE THE VACCINES SAFE? The vaccines are safe. The U.S. vaccine safety system makes sure that all vaccines are as safe as possible. All the COVID-19 vaccines that are being used have gone through the same safety tests and meet the same standards as other vaccines produced throughout the years. A system is in place across the entire country that allows the CDC to watch for safety issues and make sure the vaccines stay safe.
WHY ARE VACCINES GIVEN IN TWO DOSES? Most of the vaccines currently approved for use are given in two shots, one at a time and spaced apart. The first shot gets your body ready. The second shot is given at least three weeks later to make sure you have full protection. If you are told you need two shots, make sure that you get both of them. The vaccines may work in slightly different ways, but all types of the vaccines will help protect you. Note that it takes time for your body to build protection after any vaccination. COVID-19 vaccines that require two shots may not protect you until a week or two after your second shot.
DOES IMMUNITY AFTER GETTING COVID-19 LAST LONGER THAN PROTECTION FROM A COVID-19 VACCINE? The protection someone gains from having an infection (called natural immunity) varies depending on the disease, and it varies from person to person. Since this virus is new, we don’t know how long the natural immunity might last. Current evidence suggests that reinfection with the virus that causes COVID-19 is uncommon in the 90 days after initial infection. In regards to vaccination, we won’t know how long immunity lasts until we have more data. Both natural immunity and vaccine-induced immunity are important aspects of COVID-19 that experts are trying to learn more about. The CDC will keep the public informed as new evidence becomes available.
WHAT CAN I EXPECT AFTER GETTING A VACCINE? The vaccine will help protect you from getting COVID-19. You may have some side effects, which are normal signs that your body is building protection. These side effects may impact your ability to do daily activities but should NED Magazine | First Quarter 2021 • 35
COVID-19 Updates go away in a few days. Side effects may include: • Pain and swelling at the injection site • Fever • Chills • Tiredness • Headache Note that having any type of side effects does not mean that you have COVID-19. If you have questions about your health after your vaccine, call your doctor, nurse or clinic. As with any medication, it is rare but possible to have a serious reaction, such as not being able to breathe. It is very unlikely that this will happen, but, if it does, call 911 or go to the nearest emergency room.
I’VE ALREADY HAD COVID-19 AND RECOVERED. DO I STILL NEED TO GET VACCINATED? Yes, the COVID-19 vaccine should be offered to you regardless of whether you already had a COVID-19 infection. You should not be required to have an antibody test before you are vaccinated.
DO I STILL NEED TO WEAR A MASKS AND AVOID CLOSE CONTACT WITH OTHERS IF I HAVE RECEIVED TWO DOSES OF THE VACCINE? Yes. While experts learn more about the protection that COVID-19 vaccines provide under real-life conditions, it will be important for everyone to continue using all the tools available to them to help stop this pandemic, like covering your mouth and nose with a mask, washing hands often and staying at least 6 feet apart from others. Together, COVID-19 vaccination and following the CDC’s recommendations will offer the best protection from getting and spreading COVID-19. Experts need to understand more about the protection that COVID19 vaccines provide before deciding to change recommendations on steps everyone should take to slow the spread of the virus. Other factors, including how many people get vaccinated and how the virus is spreading in communities, will also affect this decision.
WHAT PERCENTAGE OF THE POPULATION NEEDS TO GET VACCINATED TO HAVE HERD IMMUNITY FROM COVID-19? Experts do not know what percentage of people will need to get vaccinated to achieve herd immunity to COVID-19. Herd immunity is a term used to describe when enough people have protection — either from previous infection or vaccination — that it is unlikely a virus or bacteria can spread and cause disease. As a result, everyone within the community is protected even if some people don’t have any protection themselves. The percentage of people who need to 36 • Northeast Dairy Foods Association, Inc.
have protection in order to achieve herd immunity varies by disease.
WHAT IF I CURRENTLY HAVE COVID-19? CAN I STILL GET VACCINATED? Anyone currently infected with COVID-19 should wait to get vaccinated until after the illness has resolved and after meeting the criteria to discontinue isolation. In addition, current evidence suggests that reinfection with the virus that causes COVID-19 is uncommon in the 90 days after the initial infection. Therefore, people with a recent infection may delay vaccination until the end of that 90-day period if desired.
WHAT IS THE DIFFERENCE BETWEEN QUARANTINE AND ISOLATION?
Isolation keeps someone who is infected with the virus away from others, even in their homes. Quarantine keeps someone who might have been exposed to the virus away from others.
COVID-19 Updates
WHEN AM I REQUIRED TO QUARANTINE? You are required to quarantine if you have been in close contact with someone who has COVID-19. However, people who have tested positive for COVID-19 within the past 90 days and recovered do not have to quarantine or get tested again as long as they do not develop new symptoms. If you are required to quarantine, stay home* after your last contact with a person who has COVID-19. Watch for fever (100.4 F), cough, shortness of breath or other symptoms. Stay away from others, especially people who are at higher risk of getting very sick from the disease. * Your local public health authorities make the final decision on how long quarantine should last, based on local conditions and needs. Follow the recommendations of your local public health department if you need to quarantine.
WHAT IS CONSIDERED CLOSE CONTACT WITH SOMEONE WHO HAS COVID-19? You are considered to have been in close contact with someone if: • You were within 6 feet of someone who has COVID-19 for 15 minutes or more. • You provided care at home to someone who is sick with COVID-19. • You had direct physical contact with the infected person, e.g., hugging or kissing them. • You shared eating or drinking utensils. • The infected person sneezed, coughed or somehow got respiratory droplets on you.
What’s Happening in Your State?
For more information on COVID-19 vaccinations in your state, contact the following: CONNECTICUT https://portal.ct.gov/Coronavirus/ COVID-19-Vaccinations MAINE https://www.maine.gov/covid19/vaccines MASSACHUSETTS https://www.mass.gov/info-details/ covid-19-updates-and-information#daily-updatesNEW HAMPSHIRE https://www.nh.gov/covid19/resources-guidance/ vaccination-planning.htm NEW JERSEY covid19.nj.gov/app NEW YORK https://covid19vaccine.health.ny.gov/ phased-distribution-vaccine#phase-1a PENNSYLVANIA https://www.health.pa.gov/topics/disease/ coronavirus/Pages/Vaccine.aspx RHODE ISLAND https://covid.ri.gov/vaccination VERMONT https://www.healthvermont.gov/covid-19/vaccine
(Source: CDC) NED Magazine | First Quarter 2021 • 37
MemberProfile
BelGioioso Award-Winning Cheeses Rely on Old-World Craftsmanship, Fresh Local Milk BY COURTNEY KLESS
W
hen Errico Auricchio moved from Italy to the United States more than four decades ago, he had a mission: “To make great Italian cheeses using old-world craftsmanship and fresh quality milk.” He would find what he was looking for in Wisconsin, and, in 1979, he founded BelGioioso Cheese. Auricchio was joined in his journey by two master cheesemakers, Mauro Rozzi and Gianni Toffolon. In the beginning, the company produced only sharp provolone, but, as specialty cheeses increased in popularity and customers requested more varieties, offerings were expanded to include Asiago, mascarpone, Parmesan, Romano, fresh mozzarella, burrata, G o rg o n z o l a a n d m o r e . To d a y, BelGioioso produces more than 30 varieties of cheese in bulk and retail sizes and distributes its products both nationally and internationally. “As we expand, we still maintain an artisan touch,” said Auricchio, who remains the company’s president. “Each cheese variety is treated as an individual, and the manufacturing plants are specifically designed to support each cheese.” 38 • Northeast Dairy Foods Association, Inc.
MemberProfile The company currently operates eight manufacturing facilities in Wisconsin and a brand new 100,000-square-foot plant in Glenville, New York, that opened in 2020. Tim Cronin, the plant’s general manager, said the close proximity to BelGioioso’s farm partners and access to both the New York and New England markets made Glenville an attractive location. “We felt Glenville, New York, was a balanced geographical location for our new facility,” he said. “The new plant will allow us to expand our fresh cheese line and increase production for more efficient distribution to this Northeast region. We see growing consumer demand for high-quality fresh cheeses from locally sourced milk, and we intend to fill this void within the Northeast corridor.” Access to fresh, quality milk has been one of BelGioioso’s keys to success. The company purchases milk from more than 200 farms in New York and Wisconsin — all of which are located within a 40-mile radius of each manufacturing plant. This means that milk is typically made into cheese the same day it is milked from the cow. As a result, BelGioioso’s cheese has consistently been recognized for its high quality. In 2019 alone, the company won 14 awards for its cheeses, with fresh mozzarella, mascarpone, stracciatella, Parmesan, Provolone and artigiano all receiving first place blue ribbons in their respective categories. All in all, BelGioioso has received more than 130 awards during its 41-year history. “What sets BelGioioso’s cheese apart from others is the use of local, fresh, quality milk,” said Auricchio. “Our best assets are our consistency and quality of flavor, along with the accessibility to consumers at a fair price across the country. The commitment to quality is in our DNA. Even in the dark times, we did not compromise on quality.”
That dedication to quality goes hand-in-hand with another key part of the BelGioioso’s culture: patience. From home-grown starter cultures to natural salt brining to aging, the company follows traditional cheesemaking practices for all of its cheeses, something that began with Auricchio’s great grandfather and has been passed down to his children. Though the process takes more time, it ensures the cheese has the best flavor and texture. “We are always striving to do what’s best for the cheese,” said Auricchio. “BelGioioso’s goal is simple: to continue serving the specialty cheese industry with top quality cheeses at a fair price.” Courtney Kless is a writer/editor for Northeast Dairy Media.
In 2019, Belgioioso placed first, Best of Class at the U.S. Championship Cheese Contest for the following products: • fresh mozzarella • artigiano vino rosso • mascarpone • crema di mascarpone • Parmesan • Provolone The company’s stracciatella placed first, Best of Class, in 2019 at the American Cheese Society.
NED Magazine | First Quarter 2021 • 39
Member News
NDSA Adds Trade School Eligibility to 2021 Scholarships
T
he Northeast Dairy Suppliers Association, Inc., is now accepting applications for its scholarship program, which last year was renamed the Bruce W. Krupke Memorial Scholarship in honor of the association’s past executive vice president who passed away in 2020. While the scholarship has been helping students obtain undergraduate degrees for a number of years, this is the first time the award has been opened up to those attending trade school. The decision reflects the association’s understanding of the need to promote studying a trade and a more robust skilled labor workforce, particularly at a time when many of its own members struggle to fill these vital jobs within the industry. “When you think of scholarships, the first thing that comes to mind is usually college,” said Bill Elliott, president, board of directors, NDSA. “But, the dairy industry is one example of a place where skilled workers — our own ‘boots on the ground’ — are highly valued and can make a very good living. In support of our members and their employees, we thought it was appropriate to offer this opportunity to those attending trade school, as well as those going to traditional colleges.” NDSA is offering a number of scholarships in the amount of $2,000 for undergraduate students majoring in subjects related 40 • Northeast Dairy Foods Association, Inc.
to the dairy/food industry, those enrolled in an agricultural program related to the dairy/food industry and those enrolled in a trade school pursuing related skills. The association is also offering $1,000 scholarships for undergraduate and trade school students pursuing any field of study. To be considered, applicants must be enrolled in college or trade school full-time during the 2021-2022 academic year at an accredited institution. All applicants must have a G.P.A. of 2.5 or better and be an immediate family member of a current NDSA or Northeast Dairy Foods Association employee in good standing. Student members of NDSA also are eligible. Applications must include a copy of a student’s latest transcript, one letter of recommendation (either extracurricular or academic) and proof of enrollment. Those starting school in the fall of 2021 may provide a letter of acceptance as proof of enrollment. Last year, NDSA gave out $25,000 in scholarships. The funding comes from member dues, the annual clambake and sponsorships of various dairy events. Applications are available online at neastda.org and must be received by Tuesday, June 1, 2021. Winners will be notified by July 15. For more information, contact Leanne Ziemba, office coordinator, at lz@nedairyfoods.org.
Member News
Member and Industry News
Farmer and rancher delegates to the American Farm Bureau Federation’s 102nd Annual Convention adopted policies to guide the organization’s work in 2021. Key topics ranged from farm diversity to farm labor and dairy policy to livestock marketing. For the first time in AFBF history, delegates met and voted virtually due to COVID-19. “Our Farm Bureau delegates showed that no challenge, not even a pandemic, will keep them from working to improve the lives of America’s farmers and ranchers,” said AFBF President Zippy Duvall. “Their work not only sets policy for 2021, it will also serve as a guide for AFBF as we prepare to work with a new president and a new Congress to ensure we continue to lead the world in producing healthy and safe food, fiber and fuel.” Cabot Creamery in Cabot, Vermont, is seeking state approval to build a biogas
generator at its facility that will be able to generate renewable energy from a byproduct of its manufacturing process. The creamery is seeking permission from the Public Utilities Commission to operate a bio-digester and electric generation equipment at the location. The project would use waste water that contains organic material from milk, cheese and other dairy products, which could then be converted into biogas for uses at the facility. Chobani recently announced that veteran CNN and Bloomberg TV correspondent Cristina Alesci will serve the company as chief corporate affairs officer. Reporting to President and Chief Operating Officer Peter McGuiness, Alesci will lead external and internal communications, government and community relations, social impact and
philanthropy, as part of the company’s executive leadership team. In other Chobani news, the company has donated close to $70,000 to help Clear Path for Veterans resume serving a weekly complimentary canteen lunch to veterans, active duty, guard, reserves and their immediate families. Based in Chittenango, New York, Clear Path for Veterans empowers service members, veterans and their families through supportive programs and services. While the nonprofit will not be able to resume in-house lunches right now, it will be able to take food services to those in need with the purchase of a new food truck thanks to the Chobani grant. Chr. Hansen’s CEO Mauricio Graber reported the company’s first quarter “came in quite strong on a
NED Magazine | First Quarter 2021 • 41
Member News
NEW MEMBER The following new member recently joined Northeast Dairy Foods Association, Inc., or the The Northeast Dairy Suppliers Association, Inc. For more information about the benefits and services available in both the Northeast Dairy Suppliers Association, Inc., and the Northeast Dairy Foods Association, Inc., contact Alex Walsh, associate vice president of regulatory affairs, at 315-452-MILK (6455) or aw@nedairyfoods.org.
ENGIE
Leonard Tilton
Business Development Manager
1900 Oak Blvd.
Houston, Texas 77056 www.engie-na.com 315-264-1025
lenny.tilton@engie.com
relatively easy comparable from Q1 from last year with good performance across our business, especially within Health & Nutrition.” He said the company was able to win new business, launch new products in Food Cultures & Enzymes and drive upselling in key markets such as cheese — all despite the difficulties of COVID-19. Chr. Hansen has more product launches scheduled for the current financial year, which will help to ensure that “we have a healthy commercial pipeline in the years to come.” ErgonArmor is pleased to announce that Steve Cloutier has been named North America food and beverage market manager, serving the food, beverage and pharmaceutical market sectors. In this role, Cloutier will be responsible for growing ErgonArmor’s fully-vitrified Tufchem Tiling System flooring business in new construction and expansion projects for manufacturing facilities. He will also promote ErgonArmor corrosion and wear protection solutions for maintenance and construction of processing facility infrastructure and equipment in these sectors. Cloutier has been with ErgonArmor for 12 years, most recently serving as area sales manager for the Midwest U.S. Region. His experience and knowledge of these markets has prepared him to tackle the unique challenges of food, beverage and pharmaceutical flooring needs and to provide long-lasting, corrosion-resistant solutions. Farm Credit East donated $45,500 to Northeast charities as part of a virtual customer appreciation meeting held in November 2020. The financial cooperative donated $25 on behalf of each attendee, and the attendee’s branch office then selected a local charity to receive the funds. Its 20 branch offices donated to 38 organizations throughout
42 • Northeast Dairy Foods Association, Inc.
the Northeast. Recipient organizations included food banks and pantries, community and health support organization, youth programs and various other charitable efforts. H.P. Hood LLC recently purchased a former paper manufacturing plant adjacent to the milk and ice cream maker’s milk plant in Agawam, Massachusetts, for $3.55 million. The current 94,000-square-foot Agawam plant processes fluid milk, bottled milk, orange juice and fruit drinks, as well as ice cream mixes. It is also a distribution point for the company’s other foods that have to be kept cold. What H.P. Hood plans to do with the property has yet to be announced. Hydrite Chemical Co., an integrated manufacturer and supplier of chemicals and related services, is pleased to announce plans to move to Golf Parkway Corporate Center in the heart of the city of Brookfield, Wisconsin. Hydrite’s new office space will feature flexible floor plates with floor-to-ceiling windows, expansion capability, state-of-the-art design and exclusive amenities. The company will fully occupy a two story, 45,000-square-foot office building, which nearly doubles its current occupancy. Hydrite’s new corporate headquarters is designed with future growth in mind. Congratulations to Alex Walsh, associate vice president of regulatory affairs at Northeast Dairy Foods Association, Inc., for being named director at Empire State Council of Agricultural Organizations. This new role is in addition to his duties at NDFA. Perry’s Ice Cream joined with ConnectLife, the primary supplier of blood to area hospitals and health
Member News systems during the month of January, to increase Western New York’s blood supply at a time of year when donations are typically down due to the holidays and weather. The COVID-19 pandemic has also greatly impacted people’s ability to donate blood. As a delicious incentive, Perry’s offered a voucher for a free pint of ice cream to every donor in January redeemable at participating grocery and convenience stores. Stewart’s Shops announced in January that it has acquired the assets of Red-Kap, which includes eight convenience stores, four car washes and its fuel distribution to over 75 dealers. Stewart’s will maintain the branding of three Mobil, Citgo and Sunoco stations and will convert two of the Red-Kap
locations into traditional Stewart’s Shops. The remaining six locations will become “Stewart’s Express” shops, which will have limited product offerings and will not serve hand-scooped ice cream. The locations, all in New York State, are already undergoing conversions and are expected to be completed in 2021. Jack Herman of Upstate Niagara Cooperative, Inc., has retired after nearly 50 years in the dairy business. From dairy farmer to driver to producer, Herman has worked in almost every area industry. Congratulations! The USDA announced the appointment of Michael Dykes, D.V.M., president and CEO of the International
ANSWERS: Name the Products Associated with These Other Iconic Slogans (from pg 32) 1. Think small. (Volkswagen; 1960s) 2. The pause that refreshes. (Coca-Cola, dating from 1929) 3. Good to the last drop. (Maxwell House; 1915)
8. The breakfast of champions (Wheaties: 1933) 9. A diamond is forever (De Beers; 1940s)
T h e Ve r m o n t A g e n c y o f Agriculture, Food and Markets officials announced the full launch of the Vermont-based Northeast Dairy Business Innovation Center funded by the USDA Agriculture Marketing Service and strongly supported by incoming Chairman of the Appropriations Committee Vermont Sen. Patrick Leahy.
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10. Just do it (NIKE; 1988)
4. Where’s the beef? (Wendy’s; 1984)
11. The Ultimate Driving Machine (BMW; 1973)
5. M’m! M’m! Good (Campbells Soup; 1930s)
12. They’re gr-r-eat! (Kellogg’s Frosted Flakes; 1952)
6. Sometimes you feel like a nut. Sometimes you don’t. (Almond Joy/ Mounds from Hershey; 1970)
13. Fly the friendly skies (United Airlines; 1965)
7. The best a man can get (Gillette; introduced in 1989 at the Superbowl)
Dairy Foods Association , and Becky Rasdall, IDFA vice president of trade policy and international affairs, to the Agricultural Policy Advisory Committee for Trade and the Agricultural Technical Advisory Committee for Trade in Processed Foods, respectively.
New & Used Farm Pick Ups & Milk Transports
Kurt Neidlinger Cell: 315-558-1398 ● Mark Richardson Cell: 315-345-6113
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14. All the News That’s Fit to Print (The New York Times;1896)
NED Magazine | First Quarter 2021 • 43
Member News
Are You Using the Advantages of the Buyers Guide to Share Information About Your Company? The guide is rich with supplier content, including articles, videos, classifieds and more
T
he Northeast Dairy Buyers Guide (www. buyersguide.neastda. org) is rich with content, including articles, videos, classifieds and other valuable information. Our Buyers Guide can be a great resource for members looking to share information about their companies and products, as well as develop social media and digital marketing campaigns.
Every active member of the Northeast Dairy Foods Association, Inc., and the Northeast Dairy Suppliers Association, Inc., has a presence in the Buyers Guide, and the most active ones utilize it to craft their messages in many ways. A free presence is offered to every active member with options to upgrade to various levels that offer even more resources and opportunities to share your information with others.
ARTICLES The online Buyers Guide allows members to feature articles or news releases covering such things as new products, new services, awards, new hires, retirements, announcements and much more. Each article has a built-in button that allows users to share the posts directly to their Facebook or Twitter feeds. Member articles are also shared in the Member News section of the Weekly Dairy Newsletter.
44 • Northeast Dairy Foods Association, Inc.
EVENTS The events section of the Buyers Guide is where members can publish upcoming training, open house events, member appreciation events and much more. Share this information with your customers to keep them in the loop on all of the most up-to-date information in our industry.
Member News
LISTINGS Each member has a listing on the Buyers Guide that is the central hub of information. Depending on sponsorship level, the listing can include: Articles and news releases submitted by the member on topics such as new products, new solutions, awards, new hires, announcements and more. Used equipment and deals offered by suppliers. Upcoming events hosted by members. Embedded social media feeds that can be liked and shared directly from the listing. Videos, including new product releases, demonstration videos and training videos, which can be viewed and shared directly from the Buyers Guide. Other best practices and innovations
All of this and much, much more when you visit:
buyersguide.neastda.org
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1-800-826-8302 • nelsonjameson.com sales@nelsonjameson.com NED Magazine | First Quarter 2021 • 45
Sales+Marketing
Search Engine Trends for the Dairy Industry
P
art of developing a comprehensive digital marketing campaign is understanding how customers and potential customers are using the internet to find your products and your website. The graphs and information below all come from Google Trends, which analyzes the popularity of search queries in Google Search across various regions and languages. The graphs scale “Interest Over Time” which represent search interest relative to the highest point in the chart for the given region and time-period. So, a value of 100 is the peak popularity for the term.
Another alternative is “Google Keyword Planner.” To use this tool, you must have a Google Ads account. The Keyword Planner lets you search keywords and suggests other words or phrases related to your products and services. It lets you research the trend information for how often certain words are searched and how those searches have changed over time and also gives you suggested bid estimates for each keyword so you can determine your advertising budget. In today’s digital environment, we strongly encourage members to capitalize on this growing trend and ensure that your company is visible in the place where people search the most.
VACCINE
• Average Search Volume has increased 2300% YoY • Average Search Volume has increased 4900% over the past 5 years
46 • Northeast Dairy Foods Association, Inc.
TOP RELATED SEARCH QUERIES 1. 2. 3. 4. 5.
covid vaccine vaccine coronavirus coronavirus vaccine covid19
Sales+Marketing GOT MILK?
TOP RELATED SEARCH QUERIES • Average Search Volume has increased 2500% YoY • Average Search Volume has increased 69.6% over the past 5 years
1. 2. 3. 4. 5.
got milk campaign got milk aaron burr got milk font got milk commercial got milk ads
FOOD INSECURITY
• Average Search Volume has decreased 26.4% YoY • Average Search Volume has increased 65.9% over the past 5 years
TOP RELATED SEARCH QUERIES 1. 2. 3. 4. 5.
what is food insecurity food insecurity definition food insecurity in the US food insecurity food insecurity in America
FOOD BOX
• Average Search Volume has increased 26.9% YoY • Average Search Volume has increased 28.6% over the last 5 years
TOP RELATED SEARCH QUERIES 1. 2. 3. 4. 5.
farmer to families food box farmers to families food box program food from around the world thai food near me healthy food near me
NED Magazine | First Quarter 2021 • 47
48 • Northeast Dairy Foods Association, Inc.
HumanResources
Avoid Unexpected Retirement Plan Problems Due to COVID-19 BY CHAD R. O’CONNELL, AIF
O
ne aspect of the COVID-19 pandemic and resulting business layoffs and furloughs that has not been talked about very much is the impact to corporate retirement plans. I’m not referring to the CARES Act withdrawal regulations but rather the impact that those layoffs could have on a plan’s non-discrimination testing for the 2020 and 2021 plan years. During the current plan testing seasons, business owners should start thinking about how any business interruptions could negatively impact their 401(k) testing for 2020, and, although almost a year away, any potential impact to the 2021 testing. Every year, with certain exceptions, 401(k) plans need to conduct and pass a variety of compliance tests to demonstrate to the government that the plan is equitable between all plan participants, both the highly compensated and the non-highly compensated employee groups. These tests can potentially limit how much a highly compensated employee can contribute to the plan or how much an employer has to contribute. Factors, such as employees’ annual compensation, the number of hours they work in the year, the amount they contributed to the plan and any employer contributions they received factor into testing requirements and impact the results. All of these factors could have been impacted by COVID-19 and the business interruptions that resulted. Business owners need to ask themselves the following: • Are you a business that had to lay off employees? • Did employee hours have to be cut back? • Did employees have to take a pay cut? • Was your business forced to lower or suspend 401(k) matching contributions? • Did the business owner front load plan contributions for themselves early in the year?
These are just a few of the business situations that could have resulted from COVID-19 that can impact 401(k) testing. All of these can lead to testing problems and potential failures for both the 2020 and 2021 plan years. That could further lead to reduced contributions to business owners and/or key employees — or even result in the refund of employee deferrals or required additional employer contributions and costs to staff. The time to review and act is now. Although 2020 has past, businesses should be aware of how COVID-19 may have negatively impacted their plan last year. Also, adjustments can still be made in 2021 to minimize the negative impact to retirement plans and business owners’ retirement savings for the current year. Analyzing prior year’s testing can help indicate whether there is the potential for problems going forward. Chad R. O’Connell, AIF, is a senior investment advisor at Dopkins Wealth Management, LLC, who manages the firm’s retirement plan services group, which focuses on investment management, consulting and fiduciary governance services to corporations and nonprofit entities. In addition, O’Connell also provides financial services to high net worth individuals and business owners. Dopkins Wealth Management, LLC, is a registered investment advisor owned by the partners of NDSA member Dopkins & Company, LLP. Dopkins Client Accounting and Advisory Solution Team can help. We can work with members to discuss business operations and determine whether any type of business interruption or COVID-19 impact could lead to negative consequences to your operation’s retirement plan going forward.
NED NED Magazine | First Quarter 2021 • 49
HumanResources
Workplaces Must Consider Flexibility for Pregnant Workers BY BRIANA WRIGHT AND EMILY MIDDLEBROOK
P
regnant workers in the United States continue to face workplace discrimination. While there are laws to protect pregnant employees or employees who recently gave birth in certain circumstances, as U.S. Rep. John Katko (NY) explained, “current federal law lacks adequate protections to ensure pregnant workers are able to remain healthy in the workplace.” If the pending federal legislation, known as the Pregnant Workers Fairness Act, is passed, the current void in federal law with respect to pregnant employees or employees who recently gave birth will be addressed. Currently, there is only one piece of federal legislation that protects pregnant workers — The Pregnancy Discrimination Act — an amendment to Title VII of the Civil Rights Act of 1964. The Pregnancy Discrimination Act applies to employers with 15 or more employees and prohibits employers from discriminating against an employee as a result of the employee’s pregnancy, childbirth or a related medical condition. Though there is currently a lack of protections at the federal level, in many Northeastern states, state legislation offers broader protections to pregnant employees. For instance, New York, Connecticut, Massachusetts, Vermont and Maine each require employers to extend reasonable accommodations to employees as a result of pregnancy-related conditions. Generally, an accommodation is considered reasonable if it does not impose an undue hardship on an employer, or, in other words, is not too costly, burdensome, disruptive or extensive. Examples include being permitted to sit while working, limitations on lifting heavy objects, more frequent or longer breaks, light duty work, a modified work schedule or a temporary transfer to a less strenuous job. In addition, employers located in many Northeastern states have an obligation to reasonably accommodate employees who recently gave birth. Reasonable accommodations may include a leave of absence to allow an employee more time to recover from labor and/or providing proper facilities for breastfeeding. In several Northeastern states, it is unlawful for an employer 50 • Northeast Dairy Foods Association, Inc.
to treat an employee differently because she is breastfeeding while at work. In New York, for example, employees are entitled to take reasonable unpaid breaks or meal times for up to three years following childbirth, so they are able to breastfeed. Additionally, employers in New York are required to make reasonable efforts to provide an employee with a room or another location in close proximity to the employee’s work area, where she is able to breastfeed in private. While current laws add a level of protection to pregnant employees or employees who recently gave birth, there continue to be holes at the federal level and certainly a lack of uniformity among state laws. On Sept. 14, 2020, Katko urged his colleagues in the House of Representatives to seriously consider the Pregnant Workers Fairness Act and explained the proposed federal legislation would “provide pregnant workers with an affirmative right to reasonable accommodations in the workplace, while creating a clear and navigable standard for employers to follow.” After repeated introductions over the last several years in both the House and the Senate, the House passed the Pregnant Workers Fairness Act in September 2020. Because the act was introduced during the last Congressional term, it must be reintroduced to both the House and the Senate. If once again passed by the House, passed by the Senate and signed into law, the Act would clarify employer obligations set forth in the 2015 United States Supreme Court decision in Young v. UPS and subsequent Equal Employment Opportunity Commission guidance. The Act’s stated purpose is to eliminate discrimination and promote women’s health and economic security by ensuring reasonable workplace accommodations to those whose job functions are limited by pregnancy, childbirth or a related medical condition. The legislation makes clear the responsibilities of employers. If passed into law, it would require employers to make reasonable accommodations for employees affected by pregnancy, childbirth or related medical conditions and would prohibit employers from denying employment opportunities or retaliating based on an employee’s request for or use of
HumanResources
reasonable accommodations related to pregnancy, childbirth or associated medical conditions. The proposed legislation, if signed into law, would affect only those employers with 15 or more employees. However, regardless of whether an employer is required under the law, all employers may want to consider the purpose of the Act and the policy reasons behind it, and potentially implement these proposed protections. Perhaps, too, employers may consider going beyond what is obligated and proactively provide accommodations or flexibility to pregnant employees or employees who recently gave birth. Millennials make up over half of the global workforce and are in the age bracket to need these types of protections and accommodations. According to a survey by PricewaterhouseCoopers, Millennials have indicated one of the most important factors they look for in their jobs is flexibility. Flexibility for pregnant employees or employees who recently gave birth may mean working from home or flexible (non-business) hours. Employers may really want to consider going beyond the law on what may be required of them and instead proactively lean into a flexible work environment in light of the desires of the current workforce. To learn more about pregnancy discrimination laws and extending reasonable accommodations to pregnant employees or employees who recently gave birth, please contact
attorneys Briana Wright at bwright@hancocklaw.com and Emily Middlebrook at emiddlebrook@hancocklaw.com. This communication is for informational purposes and is not intended as legal advice. Briana Wright is the Hancock Estabrook’s professional development and diversity officer. She is also an attorney in the corporate, startup & emerging business and healthcare practice areas. In her role as professional development and diversity officer, she works closely with the firm’s management to support and develop equitable and inclusive programming and a culture that respects and leverages diversity throughout the firm. She is actively involved in the firm’s diversity and inclusion initiatives, hiring and recruitment and professional and business development. Emily Middlebrook is an attorney in the Labor & Employment Department at Hancock Estabrook, LLP. She regularly counsels clients on several labor and employment issues, including Family and Medical Leave Act compliance, Fair Labor Standards Act compliance, discrimination and harassment, compliance with labor laws, overtime laws and developing employment policies and handbooks.
NED Magazine | First Quarter 2021 • 51
HumanResources
CY B E R S E C U R I TY
Don’t Open That! Keeping Your Computer Safe BY DEANNA PELLIGRINO
N
ow, more than ever, we rely on the digital world to keep our businesses moving. But with the ever-increasing use of email, social media and other forms of digital communication comes equally increasing concerns about keeping our information safe. Here are a few tips!
suspicious email to a junk folder, if not delete it entirely. On that note, a best practice is to scan items that go into your spam folder and delete anything that you were not expecting or seems out of place.
1. WHEN IN DOUBT, DELETE!
In addition to creating strong passwords, you should also update your passwords regularly and not use the same password for all your accounts. It’s especially important to separate business passwords from those you use for personal, leisure accounts. For example, your Netflix password shouldn’t be the same as your bank password. Here are some tips for creating a strong password: • Make your password longer than the minimum required length — 12 characters or more is recommended. Most often, hackers will try combinations with the minimum amount of characters. • Use a mix of characters, including letters, numbers and symbols, and add symbols and numbers in your words or between words. Example: F@rmcr3d!teA$t • Avoid personal information and common words (e.g. Don’t use “password” as your password, or your birth date or sequential keyboard letters like “qwerty”). • Use a random sentence, abbreviating and capitalizing certain letters. Example: “Take me to the beach” turns into Take-Me2The_Beach!
Follow your gut. If you receive something and wonder, “Why am I getting this?” there’s probably a good reason to be suspicious. Don’t click on links or open attachments from emails or senders that you’re not expecting. The damage that could be done from opening a malicious link or attachment is much greater than the value you might get from information sent.
2. HOVER OVER LINKS AND EMAIL ADDRESSES By hovering your mouse over hyperlinks and email addresses, you can often tell if they are linking to something unexpected. For example, when hovering over an email address that appears to be from your Farm Credit East representative, does it end in @FarmCreditEast.com? If not, then it’s likely from an imposter and should be deleted immediately.
3. USE EMAIL FROM A REPUTABLE PROVIDER Large companies like Google, Microsoft, Comcast, etc., have detection software already in place and will filter 52 • Northeast Dairy Foods Association, Inc.
4. CREATE STRONG PASSWORDS AND UPDATE REGULARLY
HumanResources • Use multiple word phrases that wouldn’t normally go together such as BlanketCheetahLaundryRed • Use a random password generator to create long, complicated passwords.
5. VERIFY VIA AN ALTERNATIVE FORM OF COMMUNICATION If someone is asking for personal information, don’t give it right away — especially if it’s suspect. Instead, if you receive an email from your bank requesting personally identifiable information, call your bank to verify it has requested this information.
Want to make a
SPLASH in the dairy Industry?
6. RELY ON TRUSTED SOURCES Just because you get an email doesn’t mean you should do what the email says. Instead, visit the website of the sender’s organization or call the sender directly to verify the content of the message. For example, during the pandemic, hackers preyed on people’s fears during a crisis, requesting personal information via email. Throughout the pandemic, every state has a website providing updated information on relief programs and other response efforts, so visit this trusted source for the most accurate information instead — and certainly don’t submit personal information by way of email.
Do you sell products or services to companies that process, manufacture and distribute dairy products?
Let us help you make a splash.
7. REVIEW YOUR CREDIT REPORTS OFTEN Keeping an eye on your credit reports will allow you to identify any suspicious accounts that may have been created. It’s recommended to review your credit reports at least once per year. The three major credit reporting agencies are required to provide free credit reports once annually. Visit annualcreditreport.com to learn more.
8. KEEP YOUR SOFTWARE UP TO DATE Set your computer, cell phone and other devices to automatically install software updates. These updates may protect your devices from security threats. Deanna Pelligrino is an information security specialist at Farm Credit East. NDSA member Farm Credit East services the ag credit and financial services needs of producers in Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, New York and New Jersey. It is part of the Farm Credit System, a nationwide agricultural network providing credit and affiliated services to those in agriculture and related industries across the United States.
Boost your bottom line and brand awareness within the industry. Contact us today to learn about the opportunities. Anne DeSantis Relationship Manager anned@nedairymedia.com 315-445-2347
NED Magazine | First Quarter 2021 • 53
HumanResources
Reorganizing Your Workforce BY ART WASKEY
T
here is good news on the horizon, and companies find themselves gearing up to bring back employees and hire additional staff. As the vaccines for COVID-19 are approved and people are immunized, we look forward to getting back to work on a broader scale. The pandemic, however, has left a lot of upheaval in its wake. I recently spoke to a newly appointed vice president of sales who said his first challenge was to replace four of the six regional sales managers at his company. Imagine the cost and emotional impact of such a dramatic transition. It is expensive to find and train new managers and painful and disorienting for the existing staff to see their former colleagues sent adrift.
KEY CHARACTERISTICS Employee transitions are never easy, but there are ways to make the process less painful and more effective. Start with a prioritized list of the key characteristics you look for in employees and give them precedence in your reorganization or hiring plan. Cultural fit — It is vitally important that any new recruit fits into your company’s culture. Be sure he or she shares your values. The right person is someone who can build trust with clients, engage in healthy conflict, make real commitment, hold people accountable and focus on the team’s results. In his 2016 book, The Ideal Team Player, Patrick Lencioni illustrates this point with the story of a company looking to add to its executive team. During interviews with a well-qualified candidate, it was brought to light that he lacked humility, possessed an underlying indifference to people and felt staff were there to serve him, not the company. These characteristics were an anathema to the company’s culture. In Lencioni’s example, the right person had to be someone who could easily build trust, not a self-centered egotist. Uncovering this lack of cultural fit saved the company from bringing on a well-qualified but ill-suited executive. 54 • Northeast Dairy Foods Association, Inc.
Jim Collins, in his epic work, Good to Great, referred to the practice of finding a cultural fit as, “Getting the right people on the bus and in the right seats.” What are the specific virtues and kinds of behavior and moral standards your company values? Make sure your next hire shares those. Humility — The best team members are humble and keep their egos in check. They share credit, emphasize team over self and operate collectively rather than as individuals. These leaders will ask good questions, listen to others and stay engaged in conversations. When someone comes to them with a personal problem, they listen, offer help or recommend others that can be of assistance. As an aggressive personality type, remaining humble has been one of my greatest challenges. Fortunately, I received some painful but sage advice early in my career. A dear friend with whom I had worked pulled me aside and said, “Art, you are so focused on working hard and succeeding that you walk all over people.” He told me that he knew my heart was in the right place but that I needed to start putting my team members first. Throughout a five decade-long career, I have had to constantly remind myself of his advice. Openness — In his book, The Advantage, Lencioni talks about the need to be open with your colleagues and describes a principle called “Vulnerability-Based Trust.” Lencioni believes, “A leadership team must be willing to be completely transparent, honest and naked with one another, if they are to build trust.” As a consultant to a Fortune 500 company, he was asked by its new CEO how best to get to know and establish trust with the existing team. Lencioni recommended an off campus summit where team members would be asked to share their background information, starting with their primary school days. One VP refused to participate and quit. That individual was probably part of the downfall of the previous CEO, Lencioni surmised, as he was unable to build trust. Lencioni advised, “It is amazing to witness how quickly the
HumanResources dynamics of a team can change after a simple twenty-minute exercise, as people who thought they knew one another develop a whole new level of respect, admiration and understanding, regardless of their job title, age or experience.” He continued, “Willingness to share ones past personal and professional successes and failures helps each person identify their own weaknesses and opens the door to transparency.” Sharing profiles provides the background that can help explain the root cause of a colleague’s negative or frustrating behaviors, instead of just attributing them to general environmental factors. Lencioni said, “If the leader is reluctant to acknowledge his or her mistakes or fails to admit to a weakness that is evident to everyone, there is little hope that other members are going to take that step themselves.” Work ethic — You want people with a good work ethic, the types who are always asking for more to do and show interest in learning new things. Self-motivation, diligence and the ability to take responsibility are important traits to look for in an individual. A valued employee is able to articulate next-step actions for projects and develop ideas for new opportunities. They always work until the job is done. They do what they say they will do, in a timely manner, no matter the circumstances. Successful people are continually “sharpening their saws” and believe the harder they work, the smarter and more successful they become. Avoid those who demonstrate self-interest, individualistic and self-important tendencies. They will not play well with their peers. Talent not aptitude — While intellectual capacity is important, common sense is a talent even more critical to success. I once worked with an executive who was excited to add a Harvard MBA in finance to his team. The new hire was indeed intelligent but was unable to translate his academic pedigree into practical ways of getting the job done. You want to hire intelligent people with an ability to ask good questions, listen to what others are saying and engage in meaningful conversations. Persons with these skills recognize the subtleties of group dynamics and recognize the impact of their words and actions. Put these attributes together with the right work ethic and you have a team builder. Caution — some of the most dangerous people in history have been interpersonally smart, so be sure the moral compass of your candidate is pointed in the right direction. A lack of aptitude can also trigger latent talents. Employees who have had to overcome challenges can be strong contributors to a company. I was born with a reading disability and struggled in school. That changed in college when I was able to channel my strengths in the right direction. In his book, The Talent
Code, Daniel Coyle talks about a “surge of energy” that occurs when a person reaches deep from within and affirms his or her struggle. For me, this happened my freshman year when I discovered that, by pacing myself through the semester, I could finish my work and receive an “A” on a project. This success set off a trigger that spoke to the core of my learning experience, and, when it comes to that type of ignition, there’s nothing more powerful. Look for people who can demonstrate a struggle that resulted in talent formation. That kind of savvy will often outperform high aptitude. Attention to detail — Attention to detail is a big part of what makes someone successful. It is difficult to delight your customers if you are disorganized. Be sure your candidate illustrates good organizational behaviors as these are some of the most important and transferable skills an employee can have. You want your new employee to be a person who can plan, prioritize and achieve his or her goals. This saves time and the company money. Organizational skills are essential for multitasking and keeping a business running smoothly and successfully. Employers should aim to recruit applicants who can work to achieve results consistently, even when unforeseen delays or problems arise.
BUILDING A STRONG TEAM The pandemic has struck certain sectors of the economy hard and eliminated many jobs in which the people who have lost them are entirely without fault. For companies that have been able to remain up and running, the pandemic has presented an opportunity to identify weak spots. In times of crisis, the fracture lines become crystal clear. Employees who may have been underperforming become dead weight. Others demonstrate strengths hitherto unrecognized and perhaps deserve a promotion. For company executives, there is a lot to consider as you reorganize and adjust to a new world order. Whether dealing with reorganizing existing staff, bringing on new hires, or both, focusing on the key characteristics described above will ensure you continue to develop a strong team. Art Waskey has more than 45 years of experience in distribution. He travels across the country consulting and giving seminars on business skills and has published three books of sales skills stories. For services, contact Art at 720-341-9405, artwaskey@ispeakd.com, www.impactspeakingdynamics.com
NED Magazine | First Quarter 2021 • 55
HumanResources
Five Ways Your Employee Experience May Be Missing the Mark
I
s your company delivering the experience current and future employees want? Rapid change in the economic, technology and labor landscapes means you’re under pressure to be constantly aware and evolving. To attract and keep top talent, focus your efforts on building a positive employee experience that meets the needs and exceeds the expectations of your workforce. We’re giving you five key things that might be holding you back from delivering an exceptional employee experience.
systems that make reporting time consuming and difficult? HR teams can spend endless hours jumping between platforms entering or looking up data manually for employees and pulling data into spreadsheets that become out-of-date the minute they are created. A single place to store and enter information can not only save time but also ensure accuracy and information security.
1. YOU’RE NOT COLLECTING EMPLOYEE INSIGHTS
When you invest in your people’s learning and development, you can communicate your commitment to their growth and raise satisfaction. That message is pretty clear, too, when you consider 94% of employees say they would stay at a company longer if it invested in their learning and development. Whether someone can see a future with his or her employer depends greatly on the ability to develop new skills and thrive while employed there, including opportunities to share expertise and experience. When considering what would lead them to quit, employees report that the ability to learn and grow is roughly twice as important as getting a raise and more than twice as important as the relationship with their manager, despite the anecdote that people leave their bosses, not their jobs. The mistake might not be a complete lack of learning and development opportunities though. Trainings become stale and ineffective when companies take a one-size-fits-all approach focused on organizational goals rather than employee needs. By providing customized learning that’s accessible anytime
Whether you call it employee data insights or people analytics, data is the key to knowing your employees better. Analytical thinking is critical to organizational progress, and this includes HR. In a tight labor market and highly competitive industries, effective and timely decision making are a top priority. Utilizing data, for example, helps you focus your resources on the areas of greatest impact to reduce wasted time, energy and money. Holistic data minimizes misinterpretation of anecdotal information that can lead to ineffective strategies. Just as companies are evaluating the entire customer journey to get an accurate view of what’s working in-house, this same holistic approach must be taken to assess the employee experience.
2. PROCESSES ARE MANUAL AND DISJOINTED Are processes like recruitment and onboarding presenting frustrating and uncoordinated experiences for applicants and employees? Are your HR records kept in multiple places and 56 • Northeast Dairy Foods Association, Inc.
3. LEARNING AND DEVELOPMENT OPPORTUNITIES ARE LIMITED AND INFLEXIBLE
HumanResources and on any device, employers can meet staff where they are and help turn them into tomorrow’s leaders.
day of work sifting through email and messages, for example. Meaningful connections and effective communication are needed to drive a positive corporate culture and engage employees. Blended workforces made up of part-time, full-time and contract workers in different locations — often on the road — make it increasingly challenging to provide opportunities for connections. Centralized, mobile-accessible social platforms make it possible for employees to make those connections, and organizations can ensure news is shared consistently and quickly.
4. PERFORMANCE FEEDBACK IS ONE-DIRECTIONAL AND SPORADIC Annual reviews are not enough to keep employees aware of their performance and feeling connected to their work. Ongoing, rather than episodic, feedback gives staff the ability to continuously check an understanding of their goals and progress, resulting in a positive impact on performance. In fact, continuous reviews that look both forward and backward and come from peers, as well as supervisors, have been shown to boost performance. More frequent feedback from a variety of sources helps employees to be more agile by giving them the chance to make timely adjustments. It also enables managers to better understand their teams and makes their input more impactful, as it is provided in real time.
The information above was used with permission from NDSA Member Paylocity. Paylocity (NASDAQ: PCTY) is a leading provider of cloud-based HR and payroll software solutions headquartered in Schaumburg, IL. Founded in 1997 and publicly traded since 2014, Paylocity offers an intuitive, easy-to-use product suite that helps businesses tackle today’s challenges while moving them toward the promise of tomorrow. Known for its unique culture and consistently recognized as one of the best places to work, Paylocity accompanies its clients on the journey to create great workplaces and help people achieve their best through automation, data-driven insights, and engagement. For more information, visit www.paylocity.com.
5. COLLABORATION AND COMMUNICATION ARE LACKING AND INEFFECTIVE People want to connect with their peers and managers and to stay informed on what is happening at their company. And, there is no shortage of tools available for that. More than a quarter of employees (27%) say they waste upwards of a full
Catch up on the previous issues of Northeast Dairy Magazine.
SUSTAINABILITY
FRONT DESK
Meet the Board
Third Quarter 2020
SUSTAINABILITY
What’s in the Bag?
RESPONSE TO COVID
Purchasing by Race, Generation
BUSINESS
Addressing Mental Health
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Visit issuu.com/nedmagazine NED Magazine | First Quarter 2021 • 57
Safety
Winter Safety Tips When Working Outdoors BY MARILYN R. DEMPSEY
A
nyone working in a cold environment may be at risk of cold stress. Some workers may be required to work outdoors in the cold, often for extended periods during the winter months that, in the Northeast, can last anywhere from November to May! And while many in the dairy industry are used to working in cold temperatures indoors and out, the winter months require an extra measure of safety. A cold environment forces the body to work hard to maintain its temperature. Whenever temperatures drop below normal and wind speed increases, heat can leave the body more rapidly. Although OSHA doesn’t have a specific standard that covers working in cold environments, employers have a responsibility to provide workers with employment and a place of employment that is free from recognized hazards, including cold stress (OSHA General Duty Clause).
58 • Northeast Dairy Foods Association, Inc.
WHAT TO DO:
• Train workers on how to prevent and recognize cold stress illnesses/ injuries, how to apply first aid treatment and ways to reduce the risk of cold stress. • Provide engineering controls, e.g., radiant heaters, work shields to protect from wind, heated work environments. • Use safe work practices: S Encourage employees to drink water or warm drinks, as it is easy to become dehydrated in cold weather. S Schedule heavy work during the warmer part of the day. S Assign employees to tasks in pairs (the buddy system) when working outdoors, so they can monitor each other for signs of cold stress. S Allow employees to interrupt their work if they are extremely uncomfortable. S Give workers frequent breaks in warm areas.
S Acclimate new workers and those returning after time away from work by gradually increasing their workload and allow more frequent breaks in warmer areas, as they build up a tolerance for working in cold environments.
WINTER WORKING/WALKING SURFACES Slip and fall injuries account for 15% of all work-related injuries in the U.S. The risk of slip and fall injuries increases with the accumulation of snow and ice. SIMA, the national nonprofit organization representing the snow removal industry, has some tips on safe winter walking. • Wear proper footwear. Proper footwear should place the entire foot on the surface of the ground and have visible treads. Avoid a smooth sole and opt for a heavy threaded shoe with a flat bottom and use your toes to grip. • Accessorize to see and be seen. Wear sunglasses so that you can see in the reflective light of the snow.
Safety
Also, wear a bright coat or scarf so that drivers can easily see you. • Plan ahead. While walking on snow or ice on sidewalks or in parking lots, walk consciously. Instead of only looking down, occasionally pause and scan from left to right to ensure you are not in the way of vehicles or other hazards. • Don’t jump or slide. Always focus on keeping your feet on the ground as much as possible while walking slowly. Sliding sounds like fun but can result in serious injury. • Be careful when you shift your weight. When stepping off a curb or getting into a car, be careful, as shifting your weight may cause an imbalance and result in a fall. Marilyn R. Dempsey is the president of Safety Dragons Workplace Consultants, LLC.
NED Magazine | First Quarter 2021 • 59
ADVERTISERS’ INDEX Agri-Mark Cooperative ��������������������������������������������������������������������������������������������������� 29 Agri-Services Agency ����������������������������������������������������������������������������������������������������� 7 Atlas Automation �������������������������������������������������������������������������������������������������������������21 Evergreen Packaging ������������������������������������������������������������������������������������������������������ 4 Farm Credit East �������������������������������������������������������������������������������������������������������������13 Gelpac ��������������������������������������������������������������������������������������������������������������������������� 20 H.S. Crocker ��������������������������������������������������������������������������������������������������������������������31 Herbein + Company ��������������������������������������������������������������������������������������������������������11 Nelson-Jameson ������������������������������������������������������������������������������������������������������������ 45 The Probst Group ������������������������������������������������������������������������������������������������������������21 Tremcar USA ����������������������������������������������������������������������������������������������������������������� IFC Tri-Tank Corp ������������������������������������������������������������������������������������������������������������������ 43 WestRock ����������������������������������������������������������������������������������������������������������������������IBC
Join the Dairy Industry Associations A full service trade association representing dairy processors, manufacturers and distributors since 1928.
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WINTER
A supplier and vendor member association dedicated to the growth and Magazi ne of No rtheast Dair y Pr oc essors, Manufac advancement of The the dairy food industry in the northeast. Established in 1932.
neastda.org 60 • Northeast Dairy Foods Association, Inc.
E D I T I O N 20 16
turers and Distribu to rs Since 1928