ON THE
ROAD:
The Challenges of New Rules, Safety & Driver Shortages
FEATURE
Will ELD Rules Make a Difference?
Third Quarter 2018
SAFETY
Technology Protects Drivers, Products
TRENDS
Wanted: Female Truckers
INDUSTRY NEWS
“Weather” Highways Should Close
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EDITIO N 2
turers and Distr to rs Since
contents
Third Quarter • Fall 2018 • Volume 1, No. 3
FEATURES
FROM THE ASSOCIATION 04
PRESIDENT’S MESSAGE Addressing Transportation
BY MIKE SUEVER
EXECUTIVE VP MESSAGE NYC Traffic Test
BY BRUCE KRUPKE
06
ON THE ROAD: NEW RULES, SAFETY, DRIVER SHORTAGES 21
NORTHEAST DAIRY FOODS WHAT YOU NEED TO KNOW 08
ECONOMIC OUTLOOK Good, Not So Good
BY GARY LATTA
14 LEGISLATION Watching Your Back
16 18
BY BRUCE KRUPKE
36
26
Few Female Drivers
BY CAROLINE K. REFF
37 NDFA Meets with
27
olls Encourage D Girls to Drive
38
Snow: Be in the Know
29
LD Requirements E in Effect
39
Hours of Service Rules
32
ruck Technology T Improves Food Safety
41
Drowsy Driver Danger
BY CHRISTY PERRY TUOHEY
35 Wadhams Family Business Keeps on Trucking
NYS OEM
43 Expertise on
Ripened Cheese BY CHRISTY PERRY TUOHEY
44 Don’t Spoil It:
Food Safety Factors BY CHRISTY PERRY TUOHEY
BY ALEX WALSH
WORKPLACE TOOLS OF THE TRADE
STAY CONNECTED
46 OSHA Updates www.nedairyfoods.org www.neastda.org
hen Mother Nature W Causes Road Blocks BY CAROLINE K. REFF
EET YOUR BOARD M Member Profiles AME CHANGE N Association Votes on Changes
Truck Driver Shortage
BY BOB COSTELLO
48
50
BY ASHLEY MOLL
Drug Testing and Legalizing Marijuana
You’re Fired!
BY ZACHARY B. BUSEY AND WENDY W. YOVIENE
BY KATHY BARANY, PHR
NED Magazine | Third Quarter 2018 • 1
contents
Third Quarter • Fall 2018 • Volume 1, No. 3
NORTHEAST DAIRY FOODS ASSOCIATION, INC.
NORTHEAST DAIRY ASSOCIATION, INC.
427 S. Main St. North Syracuse, N.Y. 13212-2863 315-452-MILK (6455) www.nedairyfoods.org
PRESIDENT
Ozzie Orsillo Evergreen Packaging Co. VICE PRESIDENT
Bruce W. Krupke
Bill Elliott Northeast Great Dane
EXECUTIVE ASSISTANT
TREASURER
EXECUTIVE VICE PRESIDENT
Leanne Ziemba
DIRECTOR OF MEMBERSHIP AND COMMUNICATIONS
Alex Walsh PRESIDENT
Melissa Fryer Alfa Laval SECRETARY
Ryan Osterhout KCO Resource Management
Mike Suever HP Hood, LLC TREASURER
ASSOCIATION UPDATES 54
nnual Clambake A A Success
56
ember News/ M Announcements
58
YS Fair Dairy N Group to Disband
59
HP Hood Expands, Adds Jobs
60
NDA Announces Scholarships
62
Advertisers Index
Michael P. Young Guida’s Dairy SECRETARY
Daniel R. Lausch Lactalis American Groups, Inc.
NORTHEAST DAIRY MAGAZINE TEAM EXECUTIVE EDITOR
Bruce W. Krupke bk@nedairyfoods.org PUBLISHER/DIRECTOR OF SALES
Bill Brod billbrod@nedairymedia.com EDITOR
Caroline K. Reff CReff@nedairymedia.com CREATIVE DIRECTOR
Robin Barnes robinb@datakey.org
COVER DESIGN
Rachel Barry
CONTRIBUTORS
Kathy Barany, Zachary B. Busey, Bob Costello, Greg Minix, Ashley Moll, Christy Perry Tuohey, Alex Walsh, Wendy W. Yoviene PRODUCED BY
Northeast Dairy Media
Editorial correspondence should be directed to editorial@nedairymedia.com Advertising correspondence and materials should be sent to billbrod@nedairymedia.com. POSTMASTER: Send address changes to bk@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 © 2018 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 bk@nedairyfoods.org.
As we celebrate
90 years of serving our members throughout the Northeast, let’s take a look back at some of the key accomplishments along the way!
1997 A contingent of seven New York City-area milk processors and distributors agreed to join the association. The addition of these companies solidified the association’s position as the only trade group in the state to represent the dairy processing and manufacturing industry. The membership grew from 72 to 120 between 1992 and 2006.
1993 In November, the office moved from Albany to North Syracuse, where it remains today.
1992
2008 In September, the board approved an expansion of the association to include the New England states and New Jersey. The organization became the Northeast Dairy Foods Association, Inc.
2006 The association’s supplier and vendor support group, the New York State Dairy Food Boosters, merged with two similar organizations to form the Northeast Dairy Association. The merger drove the number of members past 225.
2018 The association celebrates 90 years as a strong vibrant group for the benefit of our membership in the dairy industry.
Bruce W. Krupke was named executive vice president. He came to the association after eight years at the American Dairy Association and Dairy Council.
1978 The board of directors approved a name change to New York State Dairy Foods, Inc., to more adequately represent the entire dairy processing, manufacturing and distribution industry in the state.
1972 Edmund Towle became the executive vice president, and the office was relocated to Albany, New York.
1928 The New York State Milk Distributors, Inc., was founded in Syracuse, New York, with districts from regions around the state. Each district sent one delegate to form the board of directors. J. Russell Fox was the executive vice president, a position he held until 1972.
9
Celebrating
On a daily basis, our goals and efforts are directed towards: Representing our membership as a united processing/manufacturing/distribution body before legislative government and regulatory agencies, promoting and safeguarding their common business interests. Providing services and information to our members that will continually serve to improve their operations ensuring the efficient distribution of the freshest and safest dairy products possible.
YEARS
Our Mission Statement
FrontDesk
Addressing Transportation Issues Is Vital to Dairy Industry Success BY MIKE SUEVER, PRESIDENT, BOARD OF DIRECTORS, NORTHEAST DAIRY FOODS ASSOCIATION, INC.
T
ransportation is so much more than loading a truck and heading out on the road. Changes in technology, driver safety, driver shortages, weather contingencies and regulatory limitations on delivery schedules continue to affect our ability to transport products safely and efficiently from farm to table. In this issue, you will hear more about some of these topics. I am sure most of you are aware that the Electronic Logging Device Rule is now in effect, and indeed this technology re-
mains somewhat of a controversial topic. While this may be a positive step forward for the transportation industry, and it is important to acknowledge and embrace the pace of technology in our businesses, we must review and monitor national statistics that come from ELDs to determine if this rule does, in fact, prevent accidents and other incidents on the road and increase efficiencies in our businesses. The ELD Rule has only added difficulties to another major issue in our industry: We have a concerning shortage of drivers.
Proudly serving the dairy industry for over 40 years . . .
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1.855.HC.TODAY www.herbein.com
FrontDesk
While this shortage is not unique to the dairy industry, it is a serious problem that affects us all. A career as a truck driver today is simply not a popular choice. Millennials, many of whom do not want the long hours that driving demands, have not been exposed to this career choice or are set on another path by the time the DOT age restriction allows them to drive a tractor trailer across state lines. We need to work as an industry to show men and women of all ages that a career as a truck driver can be lucrative and full of opportunities. We also must work to change the age restrictions that cause a three-year gap between a young person’s high school graduation and the time he or she can drive across state lines. (After all, an 18-yearold can serve in our military and operate a variety of heavy equipment.) We must continue to work with schools, career services and other outlets to raise awareness of driving as a worthwhile career choice. As I look out my window, I can’t help but notice the leaves
on the trees are starting to turn to bright colors in the Northeast, which means the winter season is not far behind. Last winter was an especially tough one in this region, and there is no way to predict what the weather will bring this year. However, two things are certain: We will have snow-covered roads in the Northeast this winter, and our dairy products will still need to get to their destinations. While we support safety, we hope that transportation authorities throughout our region will increase their abilities to more accurately predict what is truly dangerous weather versus what is merely a nuisance, and also remember that our drivers are some of the most skilled on the roads. They not only know how to drive in inclement weather, but they are trained to use their own common sense to know when to stop driving if conditions become more than they can handle. I hope you enjoy this issue of Northeast Dairy magazine, as we tackle issues related to transportation, as well as other topics helpful to our members. As always, I welcome your feedback.
NED Magazine | Third Quarter 2018 • 5
FrontDesk
NYC Traffic Congestion Test: We Aren’t Taking Any Prisoners BY BRUCE W. KRUPKE, EXECUTIVE VICE PRESIDENT, NORTHEAST DAIRY FOODS ASSOCIATION, INC.
I
time, but drivers can’t avoid enforcement officers. When this n this issue, we discuss topics surrounding distribution happens, our members are being subjected to stiff fines. How and transportation. Our editor, Caroline Reff, and her has this reduced traffic congestion, the original intent of this staff of writers have been out scouring the industry to test? It hasn’t. All this test accomplishes is a higher cost of try to uncover some of the key issues and points of doing business for companies trying to do their jobs. More discussion of interest for you. We decided to use these importantly, it also potentially raises the cost of wholesale topics as our magazine’s focus because of some unique issues prices, thus increasing prices for consumers. At a time when affecting our members these past few months. milk sales have declined, we do As I write this article, not need any outside forces New York City Mayor Bill artificially increasing consumer de Blasio’s distribution restricprices. tions on some major roadways Our industry needs to be and streets has been in effect allowed to distribute our prodsince early April. You’ll reucts whenever and wherever member the mayor felt he had necessary, based on customer to restrict commercial deliverdemand. We do not want to ies and distribution to alleviate see New York City’s poor test traffic flow and congestion. example exported to other big We, along with many other big cities in the Northeast. Our groups, opposed implementamembers, as well as many tion of his six-month test. other food and non-food comThe test is set to expire in panies, didn’t start this fire, October, and we aren’t taking meaning we are not causing any prisoners. We plan on bethe traffic problem in the Big ing very vocal about how our — BRUCE W. KRUPKE Apple. We didn’t increase members’ experiences with Executive Vice President, routes contributing to the this test have pointed to a misNortheast Dairy Foods Association, Inc. growing traffic jams in the erable failure, and we do not city. The mayor needs to look want to see the test extended at the real sources of congestion, like increased home delivor made into official law. Members have reported back to me eries from Amazon-type companies and the impact of Uber that enforcement of the affected areas has been like playing and related passenger services. At the very least, de Blasio cat and mouse — if someone shows up to make a delivery in and his DOT team need to recognize some unique problems a restricted area during the prohibited time, he or she looks associated with perishable foods. They really need to find out for the new enforcement officers, trying to dodge them. ways to compromise and, heck, maybe even throw delivery So, in this respect, the test has failed. companies a bone and provide incentives to make dramatic Secondly, there have been occasions reported when a changes in how distribution is carried out. delivery must be made in a restricted area and/or at a specific
“We didn’t increase routes contributing to the growing traffic jams in the city. The mayor needs to look at the real sources of congestion, like increased home deliveries from Amazon-type companies and the impact of Uber and related passenger services.”
6 • Northeast Dairy Foods Association, Inc.
FrontDesk Earlier this year, we saw the full implementation of the Electronic Logging Device Rule. While you’re probably well aware of its ramifications, you’ll read more about the ELD Rule in this issue of the magazine. Not only were the number of driving hours and mandatory rest period regulations changed for drivers, but we also saw the need (and learning curves) to implement new technology with truck fleets. For bigger companies staffed with employees trained to implement these new sets of mandates, the process was a little easier. For smaller companies, the process was much harder. I’ve seen reports that in the first six short months of full implementation, there have been fines of over $170 million issued. Our opinion as an association is that the ELD Rule is just another type of government mandate that doesn’t make you more competitive or efficient. We will give credit due to one aspect of the law’s intent — safety. If requested by law enforcement, drivers must be able to immediately present the required automatic onboard recording device, often referred to as an AOBRD, as well as display information for the previous seven days, plus the current day. In today’s truck and fleet applications, ELDs installed in commercial motor vehicles can monitor and record a whole host of data about the vehicle and its driver that go beyond the record of duty status, including driver vehicle inspection reports, International Fuel Tax Agreement calculations and driver behavior, reporting on speeding, idling and hard braking. So, while the new technology and restrictions address safety, they can also provide companies with some potentially useful information about their drivers. This is the third issue of our magazine, and I hope you are enjoying it and finding the information inside these pages helpful. If you have any comments you would like to share with our readers, send them to me at our office. We’re always open to hear your opinions on these or any other topics that interest you. We also welcome your story ideas. Tell us what really matters to you, your employees and your company, so we can delve deeper into it and present information in a way that is helpful to many within the dairy industry. Finally, we are always looking for news. If your company has some news, press releases, new product offerings, employee promotions, marketing, public relations or good will you’d like to share, send it to us by email at editorial@NEdairymedia.org, call us 315-452-MILK (6455) or fax 315-452-1643. Thank you for your support, and enjoy reading this publication. Keep up the good work!
NETWORK AND STAY IN TOUCH WITH THE ASSOCIATION!
The Membership Directory is a HUGE member benefit! It allows members to quickly reference key contacts for all member companies. Need to check and make edits to your listing? Tell us! hannahg@nedairymedia.com
COMING SOON...
THE FIRST EVER
NORTHEAST DAIRY ASSOCIATION BUYER'S GUIDE In Spring 2019, NE Dairy Media will publish the membership's first premier Buyers Guide to showcase manufacturers and vendors by category. This will benefit the Dairy Foods Association by breaking it down into industry-specific classifications to help with purchasing decisions.
MORE INFORMATION TO COME, STAY TUNED!
NED Magazine | Third Quarter 2018 • 7
Economic Outlook
Dairy News Lately Seems a Series of Good, Not So Good BY GARY LATTA
A
s one ponders over the plethora of news lately regarding the dairy industry, we see a good deal of bad news with respect to declining consumption, soaring stock surpluses, lower prices, tariffs, decreased exports, struggling businesses and a host of other concerns. However, sprinkled in among much of this bad news, one does find some good positive topics, as well, providing a bit of optimism for the future. Let’s look at some of these — both the good and not so good. High on anyone’s list of concerns right now is likely exports. Until a few months ago, the U.S. was riding high and on its way to another wonderful year of robust exports. We were likely on our way to another record export year. Dairy exports leaving the U.S. were at a record high in April, with May being the third highest ever. April dairy exports utilized nearly 19 percent of U.S. milk production. Prior to the imposition of retaliatory tariffs, May exports utilized around 15 percent of U.S. milk production. For the first quarter of 2018, the U.S. was price-competi8 • Northeast Dairy Foods Association, Inc.
tive and a major player in the international dairy marketplace. Maintaining exports are key in helping to utilize significant amounts of the farm milk supply. Without sizable exports, a good deal of additional milk supply remains within the U.S. domestic market, adding to already burdensome stocks in storage. Excess raw milk supplies and burdensome product stocks weigh heavily on market prices. News in late June from the USDA announced that the U.S. was sitting on a surplus of 1.3 billion pounds of cheese, the largest stockpile since recordkeeping began one hundred years ago. Butter stocks are 8 to 10 percent above last year. Many are hoping that with the pizza season approaching, schools reopening and holidays near, further growth of these huge inventories will be held in check by brisk sales.
RETALIATORY TARIFFS WEIGH HEAVILY ON THE MARKET Beginning in April and throughout May, the U.S. announced plans to impose tariffs on several goods, particularly steel and
Economic Outlook aluminum that it received from several nations. Among those nations targeted were Mexico, China and Canada — three of the U.S.’s largest dairy export customers. Retaliatory tariffs from these nations have reduced purchases from the U.S. and have weighed heavily on the market, reducing sales, increasing available supplies and reducing prices in the domestic market. In addition, domestic and some international buyers of U.S. dairy products are delaying purchases in anticipation of the market falling further. At the time of this writing, Mexico has imposed a 25 percent tariff on U.S. cheese but none on nonfat dry milk. In recent years, Mexico has been the largest international buyer of U.S. cheese. Mexico also has been a large buyer of U.S. dry products and is an important customer for that product. For perspective, experts have estimated that a 25 percent tariff inflates the cost of a pound of cheese by at least 45 cents, near 60 cents a pound for butter, 20 cents a pound for nonfat dry milk and 10 cents for dry whey. By early June, China had imposed tariffs on most U.S. dairy products ranging from 2 to 12 percent, depending on the item. Then on June 16, China announced an additional 25 percent layer of tariffs on top of those already in place, effectively making the new final tariffs anywhere between 27 and 37 percent, depending on the product. Until recently, China has been a favorable destination for cheese, nonfat dry milk and whey. China has been a large volume purchaser of U.S. dry dairy products like whey, whey protein concentrate and modified whey products. Estimates are that China took between 42 to 55 percent of U.S. exports on just these products alone. Last year, China was responsible for importing 5.7 percent of U.S. nonfat dry milk/skim milk powder and 4.2 percent of U.S. cheese. Canada, the U.S.’s third North American Free Trade Agreement part-
ner, has also imposed additional elevated tariffs of 25 percent on various products, including yogurt and pizza. News reports from Canada reveal the country’s government is preparing for hard bargaining with the Trump administration on its supply-managed dairy, egg and poultry sectors when negotiations resume to re-implement NAFTA. Under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, a modified variant of the TPP being ratified by the 11 participating countries, Canada would create new tariff rate quotas allowing limited quantities of dairy, poultry and egg imports to be phased in slowly over 11 to 19 years. This may sound like a lot, but experts estimate it would only be the equivalent of around 3.25 percent of Canada’s market.
Canadian newspapers report that former Prime Minister Brian Mulroney has been advising the Trudeau administration to put an end to supply management. Mulroney has publicly stated that such a move would be of benefit to Canadian processors and consumers. This same point is echoed by Saputo, Inc., one of Canada’s largest dairy processors. It comes as no surprise that some international dairy competitors are aggressively pursuing exports and soliciting trade with the very same countries with which the U.S. is in a trade war. Mexico is reaching out to the EU for dairy products, and China has lifted tariffs from Australia. Normally, it is not easy to reacquire lost customers, and the effort takes considerable time. Continued on next page
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NED Magazine | Third Quarter 2018 • 9
Economic Outlook
CAN THE U.S. DEVELOP OTHER EXPORT POTENTIAL? According to the U.S. Dairy Export Council, the top five export markets in 2017 were Mexico ($1.3 billion), Southeast Asia ($690 million), Canada ($636 million), China ($577 million) and Japan ($291 million). Further down the list and rounding out the top 10 destinations for U.S. dairy exports are South America, South Korea, Oceana, Middle East/North Africa and the Caribbean. One bit of optimistic news is that leaders in the industry are already working on further developing our export potential with Japan, Southeast Asia, the Middle East, Indonesia, Vietnam and other friendly areas. If dairy exports to some of these destinations can be increased, the U.S. could make up for a large amount of the lost sales from the imposition of tariffs. If the U.S. can provide dairy products just a bit below international prices, it has a shot at securing additional sales, and that’s a positive.
MILK PRODUCTION CONTINUES TO SLOW IN 23 STATES USDA monthly reports reveal that the previously robust, long-trending increase in the number of milk cows nationally has slowed down to near zero growth. Milk production expansion has slowed, while production per cow continues inching 10 • Northeast Dairy Foods Association, Inc.
It comes as no surprise that some international dairy competitors are aggressively pursuing exports and soliciting trade with the very same countries with which the U.S. is in a trade war. — GARY LATTA
Dairy Product Specialist Consultant, Northeast Dairy Foods Association, Inc. up, maintaining the ongoing trend reaped from scientific breeding and genetics. At the time of this writing, many of the USDA’s July reports had not been released yet. However, we observe that milk production growth among the top 23 states has slowed in the last few months. Year-over-year growth for the top 23 in April was +0.7 percent, +0.9 percent for May and +1.3 percent for June. Top Northeast states showed even less growth and were in negative territory. For the months of
Economic Outlook April, May and June, respectively, New York milk production was -2.4, -1.2 and +1.4 percent; Pennsylvania was -1.7, -2.1 and -0.2 percent; Vermont was -3.0, -2.1 and -0.4 percent; and Ohio was -2.5, -1.8 and -1.7 percent. July was a hot month in the Northeast, so we expect to see the impact of this heat on milk production when the next report is released by the USDA. Late July and early August have been very wet and rainy in the Northeast. The West and Southwest regions have been experiencing considerable heat and severe drought for several months now. The impact of all this heat and drought, combined with sharply lower market prices, will likely be revealed in the next few USDA monthly milk production reports. The August World Agriculture and Supply and Demand Estimates from the USDA highlighted U.S. dairy production, supply, imports, exports and price forecasts for the remainder of 2018 and into 2019. In this August report, the USDA reported no change to the milk production forecast for 2018 but raised its production forecast for 2019 based on a small increase in the number of cows and the trend toward more output per cow. The August WASDE report raised its estimate of 2018 milk prices from its July estimate. All milk price was $15.95 to $16.25 but was raised for August to $16.10 to $16.30. The all milk price for 2017 was $17.65 and $16.30 for 2016. The USDA raised its estimates on dairy product prices from July to August on cheese, butter, nonfat dry milk and dry whey. Perhaps the USDA underestimated the strength of demand for these key product drivers in its July report. Because of higher product prices, annual Class III, Class IV and the all milk price were raised accordingly. Class III was raised from a July estimate of $14.30 to $14.60 up to $14.50 to $14.70 in August. The 2018 Class IV was raised from $13.65
to $14.05 in July to $13.95 to $14.25 in August. Estimated feed prices were that corn and soybean meal are lower and alfalfa hay higher. Keep in mind that these are annual estimates that the USDA tweaks both up and down according to observed and perceived changing conditions. The USDA estimates similar consumer demand strength will be carried into 2019, and it has raised its previous estimate on all product prices except for butter, which it left unchanged from 2018. These higher product prices translate to higher Class prices for 2019. The August WASDE puts 2019 prices for Class III at $14.95 to $15.95, Class IV at $13.75 to $14.85 and all milk at $16.45 to $17.45. The USDA sees a small contraction in the size of the U.S. milk herd, continued but slightly slower growth in output per
cow and modest growth in production for year 2019.
NOT ALL NEWS IS BAD NEWS On perhaps a more positive note, USDA Secretary Sonny Perdue announced on July 24 that the government was taking steps to help farmers deal with the damage caused by what he called “unjustified retaliation to trade wars.” The USDA will exercise its authority to put into place a combination of dairy product purchases for use in feeding programs in combination with direct payments. Up to $12 billion in programs is authorized to cover what is an estimated $11 billion hit from unjustified tariffs on U.S. agricultural products. Time will tell how much this emergency program benefits dairy producers. The National Milk Producers
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NED Magazine | Third Quarter 2018 • 11
Economic Outlook Federation worked with the USDA in developing the program and praised the effort. While such a program is beneficial, dairy producers would much rather see greater income through sales in the marketplace instead of another government program. Some industry observers feel this extra income may send the wrong signals to the market and stimulate production. If equally distributed to all farms in the U.S., the $12 billion would equate to about $6,000 each. Another positive note is that the administration has apparently reached an agreement with EU officials to at least avoid an additional trade war there. The Trump administration and EU officials worked to eliminate subsidies, barriers and tariffs on energy and agricultural goods. Another bright spot from the nation’s capital is an amendment in the House that would improve the H-2A Program for dairy. The amendment to the Homeland Security Appropriations legislation allows employees to use the H-2A visa program to hire foreign dairy workers. Under this proposed program, dairy producers could more readily use the new H-2A visa program to secure year-round employees. Current H-2A visa programs restrict workers to only temporary and seasonal labor. GOP House leadership has stated that it will bring forth what is called the AG Guest Worker Bill in September. Another promising effort from Washington is Food and Drug Administration Commissioner Scott Gottlieb’s announcement of developing a “Nutrition Strategy” session to examine label claims and the need for updates. At the heart of this effort is the use of the word “milk” to describe plant-based products. A recent action made to squash the FDA’s action was overwhelmingly rejected in the Senate by a vote of 84-14. More good news from Washington is a bill before Congress that would provide $70 million in grant money for state departments of agriculture, academia, cooperative extensions and nonprofit groups for programs that promote dairy product innovation, marketing and process improvements. Known as the Dairy Business Innovation Act of 2018, this legislation would assist regional efforts to stimulate dairy businesses through innovation, help develop new products, provide support for new entrepreneurs and modernize existing plant facilities. One last positive development came in early August when the American Farm Bureau Federation announced that it will offer a new program called Dairy Revenue Protection Insurance. This insurance program can be secured in addition to the existing Dairy Margin Protection Program. Sign-up for this new program is estimated to begin Tuesday, Oct. 9. The insurance is offered by Approved Insurance Providers Nationwide. The new program is federally subsidized and was developed in
12 • Northeast Dairy Foods Association, Inc.
Mexico is the No.1 U.S. cheese export market. U.S. cheese shipments to Mexico were valued at $391 million last year In 2017, the U.S. held a 75% share of Mexico’s cheese import market. conjunction with the USDA’s Risk Management Agency. Interested producers should see the American Farm Bureau Federation’s website (https://www.fb.org) or the USDA Risk Management Agency website (https://www.rma.usda.gov/). One final piece of welcome news arrived just as this article was going to press. On Aug. 14, the USDA announced plans to purchase fluid milk products of all butterfat levels in half gallons for distribution to The Emergency Food Assistance Program. The move was praised by the National Milk Producers Federation, the International Dairy Foods Association and Dairy Farmers of America. Apparently, this is the first time that the USDA has purchased fluid milk for use in TEFAP programs. Most notably, these purchases will not be considered as part of funding to compensate producers from retaliatory tariffs placed by Mexico and China. Gary Latta is a dairy product specialist consultant for the Northeast Dairy Foods Assoc., Inc. He has more than 30 years of experience in providing economic analysis, statistics and information to the dairy processing industry.
Economic Outlook
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NED Magazine | Third Quarter 2018 • 13
Legislative+RegulationsReport
Passing the Farm Bill, Endorsing a Candidate for Senate and Watching Your Back BY BRUCE W. KRUPKE
T
he main benefit to members of our association is the expertise that allows us to watch your back in state capitals around the Northeast. We realize you don’t have someone in your office doing this daily, or, in some cases, at all, so we monitor bills that have been introduced and have the potential to become law. In many cases, as I’ve reported in the past, the majority of bills don’t see the light of day, but that doesn’t mean we aren’t keeping a watchful eye. Not only do we monitor bills, we also lobby on your behalf. To do this, we must have the knowledge of the industry, the experience to share with key legislative leaders in each of the eight states we work in and the key understanding of how a law might affect your business. Perishable dairy products have a unique set of circumstances. When you consider that the association is the middle entity — meaning we buy from dairy farmers and sell to retail or food service companies — we must be aware of each of those group’s positions, as well. This year, our association successfully helped to keep many
14 • Northeast Dairy Foods Association, Inc.
introduced bills at bay. Some of the topics we saw this year included passing more raw milk bills (allowing a state to sell raw milk directly to consumers is something we strongly oppose) and a labeling bill mandating notices or other requirements/ limitations in three states that require food service operators to limit the number of calories a beverage can have in a child’s meal (despite the nutritional value, which can be found in a small carton of chocolate milk). There were many other issues, as well, such as paid family leave mandates, minimum wages, expansion of bottle bills both for redemption rates and types of products included, recycling bills (most of which, thankfully, exempt milk containers), new waste stream mandates, the sugary drink tax law, an Animal Cruelty Offender Registry and a Farmworkers Fair Labor Practices Act. In our experience, if one state, usually New York, passes a law, it is monkey-see, monkey-do in other states soon after. New York tends to be the trendsetter in the Northeast region, so if we can make an impact either for or against in New York, then we tend to have a better chance to do the same in others.
Legislative+RegulationsReport When you consider that the association is the middle entity — meaning we buy from dairy farmers and sell to retail or food service companies — we must be aware of each of those group’s positions, as well. — BRUCE W. KRUPKE
Executive Vice President, Northeast Dairy Foods Association, Inc. For a full copy of the bills we are working on, simply log into the “members only” section of our website — www.nedairyfoods.org — and see the list. If you hear of a bill in your state that may positively or negatively affect you, give us a call at the office to let us know. Not only are we working on state-level legislation, but 2018 is a year of high national interest, as well. 2018 is the year a new Farm Bill must be passed — with the key word here being must. Congress is mandated every five years to review all legislation dealing with agriculture, and a couple of decades ago, consumer nutrition programs, a.k.a. food stamps or now what we refer to as SNAP (Supplementary Nutrition Assistance Programs) were made part of the Farm Bill process. As you can imagine, Congress has to appease both consumer groups and farm/agriculture organizations. The Farm Bill must be passed by Sept. 30 — which is just around the corner — or else. That big “else” is a real problem for our dairy industry. There is a poison pill in law that basically states if the Farm Bill is not passed, then dairy pricing for farmers reverts to a period in the 1940s on a parity level, meaning adjusted for inflation. Should this happen (and we don’t expect it will), the price per hundredweight could be somewhere near $40/cwt! Again, our association is keeping a watchful eye on this, and we intend to make our feelings known as decisions are being made. Getting the Farm Bill across the finish line won’t be easy. As of this writing, the members of the U.S. Senate finally announced they are willing to go to conference with the House of Representatives. You see, each passed different versions of the Farm Bill, and now they must come together, compromise and come up with the same language. You can now understand, given the level of politics in Washington, D.C., these days, that it might be a bit more difficult than usual. Congress does have another option: punt the responsibility and simply extend the current Farm Bill. This would mean it wouldn’t get around to passing Farm Bill legislation until after the November elections, sometime in 2019 — when I’m sure
the level of cooperation in Washington will be much better (sarcasm here). However, the dairy industry has some issues that need to be addressed in the Farm Bill for both dairy farmers and processors. So, it is important if you are speaking with a federal legislator to encourage him or her to find a way to get the bill passed sooner rather than later. Finally, I’d like to mention that our association’s board of directors has decided to endorse a candidate for the New York State Senate. Our association supported candidates financially sometimes with PAC contributions but never endorsed candidates until now. Our association’s legal counsel and tax preparer for the past 25 years, Bob Antonacci, is running for the 50th District Senate seat on the Republican, Conservative and Independent party lines. I personally have come to know Bob as a true professional and advisor to our association, and he would make an excellent senator. He is uniquely qualified, has his law degree from Syracuse University and an accounting degree (and CPA certification) from Le Moyne College. We are endorsing Bob because he is a great family man, ethical, hard-working and smart. Having worked with us on key issues over the years, he would be a true supporter of our association and the agriculture industry. I would like to ask every reader to consider financially supporting Bob’s election campaign. Give whatever you can to help us elect Bob Antonacci to the New York State Senate (www.bobantonacci.com). I hope to report later this year that he has been elected! Always remember that in terms of legislative issues, the association has your back. Thank you for your support. Keep up the good work! Bruce W. Krupke is the executive vice president of the Northeast Dairy Foods Association, Inc.
NED Magazine | Third Quarter 2018 • 15
MEET YOUR
BOARD
In this issue, we are highlighting a few more of the board members of both the Northeast Dairy Foods Association, Inc., and the Northeast Dairy Association, Inc. In keeping with this issue’s theme, we’ve asked these board members to comment on some of the topics highlighted in this edition of our magazine.
16 • Northeast Dairy Foods Association, Inc.
Meet Your Board
ANDY FISH PRESIDENT AND COO
Readington Farms, Inc.
WENDY MARTIN
CEO/FOUNDER
Energy Partner Consultants
TRISTAN ZUBER TECHNICAL ACCOUNT MANAGER
CHR Hansen, Northeast Region
Fish has a demonstrated history of working in the food and beverage industry, with skills in budgeting, facility management, team building, management and LEAN manufacturing. He is a strong business development professional with a degree in business management from the University of Maryland, College Park.
What do you see impacting the transportation sector in the dairy industry? New technology, regulations and driver recruitment are examples of the industry changes and challenges we face in our quest for excellence in supply chain operations and customer service. We continue to work to recruit drivers for careers in this industry. By remaining flexible with route planning, building a full-time recruiting program and improving our internal training program, we are distinguishing ourselves in this competitive job market as a good place to build a career and a future.
Martin conceptualized and founded Energy Partner Consultants in 2008. Since then, EPC has successfully assisted clients, such as Siena College, Planet Fitness, Lia Corporation and others, to reduce energy costs. Over the past five years, Martin has driven EPC in its efforts to assist dairy food processing companies and over 500 dairy farms by educating them about the energy market and reducing overall energy cost on the farms. She has been assisting dairy farms by converting pre-existing digesters into renewable natural gas projects across the U.S. Martin’s project development will help the farms generate more revenue by injecting the renewable natural gas into the pipeline, creating a cleaner environment.
What do you see as the future of our organization? The name change, which will take place later this year, from Northeast Dairy Association, Inc., to the Northeast Dairy Suppliers Association, Inc., will give existing and new members a more concise picture of who the group represents in the dairy industry. This association allows businesses all over the U.S. to collaborate resources, network with clients and prospects and the opportunity to gain a deeper knowledge of each intracule part of the dairy industry.
Zuber has been a part of the dairy industry her entire life, having worked on her family’s dairy farm in Western New York. After attending Cornell University, where she double majored in food science and animal science, she worked for the U.S. Dairy Export Council focusing on regulatory affairs. She recently completed an MBA from Indiana University and a master’s degree in agricultural economics from Purdue University. She is currently a technical account manager for CHR Hansen, a global leader in providing culture, enzyme, bio protection and probiotic solutions to the food and dairy industry.
What do you see as the strongest aspects of our organization? Our industry is on the verge of suffering “brain drain,” as we see a lot of experience leaving the industry due to retirement. I see our organizations working together to form coalitions that better prepare rising talent for the challenges that they will have to address in the ever-evolving dairy foods industry. Not one company is in this industry alone, and by working together, our entire industry can be sustainable into the future.
NED Magazine | Third Quarter 2018 • 17
AssociationNews
Northeast Dairy Association, Inc. Votes to Change Name to Northeast Dairy Suppliers Association, Inc. BY ALEX WALSH
O
n July 10, 2018, the Northeast Dairy Association, Inc. board of directors voted to change its name to the Northeast Dairy Suppliers Association, Inc., The new name change will officially take effect once approved by the New York State Department of State. After much consideration and discussion, the board of directors made a motion to change the name to something that
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18 • Northeast Dairy Foods Association, Inc.
would clarify what the association represents. It is a vendor and supplier association that has been dedicated to the growth and advancement of the dairy processing, manufacturing and distribution industry in the Northeast since 1932. In 2006, it merged with several other associations to form the Northeast Dairy Association, which consisted of 70 members at the time. Today, it is comprised of over 200 member companies, including international businesses, as well as small, family-owned
AssociationNews companies, all of which distribute goods and services to the dairy industry. The soon-to-be Northeast Dairy Suppliers Association, Inc., is one of the largest dairy industry supplier associations in the country. Discussions began earlier this year when the board of directors raised the issue surrounding occasional confusion regarding the association’s representation, mission and goals. As the association continues to grow and prosper, it is important to distinguish the group as an organization that represents the suppliers to the dairy industry. “Sometimes people would mistake our association as an organization that represents dairy farmers,” said Ozzie Orsillo, president of the board of directors. “We wanted to separate ourselves from that and distinguish our association as an organization that represents the businesses and individuals that work with dairy food companies and provides them the services, products and equipment they need to make and distribute their products.” The membership is composed of companies that provide
goods, such as flavoring, containers and packaging, or services, including retirement planning, workers compensation insurance and health and safety consulting, to dairy product processors, manufacturers and distributors. The addition of “suppliers” to the name will clarify the group’s membership and specify the types of companies and individuals that comprise the association. It is anticipated that the New York State Department of State will approve the name change in the coming months. The association hosts the Northeast Dairy Clambake each year in Syracuse, New York, where over a thousand people attend for networking, and also co-hosts the annual Northeast Dairy Convention, held this year in Gettysburg, Pennsylvania. For more information on the clambake, to register to attend the Northeast Dairy Convention or to join the Northeast Dairy Suppliers Association, please visit www.neastda.org. Alex Walsh is the director of communications and membership for the Northeast Dairy Foods Association.
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ON THE
ROAD:
The Challenges of New Rules, Safety & Driver Shortages
Driver Shortage PAGE 21
Female Drivers PAGE 26
ELD Requirements PAGE 29
Safety PAGE 32
Wadhams Family PAGE 35
Mother Nature PAGE 36
HOS Rules PAGE 39
Drowsy Drivers PAGE 41 20 • Northeast Dairy Foods Association, Inc.
ON THE ROAD
Truck Driver Shortage Continues to Rise Due to ELD Use, Age of Existing Workforce BY BOB COSTELLO
O
ver the past 15 years, the trucking industry has struggled with a shortage of truck drivers. The shortfall was first documented in a 2005 report. At that time, the shortage was roughly 20,000. During the Great Recession that started in 2008, the driver shortage was erased but only because industry volumes plummeted, resulting in fewer drivers needed. However, as industry volumes began to recover in 2011, the shortage slowly returned. The driver market continued to tighten, and the shortage skyrocketed to roughly 45,000 by 2015. In 2016, the industry still suffered a shortage, but it was less than in 2015, as industry freight volumes softened. As this article highlights, the driver shortfall is expected to rise to the highest level on record as freight volumes recover and the industry transitions to the use of electronic logging devices to record driver hours-of-service. There are many reasons for the current driver shortage, but one of the largest factors is the relatively high average age of the existing workforce. According to surveys by the American Trucking Association, the average driver age in the for-hire over-the-road truckload industry is 49. Other trucking sectors have an even higher average age, such as less-than-truckload and private carriers. While the driver shortage is not as acute in these sectors as it is in the over-the-road truckload sector, the high average age still affects the overall shortage. As these two groups see drivers retire, they often go into the truckload labor pool to recruit drivers. Additionally, the industry has historically struggled to attract all segments of the population as just 6 percent of truck drivers in 2016 were women. This percentage hasn’t changed much historically, ranging from 4.5 percent to 6 percent over the last 15 years. In 2016, 38.7 percent of drivers were minorities, which has jumped 12 percentage points from 26.6 percent in 2001, according to Department of Labor statistics. Today, motor carriers struggle to find enough qualified drivers, which makes the impact of the shortage seem much worse than the numbers in this report. Many carriers, despite being
Editor’s Note: Moving goods from here to there is an important factor in the overall success of the dairy business. However, one of the impediments to effective transportation is the shortage of truck drivers. This, however, is not unique to dairy but pertains to every industry that depends on reliable transportation, as is reported in the following excerpt from the 2017 Truck Driver Shortage Analysis published with permission from the American Trucking Associations. In this report, the term “truck drivers” refers to Class 8 tractor-trailer drivers, a subset of more than 3.5 million truck drivers in the U.S. short on drivers, are highly selective in hiring drivers because they have made safety and professionalism high priorities. The driver shortage is really a problem for the entire supply chain, as 70.6 percent of all freight tonnage is moved on the nation’s highways. According to the American Transportation Research Institute’s Analysis of the Operational Costs of Trucking, 43 percent of trucking’s operational costs is driver compensation, which is the largest operational cost for a motor carrier. Additionally, as volumes increase, the existing driver pool is only more strained.
KEY FINDINGSKGROUND
• • •
In 2016, the trucking industry was short roughly 36,500 drivers, which was down from 45,000 in 2015. If current trends hold, the shortage could swell to over 174,000 by 2026. While this analysis does account for a modest productivity loss from changing to an electronic logging device from a paper logbook for recording truck driver hoursof-service, it generally does not consider the impact of other potential regulations in the future. Instead, it simply demonstrates the difference between expected supply of drivers (using demographic and population data) and the demand for drivers (which accounts for industry growth and replacing aging drivers). NED Magazine | Third Quarter 2018 • 21
ON THE ROAD Truck Driver Shortage 200,000 180,000 160,000 140,000 120,000 100,000 80,000 60,000 40,000 20,000 0
2012 •
•
2014
2016
2018
The truck driver shortage probably seems much worse to motor carriers than the current figures suggest because of a quality versus quantity issue. Many carriers have strict hiring criteria based on driving history, experience and other factors. As a result, despite receiving applications for employment, motor carriers are finding few eligible candidates, which is a quality issue. According to the ATA’s 2015 Benchmarking Guide for Driver Recruitment & Retention, 88 percent of fleets said they were getting enough applicants, but many were simply not qualified. There is no reason to believe that this situation has improved since 2015. The cost of lowering hiring standards can be significant in the long run when accounting for increased insurance premiums and accidents. Again, this analysis does not take into account the quality of applicants. The truck driver shortage and driver turnover rates, which are running high in the for-hire truckload industry, are not the same. Turnover is a reflection of demand for drivers, with higher rates generally indicating strong demand for drivers. The vast majority of driver turnover is churn in the industry — drivers moving from one carrier to another. As demand for drivers increases, trucking companies try to take drivers from other carriers by offering sign-on bonuses, higher pay, newer trucks and better routes. However, the shortage is calculated in a completely different manner, and churn in the industry is not included in the shortage calculation.
22 • Northeast Dairy Foods Association, Inc.
•
2020
2022
2024
2026
Over the next decade, the trucking industry will need to hire roughly 898,000 new drivers, or an average of nearly 90,000 per year. Replacing retiring truck drivers will be by far the largest factor, accounting for nearly half of new driver hires (49 percent). The second largest factor will be industry growth, accounting for 28 percent of new driver hires.
CAUSES OF THE TRUCK DRIVER SHORTAGE
There are many causes of the truck driver shortage. Outlined below are some of the primary reasons: • Demographics/Age: The median age of over-the-road truck drivers is 49, according to the ATA’s Driver Compensation Study, compared with just 42 for all U.S. workers as reported by the U.S. Department of Labor. Some sectors within the trucking industry have an even higher median age. For example, private fleet drivers have a median age of 52 years old. Additionally, the current age requirement to drive a tractor-trailer across state lines is 21. This means that interstate motor carriers miss out on the population between 18 and 21. Often these individuals, at least those that don’t go on to higher education or the military, obtain employment in construction, retail or fast food industries, as they can start their careers at a younger age. (Editor’s Note: More information regarding truck driver ages can be found at www.truckingresearch.org.)
ON THE ROAD •
•
•
Demographics/Gender: Females make up nearly 47 percent of all U.S. workers, yet only comprise 6 percent of all truck drivers, according to the U.S. Department of Labor. The share of female drivers has remained stagnant between 4.5 percent and 6 percent since 2000. This is a large, untapped portion of the population. Lifestyle: When new to the industry, many drivers are assigned routes that put them on the road for extended periods of time before they return home, typically a week or two. Therefore, it is not just a career but a lifestyle that does not fit with everyone’s desires or needs. Eventually, drivers who wish to can move into regional or local driving positions with tenure. More Job Alternatives Available: Several years ago, the trucking industry was one of the few industries hiring people. Today, the job market has improved and there are more job alternatives available for current drivers and would-be truck drivers. For example, according to the U.S. Department of Labor, the construction industry has increased payrolls by nearly 1.3 million over the last five years. Most construction jobs are local and don’t require
•
travel as extensive as truck driving. Additionally, these alternative jobs often carry much less responsibility and fewer regulatory requirements. Regulations: Most of the time, regulations, like changes to truck driver hours-of-service, reduce industry productivity. Reductions in productivity exacerbate the driver shortage, as it requires more trucks, and thus more drivers, to move the same amount of freight.OUCK DRIVER SHORTAGE
COURSE OF ACTION
There is no single cause of the driver shortage, and therefore there is not one way to solve it. Below is a brief list of market reactions and possible policy solutions to relieve this issue: • Driver Pay Increases: The natural market reaction to any shortage is that prices rise. In this case, price is driver wages, which are again increasing significantly. Most fleets instituted large pay increases in the summer of 2014 with many repeating the increases again in 2015. Even with the soft freight environment in 2016, many fleets increased pay rates. Today, sign-on bonuses are used throughout the industry as competition for drivers
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NED Magazine | Third Quarter 2018 • 23
ON THE ROAD Total Drivers Needed From 2017 Through 2026 by Reason 1,000,000 900,000 800,000 700,000
Drivers leaving before retirement
600,000
Drivers pushed put of the industry
500,000
Industry growth
400,000 Retirements
300,000 200,000 100,000 0
•
•
heats up. Expect driver pay to continue rising as long as the driver shortage continues. Good benefits are also part of a total compensation package in the industry. More At-Home Time: Potential drivers are often hesitant to take a job that requires so much time away from home, especially at first. The increased prevalence of retail distribution centers and use of the hub and spoke system have drastically reduced the average length-of-haul across the industry; this reduction in travel distances could and should translate to less time on the road for drivers. However, there are practical limits to how much the industry can reduce length-of-haul and increase at-home time. Lower Driving Age: Interstate driving currently has an age minimum of 21. The 18- to 20-year-old segment has the highest rate of unemployment of any age group, yet this is an entire segment the industry cannot access (with the exception of local in-state routes, which is generally reserved for seniority). Additionally, potential drivers are likely to have found another career path (that they are already three years into) by the time they reach 21. The Federal Motor Carrier Safety Administration plans to conduct a study of the safety of commercial motor vehicle drivers under the age of 21. Unfortunately, despite ATA’s calls for broad participation, FMCSA has limited
24 • Northeast Dairy Foods Association, Inc.
•
•
involvement in the program to current or recently separated military personnel, severely restricting the pool of potential participants. This is why ATA has supported the Waving Hindrances to Economic Enterprise and Labor Act, or WHEEL Act, which would expand the pool of potential participants to any trained CDL driver between the ages of 18 and 21 who has a clean driving record. Improved Driver Image: Unfortunately, the public perception of a truck driver has a tendency to be negative. Trucking Moves America Forward, of which ATA is a founding member, is an example of a positive image initiative and will hopefully highlight a demanding but rewarding career for potential drivers. OF ACTION Transitioning Military Personnel to Careers as Truck Drivers: ATA supports efforts to ease the driver shortage by facilitating the transition of military veterans into fulfilling careers in the trucking industry. These efforts include making it easier for active duty military personnel to obtain their commercial learner’s permit while stationed outside their home state, as well as efforts to allow those with a military occupation of truck driver to have the military truck driver training and experience counted toward the civilian licensing requirements.
ON THE ROAD Share of Drivers Needed Through 2026
Retirement Drivers pushed out of the industry Industry growth Drivers leaving before retirement
•
•
Better Treatment by the Supply Chain: Compounding the already difficult lifestyle, drivers often complain of mistreatment at shipping and receiving facilities. Complaints range from restricted access to restrooms to having to wait extended periods of time before the trailer is loaded or unloaded. Improving the experience for drivers at drop-off and pickup locations would provide for a more attractive career choice. All companies in the supply chain, including trucking companies, shippers and receivers, need to treat drivers with the respect that they deserve. Autonomous Trucks: While we are still years away from truly driverless Class 8 trucks running on the highway as a normal part of the industry, driver-assist technologies in heavy-duty tractor trailers could eventually have a positive impact on the driver shortage by making the job less stressful, and the more sophisticated technology may also attract younger individuals to truck driving. Many years from now, and well beyond the dates of this report, one could envision an environment where the longer, linehaul portion of truck freight movements are completed by autonomous trucks and local pick-up and delivery routes are completed by drivers. However, motor carriers should not count on this being an option for many years.
TRUCK DRIVERS NEEDED IN THE FUTURE
As part of this analysis, we considered how many new drivers will be needed in the industry over the next 10 years. When accounting for both industry growth and replacing drivers leaving their jobs, either from retirement or other reasons, the industry will need over 897,500 new drivers over the coming decade, or 89,750 per year on average. Retirement and industry growth contribute to the bulk of future driver demand. With an aging population of current drivers, retirement accounts for 49 percent of future need. The second largest factor is industry growth at 28 percent, or more than 250,000 drivers through 2026. Drivers also leave the industry prior to retirement. In some cases, they find that the lifestyle just isn’t for them and they pursue other opportunities that allow them to return home every night, like construction jobs. In other cases, the driver does not choose to leave the industry but is dismissed because of a driving incident or other disqualification. These two groups combined make up 23 percent of the annual demand for drivers. Bob Costello is the chief economic and senior vice president of the American Trucking Association, based in Washington, D.C. To read the entire report, visit www.trucking.org. NED Magazine | Third Quarter 2018 • 25
ON THE ROAD
FEMALE DRIVERS Few And Far Between BY CAROLINE K. REFF
K
aren Clark is one of only three women who drives a milk truck in the state of Maine. Growing up on her parents’ dairy farm in Canaan, Maine, a small town north of Augusta, Clark was destined to drive a truck. From the age of 2, she would hop into a milk truck beside her dad, Butch Clark, who started Clark’s Milk Transport in 1968, to go on the daily milk run — every day, even on Christmas. She started driving her own milk truck at age 16. Her dad trained her to drive just as well as — if not better than — any man. Thirty years later, she’s still at it, heading out on the milk route seven days a week. Clark’s day typically starts around 5 a.m. She inspects her truck and gets on her way by about 7:30 a.m., stopping at six farms on her usual route to pick up milk at each location, delivering it and arriving home by about 3 p.m. Some days, she starts at 4 a.m. and heads to a farm where she loads 65,000 pounds of milk to transport to Massachusetts. Still, she usually makes it home by 6 p.m. At each stop, she greets the farmers who have come to know her well and depend on her to pick up their milk. Her usual routine starts with checking each farm’s milk to be sure it is between 37 and 38 degrees F. (If it’s over 45 degrees, she can’t take it.) She also gives it the “sniff test” to make sure the
26 • Northeast Dairy Foods Association, Inc.
milk smells fresh, something years of experience have taught her. The milk is then agitated before she takes a sample. If all is well, the milk is pumped into her truck — about 10,000 pounds at each location. Once that’s complete, she unhooks, rinses out the tank and moves along to the next stop, where she starts the process all over again. She could complete each stop in about 10 to 15 minutes, but it often takes a bit longer because the farmers like to chat. “They don’t get to see too many people if they don’t leave the farm much,” she explained. “Sometimes, we’re the only people they see every other day, so we enjoy talking with them.” According to the Bureau of Labor Statistics, women make up only 6 percent of the truck driver population — and that’s the entire driver population, not just those in the dairy industry. Given that Clark is one of only three female milk truck drivers in the state of Maine, the percentage in any given area is, most likely, even smaller in the dairy industry. However, that has never intimidated Clark. “Anybody can do this if they want to,” she said, referring to something her dad taught her: “If you like what you do, it’s not a job.” She admits there are some qualities needed to do the job, but they are not necessarily heavy lifting or other so-called “man” skills that one might expect. “You need to get along with the farmers if you want to do this job. And, you’ve got
ON THE ROAD When I first started out, some people did say, ‘Well, she’s a girl,’ so you’ve got to prove yourself a little bit more than a man has to, but soon you gain others’ respect. — KAREN CLARK to like the smell of the farm,” she said. “When I first started out, some people did say, ‘Well, she’s a girl,’ so you’ve got to prove yourself a little bit more than a man has to, but soon you gain others’ respect.” “I’ve always had the attitude that I can do anything a man can do — but better,” she said, adding that she can grease the truck, change a tire and fix an air leak with the best of them. Most of the respect she’s earned, however, comes from being an experienced driver. “I’ve been up and down these roads from Maine to Massachusetts, and I even drove a flatbed for a year and a half at one point in my career,” she said. “People who think this is a man’s profession don’t realize I’m a farm girl. The cows don’t care what I look like!” Clark admits she’s experienced some hassle from male drivers, but nothing she can’t handle. She often sees other women at truck stops and says she feels safe, particularly now that she carries a cellphone (something that didn’t exist when she first started driving). “Typically, most drivers are very good to me,” she said, noting that the majority of her male counterparts have open minds and a shared sense of camaraderie. Only once did her dad, Butch, hire a new driver who refused to let Clark train him because she was a woman. “Well, I guess you don’t have a job here then,” said Butch, “because she’s one of the best drivers I have.” A single mom now, Clark said the occupation has allowed her to be home with her children every night, despite the long hours seven days a week. Being a family business, however, her mom was always there to help watch her children. Clark’s daughter, who is now 16, however, has no interest in following in her mother’s footsteps; neither does her 21-year-old son. She’s hoping that might change one day. Clark’s own role with the company has changed since the death of her father two years ago. She, along with her brother and mother, run the trucking company now. She coordinates
Doll Encourages Girls to Drive Their Own Dreams In May, the Women in Trucking Association announced the arrival of Clare, the truck driver doll. This plush doll was created and produced by HABA USA specifically for the association in an effort to encourage women to consider the trucking industry. Clare dons an official WIT cap and proudly wears an “I Heart Trucking” T-shirt, red collared shirt, jeans and boots. The brainchild of Ellen Voie, founder and CEO of WIT, Clare shares the story of her journey into the driver’s seat of her very own 18-wheeler by attending the National Transportation Center in Indianapolis. According to WIT, the release of this somewhat non-traditional new toy couldn’t be more in line with the current political climate of female empowerment. “The launch of this doll is a long-time dream come true for me,” Voie said. “The world is wide open for girls today, and I’m thrilled to be providing a toy that tells them that whatever they want to be is just great — whether it be a teacher, an ad exec or a professional driver.” Clare can be purchased through Amazon.com or at HABAUSA.com. Follow along with her adventures at #WheresClare on Twitter, Facebook and LinkedIn. WIT is a nonprofit association established to encourage the employment of women in the trucking industry, promote their accomplishments and minimize obstacles faced by women working in the industry.
Continued on next page NED Magazine | Third Quarter 2018 • 27
ON THE ROAD One of only three female milk truck drivers in Maine, Karen Clark has been on the road seven days a week for 30 years.
all the loads and dispatches the other six drivers, all of whom are male. (Her brother’s sons run the family farm, which is the only dairy farm left in her town.) “If I could find another woman to drive one of my trucks, then I would hire her,” she said. “It’s a good job,” said Clark of her career as a truck driver. “Everyone respects each other in the dairy industry. You’ve just got to have a positive attitude and know that you can do anything and be anything that you want to be. I’ve had that attitude forever.” Caroline K. Reff is the editor of Northeast Dairy.
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ON THE ROAD
ELD Requirements Now in Full Effect
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o one will argue that truck drivers work hard to make a living, often spending days, weeks or even months on the road. But that hard work often translates into long hours, little rest, driver fatigue and sometimes even unethical work practices to keep up and continue making money. These factors put the driver and others sharing the road at risk, as well as support inefficiencies and, in some cases, increase costs. Until recently, drivers self-monitored their hours of service manually in a log book, but often the temptation to drive a little further, make a little more money or simply get to the destination sooner resulted in the no-so-well-kept secret of less than accurate paper records. The Federal Motor Carrier Safety Administration’s congressionally mandated Electronic Logging Device Rule for trucking officially went into effect
in December 2017, representing a big change in the way drivers and their employers tracked time on the road. As of last December, inspectors began documenting violations on roadside inspection reports and, at their discretion, issuing citations to commercial motor vehicle drivers operating without a compliant ELD. This mandate affects many, although not all, who deliver milk and other dairy products from the farms to the suppliers, manufacturers, distributors and consumers. This change has not come without controversy, as some drivers are uncomfortable with the idea of “big brother watching,” as well as hours of service requirements that mandate longer rest periods, which, in turn, can result in fewer dollars in their pockets. Companies, too, see the benefits and hear about the eventual cost savings but struggle with the out of pocket expense to meet these requirements, as well as the learning curve that is
still confusing to drivers, companies and even law enforcement. To that end, a grace period was put into effect until this past April, giving drivers and their employers more time to achieve compliance. Now, commercial drivers are being put out of service if vehicles are not properly equipped with the required devices. The Commercial Vehicle Safety Alliance supports the compliance regulations but acknowledges that the phase-in from last December to this April allowed for a “smoother transition” to the new requirements, thus lessening the number of vehicles placed out of service for ELD violations. The ELD Rule applies to most motor carriers and drivers who are currently required to maintain records of duty status, including commercial buses and trucks. Canada and Mexico-domiciled drivers are also included unless they qualify for one of the exceptions to the ELD Rule. NED Magazine | Third Quarter 2018 • 29
ON THE ROAD “Like almost every industry, the transportation sector is implementing technology changes that affect all of us. Many of those technological shifts are improving our ability to move products to stores more quickly,” said Andy Fish, president and COO of Readington Farms, Inc. “The implementation of electronic tracking and monitoring logs required a culture shift and retraining for drivers, but the new system has also cut down on the administrative paperwork drivers once had to complete.”
WHY THE ELD?
According to the FMCSA, the ELD Rule has helped create a safer working environment for drivers, who often pushed themselves to the limit to complete a job or increase their incomes. By syncing to a vehicle’s engine, the ELD makes it easier and faster to accurately track, manage and share records of service.
THE ELD RULE:
• Specifies who is covered by the rule and who has exceptions • Provides for ELDs to be self-certified and registered with the FMCSA • Includes technical specifications to ensure ELDs are standardized and compliant • Includes a phased implementation timeline to give drivers and carriers time to comply • Includes provisions to help prevent data tampering and harassment of drivers • Creates standard data displays and data transfer processes, making it easier to demonstrate compliance and faster to share record of duty status with safety officials
KEY REQUIREMENTS
• Requires ELD use by commercial drivers who are required to pre-
30 • Northeast Dairy Foods Association, Inc.
pare hours-of-service records of duty status • Sets ELD performance and design standards and requires ELDs to be certified and registered with the FMSCA • Establishes what supporting documents drivers and carriers are required to keep • Prohibits harassment of drivers based on ELD data or connected technology • Provides recourse for drivers who believe they have been harassed
WHAT IF DRIVERS ARE NOT YET IN COMPLIANCE?
As of April 1, commercial motor vehicle drivers, like those who pick up and deliver products for the dairy industry, who are found in violation without the ELD or a grandfathered automatic on-board recording device will be placed out of service for 10 hours. Passenger-carrying CMV drivers will be placed out of service for
eight hours. Lack of compliance will be recorded on a roadside inspection report, and the driver may be cited with a ticket or civil penalty, according to the FMCSA. After the required hours out of service, the driver may continue to his or her final destination, provided the driver accurately documents the hours of service requirements using a paper record of duty status, like a log book, and has a copy of the inspection report and/or citation. If the driver is stopped again during the same trip, he or she must provide a copy of the original inspection report proving that he or she is still on the continuation of the original trip. After reaching the final destination, the driver cannot be re-dispatched without obtaining a compliant ELD.
THE EXCEPTIONS
There are, of course, exceptions. According to the FMSCA, the following are not required to use ELDs, although they may elect to do so even if not mandated:
ON THE ROAD • Drivers who use paper logs no more than eight days during any 30-day period • Driveaway-towaway drivers or if the vehicle being transported is a motor home or recreational vehicle trailer with at least one set of wheels being transported on the surface • Drivers of vehicles manufactured before 2000
WHAT DO CARRIERS AND DRIVERS NEED TO KNOW?
By now, approved ELDs should be installed in the required vehicles and drivers and administrative staff should be trained to use them. (Note: Carriers using automatic onboard recording devices, sometimes called AOBRDs, have until Dec. 16, 2019, to comply.) Drivers should already be trained and using ELDs properly, including knowing how to annotate and edit Record of Duty Status, certify RODS and collect required supporting documents. They also must know how to display and transfer data to safety officials during an inspection.
ARE THERE OTHER BENEFITS?
According to the FMCSA, ELDs will save 26 lives and prevent more than 550 injuries annually — to both drivers and others who share the road. There is no question that trucks with ELDs are significantly safer than those without them. Safety is, of course, at the forefront of this industry-wide change, but there are certain other upsides to the use of ELDs. While drivers may not always like it, companies can now track them using GPS, knowing where each vehicle is at any given time for more efficient route management and eliminating the need to track down drivers. It can also help companies develop more efficient and cost-effective routes, based on data collected by an ELD. Such a system can also track a driver’s idling time, which is not only a means to catch a driver who spends a little too much time off the road but also to save on fuel costs and maximize logistical methods by changing delivery times, routes or other factors that force drivers to waste time idling. Bad driving,
too, can be tracked through the ELD, as it records things like excessive acceleration, speeding or other reckless or aggressive behaviors. While some drivers may dislike this type of monitoring, it can, in fact, be helpful to them in the event of an accident, particularly one that was not the driver’s fault, as data can often be used as evidence. ELDs also alert drivers to fault codes that indicate the need for maintenance and prevent roadside breakdowns, which can be both costly and dangerous. Finally, ELDs, while an investment, can ultimately save companies time and money with automatic recordkeeping that will reduce administrative costs, lower insurance costs and decrease liability.
STILL HAVE QUESTIONS?
The new regulations are complex. For more information on how to be ELD complaint, go to https://www.fmcsa.dot. gov/hours-service/elds/faqs. (Information in this article was used with permission from the Federal Motor Carrier Safety Administration and can be found at www.fmsca.dot.gov).
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ON THE ROAD
Technology Improves Safety on the Road and in the Tanks BY CHRISTY PERRY TUOHEY
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ecent innovations and changes in tanker truck design and electronic truck fleet monitoring have made dairy product hauling safer than ever. That’s good news for consumers, farmers, dairy truck drivers and trucking companies. Typical North American fluid milk tanker temperature, quality and cleanliness inspections require truck drivers and inspectors to climb atop round, sometimes slippery trailers to open manholes, also called manways, located on the top of tankers. Accidental falls from such tankers are not uncommon and can be deadly. According to a 2008 article on truck falls in Professional Safety Journal, “Fixed ladders are usually provided for accessing the top of the tank, but fall protection for the driver once s/he is atop the tank — at least 15 feet above the ground — is problematic.”
EMERALD ISLE INSPIRATION
In search of a safer truck design, Quebec, Canada-based Tremcar, a manufacturer of stainless steel and aluminum tank trailers for liquid bulk transport, partnered with Massachusettsbased dairy cooperative Agri-Mark. A Tremcar/Agri-Mark team traveled to Europe, where tankers with side manholes are commonly used. Among other stops, they visited a dairy co-operative in County Tipperary, Ireland, and studied tanker designs. The manholes there are positioned near the bottom of the tank rather than the top. Tremcar took that idea and added side manholes to its own dairy farm pickup trailers. “It’s safer for the driver, and it’s safer for the product,” said Melanie Dufresne, assistant to the president at Tremcar.
A PORTAL TO FOOD SAFETY
Dufresne explained that the side manhole not only keeps the driver at ground level but also provides tightly sealed ports for milk sampling and temperature checks. Drivers can draw milk out with a syringe and insert a thermometer into the tank without outside elements getting into the milk. The side manholes also make for more thorough cleaning. 32 • Northeast Dairy Foods Association, Inc.
There are tanker parts that may block the soap and water spray in their shadows. Inspecting for “shadowing” is easier through the ground-level opening. “When you inspect from the top, you cannot see the top of the tank under you as when you inspect from under the tank,” said Dufresne. A flashlight inspection of Tremcar’s milk tanks can show if any possible shadowing has occurred and spots have been missed. Proper tanker cleaning for trucks hauling fluid milk is of utmost importance, according to Rob Ralyea, senior dairy extension associate at the Cornell University College of Agriculture and Life Sciences. “An improperly cleaned tanker could cause some serious issues,” Ralyea said. “We all know raw milk contains pathogens, and if the tanker is not cleaned properly and you’ve got a farm that’s got pretty high [bacteria] counts, the next farm is not going to be very happy by you putting milk in a tanker that maybe had a higher load that wasn’t cleaned properly.” Tremcar side manhole milk trailers hit the road in North America in 2015. Today, Agri-Mark has a fleet of 25, and it is recognized by regulators throughout New England and New York. The company sent its innovative tankers out on tour in early 2018, beginning in New York and traveling along highways in southern states. “Any company can borrow the truck for up to a month to try it out,” Dufresne said. Interested milk haulers are invited to contact Tremcar’s Pete Turkalj at 330-289-5503 or by email at pttank@neo.rr.com.
SAFER WITH SENSORS
Electronic monitoring of its fleet is not new to Leonard’s Express, a Farmington, New York, transportation provider. It began tracking its trucks with GPS satellite technology in the early 1990s. After the Federal Information Security Management Act, part of the Electronic Government Act, was signed into law in 2002, the trucking company decided to add telematics — long-distance vehicle-tracking technology — to its fleet management system.
ON THE ROAD
“The telematics has been a game-changer as far as our ability to control the product while it’s in our possession,” said Chief Operating Officer Kevin Johnson. “We are able to monitor that trailer remotely, so if it goes out of temperature, we are alerted. If the trailer is changed from continuous run to start-stop, we are notified. It will notify us if the doors are open on the trailer.” Seventy percent of the company’s business is food-related. Leonard’s Express has 350 refrigerated trailers picking up and delivering packaged foods, including dairy products. Though it has taken years to convert each one to telematics, almost the entire fleet is now capable of providing immediate information to both the drivers and employees monitoring them at company headquarters. Johnson said the company’s truck drivers are trained to understand how the refrigerated units work and their different settings. The trailers contain three different thermometers to monitor product temperature during transit, which contributes to better control of the dairy food cold chain. “Temperature is a big factor in the shelf-life of many dairy products,” explained Nicole Martin, M.S., associate director of the milk quality improvement
program at Cornell’s Department of Food Science. “Just one or two degrees difference can change the expected shelf-life of a product significantly.”
NEW ELECTRONIC RULES OF THE ROAD
Tremcar’s innovative side manhole increases safety for both drivers and product.
In December 2017, a federal rule went into effect mandating that commercial truckers and bus drivers use electronic logging devices to automatically record driving time and other hours-of-service data. Leonard’s Express replaced paper logs with electronic ones in 2010, so while the ELD Rule did not introduce new logging practices to the company, it did, as Johnson put it, “level the playing field” with all companies being forced to comply. In the past, drivers using paper logs could change their records to make deliveries on time, even after they had run out of HOS. Electronic logs eliminate such manipulation and keep drivers in compliance with safety regulations regarding getting enough rest to safely drive. From a driver safety perspective, Johnson would like to see changes to federal HOS laws, including a return to the “sleeper berth provision,” which allowed drivers to drive for 5 1/2 hours and then NED Magazine | Third Quarter 2018 • 33
ON THE ROAD The telematics has been a game-changer as far as our ability to control the product while it’s in our possession.
MILK
— KEVIN JOHNSON, LEONARD’S EXPRESS COO
go into a sleeper berth — an actual built-in sleeper berth in a truck or a stop at a motel — for five hours. Current federal regulations require a 14-hour on-duty clock for drivers following 10 consecutive hours off-duty. “Most truck drivers don’t need 10 hours off. They don’t sleep 10 hours. When they’re out on the road, they want to work,” Johnson said. Because the sleeper berth provision allows a driver to split the required 10 consecutive-hour break into two shifts, “it allows them more flexibility in their sleeping schedules and it makes them safer.” Christy Perry Tuohey is a freelance writer and author based in Syracuse, New York.
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Donate milk, too. According to Feeding America, the nation’s largest domestic hunger-relief organization, milk is one of the most requested but least donated items at food banks. On average, food banks provide the equivalent of less than one gallon of milk per person per year. While Americans are generous with canned and dry goods, many don’t think to donate milk because it’s perishable. Contact your local food bank to see if it is able to accept donations of milk for distribution in your community.
ON THE ROAD The Wadhams family has been in the trucking business for three generations. Pictured, left to right, are third-generation family members Jeffrey Wadhams, Gabrielle Wadhams, Anthony Wadhams, Peter Wadhams, Stephanie Wadhams-Grenier and Andrew Wadhams, and second-generation family generation and coowners Steve Wadhams, front left, and Rick Wadhams, front right.
Wadhams Family Keeps Business Thriving Through Three Generations
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n 1949, Earl “Red” T. Wadhams started hauling milk with only one truck. He worked impossibly long days with little down time in all kinds of weather, covering 13 farms and hauling 48 milk cans each day to build a business that now has three divisions run as Wadhams Enterprises by his sons, Rick and Steve. While the elder Wadhams passed away in 2010, his name remains on the milk hauling arm of the business, Earl T. Wadhams, Inc. Rick Wadhams, co-owner, and his brother, Steve, now operate the businesses, which also include RIST Transport, Ltd. and ARG Trucking Corp. Rick admits one of the biggest challenges of the operation is finding enough drivers and convincing young people that the industry can be a lucrative option. “We have roughly 400 drivers — 140 in the milk division — and we could easily employ 60 more,” Rick said. “We’ve gone to high school career fairs and job fairs in New York, New Jersey, Pennsylvania and Massachusetts. It just isn’t an occupation of choice.” Adding to the shortage is the fact that in most states across the country, a person can’t operate a Class A vehicle, like a
milk tanker, until he or she is 21. Young people graduate from high school at approximately 18 years of age looking for career options. Unfortunately, trucking isn’t one yet open to them. By the time they are of age — three years after high school — most have found other career paths. To address the driver shortage, Wadhams has started its own training program to encourage those with Class B licenses to work toward Class A licenses. The company trains potential drivers and hires them if they successfully complete the training, paying them throughout the process. “Most of our drivers start at $16 to $16.50 an hour — up to $20 an hour for our milk drivers,” Rick explained. “We have people making $45,000 to $70,000 depending on how hard they want to work. You can make a good living as a driver, but not a lot of people are interested.” Thankfully, there is a third generation of the Wadhams family that is “enthusiastic” about keeping the businesses going strong. The adult children of both Rick and Steve are working with their fathers to find the right roles for everyone in the family who wants to see the businesses thrive well into the future. NED Magazine | Third Quarter 2018 • 35
ON THE ROAD
Dairy Industry Has Unique Concerns When Mother Nature Prevents Transporting Goods BY CAROLINE K. REFF
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ast March, two nor’easters threatened New York and other parts of the Northeast — one right on top of the other — with a severity that significantly impacted travel and safety on the roads. New York Gov. Andrew Cuomo, in conjunction with other state agencies, warned the driving public to take precautions on the roads, eventually issuing travel bans throughout much of the state. “We stand ready and plan to deploy our agencies and provide resources to help communities that will be impacted by the impending nor’easter,” said New York State Lt. Gov. Kathy Hochul in a statement issued last March. “We encourage New Yorkers to prepare for heavy snowfall, rain and high winds and, if possible, to avoid travel and stay indoors. We urge those who have to travel to take
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extreme caution to ensure their safety in the event of high snow accumulation and potential flooding.” The first storm focused primarily on Central and Southern New York, as well as parts of Pennsylvania, in the form of rain, which turned to sleet and snow, from March 1 to March 3. Binghamton, New York, received over 13 inches, and over 20 inches fell in Rome, New York, but most areas east and west of this area along the New York State Thruway received little to no precipitation, according to the National Weather Service. The second storm hit only a few days later with a forecast that made New York’s governor, with the help of other state agencies, issue a travel advisory in anticipation of the hazardous weather that banned all vehicles from the Thruway, including tractor-trailers, buses and box
Everybody supports the safety of road closures. We just want it to be more focused, so our drivers can navigate around the weather. — TIM CRONIN trucks, from the New York City line to Syracuse, including the Berkshire Spur, the Garden State Parkway Connector, I-81 from the Pennsylvania line to the New York State Thruway, and I-88 from Binghamton to Albany.
ON THE ROAD “It is imperative that we keep roadways clear and people safe,” said Cuomo in a March 6 statement during one of the storms. “We are implementing this ban on tractor-trailers so our plow operators, fire, law enforcement and emergency personnel can keep roads clean and respond to emergencies as quickly as possible, and, if travel is necessary, do so using extreme caution.” While most of the state was under this travel ban, the snow ended up centered on the Tri-State area, with New York City receiving only 4 inches of snow and places like Danbury, Connecticut, receiving as much as 18. For certain, the governor’s ban was to keep safety at the forefront, but many dairy distributors felt the impact, as perishable goods had to get through. Some areas of the state weren’t impacted as severely as others, furthering the frustration of those whose customers were depending on them.
CHEESE MAKER WANTS TO SEE CORE FOCUS ON WEATHER
Tim Cronin, general manager of BelGioioso Cheese, in Schenectady, New York, shared in the frustration. “While we appreciate the need for road safety, we experienced two occasions in 2018 where the entire length of the Thruway, including westbound portions, was affected. However, the area near us wasn’t affected by the snow, which debilitated our ability to operate our business,” said Cronin, who would like to see a more “core” focus on where weather strikes, as opposed to “such a broad stroke.” He noted that his drivers “are professionals with the skills and ability to migrate around weather.” “Everybody supports the safety of road closures,” Cronin added. “We just want it to be more focused, so our drivers can navigate around the weather.” Last winter’s closures impacted delivery to the cheese manufacturer’s
customers. “We operate in a perishable industry,” said Cronin, whose company manufactures, ages, packages and ships over 25 varieties of specialty cheese. “In the dairy industry, it’s trucks in and trucks out. The cows don’t stop milking in bad weather. Every day we miss, it is a day our customers don’t eat our product and is a missed sales opportunity. While road safety is a priority, we want our drivers to be successful and our company to be successful in its deliveries, as well.” Clearly, Belgioioso Cheese follows what the New York State Department of Transportation directs during a weather crisis, but this past winter, the area around its manufacturing plant did not see much snow at all — yet its trucks were still banned from major delivery routes. In some cases, drivers were forced to take secondary roads, which can, in fact, make for more impactful and dangerous problems than if the big trucks had stayed on the main thoroughfares. “What we ultimately need is to be as ahead of a storm as possible, so we can get as much product on the road before storms arrive,” explained Cronin. “In this part of the country, we are used to snow, so we have to assume that the roads are going to be closed from time to time. Sometimes that means making decisions in anticipation of roads closing. Right now, we’re trying to focus on working with partners who control this to find a happy medium. We’ll follow the guidelines and restrictions, but we’d like to see if we can help bring a bit more clarity to them.”
TRANSPORTING FRESH DAIRY IS NOT THE SAME AS HAULING SOUP
Jim Buelow, director of milk procurement for Mountainside Farms/Worcester Creamery, a milk manufacturer and packager in Worcester, New York, also saw his deliveries affected by last winter’s road closures. According to Buelow, the com-
Dairy Association Meets with NYS Office of Emergency Management Bruce W. Krupke, executive vice president of the Northeast Dairy Foods Association, and Alex Walsh, director of membership and communications, recently met with Kevin Wisely, director of the New York State Office of Emergency Management, to discuss this and other issues directly affecting the association’s members. The OEM is constantly monitoring weather and road conditions — not just in the wintertime — while coordinating with other state and local agencies to see if any action is needed. According to information gathered from Wisely, when the state sees fit to close all or part of a major transportation route, it does its best to limit the duration of the closure. For example, when a snow storm is approaching, the number of plows will be increased as part of the effort to keep commerce moving. Wisely recommends that all businesses, including those in the dairy industry, have protocols in place and know what to do in advance of a predicted weather event. Companies should have policies and contingency plans in place for critical situations — like bad weather — and these should be communicated to and practiced by employees on a regular basis. NED Magazine | Third Quarter 2018 • 37
ON THE ROAD
SNOW:
Be in the Know! Those responsible for transportation and logistics in the dairy industry should follow social media and the websites of government agencies for updates and information when an emergency strikes. Equally important, companies need a plan to quickly disseminate the information to their drivers. According to Kevin Wisely, director of the New York State Office of Emergency Management, agencies like the police (both state and local), the New York State Office of Emergency Management, the New York State Department of Transportation, the New York State Thruway Authority, NYAlert and 511NY all actively push updates out on Twitter and Facebook. Association members can also enroll to receive alerts from NYAlert for specific roads, counties or the entire state. Neighboring states and their agencies also push out information via social media and websites. NEW YORK STATE HOMELAND SECURITY AND EMERGENCY SERVICES: dhses.ny.gov/oem/ NEW YORK STATE DEPARTMENT OF TRANSPORTATION: dot.ny.gov/index NEW YORK STATE THRUWAY AUTHORITY: thruway.ny.gov/index.shtml NYALERT: alert.ny.gov 511NY: 511ny.org
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pany was unable to deliver raw milk going towards Batavia in western New York state, as well as packaged milk headed to New York City and New Jersey, on three different occasions. While he, too, respects the safety precautions in place, he observed that during two of the closures “the roads weren’t that bad,” which meant his trucks were out taking alternate routes in order to reach their destinations in time. He said a number of his drivers were ticketed during the travel ban, when conditions near his location were fine. Buelow acknowledges that snowy roads are a part of doing business in the Northeast and “there’s really nothing you can do about it.” He appreciates the advanced notice on weather and potential closures whenever possible, so that his company can have the option of delivering products early when feasible. However, because Worcester Creamery products are fresh and perishable, “in most cases, fresh products have not yet been produced, so we can’t package anything extra.” He, too, noted that his drivers are highly skilled professionals used to driving through all sorts of weather and noted that a ban on automobiles rather than big trucks might be more appropriate in certain situations. Rain, snow, sleet or hail, the economic impact cannot be overlooked. “In the end, we were the losers,” Buelow said of last year’s road closures. “If we don’t get our products there, then consumers will substitute something else, so that sale is a total loss,” he explained. “Transporting fresh dairy products is much different than hauling cans of soup. The market is very time sensitive. I think the governor’s office could have been more aware of the uniqueness of our industry. In a true blizzard situation, sure, a travel ban is warranted, but when they’re predicting a foot of snow, and you end up with 6 inches, it looks a little ridiculous.”
WHO MAKES THE CALL?
Todd Westhuis, the chief of staff for the New York State Department of Transportation, spent a lot of time as a young boy on his grandfather’s dairy farm in Wisconsin, so he understands the implications that a travel ban can have on the dairy industry. The decision to close roads comes through a collaboration with “very good partners” that include the New York State Department of Transportation, the New York State Thruway Authority, the governor’s office, various police agencies — from local to statewide — the New York State Office of Homeland Security and Emergency Services, and the Trucking Association of New York, as well as the media, to “assess the impact and build a decision” that is in the best interests of the public. Snow is not the only concern that affects travel — flooding, extreme heat, drought, construction, major accidents and other hazards can also warrant the need for an emergency response. Westhuis believes that these partnerships have greatly improved the state’s ability to respond to any kind of emergency that impacts road travel. “It is our job to respond quickly to any hazard and get people back to business,” Westhuis said. “The governor has made it very clear that emergency response is a priority. We’ve really built up our emergency command center, and we are prepared.” “Our system is much more complex than the public realizes, and we are managing incidents at every level across the state at all times. We try to be overprepared rather than underprepared,” he said, noting that the DOT is currently working to better coordinate its emergency command center with some of New York’s border states, as road closures and transportation issues can also impact its neighbors.
ON THE ROAD
11 Hours On, 10 Hours Off Is Key to HOS Rules
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ith locations in Syracuse, Rochester, Watertown, Buffalo and Elmira, New York, Conway Beam Leasing has a 60 plus year history of providing transportation solutions to companies throughout New York State. While the company provides a variety of services, including rentals and leasing, it also offers its customers Department of Transportation safety and compliance consultations to ensure that companies and their commercial drivers have the most up-to-date information related to transportation rules and laws. This service has been especially valuable since the government-mandated Electronic Logging Device requirements were put into place in recent months. “We make sure there is a connection between the DOT, us and our clients, so that we all are doing the right thing and making it a safer place for everyone to travel,” said Marc Schmidt,
vice president of Conway Beam Leasing. “Rules and laws are constantly changing, and it’s vital to stay current. Sometimes information can be misinterpreted, which only creates further confusion on the roads.” To comply with ELD regulations, a commercial truck driver’s hours of service, often referred to as HOS, must be considered. According to Schmidt, most drivers in any industry, including dairy, must follow HOS regulations if they drive a commercial motor vehicle, which is loosely defined as a vehicle weighing 10,000 pounds or more, used as part of a business and involved in interstate commerce.
WHAT ARE THE HOS RULES?
Eleven hours seems to be the key to the HOS rules. For most drivers, these 11 hours can pass very quickly and common delays — from traffic to waiting to load or unload — only add NED Magazine | Third Quarter 2018 • 39
ON THE ROAD Rules and laws are constantly changing, and it’s vital to stay current. Sometimes information can be misinterpreted, which only creates further confusion on the roads. — MARC SCHMIDT, VICE PRESIDENT OF CONWAY BEAM LEASING to the pressure to complete a job in this amount of time. Still, this 11-hour time limit is designed to make sure drivers get enough rest and lessen the incidence of fatigue, which can be a danger to both drivers and the public. According to the Federal Motor Carrier Safety Administration, a commercial motor vehicle driver must adhere to the following HOS regulations: • May drive a maximum of 11 hours after 10 consecutive hours off duty. • May not drive beyond the 14th hour after coming on duty following 10 consecutive days off duty. • May not drive after 60 to 70 hours on duty over seven to eight consecutive days. (Note: A driver may restart a seven- to eight-hour consecutive day period after taking 34 or more consecutive hours off duty.) • Must take at least eight consecutive hours in a sleeper berth (provided the vehicle has one), plus two consecutive hours in either the sleeper berth, off duty or any combination of the two. • In addition, drivers are allowed to start and return to the same location within 12 hours of duty time but must not exceed a 100-mile radius from his or her starting location. They also must have 10 consecutive hours between shifts and maintain a time clock function.
DEFINING A DRIVER’S DAY
According to Schmidt, there are specifically defined parts of a driver’s workday: on-duty time, off-duty time, driving time and sleeper berth time. The following define each of these terms according to the new guidelines. On-Duty Time is defined as “all the time from when a driver begins to work or is required to be ready to work until the driver is relieved from work and all responsibilities for performing work.” This includes all time at a plant, terminal, facility or other property of a motor carrier or shipper or on any public property waiting to be dispatched, unless the driver has been relieved from duty. It also includes all time inspecting, servicing or conditioning a commercial motor vehicle; crossing a border; actual time spent driving; all time in or upon any commercial motor vehicle, except time spent resting in a 40 • Northeast Dairy Foods Association, Inc.
sleeper berth; all time loading and unloading, supervising or assisting in the loading or unloading; and attending a commercial vehicle being loaded or unloaded, remaining in readiness to operate the commercial vehicle and/or giving or receiving receipts for shipments loaded or unloaded. On-duty time also includes time spent repairing, obtaining assistance or remaining in attendance with a disabled commercial motor vehicle; all time providing a breath sample or urine specimen, including travel time to and from the collection site, to comply with random, reasonable suspicion, post-accident or follow-up drug testing; performing any other work in the capacity, employ or service of a motor carrier; and performing any compensated work for a person who is not a motor carrier. According to Schmidt, the last parameter does not forbid a driver from working a second or part-time job. It does, however, prevent a driver from switching from a non-driving job to a driving job without the required 10 hours of rest. Driving Time is defined quite simply as all time spent at the driving controls of a commercial motor vehicle. Sleeper Berth Time is defined as any time spent inside the sleeper berth of a commercial motor vehicle, resting or sleeping. The Federal Motor Carrier Safety Administration’s regulations specify that a sleeper berth must be an area separate from the driving controls that includes a bed. The rules do not explicitly require a driver to sleep, according to Schmidt, but only mandate that a driver must have a “period of rest” within the sleeper berth or off-duty. While the industry certainly cannot control whether or not a driver spends his or her time sleeping, the expectation is that the driver realizes his or her own responsibility to get adequate rest and sleep in the time available in order to ensure the safety of his or her driving. Equal responsibility also falls on the employer, who must ensure that the driver reports to work in a condition fit to drive. Off-Duty Time is defined as any time not spent on duty or in the commercial vehicle’s sleeper berth. A full understanding of these terms and compliance with the HOS regulations are vital to a safe and successful commercial motor vehicle driver’s career and a company’s reputation, safety record and profitability. Be informed, and be sure your drivers are informed, too.
ON THE ROAD The FMCSA offers some tips to help keep drivers alert, healthy and well rested while driving: GET ENOUGH SLEEP
This sounds like an obvious one, but it’s probably the most important. Get some sleep. An FMCSA study showed that most people are less alert at night, particularly after midnight, and drowsiness is often made worse by being on the road for an extended period of time, especially after dark. And, due to circadian rhythms, which are defined by the National Sleep Foundation as “a 24-hour internal clock that is running in the background of your brain and cycles between sleepiness and alertness at regular intervals,” people tend to be naturally drowsy between midnight and 6 a.m., as well as between 2 p.m. and 4 p.m. Avoiding driving during these times (or at least scheduling a quick rest or nap if you get drowsy) can make all the difference when it comes to safety on the road.
DROWSY DRIVERS POSE A DANGER Tips for Staying Alert Behind the Wheel
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hile Hours of Service and ELD Rules have been put in place to increase driver safety, fatigue and lack of sleep still pose serious concerns to truck drivers and those who share the road with them. According to the Federal Motor Carrier Safety Administration, driver fatigue is often the result of physical and/or mental exertion. Drivers don’t always realize how little sleep they are actually getting and the effects that sleep deprivation can have on their ability to do the job. Lack of sleep, extended work hours, strenuous physical work and even non-work or social activities can keep drivers from getting the sleep they need to stay alert on the road. Fatigue can cause reduced attention, lapses in memory, reduced reaction time, lack of awareness of one’s surroundings, changes in mood, a decrease in good judgment and even road rage — all qualities that are dangerous for anyone behind the wheel, no less someone driving a 50,000-pound commercial motor vehicle.
EAT WELL
Eating on a regular schedule and not skipping meals no matter how busy you are can reduce the chance of driver fatigue. However, be careful not to overeat, which can interfere with sleep or, at the other end of the spectrum, make you sleepy. Small meals and snacks on a regular schedule can help keep drivers going strong.
NAP
Children often feel forced to take a nap, but what adult doesn’t enjoy an occasional mid-day snooze? If you feel drowsy on the road, take a nap. Ideally, an effective nap should last for no more than 45 minutes, but even a 10-minute “power nap” can help. Experts suggest that drivers wait at least 15 minutes after waking to ensure they are fully awake before hitting the road again.
DON’T OVERLOOK THE SIGNS
Drivers spend most of their careers relying on road signs, so why not pay attention to the signs their own bodies are sending them? Drowsiness can come on quickly, so it’s important to recognize that frequent yawning, heavy eyes or blurred vision may indicate the need for a break. A study in the New England Journal of Medicine suggests that three out of four commercial motor vehicle drivers have reported at least one incident of driver error as a result of drowsiness. Naps taken before a driver feels drowsy are often more effective than naps taken once someone already feels sleepy. Continued on next page NED Magazine | Third Quarter 2018 • 41
ON THE ROAD AVOID MEDS
You need to know what medications you take and if the side effects include drowsiness before getting behind the wheel. This is especially true for new medications. Wait until you understand the full effects of a medication before operating a vehicle. Common medications that cause drowsiness include tranquilizers, sleeping pills, allergy medicines and cold medications. And, don’t forget that over-the-counter medications can cause drowsiness, too. An FMCSA study reported that 17 percent of commercial vehicle drivers were using over-the-counter drugs at the time of a crash. Unfortunately, it is often better to suffer through cold symptoms than to drive under the influence of medication.
CAFFEINE IS NOT ALWAYS THE ANSWER
Most people think that if you’re tired, all you have to do is drink a cup or two of coffee. Sorry, but that’s just not always true. It typically takes several minutes for caffeine to enter a person’s system, and if you regularly consume caffeinated drinks, like coffee or cola, you may get little or no effect. Lastly, excessive caffeine can lead to other health issues like irritability, nervousness, insomnia and headaches. What’s the best answer? Skip the coffee and take a quick nap instead.
DON’T RELY ON TRICKS
Everyone seems to have some sort of advice when it comes to how to stay alert and awake behind the wheel, but few of these suggestions are effective. Smoking, turning up the volume on the radio or opening a window for some fresh air might give you a quick boost, but these common “tricks” won’t cure drowsiness.
(Information from this article has been used with permission from the FMCSA.)
England
Brown & Brown Empire State is a full-service insurance brokerage offering: Commercial Insurance Employee Benefits Solutions Personal Insurance Bonding Services 500 Plum Street, Suite 200 • Syracuse, NY 13204 • (315) 474-3374 • www.bbempirestate.com
A Pro ud Partner of the Northeas t Dair y A ssociation 42 • Northeast Dairy Foods Association, Inc.
for Real Time Process Control
FoodSafety
CHEESE WHIZ
A Dairy Expert Dishes About Ripened Cheeses BY CHRISTY PERRY TUOHEY
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ob Ralyea took some time out to chew the fat, so to speak, about dairy food safety with regards to ripened cheeses, which according to some recent food science journal articles, are becoming increasingly popular with consumers. Ralyea is a senior extension associate in Cornell University’s Department of Food Science. He manages dairy extension programs throughout the state of New York, specializing in cheese and artisan cheese production and safety. He also is the manager of the Cornell Food Processing and Development Laboratory.
Cheeses like brie, camembert and bleu, they’re made from raw milk, right? They are in Europe, not so much here in the U.S. Because the problem with that is, with a brie or camembert, you’re usually looking at four to six weeks fermentation, which is well below the 60-day aging requirement, making it hard to do without pasteurizing the milk first.
Why are some soft-ripened cheeses more likely to carry the risk of listeriosis? Because when you make soft-ripened cheeses, generally you have a culture where the pH will drop, and if the pH doesn’t drop far enough and create enough acid to create an environment that will kill listeria, or it’s not in an acid form for long enough and the organism actually survives, the mold on the soft-ripened cheese creates ammonia, which brings the pH back up. And it also softens the cheese and releases a lot of moisture, so that makes it an ideal situation for listeria to thrive.
When you say the “mold,” is mold-ripened cheese included in that or is that a different thing? Whenever you’re going mold-ripened or soft-ripened, you’re putting mold on the outside or something on the outside to actually soften the cheese.
So soft-ripened cheese is going to have mold on it, regardless? Right. And it’s going to get squishy in the middle because of the mold fermentation and all that’s going on.
What about cave-ripened cheeses? Caves conjure up thoughts of bats and such. A cave is nothing more than an environment that has constant humidity and constant temperature. I mean, I have cheese caves here at Cornell. They’re brick, square rooms. You can go to Wegmans (a regional grocery chain) in Rochester, where they just built cheese caves out there, and they’re not underground. They’re nothing more than big rooms in which Wegman’s can control the humidity and temperature.
So cheese can be labeled “cave-ripened” even if it’s aged in brick rooms? Yes, and caves are nothing more than natural ways of doing that. Christy Perry Tuohey is a freelance writer and author based in Syracuse, New York. NED Magazine | Third Quarter 2018 • 43
DON’T SPOIL IT
Factors That Impact Dairy Food Safety BY CHRISTY PERRY TUOHEY
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s we are all aware, when it comes to dairy products, the clock is ticking from the cow to the refrigerator shelf — and every step along the way. Transportation, distribution, even the way a consumer takes his or her groceries home from the store, is vital to keeping products safe, fresh and delicious. Nicole Martin, M.S., from the Milk Quality Improvement Program at the Department of Food Science, Cornell University College of Agriculture and Life Sciences, is an expert in food safety, with a research interest in the transmission, control and detection of dairy associated spoilage microorganisms and pathogens. The following is a Q&A with Martin about food safety issues related to dairy products.
44 • Northeast Dairy Foods Association, Inc.
Q: What are some common bacterial contaminants that can be found in dairy products, and how do they get there? A: In fluid milk, there are two major groups of bacteria that cause spoilage. The first are cold-tolerant spore forming bacteria (e.g., Paenibacillus) that typically enter the fluid milk continuum on the dairy farm, survive pasteurization in spore form and then can grow at refrigeration temperatures. Cold-tolerant spore-forming bacteria are responsible
for approximately 50 percent of fluid milk spoilage. They are common in dairy farm environments, such as manure, soil and bedding, and are resistant to harsh environmental conditions, such as heat, drying and radiation. Efforts to understand how spores move from the farm environment into raw milk, as well as how to reduce that transfer, have been underway in our program over the last few years. The second group of bacteria that cause spoilage in milk are bacteria that enter into the milk after pasteurization. We call those post-pasteurization contaminants. PPC are typically Pseudomonas, which are cold-tolerant bacteria that grow quickly at refrigeration temperatures and can cause spoilage in just a few days. In other dairy products — for example yogurt, where the product charac-
FoodSafety teristics are very different than in fluid milk — many bacteria are unable to grow and cause spoilage. In yogurt, the primary organisms that cause spoilage are yeasts and molds. These organisms are also typically introduced into the product after processing. They may come from the environment (e.g., floors, walls, etc.), from employees or from equipment that has not been cleaned and sanitized properly.
just because it has reached the date stamped on the container. If in doubt, sniff and take a taste. As long as it still smells and tastes fine, go ahead and continue using it.
This is likely due to a number of factors, including chocolate milk having additional ingredients that provide an energy source for normal milk bacteria; the additional ingredients may be a source of bacteria, and legal pasteurization temperatures are higher for chocolate milk than for unflavored milk, which may contribute to faster bacterial outgrowth during shelf-life.
Q: What is the proper temperature for milk storage?
Q: How seriously should we take expiration or sell-by dates on dairy products? A: Code dates, or sell-by dates, are an estimate that the milk processor makes of the number of days that its product should maintain a specific level of quality. Sell-by dates have nothing to do with product safety. These aren’t actual expiration dates, and the confusion around this issue has certainly contributed to food waste. For example, a gallon of milk may be perfectly acceptable to drink well past its sell-by date, opened or unopened, or it may spoil well before that date. There are a lot of factors that contribute to when a fluid milk product will become unacceptable to consumers, including how the product was processed, what types of bacterial contaminants are in the milk and at what temperature it has been stored. That being said, don’t throw milk out
A: Ideally, milk should be stored between 34 degrees and 38 degrees F. Consumers can extend the shelf-life of their dairy products by storing them at the proper temperatures. This not only means keeping your refrigerator at or below 40 degrees F but not leaving milk out on the counter or keeping your milk in the door of your refrigerator where temperatures tend to be higher.
Q: Do flavored milks become inedible at the same rate or more slowly/quickly than regular white milk?
Q: Do yogurt products age in the same ways as milk, butter or cheese? Do the bacteria in yogurt cause variations in safe storage or ingestion? A: Yogurt has a much longer shelflife than milk and, in general, is a very different product because of the pH, as well as the beneficial bacteria that are added to create the yogurt. These beneficial bacteria create acid, which creates the texture of yogurt, but they also inhibit the growth of other bacteria. The primary spoilage organisms in yogurt are yeasts and molds, which are commonly able to grow in low pH environments, as well as at refrigeration temperatures. Christy Perry Tuohey is a freelance writer and author based in Syracuse, New York.
A: Chocolate milk typically has a shorter shelf-life than unflavored milk. NED Magazine | Third Quarter 2018 • 45
OSHA UPDATES Respiratory Protection, Noise Exposure Are Critical OSHA Standards BY ASHLEY MOLL
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ompanies in the dairy processing industry are subject to Occupational Safety and Health Administration regulations and standards. This starts with the basics of injury and illness (OSHA 300/300A) tracking and recordkeeping and extends to written safety programs, safety training and sometimes other industry-specific standards. The Respiratory Protection and Occupational Noise Exposure regulations are two priority hazards and critical OSHA standards applicable to companies within the dairy processing industry.
RESPIRATORY PROTECTION (29 CFR 1910.134 – RESPIRATORY PROTECTION) Respiratory protection should be a standard practice familiar to most dairy production operations. However, compliance with Respiratory Protection is still the fourth most frequently cited OSHA standard (2017) in general industry. As a reminder, the standard is in place to protect employees from elevated levels of chemicals, such as particulates, cleaning chemicals, ammonia or other air contaminants during normal and abnormal work activities. An effective Respiratory Protection Program is critical to providing a safe work environment for employees conducting work activities with chemical exposure hazards. The main components of an effective, OSHA-compliant Respiratory Protection Program include the following: 46 • Northeast Dairy Foods Association, Inc.
• A written Respiratory Protection Program, consisting of policies and procedures, must be in place for the implementation of the program. This includes the designation of a Respiratory Protection Program coordinator. • Employers must identify and ensure the proper selection of respirators, as well as evaluate the respiratory hazards in the workplace. This may require air monitoring to determine employee exposure levels. • Feasible engineering and administrative controls should be implemented first to control elevated exposure levels prior to the use of respiratory protection. • Medical evaluations must be provided to determine an employee’s clearance to use a respirator. These evaluations must be performed by a physician or other licensed health care professional and include a written recommendation regarding the employee’s ability to use the respirator and frequency for the next evaluation. • Fit testing (to test the fit of the respirator) is required at least annually for all employees using a negative pressure, tight-fitting facepiece respirator. • Employees must conduct negative and positive pressure checks (for tight-fitting respirators) prior to each use of the respirator. • Respirators must be stored and maintained in good condition and cleaned and disinfected after each use.
OSHAUpdates • Initial and periodic safety training must be provided to respirator users to ensure they understand respiratory hazards and the use, limitations and care of respiratory protection. • Periodic evaluations of the workplace must also be conducted to ensure proper use of respirators and implementation of the Respiratory Protection Program.
OCCUPATIONAL NOISE EXPOSURE (29 CFR 1910.95 – OCCUPATIONAL NOISE EXPOSURE) Dairy plants contain a multitude of production machinery and support equipment that often creates a potential noise issue in certain work areas. According to OSHA, it is the employer’s responsibility to implement feasible engineering and administrative controls or institute the use of hearing protection when noise levels exceed 90 decibels (dB) over an eight-hour time-weighted average. As noise levels increase, the acceptable duration of exposure decreases. For example, employees are permitted eight hours of noise exposure at 90 dB, four hours at 95 dB, two hours at 100 dB, etc. The Occupational Noise Exposure regulation outlines these variations in noise levels and permissible exposure durations where engineering and administrative controls and/or hearing protection must be implemented. The main components of an effective, OSHA-compliant Hearing Conservation Program include the following: • Employers must perform employee noise exposure monitoring to accurately identify employee exposures at or above 85 dB over an eight-hour TWA. Employers must evaluate representative employee exposures and update monitoring with changes in production, processes or controls that could increase noise exposure. • Employers must implement a written Hearing Conservation Program when employee noise exposures equal or exceed an eight-hour TWA of 85 dB. • Audiometric testing (hearing tests) must be conducted for employees exceeding the eight-hour TWA of 85 dB. The audiometric testing program must include both baseline (initial) audiograms and annual audiograms. Audiograms are used to determine potential, work-related, employee hearing loss, known as a Standard Threshold Shift. STSs are considered recordable on the OSHA 300 log. • Feasible engineering and administrative controls should be implemented first to control elevated noise levels prior to the use of hearing protection. • Hearing protection must be made available to any employee exposed to an eight-hour TWA of 85 dB or greater and required for employees exposed to noise at an eight-hour TWA of 90 dB or greater or anyone experiencing an STS.
• Noise training must be provided to employees exposed at or above the eight-hour TWAs of 85 dB initially and annually thereafter. Training must include the effects of noise; the purpose, advantages and disadvantages of various types of hearing protectors; the selection, fit and care of protectors; and the purpose and procedures of audiometric testing. In summary, both of these regulations are critical OSHA standards that are commonly applicable within the dairy processing industry in order to protect employee exposure to chemical and noise hazards. Evaluate these requirements in your plant and take appropriate action, as needed, to develop OSHA-required written safety programs with policies and procedures to protect the safety of employees. Ashley Moll is a senior project manager with Partners Environmental Consulting (formerly Greystone) in Saratoga Springs, New York. She is a consultant to Northeast Dairy Foods Assoc., Inc., members and can be contacted at amoll@partnersenv.com or 518-7916087. NED Magazine | Third Quarter 2018 • 47
HumanResources
You’re BY KATHY BARANY, PHR
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an I fire this employee? Or, if I want to terminate this employee, can I? Those are questions I get frequently from my clients. My answer is always the same, “Yes, but…” Then I go on to explain that some states, like New York, New Jersey, Pennsylvania and others, are “at-will” states. What that means is that the law says an employee is free to resign anytime he or she wants, and the employer may terminate an employee “at will” (when the employer wants to). However, don’t assume that just because you exercise your right to fire someone that you are off the hook. Employees may file charges against you for discrimination, unfair labor practices 48 • Northeast Dairy Foods Association, Inc.
or any other charges where employees feel their human rights have been violated. They also may believe they were fired due to retaliation for something they exercised their right to (such as filing a disability or workers’ compensation claim or lodging a complaint/grievance). Employees have the right to file complaints and charges, and employers have a legal obligation to respond to them. However, employers can minimize the probability of a charge being filed in the first place and can limit the liability if a charge is filed. How? The first thing to remember is to be fair. For example, is it fair to fire an employee without giving him or her a warning that he or she could lose his or her job if actions and/or performance
doesn’t improve? It’s only fair and the right thing to do — to put the ball in the employee’s court — so that by the time he or she does get terminated, that employee is making the decision to not do what is needed to keep the job. In almost every case, it’s not fair to fire without warning. One exception would be if an employee committed an act egregious enough to be considered misconduct, which would warrant immediate termination.
THOROUGH DOCUMENTATION IS A MUST You owe it to the employee and your company to make sure you have given the employee every opportunity to improve whatever it is that needs
HumanResources improving and have documented doing so. Documentation has to tell a complete story. When you document an employee issue, consider the following: • Have you provided a complete description of the incident(s) including dates? • Have you clearly communicated your (reasonable) expectations? • Can those expectations be enforced objectively? • Have you given the employee notice (hopefully written) that the behavior or performance is unacceptable? • Has the employee been given a reasonable opportunity/time frame to improve? • Have you offered to assist the employee in achieving whatever it is you asked him/her to do? • If it was a policy violation, have you identified the policy or standard that was violated? • Is it documented somewhere that the employee knew about that policy or standard? • Have you recapped any previous counseling or discipline that has been administered? • Have you clearly communicated future expectations? Are they reasonable? Does the employee understand them? • Have you stated when those future expectations need to be met? • Have you clearly stated the consequences of failure to improve, and/ or the consequences of additional violations? • Have you told the employee you will follow up and when that will be? • Is the documentation dated? • Does it have the employee’s first and last name? • Does it clearly show who created the documentation/who the author is?
Employees have the right to file complaints and charges, and employers have a legal obligation to respond to them. Remember, in the eyes of the Department of Labor: “not documented, not done.” In the absence of documentation, the DOL will render a decision based on what it thinks it knows, not what might have actually happened.
Lastly, the burden of proof is always on the employer. The employee isn’t required to keep documentation; the DOL will take his or her word for it. Prior to establishing Strategic Management Solutions in 2001, Barany directed the human resources function for a variety of Central New York businesses. Barany works with a variety of government, nonprofit and for-profit industries, including the dairy industry. Her office is in the Syracuse, New York, area. Questions? Contact her at www.sms-hr.com or at 315-656-7016.
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t Agri-Mark, we are continually investing in the Northeast Dairy Industry because this is our home. We are now investing more than $20 million in our butter/powder/condensing plant in West Springfield, Massachusetts, shown above, for the 950 dairy farm families that own the co-operative. This project will be completed in mid-2018 and allow us to better serve our customers. Please contact us at 978552-5500 for more information on how we can serve you! NED Magazine | Third Quarter 2018 • 49
HumanResources
Legalizing Marijuana: How Does This Affect Your Drug Testing Policies? BY ZACHARY B. BUSEY & WENDY M. YOVIENE
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edicinal or medical marijuana is currently permitted in one form or another in 30 states and the District of Columbia. This article looks at how we got here and identifies best practices from both an administrative and an employment perspective.
IS MEDICAL MARIJUANA STILL ILLEGAL UNDER FEDERAL LAW? Yes, marijuana is and has always been illegal under the federal Controlled Substances Act (21 U.S.C. §§ 801, et seq.). The CSA was passed as Title II of the Comprehensive Drug Abuse Prevention and Control Act of 1970. It was signature legislation signed by President Richard Nixon and, as a whole, formed the backbone of the “war on drugs.” Marijuana has always been a Schedule I substance, along with heroin, LSD and ecstasy, for example (21 U.S.C. § 812, Schedule I). As a Schedule I substance, according to federal law, marijuana has a high potential for abuse and no currently accepted medical use (21 U.S.C. § 812(b)(1)). In turn, the possession or use of marijuana for any reason is illegal under the CSA. Despite this broadly worded statute, under the Obama administration, a number of guidance memos were distributed throughout the Department of Justice. These memos culminated with the “Cole Memo,” authored by Deputy Attorney General James Cole. The Cole Memo provided guidance on marijuana enforcement “in light of state ballot initiatives to legalize under state law the possession of small amounts of marijuana and to provide for the regulation of marijuana production, processing and sale” (Cole memo., p. 1, ¶ 1). In short, the Cole Memo directed a more hands-off approach in “jurisdictions that have enacted laws legalizing marijuana in some form and that have also implemented strong and effective regulatory and enforcement systems to control the cultivation, distribution, sale and possession of marijuana” (Id., p. 3, ¶ 1). The Cole Memo was comprehensive in that it applied to “all 50 • Northeast Dairy Foods Association, Inc.
federal enforcement activity, including civil enforcement, criminal investigations and prosecutions, concerning marijuana in all states” (Id., p. 1, ¶ 1). For nearly five years, the Cole Memo largely relegated marijuana control and enforcement to the states. Then, on Jan. 4, Attorney General Jeff Sessions issued a memo rescinding the Cole Memo and the guidance memos related to it. Sessions stated that his memo was intended to return prosecutorial discretion to local U.S. attorneys and other on-the-ground personnel. Commentators largely viewed the memo as signaling the DOJ’s intent to prosecute marijuana-related activities in states that have legalized it. Regardless of what the current attorney general and the DOJ may want, Congress has largely prohibited federal authorities from taking legal action against businesses and individuals participating in state-run medical marijuana programs. These efforts began in conjunction with the Cole Memo and led to the then-named Rohrabacher-Farr Amendment. The amendment, today known as the Rohrabacher-Blumenauer Amendment, is a budgetary amendment that expressly prohibits the DOJ from using any funds whatsoever to interfere with state-run medical marijuana programs. The amendment has survived legal challenges, and it has been continuously adopted since 2014, including on March 27 when Congress approved the most recent budget. The amendment next expires, unless re-adopted, on Sept. 30, 2018, along with all other federal funding. So the reason federal authorities are not prosecuting individuals and companies for medical marijuana has little to do with ideology and politics, and everything to do with a lack of funding.
ARE CBD PRODUCTS ALSO ILLEGAL UNDER FEDERAL LAW? The short answer is yes, and the long answer changes depending on who you ask. Putting aside botany specifics, marijuana (scientifically known as cannabis) contains a number of different compounds — chief among them are tet-
HumanResources
rahydrocannabinol, or THC, and cannabidiol, or CBD. THC is what produces marijuana’s “high.” CBD, by comparison, is generally considered not to produce a “high” or any other intoxicating effect. CBD is also generally considered to be a viable option for treating certain medical conditions, such as epilepsy, anxiety disorders and chronic pain. When intended for medical use, CBD products often do not contain THC — or they contain de minimis amounts of THC — especially if intended for use by minors. Regardless of whether CBD products can be made without THC, they remain illegal under federal law. Both the Drug Enforcement Agency and the Food and Drug Administration take the position that because CBD is derived from marijuana, it is treated no differently under the CSA. CBD is a Schedule I substance. Therefore, the possession or use of CBD products for any reason is illegal under federal law. Sen. Mitch McConnell (R-KY) recently introduced a bill related to the farming and processing of hemp. Hemp, like marijuana, is part of the cannabis family, and, like marijuana, CBD can be extracted from it. Unlike marijuana, hemp has virtually no amount of THC. In short, McConnell’s bill sets the stage for CBD to be decriminalized at the federal level, provided the CBD is extracted from hemp, not marijuana. For now, however, all CBD products remain illegal under federal law.
CAN AN EMPLOYEE BE DISCIPLINED OR FIRED FOR USING MEDICAL MARIJUANA? Yes. Marijuana use or possession in the workplace is grounds for disciplinary action. Not only is medical marijuana illegal under federal law, but, like alcohol, marijuana is an intoxicant. For this reason alone, employers can take disciplinary action based on medical marijuana use or possession in the workplace, up to and including immediate termination. Additionally, because CBD products remain illegal under federal law, employers can take disciplinary action based on their use or possession in the workplace. The result is the same if an employee uses medical marijuana (or a CBD product) away from work and, for example, fails a drug test. Please note the distinction between knowing an employee is using medical marijuana, e.g., based on a positive drug test, and suspecting medical marijuana use, e.g., the employee has a medical marijuana card. Like all employment decisions, care should be taken to base them on actual knowledge, not suspicions. Please also note that employment decisions may require closer consideration in certain states. There are, for example, at least 10 states that arguably offer some degree of workplace protection related to medical marijuana: Arizona, Arkansas, Colorado, Connecticut, Illinois, Massachusetts, New York, Pennsylvania, Rhode Island and West Virginia. In at least three NED Magazine | Third Quarter 2018 • 51
HumanResources of these states — Massachusetts, Connecticut and Rhode Island — courts have refused to dismiss lawsuits filed by individuals terminated (or not hired) because of medical marijuana. The most troubling case comes out of Massachusetts. In the Connecticut and Rhode Island cases, rejected applicants filed suit alleging, among other things, that they were not hired because they were participating in the respective state’s medical marijuana program. In both cases, the employers sought dismissal. The employers argued that whether the applicants were participating in a medical marijuana program was irrelevant because the applicants had admitted to using marijuana. Because of this admission, reasoned the employers, the applicants’ failure-to-hire theory should fail as a matter of law. This argument was rejected by both courts. While the courts took different paths, both concluded that it could not determine as a matter of law whether the employers failed to hire the applicants because of marijuana use or because of participation in the respective state’s medical marijuana program. (See Callaghan v. Darlington Fabrics Corp., 2017 WL 2321181 (R.I. Super. Ct. May 23, 2017); Noffsinger v. SSC Niantic Operating Co. LLC, 273 F. Supp. 3d 326 (D. Conn. Aug. 8, 2017).) In Massachusetts, an employee was fired for actively using medical marijuana. The employee sued for wrongful termination. In response, the employer argued that the employee was terminated for using marijuana and succeeded in getting the lawsuit dismissed. On appeal, however, the dismissal was reversed. The Massachusetts Supreme Judicial Court held that because using medical marijuana was allowed by state law, the employee’s lawsuit should not have been dismissed at such an early stage. (See Barbuto v. Advantage Sales & Mktg., LLC, 78 N.E.3d 37 (Mass. 2017).) As these court cases show, if your company operates in multiple “medical marijuana” states, policies and approaches to medical marijuana must be tailored for each.
DO I HAVE TO MAKE WORKPLACE ACCOMMODATIONS FOR EMPLOYEES USING MEDICAL MARIJUANA? Not quite. Broadly stated, marijuana use does not have to be tolerated in any form or at any time. This includes workplace accommodations. Every federal court to consider the issue has held that marijuana use is neither protected nor, for example, entitled to a reasonable accommodation under the Americans with Disabilities Act. 52 • Northeast Dairy Foods Association, Inc.
To start, as noted above, marijuana is an intoxicant. As such, an employee would be hard pressed to describe the use of marijuana as reasonable. That aside, marijuana and CBD remain illegal under federal law. Thus, they fall within the “illegal use of drugs” exclusion to the ADA. (42 U.S.C. § 12210(d) (1).) The ADA, therefore, does not apply. (See, e.g., James v. City of Costa Mesa, 700 F.3d 394, 398 (9th Cir. 2012); see also Forest City Residential Mgmt., Inc. ex rel. Plymouth Square Ltd. Dividend Hous. Ass’n v. Beasley, 71 F. Supp. 3d 715, 730-31 (E.D. Mich. 2014).) While this is good news for companies, it does not provide the answer to every question or situation. Take, for example, an employee asking to use medical marijuana outside of the workplace to treat a medical condition. While this may not be a reasonable accommodation under the ADA, the employer should still engage in the interactive process required by the ADA. Moreover, a general request for leave to treat a medical condition may trigger an employer’s obligations under the Family and Medical Leave Act. (See 29 U.S.C. §§ 2601, et seq.). As another example, say an employer learns from social media that two employees used medical marijuana outside of the workplace. If one employee is terminated but the other is not, this inconsistency could be seen as discriminatory should the employees be of different races, genders, etc. Or say an employer learns an employee sometimes uses marijuana outside of the workplace not just for medical purposes but in connection with a religious practice or ritual. This may provide an employer grounds for drug testing the employee, but using it as grounds for immediately terminating the employee will likely give rise to a charge of religious discrimination.
IS THE RESULT DIFFERENT FOR MY DRIVERS? No, the result is the same. The drivers are treated like any other employee. Moreover, the Department of Transportation’s Drug and Alcohol Testing Regulations specifically forbids “medical marijuana” as a valid medical explanation for a transportation employee’s positive drug test result. (See 49 CFR Part 40.151(e).) Accordingly, should a transportation employee test positive for marijuana, under no circumstances can the medical review officer verify the result as “negative,” even if the marijuana is for medical use. Said differently, under DOT regulations, a positive test for marijuana will always be considered a positive test, and marijuana use of any kind is strictly prohibited under the DOT’s Drug and Alcohol Testing Regulations.
HumanResources DOES MY COMPANY NEED TO CHANGE ITS DRUG TESTING POLICY? It depends. If the policy has not been reviewed in some time, it likely needs to be updated as a matter of course. Beyond that, whether under the federal Drug Free Workplace Act (See 41 U.S.C. § 8102) or in connection with a state’s workers’ compensation program, companies can still require a drug-free workplace. Also, because marijuana is illegal under federal law, testing for it is not a medical examination under the ADA. Therefore, the ADA’s restrictions on medical examinations and inquiries do not apply. However, given that many drug tests cover substances beyond marijuana — including prescription medications — employers are strongly encouraged to maintain drug testing programs in compliance with the ADA, or a state’s law, if and when it provides heightened requirements. For general guidance on medical examinations, inquiries and drug testing under the ADA, refer to the U.S. Equal Employment Opportunity Commission, Enforcement Guidance on Disability-Related Inquiries and Medical Examinations of Employees Under the Americans with Disabilities Act at https://www.eeoc.gov/ policy/docs/guidance-inquiries.html.
CONCLUSION The overall takeaway is this: As of now, marijuana in any form remains illegal under federal law. Accordingly, administrative and employment decisions adverse to the use of marijuana under any circumstances are generally defensible. By avoiding snap decisions and seeking informed advice, these marijuana-related decisions become more and more defensible. Zachary B. Busey, CIPP/US, CIPM is an associate who practices employment and general litigation with Baker Donelson’s Memphis, Tennessee, office.
Wendy M. Yoviene is a shareholder and serves as outside general counsel for business and trade association clients. She is a shareholder in Baker Donelson in Washington, D.C.
Do you sell products or services to companies that process, manufacture and distribute dairy products?
Let us help you make a splash. Boost your bottom line and brand awareness within the industry. Contact us today to learn about the opportunities. Hannah Gray, Relationship Manager hannahg@nedairymedia.com 315-445-2347 Ext. 115 NED Magazine | Third Quarter 2018 • 53
Annual NDA Clambake Draws 1,000, Benefits Scholarship Fund
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lams, lobster, shrimp, corn on the cob and Syracuse’s famous salt potatoes were plentiful at the July 11 Annual Dairy Industry Clambake, held at Hinerwadel’s Grove in North Syracuse, New York. Over 1,000 industry representatives, staff, friends and members attended the popular event hosted by the Northeast Dairy Association, the suppliers and vendors to the dairy industry. The Northeast Dairy Association hosts the clambake not only as a networking opportunity but also a chance to show customer appreciation and benefit specific causes. Profits from the clambake are designated towards the association’s annual scholarship program (see Page 60 for a list of recipients), which this year awarded $15,000 in scholarships. In addition, a silent auction at the event brought in over $2,000 to help attract future workers to the dairy processing, manufacturing and distribution community. A committee was recently established to look for ways to target high school and college students through the creation of a YouTube video. The clambake is held each year on the second Wednesday of July, so mark your calendars for next year’s event on July 10, 2019! Tickets to the event can be purchased exclusively by members of the Northeast Dairy Association, and members are encouraged to invite current and prospective customers to the clambake. For more information, contact us at 315-452MILK (6455).
54 • Northeast Dairy Foods Association, Inc.
NED Magazine | Third Quarter 2018 • 55
Member News and Announcements
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n June, Agri-Mark, Inc., one of the largest dairy farmer cooperatives in New England and New York, voted unanimously to send a letter to U.S. Agriculture Secretary Sonny Perdue asking him to use his authority to set minimum wholesale price floors for butter at $2.30 per pound, cheddar cheese at $1.64 per pound and nonfat dry milk at 81 cents per pound. These prices are lower than price highs already reached in June, so they should not affect consumers, according to the cooperative. However, such action will stabilize markets for dairy farmers, many of whom exited in 2018. As part of the program, the USDA must purchase dairy products offered to the government at those prices. “After more than three years of extremely low income, farm milk prices were finally rising earlier this month with strong cheese, butter and nonfat dry milk market prices. When tariffs were announced, prices collapsed overnight,” said Neal Rea, a dairy farmer from Cambridge, New York, who serves as chairman of the board of Agri-Mark. Byrne Hollow Farm Organic and Grass-Fed Organic Milk is now available at all 96 Wegmans locations. With over 85 years of dairy experience, Byrne Hollow Farm is excited to partner with another local family-run business to 56 • Northeast Dairy Foods Association, Inc.
support local family farms. Byrne Hollow Farm and Wegmans offer The Best Milks, sourced from Central New York family farms. The 1.5 liter new shape of dairy is offered in six varieties: Byrne Hollow Farm Organic whole, 2 percent, 1 percent and skim, as well as grass-fed organic whole and 2 percent. All of Byrne’s farmers produce the highest quality milk without antibiotics, synthetic hormones or genetically modified feed. Chobani, the second largest overall yogurt manufacturer in the U.S., announced that is has secured a minority investment from the Healthcare of Ontario Pension Plan, one of the largest defined pension plans in Canada. HOOPP Capital Partners, the defined benefits plan’s private capital investment team, has acquired a minority equity investment in Chobani, which will help support the company as it continues to lead innovation in the yogurt category and invests in its business. As a result of this transaction, TPG, a global alternative investment firm, has exited its investment in the company. Terms of the deal were not disclosed, although HOOPP will be given one board seat as part of its investment. The Dairy Farmers of America, a global dairy food cooperative owned by
family dairy farmers, applauded the United States Department of Agriculture’s recent announcement to purchase $50 million worth of fluid milk for distribution to food assistance programs. The USDA will authorize up to $50 million of Section 32 funds to purchase a range of consumer-friendly milk varieties, including whole, 2 percent, 1 percent and skim. The agency will purchase the milk from approved vendors and distribute the product, which is estimated to be about 12 to 15 million gallons, depending on the prices agreed to by USDA and its suppliers, to food assistance programs. Dean Foods Company announced in July that it has increased its ownership percentage and taken a majority stake in Good Karma Foods, the leading brand of flaxseed-based milk and yogurt alternatives. “Good Karma is a fast-growing brand that gets us back into the growing plant-based food and beverage category, making it an excellent addition to our portfolio,” said Ralph Scozzafava, CEO of Dean Foods. In June of 2017, Envision Plastics committed to recycling 10 million pounds of OceanBound Plastic over a two-year period. As of June 2018, the company had reached the halfway point and recycled 5
Member News million pounds of high-density polyethylene or the equivalent of 35 million milk jugs. Envision’s OceanBound Plastic is made from recycled plastic collected from at-risk areas and is designed to stop plastic from reaching beaches and waterways, where it would otherwise become marine debris. The company uses its patented Deodorized Resin technology to clean and remove odors from the HDPE resin, ensuring it can be used as 100 percent recycled content in new products. Kenworth Northeast, an independently owned truck dealership supplying the Northeast region with heavy and medium duty trucks and parts, now has a new location open in Tewksbury, Massachusetts. In addition, its Elmira, New York, location has opened up a service department in addition to its existing parts department. After gradually coming together since early 2017, Hypred, Anti-Germ, Medentech, LCB Food Safety and G3 have adopted a unique name — Kersia — and a common banner for a shared mission: inventing a food safe world. The integration of the complementary skills and expertise of these international experts in biosecurity solutions for the farm and agri-food sector has created a group well positioned to take on these challenges at every stage of the food supply chain. United under one name, Kersia has a comprehensive portfolio of value-added products and solutions to prevent diseases or contamination in both animals and humans and intends to lead the way as the world benchmark operator in the industry. New Member Benefit! The Northeast Dairy Foods Association has partnered with AXA Advisors to provide a 401(k) plan option to association members
featuring no annual plan or plan set-up fees, no per-participant charges, a plan asset charge of 0.75 percent, and 3(21) fiduciary services provided by Wilshire at no additional fee. To take advantage of this benefit, contact Anthony J. Stevens III, AXA advisor, at 315-425-6307 or Anthony.Stevens@axa-advisors.com. Perry’s Ice Cream, a fourth generation, family-owned ice cream company headquartered in Buffalo, New York, recently celebrated its 100-year anniversary! “For 100 years, our family has embraced H. Morton Perry’s founding philosophy to ‘make sure you put in enough of the good stuff’ each and every day,” said Gayle Perry Denning, vice president of corporate sustainability and strategic branding. “The good stuff is more than what we put into our ice cream — it’s about the moments we are thankful to have been a part of. This milestone will be filled with celebration for those moments, from honoring our community to special events and bringing back some of our favorite flavors from the recipe vault.” Perry’s released four limited-edition retro flavors from past decades, including Parkerhouse (1950s), Heavenly Hash (1970s), Butterscotch Sundae (1980s) and Malt Shoppe (1990s). The business dates back to 1918 when its founder purchased a milk route in Akron, New York. Soon, however, the local school asked him to share his family recipe to supply ice cream for the children. The “good stuff” has been around ever since. Tim White, vice president of sales, is leading Rocket Products, Inc., sales after more than 30 years in the dairy business, primarily in similar roles with the Purity division of Dean Foods. “Throughout my career, I’ve seen Rocket’s delicious lemonade perform well. I always admired Rocket as a cool, independently owned, high-quality business with a great entrepreneurial spirit,” said White.
“I’m honored to be a part of the Rocket team to build on our r i c h h i s t o r y. I’m confident in what Rocket Products can do for our customers. Now, over Tim White a year into this, I sum it up this way: Dairies that use Rocket concentrates continue to succeed in the marketplace — building and strengthening their total brands via lemonade. It’s gratifying to see others getting in the lemonade category and capturing their fair share. Why not? The business is there for the taking — it’s easy, simple, fun and it sells!” Sitzman Supply, LLC, a growing distributor of processing equipment for the food, dairy, beverage and pharmaceutical industries, is proud to announce the hiring of Ted Berndt as Eastern regional sales manager, covering Eastern New York and Western New England. Berndt has an agricultural background and comes from the beverage industry. Stewart’s Shops recently celebrated three grand openings in New York State: Granville, Middletown and Berlin. All the shops offer a greater selection of “easy food items,” including freshly made pizza by the pie or the slice, a walk-in cooler and a beverage bar. In addition, these locations include ample seating, parking and fuel service. In other news, Stewart’s donated over $112,000 to 170 groups in August in the form of products, gift certificates and monetary support. Stewart’s and related family foundations donates $7.5 million annually to support local charities. For a complete list of recipients, visit www.stewartsshops. com/news. NED Magazine | Third Quarter 2018 • 57
Member News Credit: Michael Davis photo
NYS Fair Dairy Volunteer Group to Disband, Dissolve Assets
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oard members of New York State Dairy Exhibits, Inc., met on Aug. 14 in a special member meeting to disband their group and dissolve remaining funds. The group, made up of over 30 dairy industry volunteers from all facets, including farmers, processors, manufacturers, trade associations, distributors and retailers, discontinued working with the New York State Fair in 2017. The group had been involved since 1952 with the State Agriculture Department, which is responsible for overseeing the entire State Fair held in Syracuse each year for 13 days preceding Labor Day. Gary Raiti, president of the board of directors, said, “It was inevitable for the decision to dissolve. We needed to raise our retail prices for a cup of milk from 25 cents to 50 cents to cover our costs.”
58 • Northeast Dairy Foods Association, Inc.
The state decided not to allow the volunteer group to raise its prices, forcing the organization to stop working with the Agriculture Department and leave the fair’s Dairy Products Building forever. The fair’s decision to not allow the price increase resulted in leasing the ever-popular building concessions, the Milk Bar, NY State Cheese and YO2GO yogurt, to a single non-dairy related or agriculture interest vendor. Bruce W. Krupke, secretary for the board of directors, said, “It is very sad our group was treated this way by the state. I’m sure we could have worked out some compromise, but they didn’t seem interested. Now the state has no real involvement with the dairy industry, no input, no effort to work together to increase sales and educate consumers of the nutritional value dairy products play in a healthful diet.”
The volunteers oversaw much of the activity in the Dairy Products Building, including upgrades, repairs, dairy promotion, sales of New York State dairy product vendors, the butter sculpture, Big Cheese Auction, entertainment, Dairy Day celebration and parade participants. The group has made the decision to dissolve its remaining assets and will be focusing on making donations to dairy-related groups, efforts, organizations, scholarship funds and 501c(3) entities to help further the promotion and consumption of dairy products. New York State Dairy Exhibits, Inc., board members anticipate the disbanding and dissolving of assets and actions will be completed around the beginning of 2019. Any group interested in potentially receiving a donation from the group should contact Krupke at 315-452-6455.
Member News
HP Hood Expands, Creating More than 25 Jobs in Central New York
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n June, New York Gov. Andrew Cuomo announced that HP Hood, one of the nation’s most experienced food and beverage manufacturers, has completed an expansion project that will create more than 25 jobs at its Oneida, New York, facility as a result of a low-cost power allocation from the governor’s ReCharge NY program. ReCharge NY is administered by the New York Power Authority and provides qualifying businesses and nonprofits with lower energy costs in exchange for commitments to retain or create jobs throughout the state. “ReCharge NY is supporting hundreds of thousands of jobs across the state and has been a key to the state’s economic success over the last several years,” said Cuomo. “Businesses today are competing in a global marketplace, so we must do everything we can to leverage New York’s assets, which includes providing low-cost hydropower to companies so they can reinvest and grow.” The HP Hood Oneida facility has started receiving its 280 kilowatts of expansion power from the ReCharge NY program. The power allocation is directly tied to the firm’s completed expansion project and its commitment to retain 198 existing jobs and hire more than 25 new employees. The HP Hood expansion includes installation of an additional milk production line, cold storage, food security and expanded facility capacity. The Oneida facility produces approximately 113 milk and fluid products and supplies major warehouse operations that pro-
Members of the dairy industry toured HP Hood's recent expansion in Oneida, New York. The ReCharge NY program provides less expensive power, which has allowed HP Hood to reinvest in its employees and facility.
vide food service, retail and wholesale firms with a full line of dairy products manufactured in Oneida and other HP Hood manufacturing facilities. “We are pleased with the results of the program and would like to extend our gratitude to Governor Cuomo and the New York Power Authority for providing significant support to this expansion project,” said Lynne Bohan, spokesperson for HP Hood. “Having been customers of the governor’s ReCharge NY program for several years, we’re aware of how impactful the program’s lower cost power has been in sustaining our daily operations and providing us with the ability to reinvest in our facility.” HP Hood has been a ReCharge NY
customer since 2012 when NYPA’s board of trustees awarded the Oneida location with 800 kilowatts of retention power under the program. In addition to serving HP Hood in Oneida, NYPA also provides lowcost ReCharge NY power to HP Hood locations in Arkport, LaFargeville and Vernon, New York. Founded in 1846, HP Hood is one of the largest branded food and beverage manufacturers in the United States. Its portfolio of national and super-regional brands and franchise products includes Hood, Heluva Good, LACTAID, HERSHEY’S Milk and Milkshakes and Blue Diamond Almond Breeze. NED Magazine | Third Quarter 2018 • 59
Member News
Northeast Dairy Association Announces $15,000 in Annual Scholarships
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he Northeast Dairy Association, Inc., has announced 10 scholarships given to college students for the 2018‒2019 academic year totaling $15,000. Applicants must be an immediate family member of a current NDA member company or student member of NDA, enrolled for the 2018‒2019 academic year as a full-time student with a minimum of 12 credit hours and have a GPA of 2.50 or greater to be eligible. The NDA Scholarship Committee awarded five $2,000 scholarships to students whose majors are related to the dairy/food industry or a related agriculture program. Recipients were: • Eric Bates of Cobleskill, New York, a senior studying animal science at Cornell University • Lilyanna Berghorn of Akron, New York, a sophomore studying animal science at Cornell University • Jenna Fryer of North Syracuse, New York, a junior studying food science at The Ohio State University • Rachel Turck of Litchfield, Minnesota, a senior studying farm operations and management with a dairy emphasis at Ridgewater College • Y i r e n Yu e o f A m h e r s t , Massachusetts, a senior studying food science at the University of Massachusetts, Amherst 60 • Northeast Dairy Foods Association, Inc.
Additionally, the committee awarded five $1,000 scholarships to students studying any major, including those not related to dairy fields. Recipients were: • Ryan Burnham of Fairport, New York, a senior studying computer science and mathematics at Clarkson University • Lily Daily of Lexington, Kentucky, a junior studying communication sciences and disorders at the University of Kentucky • Madeline Hanford of Clarence, New York, a senior studying environmental engineering at Michigan State University • Bailey Klein of North East, Pennsylvania, a junior studying biomedical engineering at Penn State University • Emily Roloson of Castleton, New York, a sophomore studying biomedical engineering at the University of Virginia “We had many strong and qualified applicants again this year,” said Bruce W. Krupke, executive vice president of the Northeast Dairy Foods Association. “It is fantastic to see young, smart students with solid backgrounds who are seeking a career in the dairy industry and pursuing other goals, as well.” Ozzie Orsillo, president of the Northeast Dairy Association, Inc., said, “The association is honored and pleased
to present these students with scholarships this year. We encourage young people to continue their studies, especially those seeking a career in the dairy industry, and wish them all the best of luck.” Student recipients were thrilled to be awarded scholarships. “I am very honored to receive this award,” said Eric Bates, a student at Cornell University. “The most passionate and generous people I know have roots in the dairy industry. This scholarship will be a tremendous help as I continue my studies.” “Thank you, NDA, for the support for the coming school year and for enabling me to continue my education,” said Ryan Burnham, a student at Clarkson University. Lily Daily, a student at the University of Kentucky, also commented. “I am so grateful to the Northeast Dairy Association for making this scholarship available,” she said. “I am honored to be awarded $1,000 that will help me pay for my education.” Scholarship information for the 2019‒2020 academic year can be found at www.neastda.org after Feb. 1, 2019, with applications due by June 1. Funding comes directly from the association’s annual clambake, member dues and sponsorship of annual dairy industry events that support the scholarships.
BeneďŹ ts of Association Membership EXECUTIVE DIRECTOR AND INDUSTRY CONSULTANT SUPPORT Legislative Representation Through Executive Lobbying and Networking Safety and Environmental Information Economic Analysis and Forecasting Continuing Education and Certification Opportunities Industry Spokesperson Emergency Preparedness
PROFESSIONAL COST-SAVING PROGRAMS AND SERVICES Dedicated Industry-Specialized Insurance Programs Employee Benefits - 401(k) Retirement Program Energy Supply and Consulting Services
NETWORKING AND MEETING EVENTS Annual Northeast Dairy Convention Annual Dairy Industry Clambake Industry Plant Tours Annual Charity Golf Outing Fundraiser
COMMUNICATIONS AND PUBLIC RELATIONS Editorial News Support - Northeast Dairy Magazine Social Media Support Direct Customer Advertising Opportunities Industry Scholarship Program Member Distribution of Dairy News of Key Industry Information
ADVOCACY An association represents your interests before your government leaders, industry and business community. If your business/ industry faces major threats or needs support, our association is right there on the front line fighting for you.
NETWORKING Association events, meetings and member directories make networking a reality for you and your peers. This is the one advantage many view as the most important reason to join!
ADVERTISERS INDEX Agri-Mark Cooperative- Cabot Cheese............ 49 Brown & Brown Empire State........................... 42 Earl T. Wadhams, Inc........................................ 19 Farm Credit East.................................................9 Food Specialties............................................... 28 Herbein + Company, Inc.....................................4 Indian River Transport...................................... BC Jefferson County Local Development Corporation...................................................... 34 Nelson-Jameson, Inc........................................ 11 ProSpect Analytical Technology, Inc................. 42 PTI/Waldner North America............................. 23 Rocket Products, Inc......................................... 31 S&D Welding.................................................... 18 Schenck Process LLC..........................................5 Spinnaker Custom Products............................. 62 Tremcar USA Inc............................................... 28 Tri Tank Corp.................................................... 18 Weidenhammer New Packaging, LLC............ IBC
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.
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